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17700.0
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2023-01-06 00:00:00 UTC
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3 Top Tech Stocks to Buy in January
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AAPL
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https://www.nasdaq.com/articles/3-top-tech-stocks-to-buy-in-january-0
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nan
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nan
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The past year has not been kind to technology stocks. The tech-heavy Nasdaq Composite has fallen 33% over the last 12 months and is down 35% from its peak, putting the index deep into bear-market territory. Macroeconomic conditions have crushed valuations for many growth-dependent companies, but today's challenging market backdrop will also likely set the stage for huge returns to arrive somewhere down the line.
For long-term investors, a bear market is historically the best time to buy stocks and build positions in solid companies capable of going the distance. If you're searching for investment opportunities that have the potential to deliver big gains, read on for a look at three technology stocks that look like great buys in January.
Image source: Getty Images.
1. Cloudflare
While Cloudflare (NYSE: NET) isn't as well-known as internet giants like Amazon, Alphabet, and Microsoft, it plays an absolutely essential role in the modern web. Between its protections against distributed denial-of-service (DDoS) attacks and content delivery network (CDN) technologies for speeding up the transmission of data across the internet, Cloudflare provides indispensable services that keep websites and applications online and performing efficiently.
Clients that were already using Cloudflare's services in the prior-year period increased their spending 24% year over year in the third quarter, and continued growth in its customer count helped the company post a 47% surge in sales.The performance pushed the company above $1 billion in annualized revenue for the first time, and the 78.1% non-GAAP (adjusted) gross margin recorded in Q3 suggests that the business should be able to expand profitably as it continues to tap into a huge addressable market opportunity.
The massive scale of Cloudflare's global network and ease of use of its software are significant competitive advantages that the company should be able to maintain going forward. The web services specialist is enabling its customers to operate with a combination of security and speed, and it's positioned to benefit from powerful demand catalysts as the internet continues to grow.
With the stock down roughly 80% from its high, Cloudflare is a strong buy for investors seeking to build positions in high-quality tech companies.
2. Airbnb
Airbnb (NASDAQ: ABNB) is a fantastic company, and its innovative property rentals business is positioned to benefit from a positive feedback loop that should translate into strong returns for patient shareholders.
Success for hosts makes it more likely that they will list new properties or otherwise become increasingly engaged on the platform. Good experiences for guests increase the likelihood of repeat stays through Airbnb, thereby improving opportunities for hosts. For long-term investors, there's a very attractive dynamic at play here.
Airbnb has scaled rapidly since its founding in 2008, but the company still has an incredible long-term growth opportunity ahead of it. And crucially, there are already strong signs that the company will be able to drive that growth profitably.
Spurred by 29% year-over-year sales growth and a roughly 86% gross margin, Airbnb's net income rose 46% to reach roughly $1.2 billion in the third quarter.The business has also tallied about $3.3 billion in free cash flow over the trailing 12 months at a 41% margin. These are stellar results that would have likely translated into a substantial boost for the stock were it not for macroeconomic headwinds crushing the market's appetite for growth stocks.
As it stands, Airbnb shares have fallen roughly 48% over the last year and are down 59% from their peak valuation.For long-term investors seeking potentially explosive returns, I think the stock presents one of the most appealing risk-reward dynamics on the market at current prices.
3. Meta Platforms
Meta Platforms (NASDAQ: META) has been struggling lately. The digital advertising market has faced headwinds and user-data changes made by Apple have made it more difficult to serve effectively targeted ads on its mobile platform. Meta stock is off 67% from its high, and its market capitalization and valuation multiples have been pushed down to eye-catching levels.
META PE Ratio (Forward) data by YCharts
The company is making a huge bet on its future, and much of its long-term outlook likely hinges on to what extent it's capable of making its metaverse vision a reality. So despite the attractive valuation metrics, it's fair to say that Meta isn't a low-risk stock. On the other hand, I do think shares present a risk-reward profile that's worth considering for long-term investors at current prices.
The market remains decidedly unenthusiastic about the highly costly metaverse growth initiative, but Meta Platforms has strong foundations to work with. The company ended last quarter with roughly 3.7 billion monthly active users across Facebook, Instagram, WhatsApp, and other services, and engagement on these platforms is hardly going to dry up overnight.
Meta may wind up falling short of its massive metaverse ambitions, but its current valuation leaves room for upside if the company can make some meaningful progress on that front and continue to report solid performance for its current core services. This is a case where I think long-term investors will be rewarded for taking a contrarian position.
10 stocks we like better than Cloudflare
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 Cloudflare 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. 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. Keith Noonan has positions in Airbnb and Cloudflare. The Motley Fool has positions in and recommends Airbnb, Alphabet, Apple, Cloudflare, Meta Platforms, 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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Between its protections against distributed denial-of-service (DDoS) attacks and content delivery network (CDN) technologies for speeding up the transmission of data across the internet, Cloudflare provides indispensable services that keep websites and applications online and performing efficiently. The web services specialist is enabling its customers to operate with a combination of security and speed, and it's positioned to benefit from powerful demand catalysts as the internet continues to grow. As it stands, Airbnb shares have fallen roughly 48% over the last year and are down 59% from their peak valuation.For long-term investors seeking potentially explosive returns, I think the stock presents one of the most appealing risk-reward dynamics on the market at current prices.
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For long-term investors, a bear market is historically the best time to buy stocks and build positions in solid companies capable of going the distance. Meta Platforms Meta Platforms (NASDAQ: META) has been struggling lately. The Motley Fool has positions in and recommends Airbnb, Alphabet, Apple, Cloudflare, Meta Platforms, and Microsoft.
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Clients that were already using Cloudflare's services in the prior-year period increased their spending 24% year over year in the third quarter, and continued growth in its customer count helped the company post a 47% surge in sales.The performance pushed the company above $1 billion in annualized revenue for the first time, and the 78.1% non-GAAP (adjusted) gross margin recorded in Q3 suggests that the business should be able to expand profitably as it continues to tap into a huge addressable market opportunity. With the stock down roughly 80% from its high, Cloudflare is a strong buy for investors seeking to build positions in high-quality tech companies. As it stands, Airbnb shares have fallen roughly 48% over the last year and are down 59% from their peak valuation.For long-term investors seeking potentially explosive returns, I think the stock presents one of the most appealing risk-reward dynamics on the market at current prices.
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With the stock down roughly 80% from its high, Cloudflare is a strong buy for investors seeking to build positions in high-quality tech companies. That's right -- they think these 10 stocks are even better buys. The Motley Fool has positions in and recommends Airbnb, Alphabet, Apple, Cloudflare, Meta Platforms, and Microsoft.
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17701.0
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2023-01-06 00:00:00 UTC
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1 Warren Buffett Stock Down 27% to Buy in 2023
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AAPL
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https://www.nasdaq.com/articles/1-warren-buffett-stock-down-27-to-buy-in-2023
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nan
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nan
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It's no secret that Warren Buffett's biggest holding through Berkshire Hathaway is Apple (NASDAQ: AAPL). The tech giant's stock now represents 36.3% of the value in the conglomerate's equity portfolio. And while he was not the investment manager responsible for making Berkshire's initial foray into Apple, it certainly meets many of his well-known criteria for companies worthy of investment, such as a focus on quality and strong brand loyalty.
The iPhone company has used these to attract millions of consumers into its walled garden of products, becoming the world's most valuable company in the process, with a market cap today of about $2.01 trillion. That said, Apple shares are down 27% year over year after a sell-off largely brought on by economic headwinds.
In my view, though, that stock dip has only made this Buffett holding more attractive and worth buying in 2023. Here's why.
Apple and the power of brand loyalty
Buffett has said his interest in Apple was sparked in 2016 when, after a friend had lost his iPhone in a taxi, they described the experience by saying, "I felt like I lost a piece of my soul." Buffett realized then that Apple was creating not just technology, but products that had become indispensable to many people -- and that would likely continue to be for the foreseeable future.
Apple's focus on quality, user-friendly operating systems, and connectivity between its devices has created brand loyalty that encourages consumers to repeatedly return to its products. In fact, in September 2022, Counterpoint Research revealed that iPhones officially overtook Alphabet's Android in the U.S. market, accounting for more than half of smartphones in use in the country.
Counterpoint's research director noted that "operating systems are like religions." Once consumers grow accustomed to one, they are unlikely ever to change. This makes Apple's lead in smartphone market share promising for its future. An initial purchase brings consumers into contact with an array of products and services, and the further enmeshed people become in its ecosystem, the more opportunities it has to sell to them.
In addition, brand loyalty can give a company pricing power. According to Self Financial, from 2007 to 2021, iPhone prices rose globally by 81%. And in individual markets, iPhone prices increased by 26% more than local inflation rates. However, annual iPhone revenue still rose from $1.8 billion in 2008 to $191.9 billion in 2021.
Apple is cashing in on subscriptions
In recent years, the company has worked tirelessly on growing its services business with platforms such as Apple TV+, iCloud, Music, Fitness+, News+, and Arcade. Services give Apple another opportunity to bring consumers further into its ecosystem -- and to profit from monthly subscriptions.
Recent iPhone production issues in China have led investors to bid down Apple shares by 12% in the last month -- understandable, as the smartphones provided 52% of the company's revenue in its fiscal 2022. However, its services are an excellent way to reliably diversify earnings.
In 2022, revenue from Apple's services segment rose 14% year over year to $78.1 billion, double the 7% growth rate for iPhone revenues. The subscription-based business accounted for the second-largest portion of the year's revenue -- 20%.
In addition to impressive growth, Apple's motivation for growing the segment is its attractive profit margins. In 2022, services hit a 71.7% profit margin, while for products, the profit margin was 36.3%. While Apple accrues operating expenses for every device it sells, services are optimal as the company can pay once to create a piece of content and sell it millions of times over to consumers. Profit margins only improve when more consumers pay monthly subscription fees to retain access to that content.
As a result, digital industries such as streaming will continue to see tremendous growth in the coming years. According to Grand View Research, the streaming market will grow at a compound annual rate of 21.3% until 2030, and thanks to Apple TV+, the tech company will likely profit significantly from that growth.
Like most tech stocks, Apple had a challenging 2022. However, it continues to show why it is Berkshire Hathaway's biggest holding and Buffett's favorite stock. After a 27% dip in stock price over the last year, Apple is a must-buy 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.
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. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, and Berkshire Hathaway. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It's no secret that Warren Buffett's biggest holding through Berkshire Hathaway is Apple (NASDAQ: AAPL). Apple's focus on quality, user-friendly operating systems, and connectivity between its devices has created brand loyalty that encourages consumers to repeatedly return to its products. Recent iPhone production issues in China have led investors to bid down Apple shares by 12% in the last month -- understandable, as the smartphones provided 52% of the company's revenue in its fiscal 2022.
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It's no secret that Warren Buffett's biggest holding through Berkshire Hathaway is Apple (NASDAQ: AAPL). Services give Apple another opportunity to bring consumers further into its ecosystem -- and to profit from monthly subscriptions. In 2022, revenue from Apple's services segment rose 14% year over year to $78.1 billion, double the 7% growth rate for iPhone revenues.
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It's no secret that Warren Buffett's biggest holding through Berkshire Hathaway is Apple (NASDAQ: AAPL). Apple is cashing in on subscriptions In recent years, the company has worked tirelessly on growing its services business with platforms such as Apple TV+, iCloud, Music, Fitness+, News+, and Arcade. In 2022, revenue from Apple's services segment rose 14% year over year to $78.1 billion, double the 7% growth rate for iPhone revenues.
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It's no secret that Warren Buffett's biggest holding through Berkshire Hathaway is Apple (NASDAQ: AAPL). In addition, brand loyalty can give a company pricing power. In 2022, revenue from Apple's services segment rose 14% year over year to $78.1 billion, double the 7% growth rate for iPhone revenues.
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17702.0
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2023-01-06 00:00:00 UTC
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After Hours Most Active for Jan 6, 2023 : KGC, MCHI, AMZN, QQQ, BSX, AAPL, LYB, AMD, CYH, SBUX, CCL, C
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-jan-6-2023-%3A-kgc-mchi-amzn-qqq-bsx-aapl-lyb-amd-cyh-sbux-ccl-c
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -15.04 to 11,025.31. The total After hours volume is currently 86,444,865 shares traded.
The following are the most active stocks for the after hours session:
Kinross Gold Corporation (KGC) is +0.01 at $4.58, with 5,090,957 shares traded. As reported by Zacks, the current mean recommendation for KGC is in the "buy range".
iShares MSCI China ETF (MCHI) is -0.3115 at $51.95, with 4,050,659 shares traded. This represents a 48.34% increase from its 52 Week Low.
Amazon.com, Inc. (AMZN) is -0.13 at $85.95, with 3,633,015 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is -0.3 at $268.50, with 3,363,418 shares traded. This represents a 5.6% increase from its 52 Week Low.
Boston Scientific Corporation (BSX) is unchanged at $46.33, with 2,336,190 shares traded. As reported by Zacks, the current mean recommendation for BSX is in the "buy range".
Apple Inc. (AAPL) is -0.29 at $129.33, with 2,231,665 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
LyondellBasell Industries NV (LYB) is unchanged at $90.10, with 2,080,210 shares traded. LYB's current last sale is 97.93% of the target price of $92.
Advanced Micro Devices, Inc. (AMD) is -0.06 at $63.90, with 1,732,851 shares traded. As reported by Zacks, the current mean recommendation for AMD is in the "buy range".
Community Health Systems, Inc. (CYH) is unchanged at $4.76, with 1,727,071 shares traded. CYH's current last sale is 95.2% of the target price of $5.
Starbucks Corporation (SBUX) is -0.12 at $106.57, with 1,494,851 shares traded. SBUX's current last sale is 108.74% of the target price of $98.
Carnival Corporation (CCL) is -0.01 at $9.19, with 1,168,412 shares traded. CCL's current last sale is 91.9% of the target price of $10.
Citigroup Inc. (C) is unchanged at $47.31, with 1,147,000 shares traded.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 1.21 per share, which represents a 199 percent increase over the EPS one Year Ago
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.29 at $129.33, with 2,231,665 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". iShares MSCI China ETF (MCHI) is -0.3115 at $51.95, with 4,050,659 shares traded.
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Apple Inc. (AAPL) is -0.29 at $129.33, with 2,231,665 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported by Zacks, the current mean recommendation for KGC is in the "buy range".
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Apple Inc. (AAPL) is -0.29 at $129.33, with 2,231,665 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 86,444,865 shares traded.
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Apple Inc. (AAPL) is -0.29 at $129.33, with 2,231,665 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is down -15.04 to 11,025.31.
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17703.0
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2023-01-06 00:00:00 UTC
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Notable Friday Option Activity: ENPH, AAPL, HAS
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AAPL
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https://www.nasdaq.com/articles/notable-friday-option-activity%3A-enph-aapl-has
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Enphase Energy Inc. (Symbol: ENPH), where a total volume of 44,628 contracts has been traded thus far today, a contract volume which is representative of approximately 4.5 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 146.4% of ENPH's average daily trading volume over the past month, of 3.0 million shares. Especially high volume was seen for the $235 strike call option expiring January 06, 2023, with 2,345 contracts trading so far today, representing approximately 234,500 underlying shares of ENPH. Below is a chart showing ENPH's trailing twelve month trading history, with the $235 strike highlighted in orange:
Apple Inc (Symbol: AAPL) options are showing a volume of 973,260 contracts thus far today. That number of contracts represents approximately 97.3 million underlying shares, working out to a sizeable 115.3% of AAPL's average daily trading volume over the past month, of 84.4 million shares. Particularly high volume was seen for the $125 strike put option expiring January 06, 2023, with 53,915 contracts trading so far today, representing approximately 5.4 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $125 strike highlighted in orange:
And Hasbro, Inc. (Symbol: HAS) saw options trading volume of 19,366 contracts, representing approximately 1.9 million underlying shares or approximately 108% of HAS's average daily trading volume over the past month, of 1.8 million shares. Especially high volume was seen for the $45 strike put option expiring July 21, 2023, with 5,000 contracts trading so far today, representing approximately 500,000 underlying shares of HAS. Below is a chart showing HAS's trailing twelve month trading history, with the $45 strike highlighted in orange:
For the various different available expirations for ENPH options, AAPL options, or HAS options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Earnings Calendar
PLMR YTD Return
Top Ten Hedge Funds Holding ARHS
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $125 strike put option expiring January 06, 2023, with 53,915 contracts trading so far today, representing approximately 5.4 million underlying shares of AAPL. Below is a chart showing ENPH's trailing twelve month trading history, with the $235 strike highlighted in orange: Apple Inc (Symbol: AAPL) options are showing a volume of 973,260 contracts thus far today. That number of contracts represents approximately 97.3 million underlying shares, working out to a sizeable 115.3% of AAPL's average daily trading volume over the past month, of 84.4 million shares.
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Below is a chart showing ENPH's trailing twelve month trading history, with the $235 strike highlighted in orange: Apple Inc (Symbol: AAPL) options are showing a volume of 973,260 contracts thus far today. Particularly high volume was seen for the $125 strike put option expiring January 06, 2023, with 53,915 contracts trading so far today, representing approximately 5.4 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $125 strike highlighted in orange: And Hasbro, Inc. (Symbol: HAS) saw options trading volume of 19,366 contracts, representing approximately 1.9 million underlying shares or approximately 108% of HAS's average daily trading volume over the past month, of 1.8 million shares.
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Particularly high volume was seen for the $125 strike put option expiring January 06, 2023, with 53,915 contracts trading so far today, representing approximately 5.4 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $125 strike highlighted in orange: And Hasbro, Inc. (Symbol: HAS) saw options trading volume of 19,366 contracts, representing approximately 1.9 million underlying shares or approximately 108% of HAS's average daily trading volume over the past month, of 1.8 million shares. Below is a chart showing ENPH's trailing twelve month trading history, with the $235 strike highlighted in orange: Apple Inc (Symbol: AAPL) options are showing a volume of 973,260 contracts thus far today.
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Particularly high volume was seen for the $125 strike put option expiring January 06, 2023, with 53,915 contracts trading so far today, representing approximately 5.4 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $125 strike highlighted in orange: And Hasbro, Inc. (Symbol: HAS) saw options trading volume of 19,366 contracts, representing approximately 1.9 million underlying shares or approximately 108% of HAS's average daily trading volume over the past month, of 1.8 million shares. Below is a chart showing HAS's trailing twelve month trading history, with the $45 strike highlighted in orange: For the various different available expirations for ENPH options, AAPL options, or HAS options, visit StockOptionsChannel.com.
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17704.0
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2023-01-06 00:00:00 UTC
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See Which Of The Latest 13F Filers Holds Apple
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AAPL
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https://www.nasdaq.com/articles/see-which-of-the-latest-13f-filers-holds-apple-5
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nan
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nan
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At Holdings Channel, we have reviewed the latest batch of the 21 most recent 13F filings for the 12/31/2022 reporting period, and noticed that Apple Inc (Symbol: AAPL) was held by 15 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
Before we proceed, it is important to point out that 13F filings do not tell the whole story, because these funds are only required to disclose their long positions with the SEC, but are not required to disclose their short positions. A fund making a bearish bet against a stock by shorting calls, for example, might also be long some amount of stock as they trade around their overall bearish position. This long component could show up in a 13F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen.
Having given that caveat, we believe that looking at groups of 13F filings can be revealing, especially when comparing one holding period to another. Below, let's take a look at the change in AAPL positions, for this latest batch of 13F filers:
FUND NEW POSITION? CHANGE IN SHARE COUNT CHANGE IN MARKET VALUE ($ IN 1000'S)
Fulton Bank N.A. Existing -2,796 -$2,972
Lynch & Associates IN Existing -372 -$441
Martin Capital Partners LLC Existing -9,677 -$1,378
Waller Financial Planning Group Inc. Existing +2 -$122
First National Bank of Mount Dora Trust Investment Services Existing +1,348 -$418
Atlas Brown Inc. Existing -3,736 -$1,156
Capital Investment Advisors LLC Existing +19,810 -$878
West Oak Capital LLC Existing -905 -$371
GP Brinson Investments LLC Existing UNCH -$347
Future Financial Wealth Managment LLC Existing -278 -$106
Windward Capital Management Co. CA Existing -5,062 -$9,137
Legacy Private Trust Co. Existing -4,737 -$2,305
Rise Advisors LLC Existing -75 -$201
Insight Wealth Strategies LLC Existing -26,914 -$3,922
Massmutual Trust Co. FSB ADV Existing +2,065 -$5,578
Aggregate Change: -31,327 -$29,332
In terms of shares owned, we count 4 of the above funds having increased existing AAPL positions from 09/30/2022 to 12/31/2022, with 10 having decreased their positions. Worth noting is that Spence Asset Management, included in this recent batch of 13F filers, exited AAPL common stock as of 12/31/2022.
Looking beyond these particular funds in this one batch of most recent filers, we tallied up the AAPL share count in the aggregate among all of the funds which held AAPL at the 12/31/2022 reporting period (out of the 50 we looked at in total). We then compared that number to the sum total of AAPL shares those same funds held back at the 09/30/2022 period, to see how the aggregate share count held by hedge funds has moved for AAPL. We found that between these two periods, funds increased their holdings by 14,087 shares in the aggregate, from 6,377,840 up to 6,391,927 for a share count increase of approximately 0.22%. The overall top three funds holding AAPL on 12/31/2022 were:
» FUND SHARES OF AAPL HELD
1. Bartlett & Co. LLC 1,848,380
2. Neville Rodie & Shaw Inc. 686,480
3. Cacti Asset Management LLC 586,442
4-10 Find out the full Top 10 Hedge Funds Holding AAPL »
We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like Apple Inc (Symbol: AAPL).
10 S&P 500 Components Hedge Funds Are Buying »
Also see:
HON Technical Analysis
TWCB market cap history
VNDA Options Chain
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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At Holdings Channel, we have reviewed the latest batch of the 21 most recent 13F filings for the 12/31/2022 reporting period, and noticed that Apple Inc (Symbol: AAPL) was held by 15 of these funds. Worth noting is that Spence Asset Management, included in this recent batch of 13F filers, exited AAPL common stock as of 12/31/2022. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like Apple Inc (Symbol: AAPL).
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Existing -4,737 -$2,305 Rise Advisors LLC Existing -75 -$201 Insight Wealth Strategies LLC Existing -26,914 -$3,922 Massmutual Trust Co. FSB ADV Existing +2,065 -$5,578 Aggregate Change: -31,327 -$29,332 In terms of shares owned, we count 4 of the above funds having increased existing AAPL positions from 09/30/2022 to 12/31/2022, with 10 having decreased their positions. Cacti Asset Management LLC 586,442 4-10 Find out the full Top 10 Hedge Funds Holding AAPL » We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. At Holdings Channel, we have reviewed the latest batch of the 21 most recent 13F filings for the 12/31/2022 reporting period, and noticed that Apple Inc (Symbol: AAPL) was held by 15 of these funds.
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Existing -4,737 -$2,305 Rise Advisors LLC Existing -75 -$201 Insight Wealth Strategies LLC Existing -26,914 -$3,922 Massmutual Trust Co. FSB ADV Existing +2,065 -$5,578 Aggregate Change: -31,327 -$29,332 In terms of shares owned, we count 4 of the above funds having increased existing AAPL positions from 09/30/2022 to 12/31/2022, with 10 having decreased their positions. Cacti Asset Management LLC 586,442 4-10 Find out the full Top 10 Hedge Funds Holding AAPL » We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. At Holdings Channel, we have reviewed the latest batch of the 21 most recent 13F filings for the 12/31/2022 reporting period, and noticed that Apple Inc (Symbol: AAPL) was held by 15 of these funds.
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Existing -4,737 -$2,305 Rise Advisors LLC Existing -75 -$201 Insight Wealth Strategies LLC Existing -26,914 -$3,922 Massmutual Trust Co. FSB ADV Existing +2,065 -$5,578 Aggregate Change: -31,327 -$29,332 In terms of shares owned, we count 4 of the above funds having increased existing AAPL positions from 09/30/2022 to 12/31/2022, with 10 having decreased their positions. Looking beyond these particular funds in this one batch of most recent filers, we tallied up the AAPL share count in the aggregate among all of the funds which held AAPL at the 12/31/2022 reporting period (out of the 50 we looked at in total). Cacti Asset Management LLC 586,442 4-10 Find out the full Top 10 Hedge Funds Holding AAPL » We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods.
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17705.0
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2023-01-06 00:00:00 UTC
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Tech Sell-Off: 2 Growth Stocks to Buy in 2023
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AAPL
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https://www.nasdaq.com/articles/tech-sell-off%3A-2-growth-stocks-to-buy-in-2023
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A stock market sell-off in 2022 affected various industries, effectively putting shares in some of the world's most valuable companies on sale. The tech industry has long been known for its wealth of growth stocks, making the start of 2023 an excellent time to pick some up for a bargain.
Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA) have experienced steep stock declines over the last year. However, they remain compelling investments with increasingly diverse businesses. Even with decreases in their shares in 2022, both Apple and Nvidia have retained triple-digit growth in their stocks since 2018.
Here are two growth stocks to buy hand over fist in 2023 after last year's tech sell-off.
1. Apple
Even after an ugly month when Apple's stock fell 14% since Dec. 4, the iPhone company continues to be easy to recommend. It's home to a potent brand, some of the world's most in-demand products, and a swiftly growing services business to boot.
In Apple's fiscal 2022, revenue grew 8% to $394.3 billion. While iPhone revenue accounted for 52% of the year's revenue and increased by 7%, the company's services provided the most promise for its long-term future. The subscription-based segment earned the second-largest amount of revenue and reported double the iPhone's year-over-year growth at 14%, reaching $78.1 billion. However, the most impressive part of the segment was its 71.7% profit margin, while the same metric for products came to 36.3%.
For a large portion of 2022, Apple shares primarily suffered macroeconomic headwinds affecting the entire market, bringing its stock down roughly 27% over the year. However, over the last month, COVID-19-fueled production issues in China have concerned investors over its dependency on the country.
Apple shares have begun trending upward again since Foxconn -- also known as Hon Hai Technology Group, which manufactures about 70% of all iPhones -- reported production is back to 90% capacity. However, the issues have motivated Apple to move out of China entirely in the coming years to countries such as Taiwan and India, where it already makes a portion of its products.
Although production woes have led the media to paint a doom and gloom picture of Apple in recent months, the company's stock has still risen 182% in the last five years. Additionally, the company's free cash flow as of Sept. 30 came to $111.44 billion, significantly more than its peers in the tech industry, as seen in the table below.
Data by YCharts
Apple's booming services business sees the company leaning less on its products for growth, while its considerable free cash flow proves it is well-equipped to invest in a move out of China. The company's stock may have taken a tumble, but the dip makes it a compelling buy in 2023.
2. Nvidia
In the third quarter of 2022, the graphics processing unit (GPU) market saw worldwide shipments decrease by 25.1%, its biggest quarterly decline since 2009. As the biggest name in discrete GPUs with its 72% market share, Nvidia suffered significant losses in its stock price and revenue.
In its latest quarter, the company's gaming segment, which includes revenue from consumer GPUs, reported a revenue fall of 51% to $1.57 billion. The losses only pushed its stock down further, which has plunged 48% year over year.
Despite significant losses to Nvidia's core business during the quarter, there continue to be areas to rally over. For instance, its highest-earning segment in the quarter was data centers, which reported year-over-year revenue growth of 30.5%, earning $3.8 billion.
The stellar growth was a reflection of the booming cloud-computing industry, which hit a value of $368.97 billion in 2021 and will see a compound annual growth rate (CAGR) of 15.7% until 2030. Data centers and GPUs like Nvidia's are vital to the market's growth, with Nvidia well positioned to profit for the long term.
In fact, Nvidia will take a promising step toward growing its data center business in 2023 by partnering with Microsoft to use its Azure platform to build a massive supercomputer that will utilize Nvidia GPUs. Considering Azure is one of the biggest names in cloud computing, the collaboration could be lucrative for Nvidia's future.
Nvidia had a year to forget in 2022. However, its shares have still risen 156% since 2018 despite declines, proving its worth as a growth stock. Economic headwinds affecting consumer demand for GPUs will not last forever. When they do improve, Nvidia will be home to a dominating GPU business. This will happen all while it plays a crucial role in the growth of cloud computing, making Nvidia's stock a must-buy in 2023.
10 stocks we like better than Apple
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*Stock Advisor returns as of December 1, 2022
Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA) have experienced steep stock declines over the last year. Apple shares have begun trending upward again since Foxconn -- also known as Hon Hai Technology Group, which manufactures about 70% of all iPhones -- reported production is back to 90% capacity. Although production woes have led the media to paint a doom and gloom picture of Apple in recent months, the company's stock has still risen 182% in the last five years.
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Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA) have experienced steep stock declines over the last year. As the biggest name in discrete GPUs with its 72% market share, Nvidia suffered significant losses in its stock price and revenue. For instance, its highest-earning segment in the quarter was data centers, which reported year-over-year revenue growth of 30.5%, earning $3.8 billion.
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Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA) have experienced steep stock declines over the last year. Even with decreases in their shares in 2022, both Apple and Nvidia have retained triple-digit growth in their stocks since 2018. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Dani Cook has no position in any of the stocks mentioned.
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Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA) have experienced steep stock declines over the last year. Here are two growth stocks to buy hand over fist in 2023 after last year's tech sell-off. Data by YCharts Apple's booming services business sees the company leaning less on its products for growth, while its considerable free cash flow proves it is well-equipped to invest in a move out of China.
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17706.0
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2023-01-06 00:00:00 UTC
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Wall St jumps as jobs, services data calm rate hike worries
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https://www.nasdaq.com/articles/wall-st-jumps-as-jobs-services-data-calm-rate-hike-worries
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By Ankika Biswas and Shubham Batra
Jan 6 (Reuters) - Wall Street's main indexes rallied on Friday as data that showed cooling wages and a contraction in U.S. services activity eased worries over the Federal Reserve's rate-hike trajectory.
The nonfarm payrolls rose by 223,000 jobs in December, data from the Labor Department showed, while a 0.3% rise in average earnings was smaller than expected and lower than the previous month.
The numbers for November were revised to show nonfarm payrolls rose by 256,000 and average earnings grew by 0.4%.
Another set of data showed U.S. services activity contracted for the first time in more than 2-1/2 years in December amid weakening demand, with more signs of inflation easing.
"These are all the signs that show that Fed's policy is working," said Mike Loewengart, head of model portfolio construction at Morgan Stanley Global Investment Office in New York.
"That is what investors are relieved to see because it shows that they are not going to have to become much more restrictive than they have."
Big technology and other growth stocks such as Apple Inc AAPL.O and Meta Platforms Inc META.O rose around 2% each, boosted by a decline in the 10-year U.S. Treasury yield. US10YT=RR
A resilient labor market has powered the economy through consumer spending, but could prompt the Fed to lift its target interest rate above the 5.1% peak it had projected last month and keep it there for a while.
Money market participants now see 75% chance that the U.S. central bank will raise the benchmark rate by 25-basis point in February and keep the terminal rate just below 5% by June. FEDWATCH
Also aiding sentiment were Fed officials acknowledging cooling wage growth and other signs of the economy gradually slowing, with Atlanta President Raphael Bostic hinting at the chances of a quarter percentage point hike at the next policy meeting.
At 12:11 a.m. ET, the Dow Jones Industrial Average .DJI was up 601.66 points, or 1.83%, at 33,531.74, the S&P 500 .SPX was up 69.18 points, or 1.82%, at 3,877.28, and the Nasdaq Composite .IXIC was up 187.11 points, or 1.82%, at 10,492.35.
All the major S&P 500 indexes gained, led by consumer staples .SPLRCS, which rose 6.6% on boost from Costco Wholesale Corp COST.O after the membership-only retail chain reported strong sales growth in December.
Pfizer Inc PFE.N advanced 2.5% on reports of talks with China to secure a license that will allow domestic drugmakers to manufacture and distribute a generic version of the U.S. firm's COVID-19 antiviral drug Paxlovid in China.
Bed Bath & Beyond Inc BBBY.O slid 20.4% after Reuters reported that the home goods retailer was preparing to seek bankruptcy protection in coming weeks.
Advancing issues outnumbered decliners by a 7.02-to-1 ratio on the NYSE and 2.61-to-1 ratio on the Nasdaq.
The S&P index recorded 16 new 52-week highs and five new lows, while the Nasdaq recorded 65 new highs and 59 new lows.
(Reporting by Shubham Batra, Ankika Biswas and Shashwat Chauhan in Bengaluru; Editing by Shounak Dasgupta and Arun Koyyur)
((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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Big technology and other growth stocks such as Apple Inc AAPL.O and Meta Platforms Inc META.O rose around 2% each, boosted by a decline in the 10-year U.S. Treasury yield. By Ankika Biswas and Shubham Batra Jan 6 (Reuters) - Wall Street's main indexes rallied on Friday as data that showed cooling wages and a contraction in U.S. services activity eased worries over the Federal Reserve's rate-hike trajectory. FEDWATCH Also aiding sentiment were Fed officials acknowledging cooling wage growth and other signs of the economy gradually slowing, with Atlanta President Raphael Bostic hinting at the chances of a quarter percentage point hike at the next policy meeting.
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Big technology and other growth stocks such as Apple Inc AAPL.O and Meta Platforms Inc META.O rose around 2% each, boosted by a decline in the 10-year U.S. Treasury yield. By Ankika Biswas and Shubham Batra Jan 6 (Reuters) - Wall Street's main indexes rallied on Friday as data that showed cooling wages and a contraction in U.S. services activity eased worries over the Federal Reserve's rate-hike trajectory. The numbers for November were revised to show nonfarm payrolls rose by 256,000 and average earnings grew by 0.4%.
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Big technology and other growth stocks such as Apple Inc AAPL.O and Meta Platforms Inc META.O rose around 2% each, boosted by a decline in the 10-year U.S. Treasury yield. By Ankika Biswas and Shubham Batra Jan 6 (Reuters) - Wall Street's main indexes rallied on Friday as data that showed cooling wages and a contraction in U.S. services activity eased worries over the Federal Reserve's rate-hike trajectory. The nonfarm payrolls rose by 223,000 jobs in December, data from the Labor Department showed, while a 0.3% rise in average earnings was smaller than expected and lower than the previous month.
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Big technology and other growth stocks such as Apple Inc AAPL.O and Meta Platforms Inc META.O rose around 2% each, boosted by a decline in the 10-year U.S. Treasury yield. By Ankika Biswas and Shubham Batra Jan 6 (Reuters) - Wall Street's main indexes rallied on Friday as data that showed cooling wages and a contraction in U.S. services activity eased worries over the Federal Reserve's rate-hike trajectory. The nonfarm payrolls rose by 223,000 jobs in December, data from the Labor Department showed, while a 0.3% rise in average earnings was smaller than expected and lower than the previous month.
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17707.0
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2023-01-06 00:00:00 UTC
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4 Artificial Intelligence Stocks to Buy in 2023
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https://www.nasdaq.com/articles/4-artificial-intelligence-stocks-to-buy-in-2023
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Artificial intelligence is exploding as OpenAI, Stable Diffusion, Midjourney, and others release their AI models and products to the world. But not all companies will benefit from AI and most AI companies aren't public. But there are some options for investors, including TSMC, Apple, and Nvidia.
*Stock prices used were end-of-day prices of Dec. 21, 2022. The video was published on Jan. 5, 2023.
10 stocks we like better than Taiwan Semiconductor Manufacturing
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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.
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*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. Travis Hoium has positions in Alphabet and Apple. The Motley Fool has positions in and recommends Alphabet, Apple, Nvidia, 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. 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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Artificial intelligence is exploding as OpenAI, Stable Diffusion, Midjourney, and others release their AI models and products to the world. * 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! The Motley Fool has positions in and recommends Alphabet, Apple, Nvidia, and Taiwan Semiconductor Manufacturing.
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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 Alphabet, Apple, Nvidia, 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.
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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. The Motley Fool has positions in and recommends Alphabet, Apple, Nvidia, 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.
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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. The Motley Fool has positions in and recommends Alphabet, Apple, Nvidia, and Taiwan Semiconductor Manufacturing. Their opinions remain their own and are unaffected by The Motley Fool.
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17708.0
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2023-01-06 00:00:00 UTC
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The Top 5 Risks to Your Investment Portfolio in 2023
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https://www.nasdaq.com/articles/the-top-5-risks-to-your-investment-portfolio-in-2023
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Just because the calendar has changed doesn’t mean the investing environment has changed. The same problems we had when leaving 2022 are still here in 2023, presenting investment risks to investors.
Let’s not sugarcoat it: 2022 was a hard and painful year.
Equities suffered as the S&P 500 fell about 20%, while the Nasdaq dropped even more, falling 33%. Because of the financial power of mega-cap tech, the Nasdaq has usually kept pace with the S&P 500 on the downside while demonstrating more upside potential. That wasn’t the case in 2022.
Further, cryptocurrencies were hammered, and bonds had one of their worst years on record. In fact, many facets of the bond market had their worst year of performance since 1900.
While we will eventually dig ourselves out of this mess, what investment risks are still present?
Investment Risks: Recession
Source: Shutterstock
A recession is one of the top investment risks as we enter 2023. Say what you will about the economy, but should the U.S. slip into a recession, it will hurt more than just the tech industry.
Tech is going through a recession of its own, but once ad spending, consumer spending, and investments come down, the industry will face another wave of difficulties. The consumer has been resilient, but they can only hold up for so long.
Make it a global recession rather than just a domestic recession — given the strength of the U.S. consumer vs. other consumer-based economies — and the situation gets even worse for multinational companies.
Lower sales tend to equal lower earnings, and lower earnings equal lower stock prices.
The good news? The stock market tends to bottom before the economy bottoms, so we may not be all that far away from some good news in stocks, even if there is a recession.
Investment Risks: Inflation
Source: Deemerwha studio / Shutterstock
If inflation can’t get brought under control, it will continue to wreak havoc on the economy. Although prices are coming down, there’s still a risk that we end up in an ultra-high-inflation environment.
Thankfully, that doesn’t seem to be the trajectory we’re on right now.
However, if inflation remains stubbornly high, it will erode the purchasing power of consumers and keep costs elevated for companies. Think of how high fuel costs or logistic costs impact consumers, then think of the companies shipping millions of products all over the world.
Again, inflation is coming down, but it needs to stay down in order for the next risk on our list to stay at bay.
Investment Risks: Interest Rates (and the Federal Reserve)
Source: eamesBot / Shutterstock
I want investors to understand one thing: Don’t fight the Fed.
Yes, it’s possible for stocks to rally when interest rates are elevated. Further, there are other considerations outside of the Fed when determining whether traders and investors should be long, flat, or short stocks.
However, when the Fed is hawkish, risk assets like stocks tend to perform poorly. The riskier the stock, the worse it performs. Just look at Roku (NASDAQ:ROKU) vs. International Business Machines (NYSE:IBM) or Apple (NASDAQ:AAPL) vs. PepsiCo (NASDAQ:PEP).
When we look back over the last 10 to 12 years, the Fed has been accommodative for most of those years. That is to say; it’s been dovish most of the time.
It tried to change its tune in the third quarter of 2018. By the time December rolled around a few months later, the S&P 500 and Nasdaq had fallen 20% and 23%, respectively. It was an annihilation. Considering that the S&P 500 suffered a peak-to-trough decline of 27.5% in 2022, and it took about ten months to do it, a three-month 20% decline was brutal.
After again moving from dovish to hawkish last year, stocks have paid the price. So the risk is pretty simple: If the Fed remains aggressively hawkish, stocks are in trouble.
For now, though, the Fed is expected to raise rates just a bit from current levels, then maintain those rates for most of 2023. Let’s see if that’s the case.
Dollar Strength
Source: rafastockbr / Shutterstock.com
Another one of our investment risks to watch is the US dollar. This can be followed via the US Dollar Index (DXY) or the Invesco DB US Dollar Index Bullish Fund (NYSEARCA:UUP), both of which performed quite well in 2022.
While a strong dollar may be great for travelers when they go overseas, it’s not great for multinational companies with a global footprint.
Those companies’ overseas profits are now worth less, putting a squeeze on earnings. And as we discussed before, lower earnings tend to equal lower stock prices, as valuations generally decline.
Volatility
Source: Shutterstock
Lastly, keep in mind volatility is still a major risk for investors this year. The S&P 500 just trudged through a terrible year. Bonds have as well, as yields, currencies, and many other asset classes bounce around.
Volatility in and of itself isn’t necessarily bad, but it can push investors into making poor, emotionally-driven decisions.
One way to counter that is by keeping a higher-than-usual cash position on hand and by taking smaller position sizes. If you usually allocate 8% to 10% of your portfolio to one position, consider a 4% to 5% stake.
If you are someone who goes all-in and all-out of index positions — like the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) — then consider half-sized positions.
Just know that elevated volatility can create sudden and unexpected moves, and investors need to find ways to counter those potential hazards.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post The Top 5 Risks to Your Investment Portfolio 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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Just look at Roku (NASDAQ:ROKU) vs. International Business Machines (NYSE:IBM) or Apple (NASDAQ:AAPL) vs. PepsiCo (NASDAQ:PEP). However, if inflation remains stubbornly high, it will erode the purchasing power of consumers and keep costs elevated for companies. Investment Risks: Interest Rates (and the Federal Reserve) Source: eamesBot / Shutterstock I want investors to understand one thing: Don’t fight the Fed.
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Just look at Roku (NASDAQ:ROKU) vs. International Business Machines (NYSE:IBM) or Apple (NASDAQ:AAPL) vs. PepsiCo (NASDAQ:PEP). Lower sales tend to equal lower earnings, and lower earnings equal lower stock prices. However, when the Fed is hawkish, risk assets like stocks tend to perform poorly.
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Just look at Roku (NASDAQ:ROKU) vs. International Business Machines (NYSE:IBM) or Apple (NASDAQ:AAPL) vs. PepsiCo (NASDAQ:PEP). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Just because the calendar has changed doesn’t mean the investing environment has changed. Investment Risks: Recession Source: Shutterstock A recession is one of the top investment risks as we enter 2023.
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Just look at Roku (NASDAQ:ROKU) vs. International Business Machines (NYSE:IBM) or Apple (NASDAQ:AAPL) vs. PepsiCo (NASDAQ:PEP). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Just because the calendar has changed doesn’t mean the investing environment has changed. Investment Risks: Recession Source: Shutterstock A recession is one of the top investment risks as we enter 2023.
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17709.0
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2023-01-06 00:00:00 UTC
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Is Schwab Fundamental U.S. Broad Market Index ETF (FNDB) a Strong ETF Right Now?
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https://www.nasdaq.com/articles/is-schwab-fundamental-u.s.-broad-market-index-etf-fndb-a-strong-etf-right-now-5
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The Schwab Fundamental U.S. Broad Market Index ETF (FNDB) made its debut on 08/13/2013, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - All Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Because the fund has amassed over $467.46 million, this makes it one of the larger ETFs in the Style Box - All Cap Value. FNDB is managed by Charles Schwab. This particular fund, before fees and expenses, seeks to match the performance of the Russell RAFI US Index.
The Russell RAFI US Index measures the performance of the constituent companies by fundamental overall company scores.
Cost & Other Expenses
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 FNDB are 0.25%, which makes it one of the cheaper products in the space.
It's 12-month trailing dividend yield comes in at 1.97%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
For FNDB, it has heaviest allocation in the Financials sector --about 14.80% of the portfolio --while Information Technology and Healthcare round out the top three.
Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.07% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT).
Its top 10 holdings account for approximately 18.09% of FNDB's total assets under management.
Performance and Risk
The ETF has added roughly 0.38% so far this year and is down about -8.01% in the last one year (as of 01/06/2023). In the past 52-week period, it has traded between $47.13 and $59.23.
FNDB has a beta of 1.02 and standard deviation of 25.28% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 1709 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab Fundamental U.S. Broad Market Index ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Dimensional U.S. Targeted Value ETF (DFAT) tracks ---------------------------------------- and the iShares Core S&P U.S. Value ETF (IUSV) tracks S&P 900 Value Index. Dimensional U.S. Targeted Value ETF has $7.39 billion in assets, iShares Core S&P U.S. Value ETF has $12.87 billion. DFAT has an expense ratio of 0.29% and IUSV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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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Schwab Fundamental U.S. Broad Market Index ETF (FNDB): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports
Dimensional U.S. Targeted Value ETF (DFAT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.07% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Click to get this free report Schwab Fundamental U.S. Broad Market Index ETF (FNDB): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
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Click to get this free report Schwab Fundamental U.S. Broad Market Index ETF (FNDB): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.07% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). 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.
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Click to get this free report Schwab Fundamental U.S. Broad Market Index ETF (FNDB): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.07% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). The Schwab Fundamental U.S. Broad Market Index ETF (FNDB) made its debut on 08/13/2013, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - All Cap Value category of the market.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.07% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Click to get this free report Schwab Fundamental U.S. Broad Market Index ETF (FNDB): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. The Schwab Fundamental U.S. Broad Market Index ETF (FNDB) made its debut on 08/13/2013, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - All Cap Value category of the market.
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2023-01-06 00:00:00 UTC
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Should BNY Mellon US Large Cap Core Equity ETF (BKLC) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-bny-mellon-us-large-cap-core-equity-etf-bklc-be-on-your-investing-radar-4
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The BNY Mellon US Large Cap Core Equity ETF (BKLC) was launched on 04/09/2020, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Bny Mellon. It has amassed assets over $423.85 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0%, making it the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.65%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 29.10% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.65% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 33.35% of total assets under management.
Performance and Risk
BKLC seeks to match the performance of the MORNINGSTAR U.S. LARGE CAP INDEX before fees and expenses. The Morningstar US Large Cap Index is a float-adjusted market capitalization weighted index designed to measure the performance of U.S. large-capitalization stocks.
The ETF has lost about -0.98% so far this year and is down about -20.03% in the last one year (as of 01/06/2023). In the past 52-week period, it has traded between $65.88 and $88.66.
The ETF has a beta of 1.03 and standard deviation of 20.15% for the trailing three-year period. With about 218 holdings, it effectively diversifies company-specific risk.
Alternatives
BNY Mellon US Large Cap Core Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, BKLC is a good option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $287.11 billion in assets, SPDR S&P 500 ETF has $351.90 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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
BNY Mellon US Large Cap Core Equity ETF (BKLC): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.65% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report BNY Mellon US Large Cap Core Equity ETF (BKLC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $423.85 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.
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Click to get this free report BNY Mellon US Large Cap Core Equity ETF (BKLC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.65% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). The BNY Mellon US Large Cap Core Equity ETF (BKLC) was launched on 04/09/2020, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report BNY Mellon US Large Cap Core Equity ETF (BKLC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.65% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). The BNY Mellon US Large Cap Core Equity ETF (BKLC) was launched on 04/09/2020, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.65% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report BNY Mellon US Large Cap Core Equity ETF (BKLC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. The BNY Mellon US Large Cap Core Equity ETF (BKLC) was launched on 04/09/2020, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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2023-01-06 00:00:00 UTC
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5 Stocks Warren Buffett Is Betting Big on for 2023
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https://www.nasdaq.com/articles/5-stocks-warren-buffett-is-betting-big-on-for-2023
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If you've ever wondered why Wall Street pays so much attention to billionaire investor Warren Buffett, look no further than his track record as CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). Since becoming CEO in 1965, the Oracle of Omaha has nearly doubled the average annual total return of the broad-based S&P 500, including dividends (20.1% versus 10.5%).
This outperformance continued during the 2022 bear market. Despite a 19% decline in the S&P 500 last year, Berkshire Hathaway's stock gained 4%. In other words, it pays to know what Warren Buffett is buying and selling because he has a tendency to run circles around the broader market.
Thankfully, 13F filings with the Securities and Exchange Commission and Berkshire Hathaway's quarterly operating results give us a clear look at what's piquing the interest of Buffett and his investment team. As we barrel ahead into 2023, Warren Buffett is betting big on the following five stocks.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Chevron
Perhaps the biggest shift in Warren Buffett's investment approach last year was the amount of capital he and his team put to work in energy stocks. Topping that list was the integrated oil and gas company Chevron (NYSE: CVX). In a two-year stretch beginning Oct. 1, 2020 and ending Sept. 30, 2022, Buffett's company spent an estimated $20.9 billion buying shares of Chevron.
Prior to 2022, energy stocks had not comprised more than 8.9% of Berkshire Hathaway's investment portfolio this century. Last year, this weighting rose to as high as 13% and is a clear indication that Buffett and his team believe energy commodity prices will remain high for the foreseeable future.
Ultimately, supply and demand dictate where the spot price of crude oil will head. With Russia invading Ukraine and global energy companies underinvesting in drilling, exploration, and infrastructure during the COVID-19 pandemic, the global supply of crude oil and natural gas is in question. Since it's unlikely that the supply of these energy commodities can be quickly increased, supply-and-demand economics would state that modestly higher demand could lead to sustainably higher price points for crude oil and natural gas.
In addition to higher energy commodity prices, Buffett has to be impressed with Chevron's much-improved balance sheet and beefed-up capital-return program. Through the first nine months of 2022, Chevron's net debt shrunk from $25.7 billion to $8.2 billion. To boot, Chevron has increased its base annual dividend in each of the past 35 years.
Apple
Maybe the least-surprising stock Warren Buffett is betting big on in the new year is tech-stock Apple (NASDAQ: AAPL). I say "least surprising" because Apple is already Berkshire Hathaway's largest position by a considerable amount. However, that hasn't stopped the Oracle of Omaha from continuing to add to this stake.
Although innovation has been the cornerstone of Apple's valuation for decades, it's truly been the driving force since the company introduced the iPhone in 2007. Since the debut of 5G-capable iPhones two years ago, Apple has pretty consistently accounted for around half of all smartphone market share in the U.S.
But Apple is about more than the physical products that have brought it acclaim. For years, it's been expanding its universe of subscription services and steadily evolving into a platform-based company. Subscription services offer sustainably high margins and double-digit sales growth. Most importantly, as services grow into a larger percentage of Apple's total sales, it'll minimize the revenue swings that can accompany iPhone replacement cycles.
Apple's capital-return initiatives are also top-notch. Since the beginning of 2013, it has repurchased $554 billion worth of its common stock. For some context, only five S&P 500-listed companies have a market cap above $554 billion; Apple is one of them.
Image source: Getty Images.
Occidental Petroleum
It's not just Chevron that's caught the attention of Warren Buffett and his team within the energy space. Last year, Berkshire Hathaway acquired more than 194 million shares of Occidental Petroleum (NYSE: OXY), which is in addition to the $10 billion in Occidental preferred stock yielding 8% annually that Buffett's company has held since 2019.
The drivers for Occidental Petroleum are very similar to Chevron, but with a few added twists. While both companies can benefit from sustainably higher crude oil and natural gas prices, Occidental's revenue mix is even more skewed than Chevron's to drilling. This means a higher price per barrel for West Texas Intermediate (WTI) crude oil could really pump up Occidental's operating cash flow.
On the other side of the coin, Occidental's balance sheet is a mess when compared to Chevron's. Whereas Chevron has one of the lowest debt-to-equity ratios among oil and gas stocks, Occidental has been buried in debt following its 2019 acquisition of Anadarko Petroleum. Although the company has successfully reduced its net long-term debt by $15 billion over the past two years, it'll still need WTI crude prices to remain elevated to further whittle down its $20.5 billion in net long-term debt, as of Sept. 30, 2022.
Despite these leverage concerns, Occidental Petroleum has reinstated its share-buyback program and expects to continue chipping away at its long-term debt.
Taiwan Semiconductor Manufacturing Company
The Oracle of Omaha and his team are also betting big on foundry-giant Taiwan Semiconductor Manufacturing Company (NYSE: TSM), which is better known as "TSMC." Berkshire Hathaway purchased in the neighborhood of $4 billion worth of TSMC shares in the third quarter of 2022.
While there are likely a few reasons for this purchase, the most logical is that TSMC is Apple's sole supplier of silicon processors. Every product Apple makes that utilizes silicon processors is fabricated by TSMC. With more than 37% of Berkshire's invested assets tied up in Apple, it makes sense to bet on the success of one of Apple's core suppliers.
Another reason for Buffett and his investment team to be excited about TSMC's prospects is its sheer size. It's the largest foundry in the world and seemingly has its proverbial fingers in every industry where semiconductor solutions are involved.
Although a combined 80% of its fabrication revenue derives from smartphones and high-powered computers, the company is now generating 10% of its sales from Internet-of-Things (IoT) devices and 5% from next-gen automobiles. IoT and automotive are sustained double-digit growth opportunities.
Taiwan Semiconductor is also doling out a market-topping 2.4% yield. Buffett has always appreciated publicly traded companies that reward patience from their shareholders.
Berkshire Hathaway
The fifth stock Warren Buffett is betting big on in 2023 is none other than his own company, Berkshire Hathaway. Since mid-July 2018, he and executive vice chairman Charlie Munger have OK'd the repurchase of more than $63 billion of Berkshire Hathaway common stock. That's more than Berkshire has spent buying shares of Apple and Chevron combined since the beginning of 2016.
One reason Buffett is such a proponent of share buybacks is that it increases the ownership stake of investors without them having to lift a finger. If the outstanding share count is reduced, each remaining share held by investors becomes that much scarcer (and potentially valuable).
Another reason to complete share repurchases is to make a company more fundamentally attractive to investors. A company like Berkshire Hathaway that offers steady or growing net income -- not factoring in unrealized gains and losses associated with its investments -- and a declining outstanding share count should enjoy an earnings-per-share lift over time.
But this aggressive share buyback is also a clear sign from the Oracle of Omaha that he expects his investment and acquisition strategy to continue paying off -- and that's been the case for 58 years (and counting). Berkshire Hathaway's portfolio is packed with cyclical stocks and close to three dozen dividend-paying companies. In short, it's perfectly positioned to benefit from lengthy bull markets.
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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 Taiwan Semiconductor Manufacturing. 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 Maybe the least-surprising stock Warren Buffett is betting big on in the new year is tech-stock Apple (NASDAQ: AAPL). Thankfully, 13F filings with the Securities and Exchange Commission and Berkshire Hathaway's quarterly operating results give us a clear look at what's piquing the interest of Buffett and his investment team. A company like Berkshire Hathaway that offers steady or growing net income -- not factoring in unrealized gains and losses associated with its investments -- and a declining outstanding share count should enjoy an earnings-per-share lift over time.
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Apple Maybe the least-surprising stock Warren Buffett is betting big on in the new year is tech-stock Apple (NASDAQ: AAPL). While both companies can benefit from sustainably higher crude oil and natural gas prices, Occidental's revenue mix is even more skewed than Chevron's to drilling. Taiwan Semiconductor Manufacturing Company The Oracle of Omaha and his team are also betting big on foundry-giant Taiwan Semiconductor Manufacturing Company (NYSE: TSM), which is better known as "TSMC."
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Apple Maybe the least-surprising stock Warren Buffett is betting big on in the new year is tech-stock Apple (NASDAQ: AAPL). Last year, Berkshire Hathaway acquired more than 194 million shares of Occidental Petroleum (NYSE: OXY), which is in addition to the $10 billion in Occidental preferred stock yielding 8% annually that Buffett's company has held since 2019. Berkshire Hathaway The fifth stock Warren Buffett is betting big on in 2023 is none other than his own company, Berkshire Hathaway.
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Apple Maybe the least-surprising stock Warren Buffett is betting big on in the new year is tech-stock Apple (NASDAQ: AAPL). Berkshire Hathaway CEO Warren Buffett. Subscription services offer sustainably high margins and double-digit sales growth.
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2023-01-06 00:00:00 UTC
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My Top Stock to Buy for 2023 (and It's Not Even Close)
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AAPL
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https://www.nasdaq.com/articles/my-top-stock-to-buy-for-2023-and-its-not-even-close
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In 2022, Amazon.com (NASDAQ: AMZN) set a record as the world's first public company to lose over $1 trillion in value.
The stock is up just 14.4% in the last four years and is down 54% from its all-time high, heavily underperforming the Nasdaq Composite and S&P 500.
However, Amazon's wide moat, innovation, and industry-leading position in cloud IT infrastructure and e-commerce make it a business that could one day become the most valuable publicly traded U.S.-based company. But to get there, Amazon needs to first boost its profitability and prove to investors that it can be more disciplined with its spending.
In the meantime, the stock could keep falling for several reasons within and outside of its control. Despite that risk, Amazon is simply too good of a company with too attractive of an investment thesis to pass up. Here's why it's my top stock for 2023.
Image source: Getty Images.
Amazon's approach is a double-edged sword
Amazon is famous for taking whatever cash flow from operations (CFO) it generates and pouring it back into its core business and new ventures. The result of this strategy is that Amazon seldom generates free cash flow (FCF) or net income.
Sometimes, the company wins big -- really big. Like in the case of Amazon Web Services (AWS), which is widely believed to account for the majority of Amazon's value today. Other notable successes include Amazon's acquisition of Twitch in 2014 for just $970 million in cash -- a steal in hindsight.
Amazon doesn't disclose Twitch revenue in its financial reporting. But according to Twitch, the company has more than 31 million average daily visitors.For comparison, Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) YouTube has over 122 million active users daily, according to Global Media Insight. YouTube ads generated over $7 billion in revenue in Alphabet's Q3 2022.
It's not an apples-to-apples comparison. But Twitch is similar to YouTube in that it makes most of its money from ads and compensates content creators by paying them for subscribers. Amazon also bundles Prime Gaming on Twitch with Amazon Prime and Prime Video -- expanding its subscription offering and making it more sticky.
In addition to Twitch, other noteworthy investments include Amazon Audible, security and alarm system Ring, and the Internet Movie Database (IMDb).
However, Amazon has also failed in obvious ways. The Amazon Fire Phone was a massive disappointment. Recently, there's been an argument that the company has been pouring too much money into both its streaming segment and its e-commerce business. The figures may shock you.
For the nine months ended Sept. 30, 2022, Amazon North America generated $222.5 billion in net sales but racked up $225.1 billion in operating expenses. The international segment was even worse, notching $83.5 billion in net sales but $89.1 billion in operating expenses. Together, Amazon North America and international posted an operating loss of $8.1 billion for the nine months ended Sept. 30, 2022. Meanwhile, AWS generated $58.7 billion in sales and only $41.1 in operating expenses, leading to operating income of $17.6 billion, which more than makes up for losses in other parts of the business.
So although AWS accounts for less than a fifth of Amazon's revenue, it is the real cash cow of the business that is bankrolling (and, in this case, bailing out) the company's e-commerce segment.
Amazon's business is hard to value right now
Slowing top-line growth and losses from Amazon's e-commerce segment paired with high margins and rapid growth from AWS make the company incredibly hard to value. Due to its lack of consistent profitability, the price-to-sales (P/S) ratio is commonly used to value Amazon. Amazon's P/S ratio is right around a 10-year low and well below its 10-year median.
AMZN PS Ratio data by YCharts
As attractive as the low P/S ratio is, it's not a good enough reason to buy Amazon stock right now because P/S overweights the value of the e-commerce business and underweights the value of AWS.
On the flip side, price-to-earnings or price-to-FCF ratios won't work because Amazon's earnings and FCF are so inconsistent.
In my opinion, price-to-CFO (P/CFO) does the best job of balancing Amazon's sales with its profitability. CFO, also known as operating cash flow, is just revenue minus operating expenses. CFO will account for operating losses from Amazon's North America business and its international segment while also showing the operating gains from AWS.
At the end of the day, Amazon needs to prove that it can generate positive CFO so that it isn't relying on equity or debt financing. In other words, some parts of the company can be struggling or losing cash so long as the overall CFO is growing.
Amazon's P/CFO is currently near a 10-year low and well below its 10-year median.
AMZN Price to CFO Per Share (TTM) data by YCharts
What this chart and the P/S chart tell us is that Amazon stock is relatively inexpensive based on both its sales and its CFO. But what investors really want to see is consistent FCF and growing earnings because CFO doesn't account for items like capital expenditures, taxes, interest expenses, depreciation, or amortization.
Being FCF positive in a business climate of rising interest rates allows a company to avoid taking on debt, fund acquisitions with cash, and buy back its own stock at a lower price. The issue with Amazon is that it doesn't have the wiggle room to do that because it pours so much money back into its business, which accelerates growth but also amplifies the impact of a recession.
How Amazon can fit into a diversified portfolio
Amazon stock is a relatively risky bet compared to its megacap peers like Apple, Microsoft, or Alphabet because it doesn't generate consistent FCF or earnings. But the company has repeatedly stated its long-term goals are to manage its share dilution and optimize its FCF. Over time, Amazon should become consistently FCF positive and profitable. It's just right now, the market is showing very little patience toward what a company could become and is focusing instead on what it is today.
Long-term investors are getting a chance to buy Amazon at a historically low P/S ratio and P/CFO ratio. The stock is practically the same price today as it was four years ago. Yet in the first three quarters of 2022 alone, AWS generated over 2.4 times more operating income than in all of 2018. And the company has made meaningful strides in Amazon Prime Video, advertising, and the e-commerce business, even though those improvements aren't bearing fruit in the short term.
Amazon is a massive business that can give an investor's portfolio exposure to so many different industries without the risk associated with investing in a smaller pure-play company. As bad as the short-term outlook is for Amazon, it's still in a great position to take market share during a recession. For that reason, it's the kind of growth stock that can appeal to a wide variety of investors and can even grow to become a foundational holding in a portfolio.
Find out why Amazon.com is one of the 10 best stocks to buy now
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. 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, 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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However, Amazon's wide moat, innovation, and industry-leading position in cloud IT infrastructure and e-commerce make it a business that could one day become the most valuable publicly traded U.S.-based company. But what investors really want to see is consistent FCF and growing earnings because CFO doesn't account for items like capital expenditures, taxes, interest expenses, depreciation, or amortization. Being FCF positive in a business climate of rising interest rates allows a company to avoid taking on debt, fund acquisitions with cash, and buy back its own stock at a lower price.
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For the nine months ended Sept. 30, 2022, Amazon North America generated $222.5 billion in net sales but racked up $225.1 billion in operating expenses. 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 recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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Amazon's approach is a double-edged sword Amazon is famous for taking whatever cash flow from operations (CFO) it generates and pouring it back into its core business and new ventures. Amazon's business is hard to value right now Slowing top-line growth and losses from Amazon's e-commerce segment paired with high margins and rapid growth from AWS make the company incredibly hard to value. How Amazon can fit into a diversified portfolio Amazon stock is a relatively risky bet compared to its megacap peers like Apple, Microsoft, or Alphabet because it doesn't generate consistent FCF or earnings.
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YouTube ads generated over $7 billion in revenue in Alphabet's Q3 2022. AMZN PS Ratio data by YCharts As attractive as the low P/S ratio is, it's not a good enough reason to buy Amazon stock right now because P/S overweights the value of the e-commerce business and underweights the value of AWS. CFO, also known as operating cash flow, is just revenue minus operating expenses.
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17713.0
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2023-01-06 00:00:00 UTC
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Will Roku Stock Outperform In 2023?
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AAPL
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https://www.nasdaq.com/articles/will-roku-stock-outperform-in-2023
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nan
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nan
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Digital media streaming company Roku (NASDAQ:ROKU) has had a challenging 2022, with its stock declining by about 83%, touching four-year lows. While tech stocks in general have been impacted by rising interest rates, there are multiple other factors weighing on Roku. Firstly, the company was impacted by supply chain-related issues in its streaming hardware business as well as lower subscriber growth following the easing of the Covid-19 restrictions. Moreover, the digital ad market is cooling off as the U.S. economy faces mounting headwinds. This is impacting discretionary spending by consumers and hurting marketers’ ad budgets. For the all-important holiday quarter, Roku has projected revenue of just about $800 million, marking a decline of about 7.5% versus last year. Profits are also being weighed down by weaker margins for the media player business and surging operating expenses, which were up by 70% year-over-year in Q3.
That being said, we don’t think the current headwinds warrant a sell-off of this magnitude for the stock. For perspective, Roku stock remains down by almost 92% from all-time highs seen in 2021. While Roku’s business faces headwinds, we believe that they are temporary and we believe its lucrative platform business should continue to expand in the long run as ad dollars continue to shift away from linear TV to digital video formats. In fact, many of the company’s key platform metrics are still expanding. Over Q3 Roku’s active accounts grew by 16% year-over-year to 65 million users, while average revenue per user increased by 10% to $44.25 per account. Engagement also remains pretty strong, with total hours streamed on the platform up by 21% year-over-year over the third quarter. Roku’s valuation is also looking very compelling. At the current market price of $41 per share, Roku trades at just about 2x its projected platform revenues for 2022, down from levels of well over 10x in 2021. This multiple is also below other digital ad players such as Snap and Facebook parent Meta, who both trade at about 3x. Moreover, Roku is actually growing more quickly compared to Snap and Facebook. We value Roku stock at $71 per share, which is about 70% ahead of the current market price. See our analysis on Roku Valuation: Expensive or Cheap for more details on what’s driving our price estimate for Roku. Our analysis of Roku Revenue has more details on the company’s business model and key revenue streams.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Jan 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
ROKU Return 0% 0% -21%
S&P 500 Return 0% 0% 71%
Trefis Multi-Strategy Portfolio 0% 0% 215%
[1] Month-to-date and year-to-date as of 1/1/2023
[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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While tech stocks in general have been impacted by rising interest rates, there are multiple other factors weighing on Roku. Firstly, the company was impacted by supply chain-related issues in its streaming hardware business as well as lower subscriber growth following the easing of the Covid-19 restrictions. For the all-important holiday quarter, Roku has projected revenue of just about $800 million, marking a decline of about 7.5% versus last year.
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Digital media streaming company Roku (NASDAQ:ROKU) has had a challenging 2022, with its stock declining by about 83%, touching four-year lows. Our analysis of Roku Revenue has more details on the company’s business model and key revenue streams. Total [2] ROKU Return 0% 0% -21% S&P 500 Return 0% 0% 71% Trefis Multi-Strategy Portfolio 0% 0% 215% [1] Month-to-date and year-to-date as of 1/1/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Digital media streaming company Roku (NASDAQ:ROKU) has had a challenging 2022, with its stock declining by about 83%, touching four-year lows. While Roku’s business faces headwinds, we believe that they are temporary and we believe its lucrative platform business should continue to expand in the long run as ad dollars continue to shift away from linear TV to digital video formats. Total [2] ROKU Return 0% 0% -21% S&P 500 Return 0% 0% 71% Trefis Multi-Strategy Portfolio 0% 0% 215% [1] Month-to-date and year-to-date as of 1/1/2023 [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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Moreover, the digital ad market is cooling off as the U.S. economy faces mounting headwinds. Our analysis of Roku Revenue has more details on the company’s business model and key revenue streams. Total [2] ROKU Return 0% 0% -21% S&P 500 Return 0% 0% 71% Trefis Multi-Strategy Portfolio 0% 0% 215% [1] Month-to-date and year-to-date as of 1/1/2023 [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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17714.0
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2023-01-06 00:00:00 UTC
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US STOCKS-Wall St set to rally as December jobs report eases rate worries
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-rally-as-december-jobs-report-eases-rate-worries
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nan
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nan
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By Shubham Batra and Ankika Biswas
Jan 6 (Reuters) - Wall Street's main indexes were set to open sharply higher on Friday, as cooling wages and moderation in U.S. jobs growth in December calmed worries over the Federal Reserve's rate-hike trajectory.
The nonfarm payrolls rose by 223,000 jobs in December, data from the Labor Department showed, while a 0.3% rise in average earnings was smaller than expected and also lower than the previous month.
The numbers for November were revised to show that nonfarm payrolls rose by 256,000 and average earnings grew by 0.4%.
"The key here is that hourly wages only grew half of the amount since last month, wage inflation is peaking and this is more of a confirmation of it," said Peter Cardillo, chief market economist at Spartan Capital Securities, New York.
"Nonfarm payrolls were high, but not as strong as the markets were anticipating."
A resilient labor market has powered the economy through consumer spending but could prompt the Fed to lift its target interest rate above the 5.1% peak it had projected last month and keep it there for a while.
Earlier this week, minutes from the Fed's December meeting showed that the central bank was laser-focused on fighting inflation even as officials agreed to slow the pace of rate hikes to limit risks to economic growth.
Concerns around the rapid rate hikes driving the economy to the brink of a recession was one of the major triggers that clobbered equities in 2022, with the main indexes recording their steepest annual drop since the 2008 financial crisis.
Money market bets of a 25-basis point hike in the February policy meeting shot up to 68% and the terminal rate was seen edging below 5% by June. FEDWATCH
The numbers come a day after the ADP National Employment report showed a higher-than-expected rise in private employment in December, while another report showed weekly jobless claims dropped to a three-month low.
Rate-sensitive growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O and Alphabet Inc GOOGL.O gained around 1% each, helped by a decline in the 10-year U.S. Treasury yield US10YT=RR.
Investors will also focus on comments from a slew of Fed officials scheduled to speak later in the day.
Factory orders for November and ISM non-manufacturing data for December, due after the opening bell, will also be closely monitored.
U.S. equities were on track to log losses in the first trading week of 2023. The benchmark S&P 500 .SPX has lost 0.8%, while the Nasdaq Composite .IXIC was down 1.5% as of Thursday's close.
At 8:53 a.m. ET, Dow e-minis 1YMcv1 were up 368 points, or 1.11%, S&P 500 e-minis EScv1 were up 45 points, or 1.18%, and Nasdaq 100 e-minis NQcv1 were up 136.75 points, or 1.26%.
Tesla Inc TSLA.O dropped 6.4% in premarket trading after the company cut electric-car prices in China for the second time in less than three months.
Bed Bath & Beyond Inc BBBY.O slid 13.6% after Reuters reported that the home goods retailer was preparing to seek bankruptcy protection in coming weeks.
(Reporting by Shubham Batra, Ankika Biswas and Johann M Cherian in Bengaluru; Editing by Shounak Dasgupta and Arun Koyyur)
((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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Rate-sensitive growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O and Alphabet Inc GOOGL.O gained around 1% each, helped by a decline in the 10-year U.S. Treasury yield US10YT=RR. By Shubham Batra and Ankika Biswas Jan 6 (Reuters) - Wall Street's main indexes were set to open sharply higher on Friday, as cooling wages and moderation in U.S. jobs growth in December calmed worries over the Federal Reserve's rate-hike trajectory. Earlier this week, minutes from the Fed's December meeting showed that the central bank was laser-focused on fighting inflation even as officials agreed to slow the pace of rate hikes to limit risks to economic growth.
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Rate-sensitive growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O and Alphabet Inc GOOGL.O gained around 1% each, helped by a decline in the 10-year U.S. Treasury yield US10YT=RR. The nonfarm payrolls rose by 223,000 jobs in December, data from the Labor Department showed, while a 0.3% rise in average earnings was smaller than expected and also lower than the previous month. The numbers for November were revised to show that nonfarm payrolls rose by 256,000 and average earnings grew by 0.4%.
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Rate-sensitive growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O and Alphabet Inc GOOGL.O gained around 1% each, helped by a decline in the 10-year U.S. Treasury yield US10YT=RR. The nonfarm payrolls rose by 223,000 jobs in December, data from the Labor Department showed, while a 0.3% rise in average earnings was smaller than expected and also lower than the previous month. Earlier this week, minutes from the Fed's December meeting showed that the central bank was laser-focused on fighting inflation even as officials agreed to slow the pace of rate hikes to limit risks to economic growth.
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Rate-sensitive growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O and Alphabet Inc GOOGL.O gained around 1% each, helped by a decline in the 10-year U.S. Treasury yield US10YT=RR. The nonfarm payrolls rose by 223,000 jobs in December, data from the Labor Department showed, while a 0.3% rise in average earnings was smaller than expected and also lower than the previous month. The numbers for November were revised to show that nonfarm payrolls rose by 256,000 and average earnings grew by 0.4%.
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17715.0
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2023-01-05 00:00:00 UTC
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POLL-Taiwan exports seen declining for fourth straight month in December
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AAPL
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https://www.nasdaq.com/articles/poll-taiwan-exports-seen-declining-for-fourth-straight-month-in-december
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nan
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nan
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For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWCPIY%3DECI
Exports median forecast -13.3% y/y (prior month -13.1%)
Imports median forecast -10.2% y/y (prior month -8.6%)
Balance median forecast $3.45 bln (prior month $3.43 bln)
CPI median forecast +2.5% y/y (prior month +2.35%)
Trade due Saturday, Jan. 7, 4:00 p.m. (0800 GMT)
CPI due Friday, Jan. 6, 4:00 p.m. (0800 GMT)
TAIPEI, Jan 5 (Reuters) - Taiwan's exports in December likely dropped from a year earlier for the fourth month in a row amid fears of a global recession, uncertainties due to the war in Ukraine, and COVID-19 controls in China, according to a Reuters poll.
Taiwan, a global hub for chip production and a key supplier to Apple Inc AAPL.O, is one of Asia's leading exporters of technology goods. The trade data is seen as an important gauge of world demand for tech gadgets.
Exports last month were estimated to have dropped 13.3% from a year earlier, a Reuters poll of 12 analysts showed on Thursday, slightly faster than the 13.1% annual contraction seen in November.
The export forecasts varied widely, projecting a contraction of between 7.9% and 19.5%. The variation reflected uncertainties over the global economy, supply chain disruptions due to pandemic lockdowns in China, and the fallout of Russia and Ukraine war.
Taiwan's finance ministry said last month December exports could be down by 8% to 12% from a year earlier.
Separately, the consumer price index was expected to have been 2.5% higher in December than a year earlier, rising faster than the 2.35% annual rate seen in November, according to the poll.
The inflation data will be released on Friday followed by the trade data on Saturday.
(Reporting By Yimou Lee; Polling by Anant Chandak; Editing by Bradley Perrett)
((yimou.lee@thomsonreuters.com; +886-2-8729-5122;))
The views and 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, a global hub for chip production and a key supplier to Apple Inc AAPL.O, is one of Asia's leading exporters of technology goods. Exports last month were estimated to have dropped 13.3% from a year earlier, a Reuters poll of 12 analysts showed on Thursday, slightly faster than the 13.1% annual contraction seen in November. The variation reflected uncertainties over the global economy, supply chain disruptions due to pandemic lockdowns in China, and the fallout of Russia and Ukraine war.
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Taiwan, a global hub for chip production and a key supplier to Apple Inc AAPL.O, is one of Asia's leading exporters of technology goods. For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWCPIY%3DECI Exports median forecast -13.3% y/y (prior month -13.1%) Imports median forecast -10.2% y/y (prior month -8.6%) Balance median forecast $3.45 bln (prior month $3.43 bln) CPI median forecast +2.5% y/y (prior month +2.35%) Trade due Saturday, Jan. 7, 4:00 p.m. (0800 GMT) CPI due Friday, Jan. 6, 4:00 p.m. (0800 GMT) TAIPEI, Jan 5 (Reuters) - Taiwan's exports in December likely dropped from a year earlier for the fourth month in a row amid fears of a global recession, uncertainties due to the war in Ukraine, and COVID-19 controls in China, according to a Reuters poll. Exports last month were estimated to have dropped 13.3% from a year earlier, a Reuters poll of 12 analysts showed on Thursday, slightly faster than the 13.1% annual contraction seen in November.
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Taiwan, a global hub for chip production and a key supplier to Apple Inc AAPL.O, is one of Asia's leading exporters of technology goods. For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWCPIY%3DECI Exports median forecast -13.3% y/y (prior month -13.1%) Imports median forecast -10.2% y/y (prior month -8.6%) Balance median forecast $3.45 bln (prior month $3.43 bln) CPI median forecast +2.5% y/y (prior month +2.35%) Trade due Saturday, Jan. 7, 4:00 p.m. (0800 GMT) CPI due Friday, Jan. 6, 4:00 p.m. (0800 GMT) TAIPEI, Jan 5 (Reuters) - Taiwan's exports in December likely dropped from a year earlier for the fourth month in a row amid fears of a global recession, uncertainties due to the war in Ukraine, and COVID-19 controls in China, according to a Reuters poll. Exports last month were estimated to have dropped 13.3% from a year earlier, a Reuters poll of 12 analysts showed on Thursday, slightly faster than the 13.1% annual contraction seen in November.
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Taiwan, a global hub for chip production and a key supplier to Apple Inc AAPL.O, is one of Asia's leading exporters of technology goods. For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWCPIY%3DECI Exports median forecast -13.3% y/y (prior month -13.1%) Imports median forecast -10.2% y/y (prior month -8.6%) Balance median forecast $3.45 bln (prior month $3.43 bln) CPI median forecast +2.5% y/y (prior month +2.35%) Trade due Saturday, Jan. 7, 4:00 p.m. (0800 GMT) CPI due Friday, Jan. 6, 4:00 p.m. (0800 GMT) TAIPEI, Jan 5 (Reuters) - Taiwan's exports in December likely dropped from a year earlier for the fourth month in a row amid fears of a global recession, uncertainties due to the war in Ukraine, and COVID-19 controls in China, according to a Reuters poll. Exports last month were estimated to have dropped 13.3% from a year earlier, a Reuters poll of 12 analysts showed on Thursday, slightly faster than the 13.1% annual contraction seen in November.
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17716.0
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2023-01-05 00:00:00 UTC
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Qualcomm, Iridium partner to bring satellite-based messaging to Android phones
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AAPL
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https://www.nasdaq.com/articles/qualcomm-iridium-partner-to-bring-satellite-based-messaging-to-android-phones
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nan
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nan
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Jan 5 (Reuters) - Qualcomm Inc QCOM.O has partnered with Iridium Communications Inc IRDM.O to provide a satellite-based messaging service on premium smartphones running Google's Android operating system, the chipmaker said on Thursday.
The partnership comes months after Apple Inc AAPL.O unveiled a similar feature allowing iPhone 14 models to send emergency messages via satellite in some countries such as the United States and Canada. Those phones also contain a Qualcomm chip that can talk to satellites when there is no Wi-Fi or cellular data connection.
Qualcomm said on Thursday the new service, Snapdragon Satellite, will be available in certain regions from the second half of 2023 starting devices using the second generation Snapdragon 8 mobile platform.
Snapdragon Satellite can also be enabled on other devices including laptops, vehicles and tablets, it added, without specifying if those devices would need any special equipment.
Using Qualcomm's technology messages sent through the service will reach Iridium's satellite network. They will then be communicated to the recipient or emergency services.
GPS-based gadget maker Garmin Ltd GRMN.BN will coordinate emergency response services to users, Qualcomm said.
(Reporting by Chavi Mehta in Bengaluru and Jane Lanhee Lee in San Francisco; Editing by Shounak Dasgupta)
((Chavi.Mehta@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The partnership comes months after Apple Inc AAPL.O unveiled a similar feature allowing iPhone 14 models to send emergency messages via satellite in some countries such as the United States and Canada. Jan 5 (Reuters) - Qualcomm Inc QCOM.O has partnered with Iridium Communications Inc IRDM.O to provide a satellite-based messaging service on premium smartphones running Google's Android operating system, the chipmaker said on Thursday. GPS-based gadget maker Garmin Ltd GRMN.BN will coordinate emergency response services to users, Qualcomm said.
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The partnership comes months after Apple Inc AAPL.O unveiled a similar feature allowing iPhone 14 models to send emergency messages via satellite in some countries such as the United States and Canada. Qualcomm said on Thursday the new service, Snapdragon Satellite, will be available in certain regions from the second half of 2023 starting devices using the second generation Snapdragon 8 mobile platform. Using Qualcomm's technology messages sent through the service will reach Iridium's satellite network.
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The partnership comes months after Apple Inc AAPL.O unveiled a similar feature allowing iPhone 14 models to send emergency messages via satellite in some countries such as the United States and Canada. Jan 5 (Reuters) - Qualcomm Inc QCOM.O has partnered with Iridium Communications Inc IRDM.O to provide a satellite-based messaging service on premium smartphones running Google's Android operating system, the chipmaker said on Thursday. Qualcomm said on Thursday the new service, Snapdragon Satellite, will be available in certain regions from the second half of 2023 starting devices using the second generation Snapdragon 8 mobile platform.
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The partnership comes months after Apple Inc AAPL.O unveiled a similar feature allowing iPhone 14 models to send emergency messages via satellite in some countries such as the United States and Canada. Jan 5 (Reuters) - Qualcomm Inc QCOM.O has partnered with Iridium Communications Inc IRDM.O to provide a satellite-based messaging service on premium smartphones running Google's Android operating system, the chipmaker said on Thursday. Those phones also contain a Qualcomm chip that can talk to satellites when there is no Wi-Fi or cellular data connection.
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17717.0
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2023-01-05 00:00:00 UTC
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The Time Has Come to Bet Big on the Automation Economy
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AAPL
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https://www.nasdaq.com/articles/the-time-has-come-to-bet-big-on-the-automation-economy
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Editor’s note: “The Time Has Come to Bet Big on the Automation Economy” was previously published in September 2022. It has since been revised and republished.
In the midst of 2022’s stock market chaos, I focused on one thing: finding generational investment opportunities. Why? Because history shows that the best time to invest in emerging technological megatrends is during a market crash, such as the one that’s been occurring over the past year.
For example, the best time to invest in computer stocks was after the 1987 Flash Crash. That left promising computer stocks like Microsoft (MSFT) trading for less than 20 cents per share (split adjusted).
The best time to invest in internet stocks was after the 2000 dot-com bubble burst. That left promising internet stocks like Amazon (AMZN) trading for about 30 cents per share (split adjusted).
The best time to invest in smartphone stocks was after the 2008 financial crisis, which left smartphone stocks like Apple (AAPL) trading for less than $3 per share (split adjusted).
And the best time to invest in electric vehicle stocks was after the 2020 COVID crash. That left EV stocks like Tesla (TSLA) trading for about $25 per share (split adjusted).
This pattern is clear. Every time the stock market crashes, a group of emerging technology stocks is left trading at massive discounts. Investors who buy at those prices end up making fortunes over the next several years.
So, what group of emerging technology stocks are the best buys during the 2022 stock market rout? I’d like to make the case for AI stocks.
Here’s why.
The Need Is Urgent
I truly believe AI and automation technologies will represent one of the greatest technological paradigm shifts of our lifetimes. And according to my research, that shift will mostly occur in the 2020s.
That is, over the next decade, we will go from a human-driven world to a robot-driven one. All the while, our society and global economy will be forever transformed.
Like many before it, this technological megatrend will be driven by a convergence of the world’s need for automation technologies and the swell of engineers capable of building them.
Let’s talk about the “need” part first.
In short, the world needs to fix inflation. And ubiquitous adoption of automation technologies is the only way we permanently suppress inflation.
There are two parts to the inflation problem. The demand for goods and services is too high, and the supply for those goods and services is too low.
The Fed can solve the first part by hiking interest rates, choking off consumer spending, and suppressing economic demand.
But rate hikes don’t address the supply side of the inflation problem. The only way you fix that is if companies figure out how to make more products and services. But to do that in a human-driven world, you need more labor. That requires companies to hire more workers, which means more wages, more consumer income, more spending, and more economic demand.
In other words, the present “solution” to fixing the supply side of the inflation equation will actually exacerbate the demand side of the problem. And therefore, it won’t permanently resolve the inflation situation.
We need a different solution. We don’t need an inflationary human-driven solution – we need a disinflationary automation-driven solution.
The Disinflationary Solution
Let’s play out the same scenario as above but in an automation-driven world.
A company needs to make more product. It deploys a series of automation technologies – both software and hardware – to make it.
Those technologies have a big upfront installation fee but very low recurring costs after that. Net impact to annual operating expenses? Tiny.
Yet, those technologies don’t sleep, clock out, or take vacations. They’re always working to make more product. Net impact to output? Huge boost.
The overall result – the company can make a lot more product at a fractionally higher marginal cost. Supply goes up without producing more economic demand.
Automation is the panacea to our current inflation problem.
Companies are starting to realize this. That’s why they are starting to turn toward automation technologies in 2022. And so emerges the multi-trillion-dollar Automation Economy.
Automation Technologies Have Arrived
As far as capability goes, automation technologies have progressed rapidly over the past few years. They are now able to create meaningful real-world value – and at the perfect time, too!
For example, Walmart (WMT) is in the process of automating all its warehouses with an end-to-end robotics system. It unpacks, sorts, stores, and repacks inbound and outbound parcels with a combination of robot arms and mini autonomous vehicles.
That’s after Amazon has already automated all its warehouses with its own robotic system. And in fact, it recently acquired both iRobot (robotic vacuum maker) and Cloostermans (warehouse robotics firm), just months after unveiling its first-ever home robot.
Clearly, Amazon is making a big push for household robotics. Soon, we’ll see the deployment of robots to automate household chores like lawn mowing, pool cleaning, and more.
In the restaurant world, fast-casual chains like Chipotle (CMG), Wing Zone, and White Castle are using robots to make food. Other chains like Chili’s are using them to wait tables. The robot takeover in the restaurant world has arrived!
It’s arrived in retail, too. Robots and autonomous vehicles are being used to stock shelves at grocery stores, clean shopping aisles, and deliver orders.
And the Automation Revolution has also touched down in the media and entertainment world. Have you seen those ads that say “this ad was probably written by a robot”? Or those drawings that were created by DALL-E, the AI that generates pictures from queries? Have you heard of Jasper, the AI writing machine?
Most recently, a new AI chatbot – ChatGPT – has taken the world by storm. It’s a super version of Siri that can write full research papers, articles, essays, and more in just minutes.
The automation being deployed in the world today is incredibly impressive.
But it is just the tip of the iceberg. Experts predict that by 2026, 90% of all online content will be produced by AI.
Alas, I rest my case. The world just doesn’t need automation technologies today – it has tech it can readily deploy today, too. That’s a potent combination.
The Final Word on the Automation Boom
Despite the challenges facing the market in 2023, including the potential for a recession, I see exciting opportunities on the horizon. Every stock market crash is an opportunity – an opportunity to buy the “next big thing” in the stock market for dirt-cheap, while everyone else is worrying about short-term problems that will pass (they always do).
In the 1980s, that “next big thing” was the computer. In the 1990s, it was the internet. It was the smartphone in the 2000s and electric vehicles in the 2010s.
And now, in the 2020s, it’s automation.
The time to bet big on automation stocks is today. They’re dirt-cheap, trading for just a few bucks… But they’ll absolutely soar over the next decade as robots and software eat the world.
Though automation isn’t the only megatrend I see great promise in…
Find out how to be successful no matter which way the market turns.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
The post The Time Has Come to Bet Big on the Automation Economy appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The best time to invest in smartphone stocks was after the 2008 financial crisis, which left smartphone stocks like Apple (AAPL) trading for less than $3 per share (split adjusted). It unpacks, sorts, stores, and repacks inbound and outbound parcels with a combination of robot arms and mini autonomous vehicles. In the restaurant world, fast-casual chains like Chipotle (CMG), Wing Zone, and White Castle are using robots to make food.
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The best time to invest in smartphone stocks was after the 2008 financial crisis, which left smartphone stocks like Apple (AAPL) trading for less than $3 per share (split adjusted). That left promising internet stocks like Amazon (AMZN) trading for about 30 cents per share (split adjusted). Every time the stock market crashes, a group of emerging technology stocks is left trading at massive discounts.
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The best time to invest in smartphone stocks was after the 2008 financial crisis, which left smartphone stocks like Apple (AAPL) trading for less than $3 per share (split adjusted). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Editor’s note: “The Time Has Come to Bet Big on the Automation Economy” was previously published in September 2022. Every time the stock market crashes, a group of emerging technology stocks is left trading at massive discounts.
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The best time to invest in smartphone stocks was after the 2008 financial crisis, which left smartphone stocks like Apple (AAPL) trading for less than $3 per share (split adjusted). I’d like to make the case for AI stocks. Automation Technologies Have Arrived As far as capability goes, automation technologies have progressed rapidly over the past few years.
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17718.0
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2023-01-05 00:00:00 UTC
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3 Top Chip Stocks Paying Dividends
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AAPL
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https://www.nasdaq.com/articles/3-top-chip-stocks-paying-dividends
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nan
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nan
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Semiconductors, commonly called microchips, enable many items we use on a daily basis to work correctly and efficiently. Around the size of a small coin, we find them within our mobile devices, vehicles, computers, and freezers, to name a few.
As we wade deeper into a more technological world, the demand for chips has exploded, causing many semiconductor-related stocks to gain widespread attention.
Namely, two of the most popular chip stocks have been none other than Advanced Micro Devices AMD and NVIDIA NVDA.
Still, in 2022, many semiconductor stocks got beaten down, ending their fantastic runs.
However, several semiconductor stocks have seen their earnings outlook drift higher over the last several months, including Taiwan Semiconductor Manufacturing TSM, STMicroelectronics STM, and Power Integrations POWI.
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.
Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing is the world’s largest circuit foundry, responsible for supplying chips to tech titans such as Qualcomm QCOM and Apple AAPL. Currently, the company sports a Zacks Rank #2 (Buy).
TSM has generated solid free cash flow as of late, reported at roughly $4.6 billion in its latest quarter and reflecting a 16% sequential uptick. As we can see in the chart below, the company’s free cash flow has recovered nicely from 2021 lows.
Image Source: Zacks Investment Research
For those seeking income, TSM has that covered; the company’s annual dividend currently yields approximately 1.9%. Further, the company has been committed to increasingly rewarding its shareholders, growing its payout by more than 10% over the last five years.
Image Source: Zacks Investment Research
STMicroelectronics
STMicroelectronics designs, develops, manufactures, and markets a broad range of semiconductor integrated circuits and discrete devices used in microelectronic applications. Currently, STM boasts a Zacks Rank #1 (Strong Buy).
STM is no stranger to exceeding quarterly estimates, exceeding top and bottom line expectations in four consecutive quarters. Additionally, it’s worth highlighting that all its last four EPS beats have been by at least 11%.
Image Source: Zacks Investment Research
STM pays a small dividend, currently yielding a modest 0.5% and below its Zacks Computer and Technology sector average. The company pays out just 6% of its earnings.
Image Source: Zacks Investment Research
Power Integrations Inc.
Power Integrations is a supplier of high-performance electronic components used in high-voltage power-conversion systems. POWI sports a Zacks Rank #2 (Buy).
The company rewards its shareholders via its annual dividend that currently yields 1%, nearly precisely in line with its Zacks Computer and Technology sector average.
Impressively, POWI has upped its dividend payout eight times over the last five years, translating to a 22% five-year annualized growth rate.
Image Source: Zacks Investment Research
And for the cherry on top, POWI shares have been consistently strong, up a solid 90% over the last five years and widely outperforming relative to the S&P 500.
Image Source: Zacks Investment Research
Bottom Line
While it’s been a rough past year to own chip stocks, the near-term outlook for all three stocks above – Taiwan Semiconductor Manufacturing TSM, STMicroelectronics STM, and Power Integrations POWI – have drifted higher, undoubtedly a positive development.
In addition, valuations have been slashed across nearly all chip stocks, indicating that the worst could be in the rearview mirror.
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
QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
STMicroelectronics N.V. (STM) : Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Power Integrations, Inc. (POWI) : Free Stock Analysis Report
Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taiwan Semiconductor Manufacturing Taiwan Semiconductor Manufacturing is the world’s largest circuit foundry, responsible for supplying chips to tech titans such as Qualcomm QCOM and Apple AAPL. Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report STMicroelectronics N.V. (STM) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Power Integrations, Inc. (POWI) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report To read this article on Zacks.com click here. TSM has generated solid free cash flow as of late, reported at roughly $4.6 billion in its latest quarter and reflecting a 16% sequential uptick.
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Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report STMicroelectronics N.V. (STM) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Power Integrations, Inc. (POWI) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report To read this article on Zacks.com click here. Taiwan Semiconductor Manufacturing Taiwan Semiconductor Manufacturing is the world’s largest circuit foundry, responsible for supplying chips to tech titans such as Qualcomm QCOM and Apple AAPL. Image Source: Zacks Investment Research Power Integrations Inc. Power Integrations is a supplier of high-performance electronic components used in high-voltage power-conversion systems.
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Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report STMicroelectronics N.V. (STM) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Power Integrations, Inc. (POWI) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report To read this article on Zacks.com click here. Taiwan Semiconductor Manufacturing Taiwan Semiconductor Manufacturing is the world’s largest circuit foundry, responsible for supplying chips to tech titans such as Qualcomm QCOM and Apple AAPL. Image Source: Zacks Investment Research STM pays a small dividend, currently yielding a modest 0.5% and below its Zacks Computer and Technology sector average.
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Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report STMicroelectronics N.V. (STM) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Power Integrations, Inc. (POWI) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report To read this article on Zacks.com click here. Taiwan Semiconductor Manufacturing Taiwan Semiconductor Manufacturing is the world’s largest circuit foundry, responsible for supplying chips to tech titans such as Qualcomm QCOM and Apple AAPL. Image Source: Zacks Investment Research STM pays a small dividend, currently yielding a modest 0.5% and below its Zacks Computer and Technology sector average.
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17719.0
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2023-01-05 00:00:00 UTC
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Thursday's ETF with Unusual Volume: PBUS
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AAPL
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https://www.nasdaq.com/articles/thursdays-etf-with-unusual-volume%3A-pbus
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nan
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nan
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The Invesco PureBeta MSCI USA ETF is seeing unusually high volume in afternoon trading Thursday, with over 93,000 shares traded versus three month average volume of about 28,000. Shares of PBUS were down about 1% on the day.
Components of that ETF with the highest volume on Thursday were Tesla, trading off about 3.5% with over 104.9 million shares changing hands so far this session, and Apple, off about 0.4% on volume of over 43.6 million shares. Novocure is the component faring the best Thursday, higher by about 55.9% on the day, while Rpm International is lagging other components of the Invesco PureBeta MSCI USA ETF, trading lower by about 13.1%.
VIDEO: Thursday's ETF with Unusual Volume: PBUS
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Invesco PureBeta MSCI USA ETF is seeing unusually high volume in afternoon trading Thursday, with over 93,000 shares traded versus three month average volume of about 28,000. Components of that ETF with the highest volume on Thursday were Tesla, trading off about 3.5% with over 104.9 million shares changing hands so far this session, and Apple, off about 0.4% on volume of over 43.6 million shares. Novocure is the component faring the best Thursday, higher by about 55.9% on the day, while Rpm International is lagging other components of the Invesco PureBeta MSCI USA ETF, trading lower by about 13.1%.
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The Invesco PureBeta MSCI USA ETF is seeing unusually high volume in afternoon trading Thursday, with over 93,000 shares traded versus three month average volume of about 28,000. Novocure is the component faring the best Thursday, higher by about 55.9% on the day, while Rpm International is lagging other components of the Invesco PureBeta MSCI USA ETF, trading lower by about 13.1%. VIDEO: Thursday's ETF with Unusual Volume: PBUS The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Invesco PureBeta MSCI USA ETF is seeing unusually high volume in afternoon trading Thursday, with over 93,000 shares traded versus three month average volume of about 28,000. Components of that ETF with the highest volume on Thursday were Tesla, trading off about 3.5% with over 104.9 million shares changing hands so far this session, and Apple, off about 0.4% on volume of over 43.6 million shares. Novocure is the component faring the best Thursday, higher by about 55.9% on the day, while Rpm International is lagging other components of the Invesco PureBeta MSCI USA ETF, trading lower by about 13.1%.
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Components of that ETF with the highest volume on Thursday were Tesla, trading off about 3.5% with over 104.9 million shares changing hands so far this session, and Apple, off about 0.4% on volume of over 43.6 million shares. Novocure is the component faring the best Thursday, higher by about 55.9% on the day, while Rpm International is lagging other components of the Invesco PureBeta MSCI USA ETF, trading lower by about 13.1%. VIDEO: Thursday's ETF with Unusual Volume: PBUS The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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17720.0
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2023-01-05 00:00:00 UTC
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7 Seriously Undervalued Large-Cap Stocks to Buy Now
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AAPL
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https://www.nasdaq.com/articles/7-seriously-undervalued-large-cap-stocks-to-buy-now
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Undervalued large-cap stocks present a particularly good opportunity right now with all three major indices in the U.S. continuing to trend lower to start the New Year.
The latest data out of the U.S. showed that inflation rose 7.1% in November from a year ago, which is still well above the Fed’s 2% target. This raises the likelihood that the central bank will continue raising its benchmark interest rate in the coming months, albeit at a slower pace than in previous months.
As rates continue inching higher and inflation slowly decelerates, stocks are likely to remain volatile. But the retreat of the markets seen in 2022 (the worst year for equities since the 2008 financial crisis) has left many large-cap stocks deeply undervalued. This presents an opportunity for investors who can tolerate the near-term ups and downs of the market and keep their eyes fixed on the long-term.
Here are seven seriously undervalued large-cap stocks to buy now.
AMZN Amazon $83.55
NVDA Nvidia $143
NKE Nike $122
AAPL Apple $126
COST Costco $452
MSFT Microsoft $224
AXP American Express $145
Undervalued Large-Cap Stocks: Amazon (AMZN)
Source: Jonathan Weiss / Shutterstock.com
Amazon (NASDAQ:AMZN) stock is now trading under $85 a share, its most affordable level in more than five years.
Following Amazon’s disappointing third-quarter earnings and lowered guidance, AMZN stock is down 50% in the last 12 months. Even a 20-for-1 stock split undertaken at the beginning of June hasn’t helped the share price.
Having given up most of the gains it achieved during the pandemic when consumers were forced to shop online, AMZN stock seems to have been abandoned by consumers. Yet analysts say that is a mistake, and the company is poised for a rebound.
For its part, Amazon is doing what it can to try to raise its share price, as the company earlier this year announced a $10 billion stock buyback program.
Amazon also completed its second Prime sales event of the year in mid-October, which should give its fourth-quarter earnings a boost. Further, the company has reduced its staff levels and taken other cost-cutting measures as it tries to adjust to the current economic environment.
While Amazon’s price-earnings (P/E) ratio remains a hefty 75 times, it is not that high when one considers the company’s nearly $1 trillion market capitalization or that it generates more than $100 billion of revenue each quarter. Take advantage of the shares’ weakness and buy the dip of AMZN stock.
Nvidia (NVDA)
Source: Shutterstock
Few large-cap technology stocks have been beaten down as much as semiconductor company Nvidia (NASDAQ:NVDA). NVDA stock has tumbled 50% in the last year to $143. In November 2021, the company’s shares were trading above $300, and that was after a 4-for-1 stock split.
The share price has been hurt by mounting fears that the demand for Nvidia’s chips and semiconductors will slow along with the global economy. To be sure, the company’s earnings for the third quarter were a disaster with revenue down 17% year-over-year. The Q3 print didn’t help the share price at all.
Nvidia has also lowered its forward guidance multiple times this year. It most recently said that it expects about $6 billion of sales in Q4, lower than the average estimate of $6.09 billion among analysts who cover the company.
Nvidia CEO Jensen Huang has stressed that the company is grappling with a “challenging macro environment.” Still, Nvidia, whose chips are used in everything from supercomputers to artificial intelligence applications, remains a solid, long-term buy.
Its P/E ratio is high at 61 times, but that has come down over the last year with the share price. And, unlike many tech stocks, Nvidia pays a dividend that yields 0.11%. It’s not the most generous dividend, but it helps make NVDA one of the more reliable undervalued large-cap stocks to buy.
Nike (NKE)
Source: TY Lim / Shutterstock.com
The shares of the world’s largest supplier of athletic shoes and apparel have been pummeled over the past year. The stock of Oregon-based Nike (NYSE:NKE) has plunged 27% and now trades at $122 per share. The decline, while no doubt troubling to shareholders, makes NKE stock a screaming buy.
A year ago, Nike’s stock was trading at $167 a share. Its big decline has been due largely to the same issues that are vexing companies all over the world: Supply chain problems, excess inventories, Covid-19 lockdowns in China, and slowing consumer spending.
Just before Christmas, Nike reported fiscal second quarter earnings that surpassed the average outlook of the analysts on Wall Street, sending its stock more than 10% higher in a single trading session.
The shoemaker announced quarterly earnings per share of 85 cents versus the mean estimate of 64 cents. Its revenue came in at $13.32 billion compared to the $12.57 billion that had been expected.
NKE’s price-earnings ratio of 34 is slightly high, but it’s justified given the company’s market-leading position. And NKE stock pays a quarterly dividend that yields 1.1%. Grab this stock while it remains on sale.
Undervalued Large-Cap Stocks: Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple’s (NASDAQ:AAPL) stock just keeps getting more affordable and attractive. Its share price fell 15% in December alone, bringing its 2022 decline to 30%. The consumer electronics giant’s stock is now trading right around $125.
Analysts’ median price target on AAPL stock is currently $175 a share, which is nearly 40% higher than its current level. The shares’ P/E ratio of 20 times is the lowest it has been in years and the stock pays a dividend that yields 0.73%.
With Apple, investors also get a company that buys back more of its own stock than any other publicly traded concern. The company most recently announced that its board of directors had greenlit a $90 billion share buyback program.
Apple is also increasingly diversified, venturing into new areas ranging from streaming to buy now, pay later. Further, with its iPhones and Mac computers., Apple remains the world’s leading consumer electronics company
As with many companies, Apple is dealing with issues that include supply chain constraints, wage inflation and slowing consumer spending in the face of rising interest rates. Its iPhone production has also been hurt by Covid-19 lockdowns in China.
AAPL stock took it on the chin after the company announced that it was scaling back production of its new iPhone 14 due to the issues in China and weaker consumer demand than forecast. The company’s most recent earnings report was mixed but managed to beat analysts’ average expectations.
Apple’s lower share price should make the stock more appealing to value investors.
Costco (COST)
Source: ilzesgimene / Shutterstock.com
The shares of big-box grocery retailer Costco (NASDAQ:COST) are down 19% over the past 12 months. COST’s 52-week low is $406, well below its current level of $452. The retailer has managed to recover by demonstrating that its sales remain strong despite high inflation and rising interest rates.
The company’s November sales figures were mixed. Costco said its net sales for the period came in at $19.17 billion, up 5.7% year over year. However, the firm’s e-commerce sales fell 10.1% during the period. COST stock declined 3% on the data.
However, Costco has retained the loyalty of its customers by announcing that it would not raise its membership fees this year, holding them at $60 for a regular annual membership and $120 for an executive membership.
The stock’s P/E ratio of 35 times looks high at first glance, but investors need to keep in mind that Costco is on track to surpass $200 billion of sales for 2022, making it one of the more impressive undervalued large-cap stocks .
The company’s stock pays a dividend that yields 0.79%, but Costco has a history of paying out special, one-time dividends as well.
Microsoft (MSFT)
Source: NYCStock / Shutterstock.com
Seattle-based Microsoft (NASDAQ:MSFT) is a seriously undervalued technology stock. Founded by Bill Gates and Paul Allen in 1975 and publicly traded since March 1986, Microsoft today is a well-diversified and battle-tested technology company that is involved in everything from computer software and video games to online search and cloud computing.
The company is hugely profitable and generates positive cash flow. And its stock has been a consistent winner for shareholders over the years.
While MSFT stock is down 30% in the last year, it is up 160% over the past five years and has gained more than 500% over the last decade. Today Microsoft has a market capitalization of $1.67 trillion, a reasonable price-earnings ratio of 24, and is one of the few mega-cap tech stocks that actually pays shareholders a quarterly dividend (Its payout currently yields 1.13%).
While the company has not been immune to the economic challenges afflicting the global economy, it remains one of the tech giants best positioned to weather the storm and come out stronger on the other side.
Currently trading at $224 a share, MSFT stock is definitely worth buying at its current levels.
Undervalued Large-Cap Stocks: American Express (AXP)
Source: Shutterstock
The shares of credit-card giant American Express (NYSE:AXP) are fresh off a 52-week low and currently trading right around $145. Down 13% in the last year, AXP stock is at its most affordable level since the pandemic struck in March 2020.
The stock’s price-earnings ratio of 15 times is right around the average of companies listed in the S&P 500 index. It pays a 1.4% quarterly dividend.
With people all over the world traveling and vacationing again, there’s every reason to be bullish on AXP stock and the company’s future earnings.
But don’t take our word for it. Consider that American Express is one of legendary investor Warren Buffett’s favorite stocks. The Oracle of Omaha has held his current position in AXP stock for more than 30 years and never sold a single share.
Besides its traditional credit card loans, American Express also operates an end-to-end payment system that facilitates transactions between consumers and businesses. Revenue from those transactions is today the company’s biggest source of revenue.
On the date of publication, Joel Baglole held long positions in NVDA, MSFT and AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
The post 7 Seriously Undervalued Large-Cap Stocks to Buy Now 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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AMZN Amazon $83.55 NVDA Nvidia $143 NKE Nike $122 AAPL Apple $126 COST Costco $452 MSFT Microsoft $224 AXP American Express $145 Undervalued Large-Cap Stocks: Amazon (AMZN) Source: Jonathan Weiss / Shutterstock.com Amazon (NASDAQ:AMZN) stock is now trading under $85 a share, its most affordable level in more than five years. Undervalued Large-Cap Stocks: Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple’s (NASDAQ:AAPL) stock just keeps getting more affordable and attractive. Analysts’ median price target on AAPL stock is currently $175 a share, which is nearly 40% higher than its current level.
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AMZN Amazon $83.55 NVDA Nvidia $143 NKE Nike $122 AAPL Apple $126 COST Costco $452 MSFT Microsoft $224 AXP American Express $145 Undervalued Large-Cap Stocks: Amazon (AMZN) Source: Jonathan Weiss / Shutterstock.com Amazon (NASDAQ:AMZN) stock is now trading under $85 a share, its most affordable level in more than five years. Undervalued Large-Cap Stocks: Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple’s (NASDAQ:AAPL) stock just keeps getting more affordable and attractive. Analysts’ median price target on AAPL stock is currently $175 a share, which is nearly 40% higher than its current level.
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AMZN Amazon $83.55 NVDA Nvidia $143 NKE Nike $122 AAPL Apple $126 COST Costco $452 MSFT Microsoft $224 AXP American Express $145 Undervalued Large-Cap Stocks: Amazon (AMZN) Source: Jonathan Weiss / Shutterstock.com Amazon (NASDAQ:AMZN) stock is now trading under $85 a share, its most affordable level in more than five years. Undervalued Large-Cap Stocks: Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple’s (NASDAQ:AAPL) stock just keeps getting more affordable and attractive. Analysts’ median price target on AAPL stock is currently $175 a share, which is nearly 40% higher than its current level.
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AMZN Amazon $83.55 NVDA Nvidia $143 NKE Nike $122 AAPL Apple $126 COST Costco $452 MSFT Microsoft $224 AXP American Express $145 Undervalued Large-Cap Stocks: Amazon (AMZN) Source: Jonathan Weiss / Shutterstock.com Amazon (NASDAQ:AMZN) stock is now trading under $85 a share, its most affordable level in more than five years. Analysts’ median price target on AAPL stock is currently $175 a share, which is nearly 40% higher than its current level. Undervalued Large-Cap Stocks: Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple’s (NASDAQ:AAPL) stock just keeps getting more affordable and attractive.
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2023-01-05 00:00:00 UTC
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Interesting AAPL Put And Call Options For February 24th
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AAPL
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https://www.nasdaq.com/articles/interesting-aapl-put-and-call-options-for-february-24th
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nan
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nan
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Investors in Apple Inc (Symbol: AAPL) saw new options become available today, for the February 24th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAPL options chain for the new February 24th contracts and identified one put and one call contract of particular interest.
The put contract at the $124.00 strike price has a current bid of $5.45. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $124.00, but will also collect the premium, putting the cost basis of the shares at $118.55 (before broker commissions). To an investor already interested in purchasing shares of AAPL, that could represent an attractive alternative to paying $126.67/share today.
Because the $124.00 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 4.40% return on the cash commitment, or 32.08% 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 $124.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $131.00 strike price has a current bid of $4.90. If an investor was to purchase shares of AAPL stock at the current price level of $126.67/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $131.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 7.29% if the stock gets called away at the February 24th 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 $131.00 strike highlighted in red:
Considering the fact that the $131.00 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 3.87% boost of extra return to the investor, or 28.24% 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 $126.67) 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:
Materials Stocks Hedge Funds Are Buying
Funds Holding FRW
Air Products and Chemicals market cap history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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 $131.00 strike highlighted in red: Considering the fact that the $131.00 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 become available today, for the February 24th expiration.
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Below is a chart showing AAPL's trailing twelve month trading history, with the $131.00 strike highlighted in red: Considering the fact that the $131.00 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 become available today, for the February 24th expiration.
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Below is a chart showing AAPL's trailing twelve month trading history, with the $131.00 strike highlighted in red: Considering the fact that the $131.00 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 become available today, for the February 24th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAPL options chain for the new February 24th 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 February 24th 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 $131.00 strike highlighted in red: Considering the fact that the $131.00 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 become available today, for the February 24th expiration.
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17722.0
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2023-01-05 00:00:00 UTC
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Pre-Market Most Active for Jan 5, 2023 : TQQQ, TSLA, SQQQ, HKD, BBBY, SI, FCAX, AAPL, AMZN, BEKE, NIO, DAL
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AAPL
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https://www.nasdaq.com/articles/pre-market-most-active-for-jan-5-2023-%3A-tqqq-tsla-sqqq-hkd-bbby-si-fcax-aapl-amzn-beke-nio
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The NASDAQ 100 Pre-Market Indicator is down -46.84 to 10,867.96. The total Pre-Market volume is currently 34,426,914 shares traded.
The following are the most active stocks for the pre-market session:
ProShares UltraPro QQQ (TQQQ) is -0.14 at $17.03, with 4,822,092 shares traded. This represents a 5.78% increase from its 52 Week Low.
Tesla, Inc. (TSLA) is -0.76 at $112.88, with 3,340,192 shares traded. TSLA's current last sale is 45.15% of the target price of $250.
ProShares UltraPro Short QQQ (SQQQ) is +0.37 at $54.78, with 2,866,658 shares traded. This represents a 82.82% increase from its 52 Week Low.
AMTD Digital Inc. (HKD) is +6.82 at $16.82, with 2,586,525 shares traded.
Bed Bath & Beyond Inc. (BBBY) is -0.3811 at $2.03, with 2,503,023 shares traded.BBBY is scheduled to provide an earnings report on 1/10/2023, for the fiscal quarter ending Nov2022. The consensus earnings per share forecast is -1.94 per share, which represents a -25 percent increase over the EPS one Year Ago
Silvergate Capital Corporation (SI) is -8.71 at $13.24, with 2,487,689 shares traded. SI's current last sale is 36.78% of the target price of $36.
Fortress Capital Acquisition Corp. (FCAX) is +0.02 at $10.13, with 1,985,804 shares traded.
Apple Inc. (AAPL) is +0.91 at $127.27, with 1,069,173 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Amazon.com, Inc. (AMZN) is +1.12 at $86.26, with 1,041,793 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
KE Holdings Inc (BEKE) is +0.14 at $16.40, with 708,664 shares traded. As reported by Zacks, the current mean recommendation for BEKE is in the "buy range".
NIO Inc. (NIO) is -0.11 at $10.52, with 673,048 shares traded. As reported by Zacks, the current mean recommendation for NIO is in the "buy range".
Delta Air Lines, Inc. (DAL) is +0.16 at $34.55, with 603,104 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. The consensus EPS forecast is $1.37. As reported by Zacks, the current mean recommendation for DAL is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is +0.91 at $127.27, with 1,069,173 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". ProShares UltraPro Short QQQ (SQQQ) is +0.37 at $54.78, with 2,866,658 shares traded.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is +0.91 at $127.27, with 1,069,173 shares traded. The consensus earnings per share forecast is -1.94 per share, which represents a -25 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is +0.91 at $127.27, with 1,069,173 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 34,426,914 shares traded.
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Apple Inc. (AAPL) is +0.91 at $127.27, with 1,069,173 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 Pre-Market Indicator is down -46.84 to 10,867.96.
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17723.0
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2023-01-05 00:00:00 UTC
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Shopify Just Threw a Big Lifeline to Meta Platforms and Alphabet
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AAPL
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https://www.nasdaq.com/articles/shopify-just-threw-a-big-lifeline-to-meta-platforms-and-alphabet
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nan
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nan
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In early 2021, Apple turned the digital advertising world on its head. With a change to iOS 14, iPhone users were notified when an app wished to track their activities and were required to opt in to allow it to continue. This put a multibillion-dollar dent in the online advertising last year, disrupting companies including Alphabet's (NASDAQ: GOOGL) (NASDAQ: GOOG) Google and Facebook parent Meta Platforms (NASDAQ: META), which rely exclusively on targeted ads for the lion's share of their revenue.
Now, an unlikely alliance with Shopify (NYSE: SHOP) is seeking to restore some of the status quo while providing the software-as-a-service (SaaS) company with a potentially lucrative growth engine.
Image source: Getty Images.
Know your audience
Last year, Shopify debuted Audiences, a tool designed to identify and target high-interest buyers with digital advertising. The system aggregates input from cooperating Shopify Plus retailers, providing merchants with a way to pool their customer data.
The resulting information can then be uploaded to Google and Meta's digital ad systems and used to target comparable customers or those who bought similar products from other retailers. This helps merchants with one of their biggest challenges: discovering new customers that are ready to buy.
When it launched in early 2022, Audiences integrated with Facebook and Instagram ads but recently expanded to include Google Search, Google Display Network, Gmail, and YouTube.
Furthermore, Shopify recently upgraded the capabilities of Audiences, allowing merchants to include all the product categories within their stores rather than focusing solely on specific items. This gives retailers many more options for targeting potential customers, allowing them to focus on greater reach, driving conversions, or both. Audiences can also handle multiple advertising campaigns -- with differing objectives -- at the same time.
Perhaps the best thing about Shopify's Audiences is that it's designed to sidestep Apple's consumer privacy measures as it incorporates merchants' first-party data in order to target customers most likely to make a purchase. This acts as an important lifeline to Meta Platforms -- and, to a lesser extent, Alphabet -- as both companies have been adversely affected by Apple's policies while also providing an important growth area for Shopify.
Taking a page from Amazon's playbook
The process of aggregating data from its merchants to identify high-interest buyers takes a page directly from the playbook used by e-commerce rival Amazon (NASDAQ: AMZN). Over the past several years, advertising has become a key growth area for Amazon.
The e-commerce giant has quickly ascended the ranks to become the third-largest digital advertiser in the U.S., behind just Alphabet and Meta Platforms. In the third quarter, Amazon's ad revenue of $9.5 billion jumped 30% year over year (excluding currency fluctuations), outpacing both its rivals.
Audiences provides merchants with similar ad-targeting capabilities offered by Amazon while expanding beyond the limits of a single digital retail marketplace -- including Google search, Instagram, and YouTube.
This suggests that if Shopify can recreate even a portion of the advertising success of its biggest rival, this could result in an important new market for the company at a time when online sales are down.
After generating near triple-digit growth at the height of the pandemic, Shopify's third-quarter revenue grew 22% year over year, weighed down by tough comps, a strong dollar, and slowing e-commerce adoption. Adding a potentially lucrative revenue stream would give Shopify a much-needed boost at a critical juncture in its history.
The opportunity is significant
Shopify is prioritizing investments with a "much shorter-term payback" period, and Audiences is an area of key focus, according to Harley Finkelstein, Shopify's president. "Especially right now, merchants want to be able to find more customers," Finkelstein said recently.
While estimates vary, the internet advertising market is expected to top $700 billion in 2023, growing to more than $1 trillion by 2027. If Shopify can carve out even a small segment of the market for itself, this could mark the next stage in the company's growth.
Find out why Shopify is one of the 10 best stocks to buy now
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They just revealed their ten top stock picks for investors to buy right now. Shopify is on the list -- but there are nine others you may be overlooking.
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*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. 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. Danny Vena has positions in Alphabet, Amazon.com, Apple, Meta Platforms, and Shopify and has the following options: long January 2023 $114 calls on Shopify and long January 2023 $116 calls on Shopify. The Motley Fool has positions in and recommends Alphabet, Amazon.com, 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Now, an unlikely alliance with Shopify (NYSE: SHOP) is seeking to restore some of the status quo while providing the software-as-a-service (SaaS) company with a potentially lucrative growth engine. Perhaps the best thing about Shopify's Audiences is that it's designed to sidestep Apple's consumer privacy measures as it incorporates merchants' first-party data in order to target customers most likely to make a purchase. Audiences provides merchants with similar ad-targeting capabilities offered by Amazon while expanding beyond the limits of a single digital retail marketplace -- including Google search, Instagram, and YouTube.
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This put a multibillion-dollar dent in the online advertising last year, disrupting companies including Alphabet's (NASDAQ: GOOGL) (NASDAQ: GOOG) Google and Facebook parent Meta Platforms (NASDAQ: META), which rely exclusively on targeted ads for the lion's share of their revenue. Taking a page from Amazon's playbook The process of aggregating data from its merchants to identify high-interest buyers takes a page directly from the playbook used by e-commerce rival Amazon (NASDAQ: AMZN). 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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This put a multibillion-dollar dent in the online advertising last year, disrupting companies including Alphabet's (NASDAQ: GOOGL) (NASDAQ: GOOG) Google and Facebook parent Meta Platforms (NASDAQ: META), which rely exclusively on targeted ads for the lion's share of their revenue. Danny Vena has positions in Alphabet, Amazon.com, Apple, Meta Platforms, and Shopify and has the following options: long January 2023 $114 calls on Shopify and long January 2023 $116 calls on 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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Know your audience Last year, Shopify debuted Audiences, a tool designed to identify and target high-interest buyers with digital advertising. "Especially right now, merchants want to be able to find more customers," Finkelstein said recently. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, and Shopify.
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17724.0
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2023-01-05 00:00:00 UTC
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A Bull Market Is Coming -- 1 Unstoppable ETF to Buy Now
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AAPL
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https://www.nasdaq.com/articles/a-bull-market-is-coming-1-unstoppable-etf-to-buy-now
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nan
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nan
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As we head into 2023, now is the time to be thinking about your investing strategy. The past year has been a rough one for the stock market, but there are more promising times ahead.
While nobody knows for certain what will happen over the next few months, a bull market is eventually coming. The market has recovered from every downturn it's faced so far, and it will rebound from this one, too.
Right now, then, is the best time to start preparing for the upswing. The investors who buy during the market's low points are well-positioned to see significant returns when the market bounces back. And there's one ETF, in particular, you might want to stock up on: the Vanguard S&P 500 ETF (NYSEMKT: VOO).
Image source: Getty Images.
Is now really the right time to invest?
It can be daunting to invest when the market is in a slump. After all, when stock prices are falling, it can feel like you're throwing your money away.
Historically, though, those who invested during downturns went on to earn the most when the market rebounded. Also, because the market is essentially on sale right now, you can load up on quality investments for a fraction of the cost.
The key is to keep a long-term outlook. Nobody knows when this downturn will give way to a bull market, but it will happen eventually. By investing now and keeping your money in the market for the next several years (if not decades), you could potentially make a lot of money.
Why invest in an S&P 500 ETF
It's also critical to choose the right investments, as not all stocks will recover from a market downturn or recession. But an S&P 500 ETF -- like the Vanguard S&P 500 ETF -- can limit your risk substantially.
An S&P 500 ETF is a fund that contains stocks from 500 of the largest corporations in the U.S., including big names like Amazon, Apple, and Microsoft. In other words, this ETF only includes the best of the best, and these companies are far more likely to rebound from a market downturn.
If you're nervous about investing right now, an S&P 500 ETF can be a safer option. While there are never any guarantees when it comes to the stock market, as long as you hold your investments for the long term, it's tough to lose money with this type of fund.
Also, this ETF can be a smart choice for those who want a low-maintenance investment. You'll never need to research individual stocks or decide when to buy or sell with this fund. All you have to do is invest consistently and give your money time to grow.
How much can you earn with an S&P 500 ETF?
Aside from being a relatively safe investment, the S&P 500 ETF also packs a punch -- and it can help you make a lot of money over time. Since its inception, this ETF has earned an average rate of return of nearly 13% per year. That may be a little higher than usual, simply because this fund was established in 2010 and didn't experience the Great Recession. Historically, the S&P 500 has earned average returns of around 10% per year.
Still, those returns can go a long way over time. Say, for example, you're investing $200 per month in this ETF while earning a 10% average annual return. Here's approximately how much you can earn over time, depending on how many years you continue to invest:
NUMBER OF YEARS TOTAL SAVINGS
10 $38,000
20 $137,000
25 $236,000
30 $395,000
35 $650,000
40 $1,062,000
Source: Author's calculations via Investor.gov
The more you invest each month and the longer you allow your money to grow, the more you can potentially earn.
In addition, the Vanguard S&P 500 ETF has an expense ratio of just 0.03%, which is one of the lowest among ETFs. Fees can take a significant bite out of your earnings, and a lower expense ratio could save you tens of thousands of dollars over time.
If that isn't enough to convince you, the Vanguard S&P 500 ETF is also one of only two ETFs owned by Warren Buffett, who has a long history of choosing winning investments, so in some cases, it could pay to follow his lead.
The upcoming months may be uncertain for the stock market, but things will get better. By investing in the right places now, you'll be ready to take advantage of the inevitable upswing.
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*Stock Advisor returns as of December 1, 2022
John Mackey, 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, Microsoft, and Vanguard S&P 500 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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An S&P 500 ETF is a fund that contains stocks from 500 of the largest corporations in the U.S., including big names like Amazon, Apple, and Microsoft. 10 $38,000 20 $137,000 25 $236,000 30 $395,000 35 $650,000 40 $1,062,000 Source: Author's calculations via Investor.gov The more you invest each month and the longer you allow your money to grow, the more you can potentially earn. Fees can take a significant bite out of your earnings, and a lower expense ratio could save you tens of thousands of dollars over time.
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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 Amazon.com, Apple, Microsoft, and Vanguard S&P 500 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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And there's one ETF, in particular, you might want to stock up on: the Vanguard S&P 500 ETF (NYSEMKT: VOO). Why invest in an S&P 500 ETF It's also critical to choose the right investments, as not all stocks will recover from a market downturn or recession. If that isn't enough to convince you, the Vanguard S&P 500 ETF is also one of only two ETFs owned by Warren Buffett, who has a long history of choosing winning investments, so in some cases, it could pay to follow his lead.
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Is now really the right time to invest? Still, those returns can go a long way over time. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Vanguard S&P 500 ETF wasn't one of them!
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17725.0
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2023-01-05 00:00:00 UTC
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Should Vanguard Russell 1000 ETF (VONE) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-russell-1000-etf-vone-be-on-your-investing-radar-5
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If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Vanguard Russell 1000 ETF (VONE), a passively managed exchange traded fund launched on 09/22/2010.
The fund is sponsored by Vanguard. It has amassed assets over $3.33 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.08%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.58%.
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 25.20% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.43% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 25.43% of total assets under management.
Performance and Risk
VONE seeks to match the performance of the Russell 1000 Index before fees and expenses. The Russell 1000 Index measures the performance of large-capitalization stocks in the United States.
The ETF has added roughly 0.30% so far this year and is down about -19.15% in the last one year (as of 01/05/2023). In the past 52-week period, it has traded between $162.86 and $216.35.
The ETF has a beta of 1.01 and standard deviation of 25.84% for the trailing three-year period, making it a medium risk choice in the space. With about 1022 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Russell 1000 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, VONE is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $290.45 billion in assets, SPDR S&P 500 ETF has $357.83 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
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Vanguard Russell 1000 ETF (VONE): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.43% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Russell 1000 ETF (VONE): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Vanguard Russell 1000 ETF (VONE), a passively managed exchange traded fund launched on 09/22/2010.
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Click to get this free report Vanguard Russell 1000 ETF (VONE): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.43% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Vanguard Russell 1000 ETF (VONE), a passively managed exchange traded fund launched on 09/22/2010.
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Click to get this free report Vanguard Russell 1000 ETF (VONE): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.43% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Alternatives Vanguard Russell 1000 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.43% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Russell 1000 ETF (VONE): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Annual operating expenses for this ETF are 0.08%, making it one of the least expensive products in the space.
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17726.0
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2023-01-05 00:00:00 UTC
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3 Dow Stocks Down 30% to 55% That Are Screaming Buys for 2023
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AAPL
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https://www.nasdaq.com/articles/3-dow-stocks-down-30-to-55-that-are-screaming-buys-for-2023
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nan
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nan
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The Dow Jones Industrial Average finished 2022 down nearly 9%. It delivered a worse negative return only six times over the past 50 years.
Several members of the blue chip index experienced especially sharp sell-offs. But that doesn't mean that better days aren't on the way. Here are three Dow stocks down 30% to 55% that are screaming buys for 2023.
1. Apple
Apple (NASDAQ: AAPL) held up better than most tech stocks throughout much of 2022. However, gravity kicked in during the latter part of the year. Apple's shares are now down around 30% below the peak level from late 2021.
The biggest problems for Apple relate to macroeconomic issues. High inflation, rising interest rates, and supply chain constraints (all aftereffects of the COVID-19 pandemic) are key factors behind the company's slowing growth rate.
But it would be a huge mistake to write off Apple's prospects. Wall Street certainly hasn't. The consensus 12-month price target for the stock is nearly 40% higher than the current share price.
Analysts no doubt like Apple's valuation after its steep decline. They almost certainly love the stickiness of the company's iPhone ecosystem. What really makes Apple stock a screaming buy, though, are the growth opportunities that the company could have in new areas, including augmented reality and digital advertising. The latter appears to be on track to become a $10 billion business for Apple even sooner than expected.
2. Microsoft
Microsoft (NASDAQ: MSFT) stock is currently 33% below the high set in late 2021. The tech giant started off last year with its shares declining. The downward trajectory continued throughout most of 2022.
This dismal performance last year stemmed in large part from a slump in worldwide PC shipments. Microsoft generates a significant portion of its total revenue from selling Windows operating systems and other PC software.
However, many analysts think that Microsoft could make a major comeback in the new year. The consensus Wall Street price target for the stock reflects an upside potential in the ballpark of 30%.
This bullish view appears to be justified. Microsoft's cloud hosting business continues to gain momentum. Sales for its cloud-based productivity software are growing. The company is making an important move into the advertising technology market. It shouldn't take much good news for Microsoft stock to return to its winning ways in 2023.
3. Disney
It wouldn't be surprising if Mickey Mouse isn't as cheerful as he's been in the past. Shares of Walt Disney (NYSE: DIS) plunged in 2022, marking the second consecutive year of declines. The stock is now down 55% below its previous high.
Disney's troubles are due in part to the overall economy. Investors also lost enthusiasm for the company's streaming business as it continues to rack up big losses.
There's some disagreement on Wall Street about how Disney will perform in 2023. Half of the analysts surveyed by Refinitiv in January recommend buying Disney, with most of the others recommending holding the stock. However, the average price target still reflects an upside potential of nearly 40%.
Disney's new ad-supported model for Disney+ could jump-start its biggest growth engine in 2023 and beyond. The company also has several likely blockbuster movies on the way this year, including Guardians of the Galaxy Vol. 3 and a live-action version of The Little Mermaid. Look for Disney's stock performance to avoid a third year of disappointment.
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Keith Speights has positions in Apple, Microsoft, and Walt Disney. The Motley Fool has positions in and recommends Apple, Microsoft, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) held up better than most tech stocks throughout much of 2022. What really makes Apple stock a screaming buy, though, are the growth opportunities that the company could have in new areas, including augmented reality and digital advertising. Microsoft generates a significant portion of its total revenue from selling Windows operating systems and other PC software.
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Apple Apple (NASDAQ: AAPL) held up better than most tech stocks throughout much of 2022. The consensus Wall Street price target for the stock reflects an upside potential in the ballpark of 30%. The Motley Fool has positions in and recommends Apple, Microsoft, and Walt Disney.
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Apple Apple (NASDAQ: AAPL) held up better than most tech stocks throughout much of 2022. *Stock Advisor returns as of December 1, 2022 Keith Speights has positions in Apple, Microsoft, and Walt Disney. The Motley Fool has positions in and recommends Apple, Microsoft, and Walt Disney.
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Apple Apple (NASDAQ: AAPL) held up better than most tech stocks throughout much of 2022. Microsoft Microsoft (NASDAQ: MSFT) stock is currently 33% below the high set in late 2021. The Motley Fool has positions in and recommends Apple, Microsoft, and Walt Disney.
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17727.0
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2023-01-05 00:00:00 UTC
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EU is stuck playing catch-up with Amazon and Apple
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AAPL
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https://www.nasdaq.com/articles/eu-is-stuck-playing-catch-up-with-amazon-and-apple
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Reuters
Reuters
LONDON (Reuters Breakingviews) - Europe’s antitrust tsar Margrethe Vestager appears to be clocking up some victories over technology groups like Amazon.com and Apple. But dig into the detail of the behemoths’ possible concessions, and it’s clear that they’re giving away very little. The European Commission in December accepted commitments offered by Amazon, ostensibly designed to stop the $880 billion e-commerce group using its dominant market position to favour its own services. The measures include restrictions on its use of merchants’ data, pledges to highlight alternative buying options on product pages, and opening its Prime subscription programme to independent delivery firms. Separately, Apple may allow other companies to set up app marketplaces on its iPhone, Bloomberg reported. That could be an attempt to get ahead of Europe’s recently introduced Digital Markets Act, which sets up a code of conduct for dominant digital companies. At first glance, such measures seem like wins for Vestager’s campaign to boost competition in online markets. Apple’s lock on the app store allows it to charge transaction fees of up to 30%, which critics like Spotify call a tax. App developers could skirt those charges if they’re able to reach iPhone users through a third-party marketplace. Meanwhile the Amazon commitments are legally binding, with a breach punishable by a fine of up to 10% of annual turnover, or $47 billion based on 2021 figures. The problem for Vestager is that Big Tech can probably brush off the changes. Take the Amazon concessions. The company promised to let merchants selling under the Prime subscription use rival delivery options, instead of just the e-commerce giant’s own offering. But independent logistics firms probably won’t be able to match Amazon’s speed and still make money. Vestager’s data restrictions, meanwhile, should stop the company using information on small merchants’ sales to undercut them with its own-brand products. But that won’t trouble Amazon much: private-label sales were 1% of its total, founder Jeff Bezos told the Congress in 2020. Any offer from Apple to allow competing app stores carries a similar risk. The tech giant makes it possible to download certain third-party software onto its Mac laptops, like the Windows operating system. But the cumbersome process can involve putting the computer in recovery mode and turning off security settings. Chief Executive Tim Cook could conceivably try the same trick with third-party iPhone app stores, for example by making users plug their device into a computer. If Vestager wants the concessions to stick, she’ll have to be ready to pounce on any gamesmanship. Europe’s fight with the U.S. tech giants will not end any time soon.
Follow @karenkkwok and @JMAGuilford on Twitter
CONTEXT NEWS
Amazon.com on Dec. 20 said that it had reached a settlement with the European Commission, which had been probing whether the e-commerce group abused its dominant market position.
The technology giant said that it has agreed to restrictions on the use of sellers’ data on its platform, changes to its website to highlight alternative buying options, and more choices for logistics providers under its Amazon Prime programme.
Fellow large technology company Apple is preparing its own business model changes ahead of deadlines to comply with the European Union’s Digital Markets Act in 2024, Bloomberg reported on Dec. 13. These include allowing app stores operated by third parties on its iPhone, according to the report.
(Column by Karen Kwok in London and Jonathan Guilford in New York. Editing by Liam Proud and Streisand Neto)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The European Commission in December accepted commitments offered by Amazon, ostensibly designed to stop the $880 billion e-commerce group using its dominant market position to favour its own services. The measures include restrictions on its use of merchants’ data, pledges to highlight alternative buying options on product pages, and opening its Prime subscription programme to independent delivery firms. Fellow large technology company Apple is preparing its own business model changes ahead of deadlines to comply with the European Union’s Digital Markets Act in 2024, Bloomberg reported on Dec. 13.
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The European Commission in December accepted commitments offered by Amazon, ostensibly designed to stop the $880 billion e-commerce group using its dominant market position to favour its own services. The measures include restrictions on its use of merchants’ data, pledges to highlight alternative buying options on product pages, and opening its Prime subscription programme to independent delivery firms. Separately, Apple may allow other companies to set up app marketplaces on its iPhone, Bloomberg reported.
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The European Commission in December accepted commitments offered by Amazon, ostensibly designed to stop the $880 billion e-commerce group using its dominant market position to favour its own services. The technology giant said that it has agreed to restrictions on the use of sellers’ data on its platform, changes to its website to highlight alternative buying options, and more choices for logistics providers under its Amazon Prime programme. Fellow large technology company Apple is preparing its own business model changes ahead of deadlines to comply with the European Union’s Digital Markets Act in 2024, Bloomberg reported on Dec. 13.
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Separately, Apple may allow other companies to set up app marketplaces on its iPhone, Bloomberg reported. Take the Amazon concessions. These include allowing app stores operated by third parties on its iPhone, according to the report.
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17728.0
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2023-01-05 00:00:00 UTC
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2 FAANG Stocks to Buy Hand Over Fist in 2023 and 1 to Avoid Like the Plague
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AAPL
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https://www.nasdaq.com/articles/2-faang-stocks-to-buy-hand-over-fist-in-2023-and-1-to-avoid-like-the-plague
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nan
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nan
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From time to time, Wall Street sends investors a not-so-subtle reminder that while the stock market tends to move higher over long periods, it doesn't take a straight-line path. Last year, all three major U.S. stock indexes were thrust into a bear market, with the widely followed S&P 500 and tech-driven Nasdaq Composite ending the year down 19% and 33%, respectively.
Historically, when the going gets rough for Wall Street, investors turn their attention to tried-and-true industry leaders, such as the FAANG stocks. When I say "FAANG," I'm referring to:
Facebook, which is a subsidiary of Meta Platforms (NASDAQ: META).
Amazon (NASDAQ: AMZN).
Apple (NASDAQ: AAPL).
Netflix (NASDAQ: NFLX).
Google, which is a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG).
Image source: Getty Images.
These are well-loved stocks because these companies offer well-defined competitive advantages. Netflix is the streaming market-share leader; Amazon is the dominant player in e-commerce; Meta's social media sites are tops globally; Apple's iPhone is the clear-cut U.S. smartphone share leader; and Alphabet's Google accounts for the lion's share of global internet search. People invest in these businesses because of their perceived moats and (often) exceptional cash-flow generation.
But not even the FAANG stocks are created equally. As we push ahead into the new year, two FAANG stocks can be confidently bought hand over fist, while another member of the group is best avoided.
FAANG stock No. 1 to buy hand over fist in 2023: Meta Platforms
The first FAANG stock that's a screaming buy in 2023 is social media giant Meta Platforms.
Meta had a horrendous year, with a slowdown in ad spending and higher costs associated with metaverse division Reality Labs significantly reducing its free cash flow and earnings, as well as reversing its previously unstoppable, double-digit revenue growth. Even though near-term economic uncertainty could continue to weigh on ad spending in the early part of 2023, the necessary puzzle pieces are in place for Meta to find solid ground and begin delivering for its shareholders, once again.
Despite the company shifting a lot of its spending to various metaverse initiatives, investors would be wise not to overlook how dominant Meta remains within social media. Facebook is the most-visited site globally, with around 2.9 billion monthly active users. When other owned assets, such as WhatsApp and Instagram, are added, Meta manages to bring in approximately 3.7 billion unique monthly active users (MAUs).
While aggregate MAU growth has understandably slowed, advertisers realize that there isn't a social media platform in the world that offers more eyeballs than Meta's top-tier assets. Not surprisingly, the company has been able to command strong ad-pricing power during long-winded periods of economic expansion.
As I've pointed out previously, CEO Mark Zuckerberg's aggressive spending on the metaverse is something his company can withstand. Meta closed out September with $31.9 billion in net cash, cash equivalents, and marketable securities, and its advertising business, which accounts for over 98% of total revenue, remains very profitable. If the metaverse turns out to be the multitrillion-dollar opportunity it's been advertised as, Meta should become one of the key on-ramps to this massive ecosystem.
Over the past five years, Meta has traded at an average multiple to its cash flow of 17. But if Meta can meet Wall Street's consensus cash-flow estimates for 2024, investors can buy in now for a cash-flow multiple of less than 6. That's an incredible bargain opportunistic investors shouldn't pass up.
FAANG stock No. 2 to buy hand over fist in 2023: Alphabet
The second FAANG stock that can be bought hand over fist in the new year is Alphabet, the company behind Google, streaming platform YouTube, and autonomous vehicle company Waymo, among other subsidiaries.
Alphabet and Meta are facing pretty much the same macroeconomic headwind at the moment: weaker ad spending. Since the vast majority of Alphabet's revenue comes from advertising via Google and YouTube, the prospect of economic weakness has prompted advertisers to reduce their spending. While this short-term maelstrom has been unpleasant, it'll have no bearing on Alphabet's long-term growth strategy.
To begin with, internet search engine Google might as well be considered a monopoly. Based on data from GlobalStats, it's accounted for no less than 91% of worldwide internet search share dating back to the beginning of 2020. Similar to how advertisers view Meta's social media assets as the logical choice to get their message in front of as many users as possible, Google is the logical choice for advertisers wanting to target their message via internet search. This distinction is what should afford Google exceptional ad-pricing power more often than not.
But the real intrigue is what Alphabet is doing beyond Google. With YouTube, the second most-visited social site in the world behind only Facebook, Alphabet is looking for ways to better monetize YouTube Shorts (videos of less than 60 seconds), which have been attracting approximately 1.5 billion viewers each month.
There's also cloud-infrastructure service Google Cloud, which according to Canalys worked its way up to a 9% global share of cloud-infrastructure spending in the third quarter. We're likely seeing just the tip of the iceberg when it comes to enterprise cloud spending, which is why Google Cloud has been able to sustain revenue growth in the neighborhood of 40%. This is a potentially high-margin segment that could become a serious cash-flow driver for the company by mid-decade.
Yet the jaw-dropper is Alphabet's valuation. It's sitting on more than $101 billion in net cash, cash equivalents, and marketable securities, yet can be purchased by investors for a little over 9 times Wall Street's forecast cash flow for 2024. That's close to a 50% discount to the cash-flow multiple investors have been paying for Alphabet stock over the past five years.
Image source: Getty Images.
The FAANG stock to avoid like the plague in 2023: Netflix
On the other side of the aisle, streaming service Netflix stands out as the black sheep of the bunch that should be actively avoided in 2023.
To be fair, Netflix has clearly done certain things right; otherwise, it wouldn't have a $131 billion market cap and be the global and domestic leader in streaming-service share. Netflix has benefited from its first-mover advantage, as well as its veritable mountain of original programming, which draws new subscribers in and keeps existing subscribers from leaving.
Furthermore, Netflix is profitable on a recurring basis at a time when virtually every other streaming service is bleeding. In other words, Netflix has demonstrated that its operating model works. With the recent addition of an ad-supported tier, the expectation is for the company to continue building on its more than 223 million global subscribers.
However, Netflix's subscriber growth has slowed dramatically as competing streaming platforms have ramped up. It took Walt Disney less than three years to get the subscriber count for Disney+ to more than 164 million. Likewise, Paramount Global's Paramount+ and Warner Bros. Discovery's streaming offerings (HBO Max and Discovery+) have produced sustained double-digit subsriber increases. Despite near-term losses, these companies are well known and have deep pockets. In short, they can continue to constrain Netflix's subscriber growth.
Another really big problem for Netflix is its cash-flow generation. Similar to how Walt Disney, Paramount, and Warner Bros. Discovery have opened the proverbial spigot to spend on international streaming expansion, Netflix spent a small fortune bolstering its overseas presence. Unfortunately, spending big to acquire and produce content has resulted in minimal cash-flow production.
Whereas Meta Platforms and Alphabet can be purchased by investors at historically low multiples to future cash flow, Netflix is currently valued at nearly 26 times Wall Street's forecast cash flow for the company in 2024 and more than 40 times what's expected this year. Though we've heard management talk about improving the company's cash flow, we've yet to really see it materialize. Until that happens, Netflix is a FAANG stock worth avoiding.
10 stocks we like better than Meta Platforms
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Sean Williams has positions in Alphabet, Amazon.com, Meta Platforms, and Warner Bros. Discovery. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Netflix, and Walt Disney. The Motley Fool recommends Warner Bros. Discovery 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.
The views and 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). Meta had a horrendous year, with a slowdown in ad spending and higher costs associated with metaverse division Reality Labs significantly reducing its free cash flow and earnings, as well as reversing its previously unstoppable, double-digit revenue growth. Even though near-term economic uncertainty could continue to weigh on ad spending in the early part of 2023, the necessary puzzle pieces are in place for Meta to find solid ground and begin delivering for its shareholders, once again.
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Apple (NASDAQ: AAPL). 2 to buy hand over fist in 2023: Alphabet The second FAANG stock that can be bought hand over fist in the new year is Alphabet, the company behind Google, streaming platform YouTube, and autonomous vehicle company Waymo, among other subsidiaries. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Netflix, and Walt Disney.
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Apple (NASDAQ: AAPL). Netflix is the streaming market-share leader; Amazon is the dominant player in e-commerce; Meta's social media sites are tops globally; Apple's iPhone is the clear-cut U.S. smartphone share leader; and Alphabet's Google accounts for the lion's share of global internet search. 2 to buy hand over fist in 2023: Alphabet The second FAANG stock that can be bought hand over fist in the new year is Alphabet, the company behind Google, streaming platform YouTube, and autonomous vehicle company Waymo, among other subsidiaries.
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Apple (NASDAQ: AAPL). Google, which is a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG). Netflix is the streaming market-share leader; Amazon is the dominant player in e-commerce; Meta's social media sites are tops globally; Apple's iPhone is the clear-cut U.S. smartphone share leader; and Alphabet's Google accounts for the lion's share of global internet search.
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17729.0
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2023-01-05 00:00:00 UTC
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Apple supplier Foxconn December revenue drops 12% y/y
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AAPL
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https://www.nasdaq.com/articles/apple-supplier-foxconn-december-revenue-drops-12-y-y
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nan
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By Sarah Wu and Yimou Lee
TAIPEI, Jan 5 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, said on Thursday revenue in December dropped 12.3% year-on-year after production problems related to COVID-19 controls at a major iPhone factory in China's Zhengzhou city.
The company said in a statement, however, production at the factory in China "basically returned to normal" in December. It did not elaborate.
The company said revenue for December was better than its own expectations and that a "gradual recovery" at its Zhengzhou plant had contributed to "double-digit growth" in revenue for its smart consumer electronics business compared to November.
A Foxconn source familiar with the matter said the "significant growth" in December compared to the month prior for its consumer electronics business including smartphones showed that major client Apple AAPL.O did not cut orders for its popular iPhones. Revenue for 2022 rose 10.47% from the previous year to a record high, driven by growth across major product lines from smartphones to servers, the company said.
In the fourth quarter of 2022, the Zhengzhou plant grappled with strict COVID-19 restrictions that fuelled discontent among workers over conditions at the factory.
Production of the Apple device was disrupted ahead of Christmas and January's Lunar New Year holidays, after a COVID-19 outbreak and curbs taken to control the virus prompted thousands of workers to leave. It was also hit by a bout of worker unrest over payment issues.
Foxconn has been offering bonuses to attract new workers and convince those still there to stay on. A company source told Reuters last month that it was aiming for the plant to resume full production around late December to early January.
Analysts say Foxconn assembles around 70% of iPhones, and the Zhengzhou plant produces the majority of its premium models including iPhone 14 Pro.
(Reporting by Sarah Wu and Yimou Lee; Editing by Christopher Cushing and Emelia Sithole-Matarise)
((yimou.lee@thomsonreuters.com; +886-2-8729-5122;))
The views and 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 Foxconn source familiar with the matter said the "significant growth" in December compared to the month prior for its consumer electronics business including smartphones showed that major client Apple AAPL.O did not cut orders for its popular iPhones. By Sarah Wu and Yimou Lee TAIPEI, Jan 5 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, said on Thursday revenue in December dropped 12.3% year-on-year after production problems related to COVID-19 controls at a major iPhone factory in China's Zhengzhou city. Production of the Apple device was disrupted ahead of Christmas and January's Lunar New Year holidays, after a COVID-19 outbreak and curbs taken to control the virus prompted thousands of workers to leave.
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A Foxconn source familiar with the matter said the "significant growth" in December compared to the month prior for its consumer electronics business including smartphones showed that major client Apple AAPL.O did not cut orders for its popular iPhones. By Sarah Wu and Yimou Lee TAIPEI, Jan 5 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, said on Thursday revenue in December dropped 12.3% year-on-year after production problems related to COVID-19 controls at a major iPhone factory in China's Zhengzhou city. The company said revenue for December was better than its own expectations and that a "gradual recovery" at its Zhengzhou plant had contributed to "double-digit growth" in revenue for its smart consumer electronics business compared to November.
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A Foxconn source familiar with the matter said the "significant growth" in December compared to the month prior for its consumer electronics business including smartphones showed that major client Apple AAPL.O did not cut orders for its popular iPhones. By Sarah Wu and Yimou Lee TAIPEI, Jan 5 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, said on Thursday revenue in December dropped 12.3% year-on-year after production problems related to COVID-19 controls at a major iPhone factory in China's Zhengzhou city. The company said revenue for December was better than its own expectations and that a "gradual recovery" at its Zhengzhou plant had contributed to "double-digit growth" in revenue for its smart consumer electronics business compared to November.
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A Foxconn source familiar with the matter said the "significant growth" in December compared to the month prior for its consumer electronics business including smartphones showed that major client Apple AAPL.O did not cut orders for its popular iPhones. By Sarah Wu and Yimou Lee TAIPEI, Jan 5 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, said on Thursday revenue in December dropped 12.3% year-on-year after production problems related to COVID-19 controls at a major iPhone factory in China's Zhengzhou city. It did not elaborate.
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17730.0
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2023-01-05 00:00:00 UTC
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More ETFs Benefitting From Being on NYSE Floor
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AAPL
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https://www.nasdaq.com/articles/more-etfs-benefitting-from-being-on-nyse-floor
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nan
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Six weeks after the first ETF, a bond fund, moved onto the floor of the New York Stock Exchange (NYSE), it was joined by two equity ETFs and one commodity ETF. Before long, there will be enough ETFs residing there to build a full asset allocation model or play a touch football game outside on Wall Street.
On January 3, Harbor Capital Advisors moved three of its ETFs from the NYSE Arca, which utilizes an electronic trading platform, to the floor of the NYSE. While electronic trading remains in place on the NYSE floor, the additional element of human oversight by a Designated Market Maker (DMM) provides trading support that will likely result in increased liquidity, improved price discovery, and reduced transaction costs for investors.
The ETFs included two actively managed equity funds, the Harbor Dividend Growth Leaders ETF (GDIV) and the Harbor Long-Term Growers ETF (WINN), as well as one index-based commodity ETF, the Harbor All-Weather Inflation Focus ETF (HGER).
“For years, the industry has tried to educate ETF investors to steer clear of the first few minutes of trading, but unfortunately investors still do it and receive poor execution at the open,” explained Steve Cook, head of ETFs at Harbor Capital Advisors to VettaFi. “We have to meet investors where they are and improve the experience.”
The two equity Harbor ETFs have relatively short trading records and typically incur limited volume despite owning highly liquid stocks like Apple and Microsoft. WINN trades on average approximately 75,000 shares daily, while GDIV trades under 20,000.
“We are trying to grow the investor base, but low volume ETFs can face challenges to keep trading spreads tight,” added Cook. A DDM on the floor of the NYSE for these ETFs could certainly help.
Indeed, GDIV and WINN had 30-day median bid-ask spreads of 0.26% and 0.22%. The commodity ETF, HGER, traded even less frequently, with a recent average volume of 6,600 shares and a spread of 0.32%.
Harbor hopes to have similar success as the PIMCO Active Bond ETF (BOND), which was the first ETF to shift to the NYSE floor following its move in mid-November. The NYSE published a piece recapping some of the benefits BOND shareholders incurred. The median daily quoted spread dropped 65% as of mid-December, and the median notional quoted size increased by 80%.
“We have observed tighter bid-ask spreads in BOND since the move to the NYSE floor and with the additional market making support received from our DMM,” explained Tanuj Dora, head of ETF capital markets for PIMCO.
As more asset managers understand how they can possibly improve the investor experience for their under-the-radar ETFs using a DDM, products like BOND, GDIV, HGER, and WINN will have more ETF friends on the NYSE floor to join them on Wall Street for a pick-up game.
For more news, information, and analysis, visit the Market Insights Channel.
Read more on ETFtrends.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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Before long, there will be enough ETFs residing there to build a full asset allocation model or play a touch football game outside on Wall Street. “We have to meet investors where they are and improve the experience.” The two equity Harbor ETFs have relatively short trading records and typically incur limited volume despite owning highly liquid stocks like Apple and Microsoft. “We are trying to grow the investor base, but low volume ETFs can face challenges to keep trading spreads tight,” added Cook.
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The ETFs included two actively managed equity funds, the Harbor Dividend Growth Leaders ETF (GDIV) and the Harbor Long-Term Growers ETF (WINN), as well as one index-based commodity ETF, the Harbor All-Weather Inflation Focus ETF (HGER). “We have observed tighter bid-ask spreads in BOND since the move to the NYSE floor and with the additional market making support received from our DMM,” explained Tanuj Dora, head of ETF capital markets for PIMCO. As more asset managers understand how they can possibly improve the investor experience for their under-the-radar ETFs using a DDM, products like BOND, GDIV, HGER, and WINN will have more ETF friends on the NYSE floor to join them on Wall Street for a pick-up game.
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Six weeks after the first ETF, a bond fund, moved onto the floor of the New York Stock Exchange (NYSE), it was joined by two equity ETFs and one commodity ETF. The ETFs included two actively managed equity funds, the Harbor Dividend Growth Leaders ETF (GDIV) and the Harbor Long-Term Growers ETF (WINN), as well as one index-based commodity ETF, the Harbor All-Weather Inflation Focus ETF (HGER). As more asset managers understand how they can possibly improve the investor experience for their under-the-radar ETFs using a DDM, products like BOND, GDIV, HGER, and WINN will have more ETF friends on the NYSE floor to join them on Wall Street for a pick-up game.
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Six weeks after the first ETF, a bond fund, moved onto the floor of the New York Stock Exchange (NYSE), it was joined by two equity ETFs and one commodity ETF. Indeed, GDIV and WINN had 30-day median bid-ask spreads of 0.26% and 0.22%. “We have observed tighter bid-ask spreads in BOND since the move to the NYSE floor and with the additional market making support received from our DMM,” explained Tanuj Dora, head of ETF capital markets for PIMCO.
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17731.0
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2023-01-05 00:00:00 UTC
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Should iShares S&P 500 Growth ETF (IVW) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-ishares-sp-500-growth-etf-ivw-be-on-your-investing-radar-5
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If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the iShares S&P 500 Growth ETF (IVW), a passively managed exchange traded fund launched on 05/22/2000.
The fund is sponsored by Blackrock. It has amassed assets over $27.84 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows 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. Also, growth stocks are a type of equity that carries more risk compared to others. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.18%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.90%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 45% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.71% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 52.14% of total assets under management.
Performance and Risk
IVW seeks to match the performance of the S&P 500 Growth Index before fees and expenses. The S&P 500 Growth Index measures the performance of the large capitalization growth sector of the U.S. equity market.
The ETF has lost about -0.97% so far this year and is down about -29.98% in the last one year (as of 01/05/2023). In the past 52-week period, it has traded between $56.73 and $81.25.
The ETF has a beta of 1.05 and standard deviation of 28.27% for the trailing three-year period, making it a medium risk choice in the space. With about 244 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares S&P 500 Growth ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IVW is a reasonable option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $67.68 billion in assets, Invesco QQQ has $145.61 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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iShares S&P 500 Growth ETF (IVW): 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 (AAPL) accounts for about 14.71% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares S&P 500 Growth ETF (IVW): 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 $27.84 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Click to get this free report iShares S&P 500 Growth ETF (IVW): ETF Research Reports 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 (AAPL) accounts for about 14.71% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Sector Exposure and Top Holdings Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing.
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Click to get this free report iShares S&P 500 Growth ETF (IVW): 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 (AAPL) accounts for about 14.71% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the iShares S&P 500 Growth ETF (IVW), a passively managed exchange traded fund launched on 05/22/2000.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.71% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares S&P 500 Growth ETF (IVW): 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. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
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17732.0
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2023-01-04 00:00:00 UTC
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Apple to sign Luxshare for iPhone production in China - FT
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AAPL
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https://www.nasdaq.com/articles/apple-to-sign-luxshare-for-iphone-production-in-china-ft-0
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nan
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nan
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Adds details from report, background on production disruption
Jan 4 (Reuters) - Apple Inc AAPL.O is set to sign up Chinese contract manufacturer Luxshare Precision Industry Co Ltd 002475.SZ to produce premium iPhone models, the Financial Times reported on Wednesday, citing sources familiar with the matter.
Luxshare has been producing small numbers of the iPhone 14 Pro Max at its Kunshan plant, to make up for lost production at Foxconn's Zhengzhou factory last year, the report added.
Analysts expected Apple to diversify its supplier base amid production disruptions in China due to employee unrest at a factory operated by Foxconn and COVID-19 induced lockdowns.
Apple in November warned of lower shipments of its premium iPhone 14 models following significant production cuts.
The iPhone maker and Luxshare did not immediately respond to Reuters requests for comment.
(Reporting by Akash Sriram in Bengaluru; Editing by Shailesh Kuber)
((Akash.Sriram@thomsonreuters.com; https://twitter.com/hoodieonveshti;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details from report, background on production disruption Jan 4 (Reuters) - Apple Inc AAPL.O is set to sign up Chinese contract manufacturer Luxshare Precision Industry Co Ltd 002475.SZ to produce premium iPhone models, the Financial Times reported on Wednesday, citing sources familiar with the matter. Luxshare has been producing small numbers of the iPhone 14 Pro Max at its Kunshan plant, to make up for lost production at Foxconn's Zhengzhou factory last year, the report added. Analysts expected Apple to diversify its supplier base amid production disruptions in China due to employee unrest at a factory operated by Foxconn and COVID-19 induced lockdowns.
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Adds details from report, background on production disruption Jan 4 (Reuters) - Apple Inc AAPL.O is set to sign up Chinese contract manufacturer Luxshare Precision Industry Co Ltd 002475.SZ to produce premium iPhone models, the Financial Times reported on Wednesday, citing sources familiar with the matter. Analysts expected Apple to diversify its supplier base amid production disruptions in China due to employee unrest at a factory operated by Foxconn and COVID-19 induced lockdowns. Apple in November warned of lower shipments of its premium iPhone 14 models following significant production cuts.
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Adds details from report, background on production disruption Jan 4 (Reuters) - Apple Inc AAPL.O is set to sign up Chinese contract manufacturer Luxshare Precision Industry Co Ltd 002475.SZ to produce premium iPhone models, the Financial Times reported on Wednesday, citing sources familiar with the matter. Luxshare has been producing small numbers of the iPhone 14 Pro Max at its Kunshan plant, to make up for lost production at Foxconn's Zhengzhou factory last year, the report added. Analysts expected Apple to diversify its supplier base amid production disruptions in China due to employee unrest at a factory operated by Foxconn and COVID-19 induced lockdowns.
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Adds details from report, background on production disruption Jan 4 (Reuters) - Apple Inc AAPL.O is set to sign up Chinese contract manufacturer Luxshare Precision Industry Co Ltd 002475.SZ to produce premium iPhone models, the Financial Times reported on Wednesday, citing sources familiar with the matter. Luxshare has been producing small numbers of the iPhone 14 Pro Max at its Kunshan plant, to make up for lost production at Foxconn's Zhengzhou factory last year, the report added. Analysts expected Apple to diversify its supplier base amid production disruptions in China due to employee unrest at a factory operated by Foxconn and COVID-19 induced lockdowns.
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17733.0
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2023-01-04 00:00:00 UTC
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FOCUS-At CES 2023, Sony's 'Gran Turismo' flags new entertainment strategy
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AAPL
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https://www.nasdaq.com/articles/focus-at-ces-2023-sonys-gran-turismo-flags-new-entertainment-strategy-0
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nan
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nan
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By Dawn Chmielewski
Jan 4 (Reuters) - When Sony Corp Group 6758.T teases “Gran Turismo,” its long-awaited adrenaline-fueled film adaptation of Sony PlayStation’s hit car-racing franchise at the CES 2023 technology trade show this week, it will really be showing off its new identity as a content-driven company.
The movie reflects the transformation of the maker of the Walkman and Bravia TVs from a primarily hardware-focused innovator to broad-based entertainment provider. It also represents a significant bridging of the divides between Sony Pictures Entertainment, Sony PlayStation and Sony Music, according to a dozen current and former senior executives interviewed by Reuters.
“I defined our identity as a creative entertainment company with a solid foundation on technology,” Sony chief executive Kenichiro Yoshida said.
The film’s appearance at CES on a stage typically reserved for big-screen TVs and robot pets caps $10 billion in investments in music, games and anime over the last five years.
“Gran Turismo” is one of 10 game-inspired film and television projects in various stages of development.
HBO's “The Last of Us,” about a man hired to smuggle a 14-year-old girl across a pandemic-plagued America, debuts on Jan. 15. “The New Yorker” suggested the series could break the curse of bad video-game adaptations.
Sony’s “creative entertainment” company approach extends beyond content.
A Sony-Honda electric vehicle, scheduled to reach consumers by 2026, is being framed as a rolling showcase of Sony’s entertainment, gaming and camera sensor prowess.
It will also generate recurring subscription revenue like other content services.
“Eventually, we think in the long term, the mobility space will become an entertainment space,” Yoshida said.
The high-profile projects, which could not have happened even three years ago, grew out of regular conversations among Sony executives, as they sought a way to work together more effectively.
Sony resisted chasing after Netflix with a rival service and fended off an activist shareholder’s call to sell or spin off its media and entertainment assets in 2020.
Instead it struck deals to provide movies to Netflix and Walt Disney Co's DIS.N Disney+ and series to HBO, Amazon and Apple Inc's AAPL.O Apple TV+.
The shift is reflected in Sony’s results, with two-thirds of operating profit coming from games, music and the film studio. Operating profit rose 8% to 344 billion yen ($2.6 billion) for the July-September quarter, beating analyst estimates. In November, with the music business offsetting weakness in the games group, Sony hiked its full-year operating profit forecast.
“This is a complete pivot of this company into something that’s no longer an electronics company,” said Ulrike Schaede, a professor of Japanese Business at UC San Diego’s School of Global Policy and Strategy.
Schaede said the company now has a coherent corporate narrative that would make it easier to unite the company’s divisions.
“That's the new Sony,” she said. “Now, can they deliver? I don't know.”
TREASURE CHEST
When veteran media executive Tony Vinciquerra was recruited as chairman of Sony Pictures in 2017, the division was reeling after a string of box office flops including the 2016 reboot of the “Ghostbusters” franchise. DVD and Blu-ray disc revenue had plummeted under pressure from streaming services, and there were rumors of a possible sale, media executives said.
But Vinciquerra was attracted by the opportunity to leverage the company’s assets: “Sony is the only company in the media business that has not only television or film, but music, PlayStation, and technology,” he said in an interview.
Sony had struggled for decades to achieve the “synergy” the company touted with its 1989 acquisition of Columbia Pictures Entertainment.
At best, these forced collaborations ended up as product placement in a movie or marketing promotion. At worst, they got in the way of adapting to the digital era.
Entertainment executives then came up with PlayStation Productions: a division within the games group located on the Culver City studio lot and dedicated to film and television adaptations.
The result was “Uncharted,” last year’s release starring "Spider-Man’s" Tom Holland and Mark Wahlberg in a hunt for Magellan’s lost treasure. The film delivered $401 million in global ticket sales and became the most-watched film on Netflix when it was released on the streaming service in August.
Meanwhile, one of the most popular artists distributed by Sony Music, the Puerto Rican rapper Benito Antonio Martínez Ocasio, who performs as “Bad Bunny," will star in “El Muerto,” a film drawn from Sony’s Marvel Universe of characters, due out in 2024. Bad Bunny is a Rimas Entertainment artist.
Sony Music Entertainment CEO Rob Stringer said Yoshida’s “light touch” has proven successful. “Quite frankly, the ideas are flying around, and everyone's much, much more comfortable about talking to each other,” Stringer said.
The movie is based on British racer Jann Mardenborough, who won the 2011 GT Academy Europe at 19 and went on to a podium finish at the 24-Hours of Le Mans in 2013.
Academy Award-nominated director of “District 9” Neil Blomkamp directs a cast that includes “Lord of the Rings” star Orlando Bloom and “Stranger Things” actor David Harbour.
“We’re telling a true story about wish fulfillment,” PlayStation Productions chief Asad Qizilbash said. “This kid loved playing Gran Turismo, and at the same time, we’re celebrating the game.”
(Reporting by Dawn Chmielewski in Los Angeles, additional reporting by Kiyoshi Takenaka in Tokyo; Edited by Kenneth Li and Suzanne Goldenberg in New York.)
((Dawn.Chmielewski@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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Instead it struck deals to provide movies to Netflix and Walt Disney Co's DIS.N Disney+ and series to HBO, Amazon and Apple Inc's AAPL.O Apple TV+. The film’s appearance at CES on a stage typically reserved for big-screen TVs and robot pets caps $10 billion in investments in music, games and anime over the last five years. When veteran media executive Tony Vinciquerra was recruited as chairman of Sony Pictures in 2017, the division was reeling after a string of box office flops including the 2016 reboot of the “Ghostbusters” franchise.
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Instead it struck deals to provide movies to Netflix and Walt Disney Co's DIS.N Disney+ and series to HBO, Amazon and Apple Inc's AAPL.O Apple TV+. By Dawn Chmielewski Jan 4 (Reuters) - When Sony Corp Group 6758.T teases “Gran Turismo,” its long-awaited adrenaline-fueled film adaptation of Sony PlayStation’s hit car-racing franchise at the CES 2023 technology trade show this week, it will really be showing off its new identity as a content-driven company. It also represents a significant bridging of the divides between Sony Pictures Entertainment, Sony PlayStation and Sony Music, according to a dozen current and former senior executives interviewed by Reuters.
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Instead it struck deals to provide movies to Netflix and Walt Disney Co's DIS.N Disney+ and series to HBO, Amazon and Apple Inc's AAPL.O Apple TV+. By Dawn Chmielewski Jan 4 (Reuters) - When Sony Corp Group 6758.T teases “Gran Turismo,” its long-awaited adrenaline-fueled film adaptation of Sony PlayStation’s hit car-racing franchise at the CES 2023 technology trade show this week, it will really be showing off its new identity as a content-driven company. It also represents a significant bridging of the divides between Sony Pictures Entertainment, Sony PlayStation and Sony Music, according to a dozen current and former senior executives interviewed by Reuters.
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Instead it struck deals to provide movies to Netflix and Walt Disney Co's DIS.N Disney+ and series to HBO, Amazon and Apple Inc's AAPL.O Apple TV+. “That's the new Sony,” she said. But Vinciquerra was attracted by the opportunity to leverage the company’s assets: “Sony is the only company in the media business that has not only television or film, but music, PlayStation, and technology,” he said in an interview.
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17734.0
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2023-01-04 00:00:00 UTC
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Wednesday Recap: Minty Fresh Breadth
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AAPL
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https://www.nasdaq.com/articles/wednesday-recap%3A-minty-fresh-breadth
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nan
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nan
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Market Breadth: A Key Tool for Savvy Investors
From a Wall Street perspective, breadth refers to the number of stocks participating in the movement of a market index, most commonly the S&P 500 Index. When the stock market has more stocks rising than falling, it is said to have positive breadth. On the other hand, when more stocks are falling than rising, the market index is referred to as having negative breadth. Measuring breadth for an index is simple. Look at the entirety of an index and count the number of stocks rising versus falling; that ratio gives you the index’s breadth. If 50% or more of components are rising, breadth is positive.
Why is Breadth so Crucial for Investors to watch?
Often, the market can mask what is genuinely happening “underneath the surface” of an index. For example, imagine mega-cap stocks such as Tesla TSLA, Apple AAPL and Microsoft MSFT have very strong sessions. Since the two behemoths have significant weightings in their indexes, they can prop up the indexes to look stronger than they are. Before the market topped in late 2021, fewer stocks participated each day, despite the market rising. Ultimately, breadth was a leading indicator of what was to come.
Image Source: Zacks Investment Research
Pictured: Prior to topping in late 2021, the S&P 500 began to flash signs of distribution in the form of weak breadth.
A Reason to be Optimistic
Despite market breadth being a warning sign at times like late 2021, the indicator works both ways. Strong breadth can indicate that a bear market is on its last legs, or at least a short-term rally may ensue. In Wednesday's session, the S&P 500 Index breadth indicator provided a reason for bulls to be optimistic. Breadth favored bulls by a ratio of 80% advancers to 20% decliners.
Breadth was not the only indicator suggesting broad participation in the rally. Outside of energy (which was down slightly), every sector in the S&P 500 Index rose – another sign of broad market participation. Lastly, “risk on” areas of the market, such as Chinese stocks, crypto-related names, and marijuana stocks bounced hard. For instance, beaten-down securities such as Alibaba Group BABA, Silvergate Capital SI, and Canopy Growth CGC soared 12.98%, 27.10%, and 8.66%, respectively.
Image Source: Zacks Investment Research
Pictured: Beaten down stocks like BABA, SI, and CGC roared back with vengeance Tuesday.
Don’t Put the Cart Before the Horse
While one day of positive breadth is a battle won for bulls, the war is far from being won. The market is clearly in a downtrend for now. With that said, bulls should gain confidence if strong breadth days (80%+) begin to cluster, broad industry participation continues, and the major market indexes start to put in higher highs and higher lows. Stay tuned!
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Silvergate Capital Corporation (SI) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
Canopy Growth Corporation (CGC) : 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 example, imagine mega-cap stocks such as Tesla TSLA, Apple AAPL and Microsoft MSFT have very strong sessions. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Silvergate Capital Corporation (SI) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report Canopy Growth Corporation (CGC) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Pictured: Prior to topping in late 2021, the S&P 500 began to flash signs of distribution in the form of weak breadth.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Silvergate Capital Corporation (SI) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report Canopy Growth Corporation (CGC) : Free Stock Analysis Report To read this article on Zacks.com click here. For example, imagine mega-cap stocks such as Tesla TSLA, Apple AAPL and Microsoft MSFT have very strong sessions. For instance, beaten-down securities such as Alibaba Group BABA, Silvergate Capital SI, and Canopy Growth CGC soared 12.98%, 27.10%, and 8.66%, respectively.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Silvergate Capital Corporation (SI) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report Canopy Growth Corporation (CGC) : Free Stock Analysis Report To read this article on Zacks.com click here. For example, imagine mega-cap stocks such as Tesla TSLA, Apple AAPL and Microsoft MSFT have very strong sessions. Market Breadth: A Key Tool for Savvy Investors From a Wall Street perspective, breadth refers to the number of stocks participating in the movement of a market index, most commonly the S&P 500 Index.
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For example, imagine mega-cap stocks such as Tesla TSLA, Apple AAPL and Microsoft MSFT have very strong sessions. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Silvergate Capital Corporation (SI) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report Canopy Growth Corporation (CGC) : Free Stock Analysis Report To read this article on Zacks.com click here. Look at the entirety of an index and count the number of stocks rising versus falling; that ratio gives you the index’s breadth.
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17735.0
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2023-01-04 00:00:00 UTC
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Apple (AAPL) Outpaces Stock Market Gains: What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-outpaces-stock-market-gains%3A-what-you-should-know-8
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nan
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nan
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Apple (AAPL) closed the most recent trading day at $126.36, moving +1.03% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.75%. Elsewhere, the Dow gained 0.4%, while the tech-heavy Nasdaq added 10.36%.
Coming into today, shares of the maker of iPhones, iPads and other products had lost 12.48% in the past month. In that same time, the Computer and Technology sector lost 8.72%, while the S&P 500 lost 5.98%.
Investors will be hoping for strength from Apple as it approaches its next earnings release. 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%. Our most recent consensus estimate is calling for quarterly revenue of $120.8 billion, down 2.54% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.18 per share and revenue of $403.75 billion. These totals would mark changes of +1.15% and +2.39%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Apple. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.85% lower. Apple currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Apple has a Forward P/E ratio of 20.23 right now. This represents a premium compared to its industry's average Forward P/E of 7.99.
We can also see that AAPL currently has a PEG ratio of 1.62. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AAPL's industry had an average PEG ratio of 2.27 as of yesterday's close.
The Computer - Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 226, which puts it in the bottom 11% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AAPL in the coming trading sessions, be sure to utilize 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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Apple (AAPL) closed the most recent trading day at $126.36, moving +1.03% from the previous trading session. We can also see that AAPL currently has a PEG ratio of 1.62. AAPL's industry had an average PEG ratio of 2.27 as of yesterday's close.
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Apple (AAPL) closed the most recent trading day at $126.36, moving +1.03% from the previous trading session. We can also see that AAPL currently has a PEG ratio of 1.62. AAPL's industry had an average PEG ratio of 2.27 as of yesterday's close.
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Apple (AAPL) closed the most recent trading day at $126.36, moving +1.03% from the previous trading session. We can also see that AAPL currently has a PEG ratio of 1.62. AAPL's industry had an average PEG ratio of 2.27 as of yesterday's close.
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Apple (AAPL) closed the most recent trading day at $126.36, moving +1.03% from the previous trading session. We can also see that AAPL currently has a PEG ratio of 1.62. AAPL's industry had an average PEG ratio of 2.27 as of yesterday's close.
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17736.0
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2023-01-04 00:00:00 UTC
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US STOCKS-Wall St reverses losses as focus turns to Fed minutes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-reverses-losses-as-focus-turns-to-fed-minutes
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nan
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nan
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By Amruta Khandekar and Ankika Biswas
Jan 4 (Reuters) - Wall Street's main indexes reversed early losses on Wednesday, as investors looked past a set of economic data, with focus squarely on the Federal Reserve's December meeting minutes for clues on the outlook for interest rates.
Minutes from the Fed's previous meeting, when it raised interest rates by half a percentage point and cautioned rates may need to remain higher for longer, are due at 2 p.m. ET (1900 GMT).
The minutes could show the central bank's internal deliberations entering a new phase where risks to economic growth and employment are given more standing, while curbing high inflation remains the top priority.
"What you'll hear is the Fed needs to continue to hold the line and fight inflation ... there'll be some back and forth between various members about where the terminal rate should land," said Darrell Cronk, chief investment officer at Wells Fargo Wealth & Investment Management.
U.S. job openings in November indicated a tight labor market, giving the Fed cover to stick to its monetary tightening campaign for longer, while other data showed manufacturing contracted further in December.
Minneapolis Fed President Neel Kashkari on Wednesday stressed the need for continued rate hikes, setting out his own forecast that the policy rate should initially pause at 5.4%.
U.S. equities were pummeled in 2022 on worries of a recession due to aggressive monetary policy tightening, with the three main stock indexes logging their steepest annual losses since 2008.
Market participants see a 66.7% chance of a 25-basis point rate hike from the Fed in February, and see rates peaking at 4.98% by June. FEDWATCH
Apple Inc AAPL.O and Tesla Inc TSLA.O bounced back from a searing drop in the previous session and rose 2.3% and 5.0%, respectively.
"People repositioning their portfolios for this year is leading the market to see these gains ... people are stepping into names that really underperformed last year," said Robert Pavlik, senior portfolio manager at Dakota Wealth Management.
Meanwhile, Microsoft Corp MSFT.O dropped 4.3% following a downgrade by brokerage UBS on worries over slowing growth for its cloud services and Office suite.
Consumer discretionary .SPLRCD and financial stocks .SPSY led the gains among the major S&P 500 .SPX sector indexes.
At 11:52 a.m. ET, the Dow Jones Industrial Average .DJI was up 241.58 points, or 0.73%, at 33,377.95, the S&P 500 .SPX was up 44.63 points, or 1.17%, at 3,868.77, and the Nasdaq Composite .IXIC was up 117.59 points, or 1.13%, at 10,504.58.
Salesforce Inc CRM.N gained 3.4% on the enterprise software firm's workforce reduction plans.
Advancing issues outnumbered decliners for a 6.25-to-1 ratio on the NYSE and a 3.55-to-1 ratio on the Nasdaq.
The S&P index recorded two new 52-week highs and no new low, while the Nasdaq recorded 58 new highs and 39 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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FEDWATCH Apple Inc AAPL.O and Tesla Inc TSLA.O bounced back from a searing drop in the previous session and rose 2.3% and 5.0%, respectively. By Amruta Khandekar and Ankika Biswas Jan 4 (Reuters) - Wall Street's main indexes reversed early losses on Wednesday, as investors looked past a set of economic data, with focus squarely on the Federal Reserve's December meeting minutes for clues on the outlook for interest rates. The minutes could show the central bank's internal deliberations entering a new phase where risks to economic growth and employment are given more standing, while curbing high inflation remains the top priority.
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FEDWATCH Apple Inc AAPL.O and Tesla Inc TSLA.O bounced back from a searing drop in the previous session and rose 2.3% and 5.0%, respectively. Minneapolis Fed President Neel Kashkari on Wednesday stressed the need for continued rate hikes, setting out his own forecast that the policy rate should initially pause at 5.4%. U.S. equities were pummeled in 2022 on worries of a recession due to aggressive monetary policy tightening, with the three main stock indexes logging their steepest annual losses since 2008.
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FEDWATCH Apple Inc AAPL.O and Tesla Inc TSLA.O bounced back from a searing drop in the previous session and rose 2.3% and 5.0%, respectively. By Amruta Khandekar and Ankika Biswas Jan 4 (Reuters) - Wall Street's main indexes reversed early losses on Wednesday, as investors looked past a set of economic data, with focus squarely on the Federal Reserve's December meeting minutes for clues on the outlook for interest rates. Minutes from the Fed's previous meeting, when it raised interest rates by half a percentage point and cautioned rates may need to remain higher for longer, are due at 2 p.m.
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FEDWATCH Apple Inc AAPL.O and Tesla Inc TSLA.O bounced back from a searing drop in the previous session and rose 2.3% and 5.0%, respectively. By Amruta Khandekar and Ankika Biswas Jan 4 (Reuters) - Wall Street's main indexes reversed early losses on Wednesday, as investors looked past a set of economic data, with focus squarely on the Federal Reserve's December meeting minutes for clues on the outlook for interest rates. Minutes from the Fed's previous meeting, when it raised interest rates by half a percentage point and cautioned rates may need to remain higher for longer, are due at 2 p.m.
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17737.0
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2023-01-04 00:00:00 UTC
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After Hours Most Active for Jan 4, 2023 : VNO, RXO, GEHC, KGC, VALE, AAPL, CMCSA, AMZN, CSCO, INTC, WFC, PCG
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-jan-4-2023-%3A-vno-rxo-gehc-kgc-vale-aapl-cmcsa-amzn-csco-intc
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -12.37 to 10,902.43. The total After hours volume is currently 94,370,861 shares traded.
The following are the most active stocks for the after hours session:
Vornado Realty Trust (VNO) is +0.07 at $21.30, with 29,824,833 shares traded. VNO's current last sale is 86.94% of the target price of $24.5.
RXO, Inc. (RXO) is unchanged at $17.00, with 14,953,488 shares traded. RXO's current last sale is 82.93% of the target price of $20.5.
GE HealthCare Technologies Inc. (GEHC) is -0.23 at $60.26, with 8,314,780 shares traded.
Kinross Gold Corporation (KGC) is +0.01 at $4.54, with 3,486,613 shares traded. As reported by Zacks, the current mean recommendation for KGC is in the "buy range".
VALE S.A. (VALE) is unchanged at $16.55, with 3,211,617 shares traded. As reported by Zacks, the current mean recommendation for VALE is in the "buy range".
Apple Inc. (AAPL) is -0.1 at $126.26, with 2,532,942 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Comcast Corporation (CMCSA) is +0.14 at $36.73, with 2,508,199 shares traded. CMCSA's current last sale is 82.54% of the target price of $44.5.
Amazon.com, Inc. (AMZN) is -0.0892 at $85.05, with 2,285,334 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Cisco Systems, Inc. (CSCO) is +0.04 at $47.59, with 2,065,875 shares traded. CSCO's current last sale is 91.52% of the target price of $52.
Intel Corporation (INTC) is +0.03 at $27.71, with 2,058,693 shares traded. INTC's current last sale is 92.37% of the target price of $30.
Wells Fargo & Company (WFC) is unchanged at $42.65, with 1,807,375 shares traded. As reported by Zacks, the current mean recommendation for WFC is in the "buy range".
Pacific Gas & Electric Co. (PCG) is +0.03 at $15.91, with 1,691,745 shares traded. PCG's current last sale is 88.39% of the target price of $18.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.1 at $126.26, with 2,532,942 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -0.1 at $126.26, with 2,532,942 shares traded. As reported by Zacks, the current mean recommendation for KGC is in the "buy range".
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Apple Inc. (AAPL) is -0.1 at $126.26, with 2,532,942 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 94,370,861 shares traded.
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Apple Inc. (AAPL) is -0.1 at $126.26, with 2,532,942 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 -12.37 to 10,902.43.
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17738.0
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2023-01-04 00:00:00 UTC
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Why PayPal Stock Rallied on Wednesday
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AAPL
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https://www.nasdaq.com/articles/why-paypal-stock-rallied-on-wednesday
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nan
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nan
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What happened
Shares of PayPal (NASDAQ: PYPL) were decidedly positive on Monday, jumping as much as 4.8%. As of 12:20 p.m. ET, the stock is still up 4.5%.
While the broad market move higher no doubt added to its momentum, the catalyst that sent the fintech pioneer higher was positive analyst commentary.
So what
Mizuho analyst Dan Dolev has been crunching the data measuring web traffic between PayPal and the company's major U.S. merchants. He concludes that trends have stabilized over the past several months, suggesting that the company's growth may have turned the corner. Dolev notes the evidence is particularly pronounced with regard to mobile web traffic, an area where PayPal is most susceptible to competition from Apple Pay, which makes it easy to complete an online transaction on the iPhone.
Dolev reviewed checkout information from PayPal's largest merchant partners, including Etsy, Home Depot, and Nike. The data reveals that PayPal's market share of the payment transactions has leveled off in recent months after consistent declines in 2021 and early 2022. "While this is only one perspective," Dolev wrote, "we believe it could help improve sentiment."
The analyst maintained his buy rating and $105 price target on PayPal, which suggests potential gains for investors of 41% compared to Tuesday's closing price.
Now what
PayPal's stock has been in free fall for much of the past year, driven lower by slowing account growth, the bear market, and tough comps to lockdown-induced gains. Yet this negative sentiment appears to have gone too far, creating an opportunity for long-term investors.
The company is well entrenched in the digital payments space, with more than 432 million active accounts -- including 35 million active merchant accounts. Furthermore, other factors including an uncertain economy, foreign currency headwinds, and its highly publicized untangling from eBay have taken a toll -- but each of these issues is temporary.
Finally, at just roughly 2.5 times next year's sales, PayPal is sporting the lowest price-to-sales ratio in the company's history. The stock could still go lower, but this seems like a buying opportunity to me.
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
Danny Vena has positions in Apple, Etsy, and PayPal and has the following options: long January 2024 $95 calls on PayPal. The Motley Fool has positions in and recommends Apple, Etsy, Home Depot, Nike, and PayPal. The Motley Fool recommends eBay and recommends the following options: long January 2025 $47.50 calls on Nike, long March 2023 $120 calls on Apple, short January 2023 $45 calls on eBay, 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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Dolev notes the evidence is particularly pronounced with regard to mobile web traffic, an area where PayPal is most susceptible to competition from Apple Pay, which makes it easy to complete an online transaction on the iPhone. Now what PayPal's stock has been in free fall for much of the past year, driven lower by slowing account growth, the bear market, and tough comps to lockdown-induced gains. Furthermore, other factors including an uncertain economy, foreign currency headwinds, and its highly publicized untangling from eBay have taken a toll -- but each of these issues is temporary.
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The company is well entrenched in the digital payments space, with more than 432 million active accounts -- including 35 million active merchant accounts. The Motley Fool has positions in and recommends Apple, Etsy, Home Depot, Nike, and PayPal. The Motley Fool recommends eBay and recommends the following options: long January 2025 $47.50 calls on Nike, long March 2023 $120 calls on Apple, short January 2023 $45 calls on eBay, and short March 2023 $130 calls on Apple.
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10 stocks we like better than PayPal When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Danny Vena has positions in Apple, Etsy, and PayPal and has the following options: long January 2024 $95 calls on PayPal. The Motley Fool recommends eBay and recommends the following options: long January 2025 $47.50 calls on Nike, long March 2023 $120 calls on Apple, short January 2023 $45 calls on eBay, and short March 2023 $130 calls on Apple.
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ET, the stock is still up 4.5%. * They just revealed what they believe are the ten best stocks for investors to buy right now... and PayPal wasn't one of them! The Motley Fool has positions in and recommends Apple, Etsy, Home Depot, Nike, and PayPal.
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17739.0
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2023-01-04 00:00:00 UTC
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US STOCKS-Wall St subdued as signs of tight labor market fuel rate hike fears
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-subdued-as-signs-of-tight-labor-market-fuel-rate-hike-fears
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nan
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nan
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By Shubham Batra and Amruta Khandekar
Jan 4 (Reuters) - Wall Street's main indexes were subdued on Wednesday as data showed U.S. job openings fell less than expected, fuelling investor anxiety about interest rate hikes ahead of the Federal Reserve's December meeting minutes.
A survey from the Labor Department showed job openings fell 54,000 to 10.458 million on the last day of November, compared with expectations of 10 million job openings.
The data indicated a still tight labor market that could give the Fed cover to keep rates higher for longer.
Meanwhile, Apple Inc AAPL.O rose 0.6%, while electric-vehicle maker Tesla Inc TSLA.O jumped 2.3%, with both the shares recovering from a searing drop in the previous session.
The gains eased some of the pressure on the benchmark S&P 500 index .SPX.
Microsoft Corp MSFT.O dropped 5.2% following a downgrade by brokerage UBS on worries over slowing growth for its cloud services and Office suite.
Consumer discretionary stocks .SPLRCD rose 0.3%, while the tech sector .SPLRCT fell 0.4%.
A separate report showed U.S. manufacturing contracted further in December. The Institute for Supply Management (ISM) said its manufacturing PMI dropped to 48.4 last month from 49.0 in November, contracting for a second straight month.
Minutes from the Fed's previous meeting, when it raised interest rates by half a percentage point and cautioned rates may need to remain higher for longer, are due to be released at 2 p.m. ET (1900 GMT).
The Fed minutes could show the central bank's internal deliberations entering a new phase where risks to economic growth and employment are given more standing, while curbing high inflation remains the top priority.
U.S. equities were pummeled in 2022 on worries of a recession due to aggressive monetary policy tightening, with the three main stock indexes logging their steepest annual losses since 2008.
"It's a new year, but we're stuck with the same macro conditions, which are still pretty discouraging," said Dave Grecsek, managing director in investment strategy and research at Aspiriant.
"Two things that are really going to drive near-term market returns - whether Fed is going to stick to its word and be as firm with inflation and policy rates and whether the U.S. and the European economies enter recession."
Market participants see a 68% chance of a 25-basis point rate hike from the Fed in February, and see rates peaking at 4.99% by June. FEDWATCH
At 10:28 a.m. ET, the Dow Jones Industrial Average .DJI was down 37.17 points, or 0.11%, at 33,099.20, the S&P 500 .SPX was up 0.44 points, or 0.01%, at 3,824.58, and the Nasdaq Composite .IXIC was down 26.38 points, or 0.25%, at 10,360.61.
Salesforce Inc CRM.N gained 2.8% on the enterprise software firm's workforce reduction plans.
Advancing issues outnumbered decliners by a 3.53-to-1 ratio on the NYSE and by a 2.18-to-1 ratio on the Nasdaq.
The S&P index recorded 2 new 52-week highs and no new lows, while the Nasdaq recorded 55 new highs and 31 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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Meanwhile, Apple Inc AAPL.O rose 0.6%, while electric-vehicle maker Tesla Inc TSLA.O jumped 2.3%, with both the shares recovering from a searing drop in the previous session. By Shubham Batra and Amruta Khandekar Jan 4 (Reuters) - Wall Street's main indexes were subdued on Wednesday as data showed U.S. job openings fell less than expected, fuelling investor anxiety about interest rate hikes ahead of the Federal Reserve's December meeting minutes. The Fed minutes could show the central bank's internal deliberations entering a new phase where risks to economic growth and employment are given more standing, while curbing high inflation remains the top priority.
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Meanwhile, Apple Inc AAPL.O rose 0.6%, while electric-vehicle maker Tesla Inc TSLA.O jumped 2.3%, with both the shares recovering from a searing drop in the previous session. By Shubham Batra and Amruta Khandekar Jan 4 (Reuters) - Wall Street's main indexes were subdued on Wednesday as data showed U.S. job openings fell less than expected, fuelling investor anxiety about interest rate hikes ahead of the Federal Reserve's December meeting minutes. A survey from the Labor Department showed job openings fell 54,000 to 10.458 million on the last day of November, compared with expectations of 10 million job openings.
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Meanwhile, Apple Inc AAPL.O rose 0.6%, while electric-vehicle maker Tesla Inc TSLA.O jumped 2.3%, with both the shares recovering from a searing drop in the previous session. By Shubham Batra and Amruta Khandekar Jan 4 (Reuters) - Wall Street's main indexes were subdued on Wednesday as data showed U.S. job openings fell less than expected, fuelling investor anxiety about interest rate hikes ahead of the Federal Reserve's December meeting minutes. Minutes from the Fed's previous meeting, when it raised interest rates by half a percentage point and cautioned rates may need to remain higher for longer, are due to be released at 2 p.m.
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Meanwhile, Apple Inc AAPL.O rose 0.6%, while electric-vehicle maker Tesla Inc TSLA.O jumped 2.3%, with both the shares recovering from a searing drop in the previous session. By Shubham Batra and Amruta Khandekar Jan 4 (Reuters) - Wall Street's main indexes were subdued on Wednesday as data showed U.S. job openings fell less than expected, fuelling investor anxiety about interest rate hikes ahead of the Federal Reserve's December meeting minutes. Minutes from the Fed's previous meeting, when it raised interest rates by half a percentage point and cautioned rates may need to remain higher for longer, are due to be released at 2 p.m.
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17740.0
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2023-01-04 00:00:00 UTC
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Interesting AAPL Put And Call Options For August 18th
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AAPL
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https://www.nasdaq.com/articles/interesting-aapl-put-and-call-options-for-august-18th
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nan
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nan
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Investors in Apple Inc (Symbol: AAPL) saw new options become available today, for the August 18th expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 226 days until expiration the newly available contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAPL options chain for the new August 18th contracts and identified one put and one call contract of particular interest.
The put contract at the $125.00 strike price has a current bid of $11.60. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $125.00, but will also collect the premium, putting the cost basis of the shares at $113.40 (before broker commissions). To an investor already interested in purchasing shares of AAPL, that could represent an attractive alternative to paying $126.78/share today.
Because the $125.00 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 9.28% return on the cash commitment, or 14.99% 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 $125.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $130.00 strike price has a current bid of $13.85. If an investor was to purchase shares of AAPL stock at the current price level of $126.78/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $130.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 13.46% if the stock gets called away at the August 18th 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 $130.00 strike highlighted in red:
Considering the fact that the $130.00 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 10.92% boost of extra return to the investor, or 17.65% 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 $126.78) 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:
Preferred Stock List
CBFV Insider Buying
NWN market cap history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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 $130.00 strike highlighted in red: Considering the fact that the $130.00 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 become available today, for the August 18th expiration.
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Below is a chart showing AAPL's trailing twelve month trading history, with the $130.00 strike highlighted in red: Considering the fact that the $130.00 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 become available today, for the August 18th expiration.
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Below is a chart showing AAPL's trailing twelve month trading history, with the $130.00 strike highlighted in red: Considering the fact that the $130.00 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 become available today, for the August 18th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAPL options chain for the new August 18th 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 August 18th 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 $130.00 strike highlighted in red: Considering the fact that the $130.00 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 become available today, for the August 18th expiration.
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17741.0
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2023-01-04 00:00:00 UTC
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Apple to sign Luxshare for iPhone production in China - FT
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AAPL
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https://www.nasdaq.com/articles/apple-to-sign-luxshare-for-iphone-production-in-china-ft
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nan
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nan
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Jan 4 (Reuters) - Apple Inc AAPL.O is set to sign up Chinese contract manufacturer Luxshare Precision Industry Co Ltd 002475.SZ to produce premium iPhone models, the Financial Times reported on Wednesday, citing sources familiar with the matter.
The iPhone maker and Luxshare did not immediately respond to Reuters requests for comment.
(Reporting by Akash Sriram in Bengaluru; Editing by Shailesh Kuber)
((Akash.Sriram@thomsonreuters.com; https://twitter.com/hoodieonveshti;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Jan 4 (Reuters) - Apple Inc AAPL.O is set to sign up Chinese contract manufacturer Luxshare Precision Industry Co Ltd 002475.SZ to produce premium iPhone models, the Financial Times reported on Wednesday, citing sources familiar with the matter. The iPhone maker and Luxshare did not immediately respond to Reuters requests for comment. (Reporting by Akash Sriram in Bengaluru; Editing by Shailesh Kuber) ((Akash.Sriram@thomsonreuters.com; https://twitter.com/hoodieonveshti;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Jan 4 (Reuters) - Apple Inc AAPL.O is set to sign up Chinese contract manufacturer Luxshare Precision Industry Co Ltd 002475.SZ to produce premium iPhone models, the Financial Times reported on Wednesday, citing sources familiar with the matter. The iPhone maker and Luxshare did not immediately respond to Reuters requests for comment. (Reporting by Akash Sriram in Bengaluru; Editing by Shailesh Kuber) ((Akash.Sriram@thomsonreuters.com; https://twitter.com/hoodieonveshti;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Jan 4 (Reuters) - Apple Inc AAPL.O is set to sign up Chinese contract manufacturer Luxshare Precision Industry Co Ltd 002475.SZ to produce premium iPhone models, the Financial Times reported on Wednesday, citing sources familiar with the matter. The iPhone maker and Luxshare did not immediately respond to Reuters requests for comment. (Reporting by Akash Sriram in Bengaluru; Editing by Shailesh Kuber) ((Akash.Sriram@thomsonreuters.com; https://twitter.com/hoodieonveshti;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Jan 4 (Reuters) - Apple Inc AAPL.O is set to sign up Chinese contract manufacturer Luxshare Precision Industry Co Ltd 002475.SZ to produce premium iPhone models, the Financial Times reported on Wednesday, citing sources familiar with the matter. The iPhone maker and Luxshare did not immediately respond to Reuters requests for comment. (Reporting by Akash Sriram in Bengaluru; Editing by Shailesh Kuber) ((Akash.Sriram@thomsonreuters.com; https://twitter.com/hoodieonveshti;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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17742.0
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2023-01-04 00:00:00 UTC
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We Are Cutting Our Price Estimate For Tesla, But Remain Positive On The Stock
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AAPL
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https://www.nasdaq.com/articles/we-are-cutting-our-price-estimate-for-tesla-but-remain-positive-on-the-stock
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nan
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nan
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We are reducing our price estimate for Tesla (NASDAQ:TSLA) from $272 per share to about $217 per share. Now, Tesla’s execution has actually been solid this year, with earnings per share poised to almost double year-over-year, despite supply chain challenges. That said, there are multiple headwinds for the stock at present. For one, the demand picture is increasingly challenging. Tesla has slashed prices on its Model 3 and Y vehicles in the U.S. by $7,500 until the end of this year. Tesla has also resorted to discounts in China, and there are reports that the company is reducing its production schedule at its Shanghai plant for January. Price cuts of this magnitude (well over 10% of the vehicle’s sticker price) signal that demand for the company’s EVs is cooling off, meaning that Elon Musk’s forecast of 50% delivery growth over a multi-year period – a key assumption of many Tesla valuation models – looks uncertain. Separately, Elon Musk’s recent acquisition of Twitter also has big implications. Although Mr. Musk purchased the social media company in his personal capacity, the deal is clearly becoming a distraction, reducing his focus on the EV major. Although Mr. Musk has indicated that he would move away from his role as Twitter CEO, we do not think this will happen, given the sizable financial commitments he has made in the Twitter deal.
However, even post our price revision, our Tesla price estimate still remains considerably ahead of the current market price of $122. We continue to believe that Tesla will remain a big beneficiary of the long-term transition to electric vehicles given its well-oiled supply chain, superior electric drivetrains, and its lead with software and self-driving technology. Production capacity has traditionally been a big bottleneck for Tesla and the company has been addressing this, with new factories in Texas and Berlin coming online and ramping up capacity. Tesla is also slated to bolster its model lineup. The Cybertruck pickup truck is likely to go into production in the coming year, while deliveries of the semi-truck recently started. Tesla’s margins are also among the highest in the auto industry and this should enable the company to be solidly profitable as sales improve further. At the current market price of $122 per share, Tesla trades at a mere 22x forward earnings, which we believe is very reasonable considering Tesla’s growth rates (the consensus analyst average is over 35% revenue growth rate for 2023). See our analysis on Tesla Valuation: Is TSLA Stock Expensive Or Cheap? for more details on Tesla’s valuation and how it compares with peers. For more information on Tesla’s business model and revenue trends, check out our dashboard on Tesla Revenue: How TSLA Makes Money.
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 Dec 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
TSLA Return -37% -65% 754%
S&P 500 Return -6% -19% 72%
Trefis Multi-Strategy Portfolio -8% -24% 206%
[1] Month-to-date and year-to-date as of 12/29/2022
[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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Now, Tesla’s execution has actually been solid this year, with earnings per share poised to almost double year-over-year, despite supply chain challenges. Tesla has also resorted to discounts in China, and there are reports that the company is reducing its production schedule at its Shanghai plant for January. Although Mr. Musk purchased the social media company in his personal capacity, the deal is clearly becoming a distraction, reducing his focus on the EV major.
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We are reducing our price estimate for Tesla (NASDAQ:TSLA) from $272 per share to about $217 per share. At the current market price of $122 per share, Tesla trades at a mere 22x forward earnings, which we believe is very reasonable considering Tesla’s growth rates (the consensus analyst average is over 35% revenue growth rate for 2023). Total [2] TSLA Return -37% -65% 754% S&P 500 Return -6% -19% 72% Trefis Multi-Strategy Portfolio -8% -24% 206% [1] Month-to-date and year-to-date as of 12/29/2022 [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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Price cuts of this magnitude (well over 10% of the vehicle’s sticker price) signal that demand for the company’s EVs is cooling off, meaning that Elon Musk’s forecast of 50% delivery growth over a multi-year period – a key assumption of many Tesla valuation models – looks uncertain. At the current market price of $122 per share, Tesla trades at a mere 22x forward earnings, which we believe is very reasonable considering Tesla’s growth rates (the consensus analyst average is over 35% revenue growth rate for 2023). Total [2] TSLA Return -37% -65% 754% S&P 500 Return -6% -19% 72% Trefis Multi-Strategy Portfolio -8% -24% 206% [1] Month-to-date and year-to-date as of 12/29/2022 [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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Now, Tesla’s execution has actually been solid this year, with earnings per share poised to almost double year-over-year, despite supply chain challenges. Tesla has slashed prices on its Model 3 and Y vehicles in the U.S. by $7,500 until the end of this year. Total [2] TSLA Return -37% -65% 754% S&P 500 Return -6% -19% 72% Trefis Multi-Strategy Portfolio -8% -24% 206% [1] Month-to-date and year-to-date as of 12/29/2022 [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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17743.0
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2023-01-04 00:00:00 UTC
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Stock Market News for Jan 4, 2023
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-jan-4-2023
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nan
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Wall Street closed slightly lower on Tuesday, having traded in green earlier in the day. The technology and consumer discretionary sectors were a major drag on the broader market, with two mega-cap giants slipping on fourth-quarter performance and outlook. Energy prices went down with demand weakening in China. All three major indexes ended in the red.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) remained virtually flat, falling 10.88 points to close at 33,136.37. Eleven components of the 30-stock index ended in positive territory, one remained unchanged, while 18 ended in negative.
The S&P 500 lost 0.4% or 15.36 points to close at 3,824.14. Six of the 11 broad sectors of the benchmark index ended in negative territory. The Energy Select Sector SPDR (XLE), the Technology Select Sector SPDR (XLK) and the Consumer Discretionary Select Sector SPDR (XLY) went down 3.5%, 1% and 0.6%, respectively, while the Communication Services Select Sector SPDR (XLC) progressed 1.3%.
The tech-heavy Nasdaq dipped 0.8% or 79.50 points to finish at 10,386.99.
The fear-gauge CBOE Volatility Index (VIX) increased 5.7% to 22.90. A total of 10.6 billion shares were traded on Tuesday, lower than the last 20-session average of 10.8 billion. Advancers outnumbered decliners on the NYSE by a 1.42-to-1 ratio. On Nasdaq, a 1.20-to-1 ratio favored advancing issues.
Apple and Tesla Weigh on the Market
After the pre-markets opened in the green, business on Wall Street was pulled down by shares of Tesla, Inc. TSLA and Apple Inc. AAPL performing badly. Both mega-cap companies weighed on the broader market and continued to follow the trend from 2022 when large-cap growth stocks were hit hard by the Fed raising interest rates.
Apple shares declined 3.74% and hit their lowest level since June 2021. This massive drop happened due to reports that it will cut production on weak demand as purchasing power wanes. Also, production cuts in a covid-ravaged China were a major concern. Apple became a significant drag on the technology sector as it became one of the worst-hit sectors of the day.
An even bigger drag was Tesla, which fell 12.24%, hitting its lowest level since August 2020, following disappointing fourth-quarter deliveries. The company said that its deliveries were hit by ongoing logistical issues and growing demand concerns. Tesla, which is still the world’s most valuable carmaker even after shedding 65% of its value last year, continues to be on its tumultuous journey and became the single biggest drag on the consumer discretionaries sector at the very offset of a new year.
This bleak sentiment may continue in 2023 as the Fed seems poised to continue to hike rates in the coming months, stoking fears that the U.S. economy may fall into a recession. Apprehensive investors keenly await the minutes of the Fed December meeting to gauge the central bank’s mood.
Energy Prices Slide on Weak Demand From China
Oil prices dropped 4% in volatile trade on Tuesday as reports emerged on demand weakening in China, the world’s largest oil importer. The Energy Select Sector SPDR (XLE) slid 3.5% on the first day of the new year after a blockbuster 2022. Brent crude fell $3.81, or 4.4%, to settle at $82.10/barrel, the largest single daily decline in more than three months. WTI crude fell $3.33 to settle at $76.93/barrel, a 4.1% loss, its biggest fall over a month. Both benchmarks had risen $1 a barrel early in the session before reversing course.
Consequently, shares of ConocoPhillips COP and Exxon Mobil Corporation XOM fell 4.1% and 3.4%, respectively. Both carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
The U.S. Census Bureau reported that Construction spending for November 2022 increased 0.2% from October. The October numbers were revised up to a 0.2% fall from a previously reported 0.3% fall.
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
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
ConocoPhillips (COP) : 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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Apple and Tesla Weigh on the Market After the pre-markets opened in the green, business on Wall Street was pulled down by shares of Tesla, Inc. TSLA and Apple Inc. AAPL performing badly. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report ConocoPhillips (COP) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here. The technology and consumer discretionary sectors were a major drag on the broader market, with two mega-cap giants slipping on fourth-quarter performance and outlook.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report ConocoPhillips (COP) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple and Tesla Weigh on the Market After the pre-markets opened in the green, business on Wall Street was pulled down by shares of Tesla, Inc. TSLA and Apple Inc. AAPL performing badly. The Energy Select Sector SPDR (XLE), the Technology Select Sector SPDR (XLK) and the Consumer Discretionary Select Sector SPDR (XLY) went down 3.5%, 1% and 0.6%, respectively, while the Communication Services Select Sector SPDR (XLC) progressed 1.3%.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report ConocoPhillips (COP) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple and Tesla Weigh on the Market After the pre-markets opened in the green, business on Wall Street was pulled down by shares of Tesla, Inc. TSLA and Apple Inc. AAPL performing badly. The Energy Select Sector SPDR (XLE), the Technology Select Sector SPDR (XLK) and the Consumer Discretionary Select Sector SPDR (XLY) went down 3.5%, 1% and 0.6%, respectively, while the Communication Services Select Sector SPDR (XLC) progressed 1.3%.
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Apple and Tesla Weigh on the Market After the pre-markets opened in the green, business on Wall Street was pulled down by shares of Tesla, Inc. TSLA and Apple Inc. AAPL performing badly. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report ConocoPhillips (COP) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on Zacks.com click here. The technology and consumer discretionary sectors were a major drag on the broader market, with two mega-cap giants slipping on fourth-quarter performance and outlook.
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17744.0
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2023-01-04 00:00:00 UTC
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Should SPDR MSCI USA StrategicFactors ETF (QUS) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-spdr-msci-usa-strategicfactors-etf-qus-be-on-your-investing-radar-5
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nan
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Launched on 04/15/2015, the SPDR MSCI USA StrategicFactors ETF (QUS) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $898.54 million, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
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 0.15%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.68%.
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 25.60% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 3.33% of total assets, followed by Microsoft Corporation (MSFT) and Unitedhealth Group Incorporated (UNH).
The top 10 holdings account for about 18.26% of total assets under management.
Performance and Risk
QUS seeks to match the performance of the MSCI USA Factor Mix A-Series Index before fees and expenses. The MSCI USA Factor Mix A-Series Index measures the equity market performance of large and mid-cap companies across the U.S. equity market. It aims to represent the performance of a combination of three factors: value, quality, and low volatility.
The ETF has lost about -0.05% so far this year and is down about -14.17% in the last one year (as of 01/04/2023). In the past 52-week period, it has traded between $101.25 and $129.03.
The ETF has a beta of 0.91 and standard deviation of 24.01% for the trailing three-year period, making it a medium risk choice in the space. With about 630 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR MSCI USA StrategicFactors 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, QUS is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $288.52 billion in assets, SPDR S&P 500 ETF has $357.30 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they 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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SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 3.33% of total assets, followed by Microsoft Corporation (MSFT) and Unitedhealth Group Incorporated (UNH). Click to get this free report SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Launched on 04/15/2015, the SPDR MSCI USA StrategicFactors ETF (QUS) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 3.33% of total assets, followed by Microsoft Corporation (MSFT) and Unitedhealth Group Incorporated (UNH). Click to get this free report SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. The MSCI USA Factor Mix A-Series Index measures the equity market performance of large and mid-cap companies across the U.S. equity market.
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Click to get this free report SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 3.33% of total assets, followed by Microsoft Corporation (MSFT) and Unitedhealth Group Incorporated (UNH). Alternatives SPDR MSCI USA StrategicFactors ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Click to get this free report SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 3.33% of total assets, followed by Microsoft Corporation (MSFT) and Unitedhealth Group Incorporated (UNH). Launched on 04/15/2015, the SPDR MSCI USA StrategicFactors ETF (QUS) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
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17745.0
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2023-01-04 00:00:00 UTC
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Investors Should Consider This Warren Buffett Advice in 2023
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AAPL
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https://www.nasdaq.com/articles/investors-should-consider-this-warren-buffett-advice-in-2023
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nan
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nan
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When stock prices are falling, the temptation is to think that they'll only continue to go lower. It's just as irrational as when investors think that stock prices can only go up, as many investors felt in early 2021. But fears of a worsening stock market and economy are a big reason why many quality stocks are struggling, or aren't trading at better valuations.
Billionaire investor Warren Buffett doesn't concern himself with outlooks and forecasts as he is confident that valuations will rise in the long term. Over the years, he has offered some valuable advice that can help guide investors' actions at a challenging time like this one.
Don't wait too long to invest
A big danger for investors is trying to time the market, or predicting when a stock has reached a bottom before buying in. The reality is that you won't know a stock has hit a bottom until after it has recovered. The greater risk is waiting too long and seeing the stock rally, and then potentially become too expensive to buy.
Buffett's advice is simple: "Don't pass up something that's attractive today because you think you will find something way more attractive tomorrow." By being too greedy, investors could end up missing the boat on a great buy.
Two Buffett stocks that look like good buys
The sell-off that has taken place in the markets over the last year has made many stocks more attractive buys, even ones that are relatively safe options.
One good example is tech giant and iPhone maker Apple (NASDAQ: AAPL), which is one of the billionaire investor's favorite stocks. Its shares fell 27% last year, performing worse than the S&P 500 (which declined 19%) amid a large-scale sell-off in the tech sector. At 21 times earnings, Apple's stock looks fairly cheap when compared to the average tech stock, which trades at a multiple of 24.
Its profits in its latest fiscal year (ended Sept. 24, 2022) totaled $99.8 billion, which represent one-quarter of the revenue the company has generated during that time -- $394.3 billion, which grew 8% year over year. The company's business continues to generate solid growth, and its service business has loads of potential to bring in even better numbers in the future. While it may be tempting to wait to see if Apple's stock falls lower, this is an example of a situation where investors may not want to wait too long before buying shares of a top company.
Buffett's Berkshire Hathaway doesn't normally have a large position in healthcare, but one healthcare stock it recently owned was mega drugmaker Bristol Myers Squibb (NYSE: BMY). Bristol Myers didn't have a bad year in 2022; its shares rose more than 15%. But at 23 times earnings, its valuation is still in line with that of the healthcare average.
Given the stock's penchant for acquisitions and continued growth, investors hoping for the share price of this stalwart to dip may be sorely disappointed. I'd argue that, given how robust the business is, it's worth more of a premium. The company has many top-selling products in its portfolio, including blood clot medication Eliquis, which has generated more than $9.1 billion in sales through the first nine months of 2022. During that same time frame, cancer drug Opdivo brought in another $6 billion in revenue.
In addition to strong fundamentals, Bristol Myers also pays an attractive dividend that yields 3.2%. The company announced last month that it would be increasing its dividend for the 14th consecutive year. If the stock continues climbing, that payout will shrink, giving investors yet another reason to buy shares of Bristol Myers sooner rather than later.
Take advantage when good stocks are at cheap prices
If a business is strong and the valuation is low, long-term investors should recognize the buying opportunity and jump on it while it's there. While Buffett is a bargain hunter, he isn't afraid of paying a fair price for a stock: "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."
10 stocks we like better than Bristol-Myers Squibb
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 Bristol-Myers Squibb 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
David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Bristol-Myers Squibb. 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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One good example is tech giant and iPhone maker Apple (NASDAQ: AAPL), which is one of the billionaire investor's favorite stocks. Don't wait too long to invest A big danger for investors is trying to time the market, or predicting when a stock has reached a bottom before buying in. Given the stock's penchant for acquisitions and continued growth, investors hoping for the share price of this stalwart to dip may be sorely disappointed.
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One good example is tech giant and iPhone maker Apple (NASDAQ: AAPL), which is one of the billionaire investor's favorite stocks. At 21 times earnings, Apple's stock looks fairly cheap when compared to the average tech stock, which trades at a multiple of 24. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Bristol-Myers Squibb.
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One good example is tech giant and iPhone maker Apple (NASDAQ: AAPL), which is one of the billionaire investor's favorite stocks. Two Buffett stocks that look like good buys The sell-off that has taken place in the markets over the last year has made many stocks more attractive buys, even ones that are relatively safe options. While Buffett is a bargain hunter, he isn't afraid of paying a fair price for a stock: "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."
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One good example is tech giant and iPhone maker Apple (NASDAQ: AAPL), which is one of the billionaire investor's favorite stocks. Its profits in its latest fiscal year (ended Sept. 24, 2022) totaled $99.8 billion, which represent one-quarter of the revenue the company has generated during that time -- $394.3 billion, which grew 8% year over year. That's right -- they think these 10 stocks are even better buys.
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17746.0
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2023-01-04 00:00:00 UTC
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4 Cheap Dividend Stocks to Buy Now
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AAPL
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https://www.nasdaq.com/articles/4-cheap-dividend-stocks-to-buy-now
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nan
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nan
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The stock market has thrown out a number of stocks with great cash flows and dividends in 2022, and investors who scoop them up can now generate cash flow for years to come. In the video below, Travis Hoium and Jon Quast discuss their favorites for this year.
*Stock prices used were end-of-day prices of Dec. 20, 2022. The video was published on Jan. 4, 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 December 1, 2022
Jon Quast has positions in Tractor Supply. Travis Hoium has positions in Apple and Verizon Communications. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends Tractor Supply and Verizon Communications and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. * They just revealed what they believe are the ten best stocks for investors to buy right now... and 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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In the video below, Travis Hoium and Jon Quast discuss their favorites for this year. Travis Hoium has positions in Apple and Verizon Communications. The Motley Fool recommends Tractor Supply and Verizon Communications and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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The stock market has thrown out a number of stocks with great cash flows and dividends in 2022, and investors who scoop them up can now generate cash flow for years to come. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Jon Quast has positions in Tractor Supply. The Motley Fool recommends Tractor Supply and Verizon Communications and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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See the 10 stocks *Stock Advisor returns as of December 1, 2022 Jon Quast has positions in Tractor Supply. Travis Hoium has positions in Apple and Verizon Communications. The Motley Fool has positions in and recommends Apple.
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17747.0
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2023-01-04 00:00:00 UTC
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Shopify's (SHOP) Commerce Components to Attract Merchants
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AAPL
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https://www.nasdaq.com/articles/shopifys-shop-commerce-components-to-attract-merchants
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Shopify SHOP recently announced the launch of its new solution — Commerce Components — which is a composable stack for enterprise retail. The solution will allow retailers to integrate the components of Shopify with their systems.
Shopify’s latest venture to create the Commerce Components platform will help address the issues faced by retailers, like changing customer demand and faster checkouts. Brands like Mattel MAT are one of the first customers of Shopify’s new solution.
The recently launched solution will aid Mattel to get access to 100 million existing Shop Pay customers, who have opted for Shopify’s one-click checkout.
Commerce Components will also provide a dedicated accounts team with solutions architects, prioritizing 24/7/365 specialized support. Shopify’s latest venture is targeted toward large retail enterprise businesses and will help boost its top-line growth.
Shopify Inc. Price and Consensus
Shopify Inc. price-consensus-chart | Shopify Inc. Quote
Shopify’s New Platform to Drive Prospects
Shopify’s e-commerce business boomed during the COVID-19 pandemic as global brands and small stores set up online platforms to sell products due to retail market closures. However, once the economy opened and retail stores started winning back their lost customers, SHOP lost its momentum. Inflation and possible signs of recession aggravated the current market scenario, which slowed growth in the e-commerce market.
Also, rising inflation surged operating expenses. In the third quarter, non-GAAP operating expenses soared 52.6% year over year to $845.9 million, inducing an adjusted operating loss of $45.1 million.
Shopify shares have returned 13.6% compared with the Zacks Internet Services industry’s decline of 16.5% in the past six months. However, Shopify has been investing heavily in research and development, and sales and marketing to create new platforms and forge strategic alliances with major tech companies to generate services and address the growing trends in the social media marketing space.
Shopify collaborated with companies like Apple’s AAPL iPhone tap-to-pay feature and major social media platforms like Meta Platforms’ META Facebook and Instagram.
The recent integration with Apple enables shoppers to use Apple smartphones at the terminal to pay for goods. While this may not be a new feature in retail, Apple’s recent Pay Later installments added a whole new dimension to retail marketing.
Meta Platforms’ Facebook and Instagram are two of the most popular social media platforms among creators and users alike. Facebook’s short-format videos and reels on Instagram are enjoying increasing popularity among content creators who can create short content, while users spend more than 20% of their time on these social media platforms.
Integration with Meta Platforms will help Shopify address growing trends and help merchants promote and sell their products via Facebook or Instagram at a much more reasonable cost. While Shopify concentrates on building its platform as a support system for small retail entrepreneurs to set up online businesses, the launch of the Commerce Components platform will help attract large retail customers, driving its top line.
Although short-term growth prospects look bleak for SHOP amid the current market volatility, the recent solution launch and integration with major tech companies will help it generate new revenue sources in the long haul, impacting revenue growth positively. This will also add to its shareholder wealth.
Shopify currently 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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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Mattel, Inc. (MAT) : Free Stock Analysis Report
Shopify Inc. (SHOP) : Free Stock Analysis Report
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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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Shopify collaborated with companies like Apple’s AAPL iPhone tap-to-pay feature and major social media platforms like Meta Platforms’ META Facebook and Instagram. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Mattel, Inc. (MAT) : Free Stock Analysis Report Shopify Inc. (SHOP) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Shopify’s latest venture to create the Commerce Components platform will help address the issues faced by retailers, like changing customer demand and faster checkouts.
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Shopify collaborated with companies like Apple’s AAPL iPhone tap-to-pay feature and major social media platforms like Meta Platforms’ META Facebook and Instagram. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Mattel, Inc. (MAT) : Free Stock Analysis Report Shopify Inc. (SHOP) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. While Shopify concentrates on building its platform as a support system for small retail entrepreneurs to set up online businesses, the launch of the Commerce Components platform will help attract large retail customers, driving its top line.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Mattel, Inc. (MAT) : Free Stock Analysis Report Shopify Inc. (SHOP) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Shopify collaborated with companies like Apple’s AAPL iPhone tap-to-pay feature and major social media platforms like Meta Platforms’ META Facebook and Instagram. Shopify Inc. Price and Consensus Shopify Inc. price-consensus-chart | Shopify Inc. Quote Shopify’s New Platform to Drive Prospects Shopify’s e-commerce business boomed during the COVID-19 pandemic as global brands and small stores set up online platforms to sell products due to retail market closures.
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Shopify collaborated with companies like Apple’s AAPL iPhone tap-to-pay feature and major social media platforms like Meta Platforms’ META Facebook and Instagram. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Mattel, Inc. (MAT) : Free Stock Analysis Report Shopify Inc. (SHOP) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The solution will allow retailers to integrate the components of Shopify with their systems.
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17748.0
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2023-01-04 00:00:00 UTC
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Could the Dow Jones Keep Outperforming the Nasdaq Composite in 2023?
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AAPL
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https://www.nasdaq.com/articles/could-the-dow-jones-keep-outperforming-the-nasdaq-composite-in-2023
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It finally happened. The Dow Jones Industrial Average (DJINDICES: ^DJI) outperformed the Nasdaq Composite (NASDAQINDEX: ^IXIC) and the S&P 500 (SNPINDEX: ^GSPC) in 2022. It marked just the third time the Dow has outperformed the Nasdaq since 2008, and the first time since the year 2000 that the Dow beat the Nasdaq by at least a 20 percentage point margin.
The question now is whether the Dow will come out on top once again in 2023. And if so, what impact would that have on the stock market and your investment portfolio?
Data by YCharts.
Composition of the Dow versus the Nasdaq
The Dow is the oldest stock market index, but it has a major flaw -- it's price-weighted. That means the index weights are determined by stock price, not market cap.
By contrast, the S&P 500 and the Nasdaq Composite are market-cap weighted. That means the largest companies -- like Apple and Microsoft -- make up the biggest names in those indexes.
State Street Global Advisors operates the SPDR Dow Jones Industrial Average ETF Trust (NYSEMKT: DIA), the largest Dow exchange-traded fund (ETF). The ETF matches the weights of the Dow Jones Industrial Average. As of Dec. 30, 2022, the top 10 holdings were as follows:
COMPANY
WEIGHT
UnitedHealth Group
10.5%
Goldman Sachs Group
6.9%
Home Depot
6.3%
McDonald's
5.2%
Amgen
5.2%
Microsoft
4.8%
Caterpillar
4.8%
Honeywell International
4.3%
Visa Inc. Class A
4.1%
Boeing Company
3.8%
Total weight of top 10 holdings
55.9%
Data source: State Street Global Advisors.
The top 10 largest Dow stocks make up 55.9% of the index, and a big run-up in a stock's price (or a decline) can drastically change the dynamic of the Dow.
UnitedHealth stock is up about 135% in the last five years, a big move for a stodgy blue-chip dividend stock. The move has pole-vaulted UnitedHealth to the No. 1 holding, comprising over 10% of index weight.
Apple stock has done even better than UnitedHealth, up over 190% in the last five years. But because Apple completed a 4-for-1 stock split in Aug. 2020, it doesn't even crack the top 10 Dow holdings. If it hadn't completed the split, the stock price would be around $500 per share, just under UnitedHealth for the second-largest holding in the Dow.
The wonky structure of the Dow makes minor events like stock splits or the arbitrary nature of a stock's price meaningful.
Meanwhile, the top 10 components of the Nasdaq Composite make up 47.3% of the index with Apple, Microsoft, Amazon, and Alphabet making up 36.4% of the index.
COMPANY
WEIGHT
Apple
12.9%
Microsoft
10.1%
Amazon.com
6.7%
Tesla
4.8%
Alphabet Class C
3.4%
Alphabet Class A
3.3%
Meta Platforms
1.8%
NVIDIA
1.8%
PepsiCo
1.3%
Costco Wholesale
1.2%
Total weight of top 10 holdings
47.3%
Data source: Nasdaq. Data as of Sept. 30, 2022.
However, the other half or so of the index consists of over 3,600 companies, so there's a lot more diversity within the Nasdaq than the Dow.
It also may surprise investors that the Nasdaq is chock full of non-tech companies. For example, Amazon and Tesla are actually considered consumer-discretionary stocks, while Alphabet and Meta Platforms fall under the communications sector. Pepsi and Costco are both consumer staples. In some ways, the Nasdaq does a much better job representing the broader economy than the Dow.
Image source: Getty Images.
Valuation comparison
Risk-averse investors would do well to consider some top Dow stocks because of their reliability and track records for persevering through economic cycles. On the other hand, risk-tolerant investors may be better off sticking with higher-risk, potentially higher-reward growth stocks.
For everyone in between, it may be helpful to ask yourself: Do you think UnitedHealth, Goldman Sachs, Home Depot, and Amgen are going to outperform Apple, Microsoft, Alphabet, and Amazon over the next five-plus years? Or are investors just driving up the prices of safe stocks like UnitedHealth in the short term?
Valuation is also a concern. The largest component of the Dow, UnitedHealth, now trades at a price to earnings (P/E) ratio of 25.4, compared to its 10-year median of 20.4. Meanwhile, the largest component of the Nasdaq Composite -- Apple -- trades at a 20.5 P/E ratio, compared to its 10-year median of 17.1.
There are a few Dow stocks that are worth avoiding or even selling at this point. It's hard to justify UnitedHealth, Coca-Cola, and McDonald's having higher P/E ratios than Apple, Microsoft, and Alphabet, but they do. And that's a cause for concern if the Dow is going to beat the Nasdaq for much longer.
Why the Nasdaq will continue beating the Dow over the long term
The Dow could very well beat the Nasdaq again in 2023 if investors continue fleeing to safe, dividend-paying companies with moderate valuations instead of growth stocks (27 of the 30 Dow components pay dividends). But over time, it's hard to see the Dow coming out on top.
A lot of the wealth created over the last few decades has come from Nasdaq components. And many future growth trends are likely to benefit Nasdaq components too.
You could even argue the purpose of the Dow isn't even to beat the Nasdaq or S&P 500. Rather, the Dow is meant to act as a barometer of the old and new economy. And to its credit, it does a good job providing a safe haven for capital preservation and passive income. In contrast, the Nasdaq Composite is more focused on capital appreciation, and many components don't pay sizable dividends.
Ultimately, investors have to consider the weaker growth prospects for companies in the Dow relative to those in the Nasdaq, plus the inflated valuations of many major Dow components right now. Anyone who can tolerate a little more risk and who's looking to add to their investment portfolio is better off focusing on Nasdaq stocks with a few Dow names sprinkled in too.
10 stocks we like better than Spdr Dow Jones Industrial Average ETF Trust
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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. 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 $240 calls on Meta Platforms, 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 $250 calls on Meta Platforms, short January 2025 $310 calls on Tesla, and short March 2023 $110 calls on Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Costco Wholesale, Goldman Sachs Group, Home Depot, Meta Platforms, Microsoft, Nvidia, Tesla, and Visa. The Motley Fool recommends Amgen and UnitedHealth Group 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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Valuation comparison Risk-averse investors would do well to consider some top Dow stocks because of their reliability and track records for persevering through economic cycles. For everyone in between, it may be helpful to ask yourself: Do you think UnitedHealth, Goldman Sachs, Home Depot, and Amgen are going to outperform Apple, Microsoft, Alphabet, and Amazon over the next five-plus years? The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Costco Wholesale, Goldman Sachs Group, Home Depot, Meta Platforms, Microsoft, Nvidia, Tesla, and Visa.
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UnitedHealth Group 10.5% Goldman Sachs Group 6.9% Home Depot 6.3% McDonald's 5.2% Amgen 5.2% Microsoft 4.8% Caterpillar 4.8% Honeywell International 4.3% Visa Inc. Class A 4.1% Boeing Company 3.8% Total weight of top 10 holdings 55.9% Data source: State Street Global Advisors. 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 $240 calls on Meta Platforms, 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 $250 calls on Meta Platforms, short January 2025 $310 calls on Tesla, and short March 2023 $110 calls on Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Costco Wholesale, Goldman Sachs Group, Home Depot, Meta Platforms, Microsoft, Nvidia, Tesla, and Visa.
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The top 10 largest Dow stocks make up 55.9% of the index, and a big run-up in a stock's price (or a decline) can drastically change the dynamic of the Dow. Why the Nasdaq will continue beating the Dow over the long term The Dow could very well beat the Nasdaq again in 2023 if investors continue fleeing to safe, dividend-paying companies with moderate valuations instead of growth stocks (27 of the 30 Dow components pay dividends). 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 $240 calls on Meta Platforms, 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 $250 calls on Meta Platforms, short January 2025 $310 calls on Tesla, and short March 2023 $110 calls on Tesla.
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Meanwhile, the top 10 components of the Nasdaq Composite make up 47.3% of the index with Apple, Microsoft, Amazon, and Alphabet making up 36.4% of the index. 1.8% PepsiCo 1.3% Costco Wholesale 1.2% Total weight of top 10 holdings 47.3% Data source: Nasdaq. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Costco Wholesale, Goldman Sachs Group, Home Depot, Meta Platforms, Microsoft, Nvidia, Tesla, and Visa.
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17749.0
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2023-01-04 00:00:00 UTC
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US STOCKS-Wall St eyes higher open with focus on Fed minutes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-eyes-higher-open-with-focus-on-fed-minutes
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By Shubham Batra
Jan 4 (Reuters) - Wall Street's main indexes were set to open higher on Wednesday on hopes of an economic recovery in China, while focus was also on minutes from the Federal Reserve's December policy meeting for clues on the outlook for interest rate hikes.
Minutes from the Fed's previous meeting, when it raised interest rates by half a percentage point and cautioned rates may need to remain higher for longer, are due to be released at 2 p.m. ET (1900 GMT).
The minutes could show the U.S. central bank's internal deliberations entering a new phase where risks to economic growth and employment are given more standing, while curbing high inflation remains the top priority.
Meanwhile, U.S.-listed Chinese firms such as Alibaba Group Holding Ltd BABA.N, JD.com Inc JD.O and Baidu Inc BIDU.O jumped over 6% each in premarket trading on hopes of a post-COVID recovery in China and on talk of support for the country's housing sector.
Wall Street's main indexes saw a rocky start to 2023 on Tuesday, with the biggest drags being Tesla Inc TSLA.O after the electric-vehicle maker missed estimates on deliveries and Apple Inc AAPL.O that slumped following a rating downgrade.
The declines followed a hit to U.S. equities in 2022 on worries of a recession due to aggressive monetary policy tightening, with the three main stock indexes logging their steepest annual losses since 2008.
"It's a new year, but we're stuck with the same macro conditions, which are still pretty discouraging," said Dave Grecsek, managing director in investment strategy and research at Aspiriant.
"Two things that are really going to drive near-term market returns - whether Fed is going to stick to its word and be as firm with inflation and policy rates and whether the U.S. and the European economies enter recession."
Investors on Wednesday will also monitor job openings data from the U.S. Labor Department and ISM manufacturing data due at 10 a.m. ET to assess the strength of the economy.
Market participants see a 68.8% chance of a 25-basis point rate hike from the Fed in February, and see rates peaking at 4.95% by June. FEDWATCH
The more comprehensive non-farm payrolls report is due on Friday, with investors hoping to see signs of cooling in the labor market that could give the Fed reason to slow its monetary policy tightening.
At 8:24 a.m. ET, Dow e-minis 1YMcv1 were up 111 points, or 0.33%, S&P 500 e-minis EScv1 were up 20.75 points, or 0.54%, and Nasdaq 100 e-minis NQcv1 were up 98.25 points, or 0.9%.
Most rate-sensitive technology and other growth stocks such as Alphabet Inc GOOGL.O, Amazon.com Inc AMZN.O and Meta Platforms Inc META.O were up between 1.2% and 1.6%, helped by a decline in U.S. Treasury yields.
Bucking the trend, Microsoft Corp MSFT.O slipped 2.3% after UBS downgraded the company's shares to "neutral" from "buy".
Salesforce Inc CRM.N gained 3.9% on the enterprise software firm's workforce reduction plans.
(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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Wall Street's main indexes saw a rocky start to 2023 on Tuesday, with the biggest drags being Tesla Inc TSLA.O after the electric-vehicle maker missed estimates on deliveries and Apple Inc AAPL.O that slumped following a rating downgrade. By Shubham Batra Jan 4 (Reuters) - Wall Street's main indexes were set to open higher on Wednesday on hopes of an economic recovery in China, while focus was also on minutes from the Federal Reserve's December policy meeting for clues on the outlook for interest rate hikes. FEDWATCH The more comprehensive non-farm payrolls report is due on Friday, with investors hoping to see signs of cooling in the labor market that could give the Fed reason to slow its monetary policy tightening.
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Wall Street's main indexes saw a rocky start to 2023 on Tuesday, with the biggest drags being Tesla Inc TSLA.O after the electric-vehicle maker missed estimates on deliveries and Apple Inc AAPL.O that slumped following a rating downgrade. By Shubham Batra Jan 4 (Reuters) - Wall Street's main indexes were set to open higher on Wednesday on hopes of an economic recovery in China, while focus was also on minutes from the Federal Reserve's December policy meeting for clues on the outlook for interest rate hikes. The declines followed a hit to U.S. equities in 2022 on worries of a recession due to aggressive monetary policy tightening, with the three main stock indexes logging their steepest annual losses since 2008.
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Wall Street's main indexes saw a rocky start to 2023 on Tuesday, with the biggest drags being Tesla Inc TSLA.O after the electric-vehicle maker missed estimates on deliveries and Apple Inc AAPL.O that slumped following a rating downgrade. By Shubham Batra Jan 4 (Reuters) - Wall Street's main indexes were set to open higher on Wednesday on hopes of an economic recovery in China, while focus was also on minutes from the Federal Reserve's December policy meeting for clues on the outlook for interest rate hikes. Minutes from the Fed's previous meeting, when it raised interest rates by half a percentage point and cautioned rates may need to remain higher for longer, are due to be released at 2 p.m.
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Wall Street's main indexes saw a rocky start to 2023 on Tuesday, with the biggest drags being Tesla Inc TSLA.O after the electric-vehicle maker missed estimates on deliveries and Apple Inc AAPL.O that slumped following a rating downgrade. By Shubham Batra Jan 4 (Reuters) - Wall Street's main indexes were set to open higher on Wednesday on hopes of an economic recovery in China, while focus was also on minutes from the Federal Reserve's December policy meeting for clues on the outlook for interest rate hikes. The declines followed a hit to U.S. equities in 2022 on worries of a recession due to aggressive monetary policy tightening, with the three main stock indexes logging their steepest annual losses since 2008.
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17750.0
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2023-01-04 00:00:00 UTC
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US STOCKS-Futures edge higher ahead of Fed meeting minutes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-edge-higher-ahead-of-fed-meeting-minutes
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Futures up: Dow 0.20%, S&P 0.31%, Nasdaq 0.46%
Jan 4 (Reuters) - U.S. stock index futures edged higher on Wednesday as hopes of an economic recovery in China lifted sentiment, while focus was also on minutes from the Federal Reserve's December policy meeting for clues on the outlook for interest rate hikes.
Minutes from the Fed's previous meeting, when it raised interest rates by half a percentage point and cautioned rates may need to remain higher for longer, are due to be released at 2 p.m. ET (1900 GMT).
Meanwhile, U.S.-listed Chinese firms such as Alibaba Group Holding Ltd BABA.N, JD.com Inc JD.O and Baidu Inc BIDU.Ojumped more than 6% on hopes of a post-COVID recovery in China and on talk of support for the country's housing sector.
Wall Street's main indexes saw a rocky start to 2023 on Tuesday, with the biggest drags being Tesla Inc TSLA.O after the electric-vehicle maker missed estimates on deliveries and Apple Inc AAPL.O that slumped after a rating downgrade.
The declines followed a hit to U.S. equities in 2022 on worries of a recession due to aggressive monetary policy tightening, with the three main stock indexes logging their steepest annual losses since 2008.
Investors on Wednesday will also monitor job openings data from the U.S. Labor Department and ISM manufacturing data due at 10 a.m. ET to assess the strength of the U.S. economy.
"The minutes of the latest Fed meeting will be devoured later, in a search for clues about how much higher rates will go before policymakers consider pressing the pause button," said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.
Market participants see a 68.8% chance of a 25-basis point rate hike from the U.S. central bank in February, and see rates peaking at 4.95% by June. FEDWATCH.
The more comprehensive non-farm payrolls report is due on Friday, with investors hoping to see signs of cooling in the labor market that could give the Fed reason to slow its monetary policy tightening.
At 6:00 a.m. ET, Dow e-minis 1YMcv1 were up 65 points, or 0.2%, S&P 500 e-minis EScv1 were up 11.75 points, or 0.31%, and Nasdaq 100 e-minis NQcv1 were up 50.25 points, or 0.46%.
Microsoft Corp MSFT.O slipped 2.1% in premarket trading after UBS downgraded the company's shares to "neutral".
(Reporting by Shubham Batra and Amruta Khandekar 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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Wall Street's main indexes saw a rocky start to 2023 on Tuesday, with the biggest drags being Tesla Inc TSLA.O after the electric-vehicle maker missed estimates on deliveries and Apple Inc AAPL.O that slumped after a rating downgrade. "The minutes of the latest Fed meeting will be devoured later, in a search for clues about how much higher rates will go before policymakers consider pressing the pause button," said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown. The more comprehensive non-farm payrolls report is due on Friday, with investors hoping to see signs of cooling in the labor market that could give the Fed reason to slow its monetary policy tightening.
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Wall Street's main indexes saw a rocky start to 2023 on Tuesday, with the biggest drags being Tesla Inc TSLA.O after the electric-vehicle maker missed estimates on deliveries and Apple Inc AAPL.O that slumped after a rating downgrade. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Futures up: Dow 0.20%, S&P 0.31%, Nasdaq 0.46% Jan 4 (Reuters) - U.S. stock index futures edged higher on Wednesday as hopes of an economic recovery in China lifted sentiment, while focus was also on minutes from the Federal Reserve's December policy meeting for clues on the outlook for interest rate hikes. The declines followed a hit to U.S. equities in 2022 on worries of a recession due to aggressive monetary policy tightening, with the three main stock indexes logging their steepest annual losses since 2008.
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Wall Street's main indexes saw a rocky start to 2023 on Tuesday, with the biggest drags being Tesla Inc TSLA.O after the electric-vehicle maker missed estimates on deliveries and Apple Inc AAPL.O that slumped after a rating downgrade. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Futures up: Dow 0.20%, S&P 0.31%, Nasdaq 0.46% Jan 4 (Reuters) - U.S. stock index futures edged higher on Wednesday as hopes of an economic recovery in China lifted sentiment, while focus was also on minutes from the Federal Reserve's December policy meeting for clues on the outlook for interest rate hikes. Minutes from the Fed's previous meeting, when it raised interest rates by half a percentage point and cautioned rates may need to remain higher for longer, are due to be released at 2 p.m.
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Wall Street's main indexes saw a rocky start to 2023 on Tuesday, with the biggest drags being Tesla Inc TSLA.O after the electric-vehicle maker missed estimates on deliveries and Apple Inc AAPL.O that slumped after a rating downgrade. Minutes from the Fed's previous meeting, when it raised interest rates by half a percentage point and cautioned rates may need to remain higher for longer, are due to be released at 2 p.m. ET (1900 GMT).
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17751.0
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2023-01-04 00:00:00 UTC
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Should Schwab U.S. LargeCap ETF (SCHX) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-schwab-u.s.-largecap-etf-schx-be-on-your-investing-radar-5
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nan
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If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Schwab U.S. LargeCap ETF (SCHX), a passively managed exchange traded fund launched on 11/03/2009.
The fund is sponsored by Charles Schwab. It has amassed assets over $29.03 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
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 0.03%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.64%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 26.40% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.78% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 26.15% of total assets under management.
Performance and Risk
SCHX seeks to match the performance of the Dow Jones U.S. Large-Cap Total Stock Market Index before fees and expenses. The Dow Jones U.S. Large-Cap Total Stock Market measures all U.S. equity securities with readily available prices. The index includes approximately the largest 750 stocks and is float-adjusted market-capitalization weighted.
The ETF has lost about -0.47% so far this year and is down about -20.24% in the last one year (as of 01/04/2023). In the past 52-week period, it has traded between $42.25 and $56.29.
The ETF has a beta of 1.01 and standard deviation of 25.53% for the trailing three-year period, making it a medium risk choice in the space. With about 756 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab U.S. LargeCap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SCHX is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $288.52 billion in assets, SPDR S&P 500 ETF has $357.30 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Schwab U.S. LargeCap ETF (SCHX): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.78% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Schwab U.S. LargeCap ETF (SCHX): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Schwab U.S. LargeCap ETF (SCHX), a passively managed exchange traded fund launched on 11/03/2009.
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Click to get this free report Schwab U.S. LargeCap ETF (SCHX): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.78% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Schwab U.S. LargeCap ETF (SCHX), a passively managed exchange traded fund launched on 11/03/2009.
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Click to get this free report Schwab U.S. LargeCap ETF (SCHX): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.78% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives Schwab U.S. LargeCap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.78% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Schwab U.S. LargeCap ETF (SCHX): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Schwab U.S. LargeCap ETF (SCHX), a passively managed exchange traded fund launched on 11/03/2009.
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17752.0
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2023-01-04 00:00:00 UTC
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39% of Warren Buffett's Portfolio Is Invested in These 3 Tech Giants
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AAPL
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https://www.nasdaq.com/articles/39-of-warren-buffetts-portfolio-is-invested-in-these-3-tech-giants
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Warren Buffett is one of the greatest investors of our time. Berkshire Hathaway (NYSE: BRK.B), the conglomerate he has headed for decades, has trounced the broader market since he took it over in 1965.
A big part of Berkshire's financial success has also been driven by its large equities portfolio, which is now valued at more than $317 billion. For decades leading up to the 21st century, Buffett and Berkshire invested heavily in the banking, insurance, energy, media, and consumer staples sectors.
But more recently, Buffett and other members of Berkshire's investing team have also waded into the fast-growing tech sector, and three big tech stocks now account for roughly 39% of Berkshire's portfolio. Of course, one of these stocks holds the lion's share of Buffett's tech investments.
Apple: $119.1 billion (37.3% of the portfolio)
It only took a few years from the time that Berkshire Hathaway first took a stake in Apple (NASDAQ: AAPL) for the consumer tech giant's ballooning stock price to turn it into the conglomerate's largest equity position.
Buffett first apparently became interested in Apple after seeing how upset one of his friends got after losing his iPhone one night. This showed him just what an incredible brand Apple had created, a quality he looks for in all of his major holdings. Brand loyalty is huge because it gives a company pricing power, especially if people feel like they need a product in their daily lives as they do with several of Apple's products.
The broad tech sector sell-off pulled down Apple's stock price this year, and Berkshire Hathaway bought the dip during the first half. Despite the sell-off of Apple's stock this year, Berkshire bought the dip in the first half of the year. Apple has struggled with supply chain issues and the slowdown in China this year due to COVID-19. But the company is still printing money, bringing in $24 billion of operating cash flow in its most recently reported quarter. Apple also buys back a lot of stock, which is something Buffett appreciates.
Taiwan Semiconductor: $4.5 billion (1.4% of the portfolio)
In 2022's third quarter, Berkshire Hathaway opened a new stake in Apple's key chipmaker, Taiwan Semiconductor (NYSE: TSM), also known as TSMC. It's a fairly large stake, too -- only 13 stocks in Berkshire Hathaway's portfolio account for 1% or more of the total portfolio's value.
It's possible that Apple was the reason TSMC wound up on Buffett's radar. TSMC manufactures chips for several of Apple's flagship products, and the iPhone maker accounted for about a quarter of TSMC's revenue in 2021. But TSMC also makes chips for an array of applications in a number of other industries, including the Internet of Things (IoT), the auto sector, and digital consumer electronics. In the third quarter, its IoT revenue grew by 33% from the prior quarter.
Taiwan Semiconductor's stock has slumped by more than 42% this year, likely due to slowing economic growth in China and a murky outlook for chip demand. But in the third quarter, TSMC still grew its revenue by close to 48% year over year and had a return on equity of nearly 43%.
HP: $3.3 billion (1% of the portfolio)
Computer and printer maker HP (NYSE: HPQ) was one of the pioneering start-ups of Silicon Valley back in the day. But today, it's viewed quite differently by the market -- less as a fast-growing tech company and more as a stable incumbent.
Berkshire Hathaway began purchasing shares in the first quarter of 2022 and continued to buy more before selling a portion of its shares. It still holds a sizable position in the tech company.
HP recently embarked on a three-year "future ready" plan under which management plans to lay off between 4,000 and 6,000 people by the end of its fiscal 2025. Those job cuts are part of a bigger plan for HP to build out its product portfolio and position itself for sustainable growth.
But HP is very shareholder-friendly. In its fiscal year 2022, which ended Oct. 31, the company returned $5.3 billion to its investors through share repurchases and dividends. It also has a dividend policy yielding about 3.7% at HP's current share price. We know Buffett and Berkshire love investing in companies that return a lot of capital to shareholders.
Still, given Berkshire's recent sale, it will be interesting to see whether the company was simply right-sizing its position in HP or is planning to exit the stock eventually. Either way, Buffett's holding amounts to 11.9% of the current float, making Berkshire the printer company's largest shareholder. As a result, investors should take this massive investment seriously.
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*Stock Advisor returns as of December 1, 2022
Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, HP, and Taiwan Semiconductor Manufacturing. 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: $119.1 billion (37.3% of the portfolio) It only took a few years from the time that Berkshire Hathaway first took a stake in Apple (NASDAQ: AAPL) for the consumer tech giant's ballooning stock price to turn it into the conglomerate's largest equity position. For decades leading up to the 21st century, Buffett and Berkshire invested heavily in the banking, insurance, energy, media, and consumer staples sectors. The broad tech sector sell-off pulled down Apple's stock price this year, and Berkshire Hathaway bought the dip during the first half.
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Apple: $119.1 billion (37.3% of the portfolio) It only took a few years from the time that Berkshire Hathaway first took a stake in Apple (NASDAQ: AAPL) for the consumer tech giant's ballooning stock price to turn it into the conglomerate's largest equity position. The broad tech sector sell-off pulled down Apple's stock price this year, and Berkshire Hathaway bought the dip during the first half. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, HP, and Taiwan Semiconductor Manufacturing.
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Apple: $119.1 billion (37.3% of the portfolio) It only took a few years from the time that Berkshire Hathaway first took a stake in Apple (NASDAQ: AAPL) for the consumer tech giant's ballooning stock price to turn it into the conglomerate's largest equity position. But more recently, Buffett and other members of Berkshire's investing team have also waded into the fast-growing tech sector, and three big tech stocks now account for roughly 39% of Berkshire's portfolio. 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: $119.1 billion (37.3% of the portfolio) It only took a few years from the time that Berkshire Hathaway first took a stake in Apple (NASDAQ: AAPL) for the consumer tech giant's ballooning stock price to turn it into the conglomerate's largest equity position. Of course, one of these stocks holds the lion's share of Buffett's tech investments. TSMC manufactures chips for several of Apple's flagship products, and the iPhone maker accounted for about a quarter of TSMC's revenue in 2021.
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17753.0
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2023-01-04 00:00:00 UTC
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Down Over 20% In 2022, These 3 Warren Buffett Stocks Are Smart Buys in 2023
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AAPL
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https://www.nasdaq.com/articles/down-over-20-in-2022-these-3-warren-buffett-stocks-are-smart-buys-in-2023
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nan
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When investors are looking for guidance on stock picks, it can help to follow the lead of successful investors. Warren Buffett has a long history of market success and his investing strategies can point most investors in the right direction. Through his holding company, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), Buffett has achieved success that has made him one of the best-known investors of all time.
But just because he's been successful doesn't mean Buffett's investments are foolproof or exempt from market downturns. Like many other investors in 2022, Buffett saw some of his (and Berkshire's) holdings lose value over the past 12 months. Let's take a closer look at three of those picks that lost value in 2022 and whether they are worth buying in 2023.
1. Amazon
Warren Buffett is known for value investing, a strategy involving finding stocks that are trading below their intrinsic (real) value. For example, if a company's stock price is $200 and an investor believes its intrinsic value is $250, they would invest, hoping to profit from the 25% increase when the market finally prices the stock correctly.
Although Amazon (NASDAQ: AMZN) didn't fit the mold of a value stock for much of its existence, it's getting closer to matching that description these days. And while Buffett initially avoided the stock because it was so focused on growth, he has grown to love it. Berkshire Hathaway began buying Amazon stocks in 2019 at the direction of one of Buffett's trusted lieutenants, and the Oracle of Omaha admitted he was "an idiot" for not buying sooner.
Most everyone is familiar with Amazon as an online retailer, but it is becoming more known these days for its somewhat underrated (but lucrative) part of its business -- its cloud computing segment Amazon Web Services (AWS). As of September 2022, AWS controlled around 34% of the cloud market and lead the category by a wide margin. Cloud services are becoming increasingly indispensable for many businesses, and the global cloud market is currently around $480 billion. But it's expected to surpass $1.7 trillion annually by 2029, a compound annual growth rate (CAGR) of nearly 20%.
E-commerce is Amazon's bread and butter, but AWS is where the profits will be found, especially when you look at its margins. In 2021, AWS accounted for around 13% of Amazon's revenue, but it was responsible for almost three-quarters of its operating profit. Advertising is another segment seeing outsized growth for Amazon, pulling in nearly $10 billion just in its most recent quarter and climbing 25% year over year.
Data by YCharts.
Amazon's price-to-earnings (P/E) ratio is down over 72% in the past five years, meaning the stock is as cheap as it's been in a while. The stock price was down about 49% in 2022, but very few analysts expect it not to recover those losses. This opportunity could be too good to pass up for long-term investors.
2. Bank of America
Although Berkshire Hathaway stock doesn't pay dividends, dividend stocks make up a good portion of its portfolio, bringing in more than $6 billion in yearly dividend income to the company. One of those dividend cash cows is Bank of America (NYSE: BAC), which Berkshire Hathaway owns over 1.03 billion shares of (it accounts for 11% of Berkshire's portfolio). With a $0.88 yearly dividend per share, Bank of America provides Berkshire Hathaway with over $1 billion in dividend income annually.
As with many other companies, it was a rough 2022 for Bank of America, down about 25.6%. While rising interest rates negatively affected the bottom line of many businesses, it was a plus for bank stocks like Bank of America as it increased interest income on the money it lent. In the third quarter of 2022, BofA brought in $13.8 billion in interest income, up 24% year over year and more than half of its $24.5 billion in total revenue. Until inflation is brought under control, those elevated interest rates are likely to remain.
As the country's second-largest bank, Bank of America is well-capitalized to handle any adverse economic conditions that could come in 2023. The repercussions of a less-than-ideal economy are likely already priced into the stock, which could mean it'll see brighter days before the overall economy -- especially when investors begin to anticipate better conditions instead of prepping for the worst.
Data by YCharts.
There's a reason Bank of America is considered a blue chip stock: It's battle-tested and proven. And at current price levels and forward P/E ratios below other competitors, it's a great long-term play for investors with time on their side.
3. Apple
With a market cap hovering around the $2 trillion mark, Apple (NASDAQ: AAPL) is the world's most valuable company and the largest Berkshire Hathaway holding by market value. It's also a certified cash cow, bringing in over $394.3 billion in revenue in its 2022 fiscal year, up 7.8%, and $100 billion in net income, up 5.4%. It's these kind of metrics that Buffett loves in companies: stable earnings, strong balance sheets, and plenty of profits.
Two things make Apple a solid buy right now: an emphasis on making services a bigger part of its revenue and its free cash flow (FCF).
The brand loyalty of Apple consumers can't be understated. Once someone is in the company's ecosystem, it's hard to abandon it completely. But part of creating such an effective ecosystem is having the services to complement its hardware products. In its 2022 fiscal year, Apple's services revenue grew by over 14%, compared to just over 6% for its hardware. Services provide roughly one-fifth of the company's revenue, but the steady growth is a positive sign for the future.
Data by YCharts.
Apple's $111.4 billion in FCF gives it the financial resources to weather any economic storm, and with its stock down nearly 27% in the past 12 months, now could be the time for investing in it or increase a current stake. The company's commitment to innovation will be a growth driver for many years to come.
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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. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Stefon Walters has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Bank of America, Berkshire Hathaway, JPMorgan Chase, Meta Platforms, Microsoft, and PNC Financial Services. 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 With a market cap hovering around the $2 trillion mark, Apple (NASDAQ: AAPL) is the world's most valuable company and the largest Berkshire Hathaway holding by market value. And at current price levels and forward P/E ratios below other competitors, it's a great long-term play for investors with time on their side. Apple's $111.4 billion in FCF gives it the financial resources to weather any economic storm, and with its stock down nearly 27% in the past 12 months, now could be the time for investing in it or increase a current stake.
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Apple With a market cap hovering around the $2 trillion mark, Apple (NASDAQ: AAPL) is the world's most valuable company and the largest Berkshire Hathaway holding by market value. Bank of America Although Berkshire Hathaway stock doesn't pay dividends, dividend stocks make up a good portion of its portfolio, bringing in more than $6 billion in yearly dividend income to the company. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Bank of America, Berkshire Hathaway, JPMorgan Chase, Meta Platforms, Microsoft, and PNC Financial Services.
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Apple With a market cap hovering around the $2 trillion mark, Apple (NASDAQ: AAPL) is the world's most valuable company and the largest Berkshire Hathaway holding by market value. For example, if a company's stock price is $200 and an investor believes its intrinsic value is $250, they would invest, hoping to profit from the 25% increase when the market finally prices the stock correctly. Bank of America Although Berkshire Hathaway stock doesn't pay dividends, dividend stocks make up a good portion of its portfolio, bringing in more than $6 billion in yearly dividend income to the company.
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Apple With a market cap hovering around the $2 trillion mark, Apple (NASDAQ: AAPL) is the world's most valuable company and the largest Berkshire Hathaway holding by market value. For example, if a company's stock price is $200 and an investor believes its intrinsic value is $250, they would invest, hoping to profit from the 25% increase when the market finally prices the stock correctly. Bank of America is an advertising partner of The Ascent, a Motley Fool company.
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17754.0
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2023-01-03 00:00:00 UTC
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US STOCKS-Wall St starts the year with a dip; Apple, Tesla shares drag
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-starts-the-year-with-a-dip-apple-tesla-shares-drag-0
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By Sinéad Carew and Amruta Khandekar
Jan 3 (Reuters) - Wall Street's main indexes closed lower on the first trading day of 2023 with the biggest drags from Tesla and Apple, while investors worried about the Federal Reserve's interest-rate hiking path as they awaited minutes from its December meeting.
Shares in electric vehicle maker Tesla Inc TSLA.O closed down 12% after hitting their lowest level since August 2020 and put pressure on the consumer discretionary sector .SPLRCD following a miss on Wall Street estimates for fourth-quarter deliveries.
Apple Inc AAPL.O shares sank 3.7%, with the iPhone maker hitting its lowest level since June 2021, after a report from Nikkei Asia pointed to weaker demand. In addition, an analyst downgraded their rating of the stock due to production cuts in COVID-19-hit China.
The energy sector .SPNY, which logged stellar gains in 2022, closed down 3.6% in the year's first trading day as oil prices fell on bleak business activity data from China and concerns about the global economic outlook. O/R.
The main U.S. stock indexes in 2022 showed their steepest annual losses since 2008 following the Fed's fastest pace of rate hikes since the 1980s to stamp out decades-high inflation.
"2022 was a terrible year for equity markets. Some of the reasons for that haven't dissipated because we turned the calendar," said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles. "There's still elevated anxiety, uncertainty about the Fed and inflation. Until there's clarity on that, it's going to be tough to make any upside headway in equity markets."
Given Apple and Tesla's clout in the market, James also cited specific concerns about them for broader S&P weakness Tuesday.
The Dow Jones Industrial Average .DJI fell 10.88 points, or 0.03%, to 33,136.37; the S&P 500 .SPX lost 15.36 points, or 0.40%, to 3,824.14; and the Nasdaq Composite .IXIC dropped 79.50 points, or 0.76%, to 10,386.99.
The S&P 500 had shed 19.4% in 2022, marking a roughly $8 trillion decline in market capitalization, while the Nasdaq fell 33.1%, dragged down by growth stocks.
Among the S&P 500's 11 major sectors, behind energy, technology was the second biggest decliner, losing 1%, with Apple hastening the decline as it ended the day with a market valuation below $2 trillion for the first time since March 2021.
Tesla's biggest daily percentage drop since September 2020 helped make the consumer discretionary index .SPLRCD the S&P's third weakest sector on the day with a 0.6% drop.
The benchmark's biggest gainer on the day was communications services .SPLRCL, with Facebook parent Meta Platforms Inc META.O leading the advancers there with a gain of 3.7%.
Investors on Wednesday will closely monitor the minutes of the Fed's December policy meeting, when the central bank raised interest rates by 50 basis points after four straight 75 basis points hikes and signaled rates could stay higher for longer.
Other economic data due this week includes the ISM manufacturing report, also on Wednesday, and December's jobs report on Friday.
Weakness in the labor market could give the Fed a reason to ease its monetary policy tightening, but the data so far has shown that market remains tight despite rate hikes.
Money market participants see a 68% chance the Fed will raise the benchmark rate by 25 basis points to 4.50% to 4.75% in February, with the rates peaking at 4.98% by June. FEDWATCH.
Advancing issues outnumbered declining ones on the NYSE by a 1.42-to-1 ratio; on Nasdaq, a 1.20-to-1 ratio favored advancers.
The S&P 500 posted one new 52-week high and five new lows; the Nasdaq Composite recorded 92 new highs and 58 new lows.
On U.S. exchanges 10.618 billion shares changed hands, marking an uptick from the previous week's lower volume due to the holiday season. It compared with the 10.799 billion-share average for the last 20 trading days.
(Reporting by Sinéad Carew in New York; Shubham Batra, Ankika Biswas and Amruta Khandekar in Bengaluru; Editing by Shounak Dasgupta, Arun Koyyur and Jonathan Oatis)
((sinead.carew@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O shares sank 3.7%, with the iPhone maker hitting its lowest level since June 2021, after a report from Nikkei Asia pointed to weaker demand. By Sinéad Carew and Amruta Khandekar Jan 3 (Reuters) - Wall Street's main indexes closed lower on the first trading day of 2023 with the biggest drags from Tesla and Apple, while investors worried about the Federal Reserve's interest-rate hiking path as they awaited minutes from its December meeting. Shares in electric vehicle maker Tesla Inc TSLA.O closed down 12% after hitting their lowest level since August 2020 and put pressure on the consumer discretionary sector .SPLRCD following a miss on Wall Street estimates for fourth-quarter deliveries.
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Apple Inc AAPL.O shares sank 3.7%, with the iPhone maker hitting its lowest level since June 2021, after a report from Nikkei Asia pointed to weaker demand. By Sinéad Carew and Amruta Khandekar Jan 3 (Reuters) - Wall Street's main indexes closed lower on the first trading day of 2023 with the biggest drags from Tesla and Apple, while investors worried about the Federal Reserve's interest-rate hiking path as they awaited minutes from its December meeting. The Dow Jones Industrial Average .DJI fell 10.88 points, or 0.03%, to 33,136.37; the S&P 500 .SPX lost 15.36 points, or 0.40%, to 3,824.14; and the Nasdaq Composite .IXIC dropped 79.50 points, or 0.76%, to 10,386.99.
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Apple Inc AAPL.O shares sank 3.7%, with the iPhone maker hitting its lowest level since June 2021, after a report from Nikkei Asia pointed to weaker demand. By Sinéad Carew and Amruta Khandekar Jan 3 (Reuters) - Wall Street's main indexes closed lower on the first trading day of 2023 with the biggest drags from Tesla and Apple, while investors worried about the Federal Reserve's interest-rate hiking path as they awaited minutes from its December meeting. Investors on Wednesday will closely monitor the minutes of the Fed's December policy meeting, when the central bank raised interest rates by 50 basis points after four straight 75 basis points hikes and signaled rates could stay higher for longer.
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Apple Inc AAPL.O shares sank 3.7%, with the iPhone maker hitting its lowest level since June 2021, after a report from Nikkei Asia pointed to weaker demand. By Sinéad Carew and Amruta Khandekar Jan 3 (Reuters) - Wall Street's main indexes closed lower on the first trading day of 2023 with the biggest drags from Tesla and Apple, while investors worried about the Federal Reserve's interest-rate hiking path as they awaited minutes from its December meeting. "2022 was a terrible year for equity markets.
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17755.0
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2023-01-03 00:00:00 UTC
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Nvidia, Foxconn to build autonomous vehicle platforms
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AAPL
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https://www.nasdaq.com/articles/nvidia-foxconn-to-build-autonomous-vehicle-platforms
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Jan 3 (Reuters) - Chipmaker Nvidia Corp NVDA.O and electronics manufacturer Foxconn 2317.TW announced a partnership on Tuesday to develop autonomous vehicle platforms.
Taiwanese contract manufacturer Foxconn said it will manufacture electronic control units (ECUs) for cars based on Nvidia's DRIVE Orin chip made specifically for computing in connected and autonomous vehicles.
The ECUs will serve the global automotive market, Foxconn said.
Nvidia sees a market opportunity of $300 billion in the automotive sector and reported revenue of $251 million in the third quarter from the segment.
The chipmaker said the tie-up will allow it to scale efforts to meet growing demand for chips made for autonomous and connected vehicles.
Foxconn, which operates a vehicle manufacturing facility in Ohio, said its vehicles will contain ECUs based on DRIVE Orin and Nvidia's DRIVE Hyperion sensors for autonomous driving.
Foxconn makes electric vehicles for Lordstown Motors Corp RIDE.O and has a contract to make Fisker Inc's FSR.N second car model, PEAR. It also manufactures Apple Inc's AAPL.O products.
(Reporting by Akash Sriram in Bengaluru; Editing by Shinjini Ganguli)
((Akash.Sriram@thomsonreuters.com; https://twitter.com/hoodieonveshti;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It also manufactures Apple Inc's AAPL.O products. Jan 3 (Reuters) - Chipmaker Nvidia Corp NVDA.O and electronics manufacturer Foxconn 2317.TW announced a partnership on Tuesday to develop autonomous vehicle platforms. Nvidia sees a market opportunity of $300 billion in the automotive sector and reported revenue of $251 million in the third quarter from the segment.
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It also manufactures Apple Inc's AAPL.O products. Jan 3 (Reuters) - Chipmaker Nvidia Corp NVDA.O and electronics manufacturer Foxconn 2317.TW announced a partnership on Tuesday to develop autonomous vehicle platforms. Taiwanese contract manufacturer Foxconn said it will manufacture electronic control units (ECUs) for cars based on Nvidia's DRIVE Orin chip made specifically for computing in connected and autonomous vehicles.
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It also manufactures Apple Inc's AAPL.O products. Jan 3 (Reuters) - Chipmaker Nvidia Corp NVDA.O and electronics manufacturer Foxconn 2317.TW announced a partnership on Tuesday to develop autonomous vehicle platforms. Taiwanese contract manufacturer Foxconn said it will manufacture electronic control units (ECUs) for cars based on Nvidia's DRIVE Orin chip made specifically for computing in connected and autonomous vehicles.
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It also manufactures Apple Inc's AAPL.O products. Taiwanese contract manufacturer Foxconn said it will manufacture electronic control units (ECUs) for cars based on Nvidia's DRIVE Orin chip made specifically for computing in connected and autonomous vehicles. The ECUs will serve the global automotive market, Foxconn said.
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17756.0
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2023-01-03 00:00:00 UTC
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GLOBAL MARKETS-Asian equities rise, dollar sways as focus firmly on Fed minutes
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https://www.nasdaq.com/articles/global-markets-asian-equities-rise-dollar-sways-as-focus-firmly-on-fed-minutes
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By Ankur Banerjee
SINGAPORE, Jan 4 (Reuters) - Asian equities rose on Wednesday, while the dollar was on the back foot after a steep spike overnight, with investors keenly awaiting minutes from the Federal Reserve's most recent meeting to gauge the path forward for interest rates.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.91%, set for a third straight day of gains for the year. The index fell 20% in 2022. Japan's Nikkei .N225 lost 1.12% in early trade, while Australia's S&P/ASX 200 index .AXJO rose 1.28%.
Overnight, Wall Street's main indexes closed lower with the biggest drags from Tesla TSLA.O and Apple AAPL.O as U.S. equities make a slow start to the year after their steepest annual losses since 2008 in 2022. .N
China's stocks .SSEC opened flat, while Hong Kong's Hang Seng Index .HSI opened roughly 1% higher. Investors have pinned their hopes on a swift post-COVID era recovery in China after the country started dismantling strict curbs.
"The market has made a pretty tentative start to the year ... (and) is still grappling with the notion of what we are going to see from the Fed this year," said Rob Carnell, head of ING's Asia-Pacific research.
"There are two camps out there and they are wrestling for dominance in terms of the view. Some days higher-for-longer wins some days higher-then-lower camp wins," Carnell said.
Minutes from the Fed's December meeting, when it cautioned rates may need to remain higher for longer, are due to be released later on Wednesday.
Investors will parse the minutes to figure out whether more policy tightening is likely.
Markets are pricing in rate cuts for late 2023, with fed fund futures 0#FF: implying a range of 4.25% to 4.5% by December. FEDWATCH
Investors will get a better picture of the U.S. labour market this week, with several pieces of data scheduled in the week, culminating in the employment report on Friday. A weakening jobs market is seen as one of the key pieces needed to convince the Fed to begin slowing its monetary tightening path.
"It is too early to start betting on a Fed pivot this year and that should make this difficult environment for stocks," said Edward Moya, senior market analyst at Oanda in New York.
In the currency market, the euro EUR=EBS was up 0.14% to $1.0561 in early Asian hours, not far off its three-week lows of $1.0519 it touched overnight. A surprise slowdown in German inflation rallied bunds and sent the common currency sliding.
The dollar index =USD, which measures the greenback against six other currencies fell 0.162% after rising 1% overnight. Sterling GBP=D3 was last trading at $1.1983, up 0.14% on the day. The pound fell 0.7% overnight.
The yield on 10-year Treasury notes US10YT=RR was down 5.7 basis points to 3.735%, while the yield on the 30-year Treasury bond US30YT=RR was down 4.5 basis points to 3.846%.
The two-year US2YT=RR U.S. Treasury yield, which typically moves in step with interest rate expectations, was down 3.7 basis points at 4.368%.
Oil prices steadied on Wednesday after diving 4.1% on Tuesday, the largest daily decline in more than three months, weighed by weak demand data from China, a gloomy economic outlook and a stronger U.S. dollar.
U.S. crude CLc1 was 0.08% lower at $76.87 per barrel and Brent LCOc1 was at $82.13, up 0.04% on the day. O/R
World FX rates YTDhttp://tmsnrt.rs/2egbfVh
Global asset performancehttp://tmsnrt.rs/2yaDPgn
Asian stock marketshttps://tmsnrt.rs/2zpUAr4
(Reporting by Ankur Banerjee; Editing by Sam Holmes)
((ankur.banerjee@thomsonreuters.com;; Mobile - +65 8121 3925; Twitter: @AnkurBanerjee17;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Overnight, Wall Street's main indexes closed lower with the biggest drags from Tesla TSLA.O and Apple AAPL.O as U.S. equities make a slow start to the year after their steepest annual losses since 2008 in 2022. By Ankur Banerjee SINGAPORE, Jan 4 (Reuters) - Asian equities rose on Wednesday, while the dollar was on the back foot after a steep spike overnight, with investors keenly awaiting minutes from the Federal Reserve's most recent meeting to gauge the path forward for interest rates. Oil prices steadied on Wednesday after diving 4.1% on Tuesday, the largest daily decline in more than three months, weighed by weak demand data from China, a gloomy economic outlook and a stronger U.S. dollar.
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Overnight, Wall Street's main indexes closed lower with the biggest drags from Tesla TSLA.O and Apple AAPL.O as U.S. equities make a slow start to the year after their steepest annual losses since 2008 in 2022. By Ankur Banerjee SINGAPORE, Jan 4 (Reuters) - Asian equities rose on Wednesday, while the dollar was on the back foot after a steep spike overnight, with investors keenly awaiting minutes from the Federal Reserve's most recent meeting to gauge the path forward for interest rates. Some days higher-for-longer wins some days higher-then-lower camp wins," Carnell said.
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Overnight, Wall Street's main indexes closed lower with the biggest drags from Tesla TSLA.O and Apple AAPL.O as U.S. equities make a slow start to the year after their steepest annual losses since 2008 in 2022. By Ankur Banerjee SINGAPORE, Jan 4 (Reuters) - Asian equities rose on Wednesday, while the dollar was on the back foot after a steep spike overnight, with investors keenly awaiting minutes from the Federal Reserve's most recent meeting to gauge the path forward for interest rates. O/R World FX rates YTDhttp://tmsnrt.rs/2egbfVh Global asset performancehttp://tmsnrt.rs/2yaDPgn Asian stock marketshttps://tmsnrt.rs/2zpUAr4 (Reporting by Ankur Banerjee; Editing by Sam Holmes) ((ankur.banerjee@thomsonreuters.com;; Mobile - +65 8121 3925; Twitter: @AnkurBanerjee17;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Overnight, Wall Street's main indexes closed lower with the biggest drags from Tesla TSLA.O and Apple AAPL.O as U.S. equities make a slow start to the year after their steepest annual losses since 2008 in 2022. Some days higher-for-longer wins some days higher-then-lower camp wins," Carnell said. Minutes from the Fed's December meeting, when it cautioned rates may need to remain higher for longer, are due to be released later on Wednesday.
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17757.0
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2023-01-03 00:00:00 UTC
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Tuesday's ETF with Unusual Volume: IWL
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https://www.nasdaq.com/articles/tuesdays-etf-with-unusual-volume%3A-iwl
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The iShares Russell Top 200 ETF is seeing unusually high volume in afternoon trading Tuesday, with over 333,000 shares traded versus three month average volume of about 102,000. Shares of IWL were off about 0.8% on the day.
Components of that ETF with the highest volume on Tuesday were Tesla, trading down about 12.9% with over 109.3 million shares changing hands so far this session, and Apple, off about 3.8% on volume of over 48.0 million shares. Paypal Holdings is the component faring the best Tuesday, up by about 4.3% on the day.
VIDEO: Tuesday's ETF with Unusual Volume: IWL
The views and 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 iShares Russell Top 200 ETF is seeing unusually high volume in afternoon trading Tuesday, with over 333,000 shares traded versus three month average volume of about 102,000. Components of that ETF with the highest volume on Tuesday were Tesla, trading down about 12.9% with over 109.3 million shares changing hands so far this session, and Apple, off about 3.8% on volume of over 48.0 million shares. VIDEO: Tuesday's ETF with Unusual Volume: IWL The views and 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 iShares Russell Top 200 ETF is seeing unusually high volume in afternoon trading Tuesday, with over 333,000 shares traded versus three month average volume of about 102,000. Components of that ETF with the highest volume on Tuesday were Tesla, trading down about 12.9% with over 109.3 million shares changing hands so far this session, and Apple, off about 3.8% on volume of over 48.0 million shares. VIDEO: Tuesday's ETF with Unusual Volume: IWL The views and 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 iShares Russell Top 200 ETF is seeing unusually high volume in afternoon trading Tuesday, with over 333,000 shares traded versus three month average volume of about 102,000. Components of that ETF with the highest volume on Tuesday were Tesla, trading down about 12.9% with over 109.3 million shares changing hands so far this session, and Apple, off about 3.8% on volume of over 48.0 million shares. VIDEO: Tuesday's ETF with Unusual Volume: IWL The views and 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 iShares Russell Top 200 ETF is seeing unusually high volume in afternoon trading Tuesday, with over 333,000 shares traded versus three month average volume of about 102,000. Shares of IWL were off about 0.8% on the day. Components of that ETF with the highest volume on Tuesday were Tesla, trading down about 12.9% with over 109.3 million shares changing hands so far this session, and Apple, off about 3.8% on volume of over 48.0 million shares.
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17758.0
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2023-01-03 00:00:00 UTC
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Valuation Squeezes Continue into 2023
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https://www.nasdaq.com/articles/valuation-squeezes-continue-into-2023
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After opening the first trading session of 2023 in the green, indices quickly slipped into the red and remained there for the rest of the day. For those of you hoping the flip of a calendar was going to change near-term trading conditions, sorry to tell you — it hasn’t. All major indices are off session lows, however: the Dow, which dropped 300 points at one time today, closed just dow -12 points, -0.04%. The S&P 500 came in -0.41%, and the Nasdaq was -0.76%. The small-cap Russell 2000 reached -0.62%.
We got some modestly better-than-expected economic news today early, but clearly the markets weren’t reacting positively to it. S&P U.S. Manufacturing PMI for December came in unrevised for its final print at 46.2, still in contraction territory (sub-50) but at least not further down. Since April 2022’s peak at 59, we’ve seen a decline in each month except one.
Construction Spending rose +0.2% for November, reversing the revised -0.2% posted the previous month and even stronger from the expected -0.4%. Private construction in the month was the difference, +0.3%, with non-residential construction jumping +0.9% for November. Of these, power infrastructure grew +0.9% and transportation was +0.7%.
Tesla TSLA, which fell -50% in Q4 alone — its worst quarter on record — dumped another -12% today, following a vehicle delivery report of 1.31 million vehicles, -90K from projections. The company is now down -72% from its all-time highs set the first week of November 2021. Eventually, the perceived excesses will be drained from Tesla stock; CEO Elon Musk can backstop this by finding a new boss for Twitter so he can get back to his day job.
Apple AAPL has hit a new 52-week low today, -3.8% on the session and now more than -30% below its all-time highs hit in December of 2021. This brings Apple below $2 trillion in market cap, even as the company saw strong demand for iPhones over holiday shopping season. In fact, December reversed five straight months of sales declines. The question is: can this last? Plenty of uncertainty regarding U.S./global recession possibilities and whether China is really going to finally reopen.
Tomorrow, the economic data heats up: ISM Manufacturing for December, JOLTS (Job Openings and Labor Turnover) for November, FOMC minutes from the mid-December meeting and additional motor vehicle sales releases are all expected to come out. The private-sector payroll report from ADP ADP, normally scheduled for the first Wednesday of the month, is bumped back a day due to the New Year’s holiday on Monday.
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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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Apple AAPL has hit a new 52-week low today, -3.8% on the session and now more than -30% below its all-time highs hit in December of 2021. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports To read this article on Zacks.com click here. Eventually, the perceived excesses will be drained from Tesla stock; CEO Elon Musk can backstop this by finding a new boss for Twitter so he can get back to his day job.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL has hit a new 52-week low today, -3.8% on the session and now more than -30% below its all-time highs hit in December of 2021. Be First to New Top 10 Stocks >> Want the latest recommendations from Zacks Investment Research?
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL has hit a new 52-week low today, -3.8% on the session and now more than -30% below its all-time highs hit in December of 2021. Tomorrow, the economic data heats up: ISM Manufacturing for December, JOLTS (Job Openings and Labor Turnover) for November, FOMC minutes from the mid-December meeting and additional motor vehicle sales releases are all expected to come out.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL has hit a new 52-week low today, -3.8% on the session and now more than -30% below its all-time highs hit in December of 2021. In fact, December reversed five straight months of sales declines.
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2023-01-03 00:00:00 UTC
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GLOBAL MARKETS-Dollar jumps, U.S. stocks buck global rally
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https://www.nasdaq.com/articles/global-markets-dollar-jumps-u.s.-stocks-buck-global-rally
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By Amanda Cooper and Koh Gui Qing
LONDON/NEW YORK, Jan 3 (Reuters) - The dollar jumped on Tuesday as oil prices sank, while U.S. stocks bucked a global equities rally in a macro-packed week that could offer a steer on when and where U.S. interest rates might peak.
The MSCI All-World index .MIWD00000PUS fell 0.2%, dragged by losses in U.S. stocks. The Dow Jones Industrial Average .DJI ended little changed, the S&P 500 .SPX dropped 0.4%, and the Nasdaq Composite .IXIC lost 0.76%.
Losses in U.S. stocks were led by a 12.2% tumble in electric-vehicle maker Tesla TSLA.O after it missed Wall Street estimates for quarterly deliveries. IPhone maker Apple Inc AAPL.O dropped 3.7% to its lowest since June 2021 following a rating downgrade due to production cuts in China.
The U.S. dollar =USD firmed ahead of Wednesday's release of the minutes from the Federal Reserve's last meeting, with expectations they will signal more policy tightening is in store.
A higher dollar walloped oil prices, which also took a beating from concerns about slowing global economic growth, especially after data showed China's factory activity shrank in December.
"We expect the December FOMC minutes to shed additional light on Fed officials' policy views for 2023. Note that at the meeting, the Committee signalled broad expectations for a substantially higher terminal rate this year," analysts at TD Securities said in a note.
The dollar index =USD jumped 0.94% to 104.64. USD/
The euro was the worst-performing currency against the dollar EUR=EBS, falling by the most since late September, after German regional inflation data showed consumer price pressures eased sharply in December, thanks in large part to government measures to contain natural gas bills for households and businesses.
Data on U.S. payrolls this week is expected to show the labour market remains tight, while EU consumer prices could show some slowdown in inflation as energy prices ease.
"Energy base effects will bring about a sizeable reduction in inflation in the major economies in 2023, but stickiness in core components, much of this stemming from tight labour markets, will prevent an early dovish policy 'pivot' by central banks," analysts at NatWest Markets wrote in a note.
They expect interest rates to top out at 5% in the United States, 2.25% in the EU and 4.5% in Britain and to stay there for the entire year. Markets, on the other hand, are pricing in rate cuts for late 2023, with fed fund futures 0#FF: implying a range of 4.25% to 4.5% by December. FEDWATCH
"The thing that makes me nervous about this year is that we still do not know the full impact of the very significant monetary tightening that's taken place across the advanced world," Berenberg Senior Economist Kallum Pickering said.
"It takes a good year, or 18 months, for the full effect to kick in," he said.
Central banks have expressed concern about rising wages, even as consumers have struggled to keep up with the soaring cost of living and companies are running out of room to protect their profitability by raising their own prices.
However, said Pickering, the labour market tends to lag the broader economy by some time, meaning there is a risk that central banks could be raising interest rates by more than the economy can withstand.
"What central banks are inducing is essentially excess cyclicality, which is - they overstimulated in 2021 and triggered an inflationary boom and then overtightened in 2022 and triggered a disinflationary recession. It’s exactly the opposite of what you want central banks to do," he said.
EUROPEAN SHARES RALLY
On the markets, European shares rose thanks to gains in classic defensive sectors, such as healthcare and food and beverages. Drugmakers Novo Nordisk NOVOb.CO, Astrazeneca AZN.L and Roche ROG.S were among the biggest positive weights on the STOXX 600 .STOXX, along with Nestle NESN.S
The STOXX, which lost 13% in 2022, rose 1.2%. The FTSE 100 .FTSE, the only major European index not to trade on Monday, rose 1.4%.
Markets have for a while priced in an eventual U.S. easing, but they were badly wrong-footed by the Bank of Japan's shock upward shift in its ceiling for bond yields.
The BOJ is now considering raising its inflation forecasts in January to show price growth close to its 2% target in fiscal 2023 and 2024, according to the Nikkei.
Such a move at its next policy meeting on Jan. 17-18 would only add to speculation of an end to ultra-loose policy, which has essentially acted as a floor for bond yields globally.
The policy shift has boosted the yen across the board, with the dollar losing 5% in December and the euro 2.3%.
The yen took a breather on Tuesday, easing 0.3% against the dollar to 130.895. The dollar earlier touched a six-month low of 129.52 yen JPY=EBS.
Oil succumbed to the strength of the dollar, and concern about demand in China, the world's second-largest economy, added to the downward momentum.
A batch of surveys has shown China's factory activity shrank at the sharpest pace in nearly three years as COVID infections swept through production lines.
"China is entering the most dangerous weeks of the pandemic," warned analysts at Capital Economics.
Brent crude LCOc1 lost 4.2% to settle at $82.10 a barrel. O/R
Asia stock marketshttps://tmsnrt.rs/2zpUAr4
Asia-Pacific valuationshttps://tmsnrt.rs/2Dr2BQA
(Reporting by Koh Gui Qing in New York and Amanda Cooper in London Additional reporting by Wayne Cole in Sydney Editing by Andrea Ricci and Matthew Lewis)
((Wayne.Cole@thomsonreuters.com; 612 9171 7144; Reuters Messaging: wayne.cole.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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IPhone maker Apple Inc AAPL.O dropped 3.7% to its lowest since June 2021 following a rating downgrade due to production cuts in China. By Amanda Cooper and Koh Gui Qing LONDON/NEW YORK, Jan 3 (Reuters) - The dollar jumped on Tuesday as oil prices sank, while U.S. stocks bucked a global equities rally in a macro-packed week that could offer a steer on when and where U.S. interest rates might peak. A higher dollar walloped oil prices, which also took a beating from concerns about slowing global economic growth, especially after data showed China's factory activity shrank in December.
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IPhone maker Apple Inc AAPL.O dropped 3.7% to its lowest since June 2021 following a rating downgrade due to production cuts in China. By Amanda Cooper and Koh Gui Qing LONDON/NEW YORK, Jan 3 (Reuters) - The dollar jumped on Tuesday as oil prices sank, while U.S. stocks bucked a global equities rally in a macro-packed week that could offer a steer on when and where U.S. interest rates might peak. A higher dollar walloped oil prices, which also took a beating from concerns about slowing global economic growth, especially after data showed China's factory activity shrank in December.
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IPhone maker Apple Inc AAPL.O dropped 3.7% to its lowest since June 2021 following a rating downgrade due to production cuts in China. By Amanda Cooper and Koh Gui Qing LONDON/NEW YORK, Jan 3 (Reuters) - The dollar jumped on Tuesday as oil prices sank, while U.S. stocks bucked a global equities rally in a macro-packed week that could offer a steer on when and where U.S. interest rates might peak. Data on U.S. payrolls this week is expected to show the labour market remains tight, while EU consumer prices could show some slowdown in inflation as energy prices ease.
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IPhone maker Apple Inc AAPL.O dropped 3.7% to its lowest since June 2021 following a rating downgrade due to production cuts in China. A higher dollar walloped oil prices, which also took a beating from concerns about slowing global economic growth, especially after data showed China's factory activity shrank in December. Data on U.S. payrolls this week is expected to show the labour market remains tight, while EU consumer prices could show some slowdown in inflation as energy prices ease.
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2023-01-03 00:00:00 UTC
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Foxconn to use Nvidia chips to build self-driving vehicle platforms
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https://www.nasdaq.com/articles/foxconn-to-use-nvidia-chips-to-build-self-driving-vehicle-platforms
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Adds background and detail
Jan 3 (Reuters) - Chipmaker Nvidia Corp NVDA.O and electronics manufacturer Foxconn 2317.TW announced a partnership on Tuesday to develop autonomous vehicle platforms.
Taiwanese contract manufacturer Foxconn said it will manufacture electronic control units (ECUs) for cars based on Nvidia's DRIVE Orin chip made specifically for computing in connected and autonomous vehicles.
The ECUs will serve the global automotive market, Foxconn said.
Companies developing electric and autonomous cars have struggled to bring products to the market in recent years as they grapple with rising costs and difficulties in ramping up production.
Nvidia said its technology, which includes chips to process information from sensors in real time, will help Foxconn overcome some of those challenges.
It sees a market opportunity of $300 billion in the automotive sector and reported revenue of $251 million in the third quarter from the segment.
The chipmaker said the tie-up will allow it to scale efforts to meet growing demand for chips made for autonomous and connected vehicles.
Foxconn, which operates a vehicle manufacturing facility in Ohio, said its vehicles will contain ECUs based on DRIVE Orin and Nvidia's DRIVE Hyperion sensors for autonomous driving.
Taiwan-based Foxconn makes electric vehicles for Lordstown Motors Corp RIDE.O and has a contract to make Fisker Inc's FSR.N second car model, PEAR. It also manufactures Apple Inc AAPL.O products.
The company said in October it hopes to eventually make cars for Tesla Inc TSLA.O as it ramps up electric vehicle manufacturing to diversify its business.
(Reporting by Akash Sriram in Bengaluru; Editing by Shinjini Ganguli)
((Akash.Sriram@thomsonreuters.com; https://twitter.com/hoodieonveshti;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It also manufactures Apple Inc AAPL.O products. Adds background and detail Jan 3 (Reuters) - Chipmaker Nvidia Corp NVDA.O and electronics manufacturer Foxconn 2317.TW announced a partnership on Tuesday to develop autonomous vehicle platforms. The chipmaker said the tie-up will allow it to scale efforts to meet growing demand for chips made for autonomous and connected vehicles.
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It also manufactures Apple Inc AAPL.O products. Adds background and detail Jan 3 (Reuters) - Chipmaker Nvidia Corp NVDA.O and electronics manufacturer Foxconn 2317.TW announced a partnership on Tuesday to develop autonomous vehicle platforms. Taiwanese contract manufacturer Foxconn said it will manufacture electronic control units (ECUs) for cars based on Nvidia's DRIVE Orin chip made specifically for computing in connected and autonomous vehicles.
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It also manufactures Apple Inc AAPL.O products. Adds background and detail Jan 3 (Reuters) - Chipmaker Nvidia Corp NVDA.O and electronics manufacturer Foxconn 2317.TW announced a partnership on Tuesday to develop autonomous vehicle platforms. Taiwanese contract manufacturer Foxconn said it will manufacture electronic control units (ECUs) for cars based on Nvidia's DRIVE Orin chip made specifically for computing in connected and autonomous vehicles.
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It also manufactures Apple Inc AAPL.O products. Taiwanese contract manufacturer Foxconn said it will manufacture electronic control units (ECUs) for cars based on Nvidia's DRIVE Orin chip made specifically for computing in connected and autonomous vehicles. Companies developing electric and autonomous cars have struggled to bring products to the market in recent years as they grapple with rising costs and difficulties in ramping up production.
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2023-01-03 00:00:00 UTC
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First Session of 2023 Ends With Losses
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https://www.nasdaq.com/articles/first-session-of-2023-ends-with-losses
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The dust has yet to settle on the dismal year Wall Street just had, as the major indexes continue to slide into 2023. The Dow pared much steeper losses in its final hour of trading, though it still finished the day in the red alongside the Nasdaq and S&P 500. Tech was hit the hardest amid a dismal fourth-quarter delivery report from Tesla (TSLA) and more production cuts out of Apple (AAPL). Meanwhile, the fear of additional interest rates into the new year maintains a tight grip on investors.
Continue reading for more on today's market, including:
Why put traders are targeting First Solar stock. .
Bulls might want to crack open this beverage name.
Plus, 1 promising blue-chip; 2 casino stocks to watch; and the bear signal flashing for PFE.
5 Things to Know Today
Republican Leader Kevin McCarthy was unable to secure enough votes in support of his bid for House speaker, marking the first time in a century that the majority party failed to garner enough support for a speaker during the first round of voting. (CNBC)
Russian nationalists are pushing for punishment for commanders being accused of ignoring the dangers linked to one of the deadliest strikes in Ukraine, which reportedly killed 63 Russian soldiers. (Reuters)
Bullish investors should pay attention to this energy stock.
These two casino names could benefit from China's reopening.
Why traders should hold off on buying the Pfizer dip.
There were no earnings of note today.
Gold Hits 6-Month Peak
Recession concerns are weighing on oil prices, after the International Monetary Fund predicted that one third of the global economy will enter a recession. West Texas Intermediate (WTI) crude for the now most active, February delivery, shed $3.33, or 4.2%, to settle at $76.93 per barrel.
Gold hit a six-month high, thanks to a dip in bond yields. February-dated gold rose $19.90, or 1.1%, to settle at $1,846.10 per ounce on the day.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Tech was hit the hardest amid a dismal fourth-quarter delivery report from Tesla (TSLA) and more production cuts out of Apple (AAPL). The Dow pared much steeper losses in its final hour of trading, though it still finished the day in the red alongside the Nasdaq and S&P 500. West Texas Intermediate (WTI) crude for the now most active, February delivery, shed $3.33, or 4.2%, to settle at $76.93 per barrel.
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Tech was hit the hardest amid a dismal fourth-quarter delivery report from Tesla (TSLA) and more production cuts out of Apple (AAPL). Plus, 1 promising blue-chip; 2 casino stocks to watch; and the bear signal flashing for PFE. Gold Hits 6-Month Peak Recession concerns are weighing on oil prices, after the International Monetary Fund predicted that one third of the global economy will enter a recession.
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Tech was hit the hardest amid a dismal fourth-quarter delivery report from Tesla (TSLA) and more production cuts out of Apple (AAPL). Continue reading for more on today's market, including: Why put traders are targeting First Solar stock. 5 Things to Know Today Republican Leader Kevin McCarthy was unable to secure enough votes in support of his bid for House speaker, marking the first time in a century that the majority party failed to garner enough support for a speaker during the first round of voting.
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Tech was hit the hardest amid a dismal fourth-quarter delivery report from Tesla (TSLA) and more production cuts out of Apple (AAPL). The dust has yet to settle on the dismal year Wall Street just had, as the major indexes continue to slide into 2023. Continue reading for more on today's market, including: Why put traders are targeting First Solar stock.
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17762.0
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2023-01-03 00:00:00 UTC
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US STOCKS-Wall St starts the year with a dip; Apple, Tesla shares drag
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-starts-the-year-with-a-dip-apple-tesla-shares-drag
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By Sinéad Carew and Amruta Khandekar
Jan 3 (Reuters) - Wall Street's main indexes closed lower on the first trading day of 2023 with big drags from Tesla and Apple, while investors worried about the Federal Reserve's interest-rate hiking path as they awaited minutes from its December meeting.
Shares in electric vehicle maker Tesla Inc TSLA.O hit their lowest level since August 2020 and put pressure on the consumer discretionary sector .SPLRCD after missing Wall Street estimates for quarterly deliveries.
Apple Inc AAPL.O shares sank, with the iPhone maker hitting its lowest level since June 2021, after a report from Nikkei Asia pointed to weaker demand. In addition, an analyst downgraded their rating of the stock due to production cuts in COVID-19-hit China.
The energy sector .SPNY, which logged stellar gains in 2022, started the year in the red as oil prices fell on bleak business activity data from China and concerns about the outlook for the global economy. O/R.
The main U.S. stock indexes had ended 2022 with their steepest annual losses since 2008 following the Fed's fastest pace of rate hikes since the 1980s to stamp out decades-high inflation.
"Even though the calendar has changed, a lot of the main issues for the market have not, specifically with the Federal Reserve tightening monetary policy as it's still concerned about inflation," said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, North Carolina.
"We're in a bear market. Negative is the default reaction to everything," he said. "Until the Fed really changes their tone, it's an uphill battle for the market."
Michael James, managing director of equity trading at Wedbush Securities in Los Angeles, also cited worries about Apple's demand stemming as well as Tesla's sharp decline for the broader market's weakness on Tuesday.
According to preliminary data, the S&P 500 .SPX lost 15.43 points, or 0.40%, to end at 3,824.07 points, while the Nasdaq Composite .IXIC lost 78.21 points, or 0.75%, to 10,388.28. The Dow Jones Industrial Average .DJI fell 12.33 points, or 0.04%, to 33,134.92.
The S&P 500 had shed 19.4% in 2022, marking a roughly $8 trillion decline in market capitalization, while the Nasdaq fell 33.1%, dragged down by growth stocks.
Investors on Wednesday will closely monitor the minutes of the Fed's December policy meeting, when the central bank raised interest rates by 50 basis points after four straight 75 basis points hikes and signaled rates could stay higher for longer.
Other economic data due this week includes the ISM manufacturing report, also on Wednesday, and December's jobs report on Friday.
Weakness in the labor market could give the Fed a reason to ease its monetary policy tightening, but the data so far has shown that market remains tight despite rate hikes.
Money market participants see a 68% chance the Fed will raise the benchmark rate by 25 basis points to 4.50% to 4.75% in February, with the rates peaking at 4.98% by June. FEDWATCH.
(Reporting by Sinéad Carew in New York; Shubham Batra, Ankika Biswas and Amruta Khandekar in Bengaluru; Editing by Shounak Dasgupta, Arun Koyyur and Jonathan Oatis)
((sinead.carew@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O shares sank, with the iPhone maker hitting its lowest level since June 2021, after a report from Nikkei Asia pointed to weaker demand. By Sinéad Carew and Amruta Khandekar Jan 3 (Reuters) - Wall Street's main indexes closed lower on the first trading day of 2023 with big drags from Tesla and Apple, while investors worried about the Federal Reserve's interest-rate hiking path as they awaited minutes from its December meeting. "Even though the calendar has changed, a lot of the main issues for the market have not, specifically with the Federal Reserve tightening monetary policy as it's still concerned about inflation," said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, North Carolina.
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Apple Inc AAPL.O shares sank, with the iPhone maker hitting its lowest level since June 2021, after a report from Nikkei Asia pointed to weaker demand. By Sinéad Carew and Amruta Khandekar Jan 3 (Reuters) - Wall Street's main indexes closed lower on the first trading day of 2023 with big drags from Tesla and Apple, while investors worried about the Federal Reserve's interest-rate hiking path as they awaited minutes from its December meeting. "Even though the calendar has changed, a lot of the main issues for the market have not, specifically with the Federal Reserve tightening monetary policy as it's still concerned about inflation," said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, North Carolina.
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Apple Inc AAPL.O shares sank, with the iPhone maker hitting its lowest level since June 2021, after a report from Nikkei Asia pointed to weaker demand. Investors on Wednesday will closely monitor the minutes of the Fed's December policy meeting, when the central bank raised interest rates by 50 basis points after four straight 75 basis points hikes and signaled rates could stay higher for longer. Weakness in the labor market could give the Fed a reason to ease its monetary policy tightening, but the data so far has shown that market remains tight despite rate hikes.
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Apple Inc AAPL.O shares sank, with the iPhone maker hitting its lowest level since June 2021, after a report from Nikkei Asia pointed to weaker demand. By Sinéad Carew and Amruta Khandekar Jan 3 (Reuters) - Wall Street's main indexes closed lower on the first trading day of 2023 with big drags from Tesla and Apple, while investors worried about the Federal Reserve's interest-rate hiking path as they awaited minutes from its December meeting. Investors on Wednesday will closely monitor the minutes of the Fed's December policy meeting, when the central bank raised interest rates by 50 basis points after four straight 75 basis points hikes and signaled rates could stay higher for longer.
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17763.0
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2023-01-03 00:00:00 UTC
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Why Apple Stock Dropped on Jan. 3, 2023
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AAPL
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https://www.nasdaq.com/articles/why-apple-stock-dropped-on-jan.-3-2023
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nan
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nan
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What happened
Apple (NASDAQ: AAPL) stock tumbled 4% through 2 p.m. ET on Tuesday, knocking the tech titan below $2 trillion in market capitalization for the first time since 2021, and putting Apple stock a full one-third below the $3 trillion market cap it hit a year ago.
And yes, you can blame investment bank BNP Paribas Exane for that -- but only in part.
So what
As its first stock action of the new year, BNP downgraded Apple stock from outperform to neutral this morning, and slashed its price target on the tech giant by 22%, to just $140 a share.
It's not yet known how many total gadgets Apple produced in 2022. But citing supply chain issues in China, BNP said Apple is likely to ship no more than 224 million iPhones in 2023, down 7% from 2021, reports StreetInsider. Mac and iPad shipments are also expected to fall this year, and earnings could decline by as much as 6% (in which case, they'd also miss Wall Street estimates, which call for flat earnings this year).
BNP's downgrade is certainly weighing on Apple stock today, but it's worth pointing out that BNP may only be reacting to other news that necessitated the downgrade. Specifically, Nikkei Asia has reported that Apple is warning its suppliers that it sees weak demand for its products this year, so it won't be ordering as many components for its devices.
Now what
Granted, when you consider that COVID-19-related supply disruptions in China were already making it difficult for Apple to build all the devices it wanted to, the fact that Apple is affirmatively ordering fewer parts right now might not be as big a deal. The demand problem may be canceling out the supply problem for Apple!
That being said, whatever the reason for the slower sales, this is not a development calculated to make Apple investors happy. Even at a current valuation of 18.5 times free cash flow -- which sounds kind of cheap for a stock like Apple -- analysts are forecasting no more than single-digit earnings growth for the company over the next four straight years. With at least one high-profile analyst now warning that earnings could actually shrink, rather than grow, in the current year, it's no wonder that investors might be starting to worry that Apple stock is actually overpriced.
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
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Apple (NASDAQ: AAPL) stock tumbled 4% through 2 p.m. Specifically, Nikkei Asia has reported that Apple is warning its suppliers that it sees weak demand for its products this year, so it won't be ordering as many components for its devices. Even at a current valuation of 18.5 times free cash flow -- which sounds kind of cheap for a stock like Apple -- analysts are forecasting no more than single-digit earnings growth for the company over the next four straight years.
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What happened Apple (NASDAQ: AAPL) stock tumbled 4% through 2 p.m. So what As its first stock action of the new year, BNP downgraded Apple stock from outperform to neutral this morning, and slashed its price target on the tech giant by 22%, to just $140 a share. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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What happened Apple (NASDAQ: AAPL) stock tumbled 4% through 2 p.m. So what As its first stock action of the new year, BNP downgraded Apple stock from outperform to neutral this morning, and slashed its price target on the tech giant by 22%, to just $140 a share. 10 stocks we like better than Apple When our award-winning analyst team has a stock tip, it can pay to listen.
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What happened Apple (NASDAQ: AAPL) stock tumbled 4% through 2 p.m. Now what Granted, when you consider that COVID-19-related supply disruptions in China were already making it difficult for Apple to build all the devices it wanted to, the fact that Apple is affirmatively ordering fewer parts right now might not be as big a deal. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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17764.0
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2023-01-03 00:00:00 UTC
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Foxconn's IPhone Plant In China Reaches 90% Production Capacity: Reports
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AAPL
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https://www.nasdaq.com/articles/foxconns-iphone-plant-in-china-reaches-90-production-capacity%3A-reports
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nan
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nan
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(RTTNews) - Foxconn's major plant in China, which was hit hard by worker unrest following Covid-19 spread and related restrictions, has reportedly reached nearly 90% production.
The world's biggest iPhone factory in the Zhengzhou city, called iPhone City, was running at 90% of planned production capacity at the end of December, the Henan Daily newspaper reported Tuesday.
Last year, production at the facility was heavily impacted after issues with workers following strict Covid-19 restrictions. Foxconn is said to have employed as many as 300,000 workers at the factory, which produces the majority of Apple's premium models including iPhone 14 Pro.
Many workers fled in October after food shortages and to avoid strict Covid-19 restrictions. The issues had disrupted the production of Apple products ahead of the crucial Christmas and New Year holidays.
Foxconn offered bonuses to attract new workers and convince those still there to stay on.
"At the moment, the order books look good, and the orders will peak from now until a few months after Chinese New Year," said Wang Xue, deputy general manager of the facility, according to Henan Daily. The Lunar New Year will begin on January 22.
The views and 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) - Foxconn's major plant in China, which was hit hard by worker unrest following Covid-19 spread and related restrictions, has reportedly reached nearly 90% production. Last year, production at the facility was heavily impacted after issues with workers following strict Covid-19 restrictions. Foxconn is said to have employed as many as 300,000 workers at the factory, which produces the majority of Apple's premium models including iPhone 14 Pro.
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(RTTNews) - Foxconn's major plant in China, which was hit hard by worker unrest following Covid-19 spread and related restrictions, has reportedly reached nearly 90% production. The world's biggest iPhone factory in the Zhengzhou city, called iPhone City, was running at 90% of planned production capacity at the end of December, the Henan Daily newspaper reported Tuesday. Last year, production at the facility was heavily impacted after issues with workers following strict Covid-19 restrictions.
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(RTTNews) - Foxconn's major plant in China, which was hit hard by worker unrest following Covid-19 spread and related restrictions, has reportedly reached nearly 90% production. The world's biggest iPhone factory in the Zhengzhou city, called iPhone City, was running at 90% of planned production capacity at the end of December, the Henan Daily newspaper reported Tuesday. Last year, production at the facility was heavily impacted after issues with workers following strict Covid-19 restrictions.
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Last year, production at the facility was heavily impacted after issues with workers following strict Covid-19 restrictions. Foxconn is said to have employed as many as 300,000 workers at the factory, which produces the majority of Apple's premium models including iPhone 14 Pro. Foxconn offered bonuses to attract new workers and convince those still there to stay on.
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17765.0
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2023-01-03 00:00:00 UTC
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A Bull Market Is Coming: 3 Stocks Near Their 52-Week Lows to Buy Right Now
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AAPL
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https://www.nasdaq.com/articles/a-bull-market-is-coming%3A-3-stocks-near-their-52-week-lows-to-buy-right-now
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nan
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Many investors are eager to place 2022 in the rearview mirror. Last year saw the prices of many stocks plunge, as the negative impact of inflation -- and the Federal Reserve's moves to tame it -- took a heavy toll on the financial markets.
However, investors would be wise to remember that the stock market has recovered from all its previous stumbles, and it's highly likely that it's only a matter of time before the next bull market takes hold.
With that said, Walt Disney (NYSE: DIS), Airbnb(NASDAQ: ABNB), and Apple (NASDAQ: AAPL) are three strong companies whose stock prices are currently near their lows of the past year. Buying their shares now can position you to profit handsomely from a market rebound.
1. Walt Disney
The media industry is in a state of upheaval. The cord-cutting trend is denting cable and broadcast TV providers' profits, while movie theater chains have yet to recover from the lingering effects of COVID-19. At the same time, streaming services are struggling with intensifying competition, making profits hard to come by.
Disney has found itself squarely in the middle of these challenging trends, but the entertainment titan is positioned to navigate this storm better than its rivals. After all, Disney already has more streaming subscribers than Netflix, with over 235 million customers across its popular Disney+, Hulu, and ESPN+ offerings. Meanwhile, Disney's diversified collection of theme parks, product licensing, and legacy media businesses continue to throw off bountiful profits.
Disney's streaming operations are not yet profitable. However, the company has ramped up its spending to produce more content to entice more customers. It's a sound strategy, one that has helped to fuel Disney's impressive subscriber growth.
But recent price hikes and a new ad-supported plan are indications of management's shifting focus toward profitability. Disney+ is projected to generate sustained profits beginning in 2024 -- an achievement that would likely spur a powerful rally in Disney's stock price.
With Disney's shares down rouhgly 43% over the past year and trading near their 52-week lows in the mid-$80s, you currently have a chance to buy the media giant's stock at a heavily discounted price ahead of these potential gains.
2. Airbnb
Fears of a potential recession and a corresponding downturn in the travel industry contributed to a 49% decline in Airbnb's share price in 2022. Yet the home rental market has held up relatively well, buoyed by the remote work trend and demand for vacations forgone during the early stages of the pandemic. Investors thus appear to be underestimating Airbnb's prospects.
More than 4 million hosts list their properties on Airbnb's platform. This extraordinary scale, combined with Airbnb's brand recognition and leading consumer mindshare, gives it powerful advantages over its competitors.
Moreover, listing homes for rent has become a way for people to make extra money during difficult economic environments. Single-room listings jumped 31% year over year in the third quarter, due in part to this trend. All told, Airbnb's revenue surged 29% to $2.9 billion, while its net income soared 46%, to $1.2 billion.
Yet, it's Airbnb's cash flow generation that's perhaps most remarkable. With hosts incurring the costs of buying and preparing properties for rent, the company doesn't have much in the way of capital expenditures. In turn, it converted a third of its revenue into free cash flow in the third quarter, a sizable sum of $960 million.
Despite this impressive growth, profitability, and cash flow generation, Airbnb's shares are trading near their 52-week lows, around $85. With a market cap of roughly $54 billion, Airbnb's stock can be purchased for about 16 times its $3.3 billion in trailing-12-month free cash flow. That's a bargain price for such a high-quality business.
3. Apple
COVID-related disruptions are snarling Apple's supply chains in China. Panicked investors have rushed to sell the tech titan's shares, which are down nearly 30% over the past year.
Fortunately, CEO Tim Cook is a logistics expert, and he's exactly the right person to fix the company's supply chain issues. Apple has already begun to move some of its manufacturing sites to places like India and the U.S. to better diversify its operations.
Better still, Apple's highly profitable services are becoming a larger portion of its business. Offerings such as Apple Music and Apple TV+ are attracting subscribers at a solid clip. And the tech juggernaut's nascent advertising business is set to grow far larger in the coming years.
This strong growth in services is helping drive Apple's unrivaled profit and cash flow production, to the tune of $95 billion in net income and $111 billion in free cash flow over the trailing 12 months.
Best of all, these profits can be had for an attractive price. With its shares still trading near their 52-week lows, around $125, you can buy Apple's stock at a hefty discount today.
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
Joe Tenebruso has positions in Walt Disney. The Motley Fool has positions in and recommends Airbnb, Apple, Netflix, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With that said, Walt Disney (NYSE: DIS), Airbnb(NASDAQ: ABNB), and Apple (NASDAQ: AAPL) are three strong companies whose stock prices are currently near their lows of the past year. Last year saw the prices of many stocks plunge, as the negative impact of inflation -- and the Federal Reserve's moves to tame it -- took a heavy toll on the financial markets. With Disney's shares down rouhgly 43% over the past year and trading near their 52-week lows in the mid-$80s, you currently have a chance to buy the media giant's stock at a heavily discounted price ahead of these potential gains.
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With that said, Walt Disney (NYSE: DIS), Airbnb(NASDAQ: ABNB), and Apple (NASDAQ: AAPL) are three strong companies whose stock prices are currently near their lows of the past year. Despite this impressive growth, profitability, and cash flow generation, Airbnb's shares are trading near their 52-week lows, around $85. The Motley Fool has positions in and recommends Airbnb, Apple, Netflix, and Walt Disney.
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With that said, Walt Disney (NYSE: DIS), Airbnb(NASDAQ: ABNB), and Apple (NASDAQ: AAPL) are three strong companies whose stock prices are currently near their lows of the past year. This strong growth in services is helping drive Apple's unrivaled profit and cash flow production, to the tune of $95 billion in net income and $111 billion in free cash flow over the trailing 12 months. 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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With that said, Walt Disney (NYSE: DIS), Airbnb(NASDAQ: ABNB), and Apple (NASDAQ: AAPL) are three strong companies whose stock prices are currently near their lows of the past year. Despite this impressive growth, profitability, and cash flow generation, Airbnb's shares are trading near their 52-week lows, around $85. Better still, Apple's highly profitable services are becoming a larger portion of its business.
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17766.0
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2023-01-03 00:00:00 UTC
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US STOCKS-Wall St falters at start of 2023 as Apple, Tesla shares fall
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-falters-at-start-of-2023-as-apple-tesla-shares-fall
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nan
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nan
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By Amruta Khandekar and Ankika Biswas
Jan 3 (Reuters) - Wall Street's main indexes dropped on the first trading day of 2023due to heavy losses in Tesla and Apple, while investors awaitedminutes from the last policy meeting of the Federal Reserve for more clarity on the path of interest rate hikes.
The electric-vehicle maker TSLA.O fell 13.7% aftermissing Wall Street estimates for quarterly deliveries and iPhone maker Apple Inc AAPL.O dropped 3.9% to its lowest since June 2021 following a rating downgrade due to production cuts in China.
Consumer discretionary .SPLRCD and technology stocks .SPLRCT slipped more than 1% each.
The energy sector .SPNY, which logged stellar gains in 2022, slid 2.7%, tracking lower oil prices on bleak business activity data from China and concerns about the outlook for the global economy amid recession worries. O/R.
Other rate-sensitive technology and growth stocks such as Alphabet Inc GOOGL.O, Meta Platforms Inc META.O and Amazon.com Inc AMZN.O were up between 0.9% and 2.9%.
"The market, like today, is not very much about fundamentals or news, it's more about the emotion of a start of a new year and investors trying to decide if a recovery is in front of them," said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey.
"Given last year's weak performance, I would certainly expect a better year ahead."
The main stock indexes ended 2022 with their steepest annual losses since 2008 following the Fed's fastest pace of rate hikes since the 1980s to stamp out decades-high inflation.
The S&P 500 shed 19.4% in 2022, marking a roughly $8 trillion decline in market capitalization, while the Nasdaq fell 33.1%, dragged down by growth stocks.
Investors on Wednesday will closely monitor the minutes of the Fed's December policy meeting, when the central bank raised interest rates by 50 basis points after four straight 75-bps hikes and signaled rates could stay higher for longer.
Other economic data due this week includes December's jobs report and the ISM manufacturing report.
Weakness in the labor market could give the Fed a reason to ease its monetary policy tightening, but the data so far has shown that the market remains tight despite interest rate hikes.
Money market participants see a 68% chance the Fed will raise the benchmark rate by 25 bps to 4.50%-4.75% in February, with the rates peaking at 4.98% by June. FEDWATCH
At 12:17 p.m. ET, the Dow Jones Industrial Average .DJI was down 190.79 points, or 0.58%, at 32,956.46, the S&P 500 .SPX was down 32.46 points, or 0.85%, at 3,807.04, and the Nasdaq Composite .IXIC was down 131.84 points, or 1.26%, at 10,334.64.
U.S.-listed Chinese firms such as Alibaba Group Holding Ltd BABA.N, JD.com Inc JD.O, Pinduoduo Inc PDD.O rose between 1% and 4% on post-COVID recovery hopes.
Advancing issues outnumbered decliners by a 1.16-to-1 ratio on the NYSE and by a 1.08-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week highs and 5 new lows, while the Nasdaq recorded 80 new highs and 32 new lows.
(Reporting by Shubham Batra, Ankika Biswas and Amruta Khandekar in Bengaluru; Editing by Shounak Dasgupta and Arun Koyyur)
((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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The electric-vehicle maker TSLA.O fell 13.7% aftermissing Wall Street estimates for quarterly deliveries and iPhone maker Apple Inc AAPL.O dropped 3.9% to its lowest since June 2021 following a rating downgrade due to production cuts in China. By Amruta Khandekar and Ankika Biswas Jan 3 (Reuters) - Wall Street's main indexes dropped on the first trading day of 2023due to heavy losses in Tesla and Apple, while investors awaitedminutes from the last policy meeting of the Federal Reserve for more clarity on the path of interest rate hikes. The energy sector .SPNY, which logged stellar gains in 2022, slid 2.7%, tracking lower oil prices on bleak business activity data from China and concerns about the outlook for the global economy amid recession worries.
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The electric-vehicle maker TSLA.O fell 13.7% aftermissing Wall Street estimates for quarterly deliveries and iPhone maker Apple Inc AAPL.O dropped 3.9% to its lowest since June 2021 following a rating downgrade due to production cuts in China. By Amruta Khandekar and Ankika Biswas Jan 3 (Reuters) - Wall Street's main indexes dropped on the first trading day of 2023due to heavy losses in Tesla and Apple, while investors awaitedminutes from the last policy meeting of the Federal Reserve for more clarity on the path of interest rate hikes. Investors on Wednesday will closely monitor the minutes of the Fed's December policy meeting, when the central bank raised interest rates by 50 basis points after four straight 75-bps hikes and signaled rates could stay higher for longer.
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The electric-vehicle maker TSLA.O fell 13.7% aftermissing Wall Street estimates for quarterly deliveries and iPhone maker Apple Inc AAPL.O dropped 3.9% to its lowest since June 2021 following a rating downgrade due to production cuts in China. By Amruta Khandekar and Ankika Biswas Jan 3 (Reuters) - Wall Street's main indexes dropped on the first trading day of 2023due to heavy losses in Tesla and Apple, while investors awaitedminutes from the last policy meeting of the Federal Reserve for more clarity on the path of interest rate hikes. Investors on Wednesday will closely monitor the minutes of the Fed's December policy meeting, when the central bank raised interest rates by 50 basis points after four straight 75-bps hikes and signaled rates could stay higher for longer.
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The electric-vehicle maker TSLA.O fell 13.7% aftermissing Wall Street estimates for quarterly deliveries and iPhone maker Apple Inc AAPL.O dropped 3.9% to its lowest since June 2021 following a rating downgrade due to production cuts in China. By Amruta Khandekar and Ankika Biswas Jan 3 (Reuters) - Wall Street's main indexes dropped on the first trading day of 2023due to heavy losses in Tesla and Apple, while investors awaitedminutes from the last policy meeting of the Federal Reserve for more clarity on the path of interest rate hikes. Other rate-sensitive technology and growth stocks such as Alphabet Inc GOOGL.O, Meta Platforms Inc META.O and Amazon.com Inc AMZN.O were up between 0.9% and 2.9%.
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17767.0
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2023-01-03 00:00:00 UTC
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After Hours Most Active for Jan 3, 2023 : AMZN, PYPL, Z, AAPL, ACWI, PDD, CF, ELAN, USB, BEKE, BBD, KSS
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-jan-3-2023-%3A-amzn-pypl-z-aapl-acwi-pdd-cf-elan-usb-beke-bbd
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -3.42 to 10,859.22. The total After hours volume is currently 111,839,602 shares traded.
The following are the most active stocks for the after hours session:
Amazon.com, Inc. (AMZN) is +0.05 at $85.87, with 7,432,781 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
PayPal Holdings, Inc. (PYPL) is unchanged at $74.58, with 7,370,564 shares traded. As reported by Zacks, the current mean recommendation for PYPL is in the "buy range".
Zillow Group, Inc. (Z) is unchanged at $33.68, with 5,431,641 shares traded.
Apple Inc. (AAPL) is -0.09 at $124.98, with 3,686,063 shares traded., following a 52-week high recorded in today's regular session.
iShares MSCI ACWI ETF (ACWI) is -0.1385 at $84.76, with 3,127,051 shares traded. This represents a 11.96% increase from its 52 Week Low.
Pinduoduo Inc. (PDD) is +0.24 at $84.77, with 2,766,696 shares traded. As reported by Zacks, the current mean recommendation for PDD is in the "buy range".
CF Industries Holdings, Inc. (CF) is unchanged at $81.95, with 2,731,472 shares traded. As reported by Zacks, the current mean recommendation for CF is in the "buy range".
Elanco Animal Health Incorporated (ELAN) is unchanged at $12.35, with 2,620,129 shares traded. ELAN's current last sale is 72.65% of the target price of $17.
U.S. Bancorp (USB) is unchanged at $44.64, with 2,126,164 shares traded. USB's current last sale is 82.67% of the target price of $54.
KE Holdings Inc (BEKE) is -0.11 at $14.70, with 2,070,231 shares traded. As reported by Zacks, the current mean recommendation for BEKE is in the "buy range".
Banco Bradesco Sa (BBD) is unchanged at $2.56, with 1,894,369 shares traded. As reported by Zacks, the current mean recommendation for BBD is in the "buy range".
Kohl's Corporation (KSS) is -0.0371 at $24.51, with 1,840,446 shares traded. KSS's current last sale is 76.6% of the target price of $32.
The views and 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 -0.09 at $124.98, with 3,686,063 shares traded., following a 52-week high recorded in today's regular session. Elanco Animal Health Incorporated (ELAN) is unchanged at $12.35, with 2,620,129 shares traded. Banco Bradesco Sa (BBD) is unchanged at $2.56, with 1,894,369 shares traded.
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Apple Inc. (AAPL) is -0.09 at $124.98, with 3,686,063 shares traded., following a 52-week high recorded in today's regular session. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range". As reported by Zacks, the current mean recommendation for PYPL is in the "buy range".
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Apple Inc. (AAPL) is -0.09 at $124.98, with 3,686,063 shares traded., following a 52-week high recorded in today's regular session. The total After hours volume is currently 111,839,602 shares traded. PayPal Holdings, Inc. (PYPL) is unchanged at $74.58, with 7,370,564 shares traded.
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Apple Inc. (AAPL) is -0.09 at $124.98, with 3,686,063 shares traded., following a 52-week high recorded in today's regular session. The NASDAQ 100 After Hours Indicator is down -3.42 to 10,859.22. The following are the most active stocks for the after hours session:
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17768.0
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2023-01-03 00:00:00 UTC
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23 Top Dividend Stocks to Buy and Hold in 2023
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AAPL
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https://www.nasdaq.com/articles/23-top-dividend-stocks-to-buy-and-hold-in-2023
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nan
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nan
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No one knows for sure what the new year will bring for investors. However, it's a good bet that quite a few solid companies will continue paying dividends quarter after quarter.
Some of them could also have significant upside potential over the next 12 months. Here are 23 top dividend stocks to buy and hold in 2023.
Energy
Energy stocks led the S&P 500 in 2022 and could very well soar again in the new year. Many of them offer especially juicy dividends, to boot.
STOCK BUSINESS SUMMARY DIVIDEND YIELD
1. Brookfield Renewable Corporation (NYSE: BEPC) Renewable energy provider 4.6%
2. Brookfield Renewable Partners (NYSE: BEP) Renewable energy provider 5.2%
3. Chevron Integrated energy and chemicals producer 3.2%
4. Devon Energy (NYSE: DVN) Oil and gas producer 8.9%
5. Enterprise Products Partners Midstream energy services provider 7.8%
6. ONEOK Midstream energy services provider 5.7%
7. Pioneer Natural Resources (NYSE: PXD) Oil and gas producer 11.2%
Data source: Yahoo! Finance.
Note that the first two stocks on the list share the same underlying business. Brookfield Renewable Partners is a limited partnership (LP). The company created a separate stock organized as a corporation (Brookfield Renewable Corporation) to enable investors to avoid some of the tax hassles associated with LPs.
Also, the two stocks with the highest dividend yields -- Pioneer Natural Resources and Devon Energy -- pay a fixed-plus-variable dividend. The variable portion depends on the companies' excess free cash flow. Although there's no guarantee that Pioneer and Devon will be able to generate as much free cash flow in 2023 as they did last year, their chances appear to be pretty good.
Healthcare
Big pharma companies often pay solid dividends. These three definitely qualify -- and they each handily beat the market in 2022.
STOCK BUSINESS SUMMARY DIVIDEND YIELD
8. AbbVie (NYSE: ABBV) Biopharmaceutical company 3.7%
9. Bristol Myers Squibb Biopharmaceutical company 3.2%
10. Johnson & Johnson (NYSE: JNJ) Biopharmaceutical, consumer health, and medical devices company 2.6%
Data source: Yahoo! Finance.
AbbVie and Johnson & Johnson could be especially appealing to income investors because they're both Dividend Kings with at least 50 consecutive years of dividend increases. The new year will be one of big changes for the two companies.
AbbVie faces declining sales for its top-selling drug Humira due to biosimilar competition in the U.S. J&J plans to spin off its consumer-health unit in 2023. However, both stocks should continue to be winners for investors over the long term.
Real estate
Real estate investment trusts (REITs) are known for their high dividend yields. Below are some of the best REITs on the market.
STOCK BUSINESS SUMMARY DIVIDEND YIELD
11. Digital Realty Trust (NYSE: DLR) REIT focusing on data centers 4.8%
12. Easterly Government Properties (NYSE: DEA) REIT focusing on government properties 7.4%
13. Medical Properties Trust (NYSE: MPW) REIT focusing on hospitals 10.3%
14. Realty Income (NYSE: O) REIT focusing primarily on the retail market 4.7%
15. Rithm Capital (NYSE: RITM) REIT focusing on providing capital to financial services and real estate sectors 12.1%
16. W.P. Carey (NYSE: WPC) REIT focusing on multiple industries. 5.4%
Data source: Yahoo! Finance.
All of these REIT stocks fell in 2022, with some declining sharply. However, if the Federal Reserve stabilizes interest rates later this year, the stocks could enjoy nice rebounds.
Technology/telecommunications
Most tech stocks don't pay dividends. The ones that do tend to offer relatively low dividend yields.
Telecom stocks, on the other hand, often have attractive yields. The following stocks illustrate both points.
STOCK BUSINESS SUMMARY DIVIDEND YIELD
17. Apple (NASDAQ: AAPL) Consumer technology company 0.73%
18. Microsoft (NASDAQ: MSFT) Software and devices maker 1.2%
19. Verizon Communications (NYSE: VZ) Telecommunications provider 6.7%
Data source: Yahoo! Finance.
You probably won't buy Apple or Microsoft for their dividends. However, these two beaten-down tech stocks could roar back in 2023.
Verizon likely won't deliver the long-term growth that these tech giants will over the long term. However, it comes with a high dividend yield that income investors shouldn't ignore.
Other
The final members of our list of dividend stocks to buy and hold in 2023 span multiple sectors. All of them offer great dividends and solid long-term growth prospects.
STOCK BUSINESS SUMMARY DIVIDEND YIELD
20. Ares Capital (NASDAQ: ARCC) Business development company 10.3%
21. Brookfield Infrastructure Corporation (NYSE: BIPC) Infrastructure assets operator 3.7%
22. Brookfield Infrastructure Partners (NYSE: BIP) Infrastructure assets operator 4.6%
23. United Parcel Service Package delivery and logistics services provider 3.5%
Data source: Yahoo! Finance.
Note that Brookfield Infrastructure Corporation and Brookfield Infrastructure Partners share the same underlying business (in a similar way that we saw earlier with the two Brookfield Renewable stocks). Investing in Brookfield Infrastructure Corporation doesn't have the tax complications of Brookfield Infrastructure Partners, which is a limited partnership.
Ares Capital ranks among the smallest on the list of 23 dividend stocks, with a market cap of under $10 billion. However, it also pays one of the highest dividend yields. The company believes it will be able to continue paying out its high dividend under multiple scenarios for the economy in 2023.
10 stocks we like better than Ares Capital
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 Ares Capital 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
Keith Speights has positions in AbbVie, Apple, Bristol-Myers Squibb, Brookfield Infrastructure, Brookfield Infrastructure Partners, Brookfield Renewable, Brookfield Renewable Partners, Devon Energy, Enterprise Products Partners, and Microsoft. The Motley Fool has positions in and recommends Apple, Bristol-Myers Squibb, Brookfield Renewable, Digital Realty Trust, and Microsoft. The Motley Fool recommends Brookfield Infrastructure, Brookfield Infrastructure Partners, Brookfield Renewable Partners, Easterly Government Properties, Enterprise Products Partners, Johnson & Johnson, ONEOK, Pioneer Natural Resources, United Parcel Service, Verizon Communications, and W. P. Carey and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) Consumer technology company 0.73% 18. Pioneer Natural Resources (NYSE: PXD) Oil and gas producer 11.2% Data source: Yahoo! AbbVie faces declining sales for its top-selling drug Humira due to biosimilar competition in the U.S. J&J plans to spin off its consumer-health unit in 2023.
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Apple (NASDAQ: AAPL) Consumer technology company 0.73% 18. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Keith Speights has positions in AbbVie, Apple, Bristol-Myers Squibb, Brookfield Infrastructure, Brookfield Infrastructure Partners, Brookfield Renewable, Brookfield Renewable Partners, Devon Energy, Enterprise Products Partners, and Microsoft. The Motley Fool has positions in and recommends Apple, Bristol-Myers Squibb, Brookfield Renewable, Digital Realty Trust, and Microsoft.
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Apple (NASDAQ: AAPL) Consumer technology company 0.73% 18. Note that Brookfield Infrastructure Corporation and Brookfield Infrastructure Partners share the same underlying business (in a similar way that we saw earlier with the two Brookfield Renewable stocks). See the 10 stocks *Stock Advisor returns as of December 1, 2022 Keith Speights has positions in AbbVie, Apple, Bristol-Myers Squibb, Brookfield Infrastructure, Brookfield Infrastructure Partners, Brookfield Renewable, Brookfield Renewable Partners, Devon Energy, Enterprise Products Partners, and Microsoft.
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Apple (NASDAQ: AAPL) Consumer technology company 0.73% 18. Also, the two stocks with the highest dividend yields -- Pioneer Natural Resources and Devon Energy -- pay a fixed-plus-variable dividend. The new year will be one of big changes for the two companies.
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17769.0
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2023-01-03 00:00:00 UTC
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GLOBAL MARKETS-Dollar posts big gains, U.S. stocks buck global rally
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AAPL
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https://www.nasdaq.com/articles/global-markets-dollar-posts-big-gains-u.s.-stocks-buck-global-rally-0
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nan
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nan
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By Amanda Cooper and Koh Gui Qing
LONDON/NEW YORK, Jan 3 (Reuters) - The dollar jumped on Tuesday as oil prices sank, while U.S. stocks bucked a global equities rally in a macro-packed week that could offer a steer on when and where U.S. interest rates might peak.
The MSCI All-World index .MIWD00000PUSfell 0.5%, dragged by losses in U.S. stocks. The Dow Jones Industrial Average .DJI lost 0.64%, the S&P 500 .SPX dropped 0.9%, and the Nasdaq Composite .IXIC lost 1.3%.
Losses in U.S. stocks were led by a 14.7% tumble in electric-vehicle maker Tesla TSLA.O after it missed Wall Street estimates for quarterly deliveries. iPhone maker Apple Inc AAPL.O dropped 4.3% to its lowest since June 2021 following a rating downgrade due to production cuts in China.
The U.S. dollar =USD firmed ahead of Wednesday's release of the minutes from the Federal Reserve's last meeting, with expectations they will signal more policy tightening is in store.
A higher dollar walloped oil prices, which also took a beating from concerns about slowing global economic growth, especially after data showed China's factory activity shrank in December.
"We expect the December FOMC minutes to shed additional light on Fed officials' policy views for 2023. Note that at the meeting, the Committee signalled broad expectations for a substantially higher terminal rate this year," analysts at TD Securities said in a note.
The dollar index =USD jumped 0.97% to 104.66. USD/
The euro was the worst-performing currency against the dollar EUR=EBS, falling by the most since late September, after German regional inflation data showed consumer price pressures eased sharply in December, thanks in large part to government measures to contain natural gas bills for households and businesses.
Data on U.S. payrolls this week is expected to show the labour market remains tight, while EU consumer prices could show some slowdown in inflation as energy prices ease.
"Energy base effects will bring about a sizeable reduction in inflation in the major economies in 2023, but stickiness in core components, much of this stemming from tight labour markets, will prevent an early dovish policy 'pivot' by central banks," analysts at NatWest Markets wrote in a note.
They expect interest rates to top out at 5% in the United States, 2.25% in the EU and 4.5% in Britain and to stay there for the entire year. Markets, on the other hand, are pricing in rate cuts for late 2023, with fed fund futures 0#FF: implying a range of 4.25% to 4.5% by December. FEDWATCH
"The thing that makes me nervous about this year is that we still do not know the full impact of the very significant monetary tightening that's taken place across the advanced world," Berenberg Senior Economist Kallum Pickering said.
"It takes a good year, or 18 months, for the full effect to kick in," he said.
Central banks have expressed concern about rising wages, even as consumers have struggled to keep up with the soaring cost of living and companies are running out of room to protect their profitability by raising their own prices.
But, Pickering said, the labour market tends to lag the broader economy by some time, meaning that there is a risk that central banks could be raising interest rates by more than the economy can withstand.
"What central banks are inducing is essentially excess cyclicality, which is - they overstimulated in 2021 and triggered an inflationary boom and then overtightened in 2022 and triggered a disinflationary recession. It’s exactly the opposite of what you want central banks to do," he said.
EUROPEAN SHARES RALLY
On the markets, European shares rose thanks to gains in classic defensive sectors, such as healthcare and food and beverages. Drugmakers Novo Nordisk NOVOb.CO, Astrazeneca AZN.L and Roche ROG.S were among the biggest positive weights on the STOXX 600 .STOXX, along with Nestle NESN.S
The STOXX, which lost 13% in 2022, rose 1.2%. The FTSE 100 .FTSE, the only major European index not to trade on Monday, rose 1.4%.
Markets have for a while priced in an eventual U.S. easing, but they were badly wrong-footed by the Bank of Japan's shock upward shift in its ceiling for bond yields.
The BOJ is now considering raising its inflation forecasts in January to show price growth close to its 2% target in fiscal 2023 and 2024, according to the Nikkei.
Such a move at its next policy meeting on Jan. 17-18 would only add to speculation of an end to ultra-loose policy, which has essentially acted as a floor for bond yields globally.
The policy shift has boosted the yen across the board, with the dollar losing 5% in December and the euro 2.3%.
The yen took a breather on Tuesday, easing 0.4% against the dollar to 130.69. The dollar earlier touched a six-month low of 129.52 yen JPY=EBS.
Oil succumbed to the strength of the dollar, and concern about demand in China, the world's second-largest economy, added to the downward momentum.
A batch of surveys has shown China's factory activity shrank at the sharpest pace in nearly three years as COVID infections swept through production lines.
"China is entering the most dangerous weeks of the pandemic," warned analysts at Capital Economics.
Brent crude LCOc1 lost 3% to trade around $83.32 a barrel. O/R
Asia stock marketshttps://tmsnrt.rs/2zpUAr4
Asia-Pacific valuationshttps://tmsnrt.rs/2Dr2BQA
(Reporting by Wayne Cole; Editing by Bradley Perrett, Sam Holmes, Chizu Nomiyama and Andrea Ricci)
((Wayne.Cole@thomsonreuters.com; 612 9171 7144; Reuters Messaging: wayne.cole.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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iPhone maker Apple Inc AAPL.O dropped 4.3% to its lowest since June 2021 following a rating downgrade due to production cuts in China. By Amanda Cooper and Koh Gui Qing LONDON/NEW YORK, Jan 3 (Reuters) - The dollar jumped on Tuesday as oil prices sank, while U.S. stocks bucked a global equities rally in a macro-packed week that could offer a steer on when and where U.S. interest rates might peak. USD/ The euro was the worst-performing currency against the dollar EUR=EBS, falling by the most since late September, after German regional inflation data showed consumer price pressures eased sharply in December, thanks in large part to government measures to contain natural gas bills for households and businesses.
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iPhone maker Apple Inc AAPL.O dropped 4.3% to its lowest since June 2021 following a rating downgrade due to production cuts in China. A higher dollar walloped oil prices, which also took a beating from concerns about slowing global economic growth, especially after data showed China's factory activity shrank in December. USD/ The euro was the worst-performing currency against the dollar EUR=EBS, falling by the most since late September, after German regional inflation data showed consumer price pressures eased sharply in December, thanks in large part to government measures to contain natural gas bills for households and businesses.
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iPhone maker Apple Inc AAPL.O dropped 4.3% to its lowest since June 2021 following a rating downgrade due to production cuts in China. A higher dollar walloped oil prices, which also took a beating from concerns about slowing global economic growth, especially after data showed China's factory activity shrank in December. Data on U.S. payrolls this week is expected to show the labour market remains tight, while EU consumer prices could show some slowdown in inflation as energy prices ease.
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iPhone maker Apple Inc AAPL.O dropped 4.3% to its lowest since June 2021 following a rating downgrade due to production cuts in China. A higher dollar walloped oil prices, which also took a beating from concerns about slowing global economic growth, especially after data showed China's factory activity shrank in December. Data on U.S. payrolls this week is expected to show the labour market remains tight, while EU consumer prices could show some slowdown in inflation as energy prices ease.
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17770.0
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2023-01-03 00:00:00 UTC
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2 Hot Stocks to Buy and Hold Until You Retire
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AAPL
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https://www.nasdaq.com/articles/2-hot-stocks-to-buy-and-hold-until-you-retire-5
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nan
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nan
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When you invest in a company, it should be because you believe in its long-term potential. Part of this belief is understanding that volatility is inevitable, and there will undoubtedly be some tough weeks, months, and even years along the way.
Regardless of how this past year has gone, Apple (NASDAQ: AAPL) and Walmart (NYSE: WMT) are two stocks I believe you should buy and hold until you retire.
1. Apple
With a market cap of over $2 trillion, Apple is the most valuable public company in the world. For perspective, its market cap is more than five times Walmart's. With its world-class product and services ecosystem, Apple has cultivated a level of brand loyalty that's second to none (I assert, as I type this on my MacBook, while wearing an Apple Watch, with an iPhone beside me and AppleTV playing in the background).
Data by YCharts.
Apple's bread-and-butter product is undoubtedly the iPhone, which accounts for 47% of its sales, but its continued top-line growth will be powered significantly by its entrance into the financial services space. It first teased those plans in 2014 when it launched Apple Pay, but that was more about convenience than anything.
The debut of Apple Card was a signal the company was getting more serious, but it still relied on a middleman, Goldman Sachs, to handle the underwriting and financial portion. Apple Pay Later -- the company's "buy now, pay later" service -- was the final "if you haven't been paying attention, maybe you should now" move from Apple. And not because of the service itself, but because it's the first time Apple is underwriting and funding loans itself.
The global financial technology market was just over $115 billion in 2021 and is expected to grow to more than $936 billion by 2030. As Apple begins playing in the fintech field, it has an edge that no other fintech can match: its smartphones and devices are in the hands of billions of people worldwide.
People gravitate toward convenience, and what better company to make a traditionally inconvenient system like the financial system simpler than the $2 trillion company that built its empire on doing just that?
2. Walmart
After a share price decline of more than 7% in the past month, Walmart finished 2022 down roughly 2%. There's no cash cow quite like Walmart, as it earns more revenue than any other company in the world. In the third quarter of its fiscal year 2023 (FY23), it made over $152.8 billion in revenue, up 8.7% year over year. This growth likely won't slow down, either.
Amid tough economic conditions and with fears that a recession is looming, Walmart will surely lean on its value pricing to capitalize for the foreseeable future. And it's this value that separates Walmart from competitors like Target (NYSE: TGT). For example, when it comes to groceries, which account for more than half of Walmart's sales, Walmart generally provides lower prices across the board compared to Target.
Beyond the short-term economic conditions that should boost its top line, Walmart is well-positioned for the long term for two main reasons. First, its core business model is undeniable. Value will never go out of style, as people will always be looking to save money. And with Walmart's pricing power, few (if any) businesses can compete with it on the scale at which it operates.
The second reason you can count on Walmart as a long-term investment is its commitment to expanding its revenue streams. It still lags noticeably behind Amazon in e-commerce, but it's taking steps in the right direction. In Q3 FY23, Walmart's e-commerce sales grew 16% year over year, but more impressive was the 30% growth of its global ads business.
Regardless of its lucrative core business, investors should be encouraged by Walmart's growth in non-consumer shopping areas. Invest, and let it lead you into retirement.
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
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Stefon Walters has positions in Apple. The Motley Fool has positions in and recommends Amazon.com, Apple, Goldman Sachs Group, Target, and Walmart. 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.
|
Regardless of how this past year has gone, Apple (NASDAQ: AAPL) and Walmart (NYSE: WMT) are two stocks I believe you should buy and hold until you retire. Apple's bread-and-butter product is undoubtedly the iPhone, which accounts for 47% of its sales, but its continued top-line growth will be powered significantly by its entrance into the financial services space. The debut of Apple Card was a signal the company was getting more serious, but it still relied on a middleman, Goldman Sachs, to handle the underwriting and financial portion.
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Regardless of how this past year has gone, Apple (NASDAQ: AAPL) and Walmart (NYSE: WMT) are two stocks I believe you should buy and hold until you retire. Apple Pay Later -- the company's "buy now, pay later" service -- was the final "if you haven't been paying attention, maybe you should now" move from Apple. The Motley Fool has positions in and recommends Amazon.com, Apple, Goldman Sachs Group, Target, and Walmart.
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Regardless of how this past year has gone, Apple (NASDAQ: AAPL) and Walmart (NYSE: WMT) are two stocks I believe you should buy and hold until you retire. Apple With a market cap of over $2 trillion, Apple is the most valuable public company in the world. Apple Pay Later -- the company's "buy now, pay later" service -- was the final "if you haven't been paying attention, maybe you should now" move from Apple.
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Regardless of how this past year has gone, Apple (NASDAQ: AAPL) and Walmart (NYSE: WMT) are two stocks I believe you should buy and hold until you retire. In Q3 FY23, Walmart's e-commerce sales grew 16% year over year, but more impressive was the 30% growth of its global ads business. The Motley Fool has positions in and recommends Amazon.com, Apple, Goldman Sachs Group, Target, and Walmart.
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17771.0
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2023-01-03 00:00:00 UTC
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US STOCKS-Wall Street drops as Apple, energy stocks weigh
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-drops-as-apple-energy-stocks-weigh
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nan
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nan
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By Amruta Khandekar and Ankika Biswas
Jan 3 (Reuters) - Wall Street's main indexes fell on the first trading day of the year following declines in Apple and energy stocks, with investors awaiting the Federal Reserve's meeting minutes for further clarity on the path of future interest rate hikes.
Most of the major S&P 500 sectors were in the red, with information technology stocks .SPLRCT pulled lower by a 3% drop in the shares of iPhone maker Apple Inc AAPL.O following a report of a rating downgrade by Exane BNP Paribas.
Tesla Inc TSLA.O fell nearly 10% as the electric-vehicle maker missed Wall Street estimates for quarterly deliveries.
Other rate-sensitive technology and growth stocks such as Alphabet Inc GOOGL.O, Meta Platforms Inc META.O, Microsoft MSFT.O and Amazon.com Inc AMZN.O were up between 0.6% and 2.0%.
The energy sector, which logged stellar gains in 2022, fell 1.2% tracking oil prices lower on bleak business activity data from China as well as concerns about the global economic outlook. O/R
"The market, like today, is not very much about fundamentals or news, it's more about the emotion of a start of a new year and investors trying to decide if a recovery is in front of them," said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey.
The main U.S. stock indexes ended 2022 with their steepest annual losses since 2008 against the backdrop of the Fed's fastest pace of rate hikes since the 1980s.
The S&P 500 shed 19.4% in 2022, marking a roughly $8 trillion decline in market cap, while the Nasdaq fell 33.1%, dragged down by growth stocks.
Investors on Wednesday will closely monitor the minutes of the Fed's December policy meeting, when the central bank raised interest rates by 50 basis points after four back-to-back 75-bps hikes and signaled rates could stay higher for a while.
Other economic data due this week includes December's nonfarm payrolls report as well as the ISM manufacturing report, which will give further clues on the strength of the economy and the labor market.
Money market participants see a 68.8% chance the Fed will raise the benchmark rate by 25 bps to 4.50%-4.75% in February, with the rates peaking at 4.94% by June. FEDWATCH
At 10:48 a.m. ET, the Dow Jones Industrial Average .DJI was down 24.82 points, or 0.07%, at 33,122.43, the S&P 500 .SPX was down 9.92 points, or 0.26%, at 3,829.58, and the Nasdaq Composite .IXIC was down 58.43 points, or 0.56%, at 10,408.05.
U.S.-listed Chinese firms such as Alibaba Group Holding Ltd BABA.N, JD.com Inc JD.O, Pinduoduo Inc PDD.O rose between 3% and 6% on post-COVID recovery hopes.
Advancing issues outnumbered decliners for a 1.85-to-1 ratio on the NYSE and a 1.57-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week high and one new low, while the Nasdaq recorded 73 new highs and 23 new lows.
(Reporting by Shubham Batra, Ankika Biswas and Amruta Khandekar 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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Most of the major S&P 500 sectors were in the red, with information technology stocks .SPLRCT pulled lower by a 3% drop in the shares of iPhone maker Apple Inc AAPL.O following a report of a rating downgrade by Exane BNP Paribas. By Amruta Khandekar and Ankika Biswas Jan 3 (Reuters) - Wall Street's main indexes fell on the first trading day of the year following declines in Apple and energy stocks, with investors awaiting the Federal Reserve's meeting minutes for further clarity on the path of future interest rate hikes. O/R "The market, like today, is not very much about fundamentals or news, it's more about the emotion of a start of a new year and investors trying to decide if a recovery is in front of them," said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey.
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Most of the major S&P 500 sectors were in the red, with information technology stocks .SPLRCT pulled lower by a 3% drop in the shares of iPhone maker Apple Inc AAPL.O following a report of a rating downgrade by Exane BNP Paribas. By Amruta Khandekar and Ankika Biswas Jan 3 (Reuters) - Wall Street's main indexes fell on the first trading day of the year following declines in Apple and energy stocks, with investors awaiting the Federal Reserve's meeting minutes for further clarity on the path of future interest rate hikes. The main U.S. stock indexes ended 2022 with their steepest annual losses since 2008 against the backdrop of the Fed's fastest pace of rate hikes since the 1980s.
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Most of the major S&P 500 sectors were in the red, with information technology stocks .SPLRCT pulled lower by a 3% drop in the shares of iPhone maker Apple Inc AAPL.O following a report of a rating downgrade by Exane BNP Paribas. By Amruta Khandekar and Ankika Biswas Jan 3 (Reuters) - Wall Street's main indexes fell on the first trading day of the year following declines in Apple and energy stocks, with investors awaiting the Federal Reserve's meeting minutes for further clarity on the path of future interest rate hikes. Investors on Wednesday will closely monitor the minutes of the Fed's December policy meeting, when the central bank raised interest rates by 50 basis points after four back-to-back 75-bps hikes and signaled rates could stay higher for a while.
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Most of the major S&P 500 sectors were in the red, with information technology stocks .SPLRCT pulled lower by a 3% drop in the shares of iPhone maker Apple Inc AAPL.O following a report of a rating downgrade by Exane BNP Paribas. By Amruta Khandekar and Ankika Biswas Jan 3 (Reuters) - Wall Street's main indexes fell on the first trading day of the year following declines in Apple and energy stocks, with investors awaiting the Federal Reserve's meeting minutes for further clarity on the path of future interest rate hikes. Investors on Wednesday will closely monitor the minutes of the Fed's December policy meeting, when the central bank raised interest rates by 50 basis points after four back-to-back 75-bps hikes and signaled rates could stay higher for a while.
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17772.0
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2023-01-03 00:00:00 UTC
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Should You Follow Warren Buffett's Lead and Buy This Stock?
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AAPL
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https://www.nasdaq.com/articles/should-you-follow-warren-buffetts-lead-and-buy-this-stock
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nan
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nan
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In Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) latest 13F filing (a disclosure all firms must file if their holdings total more than $100 million), a new position in Taiwan Semiconductor (NYSE: TSM) was revealed. With a total investment worth over $4 billion, it's the 10th largest Berkshire position and makes up about 1.4% of its total portfolio.
That's a significant investment for Warren Buffett and the company, so they are clearly excited about something. Additionally, the stock is currently trading around the lowest price it experienced in Q3, so investors can get in at the same or even lower price than Buffett did.
So should investors follow Buffett's lead? Or are there better stocks out there?
Taiwan Semiconductor presents a significant risk investors must understand
By revenue, Taiwan Semiconductor is the largest semiconductor company worldwide. However, it's not a company you or I can purchase directly from -- it supplies chips to large customers.
Apple, Nvidia, and AMD are all clients of Taiwan Semiconductor, which spreads out the risk of one company changing suppliers or going under. However, it's widely known that Apple is Taiwan Semiconductor's largest customer, making up around one-quarter of revenue, while the next closest is around 5%. This might concern some investors, but it doesn't worry Buffett because he is a significant holder of both Apple (his largest holding) and Taiwan Semiconductor (Berkshire owns 1.2% of the company).
As Apple attempts to source more products domestically, Taiwan Semiconductor is answering the call. By investing $40 billion to build two new chip manufacturing plants in Arizona, Taiwan Semiconductor is making one of the largest foreign investments in U.S. history. Apple CEO Tim Cook confirmed Apple would source the chips from these plants, so investors shouldn't be worried about losing Apple's business.
However, one thing investors are worried about (and will likely never be resolved) is its location. China-Taiwan relations are incredibly complex, and many worry about a complete Chinese takeover someday. This would be a massive problem for the company, and the stock would negatively react if an invasion occurred. Again, I don't know if this will ever happen, but it is an investment risk you must understand before taking a position.
That's a major red flag for many investors, but its finances may warrant taking a position regardless.
Revenue growth won't be as good as it has been
In Q3, revenue rose 48% year over year, while net income was up 80%. Furthermore, its profit margin came in at 46%, making it among the world's most profitable companies.
However, the good times aren't projected to last, with the semiconductor shortage easing and spending by the U.S. consumer potentially weakening. The average analyst projects just 2.8% revenue growth in 2023, with earnings per share (EPS) decreasing from $6.45 to $5.96.
Still, the stock trades at an attractive 12.3 times forward earnings when this slowdown is factored in. Compared to its historical trailing price-to-earnings ratio, that's a good price to pay for the stock.
TSM PE Ratio data by YCharts
Once the U.S. economy regains its strength, Taiwan Semiconductor will likely see a surge of demand from Apple and its other clients, which is reflected in analysts' $6.45 EPS 2024 projection.
So should you follow Buffett and buy this stock? I'd say it depends on your risk tolerance. If you're worried about Chinese aggression or a key customer like Apple leaving, you'll want to steer far away from the stock. However, if you're not as worried about either of those actions happening, now seems like a great time to establish a position with its relatively low valuation.
As a side benefit, Taiwan Semiconductor pays a generous 2.5% dividend yield, although the yield will fluctuate due to currency exchange issues. (Taiwan Semiconductor pays its dividend in New Taiwan dollars.)
As with any investment, keeping your exposure to the stock relevant to its risks is essential. I think a smaller position size is warranted, with Taiwan Semiconductor having one major risk that could wreck the company. Nevertheless, I think Buffett and Berkshire likely found a winner in Taiwan Semiconductor, and investors shouldn't be afraid to follow them.
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Keithen Drury has positions in Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Berkshire Hathaway, Nvidia, and Taiwan Semiconductor Manufacturing. 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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This might concern some investors, but it doesn't worry Buffett because he is a significant holder of both Apple (his largest holding) and Taiwan Semiconductor (Berkshire owns 1.2% of the company). TSM PE Ratio data by YCharts Once the U.S. economy regains its strength, Taiwan Semiconductor will likely see a surge of demand from Apple and its other clients, which is reflected in analysts' $6.45 EPS 2024 projection. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Berkshire Hathaway, Nvidia, and Taiwan Semiconductor Manufacturing.
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Taiwan Semiconductor presents a significant risk investors must understand By revenue, Taiwan Semiconductor is the largest semiconductor company worldwide. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Berkshire Hathaway, Nvidia, and Taiwan Semiconductor Manufacturing. 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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Taiwan Semiconductor presents a significant risk investors must understand By revenue, Taiwan Semiconductor is the largest semiconductor company worldwide. This might concern some investors, but it doesn't worry Buffett because he is a significant holder of both Apple (his largest holding) and Taiwan Semiconductor (Berkshire owns 1.2% of the company). 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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Or are there better stocks out there? This might concern some investors, but it doesn't worry Buffett because he is a significant holder of both Apple (his largest holding) and Taiwan Semiconductor (Berkshire owns 1.2% of the company). Again, I don't know if this will ever happen, but it is an investment risk you must understand before taking a position.
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17773.0
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2023-01-03 00:00:00 UTC
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Dow Movers: UNH, DIS
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-unh-dis
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nan
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nan
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In early trading on Tuesday, shares of Walt Disney topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.4%. Year to date, Walt Disney registers a 2.4% gain.
And the worst performing Dow component thus far on the day is UnitedHealth Group, trading down 1.8%. UnitedHealth Group Inc is lower by about 1.8% looking at the year to date performance.
Two other components making moves today are Apple, trading down 1.7%, and Boeing, trading up 2.4% on the day.
VIDEO: Dow Movers: UNH, DIS
The views and 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 early trading on Tuesday, shares of Walt Disney topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.4%. And the worst performing Dow component thus far on the day is UnitedHealth Group, trading down 1.8%. UnitedHealth Group Inc is lower by about 1.8% looking at the year to date performance.
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In early trading on Tuesday, shares of Walt Disney topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.4%. Year to date, Walt Disney registers a 2.4% gain. And the worst performing Dow component thus far on the day is UnitedHealth Group, trading down 1.8%.
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In early trading on Tuesday, shares of Walt Disney topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.4%. And the worst performing Dow component thus far on the day is UnitedHealth Group, trading down 1.8%. Two other components making moves today are Apple, trading down 1.7%, and Boeing, trading up 2.4% on the day.
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In early trading on Tuesday, shares of Walt Disney topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.4%. And the worst performing Dow component thus far on the day is UnitedHealth Group, trading down 1.8%. VIDEO: Dow Movers: UNH, DIS The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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17774.0
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2023-01-03 00:00:00 UTC
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Disney's (DIS) New Avatar Movie Leads the Global Box Office
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AAPL
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https://www.nasdaq.com/articles/disneys-dis-new-avatar-movie-leads-the-global-box-office
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nan
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nan
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The Walt Disney’s DIS latest movie — Avatar: The Way of Water — is on its way to becoming the world’s highest-grossing movie released in 2022 after leading the global box office for a straight third week.
The latest Avatar movie generated $63.4 million in domestic ticket sales in the first three days and $1.38 billion since its release on Dec 16. This puts the movie on track to beat PARAMOUNT GLBL’s PARA Top Gun: Maverick’s total gross return, which has the bragging rights as the highest-grossing movie at the domestic box office for 2022.
Paramount GLBL’s Tom Cruise movie secured $1.49 billion in sales in 2022. However, Avatar became the fastest release to cross the box office’s $1 billion threshold since Spider-Man: No Way Home in December 2021, and the fastest in 2022, the movie is en route to becoming the highest-grossing movie.
In the first week of release, Imax reported that the latest Avatar movie grossed $435 million globally. Of this, Imax delivered $48.8 million, which majorly came from the box offices of North America and China as they recorded $16.5 million and $15.8 million, respectively, making Avatar: The Way of Water IMAX's biggest December global opening of all time.
While Disney did not reveal the budget of the Avatar sequel, James Cameron, the director of the movie, cited that it has to be the third or fourth highest-grossing movie to break even. Being allowed to open up in China might enable the franchise movie to live up to past performance expectations.
The first Avatar movie, released in 2009, grossed nearly $2.9 billion worldwide, with $259 million from China, making it the highest-grossing film of all time. It edged out Avengers: Endgame after a September 2022 rerelease as the movie added $73 million in ticket sales.
The latest box office performance of the Avatar movie will also help Disney fund its key growth drivers like Disney+. However, Disney+ is facing significant competition in the streaming market from Netflix NFLX and Apple’s AAPL Apple TV+. Further, it is spending huge capital to bring original content to fight against stiff competition in an extremely saturated market.
The Walt Disney Company Price and Consensus
The Walt Disney Company price-consensus-chart | The Walt Disney Company Quote
Disney Funds Disney+ to Boost Prospects
Disney is focusing on its streaming service, which will cost the company capital in terms of content and marketing to fend off competition from Netflix and Apple. Netflix is considered a pioneer in the streaming space and is enjoying the first mover’s advantage in the industry. Its solid content portfolio is a major growth driver.
Since the launch of Apple TV+, several Apple original series and films have earned more than 240 awards and 950 nominations, including the acclaimed SAG Awards, Primetime Emmy Awards and Critics Choice Awards. These accolades are catching viewers’ attention and helping Apple win market share from Netflix and Disney.
To fight peers, we expect Disney to expand its Direct-to-Consumer spending by 12.5% year over year. As a result, the Direct-to-Consumer operating loss is expected at $4.88 billion for fiscal 2023 compared with $4 billion in fiscal 2022. The rising spending and losses are expected to keep consolidated margins under pressure.
Also, DIS has an extremely leveraged balance sheet, portraying that it is lending more money to grow the business in a highly fragmented market. Total borrowings were $48.37 billion as of Oct 1, 2022, compared with $46.6 billion as of Jul 2, 2022. Disney’s debt balance compares unfavorably with cash, cash equivalents and current marketable investment securities balance of $11.62 billion.
Such headwinds impacted the share price of Disney, which currently carries a Zacks Rank #5 (Strong Sell). In the six-month period, its shares fell 9.6% compared with the Zacks Media Conglomerates industry’s decline of 10.1%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
However, Disney expects Disney+ to reach profitability by 2024. It is also counting on releases, such as Black Panther: Wakanda Forever, apart from Avatar: The Way of Water, to fuel its subscriber acquisition and fund its top-line growth in the coming quarters.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
IMAX Corporation (IMAX) : Free Stock Analysis Report
Paramount Global (PARA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, Disney+ is facing significant competition in the streaming market from Netflix NFLX and Apple’s AAPL Apple TV+. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report IMAX Corporation (IMAX) : Free Stock Analysis Report Paramount Global (PARA) : Free Stock Analysis Report To read this article on Zacks.com click here. The first Avatar movie, released in 2009, grossed nearly $2.9 billion worldwide, with $259 million from China, making it the highest-grossing film of all time.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report IMAX Corporation (IMAX) : Free Stock Analysis Report Paramount Global (PARA) : Free Stock Analysis Report To read this article on Zacks.com click here. However, Disney+ is facing significant competition in the streaming market from Netflix NFLX and Apple’s AAPL Apple TV+. In the first week of release, Imax reported that the latest Avatar movie grossed $435 million globally.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report IMAX Corporation (IMAX) : Free Stock Analysis Report Paramount Global (PARA) : Free Stock Analysis Report To read this article on Zacks.com click here. However, Disney+ is facing significant competition in the streaming market from Netflix NFLX and Apple’s AAPL Apple TV+. The Walt Disney’s DIS latest movie — Avatar: The Way of Water — is on its way to becoming the world’s highest-grossing movie released in 2022 after leading the global box office for a straight third week.
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However, Disney+ is facing significant competition in the streaming market from Netflix NFLX and Apple’s AAPL Apple TV+. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report IMAX Corporation (IMAX) : Free Stock Analysis Report Paramount Global (PARA) : Free Stock Analysis Report To read this article on Zacks.com click here. The latest box office performance of the Avatar movie will also help Disney fund its key growth drivers like Disney+.
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17775.0
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2023-01-03 00:00:00 UTC
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AAPL June 2025 Options Begin Trading
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AAPL
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https://www.nasdaq.com/articles/aapl-june-2025-options-begin-trading
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nan
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nan
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Investors in Apple Inc (Symbol: AAPL) saw new options become available today, for the June 2025 expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 899 days until expiration the newly available contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAPL options chain for the new June 2025 contracts and identified one put and one call contract of particular interest.
The put contract at the $120.00 strike price has a current bid of $17.40. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $120.00, but will also collect the premium, putting the cost basis of the shares at $102.60 (before broker commissions). To an investor already interested in purchasing shares of AAPL, that could represent an attractive alternative to paying $125.49/share today.
Because the $120.00 strike represents an approximate 4% 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 14.50% return on the cash commitment, or 5.89% 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 $120.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $135.00 strike price has a current bid of $25.60. If an investor was to purchase shares of AAPL stock at the current price level of $125.49/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $135.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 27.98% if the stock gets called away at the June 2025 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 $135.00 strike highlighted in red:
Considering the fact that the $135.00 strike represents an approximate 8% 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 20.40% boost of extra return to the investor, or 8.28% 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 $125.49) 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:
Stocks with Recent Secondaries That Hedge Funds Are Selling
DaVita Average Annual Return
SCPE YTD Return
The views and 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 $135.00 strike highlighted in red: Considering the fact that the $135.00 strike represents an approximate 8% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Apple Inc (Symbol: AAPL) saw new options become available today, for the June 2025 expiration.
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Below is a chart showing AAPL's trailing twelve month trading history, with the $135.00 strike highlighted in red: Considering the fact that the $135.00 strike represents an approximate 8% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Investors in Apple Inc (Symbol: AAPL) saw new options become available today, for the June 2025 expiration.
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Below is a chart showing AAPL's trailing twelve month trading history, with the $135.00 strike highlighted in red: Considering the fact that the $135.00 strike represents an approximate 8% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Apple Inc (Symbol: AAPL) saw new options become available today, for the June 2025 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAPL options chain for the new June 2025 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 June 2025 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 $135.00 strike highlighted in red: Considering the fact that the $135.00 strike represents an approximate 8% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Apple Inc (Symbol: AAPL) saw new options become available today, for the June 2025 expiration.
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17776.0
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2023-01-03 00:00:00 UTC
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What You Own in a Growth or Value ETF Just Changed
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AAPL
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https://www.nasdaq.com/articles/what-you-own-in-a-growth-or-value-etf-just-changed
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nan
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nan
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For many advisors, 2022 was likely the year they rediscovered the merits of value investing. The value style of index-based ETFs that favors stocks with relatively low price-to-earnings and price-to-book ratios significantly outperformed the growth style that prefers companies with strong sales and earnings growth records. Based on VettaFi’s survey data, the majority of advisors expect the value index style to remain in vogue in 2023, while growth investing is likely to be relatively out of favor. However, at the end of 2022, while many were on vacation, there was a major reminder to look inside an index ETF because passive does not mean static.
In late December, the S&P 500 Style Index-based ETFs underwent an annual rebalance and reconstitution process. In addition to scoring all S&P 500 constituents for three-year sales and earnings per share growth rates, the growth factor includes a 12-month price momentum metric. As a result of the annual review, what is now inside the broad growth and value style ETFs, as well as the pure growth and value ETFs tied to the S&P 500 Index, are significantly different from what they were a month ago.
The iShares S&P 500 Growth ETF (IVW) recently had approximately $30 billion in assets, the largest of the S&P 500 Growth-based ETFs ahead of products from iShares and State Street Global Advisors. Late last month, IVW added some mega-cap energy and healthcare companies historically seen as part of the value style, including top-10 holdings Chevron, Exxon Mobil, and UnitedHealth Group, while removing some previously prominent growth companies like Meta Platforms. Following the rebalance, Alphabet, Amazon.com, Apple and Microsoft remain in the growth ETF.
From a sector perspective, as shown below, exposure to energy (7.9% of assets post rebalance, up from 1.4% pre rebalance) and healthcare (21%, 13%) rose sharply. Meanwhile, stakes in the communications (6.6%, 9.8%), consumer discretionary (9.6%, 14%), and information technology sectors (34%, 44%) were slashed.
The inverse occurred for the iShares S&P 500 Value ETF (IVE), a $25 billion slow and steady version of the IVW race horse. Chevron and Exxon Mobil were sold out of IVE and replaced in the top-10 holdings with Amazon.com, Meta Platforms, and Microsoft; in the S&P-style indexes stocks can be both growth and value constituents if they score favorably.
From a sector perspective, information technology became IVE’s second largest sector (17% of assets post rebalance, up from 11% pre rebalance), behind financials (20%, 15%) while consumer discretionary also jumped (10%, 6%). Meanwhile, energy (1.6%, 8%) and healthcare (9.4%, 18%) shrunk notably. For many investors, energy companies have been the classic value companies, but their relative strength in 2022 made them less appealing compared to Bank of America, Cisco Systems, and JPMorgan.
While the index constituent changes directly impact ETF investors, there are broader implications as the S&P style benchmarks are used by some active managers for performance purposes and sector limitations. Value managers might be looking to Amazon.com and Microsoft, while growth managers might turn to energy companies rather than take on benchmark risk.
Amazon.com and Meta are not among the deepest value stocks in the S&P 500 Index, but many of their consumer discretionary and communication services peers now are holdings within the Invesco S&P 500 Pure Value ETF (RPV),which recently had $3.5 billion in assets.
RPV holds 88 of the most undervalued companies in the broader index according to S&P Dow Jones Indexes. The ETF’s weightings were boosted in late December for consumer discretionary (16% of assets post rebalance, 5.9%) and communications services (14%, 5.5%) sectors with the ETF now owning Dish Network, Ford Motor, General Motors, and Paramount Global among its largest positions. Meanwhile, exposure to energy, financials, and healthcare sectors were slashed.
For those advisors seeking hefty exposure to energy and healthcare, the Invesco S&P 500 Pure Growth ETF (RPG) is now a surprising alternative as the $2.2 billion fund has more than half of its assets in the two sectors. With the addition of Chevron, Exxon Mobil, UnitedHealth Group and many others, the weightings climbed for the energy (30% of assets post rebalance, 8% pre rebalance) and healthcare (23%, 17%) sectors, while they fell sharply for information technology (14%, 36%) and consumer discretionary (7%, 14%).
If you came into 2023 looking to a value ETF to outperform growth once again like many advisor peers, make sure you look back under the hood because the securities inside a fund, not its past performance, are the drivers of future results.
For more news, information, and strategy, visit the Innovative ETFs Channel.
Read more on ETFtrends.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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Chevron and Exxon Mobil were sold out of IVE and replaced in the top-10 holdings with Amazon.com, Meta Platforms, and Microsoft; in the S&P-style indexes stocks can be both growth and value constituents if they score favorably. Amazon.com and Meta are not among the deepest value stocks in the S&P 500 Index, but many of their consumer discretionary and communication services peers now are holdings within the Invesco S&P 500 Pure Value ETF (RPV),which recently had $3.5 billion in assets. For those advisors seeking hefty exposure to energy and healthcare, the Invesco S&P 500 Pure Growth ETF (RPG) is now a surprising alternative as the $2.2 billion fund has more than half of its assets in the two sectors.
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From a sector perspective, information technology became IVE’s second largest sector (17% of assets post rebalance, up from 11% pre rebalance), behind financials (20%, 15%) while consumer discretionary also jumped (10%, 6%). The ETF’s weightings were boosted in late December for consumer discretionary (16% of assets post rebalance, 5.9%) and communications services (14%, 5.5%) sectors with the ETF now owning Dish Network, Ford Motor, General Motors, and Paramount Global among its largest positions. With the addition of Chevron, Exxon Mobil, UnitedHealth Group and many others, the weightings climbed for the energy (30% of assets post rebalance, 8% pre rebalance) and healthcare (23%, 17%) sectors, while they fell sharply for information technology (14%, 36%) and consumer discretionary (7%, 14%).
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As a result of the annual review, what is now inside the broad growth and value style ETFs, as well as the pure growth and value ETFs tied to the S&P 500 Index, are significantly different from what they were a month ago. The ETF’s weightings were boosted in late December for consumer discretionary (16% of assets post rebalance, 5.9%) and communications services (14%, 5.5%) sectors with the ETF now owning Dish Network, Ford Motor, General Motors, and Paramount Global among its largest positions. With the addition of Chevron, Exxon Mobil, UnitedHealth Group and many others, the weightings climbed for the energy (30% of assets post rebalance, 8% pre rebalance) and healthcare (23%, 17%) sectors, while they fell sharply for information technology (14%, 36%) and consumer discretionary (7%, 14%).
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Based on VettaFi’s survey data, the majority of advisors expect the value index style to remain in vogue in 2023, while growth investing is likely to be relatively out of favor. Chevron and Exxon Mobil were sold out of IVE and replaced in the top-10 holdings with Amazon.com, Meta Platforms, and Microsoft; in the S&P-style indexes stocks can be both growth and value constituents if they score favorably. Amazon.com and Meta are not among the deepest value stocks in the S&P 500 Index, but many of their consumer discretionary and communication services peers now are holdings within the Invesco S&P 500 Pure Value ETF (RPV),which recently had $3.5 billion in assets.
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17777.0
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2023-01-03 00:00:00 UTC
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2 Stocks to Invest in Virtual Reality
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AAPL
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https://www.nasdaq.com/articles/2-stocks-to-invest-in-virtual-reality-2
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nan
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nan
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The concept of virtual reality (VR) has been around for decades, showing up in various devices throughout the years. However, the technology has only recently begun delivering on promises made 30-plus years ago. The potential for VR is rapidly growing, expanding from gaming to education, healthcare, business collaboration, design, and more.
According to Grand View Research, the VR market was worth $21.83 billion in 2021 and will grow at a compound annual growth rate (CAGR) of 15% until at least 2030. As a result, now is an excellent time to invest in the burgeoning industry.
Here are two VR stocks you won't want to miss.
1. Apple
Numerous reports have revealed that Apple (NASDAQ: AAPL) is hard at work on a VR/augmented reality (AR) headset that could release as early as 2023. Patent filings and multiple acquisitions over the years of VR and AR companies have also all but confirmed that the company has plans to move into the industry.
Apple's headset will likely compete with the Meta Quest Pro VR headset and Sony's PlayStation VR2, due to launch in February. However, Apple's device seems unique in that it is also expected to offer AR features. This is promising as the AR market was worth $25.33 billion in 2021 and is expected to see a CAGR of 40.9% until 2030.
Additionally, similar to the Meta Quest Pro, Apple's headset will not solely focus on games but perhaps offer advanced ways to work, create, and collaborate.
While existing competition might seemingly put Apple at a disadvantage, the company's past displayed the exact opposite. The iPhone maker has proven talent for entering new markets, quickly gaining market share and growing into a dominating position. Apple has done this with smartphones, tablets, Bluetooth headphones, and smartwatches. Each of these technologies was catapulted into mainstream use after Apple launched its custom-designed versions, suggesting the company could do the same for virtual reality.
Apple's stock is a no-brainer investment with its highly profitable iPhone business, a booming services segment, and planned venture into VR. If the past is anything to go by, investing in Apple could be an investment in the future leader of the industry.
2. Nvidia
While investing in a VR headset manufacturer is a great idea, it's also wise to consider buying stock in the companies responsible for the components powering those devices. Nvidia (NASDAQ: NVDA) is a leader in graphics cards (GPUs), powering gaming PCs worldwide and consoles such as the Nintendo Switch with its system on a chip.
With companies such as Meta and Apple looking for real-world applications for virtual reality beyond gaming, GPU designers like Nvidia will be crucial in making it possible. According to Nvidia, VR is one of the most "demanding PC applications," with its high display resolutions (in 4K and above), but also a minimum refresh rate of 90Hz and "razor-thin latency tolerances." However, the company promises its high-end GeForce RTX GPUs are up to the task. Nvidia also created a software developer kit called VRWorks that enables application and headset developers to deliver VR experiences with its chips.
Moreover, Nvidia is no stranger to partnering with the biggest names in tech to get its products out into the wild. In addition to a partnership with Nintendo, the company recently announced a collaboration with Microsoft to build a massive AI supercomputer where its GPUs will be used alongside the cloud computing platform Azure. There's no reason why Nvidia's technology will not soon be powering VR headsets as the industry expands.
Nvidia had a tough 2022, with its shares plunging 51% year over year as a decline in the consumer GPU market concerned investors. However, the company is also home to a booming data center business, a lucrative console partnership with Nintendo, and a promising collaboration with Microsoft.
Along with its potential role in VR, Nvidia is an excellent pick if you're looking to add a virtual reality stock to your portfolio.
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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. Dani Cook has no position in any of the stocks 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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Apple Numerous reports have revealed that Apple (NASDAQ: AAPL) is hard at work on a VR/augmented reality (AR) headset that could release as early as 2023. Additionally, similar to the Meta Quest Pro, Apple's headset will not solely focus on games but perhaps offer advanced ways to work, create, and collaborate. Nvidia (NASDAQ: NVDA) is a leader in graphics cards (GPUs), powering gaming PCs worldwide and consoles such as the Nintendo Switch with its system on a chip.
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Apple Numerous reports have revealed that Apple (NASDAQ: AAPL) is hard at work on a VR/augmented reality (AR) headset that could release as early as 2023. Apple's headset will likely compete with the Meta Quest Pro VR headset and Sony's PlayStation VR2, due to launch in February. With companies such as Meta and Apple looking for real-world applications for virtual reality beyond gaming, GPU designers like Nvidia will be crucial in making it possible.
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Apple Numerous reports have revealed that Apple (NASDAQ: AAPL) is hard at work on a VR/augmented reality (AR) headset that could release as early as 2023. Nvidia While investing in a VR headset manufacturer is a great idea, it's also wise to consider buying stock in the companies responsible for the components powering those devices. With companies such as Meta and Apple looking for real-world applications for virtual reality beyond gaming, GPU designers like Nvidia will be crucial in making it possible.
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Apple Numerous reports have revealed that Apple (NASDAQ: AAPL) is hard at work on a VR/augmented reality (AR) headset that could release as early as 2023. There's no reason why Nvidia's technology will not soon be powering VR headsets as the industry expands. However, the company is also home to a booming data center business, a lucrative console partnership with Nintendo, and a promising collaboration with Microsoft.
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17778.0
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2023-01-03 00:00:00 UTC
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Is iShares Core S&P U.S. Growth ETF (IUSG) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-ishares-core-sp-u.s.-growth-etf-iusg-a-strong-etf-right-now-5
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Launched on 07/24/2000, the iShares Core S&P U.S. Growth ETF (IUSG) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is sponsored by Blackrock. It has amassed assets over $11.36 billion, making it one of the largest ETFs in the Style Box - All Cap Growth. This particular fund seeks to match the performance of the S&P 900 Growth Index before fees and expenses.
The S&P 900 Growth Index measures the performance of the large and mid-capitalization growth sector of the U.S. equity market.
Cost & Other Expenses
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.
With one of the least expensive products in the space, this ETF has annual operating expenses of 0.04%.
The fund has a 12-month trailing dividend yield of 1.03%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
For IUSG, it has heaviest allocation in the Information Technology sector --about 43% of the portfolio --while Healthcare and Consumer Discretionary round out the top three.
Taking into account individual holdings, Apple Inc (AAPL) accounts for about 13.87% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
Performance and Risk
Year-to-date, the iShares Core S&P U.S. Growth ETF has added about 0% so far, and is down about -28.75% over the last 12 months (as of 01/03/2023). IUSG has traded between $78.88 and $115.40 in this past 52-week period.
The fund has a beta of 1.05 and standard deviation of 28.02% for the trailing three-year period, which makes IUSG a medium risk choice in this particular space. With about 480 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core S&P U.S. Growth ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Growth segment of the market. However, there are other ETFs in the space which investors could consider.
First Trust US Equity Opportunities ETF (FPX) tracks IPOX-100 U.S. Index and the iShares Morningstar Growth ETF (ILCG) tracks MORNINGSTAR US LARGE-MID CP BRD GRWTH ID. First Trust US Equity Opportunities ETF has $802.54 million in assets, iShares Morningstar Growth ETF has $1.44 billion. FPX has an expense ratio of 0.57% and ILCG charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Growth.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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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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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares Core S&P U.S. Growth ETF (IUSG): 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
First Trust US Equity Opportunities ETF (FPX): ETF Research Reports
iShares Morningstar Growth ETF (ILCG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 13.87% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Core S&P U.S. Growth ETF (IUSG): 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 First Trust US Equity Opportunities ETF (FPX): ETF Research Reports iShares Morningstar Growth ETF (ILCG): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $11.36 billion, making it one of the largest ETFs in the Style Box - All Cap Growth.
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Click to get this free report iShares Core S&P U.S. Growth ETF (IUSG): 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 First Trust US Equity Opportunities ETF (FPX): ETF Research Reports iShares Morningstar Growth ETF (ILCG): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 13.87% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Launched on 07/24/2000, the iShares Core S&P U.S. Growth ETF (IUSG) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market.
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Click to get this free report iShares Core S&P U.S. Growth ETF (IUSG): 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 First Trust US Equity Opportunities ETF (FPX): ETF Research Reports iShares Morningstar Growth ETF (ILCG): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 13.87% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Launched on 07/24/2000, the iShares Core S&P U.S. Growth ETF (IUSG) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 13.87% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Core S&P U.S. Growth ETF (IUSG): 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 First Trust US Equity Opportunities ETF (FPX): ETF Research Reports iShares Morningstar Growth ETF (ILCG): ETF Research Reports To read this article on Zacks.com click here. Launched on 07/24/2000, the iShares Core S&P U.S. Growth ETF (IUSG) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market.
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17779.0
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2023-01-03 00:00:00 UTC
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Should Schwab Fundamental U.S. Large Company Index ETF (FNDX) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-schwab-fundamental-u.s.-large-company-index-etf-fndx-be-on-your-investing-radar-6
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nan
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nan
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Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Schwab Fundamental U.S. Large Company Index ETF (FNDX) is a passively managed exchange traded fund launched on 08/13/2013.
The fund is sponsored by Charles Schwab. It has amassed assets over $9.93 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that find themselves in the large cap category 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.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull 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 0.25%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.07%.
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 14.90% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.39% of total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT).
The top 10 holdings account for about 19.55% of total assets under management.
Performance and Risk
FNDX seeks to match the performance of the Russell RAFI US Large Co. Index before fees and expenses. The Russell RAFI US Large Company Index measures the performance of the large company size segment by fundamental overall company scores.
The ETF has added roughly 0% so far this year and is down about -6.94% in the last one year (as of 01/03/2023). In the past 52-week period, it has traded between $47.76 and $59.90.
The ETF has a beta of 1.01 and standard deviation of 25.40% for the trailing three-year period, making it a medium risk choice in the space. With about 729 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab Fundamental U.S. Large Company Index 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, FNDX is an outstanding option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $54.20 billion in assets, Vanguard Value ETF has $97.90 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.39% of total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $9.93 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.39% of total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Schwab Fundamental U.S. Large Company Index ETF (FNDX) is a passively managed exchange traded fund launched on 08/13/2013.
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Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.39% of total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Alternatives Schwab Fundamental U.S. Large Company Index ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.39% of total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Schwab Fundamental U.S. Large Company Index ETF (FNDX) is a passively managed exchange traded fund launched on 08/13/2013.
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17780.0
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2023-01-03 00:00:00 UTC
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The Zacks Analyst Blog Highlights Apple, Johnson & Johnson, CSX, American International Group and CenterPoint Energy
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AAPL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-apple-johnson-johnson-csx-american-international-group
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nan
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For Immediate Release
Chicago, IL – January 3, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple Inc. AAPL, Johnson & Johnson JNJ, CSX Corp. CSX, American International Group, Inc. AIG and CenterPoint Energy, Inc. CNP.
Here are highlights from Friday’s Analyst Blog:
Earnings Outlook for 2023, and Featured Reports for Apple, J&J and Others
The Zacks Research Daily presents the best research output of our analyst team. Today’s Research Daily features an update on the evolving earnings picture for 2023 and new research reports on 16 major stocks, including Apple Inc., Johnson & Johnson and CSX Corp. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Earnings Outlook for 2023
Multiple forces are at play in driving stock prices at any point in time. But the two biggest forces in the long run are interest rates and corporate earnings, with our focus in this note solely on the earnings part.
Aggregate bottom-up earnings for the S&P 500 index are currently expected to be up +2.2% in 2023 on +2.1% higher revenues. This would follow the +4.7% earnings growth in 2022 on +10.6% higher revenues.
Estimates for 2023 have been steadily coming down, after peaking in mid-April 2022. In the aggregate, S&P 500 earnings estimates have declined by -9.4% since mid-April for the index as a whole and -11.8% excluding the Energy sector.
Estimates have been cut for 12 of the 16 Zacks sectors, with the biggest cuts to estimates for the Construction (Negative revision of -29.6% since mid-April), Consumer Discretionary (-21.5%), Retail (-21.2%), Tech (-19.6%), Industrials (-13.8%), Aerospace (-13.7%), and Transportation (-10.2%). Estimates for Energy, Utilities, Autos and Basic Materials have modestly increased.
The future course of revisions will depend on how the underlying economic outlook unfolds in response to the Fed tightening cycle.
I am of the opinion that a relatively benign outcome for the U.S. economy where it is able to dodge a nasty recession will be consistent with an earnings outlook that is roughly in-line with current earnings estimates.
I am not suggesting that estimates do not need to come down further. But rather than aggregate estimates outside of the Energy sector already down by almost -12% since mid-April, there may not be a whole lot of further room to fall as long as the economic outlook doesn't materially deteriorate.
Today's Featured Research Reports
Shares of Apple have declined -27.9% over the past year against the Zacks Tech sector's decline of -37.3% and the S&P 500 index's -20.9% pullback. The Zacks analyst believes that Apple’s holiday season iPhone shipments are expected to suffer from disruptions at its Chinese partner Foxconn’s factory in Zhengzhou. We expect Apple to ship roughly 70 million iPhones in the first quarter of fiscal 2023.
The company expects year-over-year revenue growth to decelerate in the fiscal first quarter compared with the fiscal fourth quarter due to unfavorable forex. Mac revenues are expected to be negatively impacted by forex. Apple expects Mac revenues to decline substantially year over year during the December quarter.
Services revenue growth is expected to be negatively impacted by challenging macroeconomic conditions, unfavorable forex, as well as weakness in digital advertising and gaming. Nevertheless, a growing subscriber base in the Services business and a strong liquidity position are key catalysts.
(You can read the full research report on Apple here >>>)
Shares of Johnson & Johnson have gained +3.1% over the past year against the Zacks Large Cap Pharmaceuticals industry’s gain of +12.3%. The Zacks analyst believes that J&J’s sales in the MedTech unit are recovering and the company is focusing on growing this business through new products. J&J is making rapid progress with its pipeline and line extensions.
However, macroeconomic headwinds like inflationary pressure, rising input costs and negative currency impact are hurting margins. Headwinds like generic competition and pricing pressure continue. Stelara’s upcoming loss of exclusivity in 2023 is a concern. Though J&J has taken meaningful steps to resolve its talc and opioid litigation, they continue to remain an overhang on the stock.
(You can read the full research report on Johnson & Johnson here >>>)
CSX shares have outperformed the Zacks Transportation - Rail industry over the past six months (+6.5% vs. +3.5%). The Zacks analyst believes that CSX is benefiting from higher export coal volumes, domestic intermodal shipments and favorable pricing. With the demand scenario expected to remain strong, despite the current market bloodbath, management anticipates double-digit growth in operating income and revenues for 2022 from 2021's reported levels.
However, supply-chain disturbances are hurting CSX's operations. Weakness in the merchandise segment due to lower volumes of fertilizers is concerning. High costs, primarily due to escalating fuel expenses, pose a threat to CSX’s bottom line. High capital expenditures are also worrisome.
(You can read the full research report on CSX here >>>)
Other noteworthy reports we are featuring today include American International Group, Inc. and CenterPoint Energy, Inc.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include: Apple Inc. AAPL, Johnson & Johnson JNJ, CSX Corp. CSX, American International Group, Inc. AIG and CenterPoint Energy, Inc. CNP. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report CSX Corporation (CSX) : Free Stock Analysis Report American International Group, Inc. (AIG) : Free Stock Analysis Report CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks analyst believes that Apple’s holiday season iPhone shipments are expected to suffer from disruptions at its Chinese partner Foxconn’s factory in Zhengzhou.
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Stocks recently featured in the blog include: Apple Inc. AAPL, Johnson & Johnson JNJ, CSX Corp. CSX, American International Group, Inc. AIG and CenterPoint Energy, Inc. CNP. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report CSX Corporation (CSX) : Free Stock Analysis Report American International Group, Inc. (AIG) : Free Stock Analysis Report CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report To read this article on Zacks.com click here. (You can read the full research report on CSX here >>>) Other noteworthy reports we are featuring today include American International Group, Inc. and CenterPoint Energy, Inc. Why Haven’t You Looked at Zacks' Top Stocks?
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report CSX Corporation (CSX) : Free Stock Analysis Report American International Group, Inc. (AIG) : Free Stock Analysis Report CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: Apple Inc. AAPL, Johnson & Johnson JNJ, CSX Corp. CSX, American International Group, Inc. AIG and CenterPoint Energy, Inc. CNP. Today’s Research Daily features an update on the evolving earnings picture for 2023 and new research reports on 16 major stocks, including Apple Inc., Johnson & Johnson and CSX Corp.
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Stocks recently featured in the blog include: Apple Inc. AAPL, Johnson & Johnson JNJ, CSX Corp. CSX, American International Group, Inc. AIG and CenterPoint Energy, Inc. CNP. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report CSX Corporation (CSX) : Free Stock Analysis Report American International Group, Inc. (AIG) : Free Stock Analysis Report CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report To read this article on Zacks.com click here. In the aggregate, S&P 500 earnings estimates have declined by -9.4% since mid-April for the index as a whole and -11.8% excluding the Energy sector.
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17781.0
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2023-01-03 00:00:00 UTC
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If You Invested $100 in Berkshire Hathaway in 1965, This Is How Much You Would Have Today
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https://www.nasdaq.com/articles/if-you-invested-%24100-in-berkshire-hathaway-in-1965-this-is-how-much-you-would-have-today
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Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) has gained quite a reputation since legendary investor Warren Buffett took over the company in 1965. Since that takeover nearly six decades ago, Berkshire grew to become one of the largest companies in the world, earning Buffett that reputation as one of the greatest investors ever. Berkshire's stock emphatically beat the S&P 500, a broader benchmark for the market, in this time frame as well and generated some incredible returns for investors.
Let's go back to the beginning and look at how much an investor who purchased $100 of Berkshire's stock in 1965 would have now if they held on to the shares.
Building a dynasty
In 1962, a much younger Warren Buffett took interest in Berkshire Hathaway, which at the time was a textile manufacturer that had been struggling along with the U.S. textile industry. Buffett and his firm began buying shares in 1962, and three years later Buffett owned the company.
Image source: Getty Images.
A few years after that, Buffett began his foray into the insurance space, an ideal path for a guy who likes to invest in individual stocks because the insurance business generates cash from premiums that can be invested in bonds or stocks. Berkshire began investing in GEICO in the 1970s and would go on to purchase the company outright in 1996.
Since then, Berkshire also waded into other sectors and owned companies in the publishing, banking, mortgage, and energy sectors, and the company is still heavily involved in the mortgage and energy sectors today.
Also in 1996, Berkshire created Class B shares in an effort to give smaller investors better access to the large conglomerate. Class B shares went through a stock split later on, but the original Class A shares have never undergone a split, and Buffett has said they never will.
In 2009, during the Great Recession, Buffett and Berkshire made a huge bet on the recovery of the U.S. economy and paid $34 billion to purchase Burlington Northern Santa Fe, the largest freight railroad company in North America. Berkshire also assumed $10 billion of the company's debt, making the purchase Berkshire's largest ever.
Buffett continued to build Berkshire's large equities portfolio. Today, that portfolio has more than $313 billion in invested assets, as well as $109 billion in cash. Buffett continues to invest in a lot of the industries he loves, including banks, insurance, media companies, and consumer staples.
In the 21st century, Berkshire also got more involved in the tech sector, especially as Buffett, who is now 92 years old but still serves as CEO, handed off responsibility to younger members of the team. Berkshire began buying shares of consumer tech giant Apple (NASDAQ: AAPL) in 2016, and the company now makes up a staggering 37% of Berkshire's invested assets.
Nearly all of Buffett's moves have translated into phenomenal performance, with Berkshire's stock posting compound annual gains of more than 20% between 1965 and 2021. The S&P 500 posted only 10.5% average annual gains over the same time period (including dividends). Berkshire also soundly beat the market during the difficult year we just had in 2022.
If you invested $100 in 1965...
When Buffett took control of Berkshire Hathaway in 1965, shares were valued at about $19. Today, Class A shares trade for around $459,800, which represents a mind-boggling return of 2,419,900%. That means $100 invested in 1965 would now be worth roughly $2.42 million.
That also compares very favorably with a $100 investment in the S&P 500, which would be worth only about $22,400 now, which is certainly nothing to scoff at but just a fraction of what you would have made having invested in Berkshire.
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Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Berkshire began buying shares of consumer tech giant Apple (NASDAQ: AAPL) in 2016, and the company now makes up a staggering 37% of Berkshire's invested assets. Since that takeover nearly six decades ago, Berkshire grew to become one of the largest companies in the world, earning Buffett that reputation as one of the greatest investors ever. In 2009, during the Great Recession, Buffett and Berkshire made a huge bet on the recovery of the U.S. economy and paid $34 billion to purchase Burlington Northern Santa Fe, the largest freight railroad company in North America.
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Berkshire began buying shares of consumer tech giant Apple (NASDAQ: AAPL) in 2016, and the company now makes up a staggering 37% of Berkshire's invested assets. Since then, Berkshire also waded into other sectors and owned companies in the publishing, banking, mortgage, and energy sectors, and the company is still heavily involved in the mortgage and energy sectors today. 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 began buying shares of consumer tech giant Apple (NASDAQ: AAPL) in 2016, and the company now makes up a staggering 37% of Berkshire's invested assets. A few years after that, Buffett began his foray into the insurance space, an ideal path for a guy who likes to invest in individual stocks because the insurance business generates cash from premiums that can be invested in bonds or stocks. 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 began buying shares of consumer tech giant Apple (NASDAQ: AAPL) in 2016, and the company now makes up a staggering 37% of Berkshire's invested assets. Buffett and his firm began buying shares in 1962, and three years later Buffett owned the company. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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17782.0
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2023-01-03 00:00:00 UTC
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Being ready for anything is top priority for 2023
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AAPL
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https://www.nasdaq.com/articles/being-ready-for-anything-is-top-priority-for-2023
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nan
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Reuters
Reuters
LONDON (Reuters Breakingviews) - There was a time when forecasting was a relatively simple pursuit. The most reliable approach was to assume that the coming year would turn out much like the previous one. Many corporate chieftains and money managers owed their glittering reputations to this simple rule of thumb. No longer. In the past three years, the world has been rocked by a string of unexpected and epoch-defining events. Little wonder that executives, policymakers and financiers are anxiously scanning the horizon to work out what is coming next.
Download the book
Read online
At the start of 2020, many world leaders identified climate change and the shift from fossil fuels to renewable energy as the planet’s most pressing challenge. Within a few weeks, they were confronting a deadly pandemic. Twelve months ago, the debate shifted to how quickly the world would recover from Covid-19. Then Russian President Vladimir Putin invaded Ukraine, upending geopolitical relations and disrupting global markets for energy and food.
Anyone trying to think about what 2023 will bring is confronted by a staggering array of possibilities. This is why many chief executives and investors have dispensed with forecasts, preferring to plan for a range of scenarios. Some of these are specific: What happens if Chinese President Xi Jinping orders an invasion of Taiwan? What if Putin unleashes tactical nuclear weapons in Ukraine? What if a cyberattack cripples critical infrastructure? In many cases, just envisaging possibilities requires a leap of imagination.
It is in this spirit that Breakingviews once again embarks on its annual effort to guide readers through the trends and events that might shape economies, corporate fortunes and asset prices in the year ahead. The aim is not to hit the bullseye of forecasting accuracy, but to offer a way to think about some of the decisions that may crop up in the next twelve months.
The first challenge is to narrow down the range of topics. Geopolitical questions loom large: like most occupants of corporate boardrooms, our columnists are pondering the effects of tensions between the United States and China, not just on supply chains for Apple’s iPhones and semiconductors, but also on raw materials like those vital to making electric-car batteries. The intensifying superpower rivalry may produce new winners, like a Vietnamese challenger to Tesla. It could also revive U.S. cities that have languished for years.
In finance, the big unknown is working out who else will be submerged by the rising tide of global interest rates. More expensive money has already stalled corporate dealmaking, sideswiped stock market valuations and plunged cryptocurrencies into a deep freeze. Even if central banks pivot away from aggressive rate hikes in 2023, entire industries and asset classes will grapple with financial conditions they have not experienced for at least 15 years. Meanwhile, expect the Bank of Japan to revisit its ultra-loose monetary policy, while Western central banks quietly shift their inflation targets.
Another reasonable bet is that the planet will continue to get warmer, producing more extreme events like the floods that devastated Pakistan in 2022. Though the invasion of Ukraine pumped up the price of fossil fuels, it has spurred Western countries to speed the shift to renewable energy. That is reordering old energy alliances. Watch whether the United Arab Emirates, which hosts the COP28 climate conference in November 2023, distances itself from the OPEC oil cartel.
Encumbered by lower stock prices and pricier financing, merger activity will remain subdued in 2023. Still, M&A bankers should find some bustling pockets: Big Pharma may aim its financial firepower at cheaper targets. Pet businesses could become tasty snacks for consumer giants. Big companies like Mark Zuckerberg’s Meta Platforms may break themselves up. And as always, adversity will deliver some surprising good news: how about a divided U.S. Congress mounting a bipartisan effort to raise the country’s debt ceiling?
Identifying possible scenarios is just the start, though. The harder bit is planning what to do if they materialise, and working out which extreme outcomes to prepare for. All these decisions involve real expenses, and the opportunity cost of investments shelved or innovations delayed. Such is the complicated and unpredictable world that we now inhabit. The only place to start is by thinking about what comes next.
Follow @peter_tl on Twitter
(This is a Breakingviews prediction for 2023. To see more of our predictions, click here.)
(Editing by Robyn Mak and Katrina Hamlin)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Download the book Read online At the start of 2020, many world leaders identified climate change and the shift from fossil fuels to renewable energy as the planet’s most pressing challenge. It is in this spirit that Breakingviews once again embarks on its annual effort to guide readers through the trends and events that might shape economies, corporate fortunes and asset prices in the year ahead. Geopolitical questions loom large: like most occupants of corporate boardrooms, our columnists are pondering the effects of tensions between the United States and China, not just on supply chains for Apple’s iPhones and semiconductors, but also on raw materials like those vital to making electric-car batteries.
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Download the book Read online At the start of 2020, many world leaders identified climate change and the shift from fossil fuels to renewable energy as the planet’s most pressing challenge. Then Russian President Vladimir Putin invaded Ukraine, upending geopolitical relations and disrupting global markets for energy and food. Though the invasion of Ukraine pumped up the price of fossil fuels, it has spurred Western countries to speed the shift to renewable energy.
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Download the book Read online At the start of 2020, many world leaders identified climate change and the shift from fossil fuels to renewable energy as the planet’s most pressing challenge. It is in this spirit that Breakingviews once again embarks on its annual effort to guide readers through the trends and events that might shape economies, corporate fortunes and asset prices in the year ahead. Though the invasion of Ukraine pumped up the price of fossil fuels, it has spurred Western countries to speed the shift to renewable energy.
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LONDON (Reuters Breakingviews) - There was a time when forecasting was a relatively simple pursuit. This is why many chief executives and investors have dispensed with forecasts, preferring to plan for a range of scenarios. Though the invasion of Ukraine pumped up the price of fossil fuels, it has spurred Western countries to speed the shift to renewable energy.
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17783.0
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2023-01-02 00:00:00 UTC
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3 Dividend-Paying Tech Stocks to Buy in January
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https://www.nasdaq.com/articles/3-dividend-paying-tech-stocks-to-buy-in-january-1
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If you're looking to give your portfolio a refresh to start the new year, one great way to do so is by adding some dividend-paying tech stocks to it. They offer an unusual combination of income and growth, and better yet, they have an established pattern of outperforming the market. These three in particular look like top stock buys in January.
Image source: Getty Images.
1. Microsoft
Microsoft (NASDAQ: MSFT) is one of the best-performing stocks of all time, and it's easy to see why. It has dominated the enterprise software space for more than a generation and is diversified across multiple product lines in a way that few other tech giants are.
Its major offerings include its popular Office software suite, its Azure cloud infrastructure business, and its Windows operating systems. The company also has strong positions in areas like gaming with the Xbox, social media through LinkedIn, and a wide range of other software businesses such as Github.
Microsoft also enjoys massive competitive advantages as evidenced by its huge operating margins, which came in at 43% in its most recently reported quarter.
The tech giant's dividend isn't going to turn any heads with its yield of 1.2%, but the company has reliably grown its payouts over the past 15 years.
More importantly, Microsoft's fast-growing cloud division and its diversification make it a good bet to ride out today's macroeconomic volatility. While the company is sensitive to changes in business spending, there's little doubt that it would emerge from a potential recession just as strong as it is now and could easily gain market share from weaker software companies. A recession could also set it up to make some relatively cheap acquisitions, which would benefit it over the long term.
2. Taiwan Semiconductor
Taiwan Semiconductor (NYSE: TSM) just got the Warren Buffett stamp of approval as Berkshire Hathaway bought more than $4 billion worth of the chipmaker's stock in the third quarter, and TSMC passes the Buffett test with flying colors.
The company manufactures chips on behalf of tech powerhouses like AMD, Apple, Broadcom, and others, and it has a wide economic moat with a more than 50% share of the semiconductor foundry market.
Taiwan Semi is also a solid dividend payer with a yield of 2.4% at its current share price. Semiconductor stocks sold off sharply in 2022, and TSMC shares fell along with the sector, but the company is more resistant to the cyclical nature of the chip sector than its peers because it's mostly immune to price shifts in chips since it isn't selling them to end users.
The company has also posted strong revenue growth and wide profit margins recently. In Q3 revenue rose 29% year over year to $20.2 billion, and it had a profit margin of 46%.
Demand for semiconductors continues to grow, and TSMC is spending $40 billion on two new manufacturing facilities in Arizona, paving the way for a significant expansion. The stock also looks well priced at the moment at a price-to-earnings (P/E) ratio of 13, making now a great time to buy.
3. Broadcom
Staying within the semiconductor sector, Broadcom (NASDAQ: AVGO) also presents a good option for investors looking for dividend-paying tech stocks. Broadcom designs chips, but it has avoided the headwinds that have impacted other chipmakers since it doesn't focus on PCs and mobile devices.
Instead, Broadcom makes chips for data centers, wireless routers, modems, and other connectivity devices, as well as local area network infrastructure and fiber optics. Even in a difficult environment for semiconductor stocks, Broadcom has continued to grow its top line.
In its fiscal fourth quarter, which ended Oct. 30, the company reported a 21% revenue increase to $8.93 billion, and its adjusted earnings per share jumped from $7.81 to $10.45. Management foresees that solid growth continuing into 2023 as it called for 16% top-line growth in the first quarter of its fiscal 2023. That forecast indicates that the company isn't suffering as much as many of its peers are from the macroheadwinds.
The stock also has an enviable track record. It's up by 1,700% over the last decade, and at the current share price, its dividend yields 3.4%. Management has increased the dividend rapidly as well and just hiked its payout again by 12%.
If you're looking for a tech stock that offers a combination of growth, income, and recession resistance, it's hard to find a better option than Broadcom.
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
Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Microsoft, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Its major offerings include its popular Office software suite, its Azure cloud infrastructure business, and its Windows operating systems. The company manufactures chips on behalf of tech powerhouses like AMD, Apple, Broadcom, and others, and it has a wide economic moat with a more than 50% share of the semiconductor foundry market. Instead, Broadcom makes chips for data centers, wireless routers, modems, and other connectivity devices, as well as local area network infrastructure and fiber optics.
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The company has also posted strong revenue growth and wide profit margins recently. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Microsoft, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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Semiconductor stocks sold off sharply in 2022, and TSMC shares fell along with the sector, but the company is more resistant to the cyclical nature of the chip sector than its peers because it's mostly immune to price shifts in chips since it isn't selling them to end users. Broadcom Staying within the semiconductor sector, Broadcom (NASDAQ: AVGO) also presents a good option for investors looking for dividend-paying tech stocks. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Jeremy Bowman has no position in any of the stocks mentioned.
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The tech giant's dividend isn't going to turn any heads with its yield of 1.2%, but the company has reliably grown its payouts over the past 15 years. The company has also posted strong revenue growth and wide profit margins recently. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Microsoft, and Taiwan Semiconductor Manufacturing.
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17784.0
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2023-01-02 00:00:00 UTC
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Foxconn's COVID-hit China plant close to resuming full production -sources
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https://www.nasdaq.com/articles/foxconns-covid-hit-china-plant-close-to-resuming-full-production-sources
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By Yimou Lee
TAIPEI, Jan 3 (Reuters) - Foxconn's COVID-hit iPhone plant in China's Zhengzhou city is almost back to full production, with its December shipments reaching about 90% of initial plans, two people with direct knowledge of the matter said.
Foxconn, formally Hon Hai Precision Industry Co Ltd 2317.TW, declined to comment.
Production at the world's largest manufacturing facility of Apple Inc's AAPL.O iPhones was heavily affected late last year after a COVID-19 outbreak and curbs taken to control the virus prompted thousands of workers to leave. It was also hit by a bout of worker unrest over payment issues.
Foxconn has been offering bonuses to attract new workers and convince those still there to stay on. A company source told Reuters last month that it was aiming for the plant to resume full production around late December to early January.
"Production has almost fully resumed," said one of the people on Tuesday, who declined to be identified as the information was private.
The second person said production was nearly back to normal but that company officials remained cautious over the outlook due to a spike of COVID-19 cases across China.
"We expect a peak for cases before or after the Lunar New Year holiday," the person said, referring to the week-long break that starts on Jan 21. "We don't know if that will cause any issues."
The plant is able to accommodate as many as 300,000 workers.
The Zhengzhou plant's troubles highlighted the difficulties companies and workers had in adhering to China's zero-COVID-19 policy.
(Reporting by Yimou Lee in Taipei; Writing by Brenda Goh; Editing by Christian Schmollinger and Christopher Cushing)
((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters Messaging: brenda.goh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Production at the world's largest manufacturing facility of Apple Inc's AAPL.O iPhones was heavily affected late last year after a COVID-19 outbreak and curbs taken to control the virus prompted thousands of workers to leave. By Yimou Lee TAIPEI, Jan 3 (Reuters) - Foxconn's COVID-hit iPhone plant in China's Zhengzhou city is almost back to full production, with its December shipments reaching about 90% of initial plans, two people with direct knowledge of the matter said. A company source told Reuters last month that it was aiming for the plant to resume full production around late December to early January.
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Production at the world's largest manufacturing facility of Apple Inc's AAPL.O iPhones was heavily affected late last year after a COVID-19 outbreak and curbs taken to control the virus prompted thousands of workers to leave. By Yimou Lee TAIPEI, Jan 3 (Reuters) - Foxconn's COVID-hit iPhone plant in China's Zhengzhou city is almost back to full production, with its December shipments reaching about 90% of initial plans, two people with direct knowledge of the matter said. A company source told Reuters last month that it was aiming for the plant to resume full production around late December to early January.
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Production at the world's largest manufacturing facility of Apple Inc's AAPL.O iPhones was heavily affected late last year after a COVID-19 outbreak and curbs taken to control the virus prompted thousands of workers to leave. By Yimou Lee TAIPEI, Jan 3 (Reuters) - Foxconn's COVID-hit iPhone plant in China's Zhengzhou city is almost back to full production, with its December shipments reaching about 90% of initial plans, two people with direct knowledge of the matter said. A company source told Reuters last month that it was aiming for the plant to resume full production around late December to early January.
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Production at the world's largest manufacturing facility of Apple Inc's AAPL.O iPhones was heavily affected late last year after a COVID-19 outbreak and curbs taken to control the virus prompted thousands of workers to leave. By Yimou Lee TAIPEI, Jan 3 (Reuters) - Foxconn's COVID-hit iPhone plant in China's Zhengzhou city is almost back to full production, with its December shipments reaching about 90% of initial plans, two people with direct knowledge of the matter said. Foxconn, formally Hon Hai Precision Industry Co Ltd 2317.TW, declined to comment.
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17785.0
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2023-01-02 00:00:00 UTC
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Foxconn Zhengzhou plant's Dec shipments hit 90% of original target - source
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AAPL
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https://www.nasdaq.com/articles/foxconn-zhengzhou-plants-dec-shipments-hit-90-of-original-target-source
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TAIPEI, Jan 3 (Reuters) - December shipments from Foxconn's 2317.TW Zhengzhou iPhone plant in China were 90% of the firm's initial plans, a source with direct knowledge of the matter said, as the facility strives to recover from its COVID-induced woes.
Foxconn declined to comment.
The world's largest iPhone manufacturing facility was hit late last year by a COVID-19 outbreak that prompted worker departures and unrest as well as production disruptions.
(Reporting by Yimou Lee in Taipei, Writing by Brenda Goh; Editing by Christian Schmollinger)
((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters Messaging: brenda.goh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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TAIPEI, Jan 3 (Reuters) - December shipments from Foxconn's 2317.TW Zhengzhou iPhone plant in China were 90% of the firm's initial plans, a source with direct knowledge of the matter said, as the facility strives to recover from its COVID-induced woes. The world's largest iPhone manufacturing facility was hit late last year by a COVID-19 outbreak that prompted worker departures and unrest as well as production disruptions. (Reporting by Yimou Lee in Taipei, Writing by Brenda Goh; Editing by Christian Schmollinger) ((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters Messaging: brenda.goh.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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TAIPEI, Jan 3 (Reuters) - December shipments from Foxconn's 2317.TW Zhengzhou iPhone plant in China were 90% of the firm's initial plans, a source with direct knowledge of the matter said, as the facility strives to recover from its COVID-induced woes. The world's largest iPhone manufacturing facility was hit late last year by a COVID-19 outbreak that prompted worker departures and unrest as well as production disruptions. (Reporting by Yimou Lee in Taipei, Writing by Brenda Goh; Editing by Christian Schmollinger) ((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters Messaging: brenda.goh.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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TAIPEI, Jan 3 (Reuters) - December shipments from Foxconn's 2317.TW Zhengzhou iPhone plant in China were 90% of the firm's initial plans, a source with direct knowledge of the matter said, as the facility strives to recover from its COVID-induced woes. The world's largest iPhone manufacturing facility was hit late last year by a COVID-19 outbreak that prompted worker departures and unrest as well as production disruptions. (Reporting by Yimou Lee in Taipei, Writing by Brenda Goh; Editing by Christian Schmollinger) ((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters Messaging: brenda.goh.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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TAIPEI, Jan 3 (Reuters) - December shipments from Foxconn's 2317.TW Zhengzhou iPhone plant in China were 90% of the firm's initial plans, a source with direct knowledge of the matter said, as the facility strives to recover from its COVID-induced woes. Foxconn declined to comment. The world's largest iPhone manufacturing facility was hit late last year by a COVID-19 outbreak that prompted worker departures and unrest as well as production disruptions.
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17786.0
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2023-01-02 00:00:00 UTC
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Foxconn reinvents itself, and EV supply chains
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AAPL
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https://www.nasdaq.com/articles/foxconn-reinvents-itself-and-ev-supply-chains
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Reuters
Reuters
HONG KONG (Reuters Breakingviews) - Foxconn’s most important project in 2023 will be to remake itself. The Taiwanese company is best known for churning out Apple iPhones in China and shipping them around the world, but Chairman Liu Young-way is looking elsewhere for the next phase of growth. It’s a well-timed pivot. Liu is repurposing the top electronics contract manufacturer into an electric vehicle powerhouse. Foxconn, formally known as Hon Hai Precision Industry, is gearing up to supply cars, and the chips and batteries that go into them, to global marques. It sees automakers entrusting the company with production in Indonesia, Thailand, Saudi Arabia, the United States and beyond. By 2025, Liu wants to take 5% of the global electric-vehicle market and generate annual revenue of T$1 trillion ($32.6 billion) – roughly 15% of Foxconn’s forecast 2022 top line, per analyst estimates from Refinitiv. Getting there requires Foxconn ditching a tried and tested business model. To make smartphones, the company relies on a few factories it owns in China and it has little say over the underlying supply chains and which components to use. Cars, on the other hand, are bigger and harder to move, so Foxconn is setting up regional production hubs in partnership with potential customers. Its 40%-owned joint venture with Thailand’s PTT aspires to manufacture for automakers in Southeast Asia. Foxconn has also tied up with Ohio-based Lordstown Motors in the United States; its factory is already making electric pickup trucks and could start supplying to other American brands within a year. The Apple-like prize would be to convince a big established carmaker, like Tesla, to outsource production. Vertical integration is rare in the auto industry for a good reason: despite the allure of greater efficiencies and higher margins, upfront costs are huge, and it requires scale to take on chipmakers and battery giants like NXP Semiconductors and China’s Contemporary Amperex Technology. Recent chaos at Foxconn’s major factory in China, and the Taiwanese company’s falling gross margins, suggest its two-decade-long relationship with Apple is past its prime. That’s a good reason for Foxconn to shift gear in the year ahead.
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(This is a Breakingviews prediction for 2023. To see more of our predictions, click here.)
(Editing by Una Galani and Streisand Neto)
The views and 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 2025, Liu wants to take 5% of the global electric-vehicle market and generate annual revenue of T$1 trillion ($32.6 billion) – roughly 15% of Foxconn’s forecast 2022 top line, per analyst estimates from Refinitiv. Foxconn has also tied up with Ohio-based Lordstown Motors in the United States; its factory is already making electric pickup trucks and could start supplying to other American brands within a year. Vertical integration is rare in the auto industry for a good reason: despite the allure of greater efficiencies and higher margins, upfront costs are huge, and it requires scale to take on chipmakers and battery giants like NXP Semiconductors and China’s Contemporary Amperex Technology.
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HONG KONG (Reuters Breakingviews) - Foxconn’s most important project in 2023 will be to remake itself. It sees automakers entrusting the company with production in Indonesia, Thailand, Saudi Arabia, the United States and beyond. Foxconn has also tied up with Ohio-based Lordstown Motors in the United States; its factory is already making electric pickup trucks and could start supplying to other American brands within a year.
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Foxconn has also tied up with Ohio-based Lordstown Motors in the United States; its factory is already making electric pickup trucks and could start supplying to other American brands within a year. Vertical integration is rare in the auto industry for a good reason: despite the allure of greater efficiencies and higher margins, upfront costs are huge, and it requires scale to take on chipmakers and battery giants like NXP Semiconductors and China’s Contemporary Amperex Technology. Recent chaos at Foxconn’s major factory in China, and the Taiwanese company’s falling gross margins, suggest its two-decade-long relationship with Apple is past its prime.
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HONG KONG (Reuters Breakingviews) - Foxconn’s most important project in 2023 will be to remake itself. It sees automakers entrusting the company with production in Indonesia, Thailand, Saudi Arabia, the United States and beyond. That’s a good reason for Foxconn to shift gear in the year ahead.
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17787.0
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2023-01-02 00:00:00 UTC
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Better Semiconductor Stock: TSMC vs. Intel
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AAPL
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https://www.nasdaq.com/articles/better-semiconductor-stock%3A-tsmc-vs.-intel
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Taiwan Semiconductor Manufacturing (NYSE: TSM) and Intel (NASDAQ: INTC) are bellwethers of the semiconductor market. TSMC is the world's largest contract chipmaker, while Intel is the leading manufacturer of CPUs for PCs and servers.
Both stocks have fallen out of favor as investors fretted over slower sales of PCs, smartphones, and other devices in a post-pandemic market. Fears of a recession and rising interest rates exacerbated that sell-off.
Over the past 12 months, TSMC's stock declined nearly 40%, while Intel's stock tumbled almost 50%. Should contrarian investors buy either of these out-of-favor chip stocks as the bulls rush for the exits?
Image source: Getty Images.
How TSMC and Intel became competitors
TSMC and Intel both operate their own foundries. TSMC doesn't manufacture its own branded chips -- it's a third-party contract chipmaker that only manufactures chips for "fabless" clients like Apple (NASDAQ: AAPL), AMD (NASDAQ: AMD), and Nvidia (NASDAQ: NVDA). Intel primarily uses its foundries to manufacture its own CPUs, but it's been gradually accepting more orders from other fabless chipmakers.
For many years, Intel stayed ahead of TSMC in the "process race" to manufacture smaller, denser, and more power-efficient chips. But that changed after TSMC, with the financial backing of Apple, started to install ASML's (NASDAQ: ASML) pricey extreme ultraviolet (EUV) lithography systems in 2014. EUV systems are used to etch circuit patterns on the world's smallest silicon wafers, but Intel stuck with its lithography machines instead of buying ASML's systems.
Intel subsequently struggled to manufacture smaller and denser chips, and it eventually fell behind TSMC in the process race in 2020. As a result, AMD, which outsourced its production to TSMC, pulled ahead of Intel with more advanced CPUs. Apple, which previously installed Intel's CPUs in its Macs, also replaced those aging chips with its own TSMC-produced silicon.
Intel is now buying more EUV systems, but it will need to pour tens of billions of dollars into that expansion to catch up to TSMC and AMD. For now, TSMC -- and its top clients like AMD and Apple -- remain at least two chip generations (in terms of node size and transistor density) ahead of Intel in the process race.
Cyclical headwinds vs. existential challenges
TSMC generated 41% of its revenue from the smartphone market in the third quarter of 2022. Another 39% came from the high-performance computing (HPC) market, 15% came from the Internet of Things (IoT) and automotive sector, and the rest came from other markets.
One near-term headwind for TSMC is the slowing growth of the smartphone market. Apple, its largest customer, has been struggling with severe supply chain disruptions in China. Inflationary headwinds and longer upgrade cycles are also preventing consumers from buying new phones.
Another major headwind is the decelerating sales of high-end PCs in a post-pandemic market. AMD, Nvidia, and even Intel (which outsources the production of its discrete GPUs to TSMC) are major customers for TSMC's HPC segment, and all of these chipmakers are bracing for a tough cyclical slowdown in 2023. TSMC might offset some of that deceleration with the growth of its smaller auto and IoT divisions.
Analysts expect TSMC's revenue to only rise 7% in 2023 as its EPS declines 5%. That would represent a significant slowdown from analysts' forecasts for 43% revenue growth and 69% earnings growth in 2022.
TSMC's headwinds are cyclical, but Intel's challenges are arguably existential. Intel's share of the PC CPU market plunged from 82% to 63% between the fourth quarters of 2016 and 2022, according to PassMark Software, as it lost ground to AMD's cheaper and more advanced CPUs. Intel's server business also remains heavily exposed to the unpredictable macroeconomic headwinds for big enterprise and data center customers.
Intel generated 53% of its revenue from its client computing group (which mainly serves the PC market) in the third quarter of 2022. Another 27% came from its data center and AI division, while the rest came from other types of chips and services. Its core businesses will likely face macro and competitive headwinds in 2023 and beyond.
Intel believes it can catch up to TSMC in the process race by 2024, but that's a tall order that will require heavy spending and some support from government subsidies. For now, analysts expect Intel's revenue to decline 15% in 2022 and slide another 4% in 2023. They expect its earnings to plunge 64% in 2022 and drop 4% in 2023 as the company continues to chase TSMC.
The valuations and verdict
Both stocks look cheap: TSMC trades at just 12 times forward earnings, while Intel has a slightly higher forward price-to-earnings ratio of 13. But at their current valuations, TSMC is a much better buy than Intel because it's growing faster, it's better diversified, and it remains far ahead in the process race. Intel isn't doomed yet, but it has a lot of work to do before it can be considered a viable turnaround play, or even a stable blue-chip dividend stock.
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.
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*Stock Advisor returns as of December 1, 2022
Leo Sun has positions in ASML and Apple. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Apple, 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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TSMC doesn't manufacture its own branded chips -- it's a third-party contract chipmaker that only manufactures chips for "fabless" clients like Apple (NASDAQ: AAPL), AMD (NASDAQ: AMD), and Nvidia (NASDAQ: NVDA). For now, TSMC -- and its top clients like AMD and Apple -- remain at least two chip generations (in terms of node size and transistor density) ahead of Intel in the process race. Intel's share of the PC CPU market plunged from 82% to 63% between the fourth quarters of 2016 and 2022, according to PassMark Software, as it lost ground to AMD's cheaper and more advanced CPUs.
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TSMC doesn't manufacture its own branded chips -- it's a third-party contract chipmaker that only manufactures chips for "fabless" clients like Apple (NASDAQ: AAPL), AMD (NASDAQ: AMD), and Nvidia (NASDAQ: NVDA). The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Apple, 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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TSMC doesn't manufacture its own branded chips -- it's a third-party contract chipmaker that only manufactures chips for "fabless" clients like Apple (NASDAQ: AAPL), AMD (NASDAQ: AMD), and Nvidia (NASDAQ: NVDA). How TSMC and Intel became competitors TSMC and Intel both operate their own foundries. 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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TSMC doesn't manufacture its own branded chips -- it's a third-party contract chipmaker that only manufactures chips for "fabless" clients like Apple (NASDAQ: AAPL), AMD (NASDAQ: AMD), and Nvidia (NASDAQ: NVDA). That's right -- they think these 10 stocks are even better buys. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Apple, Intel, Nvidia, and Taiwan Semiconductor Manufacturing.
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17788.0
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2023-01-02 00:00:00 UTC
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The 10 Best Stocks to Buy in January 2023
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AAPL
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https://www.nasdaq.com/articles/the-10-best-stocks-to-buy-in-january-2023
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nan
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Today, I tell you the 10 best stocks to buy in January 2023, which I believe have significant upside for long-term investors. I provide a blend of stocks, from hypergrowth stocks to mature growth stocks and dividend stocks.
*Stock prices used in the below video were during the trading day of Dec. 30, 2022. The video was published on Jan. 2, 2023.
10 stocks we like better than Microsoft
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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.
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*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, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Eric Cuka has positions in AbbVie, Advanced Micro Devices, Alphabet, Amazon.com, Apple, Lam Research, Microsoft, Nvidia, SiTime, and Snowflake. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, Lam Research, Microsoft, Nvidia, SiTime, and Snowflake. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Eric Cuka 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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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Eric Cuka has positions in AbbVie, Advanced Micro Devices, Alphabet, Amazon.com, Apple, Lam Research, Microsoft, Nvidia, SiTime, and Snowflake. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, Lam Research, Microsoft, Nvidia, SiTime, and Snowflake.
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Eric Cuka has positions in AbbVie, Advanced Micro Devices, Alphabet, Amazon.com, Apple, Lam Research, Microsoft, Nvidia, SiTime, and Snowflake. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, Lam Research, Microsoft, Nvidia, SiTime, and Snowflake. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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I provide a blend of stocks, from hypergrowth stocks to mature growth stocks and dividend stocks. 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. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, Lam Research, Microsoft, Nvidia, SiTime, and Snowflake.
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That's right -- they think these 10 stocks are even better buys. Eric Cuka has positions in AbbVie, Advanced Micro Devices, Alphabet, Amazon.com, Apple, Lam Research, Microsoft, Nvidia, SiTime, and Snowflake. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, Lam Research, Microsoft, Nvidia, SiTime, and Snowflake.
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17789.0
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2023-01-02 00:00:00 UTC
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Top Stocks To Buy In 2023? 2 Tech Stocks To Watch
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AAPL
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https://www.nasdaq.com/articles/top-stocks-to-buy-in-2023-2-tech-stocks-to-watch
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nan
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Technology stocks, also known as tech stocks, are shares of companies that produce and sell technology products and services. These companies can range from small startups to large, well-established firms, and they can operate in a variety of tech-related industries, such as software, hardware, the internet, and telecommunications.
Tech stocks have historically been some of the most volatile and high-risk investments, but they have also had the potential for high rewards. Despite the inherent risks, tech stocks remain a popular choice for investors, particularly those looking for long-term growth.
The technology sector has consistently outperformed the broader market over the past few decades, and many experts believe that trend is likely to continue as technology continues to advance and become increasingly integrated into every aspect of our lives. Considering this, here are two blue-chip tech stocks to keep an eye on in the stock market in 2023.
Tech Stocks To Watch In 2023
Apple Inc. (NASDAQ: AAPL)
Adobe Inc. (NASDAQ: ADBE)
Apple (AAPL Stock)
First off, Apple Inc. (AAPL) is a multinational technology company that designs and develops consumer electronics, computer software, and online services. It is best known for its line of iPhones, iPads, and Mac computers, as well as its operating system, iOS, and its music streaming service, Apple Music.
AAPL Recent Stock News
In recent news, last month Apple announced it has made significant upgrades to the pricing capabilities of the App Store. This includes an additional 700 price points for developers. In detail, Apple is making changes to how much money developers can charge for their apps in the App Store. Right now, developers can choose from a limited number of prices for their apps. However, soon they will be able to choose from many more prices, almost ten times as many. This means developers will have more flexibility to set the price for their app, depending on the country or region where the app is being sold.
The App Store also has tools to help developers sell their products and services all around the world. This includes features for payment and marketing. These new changes to pricing will make it easier for developers to manage the cost of their apps in different countries and deal with changes in money exchange rates. These changes will be available for certain apps starting today, and for all other apps in the spring of 2023.
AAPL Stock Chart
Over the last month of trading, shares of AAPL stock have fallen another 12.10%. Meanwhile, going into this holiday trading week, AAPL stock is set to open Tuesday morning’s trading session at around $129.93 a share.
Source: TD Ameritrade TOS
[Read More] What Happens To Stocks During A Recession?
Adobe (ADBE Stock)
Next, Adobe Inc. (ADBE) is a multinational software company that provides a range of products and services for creative professionals, marketers, and developers. The company is best known for its software products, which include Photoshop image editing software, Acrobat document management software, and Illustrator vector graphics software. Adobe also offers cloud-based software as a service (SaaS) products.
ADBE Recent Stock News
Last month, Adobe reported its fourth-quarter 2022 financial results. Diving in, the company reported Q4 2022 earnings of $3.50 per share, along with revenue of $4.5 billion. This was compared to analysts’ consensus estimates for the quarter which were earnings of $3.50 per share and revenue estimates of $4.5 billion. What’s more, these revenue figures for Q4 2022 represent a 10.1% increase versus the same period, a year prior.
Shantanu Narayen, chairman, and CEO of Adobe commented, “Adobe drove record revenue and operating income in fiscal 2022. Our market opportunity, unparalleled innovation, operational rigor and exceptional talent position us well to drive our next decade of growth.“
ADBE Stock Chart
Looking at the last month of trading, shares of ADBE stock have dropped a modest 1.46%. Additionally, as we look into this holiday-shortened week, ADBE stock is set to open Tuesday morning’s trading session at around $336.53 a share.
Source: TD Ameritrade TOS
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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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Tech Stocks To Watch In 2023 Apple Inc. (NASDAQ: AAPL) Adobe Inc. (NASDAQ: ADBE) Apple (AAPL Stock) First off, Apple Inc. (AAPL) is a multinational technology company that designs and develops consumer electronics, computer software, and online services. AAPL Recent Stock News In recent news, last month Apple announced it has made significant upgrades to the pricing capabilities of the App Store. AAPL Stock Chart Over the last month of trading, shares of AAPL stock have fallen another 12.10%.
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Tech Stocks To Watch In 2023 Apple Inc. (NASDAQ: AAPL) Adobe Inc. (NASDAQ: ADBE) Apple (AAPL Stock) First off, Apple Inc. (AAPL) is a multinational technology company that designs and develops consumer electronics, computer software, and online services. Meanwhile, going into this holiday trading week, AAPL stock is set to open Tuesday morning’s trading session at around $129.93 a share. AAPL Recent Stock News In recent news, last month Apple announced it has made significant upgrades to the pricing capabilities of the App Store.
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Tech Stocks To Watch In 2023 Apple Inc. (NASDAQ: AAPL) Adobe Inc. (NASDAQ: ADBE) Apple (AAPL Stock) First off, Apple Inc. (AAPL) is a multinational technology company that designs and develops consumer electronics, computer software, and online services. AAPL Recent Stock News In recent news, last month Apple announced it has made significant upgrades to the pricing capabilities of the App Store. AAPL Stock Chart Over the last month of trading, shares of AAPL stock have fallen another 12.10%.
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Tech Stocks To Watch In 2023 Apple Inc. (NASDAQ: AAPL) Adobe Inc. (NASDAQ: ADBE) Apple (AAPL Stock) First off, Apple Inc. (AAPL) is a multinational technology company that designs and develops consumer electronics, computer software, and online services. AAPL Recent Stock News In recent news, last month Apple announced it has made significant upgrades to the pricing capabilities of the App Store. AAPL Stock Chart Over the last month of trading, shares of AAPL stock have fallen another 12.10%.
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17790.0
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2023-01-02 00:00:00 UTC
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Should Invesco NASDAQ 100 ETF (QQQM) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-invesco-nasdaq-100-etf-qqqm-be-on-your-investing-radar-4
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nan
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Looking for broad exposure to the Large Cap Growth segment of the US equity market? You should consider the Invesco NASDAQ 100 ETF (QQQM), a passively managed exchange traded fund launched on 10/13/2020.
The fund is sponsored by Invesco. It has amassed assets over $5.62 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
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
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.15%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.83%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 51% of the portfolio. Telecom and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.71% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 50.9% of total assets under management.
Performance and Risk
QQQM seeks to match the performance of the NASDAQ-100 INDEX before fees and expenses. The NASDAQ-100 Index includes securities of 100 of the largest domestic and international nonfinancial companies listed on Nasdaq.
The ETF has lost about -33.16% so far this year and is down about -32.86% in the last one year (as of 01/02/2023). In the past 52-week period, it has traded between $107 and $165.24.
The ETF has a beta of 1.13 and standard deviation of 25.52% for the trailing three-year period. With about 104 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco NASDAQ 100 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, QQQM 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 $67.69 billion in assets, Invesco QQQ has $144.71 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they 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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Invesco NASDAQ 100 ETF (QQQM): 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 (AAPL) accounts for about 13.71% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Invesco NASDAQ 100 ETF (QQQM): 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 $5.62 billion, making it one of the larger 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 NASDAQ 100 ETF (QQQM): 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 (AAPL) accounts for about 13.71% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). You should consider the Invesco NASDAQ 100 ETF (QQQM), a passively managed exchange traded fund launched on 10/13/2020.
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Click to get this free report Invesco NASDAQ 100 ETF (QQQM): 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 (AAPL) accounts for about 13.71% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Alternatives Invesco NASDAQ 100 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.71% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Invesco NASDAQ 100 ETF (QQQM): 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. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
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17791.0
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2023-01-02 00:00:00 UTC
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Should Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-goldman-sachs-activebeta-u.s.-large-cap-equity-etf-gslc-be-on-your-investing-6
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Launched on 09/17/2015, the Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Goldman Sachs Funds. It has amassed assets over $10.21 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that find themselves in the large cap category 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.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
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 0.09%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.61%.
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 25.20% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.35% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 23.3% of total assets under management.
Performance and Risk
GSLC seeks to match the performance of the Goldman Sachs ActiveBeta U.S. Large Cap Equity Index before fees and expenses. The Goldman Sachs ActiveBeta U.S. Large Cap Equity Index is designed to deliver exposure to equity securities of large-capitalization U.S. issuers.
The ETF has lost about -18.92% so far this year and is down about -18.88% in the last one year (as of 01/02/2023). In the past 52-week period, it has traded between $71.02 and $95.40.
The ETF has a beta of 0.98 and standard deviation of 24.86% for the trailing three-year period, making it a medium risk choice in the space. With about 439 holdings, it effectively diversifies company-specific risk.
Alternatives
Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, GSLC is a good option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $289.92 billion in assets, SPDR S&P 500 ETF has $361.26 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.35% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $10.21 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
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Click to get this free report Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.35% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Launched on 09/17/2015, the Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.35% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Launched on 09/17/2015, the Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.35% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Launched on 09/17/2015, the Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
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17792.0
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2023-01-02 00:00:00 UTC
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These 10 Mega-Cap Stocks Flopped in 2022
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https://www.nasdaq.com/articles/these-10-mega-cap-stocks-flopped-in-2022
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Mega-cap stocks (with a market cap of over $200 billion) like Tesla, Amazon, and Meta Platforms once delivered multi-fold gains. However, as the tide turned in 2022 (interest rates continued to rise amid high inflation), these mega caps lost their sheen and eroded shareholders’ wealth. We bring to you a list of 10 such mega-cap stocks that bit the dust in 2022. Also, we’ll use TipRanks’ data to ascertain what 2023 holds for these companies.
The graph below shows the drop in 10 mega-cap stocks in 2022.
Is Tesla stock a Buy, Sell, or Hold?
With a decline of over 65%, Tesla's (NASDAQ:TSLA) stock is the biggest loser in this list. It currently has a market cap of $388.97 billion and commands a Moderate Buy consensus rating on TipRanks. TSLA stock has a positive signal from hedge funds. Moreover, retail investors holding portfolios on TipRanks and bloggers are also optimistic about the stock. However, TSLA stock has a Neutral Smart Score of seven out of 10 on TipRanks.
What Is the Prediction for Meta Platforms?
Meta (NASDAQ:META) isn’t far behind Tesla stock in terms of decline. Shares of this social media giant fell 64.2% in 2022. It currently has a market cap of $319.89 billion and carries a Moderate Buy consensus rating on TipRanks. However, hedge funds sold 3.9M META stock last quarter. Meanwhile, insiders sold META stock worth $2.6M. META stock has an Underperform Smart Score of two.
Is Nvidia a Buy or Hold?
Shares of chip giant Nvidia (NASDAQ:NVDA) dropped 50.3% in 2022. However, Wall Street is bullish about its prospects. It has a Strong Buy consensus rating on TipRanks. Also, it has received the maximum number of Buy recommendations from top analysts in the last three months. Our data shows that hedge funds and retail investors are optimistic about NVDA stock. Further, NVDA stock has a “Perfect 10” Smart Score on TipRanks. (Stay abreast of the best that TipRanks’ Smart Score has to offer.)
Is Amazon Stock Expected to Rise?
Top Wall Street analysts are cheering for Amazon's (NASDAQ:AMZN) stock, implying they expect the stock to rise in the future. It has lost 49.6% of its value in 2022 but has a Strong Buy consensus rating on TipRanks. Meanwhile, hedge funds have bought 26.3M AMZN stock in the last three months, which shows their confidence. Furthermore, the crowd wisdom is also positive on AMZN stock. It sports a “Perfect 10” Smart Score on TipRanks, implying it is poised to outperform the benchmark index.
Is GOOGL a Good Stock to Buy?
GOOGL stock dropped over 39% in 2022. However, GOOGL stock has received unanimous Buy recommendations from analysts and carries a Strong Buy consensus rating on TipRanks. News and blogger sentiment are also positive for GOOGL stock. Meanwhile, hedge funds bought 129.4M GOOGL stock last quarter. Overall, shares of Alphabet have a “Perfect 10” Smart Score on TipRanks.
Is MSFT a Long-Term Buy?
Microsoft's (NASDAQ:MSFT) stock declined by 28% in 2022. However, Wall Street sees this decline as an opportunity for long-term investors to invest. Microsoft stock has a Strong Buy consensus rating on TipRanks. Meanwhile, hedge funds bought 33.2M MSFT stock last quarter. However, insiders sold MSFT stock worth $6.1M in three months. MSFT stock has a "Perfect 10” Smart Score.
Is Apple a Buy or Sell?
With a market cap of over $2 trillion, Apple (NASDAQ:AAPL) is the largest American corporation. AAPL stock dropped 26.4% in 2022. However, Street is bullish about its prospects as it carries a Strong Buy consensus rating on TipRanks. Our data shows insiders sold AAPL stock worth $30.4M in the last three months. However, hedge funds bought 671.9K Apple stock. It has a Neutral Smart Score of six on TipRanks.
Will TMO Stock Go Up?
Shares of healthcare-focused company Thermo Fisher Scientific (NYSE:TMO) are down about 17.3% in 2022. However, analysts maintain a Strong Buy consensus rating on TMO stock and expect its stock to go up. However, hedge funds decreased their holdings in TMO stock and sold 197.6K shares in three months. Meanwhile, it has a Neutral Smart Score of five on TipRanks.
What’s the Prediction for AVGO Stock?
Shares of the leading semiconductor company, Broadcom (NASDAQ:AVGO) registered a decline of 13.3% in 2022. However, analysts have a Strong Buy consensus rating on AVGO stock. Meanwhile, hedge funds increased their AVGO stock holdings by purchasing 102.3K shares last quarter. Blogger sentiment also remains positive on AVGO stock. AVGO stock has a "Perfect 10” Smart Score.
Is JPM a Buy Today?
Shares of the financial services giant JPMorgan Chase & Co. (NYSE:JPM) fell 12.6% in 2022. Meanwhile, it carries a Moderate Buy consensus rating on TipRanks. Hedge funds sold 778.4K JPM stock last quarter. Meanwhile, given the economic uncertainty, JPM stock has a Neutral Smart Score of six on TipRanks.
Bottom Line
These mega-cap stocks have lost significant value, creating a buying opportunity for investors. Using TipRanks’ Stock Comparison tool, below is a summary of how these companies stack up on our datasets.
According to our data, MSFT, GOOGL, AMZN, NVDA, and AVGO have a Strong Buy consensus rating on TipRanks. Also, these stocks have a “Perfect 10” Smart Score, implying these stocks are expected to outperform the broader markets.
Meanwhile, Tesla has a Neutral Smart Score, and analysts are cautiously optimistic about its prospects despite the considerable decline in its price. Besides for TSLA, analysts are also cautiously optimistic about META and JPM stock. However, META has an Underperform Smart Score.
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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With a market cap of over $2 trillion, Apple (NASDAQ:AAPL) is the largest American corporation. AAPL stock dropped 26.4% in 2022. Our data shows insiders sold AAPL stock worth $30.4M in the last three months.
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With a market cap of over $2 trillion, Apple (NASDAQ:AAPL) is the largest American corporation. AAPL stock dropped 26.4% in 2022. Our data shows insiders sold AAPL stock worth $30.4M in the last three months.
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With a market cap of over $2 trillion, Apple (NASDAQ:AAPL) is the largest American corporation. AAPL stock dropped 26.4% in 2022. Our data shows insiders sold AAPL stock worth $30.4M in the last three months.
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With a market cap of over $2 trillion, Apple (NASDAQ:AAPL) is the largest American corporation. AAPL stock dropped 26.4% in 2022. Our data shows insiders sold AAPL stock worth $30.4M in the last three months.
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17793.0
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2023-01-02 00:00:00 UTC
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Warren Buffett Bought This Chip Giant in 2022. Should You Do the Same in 2023?
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AAPL
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https://www.nasdaq.com/articles/warren-buffett-bought-this-chip-giant-in-2022.-should-you-do-the-same-in-2023
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Huge news came out over a month ago when Berkshire Hathaway (NYSE: BRK.B) -- the company run by Warren Buffett -- reported it had made a $4 billion investment in Taiwan Semiconductor Manufacturing (NYSE: TSM), otherwise known as TSMC.
The stock is now Berkshire's 10th largest position by market value, making it a meaningful purchase for the investing legend. Clearly, the Oracle of Omaha sees a lot of value in the computer chip manufacturer at today's prices.
Should you go along with Buffett and buy shares of TSMC in 2023? Let's investigate.
Taiwan Semiconductor: The world's chip factory
TSMC is one of the largest and most important companies in the world. It is a semiconductor foundry, which means it has built factories to manufacture semiconductors and computer chips for other companies like Apple and Nvidia. Since starting its business a few decades ago, TSMC has come to dominate the semiconductor market and now makes up more than 50% of the foundry industry.
Given how large the semiconductor industry is, TSMC's dominant market position makes it one of the largest companies in the world. Over the last 12 months, it has generated $72 billion in revenue, up from less than $20 billion 10 years ago.
There's no reason to think this growth is slowing down anytime soon, either.
Large growth opportunity with minimal competition
All indications are that the demand for semiconductors will steadily grow this decade. Modern technologies like smartphones, the cloud, the Internet of Things, artificial intelligence, and even electric vehicles are powered by computer chips. In order to fulfill this demand, TSMC has plans to spend tens of billions in capital expenditures every year to build out new manufacturing capacity around the globe.
Management is projecting that TSMC will spend a whopping $36 billion on capital expenditures, with more coming in the years after. In Arizona, TSMC has committed to spending $40 billion building a United States manufacturing hub that will start operations for customers in 2024.
Within the advanced chips market, TSMC has little to no competition due to its economies of scale and research expertise built over decades. It also has strong partnerships with semiconductor equipment companies like ASML that give it advantages in building cutting-edge computer chips for companies like Apple.
For example, right now, Samsung is the only company that has matched TSMC's five-nanometer chip technology, leaving companies like Intel in the dust. With only one true competitor at this time and a huge addressable market, TSMC has a clear path to steadily growing its revenue this decade.
TSM Net Income (TTM) data by YCharts.
But what about the valuation?
When Buffett buys a stock in size, you can be assured it is not trading at an expensive valuation. This is the case with TSMC right now. At its current market cap of $376 billion and with $30.5 billion in trailing-12-month earnings, the stock trades at a price-to-earnings (P/E) ratio of 12.3, which is well below the current average for the S&P 500 of 20. This looks cheap on any measure if you take into account the huge growth potential for TSMC over the next decade.
So what's the catch? Why are investors like Buffett able to buy TSMC at such a cheap valuation? One word: China.
China has been increasingly adversarial with TSMC's home country of Taiwan in recent years, which some investors see as a major risk to its operations. Management is working to diversify away from Taiwan with its new investments in the United States, but there will likely always be geopolitical and war risks when investing in TSMC.
If you are comfortable with this risk, now could be a great time to buy the stock at a low P/E. Otherwise, you should probably avoid adding the company to your portfolio.
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
Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Apple, Berkshire Hathaway, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, 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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In order to fulfill this demand, TSMC has plans to spend tens of billions in capital expenditures every year to build out new manufacturing capacity around the globe. China has been increasingly adversarial with TSMC's home country of Taiwan in recent years, which some investors see as a major risk to its operations. The Motley Fool has positions in and recommends ASML, Apple, Berkshire Hathaway, Intel, Nvidia, and Taiwan Semiconductor Manufacturing.
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Given how large the semiconductor industry is, TSMC's dominant market position makes it one of the largest companies in the world. The Motley Fool has positions in and recommends ASML, Apple, Berkshire Hathaway, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple.
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Huge news came out over a month ago when Berkshire Hathaway (NYSE: BRK.B) -- the company run by Warren Buffett -- reported it had made a $4 billion investment in Taiwan Semiconductor Manufacturing (NYSE: TSM), otherwise known as TSMC. Taiwan Semiconductor: The world's chip factory TSMC is one of the largest and most important companies in the world. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple.
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It is a semiconductor foundry, which means it has built factories to manufacture semiconductors and computer chips for other companies like Apple and Nvidia. * 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! The Motley Fool has positions in and recommends ASML, Apple, Berkshire Hathaway, Intel, Nvidia, and Taiwan Semiconductor Manufacturing.
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17794.0
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2023-01-01 00:00:00 UTC
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Down 28% in 2022, Is Apple Stock a Buy for 2023?
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AAPL
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https://www.nasdaq.com/articles/down-28-in-2022-is-apple-stock-a-buy-for-2023
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Apple (NASDAQ: AAPL) has benefited from robust consumer demand and hopes that easing supply chain constraints will boost the tech giant's prospects.
*Stock prices used were the afternoon prices of Dec. 29, 2022. The video was published on Dec. 31, 2022.
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
Parkev Tatevosian, CFA 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. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through fool.com/parkev, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) has benefited from robust consumer demand and hopes that easing supply chain constraints will boost the tech giant's prospects. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services.
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Apple (NASDAQ: AAPL) has benefited from robust consumer demand and hopes that easing supply chain constraints will boost the tech giant's prospects. 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.
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Apple (NASDAQ: AAPL) has benefited from robust consumer demand and hopes that easing supply chain constraints will boost the tech giant's prospects. 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 Parkev Tatevosian, CFA has positions in Apple.
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Apple (NASDAQ: AAPL) has benefited from robust consumer demand and hopes that easing supply chain constraints will boost the tech giant's prospects. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple.
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17795.0
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2023-01-01 00:00:00 UTC
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80% of Warren Buffett's Portfolio Is Invested in These 7 Stocks as 2023 Begins
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AAPL
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https://www.nasdaq.com/articles/80-of-warren-buffetts-portfolio-is-invested-in-these-7-stocks-as-2023-begins
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You've probably heard of the 80-20 rule. It's also known as the Pareto principle. The idea is that roughly 80% of outcomes are generated by around 20% of causes. This 80-20 rule applies in a surprisingly large number of scenarios. As a case in point, look at where Warren Buffett and his team have invested Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) money.
Berkshire has stakes in 47 companies. (There are actually 50 stocks, though, because some of the companies have multiple categories or series of shares.) The Pareto principle percentages don't apply exactly to Berkshire's investments, but they're really close. Eighty percent of Buffett's portfolio is invested in these seven stocks as 2023 begins.
1. Apple
Apple (NASDAQ: AAPL) ranks by far as the largest holding for Buffett, making up 36.8% of Berkshire's total portfolio (including shares owned by Berkshire's New England Asset Management subsidiary). The stock fell sharply in 2022. Don't be surprised if Buffett adds even more to his position in Apple with the tech giant trading at a discount.
2. Bank of America
Buffett's love of bank stocks has waned somewhat over the last year or so. However, he remains a fan of Bank of America (NYSE: BAC). The stock makes up 10.8% of Berkshire's portfolio (including shares owned by New England Asset Management). Although BofA's share price fell quite a bit in 2022, the big bank should benefit from higher interest rates in the new year.
3. Chevron
Chevron (NYSE: CVX) holds the No. 3 spot, comprising 9.6% of Berkshire's total portfolio. Buffett has bet heavily on the oil and gas giant -- and that bet has paid off nicely so far. Chevron's shares soared in 2022 and played a big role in helping Buffett beat the market.
4. Coca-Cola
Buffett has liked Coca-Cola (NYSE: KO) -- both the beverages and the stock -- for decades. The blue chip stock currently makes up 8.1% of Berkshire's total portfolio. Although Coca-Cola badly underperformed the S&P 500 over the last 10 years, it trounced the major index in 2022.
5. American Express
American Express (NYSE: AXP) stands out as another longtime favorite for Buffett. Out of Berkshire's total portfolio, 7% is invested in the financial services stock. Amex has been a big winner for Buffett over the long term. However, 2022 was a down year for the stock even though it outperformed the overall market.
6. Kraft Heinz
Berkshire owns a 26.6% stake in Kraft Heinz (NASDAQ: KHC). That's enough to make up 4.2% of the conglomerate's total portfolio. It's also enough for Kraft Heinz to be listed as a subsidiary company on Berkshire's website. And while Kraft Heinz stock has generally performed dismally over the last decade, it ranks among Buffett's winners in 2022.
7. Occidental Petroleum
Occidental Petroleum (NYSE: OXY) enjoyed a tremendous year in 2022. Its valuation more than doubled. That made it not only the best-performing stock of the year for Buffett but also the biggest winner in the S&P 500. The huge gains combined with aggressive buying throughout 2022 catapulted Occidental into the No. 7 spot for Buffett, making up 3.9% of Berkshire's total portfolio.
Applying the 80-20 rule to these top Buffett stocks
Will the Pareto principle apply to these top Buffett stocks in 2023, with roughly 20% of them generating 80% of total returns for the year? We'll have to wait and see. However, I wouldn't be surprised if one or two of these stocks deliver outsized returns in 2023.
If I had to pick the most likely to succeed, Occidental would be at the top of the list. Of all the stocks Buffett bought in 2022, the oil stock appears to be among the best bets for 2023, in my view.
I expect that oil prices will remain high, helping both Occidental and Chevron. It also seems likely that Buffett will continue to scoop up additional shares of Occidental. Berkshire secured approval in August 2022 to buy up to 50% of the oil and gas producer. Maybe the company won't acquire that big of a stake. Like the 80-20 rule, the actual percentage might not be exact, but it could be close.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Keith Speights has positions in Apple, Bank of America, and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends Kraft Heinz and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) ranks by far as the largest holding for Buffett, making up 36.8% of Berkshire's total portfolio (including shares owned by Berkshire's New England Asset Management subsidiary). Don't be surprised if Buffett adds even more to his position in Apple with the tech giant trading at a discount. Although BofA's share price fell quite a bit in 2022, the big bank should benefit from higher interest rates in the new year.
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Apple Apple (NASDAQ: AAPL) ranks by far as the largest holding for Buffett, making up 36.8% of Berkshire's total portfolio (including shares owned by Berkshire's New England Asset Management subsidiary). Applying the 80-20 rule to these top Buffett stocks Will the Pareto principle apply to these top Buffett stocks in 2023, with roughly 20% of them generating 80% of total returns for the year? The Motley Fool recommends Kraft Heinz and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long January 2024 $47.50 calls on Coca-Cola, 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 Apple (NASDAQ: AAPL) ranks by far as the largest holding for Buffett, making up 36.8% of Berkshire's total portfolio (including shares owned by Berkshire's New England Asset Management subsidiary). Applying the 80-20 rule to these top Buffett stocks Will the Pareto principle apply to these top Buffett stocks in 2023, with roughly 20% of them generating 80% of total returns for the year? The Motley Fool recommends Kraft Heinz and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long January 2024 $47.50 calls on Coca-Cola, 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 Apple (NASDAQ: AAPL) ranks by far as the largest holding for Buffett, making up 36.8% of Berkshire's total portfolio (including shares owned by Berkshire's New England Asset Management subsidiary). As a case in point, look at where Warren Buffett and his team have invested Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) money. Applying the 80-20 rule to these top Buffett stocks Will the Pareto principle apply to these top Buffett stocks in 2023, with roughly 20% of them generating 80% of total returns for the year?
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17796.0
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2022-12-31 00:00:00 UTC
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Where Will Apple Stock Be in 1 Year?
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AAPL
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https://www.nasdaq.com/articles/where-will-apple-stock-be-in-1-year
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Apple's (NASDAQ: AAPL) stock declined nearly 30% in 2022 as investors fretted over the tech giant's persistent supply chain issues in China. A lack of clarity regarding its roadmap beyond the aging iPhone, which still generated 52% of its revenue in fiscal 2022 (ended in September 2022), and inflationary headwinds exacerbated that uncertainty.
But could Apple's stock bounce back in 2023 as it resolves its supply chain problems and rolls out new products and services? Or will it continue to be held back as investors pivot toward other blue-chip tech stocks?
Image source: Apple.
Why was 2022 so challenging for Apple?
In fiscal 2021, Apple's revenue and earnings per share (EPS) jumped 33% and 71%, respectively, as the company finally entered the 5G race with its iPhone 12 family of smartphones. That long-awaited launch sparked an upgrade cycle throughout 2021 that nearly matched that of the best-selling iPhone 6 and 6 Plus in 2014.
However, that growth also set Apple up for tough year-over-year comparisons in fiscal 2022 as fewer people bought the iPhone 13. At the same time, the global chip shortage and China's "zero-COVID" policies disrupted its supply chain throughout the entire year. As a result, Apple's revenue and EPS only rose 8% and 9%, respectively, in fiscal 2022.
That cyclical slowdown wasn't surprising, but several other events in China rattled investors as fiscal 2023 started. In November 2022, Foxconn (Apple's main contract manufacturer) was disrupted by protests regarding its COVID-19 policies and unpaid bonuses at its largest iPhone plant in Zhengzhou, China. Apple subsequently reduced its annual production target for its iPhone 14 Pro and Pro Max models from 90 million to 87 million units to account for those disruptions.
China's government then loosened its COVID-19 restrictions in response to a wave of anti-lockdown protests across the country. That decision might generate some near-term tailwinds for China's sluggish economy, but it could also generate fierce headwinds if rising infection rates and deaths disrupt the country's supply chain and consumer spending.
Those unpredictable issues make the Greater China region -- which accounted for 19% of Apple's sales in fiscal 2022 -- a soft spot for the company. Inflationary headwinds across the world could also curb the market's appetite for the company's pricier hardware devices and subscription-based services.
Faced with all these challenges, analysts expect Apple's revenue and earnings to only increase 3% and 2%, respectively, in fiscal 2023. Even after its year-long decline, Apple's stock still doesn't look cheap relative to those growth rates at 21 times forward earnings and 5 times this year's sales.
Why 2023 could be a brighter year for Apple
Apple's supply chain problems are daunting, but it's been taking steps to shift some of its production to Vietnam and India instead. It also plans to source its future iPhone and Mac chips from Taiwan Semiconductor Manufacturing's new plant in Arizona instead of the chipmaker's top-tier plants in Taiwan. Those changes won't bear any fruit until 2024 and 2025, but they'll likely reduce Apple's long-term dependence on China.
China also expects its COVID-19 cases to peak in early 2023, which suggests the current supply chain and consumer spending headwinds should wane in the second half of the year.
Meanwhile, analysts' forecasts for fiscal 2023 still don't account for any of Apple's upcoming products and services. Apple is expected to launch a new "mixed reality" headset in the second half of 2023, and that new gadget could generate a fresh stream of hardware revenue while expanding its software and services ecosystem into the VR, AR, and metaverse markets.
Apple's paid subscriber base, which expanded from 745 million in fiscal 2021 to more than 900 million in fiscal 2022, should also continue to grow in fiscal 2023 as Apple Music, Apple TV+, Apple Arcade, Apple Fitness+, and its other digital services gain more momentum. That expansion should lock in its hardware users, enable it to challenge a broader range of companies (including Spotify, Netflix, Amazon, and even Peloton) and squeeze out more revenue per customer to offset its slower hardware sales.
Lastly, Apple still generates plenty of cash. The company ended fiscal 2022 with $169 billion in cash and marketable securities, so it might surprise investors with some big acquisitions over the next 12 months. Buying a media or video game company to expand its services ecosystem makes sense right now, since a lot of those stocks are on sale, and could help it keep pace with Amazon's big moves in both markets. It will also likely continue its streak of $550 billion in buybacks over the past decade.
Where will Apple's stock be in a year?
Next year, Apple probably won't return to its all-time high of $180.73 from January 2022 -- which would require a rally of more than 40% from its recent price.
But the downside potential should also be limited as investors focus on its gradual supply chain improvements, upcoming products, the expansion of its services ecosystem, and its consistent buybacks and dividends. I'm not expecting explosive gains, but I believe Apple's stock will stabilize and gradually rise throughout 2023 as investors again prioritize the company's long-term strengths over its near-term challenges.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Leo Sun has positions in Amazon.com and Apple. The Motley Fool has positions in and recommends Amazon.com, Apple, Netflix, Peloton Interactive, Spotify Technology, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple's (NASDAQ: AAPL) stock declined nearly 30% in 2022 as investors fretted over the tech giant's persistent supply chain issues in China. Apple is expected to launch a new "mixed reality" headset in the second half of 2023, and that new gadget could generate a fresh stream of hardware revenue while expanding its software and services ecosystem into the VR, AR, and metaverse markets. Buying a media or video game company to expand its services ecosystem makes sense right now, since a lot of those stocks are on sale, and could help it keep pace with Amazon's big moves in both markets.
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Apple's (NASDAQ: AAPL) stock declined nearly 30% in 2022 as investors fretted over the tech giant's persistent supply chain issues in China. That decision might generate some near-term tailwinds for China's sluggish economy, but it could also generate fierce headwinds if rising infection rates and deaths disrupt the country's supply chain and consumer spending. Faced with all these challenges, analysts expect Apple's revenue and earnings to only increase 3% and 2%, respectively, in fiscal 2023.
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Apple's (NASDAQ: AAPL) stock declined nearly 30% in 2022 as investors fretted over the tech giant's persistent supply chain issues in China. Why 2023 could be a brighter year for Apple Apple's supply chain problems are daunting, but it's been taking steps to shift some of its production to Vietnam and India instead. Apple's paid subscriber base, which expanded from 745 million in fiscal 2021 to more than 900 million in fiscal 2022, should also continue to grow in fiscal 2023 as Apple Music, Apple TV+, Apple Arcade, Apple Fitness+, and its other digital services gain more momentum.
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Apple's (NASDAQ: AAPL) stock declined nearly 30% in 2022 as investors fretted over the tech giant's persistent supply chain issues in China. Meanwhile, analysts' forecasts for fiscal 2023 still don't account for any of Apple's upcoming products and services. Where will Apple's stock be in a year?
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17797.0
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2022-12-31 00:00:00 UTC
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Where Will Unity Software Stock Be in 3 Years?
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AAPL
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https://www.nasdaq.com/articles/where-will-unity-software-stock-be-in-3-years
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nan
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nan
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Unity Software (NYSE: U) attracted a stampede of bulls when it went public in September of 2020. The video-game engine developer priced its initial public offering (IPO) at $52, and opened at $75 before soaring above $200 last November.
But today, Unity's stock trades at less than $30. The former market darling lost its luster as investors fretted over its slowing growth, steep losses, and high valuation. Rising interest rates also exacerbated that selling pressure.
Could the stock recover from that ugly drawdown over the next three years? Let's review its current challenges and future catalysts.
Image source: Getty Images.
Why did Unity's stock drop below its IPO price?
Unity's game engine is used to develop more than half of the world's mobile, console, and PC games. It simplifies the development process by bundling tools for creating graphics, sounds, and other assets.
It's a freemium platform that unlocks more features for its paid users, and it enables developers to monetize their games with digital ads, in-app purchases, and other paid services. At the time of its IPO, the bulls believed that the "one-stop shop" approach would enable Unity to benefit from the long-term expansion of the gaming market.
CEO John Riccitiello also proclaimed the company could maintain more than 30% annual revenue growth "over the long term."
That forecast initially seemed realistic: Unity's revenue rose 43% to $772 million in 2020 and grew 44% to $1.1 billion in 2021. Its two core businesses -- its namesake game engine and the Unity Ads division -- were firing on all cylinders as the pandemic lit a fire under the gaming market.
In Deceber of 2021, it also acquired Weta Digital -- which created the special effects for Game of Thrones, Avatar, and Lord of the Rings -- to expand its reach beyond the gaming market.
But in 2022, the growth of Unity's game engine cooled off in the post-pandemic market as people played fewer video games. Unity Ads also stopped working properly after Apple (NASDAQ: AAPL) updated its privacy settings on iOS. That sudden malfunction forced Unity to buy the ad tech company ironSource in November to reboot its entire advertising business.
Even after acquiring ironSource, Unity only expects its revenue to rise by 23% to 25% to just under $1.4 billion in 2022. Riccitiello still believes Unity can achieve a compound annual growth rate of 30% over the long term, but the company remains unprofitable by both generally accepted accounting principles (GAAP) and non-GAAP measures.
That combination of slowing growth and red ink made Unity an unappealing stock as interest rates continued to rise. And even after its steep decline, Unity still doesn't look extremely cheap at five times next year's sales.
Can Unity rise back above its IPO price in three years?
In 2023, Unity's top-line growth will be significantly inflated by its $4.4 billion acquisition of ironSource. Its main challenge will be to integrate that business into Unity Ads to overcome Apple's iOS changes.
IronSource is profitable, so the acquisition won't squeeze Unity's long-term margins, but the all-stock deal will dilute its shares. On the bright side, Unity expects its operating cash flow to turn positive in the fourth quarter of 2022 as it integrates ironSource and implements other cost-cutting measures. The company's gaming business could also stabilize as the industry laps its post-pandemic slowdown.
Based on those factors, analysts believe revenue will rise 59% to $2.2 billion in 2023 as its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) improve from a $22 million loss to a positive $219 million. In 2024, they expect its revenue to rise 19% to $2.6 billion as its adjusted EBITDA more than doubles to $509 million.
Unity is even more optimistic: It expects its adjusted EBITDA to exceed an annual run rate of $1 billion by the end of 2024 as it generates more synergies from its merger with ironSource. But during the company's latest conference call in November, chief financial officer Luis Visoso warned that "as long as the ads market sentiment remains one of recession, we expect to guide revenue growth lower than our sustainable growth target" of 30%.
Assuming Unity matches analysts' expectations and grows its revenue by another 19% to $3.1 billion in 2025, it would still have more than doubled its revenue from 2022. If it still trades at a similar price-to-sales ratio by then, it could potentially rise to about $60 a share by the end of that year. That would be a decent return from its current price, but it would be far below its all-time high.
That said, Unity could still evolve into a much larger company over the next few decades as its platform locks in more developers and it expands more deeply into the augmented-reality, virtual-reality, and nongaming markets.
10 stocks we like better than Unity Software
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Leo Sun has positions in Apple and Unity Software. The Motley Fool has positions in and recommends Apple and Unity Software. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Unity Ads also stopped working properly after Apple (NASDAQ: AAPL) updated its privacy settings on iOS. Riccitiello still believes Unity can achieve a compound annual growth rate of 30% over the long term, but the company remains unprofitable by both generally accepted accounting principles (GAAP) and non-GAAP measures. On the bright side, Unity expects its operating cash flow to turn positive in the fourth quarter of 2022 as it integrates ironSource and implements other cost-cutting measures.
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Unity Ads also stopped working properly after Apple (NASDAQ: AAPL) updated its privacy settings on iOS. The video-game engine developer priced its initial public offering (IPO) at $52, and opened at $75 before soaring above $200 last November. The Motley Fool has positions in and recommends Apple and Unity Software.
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Unity Ads also stopped working properly after Apple (NASDAQ: AAPL) updated its privacy settings on iOS. Its two core businesses -- its namesake game engine and the Unity Ads division -- were firing on all cylinders as the pandemic lit a fire under the gaming market. But in 2022, the growth of Unity's game engine cooled off in the post-pandemic market as people played fewer video games.
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Unity Ads also stopped working properly after Apple (NASDAQ: AAPL) updated its privacy settings on iOS. Even after acquiring ironSource, Unity only expects its revenue to rise by 23% to 25% to just under $1.4 billion in 2022. Can Unity rise back above its IPO price in three years?
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17798.0
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2022-12-31 00:00:00 UTC
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4 Red-Hot Growth Stocks to Buy in 2023 and Beyond
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AAPL
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https://www.nasdaq.com/articles/4-red-hot-growth-stocks-to-buy-in-2023-and-beyond
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Inflation, rising interest rates, and other macroeconomic headwinds broadly crushed growth stocks in 2022. Some of that sell-off was justified, since many growth stocks had reached unsustainable valuations following the buying frenzy over the previous two years. But many babies were also tossed out with the bathwater.
I believe four growth stocks -- Datadog (NASDAQ: DDOG), Impinj (NASDAQ: PI), Unity Software (NYSE: U), and The Trade Desk (NASDAQ: TTD) -- fit that description and will likely rally much higher in 2023 and beyond.
Image source: Getty Images.
1. Datadog
Datadog's platform aggregates diagnostic data from an organization's servers, databases, and apps on unified dashboards for IT professionals. That approach makes it much easier to diagnose potential problems, and breaks down the silos between different types of computing platforms.
Datadog established an early-mover's advantage in this niche market, and its total number of large customers (those that generate more than $100,000 in annual recurring revenue) rose from 858 at the end of 2019 to about 2,600 in the third quarter of 2022. Revenue rose 66% in 2020 and increased 70% in 2021, and it anticipates 60% to 61% growth in 2022.
Datadog's adjusted gross margin is hovering near 80%, and it's already profitable on a non-GAAP (generally accepted accounting principles) basis. It isn't profitable on a GAAP basis yet, and its stock isn't cheap at 11 times next year's sales. But the long-term potential of its niche market could easily justify that higher valuation.
2. Impinj
Impinj is a leading producer of radio frequency identification (RFID) tags, scanners, and software. RFID tags are often used to track a company's products, but they can also power smart kiosks, public transportation systems, and even smart factories.
Impinj benefited from the "retail apocalypse" over the past decade as retailers scrambled to use RFID tags to analyze their inventories and sales trends. The ongoing supply chain disruptions over the past year also highlighted the importance of RFID tags in efficiently tracking products across the world.
Impinj's revenue declined 9% in 2020 as the pandemic disrupted brick-and-mortar retailers, but rose 37% in 2021 as those headwinds waned. It expects its revenue to grow 33% to 34% in 2022 as the demand for its chips continues to outstrip its available supply, and it sees that imbalance continuing into 2023.
Impinj is profitable on a non-GAAP basis, and its GAAP net losses are gradually narrowing. At 9 times next year's sales, this oft-overlooked stock appears reasonably valued relative to the growth potential of the Internet of Things (IoT) market.
3. Unity Software
Unity's game-development engine is used to create more than half of the world's mobile, console, and PC games. It bundles together tools for creating graphics, sound effects, and monetization features for smaller developers and larger studios.
Revenue rose 43% in 2020 and grew another 44% in 2021. The pandemic generated strong tailwinds for the gaming industry, which prompted more developers to use Unity to create new games.
But over the past year, Apple's (NASDAQ: AAPL) privacy update on iOS disrupted Unity's integrated ads. So the latter acquired the ad tech company ironSource to reset its advertising business and offset that slowdown. But it expects that business to remain under pressure as macro headwinds rattle the digital advertising market.
Nonetheless, Unity still expects its revenue to rise 23% to 25% in 2022 as its non-GAAP profitability improves in 2023. The next few quarters will be incredibly bumpy, but this growth stock is on sale at 5 times next year's sales.
4. The Trade Desk
The Trade Desk operates the world's largest independent demand-side platform (DSP) for digital ads. DSPs enable advertisers to purchase ad space across desktop, mobile, and connected-TV (CTV) platforms.
It generates most of its growth from the CTV market, which has grown rapidly in recent years as streaming video services disrupted linear TV platforms like cable and satellite TV. It's also benefiting from the shift from pricier ad-free streaming subscriptions toward cheaper ad-supported tiers.
The Trade Desk's revenue rose 26% in 2020, even as the pandemic curbed ad spending across multiple industries. Revenue rose 43% in 2021 as those headwinds waned, and it expects at least 34% growth in 2022.
It's profitable by both GAAP and non-GAAP measures. Its stock isn't a bargain yet at 12 times next year's sales, but it remains one of the best plays on the secular growth of the CTV market and programmatic digital ads.
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Leo Sun has positions in Apple and Unity Software. The Motley Fool has positions in and recommends Apple, Datadog, Trade Desk, and Unity Software. The Motley Fool recommends Impinj and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But over the past year, Apple's (NASDAQ: AAPL) privacy update on iOS disrupted Unity's integrated ads. Datadog established an early-mover's advantage in this niche market, and its total number of large customers (those that generate more than $100,000 in annual recurring revenue) rose from 858 at the end of 2019 to about 2,600 in the third quarter of 2022. At 9 times next year's sales, this oft-overlooked stock appears reasonably valued relative to the growth potential of the Internet of Things (IoT) market.
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But over the past year, Apple's (NASDAQ: AAPL) privacy update on iOS disrupted Unity's integrated ads. I believe four growth stocks -- Datadog (NASDAQ: DDOG), Impinj (NASDAQ: PI), Unity Software (NYSE: U), and The Trade Desk (NASDAQ: TTD) -- fit that description and will likely rally much higher in 2023 and beyond. It isn't profitable on a GAAP basis yet, and its stock isn't cheap at 11 times next year's sales.
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But over the past year, Apple's (NASDAQ: AAPL) privacy update on iOS disrupted Unity's integrated ads. I believe four growth stocks -- Datadog (NASDAQ: DDOG), Impinj (NASDAQ: PI), Unity Software (NYSE: U), and The Trade Desk (NASDAQ: TTD) -- fit that description and will likely rally much higher in 2023 and beyond. At 9 times next year's sales, this oft-overlooked stock appears reasonably valued relative to the growth potential of the Internet of Things (IoT) market.
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But over the past year, Apple's (NASDAQ: AAPL) privacy update on iOS disrupted Unity's integrated ads. Revenue rose 43% in 2021 as those headwinds waned, and it expects at least 34% growth in 2022. Its stock isn't a bargain yet at 12 times next year's sales, but it remains one of the best plays on the secular growth of the CTV market and programmatic digital ads.
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17799.0
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2022-12-31 00:00:00 UTC
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Even in an Advertising Slowdown, These 3 Stocks Are Long-Term Winners
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AAPL
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https://www.nasdaq.com/articles/even-in-an-advertising-slowdown-these-3-stocks-are-long-term-winners
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nan
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nan
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Marketers are trimming their ad budgets, and that's bad news for a lot of companies heavily reliant on advertising revenue.
Interactive Advertising Bureau (IAB) expects ad-spend growth to decline from 9% in 2022 to 5.9% in 2023. Magna expects growth to slow from 6.6% to 4.8%.
But not all advertising companies are the same. Some stand above the rest in this difficult environment. Here's why The Trade Desk (NASDAQ: TTD), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Spotify (NYSE: SPOT) are worth a closer look from investors.
The Trade Desk
The fastest-growing segment of digital advertising, by far, is connected TV.
IAB expects connected-TV ad spend to increase 14.4% next year. When you combine connected TV with all digital-video advertising (think YouTube), it's expected to account for 22.4% of all digital ad spend in 2023, up from 19.3% this year.
The Trade Desk is an adtech company that offers a platform for marketers to purchase and manage advertising campaigns, and it's built a significant presence in the connected-TV and digital-video market. By partnering with key video services, The Trade Desk has access to valuable inventory. In summer 2022, The Trade Desk finalized a deal with Disney to sell ads for Hulu, Disney+, and ESPN+. For reference, Hulu is one of the biggest sources of connected-TV ad sales.
Importantly, The Trade Desk is showing strength in the market while its competition weakens. When Roku announced its third-quarter results, not only did it post disappointing growth in its platform segment (consisting primarily of advertising), but it forecast negative growth for Q4. Meanwhile, The Trade Desk showed signs of slowing but still expects to grow 24% year over year in Q4.
Alphabet
Paid search advertising has a big advantage in today's environment where there's a greater focus on privacy protections.
Search engines have the advantage of being able to target advertisements based on exactly what users are looking for, when they're looking for it. That insulates search engines from needing to be able to track users across apps and the web, which has become increasingly difficult due to software updates from Apple and government regulations in Europe.
IAB expects the amount of money flowing into search ads to climb 8.9% in 2023, with the share of digital ad spend climbing to 16% of the total.
Google is the leader in online search, and that title isn't getting taken away from it anytime soon. The company's search advertising business remains a source of strength even amid the market downturn. It propped up Google's total advertising revenue, which includes YouTube and its network advertising, in Q3, while the rest of the segment declined in revenue.
Importantly, IAB expects travel, restaurants, and financial services businesses to all grow ad spend faster than the overall market. Those are three areas where Google excels in advertising. In fact, management noted a pullback in financial services (like cryptocurrency firms) advertising in Q3 as one reason for the slowdown in revenue growth.
Investors should expect Alphabet's revenue growth to reaccelerate in 2023.
Spotify
Podcasts continue to grow in popularity, and advertisers are finding good returns by advertising on the format. IAB expects podcast ad spend to grow 8.1% in 2023.
Spotify has invested heavily in the podcast space, buying both content and technology for production, distribution, and ad sales. The company sells podcast advertising through the Spotify Audience Network, which leverages listener data and context to target advertisements.
Spotify's advertising business is growing relatively quickly. Its ad-supported revenue, which includes music and podcast listeners, grew 19% year over year in Q3. What's more, podcasts are the driving force behind that growth.
That's in large part because Spotify is not only adept at selling ads, but it's also able to expand the podcast-listener market by integrating podcasts with its music platform. That's led to its becoming one of the largest podcast-listening platforms in the world despite only entering the space a few years ago.
As Spotify curbs its podcast acquisitions and investments while growing podcast ad revenue, the segment should start producing significant profits for the company. While currently a drag on gross profits, management expects the long-term margin profile of its podcast business to exceed the music business, which generated around 28.5% gross profit margin in Q1 this year. Podcasts could be a 40% to 50% gross margin business, management says.
Digital advertising is still a growing industry
Even amid the macroeconomic uncertainty, digital advertising will continue to grow. While that growth will moderate, the long-term trend is for digital to displace traditional TV, radio, and newspaper advertising. Not every company will be a winner, but the above three are well positioned to succeed in the near future and the long term.
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That insulates search engines from needing to be able to track users across apps and the web, which has become increasingly difficult due to software updates from Apple and government regulations in Europe. Importantly, IAB expects travel, restaurants, and financial services businesses to all grow ad spend faster than the overall market. In fact, management noted a pullback in financial services (like cryptocurrency firms) advertising in Q3 as one reason for the slowdown in revenue growth.
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While currently a drag on gross profits, management expects the long-term margin profile of its podcast business to exceed the music business, which generated around 28.5% gross profit margin in Q1 this year. The Motley Fool has positions in and recommends Alphabet, Apple, Roku, Spotify Technology, The Trade Desk, 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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The Trade Desk is an adtech company that offers a platform for marketers to purchase and manage advertising campaigns, and it's built a significant presence in the connected-TV and digital-video market. Spotify Podcasts continue to grow in popularity, and advertisers are finding good returns by advertising on the format. The company sells podcast advertising through the Spotify Audience Network, which leverages listener data and context to target advertisements.
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It propped up Google's total advertising revenue, which includes YouTube and its network advertising, in Q3, while the rest of the segment declined in revenue. IAB expects podcast ad spend to grow 8.1% in 2023. The Motley Fool has positions in and recommends Alphabet, Apple, Roku, Spotify Technology, The Trade Desk, and Walt Disney.
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