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17900.0
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2022-12-23 00:00:00 UTC
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Bull of the Day: Jabil (JBL)
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AAPL
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https://www.nasdaq.com/articles/bull-of-the-day%3A-jabil-jbl-1
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nan
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nan
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Jabil JBL is a manufacturing solutions provider and electronics maker. Jabil topped Zacks quarterly estimates on December 15 and raised its outlook once again to showcase its ongoing resilience as the wider economy and technology sector experience pullbacks.
Jabil stock has easily outperformed the S&P 500 and the Zacks Tech sector over the last decade and in 2022. And these are just a few of the reasons why JBL might be worth considering at the moment.
The JBL Basics
Jabil provides manufacturing services to companies in telecommunications and other industries. The firm’s client list includes the likes of Apple AAPL, SolarEdge SEDG, and other giants in critical and game-changing industries.
Jabil prides itself on operating in the background, working with hundreds of the biggest brands in the world to help make everything from smartphones and home appliances to healthcare technologies. Jabil boasts that it helps make its client’s “most complex ideas and products a reality.”
Jabil serves original equipment manufacturers and product companies across multiple industries and end markets. JBL’s laundry list of client areas and spaces includes compute & storage, appliances, automotive, healthcare, telecom, energy & industrial, and beyond.
JBL’s solutions include advanced assembly and automation, printed electronics, autonomous systems, and more. Meanwhile, its list of services spans from engineering and optics to supply chain, software, additive manufacturing, and others in between.
Image Source: Zacks Investment Research
Growth and Outlook
Jabil’s diversification has helped it grow steadily for years, including 14% growth in its fiscal 2022, which is highly impressive for a company that went public in the early 1990s and was founded long before that. JBL is also set to benefit from a broader onshoring/reshoring push from U.S. companies and the federal government.
Jabil on December 15 topped our Q1 FY23 earnings and revenue estimates, with its sales up 12% and adjusted EPS 20% higher. The growth was driven by 18% expansion in its Electronics Manufacturing Services segment. “I remain confident in our plan moving forward, which is supported by both strong secular tailwinds and continued refinement of our more traditional businesses,” CEO Mark Mondello said in prepared remarks.
Looking ahead, Zacks estimates call for JBL’s revenue to climb 3% in FY23 and another 3% in FY24 to reach $35.4 billion. This growth comes on top 12% average top line expansion over the last five years and roughly matches its YoY growth rates during a couple-year stretch prior to the recent run of outsized strength.
Jabil’s adjusted earnings are projected to climb by 9% in FY23 to hit $8.31 per share and another 6.3% in FY24. JBL has topped our EPS estimates by an average of 9% in the trailing four quarters and it’s beaten our bottom line estimates for five years running outside of one miss early in the pandemic.
Plus, Jabil’s earnings outlook has continued to improve for FY23 and FY24, which is no easy task as the overall outlook for S&P 500 earnings and the economy fade. JBL’s bottom-line positivity helps it land a Zacks Rank #1 (Strong Buy) right now.
Image Source: Zacks Investment Research
Other Fundamentals
Jabil is part of the Electronics - Manufacturing Services industry that currently ranks No. 1 out of over 250 Zacks industries. Being part of a top-ranked industry that’s showing strength in a difficult market is very important, and remember that studies have shown that 50% of a stock's price movement can be attributed to its industry.
Jabil lands “A” grades for Value and Momentum and a “B” for Growth in the Zacks Style Scores system. Plus, six of the seven brokerage recommendations Zacks has are “Strong Buys.” The company also pays a small dividend that’s yielding 0.5% at the moment.
JBL shares have only dipped -3% in 2022 vs. the Zacks Tech sector’s 35% drop. The stock has also experienced impressive second-half momentum, up 30% in the last six months to hit fresh highs on December 13.
Jabil has pulled back slightly from those highs and it trades 14% below its current average Zacks price target. And it sits below neutral RSI levels (50) at 47. Jabil’s recent performance is part of a 155% climb in the last five years vs. Tech’s 44% and a 350% jump during the past 15 years compared to 160% for the Zacks Tech sector.
Despite its long-term and recent outperformance, Jabil trades at a 50% discount to the Zacks Tech sector at 9.5X forward 12-month earnings. This also represents a discount compared to its own 15-year median and well below its highs of 23X.
Image Source: Zacks Investment Research
Bottom Line
Jabil stands to grow for years to come as technologies of all shapes and sizes drive the world and the economy forward. Let’s also remember that the covid pandemic and other factors spurred companies and the U.S. government to start manufacturing more crucial tech in the U.S. such as semiconductors, solar panels, and countless other high-tech offerings.
Jabil appears to be a worthy stock to consider for 2023 given its valuation and resilience, alongside its ability to grow even as the U.S. and the global economy face recession fears.
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
Jabil, Inc. (JBL) : Free Stock Analysis Report
SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The firm’s client list includes the likes of Apple AAPL, SolarEdge SEDG, and other giants in critical and game-changing industries. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report To read this article on Zacks.com click here. “I remain confident in our plan moving forward, which is supported by both strong secular tailwinds and continued refinement of our more traditional businesses,” CEO Mark Mondello said in prepared remarks.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report To read this article on Zacks.com click here. The firm’s client list includes the likes of Apple AAPL, SolarEdge SEDG, and other giants in critical and game-changing industries. Image Source: Zacks Investment Research Growth and Outlook Jabil’s diversification has helped it grow steadily for years, including 14% growth in its fiscal 2022, which is highly impressive for a company that went public in the early 1990s and was founded long before that.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report To read this article on Zacks.com click here. The firm’s client list includes the likes of Apple AAPL, SolarEdge SEDG, and other giants in critical and game-changing industries. Image Source: Zacks Investment Research Growth and Outlook Jabil’s diversification has helped it grow steadily for years, including 14% growth in its fiscal 2022, which is highly impressive for a company that went public in the early 1990s and was founded long before that.
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The firm’s client list includes the likes of Apple AAPL, SolarEdge SEDG, and other giants in critical and game-changing industries. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Other Fundamentals Jabil is part of the Electronics - Manufacturing Services industry that currently ranks No.
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17901.0
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2022-12-23 00:00:00 UTC
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After Hours Most Active for Dec 23, 2022 : C, BABA, MRNA, PFE, FRO, AAPL, QQQ, AMZN, INCY, CMCSA, EURN, GTLS
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-dec-23-2022-%3A-c-baba-mrna-pfe-fro-aapl-qqq-amzn-incy-cmcsa
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -14.73 to 10,970.72. The total After hours volume is currently 39,473,518 shares traded.
The following are the most active stocks for the after hours session:
Citigroup Inc. (C) is unchanged at $44.26, with 3,844,828 shares traded. C's current last sale is 77.65% of the target price of $57.
Alibaba Group Holding Limited (BABA) is +0.14 at $85.79, with 2,809,567 shares traded. As reported by Zacks, the current mean recommendation for BABA is in the "buy range".
Moderna, Inc. (MRNA) is +0.3904 at $199.47, with 1,559,364 shares traded. MRNA's current last sale is 99.74% of the target price of $200.
Pfizer, Inc. (PFE) is unchanged at $51.83, with 1,365,611 shares traded. As reported by Zacks, the current mean recommendation for PFE is in the "buy range".
Frontline Ltd. (FRO) is unchanged at $12.49, with 1,326,125 shares traded. FRO's current last sale is 78.06% of the target price of $16.
Apple Inc. (AAPL) is -0.09 at $131.77, with 1,138,027 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is -0.12 at $267.24, with 868,429 shares traded. This represents a 5.11% increase from its 52 Week Low.
Amazon.com, Inc. (AMZN) is -0.09 at $85.16, with 800,682 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Incyte Corporation (INCY) is unchanged at $81.36, with 717,987 shares traded. As reported in the last short interest update the days to cover for INCY is 7.303947; this calculation is based on the average trading volume of the stock.
Comcast Corporation (CMCSA) is unchanged at $35.14, with 690,503 shares traded. CMCSA's current last sale is 78.97% of the target price of $44.5.
Euronav NV (EURN) is unchanged at $17.24, with 574,766 shares traded. As reported by Zacks, the current mean recommendation for EURN is in the "buy range".
Chart Industries, Inc. (GTLS) is unchanged at $112.71, with 553,350 shares traded. As reported by Zacks, the current mean recommendation for GTLS 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 -0.09 at $131.77, with 1,138,027 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Alibaba Group Holding Limited (BABA) is +0.14 at $85.79, with 2,809,567 shares traded.
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Apple Inc. (AAPL) is -0.09 at $131.77, with 1,138,027 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 39,473,518 shares traded.
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Apple Inc. (AAPL) is -0.09 at $131.77, with 1,138,027 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 39,473,518 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 -0.09 at $131.77, with 1,138,027 shares traded. The NASDAQ 100 After Hours Indicator is down -14.73 to 10,970.72.
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17902.0
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2022-12-23 00:00:00 UTC
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SPY, RDMX: Big ETF Outflows
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AAPL
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https://www.nasdaq.com/articles/spy-rdmx%3A-big-etf-outflows
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nan
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nan
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the SPDR S&P 500 ETF Trust, where 13,050,000 units were destroyed, or a 1.4% decrease week over week. Among the largest underlying components of SPY, in morning trading today Apple is off about 0.8%, and Microsoft is lower by about 0.5%.
And on a percentage change basis, the ETF with the biggest outflow was the United States Fund Finder & ETF Screener, which lost 200,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. Among the largest underlying components of RDMX, in morning trading today Royal Bank of Canada is up about 0.1%, and Toronto-dominion Bank is up by about 0.5%.
VIDEO: SPY, RDMX: Big ETF Outflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the SPDR S&P 500 ETF Trust, where 13,050,000 units were destroyed, or a 1.4% decrease week over week. Among the largest underlying components of SPY, in morning trading today Apple is off about 0.8%, and Microsoft is lower by about 0.5%. VIDEO: SPY, RDMX: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of SPY, in morning trading today Apple is off about 0.8%, and Microsoft is lower by about 0.5%. Among the largest underlying components of RDMX, in morning trading today Royal Bank of Canada is up about 0.1%, and Toronto-dominion Bank is up by about 0.5%. VIDEO: SPY, RDMX: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the SPDR S&P 500 ETF Trust, where 13,050,000 units were destroyed, or a 1.4% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the United States Fund Finder & ETF Screener, which lost 200,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. Among the largest underlying components of RDMX, in morning trading today Royal Bank of Canada is up about 0.1%, and Toronto-dominion Bank is up by about 0.5%.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the SPDR S&P 500 ETF Trust, where 13,050,000 units were destroyed, or a 1.4% decrease week over week. Among the largest underlying components of SPY, in morning trading today Apple is off about 0.8%, and Microsoft is lower by about 0.5%. And on a percentage change basis, the ETF with the biggest outflow was the United States Fund Finder & ETF Screener, which lost 200,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior.
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17903.0
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2022-12-23 00:00:00 UTC
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Dow Movers: MMM, CVX
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-mmm-cvx-0
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nan
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nan
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In early trading on Friday, shares of Chevron topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.3%. Year to date, Chevron registers a 48.6% gain.
And the worst performing Dow component thus far on the day is MMM, trading down 2.2%. MMM is lower by about 33.1% looking at the year to date performance.
Two other components making moves today are Apple, trading down 1.7%, and Travelers Companies, trading up 0.2% on the day.
VIDEO: Dow Movers: MMM, CVX
The views and 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 Friday, shares of Chevron topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.3%. And the worst performing Dow component thus far on the day is MMM, trading down 2.2%. VIDEO: Dow Movers: MMM, CVX The views and 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 Friday, shares of Chevron topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.3%. Year to date, Chevron registers a 48.6% gain. And the worst performing Dow component thus far on the day is MMM, trading down 2.2%.
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In early trading on Friday, shares of Chevron topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.3%. And the worst performing Dow component thus far on the day is MMM, trading down 2.2%. Two other components making moves today are Apple, trading down 1.7%, and Travelers Companies, trading up 0.2% on the day.
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And the worst performing Dow component thus far on the day is MMM, trading down 2.2%. MMM is lower by about 33.1% looking at the year to date performance. VIDEO: Dow Movers: MMM, CVX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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17904.0
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2022-12-23 00:00:00 UTC
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2023 Should Be a Great Year to Go Bargain Shopping for Growth Stocks
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AAPL
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https://www.nasdaq.com/articles/2023-should-be-a-great-year-to-go-bargain-shopping-for-growth-stocks
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nan
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nan
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The best, simplest way to build significant wealth over the long run is, arguably, to just plunk meaningful sums in one or more low-fee, broad-market index funds -- and to do so regularly. The overall stock market has averaged annual gains of close to 10% over many decades, and it should deliver a similar return, plus or minus a few percentage points, over your long investing period.
If you'd like to aim for higher-than-average returns, consider adding some growth stocks to your mix.
Image source: Getty Images.
What are growth stocks?
Growth stocks are tied to companies growing at an above-average clip. Many such companies are relatively small, ramping up their business quickly. Others can be big and established.
In general, huge companies aren't able to grow as briskly as many small ones, but there are more than a few massive companies getting more massive at a fast rate. Visa, for example, recently posted fourth-quarter earnings up 19% year over year, while Taiwan Semiconductor saw its second-quarter revenue pop more than 43%.
Characteristics of great growth stocks
Here are some traits that can help you identify good growth stocks. Some apply to non-growth stocks, too.
Growth: Their top line -- revenue -- should be growing quickly. If their bottom line -- earnings -- is growing briskly too, that's a plus. If they're not yet profitable, it's good if they're getting close to that, with losses shrinking.
Innovation: They will often offer an innovative product or service that is quickly being embraced by customers.
Low debt: It's not the end of the world if a company takes on debt to fuel its growth, but the less debt, the better, and the lower the interest rates, the better. (You might find interest rates listed in footnotes in financial reports.) Check to see if the company's debt is manageable: Is the company generating ample cash to cover obligations?
Sustainable competitive advantages: A fast-growing company with an innovative product may not be a great prospect if it's easier for others to introduce similar offerings. This means high barriers to entry, such as when there's proprietary technology, exclusive licenses, or strong brand loyalty, can be powerful competitive advantages.
Great growth potential: It's a big plus if a company's target market is large. This is sometimes referred to as a company's total addressable market (TAM).
Solid market share: It's a nice green flag if a company is already a significant player in its niche. Ideally, market share will be growing, too.
Good words from trusted sources: Don't buy stocks on someone else's word without doing your own reading and thinking about them. But you might find some great prospects from trusted sources. Our Motley Fool articles often cover various growth stocks, for example. (Note that not all Fools will agree on the attractiveness of any stock. Opinions vary in the investing world.)
Motley Fool co-founder David Gardner introduced a framework for finding growth stocks that has been quite effective. He dubbed it Rule Breakers investing. While one school of investing thought will have you only buying seemingly undervalued stocks, there's a case to be made that it can be worth paying a premium price for outstanding growth stocks -- and Rule Breakers investing shares that view.
Set yourself up for success
As you start looking for good growth stocks for your portfolio, you might improve your long-term performance by keeping these things in mind:
Growth stocks can be volatile: The recent stock market downturn has illustrated that very well. Even big growth stocks such as Amazon recently had stocks down more than 50% from their 52-week highs. You need to be prepared for such volatility. And, ideally, try not to pay too much of a premium for any given stock. Fortunately, this is a particularly promising time to hunt for great growth stocks priced attractively.
Diversify: Our Motley Fool investing philosophy suggests spreading your money across at least 25 different individual stocks. This can prevent you from ending up with too many eggs in a basket that implodes. (Not every growth stock will remain one.)
Plan to wait and watch: Aim to hang on to your stocks for at least five years, if not several decades. Don't hold blindly, though -- keep up with their progress and developments, so that you'll notice if things start heading south.
Other paths to wealth
Growth stocks are not your only choice. Indeed, many people swear by value investing instead -- including Warren Buffett. Value investors aim to buy into solid companies when their stocks are trading below their intrinsic value. Dividend-paying stocks are also terrific candidates for your long-term portfolio, as the share prices of healthy, growing dividend payers will likely rise over time, while their payouts will also be increased.
These kinds of stocks are not always mutually exclusive. Even Warren Buffett's company, Berkshire Hathaway, recently held more than $1 billion worth of Amazon and more than $120 billion worth of Apple. A growth stock can become undervalued -- especially at times like right now, after a market crash -- offering the best of both growth and value investing worlds. And many of these companies pay dividends, too.
Remember that some good index funds are all most of us really need, but if you want to try to juice your returns, consider growth stocks.
10 stocks we like better than Walmart
When our award-winning analyst team has an investing tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Walmart wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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. Selena Maranjian has positions in Amazon.com, Apple, and Berkshire Hathaway. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, Taiwan Semiconductor Manufacturing, and Visa. 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.
|
The best, simplest way to build significant wealth over the long run is, arguably, to just plunk meaningful sums in one or more low-fee, broad-market index funds -- and to do so regularly. The overall stock market has averaged annual gains of close to 10% over many decades, and it should deliver a similar return, plus or minus a few percentage points, over your long investing period. Dividend-paying stocks are also terrific candidates for your long-term portfolio, as the share prices of healthy, growing dividend payers will likely rise over time, while their payouts will also be increased.
|
While one school of investing thought will have you only buying seemingly undervalued stocks, there's a case to be made that it can be worth paying a premium price for outstanding growth stocks -- and Rule Breakers investing shares that view. Even Warren Buffett's company, Berkshire Hathaway, recently held more than $1 billion worth of Amazon and more than $120 billion worth of Apple. 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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Characteristics of great growth stocks Here are some traits that can help you identify good growth stocks. While one school of investing thought will have you only buying seemingly undervalued stocks, there's a case to be made that it can be worth paying a premium price for outstanding growth stocks -- and Rule Breakers investing shares that view. Set yourself up for success As you start looking for good growth stocks for your portfolio, you might improve your long-term performance by keeping these things in mind: Growth stocks can be volatile: The recent stock market downturn has illustrated that very well.
|
What are growth stocks? Our Motley Fool articles often cover various growth stocks, for example. While one school of investing thought will have you only buying seemingly undervalued stocks, there's a case to be made that it can be worth paying a premium price for outstanding growth stocks -- and Rule Breakers investing shares that view.
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17905.0
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2022-12-23 00:00:00 UTC
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S&P 500 Bull Market: Here's How to Start Preparing for the Upswing
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AAPL
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https://www.nasdaq.com/articles/sp-500-bull-market%3A-heres-how-to-start-preparing-for-the-upswing
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nan
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nan
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If you're feeling discouraged about the stock market right now, you're not alone. It's been a hard year for investors, with the S&P 500, the Nasdaq, and the Dow Jones Industrial Average all dipping into bear market territory.
Unfortunately, nobody knows exactly how long this slump will last. However, a bull market is coming eventually.
Exactly when that will happen is anyone's guess. But right now is the best time to start preparing. By taking certain steps now, you can potentially make a lot of money. Here's how.
Image source: Getty Images.
Is a bull market coming in 2023?
The stock market's performance is impossible to predict in the short term, so even the experts can't guarantee what will happen over the next year. That said, the S&P 500 has a long track record of turning bear markets into bull markets. It's almost 100% certain, then, that an upswing is on the horizon.
Historically, the average S&P 500 bear market has lasted around 343 days, or just under a year. Sometimes, they can last longer -- the dot-com bubble burst holds the record for the longest bear market, at 929 days -- but few have gone longer than 18 months.
This year, the S&P 500 officially entered a bear market in June, or around 192 days ago, as of this writing. While it may not seem like the best time to invest, now is the time to get ready for the upcoming bull market.
A once-in-a-decade investing opportunity
One of the best ways to make money in the stock market is to invest during the market's low points, then simply wait for prices to recover. Right now, stock prices are lower than they've been in years.
Amazon, for instance, is down more than 50% from its peak. Apple and Microsoft are both down roughly 30% from their highs, and Alphabet has dropped by nearly 40%.
Some stocks haven't seen these kinds of slumps since the Great Recession. And once the market recovers, it could be years before you can buy stocks at these discounts again. If you've been on the fence, now may be the time to snag high-priced stocks for a fraction of the cost.
Making the most of an upswing
Buying stocks during a bear market is only half of the equation. To take full advantage of the upcoming bull market, you'll need to hold those investments until the market recovers.
Again, when that will occur is unclear right now, but it will likely happen within the next year or two. By riding out the storm, you could potentially make a lot of money.
For example, say you had invested in Amazon in 2008 -- at the height of the Great Recession. If you simply held your investments for five years, you'd have seen returns of more than 900%.
AMZN data by YCharts.
In other words, if you had invested $1,000 in Amazon in 2008, you'd have accumulated roughly $10,350 within five years.
Of course, there are no guarantees that Amazon -- or any stock -- will see these types of returns during the next bull market. But by investing when stocks are at rock bottom and simply holding them through the recovery period, you're far more likely to make money.
While it may not seem like it, market slumps can be fantastic buying opportunities. A bull market is coming at some point, and by investing now, you'll be well prepared to take advantage of the upswing -- and potentially make a lot of money.
10 stocks we like better than Walmart
When our award-winning analyst team has an investing tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Walmart wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
Stock Advisor returns as of December 1, 2022
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Katie Brockman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It's been a hard year for investors, with the S&P 500, the Nasdaq, and the Dow Jones Industrial Average all dipping into bear market territory. The stock market's performance is impossible to predict in the short term, so even the experts can't guarantee what will happen over the next year. A bull market is coming at some point, and by investing now, you'll be well prepared to take advantage of the upswing -- and potentially make a lot of money.
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A once-in-a-decade investing opportunity One of the best ways to make money in the stock market is to invest during the market's low points, then simply wait for prices to recover. 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.
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A once-in-a-decade investing opportunity One of the best ways to make money in the stock market is to invest during the market's low points, then simply wait for prices to recover. To take full advantage of the upcoming bull market, you'll need to hold those investments until the market recovers. A bull market is coming at some point, and by investing now, you'll be well prepared to take advantage of the upswing -- and potentially make a lot of money.
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A bull market is coming at some point, and by investing now, you'll be well prepared to take advantage of the upswing -- and potentially make a lot of money. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Walmart wasn't one of them! The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, and Microsoft.
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17906.0
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2022-12-23 00:00:00 UTC
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Why Apple's No Longer Interested In NFL Sunday Ticket
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AAPL
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https://www.nasdaq.com/articles/why-apples-no-longer-interested-in-nfl-sunday-ticket
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nan
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nan
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Football fans still don't know where they'll be able to watch every out-of-market game next season, but it probably won't be on Apple's (NASDAQ: AAPL) streaming service.
The tech giant was once considered the leading candidate to land the National Football League's Sunday Ticket package, but negotiations have reportedly fallen silent after Apple couldn't see the logic in paying billions for the rights. The NFL is looking to package the service with its NFL Network and NFL Redzone channels, which certainly make more sense with a traditional pay-TV distributor, not Apple.
Apple's decision to bow out of negotiations as the package became bloated and it couldn't get exactly what it wanted shows discipline. At the same time, it leaves the door open for Amazon (NASDAQ: AMZN) and Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google to make a deal.
Apple's already spending big on Apple TV+
Apple's streaming content budget is absolutely massive, even compared to some of the legacy media companies pushing into streaming.
Apple's slowly building up a nice-sized library of original films and series that have gotten a lot of buzz from viewers and critics alike. It's already won a Best Picture Oscar and loads of Emmys.
Apple's primarily focused on developing prestige films and series with big-name talent and high production value. Despite its relatively small library of titles, its production budget adds up fast. Wells Fargo analysts expected Apple to spend around $8 billion on content at the start of 2022. Only Disney, Amazon, and Netflix spent more on streaming video this year.
Apple also inked a deal with Major League Soccer earlier this year, agreeing to pay a minimum of $250 million per year for the rights to every game in the league. It will, however, ask subscribers to pay more for access to those games. It was reportedly mulling the idea of including Sunday Ticket as part of the standard Apple TV+ subscription, to which the NFL objected.
What's more, Apple is continuing to increase the number of series it greenlights while the rest of the industry pulls back on content production to focus on profitability. The only other company developing more series in the back half of 2022 than it did in 2021 is Amazon. If that trend continues, Apple will have more opportunities to develop better programming than its competitors, and the rights to Sunday Ticket won't be as valuable, relatively speaking, to the service.
In short, Apple has better things to spend its already massive streaming budget on than NFL rights. Investors should applaud the discipline Apple's taking in dropping out of negotiations when it can't get exactly what it wants. It's refocusing its budget on content that fits its platform better and retains its value longer. The move could help push the Apple TV+ service toward the black, becoming a valuable part of its increasingly important services segment.
The NFL makes more sense elsewhere
Apple was always a strange fit for the NFL Sunday Ticket package. The league had no pre-existing relationship with the company -- which is actually part of the reason it wanted to sell the rights to the tech giant. But for the way Apple's set up its streaming service, it doesn't make much sense.
Sunday Ticket makes much more sense on either Amazon Prime or Google's YouTube. Amazon has exclusive rights to Thursday Night Football in the United States, and it has effectively used these games to sign up new Prime members and sell advertising. Positioning Sunday Ticket as an add-on to Prime memberships could support the valuable subscription service while improving subscriber retention during the most important quarter in retail.
YouTube, meanwhile, has built the largest virtual pay-TV service in the United States. With over 5 million subscribers, though, it's still relatively small compared to the big cable companies. Google could easily copy the old model for Sunday Ticket -- using it as a loss-leader to sell more pay-TV subscriptions. That would open the door to more ad revenue for YouTube and an improved position in negotiating carriage fees with cable networks.
Either company can probably get more value out of Sunday Ticket than Apple, and it doesn't make sense for Apple to try to outbid either, even if it has the cash to do so.
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. 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. Adam Levy has positions in Alphabet, Amazon.com, Apple, Netflix, and Walt Disney. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Netflix, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Football fans still don't know where they'll be able to watch every out-of-market game next season, but it probably won't be on Apple's (NASDAQ: AAPL) streaming service. The tech giant was once considered the leading candidate to land the National Football League's Sunday Ticket package, but negotiations have reportedly fallen silent after Apple couldn't see the logic in paying billions for the rights. If that trend continues, Apple will have more opportunities to develop better programming than its competitors, and the rights to Sunday Ticket won't be as valuable, relatively speaking, to the service.
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Football fans still don't know where they'll be able to watch every out-of-market game next season, but it probably won't be on Apple's (NASDAQ: AAPL) streaming service. At the same time, it leaves the door open for Amazon (NASDAQ: AMZN) and Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google to make a deal. Apple's already spending big on Apple TV+ Apple's streaming content budget is absolutely massive, even compared to some of the legacy media companies pushing into streaming.
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Football fans still don't know where they'll be able to watch every out-of-market game next season, but it probably won't be on Apple's (NASDAQ: AAPL) streaming service. Apple's already spending big on Apple TV+ Apple's streaming content budget is absolutely massive, even compared to some of the legacy media companies pushing into streaming. Either company can probably get more value out of Sunday Ticket than Apple, and it doesn't make sense for Apple to try to outbid either, even if it has the cash to do so.
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Football fans still don't know where they'll be able to watch every out-of-market game next season, but it probably won't be on Apple's (NASDAQ: AAPL) streaming service. But for the way Apple's set up its streaming service, it doesn't make much sense. Sunday Ticket makes much more sense on either Amazon Prime or Google's YouTube.
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17907.0
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2022-12-23 00:00:00 UTC
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LG Display to halt production of liquid crystal display TV panels in South Korea
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AAPL
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https://www.nasdaq.com/articles/lg-display-to-halt-production-of-liquid-crystal-display-tv-panels-in-south-korea
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nan
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nan
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SEOUL, Dec 23 (Reuters) - South Korea's LG Display Co Ltd 034220.KS said on Friday it plans to halt the production of its liquid-crystal display (LCD) TV panels in South Korea due to intensifying competition.
The Apple Inc AAPL.O supplier expects the decision to halt production of LCD TV panels would not have impact on its normal business activities, LG Display said in a regulatory filing.
(Reporting by Hyunsu Yim and Heekyong Yang; Editing by Christopher Cushing)
((Hyunsu.Yim@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Apple Inc AAPL.O supplier expects the decision to halt production of LCD TV panels would not have impact on its normal business activities, LG Display said in a regulatory filing. SEOUL, Dec 23 (Reuters) - South Korea's LG Display Co Ltd 034220.KS said on Friday it plans to halt the production of its liquid-crystal display (LCD) TV panels in South Korea due to intensifying competition. (Reporting by Hyunsu Yim and Heekyong Yang; Editing by Christopher Cushing) ((Hyunsu.Yim@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Apple Inc AAPL.O supplier expects the decision to halt production of LCD TV panels would not have impact on its normal business activities, LG Display said in a regulatory filing. SEOUL, Dec 23 (Reuters) - South Korea's LG Display Co Ltd 034220.KS said on Friday it plans to halt the production of its liquid-crystal display (LCD) TV panels in South Korea due to intensifying competition. (Reporting by Hyunsu Yim and Heekyong Yang; Editing by Christopher Cushing) ((Hyunsu.Yim@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Apple Inc AAPL.O supplier expects the decision to halt production of LCD TV panels would not have impact on its normal business activities, LG Display said in a regulatory filing. SEOUL, Dec 23 (Reuters) - South Korea's LG Display Co Ltd 034220.KS said on Friday it plans to halt the production of its liquid-crystal display (LCD) TV panels in South Korea due to intensifying competition. (Reporting by Hyunsu Yim and Heekyong Yang; Editing by Christopher Cushing) ((Hyunsu.Yim@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Apple Inc AAPL.O supplier expects the decision to halt production of LCD TV panels would not have impact on its normal business activities, LG Display said in a regulatory filing. SEOUL, Dec 23 (Reuters) - South Korea's LG Display Co Ltd 034220.KS said on Friday it plans to halt the production of its liquid-crystal display (LCD) TV panels in South Korea due to intensifying competition. (Reporting by Hyunsu Yim and Heekyong Yang; Editing by Christopher Cushing) ((Hyunsu.Yim@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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17908.0
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2022-12-23 00:00:00 UTC
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Apple's Australian workers go on Christmas strike demanding better wages, work terms
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AAPL
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https://www.nasdaq.com/articles/apples-australian-workers-go-on-christmas-strike-demanding-better-wages-work-terms
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nan
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nan
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Dec 23 (Reuters) - Apple Inc's AAPL.O workers in Australia initiated a strike Friday afternoon, demanding better working conditions and wages, a workers' union said, a move that might dent sales of the tech giant during the peak Christmas shopping time.
Workers represented by Australia's Retail and Fast Food Workers Union (RAFFWU) had earlier this month announced a walk out from Apple's retail outlets nationwide at 3 PM local time (0400 GMT) on Dec. 23, with plans to stay away throughout Christmas Eve.
The strike comes in the wake of the tech giant facing disruption at its flagship iPhone plant in China owing to a rare workers' protest against ultra-severe COVID rules in the country and poor handling of the situation at the factory.
Earlier in June, Apple workers in Maryland, United States, became the first retail employees of the tech giant to unionize in the country as workers continued to criticize the company's working conditions.
RAFFWU, which is at the forefront of the strike, claims an eight-year old agreement denies workers "weekends, consecutive days off, set rosters, set days of work, 12-hour breaks between shifts, overtime rates," among others.
"The 2014 agreement is one such agreement which pushed workers below the legal minimum," the union alleged, demanding the iPhone maker immediately return to the table and negotiate a fair agreement.
Apple declined a Reuters request for comment.
(Reporting by Jaskiran Singh in Bengaluru; Editing by Rashmi Aich)
((Jaskiran.Singh@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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Dec 23 (Reuters) - Apple Inc's AAPL.O workers in Australia initiated a strike Friday afternoon, demanding better working conditions and wages, a workers' union said, a move that might dent sales of the tech giant during the peak Christmas shopping time. Workers represented by Australia's Retail and Fast Food Workers Union (RAFFWU) had earlier this month announced a walk out from Apple's retail outlets nationwide at 3 PM local time (0400 GMT) on Dec. 23, with plans to stay away throughout Christmas Eve. The strike comes in the wake of the tech giant facing disruption at its flagship iPhone plant in China owing to a rare workers' protest against ultra-severe COVID rules in the country and poor handling of the situation at the factory.
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Dec 23 (Reuters) - Apple Inc's AAPL.O workers in Australia initiated a strike Friday afternoon, demanding better working conditions and wages, a workers' union said, a move that might dent sales of the tech giant during the peak Christmas shopping time. Workers represented by Australia's Retail and Fast Food Workers Union (RAFFWU) had earlier this month announced a walk out from Apple's retail outlets nationwide at 3 PM local time (0400 GMT) on Dec. 23, with plans to stay away throughout Christmas Eve. RAFFWU, which is at the forefront of the strike, claims an eight-year old agreement denies workers "weekends, consecutive days off, set rosters, set days of work, 12-hour breaks between shifts, overtime rates," among others.
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Dec 23 (Reuters) - Apple Inc's AAPL.O workers in Australia initiated a strike Friday afternoon, demanding better working conditions and wages, a workers' union said, a move that might dent sales of the tech giant during the peak Christmas shopping time. Workers represented by Australia's Retail and Fast Food Workers Union (RAFFWU) had earlier this month announced a walk out from Apple's retail outlets nationwide at 3 PM local time (0400 GMT) on Dec. 23, with plans to stay away throughout Christmas Eve. Earlier in June, Apple workers in Maryland, United States, became the first retail employees of the tech giant to unionize in the country as workers continued to criticize the company's working conditions.
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Dec 23 (Reuters) - Apple Inc's AAPL.O workers in Australia initiated a strike Friday afternoon, demanding better working conditions and wages, a workers' union said, a move that might dent sales of the tech giant during the peak Christmas shopping time. Workers represented by Australia's Retail and Fast Food Workers Union (RAFFWU) had earlier this month announced a walk out from Apple's retail outlets nationwide at 3 PM local time (0400 GMT) on Dec. 23, with plans to stay away throughout Christmas Eve. The strike comes in the wake of the tech giant facing disruption at its flagship iPhone plant in China owing to a rare workers' protest against ultra-severe COVID rules in the country and poor handling of the situation at the factory.
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17909.0
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2022-12-23 00:00:00 UTC
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Apple May Hit This Big Milestone Sooner Than Expected
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AAPL
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https://www.nasdaq.com/articles/apple-may-hit-this-big-milestone-sooner-than-expected
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nan
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nan
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Apple's (NASDAQ: AAPL) making a big push into advertising, and it might reach its long-term goal in just a couple of years.
Earlier this year, VP of Advertising Todd Teresi said he wants to get the ad business generating double-digit billions of revenue for the tech giant. That's a big step up from the roughly $4 billion it was estimated to have generated in fiscal 2021. A new estimate from Insider Intelligence, though, puts the company's global annual ad sales at $10.7 billion by the end of 2024.
Here's what's driving the rapid advertising growth, and what it means for investors.
A billboard in your pocket
Apple has made several changes over the last year or so that have fueled significant growth in the advertising business.
Last summer it instituted App Tracking Transparency in iOS 14.5. After iPhone owners upgraded their devices, they were continuously asked if they'd like for their various apps to be able to gather data from all of their activity on their iPhone. Unsurprisingly, the vast majority said they would not like that.
As a result, it became a lot more difficult for companies like Meta Platforms to track how well their ads convert and gather important targeting data for their advertisements. That made it hard to justify the top dollar marketers were paying for ads on Facebook and Instagram or other social media companies.
Ad dollars flowed out of social media, and some of those ad dollars flowed into Apple's pockets. Apple's App Store search ads presented much better value after it became impossible to track how well app-install ads converted on other platforms.
As those ads became more valuable, Apple also moved to expand its ad inventory. It started showing ads on more surfaces within the App Store app like "today" and third-party app pages. It also shows ads in the stocks and news apps. Apple has mulled several more places it could stick advertising products, including maps, podcasts, and Apple TV+, specifically around MLS content.
Finding or developing new inventory for advertisements is likely a key part of Apple's advertising strategy going forward as it's seen a spike in demand for its ads. It's also reportedly developing a demand-side platform for ad buyers, enabling it to scale the business and make it easier for marketers to automate and manage ad campaigns across multiple types of ads Apple may offer.
The growing importance of advertising for Apple
Advertising falls under Apple's services segment, which has quickly become, by far, Apple's second-biggest business after the iPhone.
To be sure, advertising is still a tiny sliver of Apple's total revenue, which came to $394 billion last year. It's even just a small part of the services segment, which generated $78 billion last year.
But there's another piece included in advertising in Apple's accounting besides ad sales to marketers. Apple also includes Traffic Acquisition Costs (TAC) paid by Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google for placement in Safari and Siri as the default search engine. Those payments have been estimated to be as much as $15 billion. Total TAC for Google was up nearly $4 billion or 12% through the first nine months of the year, with growth driven primarily by payments to distribution partners (like Apple).
But Google's payments bump might not be as big next year or the year after that. Advertisers are pulling back on spending amid economic uncertainty, and while the search ads business is a reliable source of sales, those sales may not be as plentiful.
Apple probably doesn't want to rely on the whims of a third party to generate a significant source of revenue for its services business. It could face a situation where it needs or wants to cut ties with Google -- it would certainly fit with its focus on data privacy -- at any point in the future, and it doesn't want to sacrifice billions to do so. It may also want to build its own search engine, a move Insider analyst Andrew Lipsman estimates could gross it $15 billion per year in revenue.
As Apple charts a path toward $10 billion in ad revenue in short order, investors should look for ways the company is expanding the high-margin business to grow profits for shareholders.
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
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. Adam Levy has positions in Alphabet, Apple, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, 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's (NASDAQ: AAPL) making a big push into advertising, and it might reach its long-term goal in just a couple of years. Earlier this year, VP of Advertising Todd Teresi said he wants to get the ad business generating double-digit billions of revenue for the tech giant. It could face a situation where it needs or wants to cut ties with Google -- it would certainly fit with its focus on data privacy -- at any point in the future, and it doesn't want to sacrifice billions to do so.
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Apple's (NASDAQ: AAPL) making a big push into advertising, and it might reach its long-term goal in just a couple of years. The growing importance of advertising for Apple Advertising falls under Apple's services segment, which has quickly become, by far, Apple's second-biggest business after the iPhone. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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Apple's (NASDAQ: AAPL) making a big push into advertising, and it might reach its long-term goal in just a couple of years. Apple's App Store search ads presented much better value after it became impossible to track how well app-install ads converted on other platforms. It's also reportedly developing a demand-side platform for ad buyers, enabling it to scale the business and make it easier for marketers to automate and manage ad campaigns across multiple types of ads Apple may offer.
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Apple's (NASDAQ: AAPL) making a big push into advertising, and it might reach its long-term goal in just a couple of years. A billboard in your pocket Apple has made several changes over the last year or so that have fueled significant growth in the advertising business. But Google's payments bump might not be as big next year or the year after that.
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17910.0
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2022-12-23 00:00:00 UTC
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Better Buy for 2023: Disney vs. Amazon
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AAPL
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https://www.nasdaq.com/articles/better-buy-for-2023%3A-disney-vs.-amazon
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nan
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nan
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The entertainment industry has had a challenging couple of years, with pandemic closures in 2021 hampering theater and amusement park revenue and increased streaming competition in 2022 resulting in a heated war over subscribers.
As a result, it has become crucial to invest in entertainment companies with diverse businesses that can continue growing regardless of market conditions.
Shares in Disney (NYSE: DIS) and Amazon (NASDAQ: AMZN) have tumbled more than 40% since January amid a sell-off as critical business segments have suffered revenue declines.
However, the companies have continued to report growth as other segments have managed to pick up the slack.
Disney and Amazon are some of the biggest names in their respective industries, with their stock declines offering investors a potential bargain.
So, which is the better buy? Let's find out.
Disney
The Walt Disney Company has watched its stock slide 44% year to date, with shares dipping almost 8% from Dec. 14 to Dec. 21 after the underwhelming opening of Avatar: The Way of Water.
The sequel to the highest-grossing film of all time earned $134 million in its opening weekend. Disney had estimated between $135 million to $150 million, and industry analysts projected an average of $175 million.
The dismal returns were primarily fueled by reduced theater attendance in China, the franchise's biggest market.
While movie theaters in China remain open, a recent spike in COVID-19 cases has stunted ticket sales.
In its latest quarter, Disney's media and entertainment segment saw revenue fall 3% year over year to $12.7 billion, while operating income fell 91% to $83 million after a $30 billion investment in content throughout 2022 to expand Disney+.
As a result, Disney may have been counting on success from Avatar: The Way of Water to instill confidence in investors.
Despite a challenging year in Disney's media segment, its thriving parks business has propelled the company.
In fourth-quarter 2022, parks revenue soared 36% year over year to $12.7 billion, with operating income increasing more than 100% to $1.5 billion as pandemic reopenings welcomed guests back in droves.
As revealed in its Q4 2022 earnings report, the company expects "operating losses to narrow going forward" and for Disney+ to "achieve profitability in fiscal 2024."
Along with four Marvel blockbusters lined up in 2023, and the final installment to the Indiana Jones franchise, next year will likely see much-improved media earnings alongside continued growth in its parks.
Disney is coming off a rough year, but its heavy investment in content has paid off by attaining the most streaming subscribers in the industry.
Next year could see its stock rise consistently as operating losses decrease and it prioritizes profits in its streaming business, with theater releases and theme parks taking care of the rest.
Amazon
As a titan of e-commerce and cloud computing, Amazon is one of the most diverse companies participating in the entertainment industry.
The company's Prime Video streaming service has become a staple in most U.S. homes. It is included in Amazon's Prime subscription service, which hit 157.4 million domestic members in 2022, about 59.8% of the US population.
However, Amazon's stock has plunged 50% year to date, with economic headwinds stifling e-commerce earnings.
In third-quarter 2022, the company's North American revenue rose 20% year over year to $78.8 billion, with operating income reporting a negative $412 million. Meanwhile, foreign exchange fluctuations resulting in a strong dollar caused its international segment to decrease by 4.8% and operating losses to hit $2.4 billion.
Despite a challenging year for e-commerce, Amazon's cloud computing business in Amazon Web Services (AWS) kept the company afloat by providing 100% of its operating income in Q3 2022. The segment had revenue increase 27% year over year to $20.5 billion, while operating income hit $5.4 billion.
After a year of economic decline, Amazon's third quarter highlighted the importance of having multiple revenue streams from varied industries.
The most attractive part of Amazon's business is AWS, with its leading 34% market share in an industry worth $368.97 billion, expected to have a compound annual growth rate of 15.7% until 2030.
Amazon is well-positioned to see significant gains from cloud computing for the long term and should be on a great path once temporary declines in e-commerce resolve.
After substantial hits to shares and revenue in 2022, Amazon and Disney are going into the new year on the back foot.
The companies will likely start to turn things around in 2023, but it will take time for them to meet their full potential. With stocks such as Microsoft and Apple around, which offer considerably better value, neither Disney nor Amazon seems like a must-buy right now.
However, if you're dead set on one of these companies, I'd choose Disney for 2023.
It suffered this year from heavy content spending; however, it's ringing in the new year as a leader of streaming, with a plan to reduce operating losses, and a stacked lineup of major theatrical releases. Meanwhile, a potential recession could cause Amazon's e-commerce business to decline further in 2023.
Find out why Walt Disney is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Walt Disney 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
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, 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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The entertainment industry has had a challenging couple of years, with pandemic closures in 2021 hampering theater and amusement park revenue and increased streaming competition in 2022 resulting in a heated war over subscribers. Shares in Disney (NYSE: DIS) and Amazon (NASDAQ: AMZN) have tumbled more than 40% since January amid a sell-off as critical business segments have suffered revenue declines. Next year could see its stock rise consistently as operating losses decrease and it prioritizes profits in its streaming business, with theater releases and theme parks taking care of the rest.
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In its latest quarter, Disney's media and entertainment segment saw revenue fall 3% year over year to $12.7 billion, while operating income fell 91% to $83 million after a $30 billion investment in content throughout 2022 to expand Disney+. Despite a challenging year for e-commerce, Amazon's cloud computing business in Amazon Web Services (AWS) kept the company afloat by providing 100% of its operating income in Q3 2022. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple.
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Disney The Walt Disney Company has watched its stock slide 44% year to date, with shares dipping almost 8% from Dec. 14 to Dec. 21 after the underwhelming opening of Avatar: The Way of Water. In its latest quarter, Disney's media and entertainment segment saw revenue fall 3% year over year to $12.7 billion, while operating income fell 91% to $83 million after a $30 billion investment in content throughout 2022 to expand Disney+. Despite a challenging year for e-commerce, Amazon's cloud computing business in Amazon Web Services (AWS) kept the company afloat by providing 100% of its operating income in Q3 2022.
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In its latest quarter, Disney's media and entertainment segment saw revenue fall 3% year over year to $12.7 billion, while operating income fell 91% to $83 million after a $30 billion investment in content throughout 2022 to expand Disney+. Despite a challenging year for e-commerce, Amazon's cloud computing business in Amazon Web Services (AWS) kept the company afloat by providing 100% of its operating income in Q3 2022. The Motley Fool has positions in and recommends Amazon.com, Apple, Microsoft, and Walt Disney.
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17911.0
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2022-12-22 00:00:00 UTC
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Noteworthy Thursday Option Activity: CHTR, AAPL, ENPH
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AAPL
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-chtr-aapl-enph
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Charter Communications Inc (Symbol: CHTR), where a total of 21,684 contracts have traded so far, representing approximately 2.2 million underlying shares. That amounts to about 128.4% of CHTR's average daily trading volume over the past month of 1.7 million shares. Especially high volume was seen for the $430 strike put option expiring January 20, 2023, with 5,223 contracts trading so far today, representing approximately 522,300 underlying shares of CHTR. Below is a chart showing CHTR's trailing twelve month trading history, with the $430 strike highlighted in orange:
Apple Inc (Symbol: AAPL) options are showing a volume of 966,077 contracts thus far today. That number of contracts represents approximately 96.6 million underlying shares, working out to a sizeable 121.9% of AAPL's average daily trading volume over the past month, of 79.2 million shares. Particularly high volume was seen for the $130 strike put option expiring December 23, 2022, with 60,881 contracts trading so far today, representing approximately 6.1 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $130 strike highlighted in orange:
And Enphase Energy Inc. (Symbol: ENPH) saw options trading volume of 30,046 contracts, representing approximately 3.0 million underlying shares or approximately 94.6% of ENPH's average daily trading volume over the past month, of 3.2 million shares. Especially high volume was seen for the $300 strike put option expiring December 23, 2022, with 1,052 contracts trading so far today, representing approximately 105,200 underlying shares of ENPH. Below is a chart showing ENPH's trailing twelve month trading history, with the $300 strike highlighted in orange:
For the various different available expirations for CHTR options, AAPL options, or ENPH options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Funds Holding GRAY
HUGS Videos
Funds Holding UBCB
The views and 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 $130 strike put option expiring December 23, 2022, with 60,881 contracts trading so far today, representing approximately 6.1 million underlying shares of AAPL. Below is a chart showing CHTR's trailing twelve month trading history, with the $430 strike highlighted in orange: Apple Inc (Symbol: AAPL) options are showing a volume of 966,077 contracts thus far today. That number of contracts represents approximately 96.6 million underlying shares, working out to a sizeable 121.9% of AAPL's average daily trading volume over the past month, of 79.2 million shares.
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Below is a chart showing CHTR's trailing twelve month trading history, with the $430 strike highlighted in orange: Apple Inc (Symbol: AAPL) options are showing a volume of 966,077 contracts thus far today. Particularly high volume was seen for the $130 strike put option expiring December 23, 2022, with 60,881 contracts trading so far today, representing approximately 6.1 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $130 strike highlighted in orange: And Enphase Energy Inc. (Symbol: ENPH) saw options trading volume of 30,046 contracts, representing approximately 3.0 million underlying shares or approximately 94.6% of ENPH's average daily trading volume over the past month, of 3.2 million shares.
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Particularly high volume was seen for the $130 strike put option expiring December 23, 2022, with 60,881 contracts trading so far today, representing approximately 6.1 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $130 strike highlighted in orange: And Enphase Energy Inc. (Symbol: ENPH) saw options trading volume of 30,046 contracts, representing approximately 3.0 million underlying shares or approximately 94.6% of ENPH's average daily trading volume over the past month, of 3.2 million shares. Below is a chart showing CHTR's trailing twelve month trading history, with the $430 strike highlighted in orange: Apple Inc (Symbol: AAPL) options are showing a volume of 966,077 contracts thus far today.
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Particularly high volume was seen for the $130 strike put option expiring December 23, 2022, with 60,881 contracts trading so far today, representing approximately 6.1 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $130 strike highlighted in orange: And Enphase Energy Inc. (Symbol: ENPH) saw options trading volume of 30,046 contracts, representing approximately 3.0 million underlying shares or approximately 94.6% of ENPH's average daily trading volume over the past month, of 3.2 million shares. Below is a chart showing ENPH's trailing twelve month trading history, with the $300 strike highlighted in orange: For the various different available expirations for CHTR options, AAPL options, or ENPH options, visit StockOptionsChannel.com.
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17912.0
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2022-12-22 00:00:00 UTC
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TQQQ, MSFU: Big ETF Inflows
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AAPL
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https://www.nasdaq.com/articles/tqqq-msfu%3A-big-etf-inflows
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nan
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nan
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the ProShares UltraPro QQQ, which added 23,500,000 units, or a 4.4% increase week over week. Among the largest underlying components of TQQQ, in morning trading today Microsoft is off about 3.2%, and Apple is lower by about 2.5%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the MSFU ETF, which added 50,000 units, for a 40.0% increase in outstanding units.
VIDEO: TQQQ, MSFU: Big ETF Inflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of TQQQ, in morning trading today Microsoft is off about 3.2%, and Apple is lower by about 2.5%. And on a percentage change basis, the ETF with the biggest increase in inflows was the MSFU ETF, which added 50,000 units, for a 40.0% increase in outstanding units. VIDEO: TQQQ, MSFU: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the ProShares UltraPro QQQ, which added 23,500,000 units, or a 4.4% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the MSFU ETF, which added 50,000 units, for a 40.0% increase in outstanding units. VIDEO: TQQQ, MSFU: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the ProShares UltraPro QQQ, which added 23,500,000 units, or a 4.4% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the MSFU ETF, which added 50,000 units, for a 40.0% increase in outstanding units. VIDEO: TQQQ, MSFU: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the ProShares UltraPro QQQ, which added 23,500,000 units, or a 4.4% increase week over week. Among the largest underlying components of TQQQ, in morning trading today Microsoft is off about 3.2%, and Apple is lower by about 2.5%. And on a percentage change basis, the ETF with the biggest increase in inflows was the MSFU ETF, which added 50,000 units, for a 40.0% increase in outstanding units.
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17913.0
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2022-12-22 00:00:00 UTC
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AAPL February 2023 Options Begin Trading
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AAPL
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https://www.nasdaq.com/articles/aapl-february-2023-options-begin-trading-0
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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 2023 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAPL options chain for the new February 2023 contracts and identified one put and one call contract of particular interest.
The put contract at the $129.00 strike price has a current bid of $4.65. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $129.00, but will also collect the premium, putting the cost basis of the shares at $124.35 (before broker commissions). To an investor already interested in purchasing shares of AAPL, that could represent an attractive alternative to paying $131.72/share today.
Because the $129.00 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 3.60% return on the cash commitment, or 30.60% 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 $129.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $134.00 strike price has a current bid of $5.55. If an investor was to purchase shares of AAPL stock at the current price level of $131.72/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $134.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 5.94% if the stock gets called away at the February 2023 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 $134.00 strike highlighted in red:
Considering the fact that the $134.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 4.21% boost of extra return to the investor, or 35.77% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $131.72) to be 35%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the Nasdaq 100 »
Also see:
Top Stocks Held By Ken Griffin
Funds Holding LAIX
IPX Videos
The views and 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 $134.00 strike highlighted in red: Considering the fact that the $134.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Apple Inc (Symbol: AAPL) saw new options become available today, for the February 2023 expiration.
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Below is a chart showing AAPL's trailing twelve month trading history, with the $134.00 strike highlighted in red: Considering the fact that the $134.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Investors in Apple Inc (Symbol: AAPL) saw new options become available today, for the February 2023 expiration.
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Below is a chart showing AAPL's trailing twelve month trading history, with the $134.00 strike highlighted in red: Considering the fact that the $134.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Apple Inc (Symbol: AAPL) saw new options become available today, for the February 2023 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAPL options chain for the new February 2023 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 2023 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 $134.00 strike highlighted in red: Considering the fact that the $134.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Apple Inc (Symbol: AAPL) saw new options become available today, for the February 2023 expiration.
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17914.0
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2022-12-22 00:00:00 UTC
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Apple Watches violate AliveCor patents but import ban on hold -U.S. ITC
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AAPL
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https://www.nasdaq.com/articles/apple-watches-violate-alivecor-patents-but-import-ban-on-hold-u.s.-itc-0
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nan
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nan
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By Blake Brittain
Dec 22 (Reuters) - Apple Inc's AAPL.O Apple Watches with an electrocardiogram (ECG) function infringe patents belonging to medical device maker AliveCor Inc, the U.S. International Trade Commission affirmed on Thursday.
The ITC said imports of the infringing watches should be banned, but that it would not enforce a ban until appeals were finished in a separate dispute before the U.S. Patent and Trademark Office, where a panel found AliveCor's patents invalid earlier this month.
Representatives for the companies did not immediately respond to requests for comment.
AliveCor accused Apple last year of infringing three patents related to its KardiaBand, an Apple Watch accessory that monitors a user's heart rate, detects irregularities and performs an ECG to identify heart problems like atrial fibrillation.
Mountain View, California-based AliveCor stopped selling the device in 2018 after Apple launched its own ECG feature in its smartwatches. AliveCor told the ITC last year that Apple copied its technology starting in Series 4 Apple Watches and drove AliveCor out of the market by making its operating system incompatible with the KardiaBand.
Apple Watch Series 4, 5, 6, 7, and 8 have ECG technology. Apple introduced its most recent Series 8 in September.
A group of Democratic congressional representatives had asked the ITC in October not to ban imports of Apple Watches, many of which are made in China, even if it ruled for AliveCor, supporting Apple's argument that limiting access to the tech giant's heart-monitoring technology would have a negative impact on public health.
The U.S. Patent and Trademark Office's Patent Trial and Appeal Board declared the AliveCor patents invalid at Apple's request in a related case on Dec. 6. The tech giant has also countersued AliveCor in San Francisco federal court for allegedly infringing its patents.
AliveCor has separately sued Apple in California federal court for allegedly monopolizing the U.S. market for Apple Watch heart-rate monitoring apps, and has filed a related patent-infringement lawsuit against Apple in Texas federal court.
(Reporting by Blake Brittain in Washington; Edited by Chris Reese and Stephen Coates)
((blake.brittain@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Blake Brittain Dec 22 (Reuters) - Apple Inc's AAPL.O Apple Watches with an electrocardiogram (ECG) function infringe patents belonging to medical device maker AliveCor Inc, the U.S. International Trade Commission affirmed on Thursday. Mountain View, California-based AliveCor stopped selling the device in 2018 after Apple launched its own ECG feature in its smartwatches. A group of Democratic congressional representatives had asked the ITC in October not to ban imports of Apple Watches, many of which are made in China, even if it ruled for AliveCor, supporting Apple's argument that limiting access to the tech giant's heart-monitoring technology would have a negative impact on public health.
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By Blake Brittain Dec 22 (Reuters) - Apple Inc's AAPL.O Apple Watches with an electrocardiogram (ECG) function infringe patents belonging to medical device maker AliveCor Inc, the U.S. International Trade Commission affirmed on Thursday. AliveCor accused Apple last year of infringing three patents related to its KardiaBand, an Apple Watch accessory that monitors a user's heart rate, detects irregularities and performs an ECG to identify heart problems like atrial fibrillation. The U.S. Patent and Trademark Office's Patent Trial and Appeal Board declared the AliveCor patents invalid at Apple's request in a related case on Dec. 6.
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By Blake Brittain Dec 22 (Reuters) - Apple Inc's AAPL.O Apple Watches with an electrocardiogram (ECG) function infringe patents belonging to medical device maker AliveCor Inc, the U.S. International Trade Commission affirmed on Thursday. AliveCor accused Apple last year of infringing three patents related to its KardiaBand, an Apple Watch accessory that monitors a user's heart rate, detects irregularities and performs an ECG to identify heart problems like atrial fibrillation. AliveCor has separately sued Apple in California federal court for allegedly monopolizing the U.S. market for Apple Watch heart-rate monitoring apps, and has filed a related patent-infringement lawsuit against Apple in Texas federal court.
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By Blake Brittain Dec 22 (Reuters) - Apple Inc's AAPL.O Apple Watches with an electrocardiogram (ECG) function infringe patents belonging to medical device maker AliveCor Inc, the U.S. International Trade Commission affirmed on Thursday. The ITC said imports of the infringing watches should be banned, but that it would not enforce a ban until appeals were finished in a separate dispute before the U.S. Patent and Trademark Office, where a panel found AliveCor's patents invalid earlier this month. Apple Watch Series 4, 5, 6, 7, and 8 have ECG technology.
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17915.0
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2022-12-22 00:00:00 UTC
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US STOCKS-Wall Street dives amid Fed rate hike worries, chipmaker woes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-dives-amid-fed-rate-hike-worries-chipmaker-woes
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nan
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nan
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By Sinéad Carew and Ankika Biswas
Dec 22 (Reuters) - Wall Street's three major averages tumbled on Thursday with the technology-heavy Nasdaq leading declines after data showing a resilient economy fueled worries that the Federal Reserve would stick to its aggressive tightening path for longer.
Micron Technology Inc's MU.Nglum forecast added to a downbeat mood and caused the semiconductor index .SOX to fall 5.7%, sharply underperforming the broader market.
Losses in rate-sensitive growth stocks saw technology .SPLRCT and consumer discretionary .SPLRCD indexes among the biggest percentage losers and providing the biggest drags to S&P 500 .SPX from the benchmark's 11 major industry sectors.
Meanwhile, the Labor Department said filings for state unemployment benefits increased to 216,000 last week but was below economist estimates for 222,000.
"The Fed doesn't just want or need to see lower inflation. They believe that, in order to bring it down and keep it down sustainably, you're going to need to see more weakness in the labor market which would come with more weakness in the economy."
But it would be better for the market if economic weakness "hits sooner rather than later because then it gives the Fed the ability to pause," according to Sonders.
By 2:07PM EST, the Dow Jones Industrial Average .DJI fell 728.13 points, or 2.18%, to 32,648.35, the S&P 500 .SPX lost 104.63 points, or 2.70%, to 3,773.81 and the Nasdaq Composite .IXIC dropped 361.23 points, or 3.37%, to 10,348.14.
The Philadelphia SE Semiconductor index .SOX was on track for its biggest single-day percentage drop in two months. While Micron's equipment supplier Lam Research LRCX.O lead chip declines with a roughly 10% drop.
Tesla Inc TSLA.O plunged 9%after the electric-vehicle maker doubled its discount offering on models in the United States this month, amid concerns over softening demand.
CarMax Inc KMX.N slid 5% after the used-vehicles retailer paused share buybacks following an 86% quarterly profit plunge.
AMC Entertainment Holdings Inc AMC.N slumped 15% after the world's largest cinema chain said it would raise $110 million through a preferred stock sale.
Declining issues outnumbered advancing ones on the NYSE by a 7.10-to-1 ratio; on Nasdaq, a 3.05-to-1 ratio favored decliners.
The S&P 500 posted 1 new 52-week highs and 23 new lows; the Nasdaq Composite recorded 66 new highs and 372 new lows.
(Reporting by Sinéad Carew in New York, Shubham Batra, Amruta Khandekar, Ankika Biswas and Johann M Cherian in Bengaluru; Editing by Shounak Dasgupta, Anil D'Silva and Aurora Ellis)
((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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By Sinéad Carew and Ankika Biswas Dec 22 (Reuters) - Wall Street's three major averages tumbled on Thursday with the technology-heavy Nasdaq leading declines after data showing a resilient economy fueled worries that the Federal Reserve would stick to its aggressive tightening path for longer. Micron Technology Inc's MU.Nglum forecast added to a downbeat mood and caused the semiconductor index .SOX to fall 5.7%, sharply underperforming the broader market. Tesla Inc TSLA.O plunged 9%after the electric-vehicle maker doubled its discount offering on models in the United States this month, amid concerns over softening demand.
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By Sinéad Carew and Ankika Biswas Dec 22 (Reuters) - Wall Street's three major averages tumbled on Thursday with the technology-heavy Nasdaq leading declines after data showing a resilient economy fueled worries that the Federal Reserve would stick to its aggressive tightening path for longer. By 2:07PM EST, the Dow Jones Industrial Average .DJI fell 728.13 points, or 2.18%, to 32,648.35, the S&P 500 .SPX lost 104.63 points, or 2.70%, to 3,773.81 and the Nasdaq Composite .IXIC dropped 361.23 points, or 3.37%, to 10,348.14. The S&P 500 posted 1 new 52-week highs and 23 new lows; the Nasdaq Composite recorded 66 new highs and 372 new lows.
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By Sinéad Carew and Ankika Biswas Dec 22 (Reuters) - Wall Street's three major averages tumbled on Thursday with the technology-heavy Nasdaq leading declines after data showing a resilient economy fueled worries that the Federal Reserve would stick to its aggressive tightening path for longer. Losses in rate-sensitive growth stocks saw technology .SPLRCT and consumer discretionary .SPLRCD indexes among the biggest percentage losers and providing the biggest drags to S&P 500 .SPX from the benchmark's 11 major industry sectors. (Reporting by Sinéad Carew in New York, Shubham Batra, Amruta Khandekar, Ankika Biswas and Johann M Cherian in Bengaluru; Editing by Shounak Dasgupta, Anil D'Silva and Aurora Ellis) ((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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By Sinéad Carew and Ankika Biswas Dec 22 (Reuters) - Wall Street's three major averages tumbled on Thursday with the technology-heavy Nasdaq leading declines after data showing a resilient economy fueled worries that the Federal Reserve would stick to its aggressive tightening path for longer. But it would be better for the market if economic weakness "hits sooner rather than later because then it gives the Fed the ability to pause," according to Sonders. The Philadelphia SE Semiconductor index .SOX was on track for its biggest single-day percentage drop in two months.
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17916.0
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2022-12-22 00:00:00 UTC
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Apple Watches violate AliveCor patents but import ban on hold -U.S. ITC
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AAPL
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https://www.nasdaq.com/articles/apple-watches-violate-alivecor-patents-but-import-ban-on-hold-u.s.-itc
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nan
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nan
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Dec 22 (Reuters) - Apple Inc's AAPL.O Apple Watches with an electrocardiogram (ECG) function infringe patents belonging to medical device maker AliveCor Inc, the U.S. International Trade Commission affirmed on Thursday.
The ITC said imports of the infringing watches should be banned, but that it would not enforce a ban until appeals were finished in a separate dispute before the U.S. Patent and Trademark Office, where a panel found AliveCor's patents invalid earlier this month.
(Reporting by Blake Brittain in Washington Edited by David Bario and Chris Reese)
((blake.brittain@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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Dec 22 (Reuters) - Apple Inc's AAPL.O Apple Watches with an electrocardiogram (ECG) function infringe patents belonging to medical device maker AliveCor Inc, the U.S. International Trade Commission affirmed on Thursday. The ITC said imports of the infringing watches should be banned, but that it would not enforce a ban until appeals were finished in a separate dispute before the U.S. Patent and Trademark Office, where a panel found AliveCor's patents invalid earlier this month. (Reporting by Blake Brittain in Washington Edited by David Bario and Chris Reese) ((blake.brittain@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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Dec 22 (Reuters) - Apple Inc's AAPL.O Apple Watches with an electrocardiogram (ECG) function infringe patents belonging to medical device maker AliveCor Inc, the U.S. International Trade Commission affirmed on Thursday. The ITC said imports of the infringing watches should be banned, but that it would not enforce a ban until appeals were finished in a separate dispute before the U.S. Patent and Trademark Office, where a panel found AliveCor's patents invalid earlier this month. (Reporting by Blake Brittain in Washington Edited by David Bario and Chris Reese) ((blake.brittain@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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Dec 22 (Reuters) - Apple Inc's AAPL.O Apple Watches with an electrocardiogram (ECG) function infringe patents belonging to medical device maker AliveCor Inc, the U.S. International Trade Commission affirmed on Thursday. The ITC said imports of the infringing watches should be banned, but that it would not enforce a ban until appeals were finished in a separate dispute before the U.S. Patent and Trademark Office, where a panel found AliveCor's patents invalid earlier this month. (Reporting by Blake Brittain in Washington Edited by David Bario and Chris Reese) ((blake.brittain@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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Dec 22 (Reuters) - Apple Inc's AAPL.O Apple Watches with an electrocardiogram (ECG) function infringe patents belonging to medical device maker AliveCor Inc, the U.S. International Trade Commission affirmed on Thursday. The ITC said imports of the infringing watches should be banned, but that it would not enforce a ban until appeals were finished in a separate dispute before the U.S. Patent and Trademark Office, where a panel found AliveCor's patents invalid earlier this month. (Reporting by Blake Brittain in Washington Edited by David Bario and Chris Reese) ((blake.brittain@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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17917.0
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2022-12-22 00:00:00 UTC
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Best Blue Chip Stocks To Buy Right Now? 3 In Focus
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AAPL
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https://www.nasdaq.com/articles/best-blue-chip-stocks-to-buy-right-now-3-in-focus
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nan
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nan
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Investing in the stock market can be an exciting and rewarding experience. However, it’s important to do your research before investing. When looking for stocks that will offer strong returns, many investors turn to blue-chip stocks. Blue chip stocks are large, well-established companies that are usually market leaders in their respective industries. They tend to be the most reliable investments due to their low volatility. As well as their reputation for providing relative safety from significant losses or economic downturns.
These companies are typically found within the Dow Jones Industrial Average or S&P 500. For example, this would include companies like Apple Inc. (NASDAQ: AAPL), JP Morgan Chase & Co. (NYSE: JPM), and ExxonMobil Corp. (NYSE: XOM) to name a few. Moreover, investing in blue chip stocks is popular with those looking for stability in their investment portfolio. This is because generally, these types of stocks can potentially offer considerable long-term capital gains potential, while also providing consistent dividend payments over time.
Next, one of the most obvious benefits is that investing in blue chip stocks gives you access to companies with strong reputations and generally solid track records. This is because these companies have been around for longer and have proven themselves to be reliable performers over time. As a result, some investors feel more confident about investing in them. Rather than potentially investing with newer companies or start-ups that may not have as much data available to assess their risk level or potential returns. With that, here are three blue-chip stocks to watch in the stock market today.
Blue Chip Stocks To Watch Now
The Boeing Company (NYSE: BA)
Morgan Stanley (NYSE: MS)
CVS Health Corporation (NYSE: CVS)
The Boeing Company (BA Stock)
Leading off, The Boeing Company is a multinational corporation. In brief, the company designs manufacture, and sells commercial and military aircraft, as well as space systems and defense, security, and aerospace products.
In October, the company reported its Q3 2022 financial and operating results. Diving right in, Boeing announced a loss of $6.18 per share and revenue of $16.0 billion for the third quarter of 2022. Meanwhile, the company also reported that it has continued the delivery of its 787 aircraft, and delivered 9 for Q3 2022. In addition, Boeing said it has a total backlog of $381 billion, which equates to over 4,300 commercial airplanes.
Over the past 6 months, shares of Boeing stock have rebounded by 36.91% as of Thursday’s trading session. Meanwhile, shares of BA stock are still down year-to-date by 9.66%. On Thursday early afternoon, BA stock is trading at $187.69 a share.
Source: TD Ameritrade TOS
[Read More] 3 Semiconductor Stocks To Watch Before 2023
Morgan Stanley (MS Stock)
Next, Morgan Stanley is a global financial services firm that provides investment banking, securities, wealth management, and investment management services to a range of clients, including corporations, governments, and individuals.
Late last month, Morgan Stanley announced that it will report its fourth-quarter 2022 financial results on Tuesday, January 17, 2023. Specifically, the company said it will release its results in the morning ahead of the stock market opening. To briefly recap, in October, Morgan Stanley reported a beat for its Q3 2022 financial results. In detail, the company announced earnings of $1.53 per share and revenue of $16.6 billion for the third quarter of 2022.
Over the last six months of trading, shares of MS stock have recovered by 14.54%. Though, year-to-date MS stock is still down 14.94%. Meanwhile, during Thursday’s lunchtime trading session, MS stock is trading lower on the day by 1.80% at $85.31 a share.
Source: TD Ameritrade TOS
[Read More] 2 EV Stocks To Watch Right Now
CVS Health (CVS Stock)
Lastly, CVS Health Corporation (CVS) is a healthcare company that provides a range of services, including pharmacy, retail, and healthcare benefits management. CVS is one of the largest pharmacy chains in the United States.
In recent news, just this month, CVS Health announced its quarterly dividend for shareholders. In detail, the company’s Board of Directors has approved a quarterly dividend of $0.605 per share on common stock. This equates to an annual dividend yield of 2.60%. What’s more, the dividend is payable on February 1st, 2023 to shareholders of record on January 20, 2023. This dividend represents a 10% increase versus the previous quarter’s dividend.
Year-to-date, shares of CVS stock are down 10.51% so far in 2022. Meanwhile, on Thursday CVS stock is trading modestly lower by 0.97% on the day at $93.21 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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For example, this would include companies like Apple Inc. (NASDAQ: AAPL), JP Morgan Chase & Co. (NYSE: JPM), and ExxonMobil Corp. (NYSE: XOM) to name a few. Next, one of the most obvious benefits is that investing in blue chip stocks gives you access to companies with strong reputations and generally solid track records. Source: TD Ameritrade TOS [Read More] 3 Semiconductor Stocks To Watch Before 2023 Morgan Stanley (MS Stock) Next, Morgan Stanley is a global financial services firm that provides investment banking, securities, wealth management, and investment management services to a range of clients, including corporations, governments, and individuals.
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For example, this would include companies like Apple Inc. (NASDAQ: AAPL), JP Morgan Chase & Co. (NYSE: JPM), and ExxonMobil Corp. (NYSE: XOM) to name a few. Blue Chip Stocks To Watch Now The Boeing Company (NYSE: BA) Morgan Stanley (NYSE: MS) CVS Health Corporation (NYSE: CVS) The Boeing Company (BA Stock) Leading off, The Boeing Company is a multinational corporation. Source: TD Ameritrade TOS [Read More] 3 Semiconductor Stocks To Watch Before 2023 Morgan Stanley (MS Stock) Next, Morgan Stanley is a global financial services firm that provides investment banking, securities, wealth management, and investment management services to a range of clients, including corporations, governments, and individuals.
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For example, this would include companies like Apple Inc. (NASDAQ: AAPL), JP Morgan Chase & Co. (NYSE: JPM), and ExxonMobil Corp. (NYSE: XOM) to name a few. Blue Chip Stocks To Watch Now The Boeing Company (NYSE: BA) Morgan Stanley (NYSE: MS) CVS Health Corporation (NYSE: CVS) The Boeing Company (BA Stock) Leading off, The Boeing Company is a multinational corporation. Source: TD Ameritrade TOS [Read More] 3 Semiconductor Stocks To Watch Before 2023 Morgan Stanley (MS Stock) Next, Morgan Stanley is a global financial services firm that provides investment banking, securities, wealth management, and investment management services to a range of clients, including corporations, governments, and individuals.
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For example, this would include companies like Apple Inc. (NASDAQ: AAPL), JP Morgan Chase & Co. (NYSE: JPM), and ExxonMobil Corp. (NYSE: XOM) to name a few. Blue chip stocks are large, well-established companies that are usually market leaders in their respective industries. Moreover, investing in blue chip stocks is popular with those looking for stability in their investment portfolio.
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17918.0
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2022-12-22 00:00:00 UTC
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IWV, AAPL, MSFT, XOM: Large Inflows Detected at ETF
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https://www.nasdaq.com/articles/iwv-aapl-msft-xom%3A-large-inflows-detected-at-etf
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 3000 ETF (Symbol: IWV) where we have detected an approximate $311.9 million dollar inflow -- that's a 3.0% increase week over week in outstanding units (from 46,800,000 to 48,200,000). Among the largest underlying components of IWV, in trading today Apple Inc (Symbol: AAPL) is down about 2.5%, Microsoft Corporation (Symbol: MSFT) is down about 3.2%, and Exxon Mobil Corp (Symbol: XOM) is lower by about 1.7%. For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average:
Looking at the chart above, IWV's low point in its 52 week range is $201.8201 per share, with $280.44 as the 52 week high point — that compares with a last trade of $218.85. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
Also see:
Institutional Holders of PTX
GRE Historical Stock Prices
CNHI 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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Among the largest underlying components of IWV, in trading today Apple Inc (Symbol: AAPL) is down about 2.5%, Microsoft Corporation (Symbol: MSFT) is down about 3.2%, and Exxon Mobil Corp (Symbol: XOM) is lower by about 1.7%. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Among the largest underlying components of IWV, in trading today Apple Inc (Symbol: AAPL) is down about 2.5%, Microsoft Corporation (Symbol: MSFT) is down about 3.2%, and Exxon Mobil Corp (Symbol: XOM) is lower by about 1.7%. For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average: Looking at the chart above, IWV's low point in its 52 week range is $201.8201 per share, with $280.44 as the 52 week high point — that compares with a last trade of $218.85. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Among the largest underlying components of IWV, in trading today Apple Inc (Symbol: AAPL) is down about 2.5%, Microsoft Corporation (Symbol: MSFT) is down about 3.2%, and Exxon Mobil Corp (Symbol: XOM) is lower by about 1.7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 3000 ETF (Symbol: IWV) where we have detected an approximate $311.9 million dollar inflow -- that's a 3.0% increase week over week in outstanding units (from 46,800,000 to 48,200,000). For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average: Looking at the chart above, IWV's low point in its 52 week range is $201.8201 per share, with $280.44 as the 52 week high point — that compares with a last trade of $218.85.
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Among the largest underlying components of IWV, in trading today Apple Inc (Symbol: AAPL) is down about 2.5%, Microsoft Corporation (Symbol: MSFT) is down about 3.2%, and Exxon Mobil Corp (Symbol: XOM) is lower by about 1.7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 3000 ETF (Symbol: IWV) where we have detected an approximate $311.9 million dollar inflow -- that's a 3.0% increase week over week in outstanding units (from 46,800,000 to 48,200,000). For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average: Looking at the chart above, IWV's low point in its 52 week range is $201.8201 per share, with $280.44 as the 52 week high point — that compares with a last trade of $218.85.
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17919.0
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2022-12-22 00:00:00 UTC
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India panel recommends digital competition act to rein in Big Tech
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AAPL
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https://www.nasdaq.com/articles/india-panel-recommends-digital-competition-act-to-rein-in-big-tech
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MUMBAI, Dec 22 (Reuters) - An Indian parliamentary panel on Thursday recommended the government enact a digital competition act to regulate anti-competitive business practices by Big Tech companies on its platforms.
Prime Minister Narendra Modi's government has had strained relations with many large technology companies, and New Delhi has been tightening the regulation of firms such as Facebook META.O, YouTube GOOGL.O and Twitter.
Alphabet Inc's GOOGL.O Google and Apple AAPL.O have in the past faced scrutiny from the country's competition watchdog, the Competition Commission of India (CCI), over alleged abuse of the application market.
"The Committee recommend that the government should consider and introduce a digital competition act to ensure a fair, transparent and contestable digital ecosystem, which will be a boon not only for our country and its nascent start-up economy but also for the entire world," the panel said in a report submitted in India's lower house of parliament.
The panel recommended the identification of top tech players as systemically important digital intermediaries to counter monopoly and warned they "must not favour its own offers over the offers of its competitors" when acting as mediators to supply and sales markets.
In India, Amazon AMZN.O and rival Flipkart are facing accusations of anti-competitive practices, such as promoting preferred sellers on websites and giving priority to listings by some sellers.
Companies including Facebook (META.O), Twitter and Google (GOOGL.O) have for years been concerned with many regulations India has proposed for the technology sector, with companies complaining about excessive compliance burdens. The complaints have sometimes strained relations between New Delhi and Washington.
Amazon, Google, Meta, Twitter and Apple did not immediately respond to request for comment.
A specialised digital markets unit should be established within the competition watchdog, the panel said, adding that competitive behaviour of big tech companies needs to be monitored in advance and not after markets become monopolised.
(Reporting by Sudipto Ganguly and Munsif Vengattil, additional reporting by Navamya Ganesh; editing by Christian Schmollinger)
((sudipto.ganguly@thomsonreuters.com; +91 7738571441; Twitter: @Sudipto_Reuters;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alphabet Inc's GOOGL.O Google and Apple AAPL.O have in the past faced scrutiny from the country's competition watchdog, the Competition Commission of India (CCI), over alleged abuse of the application market. MUMBAI, Dec 22 (Reuters) - An Indian parliamentary panel on Thursday recommended the government enact a digital competition act to regulate anti-competitive business practices by Big Tech companies on its platforms. Prime Minister Narendra Modi's government has had strained relations with many large technology companies, and New Delhi has been tightening the regulation of firms such as Facebook META.O, YouTube GOOGL.O and Twitter.
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Alphabet Inc's GOOGL.O Google and Apple AAPL.O have in the past faced scrutiny from the country's competition watchdog, the Competition Commission of India (CCI), over alleged abuse of the application market. MUMBAI, Dec 22 (Reuters) - An Indian parliamentary panel on Thursday recommended the government enact a digital competition act to regulate anti-competitive business practices by Big Tech companies on its platforms. A specialised digital markets unit should be established within the competition watchdog, the panel said, adding that competitive behaviour of big tech companies needs to be monitored in advance and not after markets become monopolised.
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Alphabet Inc's GOOGL.O Google and Apple AAPL.O have in the past faced scrutiny from the country's competition watchdog, the Competition Commission of India (CCI), over alleged abuse of the application market. MUMBAI, Dec 22 (Reuters) - An Indian parliamentary panel on Thursday recommended the government enact a digital competition act to regulate anti-competitive business practices by Big Tech companies on its platforms. "The Committee recommend that the government should consider and introduce a digital competition act to ensure a fair, transparent and contestable digital ecosystem, which will be a boon not only for our country and its nascent start-up economy but also for the entire world," the panel said in a report submitted in India's lower house of parliament.
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Alphabet Inc's GOOGL.O Google and Apple AAPL.O have in the past faced scrutiny from the country's competition watchdog, the Competition Commission of India (CCI), over alleged abuse of the application market. MUMBAI, Dec 22 (Reuters) - An Indian parliamentary panel on Thursday recommended the government enact a digital competition act to regulate anti-competitive business practices by Big Tech companies on its platforms. Prime Minister Narendra Modi's government has had strained relations with many large technology companies, and New Delhi has been tightening the regulation of firms such as Facebook META.O, YouTube GOOGL.O and Twitter.
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17920.0
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2022-12-22 00:00:00 UTC
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Alphabet (GOOGL) Boosts YouTube Streaming Efforts With NFL Deal
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AAPL
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https://www.nasdaq.com/articles/alphabet-googl-boosts-youtube-streaming-efforts-with-nfl-deal
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nan
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Alphabet’s GOOGL division Google is consistently building strategic partnerships to increase viewership on its video streaming services.
Per The Wall Street Journal, Google is having final stage discussions with the National Football League (NFL) to acquire exclusive rights of the NFL Sunday ticket for streaming Sunday games on YouTube TV and YouTube Primetime Channels.
NFL Sunday ticket is a subscription-only package, which lets football viewers watch afternoon matches that are not available on the local TV channels, on the streaming platform.
Currently, the Sunday package is carried by the satellite broadcaster, DirecTV under a deal, which is expiring this season. DirecTV pays $1.5 billion annually to NFL for Sunday ticket exclusive rights.
Reportedly, Google is in talks to pay $2.5 billion per year to NFL for Sunday ticket rights.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Benefits of Sunday Ticket Rights
Google’s latest stance to win exclusive NFL Sunday ticket rights is a step forward to strengthen its streaming efforts. The NFL deal will significantly increase Google’s sports credentials.
Moreover, Google is expected to gain momentum among football lovers by showing Sunday NFL matches on YouTube TV and YouTube Primetime Channels.
Per the company stats, YouTube TV crossed more than 5 million subscriptions and trial accounts in June 2022. Additionally, viewers can individually subscribe to over 30 streaming services on Primetime Channels.
The addition of Sunday ticket to both YouTube TV and Primetime Channels will help Google to generate more revenues from subscription-based services.
This will contribute well to Google’s parent, Alphabet’s Google services’ revenues in the upcoming period.
Revenues from the Google services business increased 2.5% year over year to $61.4 billion, accounting for 88.8% of the total third-quarter revenues.
Competitive Streaming Market
Alphabet with its recent live sports streaming move remains well-positioned to capitalize on the growth prospects present in the booming video streaming market.
Per a Research and Markets report, the global video streaming market is likely to hit $330.5 billion by 2030, witnessing a CAGR of 21.3% during the 2022-2030 forecast period.
Given the huge potential in the aforesaid market, major companies like Amazon AMZN, Apple AAPL and The Walt Disney Company DIS are also making strong streaming efforts especially in live sports to gain market share.
Reportedly, Amazon, Apple and Disney’s subsidiary ESPN were in the NFL Sunday ticket bidding battle with Alphabet’s Google.
Amazon entered into an agreement with NFL for exclusive rights of Thursday night football package, at an average yearly price of $1.2 billion per season. The Thursday night matches will be shown on AMZN’s Prime Video streaming service. Amazon has lost 48% in the year-to-date period.
Apple reached a 10-year contract with Major League Soccer in June. AAPL pays nearly $2.5 billion to the League for streaming matches on its TV+ platform. Additionally, Apple streams Major League Baseball on Friday nights during the regular season. Apple moved south 23.7% in the same timeframe.
Disney renewed its deal with Formula 1. Per the terms, ESPN Networks in the United States will continue to show Formula 1 races through the 2025 season. Shares of DIS were down 43.9% in the year-to-date period.
We believe Amazon, Apple and Disney’s growing initiatives in the video streaming space remain a major threat to Alphabet’s market position.
Shares of Alphabet have been down 38.2% in the year-to-date period compared with the Computer and Technology sector’s decline of 35.7%.
Currently, Alphabet carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Alphabet Inc. (GOOGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Given the huge potential in the aforesaid market, major companies like Amazon AMZN, Apple AAPL and The Walt Disney Company DIS are also making strong streaming efforts especially in live sports to gain market share. AAPL pays nearly $2.5 billion to the League for streaming matches on its TV+ platform. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Given the huge potential in the aforesaid market, major companies like Amazon AMZN, Apple AAPL and The Walt Disney Company DIS are also making strong streaming efforts especially in live sports to gain market share. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. AAPL pays nearly $2.5 billion to the League for streaming matches on its TV+ platform.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Given the huge potential in the aforesaid market, major companies like Amazon AMZN, Apple AAPL and The Walt Disney Company DIS are also making strong streaming efforts especially in live sports to gain market share. AAPL pays nearly $2.5 billion to the League for streaming matches on its TV+ platform.
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Given the huge potential in the aforesaid market, major companies like Amazon AMZN, Apple AAPL and The Walt Disney Company DIS are also making strong streaming efforts especially in live sports to gain market share. AAPL pays nearly $2.5 billion to the League for streaming matches on its TV+ platform. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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17921.0
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2022-12-22 00:00:00 UTC
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US STOCKS-Wall Street slides as economic data fans rate hike worries
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https://www.nasdaq.com/articles/us-stocks-wall-street-slides-as-economic-data-fans-rate-hike-worries
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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
Q3 GDP estimate more than expected
Micron forecasts bigger-than-expected Q2 loss
Other chipmakers fall
AMC slumps on $110 mln equity raise
Indexes down: Dow 0.99%, S&P 1.31%, Nasdaq 1.84%
Adds details, updates prices to open
By Ankika Biswas and Johann M Cherian
Dec 22 (Reuters) - Wall Street's main indexes dropped on Thursday after fresh data underscored strength in the U.S. economy and aggravated concerns over the Federal Reserve's continued policy tightening.
Losses in rate-sensitive megacap growth stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O pulled technology .SPLRCT and consumer discretionary shares .SPLRCD lower.
The final estimate of third-quarter U.S. GDP revealed gross domestic product increased at a 3.2% annualized rate, above the previous estimate of 2.9%.
Meanwhile, a Labor Department report showed the number of Americans filing for state unemployment benefits increased to 216,000 last week, much below economists' estimate of 222,000, indicating a still tight labor market.
"The GDP data beat a lot of expectations. There are concerns that the economy is not giving up too easily and it's putting up a fight that will likely require the Fed to remain hawkish and keep interest rates higher for longer," Sam Stovall, chief investment strategist at CFRA Research in New York, said.
Wall Street's main indexes marked their biggest daily gain so far in December on Wednesday, with help from upbeat Nike IncNKE.N and FedEx CorpFDX.N quarterly earnings, as well as improving consumer confidence and easing inflation expectations.
Fears of a recession following the U.S. central bank's prolonged interest rate hikes have weighed heavily on equities this year, with the benchmark S&P 500 .SPX set for annual declines of 19.7%, its worst such performance since the 2008 financial crisis.
The Fed struck a hawkish tone last week at its policy meeting by saying that it expects interest rates to remain higher for longer, sparking a selloff across stock markets.
The bets for a 25-basis point hike to 4.5%-4.75% in February by the Fed remained largely unchanged at around 70% following the data on Thursday, although expectations for the terminal rate inched up to 4.89% by May 2023. FEDWATCH
At 9:50 a.m. ET, the Dow Jones Industrial Average .DJI was down 331.19 points, or 0.99%, at 33,045.29, the S&P 500 .SPX was down 50.70 points, or 1.31%, at 3,827.74, and the Nasdaq Composite .IXIC was down 197.23 points, or 1.84%, at 10,512.14.
Micron Technology Inc MU.O slipped 3.2% after the chipmaker forecast a bigger-than-expected second-quarter loss, sparking declines in peers.
Nvidia Corp NVDA.O, Qualcomm Inc QCOM.O, Advanced Micro Devices Inc AMD.O and Intel Corp INTC.O were down between 3.0% and 5.1%, pushing the Philadelphia SE Semiconductor index .SOX more than 3% lower.
CarMax Inc KMX.N slid 8.6% to the bottom of the S&P 500 after the used-vehicles retailer paused share buybacks following an 86% plunge in quarterly profit.
AMC Entertainment Holdings Inc AMC.N slumped 12.5% after the world's largest cinema chain said it would raise $110 million through a preferred stock sale.
Declining issues outnumbered advancers for a 5.83-to-1 ratio on the NYSE and a 3.28-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week highs and nine new lows, while the Nasdaq recorded 27 new highs and 180 new lows.
(Reporting by Shubham Batra, Amruta Khandekar, Ankika Biswas and Johann M Cherian 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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Losses in rate-sensitive megacap growth stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O pulled technology .SPLRCT and consumer discretionary shares .SPLRCD lower. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Q3 GDP estimate more than expected Micron forecasts bigger-than-expected Q2 loss Other chipmakers fall AMC slumps on $110 mln equity raise Indexes down: Dow 0.99%, S&P 1.31%, Nasdaq 1.84% Adds details, updates prices to open By Ankika Biswas and Johann M Cherian Dec 22 (Reuters) - Wall Street's main indexes dropped on Thursday after fresh data underscored strength in the U.S. economy and aggravated concerns over the Federal Reserve's continued policy tightening. There are concerns that the economy is not giving up too easily and it's putting up a fight that will likely require the Fed to remain hawkish and keep interest rates higher for longer," Sam Stovall, chief investment strategist at CFRA Research in New York, said.
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Losses in rate-sensitive megacap growth stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O pulled technology .SPLRCT and consumer discretionary shares .SPLRCD lower. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Q3 GDP estimate more than expected Micron forecasts bigger-than-expected Q2 loss Other chipmakers fall AMC slumps on $110 mln equity raise Indexes down: Dow 0.99%, S&P 1.31%, Nasdaq 1.84% Adds details, updates prices to open By Ankika Biswas and Johann M Cherian Dec 22 (Reuters) - Wall Street's main indexes dropped on Thursday after fresh data underscored strength in the U.S. economy and aggravated concerns over the Federal Reserve's continued policy tightening. The Fed struck a hawkish tone last week at its policy meeting by saying that it expects interest rates to remain higher for longer, sparking a selloff across stock markets.
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Losses in rate-sensitive megacap growth stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O pulled technology .SPLRCT and consumer discretionary shares .SPLRCD lower. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Q3 GDP estimate more than expected Micron forecasts bigger-than-expected Q2 loss Other chipmakers fall AMC slumps on $110 mln equity raise Indexes down: Dow 0.99%, S&P 1.31%, Nasdaq 1.84% Adds details, updates prices to open By Ankika Biswas and Johann M Cherian Dec 22 (Reuters) - Wall Street's main indexes dropped on Thursday after fresh data underscored strength in the U.S. economy and aggravated concerns over the Federal Reserve's continued policy tightening. The Fed struck a hawkish tone last week at its policy meeting by saying that it expects interest rates to remain higher for longer, sparking a selloff across stock markets.
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Losses in rate-sensitive megacap growth stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O pulled technology .SPLRCT and consumer discretionary shares .SPLRCD lower. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Q3 GDP estimate more than expected Micron forecasts bigger-than-expected Q2 loss Other chipmakers fall AMC slumps on $110 mln equity raise Indexes down: Dow 0.99%, S&P 1.31%, Nasdaq 1.84% Adds details, updates prices to open By Ankika Biswas and Johann M Cherian Dec 22 (Reuters) - Wall Street's main indexes dropped on Thursday after fresh data underscored strength in the U.S. economy and aggravated concerns over the Federal Reserve's continued policy tightening. The bets for a 25-basis point hike to 4.5%-4.75% in February by the Fed remained largely unchanged at around 70% following the data on Thursday, although expectations for the terminal rate inched up to 4.89% by May 2023.
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17922.0
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2022-12-22 00:00:00 UTC
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The Biggest Reason Apple Stock Is a Screaming Buy for 2023
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https://www.nasdaq.com/articles/the-biggest-reason-apple-stock-is-a-screaming-buy-for-2023
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A forgettable year is drawing to a close for Apple (NASDAQ: AAPL) investors, who have faced the broader stock market selloff despite the company's resilient performance amid a weak smartphone market. But 2023 could turn out to be a much better year for the tech giant, as one of its key businesses is likely to step on the gas.
We know that Apple gets most of its revenue by selling products such as the iPhone, the iPad, MacBooks, and other devices, but its services business is paying off in a big way for the company. In fiscal 2022 (which ended on Sept. 24, 2022), Apple reported services revenue of $78 billion. The segment's revenue jumped 14% year over year and accounted for nearly 20% of the company's top line.
Apple looks set to sustain the terrific growth of its services business in 2023. Let's see why that may be the case and how the segment's growth could help the company's bottom line.
The services business is moving the needle significantly for Apple
Apple had a massive installed base of 1.8 billion active devices at the end of the first quarter of fiscal 2022. Though the company hasn't updated that number lately, CEO Tim Cook did point out on the October earnings conference call that Apple set "another record on our installed base of active devices, thanks to a quarterly record of upgraders and double-digit growth in switchers on iPhone."
So it won't be surprising to see the company sitting on an installed base of 2 billion active devices, given the healthy demand for iPhones and other devices. A bigger base of installed devices means that Apple can sell its services to more users. This explains why the company's services revenue has been growing faster than its product revenue.
In fiscal 2022, Apple's product revenue was up just 6% year over year. But the growing adoption of the company's wide-ranging services (apps, music, games, TV, cloud, and others), allowed it to finish the fiscal year with 7.7% revenue growth over the prior year. What's more, Apple reported 9% year-over-year growth in its adjusted earnings per share to $6.11 per share, outpacing its revenue growth thanks to the higher-margin profile of the services business.
More specifically, Apple's services business delivered a gross margin of 70.5% last quarter. That's more than double the product gross margin of 34.6% and significantly higher than Apple's overall gross margin figure of 42.3% last quarter. So the growing influence of Apple's services business should translate into solid bottom-line gains in 2023 and beyond.
The good news is that Apple's installed base of active devices could keep growing at a nice clip in 2023, and that should positively affect the services business.
Why the services business could keep growing in 2023
IDC estimates that 233.5 million iPhones may be shipped in 2023, which would be a slight increase over this year's estimated production target of 220 million units. This also suggests that the installed device base is set to increase once again next year.
However, a new product from Apple could give its installed base a significant boost in 2023 and beyond. Supply chain gossip indicates that Apple could launch an augmented reality/virtual reality (AR/VR) headset in 2023. Rumors suggest that the tech giant could make 500,000 units of its mixed-reality headset in the new year, with each unit expected to be priced at around $2,000.
Assuming Apple can sell all these rumored headsets, it could generate a billion dollars in revenue from a new product line next year. But the bigger play for the company would still be the services business. The company is reportedly working on delivering 3D content through its headsets, according to Bloomberg, with one job listing suggesting that it may be developing a virtual environment akin to the metaverse.
So a mixed reality headset could add another dimension to Apple's services business. The device will help the company mark its presence in a market that's expected to take off nicely in the long run. A third-party estimate forecasts that the mixed reality headset market could generate $19.5 billion in revenue by 2026 as compared to an estimated $5.6 billion this year. The growth in sales of mixed reality hardware should open the door for the likes of Apple to sell more services next year.
All this indicates that Apple's services business is built for long-term growth. It won't be surprising to see this segment get closer to $100 billion in revenue in 2023, per a Morgan Stanley estimate. That could help Apple overwhelm Wall Street's expectations in the new year and send its shares soaring, which is why investors may want to take advantage of the 25% decline this tech stock has witnessed in 2022 and buy it before it breaks out.
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*Stock Advisor returns as of December 1, 2022
Harsh Chauhan 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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A forgettable year is drawing to a close for Apple (NASDAQ: AAPL) investors, who have faced the broader stock market selloff despite the company's resilient performance amid a weak smartphone market. The good news is that Apple's installed base of active devices could keep growing at a nice clip in 2023, and that should positively affect the services business. The company is reportedly working on delivering 3D content through its headsets, according to Bloomberg, with one job listing suggesting that it may be developing a virtual environment akin to the metaverse.
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A forgettable year is drawing to a close for Apple (NASDAQ: AAPL) investors, who have faced the broader stock market selloff despite the company's resilient performance amid a weak smartphone market. The services business is moving the needle significantly for Apple Apple had a massive installed base of 1.8 billion active devices at the end of the first quarter of fiscal 2022. Though the company hasn't updated that number lately, CEO Tim Cook did point out on the October earnings conference call that Apple set "another record on our installed base of active devices, thanks to a quarterly record of upgraders and double-digit growth in switchers on iPhone."
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A forgettable year is drawing to a close for Apple (NASDAQ: AAPL) investors, who have faced the broader stock market selloff despite the company's resilient performance amid a weak smartphone market. We know that Apple gets most of its revenue by selling products such as the iPhone, the iPad, MacBooks, and other devices, but its services business is paying off in a big way for the company. The services business is moving the needle significantly for Apple Apple had a massive installed base of 1.8 billion active devices at the end of the first quarter of fiscal 2022.
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A forgettable year is drawing to a close for Apple (NASDAQ: AAPL) investors, who have faced the broader stock market selloff despite the company's resilient performance amid a weak smartphone market. In fiscal 2022, Apple's product revenue was up just 6% year over year. Assuming Apple can sell all these rumored headsets, it could generate a billion dollars in revenue from a new product line next year.
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17923.0
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2022-12-22 00:00:00 UTC
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ANALYSIS-Short sellers gain nearly $304 bln after tumble in U.S. stocks
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AAPL
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https://www.nasdaq.com/articles/analysis-short-sellers-gain-nearly-%24304-bln-after-tumble-in-u.s.-stocks
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By Carolina Mandl and David Randall
NEW YORK, Dec 22 (Reuters) - This year's steep decline in U.S. equities is juicing the returns of short sellers, who are on track for their first yearly gain since 2018 thanks in part to bets against shares of Tesla TSLA.O, Amazon.com AMZN.O and other megacap growth stocks that have led markets higher for years.
Short sellers - investors who bet on declines in a company's share price - are sitting on $303.7 billion in realized and unrealized gains, a fourfold increase compared with 2018, their last profitable year, data from analytics firm S3 Partners showed. That works out to a 31.2% return on total average short interest of $973.6 billion throughout the year, according to S3 Partners.
Bets against electric-vehicle maker Tesla Inc lead the pack in terms of dollar gains, with investors seeing $15 billion in realized and unrealized profits on some $19.3 billion of shares sold short. Shares of the electric carmaker, whose meteoric rally over the last few years has burned many bearish investors, are down roughly 60% year-to-date.
Other top winners for shorts include Amazon, Meta Platforms META.O, Apple Inc AAPL.O and used car seller Carvana Co CVNA.N, S3 data showed. The S&P 500 is down almost 19% this year and on track for its biggest yearly percentage loss since 2008 after the Federal Reserve's most aggressive rate increases in decades dried up risk appetite.
This year "was easier for shorting because the economic environment felt like a headwind to the whole market, instead of the tailwind seen in previous years," said Moez Kassam, portfolio manager at long-short hedge fund firm Anson Funds, which oversees around $1.7 billion and posted a 4.9% gain through November. "Shorts have been impossible for years," he said.
Among the fund's top positions were bets against biotech company Novavax Inc NVAX, which fell over 90% year-to-date, and electric-vehicle maker Rivian Automotive Inc RIVN.O, down roughly 80%.
Stanphyl Capital portfolio manager Mark Spiegel, who has been short Tesla "constantly, in varying size" since 2014, said a bet against Tesla was his fund's most profitable individual short position this year. The $18 million fund is up roughly 60% in 2022. Tesla's shares are up 1,271% since 2014.
While higher interest rates have punished growth stocks, some investors believe Tesla CEO Elon Musk's purchase of Twitter is diverting his time running the electric car company. Musk's Tesla share sales have also weighed on the stock, and investors have been watching for signs that consumer demand for electric vehicles is cooling.
Spiegel has maintained his bearish bets against Tesla, believing the stock has a long way to go before reaching a fair price.
The last several years haven’t been kind to bearish investors. Shorts lost $142.4 billion in 2021, a year when huge rallies in so-called meme stocks such as GameStop GME.Nhurt several firms that had bet against GameStop and similar companies. They took a $241.7 billion hit in 2020, when the Fed cut rates to historic lows in response to the COVID-19 pandemic, sparking a massive rally in markets.
Not all short strategies worked this year. Long-short hedge funds, which bet on stock prices rising or falling, posted a 9.7% loss through November, according to data provider HFR.
Market swings sparked by economic data and Fed decisions have often wrong-footed investors and fueled lockstep moves in asset prices, making it more difficult to select individual stocks, traders said.
"It's a very difficult environment because correlations (among stocks) are high," said Venu Krishna, head of U.S. equity strategy at Barclays in New York.
At the same time, energy stocks such as Exxon Mobil Corp XOM.N, Occidental Petroleum Corp OXY.N, Chevron Corp CVX.N and Marathon Petroleum MPC.N notched big gains following a surge in energy prices, bruising those who bet against them.
Charles Lemonides, portfolio manager at $226 billion hedge fund ValueWorks LLC, believes tight monetary policy will weigh on risk appetite next year. His fund now has its highest ever level of overall short positioning.
"It's much less likely that we will get back to the sort of dangerous enthusiasm on the part of investors for stocks like Tesla that took short-sellers to the cleaners in years past," he said.
Companies that Lemonides is betting against include aircraft component supplier Transdigm Group TDG.N, whose shares are up 1.45% year-to-date, and semiconductor company Broadcom AVGO.O, whose shares are down almost 16%.
"There are a bunch of companies out there … that have a significant amount of debt, but equity investors are perceiving them as bulletproof right now," he said.
Short sellers' gainshttps://tmsnrt.rs/3FMhhXw
(Reporting by Carolina Mandl and David Randall in New York; Editing by Ira Iosebashvili and Leslie Adler)
((carolina.mandl@thomsonreuters.com; +1 (917) 891-4931;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Other top winners for shorts include Amazon, Meta Platforms META.O, Apple Inc AAPL.O and used car seller Carvana Co CVNA.N, S3 data showed. Short sellers - investors who bet on declines in a company's share price - are sitting on $303.7 billion in realized and unrealized gains, a fourfold increase compared with 2018, their last profitable year, data from analytics firm S3 Partners showed. While higher interest rates have punished growth stocks, some investors believe Tesla CEO Elon Musk's purchase of Twitter is diverting his time running the electric car company.
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Other top winners for shorts include Amazon, Meta Platforms META.O, Apple Inc AAPL.O and used car seller Carvana Co CVNA.N, S3 data showed. By Carolina Mandl and David Randall NEW YORK, Dec 22 (Reuters) - This year's steep decline in U.S. equities is juicing the returns of short sellers, who are on track for their first yearly gain since 2018 thanks in part to bets against shares of Tesla TSLA.O, Amazon.com AMZN.O and other megacap growth stocks that have led markets higher for years. Short sellers - investors who bet on declines in a company's share price - are sitting on $303.7 billion in realized and unrealized gains, a fourfold increase compared with 2018, their last profitable year, data from analytics firm S3 Partners showed.
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Other top winners for shorts include Amazon, Meta Platforms META.O, Apple Inc AAPL.O and used car seller Carvana Co CVNA.N, S3 data showed. By Carolina Mandl and David Randall NEW YORK, Dec 22 (Reuters) - This year's steep decline in U.S. equities is juicing the returns of short sellers, who are on track for their first yearly gain since 2018 thanks in part to bets against shares of Tesla TSLA.O, Amazon.com AMZN.O and other megacap growth stocks that have led markets higher for years. Short sellers - investors who bet on declines in a company's share price - are sitting on $303.7 billion in realized and unrealized gains, a fourfold increase compared with 2018, their last profitable year, data from analytics firm S3 Partners showed.
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Other top winners for shorts include Amazon, Meta Platforms META.O, Apple Inc AAPL.O and used car seller Carvana Co CVNA.N, S3 data showed. By Carolina Mandl and David Randall NEW YORK, Dec 22 (Reuters) - This year's steep decline in U.S. equities is juicing the returns of short sellers, who are on track for their first yearly gain since 2018 thanks in part to bets against shares of Tesla TSLA.O, Amazon.com AMZN.O and other megacap growth stocks that have led markets higher for years. Short sellers - investors who bet on declines in a company's share price - are sitting on $303.7 billion in realized and unrealized gains, a fourfold increase compared with 2018, their last profitable year, data from analytics firm S3 Partners showed.
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17924.0
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2022-12-22 00:00:00 UTC
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5 Surprising Strategies for Building Wealth in the Stock Market
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https://www.nasdaq.com/articles/5-surprising-strategies-for-building-wealth-in-the-stock-market
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nan
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Are you ready to turn up the heat on your long-term investment portfolio? The five strategy tips below can help you make serious money in the stock market and beat it, as well.
But don't worry -- you don't have to be a financial wizard to make it happen. Anybody can use these money-making tricks, one by one or all together.
I'm not reinventing the spoon here, of course. My repackaged nuggets of firmly established wisdom might be just what you needed to hear, and if not, please feel free to explore the Motley Fool's sensible investing style on your own.
Now, let's get started and make that money work for you.
1. Market timing is a gamble
Don't try to time the market. Nobody really knows when the next upswing or downswing in the global economy might occur. The minute you think you have it all figured out, some completely unpredictable event turns Wall Street upside down and inside out, like the city streets in Inception or Doctor Strange.
Instead, focus on buying and holding quality investments. Great companies create shareholder value in the long run. Learn how to find these long-term winners amid a noisy horde of wannabes and impostors, invest in them when share prices are at their least reasonable, and hang on through the twists and turns of the bumpy road that lies ahead.
Congratulations! You've just ripped a few pages from the legendary playbook of master investor Warren Buffett. He never plays the market-timing game, and it's a good idea for you to stay away from it, too.
2. Mo eggs, mo baskets
This one is simple. Diversify your portfolio to minimize risk and maximize returns.
You heard me right. Betting the farm on a single stock may feel like a good idea from time to time, but there's always a real risk that things won't work out.
In the stock market, a large selection of well-run companies will outplay and outlast any hyper-focused strategy in the long run. So you might want to start with a diversified basket of stocks, such as the low-fee Vanguard 500 Index Fund, which tracks the approximately 500 components of the S&P 500 market index.
This way, a single stock or even a whole market sector could crash and you'd still be fine. There's safety in numbers, and you can always add handpicked stocks to that wide-ranging foundation as time goes by.
Again, Warren Buffett made his fortune by investing in a broad-based collection of top-quality businesses -- and he has also bought a ton of the Vanguard 500 Index Fund. You're running with some great role models here, sport.
3. The power of knowledge
Here's how you should go about finding those handpicked stocks that look ready to beat the S&P 500 in the long run. Wouldn't you know it -- we're knocking on Warren Buffett's door again.
It's a good idea if most of your investments involve companies with strong financial results, including a healthy balance sheet, steady profits, and a history of paying dividends. This core of unshakable business titans (plus, perhaps, the index funds we talked about a minute ago) will give you a wealth-building platform from which you can launch smaller explorations of more promising but also riskier stocks.
Both of these stock types require a deep understanding and serious analysis before you put your money to work. Buffett keeps his nightstand stacked with annual reports. Know the difference between revenue, earnings, and cash flow, measuring each company against its most appropriate financial metrics.
4. Flexibility for the win!
Don't be too rigid. The rules outlined above come with exceptions, and no rule of thumb should be set in stone. It's important to have a plan, but it's even more essential to roll with the punches and be willing to make adjustments as your investment goals or circumstances change.
For example, Netflix used to be all about subscriber growth at any cost, kicking long-term profits down the road for many years. Now, the media-streaming veteran has reached a tipping point where it makes more sense to focus on free cash flow and top-line revenue at the cost of potentially slower subscriber growth
Smart investors have already adjusted to Netflix's updated strategy. The rest of the market should catch on eventually.
Stop me if you've heard this before, but you're walking in the footsteps of Warren Buffett again.
The Oracle of Omaha used to stay away from tech stocks in favor of insurance companies, retail chains, and energy stocks. That changed when Berkshire Hathaway bought some Apple stock in 2016. Now, the iPhone maker accounts for 38% of Berkshire's $323 billion stock portfolio.
Berkshire has spent a net total of $25.4 billion on Apple shares in seven years. The market value of that investment stands at $121 billion today. That's an effective gain of 377%, all from building an investment that used to be outside of Buffett's comfort zone. It's never too late to learn new tricks!
5. Only you know what's best for you
Don't get caught up in the hype. Do your own research and make investment decisions based on facts, not speculation. There's nothing wrong with picking up stock tips at the barber, around the water cooler, or on social media, but you always have to follow up with your own analysis.
Read financial reports. Check out the company's online press room. Use its products if you can, or talk to people with some real-world experience.
You can't trust anyone blindly. Take a second look at whatever I might recommend to you. Even Warren Buffett isn't perfect, and you shouldn't buy every stock he touches or follow every single bit of his sage advice.
You do you. What it really comes down to is taking your own random walk down Wall Street.
10 stocks we like better than Walmart
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Stock Advisor returns as of December 1, 2022
Anders Bylund has positions in Netflix and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Netflix, and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Learn how to find these long-term winners amid a noisy horde of wannabes and impostors, invest in them when share prices are at their least reasonable, and hang on through the twists and turns of the bumpy road that lies ahead. This core of unshakable business titans (plus, perhaps, the index funds we talked about a minute ago) will give you a wealth-building platform from which you can launch smaller explorations of more promising but also riskier stocks. Now, the media-streaming veteran has reached a tipping point where it makes more sense to focus on free cash flow and top-line revenue at the cost of potentially slower subscriber growth Smart investors have already adjusted to Netflix's updated strategy.
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Now, the media-streaming veteran has reached a tipping point where it makes more sense to focus on free cash flow and top-line revenue at the cost of potentially slower subscriber growth Smart investors have already adjusted to Netflix's updated strategy. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Netflix, and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on Apple.
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Betting the farm on a single stock may feel like a good idea from time to time, but there's always a real risk that things won't work out. Even Warren Buffett isn't perfect, and you shouldn't buy every stock he touches or follow every single bit of his sage advice. 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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The five strategy tips below can help you make serious money in the stock market and beat it, as well. Market timing is a gamble Don't try to time the market. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Netflix, and Vanguard S&P 500 ETF.
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17925.0
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2022-12-22 00:00:00 UTC
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Could Apple Still Be the World's Largest Company in 2023?
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https://www.nasdaq.com/articles/could-apple-still-be-the-worlds-largest-company-in-2023
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The world's biggest technology companies are almost incomprehensibly large at this point. Add up the market caps of the four largest U.S. companies -- Apple (NASDAQ: AAPL), Microsoft, Alphabet, and Amazon -- and you get a combined market value of just under $6 trillion. But Apple has stood above the rest for the last few years. Standing as the only company with a market cap of over $2 trillion right now, the iPhone and computer hardware maker has been one of the best-performing stocks of all time.
But will Apple remain the largest company by market cap in the world in 2023, or could it give up its No. 1 spot?
Apple won't be dislodged from its dominant market position
The amazing thing about Apple's ascendance is that its primary business is in a notoriously difficult space: consumer electronics. Steve Jobs, through a remarkable marketing strategy that elevated Apple products above the fray, put the company in a position that has allowed it to consistently sell its iPhones, iPads, AirPods, and more at premium prices compared to the products of its rivals. For example, the newest iPhone sells for over $1,000 in the United States, while the latest Google Pixel sells for just $599. Yet about half of U.S. smartphone buyers keep purchasing Apple devices.
Apple now has leading positions in the smartphone, tablet, and wearables markets, at least in wealthy Western and Asian countries. For fiscal 2022, which ended Sept. 24, Apple did $316 billion in product sales, up from $297 billion a year prior. It also has built a high-margin software and services business to go along with its hardware. This includes fees from the App Store and a multibillion-dollar annual payment from Google to put Google Search on iPhones, as well as tens of millions of subscriptions to Apple Music and Apple TV. Last year, the services segment did $78 billion in revenue, up from $68 billion in 2021.
Recession, inflation, and a reliance on China are real risks
The beauty of Apple's services strategy is that it doesn't require people to make new hardware purchases year after year. This segment, which now makes up 20% of Apple's overall sales, should be somewhat insulated in a recessionary environment. But the other 80% of the business still relies on consumer discretionary purchases. And consumers' pockets are getting pinched.
First, we've had over a year of high inflation, which has been eating into people's budgets and has caused many to cut back on discretionary spending. Second, there's a significant risk that the Federal Reserve's efforts to bring inflation back down by aggressively hiking interest rates will contribute to the economy tipping into recession next year. Third, personal savings rates are at an all-time low in the United States.
During the earlier stages of the pandemic, when many people were unable to travel, go out to eat, or spend on a range of other costly things they previously did, savings rates exploded to 15% to 30% of personal income -- way above the long-term average range of 5% to 10%. Now, savings rates are just 2.3%. By definition, this change in the savings rate means that many people are depleting the cash they saved during the pandemic -- or have depleted it already. Some of that excess cash doubtlessly went toward purchases of Apple products. That dynamic won't repeat itself in 2023.
There are also major looming concerns about Apple's supply chain, which is centered around China. Workers at Foxconn's iPhone factory have engaged in protests in recent months, impairing Apple's ability to ship its products on schedule.
Also, China recently began relaxing its strict zero-COVID policy, fully opening up its economy for the first time in years. At first glance, this might seem like a positive thing for Apple's supply chain, but the knock-on effects of letting COVID-19 run rampant in China are unknown. While the country's official statistics show that more than 90% of its population has received their initial vaccination series, the percentage who have gotten boosters is much much lower, and several recently published modeling studies forecast that more than a million people in China will die of COVID-19 in the coming months or over the next year. That could cause major disruptions to the Chinese economy, which in turn could hinder Apple's ability to get its products manufactured.
If you look at Apple's trailing annual free cash flow of $111 billion, the stock does not seem that expensive. With a market cap of $2.1 trillion, it trades at a price-to-free-cash-flow ratio of 19, which is actually below the Nasdaq Composite's average of 21. But investors are less interested in how much cash a company generated in the past, and more concerned with the future cash flow it will produce for shareholders. Based on today's low consumer savings rate and the risk that Chinese manufacturing will experience major hiccups, I think 2023 could be a tough year for Apple's business. I would not be surprised to see it generate less free cash flow in fiscal 2023 than it did in fiscal 2022.
AAPL Free Cash Flow data by YCharts.
Which company could top Apple?
I think it is unlikely Apple will still be the largest company in the world by the end of next year. But which one will replace it? Amazon and Alphabet both look cheap right now, but would need to go on huge bull runs to pass Apple's market cap, and it seems improbable that they could do so in just one year. My leading candidate to leapfrog Apple is Microsoft, which has a much more resilient business model than the iPhone maker.
Much of Microsoft's business is based on selling subscriptions for enterprise software and providing cloud computing services. Neither one of those is reliant on consumer spending, and therefore, we can expect those businesses will be more resilient in a recessionary environment. With Microsoft valued at $1.8 trillion today, I'd bet that it -- not Apple -- will hold the title of world's most valuable company by the end of 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
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. Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Add up the market caps of the four largest U.S. companies -- Apple (NASDAQ: AAPL), Microsoft, Alphabet, and Amazon -- and you get a combined market value of just under $6 trillion. AAPL Free Cash Flow data by YCharts. Second, there's a significant risk that the Federal Reserve's efforts to bring inflation back down by aggressively hiking interest rates will contribute to the economy tipping into recession next year.
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Add up the market caps of the four largest U.S. companies -- Apple (NASDAQ: AAPL), Microsoft, Alphabet, and Amazon -- and you get a combined market value of just under $6 trillion. AAPL Free Cash Flow data by YCharts. If you look at Apple's trailing annual free cash flow of $111 billion, the stock does not seem that expensive.
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Add up the market caps of the four largest U.S. companies -- Apple (NASDAQ: AAPL), Microsoft, Alphabet, and Amazon -- and you get a combined market value of just under $6 trillion. AAPL Free Cash Flow data by YCharts. Apple won't be dislodged from its dominant market position The amazing thing about Apple's ascendance is that its primary business is in a notoriously difficult space: consumer electronics.
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Add up the market caps of the four largest U.S. companies -- Apple (NASDAQ: AAPL), Microsoft, Alphabet, and Amazon -- and you get a combined market value of just under $6 trillion. AAPL Free Cash Flow data by YCharts. Based on today's low consumer savings rate and the risk that Chinese manufacturing will experience major hiccups, I think 2023 could be a tough year for Apple's business.
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17926.0
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2022-12-22 00:00:00 UTC
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ANALYSIS-Short sellers gain nearly $304 bln after tumble in U.S. stocks
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AAPL
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https://www.nasdaq.com/articles/analysis-short-sellers-gain-nearly-%24304-bln-after-tumble-in-u.s.-stocks-0
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nan
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nan
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By Carolina Mandl and David Randall
NEW YORK, Dec 22 (Reuters) - This year's steep decline in U.S. equities is juicing the returns of short sellers, who are on track for their first yearly gain since 2018 thanks in part to bets against shares of Tesla TSLA.O, Amazon.com AMZN.O and other megacap growth stocks that have led markets higher for years.
Short sellers - investors who bet on declines in a company's share price - are sitting on $303.7 billion in realized and unrealized gains, a fourfold increase compared with 2018, their last profitable year, data from analytics firm S3 Partners showed. That works out to a 31.2% return on total average short interest of $973.6 billion throughout the year, according to S3 Partners.
Bets against electric-vehicle maker Tesla Inc lead the pack in terms of dollar gains, with investors seeing $15 billion in realized and unrealized profits on some $19.3 billion of shares sold short. Shares of the electric carmaker, whose meteoric rally over the last few years has burned many bearish investors, are down roughly 60% year-to-date.
Other top winners for shorts include Amazon, Meta Platforms META.O, Apple Inc AAPL.O and used car seller Carvana Co CVNA.N, S3 data showed. The S&P 500 is down almost 19% this year and on track for its biggest yearly percentage loss since 2008 after the Federal Reserve's most aggressive rate increases in decades dried up risk appetite.
This year "was easier for shorting because the economic environment felt like a headwind to the whole market, instead of the tailwind seen in previous years," said Moez Kassam, portfolio manager at long-short hedge fund firm Anson Funds, which oversees around $1.7 billion and posted a 4.9% gain through November. "Shorts have been impossible for years," he said.
Among the fund's top positions were bets against biotech company Novavax Inc NVAX, which fell over 90% year-to-date, and electric-vehicle maker Rivian Automotive Inc RIVN.O, down roughly 80%.
Stanphyl Capital portfolio manager Mark Spiegel, who has been short Tesla "constantly, in varying size" since 2014, said a bet against Tesla was his fund's most profitable individual short position this year. The $18 million fund is up roughly 60% in 2022. Tesla's shares are up 1,271% since 2014.
While higher interest rates have punished growth stocks, some investors believe Tesla CEO Elon Musk's purchase of Twitter is diverting his time running the electric car company. Musk's Tesla share sales have also weighed on the stock, and investors have been watching for signs that consumer demand for electric vehicles is cooling.
Spiegel has maintained his bearish bets against Tesla, believing the stock has a long way to go before reaching a fair price.
The last several years haven’t been kind to bearish investors. Shorts lost $142.4 billion in 2021, a year when huge rallies in so-called meme stocks such as GameStop GME.Nhurt several firms that had bet against GameStop and similar companies. They took a $241.7 billion hit in 2020, when the Fed cut rates to historic lows in response to the COVID-19 pandemic, sparking a massive rally in markets.
Not all short strategies worked this year. Long-short hedge funds, which bet on stock prices rising or falling, posted a 9.7% loss through November, according to data provider HFR.
Market swings sparked by economic data and Fed decisions have often wrong-footed investors and fueled lockstep moves in asset prices, making it more difficult to select individual stocks, traders said.
"It's a very difficult environment because correlations (among stocks) are high," said Venu Krishna, head of U.S. equity strategy at Barclays in New York.
At the same time, energy stocks such as Exxon Mobil Corp XOM.N, Occidental Petroleum Corp OXY.N, Chevron Corp CVX.N and Marathon Petroleum MPC.N notched big gains following a surge in energy prices, bruising those who bet against them.
Charles Lemonides, portfolio manager at $226 billion hedge fund ValueWorks LLC, believes tight monetary policy will weigh on risk appetite next year. His fund now has its highest ever level of overall short positioning.
"It's much less likely that we will get back to the sort of dangerous enthusiasm on the part of investors for stocks like Tesla that took short-sellers to the cleaners in years past," he said.
Companies that Lemonides is betting against include aircraft component supplier Transdigm Group TDG.N, whose shares are up 1.45% year-to-date, and semiconductor company Broadcom AVGO.O, whose shares are down almost 16%.
"There are a bunch of companies out there … that have a significant amount of debt, but equity investors are perceiving them as bulletproof right now," he said.
Short sellers' gainshttps://tmsnrt.rs/3FMhhXw
(Reporting by Carolina Mandl and David Randall in New York; Editing by Ira Iosebashvili and Leslie Adler)
((carolina.mandl@thomsonreuters.com; +1 (917) 891-4931;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Other top winners for shorts include Amazon, Meta Platforms META.O, Apple Inc AAPL.O and used car seller Carvana Co CVNA.N, S3 data showed. Short sellers - investors who bet on declines in a company's share price - are sitting on $303.7 billion in realized and unrealized gains, a fourfold increase compared with 2018, their last profitable year, data from analytics firm S3 Partners showed. While higher interest rates have punished growth stocks, some investors believe Tesla CEO Elon Musk's purchase of Twitter is diverting his time running the electric car company.
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Other top winners for shorts include Amazon, Meta Platforms META.O, Apple Inc AAPL.O and used car seller Carvana Co CVNA.N, S3 data showed. By Carolina Mandl and David Randall NEW YORK, Dec 22 (Reuters) - This year's steep decline in U.S. equities is juicing the returns of short sellers, who are on track for their first yearly gain since 2018 thanks in part to bets against shares of Tesla TSLA.O, Amazon.com AMZN.O and other megacap growth stocks that have led markets higher for years. Short sellers - investors who bet on declines in a company's share price - are sitting on $303.7 billion in realized and unrealized gains, a fourfold increase compared with 2018, their last profitable year, data from analytics firm S3 Partners showed.
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Other top winners for shorts include Amazon, Meta Platforms META.O, Apple Inc AAPL.O and used car seller Carvana Co CVNA.N, S3 data showed. By Carolina Mandl and David Randall NEW YORK, Dec 22 (Reuters) - This year's steep decline in U.S. equities is juicing the returns of short sellers, who are on track for their first yearly gain since 2018 thanks in part to bets against shares of Tesla TSLA.O, Amazon.com AMZN.O and other megacap growth stocks that have led markets higher for years. Short sellers - investors who bet on declines in a company's share price - are sitting on $303.7 billion in realized and unrealized gains, a fourfold increase compared with 2018, their last profitable year, data from analytics firm S3 Partners showed.
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Other top winners for shorts include Amazon, Meta Platforms META.O, Apple Inc AAPL.O and used car seller Carvana Co CVNA.N, S3 data showed. By Carolina Mandl and David Randall NEW YORK, Dec 22 (Reuters) - This year's steep decline in U.S. equities is juicing the returns of short sellers, who are on track for their first yearly gain since 2018 thanks in part to bets against shares of Tesla TSLA.O, Amazon.com AMZN.O and other megacap growth stocks that have led markets higher for years. Short sellers - investors who bet on declines in a company's share price - are sitting on $303.7 billion in realized and unrealized gains, a fourfold increase compared with 2018, their last profitable year, data from analytics firm S3 Partners showed.
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17927.0
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2022-12-21 00:00:00 UTC
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Why Intel Stock Shot Higher on Wednesday
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AAPL
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https://www.nasdaq.com/articles/why-intel-stock-shot-higher-on-wednesday
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nan
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nan
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What happened
A onetime investor darling that has somewhat fallen out of favor, Intel (NASDAQ: INTC) had a good session on the stock market Wednesday. On news of an adjustment in its corporate structure, investors traded the chipmaker's share price up by nearly 1.5%.
So what
That morning, Intel announced that it would be restructuring its graphics hardware operations in order to become more competitive. The accelerated computing systems and graphics group, abbreviated as AXG, will be split in two. One successor division will concentrate on high-performance computing (HPC), and another will focus on the gaming market.
AXG's leader Raja Koduri will return to his previous job as Intel's chief architect. Employees under his management will be shifted to either the company's PC or server chip units.
Intel has been a dominant force for years in the tech industry's central processing unit (CPU) segment and is a veteran manufacturer of graphics hardware. However, it has been eclipsed by prominent rivals in the latter segment, notably graphics card specialist Nvidia. Meanwhile, it has also come under pressure from up-and-coming CPU makers, notably Apple.
Now what
In a statement on the move quoted in various media reports, Intel said that "Discrete graphics and accelerated computing are critical growth engines" for its business.
"With our flagship products now in production, we are evolving our structure to accelerate and scale their impact and drive go-to-market strategies with a unified voice to customers," the company added.
While this won't make Intel a graphics powerhouse at a single stroke, it's a tacit acknowledgment that it needs to find a way to be more competitive in the segment. It's no wonder that investors were cautiously optimistic about the move.
10 stocks we like better than Intel
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*Stock Advisor returns as of December 1, 2022
Eric Volkman has positions in Apple. The Motley Fool has positions in and recommends Apple, Intel, and Nvidia. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened A onetime investor darling that has somewhat fallen out of favor, Intel (NASDAQ: INTC) had a good session on the stock market Wednesday. Intel has been a dominant force for years in the tech industry's central processing unit (CPU) segment and is a veteran manufacturer of graphics hardware. Now what In a statement on the move quoted in various media reports, Intel said that "Discrete graphics and accelerated computing are critical growth engines" for its business.
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See the 10 stocks *Stock Advisor returns as of December 1, 2022 Eric Volkman has positions in Apple. The Motley Fool has positions in and recommends Apple, Intel, and Nvidia. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple.
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What happened A onetime investor darling that has somewhat fallen out of favor, Intel (NASDAQ: INTC) had a good session on the stock market Wednesday. 10 stocks we like better than Intel When our award-winning analyst team has a stock tip, it can pay to listen. 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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So what That morning, Intel announced that it would be restructuring its graphics hardware operations in order to become more competitive. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Intel wasn't one of them! The Motley Fool has positions in and recommends Apple, Intel, and Nvidia.
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17928.0
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2022-12-21 00:00:00 UTC
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Better Buy for 2023: Apple vs. Nvidia
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AAPL
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https://www.nasdaq.com/articles/better-buy-for-2023%3A-apple-vs.-nvidia
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nan
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nan
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The new year is less than two weeks away, making now the perfect time to start organizing your investment plans for 2023. A sell-off over the last 12 months has put numerous stocks on sale, with some of the world's most valuable companies trading at attractive prices.
Tech stocks have long had a reputation as reliable long-term investments. For instance, Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA) have both seen their shares rise over 200% in the last five years despite declines in 2022.
These companies' stocks are going into the new year at bargain prices, with promising long-term outlooks. However, if you only want to add one to your portfolio for 2023, you'll need to know which is ultimately the better buy. So, let's find out.
Apple
Apple shares have sunk 24% since January as macroeconomic headwinds hit the entire tech industry. However, the iPhone manufacturer has proven its strength over the last year by reporting continued revenue growth from its products and services despite market declines.
For instance, in the fourth quarter of 2022, iPhone revenue rose by 9.6% to $42.6 billion despite worldwide smartphone shipments decreasing by 9.7%, according to IDC. Additionally, Mac revenue grew 25.3% year over year, hitting $11.5 billion, while worldwide PC shipments fell 15%.
However, the most attractive part of Apple's business is its swiftly growing services segment. The subscription-based business includes platforms such as Apple TV+, Music, iCloud, News+, and Fitness+, and offers lucrative profit margins. In Apple's fiscal 2022, services hit a 71.7% profit margin while products reported a 36.3% profit margin. The last year also saw services revenue rise 14% year over year to $78.1 billion, rising more than the iPhone's 7% year-over-year increase.
Moreover, in 2023 the company will have an exciting slate of product releases. Numerous reports state Apple is gearing up to launch its augmented/virtual reality (AR/VR) headset next year. With the device the company will enter the $25.33 billion AR industry, expected to see a compound annual growth rate (CAGR) of 40.9% until 2030.
Apple has a knack for entering new markets and quickly rising to dominance, as it did with smartphones, tablets, Bluetooth headphones, and smartwatches. With consistent product demand, a booming highly profitable services business, and plans to enter a lucrative market, Apple is a great stock pick for 2023.
Nvidia
Nvidia shares have been battered in 2022, with the stock plunging 44% year to date. However, investors who bought in five years ago won't mind much, considering the stock is still up 230% since 2017.
The company primarily suffered from declines in the graphics card (GPU) market, with its gaming revenue decreasing by 51% in Q3 2022 to $1.57 billion. However, the data center segment was Nvidia's biggest by far in its latest quarter. The segment earned $3.8 billion, rising 30.5% year over year and accounting for 64.6% of Nvidia's revenue.
Thanks to a booming cloud computing industry, data centers are in high demand, and Nvidia is reaping the rewards. According to Grand View Research, the $368.97 billion cloud computing market will grow at a CAGR of 15.7% until 2030, with Nvidia likely to profit from a good portion of that growth.
In 2023, Nvidia will team up with Microsoft's Azure to build a "massive cloud AI computer." The partnership is a multi-year collaboration that combines Azure's supercomputing infrastructure with Nvidia's GPUs.
Azure is responsible for the second-largest market share in cloud computing at 21% and is quickly expanding. A successful partnership with Azure could be incredibly lucrative for Nvidia's long-term future.
The GPU market may have suffered from declines in consumer demand in 2022, but it won't stay down forever. Nvidia could come out on the other side with a back-to-form GPU business and a thriving data center segment.
Apple and Nvidia both have excellent outlooks for 2023 and beyond. However, when comparing the companies' price-to-earnings ratios, Apple's sits at 22.01, down 29% since last year, while Nvidia's 69.19 is far less attractive.
Nvidia's business will likely begin to improve in 2023 as GPU sales return and its data center business expands. However, Apple's ability to report consistent growth in a year plagued by market declines makes it a more reliable and resilient business heading into the new year.
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
Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple 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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For instance, Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA) have both seen their shares rise over 200% in the last five years despite declines in 2022. However, the iPhone manufacturer has proven its strength over the last year by reporting continued revenue growth from its products and services despite market declines. With consistent product demand, a booming highly profitable services business, and plans to enter a lucrative market, Apple is a great stock pick for 2023.
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For instance, Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA) have both seen their shares rise over 200% in the last five years despite declines in 2022. In Apple's fiscal 2022, services hit a 71.7% profit margin while products reported a 36.3% profit margin. With consistent product demand, a booming highly profitable services business, and plans to enter a lucrative market, Apple is a great stock pick for 2023.
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For instance, Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA) have both seen their shares rise over 200% in the last five years despite declines in 2022. The last year also saw services revenue rise 14% year over year to $78.1 billion, rising more than the iPhone's 7% year-over-year increase. Nvidia Nvidia shares have been battered in 2022, with the stock plunging 44% year to date.
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For instance, Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA) have both seen their shares rise over 200% in the last five years despite declines in 2022. The segment earned $3.8 billion, rising 30.5% year over year and accounting for 64.6% of Nvidia's revenue. According to Grand View Research, the $368.97 billion cloud computing market will grow at a CAGR of 15.7% until 2030, with Nvidia likely to profit from a good portion of that growth.
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17929.0
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2022-12-21 00:00:00 UTC
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NVIDIA (NVDA) vs. Taiwan Semiconductor (TSM): Which is the Better Investment for 2023?
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AAPL
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https://www.nasdaq.com/articles/nvidia-nvda-vs.-taiwan-semiconductor-tsm%3A-which-is-the-better-investment-for-2023
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nan
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nan
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The semiconductor space is an ever-changing, evolving, and innovative area of business and technology. Nvidia NVDA and Taiwan Semiconductor TSM remain at the top of the semiconductor food chain in terms of diversity.
Let’s see which of these semiconductor leaders could be the better investment going into 2023.
Brief Overview
Nvidia is renowned for its invention of graphic processing units (GPUs) with its range of expertise in the data center, professional visualization, and gaming markets.
While there are not many semiconductor companies that can compete with Nvidia’s broad range of dominance, Taiwan Semiconductor is a viable opponent in this regard.
Taiwan Semiconductor is the world’s largest dedicated integrated circuit foundry. Founded in 1987, the company manufactures integrated circuits for its customers based on their proprietary designs with one of its most notable clients being Apple AAPL.
Taiwan Semiconductor produces the chips used In Apple’s iPhones, iPods, and Mac computers. Furthermore, Taiwan Semiconductor assists with the production of over 12,300 products for over 535 clients worldwide.
Pleasantly, Nvidia and Taiwan Semiconductor aren’t competitors. In fact, Nvidia itself is a customer of Taiwan Semiconductor and has collaborated with the company in manufacturing the graphic chips it designs.
Performance & Valuation
Taiwan Semiconductor is down -36% in 2022 vs. Nvidia’s -44%. Both stocks have underperformed the S&P 500’s -21% and the Nasdaq’s -31% performances. Over the last decade, NVDA’s total return including dividends is a staggering +5,364% to easily beat TSM and the broader indexes.
Image Source: Zacks Investment Research
Trading around $165 per share, NVDA currently trades at 72X earnings. In contrast, TSM trades at $77 a share and just 11.9X earnings.
Image Source: Zacks Investment Research
Even better, TSM trades 65% below its decade-long high of 34.4X and at a 25% discount to the median of 15.9X. NVDA is 23% below its decade high of 93.5X but 92% above the median of 37.4X.
Taiwan Semiconductor definitely looks like the better investment from a valuation standpoint going into the new year. Looking at the growth of both companies will be essential with the economy still very challenging for semiconductors and the broader technology sector.
Growth
Nvidia earnings are now expected to drop -26% in its current fiscal 2023 at $3.27 per share. This is down from $4.44 a share in 2021. However, FY24 earnings are projected to rebound 34% at $4.37 a share. Earnings estimate revisions have declined for both FY23 and FY24 over the last 90 days.
Image Source: Zacks Investment Research
Sales are forecasted to be virtually flat in FY23 and rise 9% in FY24 to $29.42 billion. Fiscal 2024 would be an impressive 151% increase from pre-pandemic sales of $11.71 billion in 2019.
Looking at Taiwan Semiconductor, earnings are anticipated to climb an impressive 54% this year and then decline -9% in FY23 at $5.76 per share. Earnings estimates have gone up for FY22 but have trended down for FY23 over the last quarter.
Image Source: Zacks Investment Research
On the top line, sales are projected to jump 27% in 2022 and rise another 7% in FY23 at $77.31 billion. FY23 would represent 129% growth from pre-pandemic levels with 2019 sales at $35.77 billion. This is very impressive for a company that has been around for over a quarter century.
Image Source: Zacks Investment Research
Bottom Line
Going into 2023, Taiwan Semiconductor appears to be the better investment at the moment. TSM sports a Zacks Rank #2 (Buy) in correlation with rising earnings estimate revisions for its current fiscal 2022 with stellar bottom line growth expected.
On the other hand, Nvidia stock lands a Zack Rank #4 (Sell) at the moment with earnings estimates declining for its current fiscal 2023 which is already expected to be a down year.
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
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis 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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Founded in 1987, the company manufactures integrated circuits for its customers based on their proprietary designs with one of its most notable clients being Apple AAPL. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Brief Overview Nvidia is renowned for its invention of graphic processing units (GPUs) with its range of expertise in the data center, professional visualization, and gaming markets.
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Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Founded in 1987, the company manufactures integrated circuits for its customers based on their proprietary designs with one of its most notable clients being Apple AAPL. Image Source: Zacks Investment Research Trading around $165 per share, NVDA currently trades at 72X earnings.
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Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Founded in 1987, the company manufactures integrated circuits for its customers based on their proprietary designs with one of its most notable clients being Apple AAPL. Image Source: Zacks Investment Research Trading around $165 per share, NVDA currently trades at 72X earnings.
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Founded in 1987, the company manufactures integrated circuits for its customers based on their proprietary designs with one of its most notable clients being Apple AAPL. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Trading around $165 per share, NVDA currently trades at 72X earnings.
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17930.0
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2022-12-21 00:00:00 UTC
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After Hours Most Active for Dec 21, 2022 : STLD, BCE, AAPL, ABMD, C, CMCSA, SMCI, ENB, MTG, MU, PINS, BAC
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-dec-21-2022-%3A-stld-bce-aapl-abmd-c-cmcsa-smci-enb-mtg-mu-pins
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nan
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nan
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The NASDAQ 100 After Hours Indicator is up 3.84 to 11,239.72. The total After hours volume is currently 121,054,541 shares traded.
The following are the most active stocks for the after hours session:
Steel Dynamics, Inc. (STLD) is -0.12 at $104.70, with 18,171,769 shares traded. STLD's current last sale is 105.23% of the target price of $99.5.
BCE, Inc. (BCE) is unchanged at $44.04, with 6,902,469 shares traded. BCE's current last sale is 84.5% of the target price of $52.12.
Apple Inc. (AAPL) is +0.18 at $135.63, with 5,331,422 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
ABIOMED, Inc. (ABMD) is +0.34 at $381.36, with 4,864,241 shares traded. ABMD's current last sale is 100.36% of the target price of $380.
Citigroup Inc. (C) is unchanged at $44.81, with 3,762,576 shares traded. C's current last sale is 78.61% of the target price of $57.
Comcast Corporation (CMCSA) is unchanged at $35.08, with 2,569,205 shares traded. CMCSA's current last sale is 78.83% of the target price of $44.5.
Super Micro Computer, Inc. (SMCI) is -0.17 at $83.70, with 2,554,152 shares traded. SMCI's current last sale is 101.45% of the target price of $82.5.
Enbridge Inc (ENB) is unchanged at $39.29, with 2,540,522 shares traded. ENB's current last sale is 87.67% of the target price of $44.815.
MGIC Investment Corporation (MTG) is unchanged at $13.10, with 2,005,186 shares traded. As reported by Zacks, the current mean recommendation for MTG is in the "buy range".
Micron Technology, Inc. (MU) is -0.11 at $51.08, with 1,830,196 shares traded. Smarter Analyst Reports: Micron to Unveil Memory Design Center in Atlanta
Pinterest, Inc. (PINS) is +0.01 at $25.15, with 1,595,303 shares traded. PINS's current last sale is 89.82% of the target price of $28.
Bank of America Corporation (BAC) is unchanged at $32.68, with 1,539,000 shares traded. As reported by Zacks, the current mean recommendation for BAC is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is +0.18 at $135.63, with 5,331,422 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". MGIC Investment Corporation (MTG) is unchanged at $13.10, with 2,005,186 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 +0.18 at $135.63, with 5,331,422 shares traded. As reported by Zacks, the current mean recommendation for MTG is in the "buy range".
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Apple Inc. (AAPL) is +0.18 at $135.63, with 5,331,422 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 121,054,541 shares traded.
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Apple Inc. (AAPL) is +0.18 at $135.63, with 5,331,422 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is up 3.84 to 11,239.72.
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17931.0
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2022-12-21 00:00:00 UTC
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Intel splits graphic chips unit into two
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AAPL
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https://www.nasdaq.com/articles/intel-splits-graphic-chips-unit-into-two
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nan
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nan
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Dec 21 (Reuters) - Intel Corp INTC.O is splitting its graphic chips unit into two, the company said on Wednesday, as it realigns the business to better compete with Nvidia Corp NVDA.O and Advanced Micro Devices AMD.O.
The consumer graphics unit will be combined with Intel's client computing group, which makes chips for personal computers, while accelerated computing teams will join its data center and artificial intelligence (AI) business, the company said.
The move comes as Intel doubles down on accelerated computing, a growing segment dominated by Nvidia as AI use surges.
"I don't think it changes much (if anything) other than aligning the products with the respective sales organizations they fit with vs. having them as a discrete segment," Wedbush Securities analyst Matthew Bryson said.
Raja Koduri, who led the graphic chips unit, will return to his role as chief architect and oversee the company's long-term technology and chip design strategy.
Koduri, who has led graphics technology ventures at iPhone maker Apple AAPL.O and AMD, joined Intel in 2017.
(Reporting by Chavi Mehta in Bengaluru and Jane Lanhee Lee; Editing by Anil D'Silva)
((Chavi.Mehta@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Koduri, who has led graphics technology ventures at iPhone maker Apple AAPL.O and AMD, joined Intel in 2017. The move comes as Intel doubles down on accelerated computing, a growing segment dominated by Nvidia as AI use surges. "I don't think it changes much (if anything) other than aligning the products with the respective sales organizations they fit with vs. having them as a discrete segment," Wedbush Securities analyst Matthew Bryson said.
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Koduri, who has led graphics technology ventures at iPhone maker Apple AAPL.O and AMD, joined Intel in 2017. Dec 21 (Reuters) - Intel Corp INTC.O is splitting its graphic chips unit into two, the company said on Wednesday, as it realigns the business to better compete with Nvidia Corp NVDA.O and Advanced Micro Devices AMD.O. The consumer graphics unit will be combined with Intel's client computing group, which makes chips for personal computers, while accelerated computing teams will join its data center and artificial intelligence (AI) business, the company said.
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Koduri, who has led graphics technology ventures at iPhone maker Apple AAPL.O and AMD, joined Intel in 2017. Dec 21 (Reuters) - Intel Corp INTC.O is splitting its graphic chips unit into two, the company said on Wednesday, as it realigns the business to better compete with Nvidia Corp NVDA.O and Advanced Micro Devices AMD.O. The consumer graphics unit will be combined with Intel's client computing group, which makes chips for personal computers, while accelerated computing teams will join its data center and artificial intelligence (AI) business, the company said.
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Koduri, who has led graphics technology ventures at iPhone maker Apple AAPL.O and AMD, joined Intel in 2017. Dec 21 (Reuters) - Intel Corp INTC.O is splitting its graphic chips unit into two, the company said on Wednesday, as it realigns the business to better compete with Nvidia Corp NVDA.O and Advanced Micro Devices AMD.O. The consumer graphics unit will be combined with Intel's client computing group, which makes chips for personal computers, while accelerated computing teams will join its data center and artificial intelligence (AI) business, the company said.
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17932.0
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2022-12-21 00:00:00 UTC
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The 7 Best Crypto and Stocks to Buy as Christmas Gifts This Year
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AAPL
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https://www.nasdaq.com/articles/the-7-best-crypto-and-stocks-to-buy-as-christmas-gifts-this-year
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It’s tough being in the Christmas spirit this year after a dismal 2022 for the stock market. However, there is cause for optimism, as signs of recovery are present this holiday season. The Dow Jones Industrial Average is down just 8% after being deep in the red for most of 2022. Therefore, it’s an ideal time for investors to think about investing in stocks to buy as Christmas gifts.
After stocks and cryptos took such a shellacking this year, savvy investors have a great chance to benefit from some big gains in the future. The crypto winter has been long and harsh, but the bull cases for the industry stalwarts remain firmly intact. Having said that, here are seven top stocks and cryptos you should invest in as Christmas gifts this year.
DIS Walt Disney $87.76
AAPL Apple $135.40
DVN Devon Energy $61.41
BTC Bitcoin $16,805.98
ETH Ethereum $1,210.75
VTRS Viatris $10.88
ALB Albemarle Corporation $234.06
Walt Disney (DIS)
Source: chrisdorney / Shutterstock
Walt Disney (NYSE:DIS) has long been one of the most popular names in the entertainment sphere, but has gained even more attention lately due to the success of its streaming service, Disney+. It’s now become one of the most popular streaming services worldwide, with over 164 million subscribers. Moreover, some experts believe that Disney+ could potentially overtake Netflix as the top streaming service in the near future.
What sets Disney apart from its peers is the diversity of its income sources. Its park and cruise line segments effectively shield it from any losses from its streaming service. After a painstaking lockdown period, we saw tourist numbers quickly flood back to the company’s global parks. Recently, it boasts a 90% occupancy rate during the third quarter. This additional cushioning from any potential bumps in the road provides Disney with much-needed peace of mind as it strives for more success in years to come.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple (NASDAQ:AAPL) has been one of the most popular Warren Buffet stocks since the Oracle of Omaha began building a massive stake in the company in 2016. As the world’s largest tech company, the firm remains one of the most valuable brands globally. Accordingly, investors have held on to Apple as a long-term investment. It boasts a spectacular track record of growing its top and bottom lines with its robust product base and services ecosystem.
Investing in AAPL stock is also an attractive option for investors looking for dividend growth. With an annualized dividend of 92 cents currently and $122 billion in operating cash flows, a consistent dividend hike is expected to sustain over the next few years. These profits can fuel technology advancements, including 5G adoption and investment into Apple’s growing wearable, home and accessory segments.
Devon Energy (DVN)
Source: Jeff Whyte / Shutterstock.com
Oklahoma City-based Devon Energy (NYSE:DVN) is one of the few stocks that has traded in the green this year. It is one of the biggest names in the oil industry and one of the biggest producers of natural gas and natural gas liquids. This is particularly appealing given Europe’s continued high demand for these particular energy products. Additionally, with its experienced management team and proven track record for efficient operations, now might be an opportune time to invest in this well-run business.
Devon Energy is an incredible gift to dividend investors, offering an eye-catching forward annual yield of 9.1%. The company’s fixed-plus-variable dividend model has made it possible for investors to feel secure and create a steady income stream. Moreover, Devon Energy has remained resilient even as the price of oil has dropped significantly, demonstrating its long-term value to investors looking for reliable returns.
Bitcoin (BTC)
Source: shutterstock.com/Maestro-0111
Bitcoin (BTC-USD) is like a blue-chip investment in the crypto world. Though we have seen plenty of choppiness in its value this year, there’s plenty of reason to be optimistic about its long-term outlook. Inflation is slowly tapering off, and a weak dollar could create an even more favorable environment for investing in risky asset classes. Even though we might see another economic downturn in 2023, it could be a great opportunity to purchase BTC at a discount before prices surge due to expansionary policies from policymakers.
Though the crypto market has seen a correction of over 60%, the long-term future of BTC remains positive due to growing institutional investments in the asset class. Furthermore, Bitcoin halving is expected to happen in March 2024, and its effects could be quite promising. Analysts are of the opinion that it could potentially trigger a surge towards $100,000.
Ethereum (ETH)
Source: shutterstock.com/BT Side
Ethereum (ETH-USD) is arguably one of the most popular crypto platforms in terms of real-world utility. Its use cases are far wider than any of its peers, which have cemented its place in the decentralized finance and the non-fungible token markets.
Ethereum looks primed for success down the line, especially considering its recent merge with another blockchain called the Beacon Chain. The merge effects haven’t yet been priced in due to the bearish sentiment. However, the merge has significantly improved Ethereum’s security and speed. What’s more, Ethereum plans to introduce sharding in the future, which will benefit users by reducing transaction fees and increasing speed even further.
Ethereum is continuously progressing in its plans, with its highly anticipated Shanghai upgrade expected sometime next year. According to Vitalik Buterin, founder of Ethereum, Ethereum development is 55% complete after the merge, with plenty of upside ahead. Nonetheless, its users will already benefit from a faster and more secure platform.
Viatris (VTRS)
Source: Postmodern Studio / Shutterstock.com
Viatris (NASDAQ:VTRS) has had an uphill battle since its reverse merger transaction in late 2020, and things appear to be turning around lately. Despite its high debt and low growth, investors have started paying attention to this pharmaceutical company as of late. This could be due to their expansive generic portfolio and capability of tapping into new market opportunities. With the right strategy in place, Viatris is set to grow at a healthy place for the foreseeable future.
Investors have reason to be optimistic about VTRS stock as the imminent acquisitions of Oyster Point Pharma (NASDAQ:OYST) and Famy Life Sciences promise strong synergies in terms of revenue and cost optimization opportunities. These pending transactions are clearly a sign of better times ahead for shareholders, with the potential for considerable upside in the future. In addition, investors can take advantage of the firm’s incredible dividend yield of 4.5%.
Albemarle Corporation (ALB)
Source: IgorGolovniov/Shutterstock.com
With governments across the globe taking an active role in promoting electric vehicle adoption, it’s no wonder that demand for lithium has skyrocketed. This surge in demand has industry experts warning of an impending lithium shortage. Against this backdrop, lithium is emerging as a key clean energy investment, and Albemarle Corporation (NYSE:ALB) presents itself as a leading player in the space.
The firm is leading the lithium sales boom, reporting an impressive 152% growth during the third quarter alone. This strong performance allows them to anticipate even more impressive returns this financial year, with a 447% adjusted EBITDA bump in 2022. The underlying driver for such success is the burgeoning demand for lithium and Albemarle’s ability to increase conversion capacity to 200ktpa by the end of this year. With the robustness in lithium prices, ALB should be able to keep up its positive momentum and enjoy the benefits of this increased valuation over the next 12 months.
On the date of publication, Muslim Farooque held a long position in Ethereum. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
The post The 7 Best Crypto and Stocks to Buy as Christmas Gifts This Year 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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DIS Walt Disney $87.76 AAPL Apple $135.40 DVN Devon Energy $61.41 BTC Bitcoin $16,805.98 ETH Ethereum $1,210.75 VTRS Viatris $10.88 ALB Albemarle Corporation $234.06 Walt Disney (DIS) Source: chrisdorney / Shutterstock Walt Disney (NYSE:DIS) has long been one of the most popular names in the entertainment sphere, but has gained even more attention lately due to the success of its streaming service, Disney+. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) has been one of the most popular Warren Buffet stocks since the Oracle of Omaha began building a massive stake in the company in 2016. Investing in AAPL stock is also an attractive option for investors looking for dividend growth.
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DIS Walt Disney $87.76 AAPL Apple $135.40 DVN Devon Energy $61.41 BTC Bitcoin $16,805.98 ETH Ethereum $1,210.75 VTRS Viatris $10.88 ALB Albemarle Corporation $234.06 Walt Disney (DIS) Source: chrisdorney / Shutterstock Walt Disney (NYSE:DIS) has long been one of the most popular names in the entertainment sphere, but has gained even more attention lately due to the success of its streaming service, Disney+. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) has been one of the most popular Warren Buffet stocks since the Oracle of Omaha began building a massive stake in the company in 2016. Investing in AAPL stock is also an attractive option for investors looking for dividend growth.
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DIS Walt Disney $87.76 AAPL Apple $135.40 DVN Devon Energy $61.41 BTC Bitcoin $16,805.98 ETH Ethereum $1,210.75 VTRS Viatris $10.88 ALB Albemarle Corporation $234.06 Walt Disney (DIS) Source: chrisdorney / Shutterstock Walt Disney (NYSE:DIS) has long been one of the most popular names in the entertainment sphere, but has gained even more attention lately due to the success of its streaming service, Disney+. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) has been one of the most popular Warren Buffet stocks since the Oracle of Omaha began building a massive stake in the company in 2016. Investing in AAPL stock is also an attractive option for investors looking for dividend growth.
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DIS Walt Disney $87.76 AAPL Apple $135.40 DVN Devon Energy $61.41 BTC Bitcoin $16,805.98 ETH Ethereum $1,210.75 VTRS Viatris $10.88 ALB Albemarle Corporation $234.06 Walt Disney (DIS) Source: chrisdorney / Shutterstock Walt Disney (NYSE:DIS) has long been one of the most popular names in the entertainment sphere, but has gained even more attention lately due to the success of its streaming service, Disney+. Investing in AAPL stock is also an attractive option for investors looking for dividend growth. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) has been one of the most popular Warren Buffet stocks since the Oracle of Omaha began building a massive stake in the company in 2016.
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17933.0
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2022-12-21 00:00:00 UTC
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Alphabet (GOOGL) Updates Workspace Apps With Toggle Feature
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AAPL
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https://www.nasdaq.com/articles/alphabet-googl-updates-workspace-apps-with-toggle-feature
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nan
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nan
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Alphabet’s GOOGL division Google added Material 3 features to Google Docs, Sheets, Slides and Meet in a bid to provide an enhanced experience to Workspace users.
The Material 3 features include the new toggle design switch. Users of Google Docs, Sheets and Slides leverage the switch in the editor’s overflow menu for print layout, suggested changes, available offline and star.
On the back of the toggle switch, Google aims to make visual presentation more accessible to users of Google Docs, Sheets and Slides.
The new toggle switch in Google Meet allows users to easily play with new buttons in Meeting settings.
The above-mentioned feature is expected to boost the adoption rate of Workspace applications in the days ahead.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Efforts to Bolster Google Workspace
The recent move bodes well with Alphabet’s consistent efforts toward strengthening the Google Workspace offerings, consisting of Gmail, Meet, Drive, Docs, Sheets, Slides and Contacts.
Google Workspace has been driving GOOGL’s momentum for a while across organizations, demanding productivity and collaboration tools.
Apart from the latest step, Google updated Google Docs with a purple underline feature, which provides users with suggestions for alternate word choice, active voice use, concise sentences, inclusive language and potential inappropriate words. With the help of this, Google is providing an improved writing experience to Google Docs users.
Additionally, Google updated Google Meet’s desktop experience in Chrome with picture-in-picture feature and multi-pinning skills to help presenters and attendees stay engaged in meetings.
All these endeavors are expected to continuously increase the demand for Google Workspace applications, which will likely to drive Alphabet’s top line in the near term.
Competitive Scenario
However, Alphabet faces intense competitive pressure from other major organizations like Microsoft MSFT and Apple AAPL, which also offer workspace tools, as well as productivity applications.
Microsoft, which has lost 28.1% in the year-to-date-period, offers powerful productivity and office tools to help users work, learn, organize and connect. Microsoft Outlook, consisting of webmail, calendaring, contacts and tasks services, helps users stay connected and productive anytime and anywhere. MSFT offers a video communication platform named Microsoft Teams with which users can schedule a meeting, a private appointment or vacations and update those in the calendar.
Apple moved down 25.5% in the same timeframe. AAPL’s iWork provides an office suite of applications for users to create word-processing documents, spreadsheets and presentations. Apple continuously updates iWork with new features to help users seamlessly work with documents.
Microsoft and Apple’s growing efforts toward work and productivity applications remain threats for Alphabet’s market position.
Shares of Alphabet have lost 38.5% in the year-to-date period, comparing unfavorably with the Computer and Technology sector’s decline of 35.8%.
Zacks Rank & Stock to Consider
Currently, Alphabet carries a Zacks Rank #4 (Sell).
A better-ranked stock in the broader Zacks Computer & Technology sector is Asure Software ASUR which sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Asure Software has gained 18.6% in the year-to-date period. The long-term earnings growth rate for ASUR is projected at 23%.
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
Asure Software Inc (ASUR) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Competitive Scenario However, Alphabet faces intense competitive pressure from other major organizations like Microsoft MSFT and Apple AAPL, which also offer workspace tools, as well as productivity applications. AAPL’s iWork provides an office suite of applications for users to create word-processing documents, spreadsheets and presentations. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Asure Software Inc (ASUR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Asure Software Inc (ASUR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Competitive Scenario However, Alphabet faces intense competitive pressure from other major organizations like Microsoft MSFT and Apple AAPL, which also offer workspace tools, as well as productivity applications. AAPL’s iWork provides an office suite of applications for users to create word-processing documents, spreadsheets and presentations.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Asure Software Inc (ASUR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Competitive Scenario However, Alphabet faces intense competitive pressure from other major organizations like Microsoft MSFT and Apple AAPL, which also offer workspace tools, as well as productivity applications. AAPL’s iWork provides an office suite of applications for users to create word-processing documents, spreadsheets and presentations.
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Competitive Scenario However, Alphabet faces intense competitive pressure from other major organizations like Microsoft MSFT and Apple AAPL, which also offer workspace tools, as well as productivity applications. AAPL’s iWork provides an office suite of applications for users to create word-processing documents, spreadsheets and presentations. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Asure Software Inc (ASUR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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17934.0
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2022-12-21 00:00:00 UTC
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Corporate China struggles with supply snags, demand slump as COVID cases spread
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AAPL
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https://www.nasdaq.com/articles/corporate-china-struggles-with-supply-snags-demand-slump-as-covid-cases-spread
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nan
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nan
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By Casey Hall, Martin Quin Pollard and Joe Cash
SHANGHAI/BEIJING, Dec 21 (Reuters) - As China's massive wave of COVID-19 infections begins its march across a country roughly the size of Europe, the ripple effect on business is accelerating.
From its original epicentre in the north, including the capital Beijing, COVID-19 infections are spreading throughout the country and cases are impeding workforces in manufacturing belts, including the Yangtze River Delta, near Shanghai.
Retail and financial services businesses have been hard hit by a shortage of staff, with manufacturers not far behind, according to an international business organisation operating in China.
"The retail and client facing sectors are in deep trouble. Obviously, they have limited staff that are available to work because of illness, so many of our large-scale retailers are not even opening their doors," said Noah Fraser, managing director at the Canada-China Business Council.
With mass testing halted after China abruptly dropped its zero-COVID policy this month, official data no longer reliably captures new case numbers. As of Wednesday, the country has reported only 5,241 COVID-19 fatalities since the pandemic began.
Some estimates, however, predict the wave currently sweeping the country could infect up to 60% of China's 1.4 billion-strong population.
"The case counts are starting to creep up outside of the big cities which, of course, means the virus is moving, and we're going to see further disruption down the line," Fraser said.
Even before COVID-19 infections began hampering companies in China, the world's second-largest economy was already depressed by its efforts to stamp out infections, as tight movement controls and repeated lockdowns hampered consumption and production.
China's factory output and retail sales clocked their worst readings in six months in November, prior to the lifting of the majority of COVID curbs at the start of December.
Retail sales fell 5.9% on year amid broad-based weakness in the services sector, while automobile production slumped 9.9%, swinging from an 8.6% gain in October.
LOGISTICS LOGJAM
Leading automobile chipmaker, Renesas Electronics Corp 6723.Tsuspended production at its Beijing plant last Friday due to COVID-19 infections, but said it would re-open Tuesday.
"In a couple of cases companies have shut down either totally their plants or have reduced some of the production," President of the European Union Chamber of Commerce in China Joerg Wuttke said.
China's "closed loop" system, where employees are isolated from the wider world, and which had been relied on by many factories in China throughout the zero-COVID era, was beginning to fall apart as infections creep into workforces, Wuttke added.
"You have to prepare your people to shut it down before they have this fever, which basically clouds their judgment if they are at the machinery, for example."
A senior executive at a large automotive manufacturer said keeping workers with specialist skills on the factory floor amid a surge in cases was just one of the issues they face.
"If the truck drivers have problems, then goods cannot be delivered to factories, the factories cannot move cars to the shops, and the whole industry chain is affected," he said.
A senior manager, working in the heavy duty truck sector, said dealers he spoke to were either already infected, or caring for sick family members.
"Basically, everything has stalled and you cannot make any actual business," he said. Both executives declined to be identified as they are not authorised to speak to media.
China's position as a key cog in the global supply chain, as well as a major driver of sales for many global consumer goods companies, means further hits to production output and consumer demand will be felt far beyond its borders.
Shanghai's extended lockdown in April and May caused disruption to the supply chains of multinationals including Apple AAPL.O, Tesla TSLA.O, Adidas ADSGn.DE and Estée Lauder EL.N.
For now, however, that impact is being limited in part by economic hardships elsewhere in the world denting demand for products from China.
"Reduced demand in the U.S. and Europe for consumer goods probably hides some of the impact," said Jonathan Chitayat, the Asia boss of Shanghai-based Genimex Group, a contract manufacturer for a range of consumer products.
Working in manufacturers' favour as an increasing percentage of the workforce are hit by infections in coming months is the Lunar New Year holiday, where many factories shut for at least a month as workers travel back to their home towns.
Even though the worst effects of the wave are still to emerge, some businesses in China remain relatively upbeat about the future, once the initial wave of infections subsides.
"Most of my clients are up to their eyeballs in debt right now, so all of them are gonna be out trying to entertain people and trying to push deals through," said Dillon King, co-founder of an import-based food and beverage company.
"I'm optimistic for this year coming up, but definitely feeling the pain of the last few weeks for sure."
(Reporting by Casey Hall in Shanghai, Joe Cash and Martin Quin Pollard in Beijing; Editing by Anne Marie Roantree and Jacqueline Wong)
((Joe.Cash@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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Shanghai's extended lockdown in April and May caused disruption to the supply chains of multinationals including Apple AAPL.O, Tesla TSLA.O, Adidas ADSGn.DE and Estée Lauder EL.N. By Casey Hall, Martin Quin Pollard and Joe Cash SHANGHAI/BEIJING, Dec 21 (Reuters) - As China's massive wave of COVID-19 infections begins its march across a country roughly the size of Europe, the ripple effect on business is accelerating. China's factory output and retail sales clocked their worst readings in six months in November, prior to the lifting of the majority of COVID curbs at the start of December.
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Shanghai's extended lockdown in April and May caused disruption to the supply chains of multinationals including Apple AAPL.O, Tesla TSLA.O, Adidas ADSGn.DE and Estée Lauder EL.N. By Casey Hall, Martin Quin Pollard and Joe Cash SHANGHAI/BEIJING, Dec 21 (Reuters) - As China's massive wave of COVID-19 infections begins its march across a country roughly the size of Europe, the ripple effect on business is accelerating. China's position as a key cog in the global supply chain, as well as a major driver of sales for many global consumer goods companies, means further hits to production output and consumer demand will be felt far beyond its borders.
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Shanghai's extended lockdown in April and May caused disruption to the supply chains of multinationals including Apple AAPL.O, Tesla TSLA.O, Adidas ADSGn.DE and Estée Lauder EL.N. Even before COVID-19 infections began hampering companies in China, the world's second-largest economy was already depressed by its efforts to stamp out infections, as tight movement controls and repeated lockdowns hampered consumption and production. China's "closed loop" system, where employees are isolated from the wider world, and which had been relied on by many factories in China throughout the zero-COVID era, was beginning to fall apart as infections creep into workforces, Wuttke added.
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Shanghai's extended lockdown in April and May caused disruption to the supply chains of multinationals including Apple AAPL.O, Tesla TSLA.O, Adidas ADSGn.DE and Estée Lauder EL.N. By Casey Hall, Martin Quin Pollard and Joe Cash SHANGHAI/BEIJING, Dec 21 (Reuters) - As China's massive wave of COVID-19 infections begins its march across a country roughly the size of Europe, the ripple effect on business is accelerating. Obviously, they have limited staff that are available to work because of illness, so many of our large-scale retailers are not even opening their doors," said Noah Fraser, managing director at the Canada-China Business Council.
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17935.0
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2022-12-21 00:00:00 UTC
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Apple (AAPL) Set to Shift Some MacBook Production to Vietnam
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-set-to-shift-some-macbook-production-to-vietnam
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nan
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nan
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Apple AAPL continues to diversify its production base for its devices to reduce dependence on China. Per the latest report from Nikkei Asia, the iPhone maker is set to produce part of its MacBooks in Vietnam beginning as early as May 2023.
Apple has been suffering from supply-chain issues along with restrictions in China due to the country’s zero-COVID policies that have disrupted production in Shanghai and Zhengzhou, Foxconn’s largest iPhone production plant.
In November, Apple warned of shipment delays of its premium iPhone 14 Pro and 14 Pro Max for the holiday season, citing pandemic-related labor shortages in Zhengzhou.
Vietnam, along with India, has evolved as the preferred production base for Apple devices. Vietnam already produces AirPods, some iPads and Apple Watch. Apple partner Foxconn has started manufacturing iPhone 14 in the Sriperumbudur facility near Chennai.
India is expected to become a major production hub for Apple by 2025. According to JP Morgan analysts, Apple will move 5% of global iPhone 14 production to India by late 2022 and will manufacture 25% of all iPhones in India by 2025.
Apple Inc. Price and Consensus
Apple Inc. price-consensus-chart | Apple Inc. Quote
With some MacBook production moving out to Vietnam, Apple will now have a second production base for all its devices along with China. The company is also expected to move some AirPods and Beats earphone production to India.
Apple shares have declined 25.5% year to date compared with the Zacks Computer & Technology sector’s fall of 35.9%.
Apple Mac Prospects Not so Bright in 2023
Apple’s Mac is expected to suffer from lower PC demand in 2023. However, Mac’s growth rate is expected to outperform market leaders Lenovo LNVGY, HP HPQ and Dell DELL, similar to third-quarter 2022.
Per IDC data, global shipments totaled 74.3 million units during the third quarter of 2022, down 15% due to sluggish demand and uneven supply. According to Gartner data, PC shipments were 68 million, down 19.5%.
However, both the IDC and the Gartner report highlighted that Apple gained market share compared with Lenovo, HP and Dell.
Per IDC, in the third quarter, Lenovo and HP both lost market share. Apple and Asus both gained market share. While Lenovo’s market share came down to 22.7% from 23.1% in the year-ago quarter, HP’s market share was 17.1% compared with the year-ago quarter’s 20.2%.
Meanwhile, Apple’s share increased from the year-ago quarter’s 8.2% to 13.5%. In terms of PC shipments, Apple gained 40.2% year over year, while Lenovo, HP and Dell were down 16.1%, 27.8% and 21.2%, respectively.
Per Gartner, Apple’s market share increased from the year-ago quarter’s 8.1% to 8.5%.
Apple reported Mac sales of $11.51 billion, up 25.4% from the year-ago quarter and accounted for 12.8% of total fiscal fourth-quarter sales. The figure beat the consensus mark by 27.73%.
For the first quarter of fiscal 2023, Apple expects Mac sales to be negatively impacted by forex. This Zacks Rank #3 (Hold) company expects Mac revenues to decline substantially year over year during the December quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
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Apple Inc. (AAPL) : Free Stock Analysis Report
HP Inc. (HPQ) : Free Stock Analysis Report
Dell Technologies Inc. (DELL) : Free Stock Analysis Report
Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL continues to diversify its production base for its devices to reduce dependence on China. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Per the latest report from Nikkei Asia, the iPhone maker is set to produce part of its MacBooks in Vietnam beginning as early as May 2023.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL continues to diversify its production base for its devices to reduce dependence on China. However, both the IDC and the Gartner report highlighted that Apple gained market share compared with Lenovo, HP and Dell.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL continues to diversify its production base for its devices to reduce dependence on China. Apple Inc. Price and Consensus Apple Inc. price-consensus-chart | Apple Inc. Quote With some MacBook production moving out to Vietnam, Apple will now have a second production base for all its devices along with China.
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Apple AAPL continues to diversify its production base for its devices to reduce dependence on China. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple Inc. Price and Consensus Apple Inc. price-consensus-chart | Apple Inc. Quote With some MacBook production moving out to Vietnam, Apple will now have a second production base for all its devices along with China.
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2022-12-21 00:00:00 UTC
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Wells Fargo Thinks This Media Company Could Surge 40% Next Year
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https://www.nasdaq.com/articles/wells-fargo-thinks-this-media-company-could-surge-40-next-year
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For many, holding on to a nice cash cushion or identifying potentially undervalued blue chip stocks are logical, and safe, investment strategies in times of economic trouble. Economists around the globe are looking into their crystal balls, with some calling for a recession, while others think we're approaching a market bottom.
As we approach the end of 2022, investors are beginning to look ahead to find inspiration for 2023. Over the last week, two Wall Street banks upgraded streaming platform Netflix (NASDAQ: NFLX). It is no secret that the company is battling intense competition from Disney, Apple, and Amazon. But it has a lot in store for 2023. Let's dig into the upcoming catalysts and analyze if now is an opportune time to buy the stock.
Content is king
Netflix's identity has changed significantly over the years. It was created to facilitate online DVD rentals in an effort to save customers the time and effort of going to a brick-and-mortar movie rental store.
Eventually, as content became digitized, Netflix became the home of high-profile and in-demand movies and television shows, hence spearheading the cord-cutting dynamic. However, due to the complexities of licensing agreements with distributors as well as other media outlets trying to compete, management needed to pivot its strategy toward something new: original content. Over the last several years, it has invested significant capital into developing its own original television series and movies.
Although Netflix has been developing content for several years now, 2022 has been jam-packed with popular hits across a variety of genres. For example, the science-fiction thriller Stranger Things made its debut in 2016. Its fourth season hit the streaming platform over the summer and broke several of the company's viewership records.
Netflix's fall lineup included two shows that were based on real-life events: Monster: The Jeffrey Dahmer Story as well as The Watcher. And as investors learned during the third quarterearnings call The Jeffrey Dahmer Story was another smash hit and ranks in the top five English-speaking original content shows all-time for the streaming company.
The company is supercharging its year-end lineup, with the original series Wednesday (based on The Addams Family), as well as a star-studded ensemble cast for Glass Onion, the long-anticipated mystery film and sequel to Knives Out.
Netflix gave Glass Onion a limited theatrical release, using a strategy where moviegoers spread word-of-mouth reviews, thereby enticing people to subscribe to Netflix and explore its library. This method only works if the content is good, of course. Judging by its 93% Rotten Tomato scores from both critics and audiences, Glass Onion appears to deliver the goods.
Image Source: Getty Images
Will the investments pay off?
While its original content may be grabbing the headlines, Netflix has several other catalysts in the pipeline. After years of dodging the inevitable, it has finally launched partnerships with advertisers. One of the main selling points for Netflix was that viewers could watch a television show or movie and bypass interruptions of previews and commercials. But in October, the streaming pioneer launched a lower-cost subscription plan that includes ads.
Another effort that Netflix has made a priority is curtailing password sharing. For years, it was lenient on subscribers sharing their accounts with friends and family. But some investors could argue that Netflix was deflating its reported subscriber base, and therefore missing out on additional revenue.
Now, management has stated that beginning next year, the company would begin charging additional fees to those who share their accounts. By doing so, Netflix now has the ability to raise prices for existing subscribers who share passwords, or gain new subscribers from those who leave a shared account and create their own paid subscription.
The combination of engaging original content, a new lower-cost ad tier, and a crackdown on password sharing should help provide new revenue streams for Netflix. More importantly, the recurring revenue that results from new subscribers can help generate meaningful cash flow, which it can use to reinvest into the business and continue differentiating itself from the competition.
Keep an eye on valuation
Over the last week, both Wells Fargo and Cowen (NASDAQ: COWN) raised their respective price targets for Netflix stock. Cowen raised it from $340 to $405, whereas Wells Fargo increased it from $300 to $400. Given that the stock currently trades at $290 per share, both of these price targets imply 40% upside.
It's important to note that by doubling down on original content, as well as identifying new areas to generate revenue growth in the form of advertising and eliminating password sharing, Netflix is doing all that it can to move past the intense competition.
For example, While Disney's streaming service has garnered widespread popularity, it has come at a steep cost. Wall Street has taken notice of these mounting losses, and some investors are beginning to look elsewhere. Shannon Saccocia, chief investment officer of SVB Private, recently said during an interview on CNBC that she has exited her position in Disney stock, citing strains on free cash flow and an unclear path to profitability.
By comparison, as shown in its third-quarter results, Netflix has managed to generate consistent profits. For that quarter, ended Sept. 30, it reported net income of $1.4 billion, and $4.4 billion for the first nine months of 2022. Operating losses in Disney's streaming service more than doubled year over year to $1.5 billion for the quarter ended Oct. 1.
Although Netflix has a lot to prove in 2023, the company's consistent profitability, coupled with new revenue levers and growing original content, give Wall Street several reasons to be bullish on the stock. Now could be a great time to lower your cost basis or start a position from scratch.
10 stocks we like better than Netflix
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Netflix 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
Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Adam Spatacco has positions in Amazon.com and Apple. The Motley Fool has positions in and recommends Amazon.com, Apple, Netflix, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company is supercharging its year-end lineup, with the original series Wednesday (based on The Addams Family), as well as a star-studded ensemble cast for Glass Onion, the long-anticipated mystery film and sequel to Knives Out. It's important to note that by doubling down on original content, as well as identifying new areas to generate revenue growth in the form of advertising and eliminating password sharing, Netflix is doing all that it can to move past the intense competition. Shannon Saccocia, chief investment officer of SVB Private, recently said during an interview on CNBC that she has exited her position in Disney stock, citing strains on free cash flow and an unclear path to profitability.
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Keep an eye on valuation Over the last week, both Wells Fargo and Cowen (NASDAQ: COWN) raised their respective price targets for Netflix stock. Operating losses in Disney's streaming service more than doubled year over year to $1.5 billion for the quarter ended Oct. 1. 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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It's important to note that by doubling down on original content, as well as identifying new areas to generate revenue growth in the form of advertising and eliminating password sharing, Netflix is doing all that it can to move past the intense competition. Although Netflix has a lot to prove in 2023, the company's consistent profitability, coupled with new revenue levers and growing original content, give Wall Street several reasons to be bullish on the stock. 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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Over the last several years, it has invested significant capital into developing its own original television series and movies. Operating losses in Disney's streaming service more than doubled year over year to $1.5 billion for the quarter ended Oct. 1. The Motley Fool has positions in and recommends Amazon.com, Apple, Netflix, and Walt Disney.
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17937.0
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2022-12-21 00:00:00 UTC
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German cartel office ends proceedings against Google News Showcase
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https://www.nasdaq.com/articles/german-cartel-office-ends-proceedings-against-google-news-showcase
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BERLIN, Dec 21 (Reuters) - Germany's cartel office has concluded proceedings against Google GOOGL.O over its online news service after the tech giant made several changes benefiting publishers, the office said on Wednesday.
The office said Google had abandoned plans to integrate the Google News Showcase into general searches and changed its contractual practice to make sure publishers do not face difficulties in asserting their ancillary copyright in response to its concerns.
A publisher's participation in the News Showcase will continue not to affect search results, added the office.
The cartel office said Google would implement further measures in the coming weeks, including providing more information about Showcase, and that it would continue to monitor this development.
Under expanded powers that entered into force last year, the cartel office has taken up cases involving several tech giants, including Amazon AMZN.O, Apple AAPL.O and Facebook owner Meta FB.O.
(Reporting by Miranda Murray Editing by Mark Potter)
((miranda.murray@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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Under expanded powers that entered into force last year, the cartel office has taken up cases involving several tech giants, including Amazon AMZN.O, Apple AAPL.O and Facebook owner Meta FB.O. A publisher's participation in the News Showcase will continue not to affect search results, added the office. The cartel office said Google would implement further measures in the coming weeks, including providing more information about Showcase, and that it would continue to monitor this development.
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Under expanded powers that entered into force last year, the cartel office has taken up cases involving several tech giants, including Amazon AMZN.O, Apple AAPL.O and Facebook owner Meta FB.O. The office said Google had abandoned plans to integrate the Google News Showcase into general searches and changed its contractual practice to make sure publishers do not face difficulties in asserting their ancillary copyright in response to its concerns. A publisher's participation in the News Showcase will continue not to affect search results, added the office.
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Under expanded powers that entered into force last year, the cartel office has taken up cases involving several tech giants, including Amazon AMZN.O, Apple AAPL.O and Facebook owner Meta FB.O. BERLIN, Dec 21 (Reuters) - Germany's cartel office has concluded proceedings against Google GOOGL.O over its online news service after the tech giant made several changes benefiting publishers, the office said on Wednesday. The office said Google had abandoned plans to integrate the Google News Showcase into general searches and changed its contractual practice to make sure publishers do not face difficulties in asserting their ancillary copyright in response to its concerns.
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Under expanded powers that entered into force last year, the cartel office has taken up cases involving several tech giants, including Amazon AMZN.O, Apple AAPL.O and Facebook owner Meta FB.O. BERLIN, Dec 21 (Reuters) - Germany's cartel office has concluded proceedings against Google GOOGL.O over its online news service after the tech giant made several changes benefiting publishers, the office said on Wednesday. The office said Google had abandoned plans to integrate the Google News Showcase into general searches and changed its contractual practice to make sure publishers do not face difficulties in asserting their ancillary copyright in response to its concerns.
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17938.0
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2022-12-21 00:00:00 UTC
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Apple Stock: Bull vs. Bear
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https://www.nasdaq.com/articles/apple-stock%3A-bull-vs.-bear-1
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For much of the past two decades, Apple (NASDAQ: AAPL) has been a star not just in the business world, but in the stock market as well.
The company dominates consumer tech hardware. It has the largest market cap of any U.S. company, and it even counts Warren Buffett as one of its biggest fans.
However, while Apple may have an admirable track record, that doesn't necessarily mean its future is equally bright. Is Apple stock a buy today? Keep reading as two Motley Fool contributors discuss the bull and bear cases for the tech giant.
Image source: Apple.
The numbers speak for themselves
Parkev Tatevosian (Bull case): My bull case for Apple starts with its demonstrated ability to repeatedly create innovative tech hardware that consumers willingly pay premium prices to buy. The iPhone is arguably one of the most significant consumer products in the world (as measured by dollars spent). Notable products like the iPod, the iMac, and more preceded the legendary smartphone. Since the iPhone, Apple's produced sought-after devices like the iPad, Apple Watch, Airpods, and more. Most importantly, millions of people pay premium prices for each of the aforementioned, leaving excellent profit margins for Apple and its shareholders.
Between 2013 and 2022, Apple's annual sales soared from $171 billion to $394 billion. Considering the diverse and large markets in which Apple sells products, it is not likely to hit the ceiling on sales anytime soon despite its already massive scale. The pricing power that Apple earned over decades of improving the customer experience allowed it to average an operating profit margin of 28.3% in that time.
Admittedly, these are all backward-looking figures, but Apple's highly connected ecosystem makes it less likely for customers to switch to a competitor's product. In other words, many of yesterday's customers will likely stick with Apple longer-term.
AAPL data by YCharts
The bear market in 2022 brought Apple's stock down meaningfully. Today's investors can buy Apple stock at a price-to-earnings and price-to-free cash flow of 21.7 and 19.4, respectively. This is a relatively fair price to pay for an excellent business. Investors will do well in building wealth if they can buy great companies at reasonable prices.
What have you done for me lately?
Jeremy Bowman (Bear case): It's hard to question Apple's bona fides, as the company is one of the biggest in the world, and generates huge margins. But stocks are generally valued based on future cash flows, and Apple's may not be as strong as the market seems to think.
In Apple's most recent quarter, revenue was up 8%, and earnings per share grew just 4%. According to Wall Street, this is not the growth stock that some might like to think it is. Apple didn't give specific guidance in its most recent earnings report, but the company said it expected revenue to slow sequentially in the current quarter due to the macroeconomic environment, a 10-percentage-point headwind from currency exchange, and difficult comparisons in the Mac segment.
Wall Street, meanwhile, expects revenue growth of just 2.7% in the current fiscal year, and even slower growth in earnings per share. In fiscal 2024, it only expects top and bottom line growth to improve slightly.
Apple has built a dominant consumer franchise, but there are also real risks to the company as rivals push forward with the next computing platform. Meta Platforms, for example, will spend close to $20 billion next year to make its visions of the metaverse a reality, and other companies like Nvidia and Microsoft are pushing past the mobile computing era as well.
Apple still gets more than half of its revenue from the iPhone, which it first introduced 15 years ago. And while the company has had success in raising prices on its trademark smartphone, it's bound to reach a limit in what people are willing to pay, especially with a global recession potentially around the corner. The law of large numbers will eventually catch up to it, and it will run out of new customers to convert.
Finally, Apple's services segment, which is underpinned by its App Store, is facing more legal challenges as companies balk at its 30% commission fee. We could see a reckoning in the App Store model over the coming years.
Overall, Apple's strengths as a business are self-evident, but investors can find better growth at this valuation elsewhere.
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
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. Jeremy Bowman has positions in Meta Platforms. Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple, Meta Platforms, 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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For much of the past two decades, Apple (NASDAQ: AAPL) has been a star not just in the business world, but in the stock market as well. AAPL data by YCharts The bear market in 2022 brought Apple's stock down meaningfully. Apple didn't give specific guidance in its most recent earnings report, but the company said it expected revenue to slow sequentially in the current quarter due to the macroeconomic environment, a 10-percentage-point headwind from currency exchange, and difficult comparisons in the Mac segment.
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For much of the past two decades, Apple (NASDAQ: AAPL) has been a star not just in the business world, but in the stock market as well. AAPL data by YCharts The bear market in 2022 brought Apple's stock down meaningfully. The company dominates consumer tech hardware.
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For much of the past two decades, Apple (NASDAQ: AAPL) has been a star not just in the business world, but in the stock market as well. AAPL data by YCharts The bear market in 2022 brought Apple's stock down meaningfully. The numbers speak for themselves Parkev Tatevosian (Bull case): My bull case for Apple starts with its demonstrated ability to repeatedly create innovative tech hardware that consumers willingly pay premium prices to buy.
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For much of the past two decades, Apple (NASDAQ: AAPL) has been a star not just in the business world, but in the stock market as well. AAPL data by YCharts The bear market in 2022 brought Apple's stock down meaningfully. Apple still gets more than half of its revenue from the iPhone, which it first introduced 15 years ago.
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17939.0
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2022-12-21 00:00:00 UTC
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Netflix's (NFLX) Ad-Supported Tier Not So Popular With Users
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https://www.nasdaq.com/articles/netflixs-nflx-ad-supported-tier-not-so-popular-with-users
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Netflix’s NFLX ad-supported tier has failed to ignite user interest per the latest data from subscription analytics firm Antenna, cited by The Wall Street Journal.
The ad-supported plan accounted for only 9% of new Netflix sign-ups in the United States during November. Netflix launched its ad-supported service on Nov 3 with the basic plan costing $6.99 a month in the country.
Per Antenna, 57% of subscribers either re-joined Netflix or signed up for the first time, while 43% downgraded from higher-priced plans. Moreover, by the end of November, 0.2% of subscribers in the United States were on Netflix’s ad-supported plan.
Netflix Suffers From Waning Interest
Netflix shares declined 52.2% year to date compared with the Zacks Consumer Discretionary sector’s fall of 37.5%.
Netflix’s ad-supported plans are expected to help it win customers amid growing competition in a saturated streaming market with services from Disney DIS, Comcast CMCSA and Apple AAPL.
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
In third-quarter 2022, Netflix gained 2.41 million paid subscribers globally, higher than its estimate of gaining one million users. Netflix added 4.38 million paid subscribers in the year-ago quarter. At the end of the third quarter, Netflix had 223.09 million paid subscribers globally.
Netflix currently expects to gain 4.5 million paid subscribers in fourth-quarter 2022.
However, stiff competition is expected to hurt this Zacks Rank #3 (Hold) company’s prospects. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Disney followed the footsteps of Netflix to offer its ad-supported tier starting Dec 8, 2022. The company’s streaming service Disney+, as of Oct 1, 2022, had 164.2 million paid subscribers compared with 118.1 million as of Oct 2, 2021.
Apple’s streaming service, Apple TV+, continues to gain recognition with its critically acclaimed and popular shows like Ted Lasso.
Comcast’s Peacock also offers a free-to-watch tier with ad support that has about 40,000 hours of content. Peacock is well poised to grow, owing to its vast library of IPs and new productions.
Nevertheless, Netflix is expected to continue dominating the streaming space, courtesy of its diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized, foreign-language content.
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
Comcast Corporation (CMCSA) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
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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Netflix’s ad-supported plans are expected to help it win customers amid growing competition in a saturated streaming market with services from Disney DIS, Comcast CMCSA and Apple AAPL. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Comcast Corporation (CMCSA) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Netflix’s NFLX ad-supported tier has failed to ignite user interest per the latest data from subscription analytics firm Antenna, cited by The Wall Street Journal.
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Netflix’s ad-supported plans are expected to help it win customers amid growing competition in a saturated streaming market with services from Disney DIS, Comcast CMCSA and Apple AAPL. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Comcast Corporation (CMCSA) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote In third-quarter 2022, Netflix gained 2.41 million paid subscribers globally, higher than its estimate of gaining one million users.
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Netflix’s ad-supported plans are expected to help it win customers amid growing competition in a saturated streaming market with services from Disney DIS, Comcast CMCSA and Apple AAPL. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Comcast Corporation (CMCSA) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote In third-quarter 2022, Netflix gained 2.41 million paid subscribers globally, higher than its estimate of gaining one million users.
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Netflix’s ad-supported plans are expected to help it win customers amid growing competition in a saturated streaming market with services from Disney DIS, Comcast CMCSA and Apple AAPL. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Comcast Corporation (CMCSA) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Comcast’s Peacock also offers a free-to-watch tier with ad support that has about 40,000 hours of content.
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2022-12-21 00:00:00 UTC
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Meta Platforms (META) Facing Legal Issues From EU Commission
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https://www.nasdaq.com/articles/meta-platforms-meta-facing-legal-issues-from-eu-commission
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Meta Platforms META recently got a warning from the European Commission for breaching the European Union's (“EU”) antitrust laws over its online classified advertising practices on the Facebook Marketplace.
The EU is blaming Meta Platforms for distorting competition in the Facebook marketplace for online classified advertisements. The EU is investigating further and is considering imposing a fine of 10% of the company's global annual revenues. This would negatively impact the company’s already failing top line even further.
This is not the first time META has faced the EU in a legal tussle. Its social media platforms are facing legal issues from global authorities due to the lack of user data protection and misuse of data. In September 2022, Instagram was slapped with a €405 million fine by Ireland’s data regulators for violating the EU’s General Data Protection Regulation and failing to protect children’s information.
META, along with its other social media peer Snap SNAP, is facing backlash from users due to child protection issues on the social networking platform.
Snap’s Snapchat platform announced new parental controls for its platform early this year to limit friend suggestions for teen users and protect them from unwanted attention.
Snapchat’s recent initiatives come following allegations that the company has been failing to prevent drug-related content from proliferating its chatting platforms, specifically among its users aged below 18.
The legal issues have cost Meta Platforms a lot of capital amid a volatile macroeconomic situation, further reducing the company’s top-line growth in the last reported quarters of 2022.
Meta Platforms, Inc. Price and Consensus
Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote
Revenues from Family of Apps (99% of total revenues) in the third quarter, which includes Facebook, Instagram, Messenger, WhatsApp and other services, decreased 3.6% year over year to $27.43 billion.
This is due to a decline in its advertisement revenues, representing 99.3% of Family of Apps revenues. In the third quarter, advertising revenues decreased 3.7% year over year to $27.24 billion and accounted for 98.3% of total revenues. The Family of Apps is the primary source of funding for META’s lofty metaverse dream, upon which the company is banking its future.
Meta Platforms is facing the worst downturn in its operational history. Its ad revenue business is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes.
Apple’s iOS changes have made ad targeting difficult, which has increased the cost of driving outcomes. However, measuring these outcomes is tough.
However, in order to deal with child protection and user data protection issues, META has been investing heavily in AI to attract more users to the platform and increase top-line growth to meet its future goals of creating the metaverse upon which the company is banking its future.
Meta Platforms Investing in AI to Boost Prospects
META, which currently carries a Zacks Rank #3 (Hold), is banking on its revenue growth on solid return on investments from its investment in AI and ML and strategic partnerships. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Meta Platforms is launching features like protections against malicious links in Facebook messenger and Instagram direct messages using automated systems, Instagram impostor alerts and increased Instagram verified badge specialty.
META also announced the introduction of age verification technology to Facebook Dating in the United States to prevent users under the age of 18 from accessing experiences meant to be enjoyed as adults.
However, building the metaverse is a collective effort. As such, Meta Platforms is making strategic partnerships with PyTorch co-founder Microsoft MSFT to develop and architect the required AI models for the metaverse.
Microsoft is bringing new work and productivity tools to Meta Quest Pro and Meta Quest 2 next year. These include apps like Microsoft Windows 365 and Microsoft Teams and the ability to join a Teams meeting from inside Meta Horizons Workrooms, which will help create a seamless working experience in the metaverse.
Meta Platforms’ recent investments to launch features to protect user data will likely boost user confidence amid stiff competition.
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
Snap Inc. (SNAP) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Its ad revenue business is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Snap Inc. (SNAP) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Snapchat’s recent initiatives come following allegations that the company has been failing to prevent drug-related content from proliferating its chatting platforms, specifically among its users aged below 18.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Snap Inc. (SNAP) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Its ad revenue business is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Meta Platforms, Inc. Price and Consensus Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote Revenues from Family of Apps (99% of total revenues) in the third quarter, which includes Facebook, Instagram, Messenger, WhatsApp and other services, decreased 3.6% year over year to $27.43 billion.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Snap Inc. (SNAP) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Its ad revenue business is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Meta Platforms, Inc. Price and Consensus Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote Revenues from Family of Apps (99% of total revenues) in the third quarter, which includes Facebook, Instagram, Messenger, WhatsApp and other services, decreased 3.6% year over year to $27.43 billion.
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Its ad revenue business is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Snap Inc. (SNAP) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. This is not the first time META has faced the EU in a legal tussle.
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17941.0
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2022-12-20 00:00:00 UTC
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1 Top Stock to Buy for 2023 and Beyond
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AAPL
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https://www.nasdaq.com/articles/1-top-stock-to-buy-for-2023-and-beyond
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nan
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nan
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With Apple (NASDAQ: AAPL) shares pulling back more than 12% over the past 30 days as of this writing, now is a good time to take a closer look at the stock. Many investors are probably wondering: Is this decline a sign of a poor investment, or is this a buying opportunity?
A closer look at the tech company and its stock's valuation reveals that shares are priced attractively after a sharp pullback. Here's why investors may want to consider buying some shares of the tech stock while they're trading at this level.
Why are shares down?
First, it's always helpful to know why shares are trading lower. The stock's recent retreat seems to be driven by two main factors: macroeconomic uncertainty that has weighed on the overall stock market and a recent statement from Apple saying that COVID-19-related government restrictions in China have pressured iPhone 14 Pro and iPhone 14 Pro Max shipments.
Capturing weakness in the overall market, the S&P 500 has slid more than 3% over the last 30 days as Wall Street considers the probability and duration of a recessionary environment amid inflation and rising interest rates.
Regarding the situation in China, Apple said in a Nov. 6 press release that "COVID-19 restrictions have temporarily impacted the primary iPhone 14 Pro and iPhone 14 Pro Max assembly facility located in Zhengzhou, China." This led to the factory operating at a "significantly reduced capacity" and ultimately led management to lower its forecast for iPhone 14 Pro and iPhone 14 Pro Max shipments.
Investors should zoom out
While Apple could see a year-over-year sales decline during its important holiday quarter due to some of China's recent challenges, these issues are likely only temporary problems. The same thing can be said about the current macroeconomic environment. Historically, periods of economic growth, stagnation, and contraction come in waves. While the current environment may be one of contraction, this doesn't rule out a period of growth or even an economic boom in the years ahead. Investors who buy the right stocks opportunistically during times of pessimism could be rewarded handsomely during such a time.
An attractive valuation
The best reason to buy Apple stock is also the simplest. Trading at less than 22 times earnings at the time of this writing, the stock's valuation is attractive relative to the underlying business fundamentals. As a cash cow, Apple has generated more than $111 billion of free cash flow from less than $400 billion of revenue for the trailing 12-month period ended Sep. 24, 2022.
Further, management has historically been a great steward of its cash flow. In addition to paying a quarterly dividend that has consistently increased on an annual basis since it was initiated in 2012, the company has bought back more than $550 billion worth of stock at an average price of $47 since it started its repurchase program in the same year.
All of this to say, even if revenue growth stalls for Apple in the interim, management will likely continue judiciously deploying capital to create meaningful shareholder value.
Overall, the stock looks extremely attractive at this price -- especially if history is any guide to the future and we do eventually return to a period of economic growth.
10 stocks we like better than Apple
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*Stock Advisor returns as of December 1, 2022
Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With Apple (NASDAQ: AAPL) shares pulling back more than 12% over the past 30 days as of this writing, now is a good time to take a closer look at the stock. Capturing weakness in the overall market, the S&P 500 has slid more than 3% over the last 30 days as Wall Street considers the probability and duration of a recessionary environment amid inflation and rising interest rates. Investors should zoom out While Apple could see a year-over-year sales decline during its important holiday quarter due to some of China's recent challenges, these issues are likely only temporary problems.
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With Apple (NASDAQ: AAPL) shares pulling back more than 12% over the past 30 days as of this writing, now is a good time to take a closer look at the stock. A closer look at the tech company and its stock's valuation reveals that shares are priced attractively after a sharp pullback. The stock's recent retreat seems to be driven by two main factors: macroeconomic uncertainty that has weighed on the overall stock market and a recent statement from Apple saying that COVID-19-related government restrictions in China have pressured iPhone 14 Pro and iPhone 14 Pro Max shipments.
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With Apple (NASDAQ: AAPL) shares pulling back more than 12% over the past 30 days as of this writing, now is a good time to take a closer look at the stock. The stock's recent retreat seems to be driven by two main factors: macroeconomic uncertainty that has weighed on the overall stock market and a recent statement from Apple saying that COVID-19-related government restrictions in China have pressured iPhone 14 Pro and iPhone 14 Pro Max shipments. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Daniel Sparks has no position in any of the stocks mentioned.
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With Apple (NASDAQ: AAPL) shares pulling back more than 12% over the past 30 days as of this writing, now is a good time to take a closer look at the stock. A closer look at the tech company and its stock's valuation reveals that shares are priced attractively after a sharp pullback. Here's why investors may want to consider buying some shares of the tech stock while they're trading at this level.
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17942.0
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2022-12-20 00:00:00 UTC
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Apple (AAPL) vs. Microsoft (MSFT): Which stock is the Better Buy for 2023?
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-vs.-microsoft-msft%3A-which-stock-is-the-better-buy-for-2023
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nan
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nan
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Investing in technology stocks will take patience and higher risk tolerance at the moment but the sector’s broader 2022 decline may present great long-term buying opportunities.
Apple AAPL and Microsoft MSFT, in particular, draw a lot of interest as historically dominant tech companies whose stocks could soar whenever inflationary and recessionary concerns are behind us and interest rates stop climbing.
It will take some time for these risks to subside, but buying AAPL or MSFT stock as we head into 2023 is a worthy conversation.
Recent Developments
Despite beating earnings estimates in four consecutive quarters, Apple stock is now trading near its 52-week lows seen in June. Still, Apple stock has held up better than other big tech peers like Meta Platforms META and Amazon AMZN this year.
With that being said, as we can see from the nearby chart AAPL’s fiscal fourth-quarter report in October has been a weak period of the year in terms of beating iPhone revenue expectations. This could be compounded by its current fiscal first quarter iPhone production being affected by shutdowns in Foxconn’s Shenzhen City, China Factory.
Image Source: Zacks Investment Research
Foxconn is Apple’s largest iPhone maker and this has led to short-term weakness in the stock as it comes at a critical time during the holiday season. iPhone production is thought to have dropped 30% after Foxconn workers in Shenzhen fled the facility in late October due to Covid-19 outbreaks. Foxconn expects the facility to resume full production in late December or early January and is working to boost production at a nearby facility.
As for Microsoft, MSFT shares have bounced back nicely after reaching a low of $213.43 a share on November 4th as shown in the chart below. Like Apple, Microsoft stock has also held up better than the likes of Amazon and Meta Platforms. In regards to the latter, Microsoft has made its push into the metaverse as well. Microsoft’s planned acquisition of Activision Blizzard ATVI will help accelerate the growth of its gaming business and provide building blocks for the metaverse.
Image Source: Zacks Investment Research
However, an antitrust lawsuit was filed in early December by the Federal Trade Commission to block the Activision Blizzard acquisition, which was expected to be completed in June of 2023. Microsoft will of course fight the lawsuit.
Performance & Valuation
Apple is now down -26% year to date Vs. Microsoft’s -28%. Both APPL and MSFT have outperformed the Nasdaq’s -32% YTD performance but lagged the S&P 500’s -21%. Still, over the last decade, Microsoft and Apple’s total return including dividends has crushed the broader indexes, with MSFT having the edge at +970%.
Image Source: Zacks Investment Research
Trading around $242 per share and roughly 30% from its highs, MSFT has a forward P/E of 25.2X. In comparison, AAPL is 27% from its high and trades at $132 a share and 21.3X forward earnings.
Both stocks are starting to trade attractively relative to their past. Microsoft’s stock trades 33% below its decade high of 37.4X and only 6% above its decade median of 23.7X. When comparing this period, AAPL is 44% off its decade-high of 38.6X but still 36% above its median of 15.6X.
Image Source: Zacks Investment Research
Growth & Outlook
Microsoft earnings are now projected to be up 3% in its current fiscal 2023 and climb another 14% in FY24 at $10.92 per share. It is important to note that earnings estimate revisions have trended down for both FY23 and FY24 over the last 90 days.
Image Source: Zacks Investment Research
On the top line, Microsoft’s sales are anticipated to rise 7% in FY23 and jump 13% in FY24 to $239.40 billion. FY24 would represent a 90% increase from pre-pandemic levels with 2019 sales at $125.84 billion. This is especially impressive for a mature company of Microsoft’s size.
Pivoting to Apple, earnings are expected to rise 1% in its current fiscal 2023 and jump 8% in FY24 at $6.70 a share. Earnings estimates have also trended lower for Apple’s FY23 and FY24 over the last quarter.
Image Source: Zacks Investment Research
Sales are forecasted to be up 2% in FY23 and rise another 6% in FY24 at $427.22 billion. FY24 would represent 64% growth from pre-pandemic levels with 2019 sales at $260.17 billion.
Dividends
Microsoft’s stock appears to be sticking out to this point, and in regard to portfolio income, the trend continues with MSFT’s 1.13% annual dividend yield topping Apple’s 0.70%.
Image Source: Zacks Investment Research
Bottom Line
Apple (AAPL) and Microsoft (MSFT) stock both currently land a Zacks Rank #3 (Hold). Although more short-term weaknesses may be ahead for both companies they are starting to look attractive at their current levels. Microsoft especially stands out from a valuation standpoint. But with these being two unique tech firms and two of the biggest companies on the planet, holding on to or buying both stocks could be rewarding going into 2023.
From a historical performance perspective, holding on to shares of Apple and Microsoft also makes sense after this year’s drop. There might be better buying opportunities ahead but both AAPL and MSFT have crushed the return of broader indexes over the last decade and this could continue considering their long-term growth is still intact.
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
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL and Microsoft MSFT, in particular, draw a lot of interest as historically dominant tech companies whose stocks could soar whenever inflationary and recessionary concerns are behind us and interest rates stop climbing. It will take some time for these risks to subside, but buying AAPL or MSFT stock as we head into 2023 is a worthy conversation. With that being said, as we can see from the nearby chart AAPL’s fiscal fourth-quarter report in October has been a weak period of the year in terms of beating iPhone revenue expectations.
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Image Source: Zacks Investment Research Bottom Line Apple (AAPL) and Microsoft (MSFT) stock both currently land a Zacks Rank #3 (Hold). Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL and Microsoft MSFT, in particular, draw a lot of interest as historically dominant tech companies whose stocks could soar whenever inflationary and recessionary concerns are behind us and interest rates stop climbing.
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Image Source: Zacks Investment Research Bottom Line Apple (AAPL) and Microsoft (MSFT) stock both currently land a Zacks Rank #3 (Hold). Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL and Microsoft MSFT, in particular, draw a lot of interest as historically dominant tech companies whose stocks could soar whenever inflationary and recessionary concerns are behind us and interest rates stop climbing.
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Apple AAPL and Microsoft MSFT, in particular, draw a lot of interest as historically dominant tech companies whose stocks could soar whenever inflationary and recessionary concerns are behind us and interest rates stop climbing. It will take some time for these risks to subside, but buying AAPL or MSFT stock as we head into 2023 is a worthy conversation. With that being said, as we can see from the nearby chart AAPL’s fiscal fourth-quarter report in October has been a weak period of the year in terms of beating iPhone revenue expectations.
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17943.0
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2022-12-20 00:00:00 UTC
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Apple (AAPL) Stock Sinks As Market Gains: What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-stock-sinks-as-market-gains%3A-what-you-should-know-1
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nan
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nan
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Apple (AAPL) closed the most recent trading day at $132.30, moving -0.05% from the previous trading session. This move lagged the S&P 500's daily gain of 0.1%. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq lost 0.09%.
Prior to today's trading, shares of the maker of iPhones, iPads and other products had lost 10.57% over the past month. This has lagged the Computer and Technology sector's loss of 5.51% and the S&P 500's loss of 3.6% in that time.
Wall Street will be looking for positivity from Apple as it approaches its next earnings report date. On that day, Apple is projected to report earnings of $1.94 per share, which would represent a year-over-year decline of 7.62%. Our most recent consensus estimate is calling for quarterly revenue of $121.22 billion, down 2.2% from the year-ago period.
AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.19 per share and revenue of $404.04 billion. These results would represent year-over-year changes of +1.31% and +2.46%, respectively.
Investors should also note any recent changes to analyst estimates for Apple. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.06% lower. Apple currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Apple currently has a Forward P/E ratio of 21.38. For comparison, its industry has an average Forward P/E of 7.94, which means Apple is trading at a premium to the group.
Also, we should mention that AAPL has a PEG ratio of 1.71. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer - Mini computers industry currently had an average PEG ratio of 2.31 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 188, which puts it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Zacks Top 10 Stocks for 2023
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2023? From inception in 2012 through November, the Zacks Top 10 Stocks portfolio has tripled the market, gaining an impressive +884.5% versus the S&P 500’s +287.4%.
Now our Director of Research is combing through 4,000 companies covered by the Zacks Rank to handpick the best 10 tickers to buy and hold. Don’t miss your chance to get in on these stocks when they’re released on January 3.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
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 $132.30, moving -0.05% from the previous trading session. AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.19 per share and revenue of $404.04 billion. Also, we should mention that AAPL has a PEG ratio of 1.71.
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AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.19 per share and revenue of $404.04 billion. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple (AAPL) closed the most recent trading day at $132.30, moving -0.05% from the previous trading session.
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AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.19 per share and revenue of $404.04 billion. Apple (AAPL) closed the most recent trading day at $132.30, moving -0.05% from the previous trading session. Also, we should mention that AAPL has a PEG ratio of 1.71.
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Apple (AAPL) closed the most recent trading day at $132.30, moving -0.05% from the previous trading session. AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.19 per share and revenue of $404.04 billion. Also, we should mention that AAPL has a PEG ratio of 1.71.
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17944.0
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2022-12-20 00:00:00 UTC
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After Hours Most Active for Dec 20, 2022 : CMCSA, AMZN, BAC, TAL, AUY, DHT, NKE, CSCO, EDU, TCOM, AAPL, IOVA
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-dec-20-2022-%3A-cmcsa-amzn-bac-tal-auy-dht-nke-csco-edu-tcom
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nan
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nan
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The NASDAQ 100 After Hours Indicator is up 4.91 to 11,077.34. The total After hours volume is currently 117,632,686 shares traded.
The following are the most active stocks for the after hours session:
Comcast Corporation (CMCSA) is unchanged at $34.41, with 7,561,973 shares traded. CMCSA's current last sale is 77.33% of the target price of $44.5.
Amazon.com, Inc. (AMZN) is +0.11 at $85.30, with 4,166,380 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Bank of America Corporation (BAC) is +0.02 at $32.21, with 2,611,478 shares traded. As reported by Zacks, the current mean recommendation for BAC is in the "buy range".
TAL Education Group (TAL) is +0.02 at $9.23, with 2,488,782 shares traded., following a 52-week high recorded in today's regular session.
Yamana Gold Inc. (AUY) is unchanged at $5.60, with 2,463,068 shares traded. As reported by Zacks, the current mean recommendation for AUY is in the "buy range".
DHT Holdings, Inc. (DHT) is unchanged at $9.21, with 2,387,590 shares traded. As reported by Zacks, the current mean recommendation for DHT is in the "strong buy range".
Nike, Inc. (NKE) is +5.53 at $108.74, with 2,359,071 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Feb 2023. The consensus EPS forecast is $0.67. As reported by Zacks, the current mean recommendation for NKE is in the "buy range".
Cisco Systems, Inc. (CSCO) is +0.06 at $47.43, with 2,292,897 shares traded. CSCO's current last sale is 91.21% of the target price of $52.
New Oriental Education & Technology Group, Inc. (EDU) is +0.01 at $37.91, with 2,149,134 shares traded., following a 52-week high recorded in today's regular session.
Trip.com Group Limited (TCOM) is unchanged at $34.50, with 2,135,639 shares traded. As reported by Zacks, the current mean recommendation for TCOM is in the "buy range".
Apple Inc. (AAPL) is +0.05 at $132.35, with 2,100,258 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Iovance Biotherapeutics, Inc. (IOVA) is unchanged at $6.10, with 1,599,610 shares traded. As reported by Zacks, the current mean recommendation for IOVA 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 +0.05 at $132.35, with 2,100,258 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 DHT is in the "strong buy range".
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Apple Inc. (AAPL) is +0.05 at $132.35, with 2,100,258 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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Apple Inc. (AAPL) is +0.05 at $132.35, with 2,100,258 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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Apple Inc. (AAPL) is +0.05 at $132.35, with 2,100,258 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Comcast Corporation (CMCSA) is unchanged at $34.41, with 7,561,973 shares traded.
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17945.0
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2022-12-20 00:00:00 UTC
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Dow Movers: HD, TRV
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-hd-trv
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nan
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nan
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In early trading on Tuesday, shares of Travelers Companies topped the list of the day's best performing Dow Jones Industrial Average components, trading up 0.9%. Year to date, Travelers Companies registers a 18.4% gain.
And the worst performing Dow component thus far on the day is Home Depot, trading down 2.0%. Home Depot is lower by about 25.1% looking at the year to date performance.
Two other components making moves today are Apple, trading down 1.7%, and Boeing, trading up 0.9% on the day.
VIDEO: Dow Movers: HD, TRV
The views and 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 Travelers Companies topped the list of the day's best performing Dow Jones Industrial Average components, trading up 0.9%. And the worst performing Dow component thus far on the day is Home Depot, trading down 2.0%. Home Depot is lower by about 25.1% looking at the year to date performance.
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In early trading on Tuesday, shares of Travelers Companies topped the list of the day's best performing Dow Jones Industrial Average components, trading up 0.9%. Year to date, Travelers Companies registers a 18.4% gain. And the worst performing Dow component thus far on the day is Home Depot, trading down 2.0%.
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In early trading on Tuesday, shares of Travelers Companies topped the list of the day's best performing Dow Jones Industrial Average components, trading up 0.9%. And the worst performing Dow component thus far on the day is Home Depot, trading down 2.0%. Two other components making moves today are Apple, trading down 1.7%, and Boeing, trading up 0.9% on the day.
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In early trading on Tuesday, shares of Travelers Companies topped the list of the day's best performing Dow Jones Industrial Average components, trading up 0.9%. And the worst performing Dow component thus far on the day is Home Depot, trading down 2.0%. VIDEO: Dow Movers: HD, TRV The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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17946.0
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2022-12-20 00:00:00 UTC
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Is Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-goldman-sachs-activebeta-world-low-vol-plus-equity-etf-glov-a-strong-etf-right-now-0
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nan
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nan
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The Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) was launched on 03/15/2022, and is a smart beta exchange traded fund designed to offer broad exposure to the Broad Developed World ETFs 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.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
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 $587.52 million, this makes it one of the average sized ETFs in the Broad Developed World ETFs. GLOV is managed by Goldman Sachs Funds. Before fees and expenses, GLOV seeks to match the performance of the GOLDMAN SACHS ACTBT WORLD LW VL PL EQ ID.
The Goldman Sachs ActiveBeta World Low Vol Plus Equity Index delivers exposure to large and mid-capitalization equity securities of developed market issuers, including the United States.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.25% for GLOV, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.21%.
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.
Taking into account individual holdings, Apple Inc (AAPL) accounts for about 2.95% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY).
GLOV's top 10 holdings account for about 14.13% of its total assets under management.
Performance and Risk
The ETF has lost about -7.98% so far this year.
With about 389 holdings, it effectively diversifies company-specific risk.
Alternatives
Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF is a reasonable option for investors seeking to outperform the Broad Developed World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares MSCI ACWI ETF (ACWI) tracks MSCI All Country World Index and the Vanguard Total World Stock ETF (VT) tracks FTSE Global All Cap Index. IShares MSCI ACWI ETF has $17.64 billion in assets, Vanguard Total World Stock ETF has $23.49 billion. ACWI has an expense ratio of 0.32% and VT charges 0.07%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Broad Developed World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report
iShares MSCI ACWI ETF (ACWI): ETF Research Reports
Vanguard Total World Stock ETF (VT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 2.95% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY). Click to get this free report Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report iShares MSCI ACWI ETF (ACWI): ETF Research Reports Vanguard Total World Stock ETF (VT): ETF Research Reports To read this article on Zacks.com click here. However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
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Click to get this free report Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report iShares MSCI ACWI ETF (ACWI): ETF Research Reports Vanguard Total World Stock ETF (VT): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 2.95% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY). Alternatives Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF is a reasonable option for investors seeking to outperform the Broad Developed World ETFs segment of the market.
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Click to get this free report Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report iShares MSCI ACWI ETF (ACWI): ETF Research Reports Vanguard Total World Stock ETF (VT): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 2.95% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY). The Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) was launched on 03/15/2022, and is a smart beta exchange traded fund designed to offer broad exposure to the Broad Developed World ETFs category of the market.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 2.95% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY). Click to get this free report Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report iShares MSCI ACWI ETF (ACWI): ETF Research Reports Vanguard Total World Stock ETF (VT): ETF Research Reports To read this article on Zacks.com click here. The Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) was launched on 03/15/2022, and is a smart beta exchange traded fund designed to offer broad exposure to the Broad Developed World ETFs category of the market.
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17947.0
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2022-12-20 00:00:00 UTC
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Disney's (DIS) Shares Falter as Avatar Movie Misses Estimates
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AAPL
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https://www.nasdaq.com/articles/disneys-dis-shares-falter-as-avatar-movie-misses-estimates
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nan
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nan
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The Walt Disney Company’s DIS latest movie Avatar: The Way of Water grossed $134 million on the opening weekend at the domestic box office, missing expectations of more than $175 million. The figure also came short of Disney’s expectation of $135-$150 million.
Internationally, Avatar: The Way of Water grossed $300.5 million, bringing the movie’s opening overall weekend collection to $434.5 million, trailing Marvel Studios’ Doctor Strange in the Multiverse of Madness ($442 million).
Per CNBC data, China accounted for $57.1 million in ticket sales for the three-day opening weekend. China contributed roughly $265 million to the original Avatar movie, which, despite collecting only $77 million in the opening weekend, went on to become the highest-grossing movie of all time.
The first Avatar movie, released in 2009, grossed $2.9 billion worldwide. It edged out Avengers: Endgame after a September 2022 re-release helped the movie add $73 million in ticket sales.
Disney shares fell 4.77% to $85.78 at close on Dec 19. Disney shares have lost 44.6% year to date compared with the Zacks Media Conglomerates sector’s decline of 37.6%.
The Walt Disney Company Price and Consensus
The Walt Disney Company price-consensus-chart | The Walt Disney Company Quote
Disney Relies on Disney+ to Recover
Disney has been heavily investing in its streaming services to launch new movies and shows to gain traction. This has aided subscriber growth as Disney+ added more than 12 million global subscribers in the fourth quarter of fiscal 2022.
However, Disney’s direct-to-consumer division reported an operating loss of $1.5 billion in fourth-quarter fiscal 2022, which doubled year over year. This has been attributed to macroeconomic factors like inflation, which have spiked up the cost of production for the company, as well as adverse foreign exchange impact that decreased Disney+’s ARPU by 5%.
Disney+ also faces significant competition from Netflix NFLX, which has a strong pipeline of content and has reached 223 million subscribers worldwide. A saturated streaming market, with the presence of services from the likes of Apple AAPL and Comcast CMCSA, is creating headwinds for Disney+.
Streaming market leader, Netflix, reported better-than-expected third-quarter 2022 subscriber numbers. The streaming giant gained 2.41 million paid subscribers globally, higher than its estimate of gaining one million users. Netflix added 4.38 million paid subscribers in the year-ago quarter.
Apple’s streaming service, Apple TV+, continues to gain recognition with its critically acclaimed and popular shows like Ted Lasso.
Comcast’s Peacock had more than 15 million paid subscribers in the United States at the end of third-quarter 2022. Moreover, Peacock had approximately 14 million bundled and free users, totaling around 30 million monthly active accounts.
Nevertheless, Disney is focusing on the realignment of cost, including meaningful rationalization of marketing spending, and optimization of content slate and distribution approach to deliver a steady state of high-impact releases that efficiently drive engagement.
Disney also reappointed Robert A. Iger, popularly known as Bob Iger, as CEO. Bob Iger had actively been involved in the launch of Disney+ in 2019. His expertise and experience of more than four decades are likely to help the company create an efficient and cost-effective structure for the streaming platform.
This Zacks Rank #5 (Strong Sell) company 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.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Top 10 Stocks for 2023
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2023? From inception in 2012 through November, the Zacks Top 10 Stocks portfolio has tripled the market, gaining an impressive +884.5% versus the S&P 500’s +287.4%.
Now our Director of Research is combing through 4,000 companies covered by the Zacks Rank to handpick the best 10 tickers to buy and hold. Don’t miss your chance to get in on these stocks when they’re released on January 3.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Comcast Corporation (CMCSA) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A saturated streaming market, with the presence of services from the likes of Apple AAPL and Comcast CMCSA, is creating headwinds for Disney+. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Comcast Corporation (CMCSA) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. This has been attributed to macroeconomic factors like inflation, which have spiked up the cost of production for the company, as well as adverse foreign exchange impact that decreased Disney+’s ARPU by 5%.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Comcast Corporation (CMCSA) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. A saturated streaming market, with the presence of services from the likes of Apple AAPL and Comcast CMCSA, is creating headwinds for Disney+. The Walt Disney Company’s DIS latest movie Avatar: The Way of Water grossed $134 million on the opening weekend at the domestic box office, missing expectations of more than $175 million.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Comcast Corporation (CMCSA) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. A saturated streaming market, with the presence of services from the likes of Apple AAPL and Comcast CMCSA, is creating headwinds for Disney+. The Walt Disney Company’s DIS latest movie Avatar: The Way of Water grossed $134 million on the opening weekend at the domestic box office, missing expectations of more than $175 million.
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A saturated streaming market, with the presence of services from the likes of Apple AAPL and Comcast CMCSA, is creating headwinds for Disney+. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Comcast Corporation (CMCSA) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. The Walt Disney Company’s DIS latest movie Avatar: The Way of Water grossed $134 million on the opening weekend at the domestic box office, missing expectations of more than $175 million.
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17948.0
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2022-12-20 00:00:00 UTC
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Should Schwab 1000 Index ETF (SCHK) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-schwab-1000-index-etf-schk-be-on-your-investing-radar-5
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nan
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nan
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If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Schwab 1000 Index ETF (SCHK), a passively managed exchange traded fund launched on 10/11/2017.
The fund is sponsored by Charles Schwab. It has amassed assets over $2.28 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
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 0.05%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.60%.
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 26.50% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.57% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 25.33% of total assets under management.
Performance and Risk
SCHK seeks to match the performance of the Schwab 1000 Index before fees and expenses. The Schwab 1000 Index is a float-adjusted market capitalization weighted index that includes the 1,000 largest stocks of publicly traded companies in the United States, with size being determined by market capitalization. The index is designed to be a measure of the performance of large- and mid-cap U.S. stocks.
The ETF has lost about -20.36% so far this year and is down about -17.45% in the last one year (as of 12/20/2022). In the past 52-week period, it has traded between $34.56 and $46.85.
The ETF has a beta of 1.02 and standard deviation of 25.31% for the trailing three-year period. With about 989 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab 1000 Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SCHK is a 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 $289.13 billion in assets, SPDR S&P 500 ETF has $364.32 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.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Schwab 1000 Index ETF (SCHK): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.57% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Schwab 1000 Index ETF (SCHK): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Schwab 1000 Index ETF (SCHK), a passively managed exchange traded fund launched on 10/11/2017.
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Click to get this free report Schwab 1000 Index ETF (SCHK): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.57% 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 1000 Index ETF (SCHK), a passively managed exchange traded fund launched on 10/11/2017.
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Click to get this free report Schwab 1000 Index ETF (SCHK): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.57% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives Schwab 1000 Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.57% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Schwab 1000 Index ETF (SCHK): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Schwab 1000 Index ETF (SCHK), a passively managed exchange traded fund launched on 10/11/2017.
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17949.0
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2022-12-20 00:00:00 UTC
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Taiwan Nov export orders plunge, China's COVID surge clouds outlook
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AAPL
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https://www.nasdaq.com/articles/taiwan-nov-export-orders-plunge-chinas-covid-surge-clouds-outlook
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nan
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nan
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Recasts, updates throughout
Nov export orders -23.4% y/y vs -11.2% poll forecast
Export orders from China -37.3% y/y vs -26.7% in Oct
Ministry sees Dec orders between -27.8% and -30.8% y/y
Outlook clouded by China's COVID-19 surge
TAIPEI, Dec 20 (Reuters) - Taiwan's export orders contracted at the worst rate in more than a decade in November, hit by a plunge in China demand and generally weaker global consumer spending because of inflation and interest rate hikes.
The island's export orders last month, a bellwether for global technology demand, were 23.4% lower than a year earlier at $50.14 billion, the Ministry of Economic Affairs said on Tuesday. That was higher than analysts' expectations of an 11.2% decline.
November's drop - the steepest since March 2009, when the fall was 24.3% - followed October's annual contraction of 6.3%. November was the third month to show an annual drop.
Orders for telecoms products plummeted 30.5% from a year earlier because of weaker consumer demand especially in China because of COVID controls, but also came off a high base, the ministry said.
Orders for electronic products fell 15.2%, though the decline was offset by demand for chips for high-performance computing, 5G and automobiles, it added.
While semiconductor demand and stockpiling ahead of January's Lunar New Year holiday in East Asia would help orders, there were also big uncertainties ahead, including the rapid spread of COVID-19 in China after the country lifted controls, it added.
The ministry added that it expected export orders this month to be lower than in December 2021 by between 27.8% and 30.8%.
Taiwanese firms, such as Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N, are major suppliers to Apple Inc AAPL.O, Qualcomm Inc QCOM.O and other global tech companies.
Taiwan's November orders from China nosedived 37.3% from a year earlier, versus October's annual fall of 26.7%. Month-on-month orders from China dropped 4.1%.
China this month began easing its stringent zero-COVID approach that had led to widespread public frustration with lockdowns and damage to the world's second-largest economy, but is now dealing with a rapid rise in cases.
Taiwan's orders from the United States fell 16.7% from a year earlier, compared with a rise of 1.2% the previous month.
Export orders from Europe dropped 26.3%, versus October's annual rise of 4.3%. However, orders from Japan expanded 5%.
(Reporting by Liang-sa Loh and Ben Blanchard; Additional reporting by Meg Shen; Editing by Bradley Perrett and Christian Schmollinger)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taiwanese firms, such as Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N, are major suppliers to Apple Inc AAPL.O, Qualcomm Inc QCOM.O and other global tech companies. The island's export orders last month, a bellwether for global technology demand, were 23.4% lower than a year earlier at $50.14 billion, the Ministry of Economic Affairs said on Tuesday. Orders for telecoms products plummeted 30.5% from a year earlier because of weaker consumer demand especially in China because of COVID controls, but also came off a high base, the ministry said.
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Taiwanese firms, such as Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N, are major suppliers to Apple Inc AAPL.O, Qualcomm Inc QCOM.O and other global tech companies. The ministry added that it expected export orders this month to be lower than in December 2021 by between 27.8% and 30.8%. Taiwan's November orders from China nosedived 37.3% from a year earlier, versus October's annual fall of 26.7%.
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Taiwanese firms, such as Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N, are major suppliers to Apple Inc AAPL.O, Qualcomm Inc QCOM.O and other global tech companies. Recasts, updates throughout Nov export orders -23.4% y/y vs -11.2% poll forecast Export orders from China -37.3% y/y vs -26.7% in Oct Ministry sees Dec orders between -27.8% and -30.8% y/y Outlook clouded by China's COVID-19 surge TAIPEI, Dec 20 (Reuters) - Taiwan's export orders contracted at the worst rate in more than a decade in November, hit by a plunge in China demand and generally weaker global consumer spending because of inflation and interest rate hikes. The island's export orders last month, a bellwether for global technology demand, were 23.4% lower than a year earlier at $50.14 billion, the Ministry of Economic Affairs said on Tuesday.
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Taiwanese firms, such as Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N, are major suppliers to Apple Inc AAPL.O, Qualcomm Inc QCOM.O and other global tech companies. Orders for telecoms products plummeted 30.5% from a year earlier because of weaker consumer demand especially in China because of COVID controls, but also came off a high base, the ministry said. Taiwan's November orders from China nosedived 37.3% from a year earlier, versus October's annual fall of 26.7%.
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17950.0
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2022-12-20 00:00:00 UTC
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Follow the Expert: Ace Investor Buffett Shows Confidence in These 3 Stocks
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AAPL
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https://www.nasdaq.com/articles/follow-the-expert%3A-ace-investor-buffett-shows-confidence-in-these-3-stocks
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nan
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nan
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Stocks are an inherently risky investment, and picking the right one is often quite difficult. However, with TipRanks Expert Center, retail investors can easily pick gems by following an expert. Our “Expert Spotlight Piece” today brings you the top three holdings of ace investor Warren Buffett. The CEO and Chairperson of Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) continue to show confidence in Apple (NASDAQ:AAPL), Bank of America (NYSE:BAC), and Chevron (NYSE:CVX). Together, these three stocks account for about 60% of Buffett’s portfolio.
Buffett, who ranks #175 out of 468 hedge funds on TipRanks, also took new positions in three stocks in Q3. These are Taiwan Semiconductor Manufacturing Co. (NYSE:TSM), Louisiana-Pacific (NYSE:LPX), and Jefferies Financial Group (NYSE:JEF). Buffett’s portfolio has gained 85.31% since 2013.
Apple Stock is the Largest Holding of Buffett
Apple stock accounts for 41.69% of Buffett’s portfolio. The stock has witnessed a pullback amid supply-chain issues, lower-than-expected demand for the iPhone 14, and production challenges due to the tighter COVID restrictions in China. While AAPL stock is down about 25% year-to-date, Buffett has maintained his holding in the stock.
Further, most of Apple’s challenges are transitory and will likely abate soon. Thus, this pullback could be a buying opportunity for investors.
Is Apple a Buy, Sell, or Hold Right Now?
Wall Street analysts are optimistic about Apple stock. It has 24 Buys and four Holds for a Strong Buy consensus rating on TipRanks. Further, analysts’ average price target of $179.33 implies a decent upside potential of 35.48%.
Buffett Maintains His Holdings in BAC Stock
Shares of the financial services giant Bank of America are down over 26% year-to-date. While a higher interest rate environment is good for banks, aggressive rate hikes amid high inflation and uncertainty dragged bank stocks lower.
Nevertheless, the easing of inflation and an expected slowdown in the pace of rate hikes will likely support BAC stock.
Is Bank of America a Buy Right Now?
Bank of America stock commands a Moderate Buy consensus rating on TipRanks. It has received seven Buy and five Hold recommendations. Moreover, these analysts’ average price target of $39.82 implies 24.20% upside potential.
Buffett Ups Stake in Chevron Stock
Buffett increased his holdings in Chevron stock in Q3 by 2.43%. CVX stock has outperformed the broader market averages in 2022, reflecting higher realized prices for crude and natural gas liquids. Thanks to the favorable operating environment, CVX strengthened its balance sheet, aggressively reduced its debt, and enhanced shareholders’ returns through share buybacks and solid dividend payments.
What is the Price Target for CVX Stock?
Wall Street analysts have an average price target of $187.69 for CVX stock, implying an upside potential of 10.48%. Meanwhile, CVX stock has received five Buy, six Hold, and two Sell recommendations for a Hold consensus rating on TipRanks.
Ending Thoughts
Investors may follow Warren Buffett’s views to make informed investment decisions. Similarly, they could follow other experts, including Wall Street analysts, corporate insiders, hedge fund managers, financial bloggers, and individual investors. TipRanks accumulates the recommendations and views of these Top Experts, which can be considered while investing to maximize returns.
Find out which stock the biggest hedge fund managers are buying right now.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The CEO and Chairperson of Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) continue to show confidence in Apple (NASDAQ:AAPL), Bank of America (NYSE:BAC), and Chevron (NYSE:CVX). While AAPL stock is down about 25% year-to-date, Buffett has maintained his holding in the stock. The stock has witnessed a pullback amid supply-chain issues, lower-than-expected demand for the iPhone 14, and production challenges due to the tighter COVID restrictions in China.
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The CEO and Chairperson of Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) continue to show confidence in Apple (NASDAQ:AAPL), Bank of America (NYSE:BAC), and Chevron (NYSE:CVX). While AAPL stock is down about 25% year-to-date, Buffett has maintained his holding in the stock. While a higher interest rate environment is good for banks, aggressive rate hikes amid high inflation and uncertainty dragged bank stocks lower.
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The CEO and Chairperson of Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) continue to show confidence in Apple (NASDAQ:AAPL), Bank of America (NYSE:BAC), and Chevron (NYSE:CVX). While AAPL stock is down about 25% year-to-date, Buffett has maintained his holding in the stock. Apple Stock is the Largest Holding of Buffett Apple stock accounts for 41.69% of Buffett’s portfolio.
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The CEO and Chairperson of Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) continue to show confidence in Apple (NASDAQ:AAPL), Bank of America (NYSE:BAC), and Chevron (NYSE:CVX). While AAPL stock is down about 25% year-to-date, Buffett has maintained his holding in the stock. Apple Stock is the Largest Holding of Buffett Apple stock accounts for 41.69% of Buffett’s portfolio.
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17951.0
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2022-12-20 00:00:00 UTC
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PayPal Stock: Buy, Sell, or Hold Before 2023?
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AAPL
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https://www.nasdaq.com/articles/paypal-stock%3A-buy-sell-or-hold-before-2023
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nan
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nan
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Since being spun off from eBay in July 2015, PayPal (NASDAQ: PYPL) has seen its stock price rise 89%, despite falling 78% from its peak. A pioneer in the digital payments industry, PayPal has quickly expanded its standing as a popular checkout option for merchants and shoppers. And along the way, revenue and profits have increased at a steady clip.
But this year has been a different story. With its shares down big in 2022, should investors buy, sell, or hold PayPal right now? Let's take a closer look at this top fintech stock.
Facing a slowdown
In 2021, PayPal posted total payment volume (TPV) of $1.25 trillion (up 33% year over year), revenue of $25.4 billion (up 18%), and adjusted earnings per share (EPS) of $4.60 (up 19%). What's more, the business added a whopping 49 million net new active accounts to its platform during the 12-month period. Due to the coronavirus pandemic pushing people to online shopping and electronic payments, PayPal was flying high.
Then the calendar turned, and things started changing. Spurred by the Federal Reserve's aggressive interest rate hikes to slow soaring inflation, signs point to a deteriorating economic picture, with many forecasting a recession on the horizon.
This has delivered a blow to PayPal. Because the company generated 91% of its third-quarter revenue from transaction fees based on the activity on its platform, a slowing economy can hurt, as consumers spend less. Making matters worse is the fact that PayPal's network leans toward discretionary purchases, which shoppers can cut in times of economic stress.
"We expect inflationary pressures alongside slowing global growth to weigh on discretionary e-commerce spending, which could continue to be pressured in 2023," Chief Financial Officer Gabs Rabinovitch said on the Q3 2022 earnings call.
In the third quarter, TPV increased 9% year over year, with revenue rising 11%. PayPal added 2.9 million net new accounts during the period. And for the fourth quarter, management predicted revenue will rise 9% versus Q4 2021, with adjusted EPS up 7% (at the midpoint).
To be fair, these aren't bad numbers. They're just obviously not what shareholders have been accustomed to over the past several years.
Furthermore, the management team, led by Chief Executive Officer Dan Schulman, no longer thinks PayPal can amass 1 billion active accounts, a lofty goal he established during the depths of the pandemic. PayPal will now focus on attracting high-value users while getting its existing customers to engage more. This will prove difficult in a softer economic backdrop.
Consider the competitive landscape
Based on what I've outlined above, it's no wonder that the stock has taken a hit. Shares now trade at a price-to-earnings multiple of 35, which is well below the average of 51 since the company separated from eBay. Despite what might appear to be an attractive valuation, I'm not jumping to buy shares just yet.
According to Deutsche Bank analyst Bryan Keane, PayPal's global adoption as a checkout option in the month of November fell 8% versus a year ago. But Apple Pay saw usage surge 52%. One probably shouldn't place too much weight on a single piece of data, but I think this is something investors should pay close attention to.
Does this mean that these digital wallets are commoditized? I don't necessarily think so. PayPal does offer other features through its app, like rewards, bill pay, stock and crypto investing, and direct deposit. Plus, the company has Venmo, which management is still working to better monetize.
But I think that from a shopper's perspective, checking out with Apple Pay is faster and much more seamless than using PayPal. Furthermore, iPhone users tend to be in higher-income brackets, so they probably have more discretionary income to spend. PayPal losing share to Apple Pay means it is losing these valuable customers, and that's clearly not a good sign.
The takeaway for investors right now is not to panic and sell the stock. If you're a PayPal shareholder, it's best to keep an eye on trends with digital wallet usage. If the business can continue expanding its account base and TPV, then maybe my concerns are overblown. Therefore, the stock remains a hold, and possibly a buy for those who want to take advantage of a beaten-down price.
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.
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*Stock Advisor returns as of December 1, 2022
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and PayPal. The Motley Fool recommends eBay and recommends the following options: 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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Spurred by the Federal Reserve's aggressive interest rate hikes to slow soaring inflation, signs point to a deteriorating economic picture, with many forecasting a recession on the horizon. Furthermore, the management team, led by Chief Executive Officer Dan Schulman, no longer thinks PayPal can amass 1 billion active accounts, a lofty goal he established during the depths of the pandemic. According to Deutsche Bank analyst Bryan Keane, PayPal's global adoption as a checkout option in the month of November fell 8% versus a year ago.
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Facing a slowdown In 2021, PayPal posted total payment volume (TPV) of $1.25 trillion (up 33% year over year), revenue of $25.4 billion (up 18%), and adjusted earnings per share (EPS) of $4.60 (up 19%). In the third quarter, TPV increased 9% year over year, with revenue rising 11%. The Motley Fool recommends eBay and recommends the following options: 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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Facing a slowdown In 2021, PayPal posted total payment volume (TPV) of $1.25 trillion (up 33% year over year), revenue of $25.4 billion (up 18%), and adjusted earnings per share (EPS) of $4.60 (up 19%). 10 stocks we like better than PayPal When our award-winning analyst team has a stock tip, it can pay to listen. * They just revealed what they believe are the ten best stocks for investors to buy right now... and PayPal wasn't one of them!
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In the third quarter, TPV increased 9% year over year, with revenue rising 11%. * 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.
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17952.0
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2022-12-19 00:00:00 UTC
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US STOCKS-Wall Street falls fourth straight day as recession worries nag
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-falls-fourth-straight-day-as-recession-worries-nag-0
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By Sinéad Carew and Sruthi Shankar
Dec 19 (Reuters) - Wall Street closed lower on Monday for a fourth straight session with Nasdaq leading declines as investors shied away from riskier bets, worried the Federal Reserve's tightening campaign could push the U.S. economy into a recession.
The three major U.S. stock indexes have been under pressure since Wednesday, when Fed Chair Jerome Powell took a hawkish tone while the central bank raised interest rates. Powell promised further rate increases even as data showed signs of a weakening economy.
The S&P 500 .SPX, the Dow Jones industrials .DJI and the Nasdaq have sold off sharply for December and are on track for their biggest annual declines since the 2008 financial crisis.
While U.S. Treasury yields gained, investors ran from stocks, eyeing prospects of safer bets as they worried about the likelihood of a recession in 2023 according to Brian Overby, senior markets strategist at Ally.
"Investors are asking why do I want to take those risks going into 2023 with the Fed's stance still aggressive when I can get such a good yield on the fixed income market place," he said.
The Dow Jones Industrial Average .DJI fell 162.92 points, or 0.49%, to 32,757.54, the S&P 500 .SPX lost 34.7 points, or 0.90%, to 3,817.66 and the Nasdaq Composite .IXIC dropped 159.38 points, or 1.49%, to 10,546.03.
The biggest decliners among S&P industry sectors were communications services .SPLRCL, which fell 2.2%, consumer discretionary .SPLRCD, down 1.7% and technology .SPLRCT, which lost 1.4%. Energy .SPNY outperformed, closing up 0.13% as the sole industry out of 11 to manage a gain.
Market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O created some of the biggest drags on the market.
Trading in Tesla Inc TSLA.Owas volatile with the electric carmaker closing down 0.24% after falling as much as 2.8% during the session. This was after a Twitter poll that showed a majority of respondents want Tesla Chief Executive Elon Musk to step down as CEO of the social media platform.
Meta Platforms META.O shares finished down 4.1% after the European Commission said it could impose a fine of up to 10% of the tech conglomerate's annual global turnover if evidence showed an infringement of the EU's antitrust laws.
L3Harris Technologies Inc LHX.N lost 3.6% after the U.S. defense contractor said it would buy hypersonic engine manufacturer Aerojet Rocketdyne Holdings Inc AJRD.N for $4.7 billion. Aerojet added 1.3%.
Shares of casino operatorsMelco Resorts & EntertainmentMLCO.O tumbled just under 8% and Wynn Resorts WYNN.O lost 5.2% while Las Vegas Sands Corp LVS.Nfell 2.3% after Macau said on Friday that six casino firms will invest around $15 billion as part of new 10-year contracts they signed to operate in the world's biggest gambling hub.
Declining issues outnumbered advancing ones on the NYSE by a 2.80-to-1 ratio; on Nasdaq, a 2.63-to-1 ratio favored decliners.
The S&P 500 posted 5 new 52-week highs and 20 new lows; the Nasdaq Composite recorded 66 new highs and 456 new lows.
On U.S. exchanges 11.07 billion shares changed hands, compared with the 11.59 billion average for the last 20 trading days.
(Reporting by Sinéad Carew, Sruthi Shankar, Shubham Batra, Johann M Cherian and Sruthi Shankar in Bengaluru; Editing by Saumyadeb Chakrabarty, Maju Samuel and David Gregorio)
((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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Market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O created some of the biggest drags on the market. By Sinéad Carew and Sruthi Shankar Dec 19 (Reuters) - Wall Street closed lower on Monday for a fourth straight session with Nasdaq leading declines as investors shied away from riskier bets, worried the Federal Reserve's tightening campaign could push the U.S. economy into a recession. While U.S. Treasury yields gained, investors ran from stocks, eyeing prospects of safer bets as they worried about the likelihood of a recession in 2023 according to Brian Overby, senior markets strategist at Ally.
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Market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O created some of the biggest drags on the market. By Sinéad Carew and Sruthi Shankar Dec 19 (Reuters) - Wall Street closed lower on Monday for a fourth straight session with Nasdaq leading declines as investors shied away from riskier bets, worried the Federal Reserve's tightening campaign could push the U.S. economy into a recession. The Dow Jones Industrial Average .DJI fell 162.92 points, or 0.49%, to 32,757.54, the S&P 500 .SPX lost 34.7 points, or 0.90%, to 3,817.66 and the Nasdaq Composite .IXIC dropped 159.38 points, or 1.49%, to 10,546.03.
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Market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O created some of the biggest drags on the market. By Sinéad Carew and Sruthi Shankar Dec 19 (Reuters) - Wall Street closed lower on Monday for a fourth straight session with Nasdaq leading declines as investors shied away from riskier bets, worried the Federal Reserve's tightening campaign could push the U.S. economy into a recession. The Dow Jones Industrial Average .DJI fell 162.92 points, or 0.49%, to 32,757.54, the S&P 500 .SPX lost 34.7 points, or 0.90%, to 3,817.66 and the Nasdaq Composite .IXIC dropped 159.38 points, or 1.49%, to 10,546.03.
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Market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O created some of the biggest drags on the market. By Sinéad Carew and Sruthi Shankar Dec 19 (Reuters) - Wall Street closed lower on Monday for a fourth straight session with Nasdaq leading declines as investors shied away from riskier bets, worried the Federal Reserve's tightening campaign could push the U.S. economy into a recession. "Investors are asking why do I want to take those risks going into 2023 with the Fed's stance still aggressive when I can get such a good yield on the fixed income market place," he said.
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17953.0
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2022-12-19 00:00:00 UTC
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Why Apple Stock Flopped on Monday
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AAPL
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https://www.nasdaq.com/articles/why-apple-stock-flopped-on-monday
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nan
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nan
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What happened
In a generally gloomy environment for tech stocks, Apple (NASDAQ: AAPL) on Monday suffered its latest price drop. The company's shares lost 1.6% of their value, eclipsing the 0.9% slide of the S&P 500 on the day, due to that anti-tech sentiment, plus the latest legal hit over the way it manages its mobile software marketplace.
So what
In advance of major legislative changes in the European Union (EU), a French court slapped Apple with a fine of just over 1 million euros ($1.06 million) over the company's App Store. The Paris Commercial Court found that the U.S. tech giant imposed clauses on French app developers that effectively constituted abuse under that country's law.
The court only levied a fine; it did not mandate that any remedies be taken by Apple. It noted that upcoming modifications to the EU's Digital Markets Act would basically force compliance from the company.
Apple has weathered much controversy over the way it runs the App Store. It charges a standard 30% fee for all commerce transacted through the channel, which is the only official marketplace through which Apple device users can download apps. More than a few developers, regulators, and consumers have complained that this is a monopolistic practice imposing an unfair burden on the company's counterparties.
Now what
A fine of barely over $1 million is chump change for Apple -- in its last fiscal year, for example, the company brought in over $394 billion in revenue and netted a profit just shy of $100 billion. Regardless, it's a sign that it is approaching the end of the road with its sweet App Store arrangement (at least in the core of Europe).
At least it isn't fighting the inevitable; recent media reports suggest that the company is preparing for those changes about to hit the EU rather than gearing up to contest them.
10 stocks we like better than Apple
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 1, 2022
Eric Volkman has positions in Apple. The Motley Fool has positions in and recommends Apple. 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 In a generally gloomy environment for tech stocks, Apple (NASDAQ: AAPL) on Monday suffered its latest price drop. The company's shares lost 1.6% of their value, eclipsing the 0.9% slide of the S&P 500 on the day, due to that anti-tech sentiment, plus the latest legal hit over the way it manages its mobile software marketplace. The Paris Commercial Court found that the U.S. tech giant imposed clauses on French app developers that effectively constituted abuse under that country's law.
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What happened In a generally gloomy environment for tech stocks, Apple (NASDAQ: AAPL) on Monday suffered its latest price drop. So what In advance of major legislative changes in the European Union (EU), a French court slapped Apple with a fine of just over 1 million euros ($1.06 million) over the company's App Store. 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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What happened In a generally gloomy environment for tech stocks, Apple (NASDAQ: AAPL) on Monday suffered its latest price drop. So what In advance of major legislative changes in the European Union (EU), a French court slapped Apple with a fine of just over 1 million euros ($1.06 million) over the company's App Store. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Eric Volkman has positions in Apple.
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What happened In a generally gloomy environment for tech stocks, Apple (NASDAQ: AAPL) on Monday suffered its latest price drop. So what In advance of major legislative changes in the European Union (EU), a French court slapped Apple with a fine of just over 1 million euros ($1.06 million) over the company's App Store. That's right -- they think these 10 stocks are even better buys.
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17954.0
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2022-12-19 00:00:00 UTC
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TikTok bans hit more U.S. states; security firm says most access blocked globally
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AAPL
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https://www.nasdaq.com/articles/tiktok-bans-hit-more-u.s.-states-security-firm-says-most-access-blocked-globally
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nan
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nan
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By Paresh Dave
OAKLAND, Calif., Dec 19 (Reuters) - State agencies in Louisiana and West Virginia on Monday became the latest to ban the use of the popular social media service TikTok on government-managed devices over concern that China could use it to track Americans and censor content.
Some 19 of the 50 U.S. states have now at least partially blocked access on government computers to TikTok, which is owned by Beijing-based ByteDance Ltd. Most of the restrictions came within the past two weeks.
Some members of Congress last week proposed a nationwide ban, which would follow countries such as India that have already prohibited its use.
Jamf Holding Corp JAMF.O, which sells software to organizations to enable filtering and security measures on iPhones and other Apple AAPL.O devices, said its government customers have increasingly blocked access to TikTok since the middle of this year.
About 65% of attempted connections to TikTok have been blocked this month on devices managed by Jamf’s public sector customers worldwide, including school districts and various other agencies, up from 10% of connections being blocked in June, the company said.
TikTok on Monday reiterated a statement, saying the company was "disappointed that so many states are jumping on the political bandwagon to enact policies based on unfounded falsehoods about TikTok that will do nothing to advance the national security of the United States."
In Louisiana, Secretary of State Kyle Ardoin said he banned TikTok on all devices his agency owns, citing potential security threats but without identifying any present issues. West Virginia State Auditor JB McCuskey said he did the same for his agency.
U.S. officials and TikTok have been in talks for months about a national security pact that would address the concerns about China's access to data on TikTok's more than 100 million U.S. users.
(Reporting by Paresh Dave; Editing by Bill Berkrot)
((paresh.dave@thomsonreuters.com; 415-565-1302;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Jamf Holding Corp JAMF.O, which sells software to organizations to enable filtering and security measures on iPhones and other Apple AAPL.O devices, said its government customers have increasingly blocked access to TikTok since the middle of this year. By Paresh Dave OAKLAND, Calif., Dec 19 (Reuters) - State agencies in Louisiana and West Virginia on Monday became the latest to ban the use of the popular social media service TikTok on government-managed devices over concern that China could use it to track Americans and censor content. In Louisiana, Secretary of State Kyle Ardoin said he banned TikTok on all devices his agency owns, citing potential security threats but without identifying any present issues.
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Jamf Holding Corp JAMF.O, which sells software to organizations to enable filtering and security measures on iPhones and other Apple AAPL.O devices, said its government customers have increasingly blocked access to TikTok since the middle of this year. By Paresh Dave OAKLAND, Calif., Dec 19 (Reuters) - State agencies in Louisiana and West Virginia on Monday became the latest to ban the use of the popular social media service TikTok on government-managed devices over concern that China could use it to track Americans and censor content. In Louisiana, Secretary of State Kyle Ardoin said he banned TikTok on all devices his agency owns, citing potential security threats but without identifying any present issues.
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Jamf Holding Corp JAMF.O, which sells software to organizations to enable filtering and security measures on iPhones and other Apple AAPL.O devices, said its government customers have increasingly blocked access to TikTok since the middle of this year. By Paresh Dave OAKLAND, Calif., Dec 19 (Reuters) - State agencies in Louisiana and West Virginia on Monday became the latest to ban the use of the popular social media service TikTok on government-managed devices over concern that China could use it to track Americans and censor content. TikTok on Monday reiterated a statement, saying the company was "disappointed that so many states are jumping on the political bandwagon to enact policies based on unfounded falsehoods about TikTok that will do nothing to advance the national security of the United States."
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Jamf Holding Corp JAMF.O, which sells software to organizations to enable filtering and security measures on iPhones and other Apple AAPL.O devices, said its government customers have increasingly blocked access to TikTok since the middle of this year. By Paresh Dave OAKLAND, Calif., Dec 19 (Reuters) - State agencies in Louisiana and West Virginia on Monday became the latest to ban the use of the popular social media service TikTok on government-managed devices over concern that China could use it to track Americans and censor content. Most of the restrictions came within the past two weeks.
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17955.0
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2022-12-19 00:00:00 UTC
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US STOCKS-Wall Street falls as recession worries persist
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-falls-as-recession-worries-persist
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nan
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nan
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By Sruthi Shankar and Johann M Cherian
Dec 19 (Reuters) - U.S. stock indexes fell on Monday, led by shares of Tesla and other megapcap companies, as investors feared that the Federal Reserve's monetary policy tightening campaign could push the U.S. economy into a recession.
The main U.S. benchmarks have sold off sharply in December, putting them on course for their worst annual declines since the 2008 financial crisis, after mixed economic data and the Fed's hawkish stance fueled worries of a recession.
Market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O fell more than 1% on Monday, weighed down by rising Treasury yields. US/
Tesla Inc TSLA.O fell 1.6%, reversing strong premarket gains in the wake of a Twitter poll that showed majority of users voted for Elon Musk to step down as chief executive of the social media platform.
"There's residual negativity from the Fed's more hawkish comments, concerns about where interest rates are going to end up next year and what that is going to do to valuations," Michael James, senior vice president of institutional equity trading at Wedbush Securities.
"When people adjust their expectations after the Fed meeting, higher rates typically imply more compressed multiples for growth stocks."
The benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC lost over 2% each last week after Fed Chair Jerome Powell signaled more policy tightening, and the central bank projected that interest rates would top the 5% mark in 2023, a level not seen since 2007.
Further, hawkish messages delivered by three Fed officials including New York Fed President John Williams last week underscored the U.S. central bank's determination to do what it takes to ease price pressures.
Still, money market participants are pricing in 61% chance of a 25 basis points rate hike in February to 4.5%-4.75%, with a terminal rate of 4.84% in May 2023. FEDWATCH
Data on the labor market and inflation this week will set the investor mood, providing more clues on future rate hikes by the central bank.
At 12:27 p.m. ET, the Dow Jones Industrial Average .DJI was down 76.26 points, or 0.23%, at 32,844.20, the S&P 500 .SPX was down 23.98 points, or 0.62%, at 3,828.38, and the Nasdaq Composite .IXIC was down 133.19 points, or 1.24%, at 10,572.22.
Seven of the 11 major S&P sectors were lower, with consumer discretionary .SPLRCD, communication services .SPLRCL and technology .SPLRCT leading losses.
Meta Platforms META.O fell 2.9% after the European Commission said it could impose a fine of up to 10% of the tech conglomerate's annual global turnover if evidence showed an infringement of the EU's antitrust laws.
L3Harris Technologies Inc LHX.N lost 3.3% after the U.S. defense contractor said it would buy hypersonic engine manufacturer Aerojet Rocketdyne Holdings Inc AJRD.N for $4.7 billion. Aerojet added 1.6%.
Shares of casino operatorsMelco Resorts & Entertainment MLCO.O, Las Vegas Sands Corp LVS.Nand Wynn Resorts WYNN.O fell in the range of 1.5% to 10.5% after Macau said on Friday six casino firms will invest around $15 billion as part of new 10-year contracts they signed to operate in the world's biggest gambling hub.
Declining issues outnumbered advancers for a 2.10-to-1 ratio on the NYSE and 2.35-to-1 ratio on the Nasdaq.
The S&P index recorded five new 52-week highs and 15 new lows, while the Nasdaq recorded 42 new highs and 335 new lows.
(Reporting by Shubham Batra, Johann M Cherian and Sruthi Shankar in Bengaluru; Editing by Saumyadeb Chakrabarty and Maju Samuel)
((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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Market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O fell more than 1% on Monday, weighed down by rising Treasury yields. By Sruthi Shankar and Johann M Cherian Dec 19 (Reuters) - U.S. stock indexes fell on Monday, led by shares of Tesla and other megapcap companies, as investors feared that the Federal Reserve's monetary policy tightening campaign could push the U.S. economy into a recession. US/ Tesla Inc TSLA.O fell 1.6%, reversing strong premarket gains in the wake of a Twitter poll that showed majority of users voted for Elon Musk to step down as chief executive of the social media platform.
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Market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O fell more than 1% on Monday, weighed down by rising Treasury yields. By Sruthi Shankar and Johann M Cherian Dec 19 (Reuters) - U.S. stock indexes fell on Monday, led by shares of Tesla and other megapcap companies, as investors feared that the Federal Reserve's monetary policy tightening campaign could push the U.S. economy into a recession. The benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC lost over 2% each last week after Fed Chair Jerome Powell signaled more policy tightening, and the central bank projected that interest rates would top the 5% mark in 2023, a level not seen since 2007.
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Market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O fell more than 1% on Monday, weighed down by rising Treasury yields. By Sruthi Shankar and Johann M Cherian Dec 19 (Reuters) - U.S. stock indexes fell on Monday, led by shares of Tesla and other megapcap companies, as investors feared that the Federal Reserve's monetary policy tightening campaign could push the U.S. economy into a recession. The benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC lost over 2% each last week after Fed Chair Jerome Powell signaled more policy tightening, and the central bank projected that interest rates would top the 5% mark in 2023, a level not seen since 2007.
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Market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O fell more than 1% on Monday, weighed down by rising Treasury yields. By Sruthi Shankar and Johann M Cherian Dec 19 (Reuters) - U.S. stock indexes fell on Monday, led by shares of Tesla and other megapcap companies, as investors feared that the Federal Reserve's monetary policy tightening campaign could push the U.S. economy into a recession. Still, money market participants are pricing in 61% chance of a 25 basis points rate hike in February to 4.5%-4.75%, with a terminal rate of 4.84% in May 2023.
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17956.0
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2022-12-19 00:00:00 UTC
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Unusual Options Activity in Apple, Home Depot and 8 Other Stocks
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AAPL
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https://www.nasdaq.com/articles/unusual-options-activity-in-apple-home-depot-and-8-other-stocks
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nan
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nan
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Many investors brush off unusual options activity, but others like to “follow the flow.” When large investors — like hedge funds for example — make big moves in the options world, it shows up in a very interesting way. We refer to this as “unusual options activity” and it serves as a way to see what the big investors are doing.
Luckily there’s a leaderboard of options activity for both calls and puts and it helps us track all of the outsized volume.
There’s actually a leaderboard for ETFs too.
With that in mind, let’s look at the stocks that stuck out the most on the call side and the put side.
Apple (AAPL)
Starting with the biggest of them all, we have Apple (US:AAPL). The stock recently hit a one-month low, but it still commands a market cap in excess of $2.1 trillion.
Perhaps because it’s hitting new recent lows, someone appears to be loading up on protection. That’s as a series of put-buying hit the tape on Friday, Dec. 16th.
That’s as more than $50 million in premium was paid for the January 2023 $170 puts, which were more than $30 in-the-money. At the same time, $15.5 million was paid for the January 2023 $230 puts.
That said, there was an absolute flurry of heavy options activity in the January puts, so it could be part of a more complicated spread. Let’s also not forget that it was “quad-witch” expiration on Friday and a lot of this action could be a result of that.
Gilead Sciences (GILD)
Coming in at No. 1 on the unusual options leaderboard this week, Gilead Sciences (US:GILD) made a splash as one bullish trader was lighting up the January 2023 $62.5 calls. Over a span of several purchases, they bought almost $12 million worth of the calls, which expire in just over one month from now.
With the stock trading at $88 at the time, this was a deep-in-the-money play. At the same time, someone was busy buying even more than that, gobbling up millions of dollars worth of the $65 calls that expired on Dec. 16th.
Merck (MRK)
Showing up as No. 2 on this week's leaderboard, Merck (US:MRK) turned a few heads as select healthcare stocks continue to perform well.
That’s as someone paid more than $15 million for the January 2023 $90 calls. At the time, Merck stock was trading near $111 a share, putting these calls deep-in-the-money.
The trade came on Dec. 13th, just one day before the stock hit new all-time highs. This looks like a bullish bet on the trend continuing, potentially into year-end.
Home Depot (HD)
Home Depot (US:HD) comes in at No. 3 on this week’s leaderboard. That’s after a bullish put trade hit the tape on Dec. 15th. Shortly after noon, $4.4 million in put premium was collected by selling the February $290 puts, while shares were trading near $325.
About 20 minutes before that, the same puts were sold, collecting more than $2.57 million in premium. In total, almost $7 million in premium was collected for this trade.
Taiwan Semiconductor (TSM)
Often overlooked for Nvidia (US:NVDA), Intel (US:INTC) and other more well-known semiconductor companies, investors seem to forget Taiwan Semiconductor (US:TSM) is worth more than $400 billion.
Further, Warren Buffett has been a buyer of this stock.
With just two days until expiration, someone scooped up almost $5 million in the Dec. 16th $65 calls. The calls were deep-in-the-money, with shares trading above $80 at the time.
Morgan Stanley (MS)
Morgan Stanley (US:MS) is the only bank stock that made the list and comes after someone made a long-dated bullish bet.
That’s as one trader bought $3.19 million worth of the January 2025 $95 calls. Those calls were slightly out-of-the-money with Morgan Stanley trading at $92.65 at the time, and expire in more than 760 days.
Phillip Morris (PM)
Phillip Morris (US:PM) came in at No. 7 on this week's leaderboard after one trader made a bullish put trade.
With shares trading at roughly $100, one trader sold $2.62 million worth of the March $90 puts.
Bristol-Myers Squibb (BMY)
Like Merck, Bristol-Myers Squibb (US:BMY) recently hit new all-time highs this month, but the stock has pulled back hard over the last few weeks. Shares have fallen about 10% while declining in 8 of the past 10 sessions. The two “up days” in that stretch came on gains of just 0.01% and 0.08%, respectively.
One trader believes that pullback is an opportunity on the long side.
On Dec. 15th, they sold $569,000 worth of the February $72.50 puts, which were slightly out-of-the-money as BMY stock was trading at $76.
A day later, someone bought almost $170,000 worth of the $75 calls expiring on Jan. 6th, so they are looking for a bounce as well.
Walmart (WMT)
Like Bristol-Myers Squibb, traders are looking for a bullish opportunity in Walmart (US:WMT) after the recent pullback.
That’s as one trader collected $510,000 in premium for selling the September $125 puts. These puts were far out-of-the-money and currently expire in more than 120 days.
Coca-Cola (KO)
Last but not least, we have Coca-Cola (US:KO), which also had bullish put selling taking place this week.
Someone sold over $518,000 worth of the March $65 puts. Expiring in about 90 days, these puts were slightly in-the-money.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Starting with the biggest of them all, we have Apple (US:AAPL). That said, there was an absolute flurry of heavy options activity in the January puts, so it could be part of a more complicated spread. 1 on the unusual options leaderboard this week, Gilead Sciences (US:GILD) made a splash as one bullish trader was lighting up the January 2023 $62.5 calls.
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Apple (AAPL) Starting with the biggest of them all, we have Apple (US:AAPL). 1 on the unusual options leaderboard this week, Gilead Sciences (US:GILD) made a splash as one bullish trader was lighting up the January 2023 $62.5 calls. Shortly after noon, $4.4 million in put premium was collected by selling the February $290 puts, while shares were trading near $325.
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Apple (AAPL) Starting with the biggest of them all, we have Apple (US:AAPL). At the time, Merck stock was trading near $111 a share, putting these calls deep-in-the-money. Shortly after noon, $4.4 million in put premium was collected by selling the February $290 puts, while shares were trading near $325.
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Apple (AAPL) Starting with the biggest of them all, we have Apple (US:AAPL). 1 on the unusual options leaderboard this week, Gilead Sciences (US:GILD) made a splash as one bullish trader was lighting up the January 2023 $62.5 calls. At the time, Merck stock was trading near $111 a share, putting these calls deep-in-the-money.
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17957.0
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2022-12-19 00:00:00 UTC
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US STOCKS-Wall Street falls as recession worries persist
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-falls-as-recession-worries-persist-0
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nan
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nan
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By Sinéad Carew and Sruthi Shankar
Dec 19 (Reuters) - Wall Street equities were in the red on Monday with Nasdaq leading declines as investors worried the Federal Reserve's monetary policy tightening campaign could push the U.S. economy into a recession.
The three major U.S. stock indexes were on track for the fourth straight day of declines since Wednesday, Fed Chair Jerome Powell took a more hawkish tone than expected when the central bank raised interest rates. Powell promised further increases even as weak data showed signs of a weakening economy.
The S&P 500 .SPX, the Dow Industrials .DJI and the Nasdaq have sold off sharply for December, on track their biggest annual declines since the 2008 financial crisis.
With no big earnings reports or economic data on Monday, investors focused on fears about the economy and interest rates, according to Melissa Brown, Global Head of Applied Research at Qontigo in New York.
"It's a knife edge between whether we're going to teeter into a recession or have a soft landing. Is the Fed acting appropriately?" said Brown who also noted that moves may be exaggerated as many investors take vacation around the end-of-year holidays.
"Investors have not necessarily changed their view in aggregate but those who have are driving the market right now and driving bigger changes in stock prices because of low trading volume," she said.
By 2:27 p.m. ET (1927 GMT), the Dow Jones Industrial Average .DJI fell 278.55 points, or 0.85%, to 32,641.91, the S&P 500 .SPX lost 45.88 points, or 1.19%, to 3,806.48 and the Nasdaq Composite .IXIC dropped 175.96 points, or 1.64%, to 10,529.45.
The biggest sector decliners on the day were communications services .SPLRCL, technology .SPLRCT and consumer discretionary .SPLRCD. The strongest sector was energy .SPNY, which was last down 0.4%.
Market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O created some of the biggest drags on the market.
Trading in Tesla Inc TSLA.Owas volatile with the electric carmaker's stock last down 0.5% after falling as much as 2.8% during the session following a Twitter poll that showed a majority of respondents want Tesla Chief Executive Elon Musk to step down as CEO of the social media platform.
Meta Platforms META.O was down 3.9% after the European Commission said it could impose a fine of up to 10% of the tech conglomerate's annual global turnover if evidence showed an infringement of the EU's antitrust laws.
L3Harris Technologies Inc LHX.N was down 2.8% after the U.S. defense contractor said it would buy hypersonic engine manufacturer Aerojet Rocketdyne Holdings Inc AJRD.N for $4.7 billion. Aerojet added 1.5%.
Shares of casino operatorMelco Resorts & EntertainmentMLCO.O were down more than 9%; Las Vegas Sands Corp LVS.N fall almost 2%; and Wynn Resorts WYNN.O fell more than 5%after Macau said on Friday that six casino firms will invest around $15 billion as part of new 10-year contracts they signed to operate in the world's biggest gambling hub.
Declining issues outnumbered advancing ones on the NYSE by a 3.03-to-1 ratio; on Nasdaq, a 2.81-to-1 ratio favored decliners.
The S&P 500 posted 5 new 52-week highs and 17 new lows; the Nasdaq Composite recorded 45 new highs and 393 new lows.
(Reporting by Sinéad Carew, Sruthi Shankar, Shubham Batra, Johann M Cherian and Sruthi Shankar in Bengaluru; Editing by Saumyadeb Chakrabarty, Maju Samuel and David Gregorio)
((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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Market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O created some of the biggest drags on the market. By Sinéad Carew and Sruthi Shankar Dec 19 (Reuters) - Wall Street equities were in the red on Monday with Nasdaq leading declines as investors worried the Federal Reserve's monetary policy tightening campaign could push the U.S. economy into a recession. The three major U.S. stock indexes were on track for the fourth straight day of declines since Wednesday, Fed Chair Jerome Powell took a more hawkish tone than expected when the central bank raised interest rates.
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Market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O created some of the biggest drags on the market. By Sinéad Carew and Sruthi Shankar Dec 19 (Reuters) - Wall Street equities were in the red on Monday with Nasdaq leading declines as investors worried the Federal Reserve's monetary policy tightening campaign could push the U.S. economy into a recession. The S&P 500 .SPX, the Dow Industrials .DJI and the Nasdaq have sold off sharply for December, on track their biggest annual declines since the 2008 financial crisis.
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Market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O created some of the biggest drags on the market. By Sinéad Carew and Sruthi Shankar Dec 19 (Reuters) - Wall Street equities were in the red on Monday with Nasdaq leading declines as investors worried the Federal Reserve's monetary policy tightening campaign could push the U.S. economy into a recession. The three major U.S. stock indexes were on track for the fourth straight day of declines since Wednesday, Fed Chair Jerome Powell took a more hawkish tone than expected when the central bank raised interest rates.
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Market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O created some of the biggest drags on the market. The three major U.S. stock indexes were on track for the fourth straight day of declines since Wednesday, Fed Chair Jerome Powell took a more hawkish tone than expected when the central bank raised interest rates. "Investors have not necessarily changed their view in aggregate but those who have are driving the market right now and driving bigger changes in stock prices because of low trading volume," she said.
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17958.0
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2022-12-19 00:00:00 UTC
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US STOCKS-Wall Street falls fourth straight day as recession worries nag
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-falls-fourth-straight-day-as-recession-worries-nag
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nan
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By Sinéad Carew and Sruthi Shankar
Dec 19 (Reuters) - Wall Street equities closed lower on Monday for a fourth straight session with Nasdaq leading declines as investors shied away from riskier bets, worried the Federal Reserve's tightening campaign could push the U.S. economy into a recession.
The three major U.S. stock indexes have been pressured since Wednesday, when Fed Chair Jerome Powell took a hawkish tone when the central bank raised interest rates. Powell promised further increases even as weak data showed signs of a weakening economy.
The S&P 500 .SPX, the Dow Jones industrials .DJI and the Nasdaq have sold off sharply for December and are on track for their biggest annual declines since the 2008 financial crisis.
U.S. Treasury yields gained as investors girded for a potential recession in 2023, forsaking stocks for safer options, according to Brian Overby, senior markets strategist at Ally.
"Investors are asking why do I want to take those risks going into 2023 with the Fed's stance still aggressive when I can get such a good yield on the fixed income market place," said Overby.
The lack of big earnings reports or economic data on Monday sharpened investors' focus on economic fears and interest rates, according to Melissa Brown, Global Head of Applied Research at Qontigo in New York.
"Investors have not necessarily changed their view in aggregate but those who have are driving the market right now and driving bigger changes in stock prices because of low trading volume," she said.
According to preliminary data, the S&P 500 .SPX lost 35.20 points, or 0.91%, to end at 3,817.16 points, while the Nasdaq Composite .IXIC lost 156.66 points, or 1.46%, to 10,548.75. The Dow Jones Industrial Average .DJI fell 161.48 points, or 0.49%, to 32,758.98.
Big sector decliners included communications services .SPLRCL, technology .SPLRCT and consumer discretionary .SPLRCD while energy .SPNY outperformed.
Market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O created some of the biggest drags on the market.
Trading in Tesla Inc TSLA.Owas volatile with the electric carmaker falling as much as 2.8% during the session following a Twitter poll that showed a majority of respondents want Tesla Chief Executive Elon Musk to step down as CEO of the social media platform.
Meta Platforms META.O shares fell after the European Commission said it could impose a fine of up to 10% of the tech conglomerate's annual global turnover if evidence showed an infringement of the EU's antitrust laws.
L3Harris Technologies Inc LHX.N lost ground after the U.S. defense contractor said it would buy hypersonic engine manufacturer Aerojet Rocketdyne Holdings Inc AJRD.N for $4.7 billion. Aerojet gained ground.
Shares of casino operatorsMelco Resorts & EntertainmentMLCO.O, Las Vegas Sands Corp LVS.Nand Wynn Resorts WYNN.O fell after Macau said on Friday that six casino firms will invest around $15 billion as part of new 10-year contracts they signed to operate in the world's biggest gambling hub.
(Reporting by Sinéad Carew, Sruthi Shankar, Shubham Batra, Johann M Cherian and Sruthi Shankar in Bengaluru; Editing by Saumyadeb Chakrabarty, Maju Samuel and David Gregorio)
((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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Market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O created some of the biggest drags on the market. By Sinéad Carew and Sruthi Shankar Dec 19 (Reuters) - Wall Street equities closed lower on Monday for a fourth straight session with Nasdaq leading declines as investors shied away from riskier bets, worried the Federal Reserve's tightening campaign could push the U.S. economy into a recession. U.S. Treasury yields gained as investors girded for a potential recession in 2023, forsaking stocks for safer options, according to Brian Overby, senior markets strategist at Ally.
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Market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O created some of the biggest drags on the market. The lack of big earnings reports or economic data on Monday sharpened investors' focus on economic fears and interest rates, according to Melissa Brown, Global Head of Applied Research at Qontigo in New York. The Dow Jones Industrial Average .DJI fell 161.48 points, or 0.49%, to 32,758.98.
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Market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O created some of the biggest drags on the market. By Sinéad Carew and Sruthi Shankar Dec 19 (Reuters) - Wall Street equities closed lower on Monday for a fourth straight session with Nasdaq leading declines as investors shied away from riskier bets, worried the Federal Reserve's tightening campaign could push the U.S. economy into a recession. According to preliminary data, the S&P 500 .SPX lost 35.20 points, or 0.91%, to end at 3,817.16 points, while the Nasdaq Composite .IXIC lost 156.66 points, or 1.46%, to 10,548.75.
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Market heavyweights such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O created some of the biggest drags on the market. U.S. Treasury yields gained as investors girded for a potential recession in 2023, forsaking stocks for safer options, according to Brian Overby, senior markets strategist at Ally. The Dow Jones Industrial Average .DJI fell 161.48 points, or 0.49%, to 32,758.98.
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17959.0
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2022-12-19 00:00:00 UTC
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Apple finds a happy home in India
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AAPL
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https://www.nasdaq.com/articles/apple-finds-a-happy-home-in-india
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nan
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nan
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Reuters
Reuters
BENGALURU (Reuters Breakingviews) - India is taking a bite out of Apple’s supply chains, and it will end up at their core too.
Helped by generous subsidies, Taiwanese Apple suppliers are starting to churn out more iPhones in India. Wistron was the first to set up a factory to make the devices in 2017 around the technology hub Bengaluru. Foxconn, formally known as Hon Hai Precision Industry, and Pegatron followed. Analysts at JPMorgan reckon India will have 6% of iPhone manufacturing capacity in 2022, and the rest will remain in China.
Shipment numbers are small, but India is at an inflection point. The newest iPhones used to be made in China first, with Indian factories only following with the same models some six to nine months later. This gap has narrowed substantially with the iPhone 14 and it could vanish over the next few years. JPMorgan reckons India might produce one in four iPhones by 2025. The product delivered $205 billion of revenue for Apple in the year to September, 52% of the company’s net sales.
Trade tension between Beijing and Washington, and Covid-related supply chain snarls, are merely an accelerator. India has used hefty import taxes as a stick to get companies to set up factories on its shores: The country is no longer a net importer of mobile phones because budget handset makers like China’s Xiaomi produce enough cheap devices locally to cater to booming domestic demand. New Delhi’s more recent, generous production-linked incentives are designed to address the premium market for products costing over 15,000 rupees, about $180.
Incentives and other subsidies partially compensate for inefficiencies in India, where demand for pricier devices is slowly picking up. A phone that costs $100 to make could be produced for $80 in China, $89 in Vietnam and $92 in India, factoring in local subsidies and other expenses, per the India Cellular & Electronics Association. Apple will continue to rely on China too because India is years away from making key components, including the finished circuit board that can comprise half the value of parts that go into handsets. HDFC Securities estimates that for an average smartphone, as little as 14% of the value is added in India.
It’s the start of a bigger shift. Top exporters like South Korea and China focused on assembling electronics using imported items before trying to add more value. Whether or not India gets that far, Apple at least gets a happy new home.
Follow @PranavKiranBV on Twitter
CONTEXT NEWS
Taiwan's Foxconn said on Dec. 8 that its Singapore unit had invested $500 million in its India affiliate.
Foxconn plans to quadruple the workforce at its iPhone factory in India over two years, Reuters reported on Nov. 11, citing two government officials with knowledge of the matter. It plans to boost the workforce at its plant in southern India to 70,000 by adding 53,000 more workers over the next two years, the report said.
(Editing by Una Galani and Amanda Gomez)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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New Delhi’s more recent, generous production-linked incentives are designed to address the premium market for products costing over 15,000 rupees, about $180. Apple will continue to rely on China too because India is years away from making key components, including the finished circuit board that can comprise half the value of parts that go into handsets. Foxconn plans to quadruple the workforce at its iPhone factory in India over two years, Reuters reported on Nov. 11, citing two government officials with knowledge of the matter.
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JPMorgan reckons India might produce one in four iPhones by 2025. India has used hefty import taxes as a stick to get companies to set up factories on its shores: The country is no longer a net importer of mobile phones because budget handset makers like China’s Xiaomi produce enough cheap devices locally to cater to booming domestic demand. Foxconn plans to quadruple the workforce at its iPhone factory in India over two years, Reuters reported on Nov. 11, citing two government officials with knowledge of the matter.
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India has used hefty import taxes as a stick to get companies to set up factories on its shores: The country is no longer a net importer of mobile phones because budget handset makers like China’s Xiaomi produce enough cheap devices locally to cater to booming domestic demand. A phone that costs $100 to make could be produced for $80 in China, $89 in Vietnam and $92 in India, factoring in local subsidies and other expenses, per the India Cellular & Electronics Association. Foxconn plans to quadruple the workforce at its iPhone factory in India over two years, Reuters reported on Nov. 11, citing two government officials with knowledge of the matter.
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BENGALURU (Reuters Breakingviews) - India is taking a bite out of Apple’s supply chains, and it will end up at their core too. JPMorgan reckons India might produce one in four iPhones by 2025. India has used hefty import taxes as a stick to get companies to set up factories on its shores: The country is no longer a net importer of mobile phones because budget handset makers like China’s Xiaomi produce enough cheap devices locally to cater to booming domestic demand.
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17960.0
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2022-12-19 00:00:00 UTC
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Warren Buffett Has Spent $136 Billion Buying These 4 Stocks Since 2016
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AAPL
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https://www.nasdaq.com/articles/warren-buffett-has-spent-%24136-billion-buying-these-4-stocks-since-2016
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nan
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When stacked up next to most money managers, Warren Buffett's track record is almost otherworldly. Since taking the helm as CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) in 1965, he's overseen the creation of more than $665 billion in market value for shareholders, as well as lapped the benchmark S&P 500 120 times over, with an aggregate return of 3,641,613% for the company's Class A shares (BRK.A) through the end of 2021.
Time has certainly been an ally for the Oracle of Omaha, with patience and his love of dividend-paying companies playing critical roles in his success as an investor. But another key to this success that's often overlooked is Buffett's penchant for portfolio concentration. Even though Berkshire Hathaway holds stakes in around four dozen securities, the lion's share of his investments can be traced to just a few positions.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
This holds true with Warren Buffett's buying activity, too. Since 2016, the Oracle of Omaha and his investment team have put an aggregate of $136 billion to work in just four stocks.
Chevron: $20.9 billion (estimated)
The first stock Warren Buffett has absolutely piled into recently is integrated oil and gas company Chevron (NYSE: CVX). Based on estimated cost basis data from 13F aggregator WhaleWisdom.com, the Oracle of Omaha and his team have spent approximately $20.9 billion buying shares of Chevron since the fourth quarter of 2020.
Though Buffett is known to build Berkshire Hathaway's positions over time, he certainly wouldn't plow $20.9 billion into a single energy stock if he didn't foresee crude oil and natural gas prices remaining elevated. While a domestic recession could weigh on that thesis in the short term, a globally broken energy supply chain would seem to jive with Buffett's likely thesis that energy commodity prices will remain above average for years.
One of the biggest catalysts for higher oil and gas prices is the COVID-19 pandemic. Even though the pandemic caused energy commodity demand to fall off a cliff in 2020, it's the reduced capital investments that followed which will make increasing global supply difficult.
The other factor at work here is Russia's invasion of Ukraine in February. With Europe banning the import of most Russian oil, it sets the stage for possible supply shortages throughout the region this winter and well into 2023. Simple supply-and-demand economics would suggest a tight supply market favors higher prices for oil and natural gas. That's good news for Chevron's drilling segment, which generates its juiciest margins.
As a final note, Chevron is an integrated operator, which means that in addition to drilling and exploration, it operates pipelines, chemical plants, and refineries. These assets help hedge Chevron against energy commodity price weakness.
Apple: $33.3 billion (estimated)
This probably comes as little surprise, but Warren Buffett and his team have been buying shares of tech stock Apple (NASDAQ: AAPL) hand over fist since the first quarter of 2016. All told, Berkshire Hathaway's cost basis in Apple is an estimated $33.3 billion. Seeing as how this position was worth over $122 billion when the closing bell rang on Dec. 15, 2022, it's safe to say the Oracle of Omaha has done pretty well for himself and his company's shareholders.
In Buffett's most recent letter to shareholders, he described Apple as one of Berkshire Hathaway's "four giants." It's a company that's fueled its sales and profit growth with innovation. Even after more than a decade of smartphone competition, Apple's iPhone is far and away the most popular smartphone in the United States. And let's be clear, it doesn't hurt that Apple's customer base tends to be extremely loyal to the brand.
Even though physical products still account for a majority of Apple's annual sales, subscription services are becoming an increasingly important revenue and profit driver. Steadily transforming Apple into a services provider should lead to higher operating margins over time, as well as lessen the revenue ebbs and flows associated with iPhone replacement/upgrade cycles.
Warren Buffett also absolutely loves Apple's capital return program. Aside from having one of the largest nominal-dollar dividend distributions on the planet among publicly traded companies, Apple has repurchased a whopping $554 billion worth of its own stock in less than 10 years.
Image source: Getty Images.
Occidental Petroleum: $19 billion (estimated)
Chevron isn't the only energy stock the Oracle of Omaha has been piling into over the past couple of years. Warren Buffett and his investment team have spent a cumulative $19 billion building a position in Occidental Petroleum (NYSE: OXY). This includes an estimated $9 billion spent buying more than 194 million shares of Occidental's common stock in 2022, as well as the $10 billion in Occidental preferred stock Berkshire Hathaway purchased in 2019 that yields 8% annually.
Warren Buffett's reasoning for buying into Occidental Petroleum so aggressively is somewhat similar to Chevron -- though there are unique twists. If the global energy supply chain remains challenged for the next couple of years, drillers like Occidental and Chevron will benefit from higher spot prices.
Although Occidental Petroleum is an integrated oil and gas company like Chevron, more of its revenue is skewed toward its drilling operations. While its downstream assets do help hedge against a downturn in crude oil prices, what Occidental really provides Berkshire Hathaway with is an opportunity for significantly higher operating cash flow if oil prices remain elevated.
The other interesting thing about Occidental Petroleum is its balance sheet. Normally, Warren Buffett avoids businesses that are constrained by large debt loads. But this hasn't been the case with Occidental, which has been buried by debt since acquiring Anadarko Petroleum in 2019. With crude oil well above its historical average, Occidental has been able to reduce its net debt from $35.4 billion to $20.5 billion in 15 months (ended Sept. 30, 2022), as well as reinstate a share buyback program.
Berkshire Hathaway: $63.1 billion
However, the stock Warren Buffett has spent the most buying since 2016 began is none other than his own company, Berkshire Hathaway.
Prior to mid-July 2018, Warren Buffett and executive vice chairman Charlie Munger had their hands tied with regard to share buybacks. The only way to repurchase shares of Berkshire stock is if they fell to or below 120% of book value. But at no point in the previous half-decade did that happen, which led to no opportunity for share buybacks.
In mid-July 2018, Berkshire Hathaway's board changed the parameters outlining share buybacks to give Buffett and Munger more liberty to take action. As long as the company has at least $30 billion in cash and U.S. Treasuries on its balance sheet, and both Buffett and Munger agree the company is trading below its intrinsic value, share repurchases can continue without any ceiling. In a little over four years, Buffett and Munger have overseen a jaw-dropping $63.1 billion in Berkshire Hathaway share buybacks.
For a company like Berkshire Hathaway that steadily grows its net income over time, reducing its outstanding share count via buybacks can provide a boost to earnings per share and make the company's stock more fundamentally attractive to investors.
Putting more than $63 billion to work via buybacks is also a testament to Warren Buffett's willingness to bet on himself and the long-term ethos he's created at Berkshire Hathaway over nearly six decades. With an investment portfolio that's packed with cyclical businesses, patience very much favors Buffett's approach.
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*Stock Advisor returns as of December 1, 2022
Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple 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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Apple: $33.3 billion (estimated) This probably comes as little surprise, but Warren Buffett and his team have been buying shares of tech stock Apple (NASDAQ: AAPL) hand over fist since the first quarter of 2016. Based on estimated cost basis data from 13F aggregator WhaleWisdom.com, the Oracle of Omaha and his team have spent approximately $20.9 billion buying shares of Chevron since the fourth quarter of 2020. Steadily transforming Apple into a services provider should lead to higher operating margins over time, as well as lessen the revenue ebbs and flows associated with iPhone replacement/upgrade cycles.
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Apple: $33.3 billion (estimated) This probably comes as little surprise, but Warren Buffett and his team have been buying shares of tech stock Apple (NASDAQ: AAPL) hand over fist since the first quarter of 2016. Chevron: $20.9 billion (estimated) The first stock Warren Buffett has absolutely piled into recently is integrated oil and gas company Chevron (NYSE: CVX). While its downstream assets do help hedge against a downturn in crude oil prices, what Occidental really provides Berkshire Hathaway with is an opportunity for significantly higher operating cash flow if oil prices remain elevated.
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Apple: $33.3 billion (estimated) This probably comes as little surprise, but Warren Buffett and his team have been buying shares of tech stock Apple (NASDAQ: AAPL) hand over fist since the first quarter of 2016. This includes an estimated $9 billion spent buying more than 194 million shares of Occidental's common stock in 2022, as well as the $10 billion in Occidental preferred stock Berkshire Hathaway purchased in 2019 that yields 8% annually. Berkshire Hathaway: $63.1 billion However, the stock Warren Buffett has spent the most buying since 2016 began is none other than his own company, Berkshire Hathaway.
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Apple: $33.3 billion (estimated) This probably comes as little surprise, but Warren Buffett and his team have been buying shares of tech stock Apple (NASDAQ: AAPL) hand over fist since the first quarter of 2016. Berkshire Hathaway CEO Warren Buffett. Although Occidental Petroleum is an integrated oil and gas company like Chevron, more of its revenue is skewed toward its drilling operations.
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17961.0
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2022-12-19 00:00:00 UTC
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Foxconn fine for unauthorised China investment likely to be imposed soon - source
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AAPL
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https://www.nasdaq.com/articles/foxconn-fine-for-unauthorised-china-investment-likely-to-be-imposed-soon-source-0
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nan
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nan
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Adds Foxconn share movement
TAIPEI, Dec 19 (Reuters) - Foxconn 2317.TW, the world's largest contract electronics maker, is likely to be fined soon by Taiwan's government for an unauthorised investment in a Chinese chip maker, a person with direct knowledge of the situation said on Monday.
Taiwan, which Beijing views as sovereign Chinese territory, has turned a wary eye on China's ambition to boost its semiconductor industry and is tightening legislation to prevent what it says is China stealing its chip technology.
Foxconn, a major Apple Inc AAPL.O supplier and iPhone maker, disclosed in July it was a shareholder in embattled Chinese chip conglomerate Tsinghua Unigroup, but said late on Friday it would be selling the stake. Taiwan said on Saturday it would fine Foxconn over the investment.
Taiwan's government, which needs to clear all outbound investments, had not approved the deal. Taipei also prohibits companies from building their most advanced chip foundries in China to ensure they do not site their best technology offshore.
The person familiar with the situation told Reuters that the Economy Ministry would contact Foxconn on Monday to confirm the equity sale.
"Even though the investment was later pulled, the fact has already been established that they invested first, and they will be fined," said the source, who was not authorised to speak to the media.
"It should not take too long for Hon Hai to be punished," the source added, referring to Foxconn's formal name, Hon Hai Precision Industry Co Ltd.
Reuters has previously reported that the company could be fined up to T$25 million ($813,749).
Foxconn declined to comment. Its shares closed up 1% on Monday, outperforming the broader market .TWII, which ended 0.7% lower.
Tsinghua Unigroup has not responded to a request for comment on the investment being pulled.
Taiwanese law states the government can prohibit investment in China "based on the consideration of national security and industry development". Violators of the law can be fined repeatedly until corrections are made.
Foxconn has been seeking to acquire chip plants globally as a worldwide chip shortage rattles producers of goods from cars to electronics. It is keen to make auto chips in particular as it expands into the electric vehicle market.
($1 = 30.7220 Taiwan dollars)
(Reporting by Jeanny Kao and Yimou Lee; Writing by Ben Blanchard; Editing by Kenneth Maxwell and Savio D'Souza)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Foxconn, a major Apple Inc AAPL.O supplier and iPhone maker, disclosed in July it was a shareholder in embattled Chinese chip conglomerate Tsinghua Unigroup, but said late on Friday it would be selling the stake. The person familiar with the situation told Reuters that the Economy Ministry would contact Foxconn on Monday to confirm the equity sale. Taiwanese law states the government can prohibit investment in China "based on the consideration of national security and industry development".
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Foxconn, a major Apple Inc AAPL.O supplier and iPhone maker, disclosed in July it was a shareholder in embattled Chinese chip conglomerate Tsinghua Unigroup, but said late on Friday it would be selling the stake. Adds Foxconn share movement TAIPEI, Dec 19 (Reuters) - Foxconn 2317.TW, the world's largest contract electronics maker, is likely to be fined soon by Taiwan's government for an unauthorised investment in a Chinese chip maker, a person with direct knowledge of the situation said on Monday. "It should not take too long for Hon Hai to be punished," the source added, referring to Foxconn's formal name, Hon Hai Precision Industry Co Ltd. Reuters has previously reported that the company could be fined up to T$25 million ($813,749).
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Foxconn, a major Apple Inc AAPL.O supplier and iPhone maker, disclosed in July it was a shareholder in embattled Chinese chip conglomerate Tsinghua Unigroup, but said late on Friday it would be selling the stake. Adds Foxconn share movement TAIPEI, Dec 19 (Reuters) - Foxconn 2317.TW, the world's largest contract electronics maker, is likely to be fined soon by Taiwan's government for an unauthorised investment in a Chinese chip maker, a person with direct knowledge of the situation said on Monday. Taiwan, which Beijing views as sovereign Chinese territory, has turned a wary eye on China's ambition to boost its semiconductor industry and is tightening legislation to prevent what it says is China stealing its chip technology.
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Foxconn, a major Apple Inc AAPL.O supplier and iPhone maker, disclosed in July it was a shareholder in embattled Chinese chip conglomerate Tsinghua Unigroup, but said late on Friday it would be selling the stake. Adds Foxconn share movement TAIPEI, Dec 19 (Reuters) - Foxconn 2317.TW, the world's largest contract electronics maker, is likely to be fined soon by Taiwan's government for an unauthorised investment in a Chinese chip maker, a person with direct knowledge of the situation said on Monday. Taiwan said on Saturday it would fine Foxconn over the investment.
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17962.0
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2022-12-19 00:00:00 UTC
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Should First Trust Rising Dividend Achievers ETF (RDVY) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-first-trust-rising-dividend-achievers-etf-rdvy-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 Value segment of the US equity market, look no further than the First Trust Rising Dividend Achievers ETF (RDVY), a passively managed exchange traded fund launched on 01/07/2014.
The fund is sponsored by First Trust Advisors. It has amassed assets over $7.95 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
While value stocks have lower than average price-to-earnings and price-to-book ratios, they also have lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.50%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.73%.
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 Financials sector--about 35.70% of the portfolio. Information Technology and Healthcare round out the top three.
Looking at individual holdings, Williams-Sonoma, Inc. (WSM) accounts for about 2.46% of total assets, followed by Jefferies Financial Group Inc. (JEF) and Apple Inc. (AAPL).
The top 10 holdings account for about 22.08% of total assets under management.
Performance and Risk
RDVY seeks to match the performance of the NASDAQ US Rising Dividend Achievers Index before fees and expenses. The NASDAQ US Rising Dividend Achievers Index is designed to provide access to a diversified portfolio of companies with a history of paying dividends.
The ETF has lost about -14.44% so far this year and is down about -12.17% in the last one year (as of 12/19/2022). In the past 52-week period, it has traded between $38.88 and $52.79.
The ETF has a beta of 1.14 and standard deviation of 29.64% for the trailing three-year period, making it a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.
Alternatives
First Trust Rising Dividend Achievers 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, RDVY is a sufficient option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $52.93 billion in assets, Vanguard Value ETF has $103.29 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.
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First Trust Rising Dividend Achievers ETF (RDVY): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Jefferies Financial Group Inc. (JEF) : Free Stock Analysis Report
WilliamsSonoma, Inc. (WSM) : 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, Williams-Sonoma, Inc. (WSM) accounts for about 2.46% of total assets, followed by Jefferies Financial Group Inc. (JEF) and Apple Inc. (AAPL). Click to get this free report First Trust Rising Dividend Achievers ETF (RDVY): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Jefferies Financial Group Inc. (JEF) : Free Stock Analysis Report WilliamsSonoma, Inc. (WSM) : 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. If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the First Trust Rising Dividend Achievers ETF (RDVY), a passively managed exchange traded fund launched on 01/07/2014.
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Click to get this free report First Trust Rising Dividend Achievers ETF (RDVY): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Jefferies Financial Group Inc. (JEF) : Free Stock Analysis Report WilliamsSonoma, Inc. (WSM) : 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, Williams-Sonoma, Inc. (WSM) accounts for about 2.46% of total assets, followed by Jefferies Financial Group Inc. (JEF) and Apple Inc. (AAPL). If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the First Trust Rising Dividend Achievers ETF (RDVY), a passively managed exchange traded fund launched on 01/07/2014.
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Click to get this free report First Trust Rising Dividend Achievers ETF (RDVY): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Jefferies Financial Group Inc. (JEF) : Free Stock Analysis Report WilliamsSonoma, Inc. (WSM) : 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, Williams-Sonoma, Inc. (WSM) accounts for about 2.46% of total assets, followed by Jefferies Financial Group Inc. (JEF) and Apple Inc. (AAPL). Alternatives First Trust Rising Dividend Achievers 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, Williams-Sonoma, Inc. (WSM) accounts for about 2.46% of total assets, followed by Jefferies Financial Group Inc. (JEF) and Apple Inc. (AAPL). Click to get this free report First Trust Rising Dividend Achievers ETF (RDVY): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Jefferies Financial Group Inc. (JEF) : Free Stock Analysis Report WilliamsSonoma, Inc. (WSM) : 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. If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the First Trust Rising Dividend Achievers ETF (RDVY), a passively managed exchange traded fund launched on 01/07/2014.
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17963.0
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2022-12-19 00:00:00 UTC
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Alphabet (GOOGL) Boosts Wear OS Platform With KoruLab Takeover
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AAPL
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https://www.nasdaq.com/articles/alphabet-googl-boosts-wear-os-platform-with-korulab-takeover
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nan
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nan
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Alphabet’s GOOGL division Google is leaving no stone unturned to strengthen its Wear OS platform on the back of strategic acquisitions.
This is evident from the company’s recent acquisition of KoruLab. Google strives to leverage KoruLab’s low-power user interface expertise to enhance the battery life of its wearables.
On the back of KoruLab’s interface expertise, Google has added strength to its Wear OS platform.
With the help of the recent feature, Alphabet aims to provide an enhanced experience to smartwatch users.
This is likely to expand its reach among target consumers which will contribute well to its top-line growth.
Alphabet Inc. Price
Alphabet Inc. price | Alphabet Inc. Quote
Growing Smartwatch Efforts
Apart from the recent move, Alphabet added Google Maps to Wear OS watches. Also, its deepening focus on improving battery life and health features of smartwatches holds promise.
Further, Alphabet introduced the Google Pixel Watch at its I/O developer conference. Notably, the watch runs on Wear OS software and is powered by Fitbit’s technology.
The above-mentioned endeavors are expected to continue helping GOOGL bolster its presence in the booming smartwatch market.
The underlined market’s growth is attributed to the rising adoption of smartwatches as it offers numerous customer requirements like time schedules, fitness tracking, music and other features in a single device.
Per a Facts and Factors report, the global smartwatch market is expected to hit $97.5 billion by 2028, witnessing a CAGR of 21.5% from 2022 to 2028.
Competitive Scenario
However, Alphabet faces intense competitive pressure from Apple AAPL and Garmin GRMN who are consistently working toward expanding their footprint in the growing smartwatch market.
Apple offers Apple Watch Ultra which provides battery life up to 36 hours. It uses low power mode to offer multi-day adventure battery life of 60 hours. Moreover, Apple Watch offers all-day battery life of 18 hours which provide users with 90 time checks, 90 notifications, 45 minutes of app use and a 60-minute workout with music playback from Apple Watch via Bluetooth.
Shares of AAPL have etched down 24.2% in the year-to-date period.
Garmin fitness and outdoor smartwatches boast a long week battery life. Garmin Approach watch series battery life ranges from 14 days to 10 weeks. Garmin Enduro smartwatch offers 50 days of life without battery charge while 65 days with Solar. Garmin Forerunner series provides 1-2 weeks of battery life.
Shares of GRMN have moved 33.1% south in the year-to-date period.
Zacks Rank & Stock to Consider
Currently, Alphabet carries a Zacks Rank #4 (Sell).
Investors interested in the broader technology sector can consider Asure Software ASUR, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Asure Software has gained 12.5% in the year-to-date period. The long-term earnings growth rate for ASUR is currently projected at 23%.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Garmin Ltd. (GRMN) : Free Stock Analysis Report
Asure Software Inc (ASUR) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Competitive Scenario However, Alphabet faces intense competitive pressure from Apple AAPL and Garmin GRMN who are consistently working toward expanding their footprint in the growing smartwatch market. Shares of AAPL have etched down 24.2% in the year-to-date period. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Garmin Ltd. (GRMN) : Free Stock Analysis Report Asure Software Inc (ASUR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Garmin Ltd. (GRMN) : Free Stock Analysis Report Asure Software Inc (ASUR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Competitive Scenario However, Alphabet faces intense competitive pressure from Apple AAPL and Garmin GRMN who are consistently working toward expanding their footprint in the growing smartwatch market. Shares of AAPL have etched down 24.2% in the year-to-date period.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Garmin Ltd. (GRMN) : Free Stock Analysis Report Asure Software Inc (ASUR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Competitive Scenario However, Alphabet faces intense competitive pressure from Apple AAPL and Garmin GRMN who are consistently working toward expanding their footprint in the growing smartwatch market. Shares of AAPL have etched down 24.2% in the year-to-date period.
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Competitive Scenario However, Alphabet faces intense competitive pressure from Apple AAPL and Garmin GRMN who are consistently working toward expanding their footprint in the growing smartwatch market. Shares of AAPL have etched down 24.2% in the year-to-date period. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Garmin Ltd. (GRMN) : Free Stock Analysis Report Asure Software Inc (ASUR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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17964.0
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2022-12-19 00:00:00 UTC
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The Extremely Rare Warren Buffett Investing Strategy Not to Follow
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AAPL
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https://www.nasdaq.com/articles/the-extremely-rare-warren-buffett-investing-strategy-not-to-follow
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nan
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nan
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Typically, investors will do well following Warren Buffett. The legendary investor has accumulated incredible gains on his investments over the decades. However, there is one strategy I would not recommend to everyday investors.
*Stock prices used were the afternoon prices of Dec. 15, 2022. The video was published on Dec. 18, 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
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool 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.
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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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, Bank of America, and Berkshire Hathaway. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool 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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See the 10 stocks *Stock Advisor returns as of December 1, 2022 Bank of America is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool 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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That's right -- they think these 10 stocks are even better buys. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. His opinions remain his own and are unaffected by The Motley Fool.
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17965.0
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2022-12-19 00:00:00 UTC
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Is Invesco Dynamic Large Cap Growth ETF (PWB) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-invesco-dynamic-large-cap-growth-etf-pwb-a-strong-etf-right-now-4
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nan
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nan
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The Invesco Dynamic Large Cap Growth ETF (PWB) was launched on 03/03/2005, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Growth category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
Because the fund has amassed over $565.75 million, this makes it one of the average sized ETFs in the Style Box - Large Cap Growth. PWB is managed by Invesco. Before fees and expenses, this particular fund seeks to match the performance of the Dynamic Large Cap Growth Intellidex Index.
The Dynamic Large Cap Growth Intellidex Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for PWB are 0.55%, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 0.12%.
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.
This ETF has heaviest allocation in the Information Technology sector - about 51.10% of the portfolio. Healthcare and Industrials round out the top three.
When you look at individual holdings, Tesla Inc (TSLA) accounts for about 4.25% of the fund's total assets, followed by Costco Wholesale Corp (COST) and Apple Inc (AAPL).
Its top 10 holdings account for approximately 35.17% of PWB's total assets under management.
Performance and Risk
The ETF has lost about -25.38% and is down about -22.84% so far this year and in the past one year (as of 12/19/2022), respectively. PWB has traded between $56.26 and $82.12 during this last 52-week period.
The fund has a beta of 1 and standard deviation of 28.21% for the trailing three-year period, which makes PWB a medium risk choice in this particular space. With about 51 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Dynamic Large Cap Growth ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
Vanguard Growth ETF (VUG) tracks CRSP U.S. Large Cap Growth Index and the Invesco QQQ (QQQ) tracks NASDAQ-100 Index. Vanguard Growth ETF has $68.25 billion in assets, Invesco QQQ has $151.76 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large 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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Invesco Dynamic Large Cap Growth ETF (PWB): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When you look at individual holdings, Tesla Inc (TSLA) accounts for about 4.25% of the fund's total assets, followed by Costco Wholesale Corp (COST) and Apple Inc (AAPL). Click to get this free report Invesco Dynamic Large Cap Growth ETF (PWB): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. The Dynamic Large Cap Growth Intellidex Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure.
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Click to get this free report Invesco Dynamic Large Cap Growth ETF (PWB): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Tesla Inc (TSLA) accounts for about 4.25% of the fund's total assets, followed by Costco Wholesale Corp (COST) and Apple Inc (AAPL). Alternatives Invesco Dynamic Large Cap Growth ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Growth segment of the market.
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Click to get this free report Invesco Dynamic Large Cap Growth ETF (PWB): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Tesla Inc (TSLA) accounts for about 4.25% of the fund's total assets, followed by Costco Wholesale Corp (COST) and Apple Inc (AAPL). The Invesco Dynamic Large Cap Growth ETF (PWB) was launched on 03/03/2005, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Growth category of the market.
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When you look at individual holdings, Tesla Inc (TSLA) accounts for about 4.25% of the fund's total assets, followed by Costco Wholesale Corp (COST) and Apple Inc (AAPL). Click to get this free report Invesco Dynamic Large Cap Growth ETF (PWB): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. The Invesco Dynamic Large Cap Growth ETF (PWB) was launched on 03/03/2005, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Growth category of the market.
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17966.0
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2022-12-19 00:00:00 UTC
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Investors Heavily Search Apple Inc. (AAPL): Here is What You Need to Know
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AAPL
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https://www.nasdaq.com/articles/investors-heavily-search-apple-inc.-aapl%3A-here-is-what-you-need-to-know-2
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this maker of iPhones, iPads and other products have returned -11.1%, compared to the Zacks S&P 500 composite's -2.7% change. During this period, the Zacks Computer - Mini computers industry, which Apple falls in, has lost 9.6%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Apple is expected to post earnings of $1.94 per share for the current quarter, representing a year-over-year change of -7.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -3.4%.
The consensus earnings estimate of $6.19 for the current fiscal year indicates a year-over-year change of +1.3%. This estimate has changed -1.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $6.70 indicates a change of +8.3% from what Apple is expected to report a year ago. Over the past month, the estimate has changed -0.9%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Apple is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Apple, the consensus sales estimate for the current quarter of $121.22 billion indicates a year-over-year change of -2.2%. For the current and next fiscal years, $404.04 billion and $427.22 billion estimates indicate +2.5% and +5.7% changes, respectively.
Last Reported Results and Surprise History
Apple reported revenues of $90.15 billion in the last reported quarter, representing a year-over-year change of +8.1%. EPS of $1.29 for the same period compares with $1.24 a year ago.
Compared to the Zacks Consensus Estimate of $88.47 billion, the reported revenues represent a surprise of +1.9%. The EPS surprise was +2.38%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Apple is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Apple. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Special Report: The Top 5 IPOs for Your Portfolio
Today, you have a chance to get in on the ground floor of one of the best investment opportunities of the year. As the world continues to benefit from an ever-evolving internet, a handful of innovative tech companies are on the brink of reaping immense rewards - and you can put yourself in a position to cash in. One is set to disrupt the online communication industry. Brilliantly designed for creating online communities, this stock is poised to explode when made public. With the strength of our economy and record amounts of cash flooding into IPOs, you don’t want to miss this opportunity.
>>See Zacks’ Hottest IPOs Now
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
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) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. For the next fiscal year, the consensus earnings estimate of $6.70 indicates a change of +8.3% from what Apple is expected to report a year ago.
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions.
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. And if earnings estimates go up for a company, the fair value for its stock goes up.
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17967.0
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2022-12-19 00:00:00 UTC
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Meta Platforms (META) Increases User Growth to Boost Prospects
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AAPL
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https://www.nasdaq.com/articles/meta-platforms-meta-increases-user-growth-to-boost-prospects
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Meta Platforms META shares have tumbled 64.5% in the year-to-date period compared with the Zacks Internet – Software industry’s decline of 60%.
Meta’s share price performance reflects bearish sentiments amongst investors as the company expects declining revenues in the fourth quarter of 2022.
Revenues from Family of Apps (99% of total revenues) in the third quarter of 2022, which include Facebook, Instagram, Messenger, WhatsApp and other services, decreased 3.6% year over year to $27.43 billion.
This is due to a decline in its advertisement revenues, which represents 99.3% of Family of Apps revenues. In the third quarter of 2022, advertising revenues decreased 3.7% year over year to $27.24 billion and accounted for 98.3% of third-quarter revenues. The Family of Apps is the primary source of funding for Meta’s lofty metaverse dream, upon which the company is banking its future.
Meta Platforms, Inc. Price and Consensus
Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote
Meta is facing the worst downturn in its operational history. Its ad revenue business is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes.
Apple’s iOS changes have made ad targeting difficult, which has increased the cost of driving outcomes. However, measuring these outcomes is tough.
Also, Meta’s social media platforms are facing legal issues from global authorities due to the lack of user data protection and misuse of data. Back in September 2022, Instagram was slapped with a €405 million fine by Ireland’s data regulators for violating the European Union’s General Data Protection Regulation and failing to protect children’s information.
META, along with its other social media peer Snap SNAP, is facing backlash from users due to child protection issues on the social networking platform.
Snap’s Snapchat platform announced new parental controls for its platform early this year to limit friend suggestions for teen users and protect them from unwanted attention.
Snapchat’s recent initiatives come following allegations that the company has been failing to prevent drug-related content from proliferating its chatting platforms, specifically among its users aged below 18.
In order to deal with child protection and user data protection issues, META has been investing heavily in AI to attract more users to the platform and increase top-line growth to meet its future goals of creating the metaverse upon which the company is banking its future.
Meta Platforms is launching features like protections against malicious links in Facebook messenger and Instagram direct messages using automated systems, Instagram impostor alerts and increased Instagram verified badge specialty.
META also announced the introduction of age verification technology to Facebook Dating in the United States to prevent users under the age of 18 from accessing experiences meant to be enjoyed as adults.
Meta Platforms Investing in AI to Increase Top Line
Meta Platforms is investing heavily in developing AI, supporting the build-up of the metaverse. AI will also help Meta drive revenue growth in its ad business.
META, which currently carries a Zacks Rank #3 (Hold), is banking on its revenue growth in the coming quarters on solid return on investments from its investment in AI and ML and strategic partnerships. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
However, building the metaverse is a collective effort, and as such, Meta is making strategic partnerships with PyTorch co-founder Microsoft MSFT and NVIDIA to develop and architect the required AI models for the metaverse.
Microsoft is bringing new work and productivity tools to Meta Quest Pro and Meta Quest 2 next year. These include apps like Microsoft Windows 365 and Microsoft Teams and the ability to join a Teams meeting from inside Meta Horizons Workrooms, which will help create a seamless working experience in the metaverse.
Meta Platforms has collaborated with NVIDIA to build an AI research supercomputer, helping META AI researchers to build different AI models crucial for creating the metaverse.
Meta’s recent investments to launch features to protect user data will likely boost user confidence amid stiffening competition.
Special Report: The Top 5 IPOs for Your Portfolio
Today, you have a chance to get in on the ground floor of one of the best investment opportunities of the year. As the world continues to benefit from an ever-evolving internet, a handful of innovative tech companies are on the brink of reaping immense rewards - and you can put yourself in a position to cash in. One is set to disrupt the online communication industry. Brilliantly designed for creating online communities, this stock is poised to explode when made public. With the strength of our economy and record amounts of cash flooding into IPOs, you don’t want to miss this opportunity.
>>See Zacks’ Hottest IPOs Now
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Snap Inc. (SNAP) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
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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Its ad revenue business is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Snap Inc. (SNAP) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Meta’s share price performance reflects bearish sentiments amongst investors as the company expects declining revenues in the fourth quarter of 2022.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Snap Inc. (SNAP) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Its ad revenue business is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. In order to deal with child protection and user data protection issues, META has been investing heavily in AI to attract more users to the platform and increase top-line growth to meet its future goals of creating the metaverse upon which the company is banking its future.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Snap Inc. (SNAP) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Its ad revenue business is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Meta Platforms, Inc. Price and Consensus Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote Meta is facing the worst downturn in its operational history.
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Its ad revenue business is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Snap Inc. (SNAP) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. In order to deal with child protection and user data protection issues, META has been investing heavily in AI to attract more users to the platform and increase top-line growth to meet its future goals of creating the metaverse upon which the company is banking its future.
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17968.0
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2022-12-18 00:00:00 UTC
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3 Metaverse Stocks to Buy Right Now
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AAPL
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https://www.nasdaq.com/articles/3-metaverse-stocks-to-buy-right-now-4
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The metaverse became a hot topic last year as speculative investors cheered on the potential creation of a sprawling VR world supported by cryptocurrencies and decentralized apps. But over the past year, that enthusiasm fizzled out as high-profile efforts like Meta Platforms' Horizon Worlds and Decentraland sputtered out.
Rising interest rates and other macroeconomic headwinds then drove investors toward more conservative investments, and the market seemingly lost its appetite for all metaverse-related stocks. Despite that downturn, investors should still consider buying these three stocks that provide some limited exposure to the metaverse within their larger businesses.
Image source: Getty Images.
1. Autodesk
Autodesk (NASDAQ: ADSK) is best known for its AutoCAD computer-aided design and drafting software, but it also provides a wide range of cloud-based software for architects, engineers, manufacturers, and media professionals. Many of the crucial tools that are used to build digital worlds within the metaverse can be found in Autodesk's portfolio.
Autodesk's Maya, 3ds Max, Mudbox, and Motionbuilder applications are all used to create 3D animations and special effects for video games, TV shows, movies, and VR software. It also recently integrated Revit, a building modeling tool, into Epic Games' Twinmotion 3D visualization software platform. That partnership, which proves that the metaverse isn't just built for games, enables professionals to collaborate on 3D models in real-time.
Autodesk's stock declined about 30% this year as investors fretted over its cooling growth. It expects its revenue to rise 14% this year, compared to its 16% growth in both fiscal 2022 and fiscal 2021. Analysts expect just 10% growth in fiscal 2024. It blames that slowdown on macro and pandemic-related headwinds, a higher mix of shorter-term contracts that generate lower upfront payments, geopolitical challenges in Russia, and tough currency headwinds.
However, Autodesk also remains firmly profitable, its net revenue retention rate remains comfortably above 100%, and its stock looks reasonably valued at 27 times forward earnings. Investors who want a balanced play on the metaverse -- as well as exposure to the mission-critical architecture, engineering, and manufacturing sectors -- should take a closer look at this stock.
2. Sony
The Japanese conglomerate Sony (NYSE: SONY) is also expanding into the metaverse through its gaming division, which generated 26% of its revenue and 12% of its operating income in its latest quarter. Popular multiplayer games on the PS5 already represent an entry point into the metaverse, but Sony has also been expanding its presence in the VR market with its PSVR headsets -- which are tethered to its PlayStation consoles and encourage game developers to add more VR features.
The first version of the PSVR, which was launched for the PS4 in 2016, sold about 5 million units through the beginning of 2020. Sony plans to launch the second-generation PSVR 2 in February 2023. The new headset will cost $550, compared to a $400 launch price for the original device. That price tag seems steep, especially since the PS5 costs $500, but Sony's decision to move forward with a new headset suggests it still sees brighter days ahead for the VR and metaverse markets.
As for the rest of Sony's businesses -- which include its movie, music, consumer electronics, and image sensor divisions -- they're recovering in a post-pandemic market. It expects its revenue to rise 17% this fiscal year, but for its net income to dip 5% as it sells a lower mix of higher-margin first-party games, licenses fewer shows and movies to streaming media platforms, and navigates tough currency headwinds. That said, Sony still looks incredibly cheap at 16 times forward earnings.
3. Apple
Lastly, Apple (NASDAQ: AAPL) is widely expected to enter the metaverse next year with a mixed reality (MR) headset that blends together augmented reality and virtual reality features. Not much is known about the device yet, but recent rumors suggest it will be lighter and more powerful than Meta's current generation of Quest headsets.
Apple has often disrupted markets that it didn't create. It's widely credited for popularizing MP3 players, smartphones, tablet computers, and smartwatches, but it only entered those spaces after other companies tested the market first. If Apple pulls off the same feat with MR headsets, it could become a new revenue stream that would diversify its business away from the iPhone (47% of its sales in its latest quarter) while tethering more users to its services ecosystem.
If Apple's upcoming headset gains enough momentum, it could become the bedrock of its own metaverse. That new computing platform would enable Apple to launch additional apps and subscription services beyond its core iOS, macOS, watchOS, and Apple TV platforms.
That's all speculation for now, but Apple's main business remains resilient on its own. Analysts expect its revenue and earnings to grow by 3% and 2%, respectively, this year as it laps its 5G upgrade cycle in 2021, then accelerate in 2023 as it rolls out new products and services. Its stock looks reasonably valued at 22 times forward earnings, and its $169 billion in cash and marketable securities makes it a safe tech stock to hold as rising rates punish companies with poor liquidity.
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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. Leo Sun has positions in Apple and Meta Platforms. The Motley Fool has positions in and recommends Apple, Autodesk, 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 Lastly, Apple (NASDAQ: AAPL) is widely expected to enter the metaverse next year with a mixed reality (MR) headset that blends together augmented reality and virtual reality features. The metaverse became a hot topic last year as speculative investors cheered on the potential creation of a sprawling VR world supported by cryptocurrencies and decentralized apps. That price tag seems steep, especially since the PS5 costs $500, but Sony's decision to move forward with a new headset suggests it still sees brighter days ahead for the VR and metaverse markets.
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Apple Lastly, Apple (NASDAQ: AAPL) is widely expected to enter the metaverse next year with a mixed reality (MR) headset that blends together augmented reality and virtual reality features. It expects its revenue to rise 17% this fiscal year, but for its net income to dip 5% as it sells a lower mix of higher-margin first-party games, licenses fewer shows and movies to streaming media platforms, and navigates tough currency headwinds. The Motley Fool has positions in and recommends Apple, Autodesk, and Meta Platforms.
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Apple Lastly, Apple (NASDAQ: AAPL) is widely expected to enter the metaverse next year with a mixed reality (MR) headset that blends together augmented reality and virtual reality features. Popular multiplayer games on the PS5 already represent an entry point into the metaverse, but Sony has also been expanding its presence in the VR market with its PSVR headsets -- which are tethered to its PlayStation consoles and encourage game developers to add more VR features. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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Apple Lastly, Apple (NASDAQ: AAPL) is widely expected to enter the metaverse next year with a mixed reality (MR) headset that blends together augmented reality and virtual reality features. Sony The Japanese conglomerate Sony (NYSE: SONY) is also expanding into the metaverse through its gaming division, which generated 26% of its revenue and 12% of its operating income in its latest quarter. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them!
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17969.0
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2022-12-18 00:00:00 UTC
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Foxconn fine for unauthorised China investment likely to be imposed soon - source
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AAPL
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https://www.nasdaq.com/articles/foxconn-fine-for-unauthorised-china-investment-likely-to-be-imposed-soon-source
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TAIPEI, Dec 19 (Reuters) - Foxconn 2317.TW, the world's largest contract electronics maker, is likely to be fined soon by Taiwan's government for an unauthorised investment in a Chinese chip maker, a person with direct knowledge of the situation said on Monday.
Taiwan, which Beijing views as sovereign Chinese territory, has turned a wary eye on China's ambition to boost its semiconductor industry and is tightening legislation to prevent what it says is China stealing its chip technology.
Foxconn, a major Apple Inc AAPL.O supplier and iPhone maker, disclosed in July it was a shareholder of embattled Chinese chip conglomerate Tsinghua Unigroup, but said late on Friday it would be selling the stake. Taiwan said on Saturday it would fine Foxconn over the investment.
Taiwan's government, which needs to approve all outbound investments, had not approved the deal. Taipei also prohibits companies from building their most advanced chip foundries in China to ensure they do not site their best technology offshore.
The person familiar with the situation told Reuters that the Economy Ministry would contact Foxconn on Monday to confirm the equity sale.
"Even though the investment was later pulled the fact has already been established that they invested first, and they will be fined," said the source, who was not authorised to speak to the media.
"It should not take too long for Hon Hai to be punished," the source added, referring to the company's formal name, Hon Hai Precision Industry Co Ltd.
Reuters has previously reported that the company could be fined up to T$25 million ($813,749).
Foxconn declined to comment.
Tsinghua Unigroup has not responded to a request for comment on the investment being pulled.
Taiwanese law states the government can prohibit investment in China "based on the consideration of national security and industry development". Violators of the law can be fined repeatedly until corrections are made.
Foxconn has been seeking to acquire chip plants globally as a worldwide chip shortage rattles producers of goods from cars to electronics. It is keen to make auto chips in particular as it expands into the electric vehicle market.
($1 = 30.7220 Taiwan dollars)
(Reporting by Jeanny Kao and Yimou Lee; Writing by Ben Blanchard; Editing by Kenneth Maxwell)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Foxconn, a major Apple Inc AAPL.O supplier and iPhone maker, disclosed in July it was a shareholder of embattled Chinese chip conglomerate Tsinghua Unigroup, but said late on Friday it would be selling the stake. The person familiar with the situation told Reuters that the Economy Ministry would contact Foxconn on Monday to confirm the equity sale. Taiwanese law states the government can prohibit investment in China "based on the consideration of national security and industry development".
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Foxconn, a major Apple Inc AAPL.O supplier and iPhone maker, disclosed in July it was a shareholder of embattled Chinese chip conglomerate Tsinghua Unigroup, but said late on Friday it would be selling the stake. TAIPEI, Dec 19 (Reuters) - Foxconn 2317.TW, the world's largest contract electronics maker, is likely to be fined soon by Taiwan's government for an unauthorised investment in a Chinese chip maker, a person with direct knowledge of the situation said on Monday. "It should not take too long for Hon Hai to be punished," the source added, referring to the company's formal name, Hon Hai Precision Industry Co Ltd. Reuters has previously reported that the company could be fined up to T$25 million ($813,749).
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Foxconn, a major Apple Inc AAPL.O supplier and iPhone maker, disclosed in July it was a shareholder of embattled Chinese chip conglomerate Tsinghua Unigroup, but said late on Friday it would be selling the stake. TAIPEI, Dec 19 (Reuters) - Foxconn 2317.TW, the world's largest contract electronics maker, is likely to be fined soon by Taiwan's government for an unauthorised investment in a Chinese chip maker, a person with direct knowledge of the situation said on Monday. Taiwan, which Beijing views as sovereign Chinese territory, has turned a wary eye on China's ambition to boost its semiconductor industry and is tightening legislation to prevent what it says is China stealing its chip technology.
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Foxconn, a major Apple Inc AAPL.O supplier and iPhone maker, disclosed in July it was a shareholder of embattled Chinese chip conglomerate Tsinghua Unigroup, but said late on Friday it would be selling the stake. TAIPEI, Dec 19 (Reuters) - Foxconn 2317.TW, the world's largest contract electronics maker, is likely to be fined soon by Taiwan's government for an unauthorised investment in a Chinese chip maker, a person with direct knowledge of the situation said on Monday. Taiwan said on Saturday it would fine Foxconn over the investment.
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17970.0
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2022-12-18 00:00:00 UTC
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POLL-Taiwan's export orders seen contracting at faster pace in Nov
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https://www.nasdaq.com/articles/poll-taiwans-export-orders-seen-contracting-at-faster-pace-in-nov
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For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWEXOR%3DECI
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Orders median forecast -11.2% y/y (prior month -6.3%)
*
Data due Tuesday, Dec. 20, 4:00 p.m. (0800 GMT)
TAIPEI, Dec 19 (Reuters) - Taiwan's export orders likely contracted again in November, a Reuters poll showed on Monday, as global demand for the island's technology-related goods cools and at a faster clip than the previous month.
The median forecast from a poll of 18 economists was for export orders to fall 11.2% from a year earlier. Forecasts ranged for a contraction of between 6.26% and 20%.
Taiwan's export orders, a bellwether of global technology demand, fell 6.3% in October, dropping more severely than expected on weak consumer demand hit by inflation and aggressive interest rate hikes.
The government has predicted November's export orders to be between 14.5% and 17.6%, lower than those seen in the year-ago period.
Taiwan's export orders are a leading indicator of demand for hi-tech gadgets and Asian exports, and typically lead actual exports by two to three months.
The island's manufacturers, including the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd , are a key part of the global supply chain for technology giants including Apple Inc .
The data for November will be released on Tuesday. (Poll compiled by Dhruvi Shah, Devayani Sathyan and Carol Lee; Reporting by Ben Blanchard; Editing by Sherry Jacob-Phillips) ((ben.blanchard@thomsonreuters.com;)) Keywords: TAIWAN ECONOMY/ORDERS (POLL)
The views and 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 poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWEXOR%3DECI * Orders median forecast -11.2% y/y (prior month -6.3%) * Data due Tuesday, Dec. 20, 4:00 p.m. (0800 GMT) TAIPEI, Dec 19 (Reuters) - Taiwan's export orders likely contracted again in November, a Reuters poll showed on Monday, as global demand for the island's technology-related goods cools and at a faster clip than the previous month. The median forecast from a poll of 18 economists was for export orders to fall 11.2% from a year earlier. (Poll compiled by Dhruvi Shah, Devayani Sathyan and Carol Lee; Reporting by Ben Blanchard; Editing by Sherry Jacob-Phillips) ((ben.blanchard@thomsonreuters.com;)) Keywords: TAIWAN ECONOMY/ORDERS (POLL) The views and 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 poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWEXOR%3DECI * Orders median forecast -11.2% y/y (prior month -6.3%) * Data due Tuesday, Dec. 20, 4:00 p.m. (0800 GMT) TAIPEI, Dec 19 (Reuters) - Taiwan's export orders likely contracted again in November, a Reuters poll showed on Monday, as global demand for the island's technology-related goods cools and at a faster clip than the previous month. Taiwan's export orders, a bellwether of global technology demand, fell 6.3% in October, dropping more severely than expected on weak consumer demand hit by inflation and aggressive interest rate hikes. The island's manufacturers, including the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd , are a key part of the global supply chain for technology giants including Apple Inc .
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* For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWEXOR%3DECI * Orders median forecast -11.2% y/y (prior month -6.3%) * Data due Tuesday, Dec. 20, 4:00 p.m. (0800 GMT) TAIPEI, Dec 19 (Reuters) - Taiwan's export orders likely contracted again in November, a Reuters poll showed on Monday, as global demand for the island's technology-related goods cools and at a faster clip than the previous month. Taiwan's export orders, a bellwether of global technology demand, fell 6.3% in October, dropping more severely than expected on weak consumer demand hit by inflation and aggressive interest rate hikes. Taiwan's export orders are a leading indicator of demand for hi-tech gadgets and Asian exports, and typically lead actual exports by two to three months.
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* For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWEXOR%3DECI * Orders median forecast -11.2% y/y (prior month -6.3%) * Data due Tuesday, Dec. 20, 4:00 p.m. (0800 GMT) TAIPEI, Dec 19 (Reuters) - Taiwan's export orders likely contracted again in November, a Reuters poll showed on Monday, as global demand for the island's technology-related goods cools and at a faster clip than the previous month. The median forecast from a poll of 18 economists was for export orders to fall 11.2% from a year earlier. Taiwan's export orders, a bellwether of global technology demand, fell 6.3% in October, dropping more severely than expected on weak consumer demand hit by inflation and aggressive interest rate hikes.
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17971.0
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2022-12-18 00:00:00 UTC
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A Bull Market Is Coming: 2 Trillion-Dollar Growth Stocks to Buy Before They Soar
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https://www.nasdaq.com/articles/a-bull-market-is-coming%3A-2-trillion-dollar-growth-stocks-to-buy-before-they-soar
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History has shown that, given enough time, the stock market always broadly trends toward new highs. That's an important lesson to remember in a year like this where all the major U.S. indexes, from the S&P 500 to the Nasdaq-100, dipped into bear market territory.
Soaring inflation and rising interest rates were the key drivers of this latest decline, as traders worried about whether consumers would have less spending power and impact many businesses' financial performance. The market downturn is unlikely to end until those worries ease. There are some early signs that inflation has peaked, which might be the first step in unleashing the next bull market.
Two of the highest-quality stocks investors can own are Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL). Given both stocks are trading down by more than 20% this year, a buying opportunity before an inevitable market recovery now presents itself.
1. Microsoft's diversity makes it the ideal all-weather stock
One of the best attributes a company can have during tough economic times is a diverse revenue base because some industries simply hold up better than others. Revenue streams reliant on consumer spending, for example, are suffering the most right now and Microsoft is right there with them. But many businesses continue to invest in new technologies like cloud computing, where Microsoft is a major player.
This year, Microsoft saw a decline in revenue and engagement in its Xbox gaming ecosystem, as well as falling sales for its Surface line of notebook computers and devices. Plus, the U.S. Federal Trade Commission is seeking to block Microsoft's blockbuster $69 billion acquisition of game development studio Activision Blizzard. The deal would open the door to new opportunities for the Xbox platform, but the government is concerned it will harm the competitive landscape in the gaming industry by making Microsoft too dominant.
This is precisely why operational diversity is so valuable. Despite these challenges, Microsoft's intelligent cloud segment, which is home to the Azure cloud services platform, continues to grow rapidly. Azure ranks behind only Amazon Web Services in the cloud industry and provides hundreds of products and solutions to help businesses migrate their operations online. Whether they require simple data storage or complex artificial intelligence-powered tools, Azure has them covered.
The platform's revenue jumped by 35% year over year in the recent first quarter of fiscal 2023 (ended Sept. 30), which was three times the rate of Microsoft's companywide revenue growth of 11%. That outperformance has been a consistent trend over the last few years, and it's why Microsoft CEO Satya Nadella wants to prioritize areas of the business that will benefit most from the move toward digital technology.
After all, according to an estimate by Grand View Research, the cloud stands to become a $1.5 trillion annual opportunity by 2030. With Microsoft stock down 27.4% in 2022, this could be a rare opportunity to buy in at a steep discount.
2. Apple is a great way to bet on a consumer comeback
While consumers are suffering the most from soaring inflation, it means they also stand to be the greatest beneficiaries when prices cool off. Apple is a quintessential consumer products company, and, therefore, it stands to reason that the company could be one of the first to bounce back under those circumstances.
Still, even in light of the broader economic weakness, Apple has continued to generate growth. Its revenue expanded by 7.8% year over year during fiscal 2022 (ended Sept. 24), which was buoyed by a strong fourth quarter following the release of a series of new products in early September.
The company unveiled its new flagship iPhone 14, its next-generation AirPods headphones, and its Apple Watch Ultra. But the Mac brand delivered the most positive result in Q4, with sales jumping a whopping 25% year over year.
These products should give Apple's financials a boost in the important holiday season.
But in the longer run, investors continue to watch the company's services segment closely. It's home to all of Apple's subscription-based products like Apple Music, Apple News, Apple TV, and Apple Pay, which is going after a global payments industry that could be worth almost $20 trillion by 2026. The services business grew by 14.1% during fiscal 2022, more than double the pace of the products business, which expanded by 6.3%.
Services make up just one-fifth of Apple's total revenue, though, so why are investors so focused on them? It's because they carry a gross profit margin of 71%, which is substantially higher than the 36% of Apple's hardware business. They also provide predictable, recurring revenue streams, which consumers are less likely to put off compared to, say, upgrading their expensive iPhone.
Apple stock is down 24.6% year to date, and while that's a notable decline, it's faring better than other consumer-focused companies like Amazon, which has lost 48% of its value in the same time frame.
Apple remains the largest listed company in the U.S., with a market valuation of $2.1 trillion, and discounts of this magnitude are relatively rare. That spells opportunity for investors ahead of the next inevitable bull market.
10 stocks we like better than Microsoft
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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. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Activision Blizzard, 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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Two of the highest-quality stocks investors can own are Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL). Soaring inflation and rising interest rates were the key drivers of this latest decline, as traders worried about whether consumers would have less spending power and impact many businesses' financial performance. The deal would open the door to new opportunities for the Xbox platform, but the government is concerned it will harm the competitive landscape in the gaming industry by making Microsoft too dominant.
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Two of the highest-quality stocks investors can own are Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL). Despite these challenges, Microsoft's intelligent cloud segment, which is home to the Azure cloud services platform, continues to grow rapidly. But in the longer run, investors continue to watch the company's services segment closely.
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Two of the highest-quality stocks investors can own are Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL). Microsoft's diversity makes it the ideal all-weather stock One of the best attributes a company can have during tough economic times is a diverse revenue base because some industries simply hold up better than others. The platform's revenue jumped by 35% year over year in the recent first quarter of fiscal 2023 (ended Sept. 30), which was three times the rate of Microsoft's companywide revenue growth of 11%.
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Two of the highest-quality stocks investors can own are Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL). But many businesses continue to invest in new technologies like cloud computing, where Microsoft is a major player. The platform's revenue jumped by 35% year over year in the recent first quarter of fiscal 2023 (ended Sept. 30), which was three times the rate of Microsoft's companywide revenue growth of 11%.
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17972.0
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2022-12-18 00:00:00 UTC
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Chip dilemma will buy Beijing precious time
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https://www.nasdaq.com/articles/chip-dilemma-will-buy-beijing-precious-time
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Reuters
Reuters
HONG KONG (Reuters Breakingviews) - America’s chip war against China will make only partial inroads in 2023. After unveiling sweeping new export restrictions in October, Washington appears to have successfully lobbied friendly governments including Japan and the Netherlands to join. A full anti-China alignment, however, will be tricky while global semiconductors demand slows. The latest U.S. trade rules effectively make ultra-high-performance microprocessors used in supercomputers off limits to Chinese buyers; as are software and equipment required to make semiconductors above certain technological thresholds, including high-end memory chips from China’s YMTC. The move has prompted Apple to freeze plans to buy components from YMTC, Nikkei reported. Yet, most of the chips made in and shipped to China are less advanced technologies unaffected by the restrictions. This blunts the hit for both Chinese and American companies. Last year, Chinese imports of integrated circuits and related equipment topped $466 billion. The outlook for China-dependent players in South Korea, Japan and the Netherlands is more uncertain. Memory giants Samsung Electronics and SK Hynix have factories inside the People's Republic and won’t be able to maintain them without a U.S. licence. Both have secured a one-year waiver from the restrictions, but what happens afterwards is unclear. For ASML, which has a monopoly in advanced chipmaking equipment, the picture is similarly hazy. The company had already stopped exporting its most cutting-edge machines to China. But Washington policymakers are pressuring their Dutch and Japanese counterparts to also ban less sophisticated tools from ASML and Japanese peers. Both governments have agreed in principle to adopt “at least some” of the U.S restrictions, Bloomberg reported on Dec. 12. But the devil is in the details. Dutch Trade Minister Liesje Schreinemacher already said in November her government "will not copy the American measures one-to-one". Curbs would be painful for the Veldhoven-based company: 2.7 billion euros, or 15% of total revenue, came from the People's Republic in 2021. Rival Nikon made sales of over 153 billion yen ($1.1 billion) in China, some 28% of total. Slowing demand is another worry: Total chip sales will shrink 4% to $557 billion in 2023, a sharp reversal from the 26% growth in 2021, according to World Semiconductor Trade Statistics. That will probably make companies wary of quickly and fully embracing Washington's requests. The hesitancy will play in China’s favour. It will buy it time to stockpile on foreign components and tools and help President Xi Jinping court trade partners. As Beijing knows, wars are seldom fought and won unilaterally.
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CONTEXT NEWS
Japan and the Netherlands have agreed “in principle” to join the United States in tightening export controls for advanced chip-making equipment to China, Bloomberg reported on Dec. 12, citing people familiar with the matter.
The two governments are likely to announce in coming weeks they will adopt "at least some" of Washington’s restrictions, the report added.
In November, Dutch Trade Minister Liesje Schreinemacher confirmed the Netherlands was in talks with the U.S. government about new export restrictions. In an interview with local newspaper NRC, she said her government would likely introduce new export controls, but that it would “not copy the American measures one-to-one”.
(Editing by Lisa Jucca and Pranav Kiran)
The views and 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 unveiling sweeping new export restrictions in October, Washington appears to have successfully lobbied friendly governments including Japan and the Netherlands to join. Slowing demand is another worry: Total chip sales will shrink 4% to $557 billion in 2023, a sharp reversal from the 26% growth in 2021, according to World Semiconductor Trade Statistics. Japan and the Netherlands have agreed “in principle” to join the United States in tightening export controls for advanced chip-making equipment to China, Bloomberg reported on Dec. 12, citing people familiar with the matter.
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Dutch Trade Minister Liesje Schreinemacher already said in November her government "will not copy the American measures one-to-one". Japan and the Netherlands have agreed “in principle” to join the United States in tightening export controls for advanced chip-making equipment to China, Bloomberg reported on Dec. 12, citing people familiar with the matter. In November, Dutch Trade Minister Liesje Schreinemacher confirmed the Netherlands was in talks with the U.S. government about new export restrictions.
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The latest U.S. trade rules effectively make ultra-high-performance microprocessors used in supercomputers off limits to Chinese buyers; as are software and equipment required to make semiconductors above certain technological thresholds, including high-end memory chips from China’s YMTC. Japan and the Netherlands have agreed “in principle” to join the United States in tightening export controls for advanced chip-making equipment to China, Bloomberg reported on Dec. 12, citing people familiar with the matter. In November, Dutch Trade Minister Liesje Schreinemacher confirmed the Netherlands was in talks with the U.S. government about new export restrictions.
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HONG KONG (Reuters Breakingviews) - America’s chip war against China will make only partial inroads in 2023. This blunts the hit for both Chinese and American companies. Japan and the Netherlands have agreed “in principle” to join the United States in tightening export controls for advanced chip-making equipment to China, Bloomberg reported on Dec. 12, citing people familiar with the matter.
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2022-12-17 00:00:00 UTC
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Cheap Stocks To Buy Now? 2 Tech Stocks To Know
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https://www.nasdaq.com/articles/cheap-stocks-to-buy-now-2-tech-stocks-to-know
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Tech stocks are shares of publicly traded companies that are involved in the technology industry. This industry includes a wide range of companies that develop and sell products and services related to computers, software, the internet, and other technological innovations. Some well-known tech companies include Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), and Alphabet (NASDAQ: GOOGL).
Tech stocks tend to be more volatile than stocks in other industries. This is because the technology industry is often subject to rapid change and innovation. This can lead to both higher potential returns and higher risks for investors. It is important for investors to thoroughly research and understand the companies and technologies they are considering investing in before making any investment decisions.
In general, tech stocks have performed well over the past several decades, as the technology industry has experienced strong growth and innovation. However, like all stocks, tech stocks are subject to market fluctuations and can fluctuate in value. It is important for investors to diversify their portfolios and carefully consider their investment objectives and risk tolerance before making any investment decisions. With this in mind, here are two tech stocks to watch in the stock market today.
Tech Stocks To Watch Right Now
NVIDIA Corporation (NASDAQ: NVDA)
Applied Materials Inc. (NASDAQ: AMAT)
Nvidia (NVDA Stock)
First up, NVIDIA Corporation (NVDA) is a technology company. The company designs and manufactures graphics processing units (GPUs) and other technology products. The company’s products are used in a variety of industries, including gaming, professional visualization, data centers, and autonomous vehicles.
NVDA Recent Stock News
Last month, Nvidia announced its third-quarter 2023 financial results. In detail, the company reported earnings of $0.57 per share, along with revenue of $5.9 billion. This is versus the Street’s consensus estimates for Q3 2023 were earnings of $0.67 per share, and revenue estimates of $5.8 billion.
What’s more, the company also said it now estimates 4th Quarter 2023 revenue in the range of $5.88 billion to $6.12 billion. Jensen Huang, founder, and CEO of NVIDIA comments, “We are quickly adapting to the macro environment, correcting inventory levels, and paving the way for new products.“
NVDA Stock Chart
In 2022 so far, shares of NVDA stock have fallen by 44.99% year-to-date. However, Nvidia stock has recovered 5.70% in the last month of trading. Meanwhile as of Friday’s closing bell, NVDA stock is trading at $165.71 a share.
Source: TD Ameritrade TOS
[Read More] Recession-Proof Stocks To Invest In Now? 3 To Watch
Applied Materials (AMAT Stock)
Next, Applied Materials, Inc. (AMAT) designs and manufactures equipment, services, and software used to produce advanced semiconductor chips and other high-tech products. The company’s products are used in a wide range of industries, including electronics, energy, healthcare, and transportation.
AMAT Recent Stock News
This week, Applied Materials reported that its Board of Directors has declared a quarterly cash dividend of $0.26 per share on common stock. Additionally, the dividend is payable on March 16, 2023, to shareholders of record on the close of business on February 23, 2023. Furthermore, in FY 2022, the company returned $6.98 billion to shareholders through dividends and share buybacks.
AMAT Stock Chart
Moving along, year-to-date shares of AMAT stock have fallen by 34.52%. Though, over the last six months of trading, Applied Materials stock has rebounded by 16.59%. As of Friday’s closing bell, AMAT stock is trading at $104.54 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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Some well-known tech companies include Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), and Alphabet (NASDAQ: GOOGL). This industry includes a wide range of companies that develop and sell products and services related to computers, software, the internet, and other technological innovations. The company’s products are used in a variety of industries, including gaming, professional visualization, data centers, and autonomous vehicles.
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Some well-known tech companies include Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), and Alphabet (NASDAQ: GOOGL). Tech Stocks To Watch Right Now NVIDIA Corporation (NASDAQ: NVDA) Applied Materials Inc. (NASDAQ: AMAT) Nvidia (NVDA Stock) First up, NVIDIA Corporation (NVDA) is a technology company. 3 To Watch Applied Materials (AMAT Stock) Next, Applied Materials, Inc. (AMAT) designs and manufactures equipment, services, and software used to produce advanced semiconductor chips and other high-tech products.
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Some well-known tech companies include Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), and Alphabet (NASDAQ: GOOGL). Tech stocks are shares of publicly traded companies that are involved in the technology industry. Tech Stocks To Watch Right Now NVIDIA Corporation (NASDAQ: NVDA) Applied Materials Inc. (NASDAQ: AMAT) Nvidia (NVDA Stock) First up, NVIDIA Corporation (NVDA) is a technology company.
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Some well-known tech companies include Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), and Alphabet (NASDAQ: GOOGL). This industry includes a wide range of companies that develop and sell products and services related to computers, software, the internet, and other technological innovations. Tech Stocks To Watch Right Now NVIDIA Corporation (NASDAQ: NVDA) Applied Materials Inc. (NASDAQ: AMAT) Nvidia (NVDA Stock) First up, NVIDIA Corporation (NVDA) is a technology company.
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2022-12-17 00:00:00 UTC
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Will Tesla Ever Be a Trillion-Dollar Stock Again?
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https://www.nasdaq.com/articles/will-tesla-ever-be-a-trillion-dollar-stock-again
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It wasn't all that long ago that Tesla (NASDAQ: TSLA) had a trillion-dollar valuation. As recently as April, it was part of a tiny but exclusive club of companies that had broken through the threshold. Today that club has just three members: Apple, Microsoft, and Alphabet.
Since then, Tesla's stock has fallen hard, losing nearly 60% of its value, and some are actively rooting for it to fail.
Image source: Tesla.
While Tesla has its fans who seemingly wear rose-colored glasses about any of its flaws, the critics don green eyeshades tinted a few shades too dark that blind them to the EV maker's enduring potential.
Somewhere between those extremes lies the truth about Tesla, so let's see if there is any hope the premier EV stock can be a $1 trillion company again.
First off the line
There's no doubt Elon Musk and Tesla brought electric vehicles into the mainstream. While there were other EVs before Tesla (they've actually existed for almost 200 years), it was the Roadster that changed the auto industry due to the range of its battery, speed, acceleration, and price that made it comparable to gas-powered cars.
That first-mover status boosted Tesla to the forefront of the electric car industry, a place it remains in with a 64% market share, as of the end of the third quarter. While that's down from the 75% it held back in the first quarter, it's also a natural consequence of so many competitors entering the market.
The Model Y and Model 3 have sold a combined 347,000 vehicles so far this year, far ahead of Ford's No. 2 Mustang Mach-E at 28,000. In fact, Tesla owns four of the top six slots (General Motors' Chevy Bolt is fourth with 22,000 vehicles sold).
However, Bank of America recently issued a report indicating its analysts expect both Ford and GM to surpass Tesla's market share, which is forecast to fall to just 11% in North America by 2025.
Tesla is currently the big fish in a small pond. In just a few years time, however, EVs will equal 10% of the entire auto market and the two big automakers' EVs are cheaper than Tesla's and appeal to a different car buyer.
Built on a shaky foundation
Despite the expected growth in demand for EVs, Tesla and other manufacturers have a number of hurdles they're going to need to surmount that could make achieving their goals feasible.
First, demand is propped up by tax credits, and should they go away; sales could falter. The so-called Inflation Reduction Act passed in August created a new array of incentives for the next few years, but it may not be fiscally responsible to keep them going indefinitely.
Second, the electric grid will be severely stressed from all the electric cars plugging in to charge and will need to be overhauled. That may not be feasible or cheap to accomplish as it will result in large costs for generating, transmitting, and storing power. Even as California was announcing a ban on fossil fuel-powered vehicles by 2035 this past summer, it was also asking EV owners not to charge their cars to help conserve energy.
Third, EV makers face soaring costs for finite resources, particularly for the batteries needed to power their vehicles. Lithium, for example, a key component of EV batteries, currently costs around $80,000 a tonne, or 1,000% more than it did two years ago.
EVs also require substantial amounts of graphite, cobalt, rare earth metals, and nickel, and the total global production of these metals cannot match demand for them.
Image source: Getty Images.
A long road ahead
While there is a search happening for alternatives to using different materials to power EVs and to upgrading and overhauling the electric grid, car manufacturers may face difficulty in seeing the growth they forecast.
Tesla itself is having a tough time selling cars in China. Although sales in November were up 90% year over year, it was a result of cutting prices and providing greater incentives to buyers. The 100,000 vehicles sold was also half of what Chinese rival BYD sold. Competition in Europe will be fierce, too.
Musk has also been selling Tesla stock, selling 19.5 million shares in November and another 20 million or so in December, likely to help finance his acquisition of Twitter.
Over the long haul, though, Tesla doesn't seem like it's going to run off the road and still has plenty of opportunity for growth. Yet it would require a near tripling in value for its stock to hit a $1 trillion valuation. It seems plausible, but investors may need the patience to wait for a number of years for that to happen.
10 stocks we like better than Tesla
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*Stock Advisor returns as of December 1, 2022
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Bank of America, Microsoft, and Tesla. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While Tesla has its fans who seemingly wear rose-colored glasses about any of its flaws, the critics don green eyeshades tinted a few shades too dark that blind them to the EV maker's enduring potential. While there were other EVs before Tesla (they've actually existed for almost 200 years), it was the Roadster that changed the auto industry due to the range of its battery, speed, acceleration, and price that made it comparable to gas-powered cars. A long road ahead While there is a search happening for alternatives to using different materials to power EVs and to upgrading and overhauling the electric grid, car manufacturers may face difficulty in seeing the growth they forecast.
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Musk has also been selling Tesla stock, selling 19.5 million shares in November and another 20 million or so in December, likely to help finance his acquisition of Twitter. The Motley Fool has positions in and recommends Alphabet, Apple, Bank of America, Microsoft, and Tesla. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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While there were other EVs before Tesla (they've actually existed for almost 200 years), it was the Roadster that changed the auto industry due to the range of its battery, speed, acceleration, and price that made it comparable to gas-powered cars. In just a few years time, however, EVs will equal 10% of the entire auto market and the two big automakers' EVs are cheaper than Tesla's and appeal to a different car buyer. The Motley Fool has positions in and recommends Alphabet, Apple, Bank of America, Microsoft, and Tesla.
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Second, the electric grid will be severely stressed from all the electric cars plugging in to charge and will need to be overhauled. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Bank of America is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Alphabet, Apple, Bank of America, Microsoft, and Tesla.
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17975.0
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2022-12-17 00:00:00 UTC
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11.5% of Warren Buffett's Portfolio Is Invested in These 2 Consumer Staples Stocks
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https://www.nasdaq.com/articles/11.5-of-warren-buffetts-portfolio-is-invested-in-these-2-consumer-staples-stocks
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It should come as no surprise that nearly all investors -- from retail traders to those working at hedge funds -- closely follow the moves of Warren Buffett and his company, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B).
After all, between 1965 and 2021 Berkshire's stock generated a compound annual gain of more than 20%, while the broader benchmark S&P 500 has only compounded at a rate of 10.5% including dividends. Berkshire's stock has also soundly beaten the market this year.
Part of the reason for Berkshire's outperformance is due to its large equities portfolio, which is currently valued at more than $332 billion. While a lot of investors know about some of the biggest positions in Berkshire's portfolio, such as Apple, what they may not know is that just two consumer staples stocks currently make up a little over 11.5% of Berkshire's entire portfolio.
Let's take a look.
Coca-Cola: $25.6 billion (7.7%) of invested assets
Buffett and Berkshire have plenty of notable names in their equity portfolio, but few have the brand power of beverage giant Coca-Cola (NYSE: KO). Buffett first bought shares of Coca-Cola in 1988 and now it's the fourth-largest position in his portfolio.
When you have a great brand like Coca-Cola, it makes it easier for management to pass its higher costs of running the business on to consumers without too much of an impact on sales, which can enhance the company's ability to weather inflation.
In the third quarter, Coca-Cola management saw success with this strategy, boosting prices by 12% in the quarter. Unit case volume was also up 4%, implying that sales stayed strong despite the price increases. Net revenue rose 10% in the quarter and earnings grew 14%. Furthermore, management raised the company's full-year guidance.
In recent years, Coca-Cola has really focused on building out a strong line of beverages that its customers simply can't get enough of and will always want to drink regardless of whether there is a recession or high inflation. There is still a lot of uncertainty in the environment that could impact demand next year, including a recession, but so far so good.
Kraft Heinz: $13.2 billion (3.9%) of invested assets
Just as you've likely heard of Coca-Cola, you've probably also heard of food conglomerate Kraft Heinz (NASDAQ: KHC) due to its famous and beloved products, such as Kraft Macaroni and Cheese and Heinz ketchup.
Berkshire currently owns 26.6% of all outstanding shares of the company, so although it's not the biggest position in its portfolio, it's up there in terms of the total stake it owns in the company.
Berkshire first invested in Heinz in 2013, teaming up with 3G Capital to purchase the company for $23 billion. In 2015, Heinz merged with Kraft and shares debuted for around $71. Today, those shares trade for less than $40 and Kraft Heinz is viewed as one of Buffett's largest mistakes, having paid too high a purchase price.
Kraft Heinz has a lot of debt but management has been more aggressively paying it down in recent years. The company has been doing this by selling off business units and lowering its dividend although it still has a healthy 4% annual yield.
There's still a long way to go, but investors are getting more confident about Kraft Heinz's ability to continue to lower debt. The stock trades at less than 15 times forward earnings, which isn't necessarily cheap but also not crazy expensive when you think about some of the brands the company has.
10 stocks we like better than Berkshire Hathaway
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See the 10 stocks
*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 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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When you have a great brand like Coca-Cola, it makes it easier for management to pass its higher costs of running the business on to consumers without too much of an impact on sales, which can enhance the company's ability to weather inflation. In recent years, Coca-Cola has really focused on building out a strong line of beverages that its customers simply can't get enough of and will always want to drink regardless of whether there is a recession or high inflation. Today, those shares trade for less than $40 and Kraft Heinz is viewed as one of Buffett's largest mistakes, having paid too high a purchase price.
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It should come as no surprise that nearly all investors -- from retail traders to those working at hedge funds -- closely follow the moves of Warren Buffett and his company, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). Coca-Cola: $25.6 billion (7.7%) of invested assets Buffett and Berkshire have plenty of notable names in their equity portfolio, but few have the brand power of beverage giant Coca-Cola (NYSE: KO). 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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While a lot of investors know about some of the biggest positions in Berkshire's portfolio, such as Apple, what they may not know is that just two consumer staples stocks currently make up a little over 11.5% of Berkshire's entire portfolio. Kraft Heinz: $13.2 billion (3.9%) of invested assets Just as you've likely heard of Coca-Cola, you've probably also heard of food conglomerate Kraft Heinz (NASDAQ: KHC) due to its famous and beloved products, such as Kraft Macaroni and Cheese and Heinz ketchup. 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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While a lot of investors know about some of the biggest positions in Berkshire's portfolio, such as Apple, what they may not know is that just two consumer staples stocks currently make up a little over 11.5% of Berkshire's entire portfolio. Kraft Heinz has a lot of debt but management has been more aggressively paying it down in recent years. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway.
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17976.0
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2022-12-17 00:00:00 UTC
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3 Stocks to Invest in Virtual Reality
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https://www.nasdaq.com/articles/3-stocks-to-invest-in-virtual-reality-0
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At a time when investors are pretty skeptical of tech stocks, now might seem like an odd time to jump into virtual reality (VR).
But the massive VR market size (which includes related augmented reality and mixed reality) will be worth an estimated $252 billion by 2028, up from just $28 billion in 2021.
That market opportunity is too big to ignore and there are some great companies investing in the hardware and software to make it a reality. Here's why Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Nvidia (NASDAQ: NVDA) have great VR potential.
Image source: Getty Images.
A new Apple headset may soon be a reality
The iPhone maker has long been rumored to be working on a mixed-reality headset (some VR and AR capabilities) that could debut as soon as next year.
Noted Apple analyst Ming-Chi Kuo thinks the company will launch its mixed-reality headset in 2023 and could ship 1.5 million units in the first year.
While the timing is still uncertain, some insights have already become known, including that the company has already shown the device to its board members (an indication of its potential for a launch soon).
The company is also reportedly creating a dedicated operating system for the headset, called xrOS, and will launch a separate app store, according to recent reporting by Bloomberg.
Apple could benefit from the headset not just through device sales -- the headset is rumored to sell for around $2,000 -- but also from in-app sales.
While investors will have to wait a little while longer for Apple's headset, the company's stock is a good deal right now. Apple's shares are trading at 24 times the company's earnings, compared to a price-to-earnings (P/E ratio) of about 32 this time last year.
Alphabet's mobile dominance could translate to VR
Alphabet's Google has the most VR experience of all the companies on this list. The company launched its ill-fated augmented reality device Google Glass back in 2013 (it still exists in enterprise form) and, up until last year, had a bare-bones VR headset called Google Cardboard.
So what's Google working on now? Some Google insiders reportedly spoke to The Verge earlier this year and spilled some of the virtual reality beans, saying that the company is working on a new AR device that could launch as soon as 2024.
The company had at least 300 employees working on the secretive project at the time and was hiring people to create an operating system specifically for the device, dubbed Project Iris.
While the device isn't available yet, investors should consider the potential of the world's largest mobile software maker releasing a VR/AR headset.
Google has already proved that it can make high-quality devices -- its Pixel phones have top-notch hardware and software -- and with so many of its competitors looking to enter the VR/AR space, Google could use its software prowess to challenge them in this space.
In addition to its VR potential, Alphabet is also looking more attractive right now as the company's P/E ratio is sitting at 19 right now, down from a price-to-earnings ratio of about 28 this time last year.
Nvidia's chips could power the VR future
While Apple and Google are betting on devices and software in the VR space, Nvidia has a unique opportunity with its graphics processors.
The company is already a leader in the GPU market, and the company's high-end graphics processors -- used for everything from gaming to artificial intelligence -- are a logical choice for creating virtual worlds.
Already, Nvidia has created developer tools and applications to help companies and individuals take advantage of the company's GPUs for virtual world-building.
Most recently, the company launched its Omniverse Cloud, which it defines as a "suite of cloud services for artists, developers and enterprise teams to design, publish, operate and experience metaverse applications."
One estimate for the AR/VR chip market size from Emergen Research said it could reach $19.3 billion by 2030, up from less than $3 billion last year.
With Nvidia's shares trading at about 76 times the company's earnings, the tech stock isn't cheap. But Nvidia's strong position in gaming, its leading GPU tech, and its commitment to releasing VR tools for developers gives Nvidia's stock lots of potential in the growing VR market.
VR is still around the corner
The virtual reality market is still taking form, which means investors will need to be patient as this market grows.
But there's a shift happening right now among many technology companies toward VR, and it could eventually become a significant segment for each of these companies.
For example, the VR headset market that Apple is pursuing is poised to increase from less than 15 million headset shipments this year to nearly 35 million in 2026.
Additionally, both Apple and Google's pursuit of VR software could help each of the companies expand their services revenue through in-app purchases. And for Nvidia, VR will allow the company to sell chips in an entirely new space, including for the metaverse.
The massive virtual reality market size is a good indicator that VR will be large enough to help move the needle for these stocks, but investors will likely have to wait as VR takes shape over the next couple of years before they see the benefits.
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. Chris Neiger has positions in Apple. The Motley Fool has positions in and recommends Alphabet, Apple, 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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Here's why Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Nvidia (NASDAQ: NVDA) have great VR potential. Noted Apple analyst Ming-Chi Kuo thinks the company will launch its mixed-reality headset in 2023 and could ship 1.5 million units in the first year. While the timing is still uncertain, some insights have already become known, including that the company has already shown the device to its board members (an indication of its potential for a launch soon).
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Here's why Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Nvidia (NASDAQ: NVDA) have great VR potential. But Nvidia's strong position in gaming, its leading GPU tech, and its commitment to releasing VR tools for developers gives Nvidia's stock lots of potential in the growing VR market. 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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Here's why Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Nvidia (NASDAQ: NVDA) have great VR potential. The company launched its ill-fated augmented reality device Google Glass back in 2013 (it still exists in enterprise form) and, up until last year, had a bare-bones VR headset called Google Cardboard. Nvidia's chips could power the VR future While Apple and Google are betting on devices and software in the VR space, Nvidia has a unique opportunity with its graphics processors.
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Here's why Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Nvidia (NASDAQ: NVDA) have great VR potential. But Nvidia's strong position in gaming, its leading GPU tech, and its commitment to releasing VR tools for developers gives Nvidia's stock lots of potential in the growing VR market. And for Nvidia, VR will allow the company to sell chips in an entirely new space, including for the metaverse.
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17977.0
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2022-12-17 00:00:00 UTC
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Does ExxonMobil's Massive $50 Billion Stock Buyback Make It a Buy?
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https://www.nasdaq.com/articles/does-exxonmobils-massive-%2450-billion-stock-buyback-make-it-a-buy
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Since the start of 2020, ExxonMobil's (NYSE: XOM) stock has soared 50%, compared to a 22% gain by the S&P 500, and is up 72% year to date. Yet the oil giant just announced a new corporate plan to launch a massive $50 billion stock buyback program even as analysts worry a looming recession may depress demand for oil that has slumped to around $70 a barrel.
With Exxon's shares trading just below their all-time high, investors rightly want to know whether now is the time to be spending all this money on its stock .
Image source: Getty Images.
How share purchase programs benefit you
Companies have a choice on how they can share their success with their investors: They can pay dividends, or they can buy back stock.
Exxon is enjoying record profits this year. It generated $19.7 billion in earnings in the third quarter, $4 billion more than Wall Street was anticipating and almost the same as the $20.7 billion that Apple (NASDAQ: AAPL) generated.
It pays a quarterly dividend of $0.91 per share, a 3% increase over last year. It has raised the payout for 40 consecutive years, making it a Dividend Aristocrat.
Stock buybacks reduce the number of shares a company has outstanding. As a result, each remaining share represents greater ownership of the company. After suspending its buyback program in 2021, it announced a $10 billion program in January that it completed in the third quarter. Now it's going to turbocharge that with a $50 billion repurchase plan.
Will the buybacks be effective?
If Exxon were to begin buying up its shares today, it would be paying some of the highest prices for them -- but that's not the whole picture. Shares go for just 8 times trailing earnings and 9 times next year's estimates, some of the lowest valuations in the last 30 years.
XOM PE Ratio data by YCharts
They're also going for just a fraction of their long-term earnings growth rate, and analysts forecast Exxon will be growing profits at 25% a year for the next five years.
Where Exxon plans to go
Buying back a ton of stock is not the only thing on Exxon's agenda. It believes profits and cash flows will double by 2027, as it plans to spend between $20 billion and $25 billion annually on capital expenditures. It also intends to keep production at roughly 3.7 million barrels of oil equivalent a day next year using an assumed oil price of $60 per barrel.
Exxon had 4.1 billion shares outstanding at the end of the third quarter. With a price of around $103 per share as of this writing, it could buy back almost half a billion shares, for an 11% reduction in the number of shares.
The oil giant continues to invest in new projects, such as those in the Permian Basin and Guyana. It is also making significant investments in liquefied natural gas (LNG) export facilities globally.
With CEO Darren Woods forecasting LNG shortages in Europe for several years to come, Exxon finds itself perfectly positioned to capitalize on the heightened demand.
While there will be pressures on ExxonMobil as demands for alternative energy sources grow, this stock buyback signals an excellent time to scoop up its shares.
10 stocks we like better than ExxonMobil
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.*
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*Stock Advisor returns as of December 1, 2022
Rich Duprey has positions in ExxonMobil. 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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It generated $19.7 billion in earnings in the third quarter, $4 billion more than Wall Street was anticipating and almost the same as the $20.7 billion that Apple (NASDAQ: AAPL) generated. With Exxon's shares trading just below their all-time high, investors rightly want to know whether now is the time to be spending all this money on its stock . With CEO Darren Woods forecasting LNG shortages in Europe for several years to come, Exxon finds itself perfectly positioned to capitalize on the heightened demand.
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It generated $19.7 billion in earnings in the third quarter, $4 billion more than Wall Street was anticipating and almost the same as the $20.7 billion that Apple (NASDAQ: AAPL) generated. Yet the oil giant just announced a new corporate plan to launch a massive $50 billion stock buyback program even as analysts worry a looming recession may depress demand for oil that has slumped to around $70 a barrel. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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It generated $19.7 billion in earnings in the third quarter, $4 billion more than Wall Street was anticipating and almost the same as the $20.7 billion that Apple (NASDAQ: AAPL) generated. Yet the oil giant just announced a new corporate plan to launch a massive $50 billion stock buyback program even as analysts worry a looming recession may depress demand for oil that has slumped to around $70 a barrel. How share purchase programs benefit you Companies have a choice on how they can share their success with their investors: They can pay dividends, or they can buy back stock.
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It generated $19.7 billion in earnings in the third quarter, $4 billion more than Wall Street was anticipating and almost the same as the $20.7 billion that Apple (NASDAQ: AAPL) generated. How share purchase programs benefit you Companies have a choice on how they can share their success with their investors: They can pay dividends, or they can buy back stock. It pays a quarterly dividend of $0.91 per share, a 3% increase over last year.
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17978.0
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2022-12-16 00:00:00 UTC
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VettaFi Voices On: The Best New ETFs of 2022
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https://www.nasdaq.com/articles/vettafi-voices-on%3A-the-best-new-etfs-of-2022
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As 2022 comes to a close, the total ETFs currently trading in the market has now topped 3,000 — a seemingly impossible number when the first products launched nearly three decades ago. Our VettaFi Voices weighed in on which new ETFs caught their attention this year.
Also, for a fun bonus question to revisit next December, how many ETFs will launch in 2023?
Todd Rosenbluth, head of research, VettaFi: Since we’re doing this in the company Slack and not in person, I don’t have to break out my KPOP ETF-themed music to get the audience on my side. I just need the facts.
To me, the best new ETF of 2022 is the Capital Group Dividend Value ETF (CGDV), which was part of the firm’s initial suite of active ETFs in February and which already has over $1 billion in assets. Dividend, value, and active is a strong summary of what worked in 2022.
But I'm HAPY (real ticker) for YALL (real ticker) VettaFi Voices to say NOPE (real ticker) and BUCK (real ticker) my idea for the best ETF this YEAR (real ticker). I could do this for a while.
Lara Crigger, editor-in-chief, VettaFi: That is some impressive ticker game, Todd.
So, by my count, there were a whopping 410 ETFs launched in 2022 (so far!). I know a lot of us thought that single-stock ETFs might inflate that count, but only 24 launched in 2022, which is less than 1% of the total.
It’s not all that surprising. As I’ve been saying since it passed, the ETF Rule really opened up the floodgates, making it cheaper and easier for any manager with a lawyer and a dream to launch an ETF. Even if markets tank, I can’t imagine we’ll soon find ourselves in a situation where the trend for ETF launches bends on a downward trajectory, rather than upward. So maybe we’ll see 500+ launches next year? I don’t know. The sky’s the limit.
Rosenbluth: Yes, I had thought we would see more single-stock ETFs launch, but thankfully asset managers are focusing on the handful of high-profile growth stocks, like Apple (AAPL) and Tesla (TSLA), and not just offering up an inverse Coca Cola ETF.
Crigger: True, though honestly I could see good use cases for something like an inverse Coca-Cola ETF. Because if the idea is that these products should be short-term trading instruments, allowing traders to make extremely tactical moves on ephemeral market spikes and dips, then investors should want available to them a full menu of the most liquid stocks in the world -- of which KO is one.
Rosenbluth: I see your point, but as someone with a Diet Coke addiction, I don't see a world where I would want an inverse version of KO.
Crigger: I’m a Pepsi girl myself. Anyway, that said, single-stock ETFs really haven't gathered the assets like I think many market watchers thought they might. All told, those 24 ETFs have just $631 million in assets. Most of that money isn’t even in the single-stock ETFs, but the single-bond ETFs: the $192 million US Treasury 3 Month Bill ETF (TBIL), which holds three-month T-bills, and the $158 million US Treasury 2 Year Note ETF (UTWO), which holds two-year notes.
Perfect timing for those funds, by the way! For most of the year, going super short on duration has been a very smart strategy.
Rosenbluth: There are a few other ETFs I found interesting that have not yet gained much traction yet. For example, the small-cap growth stock-focused Invesco Nasdaq Future Gen 200 ETF (QQQS) launched in October, two years after the Invesco Nasdaq Next Gen 100 ETF (QQQJ) came out, which is itself the smaller-cap version of the Invesco QQQ Trust (QQQ). QQQJ has accumulated over $800 million in assets in two years, so I think QQQS will be one to watch over next two years, too.
I also like the PIMCO Senior Loan Active ETF (LONZ), since PIMCO was early with active ETFs, but now seems to be ready to be a bigger player in the space. The senior loan ETF market is concentrated in a handful of firms, but PIMCO has strong expertise to tap into. If investors begin to take on more credit risk in 2023, as the Fed slows down rate hikes, then senior loans could be of greater interest to advisors.
Crigger: For my part, I think in 2022 some of the most innovative products have come to market that we’ve seen in years. It’s impossible to pick a favorite launch in a year that saw the first sector-based fixed income ETFs, the first single-stock ETFs approved and launched, the first short bitcoin ETF, and even, as Todd alluded to, the first K-Pop ETF launch. (By the way, am I the only one who remembers the Quincy Jones ETF?)
Rosenbluth: I remember the proposal for a Quincy Jones ETF, but that one never made it. KPOP did what Quincy couldn’t.
Crigger: True! Also, there were some amazing under-the-radar launches, weren’t there? The Nightshares ETFs are one of those fund families I genuinely didn’t see coming — a strategy that only buys when markets close and sells when they open? Plus, the old commodities reporter in me was nerding out to see not one, but two distinct no K-1 ag ETFs launch (Teucrium’s TILL and Invesco’s PDBA). I honestly didn’t realize there wasn’t already a K-1-free ag exposure, not until those came to market. Todd, what was the ETF launch that took you most by surprise?
Rosenbluth: Well, Lara, we talked about single-stock ETFs, like the AXA TSLA Bear Daily ETF (TSLQ) already, but I was surprised to see the single-Treasury bond ETFs you mentioned, like TBIL. I’d figured advisors and investors were sufficiently covered by ETFs like BIL and SHV, but the purity of a targeted, single-Treasury note, with the liquidity and ease of use of an exchange traded vehicle, and with clear pricing, over time has made more and more sense to me. Investors think of ETFs as being diversified across multiple securities, but in 2022 we learned they do not have own multiple securities to offer diversification potential.
Dave Nadig, financial futurist, VettaFi: So, this dovetails with my thoughts nicely. I think the Treasury products from F/m are the launches of the year, precisely because they seem so boring. They're dirt-easy to explain — the funds just hold on-the-run Treasuries — but they solve what turns out to be an actual problem: Many advisors don't have access to a cheap, easy way to buy Treasuries direct, at least not in a way that plays nicely with all the rest of their trading and reporting systems. Even those that can access Treasuries through a desk, I’ve discovered, often end up paying more in slippage and fees than the expense ratio of these new ETFs. Which is insane, but enough folks have said this to me now that I just have to believe it.
So as boring as they are, it turns out they solve a genuinely real problem, and I'm a fan of people solving real problems. Add in the BondBloxx products, and we have innovation in the fixed income space for the first time in... well, a long time.
As for the horse race, I think the pace of launches comes way down (I disagree with Lara here -- markets matter), so if we crossed 300 launches in 2023, I'd be surprised. I wouldn't, however, be surprised by 2023 being our first $1 trillion year for flows. Even in boring markets, the flows story never abates.
Rosenbluth: Dave, not only would I not be surprised by $1 trillion in flows next year, I expect it to occur. And I think you are too low with your launch forecast. We’ve had lots of new entrants over the last couple of years: Matthews Asia, Federated, Harbor Capital, Neuberger Berman, DoubleLine, Capital Group, Touchstone) and Morgan Stanley is coming soon. They will not slow down their efforts to broaden the lineup. So as far as new ETFs, I think we’ll see 450 new ETFs in 2023 (without looking up where we are at right now). I do not expect a high-tide wave of single-stock launches in 2023, though.
While I’m thinking of new launches, I was also excited for the Fairlead Tactical Sector ETF (TACK), which is run by Katie Stockton as a fund of funds using technical analysis. I love when people bring expertise to the ETF market and gain efficiency, and Katie is smart and makes a compelling case with her strategy.
Dave, I thought you might’ve listed [as one of your favorites] one of the many ESG ETFs that came out.
Nadig: I agree that TACK has real appeal, and unemotional technical investing has a big audience. Even if you’re not a technical analysis believer, Katie's commentary on the markets I find incredibly helpful in understanding the context of the market.
As for ESG… the reality is that the market hasn't cared much about ESG this year, and I'm not sure that turns around massively in the next year. I think the big battle for ESG is going to end up being much more around stewardship and voting, rather than "is Exxon better/worse than Tesla" based on over-abstracted single-scores.
While ESG investing isn't going anywhere, I think the initial rush of launches and marketing is behind us, and now, as usually happens, I suspect the best approaches will win in the marketplace of ideas. It'll just take some time.
Rosenbluth: True, but I like that we have more ESG choices, like the Xtrackers S&P ESG Dividend Aristocrats ETF (SNPD), as well as S&P 500 growth and value products from DWS. For advisors that want to shift to an ESG allocation model, they have the tools to do so.
Roxanna Islam, associate director of research, VettaFi: I'll throw in the WisdomTree Battery Value Chain and Innovation Fund (WBAT), which launched in February. I think electric vehicles are one of the most compelling ideas in the thematic space. It's not a matter of "if" they will happen -- it's just a question of when exactly we will transition and how companies will execute. Batteries and other supporting technologies are among the earliest beneficiaries of this trend, and it’s great seeing recognition of this silo within the EV market.
Yes, there were a few ETFs in battery technology, like LIT and BATT, that launched before this year, but it will be interesting to see how WBAT compares, given that it currently has less materials exposure and higher exposure to industrial constituents that are further up the value chain (that’s a 40% weighting to industrials vs. just under 20% for LIT and BATT).
For ETF launches, I think next year will be difficult to predict, but it may be slightly higher than this year. So I’ll pick a round number and say 450 new launches, too.
You have to consider the economic environment and investor risk aversion and how that will play into new launches. But the great thing about ETFs is that they’ve always been built on innovation (e.g., all the unique launches Lara mentioned above like single-stock ETFs, short bitcoin futures ETFs, etc.). So I think there will still be a few new surprises next year as well.
Rosenbluth: I will now predict 451 new ETFs in 2023, so as to be ahead of Roxanna in true “Price is Right” style. I have high hopes of winning the prize of a framed photo of the VettaFi Voices together at Exchange. (We are doing that, right? Right?)
Be sure to catch the VettaFi Voices, as well as a host of experts, at Exchange, on February 5–8, 2023, in sunny Miami, Florida. To learn more about the event and register, please visit the Exchange website.
For more news, information, and analysis, visit the Modern Alpha 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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Rosenbluth: Yes, I had thought we would see more single-stock ETFs launch, but thankfully asset managers are focusing on the handful of high-profile growth stocks, like Apple (AAPL) and Tesla (TSLA), and not just offering up an inverse Coca Cola ETF. Because if the idea is that these products should be short-term trading instruments, allowing traders to make extremely tactical moves on ephemeral market spikes and dips, then investors should want available to them a full menu of the most liquid stocks in the world -- of which KO is one. I’d figured advisors and investors were sufficiently covered by ETFs like BIL and SHV, but the purity of a targeted, single-Treasury note, with the liquidity and ease of use of an exchange traded vehicle, and with clear pricing, over time has made more and more sense to me.
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Rosenbluth: Yes, I had thought we would see more single-stock ETFs launch, but thankfully asset managers are focusing on the handful of high-profile growth stocks, like Apple (AAPL) and Tesla (TSLA), and not just offering up an inverse Coca Cola ETF. But I'm HAPY (real ticker) for YALL (real ticker) VettaFi Voices to say NOPE (real ticker) and BUCK (real ticker) my idea for the best ETF this YEAR (real ticker). For example, the small-cap growth stock-focused Invesco Nasdaq Future Gen 200 ETF (QQQS) launched in October, two years after the Invesco Nasdaq Next Gen 100 ETF (QQQJ) came out, which is itself the smaller-cap version of the Invesco QQQ Trust (QQQ).
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Rosenbluth: Yes, I had thought we would see more single-stock ETFs launch, but thankfully asset managers are focusing on the handful of high-profile growth stocks, like Apple (AAPL) and Tesla (TSLA), and not just offering up an inverse Coca Cola ETF. Most of that money isn’t even in the single-stock ETFs, but the single-bond ETFs: the $192 million US Treasury 3 Month Bill ETF (TBIL), which holds three-month T-bills, and the $158 million US Treasury 2 Year Note ETF (UTWO), which holds two-year notes. It’s impossible to pick a favorite launch in a year that saw the first sector-based fixed income ETFs, the first single-stock ETFs approved and launched, the first short bitcoin ETF, and even, as Todd alluded to, the first K-Pop ETF launch.
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Rosenbluth: Yes, I had thought we would see more single-stock ETFs launch, but thankfully asset managers are focusing on the handful of high-profile growth stocks, like Apple (AAPL) and Tesla (TSLA), and not just offering up an inverse Coca Cola ETF. If investors begin to take on more credit risk in 2023, as the Fed slows down rate hikes, then senior loans could be of greater interest to advisors. It’s impossible to pick a favorite launch in a year that saw the first sector-based fixed income ETFs, the first single-stock ETFs approved and launched, the first short bitcoin ETF, and even, as Todd alluded to, the first K-Pop ETF launch.
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17979.0
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2022-12-16 00:00:00 UTC
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Taiwan to fine Foxconn for unauthorised China investment
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AAPL
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https://www.nasdaq.com/articles/taiwan-to-fine-foxconn-for-unauthorised-china-investment
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nan
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nan
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Recasts, adds Taiwan government statement
TAIPEI, Dec 17 (Reuters) - Taiwan's government said on Saturday it would fine Foxconn 2317.TW, the world's largest contract electronics maker, for an unauthorised investment in a Chinese chip maker even after the Taiwanese firm said it would be selling the stake.
Taiwan has turned a wary eye on China's ambition to boost its semiconductor industry and is tightening legislation to prevent what it says is China stealing its chip technology.
Foxconn, a major Apple Inc AAPL.O supplier and iPhone maker, disclosed in July it was a shareholder of embattled Chinese chip conglomerate Tsinghua Unigroup.
Late Friday, Foxconn said in a filing to the Taipei stock exchange its subsidiary in China had agreed to sell its entire equity stake in Tsinghua Unigroup.
Taiwan's Economy Ministry said in response that its investment commission, which has to approve all foreign investments, will ask Foxconn on Monday for a "complete explanation" about the investment.
"As for the fact that the investment was not declared beforehand, the amount will still be calculated in accordance with the formula and the penalty will be imposed in accordance with the law," it said, without giving details.
Foxconn did not immediately respond to a request for comment.
People familiar with the matter have previously told Reuters that Foxconn did not seek approval from the Taiwan government before the investment was made and authorities believe it violated a law governing self-ruled Taiwan's relations with China, which claims the island as its own.
In a statement on Saturday before the economy ministry's, Foxconn said as the year-end approached the original investment had "remained unfinalised".
Xingwei controls a 48.9% stake in a different entity that holds a 20% stake in the vehicle owning all of Unigroup.
"In order to avoid uncertainties from further delays or impact to investment planning and the flexible deployment of capital, the Xingwei Fund will transfer its entire holding in Shengyue Guangzhou to Yantai Haixiu," it said.
"After the transfer is completed, FII will no longer indirectly hold any equity in Tsinghua Unigroup."
Tsinghua Unigroup did not respond to a request for comment.
Taiwanese law states the government can prohibit investment in China "based on the consideration of national security and industry development". Violators of the law could be fined repeatedly until corrections are made.
Foxconn, formally called Hon Hai Precision Industry Co Ltd, is keen to make auto chips in particular as it expands into the electric vehicle market.
The company has been seeking to acquire chip plants globally as a worldwide chip shortage rattles producers of goods from cars to electronics.
Taipei prohibits companies from building their most advanced foundries in China to ensure they do not site their best technology offshore.
(Reporting by Meg Shen and Ben Blanchard; Editing by Louise Heavens, Tom Hogue and Nick Macfie)
((meg.shen@thomsonreuters.com; 852-39525805;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Foxconn, a major Apple Inc AAPL.O supplier and iPhone maker, disclosed in July it was a shareholder of embattled Chinese chip conglomerate Tsinghua Unigroup. Late Friday, Foxconn said in a filing to the Taipei stock exchange its subsidiary in China had agreed to sell its entire equity stake in Tsinghua Unigroup. "In order to avoid uncertainties from further delays or impact to investment planning and the flexible deployment of capital, the Xingwei Fund will transfer its entire holding in Shengyue Guangzhou to Yantai Haixiu," it said.
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Foxconn, a major Apple Inc AAPL.O supplier and iPhone maker, disclosed in July it was a shareholder of embattled Chinese chip conglomerate Tsinghua Unigroup. Recasts, adds Taiwan government statement TAIPEI, Dec 17 (Reuters) - Taiwan's government said on Saturday it would fine Foxconn 2317.TW, the world's largest contract electronics maker, for an unauthorised investment in a Chinese chip maker even after the Taiwanese firm said it would be selling the stake. Late Friday, Foxconn said in a filing to the Taipei stock exchange its subsidiary in China had agreed to sell its entire equity stake in Tsinghua Unigroup.
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Foxconn, a major Apple Inc AAPL.O supplier and iPhone maker, disclosed in July it was a shareholder of embattled Chinese chip conglomerate Tsinghua Unigroup. Recasts, adds Taiwan government statement TAIPEI, Dec 17 (Reuters) - Taiwan's government said on Saturday it would fine Foxconn 2317.TW, the world's largest contract electronics maker, for an unauthorised investment in a Chinese chip maker even after the Taiwanese firm said it would be selling the stake. Taiwan's Economy Ministry said in response that its investment commission, which has to approve all foreign investments, will ask Foxconn on Monday for a "complete explanation" about the investment.
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Foxconn, a major Apple Inc AAPL.O supplier and iPhone maker, disclosed in July it was a shareholder of embattled Chinese chip conglomerate Tsinghua Unigroup. Recasts, adds Taiwan government statement TAIPEI, Dec 17 (Reuters) - Taiwan's government said on Saturday it would fine Foxconn 2317.TW, the world's largest contract electronics maker, for an unauthorised investment in a Chinese chip maker even after the Taiwanese firm said it would be selling the stake. People familiar with the matter have previously told Reuters that Foxconn did not seek approval from the Taiwan government before the investment was made and authorities believe it violated a law governing self-ruled Taiwan's relations with China, which claims the island as its own.
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17980.0
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2022-12-16 00:00:00 UTC
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4 Stocks Hot on Analysts’ Radars Right Now
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AAPL
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https://www.nasdaq.com/articles/4-stocks-hot-on-analysts-radars-right-now
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nan
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nan
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When it comes to investing for wealth creation, a myopic view is not sustainable. Keeping the long-term in mind, here are four “Strong Buy” companies chosen by using the TipRanks’ Trending Stocks tool that tracks the most-rated stocks—Trip.com (NASDAQ:TCOM), Broadcom (NASDAQ:AVGO), Apple (NASDAQ:AAPL), and Costco (NASDAQ:COST). These stocks are in the spotlight this week.
Trip.com (TCOM)
China-based global travel services company Trip.com recently reported decent results for Q3, with its top and bottom lines coming above consensus expectations. The results reflected strong demand for long-haul travel despite COVID-19 restrictions, convincing management of a heavy performance improvement as markets open up further. Long-haul hotel bookings significantly increased by more than 130% quarter-over-quarter.
Recently, Morgan Stanley analyst Alex Poon reiterated his bullish stance by maintaining a Buy rating on TCOM stock and raising the stock's price target to $40 from $32. In his report, the analyst acknowledged the presence of “COVID hiccups” in the forthcoming months as China’s economy comes to terms with eased restrictions despite COVID cases. Nonetheless, all the business segments of Trip.com are positioned for strong rebounds from the second quarter of 2023 onwards as China reopens fully.
What is the Price Target for TCOM Stock?
Nine unanimous Buy ratings by Wall Street analysts justify the Strong Buy rating on TCOM stock. The average price target of $38.78 indicates an upside of 11.4%.
Broadcom (AVGO)
Semiconductor and infrastructure software solutions provider Broadcom is benefiting from the growing adoption of its next-gen solutions by hyperscalers, enterprises, and service providers. Rapidly-growing technologies like 5G and IoT (Internet of Things) create a solid upside for the company.
Moreover, Broadcom serves multiple target markets, which helps it hedge its operating risks by reducing its exposure to volatility in any of the markets. To that end, synergies from acquisitions have been a boon for the company to maintain its stronghold in different areas. Its impending acquisition of VMware is expected to reduce competition in infrastructure software and simultaneously strengthen its competitive position against industry titans like Cisco (NASDAQ:CSCO), Atlassian (NASDAQ:TEAM), IBM (NYSE:IBM), and Microsoft (NASDAQ:MSFT).
Recently, Deutsche Bank analyst Ross Seymore reinforced a Buy rating on the stock while raising the price target to $590 from $575. The analyst expects to see semiconductor investors look for a bottom in both share prices and fundamentals in 2023, thus creating upside potential for the stock.
What is the Price Target for AVGO Stock?
For the next 12 months, Wall Street analysts forecast an average price target of $654.73, which is 17.8% higher than the current price.
Apple (AAPL)
One of the most valuable companies in the world, Apple, has recently faced softening product demand thanks to inflation. Further, issues at the Zhengzhou manufacturing hub in China also forced the company to cut its production targets for this year.
Nevertheless, an increasing subscriber base in its Services business and solid brand loyalty are key catalysts for growth.
Moreover, a strong balance sheet combined with a significant cash-flow generating capability is one of the strong points of the company. As of September 30 this year, Apple had cash and short-term investments worth $48.3 billion.
Moreover, the company’s commitment to regularly returning cash to its shareholders through dividends is also commendable. Markedly, $3.7 billion was returned through dividend payouts in the last reported quarter.
In recent news, Apple was reportedly planning to allow users to sideload other app stores on iOS. After the report, Morgan Stanley analyst Erik Woodring observed that the third-party stores will not put App Store revenues at meaningful risk of competition (at most a 1% impact on revenues and 2.5% impact on earnings per share). The analyst believes that in its attempt to please EU regulators, Apple could eliminate an overhang on its stock. With this, Woodring reiterated a Buy rating and $175 price target on Apple.
What is the Price Target for AAPL Stock?
Wall Street analysts, on average, believe that AAPL stock will rise by 34% over the next year to reach $179.71.
Costco (COST)
Costco offers large volumes of food and general merchandise at discounted prices through membership warehouses. The stock is considered defensive, as the business has been holding up in tumultuous times exceptionally well on the back of strategic investments, a customer-centric business approach, merchandise initiatives, and a focus on membership growth.
Moreover, Costco is a well-placed dividend-paying stock thanks to its solid cash-flow generation. The company raised its quarterly dividend by 13.9% to 90 cents per share in April this year.
Truist analyst Scot Ciccarelli, who has a Buy rating on CSCO stock, observed that the company remained resilient through its first quarter of Fiscal 2023 despite considerable softness in the market. The analyst is confident about Costco’s prospects, considering its dividend payout commitment, continued share gains, and a potential increase in membership fees.
Moreover, a beta of 0.71 indicates that Costco’s share price movements are less volatile than the market, which is a positive.
What is the Price Target for COST Stock?
The average price target given by the analyst consensus is $547.59, indicating a 19.4% upside potential from current levels based on 17 Buys and six Holds assigned in the past three months.
The Takeaway
As the bear market threatens to accompany us into 2023, the above stocks rely on their unique strengths to ensure a safe journey through the year.
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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Keeping the long-term in mind, here are four “Strong Buy” companies chosen by using the TipRanks’ Trending Stocks tool that tracks the most-rated stocks—Trip.com (NASDAQ:TCOM), Broadcom (NASDAQ:AVGO), Apple (NASDAQ:AAPL), and Costco (NASDAQ:COST). Apple (AAPL) One of the most valuable companies in the world, Apple, has recently faced softening product demand thanks to inflation. What is the Price Target for AAPL Stock?
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Keeping the long-term in mind, here are four “Strong Buy” companies chosen by using the TipRanks’ Trending Stocks tool that tracks the most-rated stocks—Trip.com (NASDAQ:TCOM), Broadcom (NASDAQ:AVGO), Apple (NASDAQ:AAPL), and Costco (NASDAQ:COST). Apple (AAPL) One of the most valuable companies in the world, Apple, has recently faced softening product demand thanks to inflation. What is the Price Target for AAPL Stock?
|
Keeping the long-term in mind, here are four “Strong Buy” companies chosen by using the TipRanks’ Trending Stocks tool that tracks the most-rated stocks—Trip.com (NASDAQ:TCOM), Broadcom (NASDAQ:AVGO), Apple (NASDAQ:AAPL), and Costco (NASDAQ:COST). Apple (AAPL) One of the most valuable companies in the world, Apple, has recently faced softening product demand thanks to inflation. What is the Price Target for AAPL Stock?
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What is the Price Target for AAPL Stock? Keeping the long-term in mind, here are four “Strong Buy” companies chosen by using the TipRanks’ Trending Stocks tool that tracks the most-rated stocks—Trip.com (NASDAQ:TCOM), Broadcom (NASDAQ:AVGO), Apple (NASDAQ:AAPL), and Costco (NASDAQ:COST). Apple (AAPL) One of the most valuable companies in the world, Apple, has recently faced softening product demand thanks to inflation.
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17981.0
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2022-12-16 00:00:00 UTC
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After Hours Most Active for Dec 16, 2022 : AMZN, CSCO, CMCSA, SWN, BAC, VZ, AAPL, TSLA, FBIN, KO, META, XOM
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-dec-16-2022-%3A-amzn-csco-cmcsa-swn-bac-vz-aapl-tsla-fbin-ko
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -14.85 to 11,228.87. The total After hours volume is currently 553,469,900 shares traded.
The following are the most active stocks for the after hours session:
Amazon.com, Inc. (AMZN) is -0.15 at $87.71, with 26,668,341 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Cisco Systems, Inc. (CSCO) is unchanged at $47.81, with 14,943,113 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Jan 2023. The consensus EPS forecast is $0.76. CSCO's current last sale is 91.94% of the target price of $52.
Comcast Corporation (CMCSA) is unchanged at $34.49, with 14,859,909 shares traded. CMCSA's current last sale is 77.51% of the target price of $44.5.
Southwestern Energy Company (SWN) is unchanged at $6.18, with 12,255,590 shares traded. SWN's current last sale is 65.05% of the target price of $9.5.
Bank of America Corporation (BAC) is unchanged at $31.70, with 11,746,780 shares traded. As reported by Zacks, the current mean recommendation for BAC is in the "buy range".
Verizon Communications Inc. (VZ) is unchanged at $37.12, with 11,367,341 shares traded. VZ's current last sale is 74.24% of the target price of $50.
Apple Inc. (AAPL) is -0.2 at $134.31, with 11,172,676 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Tesla, Inc. (TSLA) is -0.22 at $150.01, with 10,278,163 shares traded., following a 52-week high recorded in today's regular session.
Fortune Brands Innovations, Inc. (FBIN) is -0.52 at $56.61, with 10,196,387 shares traded.
Coca-Cola Company (The) (KO) is unchanged at $62.75, with 10,029,612 shares traded. As reported by Zacks, the current mean recommendation for KO is in the "buy range".
Meta Platforms, Inc. (META) is -0.3399 at $119.09, with 9,552,009 shares traded. As reported by Zacks, the current mean recommendation for META is in the "buy range".
Exxon Mobil Corporation (XOM) is +0.31 at $105.01, with 8,838,028 shares traded. As reported by Zacks, the current mean recommendation for XOM is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.2 at $134.31, with 11,172,676 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Jan 2023.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -0.2 at $134.31, with 11,172,676 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
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Apple Inc. (AAPL) is -0.2 at $134.31, with 11,172,676 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 553,469,900 shares traded.
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Apple Inc. (AAPL) is -0.2 at $134.31, with 11,172,676 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 -14.85 to 11,228.87.
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17982.0
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2022-12-16 00:00:00 UTC
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With OpenAI and DALL·E Gaining Popularity, Which AI Stocks Can Skyrocket in 2023?
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AAPL
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https://www.nasdaq.com/articles/with-openai-and-dall%3Ae-gaining-popularity-which-ai-stocks-can-skyrocket-in-2023
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nan
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nan
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Although Wall Street has turned its back on some of the most disruptive tech stocks, it's hard to ignore the hype surrounding some of the latest AI innovations. OpenAI, a firm that Elon Musk helped back, has been making quite a splash of late with creative products whose disruptive potential cannot go ignored. In this piece, I'll compare two mature AI plays -- Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) and Apple (NASDAQ:AAPL) that appear like the most intriguing high-upside candidates for 2023.
DALL·E and OpenGPT Chat are two of the most intriguing AI-powered innovations to come out of the OpenAI pipeline. DALL·E can create fascinating works of art based on input text, while OpenGPT is a "groundbreaking" conversational chatbot that can answer questions and even write essays. Though there are limitations (data accuracy is a concern), one can't help but be intrigued when giving such early-stage OpenAI products a demo run.
Alphabet (GOOGL)
OpenAI's conversational AI could signal where smart home assistants are headed next. Google Assistant, Siri, and Alexa haven't really gotten more intelligent in recent years. This could change as OpenAI looks to emerge as a worthy challenger.
Indeed, Alphabet is one of the best public companies to play the next step of AI. With a wealth of data from billions of users around the world, Alphabet arguably has the tools to produce the most advanced AI.
Of course, Alphabet may already have an OpenGPT-like conversational offering behind closed doors. It's just not ready to be unleashed to the world. Given OpenGPT's limitations, lack of sourcing, and potential for misuse, a next-generational chatbot may not be ready for the masses quite yet.
Indeed, safety measures and regulatory guidelines may be needed for the Google Assistant to get that next big update we're all hoping for. In any case, I view Google as a leader in the AI space. Ultimately, I think it'll be Alphabet, not OpenAI, that will cannibalize its search engine over time.
After a turbulent year for tech, GOOGL stock is absurdly cheap at 18.4 times trailing earnings. We may have little visibility into the AI projects Alphabet's working on, but it remains one of the disruptors likely to hold its throne at the top of the tech world.
What is the Price Target for GOOGL Stock?
Wall Street still likes Alphabet stock, even as the bear claws at the share price. The average GOOGL stock price target of $127.83 implies 42.35% gains from here.
Apple (AAPL)
Apple's Siri has come a long way since its early days. Still, there's a lot of room for improvement if the AI assistant is to impress and delight as OpenAI's offerings have. Like Google, I view Apple as having the data resources to make next-generation AI possible.
Indeed, Apple is far from an AI pure-play. Hardware continues to contribute an overwhelming chunk of the revenue pie - though services have grown by leaps and bounds over the years.
Like Google, Apple likely already has a more advanced assistant that's not quite ready for prime time. Apple's not a market first-mover. It's more than willing to wait for its peers to test the waters and stomach the risks and repercussions. Once the time is right, Apple swoops in to "one up" its rivals, as it has done so many times.
Apple didn't invent the smartphone; it made it better. As its focus shifts to next-generation products (think smartwatches and headsets), look for Siri to play a more significant role in our daily lives. Apple's relentless focus on protecting user privacy has made it one of the more trusted companies in big tech. This solid reputation will help the firm as federal regulators look to put forth measures to ensure that next-generation AIs are safe.
Indeed, many things can go wrong when unleashing a profoundly game-changing technology to the world. Apple is one of the firms that will design with good intentions in mind from the get-go. In that regard, Apple may have a nice edge in the AI wars.
What is the Price Target for AAPL Stock?
Apple stock has taken a beating of late. Analysts stand by the name, with the average AAPL stock price target of $179.71. That's a 33.5% gain from current levels.
Conclusion
OpenAI's latest offerings may not be able to give human creatives a run for their money yet. However, it's tough to tell how far-reaching the disruptive AI technology will be in 10 years from now. OpenGPT, in particular, looks like it could be a successor of Google's search engine. Indeed, it'll take many more improvements before an OpenAI product can take share away from the dominant search giant.
AI continues to advance, even as the hype (and investment dollars) continue to be drained from the tech sector. At this juncture, investors can't place bets on OpenAI. However, Alphabet and Apple can launch comparable (and likely superior) AI-powered disruptive products over the next decade.
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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In this piece, I'll compare two mature AI plays -- Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) and Apple (NASDAQ:AAPL) that appear like the most intriguing high-upside candidates for 2023. Apple (AAPL) Apple's Siri has come a long way since its early days. What is the Price Target for AAPL Stock?
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In this piece, I'll compare two mature AI plays -- Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) and Apple (NASDAQ:AAPL) that appear like the most intriguing high-upside candidates for 2023. Analysts stand by the name, with the average AAPL stock price target of $179.71. Apple (AAPL) Apple's Siri has come a long way since its early days.
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In this piece, I'll compare two mature AI plays -- Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) and Apple (NASDAQ:AAPL) that appear like the most intriguing high-upside candidates for 2023. Apple (AAPL) Apple's Siri has come a long way since its early days. What is the Price Target for AAPL Stock?
|
In this piece, I'll compare two mature AI plays -- Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) and Apple (NASDAQ:AAPL) that appear like the most intriguing high-upside candidates for 2023. Apple (AAPL) Apple's Siri has come a long way since its early days. What is the Price Target for AAPL Stock?
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17983.0
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2022-12-16 00:00:00 UTC
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Mastercard (MA) Brings Secure Payments to Kuwait via Apple Pay
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AAPL
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https://www.nasdaq.com/articles/mastercard-ma-brings-secure-payments-to-kuwait-via-apple-pay
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nan
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Mastercard Incorporated MA recently introduced the digital payment service of the leading tech giant Apple Inc. AAPL - Apple Pay in Kuwait. The benefits of the launch can be reaped by MA’s cardholders across the country.
With an easy set-up process and the consequent addition of Mastercard credit or debit cards on iPhone, Apple Watch, iPad and Mac, Apple Pay will equip cardholders to engage in seamless and secure digital payments. All they need to do is place their Apple devices within close proximity of a payment terminal that accepts Mastercard contactless payments.
Mastercard is offering the opportunity to its Kuwait cardholders to use Apple Pay while purchasing a wide variety of commodities at diversified places including grocery stores, pharmacies, restaurants, coffee shops, online stores and parking to name a few.
Apple Pay ensures each of the transactions is carried out safely by alloting and storing a unique Device Account Number in the Secure Element. The Secure Element, an industry-standard, certified chip, was devised for the safe storage of payment information on a device. This facility of not storing card information directly on the device or on Apple servers eliminates the chances of compromising the consumers’ confidential data.
Apart from benefiting consumers, payment services like Apple Pay seem to be of great use to merchants as well. The security feature injected within Apple Pay might save merchants from incurring huge losses in case of fraudulent transactions, which often occur due to the widespread adoption of digital payments.
The recent decision to launch Apple Wallet in Kuwait reflects Mastercard’s efforts to offer expanded digital payment options to simplify the daily payments of the country’s consumers and gradually move toward a cashless society. The move also indicates MA’s target to occupy a significant share of the rapidly-growing digital payments market in the country. It is also likely to generate higher revenues for Mastercard as usage of Apple Pay, which ensures secure transactions, will attract more customers to engage in the increased usage of Mastercard-branded cards during transactions.
The broader motive of Mastercard in establishing a strong presence across any of the Middle East countries can be clearly reflected through the latest move. The Middle East continues to witness a booming digital economy driven by factors such as increased Internet penetration and higher usage of smartphones. Thereby, Mastercard, backed with an innovative digital suite, is keeping an eye on capturing the digital growth prospects of the region.
Shares of Mastercard have gained 12.2% in the past six months compared with the industry’s 8.5% growth.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Mastercard currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Business Services space are Barrett Business Services, Inc. BBSI and Clean Harbors, Inc. CLH. While Barrett Business Services sports a Zacks Rank #1 (Strong Buy), Clean Harbors carries a Zacks Rank #2 at present (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of Barrett Business Services outpaced estimates in each of the last four quarters, the average beat being 49.05%. The Zacks Consensus Estimate for BBSI’s 2022 earnings suggests an improvement of 31% from the year-ago reported figure. The same for revenues suggests growth of 12.5% from the year-ago reported number. The consensus mark for BBSI’s 2022 earnings has moved 4% north in the past 60 days.
Clean Harbors’ earnings outpaced estimates in each of the trailing four quarters, the average being 38.20%. The Zacks Consensus Estimate for CLH’s 2022 earnings suggests an improvement of 99.5% from the year-ago reported figure. The same for revenues suggests growth of 35% from the year-ago reported number. The consensus mark for CLH’s 2022 earnings has moved 7.1% north in the past 60 days.
Shares of Barrett Business Services and Clean Harbors have gained 35.3% and 40.3%, respectively, in the past six months.
Zacks Names "Single Best Pick to Double"
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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
Mastercard Incorporated (MA) : Free Stock Analysis Report
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Barrett Business Services, Inc. (BBSI) : 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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Mastercard Incorporated MA recently introduced the digital payment service of the leading tech giant Apple Inc. AAPL - Apple Pay in Kuwait. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Mastercard Incorporated (MA) : Free Stock Analysis Report Clean Harbors, Inc. (CLH) : Free Stock Analysis Report Barrett Business Services, Inc. (BBSI) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple Pay ensures each of the transactions is carried out safely by alloting and storing a unique Device Account Number in the Secure Element.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Mastercard Incorporated (MA) : Free Stock Analysis Report Clean Harbors, Inc. (CLH) : Free Stock Analysis Report Barrett Business Services, Inc. (BBSI) : Free Stock Analysis Report To read this article on Zacks.com click here. Mastercard Incorporated MA recently introduced the digital payment service of the leading tech giant Apple Inc. AAPL - Apple Pay in Kuwait. Image Source: Zacks Investment Research Zacks Rank & Key Picks Mastercard currently carries a Zacks Rank #3 (Hold).
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Mastercard Incorporated MA recently introduced the digital payment service of the leading tech giant Apple Inc. AAPL - Apple Pay in Kuwait. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Mastercard Incorporated (MA) : Free Stock Analysis Report Clean Harbors, Inc. (CLH) : Free Stock Analysis Report Barrett Business Services, Inc. (BBSI) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Zacks Rank & Key Picks Mastercard currently carries a Zacks Rank #3 (Hold).
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Mastercard Incorporated MA recently introduced the digital payment service of the leading tech giant Apple Inc. AAPL - Apple Pay in Kuwait. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Mastercard Incorporated (MA) : Free Stock Analysis Report Clean Harbors, Inc. (CLH) : Free Stock Analysis Report Barrett Business Services, Inc. (BBSI) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple Pay ensures each of the transactions is carried out safely by alloting and storing a unique Device Account Number in the Secure Element.
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17984.0
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2022-12-16 00:00:00 UTC
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What to Know About Protecting Your Digital Identity
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AAPL
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https://www.nasdaq.com/articles/what-to-know-about-protecting-your-digital-identity
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nan
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nan
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B
ack in the early days of social media, users marveled at the power these services had to connect or reconnect with old friends and find new ones. Investors marveled at the potential these companies had to connect users with advertisers. It wasn’t until these services started to proliferate that the term “digital footprint” began to creep into everyday life.
Like many technologically focused things, the term "digital footprint" has evolved over time. Website cookies are a good example of this. Initially, cookies were a tool that websites used to enhance the experience of visitors by keeping track of user preferences on the site. They would facilitate things like remembering user credentials so when a user returned to the site, they wouldn’t need to log in again, or remembering items in a shopping cart. Over time, the types of data that cookies captured as well as their overall functionality increased to the point where cookies were being used not just to inform individual websites about users but also to track those users across the internet.
Users on social media platforms, whether they realize it or not, are voluntarily providing information about themselves, free of charge, to the world. By interacting with a site, users of websites are providing certain information to the site owner, such as search histories on Google, shopping preferences on Amazon, food purchases at your local grocer through a points program, viewing preferences on Netflix, location data collected by your cellular provider and the list goes on. As users of these services, we understand that we are providing these inputs to transact with these companies. Therefore, we are willing to give companies what they need to fulfill our requests.
Where it starts to get interesting is when you start to consider just how much of your life either occurs online or is facilitated by some piece of technology.
From our perspective, the use of this data should be limited to the transaction at hand and retained by the company we are interacting with. We fully expect that companies will analyze any sales or customer data that it receives. With regards to other data collected by devices like health monitors, voice-activated assistants, televisions and refrigerators, the expectation is that our requests are retained long enough to execute the demand and then forgotten. What we don’t expect is that in addition to using customer data for their own purposes, companies will turn around and further monetize this data by selling it to anyone willing to pay.
Aside from companies finding what some would describe as an amoral alternative uses for client data, all this customer data provides a tempting target for some clearly bad actors, especially hackers and other sellers of stolen data. This brings about the question of what can be done to protect your digital identity? Turns out there are a few things that you can do and increasingly, steps that companies are being forced to take by regulators.
Protecting Digital Identity
One way to protect your data is to avoid, well, just about everything. Another way is to not avoid everything but be selective about what devices or services you do use and further, take the time to review End User License Agreements (EULA) for those services you do want to use. There’s good news and bad news here. The bad news is that often times you need to be both a computer science major and a lawyer to fully understand the terms of service of these agreements. The good news is that while there have been a number of data breach incidents and even some bad actors, regulators have taken notice, and not just recently.
Data protection has been on regulators’ radar since the creation and implementation of the 1995 Data Protection Directive. That regulation was replaced in 2018 by the General Data Protection Regulation (GDPR). This regulation is more than just a guideline to best practices for handling customer and other data online. Simply put, it is law in Europe and also affects companies that do business in Europe or even transfer data through European servers. While it has provided comfort for netizens globally, it has sparked two major movements. The first is the proliferation of similar legislation around the world. The U.S. doesn’t yet have any data privacy legislation at the Federal level but we have seen states like California, Colorado, Virginia, Utah and Connecticut pass broad protections that come into effect on January 1, 2023. Other states like Maine, Tennessee and Nevada have enacted protections for consumers as well.
The second effect is that companies are starting to change the way they do business with regard to how they are handling customer data or in the case of Apple (AAPL), imposing limitations on how their corporate customers interact with end users. We have seen this play out in real time when Apple initiated restrictions on what app developers could do if they wanted to remain on Apple’s App Store. The response was immediate from both the affected companies and shareholders of those companies as we saw services like Meta Platform’s (META) Facebook forecast that data privacy restrictions imposed by Apple would put a $10 billion dent in 2022 earnings. While these and future restrictions may have a damping effect on the expected returns of social media companies, the inability of advertisers to optimize hyper-focused ad delivery doesn’t spell the end of business as we know it in our opinion.
For many, these regulations are worth celebrating. Data Privacy Day sounds like something that might be a recent phenomenon but is an international holiday of sorts that has been around since 2007. The observed date is January 28 and is celebrated globally, with awareness-raising events U.S., Canada, Luxembourg and India to name a few places.
Wrapping It Up
A computer needs to know everything about what users are doing in order to function properly. As we continue to digitize our lives, all of these devices and services, in the same way, need to “know” more and more about us in order to be as useful as we want them to be.
To some, Digital Identity seems to be just an extension of traditional identity. While identity documents identify someone as a person, or more clinically, a legal entity, Digital Identity goes way beyond basic recognition. The sum total of the data in a complete digital identity provides insights into the physical, mental, emotional and economic state of an individual. Because of this, companies, and other actors, good and bad recognize the value of this data. Governments also recognize this and in response, are creating rules and regulations like GDPR in Europe and similar legislation across the world. Our hope is that we can continue to benefit from technological advances while keeping our data, our most sensitive data, safe.
The views and 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 second effect is that companies are starting to change the way they do business with regard to how they are handling customer data or in the case of Apple (AAPL), imposing limitations on how their corporate customers interact with end users. With regards to other data collected by devices like health monitors, voice-activated assistants, televisions and refrigerators, the expectation is that our requests are retained long enough to execute the demand and then forgotten. The U.S. doesn’t yet have any data privacy legislation at the Federal level but we have seen states like California, Colorado, Virginia, Utah and Connecticut pass broad protections that come into effect on January 1, 2023.
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The second effect is that companies are starting to change the way they do business with regard to how they are handling customer data or in the case of Apple (AAPL), imposing limitations on how their corporate customers interact with end users. ack in the early days of social media, users marveled at the power these services had to connect or reconnect with old friends and find new ones. It wasn’t until these services started to proliferate that the term “digital footprint” began to creep into everyday life.
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The second effect is that companies are starting to change the way they do business with regard to how they are handling customer data or in the case of Apple (AAPL), imposing limitations on how their corporate customers interact with end users. Aside from companies finding what some would describe as an amoral alternative uses for client data, all this customer data provides a tempting target for some clearly bad actors, especially hackers and other sellers of stolen data. Data protection has been on regulators’ radar since the creation and implementation of the 1995 Data Protection Directive.
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The second effect is that companies are starting to change the way they do business with regard to how they are handling customer data or in the case of Apple (AAPL), imposing limitations on how their corporate customers interact with end users. Protecting Digital Identity One way to protect your data is to avoid, well, just about everything. The bad news is that often times you need to be both a computer science major and a lawyer to fully understand the terms of service of these agreements.
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17985.0
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2022-12-16 00:00:00 UTC
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EU greenlights only half of global tax deal
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AAPL
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https://www.nasdaq.com/articles/eu-greenlights-only-half-of-global-tax-deal
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nan
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nan
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Reuters
Reuters
BRUSSELS (Reuters Breakingviews) - The European Union has at last found unanimity on the global minimum tax, half of an almost 140-nation pact to clamp down on global tax avoidance. Hungary finally dropped its veto this week, only for Poland to provide last-minute drama before finally allowing the EU to proceed. Whack-a-mole objections have become EU routine on tax matters, which require the unanimity of the 27 member states.
The other half of the global deal, struck under the Organisation for Economic Co-operation and Development auspices in 2021, concerned big digital services companies. The aim was to make tech giants like Google, Microsoft and Apple pay a fairer amount of taxes on their profits, regardless of where they are booked. Here the EU is nowhere close to an agreement, and seems headed for a bigger fight.
In the meantime, trade wars over a hodgepodge of national digital services taxes are likely to continue. The U.S. suspended its trade complaints against the UK, France, Austria, Italy and the Czech Republic after the OECD deal. Those battles may have to resume before governments feel motivated enough to make more progress. (By Rebecca Christie)
Follow @Breakingviews on Twitter
Capital Calls - More concise insights on global finance:
Danske slap confirms pay-what-you-can principle
Nuclear fusion triggers an overreaction
Rent prices conceal better U.S. inflation picture
Ukraine’s Nestlé boost is as important as EU aid
Deal whiz Byron Trott suffers minor grill burns
(Editing by Pierre Briancon 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 other half of the global deal, struck under the Organisation for Economic Co-operation and Development auspices in 2021, concerned big digital services companies. The aim was to make tech giants like Google, Microsoft and Apple pay a fairer amount of taxes on their profits, regardless of where they are booked. (By Rebecca Christie) Follow @Breakingviews on Twitter Capital Calls - More concise insights on global finance: Danske slap confirms pay-what-you-can principle Nuclear fusion triggers an overreaction Rent prices conceal better U.S. inflation picture Ukraine’s Nestlé boost is as important as EU aid Deal whiz Byron Trott suffers minor grill burns (Editing by Pierre Briancon 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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Reuters Reuters BRUSSELS (Reuters Breakingviews) - The European Union has at last found unanimity on the global minimum tax, half of an almost 140-nation pact to clamp down on global tax avoidance. In the meantime, trade wars over a hodgepodge of national digital services taxes are likely to continue.
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BRUSSELS (Reuters Breakingviews) - The European Union has at last found unanimity on the global minimum tax, half of an almost 140-nation pact to clamp down on global tax avoidance. The aim was to make tech giants like Google, Microsoft and Apple pay a fairer amount of taxes on their profits, regardless of where they are booked. (By Rebecca Christie) Follow @Breakingviews on Twitter Capital Calls - More concise insights on global finance: Danske slap confirms pay-what-you-can principle Nuclear fusion triggers an overreaction Rent prices conceal better U.S. inflation picture Ukraine’s Nestlé boost is as important as EU aid Deal whiz Byron Trott suffers minor grill burns (Editing by Pierre Briancon 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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BRUSSELS (Reuters Breakingviews) - The European Union has at last found unanimity on the global minimum tax, half of an almost 140-nation pact to clamp down on global tax avoidance. Hungary finally dropped its veto this week, only for Poland to provide last-minute drama before finally allowing the EU to proceed. The other half of the global deal, struck under the Organisation for Economic Co-operation and Development auspices in 2021, concerned big digital services companies.
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17986.0
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2022-12-16 00:00:00 UTC
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U.S. Intensifies Crackdown on Chinese Firms, Blacklists Chipmaker YMTC
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AAPL
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https://www.nasdaq.com/articles/u.s.-intensifies-crackdown-on-chinese-firms-blacklists-chipmaker-ymtc
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nan
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nan
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The Biden administration is intensifying its crackdown on Chinese firms to curb the country’s technological advancements, mainly the use of advanced chips in military applications. The U.S. added China’s top memory chip maker Yangtze Memory Technologies Corp. (YMTC) and over 30 other firms to the entity list, which implies that American companies will have to obtain a license from the Commerce Department before selling any goods or services to the companies in this list.
YMTC was added to the list over concerns that it could direct American technology to already blacklisted Chinese tech behemoths Huawei Technologies Co. and Hikvision. YMTC has rapidly emerged as a key rival to American memory chipmaker Micron Technology (MU) and South Korea’s SK Hynix. As per a Nikkei Asia report in October, Apple (AAPL) put on hold its plans to use YMTC’s memory chips in its products due to tighter export controls.
Overall, the export blacklist includes 35 Chinese companies (including artificial intelligence (AI) chipmaker Cambricon Technologies and IT giant CETC) and a Japan-based subsidiary of YMTC.
In October, the Commerce Department had placed YMTC and several other Chinese companies in what it called an unverified list. The Department said that it would move these companies to the entity list if it is unable to confirm that the end uses of their products weren’t detrimental to the U.S. The Commerce Department has now removed 27 companies (per Reuters) from the unverified list after completing site visits in cooperation with the Chinese government.
Escalating U.S.-China Trade Tensions
Amid growing tensions between the U.S. and China, both countries intend to invest billions of dollars to boost the domestic production of advanced chips. In October, the U.S. imposed new export controls to restrict China’s access to advanced chips. China has officially initiated a trade dispute against the U.S. at the World Trade Organization (WTO) over the chip export curbs. It has alleged that the U.S. curbs “threatened the stability of the global industrial supply chains.”
Meanwhile, some American chipmakers are exploring ways to avoid significant loss of sales due to the recently imposed export restrictions. Last month, semiconductor giant Nvidia (NVDA) started offering an alternative chip (A800) with a lower bandwidth that meets the newly imposed U.S. export rules. The A800 is an alternative to Nvidia’s A100 chip that was used in servers and AI applications by many Chinese tech giants, including Alibaba Group (BABA) and Tencent Holdings (TCEHY).
Recently, the WTO ruled against the U.S. tariffs imposed on steel and aluminum imports by former President Donald Trump as they violated international trade laws. The U.S. said that it strongly rejects the WTO panels’ “flawed interpretation and conclusions.” China has urged the U.S. to respect the ruling and work with WTO members to protect the multilateral trading system.
Overall, any further worsening of the U.S.-China relationship could adversely impact companies in the two countries, especially at a time when businesses are already under pressure due to a looming global recession.
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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As per a Nikkei Asia report in October, Apple (AAPL) put on hold its plans to use YMTC’s memory chips in its products due to tighter export controls. It has alleged that the U.S. curbs “threatened the stability of the global industrial supply chains.” Meanwhile, some American chipmakers are exploring ways to avoid significant loss of sales due to the recently imposed export restrictions. The A800 is an alternative to Nvidia’s A100 chip that was used in servers and AI applications by many Chinese tech giants, including Alibaba Group (BABA) and Tencent Holdings (TCEHY).
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As per a Nikkei Asia report in October, Apple (AAPL) put on hold its plans to use YMTC’s memory chips in its products due to tighter export controls. The U.S. added China’s top memory chip maker Yangtze Memory Technologies Corp. (YMTC) and over 30 other firms to the entity list, which implies that American companies will have to obtain a license from the Commerce Department before selling any goods or services to the companies in this list. Overall, the export blacklist includes 35 Chinese companies (including artificial intelligence (AI) chipmaker Cambricon Technologies and IT giant CETC) and a Japan-based subsidiary of YMTC.
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As per a Nikkei Asia report in October, Apple (AAPL) put on hold its plans to use YMTC’s memory chips in its products due to tighter export controls. The U.S. added China’s top memory chip maker Yangtze Memory Technologies Corp. (YMTC) and over 30 other firms to the entity list, which implies that American companies will have to obtain a license from the Commerce Department before selling any goods or services to the companies in this list. Overall, the export blacklist includes 35 Chinese companies (including artificial intelligence (AI) chipmaker Cambricon Technologies and IT giant CETC) and a Japan-based subsidiary of YMTC.
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As per a Nikkei Asia report in October, Apple (AAPL) put on hold its plans to use YMTC’s memory chips in its products due to tighter export controls. The U.S. added China’s top memory chip maker Yangtze Memory Technologies Corp. (YMTC) and over 30 other firms to the entity list, which implies that American companies will have to obtain a license from the Commerce Department before selling any goods or services to the companies in this list. In October, the Commerce Department had placed YMTC and several other Chinese companies in what it called an unverified list.
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17987.0
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2022-12-16 00:00:00 UTC
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App store avalanche forecast as Apple bows to EU demands
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AAPL
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https://www.nasdaq.com/articles/app-store-avalanche-forecast-as-apple-bows-to-eu-demands
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nan
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nan
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By Martin Coulter
LONDON, Dec 16 (Reuters) - Apple's rivals are positioning themselves as the go-to alternative to its dominant App Store as the iPhone maker prepares to allow others on its devices in the European Union.
The bloc's Digital Markets Act (DMA) will force Apple and fellow tech giant Google to provide space for third-party app stores on their respective iOS and Android devices.
Under the DMA, which comes into effect on a rolling basis over the next two years, third-party alternatives will have an easier route to getting onto iPhones and Android devices.
And as components of the legislation come into effect, rivals from smaller startups to giants like Amazon and Microsoft may try to lure consumers and app developers alike away from Apple and Google.
Ben Wood, CMO of industry analysis firm CSS Insights, said he expects "an avalanche of app stores" in the near future.
"There's an emerging 'coalition of the willing', and all of them have a vested interest in no longer having to pay what they see as a tax to Apple," Wood told Reuters.
Apple and Google did not respond to requests for comment.
Android users can at present install apps from alternative sources, a process known as "sideloading", but this often requires them to switch off certain security settings.
Apple's apparent concessions on sideloading mark a win for industry leaders such as Twitter owner Elon Musk and Spotify CEO Daniel Ek, both of whom have bemoaned the company's 30% surcharge on purchases made via its App Store.
Rivals are plotting to bring frustrated developers over to their stores, promising lower commission fees and the potential for exclusivity deals with popular apps.
"Competition is a good way to improve services," said Paulo Trezentos, CEO of Portugal's Aptoide, which takes a 15% to 25% cut of in-app purchases.
Deals for exclusive content could drive competition in app stores in the same way as it has in the "streaming wars" between Netflix and challengers like Disney+ and Amazon Prime, Trezentos said, adding: "Netflix has content that HBO doesn't have ... App stores can be like that."
Paddle, a payments processor for software companies, has built its own rival to the App Store, which it hopes to launch in Europe once the DMA comes into effect.
"A 30% fee is actually fairly egregious when we look at it in comparison to how much it actually costs to process payments, and what Apple is actually offering," CEO Christian Owens said.
Owens said Paddle's in-app payments system would charge developers between 5% and 10% on transactions.
"The biggest hurdle they are going to need to overcome is the consumer," Wood at CSS Insights said.
(Reporting by Martin Coulter; Editing by Alexander Smith)
((Martin.Coulter@thomsonreuters.com; Follow me on Twitter @Martinjbcoulter;))
The views and 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 Martin Coulter LONDON, Dec 16 (Reuters) - Apple's rivals are positioning themselves as the go-to alternative to its dominant App Store as the iPhone maker prepares to allow others on its devices in the European Union. The bloc's Digital Markets Act (DMA) will force Apple and fellow tech giant Google to provide space for third-party app stores on their respective iOS and Android devices. Apple's apparent concessions on sideloading mark a win for industry leaders such as Twitter owner Elon Musk and Spotify CEO Daniel Ek, both of whom have bemoaned the company's 30% surcharge on purchases made via its App Store.
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By Martin Coulter LONDON, Dec 16 (Reuters) - Apple's rivals are positioning themselves as the go-to alternative to its dominant App Store as the iPhone maker prepares to allow others on its devices in the European Union. Deals for exclusive content could drive competition in app stores in the same way as it has in the "streaming wars" between Netflix and challengers like Disney+ and Amazon Prime, Trezentos said, adding: "Netflix has content that HBO doesn't have ... App stores can be like that." "The biggest hurdle they are going to need to overcome is the consumer," Wood at CSS Insights said.
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By Martin Coulter LONDON, Dec 16 (Reuters) - Apple's rivals are positioning themselves as the go-to alternative to its dominant App Store as the iPhone maker prepares to allow others on its devices in the European Union. The bloc's Digital Markets Act (DMA) will force Apple and fellow tech giant Google to provide space for third-party app stores on their respective iOS and Android devices. Deals for exclusive content could drive competition in app stores in the same way as it has in the "streaming wars" between Netflix and challengers like Disney+ and Amazon Prime, Trezentos said, adding: "Netflix has content that HBO doesn't have ... App stores can be like that."
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The bloc's Digital Markets Act (DMA) will force Apple and fellow tech giant Google to provide space for third-party app stores on their respective iOS and Android devices. Under the DMA, which comes into effect on a rolling basis over the next two years, third-party alternatives will have an easier route to getting onto iPhones and Android devices. Owens said Paddle's in-app payments system would charge developers between 5% and 10% on transactions.
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17988.0
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2022-12-16 00:00:00 UTC
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Stock Market News for Dec 16, 2022
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-dec-16-2022
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nan
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nan
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Wall Street ended sharply lower on Thursday, with the Dow recording its worst daily decline in more than three months, as investors worried that the Fed’s tough talks on inflation and relentless interest rate hikes could push the economy into a recession. All three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) plummeted 2.3% or 764.13 points to end at 33,202.22 points, recording its biggest daily decline since Sep 13, when the blue-chip index slid more than 1,200 points.
The S&P 500 declined 2.5% or 99.57 points to close at 3,895.75 points, recording its worst day in more than two months. Communication services, financials and tech stocks were the biggest losers.
The Communication Services Select Sector SPDR (XLC) and the Technology Select Sector SPDR (XLK) declined 3.9% and 3.7%, respectively. The Materials Select Sector SPDR (XLB) fell 3.1%. All 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq fell 3.2% or 360.36 points to finish at 10,810.53 points, logging its worst daily performance since Nov 2.
The fear-gauge CBOE Volatility Index (VIX) was up 7.99% to 22.83. Decliners outnumbered advancers on the NYSE by a 4.36-to-1 ratio. On Nasdaq, a 2.81-to-1 ratio favored declining issues. A total of 12.15 billion shares were traded on Thursday, higher than the last 20-session average of 10.63 billion.
Recession Fears Grip Markets
U.S. stocks continued to suffer on Thursday, a day after the Fed announced a 50-basis point rate hike, with losses deepening. Stocks took a further hit as disappointing retail sales for November sparked fears of a slowing economy.
On Wednesday, the Fed increased interest rates by another 50 basis points. Fed Chair Jerome Powell had earlier hinted that the central bank could slow down its pace of rate hikes after increasing interest rates by 75 basis points for the fourth consecutive time since June.
The Fed did slow down the pace but Powell didn’t paint a rosy picture of the future and indicated that the central bank would continue increasing interest rates at regular intervals through 2023.
Wednesday’s hike took the benchmark range of 4.25% to 4.50%, and the Fed projected it to top out at 5.25% before it takes a call on pausing the hikes. This is higher than the September forecast of 4.75%.
Recession fears were further ignited after central banks in Europe also hinted at hiking interest rates through 2023. Both the Bank of England and the European Central slowed down their pace of rate hikes but increased interest rates by 50 basis points.
Investors were once again alarmed by this as they believe that ongoing rate increases could push the economy into a recession, setting the tone for a panic sell-off.
Thursday’s sell-off was broad-based. Only 14 stocks in the S&P 500 managed to end the session in the green. Technology stocks were once again the worst sufferers. Shares of Apple Inc. AAPL ended 4.7% lower, while Alphabet Inc. GOOGL declined 4.4%. Apple has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
The Commerce Department reported that retail sales declined 0.6% in November, higher than economists’ expectations of a drop of 0.3%. This is also the biggest decline in the past five months.
The Labor Department reported that jobless claims totaled 211,00 for the week ending Dec 10, decreasing 20,000 from the previous week’s revised level of 231,000. The four-week moving average was 227,250, a decrease of 3,000 from the previous week’s revised average of 230,250.
Continuing claims came in at 1,671,000, an increase of 1,000 from the previous week’s revised level of 1,670,000. The 4-week moving average was 1,625,250 an increase of 43,250 from the previous week's revised average of 1,582,000.
In other economic data released on Thursday, the Empire State manufacturing index declined to a negative 11.2 in December. Also, industrial production declined 0.2% in November.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Apple Inc. (AAPL) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple Inc. AAPL ended 4.7% lower, while Alphabet Inc. GOOGL declined 4.4%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Wall Street ended sharply lower on Thursday, with the Dow recording its worst daily decline in more than three months, as investors worried that the Fed’s tough talks on inflation and relentless interest rate hikes could push the economy into a recession.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. AAPL ended 4.7% lower, while Alphabet Inc. GOOGL declined 4.4%. The Communication Services Select Sector SPDR (XLC) and the Technology Select Sector SPDR (XLK) declined 3.9% and 3.7%, respectively.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. AAPL ended 4.7% lower, while Alphabet Inc. GOOGL declined 4.4%. Wall Street ended sharply lower on Thursday, with the Dow recording its worst daily decline in more than three months, as investors worried that the Fed’s tough talks on inflation and relentless interest rate hikes could push the economy into a recession.
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Shares of Apple Inc. AAPL ended 4.7% lower, while Alphabet Inc. GOOGL declined 4.4%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. All 11 sectors of the benchmark index ended in negative territory.
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17989.0
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2022-12-16 00:00:00 UTC
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Pre-Market Most Active for Dec 16, 2022 : TQQQ, SQQQ, NVAX, MAXR, QQQ, TSLA, SUZ, AAPL, CS, NIO, GOTU, XPEV
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AAPL
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https://www.nasdaq.com/articles/pre-market-most-active-for-dec-16-2022-%3A-tqqq-sqqq-nvax-maxr-qqq-tsla-suz-aapl-cs-nio-gotu
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The NASDAQ 100 Pre-Market Indicator is down -56.83 to 11,288.39. The total Pre-Market volume is currently 30,374,557 shares traded.
The following are the most active stocks for the pre-market session:
ProShares UltraPro QQQ (TQQQ) is -0.31 at $19.33, with 5,346,540 shares traded. This represents a 18.44% increase from its 52 Week Low.
ProShares UltraPro Short QQQ (SQQQ) is +0.79 at $49.57, with 3,738,586 shares traded. This represents a 76.09% increase from its 52 Week Low.
Novavax, Inc. (NVAX) is -1.8 at $9.52, with 1,996,775 shares traded., following a 52-week high recorded in prior regular session.
Maxar Technologies Inc. (MAXR) is +27.9 at $51.00, with 1,414,617 shares traded. As reported by Zacks, the current mean recommendation for MAXR is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is -1.34 at $275.55, with 1,043,068 shares traded. This represents a 8.37% increase from its 52 Week Low.
Tesla, Inc. (TSLA) is +1.18 at $158.85, with 1,031,787 shares traded. TSLA's current last sale is 52.8% of the target price of $300.833.
Suzano S.A. (SUZ) is -0.04 at $9.62, with 972,540 shares traded. As reported by Zacks, the current mean recommendation for SUZ is in the "strong buy range".
Apple Inc. (AAPL) is -0.02 at $136.48, with 780,740 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Credit Suisse Group (CS) is +0.03 at $3.10, with 690,263 shares traded. CS's current last sale is 63.27% of the target price of $4.9.
NIO Inc. (NIO) is +0.21 at $12.09, with 640,044 shares traded. As reported by Zacks, the current mean recommendation for NIO is in the "buy range".
Gaotu Techedu Inc. (GOTU) is +0.11 at $2.69, with 592,319 shares traded., following a 52-week high recorded in prior regular session.
XPeng Inc. (XPEV) is +0.33 at $10.46, with 467,179 shares traded. XPEV's current last sale is 87.17% of the target price of $12.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.02 at $136.48, with 780,740 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Novavax, Inc. (NVAX) is -1.8 at $9.52, with 1,996,775 shares traded., following a 52-week high recorded in prior regular session.
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Apple Inc. (AAPL) is -0.02 at $136.48, with 780,740 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Novavax, Inc. (NVAX) is -1.8 at $9.52, with 1,996,775 shares traded., following a 52-week high recorded in prior regular session.
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Apple Inc. (AAPL) is -0.02 at $136.48, with 780,740 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 30,374,557 shares traded.
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Apple Inc. (AAPL) is -0.02 at $136.48, with 780,740 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The following are the most active stocks for the pre-market session:
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17990.0
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2022-12-16 00:00:00 UTC
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Is Warren Buffett's Berkshire Hathaway Stock a Buy Before the End of 2022?
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AAPL
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https://www.nasdaq.com/articles/is-warren-buffetts-berkshire-hathaway-stock-a-buy-before-the-end-of-2022
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This has been an exceptionally good year for shares of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). Warren Buffett's investment conglomerate is up over 3% with just a couple of weeks to go until 2023, compared to a 16% decline for the S&P 500. This will be the second year in a row Buffett has beaten the market.
Thanks to this performance amid a bear market, investors have been keen on the world's wealthiest professional investor once again. But is now still a good time to buy shares of Berkshire Hathaway?
An easy method for making a timely Berkshire Hathaway purchase
Since the start of the last bull market (early 2009, when the Great Recession was still wreaking havoc on the economy), Berkshire Hathaway stock hasn't exactly been a huge market-beating investment. On the contrary, Buffett and vice-chair Charlie Munger have been content to sit on their portfolio of wholly owned businesses and publicly traded stocks. Big, splashy acquisitions have been few and far between as high-growth technology stocks dominated the 2010s.
But value investing like Buffett and Munger are known for has come back into style this year, and Berkshire's previously out-of-favor businesses (insurance, banks, infrastructure, and energy) have done well in 2022. Thus the stock's outperformance.
But Berkshire shares are notoriously difficult to stick a value on. For one thing, the portfolio of wholly owned businesses is large and extensive (GEICO insurance and the BNSF railroad, for example). Then add to that the four dozen or so stocks Berkshire and subsidiaries hold, which together are worth upward of $350 billion. That makes using traditional metrics to value Berkshire stock almost useless. For example, the stock's current price-to-earnings (P/E) ratio is 55, but earlier in the year, it was less than 10.
Instead, Buffett and Munger tend to use book value (measured as a company's total assets minus liabilities) to determine the value of Berkshire Hathaway. Here at the end of 2022, shares trade toward the higher end of their range over the last decade on a price-to-book-value (P/B) basis.
BRK.B data by YCharts.
Granted, as you can see from the chart above, even when trading at 1.5 times P/B, Berkshire stock tended to keep rising. But those returns didn't make it a market-beating investment. Thus, this metric can actually provide a clue as to how good a buy Berkshire Hathaway stock is right now.
Historically, when P/B is near or below 1, Buffett and Munger have deployed lots of cash to repurchase Berkshire shares. This is what occurred in 2020 and 2021. In the 2021 annual update, Buffett and Munger used $51.7 billion to purchase and retire Berkshire stock.
But things have changed a bit in 2022. Share repurchases continue, but at a much slower pace: just $5.25 billion through the first nine months of 2022. The top team at Berkshire has instead shifted its attention to other stocks.
A $66.2 billion spending spree
This year, Berkshire Hathaway began shopping the stock market in earnest again. Early in 2022, it was announced that reinsurance specialist Alleghany was being acquired for $11.6 billion. And Buffett has been busy adding other stocks to the portfolio of non-subsidiaries. In total, Berkshire Hathaway has purchased over $66.2 billion in equity securities (and sold $17.3 billion, for a total net purchase of $48.9 billion).
What has the top team at Berkshire Hathaway been buying instead of its own stock in 2022? More Apple (NASDAQ: AAPL), which now accounts for some 40% of the Berkshire stock portfolio. Top Apple chip supplier Taiwan Semiconductor Manufacturing (NYSE: TSM) was also a recent addition. Oil stocks have ranked high on the buy list, with Chevron (NYSE: CVX) and Occidental Petroleum (NYSE: OXY) together now accounting for nearly 13% of Buffett's equity holdings. And a number of banking and financial services companies have also factored prominently into the stock purchases this year.
In total, Buffett and company have bought or added to 19 different stocks so far in 2022.
Is Berkshire Hathaway a buy?
Berkshire Hathaway is a wonderful company to own, akin to having an exchange-traded fund on the portfolio of the world's greatest value investor. But is it a best-buy now at the end of 2022? Based on Buffett's own purchase activity, I'd say no. After a brutal year in the stock market, there are deals to be had out there, especially among high-quality tech stocks.
Nevertheless, if you're looking for consistent growth over the long term, there's never anything wrong with buying a few more shares of Berkshire Hathaway.
10 stocks we like better than Berkshire Hathaway
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 1, 2022
Nicholas Rossolillo has positions in Apple and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long 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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More Apple (NASDAQ: AAPL), which now accounts for some 40% of the Berkshire stock portfolio. On the contrary, Buffett and vice-chair Charlie Munger have been content to sit on their portfolio of wholly owned businesses and publicly traded stocks. But value investing like Buffett and Munger are known for has come back into style this year, and Berkshire's previously out-of-favor businesses (insurance, banks, infrastructure, and energy) have done well in 2022.
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More Apple (NASDAQ: AAPL), which now accounts for some 40% of the Berkshire stock portfolio. This has been an exceptionally good year for shares of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Taiwan Semiconductor Manufacturing.
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More Apple (NASDAQ: AAPL), which now accounts for some 40% of the Berkshire stock portfolio. An easy method for making a timely Berkshire Hathaway purchase Since the start of the last bull market (early 2009, when the Great Recession was still wreaking havoc on the economy), Berkshire Hathaway stock hasn't exactly been a huge market-beating investment. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Nicholas Rossolillo has positions in Apple and Berkshire Hathaway.
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More Apple (NASDAQ: AAPL), which now accounts for some 40% of the Berkshire stock portfolio. But is now still a good time to buy shares of Berkshire Hathaway? In total, Berkshire Hathaway has purchased over $66.2 billion in equity securities (and sold $17.3 billion, for a total net purchase of $48.9 billion).
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17991.0
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2022-12-16 00:00:00 UTC
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2 Growth Stocks Down 69% and 77% to Buy Right Now
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https://www.nasdaq.com/articles/2-growth-stocks-down-69-and-77-to-buy-right-now
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Wins have been hard to come by for technology investors in 2022. A combination of high inflation, rising interest rates, additional macroeconomic headwinds, and company-specific pressures have combined to crush valuations for growth-dependent companies in the sector, but there are some silver linings to the otherwise challenging backdrop.
This year's massive valuation pullback for growth stocks has pushed prices for some very promising tech companies down to attractive levels. Read on to see why a duo of Motley Fool contributors has identified these tech leaders as two of the best beaten-down stocks to buy right now.
1. Cloudflare
Keith Noonan: Cloudflare (NYSE: NET) provides content-delivery-network (CDN) technologies, protection against distributed-denial-of-service (DDoS) attacks, and other cloud-based web services -- and it's arguably one of the most important companies of the Internet Age. Cloudflare's DDoS-protection technologies prevent bad actors from flooding websites and applications with waves of service requests that could take them offline. Meanwhile, its CDN software can speed up the rate at which information is transferred and made accessible around the world. Essentially, the company's cloud-based software offerings make it possible for much of the modern internet to function efficiently, and demand for these services has been translating to strong sales growth.
Cloudflare's revenue grew roughly 47% year over year in the third quarter to reach $253.9 million, and the company posted a non-GAAP (adjusted) gross margin of roughly 78% in the period. Even as macroeconomic conditions have become less favorable, Cloudflare has continued to grow revenue at an encouraging clip, and its long-term expansion outlook remains promising even if the economic environment continues to weaken in the near term.
Valued at approximately 17 times this year's expected sales, it's admittedly fair to say that the company doesn't look cheap by most conventional metrics. Even after falling roughly 61% year to date and 77% from its peak, Cloudflare still has a highly forward-looking valuation, but this is a case where strong growth actually looks like a pretty reliable bet.
Cloudflare is a company that's built for the long term. The business is growing sales at a rapid rate despite headwinds and tough bases of comparison, it's posting strong gross margins, and it's already recording positive non-GAAP (adjusted) free cash flow and net income. With its highly scalable software offerings, an attractive long-term demand outlook, and an encouraging margins picture, I think Cloudflare is poised to deliver big wins for patient investors.
2. Meta Platforms
Parkev Tatevosian: Meta Platforms (NASDAQ: META) has been facing multiple headwinds simultaneously, and the stock is now down roughly 69% from its peak. Apple's (NASDAQ: AAPL) privacy policy changes made it harder for Meta to sell targeted advertising. Meanwhile, TikTok's popular short video format has forced Meta to transition its service to accommodate the change in people's tastes. As if that wasn't enough, marketers have turned cautious and reduced spending as the war in Ukraine and slowing economic growth clouded visibility.
Amid those challenges, it can be easy to forget that Meta boasts 2.9 billion daily active users across its family of apps. Meta's platforms are free to use. The company makes money by showing advertisements to those browsing the app. Of course, advertisers' willingness to spend on your platform increases with the total number of users. Meta's scale has helped boost revenue from $5.1 billion in 2012 to $118 billion in 2021.
META PE Ratio data by YCharts.
More importantly, Meta has reached excellent economies of scale, with its operating income exploding from $538 million to $46.7 billion in that same time. Admittedly, the near-term challenges may persist well into 2023 for Meta. The company may never return to the explosive growth rate of the last decade. Still, trading at a price-to-earnings of 11 and a price-to-free cash flow of 12, Meta's stock price has arguably overreacted to the challenges in the short term. That's opened an opportunity for long-term investors to scoop up shares of this stock at bargain valuations.
Investors can profit off the tough climate for growth stocks
While this year has generally been very challenging for technology and growth investors, the difficult conditions won't last forever. Big sell-offs have created opportunities to build positions in some category-leading companies at discounts that open the door for impressive long-term returns, and Cloudflare and Meta Platforms are two stocks that look attractively valued at current prices. Macroeconomic trends and business-specific developments may lead to more volatility in the near term, but there's a good chance that investors taking a buy-and-hold approach with these companies will see strong returns.
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
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 Cloudflare. Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple, Cloudflare, 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's (NASDAQ: AAPL) privacy policy changes made it harder for Meta to sell targeted advertising. The business is growing sales at a rapid rate despite headwinds and tough bases of comparison, it's posting strong gross margins, and it's already recording positive non-GAAP (adjusted) free cash flow and net income. With its highly scalable software offerings, an attractive long-term demand outlook, and an encouraging margins picture, I think Cloudflare is poised to deliver big wins for patient investors.
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Apple's (NASDAQ: AAPL) privacy policy changes made it harder for Meta to sell targeted advertising. The business is growing sales at a rapid rate despite headwinds and tough bases of comparison, it's posting strong gross margins, and it's already recording positive non-GAAP (adjusted) free cash flow and net income. Meta Platforms Parkev Tatevosian: Meta Platforms (NASDAQ: META) has been facing multiple headwinds simultaneously, and the stock is now down roughly 69% from its peak.
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Apple's (NASDAQ: AAPL) privacy policy changes made it harder for Meta to sell targeted advertising. Meta Platforms Parkev Tatevosian: Meta Platforms (NASDAQ: META) has been facing multiple headwinds simultaneously, and the stock is now down roughly 69% from its peak. Big sell-offs have created opportunities to build positions in some category-leading companies at discounts that open the door for impressive long-term returns, and Cloudflare and Meta Platforms are two stocks that look attractively valued at current prices.
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Apple's (NASDAQ: AAPL) privacy policy changes made it harder for Meta to sell targeted advertising. Meta Platforms Parkev Tatevosian: Meta Platforms (NASDAQ: META) has been facing multiple headwinds simultaneously, and the stock is now down roughly 69% from its peak. Investors can profit off the tough climate for growth stocks While this year has generally been very challenging for technology and growth investors, the difficult conditions won't last forever.
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17992.0
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2022-12-16 00:00:00 UTC
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VettaFi Voices On: The Best New ETFs of 2022
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https://www.nasdaq.com/articles/vettafi-voices-on%3A-the-best-new-etfs-of-2022-0
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As 2022 comes to a close, the total ETFs currently trading in the market has now topped 3,000 — a seemingly impossible number when the first products launched nearly three decades ago. Our VettaFi Voices weighed in on which new ETFs caught their attention this year.
Also, for a fun bonus question to revisit next December, how many ETFs will launch in 2023?
Todd Rosenbluth, head of research, VettaFi: Since we’re doing this in the company Slack and not in person, I don’t have to break out my KPOP ETF-themed music to get the audience on my side. I just need the facts.
To me, the best new ETF of 2022 is the Capital Group Dividend Value ETF (CGDV), which was part of the firm’s initial suite of active ETFs in February and which already has over $1 billion in assets. Dividend, value, and active is a strong summary of what worked in 2022.
But I'm HAPY (real ticker) for YALL (real ticker) VettaFi Voices to say NOPE (real ticker) and BUCK (real ticker) my idea for the best ETF this YEAR (real ticker). I could do this for a while.
Lara Crigger, editor-in-chief, VettaFi: That is some impressive ticker game, Todd.
So, by my count, there were a whopping 410 ETFs launched in 2022 (so far!). I know a lot of us thought that single-stock ETFs might inflate that count, but only 24 launched in 2022, which is less than 1% of the total.
It’s not all that surprising. As I’ve been saying since it passed, the ETF Rule really opened up the floodgates, making it cheaper and easier for any manager with a lawyer and a dream to launch an ETF. Even if markets tank, I can’t imagine we’ll soon find ourselves in a situation where the trend for ETF launches bends on a downward trajectory, rather than upward. So maybe we’ll see 500+ launches next year? I don’t know. The sky’s the limit.
Rosenbluth: Yes, I had thought we would see more single-stock ETFs launch, but thankfully asset managers are focusing on the handful of high-profile growth stocks, like Apple (AAPL) and Tesla (TSLA), and not just offering up an inverse Coca Cola ETF.
Crigger: True, though honestly I could see good use cases for something like an inverse Coca-Cola ETF. Because if the idea is that these products should be short-term trading instruments, allowing traders to make extremely tactical moves on ephemeral market spikes and dips, then investors should want available to them a full menu of the most liquid stocks in the world -- of which KO is one.
Rosenbluth: I see your point, but as someone with a Diet Coke addiction, I don't see a world where I would want an inverse version of KO.
Crigger: I’m a Pepsi girl myself. Anyway, that said, single-stock ETFs really haven't gathered the assets like I think many market watchers thought they might. All told, those 24 ETFs have just $631 million in assets. Most of that money isn’t even in the single-stock ETFs, but the single-bond ETFs: the $192 million US Treasury 3 Month Bill ETF (TBIL), which holds three-month T-bills, and the $158 million US Treasury 2 Year Note ETF (UTWO), which holds two-year notes.
Perfect timing for those funds, by the way! For most of the year, going super short on duration has been a very smart strategy.
Rosenbluth: There are a few other ETFs I found interesting that have not yet gained much traction yet. For example, the small-cap growth stock-focused Invesco Nasdaq Future Gen 200 ETF (QQQS) launched in October, two years after the Invesco Nasdaq Next Gen 100 ETF (QQQJ) came out, which is itself the smaller-cap version of the Invesco QQQ Trust (QQQ). QQQJ has accumulated over $800 million in assets in two years, so I think QQQS will be one to watch over next two years, too.
I also like the PIMCO Senior Loan Active ETF (LONZ), since PIMCO was early with active ETFs, but now seems to be ready to be a bigger player in the space. The senior loan ETF market is concentrated in a handful of firms, but PIMCO has strong expertise to tap into. If investors begin to take on more credit risk in 2023, as the Fed slows down rate hikes, then senior loans could be of greater interest to advisors.
Crigger: For my part, I think in 2022 some of the most innovative products have come to market that we’ve seen in years. It’s impossible to pick a favorite launch in a year that saw the first sector-based fixed income ETFs, the first single-stock ETFs approved and launched, the first short bitcoin ETF, and even, as Todd alluded to, the first K-Pop ETF launch. (By the way, am I the only one who remembers the Quincy Jones ETF?)
Rosenbluth: I remember the proposal for a Quincy Jones ETF, but that one never made it. KPOP did what Quincy couldn’t.
Crigger: True! Also, there were some amazing under-the-radar launches, weren’t there? The Nightshares ETFs are one of those fund families I genuinely didn’t see coming — a strategy that only buys when markets close and sells when they open? Plus, the old commodities reporter in me was nerding out to see not one, but two distinct no K-1 ag ETFs launch (Teucrium’s TILL and Invesco’s PDBA). I honestly didn’t realize there wasn’t already a K-1-free ag exposure, not until those came to market. Todd, what was the ETF launch that took you most by surprise?
Rosenbluth: Well, Lara, we talked about single-stock ETFs, like the AXA TSLA Bear Daily ETF (TSLQ) already, but I was surprised to see the single-Treasury bond ETFs you mentioned, like TBIL. I’d figured advisors and investors were sufficiently covered by ETFs like BIL and SHV, but the purity of a targeted, single-Treasury note, with the liquidity and ease of use of an exchange traded vehicle, and with clear pricing, over time has made more and more sense to me. Investors think of ETFs as being diversified across multiple securities, but in 2022 we learned they do not have own multiple securities to offer diversification potential.
Dave Nadig, financial futurist, VettaFi: So, this dovetails with my thoughts nicely. I think the Treasury products from F/m are the launches of the year, precisely because they seem so boring. They're dirt-easy to explain — the funds just hold on-the-run Treasuries — but they solve what turns out to be an actual problem: Many advisors don't have access to a cheap, easy way to buy Treasuries direct, at least not in a way that plays nicely with all the rest of their trading and reporting systems. Even those that can access Treasuries through a desk, I’ve discovered, often end up paying more in slippage and fees than the expense ratio of these new ETFs. Which is insane, but enough folks have said this to me now that I just have to believe it.
So as boring as they are, it turns out they solve a genuinely real problem, and I'm a fan of people solving real problems. Add in the BondBloxx products, and we have innovation in the fixed income space for the first time in... well, a long time.
As for the horse race, I think the pace of launches comes way down (I disagree with Lara here -- markets matter), so if we crossed 300 launches in 2023, I'd be surprised. I wouldn't, however, be surprised by 2023 being our first $1 trillion year for flows. Even in boring markets, the flows story never abates.
Rosenbluth: Dave, not only would I not be surprised by $1 trillion in flows next year, I expect it to occur. And I think you are too low with your launch forecast. We’ve had lots of new entrants over the last couple of years: Matthews Asia, Federated, Harbor Capital, Neuberger Berman, DoubleLine, Capital Group, Touchstone) and Morgan Stanley is coming soon. They will not slow down their efforts to broaden the lineup. So as far as new ETFs, I think we’ll see 450 new ETFs in 2023 (without looking up where we are at right now). I do not expect a high-tide wave of single-stock launches in 2023, though.
While I’m thinking of new launches, I was also excited for the Fairlead Tactical Sector ETF (TACK), which is run by Katie Stockton as a fund of funds using technical analysis. I love when people bring expertise to the ETF market and gain efficiency, and Katie is smart and makes a compelling case with her strategy.
Dave, I thought you might’ve listed [as one of your favorites] one of the many ESG ETFs that came out.
Nadig: I agree that TACK has real appeal, and unemotional technical investing has a big audience. Even if you’re not a technical analysis believer, Katie's commentary on the markets I find incredibly helpful in understanding the context of the market.
As for ESG… the reality is that the market hasn't cared much about ESG this year, and I'm not sure that turns around massively in the next year. I think the big battle for ESG is going to end up being much more around stewardship and voting, rather than "is Exxon better/worse than Tesla" based on over-abstracted single-scores.
While ESG investing isn't going anywhere, I think the initial rush of launches and marketing is behind us, and now, as usually happens, I suspect the best approaches will win in the marketplace of ideas. It'll just take some time.
Rosenbluth: True, but I like that we have more ESG choices, like the Xtrackers S&P ESG Dividend Aristocrats ETF (SNPD), as well as S&P 500 growth and value products from DWS. For advisors that want to shift to an ESG allocation model, they have the tools to do so.
Roxanna Islam, associate director of research, VettaFi: I'll throw in the WisdomTree Battery Value Chain and Innovation Fund (WBAT), which launched in February. I think electric vehicles are one of the most compelling ideas in the thematic space. It's not a matter of "if" they will happen -- it's just a question of when exactly we will transition and how companies will execute. Batteries and other supporting technologies are among the earliest beneficiaries of this trend, and it’s great seeing recognition of this silo within the EV market.
Yes, there were a few ETFs in battery technology, like LIT and BATT, that launched before this year, but it will be interesting to see how WBAT compares, given that it currently has less materials exposure and higher exposure to industrial constituents that are further up the value chain (that’s a 40% weighting to industrials vs. just under 20% for LIT and BATT).
For ETF launches, I think next year will be difficult to predict, but it may be slightly higher than this year. So I’ll pick a round number and say 450 new launches, too.
You have to consider the economic environment and investor risk aversion and how that will play into new launches. But the great thing about ETFs is that they’ve always been built on innovation (e.g., all the unique launches Lara mentioned above like single-stock ETFs, short bitcoin futures ETFs, etc.). So I think there will still be a few new surprises next year as well.
Rosenbluth: I will now predict 451 new ETFs in 2023, so as to be ahead of Roxanna in true “Price is Right” style. I have high hopes of winning the prize of a framed photo of the VettaFi Voices together at Exchange. (We are doing that, right? Right?)
Be sure to catch the VettaFi Voices, as well as a host of experts, at Exchange, on February 5–8, 2023, in sunny Miami, Florida. To learn more about the event and register, please visit the Exchange website.
For more news, information, and analysis, visit the Modern Alpha 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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Rosenbluth: Yes, I had thought we would see more single-stock ETFs launch, but thankfully asset managers are focusing on the handful of high-profile growth stocks, like Apple (AAPL) and Tesla (TSLA), and not just offering up an inverse Coca Cola ETF. Because if the idea is that these products should be short-term trading instruments, allowing traders to make extremely tactical moves on ephemeral market spikes and dips, then investors should want available to them a full menu of the most liquid stocks in the world -- of which KO is one. I’d figured advisors and investors were sufficiently covered by ETFs like BIL and SHV, but the purity of a targeted, single-Treasury note, with the liquidity and ease of use of an exchange traded vehicle, and with clear pricing, over time has made more and more sense to me.
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Rosenbluth: Yes, I had thought we would see more single-stock ETFs launch, but thankfully asset managers are focusing on the handful of high-profile growth stocks, like Apple (AAPL) and Tesla (TSLA), and not just offering up an inverse Coca Cola ETF. But I'm HAPY (real ticker) for YALL (real ticker) VettaFi Voices to say NOPE (real ticker) and BUCK (real ticker) my idea for the best ETF this YEAR (real ticker). For example, the small-cap growth stock-focused Invesco Nasdaq Future Gen 200 ETF (QQQS) launched in October, two years after the Invesco Nasdaq Next Gen 100 ETF (QQQJ) came out, which is itself the smaller-cap version of the Invesco QQQ Trust (QQQ).
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Rosenbluth: Yes, I had thought we would see more single-stock ETFs launch, but thankfully asset managers are focusing on the handful of high-profile growth stocks, like Apple (AAPL) and Tesla (TSLA), and not just offering up an inverse Coca Cola ETF. Most of that money isn’t even in the single-stock ETFs, but the single-bond ETFs: the $192 million US Treasury 3 Month Bill ETF (TBIL), which holds three-month T-bills, and the $158 million US Treasury 2 Year Note ETF (UTWO), which holds two-year notes. It’s impossible to pick a favorite launch in a year that saw the first sector-based fixed income ETFs, the first single-stock ETFs approved and launched, the first short bitcoin ETF, and even, as Todd alluded to, the first K-Pop ETF launch.
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Rosenbluth: Yes, I had thought we would see more single-stock ETFs launch, but thankfully asset managers are focusing on the handful of high-profile growth stocks, like Apple (AAPL) and Tesla (TSLA), and not just offering up an inverse Coca Cola ETF. If investors begin to take on more credit risk in 2023, as the Fed slows down rate hikes, then senior loans could be of greater interest to advisors. It’s impossible to pick a favorite launch in a year that saw the first sector-based fixed income ETFs, the first single-stock ETFs approved and launched, the first short bitcoin ETF, and even, as Todd alluded to, the first K-Pop ETF launch.
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2022-12-15 00:00:00 UTC
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Stock Market News for Dec 15, 2022
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https://www.nasdaq.com/articles/stock-market-news-for-dec-15-2022
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U.S. stocks ended lower on Wednesday in a volatile trading session as the Fed hiked interest rates by 50 basis points but signaled more rate hikes in the coming months. All three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slid 0.4% or 142.29 points to close at 33,966.35 points.
The S&P 500 fell 0.6% or 24.33 points to finish at 3,995.32 points. Communication services, financials and materials were the worst performers on the index.
The Communication Services Select Sector SPDR (XLC) and the Financials Select Sector SPDR (XLF) each declined 1.3%. The Materials Select Sector SPDR (XLB) fell 1.1%. Ten of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq declined 0.8% or 85.93 points to end at 11,170.89 points.
The fear-gauge CBOE Volatility Index (VIX) was down 6.25% to 21.14. Decliners outnumbered advancers on the NYSE by a 1.39-to-1 ratio. On Nasdaq, a 1.42-to-1 ratio favored declining issues. A total of 12.15 billion shares were traded on Wednesday, higher than the last 20-session average of 10.55 billion.
Investors Assess Rate Hike and Inflation Status
Wall Street ended lower on Wednesday in a choppy trading session as they digested another round of interest rate hikes. The Fed hiked interest rates by another 50 basis points. Investors had been hoping for a 50-basis point rate hike as fresh economic data released earlier this week showed that inflation is slowing.
The Fed had also hinted at slowing down its pace of rate hikes after increasing interest rates by 75 basis points for the fourth consecutive time since June. Sentiments were bullish ahead of the announcement which saw the Dow climbing as much as 287.01 points earlier in the day.
However, investors’ confidence was dented after the Fed along with the announcement also signaled further rate hikes through 2023. The Fed also said that it required more economic data to change its view of the current state of inflation. Wednesday’s 50-basis point rate hike took the benchmark range of 4.25% to 4.50%, the highest since 2007.
The Fed also said that it now sees taking rates to the benchmark range of 5.1%, before it takes a call on pausing the hikes, which is higher than the forecast of 4.6% the central bank said in September.
This once again raised concerns among investors as they assessed that constant rate hikes could further slow down the economy and might push the nation into a recession.
Financial stocks were one of the worst performers on Wednesday. Shares of Bank of America Corporation BAC and The Goldman Sachs Group, Inc. GS fell 1.4% and 2.3%, respectively. Bank of America has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Treasury yields also fluctuated during Fed Chair Jerome Powell’s press conference and ended the session lower after the central bank indicated more rate hikes in the coming months. Shares of Apple Inc. AAPL declined 1.6%, while Netflix, Inc. NFLX fell 0.8%.
Economic Data
In other economic data released on Wednesday, the Labor Department said that U.S. import prices decreased 0.6% in November, after falling 0.4% the prior month. Prices of U.S. exports decreased 0.3% in November, after falling 0.4% in October.
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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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Shares of Apple Inc. AAPL declined 1.6%, while Netflix, Inc. NFLX fell 0.8%. Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors had been hoping for a 50-basis point rate hike as fresh economic data released earlier this week showed that inflation is slowing.
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Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. AAPL declined 1.6%, while Netflix, Inc. NFLX fell 0.8%. U.S. stocks ended lower on Wednesday in a volatile trading session as the Fed hiked interest rates by 50 basis points but signaled more rate hikes in the coming months.
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Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. AAPL declined 1.6%, while Netflix, Inc. NFLX fell 0.8%. U.S. stocks ended lower on Wednesday in a volatile trading session as the Fed hiked interest rates by 50 basis points but signaled more rate hikes in the coming months.
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Shares of Apple Inc. AAPL declined 1.6%, while Netflix, Inc. NFLX fell 0.8%. Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report To read this article on Zacks.com click here. U.S. stocks ended lower on Wednesday in a volatile trading session as the Fed hiked interest rates by 50 basis points but signaled more rate hikes in the coming months.
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2022-12-15 00:00:00 UTC
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US STOCKS-Wall Street slides more than 1% on angst over hawkish Fed
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https://www.nasdaq.com/articles/us-stocks-wall-street-slides-more-than-1-on-angst-over-hawkish-fed
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By Ankika Biswas and Johann M Cherian
Dec 15 (Reuters) - Wall Street's main stock indexes slid more than 1% on Thursday, as the Federal Reserve's guidance to stick to protracted policy tightening quelled hopes of the rate-hike cycle ending anytime soon.
The Fed's policy-setting committee projected it would continue raising rates to above 5% in 2023, a level not seen since a steep economic downturn in 2007.
"The issue was the market was looking for rate cuts in 2023 and that's not compatible with any credible economic scenario because you'd need to have quite a collapse in economic activity and a speedy deterioration of the labor market," said Willem Sels, global CIO, private banking and wealth management at HSBC.
Money market participants currently expect at least two 25 bps rate hikes next year and borrowing costs to peak at 4.9% in the first half, before falling to around 4.4% by the year end. FEDWATCH
Wall Street's main indexes have staged a strong recovery since hitting 2022 lows in October on hopes of a less aggressive Fed, but the rally stalled in December on the back of mixed economic data and worrying corporate forecasts.
Investors also digested economic data on Thursday that showed a steeper-than-expected decline in retail sales in November and the number of Americans filing for unemployment benefits falling last week, indicating a tight labor market.
"Today's data reinforces what Powell was saying yesterday that this is going to take time and the market seems to want to try and fast forward through the messy parts and it's just not going to be able to do that because the Fed is not going to let it," said Sameer Samana, seniorglobal marketstrategist at Wells Fargo Investment Institute.
The Bank of England and the European Central Bank also raised their key interest rate by 50 bps each and indicated an extended hiking cycle in a bid to tame spiraling inflation.
At 9:38 a.m. ET, the Dow Jones Industrial Average .DJI was down 441.84 points, or 1.30%, at 33,524.51, the S&P 500 .SPX was down 60.47 points, or 1.51%, at 3,934.85, and the Nasdaq Composite .IXIC was down 201.52 points, or 1.80%, at 10,969.36.
All the 11 major S&P 500 .SPX sectors were in the red, with communication services .SPLRCL and technology stocks .SPLRCT falling more than 2% and bearing the brunt of selling pressure.
Shares of megacap companies which are sensitive to rising rates fell. Apple Inc AAPL.O, Amazon.com Inc AMZN.Oand Microsoft Corp MSFT.O dropped between 1% and 3%.
Netflix Inc NFLX.O slumped 6.8% after a media report that the entertainment services firm would let its advertisers take their money back after missing viewership targets.
Nvidia Corp NVDA.O slipped 3.2% after HSBC Global Research began coverage of the chipmaker's stock with a "reduce" rating, while Western Digital WDC.O slid 9.2% following a report that Goldman Sachs downgraded the data storage firm's stock to "sell" from "neutral".
Declining issues outnumbered advancers for a 5.59-to-1 ratio on the NYSE and 3.61-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week highs and four new lows, while the Nasdaq recorded 24 new highs and 120 new lows.
(Reporting by Sruthi Shankar, Ankika Biswas and Johann M Cherian in Bengaluru; Editing by Savio D'Souza, Vinay Dwivedi and Anil D'Silva)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.Oand Microsoft Corp MSFT.O dropped between 1% and 3%. By Ankika Biswas and Johann M Cherian Dec 15 (Reuters) - Wall Street's main stock indexes slid more than 1% on Thursday, as the Federal Reserve's guidance to stick to protracted policy tightening quelled hopes of the rate-hike cycle ending anytime soon. FEDWATCH Wall Street's main indexes have staged a strong recovery since hitting 2022 lows in October on hopes of a less aggressive Fed, but the rally stalled in December on the back of mixed economic data and worrying corporate forecasts.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.Oand Microsoft Corp MSFT.O dropped between 1% and 3%. By Ankika Biswas and Johann M Cherian Dec 15 (Reuters) - Wall Street's main stock indexes slid more than 1% on Thursday, as the Federal Reserve's guidance to stick to protracted policy tightening quelled hopes of the rate-hike cycle ending anytime soon. FEDWATCH Wall Street's main indexes have staged a strong recovery since hitting 2022 lows in October on hopes of a less aggressive Fed, but the rally stalled in December on the back of mixed economic data and worrying corporate forecasts.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.Oand Microsoft Corp MSFT.O dropped between 1% and 3%. "The issue was the market was looking for rate cuts in 2023 and that's not compatible with any credible economic scenario because you'd need to have quite a collapse in economic activity and a speedy deterioration of the labor market," said Willem Sels, global CIO, private banking and wealth management at HSBC. FEDWATCH Wall Street's main indexes have staged a strong recovery since hitting 2022 lows in October on hopes of a less aggressive Fed, but the rally stalled in December on the back of mixed economic data and worrying corporate forecasts.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.Oand Microsoft Corp MSFT.O dropped between 1% and 3%. By Ankika Biswas and Johann M Cherian Dec 15 (Reuters) - Wall Street's main stock indexes slid more than 1% on Thursday, as the Federal Reserve's guidance to stick to protracted policy tightening quelled hopes of the rate-hike cycle ending anytime soon. The Fed's policy-setting committee projected it would continue raising rates to above 5% in 2023, a level not seen since a steep economic downturn in 2007.
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2022-12-15 00:00:00 UTC
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Invest like a Pro: These 10 Stocks Could Outperform in 2023
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AAPL
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https://www.nasdaq.com/articles/invest-like-a-pro%3A-these-10-stocks-could-outperform-in-2023
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The year 2022 was marked by a slew of macroeconomic factors that elevated the prospects of certain sectors while considerably diminishing the outlook for a few others. The unprecedented war led to a rise in oil and gas prices, which tremendously brightened the prospects of the Energy sector. However, the same inflationary environment dug a hole in consumers’ pockets, leading to a steadfast decline in the Retail industry.
Further, the slowing economic growth caused a decline in corporate earnings, which had a number of unintended consequences. Corporations led the rally of hiring freezes and employee layoffs, while also lowering their advertising budgets to cut costs, which ultimately befell the technology sector and social media companies.
To make things worse, the Federal Reserve increased interest rates five consecutive times this year to combat inflation. The domino effect of the war has challenged the scenario of 2023, but there are a few companies that still show promising prospects. Combined with the TipRanks Smart Score Rating system, we have discovered ten gems that could add sheen to your portfolio in 2023.
Wall Street analysts are highly optimistic about these companies’ stock trajectory and have allotted high price targets that display impressive upside potential for the next 12 months. Let’s take a closer look at these companies and why analysts remain bullish on them.
Fortinet, Inc. (NASDAQ:FTNT)
Market Value- $42.40 billion; Smart Score- “Perfect 10”
California-based Fortinet (FTNT, $54.27) is an end-to-end cybersecurity solutions provider. The company earns subscription-based revenue by offering services including physical firewalls, antivirus software, intrusion prevention systems, and endpoint security components. Year to date, FTNT stock has lost 18.5%.
Recently, Robert W. Baird analyst Shrenik Kothari had an interesting and enlightening meeting with Fortinet’s top brass. “We came away with a better understanding of FTNT's present demand drivers, technology, and platform strategy and a higher conviction that the company is well-positioned to navigate the tough macro environment,” Kothari added.
Kothari has a higher price target on FTNT stock at $70, which implies a nearly 29% upside potential. Meanwhile, on TipRanks, the average Fortinet price forecast is $65.59, implying 20.9% upside potential from current levels. In the last three months, 16 analysts have recommended a buy on FTNT, while only one has recommended a hold.
Jazz Pharmaceuticals (NASDAQ:JAZZ)
Market value- $9.92 billion; Smart Score- “Perfect 10”
Ireland-based Jazz Pharmaceuticals (JAZZ, $157.50) is a specialty biotechnology company focused on the identification, development, and commercialization of pharmaceutical products in the areas of narcolepsy, oncology, pain, and psychiatry. Year to date, JAZZ stock has grown 20.2% thanks to continued demand momentum for its drugs.
Analyst Madhu Kumar of Goldman Sachs is encouraged that Jazz was able to meet its 5% adjusted operating margin improvement this year, well ahead of its plan to do so in 2025. Notably, Kumar believes that “management will be able to maintain these operating margin improvements into 2025, even without substantial top-line growth from key franchises.”
The five-star analyst has a Buy rating on JAZZ stock with a price target of $190 (20.6% upside potential). Meanwhile, on TipRanks, the average Jazz Pharmaceuticals price target is pegged higher at $195.20, implying 23.9% upside potential from current levels. All ten analysts tracking JAZZ have a unanimous Buy rating on the stock.
Apple (NASDAQ:AAPL)
Market Value- $2.28 trillion; Smart Score- 8
Here comes the trillion-dollar company, Apple (AAPL, $143.21), which has rolled out several beloved products that unfailingly make it into every home. The iPhone maker has seen the demand for its products soften owing to inflationary trends and shifting consumer preferences. Year to date, AAPL stock has lost 20.9%.
Additionally, the worker unrest at Foxconn, the Zhengzhou manufacturing hub for iPhones in China, has also put a strain on the supply. Apple is mulling over shifting its manufacturing base and over-dependence on China to other countries, and India may be a potential landmark.
Further, the passing of the Digital Markets Act (DMA) by the European Union may hurt Apple’s revenues to a small extent. Through the DMA, Apple will be required to allow third-party apps on its iOS App Store, to combat anticompetitive practices.
Having said that, Evercore ISI analyst Amit Daryanani does not believe the DMA ruling will have a significant impact on Apple's app store revenues. The analyst remains highly optimistic about Apple’s future prospects and recommends a Buy rating on the stock. His price target of $190 (32.7% upside) is also above the average Apple price target of $179.71, which implies 25.5% upside potential from current levels. Also, the analyst consensus is a Strong Buy based on 24 Buys and four Hold ratings.
T-Mobile US (NASDAQ:TMUS)
Market value- $177.12 billion; Smart Score- 8
T-Mobile US (TMUS, $142.36) is undoubtedly one of the most insulated stocks in the current macro backdrop. The company’s leading position as a 5G high-speed wireless service provider continues to drive customer growth and, thus, strong cash flow generation. The telecom behemoth has gained 24.4% so far this year.
TMUS registered record subscriber growth for the quarter ending September 30, 2022, with a whopping 1.6 million postpaid net customer additions and 578,000 High-Speed Internet net customer additions.
Impressively, TMUS recently announced that its Extended Range 5G network now covers 323 million people, accounting for more than 95% of Americans. Looking at the figures, there is no stopping the telecommunications giant from spreading its wings wider across the U.S.
Analyst Ivan Feinseth of Tigress Financial is highly motivated by “TMUS’s strong customer acquisition growth and services revenue momentum," which will continue to drive meaningful business trends. Furthermore, Feinseth believes that the rapid adoption of 5G wireless technology positions the industry for significant growth in the future. The analyst views TMUS as a “very strong, nimble, and market niche-focused competitor.”
The five-star analyst’s price target on TMUS stock is higher than the average analyst price target of $178.67, implying 25.5% upside potential from current levels. Feinseth’s price target of $202 implies an impressive 41.9% upside potential for the next 12 months.
Analysts are highly bullish on T-Mobile US and have given 13 unanimous Buy ratings on TMUS stock over the past three months.
Southwest Airlines Co. (NYSE:LUV)
Market Value- $22.65 billion; Smart Score- 8
One of the big four airlines in the U.S., Southwest Airlines (LUV, $38.14), is a bellwether of the travel industry. The company recently hosted an Investor Day providing greater detail on the 2023 capacity outlook, which is expected to be 15% higher than in 2022. Most importantly, the carrier reinstated a quarterly common dividend of $0.18 per share, the first one in the lot, which was suspended during the pandemic.
Following the pandemic years of severe financial and labor deficits, US carriers are finally returning to profitability. Southwest expects its fourth-quarter revenues to jump more than 17% from its 2019 figures. Also, its capital expenditure is expected to increase to $4.5 billion, mainly to pay for new aircraft deliveries.
The investor update surely impressed Deutsche Bank analyst Michael Linenberg, who also increased his price target on LUV stock to $62 (62.6% upside) from $60 and maintained a Buy rating.
Six other Wall Street analysts agree with Linenberg and have assigned LUV stock a Strong Buy consensus rating. On TipRanks, the average Southwest Airlines price target of $51.14 implies 34.1% upside potential from current levels. Year to date, LUV stock is down 13.3%.
Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG)
Market Value- $1.23 trillion; Smart Score- 9
Next up is another trillion-dollar market capitalization company, Alphabet (GOOGL, $95.07) (GOOG, $95.31), which commands a wide moat in the sectors it operates. The technology conglomerate operates the widely used search engine, Google, along with its Android operating system, email service Gmail, and navigation services Maps and Waze. Also, it hosts the popular video-sharing and social media platform YouTube.
Analyst Jason Ader and his team at William Blair pick Alphabet as one of 2023’s Best One-Year Ideas. Although advertising spending has softened, Google’s search advertising business remains resilient to the macro environment. “MAGNA Global expects search to grow 12.6% in 2023, while it forecasts social to grow 6.4%,” the report cited. Plus, the analyst believes that non-advertising businesses such as Google Cloud (expected 11% revenue contribution in 2023) may offset the headwinds in the advertising sector.
On TipRanks, Alphabet Class A stock has a Strong Buy consensus rating with 29 unanimous Buys. The average Alphabet Class A price forecast of $127.83 implies 34.5% upside potential to current levels. Meanwhile, GOOGL stock has lost 34.4% so far this year.
Star Bulk Carriers (NASDAQ:SBLK)
Market Value- $2.08 billion; Smart Score- 8
Greek dry bulk shipping service provider Star Bulk Carriers (SBLK, $20.25) is one of the most attractive dividend-paying stocks. Its quarterly common dividend of $1.2 per share boasts a current yield of a massive 32.44%.
The outlook for shipping companies is dimming, but SBLK’s lucrative dividend ensures investors satisfactory returns. The falling freight rates, coupled with slowing demand for cargo shipments, are taking a toll on shipping companies. Year to date, SBLK stock has gained 9.6% vis-à-vis growing over 100% (excluding dividend) in 2021, when the shipping sector witnessed excessive demand conditions.
Analyst Amit Mehrotra of Deutsche Bank names Star Bulk as one of his top picks for 2023 based on the thesis that the company is not over-reliant on cycle peaks but has a proven performance record across the cycle. He has a Buy rating and a $33 price target on SBLK, implying a massive 63% upside potential in the next 12 months.
“Shipping companies with good balance sheets and low break evens can take advantage of weak markets; while companies that rely too much on debt are vulnerable when the market inevitably turns, and the positive investment thesis relies almost entirely on the “hope” of a better market,” Mehrotra added.
On TipRanks, Star Bulk Carriers stock has a Strong Buy consensus rating with four unanimous Buys. The average Star Bulk Carriers price target of $28.25 implies 39.5% upside potential to current levels.
Chesapeake Energy (NASDAQ:CHK)
Market Value- $13.28 billion; Smart Score- 9
Another beneficiary of the war-led energy crisis is Oklahoma-based Chesapeake Energy Corp. (CHK, $99.16). The hydrocarbon exploration and production giant is experiencing a solid stock price upswing owing to the record high oil and gas prices. Year to date, CHK stock has exploded by 65.4%.
To add to that, the company undertakes regular share buybacks and pays a quarterly common dividend of $3.16 per share, reflecting a dividend yield of 2.06%, making the stock even more attractive for investors.
Jefferies analyst Lloyd Byrne is tremendously bullish about CHK stock and likes the company’s “valuation, well-positioned assets, solid shareholder returns, and continued progress on Haynesville strategy.” Despite the expected short-term volatility in natural gas prices in 2023, Chesapeake’s sale of the Eagle Ford asset next year promises solid cash flows to carry out share buybacks and reduce debt, Byrne added.
Considered one of the best energy picks by analysts, CHK stock has a Strong Buy consensus rating on TipRanks based on seven Buys and one Hold rating. Also, the average Chesapeake Energy price forecast of $142.88 implies a nearly 44.1% upside potential from current levels.
The five-star analyst, Byrne, has an even higher price target on CHK, pegged at $150 implying 51.3% upside potential in the next 12 months.
Northern Oil and Gas (NYSE:NOG)
Market Value- $2.51 billion; Smart Score- 9
This oil and gas major has witnessed its stock price appreciate by 52% so far in 2022 thanks to the macroeconomic factors detailed above. A prime beneficiary of the Russia-Ukraine war, Northern Oil and Gas (NOG, $32.29), continues to gain optimism from Wall Street analysts.
Raymond James analyst John Freeman recently named three top picks from the Oil and Gas sector, with NOG being one of them. Freeman is encouraged by NOG’s addition of wells in progress every quarter in 2022. Having said that, Freeman agrees that NOG is not insulated from the inflationary environment, but believes that a “5% increase in AFEs (Authorisation for Expenditure) from the last quarter stands up pretty well to industry peers.” Plus, NOG pays a regular quarterly common dividend of $0.30 per share, implying a yield of 2.12%.
With nine Buys and one Hold rating, NOG commands a Strong Buy consensus rating. The average Northern Oil and Gas price target of $49.33 implies 52.8% upside potential to current levels. Notably, Freeman’s 12-month price target for NOG stock is a bit higher at $50.30, implying an upside of 55.8%.
Amazon.com (NASDAQ:AMZN)
Market Value- $934.27 billion; Smart Score- 9
The top stocks to buy list would be incomplete without America’s and possibly the world’s largest e-commerce giant, Amazon.com (AMZN, $91.58). 2022 has been a rip-off year for technology companies in general, owing to the macro headwinds. Year to date, AMZN stock has lost 46.3%.
In a recent e-commerce and retail landscape report, Wells Fargo analyst Ike Boruchow stated, “After witnessing a historic pull forward of e-commerce penetration in 2020 (we estimate a ~700bps increase, or ~4 years of penetration pull-forward), we've now rounded the worst on the e-commerce giveback - with the normalization not nearly as severe as we originally anticipated on the heels of AMZN's 3Q GMV gains.”
As a result, Boruchow now expects e-commerce penetration to fall by 35 basis points rather than the 150 basis points previously predicted. Similarly, the analyst stated that e-commerce trends have started outperforming brick-and-mortar store trends and are expected to increase rapidly going forward.
Besides e-commerce, Amazon also boasts a strong online streaming presence, and subscriptions continue to add meaningful numbers to its top line.
Most importantly, its Amazon Web Services (AWS) segment leads the pack in cloud service offerings and has several customers from individuals, corporates, and government organizations. AWS contributed roughly 15% to Amazon’s top line and is primed for robust growth as the tech giant focuses efforts on accelerating the segment.
Amazon.com stock undoubtedly commands a Strong Buy consensus rating on TipRanks. This is based on 33 Buys and three Holds ratings. Also, the average Amazon.com price target of $140.50 implies 53.4% upside potential to current levels.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ:AAPL) Market Value- $2.28 trillion; Smart Score- 8 Here comes the trillion-dollar company, Apple (AAPL, $143.21), which has rolled out several beloved products that unfailingly make it into every home. Year to date, AAPL stock has lost 20.9%. Corporations led the rally of hiring freezes and employee layoffs, while also lowering their advertising budgets to cut costs, which ultimately befell the technology sector and social media companies.
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Apple (NASDAQ:AAPL) Market Value- $2.28 trillion; Smart Score- 8 Here comes the trillion-dollar company, Apple (AAPL, $143.21), which has rolled out several beloved products that unfailingly make it into every home. Year to date, AAPL stock has lost 20.9%. Jazz Pharmaceuticals (NASDAQ:JAZZ) Market value- $9.92 billion; Smart Score- “Perfect 10” Ireland-based Jazz Pharmaceuticals (JAZZ, $157.50) is a specialty biotechnology company focused on the identification, development, and commercialization of pharmaceutical products in the areas of narcolepsy, oncology, pain, and psychiatry.
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Apple (NASDAQ:AAPL) Market Value- $2.28 trillion; Smart Score- 8 Here comes the trillion-dollar company, Apple (AAPL, $143.21), which has rolled out several beloved products that unfailingly make it into every home. Year to date, AAPL stock has lost 20.9%. Notably, Kumar believes that “management will be able to maintain these operating margin improvements into 2025, even without substantial top-line growth from key franchises.” The five-star analyst has a Buy rating on JAZZ stock with a price target of $190 (20.6% upside potential).
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Apple (NASDAQ:AAPL) Market Value- $2.28 trillion; Smart Score- 8 Here comes the trillion-dollar company, Apple (AAPL, $143.21), which has rolled out several beloved products that unfailingly make it into every home. Year to date, AAPL stock has lost 20.9%. Year to date, SBLK stock has gained 9.6% vis-à-vis growing over 100% (excluding dividend) in 2021, when the shipping sector witnessed excessive demand conditions.
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17996.0
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2022-12-15 00:00:00 UTC
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Why Apple, Amazon, and Microsoft Are All Falling Today
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AAPL
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https://www.nasdaq.com/articles/why-apple-amazon-and-microsoft-are-all-falling-today
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nan
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nan
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What happened
Shares of Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Microsoft (NASDAQ: MSFT) were all sliding this morning as investors processed the latest Federal Reserve interest rate hike and as investors worry that the Fed could potentially tip the economy into a recession.
Making matters worse today, the latest data shows that retail sales are slowing down.
As a result, Apple had fallen by 3.4%, Amazon had plunged 4%, and Microsoft had tumbled by 3.1% at 11:31 a.m. ET.
So what
The first bit of news that tech investors were focusing on this morning is that the Fed increased interest rates by an additional 50 basis points -- pushing rates up to a 15-year high.
Image source: Getty Images.
While the latest rate increase was lower than the 75-basis-point increase of previous meetings, investors were disappointed that the Fed said that its new target rate of 5.1% is higher than many economists were expecting.
Additionally, the Fed said that the job market is still too robust for its liking.
All of that caused Apple, Amazon, and Microsoft investors to worry that the Fed will continue to take an aggressive approach to tame inflation and could end up pushing the economy into a recession.
Making matters worse for these stocks today was Commerce Department data showing that retail sales fell 0.6% in November, more than the 0.3% some economists had been expecting.
That drop was the largest in nearly a year.
Apple, Amazon, and Microsoft are all dependent on consumer sales for at least some segments of their overall businesses, so data showing a retail slowdown has investors worried.
Additionally, the Commerce Department data also showed that online sales fell 0.9% in November, another troubling trend for these companies.
Now what
Between rising interest rates, fears of a recession, and slowing retail sales, it's not surprising to see these companies' share prices falling today.
While Apple beat top- and bottom-line estimates in its fourth quarter (which ended on Sept. 24), the company's iPhone sales and services revenue were below expectations.
Microsoft also beat expectations for its most recent quarter (which ended on Sept. 30), but it issued guidance that was weaker than expected, and its cloud revenue disappointed investors.
Meanwhile, Amazon missed analysts' consensus revenue estimates in its latest quarter (ending Sept. 30) and issued lower-than-expected revenue guidance.
All this means that investors were already a bit on edge and keeping a close eye on what the economy is doing and how it could affect these tech stocks. And with retail sales falling and interest rates likely rising through 2023, Apple, Amazon, and Microsoft investors worried today that the coming year could be a difficult one.
That doesn't mean these stocks aren't still good long-term investments, but their share prices could remain volatile in the near term as investors process negative economic data.
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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. Chris Neiger has positions in Apple. The Motley Fool has positions in and recommends 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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What happened Shares of Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Microsoft (NASDAQ: MSFT) were all sliding this morning as investors processed the latest Federal Reserve interest rate hike and as investors worry that the Fed could potentially tip the economy into a recession. All of that caused Apple, Amazon, and Microsoft investors to worry that the Fed will continue to take an aggressive approach to tame inflation and could end up pushing the economy into a recession. Making matters worse for these stocks today was Commerce Department data showing that retail sales fell 0.6% in November, more than the 0.3% some economists had been expecting.
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What happened Shares of Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Microsoft (NASDAQ: MSFT) were all sliding this morning as investors processed the latest Federal Reserve interest rate hike and as investors worry that the Fed could potentially tip the economy into a recession. Making matters worse today, the latest data shows that retail sales are slowing down. Making matters worse for these stocks today was Commerce Department data showing that retail sales fell 0.6% in November, more than the 0.3% some economists had been expecting.
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What happened Shares of Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Microsoft (NASDAQ: MSFT) were all sliding this morning as investors processed the latest Federal Reserve interest rate hike and as investors worry that the Fed could potentially tip the economy into a recession. Apple, Amazon, and Microsoft are all dependent on consumer sales for at least some segments of their overall businesses, so data showing a retail slowdown has investors worried. And with retail sales falling and interest rates likely rising through 2023, Apple, Amazon, and Microsoft investors worried today that the coming year could be a difficult one.
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What happened Shares of Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Microsoft (NASDAQ: MSFT) were all sliding this morning as investors processed the latest Federal Reserve interest rate hike and as investors worry that the Fed could potentially tip the economy into a recession. So what The first bit of news that tech investors were focusing on this morning is that the Fed increased interest rates by an additional 50 basis points -- pushing rates up to a 15-year high. And with retail sales falling and interest rates likely rising through 2023, Apple, Amazon, and Microsoft investors worried today that the coming year could be a difficult one.
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17997.0
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2022-12-15 00:00:00 UTC
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Thursday's ETF with Unusual Volume: EFIV
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AAPL
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https://www.nasdaq.com/articles/thursdays-etf-with-unusual-volume%3A-efiv-0
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nan
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nan
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The SPDR S&P 500 ESG ETF is seeing unusually high volume in afternoon trading Thursday, with over 534,000 shares traded versus three month average volume of about 108,000. Shares of EFIV were off about 2.8% on the day.
Components of that ETF with the highest volume on Thursday were Apple, trading down about 3.8% with over 36.1 million shares changing hands so far this session, and AMAZON.COM, off about 4.3% on volume of over 34.1 million shares. Charles River Laboratories International is the component faring the best Thursday, higher by about 4.3% on the day, while Generac Holdlings is lagging other components of the SPDR S&P 500 ESG ETF, trading lower by about 8.5%.
VIDEO: Thursday's ETF with Unusual Volume: EFIV
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Components of that ETF with the highest volume on Thursday were Apple, trading down about 3.8% with over 36.1 million shares changing hands so far this session, and AMAZON.COM, off about 4.3% on volume of over 34.1 million shares. Charles River Laboratories International is the component faring the best Thursday, higher by about 4.3% on the day, while Generac Holdlings is lagging other components of the SPDR S&P 500 ESG ETF, trading lower by about 8.5%. VIDEO: Thursday's ETF with Unusual Volume: EFIV The views and 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 SPDR S&P 500 ESG ETF is seeing unusually high volume in afternoon trading Thursday, with over 534,000 shares traded versus three month average volume of about 108,000. Charles River Laboratories International is the component faring the best Thursday, higher by about 4.3% on the day, while Generac Holdlings is lagging other components of the SPDR S&P 500 ESG ETF, trading lower by about 8.5%. VIDEO: Thursday's ETF with Unusual Volume: EFIV The views and 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 SPDR S&P 500 ESG ETF is seeing unusually high volume in afternoon trading Thursday, with over 534,000 shares traded versus three month average volume of about 108,000. Components of that ETF with the highest volume on Thursday were Apple, trading down about 3.8% with over 36.1 million shares changing hands so far this session, and AMAZON.COM, off about 4.3% on volume of over 34.1 million shares. Charles River Laboratories International is the component faring the best Thursday, higher by about 4.3% on the day, while Generac Holdlings is lagging other components of the SPDR S&P 500 ESG ETF, trading lower by about 8.5%.
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The SPDR S&P 500 ESG ETF is seeing unusually high volume in afternoon trading Thursday, with over 534,000 shares traded versus three month average volume of about 108,000. Shares of EFIV were off about 2.8% on the day. Components of that ETF with the highest volume on Thursday were Apple, trading down about 3.8% with over 36.1 million shares changing hands so far this session, and AMAZON.COM, off about 4.3% on volume of over 34.1 million shares.
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17998.0
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2022-12-15 00:00:00 UTC
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US STOCKS-Wall Street falls sharply on angst over hawkish Fed
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-falls-sharply-on-angst-over-hawkish-fed
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nan
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nan
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By Ankika Biswas and Johann M Cherian
Dec 15 (Reuters) - U.S. stock indexes fell sharply on Thursday, with the Dow on track for its steepest single-day fall in three months, as the Federal Reserve's guidance for protracted policy tightening quelled hopes of the rate-hike cycle ending anytime soon.
The benchmark S&P 500 .SPX and tech-heavy Nasdaq .IXIC were also set to notch their worst single-day performance in six weeks.
The U.S. central bank hiked rates by 50 basis points on Wednesday, slowing down from four back-to-back 75 bps hikes, although Fed Chair Jerome Powell said recent signs of weakening inflation have not brought any confidence yet that the fight had been won.
The Fed projected continued rate hikes to above 5% in 2023, a level not seen since a steep economic downturn in 2007.
"The issue was the market was looking for rate cuts in 2023 and that's not compatible with any credible economic scenario because you'd need to have quite a collapse in economic activity and a speedy deterioration of the labor market," said Willem Sels, global CIO, private banking and wealth management at HSBC.
Money market participants expect at least two 25 bps rate hikes next year and borrowing costs to peak at 4.9% in the first half, before falling to around 4.4% by year-end. FEDWATCH
Wall Street's main indexes staged a strong recovery since hitting 2022 lows in October on hopes of a less aggressive Fed, but the rally stalled in December amid mixed economic data and major U.S. executives flagging increased chances of a recession.
Investors also assessed economic data on Thursday that showed a steeper-than-expected decline in retail sales in November and the number of Americans filing for unemployment benefits falling last week, indicating a tight labor market.
"Today's data reinforces what Powell was saying yesterday that this is going to take time and the market seems to want to try and fast forward through the messy parts and it's just not going to be able to do that because the Fed is not going to let it," said Sameer Samana, seniorglobal marketstrategist at Wells Fargo Investment Institute.
Most major central banks have embarked on a hawkish path in their battle against stubborn inflation, with the Bank of England and the European Central Bank further indicating an extended hiking cycle on Thursday.
At 11:52 a.m. ET, the Dow Jones Industrial Average .DJI was down 816.88 points, or 2.40%, at 33,149.47, the S&P 500 .SPX was down 104.30 points, or 2.61%, at 3,891.02, and the Nasdaq Composite .IXIC was down 338.56 points, or 3.03%, at 10,832.33.
All the 11 major S&P 500 sectors were in the red, with communication services .SPLRCL and technology stocks .SPLRCT falling over 3% and bearing the brunt of selling pressure.
Shares of megacap companies such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O dropped over 3% each.
Netflix Inc NFLX.O slumped 7.7% after a media report that the company would let its advertisers take their money back after missing viewership targets.
Nvidia Corp NVDA.O slipped 4.9% after HSBC Global Research began coverage of the chipmaker's stock with a "reduce" rating.
Declining issues outnumbered advancers for a 5.80-to-1 ratio on the NYSE and a 3.00-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week high and five new lows, while the Nasdaq recorded 41 new highs and 242 new lows.
(Reporting by Sruthi Shankar, Ankika Biswas and Johann M Cherian in Bengaluru; Editing by Vinay Dwivedi, Anil D'Silva and Shounak Dasgupta)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of megacap companies such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O dropped over 3% each. By Ankika Biswas and Johann M Cherian Dec 15 (Reuters) - U.S. stock indexes fell sharply on Thursday, with the Dow on track for its steepest single-day fall in three months, as the Federal Reserve's guidance for protracted policy tightening quelled hopes of the rate-hike cycle ending anytime soon. FEDWATCH Wall Street's main indexes staged a strong recovery since hitting 2022 lows in October on hopes of a less aggressive Fed, but the rally stalled in December amid mixed economic data and major U.S. executives flagging increased chances of a recession.
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Shares of megacap companies such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O dropped over 3% each. By Ankika Biswas and Johann M Cherian Dec 15 (Reuters) - U.S. stock indexes fell sharply on Thursday, with the Dow on track for its steepest single-day fall in three months, as the Federal Reserve's guidance for protracted policy tightening quelled hopes of the rate-hike cycle ending anytime soon. The U.S. central bank hiked rates by 50 basis points on Wednesday, slowing down from four back-to-back 75 bps hikes, although Fed Chair Jerome Powell said recent signs of weakening inflation have not brought any confidence yet that the fight had been won.
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Shares of megacap companies such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O dropped over 3% each. By Ankika Biswas and Johann M Cherian Dec 15 (Reuters) - U.S. stock indexes fell sharply on Thursday, with the Dow on track for its steepest single-day fall in three months, as the Federal Reserve's guidance for protracted policy tightening quelled hopes of the rate-hike cycle ending anytime soon. The U.S. central bank hiked rates by 50 basis points on Wednesday, slowing down from four back-to-back 75 bps hikes, although Fed Chair Jerome Powell said recent signs of weakening inflation have not brought any confidence yet that the fight had been won.
|
Shares of megacap companies such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O dropped over 3% each. By Ankika Biswas and Johann M Cherian Dec 15 (Reuters) - U.S. stock indexes fell sharply on Thursday, with the Dow on track for its steepest single-day fall in three months, as the Federal Reserve's guidance for protracted policy tightening quelled hopes of the rate-hike cycle ending anytime soon. The U.S. central bank hiked rates by 50 basis points on Wednesday, slowing down from four back-to-back 75 bps hikes, although Fed Chair Jerome Powell said recent signs of weakening inflation have not brought any confidence yet that the fight had been won.
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17999.0
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2022-12-15 00:00:00 UTC
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Warner Bros. Discovery's (WBD) Studio Celebrates 100 Years
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AAPL
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https://www.nasdaq.com/articles/warner-bros.-discoverys-wbd-studio-celebrates-100-years
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nan
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nan
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Warner Bros. Discovery WBD announced its campaign Celebrating Every Story to commemorate 100 years of Warner Bros. Studios on Apr 4, 2023.
Under this campaign, special programming and content, exclusive products and home entertainment releases, a dedicated programming page on HBO Max, live events and screenings, and more will be hosted over the next 12 months.
The celebration is expected to connect viewers with all the renowned shows, movies and characters they have cherished, and make them look forward to the next century, which will begin with an exciting and inspiring slate of content.
Warner Bros. Discovery to Benefit From Upcoming Content
Warner Bros. Discovery lined up a strong pipeline of content under Celebrating Every Story. This not just draws the existing nostalgic fans of the company but also has the potential to gain customers to aid viewership and revenues.
Warner Bros. Home Entertainment will release remastered titles available in 4K Ultra-High Definition for the first time, including movies like Superman.
Warner Bros. Discovery, Inc. Price and Consensus
Warner Bros. Discovery, Inc. price-consensus-chart | Warner Bros. Discovery, Inc. Quote
Superman has been one of the most cherished characters of Warner Bros. Discovery. Though the DC character faced competition from Walt Disney’s DIS marvel characters like Avengers, Captain Marvel and others, it has shown remarkable performance at the box office as Man of Steel and Justice League ended up making $668 and $658 million, respectively.
Though old, the enhanced quality of the movie and the craze that people have toward Superman has the ability to draw viewers.
HBO Max, which is the streaming division of Warner Bros. Discovery, curated content to celebrate holidays and cultural events, including Black History Month, Women’s History Month and Pride/LGBTQ. This effort is expected to draw the attention of minorities and expand the customer base of the company.
Warner Bros. Discovery Global Consumer Products is partnering with brands across apparel and housewares to toys, publishing, retailers, and food and beverage companies to provide fans with exclusive collectibles.
A new line of products featuring the Looney Tunes will be unveiled on this occasion. The Looney Tunes cartoon has been very popular among children as each of its episodes delivered an average of more than 1.6 million viewers. This will again draw kids toward buying products that have Looney Tunes cartoons on them, hence bolstering the top line.
Warner Bros. Discovery to Face Competition Ahead
It can’t be denied that Warner Bros. Discovery, which currently has a Zacks Rank #3 (Hold), is taking great efforts to indulge the audience with its exciting content on the occasion of Warner Bros. Studios’ 100th anniversary.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
But the company has to face tough competition from various companies, particularly from the streaming giants like Netflix NFLX and Apple AAPL.
Netflix is set to release extensions of the already cherished series like season 4 of You, season 2 of Shadow and Bone, season 4 of Never Have I Ever and others in the next year.
Apple TV awaits the release of drama content like Servant, Truth Be Told, Sharper, Dear Edward and others.
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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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But the company has to face tough competition from various companies, particularly from the streaming giants like Netflix NFLX and Apple AAPL. 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 Warner Bros. The celebration is expected to connect viewers with all the renowned shows, movies and characters they have cherished, and make them look forward to the next century, which will begin with an exciting and inspiring slate of content.
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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 Warner Bros. But the company has to face tough competition from various companies, particularly from the streaming giants like Netflix NFLX and Apple AAPL. Under this campaign, special programming and content, exclusive products and home entertainment releases, a dedicated programming page on HBO Max, live events and screenings, and more will be hosted over the next 12 months.
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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 Warner Bros. But the company has to face tough competition from various companies, particularly from the streaming giants like Netflix NFLX and Apple AAPL. Discovery to Benefit From Upcoming Content Warner Bros.
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But the company has to face tough competition from various companies, particularly from the streaming giants like Netflix NFLX and Apple AAPL. 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 Warner Bros. Discovery lined up a strong pipeline of content under Celebrating Every Story.
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