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18000.0
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2022-12-15 00:00:00 UTC
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Ericsson sees margin at lower end of target; pushes for cost cuts
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AAPL
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https://www.nasdaq.com/articles/ericsson-sees-margin-at-lower-end-of-target-pushes-for-cost-cuts
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nan
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nan
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Company to reach lower end of 15-18% EBITA range by 2024
Accelerating cost cuts of 9 bln SEK by end of next year
Adds comments from Ericsson Capital Markets Day
STOCKHOLM, Dec 15 (Reuters) - Swedish telecom equipment maker Ericsson ERICb.ST said on Thursday it would reach the lower end of its long-term target of a profit (EBITA) margin of 15-18% by 2024 as several of its more profitable markets show signs of slowing down.
The company, one of the world's biggest suppliers of 5G technology, forecast the 5G radio equipment market would see annual growth of 11% over the next three years while the overall market was seen flat.
"Some of our customers like in North America are guiding for lower CapEx (capital expenditure) following a very fast build out in the beginning of 2022," CEO Borje Ekholm told investors on its Capital Markets Day.
While U.S. and other markets are slowing down, Ericsson is hoping newer markets such as India would help it balance some of the lower demand for 5G equipment.
The company is now accelerating plans to cut costs by 9 billion crowns ($880 million) by the end of 2023. After Ekholm took over the top job in 2017, Ericsson made deep cuts to save costs, laid off thousands of employees and focused on research to pull the company out of losses.
While demand for 5G equipment has been strong, the early stages of rollouts tend to have lower margins, meaning telecom groups such as Ericsson and Finnish rival Nokia NOKIA.HE rely on patent royalties to boost profits.
Last week, Ericsson announced it had struck a global deal with AppleAAPL.O to end a long-running legal battle over royalty payments for 5G patents in iPhones that has dented profits and shares this year.
Both Ericsson and Nokia have been seeking to cut costs as they contend with lingering chip shortages and disruptions due to the war in Ukraine war, including their planned exits from the Russian market.
Ericsson is also under the scanner of U.S. regulators after the company's disclosure of potential payments to the Islamic State militant group in Iraq - misconduct it said "started at least back in 2011."
"We continue to thoroughly investigate the allegations in cooperation with the authorities to understand whether or not the allegations can be substantiated," Ekholm said.
On Wednesday, Ericsson said U.S. regulators had extended its monitoring of the company for compliance following the 2019 settlement for one more year.
(Reporting by Niklas Pollard and Supantha Mukherjee in Stockholm; Martin Coulter in London, editing by Terje Solsvik and Elaine Hardcastle)
((Niklas.Pollard@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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Last week, Ericsson announced it had struck a global deal with AppleAAPL.O to end a long-running legal battle over royalty payments for 5G patents in iPhones that has dented profits and shares this year. After Ekholm took over the top job in 2017, Ericsson made deep cuts to save costs, laid off thousands of employees and focused on research to pull the company out of losses. While demand for 5G equipment has been strong, the early stages of rollouts tend to have lower margins, meaning telecom groups such as Ericsson and Finnish rival Nokia NOKIA.HE rely on patent royalties to boost profits.
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Last week, Ericsson announced it had struck a global deal with AppleAAPL.O to end a long-running legal battle over royalty payments for 5G patents in iPhones that has dented profits and shares this year. Company to reach lower end of 15-18% EBITA range by 2024 Accelerating cost cuts of 9 bln SEK by end of next year Adds comments from Ericsson Capital Markets Day STOCKHOLM, Dec 15 (Reuters) - Swedish telecom equipment maker Ericsson ERICb.ST said on Thursday it would reach the lower end of its long-term target of a profit (EBITA) margin of 15-18% by 2024 as several of its more profitable markets show signs of slowing down. The company is now accelerating plans to cut costs by 9 billion crowns ($880 million) by the end of 2023.
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Last week, Ericsson announced it had struck a global deal with AppleAAPL.O to end a long-running legal battle over royalty payments for 5G patents in iPhones that has dented profits and shares this year. Company to reach lower end of 15-18% EBITA range by 2024 Accelerating cost cuts of 9 bln SEK by end of next year Adds comments from Ericsson Capital Markets Day STOCKHOLM, Dec 15 (Reuters) - Swedish telecom equipment maker Ericsson ERICb.ST said on Thursday it would reach the lower end of its long-term target of a profit (EBITA) margin of 15-18% by 2024 as several of its more profitable markets show signs of slowing down. While U.S. and other markets are slowing down, Ericsson is hoping newer markets such as India would help it balance some of the lower demand for 5G equipment.
|
Last week, Ericsson announced it had struck a global deal with AppleAAPL.O to end a long-running legal battle over royalty payments for 5G patents in iPhones that has dented profits and shares this year. Company to reach lower end of 15-18% EBITA range by 2024 Accelerating cost cuts of 9 bln SEK by end of next year Adds comments from Ericsson Capital Markets Day STOCKHOLM, Dec 15 (Reuters) - Swedish telecom equipment maker Ericsson ERICb.ST said on Thursday it would reach the lower end of its long-term target of a profit (EBITA) margin of 15-18% by 2024 as several of its more profitable markets show signs of slowing down. While U.S. and other markets are slowing down, Ericsson is hoping newer markets such as India would help it balance some of the lower demand for 5G equipment.
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18001.0
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2022-12-15 00:00:00 UTC
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The 7 Hottest Penny Stocks to Own for 2023 and Beyond
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AAPL
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https://www.nasdaq.com/articles/the-7-hottest-penny-stocks-to-own-for-2023-and-beyond
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Irrespective of the stock market’s overall performance in the coming year, there are many stocks that could nonetheless “crush it” in 2023. Included in that category are some of the hottest penny stocks out there right now.
Penny stocks, or stocks under trading for $5 per share or less, are typically riskier than shares in larger, more established companies. However, in the case of certain penny stocks, this high risk is more than outweighed by high upside potential.
At present, there are scores of small, under-the-radar stocks, with company specific-catalysts that give each a strong chance of making an outsized move higher in 2023, and in the years ahead.
Some of these stocks have already begun to take off in price, making massive moves higher in recent weeks. Others have floundered lately, yet may be on the verge of taking off, as a growing number of market participants catch onto the opportunity.
With this in mind, here are seven of the hottest penny stocks to consider entering small speculative positions in.
ASRT Assertio Holdings $3.81
DOUG Douglas Elliman $4.06
EXPR Express $1.07
GSAT Globalstar $1.51
IAUX I-80 Gold $2.74
JRSH Jerash Holdings $4.35
PBI Pitney Bowes $4.16
Assertio Holdings (ASRT)
Source: Dmitry Kalinovsky / Shutterstock.com
While Assertio Holdings (NASDAQ:ASRT) has traded in a wild range throughout 2022, this volatility has been favorable in recent months. This microcap pharma stock has zoomed from around $2.25 to nearly $4 per share.
What’s driving investors back into ASRT stock? Chalk it up to two recent developments. First, back in November, Assertio delivered a well-received quarterly earnings report. Although the results themselves were mixed, with revenue up 34.3% year-over-year but earnings per share (or EPS) down 16% compared to the prior year’s quarter, both figures came in ahead of analyst estimates.
Second, just last week, Assertio’s management raised its 2022 full-year sales outlook, from $141 million to $152 million. Despite the prospect of better-than-expected results, ASRT stock still sports an extremely low valuation (7.3- times earnings). Modest multiple expansion should be more than enough to to get shares of this company out of penny stock territory.
Douglas Elliman (DOUG)
Source: DW labs Incorporated / Shutterstock.com
A few weeks back, I discussed seven real estate stocks to sell, and one to buy. That one stock to buy was Douglas Elliman (NYSE:DOUG). What makes this luxury real estate firm a buy, while the housing market is experiencing what could end up becoming a multi-year slump?
For starters, the prospects of an unfavorable market for realtors is already baked into DOUG’s valuation. You can buy DOUG stock today at just 9.6-times trailing twelve month earnings. The stock also currently pays out a 5 cent per share quarterly dividend, providing investors with a 4.9% annual yield, while waiting for the housing market to recover.
More importantly, this once New York-centric realtor continues to broaden its presence nationwide, When the dust settles on the current housing bust, and market conditions improves, this may result in tremendous growth for this established, yet little-known, real estate firm.
Express (EXPR)
Source: Helen89 / Shutterstock.com
Express (NYSE:EXPR), one of the popular “meme stock” plays of 2021, continues to make “meme-style” moves. The latest such move happened earlier this month, when EXPR went from $1.28 per share, to as much as $2.14 per share, only to sink back to around $1 per share not too long after.
That said, while shares have surged and sank once again, EXPR stock may still belong in the hottest penny stocks category. Although speculators may have gotten carried away, the emerging catalyst that sparked this short-lived spike could once again propel EXPR substantially higher down the road.
As InvestorPlace’s William White reported Dec. 8, Express stock rallied due to news of the company entering a strategic partnership with brand management company WHP Global. This deal could improve the apparel retailer’s financial footing, enabling EXPR to ride out today’s challenges, and make a comeback when the economy improves.
Globalstar (GSAT)
Source: rafapress / Shutterstock.com
Globalstar (NYSEMKT:GSAT) is a stock I’ve included frequently in past coverage of standout penny stocks. As you may already know, this once-obscure satellite communications firm has made big headlines this year, thanks to its partnership deal with Apple (NASDAQ:AAPL).
In a nutshell, Globalstar will enable Apple to offer satellite connectivity for the iPhone 14. As the company itself has stated, this could result in a massive improvement in its operating results starting in 2023, with its revenue and earnings numbers significantly improving by 2026.
Soaring on this news back in September, GSAT stock has sold off more recently. Shares may continue to stay in a slump in the short-term. However, I think they’re likely to take off again as the Apple deal takes shape, given that shares trade for around $1.60 per share (versus a 52-week high of nearly $3 per share). Now may be the time to buy.
I-80 Gold (IAUX)
Source: Shutterstock
Previously trading in the over-the-counter (or OTC) market, I-80 Gold (NYSEMKT:IAUX) uplisted to the NYSE American stock exchange back in May. Since early November, shares in this exploration-stage gold and silver mining company have experienced a tremendous jump in price.
During this timeframe, IAUX stock has gone from around $1.75 per share, to as much as $3 per share. Still near its 52-week high, and still one of the hottest penny stocks out there, investors may want to consider adding a position. Indeed, I-80 Gold hasn’t soared higher on hope and hype.
Rather, IAUX has rallied on the heels of promising drilling news at its mining projects. I-80 has so far discovered substantial measured an indicated reserves of gold (6.47 million ounces) and silver (104.3 million ounces). With low all-in sustaining costs, the company could become highly profitable as it moves into its production stage.
Jerash Holdings (JRSH)
Source: Africa Studio/shutterstock.com
Rampant inflation and dwindling consumer savings may make now not seem like the time to buy Jerash Holdings (NASDAQ:JRSH). These headwinds have already affected the apparel maker’s fiscal results. Last quarter, Jerash reported a 17.3% drop in sales, and a 61.4% drop in earnings per share, on a year-over-year basis.
So then, why buy JRSH stock, when the current situation seems to be not-so-hot? Even as the business isn’t “hot” at present, when macro uncertainties clear up, a rebound in Jerash’s profitability could make this micro-cap value play a great buy.
How? Well, sell-side estimates call for the company’s earnings per share to hit 69 cents in fiscal year ending March 2024, and $1 by fiscal year ending 2025. If JRSH simply maintains its current forward price-to-earnings (or P/E) ratio of around 11.5, that could mean the stock soars up to $11.50 per share in a few years, from $4.36 per share today.
Pitney Bowes (PBI)
Source: JHVEPhoto / Shutterstock.com
After falling from $6.75 to as low as $2.30 per share between January and September, Pitney Bowes (NYSE:PBI) made a tremendous leap back up towards the “penny stock ceiling,” changing hands for around $4.25 per share today.
But instead of merely being a “dead cat bounce” for this maker of postage meters and mail pre-sorters, this may be merely the first few innings of an extended PBI stock comeback. Pitney Bowe’s impressive rebound has been the result of Hestia Capital’s involvement with the company.
If it wins a planned proxy fight next year, and gains control of the board, this deep value-focused hedge fund may be able to implement a successful turnaround plan. I wouldn’t assume Hestia’s campaign at PBI will result in results similar to that of Hestia’s previous activist campaign at GameStop (NYSE:GME), but this could still be an activist situation worth wagering on.
Penny Stocks
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Thomas Niel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.
The post The 7 Hottest Penny Stocks to Own for 2023 and Beyond 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.
|
As you may already know, this once-obscure satellite communications firm has made big headlines this year, thanks to its partnership deal with Apple (NASDAQ:AAPL). At present, there are scores of small, under-the-radar stocks, with company specific-catalysts that give each a strong chance of making an outsized move higher in 2023, and in the years ahead. More importantly, this once New York-centric realtor continues to broaden its presence nationwide, When the dust settles on the current housing bust, and market conditions improves, this may result in tremendous growth for this established, yet little-known, real estate firm.
|
As you may already know, this once-obscure satellite communications firm has made big headlines this year, thanks to its partnership deal with Apple (NASDAQ:AAPL). ASRT Assertio Holdings $3.81 DOUG Douglas Elliman $4.06 EXPR Express $1.07 GSAT Globalstar $1.51 IAUX I-80 Gold $2.74 JRSH Jerash Holdings $4.35 PBI Pitney Bowes $4.16 Assertio Holdings (ASRT) Source: Dmitry Kalinovsky / Shutterstock.com While Assertio Holdings (NASDAQ:ASRT) has traded in a wild range throughout 2022, this volatility has been favorable in recent months. Express (EXPR) Source: Helen89 / Shutterstock.com Express (NYSE:EXPR), one of the popular “meme stock” plays of 2021, continues to make “meme-style” moves.
|
As you may already know, this once-obscure satellite communications firm has made big headlines this year, thanks to its partnership deal with Apple (NASDAQ:AAPL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Irrespective of the stock market’s overall performance in the coming year, there are many stocks that could nonetheless “crush it” in 2023. Penny stocks, or stocks under trading for $5 per share or less, are typically riskier than shares in larger, more established companies.
|
As you may already know, this once-obscure satellite communications firm has made big headlines this year, thanks to its partnership deal with Apple (NASDAQ:AAPL). ASRT Assertio Holdings $3.81 DOUG Douglas Elliman $4.06 EXPR Express $1.07 GSAT Globalstar $1.51 IAUX I-80 Gold $2.74 JRSH Jerash Holdings $4.35 PBI Pitney Bowes $4.16 Assertio Holdings (ASRT) Source: Dmitry Kalinovsky / Shutterstock.com While Assertio Holdings (NASDAQ:ASRT) has traded in a wild range throughout 2022, this volatility has been favorable in recent months. However, I think they’re likely to take off again as the Apple deal takes shape, given that shares trade for around $1.60 per share (versus a 52-week high of nearly $3 per share).
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18002.0
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2022-12-15 00:00:00 UTC
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US STOCKS-Futures slide on worries over hawkish Fed
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-slide-on-worries-over-hawkish-fed
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures down: Dow 0.83%, S&P 1.07%, Nasdaq 1.32%
Dec 15 (Reuters) - U.S. stock index futures fell on Thursday, a day after the Federal Reserve raised interest rates as expected, but confounded market expectations of a less hawkish stance by saying rates would remain higher for longer.
The U.S. central bank hiked rates by a widely anticipated 50 basis points (bps) on Wednesday, but Fed Chair Jerome Powell said recent signs of slowing inflation have not brought any confidence yet that the fight has been won.
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 - quashing hopes the central bank would slow its hiking-cycle early next year.
Investors currently expect at least two 25-bps rate hikes next year and borrowing costs to peak at 4.9% by May next year, before falling to around 4.4% by year-end. FEDWATCH
"The market's optimism about a lower terminal rate and (rate) cuts in the second half of next year has been working against the Fed and are unrealistic in our view, unless we see a financial crisis or drain of liquidity in the markets that will necessitate the Fed to step in and lower rates," said Maria Vassalou, co-chief investment officer of multi-asset solutions at Goldman Sachs Asset Management.
"The Fed policy is negative for equities and likely to reinforce the inversion in the yield curve."
Since October, when they hit year-lows, Wall Street's main indexes have staged a strong recovery on hopes of a less aggressive Fed, but the rally stalled in December due to mixed economic data and worrying corporate forecasts.
A slew of economic data, including weekly jobless claims, retail sales data and industrial production, is due later in the day, as are interest rate decisions from the European Central Bank and the Bank of England. Both central banks are expected to hike borrowing costs by 50 bps.
At 05:02 a.m. ET, Dow e-minis 1YMcv1 were down 282 points, or 0.83%, S&P 500 e-minis EScv1 were down 43.25 points, or 1.07%, and Nasdaq 100 e-minis NQcv1 were down 157 points, or 1.32%.
Shares of megacap companies, including Apple AAPL.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O, fell about 1% each in premarket trading.
Tesla Inc TSLA.O fell 2.8% after boss Elon Musk disclosed another $3.6 billion in stock sales, taking his total near $40 billion this year and frustrating investors as the company's shares wallow at two-year lows.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Savio D'Souza)
((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.
|
Shares of megacap companies, including Apple AAPL.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O, fell about 1% each in premarket trading. The U.S. central bank hiked rates by a widely anticipated 50 basis points (bps) on Wednesday, but Fed Chair Jerome Powell said recent signs of slowing inflation have not brought any confidence yet that the fight has been won. 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 - quashing hopes the central bank would slow its hiking-cycle early next year.
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Shares of megacap companies, including Apple AAPL.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O, fell about 1% each in premarket trading. Futures down: Dow 0.83%, S&P 1.07%, Nasdaq 1.32% Dec 15 (Reuters) - U.S. stock index futures fell on Thursday, a day after the Federal Reserve raised interest rates as expected, but confounded market expectations of a less hawkish stance by saying rates would remain higher for longer. The U.S. central bank hiked rates by a widely anticipated 50 basis points (bps) on Wednesday, but Fed Chair Jerome Powell said recent signs of slowing inflation have not brought any confidence yet that the fight has been won.
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Shares of megacap companies, including Apple AAPL.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O, fell about 1% each in premarket trading. Futures down: Dow 0.83%, S&P 1.07%, Nasdaq 1.32% Dec 15 (Reuters) - U.S. stock index futures fell on Thursday, a day after the Federal Reserve raised interest rates as expected, but confounded market expectations of a less hawkish stance by saying rates would remain higher for longer. FEDWATCH "The market's optimism about a lower terminal rate and (rate) cuts in the second half of next year has been working against the Fed and are unrealistic in our view, unless we see a financial crisis or drain of liquidity in the markets that will necessitate the Fed to step in and lower rates," said Maria Vassalou, co-chief investment officer of multi-asset solutions at Goldman Sachs Asset Management.
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Shares of megacap companies, including Apple AAPL.O, Amazon.com Inc AMZN.O and Microsoft Corp MSFT.O, fell about 1% each in premarket trading. The U.S. central bank hiked rates by a widely anticipated 50 basis points (bps) on Wednesday, but Fed Chair Jerome Powell said recent signs of slowing inflation have not brought any confidence yet that the fight has been won. Both central banks are expected to hike borrowing costs by 50 bps.
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18003.0
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2022-12-15 00:00:00 UTC
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After Hours Most Active for Dec 15, 2022 : COTY, AAPL, SQQQ, TAL, GOOGL, GOOG, AMZN, FOLD, TSM, XOM, DIS, MO
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-dec-15-2022-%3A-coty-aapl-sqqq-tal-googl-goog-amzn-fold-tsm-xom
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nan
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nan
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The NASDAQ 100 After Hours Indicator is up 1.16 to 11,346.38. The total After hours volume is currently 115,469,737 shares traded.
The following are the most active stocks for the after hours session:
Coty Inc. (COTY) is unchanged at $7.92, with 7,296,056 shares traded. COTY's current last sale is 96% of the target price of $8.25.
Apple Inc. (AAPL) is -0.18 at $136.32, with 3,987,362 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
ProShares UltraPro Short QQQ (SQQQ) is +0.25 at $49.03, with 3,841,067 shares traded. This represents a 74.17% increase from its 52 Week Low.
TAL Education Group (TAL) is +0.01 at $6.53, with 3,093,555 shares traded. TAL's current last sale is 120.93% of the target price of $5.4.
Alphabet Inc. (GOOGL) is -0.1868 at $90.67, with 2,662,489 shares traded. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
Alphabet Inc. (GOOG) is -0.12 at $91.08, with 2,662,327 shares traded. As reported by Zacks, the current mean recommendation for GOOG is in the "buy range".
Amazon.com, Inc. (AMZN) is unchanged at $88.45, with 2,596,668 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Amicus Therapeutics, Inc. (FOLD) is unchanged at $12.09, with 2,084,218 shares traded. As reported in the last short interest update the days to cover for FOLD is 11.02084; this calculation is based on the average trading volume of the stock.
Taiwan Semiconductor Manufacturing Company Ltd. (TSM) is -0.0918 at $77.52, with 1,974,145 shares traded. As reported by Zacks, the current mean recommendation for TSM is in the "buy range".
Exxon Mobil Corporation (XOM) is -0.09 at $105.35, with 1,714,800 shares traded. As reported by Zacks, the current mean recommendation for XOM is in the "buy range".
Walt Disney Company (The) (DIS) is -0.04 at $90.45, with 1,650,182 shares traded. As reported by Zacks, the current mean recommendation for DIS is in the "buy range".
Altria Group (MO) is unchanged at $46.95, with 1,644,629 shares traded. MO's current last sale is 97.81% of the target price of $48.
The views and 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 $136.32, with 3,987,362 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". ProShares UltraPro Short QQQ (SQQQ) is +0.25 at $49.03, with 3,841,067 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 $136.32, with 3,987,362 shares traded. The total After hours volume is currently 115,469,737 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 $136.32, with 3,987,362 shares traded. The total After hours volume is currently 115,469,737 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 $136.32, with 3,987,362 shares traded. As reported in the last short interest update the days to cover for FOLD is 11.02084; this calculation is based on the average trading volume of the stock.
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18004.0
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2022-12-15 00:00:00 UTC
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3 Things About Apple That Smart Investors Know
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AAPL
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https://www.nasdaq.com/articles/3-things-about-apple-that-smart-investors-know-1
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nan
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nan
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Apple (NASDAQ: AAPL) is one of the best-known companies and stocks in the world. However, even the creator of the iPhone hasn't been immune from the erratic market conditions in 2022.
Apple's stock price has fallen 18% since the beginning of the year. That might sound concerning, but with exciting developments in the pipeline, the company's shares are trading at a bargain. As a result, now is an excellent time to learn more about the tech titan.
Here are three things about Apple that smart investors know.
No. 1: Apple Silicon
Apple is closing in on the end of its transition from Intel processors to its own custom-made Apple Silicon chips. The new systems on a chip (SoC) have been a jolt of lightning to Apple's Mac desktop and laptop lineup since being announced in June 2020.
Months after Apple released its first Apple Silicon products, Mac revenue increased by 70%. In the second quarter of 2021, Apple's CFO Luca Maestri said "more than half" of its Mac and iPad sales in that quarter were to customers who had never owned one before as the more powerful Macs attracted consumer interest.
In the second year of Apple's transition away from Intel, the company released its next wave of Apple Silicon products. The new Macs feature major design overhauls thanks to Apple Silicon allowing the company to design its Macs from the ground up, not something Apple could do when it relied on Intel for the processor or SoC. Previously, Apple would have to design around the constraints of Intel, which led to Macs that, from 2016 to 2020, were generally considered some of the worst the company had produced.
Apple's Mac-segment revenue increased by 29% in the fourth quarter of 2020, the quarter when the first Apple Silicon Macs were released. Since then, Apple's Mac revenue has experienced consistent and massive growth year on year. In fact, in Q4 2022, Mac sales rose 25% year over year to $11.5 billion despite declines in the PC market.
No. 2: Services
Apple's services business includes subscriptions, such as Apple Music, TV+, Arcade, iCloud+, News+, and Fitness+, with four of its six key subscriptions introduced within the last three years. The business is swiftly growing, with Apple likely to see significant and consistent gains from its services for the long term.
Since Apple Music launched in 2015, the services segment revenue has grown from around $5 billion each quarter to nearly $20 billion. One of the most attractive parts of the business is its profit margins which hit 71.7% in Apple's fiscal 2022. Comparatively, the same metric for its products came in at 36.3%.
Part of the appeal of Apple devices is that they tend to last much longer than the competition. In fact, the latest software update, iOS 16, supports iPhones released as far back as 2017, while older models still receive critical security updates. Meanwhile, Alphabet's Google supports its Pixel phones with updates for three years, which is above average for Android.
However, supporting devices for longer means customers are less likely to buy new devices as frequently. Apple has been able to offset this problem with its services segment. The company has increased revenue by locking Apple users into its subscriptions, cloud services, and App Store even when it doesn't sell devices.
In 2021, the App store was responsible for roughly 37% of Apple's total services revenue. Although the App store doesn't tie people to Apple in the same way its subscriptions do, it's the segment's biggest individual money maker.
No. 3: Apple Glasses
Apple is reportedly gearing up to release its long-awaited augmented/virtual reality (AR/VR) headset in 2023.
The AR/VR headset has been in the works at Apple for years. Details have slowly trickled out as development has progressed. Production of the unannounced headset is believed to begin in March 2023.
Unlike traditional virtual reality headsets like Meta Platform's Meta Quest, Apple's version is said to be a mixed-reality headset. That means it will overlay information on the world around the user. For example, imagine having the opening time of a restaurant appear in the air when looking at it or map directions overlaid on to reality itself.
Eventually, Apple hopes to replace the iPhone with this device. The first iteration may look like a virtual reality headset. However, future iterations are reported to be as small as glasses and even contact lenses.
Apple's headset could be as revolutionary for humanity as the original iPhone was in 2007. Additionally, considering the $25.33 billion AR market is expected to see a compound annual growth rate of 40.9% until 2030, Apple is cleverly positioning itself in the industry.
Apple shares have tumbled this year, but it continues to have excellent long-term prospects. These three aspects of the company, along with many others, make its stock a no-brainer buy.
10 stocks we like better than Apple
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of 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. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Intel, and Meta Platforms. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) is one of the best-known companies and stocks in the world. The company has increased revenue by locking Apple users into its subscriptions, cloud services, and App Store even when it doesn't sell devices. Although the App store doesn't tie people to Apple in the same way its subscriptions do, it's the segment's biggest individual money maker.
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Apple (NASDAQ: AAPL) is one of the best-known companies and stocks in the world. Months after Apple released its first Apple Silicon products, Mac revenue increased by 70%. Unlike traditional virtual reality headsets like Meta Platform's Meta Quest, Apple's version is said to be a mixed-reality headset.
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Apple (NASDAQ: AAPL) is one of the best-known companies and stocks in the world. 1: Apple Silicon Apple is closing in on the end of its transition from Intel processors to its own custom-made Apple Silicon chips. In the second year of Apple's transition away from Intel, the company released its next wave of Apple Silicon products.
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Apple (NASDAQ: AAPL) is one of the best-known companies and stocks in the world. In the second year of Apple's transition away from Intel, the company released its next wave of Apple Silicon products. That's right -- they think these 10 stocks are even better buys.
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18005.0
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2022-12-15 00:00:00 UTC
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Ericsson to reach lower end of margin goal range by 2024
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AAPL
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https://www.nasdaq.com/articles/ericsson-to-reach-lower-end-of-margin-goal-range-by-2024-0
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nan
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nan
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Adds detail, background
STOCKHOLM, Dec 15 (Reuters) - Swedish telecom equipment maker Ericsson ERICb.ST said on Thursday it was committed to reaching the lower end of its long-term target of a profit (EBITA) margin of 15-18% by 2024 as it outlined strategy to investors.
The company, one of the world's biggest suppliers of 5G wireless technology, said in a statement ahead of investor presentations in New York that it also aimed to generate free cash flow before M&A of 9-12% of sales in the same time frame.
Ericsson reported an EBITA margin of 11.2% for the third quarter as higher investment in technology, selling expenses and one-off costs weighed on profitability.
Last week, the Stockholm-based company announced it had struck a global deal with AppleAAPL.O to end a long-running legal battle over royalty payments over the use of 5G patents in iPhones that has dented profits and shares this year.
(Reporting by Niklas Pollard, editing by Terje Solsvik)
((Niklas.Pollard@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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Last week, the Stockholm-based company announced it had struck a global deal with AppleAAPL.O to end a long-running legal battle over royalty payments over the use of 5G patents in iPhones that has dented profits and shares this year. Adds detail, background STOCKHOLM, Dec 15 (Reuters) - Swedish telecom equipment maker Ericsson ERICb.ST said on Thursday it was committed to reaching the lower end of its long-term target of a profit (EBITA) margin of 15-18% by 2024 as it outlined strategy to investors. The company, one of the world's biggest suppliers of 5G wireless technology, said in a statement ahead of investor presentations in New York that it also aimed to generate free cash flow before M&A of 9-12% of sales in the same time frame.
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Last week, the Stockholm-based company announced it had struck a global deal with AppleAAPL.O to end a long-running legal battle over royalty payments over the use of 5G patents in iPhones that has dented profits and shares this year. Adds detail, background STOCKHOLM, Dec 15 (Reuters) - Swedish telecom equipment maker Ericsson ERICb.ST said on Thursday it was committed to reaching the lower end of its long-term target of a profit (EBITA) margin of 15-18% by 2024 as it outlined strategy to investors. Ericsson reported an EBITA margin of 11.2% for the third quarter as higher investment in technology, selling expenses and one-off costs weighed on profitability.
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Last week, the Stockholm-based company announced it had struck a global deal with AppleAAPL.O to end a long-running legal battle over royalty payments over the use of 5G patents in iPhones that has dented profits and shares this year. Adds detail, background STOCKHOLM, Dec 15 (Reuters) - Swedish telecom equipment maker Ericsson ERICb.ST said on Thursday it was committed to reaching the lower end of its long-term target of a profit (EBITA) margin of 15-18% by 2024 as it outlined strategy to investors. (Reporting by Niklas Pollard, editing by Terje Solsvik) ((Niklas.Pollard@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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Last week, the Stockholm-based company announced it had struck a global deal with AppleAAPL.O to end a long-running legal battle over royalty payments over the use of 5G patents in iPhones that has dented profits and shares this year. Adds detail, background STOCKHOLM, Dec 15 (Reuters) - Swedish telecom equipment maker Ericsson ERICb.ST said on Thursday it was committed to reaching the lower end of its long-term target of a profit (EBITA) margin of 15-18% by 2024 as it outlined strategy to investors. The company, one of the world's biggest suppliers of 5G wireless technology, said in a statement ahead of investor presentations in New York that it also aimed to generate free cash flow before M&A of 9-12% of sales in the same time frame.
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18006.0
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2022-12-15 00:00:00 UTC
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Meta Platforms (META) Unveils New Features in WhatsApp Calling
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AAPL
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https://www.nasdaq.com/articles/meta-platforms-meta-unveils-new-features-in-whatsapp-calling
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nan
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nan
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Meta Platforms META recently launched new features to improve its video and voice calling features in WhatsApp.
META unveiled features like 32-persons call, where users can talk with 32 people at once, four times more than the prior calling feature, in-call banner notifications and colorful waveforms.
Other important features in WhatsApp include call links, using which users can easily invite people to a group call.
The newly launched features are expected to attract users for various uses like business meetings, online classes and personal group chats. This will help improve user growth across META’s Family of Apps business and drive the top line.
Meta Platforms, Inc. Price and Consensus
Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote
META’s New Features to Enhance User Growth
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. Measuring these outcomes is tough. Meta expects these factors to hurt advertising growth in the fourth quarter of 2022.
Revenues from Family of Apps (99% of total revenues) in the third quarter of 2022, which includes Facebook, Instagram, Messenger, WhatsApp and other services, decreased 3.6% year over year to $27.43 billion. The company expects revenues to fall further in the coming quarter.
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. However, due to falling Family of Apps revenues, META’s plans to fund the growth of its Reality Labs, which is responsible for building the metaverse, have taken a major hit.
The U.S. economy is facing macroeconomic turmoil due to the rising inflation and recession triggered by interest rate hikes by the Federal Reserve.
Rising inflation has also compelled domestic and global customers to pull back on their purchases.
Consequently, the slowing economy is likely to trigger cuts in ad spending, which will hurt the revenues of ad-driven Internet stocks like Meta, impacting their bottom-line growth.
All these contributed to Meta’s falling share price. Its shares have tumbled 63.9% in the year-to-date period compared with the Zacks Internet – Software industry’s decline of 58.5%.
Amid such a situation, Meta has been investing heavily in AI and launching features across Instagram, Facebook and WhatsApp to boost its user growth in its Family of Apps and increase top-line growth to meet its future goals of creating the metaverse.
Prior to the recent call development features in WhatsApp, Meta launched avatars on WhatsApp. The company used AI to create a digital version of users with various features, which creates a way of connecting with users and would be a small preview of how it would feel to communicate with others in an alternate reality of the metaverse.
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 NVDA 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 has collaborated with NVIDIA to build an AI research supercomputer, helping META AI researchers to build different AI models crucial for creating the metaverse.
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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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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 NVIDIA Corporation (NVDA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. However, due to falling Family of Apps revenues, META’s plans to fund the growth of its Reality Labs, which is responsible for building the metaverse, have taken a major hit.
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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 NVIDIA Corporation (NVDA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Amid such a situation, Meta has been investing heavily in AI and launching features across Instagram, Facebook and WhatsApp to boost its user growth in its Family of Apps and increase top-line growth to meet its future goals of creating the metaverse.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. 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’s New Features to Enhance User Growth 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 NVIDIA Corporation (NVDA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Meta Platforms META recently launched new features to improve its video and voice calling features in WhatsApp.
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18007.0
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2022-12-15 00:00:00 UTC
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Our Biggest Investing Mistakes and Lessons Learned in 2022
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AAPL
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https://www.nasdaq.com/articles/our-biggest-investing-mistakes-and-lessons-learned-in-2022
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nan
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nan
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Looking back on 2022, it's important to learn from the mistakes we make, and that's what we're here to do. In the video below, Jon Quast and Travis Hoium discuss their mistakes and what they're taking from the year to be better investors in 2023.
*Stock prices used were end-of-day prices of Dec. 6, 2022. The video was published on Dec. 14, 2022.
10 stocks we like better than Crocs
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 Crocs wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 1, 2022
Jon Quast has positions in Axon Enterprise, Crocs, and Lemonade. Travis Hoium has positions in Apple, Axon Enterprise, and Cloudflare. The Motley Fool has positions in and recommends Apple, Axon Enterprise, Cloudflare, and Lemonade. The Motley Fool recommends Crocs and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the video below, Jon Quast and Travis Hoium discuss their mistakes and what they're taking from the year to be better investors in 2023. 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, Axon Enterprise, Cloudflare, and Lemonade.
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See the 10 stocks *Stock Advisor returns as of December 1, 2022 Jon Quast has positions in Axon Enterprise, Crocs, and Lemonade. Travis Hoium has positions in Apple, Axon Enterprise, and Cloudflare. The Motley Fool has positions in and recommends Apple, Axon Enterprise, Cloudflare, and Lemonade.
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See the 10 stocks *Stock Advisor returns as of December 1, 2022 Jon Quast has positions in Axon Enterprise, Crocs, and Lemonade. The Motley Fool has positions in and recommends Apple, Axon Enterprise, Cloudflare, and Lemonade. The Motley Fool recommends Crocs and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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In the video below, Jon Quast and Travis Hoium discuss their mistakes and what they're taking from the year to be better investors in 2023. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Jon Quast has positions in Axon Enterprise, Crocs, and Lemonade. Travis Hoium has positions in Apple, Axon Enterprise, and Cloudflare.
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18008.0
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2022-12-15 00:00:00 UTC
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4 High-Yield Dividend Stocks to Buy Now
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AAPL
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https://www.nasdaq.com/articles/4-high-yield-dividend-stocks-to-buy-now
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nan
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nan
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Some great dividend stocks are being overlooked by the market, and investors can take advantage. In the video below, Travis Hoium and Jon Quast discuss the four stocks they like that are paying great dividends to shareholders.
*Stock prices used were end-of-day prices of Dec. 6, 2022. The video was published on Dec. 14, 2022.
10 stocks we like better than Best Buy
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 Best Buy 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. Jon Quast has positions in Amazon.com and Tanger Factory Outlet Centers. Travis Hoium has positions in Apple, Verizon Communications, and Walt Disney. The Motley Fool has positions in and recommends Amazon.com, Apple, Best Buy, Domino's Pizza, Netflix, Target, and Walt Disney. The Motley Fool recommends Restaurant Brands International, Tanger Factory Outlet Centers, and Verizon Communications and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the video below, Travis Hoium and Jon Quast discuss the four stocks they like that are paying great dividends to shareholders. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Amazon.com, Apple, Best Buy, Domino's Pizza, Netflix, Target, and Walt Disney.
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Jon Quast has positions in Amazon.com and Tanger Factory Outlet Centers. Travis Hoium has positions in Apple, Verizon Communications, and Walt Disney. The Motley Fool recommends Restaurant Brands International, Tanger Factory Outlet Centers, and Verizon Communications and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple.
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See the 10 stocks *Stock Advisor returns as of December 1, 2022 John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Amazon.com, Apple, Best Buy, Domino's Pizza, Netflix, Target, and Walt Disney. The Motley Fool recommends Restaurant Brands International, Tanger Factory Outlet Centers, and Verizon Communications and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple.
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In the video below, Travis Hoium and Jon Quast discuss the four stocks they like that are paying great dividends to shareholders. Travis Hoium has positions in Apple, Verizon Communications, and Walt Disney. Their opinions remain their own and are unaffected by The Motley Fool.
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18009.0
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2022-12-15 00:00:00 UTC
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US STOCKS-Futures slide as hawkish Fed quashes policy pivot hopes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-slide-as-hawkish-fed-quashes-policy-pivot-hopes
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nan
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nan
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By Sruthi Shankar
Dec 15 (Reuters) - U.S stock index futures dropped on Thursday, a day after the Federal Reserve raised interest rates as expected, but rattled investors by saying rates would remain higher for longer.
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, quashing hopes that the central bank would hit the brake on its hiking-cycle early next year.
Investors currently expect at least two 25 bps rate hikes next year and borrowing costs to peak at 4.9% by May next year, before falling to around 4.4% by year-end. FEDWATCH
"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 & Wealth Management at HSBC.
The U.S. central bank hiked rates by 50 basis points (bps) on Wednesday, slowing down from four back-to-back 75 bps hikes, although Fed Chair Jerome Powell said recent signs of slowing inflation have not brought any confidence yet that the fight had been won.
Since October, when they hit year-lows, Wall Street's main indexes have staged a strong recovery on hopes of a less aggressive Fed, but the rally stalled in December due to mixed economic data and worrying corporate forecasts.
"The market is waking up to the fact that the priced in pivot may be a little too optimistic ... the rate cuts that we are foreseeing are only in 2024," Sels said.
A slew of economic data, including weekly jobless claims, retail sales data and industrial production, is due later in the day, as are interest rate decisions from the European Central Bank and the Bank of England. Both central banks are expected to hike borrowing costs by 50 bps.
At 6:41 a.m. ET, Dow e-minis 1YMcv1 were down 240 points, or 0.71%, S&P 500 e-minis EScv1 were down 39.75 points, or 0.99%, and Nasdaq 100 e-minis NQcv1 were down 153 points, or 1.29%.
Shares of megacap companies, including Apple AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Nvidia Corp NVDA.O, fell between 1.1% and 2.1% in premarket trading.
Tesla Inc TSLA.O fell 1.7% after boss Elon Musk disclosed another $3.6 billion in stock sales, taking his total near $40 billion this year and frustrating investors as the company's shares wallow at two-year lows.
Trade Desk Inc TTD.O slipped 4.1% after Jefferies downgraded its rating for the adtech firm to "hold" from "buy".
(Reporting by Sruthi Shankar and Ankika Biswas in Bengaluru; Editing by Savio D'Souza and Vinay Dwivedi)
((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, including Apple AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Nvidia Corp NVDA.O, fell between 1.1% and 2.1% in premarket trading. 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, quashing hopes that the central bank would hit the brake on its hiking-cycle early next year. FEDWATCH "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 & Wealth Management at HSBC.
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Shares of megacap companies, including Apple AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Nvidia Corp NVDA.O, fell between 1.1% and 2.1% in premarket trading. Investors currently expect at least two 25 bps rate hikes next year and borrowing costs to peak at 4.9% by May next year, before falling to around 4.4% by year-end. The U.S. central bank hiked rates by 50 basis points (bps) on Wednesday, slowing down from four back-to-back 75 bps hikes, although Fed Chair Jerome Powell said recent signs of slowing inflation have not brought any confidence yet that the fight had been won.
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Shares of megacap companies, including Apple AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Nvidia Corp NVDA.O, fell between 1.1% and 2.1% in premarket trading. By Sruthi Shankar Dec 15 (Reuters) - U.S stock index futures dropped on Thursday, a day after the Federal Reserve raised interest rates as expected, but rattled investors by saying rates would remain higher for longer. The U.S. central bank hiked rates by 50 basis points (bps) on Wednesday, slowing down from four back-to-back 75 bps hikes, although Fed Chair Jerome Powell said recent signs of slowing inflation have not brought any confidence yet that the fight had been won.
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Shares of megacap companies, including Apple AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Nvidia Corp NVDA.O, fell between 1.1% and 2.1% in premarket trading. Investors currently expect at least two 25 bps rate hikes next year and borrowing costs to peak at 4.9% by May next year, before falling to around 4.4% by year-end. The U.S. central bank hiked rates by 50 basis points (bps) on Wednesday, slowing down from four back-to-back 75 bps hikes, although Fed Chair Jerome Powell said recent signs of slowing inflation have not brought any confidence yet that the fight had been won.
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18010.0
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2022-12-15 00:00:00 UTC
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US STOCKS-Wall Street set to open sharply lower on angst over hawkish Fed
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-set-to-open-sharply-lower-on-angst-over-hawkish-fed
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nan
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nan
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By Sruthi Shankar and Ankika Biswas
Dec 15 (Reuters) - Wall Street's main stock indexes were set to open sharply lower 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% by May next year, before falling to around 4.4% by 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 due to 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 declining last week, indicating a tight labor market.
"In some ways 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 more likely hikes in a bid to tame spiraling inflation.
At 8:57 a.m. ET, Dow e-minis 1YMcv1 were down 358 points, or 1.05%, S&P 500 e-minis EScv1 were down 54.25 points, or 1.35%, and Nasdaq 100 e-minis NQcv1 were down 194 points, or 1.63%.
Shares of megacap companies, including Apple AAPL.O, Amazon.com Inc AMZN.Oand Microsoft Corp MSFT.O fell more than 1% each in premarket trading.
Tesla Inc TSLA.O fell 2.9% after CEO Elon Musk disclosed another $3.6 billion in stock sales, taking his total near $40 billion this year and frustrating investors as the company's shares wallow at two-year lows.
Netflix Inc NFLX.O slumped 4.8% after a media report said the entertainment services firm will let its advertisers take their money back after missing viewership targets.
Nvidia Corp NVDA.O slipped 2.6% after HSBC Global Research began coverage on the chipmakers stock with a "reduce" rating, while Western Digital WDC.O slid 5.2% following a report that Goldman Sachs downgraded the data storage firm’s stock to "sell" from "neutral".
(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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Shares of megacap companies, including Apple AAPL.O, Amazon.com Inc AMZN.Oand Microsoft Corp MSFT.O fell more than 1% each in premarket trading. By Sruthi Shankar and Ankika Biswas Dec 15 (Reuters) - Wall Street's main stock indexes were set to open sharply lower 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 due to mixed economic data and worrying corporate forecasts.
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Shares of megacap companies, including Apple AAPL.O, Amazon.com Inc AMZN.Oand Microsoft Corp MSFT.O fell more than 1% each in premarket trading. By Sruthi Shankar and Ankika Biswas Dec 15 (Reuters) - Wall Street's main stock indexes were set to open sharply lower 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 due to mixed economic data and worrying corporate forecasts.
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Shares of megacap companies, including Apple AAPL.O, Amazon.com Inc AMZN.Oand Microsoft Corp MSFT.O fell more than 1% each in premarket trading. "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. 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 declining last week, indicating a tight labor market.
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Shares of megacap companies, including Apple AAPL.O, Amazon.com Inc AMZN.Oand Microsoft Corp MSFT.O fell more than 1% each in premarket trading. By Sruthi Shankar and Ankika Biswas Dec 15 (Reuters) - Wall Street's main stock indexes were set to open sharply lower 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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18011.0
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2022-12-15 00:00:00 UTC
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2 Top Stocks Poised for Bull Runs in 2023
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AAPL
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https://www.nasdaq.com/articles/2-top-stocks-poised-for-bull-runs-in-2023
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nan
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nan
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The stock market looks set to end 2022 on a positive note following a rough year thanks to positive data on the inflation front that could encourage the Federal Reserve to reduce the pace of rate hikes.
What's more, U.S. Treasury Secretary Janet Yellen sees inflation cooling substantially by the end of 2023. As such, it wouldn't be surprising to see the S&P 500 sustain its momentum into the new year. The index has gained 11% since the beginning of October, and it could head higher in 2023 if inflation falls and the Fed dials down rate hikes.
Such a scenario could present an ideal situation for shares of Apple (NASDAQ: AAPL) and Ciena (NYSE: CIEN) to go on bull runs. Let's look at the reasons why.
1. Apple
Apple has been in thefinancial newsfor the wrong reasons of late. Morgan Stanley recently cut its iPhone shipment estimates for the fourth quarter of 2022 by 3 million units. The latest cut is in addition to the 6 million units shaved off by Morgan Stanley in November. Apple is now expected to ship 75.5 million iPhone units in the current quarter -- down substantially from the earlier estimate of 85 million units -- owing to troubles at a factory in China that has been the center of worker unrest and a COVID-related shutdown.
The new year may start on a negative note for Apple -- but there are a few solid reasons why it could regain its mojo as the year progresses.
Strong growth in the 5G smartphone market is one reason to be upbeat about Apple's 2023 prospects. iPhone sales have been heading higher at a time when the global smartphone market has been declining, thanks to healthy demand for Apple's latest smartphones and its robust share in 5G smartphones.
Apple controls over 29% of the global 5G smartphone market. Sales of 5G smartphones are expected to increase by 15% from 2021 to around 620 million units in 2022. But by 2026, 5G smartphone shipments are expected to exceed 1.11 billion units annually and account for 80% of the global smartphone market.
There is a lot of room for Apple to grow its iPhone sales in the long run. The tech giant could see an acceleration in smartphone sales from the second half of 2023 when the overall market is expected to start recovering. In all, stronger iPhone sales next year could give Apple a big boost: The device produced over $205 billion in revenue in fiscal 2022, accounting for over 52% of the company's top line.
But the iPhone likely isn't the only catalyst for the company. Noted Apple analyst Ming-Chi Kuo of TF International Securities, who has a reliable track record of making predictions on Apple products, estimates that the company could start mass-producing its augmented reality/virtual reality (AR/VR) headset in the first half of 2023, with shipments beginning in the second half.
Market intelligence firm IDC estimates that shipments of VR headsets could jump to 31 million units by the end of 2026, compared to this year's estimate of around 11 million. AR headsets, on the other hand, could hit 4.1 million units in annual shipments by 2026, compared to just 259,000 units in 2022.
The opportunity here is massive. If Apple's purported headset hits the market at the right time next year, the move could unlock new opportunities in terms of both hardware and software. All this indicates that Apple could overcome the challenges it has faced in 2022 and turn in a much better performance in the new year, and that could send this tech stock on a bull run.
2. Ciena
Ciena stock was on fire last week after the company released stellar results for the fourth quarter of fiscal 2022 (ended Oct. 29) on Dec. 8. Shares of the networking equipment supplier surged 20% in a single day as its top and bottom lines crushed estimates.
Ciena's revenue of $971 million was way higher than consensus estimates of $850 million. Also, adjusted earnings of $0.61 per share handsomely exceeded the $0.08 per share Wall Street estimate. Ciena credited its stronger-than-expected results to an improving supply chain scenario that allowed it to fulfill more orders last quarter.
More importantly, Ciena management expects to deliver "outsized growth" in the new fiscal year. The company's top line remained flat in fiscal 2022 at $3.6 billion as it was unable to fulfill orders on account of a shortage of components. In fiscal 2023, however, Ciena is anticipating a 16% to 18% increase in revenue. That would translate into $4.2 billion in revenue in the current fiscal year at the midpoint of the guidance range.
Ciena's backlog should be solid enough to help it achieve its target. The networking specialist was sitting on $4.2 billion worth of order backlog at the end of fiscal 2022, which was nearly double its backlog at the beginning of the year. Moreover, Ciena saw a 26% increase in orders last fiscal year thanks to the strong demand for its various offerings such as routers, switches, and optical networking solutions.
Ciena's top-line acceleration in 2023 is expected to filter down to the bottom line as well, with analysts expecting a sharp jump over fiscal 2022's adjusted earnings of $1.90 per share.
CIEN EPS Estimates for Current Fiscal Year data by YCharts
Even better, Ciena is expected to sustain its earnings growth in the long run as well, as the chart above indicates. All this makes Ciena a top stock to buy right now, especially considering that it is trading at 2.1 times sales, which represents a slight discount to the S&P 500's sales multiple of 2.4. The company's latest results and guidance for next year suggest that it could go on a bull run, so now would be a good time to buy Ciena.
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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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Such a scenario could present an ideal situation for shares of Apple (NASDAQ: AAPL) and Ciena (NYSE: CIEN) to go on bull runs. In all, stronger iPhone sales next year could give Apple a big boost: The device produced over $205 billion in revenue in fiscal 2022, accounting for over 52% of the company's top line. If Apple's purported headset hits the market at the right time next year, the move could unlock new opportunities in terms of both hardware and software.
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Such a scenario could present an ideal situation for shares of Apple (NASDAQ: AAPL) and Ciena (NYSE: CIEN) to go on bull runs. Morgan Stanley recently cut its iPhone shipment estimates for the fourth quarter of 2022 by 3 million units. But by 2026, 5G smartphone shipments are expected to exceed 1.11 billion units annually and account for 80% of the global smartphone market.
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Such a scenario could present an ideal situation for shares of Apple (NASDAQ: AAPL) and Ciena (NYSE: CIEN) to go on bull runs. Apple is now expected to ship 75.5 million iPhone units in the current quarter -- down substantially from the earlier estimate of 85 million units -- owing to troubles at a factory in China that has been the center of worker unrest and a COVID-related shutdown. iPhone sales have been heading higher at a time when the global smartphone market has been declining, thanks to healthy demand for Apple's latest smartphones and its robust share in 5G smartphones.
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Such a scenario could present an ideal situation for shares of Apple (NASDAQ: AAPL) and Ciena (NYSE: CIEN) to go on bull runs. Strong growth in the 5G smartphone market is one reason to be upbeat about Apple's 2023 prospects. Sales of 5G smartphones are expected to increase by 15% from 2021 to around 620 million units in 2022.
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18012.0
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2022-12-14 00:00:00 UTC
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Tesla shares fall as investors bash Musk's Twitter focus
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AAPL
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https://www.nasdaq.com/articles/tesla-shares-fall-as-investors-bash-musks-twitter-focus
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nan
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nan
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By Hyunjoo Jin
SAN FRANCISCO, Dec 14 (Reuters) - Tesla TSLA.O shares extended declines to hit their lowest level in more than two years on Wednesday, as investors including a "fanboy" of CEO Elon Musk lashed out at Musk's distraction from the electric car company following his buy of Twitter.
Shares of Tesla, the world's most valuable carmaker, is one of the worst performing stocks among major automakers and tech companies this year, as investors worry that Musk's Twitter buy could divert his time away from Tesla and he could offload more Tesla stocks to prop up the struggling social media company.
Investors are also increasingly concerned that his antics could hurt brand and sales of Tesla, the world's top electric carmaker which faces increasing competition.
"Elon abandoned Tesla and Tesla has no working CEO," KoGuan Leo, the third Largest individual shareholder of Tesla, who describes himself of Musk's "fanboy," tweeted on Wednesday.
"Are we merely Elon’s foolish bag holders?" he said. "An executioner, Tim Cook-like is needed, not Elon."
Tesla shares traded down 1.4%, after falling as much as 3.2% to $155.88 per share, the lowest level since November 18, 2020.
Tesla shares slumped 55% so far this year, lagging the performances of GM GM.N, Ford F.N, Apple AAPL.O and Amazon AMZN.O.
Musk said on Tuesday that he “will make sure Tesla shareholders benefit from Twitter long-term," without elaborating.
Even Tesla bulls and loyal fans expressed discontent over Musk's controversial tweets.
"Elon is a brilliant business leader. He will realize soon (if not already) that his polarizing political views are hurting customer perceptions of $TSLA EVs," Gary Black, a Tesla bull, tweeted on Wednesday.
"Customers don’t want their cars to be controversial. They want to be proud as hell to drive them - not embarrassed."
Goldman Sachs on Tuesday cut the price target for Tesla shares and lowered estimates for Tesla's deliveries and gross margins for the fourth quarter, reflecting softer supply and demand.
Musk's banks to book Twitter loan losses, avoid big hits -sources
Musk's bankers mull new Tesla margin loans to slash Twitter debt - Bloomberg News
Elon Musk briefly loses title as world's richest person to LVMH's Arnault - Forbes
Tesla cuts output plan for Shanghai plant for Dec -sources
Musk delivers first Tesla truck, but no update on output, pricing
Tesla readies revamped Model 3 with project 'Highland' -sources
(Reporting by Hyunjoo Jin Editing by Nick Zieminski)
((hyunjoo.jin@thomsonreuters.com; 82-2-3704-5685; Reuters Messaging: hyunjoo.jin.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Tesla shares slumped 55% so far this year, lagging the performances of GM GM.N, Ford F.N, Apple AAPL.O and Amazon AMZN.O. By Hyunjoo Jin SAN FRANCISCO, Dec 14 (Reuters) - Tesla TSLA.O shares extended declines to hit their lowest level in more than two years on Wednesday, as investors including a "fanboy" of CEO Elon Musk lashed out at Musk's distraction from the electric car company following his buy of Twitter. He will realize soon (if not already) that his polarizing political views are hurting customer perceptions of $TSLA EVs," Gary Black, a Tesla bull, tweeted on Wednesday.
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Tesla shares slumped 55% so far this year, lagging the performances of GM GM.N, Ford F.N, Apple AAPL.O and Amazon AMZN.O. By Hyunjoo Jin SAN FRANCISCO, Dec 14 (Reuters) - Tesla TSLA.O shares extended declines to hit their lowest level in more than two years on Wednesday, as investors including a "fanboy" of CEO Elon Musk lashed out at Musk's distraction from the electric car company following his buy of Twitter. Shares of Tesla, the world's most valuable carmaker, is one of the worst performing stocks among major automakers and tech companies this year, as investors worry that Musk's Twitter buy could divert his time away from Tesla and he could offload more Tesla stocks to prop up the struggling social media company.
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Tesla shares slumped 55% so far this year, lagging the performances of GM GM.N, Ford F.N, Apple AAPL.O and Amazon AMZN.O. Shares of Tesla, the world's most valuable carmaker, is one of the worst performing stocks among major automakers and tech companies this year, as investors worry that Musk's Twitter buy could divert his time away from Tesla and he could offload more Tesla stocks to prop up the struggling social media company. "Elon abandoned Tesla and Tesla has no working CEO," KoGuan Leo, the third Largest individual shareholder of Tesla, who describes himself of Musk's "fanboy," tweeted on Wednesday.
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Tesla shares slumped 55% so far this year, lagging the performances of GM GM.N, Ford F.N, Apple AAPL.O and Amazon AMZN.O. By Hyunjoo Jin SAN FRANCISCO, Dec 14 (Reuters) - Tesla TSLA.O shares extended declines to hit their lowest level in more than two years on Wednesday, as investors including a "fanboy" of CEO Elon Musk lashed out at Musk's distraction from the electric car company following his buy of Twitter. Shares of Tesla, the world's most valuable carmaker, is one of the worst performing stocks among major automakers and tech companies this year, as investors worry that Musk's Twitter buy could divert his time away from Tesla and he could offload more Tesla stocks to prop up the struggling social media company.
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18013.0
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2022-12-14 00:00:00 UTC
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Australia takes aim at Apple, Microsoft over child protection online
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AAPL
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https://www.nasdaq.com/articles/australia-takes-aim-at-apple-microsoft-over-child-protection-online
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nan
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nan
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By Byron Kaye
SYDNEY, Dec 15 (Reuters) - An Australian regulator, after using new powers to make the tech giants share information about their methods, accused Apple Inc AAPL.O and Microsoft Corp MSFT.O not doing enough to stop child exploitation content on their platforms.
The e-Safety Commissioner, an office set up to protect internet users, said that after sending legal demands for information to some of the world's biggest internet firms, the responses showed Apple and Microsoft did not proactively screen for child abuse material in their storage services, iCloud and OneDrive.
The two firms also confirmed they did not use any technology to detect live-streaming of child sexual abuse on video services Skype and Microsoft Teams, which are owned by Microsoft, and FaceTime, which is owned by Apple, the commissioner said in a report published on Thursday.
A Microsoft spokesperson said the company was committed to combatting proliferation of abuse material but "as threats to children's safety continue to evolve and bad actors become more sophisticated in their tactics, we continue to challenge ourselves to adapt our response".
Apple was not immediately available for comment.
The disclosure confirms gaps in the child protection measures of some of the world's biggest tech firms, building public pressure on them to do more, according to the commissioner. Meta Platforms Inc, META.O which owns Facebook, Instagram and WhatsApp, and Snapchat owner Snap Inc SNAP.N also got demands for information.
The responses overall were "alarming" and raised concerns of "clearly inadequate and inconsistent use of widely available technology to detect child abuse material and grooming", commissioner Julie Inman Grant said in a statement.
Microsoft and Apple "do not even attempt to proactively detect previously confirmed child abuse material" on their storage services, although a Microsoft-developed detection product is used by law enforcement agencies.
An Apple announcement a week ago that it would stop scanning iCloud accounts for child abuse, following pressure from privacy advocates, was "a major step backwards from their responsibilities to help keep children safe" Inman Grant said.
The failure of both firms to detect live-streamed abuse amounted to "some of the biggest and richest technology companies in the world turning a blind eye and failing to take appropriate steps to protect the most vulnerable from the most predatory", she added.
($1 = 1.4588 Australian dollars)
(Reporting by Byron Kaye. Editing by Gerry Doyle)
((byron.kaye@thomsonreuters.com; +612 9171 7541; @byronkaye;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Byron Kaye SYDNEY, Dec 15 (Reuters) - An Australian regulator, after using new powers to make the tech giants share information about their methods, accused Apple Inc AAPL.O and Microsoft Corp MSFT.O not doing enough to stop child exploitation content on their platforms. An Apple announcement a week ago that it would stop scanning iCloud accounts for child abuse, following pressure from privacy advocates, was "a major step backwards from their responsibilities to help keep children safe" Inman Grant said. The failure of both firms to detect live-streamed abuse amounted to "some of the biggest and richest technology companies in the world turning a blind eye and failing to take appropriate steps to protect the most vulnerable from the most predatory", she added.
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By Byron Kaye SYDNEY, Dec 15 (Reuters) - An Australian regulator, after using new powers to make the tech giants share information about their methods, accused Apple Inc AAPL.O and Microsoft Corp MSFT.O not doing enough to stop child exploitation content on their platforms. The e-Safety Commissioner, an office set up to protect internet users, said that after sending legal demands for information to some of the world's biggest internet firms, the responses showed Apple and Microsoft did not proactively screen for child abuse material in their storage services, iCloud and OneDrive. The responses overall were "alarming" and raised concerns of "clearly inadequate and inconsistent use of widely available technology to detect child abuse material and grooming", commissioner Julie Inman Grant said in a statement.
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By Byron Kaye SYDNEY, Dec 15 (Reuters) - An Australian regulator, after using new powers to make the tech giants share information about their methods, accused Apple Inc AAPL.O and Microsoft Corp MSFT.O not doing enough to stop child exploitation content on their platforms. The e-Safety Commissioner, an office set up to protect internet users, said that after sending legal demands for information to some of the world's biggest internet firms, the responses showed Apple and Microsoft did not proactively screen for child abuse material in their storage services, iCloud and OneDrive. The two firms also confirmed they did not use any technology to detect live-streaming of child sexual abuse on video services Skype and Microsoft Teams, which are owned by Microsoft, and FaceTime, which is owned by Apple, the commissioner said in a report published on Thursday.
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By Byron Kaye SYDNEY, Dec 15 (Reuters) - An Australian regulator, after using new powers to make the tech giants share information about their methods, accused Apple Inc AAPL.O and Microsoft Corp MSFT.O not doing enough to stop child exploitation content on their platforms. The e-Safety Commissioner, an office set up to protect internet users, said that after sending legal demands for information to some of the world's biggest internet firms, the responses showed Apple and Microsoft did not proactively screen for child abuse material in their storage services, iCloud and OneDrive. The two firms also confirmed they did not use any technology to detect live-streaming of child sexual abuse on video services Skype and Microsoft Teams, which are owned by Microsoft, and FaceTime, which is owned by Apple, the commissioner said in a report published on Thursday.
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18014.0
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2022-12-14 00:00:00 UTC
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Big Tech gets preview of questions U.S. House Republicans want answered
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AAPL
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https://www.nasdaq.com/articles/big-tech-gets-preview-of-questions-u.s.-house-republicans-want-answered
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nan
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nan
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By Diane Bartz
WASHINGTON, Dec 14 (Reuters) - Representative Jim Jordan, who will chair the House Judiciary Committee next Congress, gave a hint of what is to come with letters sent to five big tech companies requesting information about conservative material removed from their platforms.
In letters sent Tuesday and seen by Reuters, Jordan requested the top executives at Alphabet's Google GOOGL.O, Microsoft MSFT.O, Apple AAPL.O, Amazon AMZN.O and Meta's Facebook FB.O provide any information they have about contact with President Joe Biden's administration regarding "the moderation, deletion, suppression, restricting, or reduced circulation of content."
Microsoft declined to comment. The other companies did not immediately respond to requests for comment.
Republicans won control of the House in the midterm elections, which will give them control of key committees in January with the power to investigate and even subpoena witnesses.
Jordan and other Republicans have argued that the companies stifle conservative voices, something that they have denied.
"House Republicans have written a number of prior letters to you in attempts to obtain relevant information. You have not provided responses that have satisfied our concerns," Jordan wrote in the letters. "Committee Republicans will continue to pursue these matters, including into the 118th Congress if necessary."
U.S. House Republicans make investigation of Biden a top priority
Republican National Committee sues Google over email spam filters
(Reporting by Diane Bartz; Editing by Lisa Shumaker)
((Diane.Bartz@thomsonreuters.com; 1 202 898 8313;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In letters sent Tuesday and seen by Reuters, Jordan requested the top executives at Alphabet's Google GOOGL.O, Microsoft MSFT.O, Apple AAPL.O, Amazon AMZN.O and Meta's Facebook FB.O provide any information they have about contact with President Joe Biden's administration regarding "the moderation, deletion, suppression, restricting, or reduced circulation of content." By Diane Bartz WASHINGTON, Dec 14 (Reuters) - Representative Jim Jordan, who will chair the House Judiciary Committee next Congress, gave a hint of what is to come with letters sent to five big tech companies requesting information about conservative material removed from their platforms. U.S. House Republicans make investigation of Biden a top priority Republican National Committee sues Google over email spam filters (Reporting by Diane Bartz; Editing by Lisa Shumaker) ((Diane.Bartz@thomsonreuters.com; 1 202 898 8313;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In letters sent Tuesday and seen by Reuters, Jordan requested the top executives at Alphabet's Google GOOGL.O, Microsoft MSFT.O, Apple AAPL.O, Amazon AMZN.O and Meta's Facebook FB.O provide any information they have about contact with President Joe Biden's administration regarding "the moderation, deletion, suppression, restricting, or reduced circulation of content." By Diane Bartz WASHINGTON, Dec 14 (Reuters) - Representative Jim Jordan, who will chair the House Judiciary Committee next Congress, gave a hint of what is to come with letters sent to five big tech companies requesting information about conservative material removed from their platforms. U.S. House Republicans make investigation of Biden a top priority Republican National Committee sues Google over email spam filters (Reporting by Diane Bartz; Editing by Lisa Shumaker) ((Diane.Bartz@thomsonreuters.com; 1 202 898 8313;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In letters sent Tuesday and seen by Reuters, Jordan requested the top executives at Alphabet's Google GOOGL.O, Microsoft MSFT.O, Apple AAPL.O, Amazon AMZN.O and Meta's Facebook FB.O provide any information they have about contact with President Joe Biden's administration regarding "the moderation, deletion, suppression, restricting, or reduced circulation of content." By Diane Bartz WASHINGTON, Dec 14 (Reuters) - Representative Jim Jordan, who will chair the House Judiciary Committee next Congress, gave a hint of what is to come with letters sent to five big tech companies requesting information about conservative material removed from their platforms. U.S. House Republicans make investigation of Biden a top priority Republican National Committee sues Google over email spam filters (Reporting by Diane Bartz; Editing by Lisa Shumaker) ((Diane.Bartz@thomsonreuters.com; 1 202 898 8313;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In letters sent Tuesday and seen by Reuters, Jordan requested the top executives at Alphabet's Google GOOGL.O, Microsoft MSFT.O, Apple AAPL.O, Amazon AMZN.O and Meta's Facebook FB.O provide any information they have about contact with President Joe Biden's administration regarding "the moderation, deletion, suppression, restricting, or reduced circulation of content." By Diane Bartz WASHINGTON, Dec 14 (Reuters) - Representative Jim Jordan, who will chair the House Judiciary Committee next Congress, gave a hint of what is to come with letters sent to five big tech companies requesting information about conservative material removed from their platforms. Microsoft declined to comment.
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18015.0
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2022-12-14 00:00:00 UTC
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Noteworthy Wednesday Option Activity: AZO, AMZN, AAPL
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AAPL
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https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity%3A-azo-amzn-aapl
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nan
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in AutoZone, Inc. (Symbol: AZO), where a total of 1,961 contracts have traded so far, representing approximately 196,100 underlying shares. That amounts to about 134.5% of AZO's average daily trading volume over the past month of 145,760 shares. Particularly high volume was seen for the $2000 strike put option expiring January 13, 2023, with 68 contracts trading so far today, representing approximately 6,800 underlying shares of AZO. Below is a chart showing AZO's trailing twelve month trading history, with the $2000 strike highlighted in orange:
Amazon.com Inc (Symbol: AMZN) saw options trading volume of 929,962 contracts, representing approximately 93.0 million underlying shares or approximately 124.2% of AMZN's average daily trading volume over the past month, of 74.9 million shares. Particularly high volume was seen for the $95 strike call option expiring December 16, 2022, with 46,577 contracts trading so far today, representing approximately 4.7 million underlying shares of AMZN. Below is a chart showing AMZN's trailing twelve month trading history, with the $95 strike highlighted in orange:
And Apple Inc (Symbol: AAPL) saw options trading volume of 812,455 contracts, representing approximately 81.2 million underlying shares or approximately 114.4% of AAPL's average daily trading volume over the past month, of 71.0 million shares. Especially high volume was seen for the $150 strike call option expiring December 16, 2022, with 47,775 contracts trading so far today, representing approximately 4.8 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $150 strike highlighted in orange:
For the various different available expirations for AZO options, AMZN options, or AAPL options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Cheap Consumer Shares
EOLS Average Annual Return
Top Ten Hedge Funds Holding DYNC
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $150 strike call option expiring December 16, 2022, with 47,775 contracts trading so far today, representing approximately 4.8 million underlying shares of AAPL. Below is a chart showing AMZN's trailing twelve month trading history, with the $95 strike highlighted in orange: And Apple Inc (Symbol: AAPL) saw options trading volume of 812,455 contracts, representing approximately 81.2 million underlying shares or approximately 114.4% of AAPL's average daily trading volume over the past month, of 71.0 million shares. Below is a chart showing AAPL's trailing twelve month trading history, with the $150 strike highlighted in orange: For the various different available expirations for AZO options, AMZN options, or AAPL options, visit StockOptionsChannel.com.
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Below is a chart showing AMZN's trailing twelve month trading history, with the $95 strike highlighted in orange: And Apple Inc (Symbol: AAPL) saw options trading volume of 812,455 contracts, representing approximately 81.2 million underlying shares or approximately 114.4% of AAPL's average daily trading volume over the past month, of 71.0 million shares. Especially high volume was seen for the $150 strike call option expiring December 16, 2022, with 47,775 contracts trading so far today, representing approximately 4.8 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $150 strike highlighted in orange: For the various different available expirations for AZO options, AMZN options, or AAPL options, visit StockOptionsChannel.com.
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Below is a chart showing AMZN's trailing twelve month trading history, with the $95 strike highlighted in orange: And Apple Inc (Symbol: AAPL) saw options trading volume of 812,455 contracts, representing approximately 81.2 million underlying shares or approximately 114.4% of AAPL's average daily trading volume over the past month, of 71.0 million shares. Especially high volume was seen for the $150 strike call option expiring December 16, 2022, with 47,775 contracts trading so far today, representing approximately 4.8 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $150 strike highlighted in orange: For the various different available expirations for AZO options, AMZN options, or AAPL options, visit StockOptionsChannel.com.
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Below is a chart showing AMZN's trailing twelve month trading history, with the $95 strike highlighted in orange: And Apple Inc (Symbol: AAPL) saw options trading volume of 812,455 contracts, representing approximately 81.2 million underlying shares or approximately 114.4% of AAPL's average daily trading volume over the past month, of 71.0 million shares. Especially high volume was seen for the $150 strike call option expiring December 16, 2022, with 47,775 contracts trading so far today, representing approximately 4.8 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $150 strike highlighted in orange: For the various different available expirations for AZO options, AMZN options, or AAPL options, visit StockOptionsChannel.com.
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18016.0
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2022-12-14 00:00:00 UTC
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US STOCKS-Wall Street rises as Fed's rate decision looms
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-rises-as-feds-rate-decision-looms
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nan
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nan
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By Ankika Biswas and Johann M Cherian
Dec 14 (Reuters) - Wall Street's main indexes rose on Wednesday ahead of the Federal Reserve's monetary policy decision and economic projections for clues on the path of interest rates.
The U.S. central bank is expected to raise its key rate by 50 basis points to 4.25-4.50% at its last meeting of 2022 after four straight 75 bps increases following a surprise drop in inflation.
The decision, scheduled for 2 p.m. ET, will be followed by Chair Jerome Powell's press conference.
Fed officials will also issue new projections showing just how close that endpoint of rates may be, with Tuesday's data showing cooling inflation data for November triggering bets across stock and bond markets it may be closer than expected.
"Markets are looking for what they've already discounted and that is a 50 basis point hike, but going forward the focus will be on the dot plot which may indicate the Fed's terminal rate," said Peter Cardillo, chief market economist at Spartan Capital Securities LLC in New York.
"If it's between 4% and 5%, well that's already priced in. If it's higher, that could be a little bit of a negative surprise."
Money market participants expect two more 25 basis-point hikes next year, taking the terminal rate to 4.82% by May. FEDWATCH
The U.S. central bank, in its battle against decades-high inflation, has raised its policy rate by 375 basis points so far this year to a 3.75%-4.00% range from near zero, the fastest pace of rate hikes since the 1980s.
Fears that aggressive interest rate increases by major central banks could tip the global economy into a recession have hammered risk assets such as equities this year.
The S&P 500 and the Nasdaq .IXIC have lost 15.2% and 27.6%, respectively, this year and are on track for their worst annual performance since the 2008 financial crisis.
The rate-sensitive S&P 500 real estate sector index .SPLRCR and growth index .IGX have posted double-digit drops this year.
At 12:08 p.m. ET, the Dow Jones Industrial Average .DJI was up 208.24 points, or 0.61%, at 34,316.88, the S&P 500 .SPX was up 22.32 points, or 0.56%, at 4,041.97, and the Nasdaq Composite .IXIC was up 61.82 points, or 0.55%, at 11,318.64.
All the 11 major S&P 500 sectors were in the green. Gains were led by defensive sectors, often preferred in times of economic uncertainty, such as healthcare .SPXHC, utilities .SPLRCU and industrials .SPLRCI.
Megacap growth stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O, Mastercard Inc MA.N and Qualcomm Inc QCOM.O gained between 1.1% and 1.7%.
Tesla Inc TSLA.O slipped 1.1% after a Goldman Sachs analyst trimmed the price target for the electric-vehicle maker's stock.
Charter Communications Inc CHTR.O slid 13.7% as brokerages cut their price targets following the telecom services firm's mega spending plans on higher-speed internet upgrade.
Pfizer Inc PFE.N gained 2.4% following an agreement with China Meheco Group Co Ltd 600056.SS to import and distribute the U.S.-based company's oral COVID-19 treatment Paxlovid in mainland China.
Advancing issues outnumbered decliners by a 1.89-to-1 ratio on the NYSE and 1.51-to-1 ratio on the Nasdaq.
The S&P index recorded five new 52-week highs and one new low, while the Nasdaq recorded 56 new highs and 136 new lows.
(Reporting by Shubham Batra, Ankika Biswas and Johann M Cherian in Bengaluru; Editing by Anil D'Silva and Sriraj Kalluvila)
((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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Megacap growth stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O, Mastercard Inc MA.N and Qualcomm Inc QCOM.O gained between 1.1% and 1.7%. By Ankika Biswas and Johann M Cherian Dec 14 (Reuters) - Wall Street's main indexes rose on Wednesday ahead of the Federal Reserve's monetary policy decision and economic projections for clues on the path of interest rates. Fears that aggressive interest rate increases by major central banks could tip the global economy into a recession have hammered risk assets such as equities this year.
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Megacap growth stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O, Mastercard Inc MA.N and Qualcomm Inc QCOM.O gained between 1.1% and 1.7%. The U.S. central bank is expected to raise its key rate by 50 basis points to 4.25-4.50% at its last meeting of 2022 after four straight 75 bps increases following a surprise drop in inflation. FEDWATCH The U.S. central bank, in its battle against decades-high inflation, has raised its policy rate by 375 basis points so far this year to a 3.75%-4.00% range from near zero, the fastest pace of rate hikes since the 1980s.
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Megacap growth stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O, Mastercard Inc MA.N and Qualcomm Inc QCOM.O gained between 1.1% and 1.7%. By Ankika Biswas and Johann M Cherian Dec 14 (Reuters) - Wall Street's main indexes rose on Wednesday ahead of the Federal Reserve's monetary policy decision and economic projections for clues on the path of interest rates. The U.S. central bank is expected to raise its key rate by 50 basis points to 4.25-4.50% at its last meeting of 2022 after four straight 75 bps increases following a surprise drop in inflation.
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Megacap growth stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O, Mastercard Inc MA.N and Qualcomm Inc QCOM.O gained between 1.1% and 1.7%. The U.S. central bank is expected to raise its key rate by 50 basis points to 4.25-4.50% at its last meeting of 2022 after four straight 75 bps increases following a surprise drop in inflation. FEDWATCH The U.S. central bank, in its battle against decades-high inflation, has raised its policy rate by 375 basis points so far this year to a 3.75%-4.00% range from near zero, the fastest pace of rate hikes since the 1980s.
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18017.0
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2022-12-14 00:00:00 UTC
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Paramount (PARA) Signs First-Look Deal With Damien Chazelle
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AAPL
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https://www.nasdaq.com/articles/paramount-para-signs-first-look-deal-with-damien-chazelle
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nan
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nan
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Paramount Global PARA owned Paramount Pictures recently announced that it has inked a multiyear, first-look directing and producing deal with Damien Chazelle and producing partner Olivia Hamilton’s Wild Chickens Productions.
The announcement comes just before the studio is set to release Babylon that Chazelle wrote and directed and Hamilton produced. Babylon opens worldwide on Dec 23 and recently earned five Golden Globe nominations, including a nod for best picture – musical or comedy. The cast includes Diego Calva, Brad Pitt and Margot Robbie.
Chazelle is known for the Oscar-winning movies La La Land and Whiplash. La La Land earned 14 Oscar nominations, winning six awards, including best director for Chazelle, making him the youngest director to receive the award. Olivia Hamilton is known for La La Land, Don't Worry, He Won't Get Far on Foot and First Man.
Paramount Global Price, Consensus and EPS Surprise
Paramount Global price-consensus-eps-surprise-chart | Paramount Global Quote
Subscription Growth Offsets Declining Ad Revenues
Paramount added 4.6 million subscribers to its Paramount Plus streaming service and Pluto TV added 2.4 million monthly active users (MAU) globally in the third quarter of fiscal 2022. This has bolstered affiliate and subscription revenues by 8% in the discussed quarter.
The company now expects to exceed its full year global direct to consumer subscriber growth expectation of 75 million global subscribers.
However, the company is experiencing sluggishness in ad revenues which came in at $2.33 billion, a decline of 2.1% year over year. CEO Robert Bakish hinted that advertising contribution to top line is expected to decline by a larger percentage sequentially.
Pluto TV announced expanding its global footprint in Canada through a partnership with Toronto-based Corus Entertainment earlier this month. In the third quarter 2022, Pluto TV maintained its lead as the #1 free ad-supported streaming tv service in the U.S. Pluto TV’s global MAUs increased to nearly 72 million. Pluto TV’s total global viewing hours grew by strong double-digits year over year.
The platform has gained immense popularity with more than 250 live events, linear channels and thousands of hours of on-demand content. Pluto TV partners with more than 175 content providers, including media houses, film and TV studios that help it produce various content.
However, Paramount is facing significant competition in the streaming market from Netflix NFLX, Disney DIS and Apple’s AAPL Apple TV+.
Since the launch of Apple TV+, several Apple original series and films have earned more than 240 awards and 950 nominations, including the acclaimed SAG Awards, Primetime Emmy Awards and Critics Choice Awards. These accolades are catching viewers’ attention and helping it to win market share from Netflix and Disney.
Both Netflix and Disney are set to launch their ad-tier subscriptions by the end of this year. These low-cost subscription plans are expected to further increase competition for Paramount.
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
Netflix, Inc. (NFLX) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
Paramount Global (PARA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, Paramount is facing significant competition in the streaming market from Netflix NFLX, Disney DIS and Apple’s AAPL Apple TV+. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Paramount Global (PARA) : Free Stock Analysis Report To read this article on Zacks.com click here. Babylon opens worldwide on Dec 23 and recently earned five Golden Globe nominations, including a nod for best picture – musical or comedy.
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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 Paramount Global (PARA) : Free Stock Analysis Report To read this article on Zacks.com click here. However, Paramount is facing significant competition in the streaming market from Netflix NFLX, Disney DIS and Apple’s AAPL Apple TV+. La La Land earned 14 Oscar nominations, winning six awards, including best director for Chazelle, making him the youngest director to receive the award.
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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 Paramount Global (PARA) : Free Stock Analysis Report To read this article on Zacks.com click here. However, Paramount is facing significant competition in the streaming market from Netflix NFLX, Disney DIS and Apple’s AAPL Apple TV+. La La Land earned 14 Oscar nominations, winning six awards, including best director for Chazelle, making him the youngest director to receive the award.
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However, Paramount is facing significant competition in the streaming market from Netflix NFLX, Disney DIS and Apple’s AAPL Apple TV+. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Paramount Global (PARA) : Free Stock Analysis Report To read this article on Zacks.com click here. La La Land earned 14 Oscar nominations, winning six awards, including best director for Chazelle, making him the youngest director to receive the award.
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18018.0
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2022-12-14 00:00:00 UTC
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Meta Platforms (META) Launches Latest Family of Apps Features
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AAPL
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https://www.nasdaq.com/articles/meta-platforms-meta-launches-latest-family-of-apps-features
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nan
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nan
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Meta Platforms META launched the latest features across its Family of Apps to boost user growth and drive prospects.
Revenues from Family of Apps (99% of total revenues) in the third quarter of 2022, which includes Facebook, Instagram, Messenger, WhatsApp and other services, decreased 3.6% year over year to $27.43 billion. The company expects revenues to decrease further in the coming quarter.
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 is facing the worst downturn in its operational history. Meta’s ad revenue business is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes.
Apple’s iOS changes have made ad targeting difficult, which has increased the cost of driving outcomes. Measuring these outcomes is tough. Meta expects these factors to hurt advertising growth in the fourth quarter of 2022.
Meta Platforms, Inc. Price and Consensus
Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote
All of these contributed to Meta’s falling share price in the year-to-date period. Its shares have tumbled 65.7% in the year-to-date period compared with the Zacks Internet – Software industry’s decline of 61.1%.
The U.S. economy is facing macroeconomic turmoil due to the rising inflation and recession triggered by interest rate hikes by the U.S. Federal Reserve.
Rising inflation has also compelled domestic and global customers to pull back on their purchases.
Consequently, the slowing economy is likely to trigger cuts in ad spending, which will impact the revenues of ad-driven internet stocks like Meta, impacting their bottom-line growth.
META’s financial plans to generate sufficient operating income from its Family of Apps business segment to fund growth of its Reality Labs, which is responsible for building the metaverse, have taken a major hit. The company has been recently closing various long-term projects, which are burning a lot of cash.
Amid such a situation, Meta has been investing heavily in AI and launching features across Instagram and Facebook to boost its user growth in its Family of Apps, and increase top-line growth to meet its future goals of creating the metaverse.
Meta Boosting User Growth by Investing in AI
In the Instagram app, Meta launched a feature called Notes to communicate with followers and friends. Notes are short posts that consist of short posts of up to 60 characters using just text and emojis. These will appear at the top of a user’s inbox for 24 hours.
Meta is also testing new ways to share stories on its Instagram platform, like adding your nominations, candid stories and working on something called group profiles that users can share with each other.
Meta Platforms recently utilized AI to introduce 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’s recent initiative to use AI to launch age verification in Facebook dating is likely to boost user confidence amid stiffening competition.
Meta Platforms recently launched avatars on WhatsApp. The company used AI to create a digital version of users with various features, which creates a way of connecting with users and would be a small preview of how it would feel to communicate with others in the alternate reality of the metaverse.
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 NVDA 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.
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
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Meta’s ad revenue business is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The U.S. economy is facing macroeconomic turmoil due to the rising inflation and recession triggered by interest rate hikes by the U.S. Federal Reserve.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Meta’s ad revenue business is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Amid such a situation, Meta has been investing heavily in AI and launching features across Instagram and Facebook to boost its user growth in its Family of Apps, and increase top-line growth to meet its future goals of creating the metaverse.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Meta’s 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 All of these contributed to Meta’s falling share price in the year-to-date period.
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Meta’s ad revenue business is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Meta Platforms META launched the latest features across its Family of Apps to boost user growth and drive prospects.
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18019.0
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2022-12-14 00:00:00 UTC
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Noteworthy ETF Inflows: DGRW, AAPL, MSFT, MCD
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AAPL
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https://www.nasdaq.com/articles/noteworthy-etf-inflows%3A-dgrw-aapl-msft-mcd
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the WisdomTree U.S. Quality Dividend Growth Fund (Symbol: DGRW) where we have detected an approximate $987.8 million dollar inflow -- that's a 12.9% increase week over week in outstanding units (from 121,800,000 to 137,500,000). Among the largest underlying components of DGRW, in trading today Apple Inc (Symbol: AAPL) is up about 0.4%, Microsoft Corporation (Symbol: MSFT) is up about 1.5%, and McDonald's Corp (Symbol: MCD) is up by about 0.7%. For a complete list of holdings, visit the DGRW Holdings page » The chart below shows the one year price performance of DGRW, versus its 200 day moving average:
Looking at the chart above, DGRW's low point in its 52 week range is $53.69 per share, with $66.50 as the 52 week high point — that compares with a last trade of $63.30. 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 DLIA
RNA Videos
Funds Holding YORW
The views and 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 DGRW, in trading today Apple Inc (Symbol: AAPL) is up about 0.4%, Microsoft Corporation (Symbol: MSFT) is up about 1.5%, and McDonald's Corp (Symbol: MCD) is up by about 0.7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the WisdomTree U.S. Quality Dividend Growth Fund (Symbol: DGRW) where we have detected an approximate $987.8 million dollar inflow -- that's a 12.9% increase week over week in outstanding units (from 121,800,000 to 137,500,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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Among the largest underlying components of DGRW, in trading today Apple Inc (Symbol: AAPL) is up about 0.4%, Microsoft Corporation (Symbol: MSFT) is up about 1.5%, and McDonald's Corp (Symbol: MCD) is up by about 0.7%. For a complete list of holdings, visit the DGRW Holdings page » The chart below shows the one year price performance of DGRW, versus its 200 day moving average: Looking at the chart above, DGRW's low point in its 52 week range is $53.69 per share, with $66.50 as the 52 week high point — that compares with a last trade of $63.30. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''.
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Among the largest underlying components of DGRW, in trading today Apple Inc (Symbol: AAPL) is up about 0.4%, Microsoft Corporation (Symbol: MSFT) is up about 1.5%, and McDonald's Corp (Symbol: MCD) is up by about 0.7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the WisdomTree U.S. Quality Dividend Growth Fund (Symbol: DGRW) where we have detected an approximate $987.8 million dollar inflow -- that's a 12.9% increase week over week in outstanding units (from 121,800,000 to 137,500,000). For a complete list of holdings, visit the DGRW Holdings page » The chart below shows the one year price performance of DGRW, versus its 200 day moving average: Looking at the chart above, DGRW's low point in its 52 week range is $53.69 per share, with $66.50 as the 52 week high point — that compares with a last trade of $63.30.
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Among the largest underlying components of DGRW, in trading today Apple Inc (Symbol: AAPL) is up about 0.4%, Microsoft Corporation (Symbol: MSFT) is up about 1.5%, and McDonald's Corp (Symbol: MCD) is up by about 0.7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the WisdomTree U.S. Quality Dividend Growth Fund (Symbol: DGRW) where we have detected an approximate $987.8 million dollar inflow -- that's a 12.9% increase week over week in outstanding units (from 121,800,000 to 137,500,000). For a complete list of holdings, visit the DGRW Holdings page » The chart below shows the one year price performance of DGRW, versus its 200 day moving average: Looking at the chart above, DGRW's low point in its 52 week range is $53.69 per share, with $66.50 as the 52 week high point — that compares with a last trade of $63.30.
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18020.0
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2022-12-14 00:00:00 UTC
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Forget the iPhone. Apple Stock Doesn't Need It.
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AAPL
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https://www.nasdaq.com/articles/forget-the-iphone.-apple-stock-doesnt-need-it.
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nan
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nan
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Similar to its big-tech counterparts, Apple (NASDAQ: AAPL) has faced its share of road bumps throughout 2022. There is no denying that the technology behemoth has created one of the most iconic brands in modern history. There is something unique about the company's sleek aesthetic that make its hardware easy to identify, and more importantly, desirable.
While the company recently reported record revenue during its Q4 fiscal year 2022earnings call it's important for investors to peel back the onion. As a direct-to-consumer business, Apple is not immune to the effects of inflation. Moreover, as a company that partners with suppliers globally and outsources some development overseas, Apple has also been forced to navigate around supply chain disruptions as well as the lingering effects of COVID-19 in some geographic areas.
Let's take a deep dive into Apple's entire business and learn why the company and stock are so resilient despite some near-term headwinds.
Demand for iPhone 14 is cloudy, but that's OK
Generally speaking, when goods and services become more expensive, consumers will act with more caution about how they spend their money. Although inflation is certainly trending in the right direction, there is a long, arduous road ahead before consumers may feel comfortable stretching their budgets. During times of prolonged economic uncertainty, people may delay luxury purchases.
For example, while getting a new car may be something you want, your current vehicle is still perfectly capable of transporting you from one point to another safely. Moreover, while your end-of-the year bonus may have been more than you anticipated, perhaps you do not need to splurge on a new watch. After all, your current watch still tells the time. This same paradigm can be applied to Apple and its good and services.
Apple is famous for its innovative product lineup, which includes the iPod, iPad, and Apple Watch. However, perhaps the company's most popular device is the iPhone. Since its inception in 2007, Apple has continued to release new and improved versions of the phone nearly every year. And, in most cases, consumers will line up outside of Apple retail stores days before a release just to secure the latest hardware. However, the company's latest installment, the iPhone 14, has been a mixed bag.
Apple CEO Tim Cook said during theearnings call "In terms of the new products, the 14 and the 14 Pro and Pro Max, it's still very early. But since the beginning, we've been constrained on the 14 Pro and the 14 Pro Max and we continue to be constrained today."
There are a multitude of reasons for these constraints. Apple outsources some iPhone development to factories in China, but due to the lingering effects of COVID-19 and subsequent lockdowns, production facilities have been challenged. Additionally, given concerns around inflation and a potential recession in 2023, consumers are weighing the necessity of a phone upgrade that could cost north of $1,000. While demand for the iPhone 14 remains a bit cloudy, there are still plenty of reasons to be bullish on Apple stock.
Beyond the iPhone
In addition to new iterations of the iPhone, Apple has also invested heavily into new growth areas such as streaming. Although streaming has long been dominated by Netflix, there are a host of competitors on the rise including Disney and Apple.
Apple currently does not break out the size of its streaming division, Apple TV+, in terms of revenue or number of subscribers. However, some on Wall Street believe that Apple TV+ produces roughly $1 billion to $2 billion in annual revenue. While this is purely an estimate, one can safely assume that Apple TV+ contributes a trivial amount to the company's overall picture. This is actually a positive for Apple.
For reference, Netflix generated about $30 billion in total revenue in 2021. Given Apple's proven ability to create products and services that consumers will pay a premium for, coupled with its staggering $24 billion of cash on hand, the company is in a solid position to potentially create its next growth engine in the form of streaming, which could yield tens of billions of dollars in sales.
In addition to streaming, Apple is doing its best to sidestep supply chain hiccups and shutdowns in its overseas manufacturing facilities. Apple's largest chip manufacturer, Taiwan Semiconductor Manufacturing, recently announced that it will spend tens of billions of dollars building two new chip facilities in Arizona. Given Apple's heavy reliance on Taiwan Semiconductor as a key supplier, shifting labor from overseas to U.S. operations should help the company navigate some of the supply chain nuances it's had to bear over the course of this year. In essence, by moving manufacturing to Arizona, Apple should be able to better keep up with demand trends for its hardware.
Image source: Getty Images.
Keep an eye on valuation
At the time of this writing, Apple carries a market capitalization of $2.3 trillion and trades at 23 times its trailing 12-month earnings. The long-run average of the S&P 500 is around 15 to 16 times price to earnings.
Despite this premium, investors should keep a few financial metrics in mind. For starters, per the earnings transcript, Apple increased its free cash flow by 20% year over year to $111 billion. That is absolutely staggering. Think of it this way: Even during times of economic uncertainty, fear of recession, and high inflation, Apple is still growing its cash flow by double-digits.
If that weren't enough to encourage you, Apple's board of directors also recently paid a cash dividend of $0.23 per share. So again, even when most other companies are tightening budgets, Apple is finding a way to reward its shareholders.
At the end of the day, Apple stock has always been resilient. The company has been around for decades and has weathered many storms. Despite its lofty valuation, long-term investors should be excited to buy more Apple stock and witness the company continue to grow and innovate.
10 stocks we like better than Apple
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of December 1, 2022
Adam Spatacco has positions in Apple. The Motley Fool has positions in and recommends Apple, Netflix, Taiwan Semiconductor Manufacturing, 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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Similar to its big-tech counterparts, Apple (NASDAQ: AAPL) has faced its share of road bumps throughout 2022. Moreover, as a company that partners with suppliers globally and outsources some development overseas, Apple has also been forced to navigate around supply chain disruptions as well as the lingering effects of COVID-19 in some geographic areas. Apple outsources some iPhone development to factories in China, but due to the lingering effects of COVID-19 and subsequent lockdowns, production facilities have been challenged.
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Similar to its big-tech counterparts, Apple (NASDAQ: AAPL) has faced its share of road bumps throughout 2022. Apple's largest chip manufacturer, Taiwan Semiconductor Manufacturing, recently announced that it will spend tens of billions of dollars building two new chip facilities in Arizona. The Motley Fool has positions in and recommends Apple, Netflix, Taiwan Semiconductor Manufacturing, and Walt Disney.
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Similar to its big-tech counterparts, Apple (NASDAQ: AAPL) has faced its share of road bumps throughout 2022. Apple is famous for its innovative product lineup, which includes the iPod, iPad, and Apple Watch. Given Apple's proven ability to create products and services that consumers will pay a premium for, coupled with its staggering $24 billion of cash on hand, the company is in a solid position to potentially create its next growth engine in the form of streaming, which could yield tens of billions of dollars in sales.
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Similar to its big-tech counterparts, Apple (NASDAQ: AAPL) has faced its share of road bumps throughout 2022. Given Apple's proven ability to create products and services that consumers will pay a premium for, coupled with its staggering $24 billion of cash on hand, the company is in a solid position to potentially create its next growth engine in the form of streaming, which could yield tens of billions of dollars in sales. * 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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18021.0
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2022-12-14 00:00:00 UTC
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Apple Stock: Buy, Sell, or Hold in 2023?
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AAPL
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https://www.nasdaq.com/articles/apple-stock%3A-buy-sell-or-hold-in-2023
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nan
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nan
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The largest company in the world by market cap is Apple (NASDAQ: AAPL). It has commanding power over the major indexes, too, making up 6.58% of the S&P 500 and 12.97% of the Nasdaq-100.
Apple is currently underperforming the S&P 500 in 2022, as it is down 20% this year versus the S&P 500's 16%. However, it has helped save the Nasdaq-100 from even more pain, as that index is down 29% this year.
But will Apple continue to bolster the Nasdaq-100? Or will it run out of steam in 2023? Let's find out.
Will consumers stay strong enough to support Apple?
In the U.S., the latest Apple products are everywhere. But these products aren't cheap, which makes many investors wonder how Apple will fare during a recession. We shouldn't regard the COVID-19-induced recession as a useful precedent, because in that situation, many consumers needed to obtain the latest tech gadgets to stay connected to their classmates, coworkers, and friends. Because of this, you have to go back a bit further in time to find Apple's last challenge.
The last real test for Apple was the Great Recession of 2008 and 2009 when the iPhone 3 was current, and the business wasn't even close to what it is today.
It's unclear if the consumer is weakening right now. Black Friday spending reached a new high of $9.12 billion, indicating the consumer is stronger than ever. However, U.S. credit card debt has reached a new all-time high of $930 billion, showing people may be spending money they don't have.
So if the consumer is in a neutral state, will people buy the latest Apple tech? I think they still will, but with Apple's revenue growth slowing, the demand for Apple products may be decreasing.
Revenue growth is disappearing
For how strong a stock Apple has been, you might have expected better revenue growth numbers than it's posting.
QUARTER REVENUE REVENUE GROWTH YOY
Q1 FY2022 $123,945 Billion 11.2%
Q2 FY2022 $97,278 Billion 8.6%
Q3 FY2022 $82,959 Billion 1.9%
Q4 FY2022 $90,146 Billion 8.1%
Source: Macrotrends. YOY = year over year. FY = fiscal year. Apple's fiscal year ended on September 24, 2022.
That's less than market-average growth, and rising operating expenses have harmed the company even more on the earnings side. In Q4, Apple's operating expenses were up 16% versus revenue growth of 8%, which caused its earnings per share to rise only 3% YOY.
One thing to consider is how hard it is to control expenses and grow revenue when you generate nearly $400 billion in annual revenue.
This might be one thing investors aren't considering, and future growth may be hard for Apple to come by simply because there aren't enough consumers to use its products. While international expansion is possible, the Android operating system already has a 72% market share worldwide. Plus, Apple's products aren't cheap, and many countries can't afford them.
Additionally, Apple's stock has a premium valuation that indicates it should be growing faster than it is.
AAPL PE Ratio data by YCharts
Much of this valuation optimism came from Apple's desire to transform its business into a service-based one, but with the services division growing revenue at a pace of only 5% (less than that of the company as a whole), this may be a pipe dream. With Apple's business growth trending to flat and the stock's premium valuation one of these will likely have to give.
Additionally, with the news that Apple will shift its chip production to the U.S. starting in 2024, Apple's components could see higher prices due to sourcing within the U.S., but it would gain better control over its supply chain.
Investors may have become too complacent about Apple's stock, as it has been one of the best-executing companies over the past decade. However, as growth slows and expenses rise, the stock may have trouble, especially with its premium valuation.
Is Apple stock a sell? I don't think so; its execution has spoken for itself. But I don't think it's a buy, either; its valuation will need to be reduced to a normal level, or the business must return to market-beating or even matching growth. As a result, I think Apple stock is a hold for 2023, as there are much better values out there.
10 stocks we like better than Apple
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of December 1, 2022
Keithen Drury 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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AAPL PE Ratio data by YCharts Much of this valuation optimism came from Apple's desire to transform its business into a service-based one, but with the services division growing revenue at a pace of only 5% (less than that of the company as a whole), this may be a pipe dream. The largest company in the world by market cap is Apple (NASDAQ: AAPL). We shouldn't regard the COVID-19-induced recession as a useful precedent, because in that situation, many consumers needed to obtain the latest tech gadgets to stay connected to their classmates, coworkers, and friends.
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The largest company in the world by market cap is Apple (NASDAQ: AAPL). AAPL PE Ratio data by YCharts Much of this valuation optimism came from Apple's desire to transform its business into a service-based one, but with the services division growing revenue at a pace of only 5% (less than that of the company as a whole), this may be a pipe dream. So if the consumer is in a neutral state, will people buy the latest Apple tech?
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The largest company in the world by market cap is Apple (NASDAQ: AAPL). AAPL PE Ratio data by YCharts Much of this valuation optimism came from Apple's desire to transform its business into a service-based one, but with the services division growing revenue at a pace of only 5% (less than that of the company as a whole), this may be a pipe dream. I think they still will, but with Apple's revenue growth slowing, the demand for Apple products may be decreasing.
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The largest company in the world by market cap is Apple (NASDAQ: AAPL). AAPL PE Ratio data by YCharts Much of this valuation optimism came from Apple's desire to transform its business into a service-based one, but with the services division growing revenue at a pace of only 5% (less than that of the company as a whole), this may be a pipe dream. But these products aren't cheap, which makes many investors wonder how Apple will fare during a recession.
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18022.0
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2022-12-14 00:00:00 UTC
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If Warren Buffett Could Tell You 1 Investment to Make, This Would Probably Be It
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AAPL
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https://www.nasdaq.com/articles/if-warren-buffett-could-tell-you-1-investment-to-make-this-would-probably-be-it
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nan
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nan
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Earlier this year, an anonymous bidder at a charity auction paid $19 million to have lunch with Warren Buffett. I have no doubt that the mealtime conversation was interesting.
Most people will never get the chance to have a face-to-face talk with Buffett. However, you don't have to sit down with the Oracle of Omaha to benefit from his investing advice. If Buffett could tell you one investment to make, this would probably be it.
Not the obvious answer
You might think that Buffett would recommend Berkshire Hathaway as the one investment to make. After all, most of Buffett's personal wealth is in the stock of the giant conglomerate.
Berkshire has been Buffett's favorite stock to buy in recent years. Since 2016, he's led Berkshire to repurchase $63 billion of its shares. That means that Buffett has bought $9 billion more of the stock than he has of Apple and Chevron combined.
Buffett also still serves as chairman and CEO of Berkshire. Those roles make him a cheerleader of sorts for the company. It would make sense if he advised others to invest in Berkshire.
Despite all of this, though, Berkshire probably isn't the one investment that Buffett would tell you to make right now. Instead, he'd almost certainly recommend buying the Vanguard 500 Index Fund ETF (NYSEMKT: VOO).
Behind Buffett's thinking
You only have to look to Buffett's 2013 letter to Berkshire Hathaway shareholders to gain insight into why he'd likely recommend the Vanguard 500 Index Fund ETF. He wrote back then that most investors don't know enough about the earnings power of specific businesses. Because of this, they shouldn't invest in specific stocks.
However, Buffett added that investors don't need such expertise. They don't have to pick individual winners. Instead, they can invest in a cross-section of businesses via a low-cost S&P 500 index fund.
Buffett revealed that his will instructs that 90% of the cash his family receives upon his death be invested in a low-cost S&P 500 fund. (He advised that the other 10% be put in short-term government bonds.) The investing icon even made a specific suggestion to his estate's trustee: Buy a Vanguard fund.
Berkshire's portfolio includes two S&P 500 index funds: Vanguard 500 Index Fund ETF and SPDR S&P 500 ETF Trust. But Vanguard's expense ratio of 0.01% is well below the SDPR ETF's expense ratio of 0.09%. You won't find a lower-cost S&P 500 index fund than VOO.
A good bet
Buffett knows that most investors don't beat the S&P 500's performance. He even made a $1 million bet years ago that a top hedge fund manager couldn't outperform a Vanguard index fund. Buffett won the bet, with his winnings going to charity.
Investing in a fund like VOO should pay off over the long run. It certainly has done so in the past. Since its inception in 2010, the ETF has delivered an average annual return of over 13.5%. The S&P 500 itself has risen by an average of close to 10% during its lifetime.
What would Buffett recommend to investors who are willing to do the research required to evaluate individual businesses? Probably Berkshire Hathaway. The stock has handily beaten the S&P 500 since Buffett gained control of Berkshire back in 1965. Berkshire is also similar to an index fund in that it's well diversified across multiple industries.
But without knowing your background, Buffett would almost certainly advise investing in an S&P 500 index fund like VOO. He understands that it's a good long-term bet for most people.
10 stocks we like better than Vanguard Index Funds-Vanguard S&p 500 ETF
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Keith Speights has positions in Apple, Berkshire Hathaway, and Vanguard Index Funds-Vanguard S&p 500 ETF. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Vanguard Index Funds-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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Earlier this year, an anonymous bidder at a charity auction paid $19 million to have lunch with Warren Buffett. The investing icon even made a specific suggestion to his estate's trustee: Buy a Vanguard fund. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Vanguard Index Funds-Vanguard S&p 500 ETF.
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Berkshire's portfolio includes two S&P 500 index funds: Vanguard 500 Index Fund ETF and SPDR S&P 500 ETF Trust. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Vanguard Index Funds-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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Behind Buffett's thinking You only have to look to Buffett's 2013 letter to Berkshire Hathaway shareholders to gain insight into why he'd likely recommend the Vanguard 500 Index Fund ETF. Berkshire's portfolio includes two S&P 500 index funds: Vanguard 500 Index Fund ETF and SPDR S&P 500 ETF Trust. 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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Despite all of this, though, Berkshire probably isn't the one investment that Buffett would tell you to make right now. Because of this, they shouldn't invest in specific stocks. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Keith Speights has positions in Apple, Berkshire Hathaway, and Vanguard Index Funds-Vanguard S&p 500 ETF.
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18023.0
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2022-12-14 00:00:00 UTC
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December 2023 Options Now Available For Apple
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AAPL
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https://www.nasdaq.com/articles/december-2023-options-now-available-for-apple
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nan
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nan
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Investors in Apple Inc (Symbol: AAPL) saw new options begin trading today, for the December 2023 expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 366 days until expiration the newly trading contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAPL options chain for the new December 2023 contracts and identified one put and one call contract of particular interest.
The put contract at the $140.00 strike price has a current bid of $13.80. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $140.00, but will also collect the premium, putting the cost basis of the shares at $126.20 (before broker commissions). To an investor already interested in purchasing shares of AAPL, that could represent an attractive alternative to paying $145.92/share today.
Because the $140.00 strike represents an approximate 4% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 9.86% return on the cash commitment, or 9.83% 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 $140.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $155.00 strike price has a current bid of $17.35. If an investor was to purchase shares of AAPL stock at the current price level of $145.92/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $155.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 18.11% if the stock gets called away at the December 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 $155.00 strike highlighted in red:
Considering the fact that the $155.00 strike represents an approximate 6% 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 11.89% boost of extra return to the investor, or 11.86% 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 $145.92) 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 10 Hedge Funds Holding Molson Coors Beverage
DOV DMA
SJNK 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 $155.00 strike highlighted in red: Considering the fact that the $155.00 strike represents an approximate 6% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Apple Inc (Symbol: AAPL) saw new options begin trading today, for the December 2023 expiration.
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Below is a chart showing AAPL's trailing twelve month trading history, with the $155.00 strike highlighted in red: Considering the fact that the $155.00 strike represents an approximate 6% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Investors in Apple Inc (Symbol: AAPL) saw new options begin trading today, for the December 2023 expiration.
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Below is a chart showing AAPL's trailing twelve month trading history, with the $155.00 strike highlighted in red: Considering the fact that the $155.00 strike represents an approximate 6% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Apple Inc (Symbol: AAPL) saw new options begin trading today, for the December 2023 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAPL options chain for the new December 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 December 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 $155.00 strike highlighted in red: Considering the fact that the $155.00 strike represents an approximate 6% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Apple Inc (Symbol: AAPL) saw new options begin trading today, for the December 2023 expiration.
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18024.0
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2022-12-13 00:00:00 UTC
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After Hours Most Active for Dec 13, 2022 : INTC, DIS, AMZN, AAPL, T, VZ, MSFT, HBAN, V, GOOGL, NIO, BEKE
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-dec-13-2022-%3A-intc-dis-amzn-aapl-t-vz-msft-hban-v-googl-nio
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -5.33 to 11,828.88. The total After hours volume is currently 167,541,844 shares traded.
The following are the most active stocks for the after hours session:
Intel Corporation (INTC) is unchanged at $28.73, with 8,045,958 shares traded. INTC's current last sale is 95.77% of the target price of $30.
Walt Disney Company (The) (DIS) is unchanged at $94.70, with 6,567,501 shares traded. As reported by Zacks, the current mean recommendation for DIS is in the "buy range".
Amazon.com, Inc. (AMZN) is unchanged at $92.49, with 5,464,912 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Apple Inc. (AAPL) is unchanged at $145.47, with 5,404,084 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
AT&T Inc. (T) is -0.01 at $19.11, with 5,064,573 shares traded. T's current last sale is 84% of the target price of $22.75.
Verizon Communications Inc. (VZ) is unchanged at $37.86, with 4,827,699 shares traded. VZ's current last sale is 75.72% of the target price of $50.
Microsoft Corporation (MSFT) is unchanged at $256.92, with 4,442,117 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Huntington Bancshares Incorporated (HBAN) is +0.02 at $14.23, with 3,910,414 shares traded. HBAN's current last sale is 91.81% of the target price of $15.5.
Visa Inc. (V) is unchanged at $213.04, with 3,853,339 shares traded. As reported by Zacks, the current mean recommendation for V is in the "buy range".
Alphabet Inc. (GOOGL) is -0.12 at $95.51, with 3,771,241 shares traded. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
NIO Inc. (NIO) is +0.03 at $12.34, with 3,691,025 shares traded. As reported by Zacks, the current mean recommendation for NIO is in the "buy range".
KE Holdings Inc (BEKE) is unchanged at $14.62, with 3,290,915 shares traded. As reported by Zacks, the current mean recommendation for BEKE 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 unchanged at $145.47, with 5,404,084 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Walt Disney Company (The) (DIS) is unchanged at $94.70, with 6,567,501 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 unchanged at $145.47, with 5,404,084 shares traded. As reported by Zacks, the current mean recommendation for DIS is in the "buy range".
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Apple Inc. (AAPL) is unchanged at $145.47, with 5,404,084 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 unchanged at $145.47, with 5,404,084 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 -5.33 to 11,828.88.
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18025.0
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2022-12-13 00:00:00 UTC
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Apple prepares to allow alternative app stores on iPhones, iPads - Bloomberg News
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AAPL
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https://www.nasdaq.com/articles/apple-prepares-to-allow-alternative-app-stores-on-iphones-ipads-bloomberg-news-0
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nan
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nan
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Dec 13 (Reuters) - Apple Inc AAPL.O is preparing to allow alternative app stores on its iPhones and iPads, Bloomberg News reported on Tuesday, citing sources familiar with the matter.
Apple did not immediately respond to a Reuters request for comment.
(Reporting by Eva Mathews in Bengaluru; Editing by Shounak Dasgupta)
((Eva.Mathews@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 13 (Reuters) - Apple Inc AAPL.O is preparing to allow alternative app stores on its iPhones and iPads, Bloomberg News reported on Tuesday, citing sources familiar with the matter. Apple did not immediately respond to a Reuters request for comment. (Reporting by Eva Mathews in Bengaluru; Editing by Shounak Dasgupta) ((Eva.Mathews@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 13 (Reuters) - Apple Inc AAPL.O is preparing to allow alternative app stores on its iPhones and iPads, Bloomberg News reported on Tuesday, citing sources familiar with the matter. Apple did not immediately respond to a Reuters request for comment. (Reporting by Eva Mathews in Bengaluru; Editing by Shounak Dasgupta) ((Eva.Mathews@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 13 (Reuters) - Apple Inc AAPL.O is preparing to allow alternative app stores on its iPhones and iPads, Bloomberg News reported on Tuesday, citing sources familiar with the matter. Apple did not immediately respond to a Reuters request for comment. (Reporting by Eva Mathews in Bengaluru; Editing by Shounak Dasgupta) ((Eva.Mathews@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 13 (Reuters) - Apple Inc AAPL.O is preparing to allow alternative app stores on its iPhones and iPads, Bloomberg News reported on Tuesday, citing sources familiar with the matter. Apple did not immediately respond to a Reuters request for comment. (Reporting by Eva Mathews in Bengaluru; Editing by Shounak Dasgupta) ((Eva.Mathews@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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18026.0
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2022-12-13 00:00:00 UTC
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Why Investors Cranked Spotify Stock Higher Today
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AAPL
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https://www.nasdaq.com/articles/why-investors-cranked-spotify-stock-higher-today
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nan
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nan
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What happened
A report indicated that the companies behind popular mobile apps helped push Spotify (NYSE: SPOT) stock higher on Tuesday. The share price of the music service operator, whose app is enduringly popular on mobile platforms, rose by 1.5% on the day, more than double the percentage rate gain of the S&P 500 index.
So what
In an article published this mid-afternoon and updated shortly before market close, Bloomberg wrote that Apple (NASDAQ: AAPL) is gearing up to allow third-party app stores on its devices. Citing "people familiar with the matter," the news agency said this is being done as part of a wider effort by Apple to comply with upcoming changes in the European Union's Digital Markets Act.
Currently, Apple has a tight grip on its App Store. It is the only company-authorized channel through which iPhone and iPad users can buy and download apps. Third-party developers have complained vociferously at times about this, with some characterizing it as a monopolistic practice. The tech giant has also come under fire for charging a standard, rather hefty 30% fee for every sale effected through the platform.
If enacted, Apple's change would undoubtedly affect some of the top outside app developers, with Spotify being one of them. This is compounded by the fact that the highest proportion (33%) of the Sweden-headquartered company's monthly average users are based on the continent.
Now what
Europe is also a crucial market for Apple, so it's important to keep regulators there sweet. In the company's last fiscal year, it generated $95 billion from the continent's consumers, which comprised nearly one-quarter of the total. It also made the region the second-most significant for Apple, next to the U.S. in terms of sales.
10 stocks we like better than Spotify Technology
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 Spotify Technology wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 1, 2022
Eric Volkman has positions in Apple. The Motley Fool has positions in and recommends Apple and Spotify Technology. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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So what In an article published this mid-afternoon and updated shortly before market close, Bloomberg wrote that Apple (NASDAQ: AAPL) is gearing up to allow third-party app stores on its devices. The share price of the music service operator, whose app is enduringly popular on mobile platforms, rose by 1.5% on the day, more than double the percentage rate gain of the S&P 500 index. Citing "people familiar with the matter," the news agency said this is being done as part of a wider effort by Apple to comply with upcoming changes in the European Union's Digital Markets Act.
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So what In an article published this mid-afternoon and updated shortly before market close, Bloomberg wrote that Apple (NASDAQ: AAPL) is gearing up to allow third-party app stores on its devices. What happened A report indicated that the companies behind popular mobile apps helped push Spotify (NYSE: SPOT) stock higher on Tuesday. The Motley Fool has positions in and recommends Apple and Spotify Technology.
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So what In an article published this mid-afternoon and updated shortly before market close, Bloomberg wrote that Apple (NASDAQ: AAPL) is gearing up to allow third-party app stores on its devices. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Eric Volkman has positions in Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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So what In an article published this mid-afternoon and updated shortly before market close, Bloomberg wrote that Apple (NASDAQ: AAPL) is gearing up to allow third-party app stores on its devices. What happened A report indicated that the companies behind popular mobile apps helped push Spotify (NYSE: SPOT) stock higher on Tuesday. That's right -- they think these 10 stocks are even better buys.
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18027.0
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2022-12-13 00:00:00 UTC
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Very Rare: 2 Leaders Near Long Term Buy Zone
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AAPL
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https://www.nasdaq.com/articles/very-rare%3A-2-leaders-near-long-term-buy-zone
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nan
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nan
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Year after year, the U.S. stock market offers up the opportunity to invest in some of the most innovative companies in the world. Over the past 10 years, for example, many widely known stocks have doubled, tripled, or sometimes quadrupled in price or more. Stocks such as Apple Inc AAPL, Nvidia Corp NVDA, Monster Beverage Corp (MNST), and Alphabet GOOGL have achieved multi-bag returns, as have many others. While the companies were already well known before their price advances, most investors missed the meat of the moves or lost money.
With ample chances to cash in, why do so many speculators fail to capture these tremendous price advances? The simple answer is emotions, lack of discipline, and absence of a process or parameters. Since money at risk tends to ratchet up emotions, speculators tend to do the opposite of what they should do in key situations. In other words, investors tend to get excited when the price of a stock is extended, leading to chasing, getting stopped out of the position, or holding onto an underwater position for too long. On the contrary, when a stock gets sold off into an attractive area, most tend to capitulate underwater positions or not purchase shares at all out of fear. Because most investors lack a proper game plan, they tend to throw the proverbial dart at stocks based on intuition. The problem with this method is that the market is the master manipulator and punishes arbitrary decisions.
What is the solution?
The solution to this issue is to devise a game plan that fits your personal investment framework (risk appetite, style, etc.) and is rooted in historical precedent. Today, we will discuss a simple indicator that has worked for 10 years running on the stocks mentioned above, the 200-week moving average.
Image Source: Zacks Investment Research
Pictured: The 200-week has contained the last 10 years of price action in the QQQ ETF.
200-Week Moving Average: A Long-Term Indicator
The 200-week moving average is where strong stocks and indexes tend to get scooped up by long-term investors looking for a discount. Because the indicator is long-term in nature, the market leaders tend to visit the area rarely. For instance, looking at the Nasdaq 100 ETF QQQ example above, you can see that the ETF has neared the 200-day line a mere 3 times: the brutal end-of-year pullback of 2018, the coronavirus crash of 2020, and during this year’s inflation induced bear market.
As you will see in the coming examples, the 200-week moving average can be a powerful tool to assist investors in deploying long-term investments. Regardless, investors should:
· Understand that, like any indicator, the 200-week ma is not a panacea. Instead, the indicator is a potential area to size up risk-reward for the long term.
· Stick to true market leaders. Meaning stocks that have rising consensus estimates, are the leader in their industry and have ample liquidity. Combining these fundamental factors with technical indicators can give investors better risk/reward situations.
· Implement a risk protocol. Like any investment, 200-week situations should involve risk practices and an “uncle point” if proven wrong. Since stocks that are testing their 200-week moving averages tend to be volatile, one method that can be implemented is to downsize position size while widening the stop loss zone and pyramiding into the stock as it starts to move higher. By leaving a risk cushion, investors put themselves in a position of strength.
· Realize that time is a critical component: Touches of the moving average should be rare and spread apart by months or years. Truly solid stocks rarely test the 200-week level.
The following examples include 10-year charts that are overlayed with Zack’s EPS Surprise data.
Apple AAPL
Image Source: Zacks Investment Research
Apple is a prime example of using the 200-week moving average to take advantage of a pullback in a fundamentally sound stock. The company is the undisputed leader in its industry and is a liquid institutional favorite. Notice how the company surprised to the upside on nearly every quarterly report over 10 years!
Nvidia (NVDA)
Image Source: Zacks Investment Research
Like Apple, Nvidia is the clear leader in its industry. While the stock was a super performer over the past decade, it rewarded patient long-term investors by pulling into the 200-week moving average.
Monster Beverage MNST
Image Source: Zacks Investment Research
Monster Beverage is proof that non-tech stocks can reward long-term investors in these zones. Though earnings surprise results were spotty compared to the other examples, Monster’s exceptional growth and stronghold in the beverage industry garnered investor interest during corrections.
Current Examples:
Alphabet (GOOGL)
Image Source: Zacks Investment Research
In the 2000’s Google became such a leader in the search industry that the company’s name is synonymous with and used to describe the practice of searching. During the pandemic catastrophe of 2020, Google provided prepared investors with a gift – the stock pulled into its 200-week moving average for the first time in years (nearly to the penny) and marched higher for the next year, tripling in price. Currently, the stock is trying to find support at the 200-week again. Ideally, Zack’s Consensus Estimates begin to increase in the coming weeks as the stock gets support. Presently, GOOGL holds a poor Zacks Rating of 4.
Tesla TSLA
Image Source: Zacks Investment Research
It isn’t easy to imagine the electric-vehicle industry without Tesla. Tesla successfully brought EVs to the mainstream and catapulted Elon Musk to be the wealthiest person on the planet. Though every major global automaker is entering the EV industry, Tesla remains well ahead. Last quarter, EPS grew at a 69% clip while revenue soared 56%. Recently, investors have soured on the stock since Musk turned his attention to Twitter, the macroeconomic picture worsened, and product delays have plagued plans recently.
Nevertheless, potential catalysts are plentiful. Two significant catalysts are the Cybertruck and the Semi. The much-anticipated Cybertruck is slated to enter mass production in 2023. Tesla also plans to roll out production of its Semi truck for commercial use in the coming months and has already secured purchase orders from Walmart WMT, PepsiCo PEP, FedEx FDX, and others.
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.
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Apple Inc. (AAPL) : Free Stock Analysis Report
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks such as Apple Inc AAPL, Nvidia Corp NVDA, Monster Beverage Corp (MNST), and Alphabet GOOGL have achieved multi-bag returns, as have many others. Apple AAPL Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : Free Stock Analysis Report FedEx Corporation (FDX) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Monster Beverage Corporation (MNST) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks such as Apple Inc AAPL, Nvidia Corp NVDA, Monster Beverage Corp (MNST), and Alphabet GOOGL have achieved multi-bag returns, as have many others. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : Free Stock Analysis Report FedEx Corporation (FDX) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Monster Beverage Corporation (MNST) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : Free Stock Analysis Report FedEx Corporation (FDX) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Monster Beverage Corporation (MNST) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks such as Apple Inc AAPL, Nvidia Corp NVDA, Monster Beverage Corp (MNST), and Alphabet GOOGL have achieved multi-bag returns, as have many others. Apple AAPL
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Stocks such as Apple Inc AAPL, Nvidia Corp NVDA, Monster Beverage Corp (MNST), and Alphabet GOOGL have achieved multi-bag returns, as have many others. Apple AAPL Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : Free Stock Analysis Report FedEx Corporation (FDX) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Monster Beverage Corporation (MNST) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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18028.0
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2022-12-13 00:00:00 UTC
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Why Apple, Amazon, Alphabet, and Other FAANG Stocks Rallied on Tuesday
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AAPL
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https://www.nasdaq.com/articles/why-apple-amazon-alphabet-and-other-faang-stocks-rallied-on-tuesday
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nan
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nan
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What happened
Wall Street kicked the day with a broad-based rally on Tuesday. This helped many stocks gain ground, propelled higher by the updraft of the broader market indexes.
Technology stocks have been mauled by the bear market over the past year, but investors got a glimmer of hope today that the economy may finally be on the mend. The latest read on inflation gave investors a much-needed boost of confidence, which helped fuel the rally.
As a result, the well-known FAANG stocks all rallied this morning. As of 11:10 a.m. ET:
Facebook parent Meta Platforms (NASDAQ: META) surged 4.9%,
Apple (NASDAQ: AAPL) rose 2%,
Amazon (NASDAQ: AMZN) climbed 3.1%,
Netflix (NASDAQ: NFLX) jumped 4.3%, and
Google parent Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) rallied 4.4%.
Image source: Getty Images.
A review of all the usual sources -- regulatory filings, changes to analysts' estimates, and earnings reports -- revealed nothing in the way of company-specific news to explain why the FAANG stocks were higher, suggesting they were simply reacting to the improving read on the economy.
So what
The U.S. Bureau of Labor Statistics released its monthly report on inflation, and the data helped investors and consumers alike breathe a sigh of relief. The Consumer Price Index (CPI), the most widely followed gauge used to measure inflation, rose 7.1% year over year in November, while edging just 0.1% higher sequentially on a seasonally adjusted basis.
While that would not normally be a cause for celebration, these are extraordinary times. The rate was down from a reading of 7.7% in October, and also better than the 7.3% predicted by economists. The "core" data, which excludes highly volatile food and energy prices, climbed 6% since this time last year -- still high by historical standards -- but also lower than economists' predictions of 6.1%. This also marked the lowest read on inflation since December of last year.
While the overall numbers were better, there were also signs that challenges remain. The year-over year increases were driven by higher food and energy prices, which rose 10.6% and 13.1%, respectively.
A declining read on inflation is important for a couple of reasons. The most obvious is that the cost of living has been historically high, causing consumers to make difficult choices on everything from groceries to fuel. Perhaps as important to market watchers is the potential impact the softening inflation will have on the Federal Reserve Bank and its continuing campaign of rising interest rates.
In order to rein in inflation, the Federal Reserve Bank increases interest rates, which makes borrowing more expensive. This generally results in consumers and businesses spending less. This, in turn, lowers demand, causing prices of everyday essentials to fall.
In short, the Fed's campaign of rising interest rates is working to bring about lower prices. The economy is a complex mechanism, however, and if it cools too quickly, it could cause a recession. So the central bank is walking a very fine line indeed.
Now what
While optimism is currently sweeping Wall Street, we're just one negative economic report away from stocks resuming their downward trend. Furthermore, even with minor improvements in the broader economic picture, challenges remain for our technology denizens, including:
Companies have been cutting back on marketing spending, which will continue to weigh on Alphabet's and Meta Platforms' adtech businesses, which derive nearly all their revenue from advertising.
Tighter budgets make it less likely that shoppers will splurge for high-end items like iPhones, Apple's biggest seller.
Overall belt-tightening means consumers may cut back on nonessential items like Netflix's streaming video service, while buying fewer discretionary items from Amazon's e-commerce platform.
On the other hand, with these stocks at multiyear lows, valuations are the cheapest they've been in years. They still might not be for everyone, however, as some still aren't cheap in terms of traditional valuation metrics.
For example, Apple is selling for 5 times next year's sales, while Netflix, Alphabet, and Meta Platforms have forward valuations of 4, 4, and 3, respectively. Amazon is the only one that truly is in bargain-basement territory, selling for less than 2 times next year's sales.
For context, experts generally consider a price-to-sales ratio of between 1 and 2 as reasonable. However, each company is a leader in its respective field, which is why investors have granted each a higher premium.
That doesn't mean stocks won't fall further from here -- history clearly shows they could. But for investors with a stomach for volatility and an appropriate investing time horizon, these growth stocks have a history of beating the market over time.
10 stocks we like better than Meta Platforms
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Meta Platforms wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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. 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. Danny Vena has positions in Alphabet, Amazon.com, Apple, Meta Platforms, and Netflix. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, and Netflix. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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ET: Facebook parent Meta Platforms (NASDAQ: META) surged 4.9%, Apple (NASDAQ: AAPL) rose 2%, Amazon (NASDAQ: AMZN) climbed 3.1%, Netflix (NASDAQ: NFLX) jumped 4.3%, and Google parent Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) rallied 4.4%. A review of all the usual sources -- regulatory filings, changes to analysts' estimates, and earnings reports -- revealed nothing in the way of company-specific news to explain why the FAANG stocks were higher, suggesting they were simply reacting to the improving read on the economy. So what The U.S. Bureau of Labor Statistics released its monthly report on inflation, and the data helped investors and consumers alike breathe a sigh of relief.
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ET: Facebook parent Meta Platforms (NASDAQ: META) surged 4.9%, Apple (NASDAQ: AAPL) rose 2%, Amazon (NASDAQ: AMZN) climbed 3.1%, Netflix (NASDAQ: NFLX) jumped 4.3%, and Google parent Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) rallied 4.4%. The "core" data, which excludes highly volatile food and energy prices, climbed 6% since this time last year -- still high by historical standards -- but also lower than economists' predictions of 6.1%. Furthermore, even with minor improvements in the broader economic picture, challenges remain for our technology denizens, including: Companies have been cutting back on marketing spending, which will continue to weigh on Alphabet's and Meta Platforms' adtech businesses, which derive nearly all their revenue from advertising.
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ET: Facebook parent Meta Platforms (NASDAQ: META) surged 4.9%, Apple (NASDAQ: AAPL) rose 2%, Amazon (NASDAQ: AMZN) climbed 3.1%, Netflix (NASDAQ: NFLX) jumped 4.3%, and Google parent Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) rallied 4.4%. For example, Apple is selling for 5 times next year's sales, while Netflix, Alphabet, and Meta Platforms have forward valuations of 4, 4, and 3, respectively. 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.
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ET: Facebook parent Meta Platforms (NASDAQ: META) surged 4.9%, Apple (NASDAQ: AAPL) rose 2%, Amazon (NASDAQ: AMZN) climbed 3.1%, Netflix (NASDAQ: NFLX) jumped 4.3%, and Google parent Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) rallied 4.4%. For example, Apple is selling for 5 times next year's sales, while Netflix, Alphabet, and Meta Platforms have forward valuations of 4, 4, and 3, respectively. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Meta Platforms wasn't one of them!
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18029.0
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2022-12-13 00:00:00 UTC
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US STOCKS-Wall St surges as CPI data calms jitters over aggressive rate hikes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-surges-as-cpi-data-calms-jitters-over-aggressive-rate-hikes
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nan
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nan
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By Ankika Biswas and Johann M Cherian
Dec 13 (Reuters) - Wall Street's main indexes rallied on Tuesday, led by rate-sensitive growth stocks, after a smaller-than-expected rise in U.S. consumer prices raised hopes that the Federal Reserve could soften its aggressive stance on interest rate hikes.
The benchmark S&P 500 .SPX touched a three-month high in morning trade after data showed U.S. consumer prices barely rose in November amid declines in the cost of gasoline and used cars, leading to the smallest annual increase in inflation in nearly a year.
Rising bets on a potential slowdown in the pace of rate hikes following the report led to a decline in Treasury yields and drove strong gains in megacap stocks, with Alphabet Inc GOOGL.O, Nvidia Corp NVDA.O, Amazon.com Inc AMZN.O and Apple Inc AAPL.O soaring between 4.8% and 7.3%. US/
Fed funds futures prices implied a strong chance that the U.S. central bank would follow its widely expected half-point interest rate hike on Wednesday with a smaller 25 bps rate hike in February, ultimately raising rates no higher than the 4.5-4.75% range.FEDWATCH
"The Fed has raised rates pretty significantly over the course of this year and we're starting to see the real results today," said Art Hogan, chief market strategist at B. Riley Financial.
"I think what that tells us is that when the Fed meets tomorrow, they likely will have the ability to say we're raising rates by less than what they have been, at 50 basis points, and the place at which we stop will likely be at 5%," Hogan said.
The numbers follow November's slightly higher-than-expected producer prices reading last week, which, however, pointed to a moderation in the trend.
Fears that the Fed's aggressive policy tightening will tip the economy into a recession have pushed the benchmark S&P 500 down 14.2% this year.
With Tuesday's gains, the tech-heavy Nasdaq .IXIC and the S&P 500 were on track to recoup much of their monthly losses.
The CBOE volatility index .VIX, also known as Wall Street's fear gauge, hit a one-week low of 21.46 points, reflecting easing investor anxiety.
At 9:48 a.m. ET, the Dow Jones Industrial Average .DJI was up 587.00 points, or 1.73%, at 34,592.04, the S&P 500 .SPX was up 107.05 points, or 2.68%, at 4,097.61, and the Nasdaq Composite .IXIC was up 423.58 points, or 3.80%, at 11,567.32.
Oracle Corp ORCL.K jumped 4.6% on better-than-expected quarterly revenue, while Pinterest Inc PINS.N gained 10.9% after Piper Sandler upgraded the social media platform's stock to "overweight" from "neutral".
Advancing issues outnumbered decliners by a 12.94-to-1 ratio on the NYSE and 6.13-to-1 ratio on the Nasdaq.
The S&P index recorded 18 new 52-week highs and no new lows, while the Nasdaq recorded 57 new highs and 34 new lows.
(Reporting by Shubham Batra, Ankika Biswas and Bansari Mayur Kamdar in Bengaluru; Editing by Vinay Dwivedi and Anil D'Silva)
((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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Rising bets on a potential slowdown in the pace of rate hikes following the report led to a decline in Treasury yields and drove strong gains in megacap stocks, with Alphabet Inc GOOGL.O, Nvidia Corp NVDA.O, Amazon.com Inc AMZN.O and Apple Inc AAPL.O soaring between 4.8% and 7.3%. By Ankika Biswas and Johann M Cherian Dec 13 (Reuters) - Wall Street's main indexes rallied on Tuesday, led by rate-sensitive growth stocks, after a smaller-than-expected rise in U.S. consumer prices raised hopes that the Federal Reserve could soften its aggressive stance on interest rate hikes. The benchmark S&P 500 .SPX touched a three-month high in morning trade after data showed U.S. consumer prices barely rose in November amid declines in the cost of gasoline and used cars, leading to the smallest annual increase in inflation in nearly a year.
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Rising bets on a potential slowdown in the pace of rate hikes following the report led to a decline in Treasury yields and drove strong gains in megacap stocks, with Alphabet Inc GOOGL.O, Nvidia Corp NVDA.O, Amazon.com Inc AMZN.O and Apple Inc AAPL.O soaring between 4.8% and 7.3%. By Ankika Biswas and Johann M Cherian Dec 13 (Reuters) - Wall Street's main indexes rallied on Tuesday, led by rate-sensitive growth stocks, after a smaller-than-expected rise in U.S. consumer prices raised hopes that the Federal Reserve could soften its aggressive stance on interest rate hikes. The S&P index recorded 18 new 52-week highs and no new lows, while the Nasdaq recorded 57 new highs and 34 new lows.
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Rising bets on a potential slowdown in the pace of rate hikes following the report led to a decline in Treasury yields and drove strong gains in megacap stocks, with Alphabet Inc GOOGL.O, Nvidia Corp NVDA.O, Amazon.com Inc AMZN.O and Apple Inc AAPL.O soaring between 4.8% and 7.3%. By Ankika Biswas and Johann M Cherian Dec 13 (Reuters) - Wall Street's main indexes rallied on Tuesday, led by rate-sensitive growth stocks, after a smaller-than-expected rise in U.S. consumer prices raised hopes that the Federal Reserve could soften its aggressive stance on interest rate hikes. US/ Fed funds futures prices implied a strong chance that the U.S. central bank would follow its widely expected half-point interest rate hike on Wednesday with a smaller 25 bps rate hike in February, ultimately raising rates no higher than the 4.5-4.75% range.FEDWATCH "The Fed has raised rates pretty significantly over the course of this year and we're starting to see the real results today," said Art Hogan, chief market strategist at B. Riley Financial.
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Rising bets on a potential slowdown in the pace of rate hikes following the report led to a decline in Treasury yields and drove strong gains in megacap stocks, with Alphabet Inc GOOGL.O, Nvidia Corp NVDA.O, Amazon.com Inc AMZN.O and Apple Inc AAPL.O soaring between 4.8% and 7.3%. By Ankika Biswas and Johann M Cherian Dec 13 (Reuters) - Wall Street's main indexes rallied on Tuesday, led by rate-sensitive growth stocks, after a smaller-than-expected rise in U.S. consumer prices raised hopes that the Federal Reserve could soften its aggressive stance on interest rate hikes. US/ Fed funds futures prices implied a strong chance that the U.S. central bank would follow its widely expected half-point interest rate hike on Wednesday with a smaller 25 bps rate hike in February, ultimately raising rates no higher than the 4.5-4.75% range.FEDWATCH "The Fed has raised rates pretty significantly over the course of this year and we're starting to see the real results today," said Art Hogan, chief market strategist at B. Riley Financial.
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18030.0
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2022-12-13 00:00:00 UTC
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Technology Sector Update for 12/13/2022: PLAB, ORCL, SONY, AAPL, MSFT, XLK, SOXX
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-12-13-2022%3A-plab-orcl-sony-aapl-msft-xlk-soxx
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Technology firms were trading higher pre-bell Tuesday. The Technology Select Sector SPDR ETF (XLK) and Semiconductor Sector Index Fund (SOXX) were each up by about 4%.
Photronics (PLAB) was rising more than 6%, after reporting higher year-over-year fiscal Q4 earnings, at $0.60 per diluted share from $0.33 a year before. Two analysts polled by Capital IQ expected EPS of $0.48.
Oracle (ORCL) was increasing more than 4% after as the company reported fiscal Q2 non-GAAP EPS of $1.21, flat from a year earlier. Analysts polled by Capital IQ expected $1.17.
Sony Group (SONY) rose 3% after Microsoft (MSFT) reportedly proposed giving the Japanese company the right to sell Activision's Call of Duty as part of its gaming subscription service. Meanwhile, Apple (AAPL) said it has invested more than $100 billion over the past five years in its network of nearly 1,000 Japanese suppliers, with Sony serving as one of the largest.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Meanwhile, Apple (AAPL) said it has invested more than $100 billion over the past five years in its network of nearly 1,000 Japanese suppliers, with Sony serving as one of the largest. Photronics (PLAB) was rising more than 6%, after reporting higher year-over-year fiscal Q4 earnings, at $0.60 per diluted share from $0.33 a year before. Oracle (ORCL) was increasing more than 4% after as the company reported fiscal Q2 non-GAAP EPS of $1.21, flat from a year earlier.
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Meanwhile, Apple (AAPL) said it has invested more than $100 billion over the past five years in its network of nearly 1,000 Japanese suppliers, with Sony serving as one of the largest. Two analysts polled by Capital IQ expected EPS of $0.48. Oracle (ORCL) was increasing more than 4% after as the company reported fiscal Q2 non-GAAP EPS of $1.21, flat from a year earlier.
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Meanwhile, Apple (AAPL) said it has invested more than $100 billion over the past five years in its network of nearly 1,000 Japanese suppliers, with Sony serving as one of the largest. The Technology Select Sector SPDR ETF (XLK) and Semiconductor Sector Index Fund (SOXX) were each up by about 4%. Oracle (ORCL) was increasing more than 4% after as the company reported fiscal Q2 non-GAAP EPS of $1.21, flat from a year earlier.
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Meanwhile, Apple (AAPL) said it has invested more than $100 billion over the past five years in its network of nearly 1,000 Japanese suppliers, with Sony serving as one of the largest. Technology firms were trading higher pre-bell Tuesday. Two analysts polled by Capital IQ expected EPS of $0.48.
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18031.0
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2022-12-13 00:00:00 UTC
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Apple's Biggest Weakness Is Being Exposed
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AAPL
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https://www.nasdaq.com/articles/apples-biggest-weakness-is-being-exposed
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nan
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nan
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Apple (NASDAQ: AAPL) is clamping down on the apps available on its App Store, potentially cutting off disruptive technology in the process. Coinbase (NASDAQ: COIN) recently saw this firsthand, and it highlights how devices with blockchain technology and security engrained could be a disruptive force on Apple's smartphone dominance. Travis Hoium and Jon Quast discuss the developments in the video below.
*Stock prices used were end-of-day prices on Dec. 6, 2022. The video was published on Dec. 12, 2022.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Jon Quast has positions in Ethereum, Solana, and Starbucks. Travis Hoium has positions in Alphabet, Apple, Coinbase Global, Ethereum, and Solana. The Motley Fool has positions in and recommends Alphabet, Apple, Coinbase Global, Ethereum, Solana, and Starbucks. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple, short January 2023 $92.50 puts on Starbucks, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) is clamping down on the apps available on its App Store, potentially cutting off disruptive technology in the process. Coinbase (NASDAQ: COIN) recently saw this firsthand, and it highlights how devices with blockchain technology and security engrained could be a disruptive force on Apple's smartphone dominance. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Apple (NASDAQ: AAPL) is clamping down on the apps available on its App Store, potentially cutting off disruptive technology in the process. Travis Hoium has positions in Alphabet, Apple, Coinbase Global, Ethereum, and Solana. The Motley Fool has positions in and recommends Alphabet, Apple, Coinbase Global, Ethereum, Solana, and Starbucks.
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Apple (NASDAQ: AAPL) is clamping down on the apps available on its App Store, potentially cutting off disruptive technology in the process. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Alphabet, Apple, Coinbase Global, Ethereum, Solana, and Starbucks.
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Apple (NASDAQ: AAPL) is clamping down on the apps available on its App Store, potentially cutting off disruptive technology in the process. Travis Hoium and Jon Quast discuss the developments in the video below. That's right -- they think these 10 stocks are even better buys.
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18032.0
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2022-12-13 00:00:00 UTC
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These ESG ETFs Could Bounce Back in 2023
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AAPL
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https://www.nasdaq.com/articles/these-esg-etfs-could-bounce-back-in-2023
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nan
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A
fter a multi-year run of success, environmental, social and governance (ESG) exchange traded funds fell on hard times in 2022 and there are several factors explaining that weakness. But first, let's explain what ESG ETFs are.
What are ESG ETFs?
ESG ETFs are one way investors can align their financial goals with issues most important to them. These ETFs embody Environmental, Social and Governance initiatives and incorporate each into a uniform investment approach.
For starters, many ESG ETFs – particularly the older, large-cap funds in the category – are chock full of growth, which are being punished by rising interest rates. Second, it’s not just that growth stocks and funds are faltering. The added drag on ESG ETFs is that many asset allocators are rotating out of those assets into value strategies.
Finally, as is to be expected, ESG ETFs are light on energy stocks and that’s problematic when energy as the best-performing sector in the S&P 500 for the second consecutive year. Still, ESG remains a popular concept among market participants. Although inflows into ESG ETFs are slowing this year – the result of a languishing equity market – the flows are still positive.
Further underscoring the long-term prospects for ESG as an investment concept is the point that more companies are prioritizing this issue.
“Some 90% of companies either have or are developing a formal strategy to manage corporate environmental, social, and governance practices, according to a Morningstar Sustainalytics survey of 556 corporate social responsibility and sustainability professionals,” notes Morningstar analyst Allie McCallion.
Plus, a variety of factors point to some of the following ESG ETFs being potential 2023 rebound candidates.
Three ESG ETFs to Watch in 2023
XTrackers S&P ESG Dividend Aristocrats ETF (SNPD)
The XTrackers S&P ESG Dividend Aristocrats ETF (SNPD) is barely more than a month old, making it one of the newest ESG ETFs on the market, but thanks to the dividend overlay, SNPD is also immediately relevant because payouts are growing and dividend stocks are outperforming this year.
This newly minted ETF follows the S&P ESG High Yield Dividend Aristocrats Index, which mandates that member firms have minimum dividend increase streaks of 20 years. Adding to the allure of this new ESG ETF is the potential for long-term out-performance relative to the broader market.
“Recently, the outperformance of the S&P ESG High Yield Dividend Aristocrats Index versus the S&P 1500 has been even more pronounced," noted S&P Dow Jones Indices. "Year-to-date, the S&P ESG High Yield Dividend Aristocrats Index has outperformed the benchmark by 15.25%. One reason for this is that high-yielding indices, mainly through their lower durations, offered greater protection against rapidly rising interest rates compared to the benchmark."
Invesco ESG NASDAQ 100 ETF (QQMG)
As noted above, many ESG ETFs are heavy on growth stocks and that’s certainly true of the Invesco ESG NASDAQ 100 ETF (QQMG). Earlier this year, QQMG could have been seen as a risky proposition for investors, but that risk is now significantly diminished.
Adding to the case for QQMG are the points that many of its holdings are deeply discounted relative to historical norms and have quality traits. Those include Apple (AAPL), Microsoft (MSFT), and Alphabet (GOOG). Put it altogether, QQMG has the makings an ESG ETF appropriate for long-term investors.
“For ESG, we’re talking about longer-term strategies," noted Lauren Puffer, head of sustainability banking at Cowen. "ESG includes the way that companies are looking at environmental impacts, social impacts, and their governance structures today, and making decisions about that that will impact the companies and potentially, their value over the longer term."
IQ MacKay ESG Core Plus Bond ETF (ESGB)
As is the case with growth stocks, bonds are being taken to the woodshed this year, which isn’t surprising given that the Federal Reserve raised interest rates six times. However, some market observers believe they are poised to rebound next year, indicating there could be value in the IQ MacKay ESG Core Plus Bond ETF (ESGB).
ESGB is actively managed, which could prove to be a critical trait due to the dearth of bonds with legitimate ESG credentials on the market today. Plus, this ESG ETF is growing rapidly as approximately 90% of its assets under management have flowed into the fund just this year. Data indicate some investors may be ditching mutual funds for ESG ETFs such as ESGB.
“This year is shaping up to be the biggest ‘wrapper swap’ on record," reports The Wall Street Journal. "Roughly $454 billion has been pulled from bond mutual funds on net while $157 billion has entered bond exchange-traded funds through the end of October. That would be the largest net annual swing toward ETFs by a wide margin, according to Strategas."
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Those include Apple (AAPL), Microsoft (MSFT), and Alphabet (GOOG). fter a multi-year run of success, environmental, social and governance (ESG) exchange traded funds fell on hard times in 2022 and there are several factors explaining that weakness. For starters, many ESG ETFs – particularly the older, large-cap funds in the category – are chock full of growth, which are being punished by rising interest rates.
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Those include Apple (AAPL), Microsoft (MSFT), and Alphabet (GOOG). Three ESG ETFs to Watch in 2023 XTrackers S&P ESG Dividend Aristocrats ETF (SNPD) The XTrackers S&P ESG Dividend Aristocrats ETF (SNPD) is barely more than a month old, making it one of the newest ESG ETFs on the market, but thanks to the dividend overlay, SNPD is also immediately relevant because payouts are growing and dividend stocks are outperforming this year. "Year-to-date, the S&P ESG High Yield Dividend Aristocrats Index has outperformed the benchmark by 15.25%.
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Those include Apple (AAPL), Microsoft (MSFT), and Alphabet (GOOG). Three ESG ETFs to Watch in 2023 XTrackers S&P ESG Dividend Aristocrats ETF (SNPD) The XTrackers S&P ESG Dividend Aristocrats ETF (SNPD) is barely more than a month old, making it one of the newest ESG ETFs on the market, but thanks to the dividend overlay, SNPD is also immediately relevant because payouts are growing and dividend stocks are outperforming this year. Invesco ESG NASDAQ 100 ETF (QQMG) As noted above, many ESG ETFs are heavy on growth stocks and that’s certainly true of the Invesco ESG NASDAQ 100 ETF (QQMG).
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Those include Apple (AAPL), Microsoft (MSFT), and Alphabet (GOOG). What are ESG ETFs? Further underscoring the long-term prospects for ESG as an investment concept is the point that more companies are prioritizing this issue.
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18033.0
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2022-12-13 00:00:00 UTC
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Stock Market News for Dec 13, 2022
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-dec-13-2022
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U.S. stocks closed sharply higher on Monday, paring some of the steep losses from last week, as investors shifted focus toward new inflation data and the Fed’s policy meeting scheduled over the next two days. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) climbed 1.6% or 528.58 points to close at 34,005.04 points.
The S&P 500 rose 1.4% or 56.18 points to finish at 3,990.56 points. Energy, tech and utilities stocks were the biggest gainers.
The Energy Select Sector SPDR (XLE) rallied 2.6%, while the Technology Care Select Sector SPDR (XLK) gained 2.2%. The Utilities Select Sector SPDR (XLU) advanced 2.3%. All 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq advanced 1.3% or 139.12 points to end at 11,143.74 points.
The fear-gauge CBOE Volatility Index (VIX) was up 9.51% to 25. Advancers outnumbered decliners on the NYSE by a 1.67-to-1 ratio. On Nasdaq, a 1.43-to-1 ratio favored advancing issues. A total of 10.35 billion shares were traded on Friday, lower than the last 20-session average of 10.49 billion.
Investors Optimistic Ahead of Fed Meeting
Wall Street closed sharply lower last week as investors worried about higher borrowing costs that could further slow economic growth. Also, disappointing earnings from a batch of companies further dented investors’ confidence.
However, optimism replaced the worries on Monday as investors shifted focus toward fresh inflation data. Investors are anxiously waiting for the consumer price data that will be released on Tuesday. This will give them a clearer picture of the economy.
This will be followed by the Fed’s two-day policy meeting at the end of which the central bank will announce its decision on the interest rate hike. Policy makers are expected to go for a 50-basis point hike to a range of 4.25% to 4.50%. Fed Chair Jerome Powell last week said that the central bank might scale back the pace of its interest rate increases and a 50-basis point interest rate hike will be an indication of that.
Also, the New York Fed’s November Survey of Consumer Expectations, which was released on Monday, showed that people now expect inflation to run at a rate of 5.2%. This is sharply down from 5.9% during last year’s survey.
The fears of inflation have been easing over the past few weeks now. These factors played a key role in giving investors’ confidence a boost to start a fresh week with renewed vigor, sending stocks on a rally.
Tech and stocks were big gainers on Monday. Shares of Microsoft Corporation MSFT gained 2.9%, while Apple Inc. AAPL advanced 1.6%. Apple has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Also, energy stocks rallied after taking a beating for weeks as oil prices finally steadied. Shares of Exxon Mobil Corporation XOM gained 2.9%, while Chevron Corporation CVX rose 1%.
No economic data was released on Monday.
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Microsoft Corporation MSFT gained 2.9%, while Apple Inc. AAPL advanced 1.6%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report To read this article on Zacks.com click here. U.S. stocks closed sharply higher on Monday, paring some of the steep losses from last week, as investors shifted focus toward new inflation data and the Fed’s policy meeting scheduled over the next two days.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Microsoft Corporation MSFT gained 2.9%, while Apple Inc. AAPL advanced 1.6%. The Energy Select Sector SPDR (XLE) rallied 2.6%, while the Technology Care Select Sector SPDR (XLK) gained 2.2%.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Microsoft Corporation MSFT gained 2.9%, while Apple Inc. AAPL advanced 1.6%. U.S. stocks closed sharply higher on Monday, paring some of the steep losses from last week, as investors shifted focus toward new inflation data and the Fed’s policy meeting scheduled over the next two days.
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Shares of Microsoft Corporation MSFT gained 2.9%, while Apple Inc. AAPL advanced 1.6%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report To read this article on Zacks.com click here. U.S. stocks closed sharply higher on Monday, paring some of the steep losses from last week, as investors shifted focus toward new inflation data and the Fed’s policy meeting scheduled over the next two days.
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18034.0
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2022-12-12 00:00:00 UTC
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Top advisor for French data privacy watchdog advises 6 mln-euro fine against Apple
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AAPL
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https://www.nasdaq.com/articles/top-advisor-for-french-data-privacy-watchdog-advises-6-mln-euro-fine-against-apple
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nan
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PARIS, Dec 12 (Reuters) - The top advisor for French data protection authority's sanction body advised on Monday to fine iPhone maker Apple AAPL.O 6 million euros ($6.34 million) for breach of privacy rules tied to the use of trackers for ad campaigns online.
The recommendation made by the rapporteur, François Pellegrini, follows an investigation by the authority, CNIL, after the complaint from France Digitale, the biggest lobby for French startups and venture capitalists in the country.
CNIL's sanction body is free to follow the rapporteur's recommendations. It still has to make a decision on the case.
($1 = 0.9464 euros)
(Reporting by Mathieu Rosemain, Editing by Dominique Vidalon)
((Mathieu.Rosemain@thomsonreuters.com; +33 1 8098 1239; Reuters Messaging: mathieu.rosemain.thomsonreuters.com@reuters.net; Twitter: https://twitter.com/MathieuRosemain))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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PARIS, Dec 12 (Reuters) - The top advisor for French data protection authority's sanction body advised on Monday to fine iPhone maker Apple AAPL.O 6 million euros ($6.34 million) for breach of privacy rules tied to the use of trackers for ad campaigns online. The recommendation made by the rapporteur, François Pellegrini, follows an investigation by the authority, CNIL, after the complaint from France Digitale, the biggest lobby for French startups and venture capitalists in the country. ($1 = 0.9464 euros) (Reporting by Mathieu Rosemain, Editing by Dominique Vidalon) ((Mathieu.Rosemain@thomsonreuters.com; +33 1 8098 1239; Reuters Messaging: mathieu.rosemain.thomsonreuters.com@reuters.net; Twitter: https://twitter.com/MathieuRosemain)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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PARIS, Dec 12 (Reuters) - The top advisor for French data protection authority's sanction body advised on Monday to fine iPhone maker Apple AAPL.O 6 million euros ($6.34 million) for breach of privacy rules tied to the use of trackers for ad campaigns online. The recommendation made by the rapporteur, François Pellegrini, follows an investigation by the authority, CNIL, after the complaint from France Digitale, the biggest lobby for French startups and venture capitalists in the country. CNIL's sanction body is free to follow the rapporteur's recommendations.
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PARIS, Dec 12 (Reuters) - The top advisor for French data protection authority's sanction body advised on Monday to fine iPhone maker Apple AAPL.O 6 million euros ($6.34 million) for breach of privacy rules tied to the use of trackers for ad campaigns online. The recommendation made by the rapporteur, François Pellegrini, follows an investigation by the authority, CNIL, after the complaint from France Digitale, the biggest lobby for French startups and venture capitalists in the country. ($1 = 0.9464 euros) (Reporting by Mathieu Rosemain, Editing by Dominique Vidalon) ((Mathieu.Rosemain@thomsonreuters.com; +33 1 8098 1239; Reuters Messaging: mathieu.rosemain.thomsonreuters.com@reuters.net; Twitter: https://twitter.com/MathieuRosemain)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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PARIS, Dec 12 (Reuters) - The top advisor for French data protection authority's sanction body advised on Monday to fine iPhone maker Apple AAPL.O 6 million euros ($6.34 million) for breach of privacy rules tied to the use of trackers for ad campaigns online. The recommendation made by the rapporteur, François Pellegrini, follows an investigation by the authority, CNIL, after the complaint from France Digitale, the biggest lobby for French startups and venture capitalists in the country. CNIL's sanction body is free to follow the rapporteur's recommendations.
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18035.0
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2022-12-12 00:00:00 UTC
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US STOCKS-Wall St set for higher open as investors await CPI data, Fed decision
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-for-higher-open-as-investors-await-cpi-data-fed-decision
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nan
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By Shubham Batra and Ankika Biswas
Dec 12 (Reuters) - Wall Street's main stock indexes were set to open higher on Monday as investors awaited inflation data and the Federal Reserve's policy decision later this week to gauge the U.S. economic outlook amid worries of a recession.
Data due on Tuesday is expected to show consumer prices rose 7.3% in November on an annual basis, easing from the 7.7% rise in the previous month, while the core rate, which excludes volatile food and energy prices, is expected to have moderated to 6.1% from 6.3% in October.
The numbers will come on the heels of November's slightly higher-than-expected producer price reading on Friday, amid a jump in the costs of services, but the trend is moderating, with annual inflation at the factory gate posting its smallest increase in 1-1/2 years.
The outcome for the U.S. central bank's two-day meeting is scheduled for Wednesday, with money market participants seeing a 91% chance of a 50-basis-point rate hike to 4.25%-4.50%, and a terminal rate of 4.96% by May 2023. FEDWATCH
"There's certainly the concern that potentially high inflation could create the perception that the Fed might be more aggressive in its tightening," said Randy Frederick, managing director of trading and derivatives for Charles Schwab in Austin, Texas.
"The market is certain that we're going to get half a point hike, but I think it (economic data) does change the prospect of what might happen further down the road."
Treasury Secretary Janet Yellen on Sunday forecast a substantial reduction in U.S. price pressure in 2023, while also acknowledging a risk of a recession.
Wall Street's main indexes have slumped this year on fears of aggressive rate hikes triggering a U.S. recession. The Nasdaq .IXIC and S&P 500 .SPX have fallen 29.7% and 17.5% so far in 2022, respectively, on track for their worst yearly performance since 2008.
At 8:27 a.m. ET, Dow e-minis 1YMcv1 were up 81 points, or 0.24%, S&P 500 e-minis EScv1 were up 12.75 points, or 0.32%, and Nasdaq 100 e-minis NQcv1 were up 34.25 points, or 0.3%.
Most rate-sensitive stocks including Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O gained between 0.1% and 0.4% in premarket trading.
Qualcomm Inc QCOM.O lost 2.7% after Wells Fargo downgraded its rating on the smartphone chipmaker's stock to "underweight" from "equal weight".
Biotech firm Horizon Therapeutics Plc HZNP.O jumped 14.9% following a buyout offer from Amgen Inc AMGN.O, while Coupa Softwre Inc COUP.O surged 26.9% on a media report of Thoma Bravo LLC being in advanced talks for an acquisition.
Rivian Automotive Inc RIVN.O lost 1.2% after the company paused its partnership discussions with Mercedes-Benz Vans on electric van production in Europe.
(Reporting by Shubham Batra, Ankika Biswas and Johann M Cherian in Bengaluru Editing by Vinay Dwivedi)
((Shubham.Batra@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Most rate-sensitive stocks including Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O gained between 0.1% and 0.4% in premarket trading. By Shubham Batra and Ankika Biswas Dec 12 (Reuters) - Wall Street's main stock indexes were set to open higher on Monday as investors awaited inflation data and the Federal Reserve's policy decision later this week to gauge the U.S. economic outlook amid worries of a recession. The numbers will come on the heels of November's slightly higher-than-expected producer price reading on Friday, amid a jump in the costs of services, but the trend is moderating, with annual inflation at the factory gate posting its smallest increase in 1-1/2 years.
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Most rate-sensitive stocks including Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O gained between 0.1% and 0.4% in premarket trading. By Shubham Batra and Ankika Biswas Dec 12 (Reuters) - Wall Street's main stock indexes were set to open higher on Monday as investors awaited inflation data and the Federal Reserve's policy decision later this week to gauge the U.S. economic outlook amid worries of a recession. Wall Street's main indexes have slumped this year on fears of aggressive rate hikes triggering a U.S. recession.
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Most rate-sensitive stocks including Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O gained between 0.1% and 0.4% in premarket trading. By Shubham Batra and Ankika Biswas Dec 12 (Reuters) - Wall Street's main stock indexes were set to open higher on Monday as investors awaited inflation data and the Federal Reserve's policy decision later this week to gauge the U.S. economic outlook amid worries of a recession. Data due on Tuesday is expected to show consumer prices rose 7.3% in November on an annual basis, easing from the 7.7% rise in the previous month, while the core rate, which excludes volatile food and energy prices, is expected to have moderated to 6.1% from 6.3% in October.
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Most rate-sensitive stocks including Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O gained between 0.1% and 0.4% in premarket trading. By Shubham Batra and Ankika Biswas Dec 12 (Reuters) - Wall Street's main stock indexes were set to open higher on Monday as investors awaited inflation data and the Federal Reserve's policy decision later this week to gauge the U.S. economic outlook amid worries of a recession. Data due on Tuesday is expected to show consumer prices rose 7.3% in November on an annual basis, easing from the 7.7% rise in the previous month, while the core rate, which excludes volatile food and energy prices, is expected to have moderated to 6.1% from 6.3% in October.
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18036.0
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2022-12-12 00:00:00 UTC
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Why Qualcomm Stock Rose Today Despite a Fresh Analyst Downgrade
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AAPL
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https://www.nasdaq.com/articles/why-qualcomm-stock-rose-today-despite-a-fresh-analyst-downgrade
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nan
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What happened
Qualcomm (NASDAQ: QCOM) stock was dinged early Monday on the back of a recommendation downgrade from a prominent bank. But you can't keep a much-liked tech company down for long, and Qualcomm bulls soon rallied to push the share price almost 2% higher on the day.
So what
Before the market open, Wells Fargo prognosticator Gary Mobley changed his recommendation on Qualcomm to underweight (read: sell) from his previous equal weight (neutral). He left his $105 per share price target intact, however.
Much of Mobley's new outlook is due to his bearish view of the chip sector in general. He wrote that until "investors are convinced we've reached a trough in the chip cycle, we believe shares of companies w/high smartphone exposure should underperform the broader chip sector."
He is also concerned with Qualcomm's heavy reliance on the smartphone market. Although the company is dominant in that sphere, Mobley described it as currently in a "no-growth" environment.
At the moment, Qualcomm enjoys a strong position as a critical supplier for Apple (NASDAQ: AAPL) devices. Beyond that, perhaps its best potential lies in the high-end Android phone segment. However, Mobley feels this "may not be the best exposure to have."
Now what
Tech stocks aren't exactly staging a full recovery from the many bear attacks they suffered throughout 2022, but investors are conscious of their weakened prices and are sniffing around for bargains. Meanwhile, demand for Apple's recently introduced iPhone 16 appears to be robust, so at least in the short to medium term, Qualcomm should continue to benefit from the association with its most important partner.
10 stocks we like better than Qualcomm
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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. Eric Volkman has positions in Apple. The Motley Fool has positions in and recommends Apple and Qualcomm. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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At the moment, Qualcomm enjoys a strong position as a critical supplier for Apple (NASDAQ: AAPL) devices. So what Before the market open, Wells Fargo prognosticator Gary Mobley changed his recommendation on Qualcomm to underweight (read: sell) from his previous equal weight (neutral). Now what Tech stocks aren't exactly staging a full recovery from the many bear attacks they suffered throughout 2022, but investors are conscious of their weakened prices and are sniffing around for bargains.
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At the moment, Qualcomm enjoys a strong position as a critical supplier for Apple (NASDAQ: AAPL) devices. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Apple and Qualcomm.
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At the moment, Qualcomm enjoys a strong position as a critical supplier for Apple (NASDAQ: AAPL) devices. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Apple and Qualcomm.
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At the moment, Qualcomm enjoys a strong position as a critical supplier for Apple (NASDAQ: AAPL) devices. Much of Mobley's new outlook is due to his bearish view of the chip sector in general. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Wells Fargo is an advertising partner of The Ascent, a Motley Fool company.
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18037.0
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2022-12-12 00:00:00 UTC
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After Hours Most Active for Dec 12, 2022 : IQ, AAPL, INTC, BAC, ALIT, MSFT, TSLA, SLGC, NIO, PM, ZTO, T
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-dec-12-2022-%3A-iq-aapl-intc-bac-alit-msft-tsla-slgc-nio-pm-zto
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The NASDAQ 100 After Hours Indicator is down -16.22 to 11,690.22. The total After hours volume is currently 101,341,483 shares traded.
The following are the most active stocks for the after hours session:
iQIYI, Inc. (IQ) is -0.02 at $3.50, with 10,017,288 shares traded. IQ's current last sale is 79.55% of the target price of $4.4.
Apple Inc. (AAPL) is -0.09 at $144.40, with 5,969,747 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Intel Corporation (INTC) is -0.05 at $28.64, with 5,554,654 shares traded. INTC's current last sale is 95.47% of the target price of $30.
Bank of America Corporation (BAC) is -0.07 at $32.66, with 4,283,555 shares traded. As reported by Zacks, the current mean recommendation for BAC is in the "buy range".
Alight, Inc. (ALIT) is unchanged at $8.53, with 3,762,312 shares traded. As reported by Zacks, the current mean recommendation for ALIT is in the "buy range".
Microsoft Corporation (MSFT) is unchanged at $252.51, with 3,052,104 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Tesla, Inc. (TSLA) is +0.44 at $168.26, with 3,044,439 shares traded. TSLA's current last sale is 55.93% of the target price of $300.833.
SomaLogic, Inc. (SLGC) is unchanged at $2.55, with 2,465,800 shares traded., following a 52-week high recorded in today's regular session.
NIO Inc. (NIO) is -0.04 at $12.45, with 2,150,256 shares traded. As reported by Zacks, the current mean recommendation for NIO is in the "buy range".
Philip Morris International Inc (PM) is -0.62 at $101.98, with 2,101,905 shares traded. As reported by Zacks, the current mean recommendation for PM is in the "buy range".
ZTO Express (Cayman) Inc. (ZTO) is unchanged at $25.77, with 1,971,479 shares traded. ZTO's current last sale is 83.13% of the target price of $31.
AT&T Inc. (T) is -0.02 at $19.28, with 1,908,231 shares traded. T's current last sale is 85.69% of the target price of $22.5.
The views and 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 $144.40, with 5,969,747 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 BAC is in the "buy range".
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -0.09 at $144.40, with 5,969,747 shares traded. As reported by Zacks, the current mean recommendation for BAC is in the "buy range".
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Apple Inc. (AAPL) is -0.09 at $144.40, with 5,969,747 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 101,341,483 shares traded.
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Apple Inc. (AAPL) is -0.09 at $144.40, with 5,969,747 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 -16.22 to 11,690.22.
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18038.0
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2022-12-12 00:00:00 UTC
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US STOCKS-Wall St rises as focus turns to inflation data, Fed
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-rises-as-focus-turns-to-inflation-data-fed
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nan
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nan
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By Ankika Biswas and Johann M Cherian
Dec 12 (Reuters) - U.S. stock indexes kicked off an eventful week on a positive note as investors braced for inflation data and the Federal Reserve's policy decision amid worries of a looming recession.
Much of the boost to Wall Street's main indexes on Monday came from a 2.1% rise in shares of Microsoft Corp MSFT.O, following the software maker's plans to buy a 4% stake in the London Stock Exchange Group LSEG.L.
Market participants are expecting the U.S. central bank to veer slightly from its aggressive rate-hike path as the economy shows signs of a strain from its recent policy actions.
The outcome from the Fed's two-day meeting is scheduled for Wednesday, with money market participants seeing a 93% chance of a 50-basis-point rate hike to 4.25-4.50%, and a terminal rate of 4.96% by May 2023. FEDWATCH
The numbers will come on the heels of November's slightly higher-than-expected producer price reading on Friday, amid a jump in the costs of services, but the trend is moderating, with annual inflation at the factory gate posting its smallest increase in 1-1/2 years.
"There's certainly the concern that potentially high inflation could create the perception that the Fed might be more aggressive in its tightening," said Randy Frederick, managing director of trading and derivatives for Charles Schwab in Austin, Texas.
"The market is certain that we're going to get half a point hike, but I think it (economic data) does change the prospect of what might happen further down the road."
Treasury Secretary Janet Yellen on Sunday forecast a substantial reduction in U.S. price pressure in 2023, while also acknowledging a risk of a recession.
Wall Street's main indexes have slumped this year on fears of aggressive rate hikes triggering a U.S. recession. The Nasdaq and the S&P 500 .SPX have fallen 29.5% and 17.2%, respectively, so far in 2022 and are on track for their worst yearly performance since 2008.
At 10:05 a.m. ET, the Dow Jones Industrial Average .DJI was up 165.64 points, or 0.49%, at 33,642.10, the S&P 500 .SPX was up 12.74 points, or 0.32%, at 3,947.12, and the Nasdaq Composite .IXIC was up 28.94 points, or 0.26%, at 11,033.56.
Seven out of the 11 major S&P 500 sector indexes were in the green, led by energy .SPNY and technology stocks .SPLRCT.
Most rate-sensitive shares including Apple Inc AAPL.O, Nvidia Corp NVDA.O and Alphabet Inc GOOGL.O gained between 0.1% and 1.0%.
Among other stocks, Rivian Automotive Inc RIVN.O lost 2.7% after the company paused its partnership discussions with Mercedes-Benz Vans on electric van production in Europe.
Biotech firm Horizon Therapeutics Plc HZNP.O jumped 14.6% following a buyout offer from Amgen Inc AMGN.O, while Coupa Software Inc COUP.O surged 26.7% on a media report of Thoma Bravo LLC being in advanced talks for an acquisition.
Advancing issues outnumbered decliners by a 1.08-to-1 ratio on the NYSE and 1.01-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week highs and two new lows, while the Nasdaq recorded 29 new highs and 136 new lows.
(Reporting by Shubham Batra, Ankika Biswas and Johann M Cherian in Bengaluru; Editing by Vinay Dwivedi and Anil D'Silva)
((Shubham.Batra@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Most rate-sensitive shares including Apple Inc AAPL.O, Nvidia Corp NVDA.O and Alphabet Inc GOOGL.O gained between 0.1% and 1.0%. By Ankika Biswas and Johann M Cherian Dec 12 (Reuters) - U.S. stock indexes kicked off an eventful week on a positive note as investors braced for inflation data and the Federal Reserve's policy decision amid worries of a looming recession. FEDWATCH The numbers will come on the heels of November's slightly higher-than-expected producer price reading on Friday, amid a jump in the costs of services, but the trend is moderating, with annual inflation at the factory gate posting its smallest increase in 1-1/2 years.
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Most rate-sensitive shares including Apple Inc AAPL.O, Nvidia Corp NVDA.O and Alphabet Inc GOOGL.O gained between 0.1% and 1.0%. By Ankika Biswas and Johann M Cherian Dec 12 (Reuters) - U.S. stock indexes kicked off an eventful week on a positive note as investors braced for inflation data and the Federal Reserve's policy decision amid worries of a looming recession. Much of the boost to Wall Street's main indexes on Monday came from a 2.1% rise in shares of Microsoft Corp MSFT.O, following the software maker's plans to buy a 4% stake in the London Stock Exchange Group LSEG.L.
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Most rate-sensitive shares including Apple Inc AAPL.O, Nvidia Corp NVDA.O and Alphabet Inc GOOGL.O gained between 0.1% and 1.0%. By Ankika Biswas and Johann M Cherian Dec 12 (Reuters) - U.S. stock indexes kicked off an eventful week on a positive note as investors braced for inflation data and the Federal Reserve's policy decision amid worries of a looming recession. Much of the boost to Wall Street's main indexes on Monday came from a 2.1% rise in shares of Microsoft Corp MSFT.O, following the software maker's plans to buy a 4% stake in the London Stock Exchange Group LSEG.L.
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Most rate-sensitive shares including Apple Inc AAPL.O, Nvidia Corp NVDA.O and Alphabet Inc GOOGL.O gained between 0.1% and 1.0%. By Ankika Biswas and Johann M Cherian Dec 12 (Reuters) - U.S. stock indexes kicked off an eventful week on a positive note as investors braced for inflation data and the Federal Reserve's policy decision amid worries of a looming recession. Much of the boost to Wall Street's main indexes on Monday came from a 2.1% rise in shares of Microsoft Corp MSFT.O, following the software maker's plans to buy a 4% stake in the London Stock Exchange Group LSEG.L.
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18039.0
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2022-12-12 00:00:00 UTC
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2 Stocks to Buy That Might Beat a Bear Market
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AAPL
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https://www.nasdaq.com/articles/2-stocks-to-buy-that-might-beat-a-bear-market
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nan
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nan
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Long-term investors usually aim to buy stocks that can beat not only the S&P 500, but also the bear markets that tend to appear every few years. While investors should never "set it and forget it," they can often find stocks that have survived bear markets and emerged stronger when stocks recover.
Many of these stocks will deliver such returns by offering goods and services that stay in demand regardless of economic conditions. Two examples of this approach are Chipotle Mexican Grill (NYSE: CMG) and Broadcom (NASDAQ: AVGO).
Chipotle
Chipotle has successfully met a key customer demand that has eluded most of its competitors -- healthy fast food. It has built an international chain of more than 3,100 restaurants on the philosophy that real food is better for the planet and the customer. It does not serve food with artificial flavors, colors, or preservatives and bans the use of freezers and can openers.
As the company has planned to add between 235 and 250 new locations this year, its market continues to expand. It now believes the U.S. can support 7,000 domestic locations.
Additionally, it has yet to develop its potential internationally. It operates only 29 restaurants in Canada and 21 in Europe. Considering that both Starbucks and McDonald's have opened thousands of locations in both Europe and Canada, Chipotle could drive massive growth for years as it expands its focus more widely around the world.
But for now, the continued emphasis on the U.S. has served the company well. Chipotle's revenue of almost $6.5 billion in the first three quarters of 2022 surged 16% compared with the same period last year. This led to $675 million in earnings for the same timeframe, 30% more than the first three quarters of 2021. Keeping expense growth in check amid rising inflation helped to boost Chipotle's bottom line.
The stock has remained flat amid the bear market, helping to reduce the price-to-earnings (P/E) ratio to 54. While that is rich compared to peers, Chipotle has long traded at a premium. As long as its approach of fast, natural food spreads to more markets, this market-crushing stock could continue on its path for a long time to come.
Broadcom
As a company that provides custom semiconductors and enterprise software to businesses, Broadcom is not well-known to consumers. However, considering its competitive advantages and growth, investors should pay closer attention.
Specifically, prospective shareholders should take note of its approach to its customers. Broadcom locates engineers near its largest clients, allowing it to gain a deeper understanding of customer needs and create products to address those issues. It then spends heavily on research and development (R&D), devoting approximately $4.9 billion to R&D over the last four quarters alone.
A few Broadcom products even have direct exposure to the public. One of the more notable examples is the Wi-Fi hotspot built into Apple's iPhone. This allows for internet coverage when it is not otherwise available.
Broadcom is also diversifying. It focused exclusively on semiconductors until acquisitions placed it in the enterprise software market starting in 2018. Assuming it completes its proposed merger with VMWare, the enterprise software segment will make up nearly half of the company's revenue.
That revenue continues to grow. Broadcom reported more than $33 billion in fiscal 2022 (which ended Oct. 30), 21% higher than in fiscal 2021. That led to a 75% increase in net income during the period to about $11.5 billion, as the company reduced operating expenses by 5% during that time.
Investors should also take note of the fiscal 2023 dividend. At $18.40 per share, it returns 3.3%. It also increased 12% versus fiscal 2022 and has risen at least once every year since Broadcom (then known as Avago) introduced payouts in fiscal 2011. Additionally, the $16 billion in free cash flow in fiscal 2022 covered the $7 billion in dividend costs during that time, making the recent increase sustainable.
That may have also helped Broadcom stock hold its value well over the last year. And at a 24 P/E ratio, the valuation is coming off a multi-year low, likely signifying an opportune time to buy the semiconductor stock.
10 stocks we like better than Chipotle Mexican Grill
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 Chipotle Mexican Grill 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
Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Chipotle Mexican Grill, and Starbucks. The Motley Fool recommends Broadcom and VMware and recommends the following options: long March 2023 $120 calls on Apple, short January 2023 $92.50 puts on Starbucks, 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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Considering that both Starbucks and McDonald's have opened thousands of locations in both Europe and Canada, Chipotle could drive massive growth for years as it expands its focus more widely around the world. Keeping expense growth in check amid rising inflation helped to boost Chipotle's bottom line. Broadcom locates engineers near its largest clients, allowing it to gain a deeper understanding of customer needs and create products to address those issues.
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Considering that both Starbucks and McDonald's have opened thousands of locations in both Europe and Canada, Chipotle could drive massive growth for years as it expands its focus more widely around the world. The Motley Fool has positions in and recommends Apple, Chipotle Mexican Grill, and Starbucks. The Motley Fool recommends Broadcom and VMware and recommends the following options: long March 2023 $120 calls on Apple, short January 2023 $92.50 puts on Starbucks, and short March 2023 $130 calls on Apple.
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As long as its approach of fast, natural food spreads to more markets, this market-crushing stock could continue on its path for a long time to come. 10 stocks we like better than Chipotle Mexican Grill When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Will Healy has no position in any of the stocks mentioned.
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As the company has planned to add between 235 and 250 new locations this year, its market continues to expand. That may have also helped Broadcom stock hold its value well over the last year. The Motley Fool has positions in and recommends Apple, Chipotle Mexican Grill, and Starbucks.
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18040.0
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2022-12-12 00:00:00 UTC
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Apple (AAPL) to Launch HomePod Mini in More Countries Globally
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-to-launch-homepod-mini-in-more-countries-globally
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nan
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Apple AAPL recently announced that it is rolling out its HomePod minis globally in new countries. It will start selling Apple HomePod mini in countries like Finland, Norway and Sweden from Dec 13. The company will sell its HomePod mini in South Africa from Dec 19 and other countries will follow in fiscal 2023.
Apple stated that it will price HomePod mini at €109, while it will be 1,249 kroner in Norway and Sweden. However, the price may vary for sellers across South Africa.
Moreover, the availability HomePod mini globally across Europe and Africa is expected to improve this Zacks Rank #3 (Hold) company’s competitive position in the smart speaker space. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The smart speaker market has been dominated by the Echo devices from Amazon AMZN and Alphabet’s GOOGL Google Home.
Markedly, Amazon’s Echo dot device, the company’s most popular smart speaker with Alexa, costs around $24.64 and is one of the cheapest smart speakers in the market currently. The Google Nest Mini, which is also priced similarly to Amazon’s Echo dot, has Apple beat in terms of pricing for almost a similar product.
Apple is operating in a highly competitive space where companies like Amazon and Alphabet are vying for market share with aggressive pricing competition, frequent introduction of products and services and easy availability of products in the market, which users can use to repair their products comfortably.
Although Apple HomePod mini is priced higher than its peers, it is expected to attract new users as it will provide services such as Apple Music, podcasts, radio stations from iHeartRadio, radio.com and TuneIn.
Also, the increasing number of smart homes is driving demand for smart speakers, which bodes well for the iPhone-maker’s Homepod mini. Per MarketAndMarkets data, the global smart speaker market is expected to hit $7.1 billion by 2025.
Apple Inc. Price and Consensus
Apple Inc. price-consensus-chart | Apple Inc. Quote
With the launch of HomePods globally, Apple is banking on its strong Wearables, Home and Accessories sales growth in the coming quarters. In the fourth quarter of 2022, its Wearables, Home and Accessories sales increased 9.8% year over year to $9.65 billion and accounted for 10.7% of total sales. The figure beat the Zacks Consensus Estimate by 4.46% and our estimate of $7.96 billion.
Apple also nearly doubled the number of service centers worldwide. Globally, there are more than 5,000 Apple-authorized service providers with above 100,000 active technicians. This is expected to attract more customers to its products like HomePod mini.
Apple Widens Service Menu to Drive Product Sales
Apple’s prospects are expected to suffer from disruptions at its Chinese partner Foxconn’s factory in Zhengzhou. We expect AAPL to ship roughly 70 million iPhones in the first quarter of fiscal 2023. The company expects year-over-year revenue growth to decelerate in the fiscal first quarter compared with the fiscal fourth quarter due to unfavorable forex.
However, the broader Computer and technology industry is reeling from the effects of macroeconomic turmoil like rising inflation and recession caused by rising interest rates. The current market volatility affected the revenue-generating capabilities of major tech companies like Meta Platforms META.
Meta has seen its stock lose 51.5% in the year-to-date period compared with the Zacks Internet – Software industry’s decline of 48.3%.
The slowing economy is likely to trigger cuts in ad spending, which will hurt the revenues of ad-driven Internet stocks like Meta, impacting their bottom-line growth. This downtrend is reflected in META's share price movement.
The Zacks Computer and Technology sector has plunged 33.2% year to date while Apple shares have done relatively well, down 19% over the same period.
Apple’s Services and Wearables businesses are expected to drive top-line growth in fiscal 2023 and beyond. Services revenues are expected to witness a CAGR of 8.36% between fiscal 2021 and fiscal 2024.
Although Apple’s business primarily runs around its flagship iPhone, the Services portfolio has emerged as the company’s new cash cow. It currently has more than 900 million paid subscribers across its Services portfolio. The plethora of Apple Services available across its smart speaker for homes is expected to attract new customers for its products and drive its market share amid stiff competition.
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL recently announced that it is rolling out its HomePod minis globally in new countries. We expect AAPL to ship roughly 70 million iPhones in the first quarter of fiscal 2023. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL recently announced that it is rolling out its HomePod minis globally in new countries. We expect AAPL to ship roughly 70 million iPhones in the first quarter of fiscal 2023.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL recently announced that it is rolling out its HomePod minis globally in new countries. We expect AAPL to ship roughly 70 million iPhones in the first quarter of fiscal 2023.
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Apple AAPL recently announced that it is rolling out its HomePod minis globally in new countries. We expect AAPL to ship roughly 70 million iPhones in the first quarter of fiscal 2023. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here.
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18041.0
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2022-12-12 00:00:00 UTC
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Apple's Japan investment crosses $100 bln, CEO Cook visits chip epicentre
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AAPL
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https://www.nasdaq.com/articles/apples-japan-investment-crosses-%24100-bln-ceo-cook-visits-chip-epicentre
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nan
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nan
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By Kantaro Komiya
TOKYO, Dec 13 (Reuters) - Apple Inc AAPL.O said on Tuesday it had invested more than $100 billion in its Japanese supply network over the last five years, as its Chief Executive Officer Tim Cook visited the epicentre of the country's semiconductor industry.
Cook said in a Monday tweet he visited Kumamoto prefecture in southwestern Japan, home to factories of many semiconductor and leading technology firms, including one under construction by Taiwan Semiconductor Manufacturing Co (TSMC) 2330.TW.
In a statement, Apple said it had boosted its spending on suppliers in Japan by more than 30% since 2019, with a network spanning nearly 1,000 companies, from multi-nationals to family-run businesses.
It called Sony Group Corp 6758.T one of its biggest suppliers in Japan for providing camera sensors for iPhone products, while also mentioning medium- and small enterprises including textile firm Inoue Ribbon Industry Co and mold manufacturer Shincron Co as partners.
Apple said 29 Japanese suppliers have committed to converting to renewable energy for Apple-related businesses by 2030, including Sony, Murata Manufacturing Co 6981.T, Keiwa Inc 4251.T, Fujikura 5803.T and Sumitomo Electric Industries 5802.T.
($1 = 137.6700 yen)
(Reporting by Kantaro Komiya; Editing by Chang-Ran Kim and Rashmi Aich)
((Kantaro.Komiya@thomsonreuters.com; Twitter: @kantarokomiya;))
The views and 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 Kantaro Komiya TOKYO, Dec 13 (Reuters) - Apple Inc AAPL.O said on Tuesday it had invested more than $100 billion in its Japanese supply network over the last five years, as its Chief Executive Officer Tim Cook visited the epicentre of the country's semiconductor industry. It called Sony Group Corp 6758.T one of its biggest suppliers in Japan for providing camera sensors for iPhone products, while also mentioning medium- and small enterprises including textile firm Inoue Ribbon Industry Co and mold manufacturer Shincron Co as partners. Apple said 29 Japanese suppliers have committed to converting to renewable energy for Apple-related businesses by 2030, including Sony, Murata Manufacturing Co 6981.T, Keiwa Inc 4251.T, Fujikura 5803.T and Sumitomo Electric Industries 5802.T.
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By Kantaro Komiya TOKYO, Dec 13 (Reuters) - Apple Inc AAPL.O said on Tuesday it had invested more than $100 billion in its Japanese supply network over the last five years, as its Chief Executive Officer Tim Cook visited the epicentre of the country's semiconductor industry. Cook said in a Monday tweet he visited Kumamoto prefecture in southwestern Japan, home to factories of many semiconductor and leading technology firms, including one under construction by Taiwan Semiconductor Manufacturing Co (TSMC) 2330.TW. Apple said 29 Japanese suppliers have committed to converting to renewable energy for Apple-related businesses by 2030, including Sony, Murata Manufacturing Co 6981.T, Keiwa Inc 4251.T, Fujikura 5803.T and Sumitomo Electric Industries 5802.T.
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By Kantaro Komiya TOKYO, Dec 13 (Reuters) - Apple Inc AAPL.O said on Tuesday it had invested more than $100 billion in its Japanese supply network over the last five years, as its Chief Executive Officer Tim Cook visited the epicentre of the country's semiconductor industry. Cook said in a Monday tweet he visited Kumamoto prefecture in southwestern Japan, home to factories of many semiconductor and leading technology firms, including one under construction by Taiwan Semiconductor Manufacturing Co (TSMC) 2330.TW. It called Sony Group Corp 6758.T one of its biggest suppliers in Japan for providing camera sensors for iPhone products, while also mentioning medium- and small enterprises including textile firm Inoue Ribbon Industry Co and mold manufacturer Shincron Co as partners.
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By Kantaro Komiya TOKYO, Dec 13 (Reuters) - Apple Inc AAPL.O said on Tuesday it had invested more than $100 billion in its Japanese supply network over the last five years, as its Chief Executive Officer Tim Cook visited the epicentre of the country's semiconductor industry. Cook said in a Monday tweet he visited Kumamoto prefecture in southwestern Japan, home to factories of many semiconductor and leading technology firms, including one under construction by Taiwan Semiconductor Manufacturing Co (TSMC) 2330.TW. In a statement, Apple said it had boosted its spending on suppliers in Japan by more than 30% since 2019, with a network spanning nearly 1,000 companies, from multi-nationals to family-run businesses.
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18042.0
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2022-12-12 00:00:00 UTC
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Here Are the 5 Big Moves Warren Buffett Made in 2022
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https://www.nasdaq.com/articles/here-are-the-5-big-moves-warren-buffett-made-in-2022
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While there is much more to Warren Buffett's conglomerate Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) than mere stock-picking, Berkshire's public equity portfolio does get a lot of attention. That's not surprising, as Warren Buffett is widely regarded by many as the best stock-picker of all time.
Moreover, 2022's bear market may have refocused investors on value investing principles Buffett has espoused his entire life. That makes his moves amid the market chaos of 2022 all the more interesting.
After displaying lots of patience over the past few years, Buffett made five relatively big stock buys in 2022 as markets fell. Here are Buffett's picks and why he may have picked these names specifically.
Buffett bets big on oil and gas
Buffett was most active in the first quarter as the markets violently corrected due to inflation fears and Russia's invasion of Ukraine, the latter likely spurring Buffett to make tremendous bets on the oil sector, specifically in Chevron (NYSE: CVX) and Occidental Petroleum (NYSE: OXY).
Of course, one could say Buffett only increased his existing positions in both stocks. Berkshire already owned some Chevron stock and $10 billion in Occidental preferred stock, with warrants to purchase an extra 83.86 million shares.
However, the magnitude of the buying was enormous. Buffett more than quadrupled his Chevron stake, making it Berkshire's fourth-largest stock position, behind only Apple, Bank of America, and American Express -- and it overtook Amex later in the year. Occidental quickly became the eighth-largest, the sixth-largest if you include Berkshire's existing preferred stock.
The speed and magnitude of Buffett's buys, as well as the timing in the first quarter, likely mean the big bet on oil and gas had to do with Russia's invasion of Ukraine. Of course, the huge spike in oil prices following the invasion has since faded to the point that oil prices are now slightly negative for the year. That's thanks to the government's Strategic Petroleum Reserve releases and the Fed's aggressive interest rate hikes. Still, Buffett continued to add to these positions throughout the year.
The oil sector has consolidated greatly after a decade of low returns brought on by the supply increases from the shale revolution. Perhaps Buffett believes more measured supply growth going forward will keep prices high enough for long enough that the largest players could remain highly profitable for many years.
So, why Chevron and Occidental specifically? Well, Buffett was already familiar with these two companies and their management teams, and each company is large enough to move the needle for a portfolio as big as Berkshire's.
Both stocks are also relatively defensive in that they are diversified majors -- with conventional, deep-water, and shale exposure -- with oil and natural gas production assets, as well as midstream and downstream operations in chemical processing and refineries. In addition, both companies are investing in new low- and no-carbon technologies, including carbon capture.
While Buffett hasn't commented on these positions in much detail, he clearly likes management and has said he has a positive long-term outlook on oil and gas prices. With the start of the Ukraine war, Buffett may have concluded that Berkshire's diversified businesses lacked enough exposure to oil and gas prices, which have the ability to harm the economy -- and, therefore, the rest of Berkshire's portfolio -- should they move materially higher.
Both companies also have the means to invest in next-gen technologies like carbon capture, which could extend their longevity beyond the point that oil demand goes into long-term decline, whenever that is.
Merger arbitrage with Activision Blizzard
Also in the first quarter, Buffett greatly increased Berkshire's small nominal position in Activision Blizzard (NASDAQ: ATVI). Interestingly, Berkshire had already owned some Activision stock; yet, unlike Chevron or Occidental, one of Buffett's younger lieutenants, Todd Combs or Ted Wechsler, is likely who bought the initial stake in 2021.
However, in January, tech giant Microsoft offered to buy the video game studio for $95 per share, or $69 billion.
While Activision's stock jumped on the news, the stock never made it higher than the high-$70 to low-$80 range during the first quarter, about 20% under the acquisition price. That likely reflected skepticism over the deal closing, which is not unfounded. After all, just last week, the Federal Trade Commission sued to block the deal. Now the process will have to go through the courts, and the outcome is highly uncertain.
So, Buffett is playing merger arbitrage here, meaning investors buy an acquisition target trading below the acquisition price, hoping the deal will go through. Given the potential for 20% gains within a short time, that was undoubtedly attractive, especially in the context of a bear market.
The danger when playing merger arbitrage, obviously, is that if the deal doesn't go through, the target company's stock can fall significantly. Some call merger arbitrage the practice of "bending down to pick up a quarter in front of a bulldozer."
However, since Buffett's lieutenants already liked Activision enough to buy the stock last year, when the stock was in the mid-$60 range, Buffett likely thought the downside was manageable if the deal didn't go through. After all, if one of his younger proteges thought the stock was a good buy in the $60s, their estimate of intrinsic value was likely at least as high as Buffett's first-quarter purchase price in the high $70-$80 range.
Of note, Activision's all-time high in early 2021 was just above $104 -- above the acquisition price. In addition, if the deal is scrapped, Microsoft will have to pay Activision a $3 billion breakup fee -- about $3.83 per share.
Image source: The Motley Fool.
HP, Inc.
Rounding out Buffett's very active first quarter was a somewhat surprising purchase of PC and printer maker HP, Inc. (NYSE: HP), which became Berkshire's 12th-largest position in the first quarter. This pick was very interesting as Buffett has long stayed away from technology, and HP's stock is not exactly a Wall Street favorite.
While HP does have leading market share in the physical printing space, that appears to be an industry in a long, slow decline. HP also has strong market share in PCs, but this industry is also low-growth, at best. In fact, interest rates have risen, and consumers are pulling back on discretionary purchases, resulting in the PC sector experiencing its worst downturn in modern history, coming off the boom times of the pandemic.
It's likely Buffett's preference for low-priced value stocks that encouraged him to buy HP, combined with HP's ability to repurchase a lot of its shares. At the time of his purchase, HP was trading at just over six times earnings.
HPQ PE Ratio data by YCharts. PE ratio = price-to-earnings ratio.
Of note, HP has repurchased about $10.5 billion worth of its stock over just the past two years. For context, HP's entire market cap today is just $27.7 billion! The ability to retire such a meaningful amount of stock quickly was likely music to Buffett's ears.
However, Buffett likely didn't anticipate a PC downturn as bad as this, and HP's stock has declined since the purchase. Moreover, management recently said it would probably decrease share repurchases in the near term because it wants to keep its balance sheet healthy during this PC industry decline and potential recession.
Still, HP should continue generating solid free cash flow for years, even if its end markets are relatively low- or no-growth segments. The company just closed the $3.3 billion acquisition of Poly, giving HP some exposure to the higher-growth peripherals and hybrid work tools segment. So, the Poly buy may give HP's results an extra jolt going forward.
Growing net income isn't the only way to grow earnings per share (EPS); repurchasing stock at low valuations can also boost EPS if done in significant quantities. That's likely what Buffett saw in early 2022 -- even if the timing wasn't ideal.
Taiwan Semiconductor Manufacturing
Finally, perhaps the biggest surprise of the year was Buffett buying into the semiconductor space for the first time, buying up over $4 billion worth of key Apple supplier Taiwan Semiconductor Manufacturing Corporation (NYSE: TSM) in the third quarter. The big buy made this semiconductor foundry stock Berkshire's 10th-largest position.
While the TSMC purchase was surprising because Buffett had never bought a semiconductor stock before, it's also not that surprising, given TSMC's business qualities. TSMC is a dominant company that makes over half the world's chips, and its technology lead in manufacturing the world's most advanced nodes, with close to 90% market share, has catapulted it ahead of competitors.
The company has also demonstrated one of Buffett's favorite qualities of pricing power, as TSMC was able to raise prices to customers throughout 2022. TSMC has even been able to raise quotes on customers as powerful as Apple, for which TSMC makes the Bionic iPhone processor and Apple's M-series laptop processors. The ability to raise its prices with Apple, Buffett's biggest holding, likely got Buffett interested in this indispensable industry supplier.
TSMC fell along with the rest of the semiconductor sector this year and traded down to a very reasonable PE ratio in the mid-teens during Q3 when tensions between Taiwan and China came to a near-term head. Buffett likely saw this as a great price for a dominant manufacturer in the long-term growth industry of semiconductors and bought in.
Summing up Buffett's buys
Given the widespread fears that we are heading into a recession, one wouldn't necessarily think to buy into the energy and technology hardware sectors, each of which has proven to be quite cyclical. On the other hand, for those with a longer time horizon, which Buffett has, this may be the perfect time to buy into these sectors.
After all, the market is forward-looking, and recession fears have been present since the beginning of 2022. Since then, these companies have traded at very low valuations at various times throughout the year, likely factoring in an economic downturn, at least to some extent.
Ever the long-term oriented and price-conscious investor, Buffett's bets on oil and gas, video games, semiconductors, and PCs make much more sense when looking out past the next six to 12 months.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Billy Duberstein has positions in Apple, Bank of America, Berkshire Hathaway, Microsoft, and Taiwan Semiconductor Manufacturing and has the following options: short January 2023 $210 calls on Apple. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Berkshire Hathaway, Microsoft, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Bank of America and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Both stocks are also relatively defensive in that they are diversified majors -- with conventional, deep-water, and shale exposure -- with oil and natural gas production assets, as well as midstream and downstream operations in chemical processing and refineries. Interestingly, Berkshire had already owned some Activision stock; yet, unlike Chevron or Occidental, one of Buffett's younger lieutenants, Todd Combs or Ted Wechsler, is likely who bought the initial stake in 2021. In fact, interest rates have risen, and consumers are pulling back on discretionary purchases, resulting in the PC sector experiencing its worst downturn in modern history, coming off the boom times of the pandemic.
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Taiwan Semiconductor Manufacturing Finally, perhaps the biggest surprise of the year was Buffett buying into the semiconductor space for the first time, buying up over $4 billion worth of key Apple supplier Taiwan Semiconductor Manufacturing Corporation (NYSE: TSM) in the third quarter. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Berkshire Hathaway, Microsoft, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Bank of America and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on Apple.
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Buffett bets big on oil and gas Buffett was most active in the first quarter as the markets violently corrected due to inflation fears and Russia's invasion of Ukraine, the latter likely spurring Buffett to make tremendous bets on the oil sector, specifically in Chevron (NYSE: CVX) and Occidental Petroleum (NYSE: OXY). However, since Buffett's lieutenants already liked Activision enough to buy the stock last year, when the stock was in the mid-$60 range, Buffett likely thought the downside was manageable if the deal didn't go through. Taiwan Semiconductor Manufacturing Finally, perhaps the biggest surprise of the year was Buffett buying into the semiconductor space for the first time, buying up over $4 billion worth of key Apple supplier Taiwan Semiconductor Manufacturing Corporation (NYSE: TSM) in the third quarter.
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At the time of his purchase, HP was trading at just over six times earnings. That's right -- they think these 10 stocks are even better buys. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Berkshire Hathaway, Microsoft, and Taiwan Semiconductor Manufacturing.
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18043.0
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2022-12-12 00:00:00 UTC
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4 Stocks Warren Buffett Is Almost Certain to Buy in 2023
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https://www.nasdaq.com/articles/4-stocks-warren-buffett-is-almost-certain-to-buy-in-2023
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If you've ever wondered why Wall Street professionals pay close attention to billionaire Warren Buffett's investment activity, just take a closer look at his track record.
Since becoming CEO of conglomerate Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) in 1965, he's delivered an aggregate return of 3,641,613% for the company's Class A shares (BRK.A), through Dec. 31, 2021. Meanwhile, including dividends paid, the S&P 500 has gained 30,209% over the same period. Berkshire's stock could lose 99% tomorrow and Buffett would still be handily outperforming the broader market.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
While it's easy to look in the rearview mirror and track what the Oracle of Omaha has been buying and selling thanks to 13F filings, it's a bit more of a guessing game trying to figure out what he might be purchasing in an upcoming quarter or year. Nevertheless, with a number of clues at my disposal, it won't stop me from trying.
What follows are four stocks Warren Buffett is almost certain to buy in 2023.
Apple
The first stock Warren Buffett is likely to buy in 2023 is tech stock Apple (NASDAQ: AAPL). Even though Apple already accounts for close to 40% of Berkshire Hathaway's invested assets, the Oracle of Omaha has been clear in the past that it represents one of his company's "four giants," and he's been more than willing to add on any significant share price weakness.
With interest rates rising rapidly and the interest rate yield curve facing its biggest inversion in decades, the winds of recessions are blowing hard. If the U.S. economy were to enter a recession in 2023, cyclical companies like Apple would undoubtedly feel the sting. On the bright side, it would give Buffett an opportunity to add.
One of the greatest things about Apple, and a key reason it's the top Buffett holding, is its capital-return program. Aside from doling out one of the largest nominal-dollar dividends on the planet, Apple has repurchased $554 billion worth of its common stock since the beginning of 2013. Without having to lift a finger, Berkshire Hathaway's stake in Apple has continued to grow.
Apple CEO Tim Cook is also overseeing a steady transition to subscription services that'll make the company operationally stronger. Subscriptions generate predictable cash flow and high margins, which will help Apple better navigate the revenue fluctuations it contends with during physical product replacement cycles.
Occidental Petroleum
After purchasing more than 194 million shares of oil and gas stock Occidental Petroleum (NYSE: OXY) in 2022, you might be under the impression that Warren Buffett has more than enough. However, in August, Berkshire received authorization from the Federal Energy Regulatory Commission to up its stake in Occidental to as much as 50%. Berkshire's ownership stake in Occidental currently stands at 21.4%, and it's a pretty clear indication that Buffett and his team aren't done buying.
Prior to 2022, energy stocks had never accounted for more than 8.9% of Buffett's invested assets. This year, they've bolted to Berkshire's third-largest sector (13% of invested assets). This likely has to do with the expectation crude oil and natural gas prices will remain above average for some time.
There are two key factors adversely impacting the global energy supply chain. First, Russia invaded Ukraine, which puts Europe's energy needs into question. The second issue is energy companies reduced their capital investments during the pandemic. Without any way to quickly ramp oil and gas supply, both energy commodities could remain elevated for years.
Buffett's fascination with Occidental Petroleum might also have to do with its rapid balance sheet improvement. Thanks to significantly higher oil and gas prices and much-improved operating cash flow, Occidental's net debt has fallen from $35.4 billion to $20.5 billion over the past five quarters (15 months). An improved balance sheet could lead to a higher valuation.
Image source: Getty Images.
Paramount Global
A third stock Warren Buffett seems almost certain to buy in 2023 is media company Paramount Global (NASDAQ: PARA). Despite an already sizable stake, Berkshire purchased close to 12.8 million additional shares of Paramount in the latest quarter.
Historically, the Oracle of Omaha has been a fan of owning media stocks and cyclical companies reliant on advertising. Even though a company like Paramount is susceptible to weakness during recessions as ad spending falls, periods of economic expansion last far longer than recessions. Over time, Buffett has found that buying media stocks during brief downturns is a smart move. That might be his thinking with Paramount Global.
Another reason Buffett and his team might dip their toes further into the pond with Paramount is its fast-growing streaming platform. Even after halting streaming services to Russia, Paramount's direct-to-consumer segment recognized 59% revenue growth in the third quarter. With roughly 67 million (and growing) global subscribers, Paramount should enjoy predictable sales growth and improving ad-pricing power.
Paramount's entertainment segment has shown signs of life, too. Despite domestic box office revenue disappointing as a whole in 2022, Top Gun: Maverick absolutely crushed it in theaters. Paramount's theatrical sales are up 457% through the first nine months of 2022 when compared to the same period last year. There's plenty of momentum in Paramount Global's sails from a streaming, movie, and advertising standpoint over the long run.
Berkshire Hathaway
The fourth and final stock I'm most confident that Warren Buffett will be buying in 2023 is shares of his own company: Berkshire Hathaway.
Prior to mid-July 2018, buying back Berkshire Hathaway stock could only be undertaken if shares of the company fell to or below 120% of book value (i.e., no more than 20% above book value). For more than a half-decade leading up to mid-July 2018, not a single share was repurchased, because Berkshire Hathaway stock never fell below this preset threshold.
However, things changed on July 17, 2018. Berkshire Hathaway's board passed new buyback measures that allowed the Oracle of Omaha and executive vice chairman Charlie Munger to repurchase stock in the company as long as:
The Berkshire Hathaway balance sheet held at least $30 billion in combined cash and U.S. Treasuries; and
Both Buffett and Munger agreed that shares were trading at an intrinsic discount.
Since the board passed this measure a little over four years ago, Buffett and Munger have overseen the repurchase of $63.1 billion worth of Berkshire Hathaway stock. With the S&P 500 in a bear market and the U.S. economy signaling a possible recession in 2023, it seems all but certain that buybacks will continue.
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
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 The first stock Warren Buffett is likely to buy in 2023 is tech stock Apple (NASDAQ: AAPL). While it's easy to look in the rearview mirror and track what the Oracle of Omaha has been buying and selling thanks to 13F filings, it's a bit more of a guessing game trying to figure out what he might be purchasing in an upcoming quarter or year. Even though Apple already accounts for close to 40% of Berkshire Hathaway's invested assets, the Oracle of Omaha has been clear in the past that it represents one of his company's "four giants," and he's been more than willing to add on any significant share price weakness.
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Apple The first stock Warren Buffett is likely to buy in 2023 is tech stock Apple (NASDAQ: AAPL). Occidental Petroleum After purchasing more than 194 million shares of oil and gas stock Occidental Petroleum (NYSE: OXY) in 2022, you might be under the impression that Warren Buffett has more than enough. Thanks to significantly higher oil and gas prices and much-improved operating cash flow, Occidental's net debt has fallen from $35.4 billion to $20.5 billion over the past five quarters (15 months).
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Apple The first stock Warren Buffett is likely to buy in 2023 is tech stock Apple (NASDAQ: AAPL). Berkshire Hathaway The fourth and final stock I'm most confident that Warren Buffett will be buying in 2023 is shares of his own company: Berkshire Hathaway. Berkshire Hathaway's board passed new buyback measures that allowed the Oracle of Omaha and executive vice chairman Charlie Munger to repurchase stock in the company as long as: The Berkshire Hathaway balance sheet held at least $30 billion in combined cash and U.S. Treasuries; and Both Buffett and Munger agreed that shares were trading at an intrinsic discount.
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Apple The first stock Warren Buffett is likely to buy in 2023 is tech stock Apple (NASDAQ: AAPL). Berkshire Hathaway CEO Warren Buffett. What follows are four stocks Warren Buffett is almost certain to buy in 2023.
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2022-12-12 00:00:00 UTC
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China re-opens more areas at risk for COVID spread as lockdowns ease
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https://www.nasdaq.com/articles/china-re-opens-more-areas-at-risk-for-covid-spread-as-lockdowns-ease
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BEIJING, Dec 12 (Reuters) - China has slashed the number of locations deemed at high risk of wider COVID outbreaks, re-opening locked down areas including one hosting a key factory of an Apple supplier.
The number of high-risk areas tumbled to around 4,500 on Monday, official data showed, down 85% from more than 30,000 on Dec. 7 before the latest policy shift was announced.
A district in the city of Zhengzhou in central China where iPhone supplier Foxconn 2317.TW has a vast facility declared on Monday that it had released all high-risk zones from lockdown.
Last month, thousands of workers fled the Foxconn facility on fears of COVID lockdowns, curtailing production.
High-risk areas without new infections for five consecutive days should be released from lockdown, according to one of China's latest protocols released on Dec. 7.
Local authorities have also been warned not to arbitrarily expand the scope of lockdowns or prolong them.
Economists say the China's shift to live with COVID will reduce disruptive lockdowns that have dragged on the economy particularly this year because of the high transmissibility of the Omicron variant of the virus.
(Reporting by Ryan Woo and Albee Zhang; Editing by Christian Schmollinger)
((Ryan.Woo@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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BEIJING, Dec 12 (Reuters) - China has slashed the number of locations deemed at high risk of wider COVID outbreaks, re-opening locked down areas including one hosting a key factory of an Apple supplier. A district in the city of Zhengzhou in central China where iPhone supplier Foxconn 2317.TW has a vast facility declared on Monday that it had released all high-risk zones from lockdown. Economists say the China's shift to live with COVID will reduce disruptive lockdowns that have dragged on the economy particularly this year because of the high transmissibility of the Omicron variant of the virus.
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The number of high-risk areas tumbled to around 4,500 on Monday, official data showed, down 85% from more than 30,000 on Dec. 7 before the latest policy shift was announced. A district in the city of Zhengzhou in central China where iPhone supplier Foxconn 2317.TW has a vast facility declared on Monday that it had released all high-risk zones from lockdown. Last month, thousands of workers fled the Foxconn facility on fears of COVID lockdowns, curtailing production.
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BEIJING, Dec 12 (Reuters) - China has slashed the number of locations deemed at high risk of wider COVID outbreaks, re-opening locked down areas including one hosting a key factory of an Apple supplier. A district in the city of Zhengzhou in central China where iPhone supplier Foxconn 2317.TW has a vast facility declared on Monday that it had released all high-risk zones from lockdown. High-risk areas without new infections for five consecutive days should be released from lockdown, according to one of China's latest protocols released on Dec. 7.
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BEIJING, Dec 12 (Reuters) - China has slashed the number of locations deemed at high risk of wider COVID outbreaks, re-opening locked down areas including one hosting a key factory of an Apple supplier. A district in the city of Zhengzhou in central China where iPhone supplier Foxconn 2317.TW has a vast facility declared on Monday that it had released all high-risk zones from lockdown. High-risk areas without new infections for five consecutive days should be released from lockdown, according to one of China's latest protocols released on Dec. 7.
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18045.0
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2022-12-12 00:00:00 UTC
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India's Tata Group to open 100 exclusive Apple stores -report
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https://www.nasdaq.com/articles/indias-tata-group-to-open-100-exclusive-apple-stores-report-0
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Adds details
Dec 12 (Reuters) - Indian salt-to-software conglomerate Tata Group plans to open 100 stores across the country that will only sell Apple Inc AAPL.O products, the Economic Times newspaper reported on Monday, citing two people aware of the matter.
Tata Group's Infiniti Retail, which runs the consumer electronics store chain Croma, will be an Apple-authorised reseller and set up stores at shopping malls, high-street and neighbourhood locations, the report said.
Tata has begun talks with premium malls and high streets and the lease terms include details of brands and stores that cannot be opened near these outlets, a retail consultant aware of the matter told the publication.
Apple and Tata Group did not immediately respond to Reuters' calls and emails seeking comment.
The latest development comes less than two weeks after the Economic Times reported that the Tata Group was in talks to buy Wistron Corp's 3231.TW only manufacturing facility in India for up to 50 billion rupees ($605 million).
Tata and Taiwan's Wistron – one of Apple's top vendors in India – were in discussion to set up a joint venture to assemble iPhones in India, Bloomberg reported in September. ($1 = 82.6250 Indian rupees)
(Reporting by Biplob Kumar Das in Bengaluru; Editing by Savio D'Souza)
((Biplobkumar.das@thomsonreuters.com; 9101861583;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details Dec 12 (Reuters) - Indian salt-to-software conglomerate Tata Group plans to open 100 stores across the country that will only sell Apple Inc AAPL.O products, the Economic Times newspaper reported on Monday, citing two people aware of the matter. Tata has begun talks with premium malls and high streets and the lease terms include details of brands and stores that cannot be opened near these outlets, a retail consultant aware of the matter told the publication. The latest development comes less than two weeks after the Economic Times reported that the Tata Group was in talks to buy Wistron Corp's 3231.TW only manufacturing facility in India for up to 50 billion rupees ($605 million).
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Adds details Dec 12 (Reuters) - Indian salt-to-software conglomerate Tata Group plans to open 100 stores across the country that will only sell Apple Inc AAPL.O products, the Economic Times newspaper reported on Monday, citing two people aware of the matter. The latest development comes less than two weeks after the Economic Times reported that the Tata Group was in talks to buy Wistron Corp's 3231.TW only manufacturing facility in India for up to 50 billion rupees ($605 million). ($1 = 82.6250 Indian rupees) (Reporting by Biplob Kumar Das in Bengaluru; Editing by Savio D'Souza) ((Biplobkumar.das@thomsonreuters.com; 9101861583;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details Dec 12 (Reuters) - Indian salt-to-software conglomerate Tata Group plans to open 100 stores across the country that will only sell Apple Inc AAPL.O products, the Economic Times newspaper reported on Monday, citing two people aware of the matter. Tata Group's Infiniti Retail, which runs the consumer electronics store chain Croma, will be an Apple-authorised reseller and set up stores at shopping malls, high-street and neighbourhood locations, the report said. The latest development comes less than two weeks after the Economic Times reported that the Tata Group was in talks to buy Wistron Corp's 3231.TW only manufacturing facility in India for up to 50 billion rupees ($605 million).
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Adds details Dec 12 (Reuters) - Indian salt-to-software conglomerate Tata Group plans to open 100 stores across the country that will only sell Apple Inc AAPL.O products, the Economic Times newspaper reported on Monday, citing two people aware of the matter. Tata Group's Infiniti Retail, which runs the consumer electronics store chain Croma, will be an Apple-authorised reseller and set up stores at shopping malls, high-street and neighbourhood locations, the report said. Tata has begun talks with premium malls and high streets and the lease terms include details of brands and stores that cannot be opened near these outlets, a retail consultant aware of the matter told the publication.
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18046.0
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2022-12-12 00:00:00 UTC
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US STOCKS-Futures rise ahead of CPI data, Fed rate decision in focus
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-rise-ahead-of-cpi-data-fed-rate-decision-in-focus
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures up: Dow 0.22%, S&P 0.29%, Nasdaq 0.34%
Dec 12 (Reuters) - U.S. stock index futures edged higher on Monday ahead of monthly consumer inflation data, while investors braced for the Federal Reserve meeting later this week.
Wall Street's main indexes snapped a two-week winning streak last week, weighed down by fears of a potential recession next year due to extended central bank rate hikes. The Nasdaq .IXIC shed 4%, and S&P 500 .SPX and Dow Jones Industrial Average .DJI lost 3.4% and 2.8%, respectively.
Consumer inflation data due on Tuesday is expected to show prices rose 7.3% in November on an annual basis, easing from the 7.7% rise in the previous month, while the core rate, which excludes volatile food and energy prices, is expected to have moderated to 6.1% from 6.3% in October.
The data will come on the heels of November's slightly higher-than-expected producer price reading on Friday, amid a jump in the costs of services, but the trend is moderating, with annual inflation at the factory gate posting its smallest increase in 1-1/2 years.
The outcome for the U.S. central bank's two-day meeting is scheduled for Wednesday, with money market participants seeing a 91% chance of a 50-basis-point rate hike to 4.25%-4.50%, with the rates peaking in May 2023 to 4.96%. FEDWATCH
Treasury Secretary Janet Yellen on Sunday forecast a substantial reduction in U.S. price pressure in 2023, while also acknowledging a risk of recession.
"With markets pricing two-way risk on the Fed's hiking trajectory, we've seen more volatile trading in response to data points that support either narrative," said Mark Haefele, chief investment officer, UBS Global Wealth Management.
"But on balance, we think there's still far too much uncertainty for investors to assume a risk-on position just yet."
At 6:10 a.m. ET, Dow e-minis 1YMcv1 were up 73 points, or 0.22%, S&P 500 e-minis EScv1 were up 11.25 points, or 0.29%, and Nasdaq 100 e-minis NQcv1 were up 39.25 points, or 0.34%.
Most rate-sensitive stocks including Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O gained between 0.4% and 0.5% in premarket trading.
Biotech firm Horizon Therapeutics Plc HZNP.O jumped 14.1% following a buyout offer from Amgen Inc AMGN.O, while Coupa Softwre Inc COUP.O surged 22.4% on a media report of Thoma Bravo LLC being in advanced talks for an acquisition.
Rivian Automotive Inc RIVN.O tumbled 4.3% after the company paused its partnership discussions with Mercedes-Benz Vans on electric van production in Europe.
(Reporting by Shubham Batra and Ankika Biswas in Bengaluru Editing by Vinay Dwivedi)
((Shubham.Batra@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Most rate-sensitive stocks including Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O gained between 0.4% and 0.5% in premarket trading. The data will come on the heels of November's slightly higher-than-expected producer price reading on Friday, amid a jump in the costs of services, but the trend is moderating, with annual inflation at the factory gate posting its smallest increase in 1-1/2 years. "With markets pricing two-way risk on the Fed's hiking trajectory, we've seen more volatile trading in response to data points that support either narrative," said Mark Haefele, chief investment officer, UBS Global Wealth Management.
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Most rate-sensitive stocks including Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O gained between 0.4% and 0.5% in premarket trading. Futures up: Dow 0.22%, S&P 0.29%, Nasdaq 0.34% Dec 12 (Reuters) - U.S. stock index futures edged higher on Monday ahead of monthly consumer inflation data, while investors braced for the Federal Reserve meeting later this week. Wall Street's main indexes snapped a two-week winning streak last week, weighed down by fears of a potential recession next year due to extended central bank rate hikes.
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Most rate-sensitive stocks including Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O gained between 0.4% and 0.5% in premarket trading. Futures up: Dow 0.22%, S&P 0.29%, Nasdaq 0.34% Dec 12 (Reuters) - U.S. stock index futures edged higher on Monday ahead of monthly consumer inflation data, while investors braced for the Federal Reserve meeting later this week. Consumer inflation data due on Tuesday is expected to show prices rose 7.3% in November on an annual basis, easing from the 7.7% rise in the previous month, while the core rate, which excludes volatile food and energy prices, is expected to have moderated to 6.1% from 6.3% in October.
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Most rate-sensitive stocks including Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O gained between 0.4% and 0.5% in premarket trading. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures up: Dow 0.22%, S&P 0.29%, Nasdaq 0.34% Dec 12 (Reuters) - U.S. stock index futures edged higher on Monday ahead of monthly consumer inflation data, while investors braced for the Federal Reserve meeting later this week.
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18047.0
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2022-12-11 00:00:00 UTC
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India's Tata Group to open 100 exclusive Apple stores -report
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AAPL
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https://www.nasdaq.com/articles/indias-tata-group-to-open-100-exclusive-apple-stores-report
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nan
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nan
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Dec 12 (Reuters) - Indian conglomerate Tata Group-owned Infiniti Retail, which runs the 'Croma' chain of stores, plans to open 100 stores across the country that will only sell Apple Inc AAPL.O products, the Economic Times newspaper reported on Monday, citing two people aware of the matter.
(Reporting by Biplob Kumar Das in Bengaluru; Editing by Savio D'Souza)
((Biplobkumar.das@thomsonreuters.com; 9101861583;))
The views and 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 12 (Reuters) - Indian conglomerate Tata Group-owned Infiniti Retail, which runs the 'Croma' chain of stores, plans to open 100 stores across the country that will only sell Apple Inc AAPL.O products, the Economic Times newspaper reported on Monday, citing two people aware of the matter. (Reporting by Biplob Kumar Das in Bengaluru; Editing by Savio D'Souza) ((Biplobkumar.das@thomsonreuters.com; 9101861583;)) The views and 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 12 (Reuters) - Indian conglomerate Tata Group-owned Infiniti Retail, which runs the 'Croma' chain of stores, plans to open 100 stores across the country that will only sell Apple Inc AAPL.O products, the Economic Times newspaper reported on Monday, citing two people aware of the matter. (Reporting by Biplob Kumar Das in Bengaluru; Editing by Savio D'Souza) ((Biplobkumar.das@thomsonreuters.com; 9101861583;)) The views and 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 12 (Reuters) - Indian conglomerate Tata Group-owned Infiniti Retail, which runs the 'Croma' chain of stores, plans to open 100 stores across the country that will only sell Apple Inc AAPL.O products, the Economic Times newspaper reported on Monday, citing two people aware of the matter. (Reporting by Biplob Kumar Das in Bengaluru; Editing by Savio D'Souza) ((Biplobkumar.das@thomsonreuters.com; 9101861583;)) The views and 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 12 (Reuters) - Indian conglomerate Tata Group-owned Infiniti Retail, which runs the 'Croma' chain of stores, plans to open 100 stores across the country that will only sell Apple Inc AAPL.O products, the Economic Times newspaper reported on Monday, citing two people aware of the matter. (Reporting by Biplob Kumar Das in Bengaluru; Editing by Savio D'Souza) ((Biplobkumar.das@thomsonreuters.com; 9101861583;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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18048.0
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2022-12-11 00:00:00 UTC
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1 Green Flag for Apple Stock in 2022, and 1 Red Flag
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AAPL
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https://www.nasdaq.com/articles/1-green-flag-for-apple-stock-in-2022-and-1-red-flag
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nan
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nan
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With a market cap of $2.26 trillion, Apple (NASDAQ: AAPL) is the most valuable company in the world. Its dominance in the tech world has made it one of the best growth stocks, with its shares rising 227% in the last five years despite a sell-off in 2022, which has pulled its stock down 22% year to date.
There are numerous green flags for the iPhone manufacturer, with its walled garden of products capable of pulling consumers further into its ecosystem with just one purchase. However, its services business, including subscription-based platforms such as Apple Music, TV+, Fitness+, Arcade, News+, and iCloud, is especially promising for its long-term growth.
Meanwhile, Apple's reliance on China for its iPhone production could present more short-term headwinds. Here's why.
Green flag: Growing services business
Apple's services business has quickly become its second-biggest segment, earning 19.8% of the company's revenue in its fiscal 2022 (which ended in September). Throughout the year, services revenue increased 14% year over year to $78.1 billion.
The most attractive aspect of Apple's services business is its considerable profit margins. In fiscal 2022, the company's gross profit margin for its services stood at 71.7%, while the same metric for its products came in at 36.3%. Gross margins in services have also grown over the last three years, with the segment reporting 69.7% in 2021 and 66% in 2020.
In its products business, Apple accrues an operating expense for each device made, from the materials and labor involved. However, with services, the company can pay once for a piece of content and sell it millions of times over to consumers worldwide. And adding a monthly subscription for consumers to access that content benefits margins further.
In October, Apple introduced price hikes across all of its services, with Apple TV+ specifically rising 40% from $4.99 to $6.99 per month. With 2023 just around the corner, services revenue is likely to increase over the next year as Apple products continue to grow in popularity and consumers are attracted to all of the offerings associated with them.
Red flag: Production strains for its cash cow
In Apple's fiscal 2022, its iPhone segment earned $205.5 billion, making up 52% of its total revenue. As a result, when news broke at the end of October that an outbreak of COVID-19 cases in China had prompted the government to introduce strict lockdowns, Apple's stock began to slide as investors grew concerned over potential issues with iPhone production. From Oct. 28 to Nov. 9, the company's shares dipped 13.4%.
On Oct. 31, Reuters reported that Foxconn -- also known as Hon Hai Technology Group (OTC: HNHPF), which manufactures about 70% of all iPhones -- could see a 30% decline in iPhone production amid the lockdowns. While lockdown measures in China allow factories like Foxconn to remain active, workers must live at the plants to continue working, understandably leading to pushback from employees.
Foxconn said it coordinated backup production with other plants to reduce the impact. However, that has done little to quell investor concern about Apple's overreliance on China to produce its biggest earner.
Apple has recently made moves to relocate portions of its iPhone production to India; JPMorgan Chase estimates the tech giant will move about 5% of iPhone 14 manufacturing to the country by the end of 2022, and 25% of all of its products by 2025.
China's zero-COVID policy seems to have been the last straw for Apple as it begins to improve its supply chain. However, shifting countries won't come quickly. Wedbush analyst Daniel Ives estimates it will take until 2025 or 2026 for Apple to relocate 50% of its iPhone production to India or Vietnam, if it takes an aggressive approach.
Apple may suffer temporary headwinds from a troubling supply chain; however, its stock remains a buy for the long term. The company ended Sept. 30 with $111.4 billion in free cash flow, proving it has the means to invest heavily in altering its production strategy. Given that it's the home of a quickly growing services business and some of the world's most in-demand products, I wouldn't bet against Apple's long-term prospects.
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
JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and JPMorgan Chase. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With a market cap of $2.26 trillion, Apple (NASDAQ: AAPL) is the most valuable company in the world. Red flag: Production strains for its cash cow In Apple's fiscal 2022, its iPhone segment earned $205.5 billion, making up 52% of its total revenue. As a result, when news broke at the end of October that an outbreak of COVID-19 cases in China had prompted the government to introduce strict lockdowns, Apple's stock began to slide as investors grew concerned over potential issues with iPhone production.
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With a market cap of $2.26 trillion, Apple (NASDAQ: AAPL) is the most valuable company in the world. Green flag: Growing services business Apple's services business has quickly become its second-biggest segment, earning 19.8% of the company's revenue in its fiscal 2022 (which ended in September). Apple has recently made moves to relocate portions of its iPhone production to India; JPMorgan Chase estimates the tech giant will move about 5% of iPhone 14 manufacturing to the country by the end of 2022, and 25% of all of its products by 2025.
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With a market cap of $2.26 trillion, Apple (NASDAQ: AAPL) is the most valuable company in the world. Green flag: Growing services business Apple's services business has quickly become its second-biggest segment, earning 19.8% of the company's revenue in its fiscal 2022 (which ended in September). As a result, when news broke at the end of October that an outbreak of COVID-19 cases in China had prompted the government to introduce strict lockdowns, Apple's stock began to slide as investors grew concerned over potential issues with iPhone production.
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With a market cap of $2.26 trillion, Apple (NASDAQ: AAPL) is the most valuable company in the world. Its dominance in the tech world has made it one of the best growth stocks, with its shares rising 227% in the last five years despite a sell-off in 2022, which has pulled its stock down 22% year to date. Green flag: Growing services business Apple's services business has quickly become its second-biggest segment, earning 19.8% of the company's revenue in its fiscal 2022 (which ended in September).
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18049.0
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2022-12-11 00:00:00 UTC
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1 Warren Buffett Stock I'd Buy Before 2023 Without Any Hesitation
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AAPL
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https://www.nasdaq.com/articles/1-warren-buffett-stock-id-buy-before-2023-without-any-hesitation
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nan
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nan
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Those wanting to forge a path as successful investors could do worse than mirroring the philosophy of legendary Berkshire Hathaway CEO Warren Buffett, who is arguably one of the most successful investors of all time. Since taking the helm in 1965, his picks have yielded compounded annual gains of more than 20% and have collectively soared a massive 3,641,613%.
As we close out the train wreck that was 2022, investors are beginning to look to the future. Buffett's intriguing array of stock picks offer something for every investing style, including income generation, growth potential, preservation of capital, and everything in between.
If I could only buy one Buffett stock before 2023, my pick would be a company with a strong track record of growth, the resources to ride out an economic storm, and a history of returning capital to shareholders. Read on to find out why Apple (NASDAQ: AAPL) is my top pick.
Image source: Apple.
Growth is second nature
Apple was long known for its Mac computers but it wasn't until the release of its iconic iPod 21 years ago that the company became a household name. Since then, the tech giant has consistently found ways to stay on a trajectory of growth.
The company has employed a strategy of new products, upgrades to existing devices, and a growing roster of services to fuel its growth. For fiscal 2022 (ended Sept. 24) Apple's sales grew 8% year over year, while its diluted earnings per share climbed 9%. Even as device sales slowed, services picked up the slack, growing 14%. What makes this all the more impressive is that it came in the face of the worst macroeconomic headwinds in more than a decade. The reason? Apple's sticky ecosystem combined with its extremely loyal customer base.
This is just one of the reasons Apple is far and away Buffett's top stock, making up roughly 39% of Berkshire Hathaway's entire portfolio.
A port in an economic storm
Apple's consistently strong results are certainly an attraction, but for some investors, there's nothing more compelling than the safety and security of a fortress-like balance sheet -- which provides them a port to ride out an economic storm. The iPhone maker certainly qualifies in that regard.
In the event the economy continues to worsen, Apple is prepared. The company has roughly $49 billion in net cash on its balance sheet, which provides it with plenty of financial resources to ride out any economic headwinds and an increasingly rocky economy.
With each passing quarter, Apple continues to store up for a rainy day.
A record of shareholder-friendly policies
Apple has a long history of rewarding shareholders -- and not just with impressive stock price gains.
Apple resumed paying a dividend in 2012 and its track record over the past 10 years has been striking. On a split-adjusted basis, Apple's payout began at roughly $0.095, but has soared an impressive 143% since its inception. Furthermore, Apple uses just 15% of its profits to fund the payout, so the company continues to grow its dividend for the foreseeable future.
While its yield might seem meager at 0.64%, that's the result of Apple's impressive stock gains. Over the past decade alone, shares are up roughly 650% -- even after their recent decline. The stock price has been fueled by robust business performance that has consistently defied expectations.
There's also Apple's lavish share repurchase plan. The company has been buying stock left and right, retiring more than 39% of its outstanding shares over the past decade. This gives shareholders an increasing ownership of Apple.
Buffett commented on Apple's stock buyback plan, saying he's "wildly in favor of it." He also said he likes that the repurchase plan increases Berkshire's ownership of every dollar of Apple's earnings, without having to lift a finger to get it.
Every rose has its thorns
To be clear, Apple stock isn't going to appeal to every investor and -- as with every stock -- there are risks. In the event the economy slips into a recession and demand for the iPhone dries up, Apple will no doubt take a hit. The iconic device accounted for 52% of the company's revenue last year. Given the relatively high price point of the iPhone, consumers might opt to wait out a downturn before upgrading to the latest model. On the other hand, the resulting pent-up demand would catapult the results forward when the economy found better footing.
Furthermore, Apple stock isn't particularly cheap, selling for 23 times earnings, just slightly below the price-to-earnings ratio of 25 for the Nasdaq Composite.
That said, given the company's long history of growth, its ability to withstand a downturn, and its shining record of shareholder returns, I'd buy Apple before 2023 without any hesitation.
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
Danny Vena has positions in Apple. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Read on to find out why Apple (NASDAQ: AAPL) is my top pick. Buffett's intriguing array of stock picks offer something for every investing style, including income generation, growth potential, preservation of capital, and everything in between. If I could only buy one Buffett stock before 2023, my pick would be a company with a strong track record of growth, the resources to ride out an economic storm, and a history of returning capital to shareholders.
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Read on to find out why Apple (NASDAQ: AAPL) is my top pick. If I could only buy one Buffett stock before 2023, my pick would be a company with a strong track record of growth, the resources to ride out an economic storm, and a history of returning capital to shareholders. This is just one of the reasons Apple is far and away Buffett's top stock, making up roughly 39% of Berkshire Hathaway's entire portfolio.
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Read on to find out why Apple (NASDAQ: AAPL) is my top pick. This is just one of the reasons Apple is far and away Buffett's top stock, making up roughly 39% of Berkshire Hathaway's entire portfolio. Every rose has its thorns To be clear, Apple stock isn't going to appeal to every investor and -- as with every stock -- there are risks.
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Read on to find out why Apple (NASDAQ: AAPL) is my top pick. If I could only buy one Buffett stock before 2023, my pick would be a company with a strong track record of growth, the resources to ride out an economic storm, and a history of returning capital to shareholders. This is just one of the reasons Apple is far and away Buffett's top stock, making up roughly 39% of Berkshire Hathaway's entire portfolio.
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18050.0
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2022-12-11 00:00:00 UTC
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These 4 Stocks Tick the Right Boxes on Analysts’ Checklists
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AAPL
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https://www.nasdaq.com/articles/these-4-stocks-tick-the-right-boxes-on-analysts-checklists
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nan
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In the face of an impending recession, it makes sense to follow which stocks Wall Street analysts are rooting for. Here are four “Strong Buy” stocks chosen by using TipRanks’ Trending Stocks, a tool that tracks the most rated stocks—Avrobio (NASDAQ:AVRO), Apple (NASDAQ:AAPL), Synopsys (NASDAQ:SNPS), and Rent the Runway (NASDAQ:RENT). These stocks are in the spotlight this week.
Avrobio (AVRO)
Biotechnology company Avrobio specializes in gene therapy to treat cancer and other rare diseases. It is currently riding high with the success of its latest Gaucher Day event, which mainly highlighted the company’s advancements in the treatment of the Gaucher disease. It was attended by several analysts who left the event more bullish than before.
BTIG analyst Yun Zhong upgraded Avrobio to Buy from Hold with a $4 price target. Zhong was upbeat about the promising developments on four Gaucher disease type 1 patients receiving Avrobio’s AVR-RD-02 treatment.
Further, Mizuho analyst Uy Ear reiterated a Buy rating and $6 per share price target on AVRO stock, saying that the company’s updates were in line with his expectations. However, the analyst was pleasantly surprised by encouraging details about the Gaucher treatment. “We believe Avrobio has a path forward for its late-stage HSC gene therapy for Gaucher disease, AVR-RD-02, which could have a significant commercial head start on competitors,” said Ear.
What is the Price Target for AVRO Stock?
Three analysts on Wall Street have rated Avrobio a Buy, whereas one has rated Hold, giving the stock a Strong Buy consensus rating. The average price target of $4.50 indicates 445.45% upside potential.
Apple (AAPL)
A lot is going on with Wall Street darling Apple right now, especially production issues at the Foxconn plant and talks of moving its manufacturing out of China. Additionally, forex headwinds are looming on Mac revenues in the December quarter. Digital advertising is also likely to keep the top line under pressure.
Several analysts are cutting their estimates for Apple in the forthcoming quarters, but long-term prospects stand firmly bullish on Wall Street.
Recently, Morgan Stanley analyst Erik Woodring reduced his unit sales expectation for the quarter for the second time in a month as COVID-19-induced restrictions threaten to impact operations at Foxconn, the primary assembly facility for the iPhone 14 series.
Nonetheless, he reiterated a Buy rating and $175 price target on AAPL stock, confident that the demand for the iPhone 14 will be postponed to the March quarter rather than be destroyed.
What is the Price Target for AAPL Stock?
Wall Street is bullish on AAPL stock, based on the opinions of 23 analysts with a Buy rating and four with a Hold rating. The average price target of $180.1 also indicates growth potential of 25% over the next year.
Synopsys (SNPS)
An impressive flow of compelling design wins and a robust product portfolio is driving software giant Synopsys’ business through the headwinds in the broader technology sector. High demand for advanced technology, design, IP, and security solutions are also strong catalysts for growth.
For any growth-focused company, dynamic cash flow growth is key to pursuing growth-boosting initiatives. Notably, Synopsys’ operating cash flow has steadily increased over the past five years.
Last week, KeyBanc analyst Jason Celino reinforced his Buy rating and raised the price target on Synopsys to $467 from $455, encouraged by as-expected Q4 results supported by broad-based strength. A significantly improved full-year 2023 guidance also supported his thesis.
What is the Price Target for SNPS Stock?
Wall Street’s bullishness is supported by seven Buy ratings and one Hold rating. Moreover, the average price target for SNPS stock stands at $424.43, reflecting 30.3% upside potential.
Rent the Runway (RENT)
Rent the Runway is a unique e-commerce service that enables users to rent, subscribe, or buy designer apparel and accessories. The company is in an advantageous position during the downturn, as consumers look at renting luxury items rather than buying them. As a result, it posted strong Q3 results.
After the print, Telsey Advisory analyst Dana Telsey reiterated a Buy rating on the stock, encouraged by RENT’s restructuring plan, which is largely complete. The analyst believes that the restructuring boosted the company’s profitability in Q3 and paved the way for a better Q4. Telsey also expects RENT to benefit from significant secular consumer trends, which can potentially drive long-term growth.
In a little more than a year since its IPO, shares of RENT have declined almost 88%. This opens up an excellent opportunity for investors to jump in and make the most from the discounts offered by the company that caters to a digital retail niche that is still in its nascent stage.
What is the Price Target for RENT Stock?
RENT has a Strong Buy consensus rating based on eight Buys and two Holds assigned in the past three months. Moreover, the average price target for RENT stock stands at $5.75, implying 122.9% upside potential.
The Takeaway
As the bear market rages on, the above four stocks rely on their unique strengths that are expected to ensure their survival through a potential recession. Wall Street pros are highly optimistic about these names.
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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Here are four “Strong Buy” stocks chosen by using TipRanks’ Trending Stocks, a tool that tracks the most rated stocks—Avrobio (NASDAQ:AVRO), Apple (NASDAQ:AAPL), Synopsys (NASDAQ:SNPS), and Rent the Runway (NASDAQ:RENT). Apple (AAPL) A lot is going on with Wall Street darling Apple right now, especially production issues at the Foxconn plant and talks of moving its manufacturing out of China. Nonetheless, he reiterated a Buy rating and $175 price target on AAPL stock, confident that the demand for the iPhone 14 will be postponed to the March quarter rather than be destroyed.
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Here are four “Strong Buy” stocks chosen by using TipRanks’ Trending Stocks, a tool that tracks the most rated stocks—Avrobio (NASDAQ:AVRO), Apple (NASDAQ:AAPL), Synopsys (NASDAQ:SNPS), and Rent the Runway (NASDAQ:RENT). Apple (AAPL) A lot is going on with Wall Street darling Apple right now, especially production issues at the Foxconn plant and talks of moving its manufacturing out of China. Nonetheless, he reiterated a Buy rating and $175 price target on AAPL stock, confident that the demand for the iPhone 14 will be postponed to the March quarter rather than be destroyed.
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Here are four “Strong Buy” stocks chosen by using TipRanks’ Trending Stocks, a tool that tracks the most rated stocks—Avrobio (NASDAQ:AVRO), Apple (NASDAQ:AAPL), Synopsys (NASDAQ:SNPS), and Rent the Runway (NASDAQ:RENT). Apple (AAPL) A lot is going on with Wall Street darling Apple right now, especially production issues at the Foxconn plant and talks of moving its manufacturing out of China. Nonetheless, he reiterated a Buy rating and $175 price target on AAPL stock, confident that the demand for the iPhone 14 will be postponed to the March quarter rather than be destroyed.
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Wall Street is bullish on AAPL stock, based on the opinions of 23 analysts with a Buy rating and four with a Hold rating. Here are four “Strong Buy” stocks chosen by using TipRanks’ Trending Stocks, a tool that tracks the most rated stocks—Avrobio (NASDAQ:AVRO), Apple (NASDAQ:AAPL), Synopsys (NASDAQ:SNPS), and Rent the Runway (NASDAQ:RENT). Apple (AAPL) A lot is going on with Wall Street darling Apple right now, especially production issues at the Foxconn plant and talks of moving its manufacturing out of China.
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18051.0
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2022-12-10 00:00:00 UTC
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Indra Nooyi on Leadership, Culture, and Success
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https://www.nasdaq.com/articles/indra-nooyi-on-leadership-culture-and-success
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Motley Fool co-founder and CEO Tom Gardner talks with Indra Nooyi, ex-CEO of PepsiCo, to discuss:
Other CEOs she's learned from.
Building a culture of ownership.
Decision-making as an art and a science.
Nooyi's best-selling book is My Life in Full: Work, Family, and Our Future.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on Dec. 4, 2022.
Indra Nooyi: But I will say something. This is based on my biases from my past. I don't know how you build a corporate culture unless people come together, I really don't know. There's something to be said about the human interaction. I don't know how you do leadership development unless you have people coming together. How do you judge people unless you have people actually physically coming together? The first thing I did when I was CEO across the world, I visited people. I met them, I shook hands with them, talked to them, saw them in action. It was just an unbelievable feeling.
Chris Hill: I'm Chris Hill and that's Indra Nooyi. She joined Pepsi in 1994 as a Senior Vice President of Strategic Planning. Over the next decade, she rose to become President and Chief Financial Officer, and in 2006 was named CEO, a position she held for 12 years. Motley Fool, Co-Founder and CEO Tom Gardner caught up with her for a conversation at our company's recent Annual Meeting. We're bringing you part of that conversation today. They talk about the business leaders she's learned from and her path to the corner office at Pepsi.
Tom Gardner: What was the process like for you in becoming CEO at Pepsi? How was the idea introduced? Were you an applicant? Had that been something that you've considered part of your pathway at different stages along the way at Pepsi and what was that onboarding like?
Indra Nooyi: Well, all PepsiCo CEOs at run big businesses. I was through strategy, the CFO job than I was President running all the corporate functions and Steven Reinemund my predecessor CEO, did something very interesting, he said, look, in all the work you've done, you've operated left of the decimal in big numbers. I want you to learn the right of the decimal small pennies. How you extract value from small pennies applied over many things and you get cost-savings. He had me do a project of Frito-Lay to improve the distribution system. I had done projects on operations but never really run a P&L in its entirety day to day. There were lots of other extraordinary people in PepsiCo that the board could have picked. We were not told there was a succession race going on, but some of us were on the board at that time so the board knew us. I honestly believe Tom, that if you decide you want to be CEO and you start to run for it, you actually work against yourself because you're so obsessed with becoming CEO, you forget that you have to do the work. I was focused on doing the work because at the end of the day I didn't think my boss was going to retire when he did. I thought the two of us were going to retire at the same time because he was a young person and I enjoyed working with him. When he walked into my home one day and said the board would like to tell you on Saturday that you're going to be CEO. I said why are you leaving? That was my first reaction because I was enjoying working with him. He said, "I'm going back to Dallas, my family would like to relocate". I think the board felt there was a strategic repositioning that was needed of the company. Companies go through ebbs and flows. You have great operational leadership then you need a strategic tweak then again you get a great operational leadership and other strategic tweak. I think Roger Enrico did all the strategic transformation. Steve extracted phenomenal performance from that transformation. I came in, strategically repositioned. The new CEO is extracting operational benefits from all that repositioning. I think the board was very clever in deciding what CEO you needed for the times. I was surprised I was picked, but I'm now in retrospect, I understand why I was picked.
Tom Gardner: What are the biggest differences between being a CFO than being the president and running all the corporate functions and then being CEO. What does that progression look like as we each look at our own career journeys and what it means to level up to that next spot?
Indra Nooyi: There are two kinds of CFOs is what I call the control and numbers-oriented CFO. Then there is the strategically focused numbers CFO. PepsiCo typically had CFOs that came from a strategic focus, became the partners to the CEO. I came from that ilk, big picture strategy, but I was also good at zooming in to the numbers and running the finance function. Because I was President also, and because I was part of so many of the transformations, I knew every new can corner of the company around the world. I knew everyone of our bottling partners, our joint venture partners, employees knew me. The CEOs before me gave me a lot of visibility because that was the first immigrant women of color in the executive suite. I was given a lot of visibility by my predecessors and pushed and promoted. I thought I was totally prepared when I was told I was going to be CEO. But then when you become it like you're doing a game of tag Tom, the view is completely different because when you are President and CFO, your CEO is the first-line for the shareholders, for everybody outside, when you become it, you're the first line of attack and you're fair game. CEO is a fair game for anybody who wants to attack a CEO. You couldn't retool your mind to say, I thought I knew everything about the job, but now I am the one making all the decisions. I get great input, but I'm making the decisions. I have to think about my 250,000 employees, their families to suppliers, the partners. You have very different sense of responsibility, and boy I tell you I came to work every day with a little bit of butterflies in my stomach saying, I hope I do right by this company.
Tom Gardner: Thank you so much for that. As the CEO at Pepsi, you introduced Performance with Purpose, PwP. That was maybe quoting directly, a plan to put environmental goals and customer and employee well-being on par with financial goals. I was wondering to what extent your pathway to becoming CEO and CFO background for example, and running businesses. I'm wondering to what extent you think anyone any level of any company anywhere inside the Motley Fool or inside a Pepsi or any other company. How important do you think it is to work with a purpose and understand the business realities to see both of those things together? Because naturally, some people come to work and they're like, I'm the transactional, I'm the numerical, I'm the money side of it. They'll figure out how to make it all come across the right way in the world and others will say, I'm the one who's out front interacting with you. I don't really know how the pricing works. I'm not sure distribution costs. I don't know what the cost of acquisition is for new customer. I don't really know those details. How important do you see it to continually try to bring those two things together within an individual's career, no matter the company?
Indra Nooyi: In my experience, I've come across two kinds of people. People who come to work saying I got to do a job, I've just got to go do the job, get a paycheck and go home, which is perfectly good as long as they do a job well. Then there are those who go to work saying this is my company, even if it was a big public company, this is my company. They have an ownership culture about it. They feel they're part of this company and whenever they have to do whatever job they are in, they redefine the job to be more expensive. Thinking about all the linkages with the job to other functions. I'll give you an example, but let me start off by saying, I was a second type. Whatever I was given to do, I would do it well, but then I would ask the question, who's going to use the output of my work? How is it going to be used? I always thought about people two levels above me. How would they use it? If it was a board, I'd say what's the board going to say when they see this document? What can they do with it? What information I'll be trying to give them? But by doing the work at ground level, but then levitating about 10,000-15,000 feet and looking at the work and impact on others, you have a different perspective of the work. That's the way I was trained at the Boston Consulting Group. That's a skill I brought to PepsiCo. I think in many ways, that ability to zoom in and zoom out constantly is what got me the attention of all the leaders in PepsiCo saying, here's an unusual person. I've said to anybody, those that do that zooming in and zooming out, have an ownership culture about the company and want to make the company a better place are those that develop a sense of purpose about coming to the company. Getting up every morning and coming to work, whether you're doing remotely or in person. There are other people get up every morning saying, I care deeply about this company and I care deeply about PepsiCo. I mentioned in my book saying I had an irrational love for the company and till this day, I carry that irrational love. When you have that love and think it's you-all company, the way you act is completely different. You cared about everything. Everything I do I worried about the broader impact of it. That gave me a tremendous purpose.
Tom Gardner: How about having the business detail alongside that sense of purpose? You essentially shared your thoughts on that with the zooming in, zooming out. Then how about somebody who zooms in, zooms out but just doesn't quite yet understand the business implications of decisions. What would you advise to them?
Indra Nooyi: It's a tenable thing, Tom, because if you make decisions in a vacuum without knowing how it's going to land on people and businesses and processes. You might actually make big blunder. Because the whole idea of leaders making good decisions is that, they're not just making a good decision on what do you think is the right decision for the company. You're thinking about how it's going to be implemented. That's why they say people who've actually run P&Ls know-how is going to land and how people have interpreted and act on it. I think anybody who's CEO or in a C-suite has to know what the impact is and how it's going to land on businesses, functions, people, regions, any decision you make. For example, Performance with Purpose as a overarching strategy, we had to take it on the road to see how is it going to land in various countries? How are they going to interpret it? How can they execute Performance with Purpose. Should we tweak Performance with Purpose at the margin for certain countries. We had to go through that exercise. I think anybody who thinks decisions can be made up on high and miraculous land is making a mistake. You've got to constantly think about all of the pitfalls when it lands, then go back and tweak the decision. Not to much, but enough to make it work. Is it an art and a science?
Tom Gardner: An art and a science. We are obviously in a very tough market environment now with a lot of unexpected factors that few people would have imagined the collection of them five years ago. I don't know that anyone in the world would have been able to put together the scenario that we're in. I want to hear a little bit about how you managed through change, and through crisis. I would just say for the Motley Fool, we face a unique challenge in that even though our assertions in our advice may be right in the long term, it can look very wrong in the short term. You could recommend what could end up becoming a great company, or is a great company, could be a great investment seven years from now, but in the next year it's down 58 percent. For a member coming in to see that and experienced that and not be able to process that harsh early experience doesn't mean a long-term failure. Although of course in investing, you do also make mistakes that do end up being long-term mistakes. The complexity of laying that out for our members in an environment like this, obviously, there are plenty of things that are analogous in your work career and at Pepsi, and Pepsi facing recessions, how do you suggest managing through change and through crisis for the employees and making sure everyone understands the mission and why we're here and what we're working on, but for all the stakeholders that are suffering at different points along the way as well?
Indra Nooyi: Let me give you three scenarios, Tom, because I think it's important in a very different. When we are transforming future back, which is what you're talking about, we know what the future is going to be, we have to change the company. It behooves me to paint a beautiful picture of the future in vivid terms to people, tell them why we need to change and make the change happen. Those that stand in the way, sometimes when you try to change them and they don't, you got to move them out, because you have such a clear idea of what changes need to be made for the future. That's one kind of change. The second kind of change when you've got force measure, War in Ukraine, geopolitics with China, you've got inflation. You've got stuff that you don't control. Financial crisis. All these you didn't make happen, but they happen around you. You've got to navigate the company through that. When you have something like that, just had to bring their employees together and say, "you know what, we can do it". Give them confidence when they are feeling nervous, give them stability when they feel like the world is spinning out of control.
Just give them stability, tell them we go through a tough time, but we will come out of this. The third kind of change unsettling aspect has been an activist comes into this talk and demands you do all kinds of things. But this is not stuffed you're planning, this is not stuff that happened to you, this is an activist who thinks they know lot more about the company than you do, even though they don't. What do you do then? At that point again, is when the best of a CEO has to come out and say, our strategy is clear, this is what it is. We're not backing off of that. Our board is not backing off that. You guys keep running the company and delivering results. I will take care of the activist with the CFO and the legal camps. You have to have separation of roles so that everybody is not worried about the same issue. I think in each of these cases, you have to behave differently. You've got to really understand what you're trying to do and behave differently. I'll be honest with you Tom, one of the things that I was blessed with, I ran a company like PepsiCo which made products to eat and drink them. If I was running a company that made products that are based on bits and bytes which is being disrupted every which way to Sunday, I don't know how I would have run that, because anything that's bits and bytes and digitally movable is going through massive disruption at this point. Just like what you're talking about. All different ballgame.
Tom Gardner: I guess in the difference between ideas and products, some of the way the pandemic played out would naturally be different because in the product world, there are maybe a point-of-sale with a customer or a necessity to have somebody at a distribution point.
Indra Nooyi: Manufacturing the product.
Tom Gardner: Exactly. In the world of ideas, perhaps every one can be in their home office because there are gaps and differences in the way you work. But for the most part, you were actually able to make your way through, learn as you go but continue to work remotely. I'm wondering if you were running Pepsi now or looking at any company, what advice would you have for how to think about how work is going to be different and not in a temporary way, a longer-term bet on the way work will be different now because of what we've been through?
Indra Nooyi: I'm glad I'm not the CEO now because this is a confusing time in some ways, but I will say something. This is based on my biases from my past. I don't know how you build a corporate culture unless people come together, I really don't know. There's something to be said about the human interaction. I don't know how you do leadership development unless you have people coming together. You judge people honestly if people actually physically coming together. The first thing I did when I was CEO across the world, I visited people. I met them, I shook hands with them, talked to them, saw them in action. It was just an unbelievable feeling. The thing that I always worry about in PepsiCo, but I'm sure you're doing some shape of form in Motley Fool is, if you're a servant leader, really servant leader, you wouldn't allow some people to come into work and all other staying home. People who have figured out a way to come together because you're solving the people that work for you. So net that, what I'd say is conducted few experiments and see what works best. My biggest concern is productivity, I think is not where it should be given the lack of clarity on hybrid working. I'm all full flexibility. Don't get me wrong. It makes for good family building, but what we should agree on is x number of days of the week you're going to come in. We can actually build a community, We can build culture, we can build a leadership team, we can get to know people so be it, we can put name and face together in a human way and shake hands. There's a lot to be said for that. Talk about productivity if we work at home or in the office, just talk about all that. Then do experiments in different parts of the company. Two days, three days, everybody coming in, some coming in rotation, do that. But do not disadvantage any group. Don't say women didn't come and therefore they disadvantaged, men came and therefore they're advantaged. Be very careful about favoring or not favoring one group of people.
Tom Gardner: I thank you for that. I want to respect your time. But I also have three more questions.
Indra Nooyi: Go ahead.
Tom Gardner: Good. You've expressed that you feel like career wise, you won the lottery because the journey of an immigrant women of color was not a well-worn path into the executive suite at a company like Pepsi or any other Fortune 50, Fortune 100, Fortune 500 company or many companies. I'm wondering to what extent you think that is different now, how far along are we that the odds are not so long and so stacked against, let's specifically take an immigrant women of color, but in any other forms of obstacles that exist to the merited rise of talent, to create the most dynamic marketplace with the greatest rate of innovation and enthusiasm. Impossible to achieve perfect setting, how far are we today versus when you began your journey inside a Pepsi?
Indra Nooyi: My time when I first came to the US to now, I'd say that my journey would have been possible only the US, not in any other country in the world. I still think we have to pat ourselves in the back as citizens of this great nation and say, we're still one of the wonderful meritocracy in the word that gives everybody a chance. On a relative basis, we are out there phenomenon. Now, let's talk about what could be improved. I think that we are making progress on saying the most talented people should rise to the top. We're making progress, but there are biases, there are barriers that exist to people like women or as diverse people rising. It doesn't happen overnight, you've got to build the pipeline very methodically and get them up. It's not just we say we need CEOs who are diverse and then all of a sudden CEO show up. You've got to build a pipeline very systematically. I will say one thing, Tom, because I was only one of a kind when I was early in my life and corporate America and then when I became CEO, a lot of people saw me, my hard work and how much I felt ownership about the company and stepped up to support me, push me, mentor me, critique me, and really give me a leg-up. Now there's more like me that are more diverse people in leadership positions. They now being viewed as competition, normal competition is happening. While I was singled out for help because maybe it's a combination of my hard work and the people I was surrounded by I think I was given a real push and pull up. Today I think the environment is better, but there's more people like me and the competition is more intense. On balanced, different issues, but still issues, but we're making problems I'd say overall, we're making progress [inaudible] at all but I think in mainstream, we're slowly making progress.
Tom Gardner: It's unfair to do this, but I always love to play the game scale of 1-10. What would you say in terms of relative to other countries you identify the US in a very positive way relative to the potential within the US of what could be if we addressed biases more effectively and really looked at the system. You could begin in the schooling system, you can begin anywhere you want, all the way through. Where do you think we are at a scale of 1-10 on fulfilling the true potential of the talent of the US.
Indra Nooyi: I think there's some of it in a a seven and eight because it's a relative thing. We don't know what the absolute is because it isn't anybody that much better than us. Relative to what I know we have in our country, we have talent pools that are not fully utilized because there's no child care for them to come to work. I think that if wee taught stem in a very different way in schools and colleges, more people will stay in stem and we can have more people homegrown who become quantum physicist or software engineers, or all these advanced technologies. I think that there are changes we can make if we invested more in our own country like we're doing now, that'll open up more jobs for people here. I think our potential is endless. I think there's somewhere between a seven and eight. A little push here and a little tug there we could just be unbeatable, really. I think we underestimate what a great country we live in. We underappreciate.
Tom Gardner: Thank you for that. I'm wondering if there are a few CEOs alive or not that you either looked to as you were running the company. In many ways, I would say the vast majority of my useful ideas for our company and I've plenty of bad ideas as well and the vast majority of the useful things that I've done in my role and their mistakes that I've made have come from other people that I've been able to sit and study because at the Motley Fool, we're studying other companies all the time so we're able to see what Pepsi does and its culture and introduced that as a test and our culture, see what that CEO did in deciding whether to make an acquisition or invest in R&D or not, etc, to just constantly be looking at the playbooks of other companies has been so helpful for me and I'm wondering if there are a few leaders today or when you were beginning as CEO at Pepsi, or at any point in your life that standout as people that you admire and learn from, loved and why.
Indra Nooyi: All of us say Steve Jobs. I had a chance to meet him and talk to him. I think he was a difficult person, but an extraordinary person. How passionately felt about Apple, that was his company, the sense of ownership we had, and the changes he had to make you just face the world head-on and said, I've got to make changes. The reintroduced design thinking into Apple, the way he invested in new technologies we're all fantastic. Anybody who had the opportunity to meet Steve Jobs, lucky them and if you didn't, I feel sorry for you because he was such an unusual person. Albert Bourla of Pfizer impresses me too, the way MRNA was developed for COVID and Monster and what a humble guy he is. I just like him and I think people like him are hard to come by and I've liked Albert Bourla. Recently I've run into a woman called Penny Pennington who runs Edward Jones private company, but extraordinarily smart in the way she runs the company. How she's made the Edward Jones culture her own, and how she acts like the owner of Edward Jones in this partnership is spectacular and that's what you really need people who say, I might be one of the partners or the managing partner, but I'm going to make it one of my own, very important. I'd be remiss if I didn't mention Jeff Bezos. He built one of the most consequential companies of our times from the back of his car. Let's not forget from the back of his car. People like me stepped into an existing infrastructure and processes and systems and made it better and so somebody like Jeff Bezos transitioning to Andy Jassy today. I'm an often so I never learned from one I look at many people and then I'd take a little nugget from each of them.
Tom Gardner: I think there's a wonderful, it may be a Seneca quote I can't remember the philosopher, but it's essentially the idea that you may not love the author, you may not love the book, but you probably can find a really good line-
Indra Nooyi: Agreed.
Tom Gardner: Or a really amazing paragraph and is a wonderful way to study other leaders. You don't have to and evaluate whether check every single box.
Indra Nooyi: Exactly. Only one message to you that is profile.
Chris Hill: If you're interested in learning more from Indra Nooyi, pick up a copy of her New York Times best-selling book, My Life in Full: Work, Family, and our Future. As always, people on the program may have interest in the stocks they talk about and the Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. I'm Chris Hill. Thanks for listening. We'll see you tomorrow.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Chris Hill has positions in Amazon.com, Apple, and PepsiCo. Tom Gardner has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, Monster Beverage, and Pfizer. 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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I was through strategy, the CFO job than I was President running all the corporate functions and Steven Reinemund my predecessor CEO, did something very interesting, he said, look, in all the work you've done, you've operated left of the decimal in big numbers. I'm wondering to what extent you think that is different now, how far along are we that the odds are not so long and so stacked against, let's specifically take an immigrant women of color, but in any other forms of obstacles that exist to the merited rise of talent, to create the most dynamic marketplace with the greatest rate of innovation and enthusiasm. I will say one thing, Tom, because I was only one of a kind when I was early in my life and corporate America and then when I became CEO, a lot of people saw me, my hard work and how much I felt ownership about the company and stepped up to support me, push me, mentor me, critique me, and really give me a leg-up.
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Motley Fool co-founder and CEO Tom Gardner talks with Indra Nooyi, ex-CEO of PepsiCo, to discuss: Other CEOs she's learned from. Chris Hill: If you're interested in learning more from Indra Nooyi, pick up a copy of her New York Times best-selling book, My Life in Full: Work, Family, and our Future. 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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Motley Fool co-founder and CEO Tom Gardner talks with Indra Nooyi, ex-CEO of PepsiCo, to discuss: Other CEOs she's learned from. I will say one thing, Tom, because I was only one of a kind when I was early in my life and corporate America and then when I became CEO, a lot of people saw me, my hard work and how much I felt ownership about the company and stepped up to support me, push me, mentor me, critique me, and really give me a leg-up. In many ways, I would say the vast majority of my useful ideas for our company and I've plenty of bad ideas as well and the vast majority of the useful things that I've done in my role and their mistakes that I've made have come from other people that I've been able to sit and study because at the Motley Fool, we're studying other companies all the time so we're able to see what Pepsi does and its culture and introduced that as a test and our culture, see what that CEO did in deciding whether to make an acquisition or invest in R&D or not, etc, to just constantly be looking at the playbooks of other companies has been so helpful for me and I'm wondering if there are a few leaders today or when you were beginning as CEO at Pepsi, or at any point in your life that standout as people that you admire and learn from, loved and why.
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Motley Fool co-founder and CEO Tom Gardner talks with Indra Nooyi, ex-CEO of PepsiCo, to discuss: Other CEOs she's learned from. Tom Gardner: What are the biggest differences between being a CFO than being the president and running all the corporate functions and then being CEO. Not to much, but enough to make it work.
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18052.0
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2022-12-10 00:00:00 UTC
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An Investor's Look at the Energy Picture
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AAPL
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https://www.nasdaq.com/articles/an-investors-look-at-the-energy-picture
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In this podcast, Motley Fool analysts Deidre Woollard and Jim Gillies discuss:
Europe's energy crunch and why Russia isn't playing along with price caps.
Investing in economic cycles as a contrarian.
Why AutoZone is "one of the best-managed companies and capital allocation stories."
Plus, Motley Fool contributor Brian Withers joins Motley Fool host Alison Southwick and Motley Fool personal finance expert Robert Brokamp to discuss how to encourage kids to invest.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Walmart
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
This video was recorded on Dec. 6, 2022.
Deidre Woollard: Europe's gotten energy conscious, AutoZone keeps driving along. You're listening to Motley Fool Money. Welcome to Motley Fool Money. Today we're looking at the impact of energy prices as cold weather gets real here in North America. We're checking out more retail results, and we'll be talking about kids and money. I'm Deidre Woollard sitting in for Chris Hill, and I'm joined by Motley Fool Senior Analyst Jim Gillies. Hi, Jim.
Jim Gillies: How are you doing?
Deidre Woollard: I'm doing all right. I'm a little bundled up today. I know you are probably a lot more bundled up than I am because you live in Guelph, Ontario, Canada, where I don't think it's very warm right now. We're getting close to winter. Energy is a huge problem this year. How bad could it get, and what areas are you looking at?
Jim Gillies: We're not that cold up here. Unfortunately, Ontario is pretty much all natural gas-fired housing heat plus a lot of energy. It's all very natural gas or nuclear. We actually live in a pretty decent area for energy, but that is not an energy pricing. That's not the case for a large part of America and Europe, even Canada for that matter. My approach to energy is basically this. There's a certain amount of demand worldwide for energy of all sorts. We're talking about heating, we're talking about electrical power, we're talking about driving your car. But there's a certain rather large number that represents the amount of aggregate demand. That number is growing just shy of about 2 percent annually, and it has for the last seven decades or something like that. So it's probable that trend will probably continue for the foreseeable future as much as we want to get on efficiency, and I think that's a great thing as a former environmental engineer, but big fan of energy efficiency. I think it's driven as well by the move to renewables and the move to more sustainable energy sources and just burning hydrocarbons. I'm a big fan of that.
I've got solar panels on my roof. When they work, they're great. But that giant bowl that we need to fill every year is growing by about 2 percent a year, and the amount of that bowl or the portion of that bowl has been filled by fossil fuels, the big three fossil fuels, coal, oil, and gas, is, tends to run between 75 and 80 percent, about 77 percent I think so, but say 75-80. That amount has not been changed for the better part of my lifetime, the last four decades plus. We can say, cold weather might portend higher heating bills or higher energy bills or higher cost of gasoline, although it's coming down. I step back and go like, one hot summer where everyone's running their AC, one cold winter, that doesn't change what I look at as the bigger drivers here. And the bigger driver is a gradually 2 percent a year expanding bowl that you have to fill. Heretofore we fill it mostly with fossil fuels.
While I'd love to see that change, and I think it's important to drive as much change as possible toward the renewable side of things or even toward the nuclear side of things. My present value investing dollar does tend to be more focused on what's working now and what will probably be working for the foreseeable, read less than the next decade, foreseeable future. That does tend to be oil and gas plays for me, especially when you're looking at a lot of the oil and gas plays today after a lot of them lived a little, shall we say, liberally in the last oil boom, when oil got up to about 100 bucks, averaged around 100 bucks 2012-2014. Those companies didn't make a lot of money because they were spending it all over the place and paying big dividends and living on company credit cards. Oil fell, those companies got destroyed and they're now coming back and they are living within their means more now, they're really focused on shareholder returns, those dividends, share buybacks, living within their means in terms of cash flow, they're not willy-nilly borrowing. I know it's not very popular, it's certainly not where I thought I'd be as an environmental engineer.
From an investing perspective, I like the oil and gas plays with some nuclear stuff. But oil and gas plays are for me. If I get 5 percent yield and I know you're going to probably buy in between 5 to 10 percent of your stock or your shares this year, and you're going to make a lot of money basically at oil prices above $55? That's where I'm putting my money.
Deidre Woollard: Well, that makes sense because what you talked about, how long this cycle is, it's exciting to have renewables, we want to have more renewables. It's where things are going. But as you pointed out, it's not where things are at right now. This year especially, we're facing the geopolitical concerns have been dramatic. We've got, last week the EU agreed to cap the Russians seaborne prices at $60. That's led to all of this concern about, is this process going to work? Are they instead just going to go to China, India, or anyone else and sell their oil there? There have been some tanker problems happening. This is all short-term stuff, but is it anything that we should keep an eye on?
Jim Gillies: I do like how it was worded. The EU agreed to cap Russian seaborne oil prices. Did Russia agree to this cap?
Deidre Woollard: Not so much.
Jim Gillies: No, not so much. I think that's always where I come down on these things. If you foist something upon a person, if you foist something upon a country or a company or whatever, you should expect they're going to work around it. That's probably a terrible analogy, but if there's a specific type of tax, it's leveled upon you as a citizen, regardless, some sort of an income tax, or they change the tax bracket where the higher income tax bracket might apply, what's going to happen to the people upon whom that tax is expected to fall? All those people are going to start shifting money around to try to report lower taxable earnings or take advantage of tax shelters, they're going to react, and so such taxes when they come in, never quite raise the tax revenue that they initially thought they're going to do. I look at this going, OK, so we've got this price cap on seaborne Russian oil, that is $60 a barrel. I did see that Ural crude, so the Russian oil price, it was about 80 bucks a barrel a month ago. Now it's barely over 60. It's certainly the pricing market seems to think that, oh yeah, great, it's going to be 60 bucks.
Yeah, if I'm Russia, I'm just sell it, like, OK fine to the EU. It's like, I'm going to China and India to the degree that the West and Europe can put pressure on China, India to not buy. I suppose that could hurt Russia a little bit. It sounds horribly cynical and I'm sorry for that, but I think most countries, most people are going to act in their own self-interest pretty much all of the time. You've just imposed this upon Russia. They're going to act in their own self-interest. Which means, yeah, picking up the phone and calling clients in China and India. I don't have to like it, but [laughs] I think it probably does flow in the direction -- no pun intended -- that you suggested.
Deidre Woollard: Well, let's take your contrarian point of view to retail. We had two very different companies reporting earnings today, and both did really well. We had AutoZone and we had Signet Jewelers. Different companies, but definitely specialty retailers. Let's start out with AutoZone. Good quarter for them. Net sales of $4 billion, their same-store sales -- you always got to look at that for retail -- that's up 5.6 percent. In the short term, it seems like AutoZone, great for if the recession, people were repairing their cars or car staying on the road longer. Is this a long-term play?
Jim Gillies: I think AutoZone has been one of the great long-term plays for the past couple of decades, and I've never owned a share, which more fool me, I suppose.
Jim Gillies: I think AutoZone has been probably one of the best-managed companies and one of the best capital allocation strategies the past few decades. Because what do they do? They basically have a market space that not a lot of people come into, all are going to be chasing them down the distribution network is already a prohibitive, I think, competitive advantage for potential interlopers. I think there's probably some argument that the rise of electric vehicles, if it does play out the way certain people think it'll play out, probably could be a bit of a detractor to AutoZone's business because a lot of the parts that that we replace in our internal combustion engine vehicles, a lot of those maintenance items, may migrate away or cars with regenerative braking so your not slamming on the brakes a lot as much because you're using the car's natural generative breaking to slow yourself down might extend say the life of your brake pads and your brake rotors and whatever. Maybe you replace them less, and if you're replacing them less, it weighs on AutoZone or competitors like O'Reilly. You probably still use the same amount of windshield wiper blades, but I think that this company has been and probably for the foreseeable future, probably continues doing what it's been doing. It's taken over. It's a saying I got from our colleague Bill Mann and I think it's a really good one.
Companies that take over mountains. No one else knows what they want until it's almost impossible to dislodge them. AutoZone's one of, I'll argue it's a duopoly in the auto-parts space, replacement parts, accessories, that sort of thing with O'Reilly. As a result, they have a distribution network second to none and they can leverage this whole thing to make a great amount of cash. Then what do they do with that cash? I'm a cash-flow based investor, probably a little too obsessed with it to be honest with you. But it is what it is. The amount of cash that they've generated has led them to just relentlessly buying back their own stock. When they done what they've done relentlessly buying back their own stock, it ratchets, I think the market cap today is about 45, 47 billion dollars, I'd have to go look up the number of years, but since they started being very aggressive with the buybacks, I think. Oh, here it is, since 1998. Just over two decades. Again, $45 billion market cap today, roughly 47 billion. They bought back $31 billion worth of stock. They bought back almost their entire self. What that's done is it's taken the share count for back in the day has gone from the share count from 150 million shares, I think like a yeah, like in 1998, there was 152 million shares outstanding. Today it is 19 million shares outstanding. They just been eating themselves.
Then you go look at, well, what's that done to the share price? Because as a company buys back its own stock, if you're not selling, you own a greater proportionate amount of the company because you didn't sell while the company bought in and took it out. Just over the past decade, I'm just looking at the last 10 years, it's gone from $360 a share ballpark to $2,500 a share. But just by doing nothing and letting this company generate cash and then return that cash back to you in the form of very aggressive share buybacks. You've got, what, an eight-bagger. It's not a very exciting story. It's more exciting -- cybersecurity is much more exciting, e-commerce, a much more exciting story. But it's these quiet little non exciting stories. These stories where again, it's essentially, I took over -- a seven-bagger -- I took over a mountain. No one else knew they wanted and have treated myself to 21 percent annualized returns, which is roughly what AutoZone has given you the past decades. I'm not very exciting myself, so I try to avoid the really exciting investing stories. Again, it's remarkable to me I've never owned a share of AutoZone, even though I respect the hell out of them.
Deidre Woollard: You're pretty exciting.
Jim Gillies: No, I'm not.
Deidre Woollard: What I think you talked about it being a quiet plan, but I think it's also a visible play. If you're driving around, you see them. There's thousands of stores all over, there are definitely visible. I want to talk about one more that's visible. Probably not your area of interest, but Signet Jewelers. They also reported, parent company of Zales, Jared, Kay Jewelers. They also recently bought Blue Nile. They've got a lock on consumer jewelry and we're headed into a recession potentially, inflation's high. You might think this is a bad time to be them and it hasn't been. They had a great quarter, they raised their forecast. What is happening here? Consumer discretionary seems to be doing a lot better than I would have thought.
Jim Gillies: Can I be contrarian?
Deidre Woollard: Please.
Jim Gillies: I'm not sure we're heading into a recession.
Deidre Woollard: Yeah. I'm not so sure, either, but everybody likes to talk about it. [laughs]
Jim Gillies: Well, that's just it. Everyone likes to talk about it. If there is a recession coming and there might be, but I think it's primed to be fairly mild and my evidence I'll cite against that is again, the unemployment numbers don't say recession. Yes, a lot of the big tech companies are doing some layoffs. But the more blue collar companies are as of yet not following along, and then the other pieces of evidence I would point to is, have you tried to travel recently? Boy, people are spending a lot of money to do practically anything. Then the third piece is this what you've just said here, the consumer discretionary and certainly the wealthy haven't noticed any inflationary issue. But for those of us, shall we say further down the socioeconomic ladder. Boy, there's a lot of spending going on and on consumer discretionary and jewelry on people still playing with cars [inaudible].
The pent-up demand, I think from the pandemic, from being largely shuttered depending where you live, I suppose, but having your options to go out and do things for much of 2020 and 2021, that demand has been unfettered and I think it's still running pretty hot. Because of that, I'm not sure we're into that much of a recession. If you're not in that much of recession, then companies like what's going on with Signet and what have you, I think makes a little bit more sense. Doesn't mean I'm buying a lot of jewelry [laughs] but some people are. I took your question about a specific company and went off in a macro rant, but that's more I'm like yeah, I'm not sure we're going to get the recession, some people think we're going to get, and if that's the case, then I actually think it portends fairly bullish things resolved.
Deidre Woollard: I think it portends fairly bullish things for stocks that people maybe thinking about a recession and think I should stay away from those stocks that are mostly discretionary. It seems like the contrarian view is maybe not. Well, I think that's a great place to end things. Thank you so much for your time. This was always a pleasure to talk to you, Jim.
Jim Gillies: Thank you very much.
Deidre Woollard: Want your kids to start investing? Then keep the conversation short. Motley Fool contributor Brian Withers joins Alison Southwick and Robert Brokamp to discuss how he got his kids in the market and let that compound interest go to work. Last month, Brian, you posted a thread on Twitter and it started, my kids will be millionaires by the time they are 40. Here's how, and that here's how wasn't because they will win the lottery or because of wealthy aunt is going to suffer a sudden tragic accident. Don't ask how you know that. The answer was because you introduced investing to your kids at a young age, which is an incredible gift to give someone you love. The younger, the better. Brian, how did this happen?
Brian Withers: Let's jump in the wayback machine back to 2004. Fancy music. I was 37 years old. My kids were 5 and 7, and I had just joined The Motley Fool and at the time, I had this realization that investing was all about time in the market and not timing the market. I've been investing for about six years at that point. This realization just hit me like a ton of bricks, and I was like, man, if I just realized this 10 years ago, 15 years ago, wait a minute. I can give my kids a head start that I didn't have. In fact, I can give them about a 30-year head start. That's when I committed that I was going to make this happen however I was going to try to make it happen.
Deidre Woollard: Your boys are now in their 20s, but you started when they were about 5 and 7. What exactly did you do? Because while I'm sure your kids were very advanced, they probably weren't ready for a discounted cash flow and EBITDA.
Brian Withers: I don't know that we've ever done this cash flow with the kids. But it all started with a piece of construction paper and a Buzz Lightyear figurine. It was something I called the pennies game. I took one of these 11 by 17 pieces of construction paper and broke it into six squares, or made it into six squares, and then I took a Buzz Lightyear figurine and put it on one of the squares. At the time, Pixar was a public company, and so that square, essentially represented Pixar. I drew the golden arches for McDonald's. I took a Nintendo game cartridges that they had for EA sports, and I filled in the rest of the squares with other companies they were familiar with. Then I sat them around the little piece of construction paper and it gave them a set of pennies and they said, invest each as many pennies as you want into the companies that you think have the brightest future, the ones that you like the best. They went ahead and they put their pennies down and five minutes later they were off back to their Game Boy colors, playing one of their Pokémon games. It was quick and done. They were like, whatever. [laughs]
Deidre Woollard: We'll get back to having low expectations. We'll probably visit that in a little bit here, but let's talk a little bit more than about, so they put the pennies where they wanted to, they allotted their little chit, so to speak. Then what did you do? How did this then works or the mechanics of the pennies game throughout the year?
Brian Withers: For each penny, it represented $100 and I invested a $100 into each of the companies that they had chosen on the piece of construction paper. The next year, I had them more involved in the process about picking the companies that went onto the piece of construction paper. We did it just once a year and part of the reason i did it once a year so, I can have enough money so that they could spread it out over a few companies. I always have it hard time just picking one stock if I can only invest in one stock today. That allowed for multiple purchases. The other piece that I did was I wanted to set them up for success. I picked from a vetted list of Stock Advisor buy recommendations so that I knew that these were good companies to start with. Then the last piece was, I let them pick. I didn't influence their picks and so they knew that they were in charge of what they were investing in and how much.
Deidre Woollard: What happened when your kids got older? Like how did the pennies games evolve or how did the conversations change?
Brian Withers: After a few years, I actually shared their portfolio with them and partially because I didn't want them already picking stocks that were already more than maybe 10 percent of their portfolio that they had. But as they got older and they got more savvy with computers, I set up a spreadsheet to split the money up between the stocks that they selected. Eventually, they set up the buy orders in their Fidelity account to buy the stocks. We rarely sold, but if there was a decision that came up, we thought it was a good time to do it. We always involve the kids and the decision and they had the final word. We did this once a year for about 12 years until the oldest started in college, and then we stopped funding the accounts.
Deidre Woollard: In the past, I've tried to talk to my child about investing. She's 9 now. It made me feel a bit better that you had a similar experience with your kids, which of course, as we've mentioned before, it leads to the advice of have low expectations on how much time you're going to spend actually talking stocks?
Brian Withers: I remember when I brought up it's time to do the pennies game again this summer. I would actually get eye rolls. [laughs] It's like, no, don't make me do it, like seriously. We did drag them through a few years, but I did share when good things happen, like there was a spiffy-pop or one of their stocks has doubled over the period of time they had owned it. I think the key thing here is like anything else is to expose your kids to as many experiences possible. Hopefully, something clicks along the way. I guess the other piece is, don't really force it and meet them where they are. I've always tried to ask them about why they picked certain stocks and I always get insightful answers. I've seen some parents insist on an investing journal, but [laughs] that would have never worked with my kids.
Deidre Woollard: No, I don't think mine, either. You talk about thinking about investing in like teachable moments. I'm reminded of a well-worn story here at The Motley Fool of how our founders first fell in love with investing. They tell the story all the time. Basically, they were with their dad at the grocery store and their dad pulled some chocolate pudding down from the shelf and said, "You see this chocolate pudding. We own shares of the company that makes this chocolate pudding. Let's buy some chocolate pudding." From a young age they made the connection that investing gets you something awesome, like chocolate pudding. What are some teachable moments that you've had with your kids about investing?
Brian Withers: There was one story of the Gardners. I remember when they had graduated from high school and they were gifted some stocks, I think, from their grandfather. When they looked at this portfolio statement, they were amazed at the super-low cost basis. Then the value of the stocks was mostly all in gains. I wanted that kind of experience for my kids, and so over this period of time, we started when they were 5 and 7 and like now they're in the 20s. Some of that did happen and that was really cool. But I remember one specific time when Zack was in a Chipotle with me, and he asked, how does Chipotle make money? I was like, oh boy, don't screw this up. [laughs] That went over pretty well and I loved Chipotle as a starter stock because it's pretty easy to understand. But I've also had the kids teach me. I remember they were buying Netflix in 2010 when I was selling. They've bought Apple multiple times, even though both of them are Android phone users. I was like why are you buying Apple stock when you own Android phones? They were like, Dad, didn't you just pay over $1,000 for the new iPhone X? I'm like, well, you got me there. Also Alex has had a tremendous conviction for Tesla from the very beginning.
Deidre Woollard: Let's talk about the type of account options you have for investing when you're a kid. I know this is a topic near and dear to Bro's heart. Bro, you've been sitting there so patiently and quiet. Let's hear everything you have to say about this topic.
Robert Brokamp: Well, maybe not everything, but I do have three options for you. The first is a custodial account like an UGMA and UTMA, that's what Brian used for his kids. There are some tax benefits, so investment earnings up to 1,150 is tax-free for the kid and then the next 1,150 is taxed at the kid's tax bracket now, but then gains taxed after that are taxed at the parents' tax bracket. I should add that these numbers are for 2022 and they're going up a bit in 2023. Another thing you need to know about these accounts as the kids get control at the age of majority and that varies by state, but it's generally 18 to 21, but can be as high as 25 in some states. Then at that point, once they get controlling, do whatever they want with the money. It's important to know that the account is considered an asset of the child on college financial aid applications, which lowers age eligibility when compared to maybe a parental asset. Then finally on this, it's an irrevocable gift, so the money must be used for the kid's benefit and you can't take it back. A second option might be a college savings account like a 529 or a Coverdell. These have tax benefits, too. The growth and withdrawals are tax-free if the money is used for qualified educational expenses. But this won't set your kid up to be a millionaire by age 40 as Brian is trying to do with his kids, because obviously the money will be spent on college. That said it can still teach kids about the power of just regularly contributing to a portfolio and letting it grow over the years. Then the third option is you just own the account, but you eventually gift it to the kid. The benefits of this are basically more control because you can spend the money however you want. You give it to the kid when you feel she or he is ready. Frankly, some kids aren't ready to just be given thousands of dollars when they're 21 or so. This will lower the impact and financial aid eligibility because it's considered a parental asset. The main downside of this is that you'll load the taxes on the interest, dividends and gains while the account is yours. When you give the account to your kid, the cost basis of the investments will carry over.
Deidre Woollard: Brian, before we get to your final advice here for people who want to get their young loved ones investing. Well, how can they connect with you online? You are on Twitter? I know you're on Twitter. Where else?
Brian Withers: I'm on Twitter @StockswithBrian and then I'm also on LinkedIn. Look me up, Brian Withers.
Deidre Woollard: Look him up. He's a nice guy, is great to hang out with. All right, Brian, what is your parting advice here?
Brian Withers: I guess last I'd like to encourage members to start with even a small amount. Just little math. I guess we can do math on the show. If you invest 600 bucks over 10 years, say your kids between the ages of 7 and 17, by the time they're 23, they could have $18,000 built up if they achieve a 10 percent annual growth rate, which is the market average over the last 50-100 years. Having that nest egg starting out could be a huge financial advantage. A side benefit is they already have 15 years of, air quotes here, investing experience. Hopefully, we'll realize the power of long-term buy and hold.
Deidre Woollard: As always, people on the program may have interest in the stocks they talk about and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what your hear. I'm Deidre Woollard. Thanks for listening. We'll see you tomorrow.
Alison Southwick has positions in Apple. Brian Withers has no position in any of the stocks mentioned. Deidre Woollard has positions in Apple. Jim Gillies has positions in Apple and Chipotle Mexican Grill. Robert Brokamp, CFP(R) has positions in Tesla. The Motley Fool has positions in and recommends Apple, Chipotle Mexican Grill, Netflix, and Tesla. The Motley Fool recommends Electronic Arts and Nintendo and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In this podcast, Motley Fool analysts Deidre Woollard and Jim Gillies discuss: Europe's energy crunch and why Russia isn't playing along with price caps. They basically have a market space that not a lot of people come into, all are going to be chasing them down the distribution network is already a prohibitive, I think, competitive advantage for potential interlopers. Motley Fool contributor Brian Withers joins Alison Southwick and Robert Brokamp to discuss how he got his kids in the market and let that compound interest go to work.
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In this podcast, Motley Fool analysts Deidre Woollard and Jim Gillies discuss: Europe's energy crunch and why Russia isn't playing along with price caps. Plus, Motley Fool contributor Brian Withers joins Motley Fool host Alison Southwick and Motley Fool personal finance expert Robert Brokamp to discuss how to encourage kids to invest. Motley Fool contributor Brian Withers joins Alison Southwick and Robert Brokamp to discuss how he got his kids in the market and let that compound interest go to work.
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In this podcast, Motley Fool analysts Deidre Woollard and Jim Gillies discuss: Europe's energy crunch and why Russia isn't playing along with price caps. Because as a company buys back its own stock, if you're not selling, you own a greater proportionate amount of the company because you didn't sell while the company bought in and took it out. Deidre Woollard: As always, people on the program may have interest in the stocks they talk about and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what your hear.
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In this podcast, Motley Fool analysts Deidre Woollard and Jim Gillies discuss: Europe's energy crunch and why Russia isn't playing along with price caps. Deidre Woollard: Want your kids to start investing? Deidre Woollard: As always, people on the program may have interest in the stocks they talk about and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what your hear.
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2022-12-10 00:00:00 UTC
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Twitter to relaunch Twitter Blue at higher price for Apple users
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https://www.nasdaq.com/articles/twitter-to-relaunch-twitter-blue-at-higher-price-for-apple-users
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Adds background
Dec 10 (Reuters) - Twitter Inc will relaunch a revamped version of its subscription service Twitter Blue on Monday at a higher price for Apple users, the company said in a tweet on Saturday.
The company said users could subscribe to the revamped service that will allow subscribers to edit tweets, upload 1080p videos and get a blue checkmark post account verification, for $8 per month through the web but for $11 per month through Apple iOS.
Twitter did not explain why Apple users were being charged more than others on the web but there have been media reports that the company was looking for ways to offset fees charged in the App Store.
Twitter had initially launched the Twitter Blue early in November before pausing it as fake accounts mushroomed. It was then scheduled to launch again on Nov. 29 but was pushed back.
Elon Musk, who took Twitter private for $44 billion in November had in a series of tweets last month listed various grievances with Apple, including the 30% fee the iPhone maker charges software developers for in-app purchases.
He had then accused Apple of threatening to block Twitter from its app store and also said that the iPhone maker had stopped advertising on the social media platform.
However, after a subsequent meeting with Apple chief executive Tim Cook, he tweeted that the misunderstanding about Twitter being removed from Apple's app store was resolved.
Both Twitter and Apple did not respond to Reuters request for comments.
(Reporting by Gokul Pisharody and Kanjyik Ghosh in Bengaluru; Editing by David Gregorio and Aurora Ellis)
((Gokul.Pisharody@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 company said users could subscribe to the revamped service that will allow subscribers to edit tweets, upload 1080p videos and get a blue checkmark post account verification, for $8 per month through the web but for $11 per month through Apple iOS. Elon Musk, who took Twitter private for $44 billion in November had in a series of tweets last month listed various grievances with Apple, including the 30% fee the iPhone maker charges software developers for in-app purchases. He had then accused Apple of threatening to block Twitter from its app store and also said that the iPhone maker had stopped advertising on the social media platform.
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Adds background Dec 10 (Reuters) - Twitter Inc will relaunch a revamped version of its subscription service Twitter Blue on Monday at a higher price for Apple users, the company said in a tweet on Saturday. The company said users could subscribe to the revamped service that will allow subscribers to edit tweets, upload 1080p videos and get a blue checkmark post account verification, for $8 per month through the web but for $11 per month through Apple iOS. Elon Musk, who took Twitter private for $44 billion in November had in a series of tweets last month listed various grievances with Apple, including the 30% fee the iPhone maker charges software developers for in-app purchases.
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Adds background Dec 10 (Reuters) - Twitter Inc will relaunch a revamped version of its subscription service Twitter Blue on Monday at a higher price for Apple users, the company said in a tweet on Saturday. Twitter did not explain why Apple users were being charged more than others on the web but there have been media reports that the company was looking for ways to offset fees charged in the App Store. However, after a subsequent meeting with Apple chief executive Tim Cook, he tweeted that the misunderstanding about Twitter being removed from Apple's app store was resolved.
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The company said users could subscribe to the revamped service that will allow subscribers to edit tweets, upload 1080p videos and get a blue checkmark post account verification, for $8 per month through the web but for $11 per month through Apple iOS. Twitter did not explain why Apple users were being charged more than others on the web but there have been media reports that the company was looking for ways to offset fees charged in the App Store. Twitter had initially launched the Twitter Blue early in November before pausing it as fake accounts mushroomed.
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2022-12-09 00:00:00 UTC
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4 Dividend Stocks to Hold Forever
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https://www.nasdaq.com/articles/4-dividend-stocks-to-hold-forever
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Holding a stock forever may seem crazy, but it's the right way to think about investing in dividend stocks. Companies that generate increasing amounts of cash and return that cash to shareholders can drive a market-beating portfolio, and Travis Hoium highlights four of his buy-and-hold dividend stocks in the video below.
*Stock prices used were the end-of-day prices of Dec. 2, 2022. The video was published on Dec. 8, 2022.
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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. Travis Hoium has positions in Apple and Intel. The Motley Fool has positions in and recommends Amazon.com, Apple, Brookfield Renewable, Intel, Nvidia, Taiwan Semiconductor Manufacturing, and Target. The Motley Fool recommends 3m and Brookfield Renewable Partners and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Taiwan Semiconductor Manufacturing wasn't one of them! The Motley Fool has positions in and recommends Amazon.com, Apple, Brookfield Renewable, Intel, Nvidia, Taiwan Semiconductor Manufacturing, and Target.
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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. The Motley Fool has positions in and recommends Amazon.com, Apple, Brookfield Renewable, Intel, Nvidia, Taiwan Semiconductor Manufacturing, and Target. The Motley Fool recommends 3m and Brookfield Renewable Partners and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple.
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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. The Motley Fool has positions in and recommends Amazon.com, Apple, Brookfield Renewable, Intel, Nvidia, Taiwan Semiconductor Manufacturing, and Target. The Motley Fool recommends 3m and Brookfield Renewable Partners and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple.
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* They just revealed what they believe are the ten best stocks for investors to buy right now... and Taiwan Semiconductor Manufacturing wasn't one of them! Travis Hoium has positions in Apple and Intel. The Motley Fool has positions in and recommends Amazon.com, Apple, Brookfield Renewable, Intel, Nvidia, Taiwan Semiconductor Manufacturing, and Target.
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18055.0
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2022-12-09 00:00:00 UTC
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3 No-Brainer Stocks to Buy Amid the Tech Sell-Off
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AAPL
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https://www.nasdaq.com/articles/3-no-brainer-stocks-to-buy-amid-the-tech-sell-off
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nan
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nan
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After leading the way for the better part of a decade, 2022 has presented a humbling experience for tech stocks. Three of the world's most valuable companies -- Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) -- have all seen their stock prices drop by more than double digits this year. However, these price drops make these three investments no-brainer buys before 2023.
DATA BY YCharts
1. Apple
As the world's most valuable public company, there's no cash cow quite like Apple. In its fiscal year 2022 (FY22), Apple beat Wall Street's expectations by bringing in $394.3 billion in revenue, an 8% increase year over year.
Maybe more important than the revenue is how much free cash flow (FCF) the company managed to have: $111.4 billion. For perspective, here's the FCF for comparable Big Tech companies over that span:
Microsoft: $63.3 billion
Alphabet: $62.5 billion
Meta: $26.4 billion
FCF is important because it's essentially how much money a company has at its disposal. This is important at any time, but especially during times like this, with economic uncertainty and a looming recession. Apple is equipped with all the resources possible to weather any bad economic storm we may experience.
Everyone knows the iPhone reigns supreme for Apple, but the growth of its services business will likely lead the way in the future. Apple's services segment brought in $78.1 billion in revenue in FY22, up over 14% year over year. The Apple ecosystem is hard to leave once you're in it, and as Apple gives its consumers more reasons to stay -- like offering financial services, for example -- it will continue to lead the way for Big Tech.
2. Microsoft
What makes Microsoft a good investment, and ultimately separates it from competitors, is just how ingrained its products and services are into the business world. From cloud services to recruiting on LinkedIn to Excel spreadsheets to PCs and more, Microsoft has done a good job making itself virtually indispensable.
As we near 2023, all signs point to noticeably less consumer spending because of economic conditions. This will have a chain reaction and affect most businesses, but Microsoft's diverse revenue streams and countless corporate clients can help insulate it. It's not recession proof, but it'll be one of the last to feel the ripple effect if it happens.
Because of how much money it makes from software, Microsoft also has higher gross profit margins than other Big Tech companies. This gives it the ability to squeeze out profits from fewer total sales. At the end of the third quarter this year, its gross profit margin was 68%, compared to Apple and Alphabet, which had gross margins of 43% and 56%, respectively.
3. Alphabet
Alphabet has had the worst 2022 of the three companies, down 35% year to date. While many stocks have been plummeting this year despite no real business reason, Alphabet's has taken a bigger hit, mainly due to a slowdown of ad revenue.
However, that was to be expected. Given interest rates and inflation levels, businesses were bound to cut expenses, and advertising is usually one of the starting points.
Digital advertising -- where Alphabet makes the bulk of its money -- is cyclical. When the economy is doing well, digital ads do well, and vice versa. Google's parent company will likely feel the effects of a 2023 recession more than others on this list, but the long-term outlook makes it a worthy investment.
A different type of advertising will drive Alphabet's future growth: e-commerce. The company is trying to gain more ground through e-commerce-related internet searches. It wants to be the first place people start their shopping journey, regardless of who they eventually buy from. Google's search engine user base (billions of people) is unmatched, and with enough focus on grabbing some of the e-commerce pie by sticking to its strengths, the future could look very bright on the other side of this rough economic period.
These tech stocks might be too cheap to turn down
A metric like the price-to-earnings (P/E) ratio can give more context about a stock's price. The P/E ratio tells you how much you're paying for every dollar of a company's earnings. The higher the P/E ratio, the more expensive a stock is relative to its earnings. However, whether a P/E ratio is considered "high" largely depends on the industry.
Tech is an industry with historically high P/E ratios, but these stocks are as cheap as they've been in quite some time due to price drops with the recent sell-offs. Here's how much their P/E ratios have dropped from their highs in the past decade.
DATA BY YCharts
Even if you're not a value investor, you can rarely go wrong with investing in great companies that are trading for relatively cheap.
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. Stefon Walters has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Alphabet, Apple, Meta Platforms, and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Three of the world's most valuable companies -- Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) -- have all seen their stock prices drop by more than double digits this year. While many stocks have been plummeting this year despite no real business reason, Alphabet's has taken a bigger hit, mainly due to a slowdown of ad revenue. Google's search engine user base (billions of people) is unmatched, and with enough focus on grabbing some of the e-commerce pie by sticking to its strengths, the future could look very bright on the other side of this rough economic period.
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Three of the world's most valuable companies -- Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) -- have all seen their stock prices drop by more than double digits this year. For perspective, here's the FCF for comparable Big Tech companies over that span: Microsoft: $63.3 billion Alphabet: $62.5 billion Meta: $26.4 billion FCF is important because it's essentially how much money a company has at its disposal. The Motley Fool has positions in and recommends Alphabet, Apple, Meta Platforms, and Microsoft.
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Three of the world's most valuable companies -- Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) -- have all seen their stock prices drop by more than double digits this year. In its fiscal year 2022 (FY22), Apple beat Wall Street's expectations by bringing in $394.3 billion in revenue, an 8% increase year over year. For perspective, here's the FCF for comparable Big Tech companies over that span: Microsoft: $63.3 billion Alphabet: $62.5 billion Meta: $26.4 billion FCF is important because it's essentially how much money a company has at its disposal.
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Three of the world's most valuable companies -- Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) -- have all seen their stock prices drop by more than double digits this year. However, these price drops make these three investments no-brainer buys before 2023. Microsoft What makes Microsoft a good investment, and ultimately separates it from competitors, is just how ingrained its products and services are into the business world.
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18056.0
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2022-12-09 00:00:00 UTC
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META Banks on Solid Returns From Family of Apps for Growth
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AAPL
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https://www.nasdaq.com/articles/meta-banks-on-solid-returns-from-family-of-apps-for-growth
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nan
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nan
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Meta Platforms META shares have tumbled 65.7% in the year-to-date period compared with the Zacks Internet – Software industry’s decline of 61.1%.
Meta’s primary source of income is its ad revenue business. However, in the third quarter of 2022, advertising revenues (99.3% of Family of Apps 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.
However, revenues from Family of Apps (99% of total revenues), which includes Facebook, Instagram, Messenger, WhatsApp and other services, decreased 3.6% year over year to $27.43 billion. The company expects revenues to decrease further in the coming quarter.
Meta is facing the worst downturn in its operational history. Meta’s ad revenue business is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes.
Apple’s iOS changes have made ad targeting difficult, which has increased the cost of driving outcomes. Measuring these outcomes is tough, and Meta expects these factors to hurt advertising growth in the fourth quarter of 2022.
Meta Platforms, Inc. Price and Consensus
Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote
The U.S. economy is facing macroeconomic turmoil due to the rising inflation and recession triggered by interest rate hikes by the U.S. Federal Reserve.
Rising inflation has also compelled both domestic and global customers to pull back on their purchases.
Consequently, the slowing economy is likely to trigger cuts in ad spending, which will impact the revenues of ad-driven internet stocks like Meta, impacting their bottom-line growth.
Meta’s financial plans to generate sufficient operating income from its Family of Apps business segment to fund the growth of its Reality Labs, which is responsible for building the metaverse, have taken a major hit. The company has been recently closing various long-term projects, which are burning a lot of cash.
Amidst such a situation, Meta has been investing heavily in AI to boost its user growth in its Family of Apps and increase top-line growth to meet its future goals of creating the metaverse.
META Investing in AI to Drive Future Growth
Meta Platforms recently utilized AI to introduce age verification technology to Facebook Dating in the United States to prevent users under the age of 18 to access experiences meant to be enjoyed as adults. Meta’s recent initiative to use AI to launch age verification in Facebook dating is likely to boost user confidence amid stiffening competition.
Meta recently launched avatars on WhatsApp. The company used AI to create a digital version of users with various features, which creates a new way of connecting with users and would be a small preview of how it would feel to communicate with others in the alternate reality of the metaverse.
META also recently announced that Liverpool football club debuted its collection of virtual apparel in Meta Avatar stores on Facebook, Messenger and Instagram. It will be available in virtual reality later this year. The recent offering of the football club’s virtual merchandise as avatars is expected to attract sports fans around the globe to Meta’s family of apps and boost user growth.
Meta is planning to build the metaverse as an independent e-commerce platform. To do so, it is investing heavily in building its virtual reality space to give customers an immersive experience in terms of various aspects like social networking and gaming.
META, which currently carries a Zacks Rank #3 (Hold), is banking 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 NVDA 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.
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
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Meta’s ad revenue business is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Meta’s financial plans to generate sufficient operating income from its Family of Apps business segment to fund the growth of its Reality Labs, which is responsible for building the metaverse, have taken a major hit.
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Meta’s ad revenue business is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. META Investing in AI to Drive Future Growth Meta Platforms recently utilized AI to introduce age verification technology to Facebook Dating in the United States to prevent users under the age of 18 to access experiences meant to be enjoyed as adults.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Meta’s ad revenue business is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. META Investing in AI to Drive Future Growth Meta Platforms recently utilized AI to introduce age verification technology to Facebook Dating in the United States to prevent users under the age of 18 to access experiences meant to be enjoyed as adults.
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Meta’s ad revenue business is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Amidst such a situation, Meta has been investing heavily in AI to boost its user growth in its Family of Apps and increase top-line growth to meet its future goals of creating the metaverse.
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18057.0
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2022-12-09 00:00:00 UTC
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Ericsson Reaches Deal To End Patent-related Legal Disputes With Apple
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AAPL
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https://www.nasdaq.com/articles/ericsson-reaches-deal-to-end-patent-related-legal-disputes-with-apple
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nan
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(RTTNews) - Swedish telecom equipment group Ericsson (ERIC) said Friday that it has reached a multi-year, global patent license agreement with Apple Inc. (AAPL), ending all ongoing patent-related legal disputes in several countries.
The agreement includes a cross-license relating to patented cellular standard-essential technologies and grants certain other patent rights.
Ericsson estimates the fourth quarter 2022 IPR licensing revenues will be 5.5 billion Swedish kronor - 6.0 billion kronor, which includes effects of the agreement with Apple covering sales from January 15, 2022, and ongoing IPR business with all other licensees.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Swedish telecom equipment group Ericsson (ERIC) said Friday that it has reached a multi-year, global patent license agreement with Apple Inc. (AAPL), ending all ongoing patent-related legal disputes in several countries. The agreement includes a cross-license relating to patented cellular standard-essential technologies and grants certain other patent rights. Ericsson estimates the fourth quarter 2022 IPR licensing revenues will be 5.5 billion Swedish kronor - 6.0 billion kronor, which includes effects of the agreement with Apple covering sales from January 15, 2022, and ongoing IPR business with all other licensees.
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(RTTNews) - Swedish telecom equipment group Ericsson (ERIC) said Friday that it has reached a multi-year, global patent license agreement with Apple Inc. (AAPL), ending all ongoing patent-related legal disputes in several countries. The agreement includes a cross-license relating to patented cellular standard-essential technologies and grants certain other patent rights. Ericsson estimates the fourth quarter 2022 IPR licensing revenues will be 5.5 billion Swedish kronor - 6.0 billion kronor, which includes effects of the agreement with Apple covering sales from January 15, 2022, and ongoing IPR business with all other licensees.
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(RTTNews) - Swedish telecom equipment group Ericsson (ERIC) said Friday that it has reached a multi-year, global patent license agreement with Apple Inc. (AAPL), ending all ongoing patent-related legal disputes in several countries. Ericsson estimates the fourth quarter 2022 IPR licensing revenues will be 5.5 billion Swedish kronor - 6.0 billion kronor, which includes effects of the agreement with Apple covering sales from January 15, 2022, and ongoing IPR business with all other licensees. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Swedish telecom equipment group Ericsson (ERIC) said Friday that it has reached a multi-year, global patent license agreement with Apple Inc. (AAPL), ending all ongoing patent-related legal disputes in several countries. The agreement includes a cross-license relating to patented cellular standard-essential technologies and grants certain other patent rights. Ericsson estimates the fourth quarter 2022 IPR licensing revenues will be 5.5 billion Swedish kronor - 6.0 billion kronor, which includes effects of the agreement with Apple covering sales from January 15, 2022, and ongoing IPR business with all other licensees.
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18058.0
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2022-12-09 00:00:00 UTC
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Ericsson and Apple end patent-related legal disputes with patent license deal
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AAPL
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https://www.nasdaq.com/articles/ericsson-and-apple-end-patent-related-legal-disputes-with-patent-license-deal
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nan
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nan
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Adds detail
STOCKHOLM, Dec 9 (Reuters) - Swedish telecom equipment group Ericsson ERICb.STsaid on Friday it had agreed a multi-year global patent license agreement with Apple AAPL.O.
"The settlement ends all ongoing patent-related legal disputes between the parties," Ericsson said in a statement.
"Including effects of the settlement, and including ongoing IPR business with all other licensees, Ericsson estimates fourth-quarter 2022 IPR licensing revenues will be 5.5 billion-5.0 billion crowns $530.3-$578.5 million)."
The deal includes global cross-license for patented cellular standard-essential technologies and grants certain other patent rights, Ericsson said.
($1 = 10.3720 Swedish crowns)
(Reporting by Anna Ringstrom, editing by Terje Solsvik)
((anna.ringstrom@thomsonreuters.com; +46 8 502 423 74; Reuters Messaging: anna.ringstrom.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds detail STOCKHOLM, Dec 9 (Reuters) - Swedish telecom equipment group Ericsson ERICb.STsaid on Friday it had agreed a multi-year global patent license agreement with Apple AAPL.O. "The settlement ends all ongoing patent-related legal disputes between the parties," Ericsson said in a statement. ($1 = 10.3720 Swedish crowns) (Reporting by Anna Ringstrom, editing by Terje Solsvik) ((anna.ringstrom@thomsonreuters.com; +46 8 502 423 74; Reuters Messaging: anna.ringstrom.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds detail STOCKHOLM, Dec 9 (Reuters) - Swedish telecom equipment group Ericsson ERICb.STsaid on Friday it had agreed a multi-year global patent license agreement with Apple AAPL.O. "Including effects of the settlement, and including ongoing IPR business with all other licensees, Ericsson estimates fourth-quarter 2022 IPR licensing revenues will be 5.5 billion-5.0 billion crowns $530.3-$578.5 million)." ($1 = 10.3720 Swedish crowns) (Reporting by Anna Ringstrom, editing by Terje Solsvik) ((anna.ringstrom@thomsonreuters.com; +46 8 502 423 74; Reuters Messaging: anna.ringstrom.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds detail STOCKHOLM, Dec 9 (Reuters) - Swedish telecom equipment group Ericsson ERICb.STsaid on Friday it had agreed a multi-year global patent license agreement with Apple AAPL.O. "Including effects of the settlement, and including ongoing IPR business with all other licensees, Ericsson estimates fourth-quarter 2022 IPR licensing revenues will be 5.5 billion-5.0 billion crowns $530.3-$578.5 million)." ($1 = 10.3720 Swedish crowns) (Reporting by Anna Ringstrom, editing by Terje Solsvik) ((anna.ringstrom@thomsonreuters.com; +46 8 502 423 74; Reuters Messaging: anna.ringstrom.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds detail STOCKHOLM, Dec 9 (Reuters) - Swedish telecom equipment group Ericsson ERICb.STsaid on Friday it had agreed a multi-year global patent license agreement with Apple AAPL.O. "The settlement ends all ongoing patent-related legal disputes between the parties," Ericsson said in a statement. "Including effects of the settlement, and including ongoing IPR business with all other licensees, Ericsson estimates fourth-quarter 2022 IPR licensing revenues will be 5.5 billion-5.0 billion crowns $530.3-$578.5 million)."
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18059.0
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2022-12-09 00:00:00 UTC
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Ericsson and Apple ink global patent license deal
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AAPL
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https://www.nasdaq.com/articles/ericsson-and-apple-ink-global-patent-license-deal
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nan
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nan
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STOCKHOLM, Dec 9 (Reuters) - Ericsson ERICb.ST and Apple AAPL.O have reached a multi-year, global patent license agreement, the Swedish telecom equipment group said in a statement on Friday.
(Reporting by Anna Ringstrom, editing by Terje Solsvik)
((anna.ringstrom@thomsonreuters.com; +46 8 502 423 74; Reuters Messaging: anna.ringstrom.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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STOCKHOLM, Dec 9 (Reuters) - Ericsson ERICb.ST and Apple AAPL.O have reached a multi-year, global patent license agreement, the Swedish telecom equipment group said in a statement on Friday. (Reporting by Anna Ringstrom, editing by Terje Solsvik) ((anna.ringstrom@thomsonreuters.com; +46 8 502 423 74; Reuters Messaging: anna.ringstrom.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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STOCKHOLM, Dec 9 (Reuters) - Ericsson ERICb.ST and Apple AAPL.O have reached a multi-year, global patent license agreement, the Swedish telecom equipment group said in a statement on Friday. (Reporting by Anna Ringstrom, editing by Terje Solsvik) ((anna.ringstrom@thomsonreuters.com; +46 8 502 423 74; Reuters Messaging: anna.ringstrom.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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STOCKHOLM, Dec 9 (Reuters) - Ericsson ERICb.ST and Apple AAPL.O have reached a multi-year, global patent license agreement, the Swedish telecom equipment group said in a statement on Friday. (Reporting by Anna Ringstrom, editing by Terje Solsvik) ((anna.ringstrom@thomsonreuters.com; +46 8 502 423 74; Reuters Messaging: anna.ringstrom.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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STOCKHOLM, Dec 9 (Reuters) - Ericsson ERICb.ST and Apple AAPL.O have reached a multi-year, global patent license agreement, the Swedish telecom equipment group said in a statement on Friday. (Reporting by Anna Ringstrom, editing by Terje Solsvik) ((anna.ringstrom@thomsonreuters.com; +46 8 502 423 74; Reuters Messaging: anna.ringstrom.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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18060.0
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2022-12-09 00:00:00 UTC
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59% of Warren Buffett's Portfolio Is Invested in Just 3 Stocks
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AAPL
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https://www.nasdaq.com/articles/59-of-warren-buffetts-portfolio-is-invested-in-just-3-stocks
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nan
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nan
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If you've ever wondered why Wall Street professionals and everyday investors pay such close attention to what Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has been buying or selling, just take a closer look at his track record. Since taking the reins in 1965, the Oracle of Omaha has led his company's Class A shares (BRK.A) to an aggregate return of 3,641,613% (through Dec. 31, 2021). That's 120 times greater than the broad-based S&P 500, including dividends, over the same period.
Warren Buffett's success has been driven by a mammoth list of factors, including his long-term mindset and attraction to dividend stocks and cyclical businesses. But perhaps tops on the list of reasons Berkshire Hathaway has outperformed is Buffett's shunning of portfolio diversification. In the Oracle of Omaha's eyes, diversification is only something investors should rely on if they don't know what they're doing.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Warren Buffett most definitely knows what he's doing -- and he has 59% of Berkshire Hathaway's $345 billion investment portfolio tied up in just three stocks.
Apple: $135.3 billion (39.2%) of invested assets
Including the assets held by Warren Buffett's secret portfolio, New England Asset Management, Berkshire's position in tech stock Apple (NASDAQ: AAPL) accounted for more than $135 billion of invested assets as of the end of last week. That's close to $0.40 of every $1 invested by Buffett's company tied up in Apple.
Aside from being the largest publicly traded company in the U.S., Apple offers Buffett three key selling points. First, there's the value of its brand and the customer loyalty it brings to the table. According to the Kantar BrandZ global survey released in June, Apple reclaimed the top spot as the world's most-valuable brand. The survey cited a multitude of competitive advantages, innovations, and products that resonate with consumers. For instance, the iPhone has gobbled up a little over half of all smartphone market share in the United States.
The second reason Apple makes for such a rock-solid investment is its innovation. In addition to developing smartphones, laptops, tablets, watches, and other accessories that consumers absolutely flock to, the company is in the process of shifting its operating model to focus on subscription services. Shifting to a subscription-driven platform should help minimize the revenue peaks and troughs often associated with physical product replacement cycles. Additionally, subscriptions offer higher margins and tend to improve customer loyalty.
The third reason Warren Buffett thinks fondly of Apple is its capital-return program. Although its 0.6% yield might not sound like much, Apple's nominal annual payout of $14.64 billion is one of the largest in the world.
Furthermore, since launching an aggressive share-repurchase program in 2013, the company has bought back $554 billion worth of its own stock. For context of just how massive this buyback program has been, only five S&P 500 companies not named Apple have a market cap of more than $554 billion -- and Berkshire Hathaway happens to be one of them.
Despite not being immune to cyclical slowdowns, Apple remains well positioned to thrive over the long run.
Bank of America: $37.3 billion (10.8%) of invested assets
The second stock Warren Buffett and his investment team have absolutely piled into is Bank of America (NYSE: BAC). BofA, as it's also called, accounted for close to 11% of invested assets as of last week. Keep in mind this figure also includes positions held by specialty investment firm New England Asset Management, which Berkshire Hathaway owns.
There's a very good reason financials are, arguably, Buffett's favorite sector: They're cyclical. As a long-term investor, the Oracle of Omaha is well aware that periods of economic expansion last considerably longer than downturns and recessions. Even though bank stocks like BofA do take their lumps when recessions arise, they benefit far more from disproportionately long expansions. In other words, patience pays off big time when investing in bank stocks.
This is a particularly interesting time to have $37.3 billion tied up in Bank of America. At no point in history has the Federal Reserve aggressively hiked interest rates into a plunging stock market. Although higher interest rates threaten to cool lending and slow economic activity, they should be a boon for banks that have outstanding variable-rate loans. Bank of America's net interest income jumped $2.7 billion during the third quarter from the prior-year period, and the company has estimated that a 100 basis-point parallel shift in the interest rate yield curve would bring in $4.2 billion in addition to net interest income over the next 12 months.
Bank of America's digitization push is paying off, too. The company closed out September with 43 million active digital users -- that's up 5 million from the comparable quarter in 2019 -- and saw 48% of total sales completed online or via mobile app. On top of added convenience, digital transactions cost banks just a fraction of what in-person and phone-based interactions run. As more users shift to online banking, BofA should be able to consolidate some of its branches and improve its operating efficiency.
Lastly, bank stocks have a pretty rich history of rewarding their shareholders during the good times. Including dividends and share buybacks, it's not uncommon for Bank of America to approve capital-return programs topping $20 billion per year.
Image source: Getty Images.
Chevron: $30.7 billion (8.9%) of invested assets
The third stock that Warren Buffett made a significant portion of Berkshire Hathaway's investment portfolio is energy stock Chevron (NYSE: CVX). As of last week, Chevron accounted for close to 9% of invested assets, including the shares also held by New England Asset Management.
What's intriguing about this position is that, prior to 2022, energy stocks didn't comprise a greater than 8.9% weighting in Berkshire's portfolio this century. Now, Chevron alone comprises an 8.9% stake, with Occidental Petroleum contributing to make energy Buffett's third-largest sector by invested assets.
With roughly an eighth of his company's invested assets tied up in energy stocks, Buffett appears to be sending a very clear message that oil and natural gas prices will remain above average for some time. Even though Chevron is an integrated operator, it generates its best margins from drilling. Due to pandemic-related underinvestment from energy companies, as well as Russia's invasion of Ukraine, a challenged energy supply chain favors higher energy commodity spot prices.
Chevron is also a considerably safer bet than most oil and gas stocks. As noted, it's an integrated operator, which means that in addition to drilling and exploration, it operates midstream pipelines and downstream assets (refineries and chemical plants). Midstream providers utilize long-term, fixed-fee and volume-based contracts with drillers to produce predictable cash flow. Meanwhile, refineries and chemical plants benefit from higher demand and lower input costs when the price for crude oil falls. In short, Chevron is hedged for whatever the energy market throws its way.
It's an oil stock with a relatively pristine balance sheet, too. As of the end of the third quarter, Chevron had $8.2 billion in net debt, equating to a debt ratio of 13%. That's below virtually all major oil and gas stocks, and it affords Chevron superior financial flexibility.
Historically high energy commodity prices have also allowed Chevron to increase its dividend and enact a share-repurchase program for up to $15 billion worth of its common stock in 2022. A healthy capital-return program and industry-leading balance sheet is a recipe for a company to find itself in Buffett's good graces.
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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. Sean Williams has positions in Bank of America. 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: $135.3 billion (39.2%) of invested assets Including the assets held by Warren Buffett's secret portfolio, New England Asset Management, Berkshire's position in tech stock Apple (NASDAQ: AAPL) accounted for more than $135 billion of invested assets as of the end of last week. In addition to developing smartphones, laptops, tablets, watches, and other accessories that consumers absolutely flock to, the company is in the process of shifting its operating model to focus on subscription services. With roughly an eighth of his company's invested assets tied up in energy stocks, Buffett appears to be sending a very clear message that oil and natural gas prices will remain above average for some time.
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Apple: $135.3 billion (39.2%) of invested assets Including the assets held by Warren Buffett's secret portfolio, New England Asset Management, Berkshire's position in tech stock Apple (NASDAQ: AAPL) accounted for more than $135 billion of invested assets as of the end of last week. Bank of America: $37.3 billion (10.8%) of invested assets The second stock Warren Buffett and his investment team have absolutely piled into is Bank of America (NYSE: BAC). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on Apple.
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Apple: $135.3 billion (39.2%) of invested assets Including the assets held by Warren Buffett's secret portfolio, New England Asset Management, Berkshire's position in tech stock Apple (NASDAQ: AAPL) accounted for more than $135 billion of invested assets as of the end of last week. Bank of America: $37.3 billion (10.8%) of invested assets The second stock Warren Buffett and his investment team have absolutely piled into is Bank of America (NYSE: BAC). Chevron: $30.7 billion (8.9%) of invested assets The third stock that Warren Buffett made a significant portion of Berkshire Hathaway's investment portfolio is energy stock Chevron (NYSE: CVX).
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Apple: $135.3 billion (39.2%) of invested assets Including the assets held by Warren Buffett's secret portfolio, New England Asset Management, Berkshire's position in tech stock Apple (NASDAQ: AAPL) accounted for more than $135 billion of invested assets as of the end of last week. Bank of America: $37.3 billion (10.8%) of invested assets The second stock Warren Buffett and his investment team have absolutely piled into is Bank of America (NYSE: BAC). This is a particularly interesting time to have $37.3 billion tied up in Bank of America.
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18061.0
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2022-12-09 00:00:00 UTC
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Why Apple Stock Eked Out a Market Beat Today
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AAPL
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https://www.nasdaq.com/articles/why-apple-stock-eked-out-a-market-beat-today
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nan
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nan
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What happened
There wasn't much new or exciting reported with Apple (NASDAQ: AAPL) stock on Friday, save for a fresh development in the legal sphere. Apple enthusiasts tend to get excited about the stock when the company announces a flashy new product or some positivefinancial news not so much when the latest is about the law.
So while its latest settlement and resulting licensing deal didn't bring back a horde of bulls into the stock, it did give the company's stock a beat over the S&P 500 index. Apple closed the day only 0.3% lower, against the bellwether index's 0.7% decline.
So what
Early Friday, storied electronics component maker Ericsson (NASDAQ: ERIC) announced that it signed a global patent licensing and settlement agreement with Apple. At a stroke, this binds the two companies together in a renewed partnership and retires a dispute over 5G technology patents.
Previously, Ericsson and Apple had sued and counter-sued each other following their failure to renew a seven-year licensing contract on such technology. That deal was finalized in 2015.
Ericsson did not provide much detail about the new agreement; the U.S. tech giant has yet to comment publicly on it. Ericsson did quote its chief intellectual property officer Christina Petersson as saying that it "is of strategic importance to our 5G licensing program."
"This will allow both companies to continue to focus on bringing the best technology to theglobal market" she added.
Now what
It was somewhat ridiculous that Apple and Ericsson, more or less cooperative partners in the past, would get into unproductive tussles over patent licensing. While we aren't privy to the particulars of the new arrangement, it's indisputably a plus for both companies; the fewer legal headaches each has to cope with, the better.
10 stocks we like better than Apple
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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 There wasn't much new or exciting reported with Apple (NASDAQ: AAPL) stock on Friday, save for a fresh development in the legal sphere. Apple enthusiasts tend to get excited about the stock when the company announces a flashy new product or some positivefinancial news not so much when the latest is about the law. So what Early Friday, storied electronics component maker Ericsson (NASDAQ: ERIC) announced that it signed a global patent licensing and settlement agreement with Apple.
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What happened There wasn't much new or exciting reported with Apple (NASDAQ: AAPL) stock on Friday, save for a fresh development in the legal sphere. So while its latest settlement and resulting licensing deal didn't bring back a horde of bulls into the stock, it did give the company's stock a beat over the S&P 500 index. So what Early Friday, storied electronics component maker Ericsson (NASDAQ: ERIC) announced that it signed a global patent licensing and settlement agreement with Apple.
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What happened There wasn't much new or exciting reported with Apple (NASDAQ: AAPL) stock on Friday, save for a fresh development in the legal sphere. So while its latest settlement and resulting licensing deal didn't bring back a horde of bulls into the stock, it did give the company's stock a beat over the S&P 500 index. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Eric Volkman has positions in Apple.
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What happened There wasn't much new or exciting reported with Apple (NASDAQ: AAPL) stock on Friday, save for a fresh development in the legal sphere. So while its latest settlement and resulting licensing deal didn't bring back a horde of bulls into the stock, it did give the company's stock a beat over the S&P 500 index. So what Early Friday, storied electronics component maker Ericsson (NASDAQ: ERIC) announced that it signed a global patent licensing and settlement agreement with Apple.
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18062.0
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2022-12-09 00:00:00 UTC
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Buffett's Buys; 3 Stocks Catching His Attention in 2022
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AAPL
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https://www.nasdaq.com/articles/buffetts-buys-3-stocks-catching-his-attention-in-2022
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nan
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nan
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Warren Buffett, also known as the Oracle of Omaha, is undoubtedly a name that comes to the forefront of many minds when thinking of or discussing the financial world. He’s one of the most widely-followed individuals in the realm for a good reason – he’s achieved stellar returns.
Buffett is a philanthropist and businessman. He’s the CEO of Berkshire Hathaway (BRK.B), a diversified holding company whose subsidiaries engage in insurance, freight rail transportation, energy generation and distribution, manufacturing, and others.
To put it simply, investors closely monitor each of his moves.
And in 2022, Buffett has gone on the offensive, undoubtedly taking advantage of the massive market recalibration.
Three stocks – Taiwan Semiconductor Manufacturing TSM, Occidental Petroleum OXY, and Citigroup C – have all seen buying activity from the Oracle of Omaha in 2022.
Below is a chart illustrating the year-to-date performance of all three of these buys, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
As we can see, OXY has been a big-time winner, whereas Citigroup and Taiwan Semiconductor have lagged behind the general market. Let’s take a deeper dive into each one.
Occidental Petroleum
Undoubtedly Buffett’s most famous buy of 2022, Occidental Petroleum, is an integrated oil and gas company with significant exploration and production exposure.
Like many stocks in the Zacks Oils and Energy sector, OXY’s growth trajectory is impressive; the company’s earnings are forecasted to soar more than 280% year-over-year in its current fiscal year (FY22) on top of revenue growth of 42.7%.
Still, the growth is projected to cool off in FY23, with estimates calling for a 23% year-over-year drop in earnings and a 9.6% pullback in revenue. This is shown in the chart below.
Image Source: Zacks Investment Research
The company does pay a dividend, currently yielding a modest 0.8%, below its Zacks Oils and Energy sector average by a fair margin. OXY pays out just 6% of its earnings.
Image Source: Zacks Investment Research
Taiwan Semiconductor Manufacturing
Excluding OXY, Taiwan Semiconductor Manufacturing has been one of the more exciting names Buffett has dipped into in 2022.
TSM is engaged in the manufacturing and sale of integrated circuits and wafer semiconductor devices.
In addition, the company is responsible for supplying chips to many tech titans, including Apple AAPL, Advanced Micro Devices AMD, and NVIDIA NVDA. Clearly, the company is of mass importance.
For those with an appetite for income, TSM has that covered; the company’s annual dividend currently yields 1.7%, nicely above its Zacks Computer and Technology sector average.
Image Source: Zacks Investment Research
Similar to OXY, Taiwan Semiconductor has a strong growth profile for its current fiscal year (FY22); earnings estimates suggest an improvement of more than 50% year-over-year, paired with forecasted revenue growth of 27.3%.
The earnings growth slows down in FY23, with estimates indicating a 9% pullback. Still, revenue is forecasted to grow 6.9% Y/Y.
Citigroup
Citigroup, a globally diversified financial services holding company, provides various financial products and services to consumers, corporations, governments, and institutions.
A significant perk of Citigroup shares is the dividend, currently yielding a rock-solid 4.5% paired with a 9% five-year annualized growth rate. As we can see, the current annual yield handily beats the Zacks Finance sector average.
Image Source: Zacks Investment Research
The company has consistently posted better-than-expected quarterly results as of late, exceeding earnings and revenue estimates in three consecutive quarters.
In its latest release, Citigroup registered a 2.7% bottom-line beat paired with a marginal 0.7% sales surprise. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Bottom Line
Buffett has gone on the offensive with the market pulling back significantly year-to-date, scooping up shares at a discount.
Taiwan Semiconductor Manufacturing TSM, Occidental Petroleum OXY, and Citigroup C have all seen buying activity from the Oracle of Omaha in 2022.
For those seeking to invest like Buffett, all three precisely fit the criteria.
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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.
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Citigroup Inc. (C) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report
Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In addition, the company is responsible for supplying chips to many tech titans, including Apple AAPL, Advanced Micro Devices AMD, and NVIDIA NVDA. Click to get this free report Citigroup Inc. (C) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report To read this article on Zacks.com click here. He’s the CEO of Berkshire Hathaway (BRK.B), a diversified holding company whose subsidiaries engage in insurance, freight rail transportation, energy generation and distribution, manufacturing, and others.
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Click to get this free report Citigroup Inc. (C) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report To read this article on Zacks.com click here. In addition, the company is responsible for supplying chips to many tech titans, including Apple AAPL, Advanced Micro Devices AMD, and NVIDIA NVDA. Image Source: Zacks Investment Research Taiwan Semiconductor Manufacturing Excluding OXY, Taiwan Semiconductor Manufacturing has been one of the more exciting names Buffett has dipped into in 2022.
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Click to get this free report Citigroup Inc. (C) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report To read this article on Zacks.com click here. In addition, the company is responsible for supplying chips to many tech titans, including Apple AAPL, Advanced Micro Devices AMD, and NVIDIA NVDA. Like many stocks in the Zacks Oils and Energy sector, OXY’s growth trajectory is impressive; the company’s earnings are forecasted to soar more than 280% year-over-year in its current fiscal year (FY22) on top of revenue growth of 42.7%.
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In addition, the company is responsible for supplying chips to many tech titans, including Apple AAPL, Advanced Micro Devices AMD, and NVIDIA NVDA. Click to get this free report Citigroup Inc. (C) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report To read this article on Zacks.com click here. Like many stocks in the Zacks Oils and Energy sector, OXY’s growth trajectory is impressive; the company’s earnings are forecasted to soar more than 280% year-over-year in its current fiscal year (FY22) on top of revenue growth of 42.7%.
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18063.0
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2022-12-08 00:00:00 UTC
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US STOCKS-S&P 500, Nasdaq snap losing streaks after jobless claims rise
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-snap-losing-streaks-after-jobless-claims-rise
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nan
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nan
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By David French
Dec 8 (Reuters) - The S&P 500 .SPXended higher on Thursday, snapping a five-session losing streak, as investors interpreted data showing a rise in weekly jobless claims as a sign the pace of interest rate hikes could soon slow.
Wall Street's main indexes had come under pressure in recent days, with the S&P 500 shedding 3.6% since the beginning of December on expectations of a longer rate-hike cycle and downbeat economic views from some top company executives.
Such thinking had also weighed on the Nasdaq Composite .IXIC, which had posted four straight losing sessions prior to Thursday's advance on the tech-heavy index.
Stocks rose as investors cheered data showing the number of Americans filing claims for jobless benefits increased moderately last week, while unemployment rolls hit a 10-month high toward the end of November.
The report follows data last Friday that showed U.S. employers hired more workers than expected in November and increased wages, spurring fears that the Fed might stick to its aggressive stance to tame decades-high inflation.
Markets have been swayed by data releases in recent days, with investors lacking certainty ahead of Federal Reserve guidance next week on interest rates.
Such behavior means Friday's producer price index and the University of Michigan's consumer sentiment survey will likely dictate whether Wall Street can build on Thursday's rally.
"The market has to adjust to the fact that we're moving from a stimulus-based economy - both fiscal and monetary - into a fundamentals-based economy, and that's what we're grappling with right now," said Wiley Angell, chief market strategist at Ziegler Capital Management.
The Dow Jones Industrial Average .DJI rose 183.56 points, or 0.55%, to close at 33,781.48; the S&P 500 .SPX gained 29.59 points, or 0.75%, to finish at 3,963.51; and the Nasdaq Composite .IXIC added 123.45 points, or 1.13%, at 11,082.00.
Nine of the 11 major S&P 500 sectors rose, led by a 1.6% gain in technology stocks .SPLRCT.
Most mega-cap technology and growth stocks gained. Apple Inc AAPL.O, Nvidia Corp NVDA.O and Amazon.com Inc AMZN.O rose between 1.2% and 6.5%.
Microsoft Corp MSFT.O ended 1.2% higher, despite giving up some intraday gains after the Federal Trade Commission filed a complaint aimed at blocking the tech giant's $69 billion bid to buy Activision Blizzard Inc ATVI.O. The "Call of Duty" games maker closed 1.5% lower.
The energy index .SPNY was an exception, slipping 0.5%, despite Exxon Mobil Corp XOM.N gaining 0.7% after announcing it would expand its $30-billion share repurchase program. The sector had been under pressure in recent sessions as commodity prices slipped: U.S. crude CLc1 is now hovering near its level at the start of 2022.
Meanwhile, Moderna Inc MRNA.O advanced 3.2% after the U.S. Food and Drug Administration authorized COVID-19 shots from the vaccine maker that target both the original coronavirus and Omicron sub-variants for use in children as young as six months old.
The regulator also approved similar guidance for fellow COVID vaccine maker Pfizer Inc PFE.N, which rose 3.1%, and its partner BioNTech, whose U.S.-listed shares BNTX.O gained 5.6%.
Rent the Runway Inc RENT.Oposted its biggest ever one-day gain, jumping 74.3%, after the clothing rental firm raised its 2022 revenue forecast.
Volume on U.S. exchanges was 10.07 billion shares, compared with the 10.90 billion average for the full session over the last 20 trading days.
The S&P 500 posted 15 new 52-week highs and three new lows; the Nasdaq Composite recorded 82 new highs and 232 new lows.
(Reporting by Shubham Batra, Ankika Biswas, Johann M Cherian in Bengaluru and David French in New York; Editing by Vinay Dwivedi, Sriraj Kalluvila, Anil D'Silva and Richard Chang)
((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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Apple Inc AAPL.O, Nvidia Corp NVDA.O and Amazon.com Inc AMZN.O rose between 1.2% and 6.5%. By David French Dec 8 (Reuters) - The S&P 500 .SPXended higher on Thursday, snapping a five-session losing streak, as investors interpreted data showing a rise in weekly jobless claims as a sign the pace of interest rate hikes could soon slow. Stocks rose as investors cheered data showing the number of Americans filing claims for jobless benefits increased moderately last week, while unemployment rolls hit a 10-month high toward the end of November.
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Apple Inc AAPL.O, Nvidia Corp NVDA.O and Amazon.com Inc AMZN.O rose between 1.2% and 6.5%. By David French Dec 8 (Reuters) - The S&P 500 .SPXended higher on Thursday, snapping a five-session losing streak, as investors interpreted data showing a rise in weekly jobless claims as a sign the pace of interest rate hikes could soon slow. Such thinking had also weighed on the Nasdaq Composite .IXIC, which had posted four straight losing sessions prior to Thursday's advance on the tech-heavy index.
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Apple Inc AAPL.O, Nvidia Corp NVDA.O and Amazon.com Inc AMZN.O rose between 1.2% and 6.5%. By David French Dec 8 (Reuters) - The S&P 500 .SPXended higher on Thursday, snapping a five-session losing streak, as investors interpreted data showing a rise in weekly jobless claims as a sign the pace of interest rate hikes could soon slow. Stocks rose as investors cheered data showing the number of Americans filing claims for jobless benefits increased moderately last week, while unemployment rolls hit a 10-month high toward the end of November.
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Apple Inc AAPL.O, Nvidia Corp NVDA.O and Amazon.com Inc AMZN.O rose between 1.2% and 6.5%. Stocks rose as investors cheered data showing the number of Americans filing claims for jobless benefits increased moderately last week, while unemployment rolls hit a 10-month high toward the end of November. Nine of the 11 major S&P 500 sectors rose, led by a 1.6% gain in technology stocks .SPLRCT.
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18064.0
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2022-12-08 00:00:00 UTC
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US STOCKS-S&P 500 rebounds on tech boost; weekly jobless claims rise
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-rebounds-on-tech-boost-weekly-jobless-claims-rise-0
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nan
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nan
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By Ankika Biswas and Johann M Cherian
Dec 8 (Reuters) - The S&P 500 index gained ground on Thursday, boosted by technology shares, while a rise in weekly jobless claims suggested the labor market was slowing down.
Wall Street's main indexes have come under pressure in recent days, with the benchmark .SPX shedding 3.6% in the past five sessions on expectations of a longer rate-hike cycle and downbeat views on the economy from some top company executives.
However, investors drew some comfort on Thursday after data showed the number of Americans filing claims for jobless benefits increased moderately last week, while unemployment rolls hit a 10-month high toward the end of November.
The report follows data last Friday that showed U.S. employers hired more workers than expected in November and increased wages, spurring fears that the Fed might stick to its aggressive stance as it attempts to tame decades-high inflation.
"Markets are looking like they've got a little window here for a relief rally before next week's CPI data, since we were oversold here," said Dennis Dick, a market structure analyst and trader at Triple D Trading.
"You're just starting to see a few people coming in buying the dip."
The producer price index and the University of Michigan's consumer sentiment survey on Friday and November's consumer price data next week will also be in focus ahead of Fed's policy decision on Dec. 14.
Investors see a 93% chance that the U.S. central bank will hike the key benchmark rate by 50 basis points to 4.25-4.50%, with the rates peaking in May 2023 at 4.92%. FEDWATCH
The U.S. central bank has raised its policy rate by 375 basis points this year in the fastest hikes since the 1980s.
This aggressive approach has stoked worries of a recession, with top executives of major U.S. financial institutions including JPMorgan, BlackRock and Citi forecasting a likely economic downturn in 2023.
Adding to the fears, the yield curve between the 2-year US2YT=RR and 10-year Treasury notes US10YT=RR has also widened in the recent days.
At 11:53 a.m. ET, the Dow Jones Industrial Average .DJI was up 223.74 points, or 0.67%, at 33,821.66, the S&P 500 .SPX was up 30.32 points, or 0.77%, at 3,964.24, and the Nasdaq Composite .IXIC was up 127.83 points, or 1.17%, at 11,086.38.
Ten of the 11 major S&P 500 sector indexes rose, led by 1.6% gain in technology stocks .SPLRCT.
Energy stocks .SPNY rose 0.2% as oil prices climbed following the easing of anti-COVID measures in China and delay in some tankers carrying Russian oil. O/R
Most mega-cap technology and growth stocks such as Apple Inc AAPL.O, Nvidia Corp NVDA.O and Amazon.com AMZN.O rose between 1.3% and 4%.
Moderna Inc MRNA.O soared 4% after the U.S. Food and Drug Administration authorized COVID-19 shots from the vaccine maker that target both the original coronavirus and Omicron sub-variants for use in children as young as six months of age
Rent the Runway Inc RENT.O jumped 52.6% after the clothing rental firm raised its 2022 revenue forecast
(Reporting by Shubham Batra, Ankika Biswas, Johann M Cherian in Bengaluru; Editing by Vinay Dwivedi, Sriraj Kalluvila and Anil D'Silva)
((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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O/R Most mega-cap technology and growth stocks such as Apple Inc AAPL.O, Nvidia Corp NVDA.O and Amazon.com AMZN.O rose between 1.3% and 4%. By Ankika Biswas and Johann M Cherian Dec 8 (Reuters) - The S&P 500 index gained ground on Thursday, boosted by technology shares, while a rise in weekly jobless claims suggested the labor market was slowing down. Wall Street's main indexes have come under pressure in recent days, with the benchmark .SPX shedding 3.6% in the past five sessions on expectations of a longer rate-hike cycle and downbeat views on the economy from some top company executives.
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O/R Most mega-cap technology and growth stocks such as Apple Inc AAPL.O, Nvidia Corp NVDA.O and Amazon.com AMZN.O rose between 1.3% and 4%. The producer price index and the University of Michigan's consumer sentiment survey on Friday and November's consumer price data next week will also be in focus ahead of Fed's policy decision on Dec. 14. Investors see a 93% chance that the U.S. central bank will hike the key benchmark rate by 50 basis points to 4.25-4.50%, with the rates peaking in May 2023 at 4.92%.
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O/R Most mega-cap technology and growth stocks such as Apple Inc AAPL.O, Nvidia Corp NVDA.O and Amazon.com AMZN.O rose between 1.3% and 4%. By Ankika Biswas and Johann M Cherian Dec 8 (Reuters) - The S&P 500 index gained ground on Thursday, boosted by technology shares, while a rise in weekly jobless claims suggested the labor market was slowing down. The producer price index and the University of Michigan's consumer sentiment survey on Friday and November's consumer price data next week will also be in focus ahead of Fed's policy decision on Dec. 14.
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O/R Most mega-cap technology and growth stocks such as Apple Inc AAPL.O, Nvidia Corp NVDA.O and Amazon.com AMZN.O rose between 1.3% and 4%. By Ankika Biswas and Johann M Cherian Dec 8 (Reuters) - The S&P 500 index gained ground on Thursday, boosted by technology shares, while a rise in weekly jobless claims suggested the labor market was slowing down. The report follows data last Friday that showed U.S. employers hired more workers than expected in November and increased wages, spurring fears that the Fed might stick to its aggressive stance as it attempts to tame decades-high inflation.
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18065.0
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2022-12-08 00:00:00 UTC
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US STOCKS-S&P 500 rebounds as investors take rate hike cues from jobless claims rise
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-rebounds-as-investors-take-rate-hike-cues-from-jobless-claims-rise
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nan
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nan
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By Ankika Biswas and David French
Dec 8 (Reuters) - The S&P 500 index .SPX rose on Thursday, looking on course to snap a five-session losing streak, as technology shares led a broad-based recovery with investors seeing a rise in weekly jobless claims as a sign the pace of interest rate hikes could soon slow.
Wall Street's main indexes have come under pressure in recent days, with the benchmark index shedding 3.6% so far in December on expectations of a longer rate-hike cycle and downbeat economic views from some top company executives.
However, investors drew some comfort on Thursday after data showed the number of Americans filing claims for jobless benefits increased moderately last week, while unemployment rolls hit a 10-month high toward the end of November.
The report follows data last Friday that showed U.S. employers hired more workers than expected in November and increased wages, spurring fears that the Fed might stick to its aggressive stance to tame decades-high inflation.
"Markets are looking like they've got a little window here for a relief rally before next week's CPI data, since we were oversold here," said Dennis Dick, a market structure analyst and trader at Triple D Trading.
"You're just starting to see a few people coming in buying the dip."
The producer price index and the University of Michigan's consumer sentiment survey on Friday and November's consumer price data next week will also be in focus ahead of Fed's policy decision on Dec. 14.
Investors see a 93% chance that the U.S. central bank will hike the key benchmark rate by 50 basis points to 4.25-4.50%, with the rates peaking in May 2023 at 4.92%. FEDWATCH
The U.S. central bank has raised its policy rate by 375 basis points this year, the fastest pace since the 1980s.
This aggressive approach has stoked worries of a recession, with top executives of major U.S. financial institutions including JPMorgan, BlackRock and Citi forecasting a likely economic downturn in 2023.
Adding to the fears, the yield curve between the 2-year US2YT=RR and 10-year Treasury notes US10YT=RR has also widened in the recent days.
By 1:46 p.m. ET, the Dow Jones Industrial Average .DJI rose 256.92 points, or 0.76%, to 33,854.84; the S&P 500 .SPX gained 38.46 points, or 0.98%, at 3,972.38; and the Nasdaq Composite .IXIC added 158.93 points, or 1.45%, at 11,117.48.
All 11 major S&P 500 sectors rose, led by a 1.8% gain in technology stocks .SPLRCT.
Most mega-cap technology and growth stocks such as Apple Inc AAPL.O, Nvidia Corp NVDA.O and Amazon.com IncAMZN.O rose between 1.6% and 5%.
The energy index .SPNY was barely changed despite Exxon Mobil Corp gaining 1.2% after announcing it would expand its $30-billion share repurchase program. The sector had been under pressure in recent sessions as commodity prices slipped: U.S. crude CLc1 is now hovering near its level at the start of 2022.
Meanwhile, Moderna Inc MRNA.Oadvanced 2.3% after the U.S. Food and Drug Administration authorized COVID-19 shots from the vaccine maker that target both the original coronavirus and Omicron sub-variants for use in children as young as six months of age.
The regulator also approved similar guidance for fellow COVID vaccine maker Pfizer Inc PFE.N, which rose 2.7%, and its partner BioNTech, whose U.S.-listed shares BNTX.O gained 4.2%.
Rent the Runway Inc RENT.O jumped 61% after the clothing rental firm raised its 2022 revenue forecast.
(Reporting by Shubham Batra, Ankika Biswas, Johann M Cherian in Bengaluru and David French in New York; Editing by Vinay Dwivedi, Sriraj Kalluvila, Anil D'Silva and Richard Chang)
((Shubham.Batra@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Most mega-cap technology and growth stocks such as Apple Inc AAPL.O, Nvidia Corp NVDA.O and Amazon.com IncAMZN.O rose between 1.6% and 5%. By Ankika Biswas and David French Dec 8 (Reuters) - The S&P 500 index .SPX rose on Thursday, looking on course to snap a five-session losing streak, as technology shares led a broad-based recovery with investors seeing a rise in weekly jobless claims as a sign the pace of interest rate hikes could soon slow. However, investors drew some comfort on Thursday after data showed the number of Americans filing claims for jobless benefits increased moderately last week, while unemployment rolls hit a 10-month high toward the end of November.
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Most mega-cap technology and growth stocks such as Apple Inc AAPL.O, Nvidia Corp NVDA.O and Amazon.com IncAMZN.O rose between 1.6% and 5%. The producer price index and the University of Michigan's consumer sentiment survey on Friday and November's consumer price data next week will also be in focus ahead of Fed's policy decision on Dec. 14. Investors see a 93% chance that the U.S. central bank will hike the key benchmark rate by 50 basis points to 4.25-4.50%, with the rates peaking in May 2023 at 4.92%.
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Most mega-cap technology and growth stocks such as Apple Inc AAPL.O, Nvidia Corp NVDA.O and Amazon.com IncAMZN.O rose between 1.6% and 5%. By Ankika Biswas and David French Dec 8 (Reuters) - The S&P 500 index .SPX rose on Thursday, looking on course to snap a five-session losing streak, as technology shares led a broad-based recovery with investors seeing a rise in weekly jobless claims as a sign the pace of interest rate hikes could soon slow. Wall Street's main indexes have come under pressure in recent days, with the benchmark index shedding 3.6% so far in December on expectations of a longer rate-hike cycle and downbeat economic views from some top company executives.
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Most mega-cap technology and growth stocks such as Apple Inc AAPL.O, Nvidia Corp NVDA.O and Amazon.com IncAMZN.O rose between 1.6% and 5%. By Ankika Biswas and David French Dec 8 (Reuters) - The S&P 500 index .SPX rose on Thursday, looking on course to snap a five-session losing streak, as technology shares led a broad-based recovery with investors seeing a rise in weekly jobless claims as a sign the pace of interest rate hikes could soon slow. Wall Street's main indexes have come under pressure in recent days, with the benchmark index shedding 3.6% so far in December on expectations of a longer rate-hike cycle and downbeat economic views from some top company executives.
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18066.0
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2022-12-08 00:00:00 UTC
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US STOCKS-S&P 500 snaps losing streak on jobless claims rise
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-snaps-losing-streak-on-jobless-claims-rise
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nan
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nan
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By David French
Dec 8 (Reuters) - The S&P 500 .SPX closed higher on Thursday, snapping a five-session losing streak, as investors pushed the index higher after interpreting data showing a rise in weekly jobless claims as a sign the pace of interest rate hikes could soon slow.
Wall Street's main indexes had come under pressure in recent days, with the benchmark index shedding 3.6% since the beginning of December on expectations of a longer rate-hike cycle and downbeat economic views from some top company executives.
Such thinking had also weighed on the tech-heavy Nasdaq Composite Index .IXIC, which had posted four straight losing sessions prior to Thursday.
However, investors drew some comfort after data showed the number of Americans filing claims for jobless benefits increased moderately last week, while unemployment rolls hit a 10-month high toward the end of November.
The report follows data last Friday that showed U.S. employers hired more workers than expected in November and increased wages, spurring fears that the Fed might stick to its aggressive stance to tame decades-high inflation.
"The market has to adjust to the fact that we're moving from a stimulus-based economy - both fiscal and monetary - into a fundamentals-based economy, and that's what we're grappling with right now," said Wiley Angell, chief market strategist at Ziegler Capital Management.
The producer price index and the University of Michigan's consumer sentiment survey on Friday and November's consumer price data next week will also be in focus ahead of Fed's policy decision on Dec. 14.
Investors see a 93% chance that the U.S. central bank will hike the key benchmark rate by 50 basis points to 4.25-4.50%, with the rates peaking in May 2023 at 4.92%. FEDWATCH
The U.S. central bank has raised its policy rate by 375 basis points this year, the fastest pace since the 1980s.
This aggressive approach has stoked worries of a recession, with top executives of major U.S. financial institutions including JPMorgan, BlackRock and Citi forecasting a likely economic downturn in 2023.
Adding to the fears, the yield curve between the 2-year US2YT=RR and 10-year Treasury notes US10YT=RR has also widened in the recent days.
According to preliminary data, the S&P 500 .SPX gained 29.89 points, or 0.76%, to end at 3,963.81 points, while the Nasdaq Composite .IXIC gained 125.84 points, or 1.15%, to 11,084.39. The Dow Jones Industrial Average .DJI rose 174.89 points, or 0.54%, to 33,772.81.
Most of the 11 major S&P 500 sectors rose, led by a gain in technology stocks .SPLRCT.
Most mega-cap technology and growth stocks such as Apple Inc AAPL.O, Nvidia Corp NVDA.O and Amazon.com Inc AMZN.O rose.
Microsoft Corp MSFT.O ended higher, despite giving up some intraday gains after the Federal Trade Commission filed a complaint aimed at blocking the tech giant's $69 billion bid to buy Activision Blizzard Inc ATVI.O. The "Call of Duty" games maker closed lower.
The energy index .SPNY was one of the exceptions despite Exxon Mobil Corp gaining after announcing it would expand its $30-billion share repurchase program. The sector had been under pressure in recent sessions as commodity prices slipped: U.S. crude CLc1 is now hovering near its level at the start of 2022.
Meanwhile, Moderna Inc MRNA.O advanced after the U.S. Food and Drug Administration authorized COVID-19 shots from the vaccine maker that target both the original coronavirus and Omicron sub-variants for use in children as young as six months of age.
The regulator also approved similar guidance for fellow COVID vaccine maker Pfizer Inc PFE.N, which rose, and its partner BioNTech, whose U.S.-listed shares BNTX.O gained.
Rent the Runway Inc RENT.O jumped after the clothing rental firm raised its 2022 revenue forecast.
(Reporting by Shubham Batra, Ankika Biswas, Johann M Cherian in Bengaluru and David French in New York; Editing by Vinay Dwivedi, Sriraj Kalluvila, Anil D'Silva and Richard Chang)
((Shubham.Batra@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Most mega-cap technology and growth stocks such as Apple Inc AAPL.O, Nvidia Corp NVDA.O and Amazon.com Inc AMZN.O rose. However, investors drew some comfort after data showed the number of Americans filing claims for jobless benefits increased moderately last week, while unemployment rolls hit a 10-month high toward the end of November. The report follows data last Friday that showed U.S. employers hired more workers than expected in November and increased wages, spurring fears that the Fed might stick to its aggressive stance to tame decades-high inflation.
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Most mega-cap technology and growth stocks such as Apple Inc AAPL.O, Nvidia Corp NVDA.O and Amazon.com Inc AMZN.O rose. By David French Dec 8 (Reuters) - The S&P 500 .SPX closed higher on Thursday, snapping a five-session losing streak, as investors pushed the index higher after interpreting data showing a rise in weekly jobless claims as a sign the pace of interest rate hikes could soon slow. FEDWATCH The U.S. central bank has raised its policy rate by 375 basis points this year, the fastest pace since the 1980s.
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Most mega-cap technology and growth stocks such as Apple Inc AAPL.O, Nvidia Corp NVDA.O and Amazon.com Inc AMZN.O rose. By David French Dec 8 (Reuters) - The S&P 500 .SPX closed higher on Thursday, snapping a five-session losing streak, as investors pushed the index higher after interpreting data showing a rise in weekly jobless claims as a sign the pace of interest rate hikes could soon slow. Wall Street's main indexes had come under pressure in recent days, with the benchmark index shedding 3.6% since the beginning of December on expectations of a longer rate-hike cycle and downbeat economic views from some top company executives.
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Most mega-cap technology and growth stocks such as Apple Inc AAPL.O, Nvidia Corp NVDA.O and Amazon.com Inc AMZN.O rose. Wall Street's main indexes had come under pressure in recent days, with the benchmark index shedding 3.6% since the beginning of December on expectations of a longer rate-hike cycle and downbeat economic views from some top company executives. According to preliminary data, the S&P 500 .SPX gained 29.89 points, or 0.76%, to end at 3,963.81 points, while the Nasdaq Composite .IXIC gained 125.84 points, or 1.15%, to 11,084.39.
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18067.0
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2022-12-08 00:00:00 UTC
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After Hours Most Active for Dec 8, 2022 : T, WDC, QQQ, AAPL, GOOGL, PFE, SWN, ARMK, CCK, DOCU, AMZN, VNO
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-dec-8-2022-%3A-t-wdc-qqq-aapl-googl-pfe-swn-armk-cck-docu-amzn
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nan
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nan
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The NASDAQ 100 After Hours Indicator is up 1.13 to 11,638.63. The total After hours volume is currently 78,703,964 shares traded.
The following are the most active stocks for the after hours session:
AT&T Inc. (T) is -0.01 at $19.11, with 4,884,092 shares traded. T's current last sale is 84.93% of the target price of $22.5.
Western Digital Corporation (WDC) is -0.2299 at $35.00, with 3,469,297 shares traded. WDC's current last sale is 73.68% of the target price of $47.5.
Invesco QQQ Trust, Series 1 (QQQ) is +0.26 at $284.11, with 3,217,299 shares traded. This represents a 11.74% increase from its 52 Week Low.
Apple Inc. (AAPL) is +0.26 at $142.91, with 3,083,492 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Alphabet Inc. (GOOGL) is unchanged at $93.71, with 2,709,276 shares traded. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
Pfizer, Inc. (PFE) is -0.14 at $51.64, with 2,493,803 shares traded. As reported by Zacks, the current mean recommendation for PFE is in the "buy range".
Southwestern Energy Company (SWN) is +0.01 at $5.83, with 2,355,262 shares traded. SWN's current last sale is 58.3% of the target price of $10.
Aramark (ARMK) is +0.01 at $40.94, with 2,325,371 shares traded. ARMK's current last sale is 90.98% of the target price of $45.
Crown Holdings, Inc. (CCK) is unchanged at $81.45, with 2,273,171 shares traded. As reported by Zacks, the current mean recommendation for CCK is in the "buy range".
DocuSign, Inc. (DOCU) is +6.22 at $49.97, with 2,244,508 shares traded. Smarter Analyst Reports: Friday’s Pre-Market: Here’s What You Need to Know Before the Market Opens
Amazon.com, Inc. (AMZN) is +0.03 at $90.38, with 2,016,477 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Vornado Realty Trust (VNO) is -0.03 at $21.42, with 1,372,259 shares traded. VNO's current last sale is 85.68% of the target price of $25.001.
The views and 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 +0.26 at $142.91, with 3,083,492 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 GOOGL is in the "buy range".
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is +0.26 at $142.91, with 3,083,492 shares traded. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
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Apple Inc. (AAPL) is +0.26 at $142.91, with 3,083,492 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 78,703,964 shares traded.
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Apple Inc. (AAPL) is +0.26 at $142.91, with 3,083,492 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 1.13 to 11,638.63.
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18068.0
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2022-12-08 00:00:00 UTC
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US STOCKS-S&P 500 rebounds on tech boost; weekly jobless claims rise
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-rebounds-on-tech-boost-weekly-jobless-claims-rise
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nan
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nan
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By Ankika Biswas and Johann M Cherian
Dec 8 (Reuters) - The S&P 500 gained ground on Thursday, lifted by technology and energy shares, while a rise in weekly jobless claims suggested the labor market was slowing down.
Wall Street's main indexes have come under pressure in recent days, with the benchmark index .SPX shedding 3.6% in the past five sessions on expectations of a longer rate-hike cycle and downbeat views on the economy from some top company executives.
However, investors drew some comfort on Thursday after data showed the number of Americans filing claims for jobless benefits increased moderately last week, while unemployment rolls hit a 10-month high toward the end of November.
"More people are filing jobless claims, which shows labor forces are weakening a little bit," said Thomas Hayes, chairman at Great Hill Capital LLC in New York.
"It's just one data point that leads to the Fed cooling down their aggressive hikes, but it doesn't change December's 50 basis point (rate hike). The key is going to be the data between December and February as to what they do next."
The report follows data last Friday that showed U.S. employers hired more workers than expected in November and increased wages, spurring fears that the Fed might stick to its aggressive stance as it attempts to tame decades-high inflation.
The producer price index and the University of Michigan's consumer sentiment survey on Friday and November's consumer price data next week will also be in focus ahead of Fed's policy decision on Dec. 14.
Investors see a 91% chance that the U.S. central bank will hike the key benchmark rate by 50 basis points to 4.25-4.50%, with the rates peaking in May 2023 at 4.94%. FEDWATCH
The U.S. central bank has raised its policy rate by 375 basis points this year in the fastest hikes since the 1980s.
This aggressive approach has stoked worries of a recession, with top executives of major U.S. financial institutions including JPMorgan, BlackRock and Citi forecasting a likely economic downturn in 2023.
Adding to the fears, the yield curve between the 2-year US2YT=RR and 10-year Treasury notes US10YT=RR has also widened in the recent days.
At 10:43 a.m. ET, the Dow Jones Industrial Average .DJI was up 241.67 points, or 0.72%, at 33,839.59, the S&P 500 .SPX was up 32.12 points, or 0.82%, at 3,966.04, and the Nasdaq Composite .IXIC was up 130.60 points, or 1.19%, at 11,089.15.
Ten of the 11 major S&P 500 sector indexes rose, led by 1.5% gain in technology stocks .SPLRCT.
Energy stocks .SPNY rose 0.6% as oil prices climbed followingthe easing of anti-COVID measures in China and delay in some tankers carrying Russian oil. O/R
Most mega-cap technology and growth stocks such as Apple Inc AAPL.O, Nvidia Corp NVDA.O and Amazon.com AMZN.O rose between 1.4% and 4.2%.
Salesforce Inc CRM.N slipped after Baird downgraded the software firm's stock to "neutral", while Rent the Runway Inc RENT.O jumped 33.9% after the clothing rental firm raised its 2022 revenue forecast.
The S&P index recorded 11 new 52-week highs and two new lows, while the Nasdaq recorded 53 new highs and 132 new lows.
(Reporting by Shubham Batra, Ankika Biswas, Johann M Cherian in Bengaluru; Editing by Vinay Dwivedi, Sriraj Kalluvila and Anil D'Silva)
((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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O/R Most mega-cap technology and growth stocks such as Apple Inc AAPL.O, Nvidia Corp NVDA.O and Amazon.com AMZN.O rose between 1.4% and 4.2%. By Ankika Biswas and Johann M Cherian Dec 8 (Reuters) - The S&P 500 gained ground on Thursday, lifted by technology and energy shares, while a rise in weekly jobless claims suggested the labor market was slowing down. However, investors drew some comfort on Thursday after data showed the number of Americans filing claims for jobless benefits increased moderately last week, while unemployment rolls hit a 10-month high toward the end of November.
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O/R Most mega-cap technology and growth stocks such as Apple Inc AAPL.O, Nvidia Corp NVDA.O and Amazon.com AMZN.O rose between 1.4% and 4.2%. "It's just one data point that leads to the Fed cooling down their aggressive hikes, but it doesn't change December's 50 basis point (rate hike). Investors see a 91% chance that the U.S. central bank will hike the key benchmark rate by 50 basis points to 4.25-4.50%, with the rates peaking in May 2023 at 4.94%.
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O/R Most mega-cap technology and growth stocks such as Apple Inc AAPL.O, Nvidia Corp NVDA.O and Amazon.com AMZN.O rose between 1.4% and 4.2%. However, investors drew some comfort on Thursday after data showed the number of Americans filing claims for jobless benefits increased moderately last week, while unemployment rolls hit a 10-month high toward the end of November. "It's just one data point that leads to the Fed cooling down their aggressive hikes, but it doesn't change December's 50 basis point (rate hike).
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O/R Most mega-cap technology and growth stocks such as Apple Inc AAPL.O, Nvidia Corp NVDA.O and Amazon.com AMZN.O rose between 1.4% and 4.2%. By Ankika Biswas and Johann M Cherian Dec 8 (Reuters) - The S&P 500 gained ground on Thursday, lifted by technology and energy shares, while a rise in weekly jobless claims suggested the labor market was slowing down. "It's just one data point that leads to the Fed cooling down their aggressive hikes, but it doesn't change December's 50 basis point (rate hike).
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18069.0
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2022-12-08 00:00:00 UTC
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Apple (AAPL) Outpaces Stock Market Gains: What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-outpaces-stock-market-gains%3A-what-you-should-know-7
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nan
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nan
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Apple (AAPL) closed the most recent trading day at $142.65, moving +1.21% from the previous trading session. This change outpaced the S&P 500's 0.75% gain on the day. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, lost 0.01%.
Heading into today, shares of the maker of iPhones, iPads and other products had gained 4.5% over the past month, lagging the Computer and Technology sector's gain of 6.47% and outpacing the S&P 500's gain of 3.49% in that time.
Apple will be looking to display strength as it nears its next earnings release. In that report, analysts expect Apple to post earnings of $1.97 per share. This would mark a year-over-year decline of 6.19%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $123.05 billion, down 0.72% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.23 per share and revenue of $406.37 billion, which would represent changes of +1.96% and +3.05%, respectively, from the prior year.
Any recent changes to analyst estimates for Apple should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 1.41% lower within the past month. Apple is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Apple is currently trading at a Forward P/E ratio of 22.62. This represents a premium compared to its industry's average Forward P/E of 8.32.
We can also see that AAPL currently has a PEG ratio of 1.81. 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 2.43 as of yesterday's close.
The Computer - Mini computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 183, putting it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Apple Inc. (AAPL) : Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) closed the most recent trading day at $142.65, moving +1.21% from the previous trading session. We can also see that AAPL currently has a PEG ratio of 1.81. To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com.
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Apple (AAPL) closed the most recent trading day at $142.65, moving +1.21% from the previous trading session. We can also see that AAPL currently has a PEG ratio of 1.81. To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com.
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Apple (AAPL) closed the most recent trading day at $142.65, moving +1.21% from the previous trading session. We can also see that AAPL currently has a PEG ratio of 1.81. To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com.
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Apple (AAPL) closed the most recent trading day at $142.65, moving +1.21% from the previous trading session. We can also see that AAPL currently has a PEG ratio of 1.81. To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com.
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18070.0
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2022-12-08 00:00:00 UTC
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FTC Sues to Block Microsoft's Activision Blizzard Acquisition: Time to Sell the Stocks?
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AAPL
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https://www.nasdaq.com/articles/ftc-sues-to-block-microsofts-activision-blizzard-acquisition%3A-time-to-sell-the-stocks
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nan
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nan
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The Federal Trade Commission (FTC) announced Thursday that it would be suing to block Microsoft's (NASDAQ: MSFT) acquisition of video game publisher Activision Blizzard (NASDAQ: ATVI). In the complaint it filed today, the regulatory body alleged the deal would allow Microsoft to suppress competition to its gaming platforms and services.
Despite the FTC's challenge to the pending acquisition, Microsoft stock still ended the day up roughly 1.2% thanks to gains for the broader market that helped lift technology stocks. Activision Blizzard, on the other hand, closed out the daily session with its stock down approximately 1.5%. Should investors sell the stocks on the recent news?
Image source: Getty Images.
Background on the deal, concessions, and the FTC's challenge
Activision Blizzard is one of the world's leading creators and publishers of video games and is responsible for franchises including Call of Duty, World of Warcraft, Candy Crush Saga, and many other hit properties. Microsoft announced at the beginning of this year that it had entered into an agreement to purchase Activision Blizzard in a $68.7 billion all-cash deal. If completed, it would be the software giant's largest-ever acquisition, but the FTC has now filed an antitrust suit to block the deal in an administrative court.
Integrating Activision Blizzard would not only bolster the appeal of Microsoft's Xbox gaming platform, it would also significantly strengthen the company's Game Pass subscription service. Microsoft is aiming to make Game Pass the leading multi-platform subscription gaming service, similar to a version of Netflix for video games, but it remains unlikely that it will be brought to Sony's PlayStation consoles anytime soon. Acquiring Activision Blizzard would likely also give Microsoft a much stronger position in the metaverse.
Microsoft recently announced that it had reached an agreement to bring Activision Blizzard's hugely popular Call of Duty games to Nintendo platforms for the next decade if the acquisition is completed. The software giant also made a similar offer to Sony, but it appears the creator of the PlayStation was cold on the proposition.
Microsoft was likely willing to offer the concession as an attempt to dissuade the FTC from attempting to block the acquisition, but the olive branch wasn't enough. Notably, the FTC highlighted the tech giant's recent acquisitions of publishers Bethesda and ZeniMax and noted that these integrations led to titles being withheld from competitors' platforms despite Microsoft previously stating to European regulators that it didn't have incentives to keep games away from rivals.
In response to the complaint filed by the FTC today, Microsoft President Brad Smith stated that his company has complete confidence in the pending deal and welcomed the opportunity to present its case in court. Activision Blizzard CEO Bobby Kotick published an update on his company's website stating that, while the news sounded alarming, he remained confident that the deal would close and that allegations that the acquisition would be anticompetitive didn't align with the facts.
Should investors sell Microsoft and Activision Blizzard stocks?
Microsoft may be able to bolster its case in the FTC suit by pointing out its willingness to make concessions and highlighting competition from gaming-focused companies and other tech giants including Apple, Alphabet, Meta Platforms, and Amazon. Even if the Activision Blizzard deal doesn't go through, Microsoft will remain well positioned for growth thanks to its Azure cloud infrastructure services, productivity software, and array of other products and services. Long-term investors in the company shouldn't sell out of the stock just because the FTC is challenging its big acquisition move.
For investors holding Activision Blizzard stock in hopes that the deal would close in the very near future, the recent FTC news may be cause for some reappraisal. With the game publisher valued at approximately $75 per share after today's pullback, the company's stock has roughly 27% upside if the deal is completed at the planned $95-per-share buyout price, but the likelihood and timeline for seeing a return on the deal may be shifting. The two companies had previously stated that they expected the deal to close before the second half of next year, but it could take longer for the purchase to be finalized even if it winds up clearing legal challenges.
Ultimately, I don't think Activision Blizzard shareholders should dump the stock on the recent FTC news. As the relatively small dip for the company's share price today indicates, regulatory hurdles were expected, and Microsoft will actually wind up paying the gaming publisher a termination fee of up to $3 billion if the deal is scuttled. There's still a decent chance that the acquisition will go through, and Activision Blizzard is an industry leader with a strong balance sheet that should become even stronger if the deal is blocked.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Keith Noonan has positions in Activision Blizzard. The Motley Fool has positions in and recommends Activision Blizzard, Alphabet, Amazon.com, Apple, Microsoft, and Netflix. The Motley Fool recommends Nintendo and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Notably, the FTC highlighted the tech giant's recent acquisitions of publishers Bethesda and ZeniMax and noted that these integrations led to titles being withheld from competitors' platforms despite Microsoft previously stating to European regulators that it didn't have incentives to keep games away from rivals. Activision Blizzard CEO Bobby Kotick published an update on his company's website stating that, while the news sounded alarming, he remained confident that the deal would close and that allegations that the acquisition would be anticompetitive didn't align with the facts. Microsoft may be able to bolster its case in the FTC suit by pointing out its willingness to make concessions and highlighting competition from gaming-focused companies and other tech giants including Apple, Alphabet, Meta Platforms, and Amazon.
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The Federal Trade Commission (FTC) announced Thursday that it would be suing to block Microsoft's (NASDAQ: MSFT) acquisition of video game publisher Activision Blizzard (NASDAQ: ATVI). Microsoft may be able to bolster its case in the FTC suit by pointing out its willingness to make concessions and highlighting competition from gaming-focused companies and other tech giants including Apple, Alphabet, Meta Platforms, and Amazon. The Motley Fool has positions in and recommends Activision Blizzard, Alphabet, Amazon.com, Apple, Microsoft, and Netflix.
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The Federal Trade Commission (FTC) announced Thursday that it would be suing to block Microsoft's (NASDAQ: MSFT) acquisition of video game publisher Activision Blizzard (NASDAQ: ATVI). Microsoft recently announced that it had reached an agreement to bring Activision Blizzard's hugely popular Call of Duty games to Nintendo platforms for the next decade if the acquisition is completed. For investors holding Activision Blizzard stock in hopes that the deal would close in the very near future, the recent FTC news may be cause for some reappraisal.
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Microsoft recently announced that it had reached an agreement to bring Activision Blizzard's hugely popular Call of Duty games to Nintendo platforms for the next decade if the acquisition is completed. Should investors sell Microsoft and Activision Blizzard stocks? The Motley Fool has positions in and recommends Activision Blizzard, Alphabet, Amazon.com, Apple, Microsoft, and Netflix.
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18071.0
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2022-12-08 00:00:00 UTC
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Time to Buy These Iconic Stocks for 2023?
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AAPL
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https://www.nasdaq.com/articles/time-to-buy-these-iconic-stocks-for-2023
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nan
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nan
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Past performance is, of course, not always an indication of future success but strong management and historical dominance are surely a calming feeling for investors.
Two stocks that come to mind in this regard are Deere & Company DE and International Business Machines IBM. Let’s see if this narrative supports buying shares of these two iconic companies at the moment.
Overview
While Deere and IBM’s businesses are very different, they have both been staples of the American and global economy for many years.
Deere & Company was founded in 1837 and has established itself as the world’s largest producer and manufacturer of agricultural equipment and machinery.
International Business Machines has a long history as well. IBM was founded in 1911 and became one of the world’s most recognizable companies and a leading producer and distributor of computer hardware and software. To that note, IBM has started to adapt to current technological times to include cloud computing along with its data analytics.
Over the years, both companies have paid out nice dividends to investors, with Deere’s current annual yield at 1.03% ($4.52) and IBM’s at 4.48% ($6.60).
Historical Performance
Looking back 30 years, we can see the performance of both stocks has been stellar. Deere’s performance sticks out though, DE is up an astonishing +5,590% Vs. IBM’s very respectable +1069%.
Image Source: Zacks Investment Research
From a 20-year view, Deere’s continued dominance becomes clearer. Including dividends, DE’s total return during this period is a staggering +2,746% to easily top IBM’s +240% and the S&P 500’s 599%.
Image Source: Zacks Investment Research
As we look over the last decade in the chart below, we can see the trend in Deer’s dominant performance continues and IBM begins to further lag the benchmark.
Companies in Deere’s Industrial Products sector are not as pressed with having to innovate as businesses in IBM’s technology sector.
IBM stock has been stable but has mostly remained in the $100-$150 range for the last 10 years as newer tech companies like Apple AAPL have enjoyed better price performance during more current tech waves.
In comparison, AAPL’s total return in the last decade is +800% which has topped Deere as well. Still, DE and IBM have been reliable investments in their own right and have been around much longer.
Image Source: Zacks Investment Research
Recent Performance
Historically speaking, both Deere and IBM have done well for investors. However, DE has continued its very impressive performance from decade to decade, while IBM stock began to lose its sizzle from the Dot.com bubble.
Interestingly, over the last year, IBM’s total return is +25% to slightly edge DE’s +23% and crush the benchmark. YTD, DE is up +30% Vs. IBM’s +16%. Both stocks have continued to blast the benchmark’s bearish-like performance.
Image Source: Zacks Investment Research
Outlook & Future Success
Deere & IBM’s recent performance does support the narrative that companies with strong historical performances can be great stocks to buy during economic uncertainty. Furthermore, a glance at both companies’ outlooks could help solidify this going forward.
Deere & Co’s current FY23 earnings are now expected to jump 17% at $27.28 per share. Fiscal 2024 earnings are projected to rise another 7%. Even better, earnings estimate revisions for both FY23 and FY24 have trended higher over the last 90 days.
Image Source: Zacks Investment Research
Deere’s revenue growth has been very impressive as illustrated in the above chart. Sales are forecasted to climb 13% in FY23 and rise another 2% in FY24 to $55.37 billion. FY24 would represent 41% revenue growth from pre-pandemic levels with 2019 sales at $39.25 billion.
Pivoting to IBM, earnings are now expected to rise 15% this year to $9.12 per share. Fiscal 2023 earrings are projected to rise another 6%. With that being said earnings estimate revisions have trended down over the last quarter for this year and FY23.
Image Source: Zacks Investment Research
On the top line, sales are forecasted to dip -16% in FY22, which makes what IBM can accomplish on its bottom line this year more impressive. Fiscal 2023 sales are expected to rise 1% at $59.90 billion. However, FY23 sales would represent a 22% decrease from pre-pandemic levels with 2019 sales at $77.14 billion.
Deere & Company’s outlook certainly supports that its future success will continue while IBM stock is less approachable in this regard despite impressive bottom-line growth.
Valuation & Significance
Deere stock trades at 15.9X forward earnings which is near IBM’s 16.1X. However, DE stock looks more attractive relative to its past. DE stock trades at a 50% discount to its decade high of 31.8X while IBM trades around its decade high of 16.3X.
Image Source: Zacks Investment Research
In addition to this, DE trades near its decade median of 16.6X, while IBM trades 47% above its decade-long median of 10.9X.
With Deere trading at $442 per share and near its 52-week highs the stock still appears to have more upside from a valuation standpoint. IBM also trades near its highs at $147 per share. But in terms of value, now may not be the best entry point or opportunity to buy IBM.
Bottom Line
The recent performance of Deere and IBM has been impressive. This certainly supports the narrative that these iconic companies are strong investments during economic uncertainty.
Deere, in particular, looks like a sound investment at the moment sporting a Zacks Rank #2 (Buy) in correlation with rising earnings estimate revisions. On the contrary, IBM lands a Zacks Rank #3 (Hold) as earnings estimate revisions are down despite solid growth expected for the company.
One thing is for sure, both of these iconic stocks will draw investors’ interest as we head into 2023 with their performances continuing to stand out.
Just Released: Zacks Unveils the Top 5 EV Stocks for 2022
For several months now, electric vehicles have been disrupting the $82 billion automotive industry. And that disruption is only getting bigger thanks to sky-high gas prices. Even titans in the financial industry including George Soros, Jeff Bezos, and Ray Dalio have invested in this unstoppable wave. You don't want to be sitting on your hands while EV stocks break out and climb to new highs. In a new free report, Zacks is revealing the top 5 EV stocks for investors. Next year, don't look back on today wishing you had taken advantage of this opportunity.
>>Send me my free report revealing the top 5 EV stocks
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
International Business Machines Corporation (IBM) : Free Stock Analysis Report
Deere & Company (DE) : 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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IBM stock has been stable but has mostly remained in the $100-$150 range for the last 10 years as newer tech companies like Apple AAPL have enjoyed better price performance during more current tech waves. In comparison, AAPL’s total return in the last decade is +800% which has topped Deere as well. Click to get this free report International Business Machines Corporation (IBM) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report International Business Machines Corporation (IBM) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. IBM stock has been stable but has mostly remained in the $100-$150 range for the last 10 years as newer tech companies like Apple AAPL have enjoyed better price performance during more current tech waves. In comparison, AAPL’s total return in the last decade is +800% which has topped Deere as well.
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Click to get this free report International Business Machines Corporation (IBM) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. IBM stock has been stable but has mostly remained in the $100-$150 range for the last 10 years as newer tech companies like Apple AAPL have enjoyed better price performance during more current tech waves. In comparison, AAPL’s total return in the last decade is +800% which has topped Deere as well.
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IBM stock has been stable but has mostly remained in the $100-$150 range for the last 10 years as newer tech companies like Apple AAPL have enjoyed better price performance during more current tech waves. In comparison, AAPL’s total return in the last decade is +800% which has topped Deere as well. Click to get this free report International Business Machines Corporation (IBM) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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18072.0
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2022-12-08 00:00:00 UTC
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3D Systems (DDD) Up 12.7% Since Last Earnings Report: Can It Continue?
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AAPL
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https://www.nasdaq.com/articles/3d-systems-ddd-up-12.7-since-last-earnings-report%3A-can-it-continue
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nan
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nan
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It has been about a month since the last earnings report for 3D Systems (DDD). Shares have added about 12.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is 3D Systems due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
3D Systems’ Q3 Loss Narrower Than Expected, Sales Miss
3D Systems reported a third-quarter 2022 non-GAAP loss of 5 cents per share, narrower than the Zacks Consensus Estimate of a loss of 9 cents. The bottom line compared unfavorably with the prior-year quarter’s earnings of 8 cents per share.
In the third quarter of 2022, 3D Systems reported revenues of $132.3 million, down 15.3% from the year-ago quarter and 5.5% from the previous quarter. Excluding the impact of business divestments in 2022 and on a constant currency basis, revenues increased 2.7% year over year. The top line lagged the consensus mark of $137.4 million for the third consecutive quarter.
3D Systems’ third-quarter performance reflected impacts of inflationary pressure, foreign exchange risks and supply chain disruptions, among other ongoing macroeconomic constraints.
Shares of DDD have slumped 73.3% in the past year.
Quarter in Detail
In the third quarter, product revenues represented 72.8% of the total revenues and decreased 11.6% to $96.3 million. Revenues from Services, which accounted for 27.1% of revenues, plunged 23.9% year over year to $35.9 million.
Revenues from the Healthcare segment fell 16% year over year to $64.2 million. The figure decreased 10.5% from the prior quarter. Excluding the impact of business divestments, the segment’s revenues decreased 3.5% year over year.
The Industrial Division revenues decreased 14.6% year over year to $68.1 million and 0.3% sequentially. Excluding the impact of business divestments, the unit’s revenues increased 9%. The company witnessed solid demand for products, as well as materials.
Operating Details
During the third quarter of 2022, 3D Systems’ non-GAAP gross profit decreased 4.5% year over year to $52.8 million. Consequently, the non-GAAP gross profit margin contracted 60 basis points (bps) to 39.9%. This decrease was driven by year-over-year product mix changes, due to divestitures and increased supply chain disruptions.
Non-GAAP operating expenses increased 18.3% to $58.3 million. The increase was due to spending related to future growth, which includes expenses from acquisitions, research and development, and corporate infrastructure.
Non-GAAP operating loss was $5.5 million compared with the year-ago operating income of $6 million.
Adjusted EBITDA was negative $0.3 million. The margin of negative 0.2% reflected the inflationary impact on input costs and gradual investments for portfolio & business growth.
Balance Sheet Details
The company exited the third quarter with cash, cash equivalents and short-term investments of $609.4 million, lower than the prior quarter's $638.2 million. As of Sep 30, 2022, 3D Systems had a total debt of $448.9 million, slightly up from the previous quarter’s $448.1 million.
In the first nine months of 2022, the company utilized $52.4 million of cash from operational activities.
Guidance
3D Systems trimmed its full-year 2022 guidance for the third time. The company now expects revenues between $535 million and $545 million compared with the previously expected band of $530-$570 million. The company still projects non-GAAP gross margin to be 39-41%.
Non-GAAP operating expense is estimated to be $240-$245 million, decreasing the lower end from the earlier projection of $245-$250 million.
Management provided this guidance with the assumption that the pandemic, supply chain disruptions or any geopolitical events will not be of any concern in 2022.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -31.76% due to these changes.
VGM Scores
At this time, 3D Systems has an average Growth Score of C, a grade with the same score on the momentum front. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise 3D Systems has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
3D Systems belongs to the Zacks Computer - Mini computers industry. Another stock from the same industry, Apple (AAPL), has gained 4.5% over the past month. More than a month has passed since the company reported results for the quarter ended September 2022.
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.
For the current quarter, Apple is expected to post earnings of $1.97 per share, indicating a change of -6.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -4.1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Apple. Also, the stock has a VGM Score of D.
Just Released: Zacks Unveils the Top 5 EV Stocks for 2022
For several months now, electric vehicles have been disrupting the $82 billion automotive industry. And that disruption is only getting bigger thanks to sky-high gas prices. Even titans in the financial industry including George Soros, Jeff Bezos, and Ray Dalio have invested in this unstoppable wave. You don't want to be sitting on your hands while EV stocks break out and climb to new highs. In a new free report, Zacks is revealing the top 5 EV stocks for investors. Next year, don't look back on today wishing you had taken advantage of this opportunity.
>>Send me my free report revealing the top 5 EV stocks
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
3D Systems Corporation (DDD) : 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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Another stock from the same industry, Apple (AAPL), has gained 4.5% over the past month. Click to get this free report 3D Systems Corporation (DDD) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
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Click to get this free report 3D Systems Corporation (DDD) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Another stock from the same industry, Apple (AAPL), has gained 4.5% over the past month. 3D Systems’ Q3 Loss Narrower Than Expected, Sales Miss 3D Systems reported a third-quarter 2022 non-GAAP loss of 5 cents per share, narrower than the Zacks Consensus Estimate of a loss of 9 cents.
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Click to get this free report 3D Systems Corporation (DDD) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Another stock from the same industry, Apple (AAPL), has gained 4.5% over the past month. In the third quarter of 2022, 3D Systems reported revenues of $132.3 million, down 15.3% from the year-ago quarter and 5.5% from the previous quarter.
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Another stock from the same industry, Apple (AAPL), has gained 4.5% over the past month. Click to get this free report 3D Systems Corporation (DDD) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. It has been about a month since the last earnings report for 3D Systems (DDD).
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18073.0
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2022-12-08 00:00:00 UTC
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Alphabet's (GOOGL) Nest to Adopt Fuchsia Operating System
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AAPL
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https://www.nasdaq.com/articles/alphabets-googl-nest-to-adopt-fuchsia-operating-system
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nan
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nan
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Alphabet’s GOOGL division Google has been consistently working toward strengthening its smart audio devices.
According to 9TO5Google, Google is gearing up to run the Nest audio smart speaker on the Fuchsia operating system.
Previously, Google switched the operating system of its Nest Hub smart displays to the Fuchsia operating system.
Google’s efforts to run smart audio speakers with its own operating system aim at providing an enhanced experience to customers.
This is expected to boost the adoption rate of smart audio speakers in the days ahead.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Efforts to Boost Market Prospects
The recent move is expected to continue helping Google capitalize on its presence in the booming smart speaker market.
Smart speakers control various smart home devices, such as smart TVs, thermostats, smart lights, smart locks, security cameras and smart kitchen appliances. Thus, the growing adoption of these devices is driving the smart speaker market.
The demand for smart speakers is continuously rising as they support video calling, watching online content and social networking. This is propelling the smart speaker market and leading to the smart display market’s growth.
According to a Research and Markets report, the global smart speaker market is expected to progress at a CAGR of 20.2% during the forecast period 2022-2028.
Competitive Scenario
We believe that Google’s growing prospects in this booming market are likely to aid its parent company, Alphabet, in winning investors’ confidence in the near and long terms.
Shares of Alphabet have been down 34.5% in the year-to-date period, outperforming the Computer and Technology sector’s decline of 35%.
However, Alphabet faces intense competitive pressure from Apple AAPL and Amazon AMZN, which are leaving no stone unturned to expand their presence in the market.
Apple smart speakers, namely HomePod and HomePod mini, offer high-quality audio as well as the ability to adapt to their location. The speakers are compatible with smart home accessories and can be controlled with the Siri virtual assistant. Shares of AAPL etched down 20.6% in the same time frame.
Amazon’s Echo devices offer high-quality audio, music playing, audiobooks and podcasts from various music streaming services like Apple Music, Amazon Music, and Spotify, to name a few. Amazon Echo smart speakers support Alexa and can be controlled by smart home devices. AMZN lost 46.9% in the year-to-date period.
Zacks Rank & Stocks to Consider
Currently, Alphabet carries a Zacks Rank #4 (Sell).
Investors interested in the broader Zacks Computer & Technology sector can consider 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 6.8% in the year-to-date period. The long-term earnings growth rate for ASUR is currently projected at 23%.
Just Released: Zacks Unveils the Top 5 EV Stocks for 2022
For several months now, electric vehicles have been disrupting the $82 billion automotive industry. And that disruption is only getting bigger thanks to sky-high gas prices. Even titans in the financial industry including George Soros, Jeff Bezos, and Ray Dalio have invested in this unstoppable wave. You don't want to be sitting on your hands while EV stocks break out and climb to new highs. In a new free report, Zacks is revealing the top 5 EV stocks for investors. Next year, don't look back on today wishing you had taken advantage of this opportunity.
>>Send me my free report revealing the top 5 EV stocks
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : 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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However, Alphabet faces intense competitive pressure from Apple AAPL and Amazon AMZN, which are leaving no stone unturned to expand their presence in the market. Shares of AAPL etched down 20.6% in the same time frame. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : 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 Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : 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. However, Alphabet faces intense competitive pressure from Apple AAPL and Amazon AMZN, which are leaving no stone unturned to expand their presence in the market. Shares of AAPL etched down 20.6% in the same time frame.
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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 Asure Software Inc (ASUR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. However, Alphabet faces intense competitive pressure from Apple AAPL and Amazon AMZN, which are leaving no stone unturned to expand their presence in the market. Shares of AAPL etched down 20.6% in the same time frame.
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However, Alphabet faces intense competitive pressure from Apple AAPL and Amazon AMZN, which are leaving no stone unturned to expand their presence in the market. Shares of AAPL etched down 20.6% in the same time frame. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : 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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18074.0
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2022-12-08 00:00:00 UTC
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2 Top Index Funds Growth Stock Investors Can Buy With Confidence Before 2023
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AAPL
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https://www.nasdaq.com/articles/2-top-index-funds-growth-stock-investors-can-buy-with-confidence-before-2023
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nan
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Economic uncertainty has hammered the stock market this year, but growth stocks have been hit especially hard. The Federal Reserve is raising interest rates at the fastest pace in four decades to rein in runaway inflation. Increasing the cost of borrowing will ultimately lower demand for goods and services, meaning corporate growth will likely slow in the near term. That prognosis is bad for the stock market in general, but it's especially grim news for growth stocks as their valuations often depend on how quickly metrics like revenue and free cash flow are growing.
For that reason, the S&P 500 Growth index and the tech-heavy Nasdaq Composite have plunged 28% and 30% year to date, respectively, putting both indexes deep in bear market territory. But those losses create a fantastic buying opportunity. Both indexes have recovered from every past downturn, and despite falling sharply this year, both indexes have outperformed the S&P 500 over the past five-year, 10-year, and 20-year periods.
For that reason, now is a great time for investors to buy index funds that track the S&P 500 Growth index and the Nasdaq Composite.
1. The Vanguard S&P 500 Growth ETF
The Vanguard S&P 500 Growth ETF (NYSEMKT: VOOG) tracks the S&P 500 Growth index, which itself measures the performance of growth stocks in the S&P 500. The Vanguard ETF includes 242 companies, mostly large-cap growth stocks, that span all 11 stock market sectors. That said, the ETF is heavily weighted toward just three sectors: information technology (43.8%), consumer discretionary (15.9%), and healthcare (12.8%).
The top 10 holdings in the Vanguard S&P 500 Growth ETF are as follows:
Apple: 15.1%
Microsoft: 11.3%
Amazon: 5.9%
Tesla: 4%
Alphabet (Class A shares): 3.7%
Alphabet (Class C shares): 3.3%
Nvidia: 2.2%
Eli Lilly & Co: 1.9%
Home Depot: 1.5%
UnitedHealth Group: 1.4%
Over the last two decades, the S&P 500 index has generated a total return of 542%, but the S&P 500 Growth index has generated a total return of 605%, equivalent to an 10.3% average annual gain. At that pace, $150 invested weekly in the Vanguard S&P 500 Growth ETF would be worth more than $1.4 million in 30 years.
The last item worth mentioning is the expense ratio, or the fee charged by the fund's managers. The Vanguard ETF has an expense ratio of 0.1%, meaning an investor would pay $10 per year on a $10,000 portfolio. That is far cheaper than the industry average of 0.4% for mutual funds and exchange-traded funds, according to Morningstar.
2. Fidelity Nasdaq Composite Index ETF
The Fidelity Nasdaq Composite Index ETF (NASDAQ: ONEQ) tracks the Nasdaq Composite index, the most popular benchmark for tech stocks. The Fidelity ETF includes 1,017 holdings. However, the Fidelity ETF is heavily weighted toward stocks in the information technology (44.3%), consumer discretionary (14.4%), and communications services (13.6%) sectors.
The top 10 holdings in the Fidelity Nasdaq Composite Index ETF are as follows :
Apple: 12.7%
Microsoft: 10.1%
Amazon: 5%
Alphabet (Class C shares): 3.3%
Alphabet (Class A shares): 3.2%
Tesla: 3.1%
Nvidia: 2.2%
Meta Platforms: 1.5%
PepsiCo: 1.4%
Costco: 1.2%
The S&P 500 index generated a total return of 238% over the last decade, but the Nasdaq Composite generated a total return of 310%, or 15.1% on an annualized basis. At that pace, $150 invested in the Fidelity Nasdaq Composite Index ETF would be worth more than $3.7 million in 30 years.
Finally, the Fidelity ETF bears an expense ratio of 0.21%, meaning an investor would pay $21 per year on a $10,000 portfolio. That makes it more expensive than the Vanguard S&P 500 Growth ETF, though its expense ratio is still comfortably below the industry average.
The secret to making money in the stock market
Peter Lynch once said, "The real key to making money in stocks is not to get scared out of them." Readers should take that advice to heart. The stock market may continue to fall in the coming months (or years), and no one -- not even the sharpest minds on Wall Street -- knows when the bear market will end. That means both index funds discussed in this article are at risk of falling further.
However, the S&P 500 Growth index and the Nasdaq Composite have rebounded from bear markets in the past, and both indexes have outperformed the S&P 500 over the long term. That means patient investors can buy the Vanguard S&P 500 Growth ETF and the Fidelity Nasdaq Composite Index ETF with confidence.
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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. 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. Trevor Jennewine has positions in Amazon.com, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Costco Wholesale, Home Depot, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends UnitedHealth Group and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The top 10 holdings in the Vanguard S&P 500 Growth ETF are as follows: Apple: 15.1% Microsoft: 11.3% Amazon: 5.9% Tesla: 4% Alphabet (Class A shares): 3.7% Alphabet (Class C shares): 3.3% Nvidia: 2.2% Eli Lilly & Co: 1.9% Home Depot: 1.5% UnitedHealth Group: 1.4% Over the last two decades, the S&P 500 index has generated a total return of 542%, but the S&P 500 Growth index has generated a total return of 605%, equivalent to an 10.3% average annual gain. The top 10 holdings in the Fidelity Nasdaq Composite Index ETF are as follows : Apple: 12.7% Microsoft: 10.1% Amazon: 5% Alphabet (Class C shares): 3.3% Alphabet (Class A shares): 3.2% Tesla: 3.1% Nvidia: 2.2% Meta Platforms: 1.5% PepsiCo: 1.4% Costco: 1.2% The S&P 500 index generated a total return of 238% over the last decade, but the Nasdaq Composite generated a total return of 310%, or 15.1% on an annualized basis. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Costco Wholesale, Home Depot, Meta Platforms, Microsoft, Nvidia, and Tesla.
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The top 10 holdings in the Vanguard S&P 500 Growth ETF are as follows: Apple: 15.1% Microsoft: 11.3% Amazon: 5.9% Tesla: 4% Alphabet (Class A shares): 3.7% Alphabet (Class C shares): 3.3% Nvidia: 2.2% Eli Lilly & Co: 1.9% Home Depot: 1.5% UnitedHealth Group: 1.4% Over the last two decades, the S&P 500 index has generated a total return of 542%, but the S&P 500 Growth index has generated a total return of 605%, equivalent to an 10.3% average annual gain. Fidelity Nasdaq Composite Index ETF The Fidelity Nasdaq Composite Index ETF (NASDAQ: ONEQ) tracks the Nasdaq Composite index, the most popular benchmark for tech stocks. The top 10 holdings in the Fidelity Nasdaq Composite Index ETF are as follows : Apple: 12.7% Microsoft: 10.1% Amazon: 5% Alphabet (Class C shares): 3.3% Alphabet (Class A shares): 3.2% Tesla: 3.1% Nvidia: 2.2% Meta Platforms: 1.5% PepsiCo: 1.4% Costco: 1.2% The S&P 500 index generated a total return of 238% over the last decade, but the Nasdaq Composite generated a total return of 310%, or 15.1% on an annualized basis.
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The Vanguard S&P 500 Growth ETF The Vanguard S&P 500 Growth ETF (NYSEMKT: VOOG) tracks the S&P 500 Growth index, which itself measures the performance of growth stocks in the S&P 500. The top 10 holdings in the Vanguard S&P 500 Growth ETF are as follows: Apple: 15.1% Microsoft: 11.3% Amazon: 5.9% Tesla: 4% Alphabet (Class A shares): 3.7% Alphabet (Class C shares): 3.3% Nvidia: 2.2% Eli Lilly & Co: 1.9% Home Depot: 1.5% UnitedHealth Group: 1.4% Over the last two decades, the S&P 500 index has generated a total return of 542%, but the S&P 500 Growth index has generated a total return of 605%, equivalent to an 10.3% average annual gain. Fidelity Nasdaq Composite Index ETF The Fidelity Nasdaq Composite Index ETF (NASDAQ: ONEQ) tracks the Nasdaq Composite index, the most popular benchmark for tech stocks.
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However, the S&P 500 Growth index and the Nasdaq Composite have rebounded from bear markets in the past, and both indexes have outperformed the S&P 500 over the long term. That means patient investors can buy the Vanguard S&P 500 Growth ETF and the Fidelity Nasdaq Composite Index ETF with confidence. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Costco Wholesale, Home Depot, Meta Platforms, Microsoft, Nvidia, and Tesla.
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18075.0
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2022-12-08 00:00:00 UTC
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Apple workers in Australia plan Christmas strike
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AAPL
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https://www.nasdaq.com/articles/apple-workers-in-australia-plan-christmas-strike
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nan
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nan
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By Praveen Menon
SYDNEY, Dec 9 (Reuters) - Hundreds of Apple workers in Australia are preparing to go on a strike ahead of Christmas to demand better working conditions and wages, union leaders and staff said, a move likely to hurt the iPhone maker's sales and services in the country.
The less than two-day strike by about 200 of Apple's roughly 4,000 employees in Australia comes as the U.S. tech giant faces disruptions due to worker unrest in its main iPhone plant in China.
Members of Australia's Retail and Fast Food Workers Union (RAFFWU) are asking Apple Inc AAPL.O for fixed rosters, known hours of work, weekends of two consecutive days and an agreed annual wage rise.
"This Christmas strike is a way for our members to take back their time with family and friends while management continues to refuse to give workers the most basic minimum rostering rights," RAFFWU secretary Josh Cullinan told Reuters, adding management would be notified on Monday of the intention to strike.
Efforts to get management to the bargaining table immediately failed earlier this week, with Apple AAPL.O refusing to meet until February, he said.
Striking workers would walk out of Apple's retail outlets at 3 p.m. (0400 GMT) on Dec. 23 and stay away throughout Christmas Eve, usually a peak time for sales of Apple iPhones, watches and other products.
The action would be nationwide but would have the greatest impact at two retail outlets in Brisbane, and one each in Adelaide and Newcastle where RAFFWU have the most members.
An Apple spokesperson declined to comment on the negotiations but said the company was "proud to reward our valued team members in Australia with strong compensation and exceptional benefits”.
In June this year Apple workers in Maryland became the first retail employees of the tech giant to unionise in the United States. On Thursday, the union set formal dates in January to start negotiations with Apple.
Apple workers staged a full day strike in October and also a one-hour walkout later that month.
"You cant put a price on work-life balance," said one Apple employee, who will join the strike but did not want to be identified over fears of being targeted by management.
"What we have ended up with Apple is an arrangement where all the non-mandatory benefits that allows a work-life balance to workers have been taken off."
Other strike actions that have been continuing from earlier this year will also be escalated, RAFFWU said, including a ban on iphone repair and Apple Watch repairs for certain hours in some outlets, bans on answering the door in others, bans on conducting any sales, and bans on wearing the company's festive red t-shirt.
(Reporting by Praveen Menon; Editing by Stephen Coates)
((praveen.menon@thomsonreuters.com; Reuters Messaging: praveen.menon.thomsonreuters.com@reuters.net; Twitter: @Journopraveen))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Members of Australia's Retail and Fast Food Workers Union (RAFFWU) are asking Apple Inc AAPL.O for fixed rosters, known hours of work, weekends of two consecutive days and an agreed annual wage rise. Efforts to get management to the bargaining table immediately failed earlier this week, with Apple AAPL.O refusing to meet until February, he said. By Praveen Menon SYDNEY, Dec 9 (Reuters) - Hundreds of Apple workers in Australia are preparing to go on a strike ahead of Christmas to demand better working conditions and wages, union leaders and staff said, a move likely to hurt the iPhone maker's sales and services in the country.
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Members of Australia's Retail and Fast Food Workers Union (RAFFWU) are asking Apple Inc AAPL.O for fixed rosters, known hours of work, weekends of two consecutive days and an agreed annual wage rise. Efforts to get management to the bargaining table immediately failed earlier this week, with Apple AAPL.O refusing to meet until February, he said. Striking workers would walk out of Apple's retail outlets at 3 p.m. (0400 GMT) on Dec. 23 and stay away throughout Christmas Eve, usually a peak time for sales of Apple iPhones, watches and other products.
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Members of Australia's Retail and Fast Food Workers Union (RAFFWU) are asking Apple Inc AAPL.O for fixed rosters, known hours of work, weekends of two consecutive days and an agreed annual wage rise. Efforts to get management to the bargaining table immediately failed earlier this week, with Apple AAPL.O refusing to meet until February, he said. By Praveen Menon SYDNEY, Dec 9 (Reuters) - Hundreds of Apple workers in Australia are preparing to go on a strike ahead of Christmas to demand better working conditions and wages, union leaders and staff said, a move likely to hurt the iPhone maker's sales and services in the country.
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Members of Australia's Retail and Fast Food Workers Union (RAFFWU) are asking Apple Inc AAPL.O for fixed rosters, known hours of work, weekends of two consecutive days and an agreed annual wage rise. Efforts to get management to the bargaining table immediately failed earlier this week, with Apple AAPL.O refusing to meet until February, he said. By Praveen Menon SYDNEY, Dec 9 (Reuters) - Hundreds of Apple workers in Australia are preparing to go on a strike ahead of Christmas to demand better working conditions and wages, union leaders and staff said, a move likely to hurt the iPhone maker's sales and services in the country.
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18076.0
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2022-12-08 00:00:00 UTC
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Should Fidelity Nasdaq Composite Index ETF (ONEQ) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-fidelity-nasdaq-composite-index-etf-oneq-be-on-your-investing-radar-4
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nan
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The Fidelity Nasdaq Composite Index ETF (ONEQ) was launched on 09/25/2003, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Fidelity. It has amassed assets over $3.82 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.21%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.86%.
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 44.80% of the portfolio. Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.28% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 51.69% of total assets under management.
Performance and Risk
ONEQ seeks to match the performance of the NASDAQ Composite Index before fees and expenses. The NASDAQ Composite TR USD is the market capitalization-weighted index of over 3,300 common equities listed on the Nasdaq stock exchange.
The ETF has lost about -29.76% so far this year and is down about -28.92% in the last one year (as of 12/08/2022). In the past 52-week period, it has traded between $40.54 and $61.83.
The ETF has a beta of 1.10 and standard deviation of 28.75% for the trailing three-year period, making it a medium risk choice in the space. With about 1011 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity Nasdaq Composite 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, ONEQ is a good option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $69.79 billion in assets, Invesco QQQ has $154.49 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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.
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Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.28% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. The Fidelity Nasdaq Composite Index ETF (ONEQ) was launched on 09/25/2003, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
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Click to get this free report Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.28% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). The Fidelity Nasdaq Composite Index ETF (ONEQ) was launched on 09/25/2003, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
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Click to get this free report Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.28% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). The Fidelity Nasdaq Composite Index ETF (ONEQ) was launched on 09/25/2003, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.28% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. The Fidelity Nasdaq Composite Index ETF (ONEQ) was launched on 09/25/2003, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
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18077.0
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2022-12-08 00:00:00 UTC
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Is SPDR MSCI USA StrategicFactors ETF (QUS) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-spdr-msci-usa-strategicfactors-etf-qus-a-strong-etf-right-now-5
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nan
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Launched on 04/15/2015, the SPDR MSCI USA StrategicFactors ETF (QUS) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Blend category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
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.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
QUS is managed by State Street Global Advisors, and this fund has amassed over $907.58 million, which makes it one of the larger ETFs in the Style Box - Large Cap Blend. This particular fund seeks to match the performance of the MSCI USA Factor Mix A-Series Index before fees and expenses.
The MSCI USA Factor Mix A-Series Index measures the equity market performance of large and mid-cap companies across the U.S. equity market. It aims to represent the performance of a combination of three factors: value, quality, and low volatility.
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.
With one of the cheaper products in the space, this ETF has annual operating expenses of 0.15%.
The fund has a 12-month trailing dividend yield of 1.48%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 26.20% of the portfolio. Healthcare and Financials round out the top three.
Taking into account individual holdings, Apple Inc. (AAPL) accounts for about 3.33% of the fund's total assets, followed by Microsoft Corporation (MSFT) and Unitedhealth Group Incorporated (UNH).
QUS's top 10 holdings account for about 18.26% of its total assets under management.
Performance and Risk
The ETF has lost about -12.45% so far this year and is down about -10.02% in the last one year (as of 12/08/2022). In the past 52-week period, it has traded between $101.25 and $131.16.
QUS has a beta of 0.92 and standard deviation of 23.91% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 630 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR MSCI USA StrategicFactors ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the SPDR S&P 500 ETF (SPY) tracks S&P 500 Index. IShares Core S&P 500 ETF has $301.86 billion in assets, SPDR S&P 500 ETF has $366.38 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
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 Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taking into account individual holdings, Apple Inc. (AAPL) accounts for about 3.33% of the fund's total assets, followed by Microsoft Corporation (MSFT) and Unitedhealth Group Incorporated (UNH). Click to get this free report SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Launched on 04/15/2015, the SPDR MSCI USA StrategicFactors ETF (QUS) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Blend category of the market.
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Click to get this free report SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Apple Inc. (AAPL) accounts for about 3.33% of the fund's total assets, followed by Microsoft Corporation (MSFT) and Unitedhealth Group Incorporated (UNH). Launched on 04/15/2015, the SPDR MSCI USA StrategicFactors ETF (QUS) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Blend category of the market.
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Click to get this free report SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Apple Inc. (AAPL) accounts for about 3.33% of the fund's total assets, followed by Microsoft Corporation (MSFT) and Unitedhealth Group Incorporated (UNH). Launched on 04/15/2015, the SPDR MSCI USA StrategicFactors ETF (QUS) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Blend category of the market.
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Taking into account individual holdings, Apple Inc. (AAPL) accounts for about 3.33% of the fund's total assets, followed by Microsoft Corporation (MSFT) and Unitedhealth Group Incorporated (UNH). Click to get this free report SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Launched on 04/15/2015, the SPDR MSCI USA StrategicFactors ETF (QUS) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Blend category of the market.
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18078.0
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2022-12-08 00:00:00 UTC
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Our Top 3 Dividend Growth Stock Picks for 2023
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AAPL
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https://www.nasdaq.com/articles/our-top-3-dividend-growth-stock-picks-for-2023
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
As the markets head into 2023, it’s time for a relook at the portfolio and for charting a strategy for the new year. My sense is that blue-chip stocks will continue to remain hot favorites. At the same time, selective growth stocks are likely to surge from undervalued levels. Among blue-chip stocks, it’s a good idea to consider undervalued dividend growth stock picks for 2023.
Trading at an attractive valuation will imply the potential for capital gains. Furthermore, dividend growth can translate into stock re-rating. Dividend and capital gains will also ensure that total returns are positive after adjusting for inflation.
The key consideration in screening dividend growth stock picks for 2023 is the balance sheet and operating cash flows. The three companies discussed have an investment-grade balance sheet. Additionally, there is visibility for free cash flow upside in 2023. Even if cash flows are stable as compared to 2022, dividend growth is likely considering the overall financial flexibility.
Let’s discuss the reasons that make these dividend growth stocks attractive.
Symbol Company Price
ALB Albemarle Corporation $257.61
CVX Chevron Corporation $172.52
AAPL Apple $140.94
Albemarle Corporation (ALB)
Source: IgorGolovniov/Shutterstock.com
Albemarle Corporation (NYSE:ALB) is among the top dividend growth stock picks for 2023. ALB stock currently offers an annualized dividend of $1.58, which implies a dividend yield of 0.6%. However, considering the company’s growth trajectory, it’s likely that dividends will swell in the coming years.
One reason to be bullish on Albemarle is the company’s presence in the lithium business. As demand surges, there will likely be an acute shortage of lithium in the coming years. Albemarle is positioned to benefit with 60% of sales from the lithium segment.
For 2022, Albemarle expects adjusted EBITDA growth in the range of 280% to 300% on a year-on-year basis. Further, the company reported a lithium conversion capacity of 85ktpa in 2021. By the end of the year, the company expects to boost capacity to 200ktpa. This will translate into healthy growth in 2023. Albemarle’s long-term plan includes ramping lithium conversion capacity from 450ktpa to 500ktpa by 2030.
Chevron Corporation (CVX)
Source: Jeff Whyte / Shutterstock.com
With Chevron’s (NYSE:CVX) stock correcting from highs, it’s an excellent time to accumulate this dividend growth stock. CVX stock currently has an annualized dividend of $5.68 and a dividend yield of 3.22%.
One reason to be bullish on Chevron is its strong cash flow visibility. For Q3 2022, Chevron reported $13.7 billion in operating cash flow. This would imply an annualized cash flow potential of over $40 billion. However, even if we consider a relatively conservative scenario, Chevron is well-positioned to increase dividends and pursue share repurchases.
At the same time, Chevron has ample financial flexibility to meet the guidance of $15 to $17 billion in annual investments. This will ensure a robust reserve replacement and investment in the company’s low-carbon business. A net-debt ratio of 4.9% also provides flexibility for any potential inorganic growth.
While a potential recession in 2023 is a risk for the oil price. Factors such as geopolitical tensions and production cuts will ensure no meaningful correction. Notably, Chevron has low break-even assets to deliver strong cash flows even in a relatively low oil price environment.
Apple (AAPL)
Source: Eric Broder Van Dyke / Shutterstock.com
Apple’s (NASDAQ:AAPL) stock has remained sideways to lower in the last 12 months. AAPL stock looks attractive at a forward price-earnings ratio of 22.9. Considering the cash flow potential, it’s also among the best dividend growth stock picks for 2023.
For FY2022, Apple reported $394 billion in sales. For the same period, the company’s operating cash flow was $122 billion. With nearly $170 billion in cash and equivalents, financial flexibility is robust. This provides Apple with ample headroom for dividend growth and aggressive share repurchase.
At the same time, Apple is positioned to continue investing heavily in innovation. It’s worth noting that Apple is increasingly diversified, with the wearable and services segment contributing to growth. However, the iPhone segment remains the cash cow.
There is continued speculation on Apple’s entry into the electric vehicle segment. It was recently rumored that the company’s self-driving car launch had been pushed back to 2026. This is another potential segment for growth acceleration in the next few years.
On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.
The post Our Top 3 Dividend Growth Stock Picks for 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Symbol Company Price ALB Albemarle Corporation $257.61 CVX Chevron Corporation $172.52 AAPL Apple $140.94 Albemarle Corporation (ALB) Source: IgorGolovniov/Shutterstock.com Albemarle Corporation (NYSE:ALB) is among the top dividend growth stock picks for 2023. Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple’s (NASDAQ:AAPL) stock has remained sideways to lower in the last 12 months. AAPL stock looks attractive at a forward price-earnings ratio of 22.9.
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Symbol Company Price ALB Albemarle Corporation $257.61 CVX Chevron Corporation $172.52 AAPL Apple $140.94 Albemarle Corporation (ALB) Source: IgorGolovniov/Shutterstock.com Albemarle Corporation (NYSE:ALB) is among the top dividend growth stock picks for 2023. Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple’s (NASDAQ:AAPL) stock has remained sideways to lower in the last 12 months. AAPL stock looks attractive at a forward price-earnings ratio of 22.9.
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Symbol Company Price ALB Albemarle Corporation $257.61 CVX Chevron Corporation $172.52 AAPL Apple $140.94 Albemarle Corporation (ALB) Source: IgorGolovniov/Shutterstock.com Albemarle Corporation (NYSE:ALB) is among the top dividend growth stock picks for 2023. Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple’s (NASDAQ:AAPL) stock has remained sideways to lower in the last 12 months. AAPL stock looks attractive at a forward price-earnings ratio of 22.9.
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Symbol Company Price ALB Albemarle Corporation $257.61 CVX Chevron Corporation $172.52 AAPL Apple $140.94 Albemarle Corporation (ALB) Source: IgorGolovniov/Shutterstock.com Albemarle Corporation (NYSE:ALB) is among the top dividend growth stock picks for 2023. Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple’s (NASDAQ:AAPL) stock has remained sideways to lower in the last 12 months. AAPL stock looks attractive at a forward price-earnings ratio of 22.9.
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18079.0
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2022-12-08 00:00:00 UTC
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Foxconn's COVID-hit China plant lifts "closed-loop" management curbs
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AAPL
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https://www.nasdaq.com/articles/foxconns-covid-hit-china-plant-lifts-closed-loop-management-curbs-0
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nan
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Refiles to fix formatting
LONDON, Dec 8 (Reuters) - HONG KONG, Dec 8 (Reuters) - Apple supplier Foxconn's 2317.TW COVID-hit Zhengzhou facility in China has lifted its "closed-loop" management curbs on Thursday, it said in a statement posted on its WeChat account.
The Zhengzhou industrial park where Foxconn's plant locates has been under a so-called closed-loop system that isolated the plant from the wider world for 56 days, the statement said.
The world's largest contract electronics maker, which has been trying to replenish depleted staff numbers at the site after thousands left over the past month, expects the Zhengzhou plant to resume full production around late December to early January, a company source told Reuters on Monday.
Its Zhengzhou plant was in October hit by a COVID-19 outbreak that prompted it to impose tough restrictions that involved isolating many staff. This in turn fueled fear and discontent among workers and caused many to have to isolate or flee. Later in November, it was hit by a fresh bout of worker unrest that saw staff clash with security personnel over bonus payment issues.
Foxconn could have seen more than 30% of the Zhengzhou site's November production affected, Reuters reported last month citing a source familiar with the matter. Foxconn hasn't disclosed details of the impact of the disruption on its production plans or finances, which took place during a traditionally busy period for Apple AAPL.O ahead of Christmas and January's Lunar New Year holidays.
The company's November revenue fell 11.4% year on year reflecting production problems related to COVID controls at the major iPhone factory.
(Reporting by Meg Shen and Twinnie Siu; Editing by Toby Chopra)
((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 hasn't disclosed details of the impact of the disruption on its production plans or finances, which took place during a traditionally busy period for Apple AAPL.O ahead of Christmas and January's Lunar New Year holidays. The world's largest contract electronics maker, which has been trying to replenish depleted staff numbers at the site after thousands left over the past month, expects the Zhengzhou plant to resume full production around late December to early January, a company source told Reuters on Monday. Later in November, it was hit by a fresh bout of worker unrest that saw staff clash with security personnel over bonus payment issues.
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Foxconn hasn't disclosed details of the impact of the disruption on its production plans or finances, which took place during a traditionally busy period for Apple AAPL.O ahead of Christmas and January's Lunar New Year holidays. Refiles to fix formatting LONDON, Dec 8 (Reuters) - HONG KONG, Dec 8 (Reuters) - Apple supplier Foxconn's 2317.TW COVID-hit Zhengzhou facility in China has lifted its "closed-loop" management curbs on Thursday, it said in a statement posted on its WeChat account. Foxconn could have seen more than 30% of the Zhengzhou site's November production affected, Reuters reported last month citing a source familiar with the matter.
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Foxconn hasn't disclosed details of the impact of the disruption on its production plans or finances, which took place during a traditionally busy period for Apple AAPL.O ahead of Christmas and January's Lunar New Year holidays. Refiles to fix formatting LONDON, Dec 8 (Reuters) - HONG KONG, Dec 8 (Reuters) - Apple supplier Foxconn's 2317.TW COVID-hit Zhengzhou facility in China has lifted its "closed-loop" management curbs on Thursday, it said in a statement posted on its WeChat account. The Zhengzhou industrial park where Foxconn's plant locates has been under a so-called closed-loop system that isolated the plant from the wider world for 56 days, the statement said.
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Foxconn hasn't disclosed details of the impact of the disruption on its production plans or finances, which took place during a traditionally busy period for Apple AAPL.O ahead of Christmas and January's Lunar New Year holidays. Refiles to fix formatting LONDON, Dec 8 (Reuters) - HONG KONG, Dec 8 (Reuters) - Apple supplier Foxconn's 2317.TW COVID-hit Zhengzhou facility in China has lifted its "closed-loop" management curbs on Thursday, it said in a statement posted on its WeChat account. The Zhengzhou industrial park where Foxconn's plant locates has been under a so-called closed-loop system that isolated the plant from the wider world for 56 days, the statement said.
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18080.0
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2022-12-08 00:00:00 UTC
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Should Samsung Buy This Longtime Technology Partner?
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AAPL
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https://www.nasdaq.com/articles/should-samsung-buy-this-longtime-technology-partner
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nan
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nan
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Digital display technologist Universal Display (NASDAQ: OLED) renewed a long-standing contract with top customer Samsung (OTC: SSNL.F) this week. These partners are getting so inseparable, you'd think the larger business might want to simply buy the smaller one.
So let's imagine that Samsung Display launched a buyout bid for Universal Display right now, instead of simply extending their existing deal for five years. What would that look like?
The story so far
This week's contract runs until the end of 2027, with an optional two-year extension at the end. The previous five-year agreement was set to expire at the end of December, also with a potential two-year extension to follow. The companies signed a similar deal in 2011 and before that in 2005. In other words, the organizations have a long and stable history together.
As before, the current deal allows Samsung to make use of Universal Display's patented technology to develop and manufacture screens with organic light-emitting diode (OLED) technology. It also sets Universal Display up as the exclusive supplier of the necessary chemicals. Experienced investors know that Universal Display serves as a middleman in the materials pipeline, relying on the manufacturing expertise of another longtime partner, PPG Industries (NYSE: PPG).
The first document in the string of Samsung deals above kick-started the commercial market for OLED displays. In 2010, Samsung shipped the Galaxy S1 smartphone, an early Android device featuring an OLED screen. These beautiful, power-sipping screens worked their way down from high-end flagship devices and are now found in mass-market phones like the Samsung Galaxy A33 5G or my OnePlus Nord N200 5G. Apple (NASDAQ: AAPL) embraced OLED screens with the iPhone X in 2017, and you can pick a used one up on the cheap nowadays.
The same story is playing out in other markets at this point, led by large-screen TV sets and followed by screens for laptop and desktop computers.
In every case, Universal Display serves as the technology researcher while many partners -- including and led by Samsung Display -- run the manufacturing facilities. Universal Display's contracts base their royalty payments and material purchase agreements on the total area of the OLED screens manufactured and delivered to device builders.
Samsung might want to sweeten its own OLED pipeline by taking control of the leading developer of viable OLED screen technologies. Doing so could lower Samsung's OLED manufacturing costs, give the company early access to newly developed technologies, and control technology access to rivals such as LG Display (NYSE: LPL), Japan Display, and AU Optronics. These companies are investing billions of dollars in OLED manufacturing facilities as we speak.
Roadblocks and deal breakers
Samsung's opportunity to place a Universal Display bid may have passed already. The target company's stock is down 30% in 2022, but it's still a substantial business with a $5.3 billion market cap. Samsung Display controlled assets worth 58.2 trillion Korean won (approximately $45.8 billion) at the end of September. That's a 23% portion of the Samsung Electronics mothership's total assets. In turn, the whole Samsung company held cash equivalents of 44.5 trillion won ($35.1 billion). Assuming that Samsung Display's cash access is similar in proportion to its share of the parent company's total assets, that would put the screen builder's cash reserves in the neighborhood of $8.0 billion.
A Universal Display buyout would sap those cash reserves in a hurry, especially since takeovers typically include a buyout premium. You have to inspire shareholders to vote in favor of the deal, after all. So the buyout idea would need to get around this massive speed bump first. A stock-swap deal structure might work, but then Samsung shareholders might vote that idea down due to the dilutive effect that solution would have on their Samsung stock holdings.
So a deal looks unlikely from a purely financial point of view. And that's not even the biggest problem. You see, regulators around the world would work together to stop Samsung from controlling the OLED technology market singlehandedly. Critics would point to antitrust concerns and the potential for unfair business practices when every part of the OLED screen business can be managed under Samsung's roof alone. No regulator in their right mind would allow that kind of deal, no matter what the two companies' shareholders might say.
This is all for the best, anyway
Long story short, it'll be a cold day in Miami before Samsung considers a Universal Display buyout. It's just not a realistic idea, chiefly for the two key reasons listed above.
And that's all right by me. As a longtime Universal Display shareholder, I prefer to see the company continuing as a stand-alone business with much greater prospects for percentage-based growth in the long run. Samsung is a fine investment in its own right, but with a radically different profile than Universal Display. Larger companies are more stable than their smaller brethren, but they also deliver slower top-line growth over time.
I would suggest grabbing a few Universal Display shares while the price is right. Let Samsung sharpen its pencils in preparation for another contract renewal in 2027. By then, computer screens and TV sets will have made OLED devices even more mainstream than they are today, and Universal Display will have grown harder and harder to acquire along the way.
10 stocks we like better than Universal Display
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 Universal Display 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
Anders Bylund has positions in Universal Display. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends Universal Display and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) embraced OLED screens with the iPhone X in 2017, and you can pick a used one up on the cheap nowadays. These beautiful, power-sipping screens worked their way down from high-end flagship devices and are now found in mass-market phones like the Samsung Galaxy A33 5G or my OnePlus Nord N200 5G. Universal Display's contracts base their royalty payments and material purchase agreements on the total area of the OLED screens manufactured and delivered to device builders.
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Apple (NASDAQ: AAPL) embraced OLED screens with the iPhone X in 2017, and you can pick a used one up on the cheap nowadays. In every case, Universal Display serves as the technology researcher while many partners -- including and led by Samsung Display -- run the manufacturing facilities. Doing so could lower Samsung's OLED manufacturing costs, give the company early access to newly developed technologies, and control technology access to rivals such as LG Display (NYSE: LPL), Japan Display, and AU Optronics.
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Apple (NASDAQ: AAPL) embraced OLED screens with the iPhone X in 2017, and you can pick a used one up on the cheap nowadays. Digital display technologist Universal Display (NASDAQ: OLED) renewed a long-standing contract with top customer Samsung (OTC: SSNL.F) this week. As before, the current deal allows Samsung to make use of Universal Display's patented technology to develop and manufacture screens with organic light-emitting diode (OLED) technology.
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Apple (NASDAQ: AAPL) embraced OLED screens with the iPhone X in 2017, and you can pick a used one up on the cheap nowadays. The target company's stock is down 30% in 2022, but it's still a substantial business with a $5.3 billion market cap. Assuming that Samsung Display's cash access is similar in proportion to its share of the parent company's total assets, that would put the screen builder's cash reserves in the neighborhood of $8.0 billion.
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18081.0
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2022-12-08 00:00:00 UTC
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2 Warren Buffett Stocks to Buy Before 2022 Ends and 1 to Avoid
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AAPL
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https://www.nasdaq.com/articles/2-warren-buffett-stocks-to-buy-before-2022-ends-and-1-to-avoid
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nan
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nan
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Warren Buffett is one of the most successful stock investors of all time, which makes the quarterly regulatory filings from his conglomerate, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), an excellent resource for investing inspiration. Buffett has proven the value of investing in strong businesses for the long haul. For instance, if you had invested $10,000 in Apple (NASDAQ: AAPL) when Buffett did in 2016, your stake would be worth about $62,480 today.
There's never a bad time to try putting Buffett's investment strategy into action. But as we head to the end of 2022, not all of his portfolio holdings look like such excellent bargains. Here are two Buffett stocks to buy hand over fist in December and one to avoid.
Buffett stock No. 1 to buy: Apple
By far, Buffett's favorite stock holding is Apple. The iPhone manufacturer's shares account for an overwhelming 39.2% of Berkshire Hathaway's portfolio, and its 5.8% stake in the tech company is worth $135.3 billion.
Apple is one of the best growth stocks out there. Its share price rose by 249% in the last five years, even factoring in its 2022 sell-off. In its latest reported fiscal quarter, Apple reported an 8.1% year-over-year rise in revenue to $90.15 billion and operating income that increased by 4.6% to $24.89 billion. After a year fraught with economic declines that stunted consumer spending across the tech world, demand has remained high for Apple's offerings.
For instance, according to IDC, worldwide smartphone shipments declined by 9.7% in the last year, but Apple reported 9.6% revenue growth in its iPhone segment, with sales hitting $42.6 billion in its fiscal 2022 fourth quarter, which ended Sept. 24. Additionally, while overall PC shipments fell by 15%, Apple enjoyed a 25.3% rise in revenue for its Mac segment to $11.5 billion. It also generated $111.4 billion in free cash flow over the past 12 months.
While Apple's price-to-earnings ratio of 24 is considerably higher than the 2019 all-time low of 11.7, the figure is still 25% below what it was on Dec. 10, 2021, making now an excellent time to buy shares in the tech titan before the new year.
Buffett stock No. 2 to buy: Activision
Activision Blizzard (NASDAQ: ATVI) shares make up 1.3% of the value of Berkshire Hathaway's portfolio -- its 7.7% stake in this company is worth $4.5 billion.
The video game giant was the subject of numerous headlines this year after Microsoft (NASDAQ: MSFT) announced in January it planned to acquire it in an all-cash deal valued at $68.7 billion or $95 per share. Based on that offer, buying Activision stock at Friday's closing price of $75.76 a share would yield a 25% return on your investment once the deal completes.
However, the transaction has been held up by a lengthy regulatory process as officials in different countries consider whether the deal violates their antitrust laws. Microsoft is currently preparing to defend the acquisition against an EU antitrust probe and the US Federal Trade Commission, which Bloomberg reports is likely to file a lawsuit blocking the deal.
At this point, no one can be 100% certain that the deal will go through, but Buffett seems to believe it will. Berkshire Hathaway added to its stake in the company after the acquisition announcement.
However, regardless of the Microsoft deal, Activision Blizzard remains a strong business and investment for the long term. It owns a lucrative library of video games, including one of the world's most valuable franchises, Call of Duty. The latest installment in that series -- Modern Warfare II -- was released on Nov. 10 and hit $1 billion in sales in just 10 days, bringing the franchise's total to $31 billion since the first Call of Duty debuted in 2003.
Activision has a bright future ahead of it, and the possibility of its acquisition in 2023 -- at an attractive premium to its current share price -- only makes it more tempting to pick up before the end of the year.
A Buffett stock to avoid: Amazon
Berkshire Hathaway started snapping up Amazon's (NASDAQ: AMZN) stock in 2019, and it currently accounts for 0.3% of the conglomerate's equity portfolio. That $1 billion worth of stock amounts to a 0.1% stake in the e-commerce giant.
Given that it's the biggest name in e-commerce and also a major player in cloud computing, one might expect Amazon to be a no-brainer buy. However, high inflation and a potential recession in 2023 could bring further declines to its business.
In the third quarter, Amazon's revenue rose 14.7% year over year to $127.1 billion, missing analysts' consensus forecast by $370 million. Meanwhile, its operating income declined 48% to $2.5 billion. The most significant hit to Amazon's top line came from its e-commerce business, where international sales fell by 5% to $27.2 billion.
With the possibility of a recession in 2023 looming large, Amazon could spend the next few years working to recover those lost sales. As of Sept. 30, the company's free cash flow stood at negative $26.3 billion, which has grown considerably from the negative $14.7 billion it reported in December 2021.
Additionally, Amazon Web Services has experienced slowing growth over the past year, reporting a year-over-year revenue gain of 27% to $20.5 billion in Q3 2022. By contrast, this segment grew 33% in Q2 2022 and 39% the year before in Q3 2021.
As Amazon Web Services made up 100% of Amazon's operating income in Q3 2022, declining growth is concerning. Considering the additional likelihood of declines in its e-commerce business in 2023, I'd hold off on buying this Buffett stock for now.
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. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Activision Blizzard, Amazon.com, Apple, Berkshire Hathaway, and Microsoft. 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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For instance, if you had invested $10,000 in Apple (NASDAQ: AAPL) when Buffett did in 2016, your stake would be worth about $62,480 today. For instance, according to IDC, worldwide smartphone shipments declined by 9.7% in the last year, but Apple reported 9.6% revenue growth in its iPhone segment, with sales hitting $42.6 billion in its fiscal 2022 fourth quarter, which ended Sept. 24. The video game giant was the subject of numerous headlines this year after Microsoft (NASDAQ: MSFT) announced in January it planned to acquire it in an all-cash deal valued at $68.7 billion or $95 per share.
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For instance, if you had invested $10,000 in Apple (NASDAQ: AAPL) when Buffett did in 2016, your stake would be worth about $62,480 today. Warren Buffett is one of the most successful stock investors of all time, which makes the quarterly regulatory filings from his conglomerate, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), an excellent resource for investing inspiration. In its latest reported fiscal quarter, Apple reported an 8.1% year-over-year rise in revenue to $90.15 billion and operating income that increased by 4.6% to $24.89 billion.
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For instance, if you had invested $10,000 in Apple (NASDAQ: AAPL) when Buffett did in 2016, your stake would be worth about $62,480 today. 2 to buy: Activision Activision Blizzard (NASDAQ: ATVI) shares make up 1.3% of the value of Berkshire Hathaway's portfolio -- its 7.7% stake in this company is worth $4.5 billion. A Buffett stock to avoid: Amazon Berkshire Hathaway started snapping up Amazon's (NASDAQ: AMZN) stock in 2019, and it currently accounts for 0.3% of the conglomerate's equity portfolio.
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Buffett stock No. For instance, if you had invested $10,000 in Apple (NASDAQ: AAPL) when Buffett did in 2016, your stake would be worth about $62,480 today. Considering the additional likelihood of declines in its e-commerce business in 2023, I'd hold off on buying this Buffett stock for now.
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18082.0
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2022-12-08 00:00:00 UTC
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US STOCKS-Wall St set to open higher after recent slump
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-open-higher-after-recent-slump
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nan
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nan
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By Shubham Batra and Ankika Biswas
Dec 8 (Reuters) - Wall Street's main indexes were set to open higher on Thursday following a recent selloff sparked by renewed fears that aggressive rate hikes by the U.S. Federal Reserve could tip the world's largest economy into recession.
The benchmark S&P 500 .SPX has fallen for five consecutive sessions through Wednesday, while the Nasdaq .IXIC ended down for the fourth time in a row, largely driven by warnings from top company executives on the economic outlook.
Meanwhile, initial claims for state unemployment benefits for the week ended Dec. 3 rose to 230,000, in line with economists' expectations, the Labor Department's report on Thursday showed.
"More people are filing jobless claims, which shows labor forces are weakening a little bit," said Thomas Hayes, chairman at Great Hill Capital LLC in New York.
"It's just one data point that leads to the Fed cooling down their aggressive hikes, but it doesn't change December's 50 basis point (rate hike). The key is going to be the data between December and February as to what they do next."
The report follows data last Friday that showed U.S. employers hired more workers than expected in November and increased wages, spurring fears that the Fed might stick to a longer rate-hike cycle as it attempts to tame decades-high inflation.
Producer price index and the University of Michigan's consumer sentiment survey on Friday and November's consumer price data next week will also be in focus ahead of Fed's policy decision on Dec. 14.
Investors see a 91% chance that the U.S. central bank will hike the key benchmark rate by 50 basis points to 4.25%-4.50%, with the rates peaking in May 2023 at 4.94%. FEDWATCH
The U.S. central bank has raised its policy rate by 375 basis points this year in the fastest hikes since the 1980s.
This aggressive approach has stoked worries of a recession, with top executives of major U.S. financial institutions including JPMorgan, BlackRock and Citi forecasting a likely economic downturn in 2023.
Adding to the fears, the yield curve between the 2-year US2YT=RR and 10-year Treasury notes US10YT=RR has also widened in the recent days.
At 8:46 a.m. ET, Dow e-minis 1YMcv1 were up 148 points, or 0.44%, S&P 500 e-minis EScv1 were up 22.5 points, or 0.57%, and Nasdaq 100 e-minis NQcv1 were up 65.5 points, or 0.57%.
Most mega-cap technology and growth stocks such as Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Meta Platforms Inc META.O and Amazon.com AMZN.O rose between 0.5% and 1.2%.
Tesla Inc TSLA.O dropped 1.3% following a media report on the electric carmaker's plans to shorten shifts at its Shanghai factory as soon as Monday and has delayed onboarding new staff at the plant.
Salesforce Inc CRM.N slipped 0.6% after Baird downgraded the software firm's stock to "neutral", while Rent the Runway Inc RENT.O jumped 14.0% after the clothing rental firm raised its 2022 revenue forecast.
(Reporting by Shubham Batra, Ankika Biswas, Johann M Cherian in Bengaluru Editing by Vinay Dwivedi and Sriraj Kalluvila)
((Shubham.Batra@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Most mega-cap technology and growth stocks such as Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Meta Platforms Inc META.O and Amazon.com AMZN.O rose between 0.5% and 1.2%. By Shubham Batra and Ankika Biswas Dec 8 (Reuters) - Wall Street's main indexes were set to open higher on Thursday following a recent selloff sparked by renewed fears that aggressive rate hikes by the U.S. Federal Reserve could tip the world's largest economy into recession. The benchmark S&P 500 .SPX has fallen for five consecutive sessions through Wednesday, while the Nasdaq .IXIC ended down for the fourth time in a row, largely driven by warnings from top company executives on the economic outlook.
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Most mega-cap technology and growth stocks such as Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Meta Platforms Inc META.O and Amazon.com AMZN.O rose between 0.5% and 1.2%. "It's just one data point that leads to the Fed cooling down their aggressive hikes, but it doesn't change December's 50 basis point (rate hike). Investors see a 91% chance that the U.S. central bank will hike the key benchmark rate by 50 basis points to 4.25%-4.50%, with the rates peaking in May 2023 at 4.94%.
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Most mega-cap technology and growth stocks such as Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Meta Platforms Inc META.O and Amazon.com AMZN.O rose between 0.5% and 1.2%. By Shubham Batra and Ankika Biswas Dec 8 (Reuters) - Wall Street's main indexes were set to open higher on Thursday following a recent selloff sparked by renewed fears that aggressive rate hikes by the U.S. Federal Reserve could tip the world's largest economy into recession. "It's just one data point that leads to the Fed cooling down their aggressive hikes, but it doesn't change December's 50 basis point (rate hike).
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Most mega-cap technology and growth stocks such as Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Meta Platforms Inc META.O and Amazon.com AMZN.O rose between 0.5% and 1.2%. "It's just one data point that leads to the Fed cooling down their aggressive hikes, but it doesn't change December's 50 basis point (rate hike). Investors see a 91% chance that the U.S. central bank will hike the key benchmark rate by 50 basis points to 4.25%-4.50%, with the rates peaking in May 2023 at 4.94%.
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18083.0
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2022-12-08 00:00:00 UTC
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Apple supplier Foxconn pushed China to ease COVID curbs - WSJ
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AAPL
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https://www.nasdaq.com/articles/apple-supplier-foxconn-pushed-china-to-ease-covid-curbs-wsj
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nan
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nan
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Dec 8 (Reuters) - Apple supplier Foxconn's 2317.TW founder-director Terry Gou had warned China that the government's zero-COVID stance would threaten the position of the world's second-largest economy in the global supply chain, the Wall Street Journal reported.
The appeal, sent by Gou in a letter more than a month ago, played a major role in convincing China's leadership to quickly reopen the economy and move away from its zero-tolerance COVID-19 policies, the report said on Thursday, citing people familiar with the matter.
Foxconn, which is the biggest assembler of iPhones, declined to comment, while Gou's office did not immediately respond. China's State Council Information Office could not be immediately reached for comment.
The Taiwan-based company's Zhengzhou plant, which saw a month-long unrest in November, has lifted its "closed-loop" management curbs on Thursday.
The Zhengzhou plant had been grappling with strict COVID restrictions that fuelled discontent among workers over the factory conditions, triggering an 11.4% year-on-year drop in November revenue.
Some Wall Street analysts cut their iPhone shipment targets for the all-important holiday quarter as a result of turmoil at the major iPhone factory.
Chinese health officials and government advisers seized on Gou's letter to bolster the case that the government needed to speed up its efforts to ease its tough COVID-19 controls, the report added.
(Reporting by Chavi Mehta in Bengaluru; Editing by Sherry Jacob-Phillips)
((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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Dec 8 (Reuters) - Apple supplier Foxconn's 2317.TW founder-director Terry Gou had warned China that the government's zero-COVID stance would threaten the position of the world's second-largest economy in the global supply chain, the Wall Street Journal reported. The appeal, sent by Gou in a letter more than a month ago, played a major role in convincing China's leadership to quickly reopen the economy and move away from its zero-tolerance COVID-19 policies, the report said on Thursday, citing people familiar with the matter. The Zhengzhou plant had been grappling with strict COVID restrictions that fuelled discontent among workers over the factory conditions, triggering an 11.4% year-on-year drop in November revenue.
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Dec 8 (Reuters) - Apple supplier Foxconn's 2317.TW founder-director Terry Gou had warned China that the government's zero-COVID stance would threaten the position of the world's second-largest economy in the global supply chain, the Wall Street Journal reported. Foxconn, which is the biggest assembler of iPhones, declined to comment, while Gou's office did not immediately respond. Some Wall Street analysts cut their iPhone shipment targets for the all-important holiday quarter as a result of turmoil at the major iPhone factory.
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Dec 8 (Reuters) - Apple supplier Foxconn's 2317.TW founder-director Terry Gou had warned China that the government's zero-COVID stance would threaten the position of the world's second-largest economy in the global supply chain, the Wall Street Journal reported. The appeal, sent by Gou in a letter more than a month ago, played a major role in convincing China's leadership to quickly reopen the economy and move away from its zero-tolerance COVID-19 policies, the report said on Thursday, citing people familiar with the matter. Chinese health officials and government advisers seized on Gou's letter to bolster the case that the government needed to speed up its efforts to ease its tough COVID-19 controls, the report added.
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Dec 8 (Reuters) - Apple supplier Foxconn's 2317.TW founder-director Terry Gou had warned China that the government's zero-COVID stance would threaten the position of the world's second-largest economy in the global supply chain, the Wall Street Journal reported. The appeal, sent by Gou in a letter more than a month ago, played a major role in convincing China's leadership to quickly reopen the economy and move away from its zero-tolerance COVID-19 policies, the report said on Thursday, citing people familiar with the matter. Foxconn, which is the biggest assembler of iPhones, declined to comment, while Gou's office did not immediately respond.
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18084.0
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2022-12-08 00:00:00 UTC
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Foxconn unit invests $500 mln in India affiliate
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AAPL
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https://www.nasdaq.com/articles/foxconn-unit-invests-%24500-mln-in-india-affiliate
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nan
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nan
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Adds background, details
HONG KONG, Dec 8 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, said on Thursday that its Singapore unit has acquired 4.08 million shares in Foxconn Hon Hai Technology India Mega Development Private Limited for $500 million.
The announcement of a $500 million injection into its India unit comes after Reuters reported last month that Apple supplier Foxconn plans to quadruple the workforce at its iPhone factory in India over two years, with two government officials with knowledge of the matter pointing to a production adjustment as it faces disruptions in China.
Foxconn 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, sources had said.
The company shared its plans with Tamil Nadu officials about accelerating its hiring efforts at the Indian plant due to disruptions in China, according to a government source, while a person in Taiwan with knowledge of the matter said Foxconn was expanding its operations in India to increase its capacity for basic models and to meet Indian demand.
Formally called Hon Hai Precision Industry Co Ltd, Foxconn opened the India plant in 2019 and has been ramping up production. It began producing the iPhone 14 this year.
Foxconn, which grabbed headlines in recent weeks for imposing tough COVID-19 restrictions at its Zhengzhou plant in China which resulted in worker unrest, said on Thursday the facility has lifted its "closed-loop" management curbs.
(Reporting by Meg Shen, Twinnie Siu and Rhea Binoy; Editing by Toby Chopra and David Evans)
((twinnie.siu@tr.com; 852-3462 7715;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds background, details HONG KONG, Dec 8 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, said on Thursday that its Singapore unit has acquired 4.08 million shares in Foxconn Hon Hai Technology India Mega Development Private Limited for $500 million. The company shared its plans with Tamil Nadu officials about accelerating its hiring efforts at the Indian plant due to disruptions in China, according to a government source, while a person in Taiwan with knowledge of the matter said Foxconn was expanding its operations in India to increase its capacity for basic models and to meet Indian demand. Foxconn, which grabbed headlines in recent weeks for imposing tough COVID-19 restrictions at its Zhengzhou plant in China which resulted in worker unrest, said on Thursday the facility has lifted its "closed-loop" management curbs.
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Adds background, details HONG KONG, Dec 8 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, said on Thursday that its Singapore unit has acquired 4.08 million shares in Foxconn Hon Hai Technology India Mega Development Private Limited for $500 million. The announcement of a $500 million injection into its India unit comes after Reuters reported last month that Apple supplier Foxconn plans to quadruple the workforce at its iPhone factory in India over two years, with two government officials with knowledge of the matter pointing to a production adjustment as it faces disruptions in China. The company shared its plans with Tamil Nadu officials about accelerating its hiring efforts at the Indian plant due to disruptions in China, according to a government source, while a person in Taiwan with knowledge of the matter said Foxconn was expanding its operations in India to increase its capacity for basic models and to meet Indian demand.
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Adds background, details HONG KONG, Dec 8 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, said on Thursday that its Singapore unit has acquired 4.08 million shares in Foxconn Hon Hai Technology India Mega Development Private Limited for $500 million. The announcement of a $500 million injection into its India unit comes after Reuters reported last month that Apple supplier Foxconn plans to quadruple the workforce at its iPhone factory in India over two years, with two government officials with knowledge of the matter pointing to a production adjustment as it faces disruptions in China. The company shared its plans with Tamil Nadu officials about accelerating its hiring efforts at the Indian plant due to disruptions in China, according to a government source, while a person in Taiwan with knowledge of the matter said Foxconn was expanding its operations in India to increase its capacity for basic models and to meet Indian demand.
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The announcement of a $500 million injection into its India unit comes after Reuters reported last month that Apple supplier Foxconn plans to quadruple the workforce at its iPhone factory in India over two years, with two government officials with knowledge of the matter pointing to a production adjustment as it faces disruptions in China. Formally called Hon Hai Precision Industry Co Ltd, Foxconn opened the India plant in 2019 and has been ramping up production. Foxconn, which grabbed headlines in recent weeks for imposing tough COVID-19 restrictions at its Zhengzhou plant in China which resulted in worker unrest, said on Thursday the facility has lifted its "closed-loop" management curbs.
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18085.0
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2022-12-08 00:00:00 UTC
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Which Tech Stock Is Wall Street’s Best Pick Right Now?
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AAPL
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https://www.nasdaq.com/articles/which-tech-stock-is-wall-streets-best-pick-right-now
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Tech stocks, especially those trading at high valuations, have plunged significantly this year amid a challenging macro environment. Recent remarks by Federal Reserve Chair Jerome Powell about slowing down the pace of rate hikes provided some relief to investors. However, Powell cautioned that the monetary policy could stay restrictive until there are signs of inflation coming under control.
Tech stocks and the broader stock market might continue to be volatile due to macro uncertainty, Russia’s invasion of Ukraine, trade tensions between the U.S. and China, and demand concerns due to the Covid-19 resurgence in China. However, the dip in some tech stocks provides an opportunity to buy them at attractive valuation levels.
Bearing that in mind, I used TipRanks’ Stock Comparison Tool to pit the following prominent tech companies against each other and select the stock that Wall Street finds most promising at current levels.
AMZN Amazon $89.62
AAPL Apple $142.09
AMD Advance Micro Devices $69.75
Amazon (AMZN)
Source: Jonathan Weiss / Shutterstock.com
E-commerce giant Amazon’s (NASDAQ:AMZN) sales growth rate improved to nearly 15% in the third quarter from 7.2% in the second quarter. Also, the company generated market-beating earnings per share of 28 cents in Q3 after reporting losses in the first two quarters. The profitability of the Amazon Web Services (AWS) division helped offset the weakness in the retail business.
Nonetheless, investors were spooked by the company’s outlook for the crucial holiday quarter. Amazon expects sales growth in the range of 2% to 8%, reflecting the impact of macro challenges and inflation.
The company is streamlining its operations by reducing costs through various actions, including layoffs. It is lowering its capital expenditure in fulfillment and transportation networks following aggressive investments made during the pandemic to support robust demand.
Nonetheless, Amazon continues to invest in growth areas, especially AWS. The company expects its technology infrastructure expenditure to increase by $10 billion this year to support the continued expansion of its AWS business. Aside from AWS, Amazon’s advertising business also looks promising, though it currently accounts for a small proportion of the overall revenue. In Q3, advertising revenue grew 25% to $9.5 billion.
For JPMorgan analyst Doug Anmuth, Amazon is one of the best picks for 2023. He expects the company to benefit from the continued transition toward cloud and e-commerce. Anmuth stated, “Amazon is the most diversified mega-cap across revenues and profit and has numerous large growth opportunities.” Anmuth has a “buy” rating on AMZN stock and a price target of $145.
Overall, Wall Street has a “strong buy” consensus rating for Amazon stock based on 33 buys and two holds. The average AMZN stock price target of $140.50 suggests 57% upside potential.
Apple (AAPL)
Source: View Apart / Shutterstock.com
Apple’s (NASDAQ:AAPL) results for the fourth quarter of fiscal 2022 (ended Sept. 24, 2022) reflected strong execution despite a challenging operating environment. Apple’s revenue grew 8% year-over-year to $90.1 billion, while EPS was up 4% to $1.29. Except for iPad, the company reported higher sales across all its key products and the Services division.
Nonetheless, investors are concerned about the slowdown across key revenue sources, like iPhone and services. Apple cautioned investors that it expects revenue growth to decelerate in the December quarter compared to the September quarter.
The December quarter is anticipated to be hit by currency headwinds, macro challenges and a significant decline in Mac sales. This is largely due to tough comparisons with the prior-year quarter, which benefited from the launch of the newly redesigned MacBook Pro with M1 chips.
Furthermore, the worker unrest and Covid-led disruption at the Zhengzhou, China plant of Foxconn, Apple’s largest iPhone supplier, is also expected to be a major headwind for the December quarter.
Piper Sandler analyst Harsh Kumar lowered his December quarter’s revenue estimate to $119 billion from $127.3 billion on the assumption that Foxconn shipped about 9 million fewer iPhone 14 units due to the protests at the Zhengzhou plant. Nonetheless, Kumar remains bullish about Apple, calling it a “formidable” brand.
All in all, the “strong buy” consensus rating for Apple stock is backed by 23 buys and four holds. At $180.10, the average AAPL price target suggests 26.9% upside potential.
Advanced Micro Devices (AMD)
Source: JHVEPhoto / Shutterstock.com
Advanced Micro Devices (NASDAQ:AMD) and other semiconductor companies are under pressure due to weakness in key end markets, mainly the personal computers (PC) market, following a strong run due to pandemic-induced demand. Despite the distressed PC market, AMD’s Q3 revenue increased 29% to $5.6 billion, fueled by strength in the Data Center, Embedded and Gaming segments.
AMD expects its fourth-quarter revenue to increase by nearly 14%, driven by growth in the Embedded and Data Center segments. The robust demand for the company’s EPYC server processors is expected to drive the growth of the Data Center segment. Additionally, the launch of the fourth-generation EPYC processors (code-named Genoa) is anticipated to boost revenues.
Meanwhile, the Embedded segment is benefiting from the Xilinx acquisition and is expected to capture growth opportunities in the automotive, networking, communications, aerospace and defense markets.
Recently, Baird analyst Tristan Gerra upgraded AMD stock from “hold” to “buy” and raised the price target to $100 from $65. The analyst noted that supply-chain checks indicate solid reception of AMD’s Genoa (5nm Zen 4) chips at data center original equipment manufacturers.
Gerra added, “Genoa’s very significant performance step up should translate into an acceleration in market share gains for AMD in 2023, along with significantly higher pricing and a higher gross margin profile, reinforcing AMD’s EPYC performance leadership for years to come.”
The Street’s “moderate buy” consensus rating for AMD is based on 20 buys and seven holds. The average AMD price target of $84.30 implies 20.86% upside potential.
To conclude, near-term challenges could continue to be a drag on all of these tech stocks. Nonetheless, Wall Street analysts remain highly optimistic about the long-term prospects of Apple and Amazon. Meanwhile, they are cautiously optimistic about AMD due to the slump in demand in the PC and gaming markets. Analysts see the steep pullback in Amazon as a good opportunity to build a position.
On the date of publication, Sirisha Bhogaraju did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Sirisha Bhogaraju has over 15 years of experience in financial research. She has written in-depth research reports and covered companies across various sectors, with a primary focus on the consumer sector. Sirisha has a master’s degree in finance.
The post Which Tech Stock Is Wall Street’s Best Pick Right Now? appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AMZN Amazon $89.62 AAPL Apple $142.09 AMD Advance Micro Devices $69.75 Amazon (AMZN) Source: Jonathan Weiss / Shutterstock.com E-commerce giant Amazon’s (NASDAQ:AMZN) sales growth rate improved to nearly 15% in the third quarter from 7.2% in the second quarter. Apple (AAPL) Source: View Apart / Shutterstock.com Apple’s (NASDAQ:AAPL) results for the fourth quarter of fiscal 2022 (ended Sept. 24, 2022) reflected strong execution despite a challenging operating environment. At $180.10, the average AAPL price target suggests 26.9% upside potential.
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AMZN Amazon $89.62 AAPL Apple $142.09 AMD Advance Micro Devices $69.75 Amazon (AMZN) Source: Jonathan Weiss / Shutterstock.com E-commerce giant Amazon’s (NASDAQ:AMZN) sales growth rate improved to nearly 15% in the third quarter from 7.2% in the second quarter. Apple (AAPL) Source: View Apart / Shutterstock.com Apple’s (NASDAQ:AAPL) results for the fourth quarter of fiscal 2022 (ended Sept. 24, 2022) reflected strong execution despite a challenging operating environment. At $180.10, the average AAPL price target suggests 26.9% upside potential.
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AMZN Amazon $89.62 AAPL Apple $142.09 AMD Advance Micro Devices $69.75 Amazon (AMZN) Source: Jonathan Weiss / Shutterstock.com E-commerce giant Amazon’s (NASDAQ:AMZN) sales growth rate improved to nearly 15% in the third quarter from 7.2% in the second quarter. Apple (AAPL) Source: View Apart / Shutterstock.com Apple’s (NASDAQ:AAPL) results for the fourth quarter of fiscal 2022 (ended Sept. 24, 2022) reflected strong execution despite a challenging operating environment. At $180.10, the average AAPL price target suggests 26.9% upside potential.
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AMZN Amazon $89.62 AAPL Apple $142.09 AMD Advance Micro Devices $69.75 Amazon (AMZN) Source: Jonathan Weiss / Shutterstock.com E-commerce giant Amazon’s (NASDAQ:AMZN) sales growth rate improved to nearly 15% in the third quarter from 7.2% in the second quarter. Apple (AAPL) Source: View Apart / Shutterstock.com Apple’s (NASDAQ:AAPL) results for the fourth quarter of fiscal 2022 (ended Sept. 24, 2022) reflected strong execution despite a challenging operating environment. At $180.10, the average AAPL price target suggests 26.9% upside potential.
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18086.0
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2022-12-07 00:00:00 UTC
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NY Times union members to walk out after contract talks miss deadline
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AAPL
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https://www.nasdaq.com/articles/ny-times-union-members-to-walk-out-after-contract-talks-miss-deadline
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nan
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nan
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By Helen Coster
Dec 7 (Reuters) - More than 1,100 union employees at the New York Times Co NYT.N will walk out for one day on Thursday after failing to negotiate a "complete and equitable contract" with the news publisher, the union said in a statement.
The union, part of the NewsGuild of New York, had pledged the 24-hour walk-out last week if a contract was not reached by Dec. 8. It will mark the first time New York Times employees have participated in a work stoppage since the late 1970s andcomes amid a growing labor movement across the United States in which employees from companies such as Amazon AMZN.O, Starbucks Corp SBUX.O and Apple Inc AAPL.O have organized in an effort to push back against what they say are unfair labor practices.
The New York Times issued a statement confirming the strike. "It is disappointing that they are taking such an extreme action when we are not at an impasse," the company said.
In the media industry, journalists at the Pittsburgh Post-Gazette, owned by Block Communications Inc, and the McClatchy-owned Fort Worth Star-Telegram are currently on open-ended strikes.
On Nov. 4 over 200 union journalists across 14 Gannett-owned news outlets – including the Desert Sun in California and New Jersey’s Asbury Park Press – participated in a one-day strike.
In August, nearly 300 Thomson Reuters Corp TRI.TO journalists in the United States, also represented by the NewsGuild of New York, staged a 24-hour strike as the union negotiates with the company for a new three-year contract.
(Reporting by Helen Coster in New York, Dawn Chmielewski in Los Angeles and Akriti Sharma and Bharat Govind Gautam in Bengaluru; Editing by Anna Driver, Sandra Maler and Leslie Adler)
((helen.coster@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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It will mark the first time New York Times employees have participated in a work stoppage since the late 1970s andcomes amid a growing labor movement across the United States in which employees from companies such as Amazon AMZN.O, Starbucks Corp SBUX.O and Apple Inc AAPL.O have organized in an effort to push back against what they say are unfair labor practices. In the media industry, journalists at the Pittsburgh Post-Gazette, owned by Block Communications Inc, and the McClatchy-owned Fort Worth Star-Telegram are currently on open-ended strikes. On Nov. 4 over 200 union journalists across 14 Gannett-owned news outlets – including the Desert Sun in California and New Jersey’s Asbury Park Press – participated in a one-day strike.
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It will mark the first time New York Times employees have participated in a work stoppage since the late 1970s andcomes amid a growing labor movement across the United States in which employees from companies such as Amazon AMZN.O, Starbucks Corp SBUX.O and Apple Inc AAPL.O have organized in an effort to push back against what they say are unfair labor practices. By Helen Coster Dec 7 (Reuters) - More than 1,100 union employees at the New York Times Co NYT.N will walk out for one day on Thursday after failing to negotiate a "complete and equitable contract" with the news publisher, the union said in a statement. In August, nearly 300 Thomson Reuters Corp TRI.TO journalists in the United States, also represented by the NewsGuild of New York, staged a 24-hour strike as the union negotiates with the company for a new three-year contract.
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It will mark the first time New York Times employees have participated in a work stoppage since the late 1970s andcomes amid a growing labor movement across the United States in which employees from companies such as Amazon AMZN.O, Starbucks Corp SBUX.O and Apple Inc AAPL.O have organized in an effort to push back against what they say are unfair labor practices. By Helen Coster Dec 7 (Reuters) - More than 1,100 union employees at the New York Times Co NYT.N will walk out for one day on Thursday after failing to negotiate a "complete and equitable contract" with the news publisher, the union said in a statement. In August, nearly 300 Thomson Reuters Corp TRI.TO journalists in the United States, also represented by the NewsGuild of New York, staged a 24-hour strike as the union negotiates with the company for a new three-year contract.
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It will mark the first time New York Times employees have participated in a work stoppage since the late 1970s andcomes amid a growing labor movement across the United States in which employees from companies such as Amazon AMZN.O, Starbucks Corp SBUX.O and Apple Inc AAPL.O have organized in an effort to push back against what they say are unfair labor practices. By Helen Coster Dec 7 (Reuters) - More than 1,100 union employees at the New York Times Co NYT.N will walk out for one day on Thursday after failing to negotiate a "complete and equitable contract" with the news publisher, the union said in a statement. "It is disappointing that they are taking such an extreme action when we are not at an impasse," the company said.
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18087.0
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2022-12-07 00:00:00 UTC
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Most Interesting New ETFs of 2H22
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AAPL
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https://www.nasdaq.com/articles/most-interesting-new-etfs-of-2h22
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nan
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nan
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Despite continued market turmoil, US-listed ETFs have pulled in more than $560 billion so far in 2022 and remain on track for second-highest annual inflows on record. Almost 400 new ETFs have been introduced this year, slightly lower than record-breaking number in the same period last year but still very impressive.
The Harbor Corporate Culture ETF HAPI invests in companies with strong corporate culture firms. Apple AAPL and Microsoft MSFT are the top holdings currently.
The God Bless America ETF YALL screens out firms with "politically left/liberal political activism & social agendas.” Tesla TSLA and NVIDIA NVDA are its top holdings.
The AXS Brendan Wood TopGun Index ETF TGN holds 25 “highest investment quality” firms. Agnico Eagle Mines AEM and FrancoNevada FNV get the highest allocations in the portfolio.
Kevin Paffrath, a YouTube financial influencer with 1.84 million followers, launched the Meet Kevin Pricing Power ETF (PP) recently. It has more than 20% of its assets invested in Tesla currently.
To learn more, please watch the short video above.
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NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Agnico Eagle Mines Limited (AEM) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
FrancoNevada Corporation (FNV) : Free Stock Analysis Report
God Bless America ETF (YALL): ETF Research Reports
Harbor Corporate Culture ETF (HAPI): ETF Research Reports
AXS Brendan Wood TopGun Index ETF (TGN): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL and Microsoft MSFT are the top holdings currently. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Agnico Eagle Mines Limited (AEM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report FrancoNevada Corporation (FNV) : Free Stock Analysis Report God Bless America ETF (YALL): ETF Research Reports Harbor Corporate Culture ETF (HAPI): ETF Research Reports AXS Brendan Wood TopGun Index ETF (TGN): ETF Research Reports To read this article on Zacks.com click here. Despite continued market turmoil, US-listed ETFs have pulled in more than $560 billion so far in 2022 and remain on track for second-highest annual inflows on record.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Agnico Eagle Mines Limited (AEM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report FrancoNevada Corporation (FNV) : Free Stock Analysis Report God Bless America ETF (YALL): ETF Research Reports Harbor Corporate Culture ETF (HAPI): ETF Research Reports AXS Brendan Wood TopGun Index ETF (TGN): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL and Microsoft MSFT are the top holdings currently. The God Bless America ETF YALL screens out firms with "politically left/liberal political activism & social agendas.” Tesla TSLA and NVIDIA NVDA are its top holdings.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Agnico Eagle Mines Limited (AEM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report FrancoNevada Corporation (FNV) : Free Stock Analysis Report God Bless America ETF (YALL): ETF Research Reports Harbor Corporate Culture ETF (HAPI): ETF Research Reports AXS Brendan Wood TopGun Index ETF (TGN): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL and Microsoft MSFT are the top holdings currently. The Harbor Corporate Culture ETF HAPI invests in companies with strong corporate culture firms.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Agnico Eagle Mines Limited (AEM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report FrancoNevada Corporation (FNV) : Free Stock Analysis Report God Bless America ETF (YALL): ETF Research Reports Harbor Corporate Culture ETF (HAPI): ETF Research Reports AXS Brendan Wood TopGun Index ETF (TGN): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL and Microsoft MSFT are the top holdings currently. The God Bless America ETF YALL screens out firms with "politically left/liberal political activism & social agendas.” Tesla TSLA and NVIDIA NVDA are its top holdings.
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18088.0
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2022-12-07 00:00:00 UTC
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Notable Wednesday Option Activity: AAPL, AMZN, ENPH
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AAPL
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https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-aapl-amzn-enph
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 710,857 contracts has been traded thus far today, a contract volume which is representative of approximately 71.1 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 94.9% of AAPL's average daily trading volume over the past month, of 74.9 million shares. Especially high volume was seen for the $140 strike put option expiring December 09, 2022, with 59,072 contracts trading so far today, representing approximately 5.9 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $140 strike highlighted in orange:
Amazon.com Inc (Symbol: AMZN) saw options trading volume of 801,071 contracts, representing approximately 80.1 million underlying shares or approximately 94.8% of AMZN's average daily trading volume over the past month, of 84.5 million shares. Particularly high volume was seen for the $90 strike call option expiring December 09, 2022, with 37,667 contracts trading so far today, representing approximately 3.8 million underlying shares of AMZN. Below is a chart showing AMZN's trailing twelve month trading history, with the $90 strike highlighted in orange:
And Enphase Energy Inc. (Symbol: ENPH) saw options trading volume of 36,345 contracts, representing approximately 3.6 million underlying shares or approximately 94.8% of ENPH's average daily trading volume over the past month, of 3.8 million shares. Particularly high volume was seen for the $300 strike put option expiring December 09, 2022, with 2,604 contracts trading so far today, representing approximately 260,400 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 AAPL options, AMZN options, or ENPH options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Best Value Stocks
IMPL market cap history
TRQ Average Annual Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $140 strike put option expiring December 09, 2022, with 59,072 contracts trading so far today, representing approximately 5.9 million underlying shares of AAPL. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 710,857 contracts has been traded thus far today, a contract volume which is representative of approximately 71.1 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 94.9% of AAPL's average daily trading volume over the past month, of 74.9 million shares.
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Especially high volume was seen for the $140 strike put option expiring December 09, 2022, with 59,072 contracts trading so far today, representing approximately 5.9 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $140 strike highlighted in orange: Amazon.com Inc (Symbol: AMZN) saw options trading volume of 801,071 contracts, representing approximately 80.1 million underlying shares or approximately 94.8% of AMZN's average daily trading volume over the past month, of 84.5 million shares. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 710,857 contracts has been traded thus far today, a contract volume which is representative of approximately 71.1 million underlying shares (given that every 1 contract represents 100 underlying shares).
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 710,857 contracts has been traded thus far today, a contract volume which is representative of approximately 71.1 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing AAPL's trailing twelve month trading history, with the $140 strike highlighted in orange: Amazon.com Inc (Symbol: AMZN) saw options trading volume of 801,071 contracts, representing approximately 80.1 million underlying shares or approximately 94.8% of AMZN's average daily trading volume over the past month, of 84.5 million shares. That number works out to 94.9% of AAPL's average daily trading volume over the past month, of 74.9 million shares.
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Below is a chart showing AAPL's trailing twelve month trading history, with the $140 strike highlighted in orange: Amazon.com Inc (Symbol: AMZN) saw options trading volume of 801,071 contracts, representing approximately 80.1 million underlying shares or approximately 94.8% of AMZN's average daily trading volume over the past month, of 84.5 million shares. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Apple Inc (Symbol: AAPL), where a total volume of 710,857 contracts has been traded thus far today, a contract volume which is representative of approximately 71.1 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 94.9% of AAPL's average daily trading volume over the past month, of 74.9 million shares.
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18089.0
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2022-12-07 00:00:00 UTC
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Twitter to lower Blue pricing for web users to $7 - The Information
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AAPL
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https://www.nasdaq.com/articles/twitter-to-lower-blue-pricing-for-web-users-to-%247-the-information
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nan
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nan
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Adds details from report, disclosure
Dec 7 (Reuters) - Twitter Inc plans to change the pricing of its Twitter Blue subscription product to $7 from $7.99 if users pay for it through the website, and $11 if they do so through its iPhone app, the Information reported on Wednesday, citing a person briefed on the plans.
The move was likely a pushback against the 30% cut that Apple Inc AAPL.O takes on revenues from apps on its operating system, the report said, with lower pricing for the website likely to drive more users to that platform as opposed to signing up on their iPhones.
It did not mention whether pricing would change for the Android platform as well.
Musk, in a series of tweets last week listed various grievances with Apple, including the 30% fee the iphone maker charges software developers for in-app purchases.
He also posted a meme suggesting he was willing to "go to war" with Apple rather than paying the commission.
Musk later met Apple chief executive Tim Cook at the company's headquarters and later tweeted that the misunderstanding about Twitter being removed from Apple's app store was resolved.
Twitter and Apple did not immediately respond to a request for comment.
(Reporting by Akanksha Khushi in Bengaluru; Editing by Nivedita Bhattacharjee)
((Akanksha.Khushi@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 move was likely a pushback against the 30% cut that Apple Inc AAPL.O takes on revenues from apps on its operating system, the report said, with lower pricing for the website likely to drive more users to that platform as opposed to signing up on their iPhones. Adds details from report, disclosure Dec 7 (Reuters) - Twitter Inc plans to change the pricing of its Twitter Blue subscription product to $7 from $7.99 if users pay for it through the website, and $11 if they do so through its iPhone app, the Information reported on Wednesday, citing a person briefed on the plans. Musk, in a series of tweets last week listed various grievances with Apple, including the 30% fee the iphone maker charges software developers for in-app purchases.
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The move was likely a pushback against the 30% cut that Apple Inc AAPL.O takes on revenues from apps on its operating system, the report said, with lower pricing for the website likely to drive more users to that platform as opposed to signing up on their iPhones. Adds details from report, disclosure Dec 7 (Reuters) - Twitter Inc plans to change the pricing of its Twitter Blue subscription product to $7 from $7.99 if users pay for it through the website, and $11 if they do so through its iPhone app, the Information reported on Wednesday, citing a person briefed on the plans. Musk later met Apple chief executive Tim Cook at the company's headquarters and later tweeted that the misunderstanding about Twitter being removed from Apple's app store was resolved.
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The move was likely a pushback against the 30% cut that Apple Inc AAPL.O takes on revenues from apps on its operating system, the report said, with lower pricing for the website likely to drive more users to that platform as opposed to signing up on their iPhones. Adds details from report, disclosure Dec 7 (Reuters) - Twitter Inc plans to change the pricing of its Twitter Blue subscription product to $7 from $7.99 if users pay for it through the website, and $11 if they do so through its iPhone app, the Information reported on Wednesday, citing a person briefed on the plans. Musk later met Apple chief executive Tim Cook at the company's headquarters and later tweeted that the misunderstanding about Twitter being removed from Apple's app store was resolved.
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The move was likely a pushback against the 30% cut that Apple Inc AAPL.O takes on revenues from apps on its operating system, the report said, with lower pricing for the website likely to drive more users to that platform as opposed to signing up on their iPhones. Musk, in a series of tweets last week listed various grievances with Apple, including the 30% fee the iphone maker charges software developers for in-app purchases. He also posted a meme suggesting he was willing to "go to war" with Apple rather than paying the commission.
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18090.0
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2022-12-07 00:00:00 UTC
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Indiana sues TikTok alleging Chinese access to user data, mature content exposure
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AAPL
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https://www.nasdaq.com/articles/indiana-sues-tiktok-alleging-chinese-access-to-user-data-mature-content-exposure-0
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nan
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nan
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By Kanishka Singh
WASHINGTON, Dec 7 (Reuters) - Indiana sued Chinese-owned short-video sharing app TikTok on Wednesday over allegations that it is deceiving users about China's access to their data and exposing children to mature content.
The office of Indiana Attorney General Todd Rokita, a Republican, said the popular app, owned by ByteDance, violates the state's consumer protection laws by not disclosing the Chinese government's potential to access sensitive consumer information.
TikTok also deceived young users and their parents with its age rating of 12-plus in Apple's AAPL.O and Google's GOOGL.O app stores, Rokita's office said in a complaint filed on Wednesday. The complaint added that inappropriate sexual and substance-related content can easily be found and are pushed by the company to children using TikTok.
Indiana said its actions were the first of its kind by a U.S. state. Rokita is seeking emergency injunctive relief and civil penalties against the company.
A spokesperson for the video sharing app said it did not have a comment on the pending litigation.
The legal action was first reported by the New York Times.
Also on Wednesday, Texas Governor Greg Abbott said he ordered all Texas state agencies to ban TikTok on government-issued devices. Abbott tweeted that the Chinese Communist Party poses a growing threat to U.S. cybersecurity.
The actions by Indiana and Texas followed an emergency directive issued a day earlier by Maryland Governor Larry Hogan that prohibited the use of TikTok on state government devices and networks.
South Dakota Governor Kristi Noem last week signed an executive order barring state employees and contractors from installing or using TikTok on state-owned devices and South Carolina Governor Henry McMaster on Monday asked a state agency to ban TikTok from state government phones and computers.
TikTok has said the concerns prompting state bans were largely fueled by misinformation.
Last month, FBI Director Chris Wray said TikTok's U.S. operations raised national security concerns, flagging the risk the Chinese government could harness the video-sharing app to influence users or control their devices.
Former President Donald Trump in 2020 attempted to block new U.S. users from downloading WeChat and TikTok, which would have effectively blocked the apps' use in the United States, but lost a series of court battles.
President Joe Biden in June 2021 withdrew Trump's executive orders that sought to ban the downloads and directed the Commerce Department to conduct a review of security concerns posed by the apps.
TikTok seeks to reassure U.S. lawmakers on data security
U.S. House Republicans press TikTok on Chinese data sharing
(Reporting by Kanishka Singh Editing by Sandra Maler)
((Kanishka.Singh@thomsonreuters.com; +12024508248;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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TikTok also deceived young users and their parents with its age rating of 12-plus in Apple's AAPL.O and Google's GOOGL.O app stores, Rokita's office said in a complaint filed on Wednesday. By Kanishka Singh WASHINGTON, Dec 7 (Reuters) - Indiana sued Chinese-owned short-video sharing app TikTok on Wednesday over allegations that it is deceiving users about China's access to their data and exposing children to mature content. Last month, FBI Director Chris Wray said TikTok's U.S. operations raised national security concerns, flagging the risk the Chinese government could harness the video-sharing app to influence users or control their devices.
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TikTok also deceived young users and their parents with its age rating of 12-plus in Apple's AAPL.O and Google's GOOGL.O app stores, Rokita's office said in a complaint filed on Wednesday. Also on Wednesday, Texas Governor Greg Abbott said he ordered all Texas state agencies to ban TikTok on government-issued devices. South Dakota Governor Kristi Noem last week signed an executive order barring state employees and contractors from installing or using TikTok on state-owned devices and South Carolina Governor Henry McMaster on Monday asked a state agency to ban TikTok from state government phones and computers.
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TikTok also deceived young users and their parents with its age rating of 12-plus in Apple's AAPL.O and Google's GOOGL.O app stores, Rokita's office said in a complaint filed on Wednesday. The actions by Indiana and Texas followed an emergency directive issued a day earlier by Maryland Governor Larry Hogan that prohibited the use of TikTok on state government devices and networks. South Dakota Governor Kristi Noem last week signed an executive order barring state employees and contractors from installing or using TikTok on state-owned devices and South Carolina Governor Henry McMaster on Monday asked a state agency to ban TikTok from state government phones and computers.
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TikTok also deceived young users and their parents with its age rating of 12-plus in Apple's AAPL.O and Google's GOOGL.O app stores, Rokita's office said in a complaint filed on Wednesday. By Kanishka Singh WASHINGTON, Dec 7 (Reuters) - Indiana sued Chinese-owned short-video sharing app TikTok on Wednesday over allegations that it is deceiving users about China's access to their data and exposing children to mature content. Indiana said its actions were the first of its kind by a U.S. state.
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18091.0
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2022-12-07 00:00:00 UTC
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US STOCKS-Wall St slips in choppy trading on rising recession worries
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-slips-in-choppy-trading-on-rising-recession-worries
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nan
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nan
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By Ankika Biswas and David French
Dec 7 (Reuters) - Wall Street's main indexes struggled for direction on Wednesday, bouncing around in choppy trading as investors weighed potential recession fears linked to the pace of the Federal Reserve's monetary policy tightening and its effects on corporate America.
The benchmark S&P 500 .SPX fell for the fifth straight session on Wednesday.
The Nasdaq .IXIC was down for the fourth straight session, dragged lower by a 1.3% drop in Apple Inc AAPL.O on Morgan Stanley's iPhone shipment target cut and a 3.5% fall in Tesla Inc .IXIC over production loss worries.
Markets have also been rattled by downbeat comments from top executives at Goldman Sachs Group Inc GS.N, JPMorgan Chase & Co JPM.N and Bank of America Corp BAC.N on Tuesday that a mild to more pronounced recession was likely ahead.
Fears that the U.S. central bank might stick to a longer rate-hike cycle have intensified recently in the wake of strong jobs and service-sector reports.
More economic data, including weekly jobless claims, producer price index and the University of Michigan's consumer sentiment survey this week, will be on the watch list for clues on what to expect from the Fed on Dec. 14.
"When they (investors) take a look at what earnings estimates are for the remainder of 2022 and for 2023, they have not considered a recession in 2023," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.
"There's some adjustment to what earnings estimates will be over the next 12 months and I think that's what's providing a little bit of pressure to the markets."
The CBOE volatility index .VIX, also known as Wall Street's fear gauge, rose to a two-week high before slipping back slightly.
Money market participants see a 91% chance that the Fed will increase its key benchmark rate by 50 basis points in December to 4.25%-4.50%, with rates peaking in May 2023 at 4.93%. FEDWATCH
By 2:21 p.m. ET (1921 GMT), the Dow Jones Industrial Average .DJI fell 23.81 points, or 0.07%, to 33,572.53, the S&P 500 .SPX lost 9.85 points, or 0.25%, to 3,931.41 and the Nasdaq Composite .IXIC dropped 54.80 points, or 0.5%, to 10,960.09.
Concerns about a steep rise in borrowing costs have boosted the dollar, but dented demand for risk assets such as equities this year. The S&P 500 is on track to snap a three-year winning streak, down 17.5% so far in 2022.
Four out of 11 major S&P sector indexes were higher, with healthcare shares .SPXHC leading the pack, while technology .SPLRCT and communication services stocks .SPLRCL were among the worst performers.
Energy .SPNY fell 0.6% and was on course for its fifth straight decline. The sector's performance was weighed by U.S. crude prices CLc1 falling again, at one point trading at its lowest intraday level since late December 2021.
Carvana Co CVNA.N was down 40.1% after Wedbush downgraded the used-car retailer's stock to "underperform" from "neutral" and slashed its price target to $1.
Meanwhile, United Airlines UAL.O traded 2.5% lower. Unions representing various workers at the airline said they would join forces on contract negotiations.
Travel-related stocks were generally down. Delta Air Lines DAL.N and American Airlines Group AAL.O were 3% and 4.1% lower respectively, with cruise line operators Carnival Corp CCL.N and Norwegian Cruise Line Holdings NCLH.N and accommodation-linked Airbnb Inc ABNB.O and Booking Holdings BKNG.O all falling between 1.5% and 3.7%.
(Reporting by Shubham Batra, Ankika Biswas, Johann M Cherian and Shashwat Chauhan in Bengaluru and David French in New York; Editing by Vinay Dwivedi, Shounak Dasgupta and Lisa Shumaker)
((Shubham.Batra@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Nasdaq .IXIC was down for the fourth straight session, dragged lower by a 1.3% drop in Apple Inc AAPL.O on Morgan Stanley's iPhone shipment target cut and a 3.5% fall in Tesla Inc .IXIC over production loss worries. By Ankika Biswas and David French Dec 7 (Reuters) - Wall Street's main indexes struggled for direction on Wednesday, bouncing around in choppy trading as investors weighed potential recession fears linked to the pace of the Federal Reserve's monetary policy tightening and its effects on corporate America. Markets have also been rattled by downbeat comments from top executives at Goldman Sachs Group Inc GS.N, JPMorgan Chase & Co JPM.N and Bank of America Corp BAC.N on Tuesday that a mild to more pronounced recession was likely ahead.
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The Nasdaq .IXIC was down for the fourth straight session, dragged lower by a 1.3% drop in Apple Inc AAPL.O on Morgan Stanley's iPhone shipment target cut and a 3.5% fall in Tesla Inc .IXIC over production loss worries. By Ankika Biswas and David French Dec 7 (Reuters) - Wall Street's main indexes struggled for direction on Wednesday, bouncing around in choppy trading as investors weighed potential recession fears linked to the pace of the Federal Reserve's monetary policy tightening and its effects on corporate America. The sector's performance was weighed by U.S. crude prices CLc1 falling again, at one point trading at its lowest intraday level since late December 2021.
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The Nasdaq .IXIC was down for the fourth straight session, dragged lower by a 1.3% drop in Apple Inc AAPL.O on Morgan Stanley's iPhone shipment target cut and a 3.5% fall in Tesla Inc .IXIC over production loss worries. By Ankika Biswas and David French Dec 7 (Reuters) - Wall Street's main indexes struggled for direction on Wednesday, bouncing around in choppy trading as investors weighed potential recession fears linked to the pace of the Federal Reserve's monetary policy tightening and its effects on corporate America. ET (1921 GMT), the Dow Jones Industrial Average .DJI fell 23.81 points, or 0.07%, to 33,572.53, the S&P 500 .SPX lost 9.85 points, or 0.25%, to 3,931.41 and the Nasdaq Composite .IXIC dropped 54.80 points, or 0.5%, to 10,960.09.
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The Nasdaq .IXIC was down for the fourth straight session, dragged lower by a 1.3% drop in Apple Inc AAPL.O on Morgan Stanley's iPhone shipment target cut and a 3.5% fall in Tesla Inc .IXIC over production loss worries. The benchmark S&P 500 .SPX fell for the fifth straight session on Wednesday. The sector's performance was weighed by U.S. crude prices CLc1 falling again, at one point trading at its lowest intraday level since late December 2021.
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18092.0
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2022-12-07 00:00:00 UTC
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Twitter to change Blue pricing after Apple spat- The Information
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AAPL
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https://www.nasdaq.com/articles/twitter-to-change-blue-pricing-after-apple-spat-the-information
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nan
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nan
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Dec 7 (Reuters) - Twitter plans to change the pricing of its Twitter Blue subscription product to $7 if users pay for it through the website, and $11 if they do so through its app for iPhones, the Information reported on Wednesday citing a person briefed on the plans.
(Reporting by Akanksha Khushi in Bengaluru; Editing by Nivedita Bhattacharjee)
((Akanksha.Khushi@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 7 (Reuters) - Twitter plans to change the pricing of its Twitter Blue subscription product to $7 if users pay for it through the website, and $11 if they do so through its app for iPhones, the Information reported on Wednesday citing a person briefed on the plans. (Reporting by Akanksha Khushi in Bengaluru; Editing by Nivedita Bhattacharjee) ((Akanksha.Khushi@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 7 (Reuters) - Twitter plans to change the pricing of its Twitter Blue subscription product to $7 if users pay for it through the website, and $11 if they do so through its app for iPhones, the Information reported on Wednesday citing a person briefed on the plans. (Reporting by Akanksha Khushi in Bengaluru; Editing by Nivedita Bhattacharjee) ((Akanksha.Khushi@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 7 (Reuters) - Twitter plans to change the pricing of its Twitter Blue subscription product to $7 if users pay for it through the website, and $11 if they do so through its app for iPhones, the Information reported on Wednesday citing a person briefed on the plans. (Reporting by Akanksha Khushi in Bengaluru; Editing by Nivedita Bhattacharjee) ((Akanksha.Khushi@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 7 (Reuters) - Twitter plans to change the pricing of its Twitter Blue subscription product to $7 if users pay for it through the website, and $11 if they do so through its app for iPhones, the Information reported on Wednesday citing a person briefed on the plans. (Reporting by Akanksha Khushi in Bengaluru; Editing by Nivedita Bhattacharjee) ((Akanksha.Khushi@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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18093.0
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2022-12-07 00:00:00 UTC
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Indiana sues TikTok alleging Chinese access to user data, mature content exposure
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AAPL
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https://www.nasdaq.com/articles/indiana-sues-tiktok-alleging-chinese-access-to-user-data-mature-content-exposure
|
nan
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nan
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By Kanishka Singh
WASHINGTON, Dec 7 (Reuters) - Indiana sued Chinese-owned short-video sharing app TikTok on Wednesday over allegations that it is deceiving users about China's access to their data and exposing children to mature content.
The office of Indiana Attorney General Todd Rokita, a Republican, said the popular app, owned by ByteDance, violates the state's consumer protection laws by not disclosing the Chinese government's potential to access sensitive consumer information.
TikTok also deceived young users and their parents with its age rating of 12-plus in Apple's AAPL.O and Google's GOOGL.O app stores, Rokita's office said in a complaint filed on Wednesday. The complaint added that inappropriate sexual and substance-related content can easily be found and are pushed by the company to children using TikTok.
Indiana said its actions were the first of its kind by a U.S. state. Rokita is seeking emergency injunctive relief and civil penalties against the company.
A spokesperson for the video sharing app said it did not have a comment on the pending litigation.
The legal action was first reported by the New York Times.
Indiana's action followed an emergency directive issued a day earlier by Maryland Governor Larry Hogan that prohibited the use of TikTok on state government devices and networks.
South Dakota Governor Kristi Noem last week signed an executive order barring state employees and contractors from installing or using TikTok on state-owned devices and South Carolina Governor Henry McMaster on Monday asked a state agency to ban TikTok from state government phones and computers.
TikTok has said the concerns prompting state bans were largely fueled by misinformation.
Last month, FBI Director Chris Wray said TikTok's U.S. operations raised national security concerns, flagging the risk the Chinese government could harness the video-sharing app to influence users or control their devices.
Former President Donald Trump in 2020 attempted to block new U.S. users from downloading WeChat and TikTok, which would have effectively blocked the apps' use in the United States, but lost a series of court battles.
President Joe Biden in June 2021 withdrew Trump's executive orders that sought to ban the downloads and directed the Commerce Department to conduct a review of security concerns posed by the apps.
TikTok seeks to reassure U.S. lawmakers on data security
U.S. House Republicans press TikTok on Chinese data sharing
(Reporting by Kanishka Singh Editing by Sandra Maler)
((Kanishka.Singh@thomsonreuters.com; +12024508248;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
TikTok also deceived young users and their parents with its age rating of 12-plus in Apple's AAPL.O and Google's GOOGL.O app stores, Rokita's office said in a complaint filed on Wednesday. By Kanishka Singh WASHINGTON, Dec 7 (Reuters) - Indiana sued Chinese-owned short-video sharing app TikTok on Wednesday over allegations that it is deceiving users about China's access to their data and exposing children to mature content. Last month, FBI Director Chris Wray said TikTok's U.S. operations raised national security concerns, flagging the risk the Chinese government could harness the video-sharing app to influence users or control their devices.
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TikTok also deceived young users and their parents with its age rating of 12-plus in Apple's AAPL.O and Google's GOOGL.O app stores, Rokita's office said in a complaint filed on Wednesday. By Kanishka Singh WASHINGTON, Dec 7 (Reuters) - Indiana sued Chinese-owned short-video sharing app TikTok on Wednesday over allegations that it is deceiving users about China's access to their data and exposing children to mature content. President Joe Biden in June 2021 withdrew Trump's executive orders that sought to ban the downloads and directed the Commerce Department to conduct a review of security concerns posed by the apps.
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TikTok also deceived young users and their parents with its age rating of 12-plus in Apple's AAPL.O and Google's GOOGL.O app stores, Rokita's office said in a complaint filed on Wednesday. By Kanishka Singh WASHINGTON, Dec 7 (Reuters) - Indiana sued Chinese-owned short-video sharing app TikTok on Wednesday over allegations that it is deceiving users about China's access to their data and exposing children to mature content. South Dakota Governor Kristi Noem last week signed an executive order barring state employees and contractors from installing or using TikTok on state-owned devices and South Carolina Governor Henry McMaster on Monday asked a state agency to ban TikTok from state government phones and computers.
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TikTok also deceived young users and their parents with its age rating of 12-plus in Apple's AAPL.O and Google's GOOGL.O app stores, Rokita's office said in a complaint filed on Wednesday. By Kanishka Singh WASHINGTON, Dec 7 (Reuters) - Indiana sued Chinese-owned short-video sharing app TikTok on Wednesday over allegations that it is deceiving users about China's access to their data and exposing children to mature content. Indiana said its actions were the first of its kind by a U.S. state.
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18094.0
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2022-12-07 00:00:00 UTC
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Is Schwab Fundamental U.S. Large Company Index ETF (FNDX) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-schwab-fundamental-u.s.-large-company-index-etf-fndx-a-strong-etf-right-now-5
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nan
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Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the Schwab Fundamental U.S. Large Company Index ETF (FNDX) is a smart beta exchange traded fund launched on 08/13/2013.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
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
The fund is managed by Charles Schwab. FNDX has been able to amass assets over $10.04 billion, making it one of the larger ETFs in the Style Box - Large Cap Value. Before fees and expenses, this particular fund seeks to match the performance of the Russell RAFI US Large Co. Index.
The Russell RAFI US Large Company Index measures the performance of the large company size segment by fundamental overall company scores.
Cost & Other Expenses
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 cousins, other things remaining the same.
Operating expenses on an annual basis are 0.25% for FNDX, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 1.99%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 15.40% of the portfolio. Financials and Healthcare round out the top three.
When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.39% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT).
Its top 10 holdings account for approximately 19.55% of FNDX's total assets under management.
Performance and Risk
The ETF has lost about -6.22% and is down about -1.84% so far this year and in the past one year (as of 12/07/2022), respectively. FNDX has traded between $47.76 and $59.90 during this last 52-week period.
The ETF has a beta of 1.01 and standard deviation of 25.34% for the trailing three-year period, making it a medium risk choice in the space. With about 729 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab Fundamental U.S. Large Company Index ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $54.15 billion in assets, Vanguard Value ETF has $105.24 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
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Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.39% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. 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 Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.39% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Alternatives Schwab Fundamental U.S. Large Company Index ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market.
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Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.39% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the Schwab Fundamental U.S. Large Company Index ETF (FNDX) is a smart beta exchange traded fund launched on 08/13/2013.
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When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.39% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the Schwab Fundamental U.S. Large Company Index ETF (FNDX) is a smart beta exchange traded fund launched on 08/13/2013.
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18095.0
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2022-12-07 00:00:00 UTC
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US STOCKS-S&P, Nasdaq extend losing streaks amid rising recession worries
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-nasdaq-extend-losing-streaks-amid-rising-recession-worries
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By David French
Dec 7 (Reuters) - The S&P 500 and Nasdaq closed down on Wednesday after a choppy session on Wall Street, as investors struggled to grasp a clear direction as they weighed how the Federal Reserve's monetary policy tightening might feed through into corporate America.
For the benchmark S&P 500 .SPX, it was the fifth straight session that it has declined, while the Nasdaq .IXIC finished down for the fourth time in a row. The Dow snapped a two-session losing streak, as it ended unchanged from the previous day.
The Nasdaq was dragged down by a 1.4% drop in Apple Inc AAPL.O on Morgan Stanley's iPhone shipment target cut and a 3.2% fall in Tesla Inc .IXIC over production loss worries.
Markets have also been rattled by downbeat comments from top executives at Goldman Sachs Group Inc GS.N, JPMorgan Chase & Co JPM.N and Bank of America Corp BAC.N on Tuesday that a mild to more pronounced recession was likely ahead.
Fears that the U.S. central bank might stick to a longer rate-hike cycle have intensified recently in the wake of strong jobs and service-sector reports.
More economic data, including weekly jobless claims, producer price index and the University of Michigan's consumer sentiment survey this week, will be on the watch list for clues on what to expect from the Fed on Dec. 14.
"It feels like we're in this very uncertain period where investors are trying to ascertain what's more important, as policymakers are slowing down on rates but the data is not playing ball," said Craig Erlam, senior market analyst at OANDA.
"The market is trying to balance the headwinds and the tailwinds and this is causing some confusion."
The CBOE volatility index .VIX, also known as Wall Street's fear gauge, closed at 22.68, its highest finish since Nov. 18.
Money market participants see a 91% chance that the Fed will increase its key benchmark rate by 50 basis points in December to 4.25%-4.50%, with rates peaking in May 2023 at 4.93%. FEDWATCH
The S&P 500 .SPX lost 7.34 points, or 0.19%, to close at 3,933.92 and the Nasdaq Composite .IXIC dropped 56.34 points, or 0.51%, to finish at 10,958.55. The Dow Jones Industrial Average .DJI was flat, ending on 33,597.92.
Concerns about a steep rise in borrowing costs have boosted the dollar, but dented demand for risk assets such as equities this year. The S&P 500 is on track to snap a three-year winning streak.
Three of the 11 major S&P sector indexes were higher, with healthcare .SPXHC one of them. Technology .SPLRCT and communication services .SPLRCL, down 0.5 and 0.9% respectively, were the worst performers.
Energy .SPNY fell for its fifth straight session. The sector's performance was weighed by U.S. crude prices CLc1 falling again, settling at the lowest level in 2022, as concerns over the outlook for global growth wiped out all of the gains since Russia's invasion of Ukraine exacerbated the worst global energy supply crisis in decades.
Carvana Co CVNA.N had its worst day as a public company, losing nearly half its stock value, after Wedbush downgraded the used-car retailer's stock to "underperform" from "neutral" and slashed its price target to $1.
Meanwhile, United Airlines UAL.O traded 4.1% lower. Unions representing various workers at the airline said they would join forces on contract negotiations.
Travel-related stocks were generally down. Delta Air Lines DAL.N and American Airlines Group AAL.O were 4.4% and 5.4% lower respectively, with cruise line operators Carnival Corp CCL.N and Norwegian Cruise Line Holdings NCLH.N and accommodation-linked Airbnb Inc ABNB.O and Booking Holdings BKNG.O all falling between 1.7% and 4.4%.
Volume on U.S. exchanges was 10.29 billion shares, compared with the 10.98 billion average for the full session over the last 20 trading days.
The S&P 500 posted seven new 52-week highs and seven new lows; the Nasdaq Composite recorded 61 new highs and 307 new lows.
(Reporting by Shubham Batra, Ankika Biswas, Johann M Cherian and Shashwat Chauhan in Bengaluru and David French in New York; Editing by Vinay Dwivedi, Shounak Dasgupta and Lisa Shumaker)
((Shubham.Batra@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Nasdaq was dragged down by a 1.4% drop in Apple Inc AAPL.O on Morgan Stanley's iPhone shipment target cut and a 3.2% fall in Tesla Inc .IXIC over production loss worries. By David French Dec 7 (Reuters) - The S&P 500 and Nasdaq closed down on Wednesday after a choppy session on Wall Street, as investors struggled to grasp a clear direction as they weighed how the Federal Reserve's monetary policy tightening might feed through into corporate America. Markets have also been rattled by downbeat comments from top executives at Goldman Sachs Group Inc GS.N, JPMorgan Chase & Co JPM.N and Bank of America Corp BAC.N on Tuesday that a mild to more pronounced recession was likely ahead.
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The Nasdaq was dragged down by a 1.4% drop in Apple Inc AAPL.O on Morgan Stanley's iPhone shipment target cut and a 3.2% fall in Tesla Inc .IXIC over production loss worries. FEDWATCH The S&P 500 .SPX lost 7.34 points, or 0.19%, to close at 3,933.92 and the Nasdaq Composite .IXIC dropped 56.34 points, or 0.51%, to finish at 10,958.55. The sector's performance was weighed by U.S. crude prices CLc1 falling again, settling at the lowest level in 2022, as concerns over the outlook for global growth wiped out all of the gains since Russia's invasion of Ukraine exacerbated the worst global energy supply crisis in decades.
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The Nasdaq was dragged down by a 1.4% drop in Apple Inc AAPL.O on Morgan Stanley's iPhone shipment target cut and a 3.2% fall in Tesla Inc .IXIC over production loss worries. The sector's performance was weighed by U.S. crude prices CLc1 falling again, settling at the lowest level in 2022, as concerns over the outlook for global growth wiped out all of the gains since Russia's invasion of Ukraine exacerbated the worst global energy supply crisis in decades. Carvana Co CVNA.N had its worst day as a public company, losing nearly half its stock value, after Wedbush downgraded the used-car retailer's stock to "underperform" from "neutral" and slashed its price target to $1.
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The Nasdaq was dragged down by a 1.4% drop in Apple Inc AAPL.O on Morgan Stanley's iPhone shipment target cut and a 3.2% fall in Tesla Inc .IXIC over production loss worries. The Dow snapped a two-session losing streak, as it ended unchanged from the previous day. FEDWATCH The S&P 500 .SPX lost 7.34 points, or 0.19%, to close at 3,933.92 and the Nasdaq Composite .IXIC dropped 56.34 points, or 0.51%, to finish at 10,958.55.
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18096.0
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2022-12-07 00:00:00 UTC
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US STOCKS-Wall St ends lower after choppy trading from rising recession worries
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-ends-lower-after-choppy-trading-from-rising-recession-worries
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nan
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By David French
Dec 7 (Reuters) - Wall Street's main indexes ended broadly lower on Wednesday, after a choppy session where investors struggled to grasp a clear direction as they weighed how the Federal Reserve's monetary policy tightening might feed through into corporate America.
The benchmark S&P 500 .SPX fell for the fifth straight session, while the Nasdaq .IXIC finished down for the fourth time in a row.
The Nasdaq was dragged down by a drop in Apple Inc AAPL.O on Morgan Stanley's iPhone shipment target cut and a fall in Tesla Inc .IXIC over production loss worries.
Markets have also been rattled by downbeat comments from top executives at Goldman Sachs Group Inc GS.N, JPMorgan Chase & Co JPM.N and Bank of America Corp BAC.N on Tuesday that a mild to more pronounced recession was likely ahead.
Fears that the U.S. central bank might stick to a longer rate-hike cycle have intensified recently in the wake of strong jobs and service-sector reports.
More economic data, including weekly jobless claims, producer price index and the University of Michigan's consumer sentiment survey this week, will be on the watch list for clues on what to expect from the Fed on Dec. 14.
"It feels like we're in this very uncertain period where investors are trying to ascertain what's more important, as policymakers are slowing down on rates but the data is not playing ball," said Craig Erlam, senior market analyst at OANDA.
"The market is trying to balance the headwinds and the tailwinds and this is causing some confusion."
The CBOE volatility index .VIX, also known as Wall Street's fear gauge, rose to a two-week high before slipping back slightly.
Money market participants see a 91% chance that the Fed will increase its key benchmark rate by 50 basis points in December to 4.25%-4.50%, with rates peaking in May 2023 at 4.93%. FEDWATCH
Concerns about a steep rise in borrowing costs have boosted the dollar, but dented demand for risk assets such as equities this year. The S&P 500 is on track to snap a three-year winning streak.
Few of the 11 major S&P sector indexes were higher, with healthcare .SPXHC one of them. Technology .SPLRCT and communication services .SPLRCL were among the worst performers.
Energy .SPNY fell for its fifth straight session. The sector's performance was weighed by U.S. crude prices CLc1 falling again, settling at the lowest level in 2022, as concerns over the outlook for global growth wiped out all of the gains since Russia's invasion of Ukraine exacerbated the worst global energy supply crisis in decades.
Carvana Co CVNA.Nlost nearly half its stock value after Wedbush downgraded the used-car retailer's stock to "underperform" from "neutral" and slashed its price target to $1.
Meanwhile, United Airlines UAL.O traded lower. Unions representing various workers at the airline said they would join forces on contract negotiations.
Travel-related stocks were generally down. Delta Air Lines DAL.N and American Airlines Group AAL.O were lower, as were cruise line operators Carnival Corp CCL.N and Norwegian Cruise Line Holdings NCLH.N and accommodation-linked Airbnb Inc ABNB.O and Booking Holdings BKNG.O.
(Reporting by Shubham Batra, Ankika Biswas, Johann M Cherian and Shashwat Chauhan in Bengaluru and David French in New York; Editing by Vinay Dwivedi, Shounak Dasgupta and Lisa Shumaker)
((Shubham.Batra@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Nasdaq was dragged down by a drop in Apple Inc AAPL.O on Morgan Stanley's iPhone shipment target cut and a fall in Tesla Inc .IXIC over production loss worries. By David French Dec 7 (Reuters) - Wall Street's main indexes ended broadly lower on Wednesday, after a choppy session where investors struggled to grasp a clear direction as they weighed how the Federal Reserve's monetary policy tightening might feed through into corporate America. Markets have also been rattled by downbeat comments from top executives at Goldman Sachs Group Inc GS.N, JPMorgan Chase & Co JPM.N and Bank of America Corp BAC.N on Tuesday that a mild to more pronounced recession was likely ahead.
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The Nasdaq was dragged down by a drop in Apple Inc AAPL.O on Morgan Stanley's iPhone shipment target cut and a fall in Tesla Inc .IXIC over production loss worries. By David French Dec 7 (Reuters) - Wall Street's main indexes ended broadly lower on Wednesday, after a choppy session where investors struggled to grasp a clear direction as they weighed how the Federal Reserve's monetary policy tightening might feed through into corporate America. The sector's performance was weighed by U.S. crude prices CLc1 falling again, settling at the lowest level in 2022, as concerns over the outlook for global growth wiped out all of the gains since Russia's invasion of Ukraine exacerbated the worst global energy supply crisis in decades.
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The Nasdaq was dragged down by a drop in Apple Inc AAPL.O on Morgan Stanley's iPhone shipment target cut and a fall in Tesla Inc .IXIC over production loss worries. By David French Dec 7 (Reuters) - Wall Street's main indexes ended broadly lower on Wednesday, after a choppy session where investors struggled to grasp a clear direction as they weighed how the Federal Reserve's monetary policy tightening might feed through into corporate America. The sector's performance was weighed by U.S. crude prices CLc1 falling again, settling at the lowest level in 2022, as concerns over the outlook for global growth wiped out all of the gains since Russia's invasion of Ukraine exacerbated the worst global energy supply crisis in decades.
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The Nasdaq was dragged down by a drop in Apple Inc AAPL.O on Morgan Stanley's iPhone shipment target cut and a fall in Tesla Inc .IXIC over production loss worries. By David French Dec 7 (Reuters) - Wall Street's main indexes ended broadly lower on Wednesday, after a choppy session where investors struggled to grasp a clear direction as they weighed how the Federal Reserve's monetary policy tightening might feed through into corporate America. The benchmark S&P 500 .SPX fell for the fifth straight session, while the Nasdaq .IXIC finished down for the fourth time in a row.
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18097.0
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2022-12-07 00:00:00 UTC
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US STOCKS-Wall St wavers on rising recession worries; Apple, Tesla slump
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-wavers-on-rising-recession-worries-apple-tesla-slump
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By Ankika Biswas and Shashwat Chauhan
Dec 7 (Reuters) - Wall Street's main indexes struggled for direction on growing fears that the Federal Reserve's monetary policy tightening could trigger a recession and hit corporate earnings, while Apple and Tesla were the biggest drags on the Nasdaq.
The benchmark S&P 500 .SPX fell for the fifth straight session on Wednesday.
The Nasdaq .IXIC was down for the fourth straight session, dragged lower by a 1.3% drop in Apple Inc AAPL.O on Morgan Stanley's iPhone shipment target cut and a 3.9% fall in Tesla Inc .IXIC over production loss worries.
Markets have also been rattled by downbeat comments from top executives at Goldman Sachs Group Inc GS.N, JPMorgan Chase & Co JPM.N and Bank of America Corp BAC.N on Tuesday that a mild to more pronounced recession was likely ahead.
Fears that the U.S. central bank might stick to a longer rate-hike cycle have intensified recently in the wake of strong jobs and service-sector reports.
More economic data, including weekly jobless claims, producer price index and the University of Michigan's consumer sentiment survey this week, will be on the watch list for clues on what to expect from the Fed on Dec. 14.
"When they (investors) take a look at what earnings estimates are for the remainder of 2022 and for 2023, they have not considered a recession in 2023," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.
"There's some adjustment to what earnings estimates will be over the next 12 months and I think that's what's providing a little bit of pressure to the markets."
The CBOE volatility index .VIX, also known as Wall Street's fear gauge, rose to a two-week high to 23.01 points.
Money market participants see a 91% chance that the Fed will increase its key benchmark rate by 50 basis points in December to 4.25%-4.50%, with rates peaking in May 2023 at 4.93%. FEDWATCH
At 12:08 p.m. ET, the Dow Jones Industrial Average .DJI was down 22.89 points, or 0.07%, at 33,573.45, the S&P 500 .SPX was down 10.53 points, or 0.27%, at 3,930.73, and the Nasdaq Composite .IXIC was down 69.69 points, or 0.63%, at 10,945.20.
Concerns about a steep rise in borrowing costs have boosted the dollar, but dented demand for risk assets such as equities this year. The S&P 500 is on track to snap a three-year winning streak, down 17.4% so far in 2022.
Three out of 11 major S&P sector indexes were higher, with healthcare shares .SPXHC leading the pack, while technology .SPLRCT and communication services stocks .SPLRCL were the worst performers.
Carvana Co CVNA.N was down 30.6% after Wedbush downgraded the used-car retailer's stock to "underperform" from "neutral" and slashed its price target to $1.
Advancing issues outnumbered decliners for a 1.16-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.17-to-1 ratio on the Nasdaq.
The S&P index recorded six new 52-week highs and seven new lows, while the Nasdaq recorded 36 new highs and 226 new lows.
(Reporting by Shubham Batra, Ankika Biswas, Johann M Cherian and Shashwat Chauhan in Bengaluru; Editing by Anil D'Silva, Vinay Dwivedi and 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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The Nasdaq .IXIC was down for the fourth straight session, dragged lower by a 1.3% drop in Apple Inc AAPL.O on Morgan Stanley's iPhone shipment target cut and a 3.9% fall in Tesla Inc .IXIC over production loss worries. By Ankika Biswas and Shashwat Chauhan Dec 7 (Reuters) - Wall Street's main indexes struggled for direction on growing fears that the Federal Reserve's monetary policy tightening could trigger a recession and hit corporate earnings, while Apple and Tesla were the biggest drags on the Nasdaq. Markets have also been rattled by downbeat comments from top executives at Goldman Sachs Group Inc GS.N, JPMorgan Chase & Co JPM.N and Bank of America Corp BAC.N on Tuesday that a mild to more pronounced recession was likely ahead.
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The Nasdaq .IXIC was down for the fourth straight session, dragged lower by a 1.3% drop in Apple Inc AAPL.O on Morgan Stanley's iPhone shipment target cut and a 3.9% fall in Tesla Inc .IXIC over production loss worries. By Ankika Biswas and Shashwat Chauhan Dec 7 (Reuters) - Wall Street's main indexes struggled for direction on growing fears that the Federal Reserve's monetary policy tightening could trigger a recession and hit corporate earnings, while Apple and Tesla were the biggest drags on the Nasdaq. Advancing issues outnumbered decliners for a 1.16-to-1 ratio on the NYSE.
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The Nasdaq .IXIC was down for the fourth straight session, dragged lower by a 1.3% drop in Apple Inc AAPL.O on Morgan Stanley's iPhone shipment target cut and a 3.9% fall in Tesla Inc .IXIC over production loss worries. By Ankika Biswas and Shashwat Chauhan Dec 7 (Reuters) - Wall Street's main indexes struggled for direction on growing fears that the Federal Reserve's monetary policy tightening could trigger a recession and hit corporate earnings, while Apple and Tesla were the biggest drags on the Nasdaq. ET, the Dow Jones Industrial Average .DJI was down 22.89 points, or 0.07%, at 33,573.45, the S&P 500 .SPX was down 10.53 points, or 0.27%, at 3,930.73, and the Nasdaq Composite .IXIC was down 69.69 points, or 0.63%, at 10,945.20.
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The Nasdaq .IXIC was down for the fourth straight session, dragged lower by a 1.3% drop in Apple Inc AAPL.O on Morgan Stanley's iPhone shipment target cut and a 3.9% fall in Tesla Inc .IXIC over production loss worries. By Ankika Biswas and Shashwat Chauhan Dec 7 (Reuters) - Wall Street's main indexes struggled for direction on growing fears that the Federal Reserve's monetary policy tightening could trigger a recession and hit corporate earnings, while Apple and Tesla were the biggest drags on the Nasdaq. The CBOE volatility index .VIX, also known as Wall Street's fear gauge, rose to a two-week high to 23.01 points.
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18098.0
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2022-12-07 00:00:00 UTC
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Our 7 Top 5G Stock Picks for 2023
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AAPL
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https://www.nasdaq.com/articles/our-7-top-5g-stock-picks-for-2023
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It feels like 5G technology has been around forever, but it’s really only started to emerge in the last two years. The Covid-19 pandemic actually slowed its progress. But innovation delayed is not the same as innovation denied. Indeed, 5G is going to impact many aspects of our life. And that means it’s time for investors to look at the best 5G stock picks for 2023.
5G is most frequently thought of in terms of wireless technology (e.g. a 5G smartphone). And there’s no denying that an increasing number of devices from automobile to industrial devices will benefit from the shift to 5G. One of the most anticipated product launches was the 5G version of the Apple (NASDAQ:AAPL) iPhone.
That said, the uses for 5G continue to expand as businesses move more of their infrastructure to the cloud. Accordingly, that gives investors many different ways to invest in 5G stocks. In this article, we identify seven of the top 5G stock picks for 2023.
TMUS T-Mobile $149.19
DISH Dish Network $14.49
QCOM Qualcomm $118.14
AVGO Broadcom $518.80
GLW Corning $33.09
CCI Crown Castle $138.06
AMZN Amazon $88.48
T-Mobile (TMUS)
Source: Shutterstock
The race is on among wireless device providers to capture market share. So far, T-Mobile (NASDAQ:TMUS) remains the leader. And since its acquisition of Sprint, T-Mobile stands to capture a larger share of that pie. In the company’s most recent quarter, T-Mobile added over 850,000 postpaid phone subscribers which was significantly higher than analysts’ estimates for 739,000.
T-Mobile also stands to benefit from more than $100 billion that the U.S. government is designating for the U.S. broadband buildout. As the nation’s second-largest wireless carrier, T-Mobile is working with Citigroup (NYSE:C) to find partners for the creation of a fiber-optic network that targets the home broadband market.
TMUS stock is up over 30% in 2022. The stock is not cheap by conventional price-earnings metrics. However, even though T-Mobile is trading near the top of its 52-week range, analysts give the stock a consensus price target that suggests 15% upside for the stock is reasonable.
Dish Network (DISH)
Source: Jonathan Weiss / Shutterstock.com
Dish Network (NASDAQ:DISH) makes this list of 5G stock picks for 2023 because it is preparing to launch 5G Infinite in the first quarter of 2023. This will give Dish Network a first mover advantage as the “first virtualized, standalone 5G broadband network” in the United States. Early reports say the company will be offering customers a $25 per month for life plan.
There is a risk that the company will be delayed in its execution. In November, Dish raised $2 billion in a secured debt offering to fund the expansion. The goal will be 70% coverage by June 2023. This could be the last remaining piece of the puzzle for DISH stock, which is undervalued by several metrics, but shows understandably slowing growth in its legacy satellite business.
This is attracting the attention of analysts who give DISH stock a moderate buy rating with a price target that has an upside of more than 145%.
Qualcomm (QCOM)
Source: Xixi Fu / Shutterstock.com
As I mentioned in the introduction, the Apple 5G iPhone has been one of the most anticipated launches in 2022. As Larry Ramer recently wrote, Qualcomm (NASDAQ:QCOM) told investors it expects to provide “the vast majority” of the components that Apple will use in its 5G iPhones in 2023.
The relationship between Qualcomm and Apple will remain something to watch. However, even Apple becomes less reliant on Qualcomm, the company is well-positioned for the 5G build-out. To elaborate on this, I’ll refer to Louis Navallier who reminded InvestorPlace readers that the company “owns several patents that are critical to the manufacturing of semiconductors” that will be needed to make 5G technology possible.
QCOM stock dropped sharply after its November earnings report. But the stock has recaptured those losses, and offers attractive profitability and valuation metrics. Plus, analysts give the stock a moderate buy rating with a consensus price target that shows potential upside of over 30%.
Broadcom (AVGO)
Source: Sasima / Shutterstock.com
Qualcomm provides many of the components needed to manufacture semiconductors. Broadcom (NASDAQ:AVGO) supplies the semiconductors themselves as well as some of the related technology. While this article is focusing on 5G stock picks for 2023, Broadcom will also benefit from the rapid growth of the Internet of Things (IoT).
Additionally, looking at the company’s revenue and earnings results for the first three quarters of 2022, you can see that demand remains strong. That demand is combined with strong fundamentals. As Brett Kenwell recently noted, Broadcom is a free cash flow generating machine, and that cash flow is being returned to shareholders in many ways, including a dividend that has been growing for 12 years and has a yield of over 3%.
Broadcom is also an example of the difference between price and value. While AVGO stock still trades for over $525 a share at the time of this writing, analysts continue to rate the stock as a moderate buy with a price target of over $670.
Corning (GLW)
Source: Shutterstock
Corning (NYSE:GLW) is a different kind of picks-and-shovels investment in 5G technology. The company makes fiber optic cable. This will be essential to ensuring that 5G networks can handle increased transmission speeds and capacity 5G networks bring.
Earlier this year, Corning’s TXF fiber achieved 800G across 800km, offering proof that this product is a key solution to the long-haul transmission problem. TXF fiber will be significant for areas such as data centers, robotics and medical devices.
Corning is also an essential supplier to semiconductor companies. The company provides a range of solutions that are helping to make chips smaller and more complex. And when the company does make sales they do so with a profit margin that, at over 12%, is better than 99% of companies in its sector.
Corning met expectations for revenue and earnings in its most recent earnings report. However, for the first three quarters of 2022, the company has been beating its year-over-year comparables on both the top and bottom lines. Additionally, Corning pays a reliable dividend that has a yield over 3% and has been increasing for the last 11 years.
Crown Castle (CCI)
Source: Vitalii Vodolazskyi / Shutterstock
If 2023 goes the way that many economists believe it will, than real estate investment trusts (REITs) will continue to attract the attention of investors. That’s one reason that Crown Castle (NYSE:CCI) makes this list of 5G stock picks for 2023.
However, to be more specific, Crown Castle is the market leader in providing the small cells that are required for the build-out of 5G. The company says it has approximately 115,000 small cells that are either “on air” or under contract. And Crown Castle believes that the nation will need over 800,000 small cells by 2026. This makes the decision to buy CCI stock pretty simple.
REITs aren’t known for a lot of capital growth. However, CCI stock is forecasted to grow approximately 20% over the next 12 months. That being said, investors own REITs for their reliable dividends. And with a yield of over 4%, CCI stock doesn’t disappoint. Plus, the company has increased their dividend in each of the last eight years.
Amazon (AMZN)
Source: Sundry Photography / Shutterstock.com
Last, but certainly not least on this list of best 5G stocks for 2023, is Amazon (NASDAQ:AMZN). The reason for that has to do with its Amazon Web Services (AWS) division. That’s the division that houses the company’s Private 5G platform.
As 5G expands, so is the desire for private 5G networks that live on the edge of a network. That’s what Amazon is providing with what it refers to as its “5G in a box” service. The company acknowledges that this is far from a finished product and there are obstacles to be overcome. Nevertheless, Amazon sees a long runway ahead for the private 5G sector. And it’s hard to bet against the company if it decides it wants to make a meaningful splash.
AWS continues to generate significant profits for Amazon. In fact, it was one of the few bright spots in the company’s most recent earnings report. 5G is an emerging story, but one that that gives investors an additional reason to buy AMZN stock.
On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.
The post Our 7 Top 5G Stock Picks for 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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One of the most anticipated product launches was the 5G version of the Apple (NASDAQ:AAPL) iPhone. As the nation’s second-largest wireless carrier, T-Mobile is working with Citigroup (NYSE:C) to find partners for the creation of a fiber-optic network that targets the home broadband market. To elaborate on this, I’ll refer to Louis Navallier who reminded InvestorPlace readers that the company “owns several patents that are critical to the manufacturing of semiconductors” that will be needed to make 5G technology possible.
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One of the most anticipated product launches was the 5G version of the Apple (NASDAQ:AAPL) iPhone. TMUS T-Mobile $149.19 DISH Dish Network $14.49 QCOM Qualcomm $118.14 AVGO Broadcom $518.80 GLW Corning $33.09 CCI Crown Castle $138.06 AMZN Amazon $88.48 T-Mobile (TMUS) Source: Shutterstock The race is on among wireless device providers to capture market share. Dish Network (DISH) Source: Jonathan Weiss / Shutterstock.com Dish Network (NASDAQ:DISH) makes this list of 5G stock picks for 2023 because it is preparing to launch 5G Infinite in the first quarter of 2023.
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One of the most anticipated product launches was the 5G version of the Apple (NASDAQ:AAPL) iPhone. TMUS T-Mobile $149.19 DISH Dish Network $14.49 QCOM Qualcomm $118.14 AVGO Broadcom $518.80 GLW Corning $33.09 CCI Crown Castle $138.06 AMZN Amazon $88.48 T-Mobile (TMUS) Source: Shutterstock The race is on among wireless device providers to capture market share. However, even though T-Mobile is trading near the top of its 52-week range, analysts give the stock a consensus price target that suggests 15% upside for the stock is reasonable.
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One of the most anticipated product launches was the 5G version of the Apple (NASDAQ:AAPL) iPhone. TMUS T-Mobile $149.19 DISH Dish Network $14.49 QCOM Qualcomm $118.14 AVGO Broadcom $518.80 GLW Corning $33.09 CCI Crown Castle $138.06 AMZN Amazon $88.48 T-Mobile (TMUS) Source: Shutterstock The race is on among wireless device providers to capture market share. Additionally, looking at the company’s revenue and earnings results for the first three quarters of 2022, you can see that demand remains strong.
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2022-12-07 00:00:00 UTC
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US STOCKS-Wall St extends losses as recession worries mount, Apple drops
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-extends-losses-as-recession-worries-mount-apple-drops
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nan
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nan
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By Ankika Biswas and Johann M Cherian
Dec 7 (Reuters) - U.S. stock indexes fell in choppy trading on Wednesday as investors assessed the warnings of a looming recession from major Wall Street bankers, while Apple shares fell on analyst projections of lower iPhone shipments.
The benchmark S&P 500 .SPX fell for a fifth straight session and the Nasdaq .IXIC for a fourth, dragged down by a 1.4% drop in Apple Inc AAPL.O shares on Morgan Stanley's iPhone shipment target cut due to production delays at a Foxconn2317.TW plant in China.
Markets have also been rattled by downbeat comments from top executives at Goldman Sachs Group Inc GS.N, JPMorgan Chase & Co JPM.N and Bank of America Corp BAC.Nthat a mild to more pronounced recession was likely ahead.
Fears that the U.S. central bank might stick to a longer rate-hike cycle have intensified recently in the wake of strong jobs and service-sector reports.
More economic data, including weekly jobless claims, producer price index and the University of Michigan's consumer sentiment survey this week, will be on the watch list for clues on what to expect from the Fed on Dec. 14.
"Expectations are beginning to unravel a little bit as the market realizes that the Fed may have to maintain rates at a higher level for longer than it had hoped and this is placing a more downward pressure on the markets," said Jason Pride, chief investment officer for private wealth at Glenmede in Philadelphia.
"From the bigger picture, the Fed has hiked rates to a point where markets are expecting monetary policy to be restrictive enough to cause a mild recession."
The CBOE volatility index .VIX, also known as Wall Street's fear gauge, rose to a two-week high at 23.01 points amid increased investor anxiety.
Money market participants see a 91% chance that the Fed will increase its key benchmark rate by 50 basis point in December to 4.25%-4.50%, with rates peaking in May 2023 at 4.92%. FEDWATCH
At 9:54 a.m. ET, the Dow Jones Industrial Average .DJI was down 80.70 points, or 0.24%, at 33,515.64, the S&P 500 .SPX was down 12.07 points, or 0.31%, at 3,929.19, and the Nasdaq Composite .IXIC was down 70.86 points, or 0.64%, at 10,944.03.
Concerns around a steep rise in borrowing costs have boosted the dollar and dented demand for risk assets such as equities this year, with the S&P 500 on course to snap a three-year winning streak, down 17.5% so far in 2022.
Four out of 11 major S&P sector indexes were higher in early trading, with healthcare .SPXHC leading the pack, while technology .SPLRCT was the worst performer, with a 1% drop.
Tesla Inc TSLA.O slumped 2.9%, down for a third straight session over production loss worries at its Shanghai plant.
Carvana Co CVNA.N tumbled 36.8% to a record low after Wedbush downgraded the used-car retailer's stock to "underperform" from "neutral" and trimmed its price target to $1.
Advancing issues outnumbered decliners by a 1.01-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.39-to-1 ratio on the Nasdaq.
(Reporting by Shubham Batra, Ankika Biswas and Johann M Cherian in Bengaluru; Editing by Anil D'Silva and Vinay Dwivedi)
((Shubham.Batra@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The benchmark S&P 500 .SPX fell for a fifth straight session and the Nasdaq .IXIC for a fourth, dragged down by a 1.4% drop in Apple Inc AAPL.O shares on Morgan Stanley's iPhone shipment target cut due to production delays at a Foxconn2317.TW plant in China. Markets have also been rattled by downbeat comments from top executives at Goldman Sachs Group Inc GS.N, JPMorgan Chase & Co JPM.N and Bank of America Corp BAC.Nthat a mild to more pronounced recession was likely ahead. Concerns around a steep rise in borrowing costs have boosted the dollar and dented demand for risk assets such as equities this year, with the S&P 500 on course to snap a three-year winning streak, down 17.5% so far in 2022.
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The benchmark S&P 500 .SPX fell for a fifth straight session and the Nasdaq .IXIC for a fourth, dragged down by a 1.4% drop in Apple Inc AAPL.O shares on Morgan Stanley's iPhone shipment target cut due to production delays at a Foxconn2317.TW plant in China. By Ankika Biswas and Johann M Cherian Dec 7 (Reuters) - U.S. stock indexes fell in choppy trading on Wednesday as investors assessed the warnings of a looming recession from major Wall Street bankers, while Apple shares fell on analyst projections of lower iPhone shipments. Advancing issues outnumbered decliners by a 1.01-to-1 ratio on the NYSE.
|
The benchmark S&P 500 .SPX fell for a fifth straight session and the Nasdaq .IXIC for a fourth, dragged down by a 1.4% drop in Apple Inc AAPL.O shares on Morgan Stanley's iPhone shipment target cut due to production delays at a Foxconn2317.TW plant in China. By Ankika Biswas and Johann M Cherian Dec 7 (Reuters) - U.S. stock indexes fell in choppy trading on Wednesday as investors assessed the warnings of a looming recession from major Wall Street bankers, while Apple shares fell on analyst projections of lower iPhone shipments. "Expectations are beginning to unravel a little bit as the market realizes that the Fed may have to maintain rates at a higher level for longer than it had hoped and this is placing a more downward pressure on the markets," said Jason Pride, chief investment officer for private wealth at Glenmede in Philadelphia.
|
The benchmark S&P 500 .SPX fell for a fifth straight session and the Nasdaq .IXIC for a fourth, dragged down by a 1.4% drop in Apple Inc AAPL.O shares on Morgan Stanley's iPhone shipment target cut due to production delays at a Foxconn2317.TW plant in China. By Ankika Biswas and Johann M Cherian Dec 7 (Reuters) - U.S. stock indexes fell in choppy trading on Wednesday as investors assessed the warnings of a looming recession from major Wall Street bankers, while Apple shares fell on analyst projections of lower iPhone shipments. "From the bigger picture, the Fed has hiked rates to a point where markets are expecting monetary policy to be restrictive enough to cause a mild recession."
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