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18100.0
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2022-12-07 00:00:00 UTC
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French environmentalists file complaint against Apple for wasteful practices
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AAPL
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https://www.nasdaq.com/articles/french-environmentalists-file-complaint-against-apple-for-wasteful-practices-0
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nan
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nan
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Adds context, company not immediately available for comment
PARIS, Dec 7 (Reuters) - A French environmental campaign group filed a complaint against Apple Inc. AAPL.O over commercial practices restricting the use of spare parts for repairs, it said on Wednesday.
"In many of the cases documented in the complaint, malfunctions are found in cases where the device is repaired with a part, even an identical and original part, not authorised by Apple's software," the HOP association said in a statement.
This would compromise the possibilities to repair or refurbish some products, including iPhone smartphones, the group said.
Apple France was not immediately available to comment.
In a similar case brought before the French consumer watchdog by the group in 2020, Apple agreed to pay 25 million euros ($26.32 million) for failing to inform iPhone users that updates of the operating system could slow down the functioning of the device.
Under French law, it is forbidden to deliberately reduce the lifespan of a product in order to increase its replacement rate.
($1 = 0.9500 euros)
(Reporting by Tassilo Hummel, Editng by Dominique Vidalon, Kirsten Donovan)
((tassilo.hummel@thomsonreuters.com ; Twitter handle: @tassilo_hummel;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Adds context, company not immediately available for comment PARIS, Dec 7 (Reuters) - A French environmental campaign group filed a complaint against Apple Inc. AAPL.O over commercial practices restricting the use of spare parts for repairs, it said on Wednesday. In a similar case brought before the French consumer watchdog by the group in 2020, Apple agreed to pay 25 million euros ($26.32 million) for failing to inform iPhone users that updates of the operating system could slow down the functioning of the device. Under French law, it is forbidden to deliberately reduce the lifespan of a product in order to increase its replacement rate.
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Adds context, company not immediately available for comment PARIS, Dec 7 (Reuters) - A French environmental campaign group filed a complaint against Apple Inc. AAPL.O over commercial practices restricting the use of spare parts for repairs, it said on Wednesday. "In many of the cases documented in the complaint, malfunctions are found in cases where the device is repaired with a part, even an identical and original part, not authorised by Apple's software," the HOP association said in a statement. In a similar case brought before the French consumer watchdog by the group in 2020, Apple agreed to pay 25 million euros ($26.32 million) for failing to inform iPhone users that updates of the operating system could slow down the functioning of the device.
|
Adds context, company not immediately available for comment PARIS, Dec 7 (Reuters) - A French environmental campaign group filed a complaint against Apple Inc. AAPL.O over commercial practices restricting the use of spare parts for repairs, it said on Wednesday. "In many of the cases documented in the complaint, malfunctions are found in cases where the device is repaired with a part, even an identical and original part, not authorised by Apple's software," the HOP association said in a statement. In a similar case brought before the French consumer watchdog by the group in 2020, Apple agreed to pay 25 million euros ($26.32 million) for failing to inform iPhone users that updates of the operating system could slow down the functioning of the device.
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Adds context, company not immediately available for comment PARIS, Dec 7 (Reuters) - A French environmental campaign group filed a complaint against Apple Inc. AAPL.O over commercial practices restricting the use of spare parts for repairs, it said on Wednesday. This would compromise the possibilities to repair or refurbish some products, including iPhone smartphones, the group said. In a similar case brought before the French consumer watchdog by the group in 2020, Apple agreed to pay 25 million euros ($26.32 million) for failing to inform iPhone users that updates of the operating system could slow down the functioning of the device.
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18101.0
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2022-12-07 00:00:00 UTC
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Apple To Use US-made Microchips From TSMC's New Arizona Factory
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AAPL
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https://www.nasdaq.com/articles/apple-to-use-us-made-microchips-from-tsmcs-new-arizona-factory
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nan
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nan
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(RTTNews) - Apple Inc. plans to start using American-made processors from the new advanced chip factory in Phoenix, Arizona operated by chip giant Taiwan Semiconductor Manufacturing Co., according to its Chief Executive Officer Tim Cook.
At an event in the factory in Arizona, which was attended by U.S. President Joe Biden, it was also announced that TSMC will invest $40 billion in the new factory, where chip companies AMD and Nvidia will also be first customers.
Cook said, "The progress we've made with Apple Silicon has transformed our devices. … And now, thanks to the hard work of so many people, these chips can be proudly stamped 'Made in America."
He also tweeted that Apple would be the site's largest customer.
The world's largest chipmaker said its new plant is expected to start producing 4 -nanometer or nm processors in 2024. The construction on a second factory in Phoenix will be started next year, to be ready by 2026, that will produce 3nm chips, the smallest and most complex processors currently available.
TSMC expects the two factories in Arizona to produce more than 600,000 wafers annually by 2026, which, according to White House officials, will be enough to meet the entire US demand for advanced chips.
TSMC reportedly plans to produce 2nm chips by 2025 in its overseas facilities mainly in Taiwan.
At present, TSMC produces the most advanced processors, including the chips in Apple's latest iPhones, iPads and Macs.
However, Apple has been struggling with issues in supply chain and the chip shortage amid the pandemic, which are said to have caused the tech major $6 billion in sales. The company recently announcced plans to buy more chips from Europe and US semiconductor fabrication plants to meet supply issues.
TSMC's factories in Arizona will be partially subsidized by the U.S. Government as per the CHIPS and Science Act, signed by Biden in August, which is a legislative package that contains $52 billion for domestic chip production.
Biden said at the event, "These chips will power iPhones and MacBooks, as Tim Cook can attest. Apple had to buy all the advanced chips from overseas. Now we're going to do more of their supply chain here at home."
Along with Biden and Cook, TSMC's "tool-in" ceremony, marking the arrival of production equipment to the first facility, was attended by TSMC founder Morris Chang and NVIDIA CEO Jensen Huang, who said TSMC's investment to the U. S. is a masterstroke and a game changing development for the industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
TSMC expects the two factories in Arizona to produce more than 600,000 wafers annually by 2026, which, according to White House officials, will be enough to meet the entire US demand for advanced chips. However, Apple has been struggling with issues in supply chain and the chip shortage amid the pandemic, which are said to have caused the tech major $6 billion in sales. The company recently announcced plans to buy more chips from Europe and US semiconductor fabrication plants to meet supply issues.
|
(RTTNews) - Apple Inc. plans to start using American-made processors from the new advanced chip factory in Phoenix, Arizona operated by chip giant Taiwan Semiconductor Manufacturing Co., according to its Chief Executive Officer Tim Cook. At present, TSMC produces the most advanced processors, including the chips in Apple's latest iPhones, iPads and Macs. The company recently announcced plans to buy more chips from Europe and US semiconductor fabrication plants to meet supply issues.
|
(RTTNews) - Apple Inc. plans to start using American-made processors from the new advanced chip factory in Phoenix, Arizona operated by chip giant Taiwan Semiconductor Manufacturing Co., according to its Chief Executive Officer Tim Cook. At an event in the factory in Arizona, which was attended by U.S. President Joe Biden, it was also announced that TSMC will invest $40 billion in the new factory, where chip companies AMD and Nvidia will also be first customers. TSMC's factories in Arizona will be partially subsidized by the U.S. Government as per the CHIPS and Science Act, signed by Biden in August, which is a legislative package that contains $52 billion for domestic chip production.
|
(RTTNews) - Apple Inc. plans to start using American-made processors from the new advanced chip factory in Phoenix, Arizona operated by chip giant Taiwan Semiconductor Manufacturing Co., according to its Chief Executive Officer Tim Cook. At an event in the factory in Arizona, which was attended by U.S. President Joe Biden, it was also announced that TSMC will invest $40 billion in the new factory, where chip companies AMD and Nvidia will also be first customers. The world's largest chipmaker said its new plant is expected to start producing 4 -nanometer or nm processors in 2024.
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18102.0
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2022-12-07 00:00:00 UTC
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Why Investors Should Love Apple's Dividend
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AAPL
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https://www.nasdaq.com/articles/why-investors-should-love-apples-dividend
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nan
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nan
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Significant pullbacks in some stocks' prices this year may have felt like a punch in the gut to some investors, leaving them looking for ways to help improve returns and ultimately ease the pain during the market's next big drawdown. While there's no certain way to do this, one idea worth exploring is investing in more dividend stocks. While dividend stocks can fall the same way as shares without dividends, many of them continue paying dividends as their share prices dip. Even more, a quality dividend stock could not only refrain from lowering its quarterly dividend payout but potentially even increase it during tough times.
But what dividend stocks have the kind of staying power and strong business characteristics to continue increasing their dividends during a bear market? While there are plenty of high-quality dividend stocks, one top idea is Apple (NASDAQ: AAPL).
Consistent dividend growth
Highlighting the resilience of Apple's dividend, the company hasn't skipped a quarterly payout since its dividend was initiated in 2012. Even better, Apple has increased its payout during each of the last 10 years. Indeed, the company's quarterly dividend has increased more than threefold (on a split-adjusted basis) since 2012.
More recently, Apple's dividend increases have been fairly modest, with its most recent hike only representing about a 5% increase. But this is likely due primarily to the company's preference to return more capital to shareholders indirectly via share repurchases than directly in the form of dividends. Further, Apple's recent dividend increases may have been lower in light of the uncertain macroeconomic environment. Whatever the case, investors should be pleased with Apple's long history of consistent annual dividend increases.
A low payout ratio
With a dividend yield of just 0.6%, investors are going to want more dividend growth in the coming years. While Apple's history of consistent dividend growth suggests this will happen, the company's income statement gives investors another clue: Apple's current annual dividend payments account for only a fraction of the company's annual earnings. The tech giant has a payout ratio of just 15%. A low payout ratio means Apple has plenty of room to steadily increase its dividend going forward.
Apple prioritizes returning capital to shareholders
Finally, it's worth noting that Apple's management team is currently prioritizing returning capital to shareholders. Apple CEO Luca Maestri reminded investors in the company's most recent earnings call that the iPhone maker's plan is to return cash aggressively enough that its total cash position equals its total debt position (cash neutral). With annualized free cash flow of over $110 billion and a net cash position of $49 billion at the end of the fiscal fourth quarter, you can imagine just how concerted the company will have to be in its efforts to return enough cash to shareholders with both repurchases and dividends to get to cash neutral over time.
Investors, therefore, shouldn't overlook Apple as a good dividend-paying stock just because it has a low dividend yield. The company's strong financials and low payout ratio position the tech company well for more of the consistent dividend growth it has delivered to investors since 2012.
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Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
While there are plenty of high-quality dividend stocks, one top idea is Apple (NASDAQ: AAPL). Significant pullbacks in some stocks' prices this year may have felt like a punch in the gut to some investors, leaving them looking for ways to help improve returns and ultimately ease the pain during the market's next big drawdown. But this is likely due primarily to the company's preference to return more capital to shareholders indirectly via share repurchases than directly in the form of dividends.
|
While there are plenty of high-quality dividend stocks, one top idea is Apple (NASDAQ: AAPL). Whatever the case, investors should be pleased with Apple's long history of consistent annual dividend increases. Apple prioritizes returning capital to shareholders Finally, it's worth noting that Apple's management team is currently prioritizing returning capital to shareholders.
|
While there are plenty of high-quality dividend stocks, one top idea is Apple (NASDAQ: AAPL). While dividend stocks can fall the same way as shares without dividends, many of them continue paying dividends as their share prices dip. Consistent dividend growth Highlighting the resilience of Apple's dividend, the company hasn't skipped a quarterly payout since its dividend was initiated in 2012.
|
While there are plenty of high-quality dividend stocks, one top idea is Apple (NASDAQ: AAPL). Consistent dividend growth Highlighting the resilience of Apple's dividend, the company hasn't skipped a quarterly payout since its dividend was initiated in 2012. Even better, Apple has increased its payout during each of the last 10 years.
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18103.0
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2022-12-07 00:00:00 UTC
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Stock Market News for Dec 7, 2022
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-dec-7-2022
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nan
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nan
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Wall Street closed sharply lower on Tuesday for the second straight session in the week. The fear of a recession gripped the market as recent economic data raised concerns that the Fed might be deterred from going slow on its policy tightening. All three major indexes ended in the red.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 1% or 350.76 points to end at 33,596.34 points. Twenty-four components of the 30-stock index ended in negative territory, while six ended in the positive.
The S&P 500 lost 1.4% or 57.58 points to close at 3,941.26 points. Ten of the 11 broad sectors of the benchmark index ended in negative territory. The Communication Services Select Sector SPDR (XLC), the Energy Select Sector SPDR (XLE) and the Technology Select Sector SPDR (K) decreased 2.9%, 2.6% and 2.1%, respectively, while the Utilities Select Sector SPDR (XLU) advanced 0.6%.
The tech-heavy Nasdaq dropped 2% or 225.05 points to finish at 11,014.89 points.
The fear-gauge CBOE Volatility Index (VIX) increased 6.8% to 22.17. A total of 11 billion shares were traded on Tuesday, in line with the last 20-session average. The S&P 500 recorded three new 52-week highs and nine new lows, while the Nasdaq posted 52 new highs and 262 new lows.
Investors Weary Of Impending Recession
In the last few sessions, Wall Street has been reeling under the fear of an impending recession. The recent slew of economic data has wiped out any hope that the Fed would be taking a backseat with regard to its policy tightening, as numbers have suggested that indicators like labor market, wage growth, and the services sector, among others, have stayed strong.
Investors remain apprehensive that these numbers would push the Fed to infer that it has not done enough to dampen market demand. Under normal circumstances, robust economic indicators would be great for the market. But in the current scenario, market participants are eagerly waiting for economic indicators to show that business activity across sectors has slowed, thereby curbing inflation. Major financial houses have reflected that the stringent policy measures would induce an economic downturn in 2023.
There is a general consensus that the central bank might be raising rates by 50 basis points at its Dec 13-14 policy meeting, with rates expected to peak at 4.98% in May 2023. Growth stocks have suffered the most in the last few sessions as with a downturn looming large, they currently look overvalued. Investors are taking money out from large-cap growth and technology stocks to rush to safety.
Consequently, shares of Apple Inc. AAPL and Microsoft Corporation MSFT slid 2.5% and 2%, respectively. Both carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Meta Becomes a Drag On The Tech Sector
Reports have emerged that in the territories of the European Union, Meta Platforms, Inc. META will only be able to run advertising based on personal data with users' consent. This has dealt a blow to the social media giant, with its stocks plunging 6.8% on the day. This follows Apple's new privacy rules, which limit digital advertisers from tracking iPhone users.
Meta’s plunge became a major drag on the S&P 500, which closed its fourth straight losing session, and for the tech sector at large.
Economic Data
The U.S. Census Bureau and the U.S. Bureau of Economic Analysis reported that trade deficit was $78.2 billion in October, up $4.0 billion from the revised $74.1 billion in September.
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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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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Consequently, shares of Apple Inc. AAPL and Microsoft Corporation MSFT slid 2.5% and 2%, respectively. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The fear of a recession gripped the market as recent economic data raised concerns that the Fed might be deterred from going slow on its policy tightening.
|
Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Consequently, shares of Apple Inc. AAPL and Microsoft Corporation MSFT slid 2.5% and 2%, respectively. The Communication Services Select Sector SPDR (XLC), the Energy Select Sector SPDR (XLE) and the Technology Select Sector SPDR (K) decreased 2.9%, 2.6% and 2.1%, respectively, while the Utilities Select Sector SPDR (XLU) advanced 0.6%.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Consequently, shares of Apple Inc. AAPL and Microsoft Corporation MSFT slid 2.5% and 2%, respectively. The Communication Services Select Sector SPDR (XLC), the Energy Select Sector SPDR (XLE) and the Technology Select Sector SPDR (K) decreased 2.9%, 2.6% and 2.1%, respectively, while the Utilities Select Sector SPDR (XLU) advanced 0.6%.
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Consequently, shares of Apple Inc. AAPL and Microsoft Corporation MSFT slid 2.5% and 2%, respectively. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The fear of a recession gripped the market as recent economic data raised concerns that the Fed might be deterred from going slow on its policy tightening.
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18104.0
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2022-12-07 00:00:00 UTC
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US STOCKS-Wall Street set to open lower as recession worries mount
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-set-to-open-lower-as-recession-worries-mount
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nan
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nan
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By Shubham Batra and Johann M Cherian
Dec 7 (Reuters) - U.S. stock indexes were set to open lower on Wednesday after warnings of a looming recession from major Wall Street bankers offset optimism around China relaxing its strict zero-COVID rules.
Top executives at Goldman Sachs Group Inc GS.N, JPMorgan Chase & Co JPM.N and Bank of America Corp BAC.N said on Tuesday that inflation would erode consumer spending power and a mild to more pronounced recession was likely ahead.
Fears of a recession due to the U.S. Federal Reserve's aggressive rate hikes to curb inflation pulled the S&P 500 .SPX lower for a fourth straight session on Tuesday, with all major Wall Street indexes ending down 1%-2%.
"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 4.95%. FEDWATCH
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.
At 8:29 a.m. ET, Dow e-minis 1YMcv1 were down 85 points, or 0.25%, S&P 500 e-minis EScv1 were down 19 points, or 0.48%, and Nasdaq 100 e-minis NQcv1 were down 94.75 points, or 0.82%.
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 17.3% so far in 2022.
Elsewhere, China announced the most sweeping changes to its tough anti-COVID regime, including allowing infected people with mild or no symptoms to quarantine at home and dropping testing for domestic traveling, following protests against COVID controls.
However, U.S.-listed Chinese stocks such as NetEase Inc NTES.O, Alibaba Group Holding Ltd BABA.K and JD.com Inc JD.O tumbled between 2.5% and 5.2% in premarket trading after data showed China's trade shrank the most in 2-1/2 years in November.
Apple Inc AAPL.O fell 1% as Morgan Stanley cut its estimates for the firm's December-quarter iPhone shipment after chip maker Foxconn2317.TW flagged production delay.
Tesla Inc TSLA.O slumped 2.8% and was on track to fall for a third straight session over production loss worries at its Shanghai plant.
Carvana Co CVNA.N tumbled 25.5% after Wedbush downgraded the used-car retailer's stock to "underperform" from "neutral" and pruned its price target to $1.
(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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Apple Inc AAPL.O fell 1% as Morgan Stanley cut its estimates for the firm's December-quarter iPhone shipment after chip maker Foxconn2317.TW flagged production delay. By Shubham Batra and Johann M Cherian Dec 7 (Reuters) - U.S. stock indexes were set to open lower on Wednesday after warnings of a looming recession from major Wall Street bankers offset optimism around China relaxing its strict zero-COVID rules. Fears of a recession due to the U.S. Federal Reserve's aggressive rate hikes to curb inflation pulled the S&P 500 .SPX lower for a fourth straight session on Tuesday, with all major Wall Street indexes ending down 1%-2%.
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Apple Inc AAPL.O fell 1% as Morgan Stanley cut its estimates for the firm's December-quarter iPhone shipment after chip maker Foxconn2317.TW flagged production delay. By Shubham Batra and Johann M Cherian Dec 7 (Reuters) - U.S. stock indexes were set to open lower on Wednesday after warnings of a looming recession from major Wall Street bankers offset optimism around China relaxing its strict zero-COVID rules. Fears of a recession due to the U.S. Federal Reserve's aggressive rate hikes to curb inflation pulled the S&P 500 .SPX lower for a fourth straight session on Tuesday, with all major Wall Street indexes ending down 1%-2%.
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Apple Inc AAPL.O fell 1% as Morgan Stanley cut its estimates for the firm's December-quarter iPhone shipment after chip maker Foxconn2317.TW flagged production delay. By Shubham Batra and Johann M Cherian Dec 7 (Reuters) - U.S. stock indexes were set to open lower on Wednesday after warnings of a looming recession from major Wall Street bankers offset optimism around China relaxing its strict zero-COVID rules. Fears of a recession due to the U.S. Federal Reserve's aggressive rate hikes to curb inflation pulled the S&P 500 .SPX lower for a fourth straight session on Tuesday, with all major Wall Street indexes ending down 1%-2%.
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Apple Inc AAPL.O fell 1% as Morgan Stanley cut its estimates for the firm's December-quarter iPhone shipment after chip maker Foxconn2317.TW flagged production delay. By Shubham Batra and Johann M Cherian Dec 7 (Reuters) - U.S. stock indexes were set to open lower on Wednesday after warnings of a looming recession from major Wall Street bankers offset optimism around China relaxing its strict zero-COVID rules. Fears of a recession due to the U.S. Federal Reserve's aggressive rate hikes to curb inflation pulled the S&P 500 .SPX lower for a fourth straight session on Tuesday, with all major Wall Street indexes ending down 1%-2%.
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18105.0
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2022-12-07 00:00:00 UTC
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Dow Movers: AAPL, MRK
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-aapl-mrk
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nan
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nan
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In early trading on Wednesday, shares of Merck topped the list of the day's best performing Dow Jones Industrial Average components, trading up 0.8%. Year to date, Merck registers a 43.2% gain.
And the worst performing Dow component thus far on the day is Apple, trading down 1.3%. Apple is lower by about 20.6% looking at the year to date performance.
Two other components making moves today are Salesforce, trading down 1.2%, and Chevron, trading up 0.8% on the day.
VIDEO: Dow Movers: AAPL, MRK
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Dow Movers: AAPL, MRK The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Wednesday, shares of Merck topped the list of the day's best performing Dow Jones Industrial Average components, trading up 0.8%. And the worst performing Dow component thus far on the day is Apple, trading down 1.3%.
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VIDEO: Dow Movers: AAPL, MRK The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Wednesday, shares of Merck topped the list of the day's best performing Dow Jones Industrial Average components, trading up 0.8%. Year to date, Merck registers a 43.2% gain.
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VIDEO: Dow Movers: AAPL, MRK The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Wednesday, shares of Merck topped the list of the day's best performing Dow Jones Industrial Average components, trading up 0.8%. And the worst performing Dow component thus far on the day is Apple, trading down 1.3%.
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VIDEO: Dow Movers: AAPL, MRK The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Dow component thus far on the day is Apple, trading down 1.3%. Apple is lower by about 20.6% looking at the year to date performance.
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18106.0
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2022-12-07 00:00:00 UTC
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Global warning signs: Taiwan's exports slump more than expected
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AAPL
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https://www.nasdaq.com/articles/global-warning-signs%3A-taiwans-exports-slump-more-than-expected
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nan
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nan
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By Roger Tung
TAIPEI, Dec 7 (Reuters) - Taiwan's exports fell for the third straight month in November and more sharply than forecast due to the worsening state of the global economy and China's COVID-19 curbs, with inflation and interest rate rises weighing on demand across the world.
Exports dropped 13.1% by value last month from a year earlier to $36.13 billion, the lowest figure in 19 months and the sharpest fall in almost seven years, the Ministry of Finance said on Wednesday.
That was much worse than a forecast for a 6.7% contraction in a Reuters poll, and followed a 0.5% drop in October.
The ministry said global demand was slowing "more and more obviously", hit by the war in Ukraine, unabated global inflation pressures and interest rate increase cycles in major economies.
Ministry official Beatrice Tsai said China's COVID-19 controls had also hit demand for electronic components, pointing to Apple's warning last month on lower iPhone 14 Pro and iPhone Pro Max shipments than previously anticipated due to pandemic curbs at a major assembly plant in China's Zhengzhou.
Taiwan's total exports of electronics components in November fell 4.9% to $15.15 billion, the first drop in three-and-a-half years, with semiconductor exports down 3.4% from a year earlier.
Firms such as TSMC 2330.TW, TSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O and other global tech giants, as well as providers of chips for auto companies and lower-end consumer goods.
Taiwan's exports to China, the island's largest trading partner, plunged an annual 20.9% to $13.56 billion in November, after a 9.2% drop in October.
Data earlier on Wednesday showed China's exports and imports shrank at their steepest pace in at least 2-1/2 years in November, as feeble global and domestic demand, COVID-led production disruptions and a property slump at home piled pressure on the world's second-biggest economy.
Tony Phoo, senior economist for northeast Asia at Standard Chartered Bank, said weakening demand may continue until the first and second quarters of next year for Taiwan.
"If it continues into the second half of next year, Taiwan's officially estimated economic growth rate of more than 2% next year will be under pressure," he said.
Taiwan's finance ministry said risks ahead included uncertainty around China's coronavirus policy and the U.S.-China tech war, adding that December exports could contract in a range of 8% to 12% from a year earlier.
The ministry's Tsai said fourth quarter exports -traditionally a busy season ahead of Christmas - could drop more than 7% year-on-year.
November's exports to the United States were down 11.3%, compared with a 3.1% expansion recorded the previous month.
Taiwan's November imports, often seen as a leading indicator of re-exports of finished products, fell 8.6% to $32.7 billion, compared with economists' expectations of a 0.6% rise and after an increase of 8.2% in October.
Graphic on Taiwan's exports to Chinahttps://tmsnrt.rs/3P4gSUB
(Reporting by Roger Tung; Additional reporting by Jeanny Kao, Sarah Wu and Fabian Hamacher; Writing by Ben Blanchard; Editing by Robert Birsel and Kim Coghill)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Firms such as TSMC 2330.TW, TSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O and other global tech giants, as well as providers of chips for auto companies and lower-end consumer goods. By Roger Tung TAIPEI, Dec 7 (Reuters) - Taiwan's exports fell for the third straight month in November and more sharply than forecast due to the worsening state of the global economy and China's COVID-19 curbs, with inflation and interest rate rises weighing on demand across the world. Data earlier on Wednesday showed China's exports and imports shrank at their steepest pace in at least 2-1/2 years in November, as feeble global and domestic demand, COVID-led production disruptions and a property slump at home piled pressure on the world's second-biggest economy.
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Firms such as TSMC 2330.TW, TSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O and other global tech giants, as well as providers of chips for auto companies and lower-end consumer goods. By Roger Tung TAIPEI, Dec 7 (Reuters) - Taiwan's exports fell for the third straight month in November and more sharply than forecast due to the worsening state of the global economy and China's COVID-19 curbs, with inflation and interest rate rises weighing on demand across the world. Ministry official Beatrice Tsai said China's COVID-19 controls had also hit demand for electronic components, pointing to Apple's warning last month on lower iPhone 14 Pro and iPhone Pro Max shipments than previously anticipated due to pandemic curbs at a major assembly plant in China's Zhengzhou.
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Firms such as TSMC 2330.TW, TSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O and other global tech giants, as well as providers of chips for auto companies and lower-end consumer goods. By Roger Tung TAIPEI, Dec 7 (Reuters) - Taiwan's exports fell for the third straight month in November and more sharply than forecast due to the worsening state of the global economy and China's COVID-19 curbs, with inflation and interest rate rises weighing on demand across the world. Taiwan's total exports of electronics components in November fell 4.9% to $15.15 billion, the first drop in three-and-a-half years, with semiconductor exports down 3.4% from a year earlier.
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Firms such as TSMC 2330.TW, TSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O and other global tech giants, as well as providers of chips for auto companies and lower-end consumer goods. By Roger Tung TAIPEI, Dec 7 (Reuters) - Taiwan's exports fell for the third straight month in November and more sharply than forecast due to the worsening state of the global economy and China's COVID-19 curbs, with inflation and interest rate rises weighing on demand across the world. Exports dropped 13.1% by value last month from a year earlier to $36.13 billion, the lowest figure in 19 months and the sharpest fall in almost seven years, the Ministry of Finance said on Wednesday.
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18107.0
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2022-12-07 00:00:00 UTC
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US STOCKS-Futures fall on growing fears of recession
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https://www.nasdaq.com/articles/us-stocks-futures-fall-on-growing-fears-of-recession
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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 0.11%, S&P 0.21%, Nasdaq 0.30%
Dec 7 (Reuters) - U.S. stock index futures edged lower on Wednesday after warnings of a looming recession from major Wall Street bankers offset optimism around the easing of China's strict zero-COVID rules.
Top executives at Goldman Sachs Group Inc GS.N, JPMorgan Chase & Co JPM.N and Bank of America Corp BAC.N said on Tuesday that inflation would erode consumer spending power and a mild to more pronounced recession was likely ahead.
Fears of a recession due to the U.S. Federal Reserve's aggressive rate hikes to curb inflation pulled the S&P 500 .SPX lower for a fourth straight session on Tuesday, with all major Wall Street indexes closing down 1-2%.
Investors 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 the rates peaking in May 2023 at 4.97%. FEDWATCH
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.
At 6:18 a.m. ET, Dow e-minis 1YMcv1 were down 36 points, or 0.11%, S&P 500 e-minis EScv1 were down 8.25 points, or 0.21%, and Nasdaq 100 e-minis NQcv1 were down 34.75 points, or 0.3%.
Mega-cap technology and other growth stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O, Meta Platforms Inc META.O, Nvidia Corp NVDA.O and Tesla Inc TSLA.O dropped between 0.4% and 1.9% in premarket trading.
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 snapping a three-year winning streak and sinking 17.3% so far in 2022.
Elsewhere, China announced the most sweeping changes to its tough anti-COVID regime that included allowing infected people with mild or no symptoms to quarantine at home and dropping testing for domestic traveling, following protests against COVID controls.
However, U.S.-listed Chinese stocks such as NetEase Inc NTES.O, Alibaba Group Holding Ltd BABA.K and JD.com IncJD.O tumbled between 3.4% and 5.7% on profit booking after China's trade shrank the steepest in 2-1/2 years in November.
Among other stocks, GameStop Corp GME.N jumped 1.1% ahead of its third-quarter results where it is expected to report a 4.5% rise in revenue.
Boeing Co BA.N was down 0.8% after U.S. lawmakers declined to extend an annual defense bill deadline that would impose a new safety standard for modern cockpit alerts for two new versions of the aerospace company's best-selling 737 MAX aircraft.
(Reporting by Shubham Batra and Ankika Biswas in Bengaluru; Editing by 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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Mega-cap technology and other growth stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O, Meta Platforms Inc META.O, Nvidia Corp NVDA.O and Tesla Inc TSLA.O dropped between 0.4% and 1.9% in premarket trading. Fears of a recession due to the U.S. Federal Reserve's aggressive rate hikes to curb inflation pulled the S&P 500 .SPX lower for a fourth straight session on Tuesday, with all major Wall Street indexes closing down 1-2%. Elsewhere, China announced the most sweeping changes to its tough anti-COVID regime that included allowing infected people with mild or no symptoms to quarantine at home and dropping testing for domestic traveling, following protests against COVID controls.
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Mega-cap technology and other growth stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O, Meta Platforms Inc META.O, Nvidia Corp NVDA.O and Tesla Inc TSLA.O dropped between 0.4% and 1.9% in premarket trading. Futures down: Dow 0.11%, S&P 0.21%, Nasdaq 0.30% Dec 7 (Reuters) - U.S. stock index futures edged lower on Wednesday after warnings of a looming recession from major Wall Street bankers offset optimism around the easing of China's strict zero-COVID rules. Fears of a recession due to the U.S. Federal Reserve's aggressive rate hikes to curb inflation pulled the S&P 500 .SPX lower for a fourth straight session on Tuesday, with all major Wall Street indexes closing down 1-2%.
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Mega-cap technology and other growth stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O, Meta Platforms Inc META.O, Nvidia Corp NVDA.O and Tesla Inc TSLA.O dropped between 0.4% and 1.9% in premarket trading. Futures down: Dow 0.11%, S&P 0.21%, Nasdaq 0.30% Dec 7 (Reuters) - U.S. stock index futures edged lower on Wednesday after warnings of a looming recession from major Wall Street bankers offset optimism around the easing of China's strict zero-COVID rules. Top executives at Goldman Sachs Group Inc GS.N, JPMorgan Chase & Co JPM.N and Bank of America Corp BAC.N said on Tuesday that inflation would erode consumer spending power and a mild to more pronounced recession was likely ahead.
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Mega-cap technology and other growth stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O, Meta Platforms Inc META.O, Nvidia Corp NVDA.O and Tesla Inc TSLA.O dropped between 0.4% and 1.9% 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. Fears of a recession due to the U.S. Federal Reserve's aggressive rate hikes to curb inflation pulled the S&P 500 .SPX lower for a fourth straight session on Tuesday, with all major Wall Street indexes closing down 1-2%.
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18108.0
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2022-12-07 00:00:00 UTC
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Should Vanguard S&P 500 Growth ETF (VOOG) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-sp-500-growth-etf-voog-be-on-your-investing-radar-4
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Looking for broad exposure to the Large Cap Growth segment of the US equity market? You should consider the Vanguard S&P 500 Growth ETF (VOOG), a passively managed exchange traded fund launched on 09/09/2010.
The fund is sponsored by Vanguard. It has amassed assets over $6.50 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
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
While 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. Also, growth stocks are a type of equity that carries more risk compared to others. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.10%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.84%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 45.40% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 14.50% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 53.31% of total assets under management.
Performance and Risk
VOOG seeks to match the performance of the S&P 500 Growth Index before fees and expenses. The S&P 500 Growth Index measures the performance of large-capitalization growth stocks.
The ETF has lost about -27.22% so far this year and is down about -24.05% in the last one year (as of 12/07/2022). In the past 52-week period, it has traded between $204.56 and $305.94.
The ETF has a beta of 1.05 and standard deviation of 28.43% for the trailing three-year period, making it a medium risk choice in the space. With about 242 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard S&P 500 Growth ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, VOOG is a reasonable option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $70.07 billion in assets, Invesco QQQ has $155.12 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Vanguard S&P 500 Growth ETF (VOOG): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
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Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 14.50% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard S&P 500 Growth ETF (VOOG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $6.50 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Click to get this free report Vanguard S&P 500 Growth ETF (VOOG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 14.50% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Costs When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
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Click to get this free report Vanguard S&P 500 Growth ETF (VOOG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 14.50% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Alternatives Vanguard S&P 500 Growth ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 14.50% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard S&P 500 Growth ETF (VOOG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
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18109.0
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2022-12-07 00:00:00 UTC
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SPY, SMN: Big ETF Outflows
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https://www.nasdaq.com/articles/spy-smn%3A-big-etf-outflows
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the SPDR S&P 500 ETF Trust, where 18,600,000 units were destroyed, or a 2.0% decrease week over week. Among the largest underlying components of SPY, in morning trading today Apple is down about 0.9%, and Microsoft is lower by about 0.4%.
And on a percentage change basis, the ETF with the biggest outflow was the ProShares UltraShort Basic Materials, which lost 100,000 of its units, representing a 26.0% decline in outstanding units compared to the week prior.
VIDEO: SPY, SMN: Big ETF Outflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of SPY, in morning trading today Apple is down about 0.9%, and Microsoft is lower by about 0.4%. And on a percentage change basis, the ETF with the biggest outflow was the ProShares UltraShort Basic Materials, which lost 100,000 of its units, representing a 26.0% decline in outstanding units compared to the week prior. VIDEO: SPY, SMN: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the SPDR S&P 500 ETF Trust, where 18,600,000 units were destroyed, or a 2.0% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the ProShares UltraShort Basic Materials, which lost 100,000 of its units, representing a 26.0% decline in outstanding units compared to the week prior. VIDEO: SPY, SMN: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the SPDR S&P 500 ETF Trust, where 18,600,000 units were destroyed, or a 2.0% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the ProShares UltraShort Basic Materials, which lost 100,000 of its units, representing a 26.0% decline in outstanding units compared to the week prior. VIDEO: SPY, SMN: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the SPDR S&P 500 ETF Trust, where 18,600,000 units were destroyed, or a 2.0% decrease week over week. Among the largest underlying components of SPY, in morning trading today Apple is down about 0.9%, and Microsoft is lower by about 0.4%. And on a percentage change basis, the ETF with the biggest outflow was the ProShares UltraShort Basic Materials, which lost 100,000 of its units, representing a 26.0% decline in outstanding units compared to the week prior.
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18110.0
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2022-12-07 00:00:00 UTC
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1 Monster Opportunity in the Global Chip Shortage
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https://www.nasdaq.com/articles/1-monster-opportunity-in-the-global-chip-shortage-9
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The semiconductor industry has both prospered and reeled amid a global chip shortage. While its products command a premium price, the lack of chips left the industry unprepared to meet demand in many areas. Later, lower consumer spending eased the shortage in some parts of the industry, leading to significant stock declines.
However, chip production lags remain in key sectors of the economy, such as automotive. Moreover, any slowdown in spending will likely give way to secular growth trends, particularly for a semiconductor stock like Qualcomm (NASDAQ: QCOM).
Qualcomm's enduring strength
Qualcomm has long led the smartphone chipset industry. Historically, Qualcomm chips powered all of the latest cellular and, later, smartphones sold across the world. This has continued in the 5G era as the company led the way in producing chips for that latest technology.
This market lead should pay off for Qualcomm as Data Bridge Market Research forecasts a compound annual growth rate (CAGR) of 49% for the 5G smartphone chipset industry through 2028. That would take the industry's size to more than $2.5 trillion.
The company derived 66% of its revenue, or $25 billion, from handsets in fiscal 2022 (which ended Sept. 25), a tiny fraction of that industry CAGR. And although Qualcomm forecasted negative handset sales growth for the upcoming quarter, the industry's growth will likely make any slowdown temporary.
Its moves into other industries
Additionally, Qualcomm continues to look toward the future. The company wants to avoid making the same mistake Microsoft made when the smartphone invention blindsided its PC operating system business. To this end, it has moved into areas such as the Internet of Things (IoT) and automotive computing as some functionality transitions away from the smartphone. While it cannot guarantee success, its new technologies hold significant growth potential.
Qualcomm has gone into the metaverse, providing the chips that power Meta Platforms' Oculus VR headsets. The company also launched its $100 million Snapdragon Fund. It sponsors research in extended reality (XR) technologies, a move that could potentially make it a leader in a niche of XR.
These and other IoT technologies accounted for about 18% of company revenue in fiscal 2022. That is well above automotive at 4% of revenue, though Qualcomm's future in automotive appears promising.
It hosted its Automotive Investor Day in September, an event that promoted Qualcomm's Snapdragon Digital Chassis. The chassis integrates telematics and connectivity through its digital cockpit, which can manage navigation and onboard entertainment. The drive platform will also incorporate driver assistance and autonomous driving functionality, which, over time, can significantly increase growth in the automotive segment.
The signs of hope amid challenges
Nonetheless, such additions are primarily initiatives of the future, and the stock has plummeted as investors focus on current challenges. In addition, the aforementioned slowdown has hurt Qualcomm as cash-strapped consumers delay smartphone upgrades.
Moreover, investors seem unimpressed with Meta's vision of the metaverse, a sentiment that could lead to lower VR headset sales. Additionally, around 65% of Qualcomm's sales came from China in fiscal 2022. Lockdowns in that country and deteriorating U.S.-China relations could threaten the company.
Consequently, Qualcomm stock has fallen by about one-third from its 52-week high, taking its P/E ratio to 11. That takes its earnings multiple well under that of Apple, Nvidia, and a key Qualcomm manufacturer, Taiwan Semiconductor.
Consider Qualcomm
It may be time to buy the dip in Qualcomm stock at current levels. Indeed, a slowdown in consumer spending and issues related to China do not seem to bode well for the company. Also, Qualcomm has yet to establish a clear path to success with its IoT or automotive applications.
However, the 11 P/E ratio likely prices in its current challenges. Additionally, secular growth trends in smartphones and its emerging IoT and automotive technologies could leave investors wishing they had bought Qualcomm at such a low valuation.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Will Healy has positions in Qualcomm. The Motley Fool has positions in and recommends Apple, Meta Platforms, Microsoft, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company wants to avoid making the same mistake Microsoft made when the smartphone invention blindsided its PC operating system business. Additionally, secular growth trends in smartphones and its emerging IoT and automotive technologies could leave investors wishing they had bought Qualcomm at such a low valuation. The Motley Fool has positions in and recommends Apple, Meta Platforms, Microsoft, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing.
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This market lead should pay off for Qualcomm as Data Bridge Market Research forecasts a compound annual growth rate (CAGR) of 49% for the 5G smartphone chipset industry through 2028. The Motley Fool has positions in and recommends Apple, Meta Platforms, Microsoft, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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Qualcomm's enduring strength Qualcomm has long led the smartphone chipset industry. Consider Qualcomm It may be time to buy the dip in Qualcomm stock at current levels. Additionally, secular growth trends in smartphones and its emerging IoT and automotive technologies could leave investors wishing they had bought Qualcomm at such a low valuation.
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Its moves into other industries Additionally, Qualcomm continues to look toward the future. While it cannot guarantee success, its new technologies hold significant growth potential. The Motley Fool has positions in and recommends Apple, Meta Platforms, Microsoft, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing.
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18111.0
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2022-12-06 00:00:00 UTC
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Apple is sued by women who say AirTag lets stalkers track victims
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https://www.nasdaq.com/articles/apple-is-sued-by-women-who-say-airtag-lets-stalkers-track-victims
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By Jonathan Stempel
Dec 6 (Reuters) - Apple Inc AAPL.O has been sued by two women who said its AirTag devices have made it easier for their former partners and other stalkers to track down victims.
In a proposed class action filed on Monday in San Francisco federal court, the women said Apple has been unable to protect people from unwanted trafficking through AirTag since launching what it called the "stalker proof" device in April 2021.
Starting at $29, AirTags are 1-1/4 inches (3.2 cm) in diameter, and intended to be slipped into or attached to keys, wallets, backpacks and other items so people can find them when they are lost.
But privacy experts and law enforcement have said some people use Airtags for criminal or malicious purposes.
The plaintiffs called AirTag "the weapon of choice of stalkers and abusers," and said it has been linked to murders this year of women from Akron, Ohio and Indianapolis.
Monday's lawsuit seeks unspecified damages for U.S. owners of iOS or Android-based devices who were tracked by AirTag or are "at risk" of being stalked because of Apple's alleged negligence.
Apple did not immediately respond on Tuesday to requests for comment.
The Cupertino, California-based company has acknowledged that "bad actors" have tried misusing Airtags.
In February, Apple announced planned upgrades to make it easier to find the devices, and warn users faster that unknown AirTags might be "traveling with them."
One plaintiff in Monday's lawsuit, Lauren Hughes, said her former boyfriend learned where she had moved to avoid him after placing an AirTag in her car's wheel well.
She said he later posted a photo online of a taco truck from her new neighborhood, and included a winking emoji with the hashtag "#airt2.0."
The other plaintiff, Jane Doe, said her estranged husband tracked her after putting an AirTag in their child's backpack.
The case is Hughes et al v. Apple Inc, U.S. District Court, Northern District of California, No. 22-07668.
(Reporting by Jonathan Stempel in New York; Editing by Chizu Nomiyama)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.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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By Jonathan Stempel Dec 6 (Reuters) - Apple Inc AAPL.O has been sued by two women who said its AirTag devices have made it easier for their former partners and other stalkers to track down victims. In a proposed class action filed on Monday in San Francisco federal court, the women said Apple has been unable to protect people from unwanted trafficking through AirTag since launching what it called the "stalker proof" device in April 2021. Monday's lawsuit seeks unspecified damages for U.S. owners of iOS or Android-based devices who were tracked by AirTag or are "at risk" of being stalked because of Apple's alleged negligence.
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By Jonathan Stempel Dec 6 (Reuters) - Apple Inc AAPL.O has been sued by two women who said its AirTag devices have made it easier for their former partners and other stalkers to track down victims. The plaintiffs called AirTag "the weapon of choice of stalkers and abusers," and said it has been linked to murders this year of women from Akron, Ohio and Indianapolis. The case is Hughes et al v. Apple Inc, U.S. District Court, Northern District of California, No.
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By Jonathan Stempel Dec 6 (Reuters) - Apple Inc AAPL.O has been sued by two women who said its AirTag devices have made it easier for their former partners and other stalkers to track down victims. In a proposed class action filed on Monday in San Francisco federal court, the women said Apple has been unable to protect people from unwanted trafficking through AirTag since launching what it called the "stalker proof" device in April 2021. Monday's lawsuit seeks unspecified damages for U.S. owners of iOS or Android-based devices who were tracked by AirTag or are "at risk" of being stalked because of Apple's alleged negligence.
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By Jonathan Stempel Dec 6 (Reuters) - Apple Inc AAPL.O has been sued by two women who said its AirTag devices have made it easier for their former partners and other stalkers to track down victims. In a proposed class action filed on Monday in San Francisco federal court, the women said Apple has been unable to protect people from unwanted trafficking through AirTag since launching what it called the "stalker proof" device in April 2021. Starting at $29, AirTags are 1-1/4 inches (3.2 cm) in diameter, and intended to be slipped into or attached to keys, wallets, backpacks and other items so people can find them when they are lost.
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18112.0
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2022-12-06 00:00:00 UTC
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Why Meta Platforms Stock Dove Today
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AAPL
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https://www.nasdaq.com/articles/why-meta-platforms-stock-dove-today
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nan
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nan
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What happened
Shares of Meta Platforms (NASDAQ: META) took a fall today as multiple news items highlighted challenges the company is facing and seemed to remind investors of the company's reputational risk.
The most important of those issues today was a new threat from the EU that could restrict targeted ads on the continent. Additionally, the company is facing a new threat from Congress, and it was even chastised by its own oversight board.
Ths stock closed down 6.8% on the news.
So what
EU privacy regulators ruled today that social media platforms like Facebook and Instagram shouldn't be able to require users to accept targeted ads through its terms of service.
Meta will be able to appeal the decision but could face significant fines if the ruling is upheld. The company just lost some of its targeting ability when Apple implemented its new ad-tracking transparency protocol on Apple's mobile operating system (iOS) last year, and the EU's decision could deliver a similar impact to Facebook and Instagram users in Europe on computers and Android devices.
Separately, Meta posted a response to a bill in Congress, the Journalism Competition and Preservation Act., which could require social media platforms like Meta to pay publishers for content on its platform. Meta said that it would have to consider removing news content from its feed if Congress passed the bill.
Finally, Facebook's own oversight board said the company needs to revamp its practice of exempting high-profile celebrities from its content rules. The report is likely to stoke further criticism of Meta for treating users poorly and not being a good steward of personal data.
Now what
Of the three issues above, only the EU ruling has the potential to have a direct bottom-line impact on Meta right now, but the bad press is also likely to remind many why Facebook's brand reputation has soured since the Cambridge Analytica scandal, which led many to dismiss the company as toxic.
That Meta's own oversight board is calling it out seems problematic, and the pushback against Congress and small newspapers is unlikely to be well received.
While Meta has demonstrated its ability to make money even as its reputation has suffered, its image remains a risk, especially in an increasingly competitive social media industry.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jeremy Bowman has positions in Meta Platforms. The Motley Fool has positions in and recommends Apple and Meta Platforms. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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So what EU privacy regulators ruled today that social media platforms like Facebook and Instagram shouldn't be able to require users to accept targeted ads through its terms of service. Now what Of the three issues above, only the EU ruling has the potential to have a direct bottom-line impact on Meta right now, but the bad press is also likely to remind many why Facebook's brand reputation has soured since the Cambridge Analytica scandal, which led many to dismiss the company as toxic. While Meta has demonstrated its ability to make money even as its reputation has suffered, its image remains a risk, especially in an increasingly competitive social media industry.
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So what EU privacy regulators ruled today that social media platforms like Facebook and Instagram shouldn't be able to require users to accept targeted ads through its terms of service. Separately, Meta posted a response to a bill in Congress, the Journalism Competition and Preservation Act., which could require social media platforms like Meta to pay publishers for content on its platform. The Motley Fool has positions in and recommends Apple and Meta Platforms.
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What happened Shares of Meta Platforms (NASDAQ: META) took a fall today as multiple news items highlighted challenges the company is facing and seemed to remind investors of the company's reputational risk. Separately, Meta posted a response to a bill in Congress, the Journalism Competition and Preservation Act., which could require social media platforms like Meta to pay publishers for content on its platform. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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What happened Shares of Meta Platforms (NASDAQ: META) took a fall today as multiple news items highlighted challenges the company is facing and seemed to remind investors of the company's reputational risk. That's right -- they think these 10 stocks are even better buys. The Motley Fool has positions in and recommends Apple and Meta Platforms.
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18113.0
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2022-12-06 00:00:00 UTC
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US STOCKS-S&P posts 4th straight decline as recession talk weighs on Wall Street
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-posts-4th-straight-decline-as-recession-talk-weighs-on-wall-street
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nan
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nan
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By David French
Dec 6 (Reuters) - Wall Street ended lower on Tuesday, with the S&P 500 extending its losing streak to four sessions, as skittish investors fretted over Federal Reserve rate hikes and further talk of a looming recession.
Meta Platforms Inc META.O dragged down markets, with its shares sliding 6.8% following reports that European Union regulators have ruled the company should not require users to agree to personalized ads based on their digital activity.
However, technology names generally suffered as investors applied caution toward high-growth companies whose performance would be sluggish in a challenging economy. Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O fell between 2.5% and 3%, while the tech-heavy Nasdaq was pulled lower for a third straight session.
Most of the 11 major S&P sectors declined, with energy and communications services .SPLRCL joining technology .SPLRCT as leading laggards. Utilities .SPLRCU, a defensive sector often preferred during times of economic uncertainty, was the only exception, gaining 0.7%.
Future economic growth prospects were in focus on Tuesday following comments from financial titans pointing toward uncertain times ahead.
Bank of America Corp's BAC.N chief executive predicted three quarters of mild negative growth next year, while JPMorgan Chase and Co's JPM.N CEO Jamie Dimon said inflation will erode consumer spending power and that a mild to more pronounced recession was likely ahead.
Their comments came on the heels of recent views from BlackRock and others that believe the U.S. Federal Reserve's aggressive monetary tightening to combat stubbornly high price rises could induce an economic downturn in 2023.
"The market is very reactive right now," said David Sadkin, president at Bel Air Investment Advisors.
He noted that, while markets traditionally reflect the future, right now they are moving up and down based on the latest headlines.
Fears about economic growth come amid a re-evaluation by traders of what path future interest rate hikes will take, following strong data on jobs and the services sector in recent days.
Money market bets are pointing to a 91% chance that the U.S. central bank might raise rates by 50 basis points at its Dec. 13-14 policy meeting, with rates expected to peak at 4.98% in May 2023, up from 4.92% estimated on Monday before service-sector data was released. FEDWATCH
The S&P 500 rallied 13.8% in October and November on hopes of smaller rate hikes and better-than-expected earnings, although such Fed expectations could be undermined by further data releases, including producer prices due out on Friday.
"The market got ahead of itself at the end of November, but then we got some good economic data, so people are re-evaluating what the Fed is going to do next week," said Bel Air's Sadkin.
The Dow Jones Industrial Average .DJI fell 350.76 points, or 1.03%, to close at 33,596.34, the S&P 500 .SPX lost 57.58 points, or 1.44%, to finish at 3,941.26 and the Nasdaq Composite .IXIC dropped 225.05 points, or 2%, to end on 11,014.89.
Jitters on the direction of global growth have also weighed on oil prices, with U.S. crude CLc1 slipping to levels last seen in January, before Russia's invasion of Ukraine disrupted supply markets. The energy sector .SPNY fell 2.7% on Tuesday.
Banks are among the most sensitive stocks to an economic downturn, as they potentially face negative effects from bad loans or slowing loan growth. The S&P banks index .SPXBK slipped 1.4% to its lowest close since Oct. 21.
Volume on U.S. exchanges was 11.01 billion shares, in line with the average for the full session over the last 20 trading days.
The S&P 500 posted three new 52-week highs and nine new lows; the Nasdaq Composite recorded 52 new highs and 262 new lows.
(Reporting by Devik Jain, Ankika Biswas and Johann M Cherian in Bengaluru and David French in New York; Editing by Vinay Dwivedi, Shounak Dasgupta and Lisa Shumaker)
((Devik.Jain@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, Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O fell between 2.5% and 3%, while the tech-heavy Nasdaq was pulled lower for a third straight session. By David French Dec 6 (Reuters) - Wall Street ended lower on Tuesday, with the S&P 500 extending its losing streak to four sessions, as skittish investors fretted over Federal Reserve rate hikes and further talk of a looming recession. Meta Platforms Inc META.O dragged down markets, with its shares sliding 6.8% following reports that European Union regulators have ruled the company should not require users to agree to personalized ads based on their digital activity.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O fell between 2.5% and 3%, while the tech-heavy Nasdaq was pulled lower for a third straight session. By David French Dec 6 (Reuters) - Wall Street ended lower on Tuesday, with the S&P 500 extending its losing streak to four sessions, as skittish investors fretted over Federal Reserve rate hikes and further talk of a looming recession. Fears about economic growth come amid a re-evaluation by traders of what path future interest rate hikes will take, following strong data on jobs and the services sector in recent days.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O fell between 2.5% and 3%, while the tech-heavy Nasdaq was pulled lower for a third straight session. Fears about economic growth come amid a re-evaluation by traders of what path future interest rate hikes will take, following strong data on jobs and the services sector in recent days. Money market bets are pointing to a 91% chance that the U.S. central bank might raise rates by 50 basis points at its Dec. 13-14 policy meeting, with rates expected to peak at 4.98% in May 2023, up from 4.92% estimated on Monday before service-sector data was released.
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Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O fell between 2.5% and 3%, while the tech-heavy Nasdaq was pulled lower for a third straight session. Future economic growth prospects were in focus on Tuesday following comments from financial titans pointing toward uncertain times ahead. "The market got ahead of itself at the end of November, but then we got some good economic data, so people are re-evaluating what the Fed is going to do next week," said Bel Air's Sadkin.
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18114.0
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2022-12-06 00:00:00 UTC
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TSMC expects $10 billion in annual revenue from Arizona fabs
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AAPL
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https://www.nasdaq.com/articles/tsmc-expects-%2410-billion-in-annual-revenue-from-arizona-fabs
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nan
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nan
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By Jane Lanhee Lee
PHOENIX, Dec 6 (Reuters) - Taiwanese chipmaker TSMC 2330.TW on Tuesday estimated annual revenue of $10 billion when its two planned chips fabrication plants open in Arizona.
TSMC said Tuesday it was more than tripling its planned investment in the factories to $40 billion. The first fab will be operational by 2024 while the second facility nearby will produce advanced chips by 2026. U.S. President Joe Biden and others, including the CEOs of major TSMC customers, are attending a "tool-in" ceremonyfor the symbolic moving of the first equipment onto the shop floor of the new $12 billion facility.
"When completed with both fabs, we will manufacture over 600,000 wafers a year, representing $10 billion in yearly revenue and with our customers product sales over $40 billion a year," said TSMC Chief Executive Mark Liu.
The projects will result in 31,000 construction jobs and "create an additional 13,000 high pay high tech jobs including the 4,500 direct TSMC employees," Liu added.
Apple IncAAPL.O, Nvidia CorpNVDA.O, and Advanced Micro Devices IncAMD.O, all major TSMC customers, said they expected their chips to be made in the new Arizona plants.
"We work with TSMC to manufacture the chips that help power our products all over the world. And we look forward to expanding this work in the years to come as TSMC forms new and deeper roots in America," said Apple CEO Tim Cook.
"AMD expects to be a big customer, of both fabs and we're committed to working closely with TSMC and the entire ecosystem," said AMD CEO Lisa Su.
At least a dozen major cranes are still set up around the first factory which is dubbed Fab 21. The factory is in the northern part of Phoenix, surrounded by brown hills and empty land.
With the new TSMC factory in the backdrop with the flag and a drape reading "A Future Made in America Phoenix, AZ," TSMC executives led by founder Morris Chang, 91, along with CEOs of key machine suppliers and Apple, Nvidia and AMD, toasted the factory opening with sparkling wine.
(Reporting by Jane Lee; Writing by David Shepardson; Editing by Richard Chang)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple IncAAPL.O, Nvidia CorpNVDA.O, and Advanced Micro Devices IncAMD.O, all major TSMC customers, said they expected their chips to be made in the new Arizona plants. By Jane Lanhee Lee PHOENIX, Dec 6 (Reuters) - Taiwanese chipmaker TSMC 2330.TW on Tuesday estimated annual revenue of $10 billion when its two planned chips fabrication plants open in Arizona. U.S. President Joe Biden and others, including the CEOs of major TSMC customers, are attending a "tool-in" ceremonyfor the symbolic moving of the first equipment onto the shop floor of the new $12 billion facility.
|
Apple IncAAPL.O, Nvidia CorpNVDA.O, and Advanced Micro Devices IncAMD.O, all major TSMC customers, said they expected their chips to be made in the new Arizona plants. By Jane Lanhee Lee PHOENIX, Dec 6 (Reuters) - Taiwanese chipmaker TSMC 2330.TW on Tuesday estimated annual revenue of $10 billion when its two planned chips fabrication plants open in Arizona. "When completed with both fabs, we will manufacture over 600,000 wafers a year, representing $10 billion in yearly revenue and with our customers product sales over $40 billion a year," said TSMC Chief Executive Mark Liu.
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Apple IncAAPL.O, Nvidia CorpNVDA.O, and Advanced Micro Devices IncAMD.O, all major TSMC customers, said they expected their chips to be made in the new Arizona plants. By Jane Lanhee Lee PHOENIX, Dec 6 (Reuters) - Taiwanese chipmaker TSMC 2330.TW on Tuesday estimated annual revenue of $10 billion when its two planned chips fabrication plants open in Arizona. "When completed with both fabs, we will manufacture over 600,000 wafers a year, representing $10 billion in yearly revenue and with our customers product sales over $40 billion a year," said TSMC Chief Executive Mark Liu.
|
Apple IncAAPL.O, Nvidia CorpNVDA.O, and Advanced Micro Devices IncAMD.O, all major TSMC customers, said they expected their chips to be made in the new Arizona plants. By Jane Lanhee Lee PHOENIX, Dec 6 (Reuters) - Taiwanese chipmaker TSMC 2330.TW on Tuesday estimated annual revenue of $10 billion when its two planned chips fabrication plants open in Arizona. "When completed with both fabs, we will manufacture over 600,000 wafers a year, representing $10 billion in yearly revenue and with our customers product sales over $40 billion a year," said TSMC Chief Executive Mark Liu.
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18115.0
|
2022-12-06 00:00:00 UTC
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After Hours Most Active for Dec 6, 2022 : FERG, AMZN, SMMT, AAPL, STOR, GOOGL, CSCO, ROSS, QQQ, PSPC, EOCW, BFAC
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-dec-6-2022-%3A-ferg-amzn-smmt-aapl-stor-googl-csco-ross-qqq-pspc
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -9.41 to 11,540.28. The total After hours volume is currently 72,459,419 shares traded.
The following are the most active stocks for the after hours session:
Ferguson plc (FERG) is -0.17 at $121.91, with 3,875,940 shares traded. As reported by Zacks, the current mean recommendation for FERG is in the "buy range".
Amazon.com, Inc. (AMZN) is +0.12 at $88.37, with 3,076,566 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Summit Therapeutics Inc. (SMMT) is -0.17 at $2.14, with 2,356,895 shares traded.
Apple Inc. (AAPL) is +0.08 at $142.99, with 2,113,223 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2023. The consensus EPS forecast is $1.5. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
STORE Capital Corporation (STOR) is +0.17 at $32.05, with 1,591,232 shares traded. STOR's current last sale is 99.77% of the target price of $32.125.
Alphabet Inc. (GOOGL) is +0.01 at $96.99, with 1,415,769 shares traded. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
Cisco Systems, Inc. (CSCO) is -0.02 at $48.57, with 1,410,736 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Jan 2023. The consensus EPS forecast is $0.76. CSCO's current last sale is 93.4% of the target price of $52.
Ross Acquisition Corp II (ROSS) is -0.005 at $10.04, with 1,350,000 shares traded.
Invesco QQQ Trust, Series 1 (QQQ) is +0.01 at $281.69, with 1,344,031 shares traded. This represents a 10.79% increase from its 52 Week Low.
Post Holdings Partnering Corporation (PSPC) is unchanged at $9.84, with 1,310,000 shares traded.
Elliott Opportunity II Corp. (EOCW) is unchanged at $9.99, with 1,200,000 shares traded.
Battery Future Acquisition Corp. (BFAC) is unchanged at $10.19, with 1,170,000 shares traded.
The views and 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 +0.08 at $142.99, with 2,113,223 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2023.
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Apple Inc. (AAPL) is +0.08 at $142.99, with 2,113,223 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2023.
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Apple Inc. (AAPL) is +0.08 at $142.99, with 2,113,223 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 72,459,419 shares traded.
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Apple Inc. (AAPL) is +0.08 at $142.99, with 2,113,223 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 -9.41 to 11,540.28.
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18116.0
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2022-12-06 00:00:00 UTC
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US STOCKS-Wall Street slumps on further recession talk, S&P posts 4th decline
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-slumps-on-further-recession-talk-sp-posts-4th-decline
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nan
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nan
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By David French
Dec 6 (Reuters) - Wall Street closed lower on Tuesday, with the S&P 500 declining for the fourth straight session, as skittish investors fretted over Federal Reserve rate hikes and further talk of a looming recession.
Among the biggest drags on the S&P was Meta Platforms Inc META.O, which slid following reports that European Union regulators have ruled the company should not require users to agree to personalized ads based on their digital activity.
However, technology names generally suffered as investors applied caution toward high-growth companies whose performance would be sluggish in a challenging economy. This hit Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O and sent the tech-heavy Nasdaq down for a third straight session.
Most of the 11 major S&P sectors were lower, with energy and communications services .SPLRCL joining technology .SPLRCT as leading laggards. Utilities .SPLRCU, a defensive sector often preferred during times of economic uncertainty, fared better.
Future economic growth prospects were in focus on Tuesday following comments from financial titans pointing toward uncertain times ahead.
Bank of America Corp's BAC.N chief executive predicted three quarters of mild negative growth next year, while JPMorgan Chase and Co's JPM.N CEO Jamie Dimon said inflation will erode consumer spending power and that a mild to more pronounced recession was likely ahead.
Their comments came on the heels of recent views from BlackRock and others that believe the U.S. Federal Reserve's aggressive monetary tightening to combat stubbornly high price rises could induce an economic downturn in 2023.
"The market is very reactive right now," said David Sadkin, president at Bel Air Investment Advisors.
He noted that, while markets traditionally reflect the future, right now they are moving up and down based on the latest headlines.
Fears about economic growth come amid a re-evaluation by traders of what path future interest rate hikes will take, following strong data on jobs and the services sector in recent days.
Money market bets are pointing to a 91% chance that the U.S. central bank might raise rates by 50 basis points at its Dec. 13-14 policy meeting, with rates expected to peak at 4.98% in May 2023, up from 4.92% estimated on Monday before service-sector data was released. FEDWATCH
The S&P 500 rallied 13.8% in October and November on hopes of smaller rate hikes and better-than-expected earnings, although the expectation for slower rate hikes could be undermined by further data releases, including producer prices due out on Friday.
"The market got ahead of itself at the end of November, but then we got some good economic data, so people are re-evaluating what the Fed is going to do next week," said Bel Air's Sadkin.
According to preliminary data, the S&P 500 .SPX lost 57.05 points, or 1.43%, to end at 3,941.79 points, while the Nasdaq Composite .IXIC lost 225.01 points, or 1.99%, to 11,014.93. The Dow Jones Industrial Average .DJI fell 347.49 points, or 1.02%, to 33,599.61.
Jitters on the direction of global growth have also weighed on oil prices, with U.S. crude CLc1 slipping to levels last seen in January, before Russia's invasion of Ukraine disrupted supply markets. The energy sector .SPNY fell on Tuesday.
Banks are among the most sensitive stocks to an economic downturn, as they potentially face negative effects from bad loans or slowing loan growth. The S&P banks index .SPXBK was down, with Bank of America a leading decliner.
Elsewhere, Mirati Therapeutics Inc MRTX.O slumped after the company reported disappointing early trial data on its experimental cancer drug adagrasib.
Textron Inc TXT.N climbed after the U.S. Army awarded the contract for its next-generation helicopter to the company's Bell unit.
(Reporting by Devik Jain, Ankika Biswas and Johann M Cherian in Bengaluru and David French in New York; Editing by Vinay Dwivedi, Shounak Dasgupta and Lisa Shumaker)
((Devik.Jain@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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This hit Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O and sent the tech-heavy Nasdaq down for a third straight session. By David French Dec 6 (Reuters) - Wall Street closed lower on Tuesday, with the S&P 500 declining for the fourth straight session, as skittish investors fretted over Federal Reserve rate hikes and further talk of a looming recession. Among the biggest drags on the S&P was Meta Platforms Inc META.O, which slid following reports that European Union regulators have ruled the company should not require users to agree to personalized ads based on their digital activity.
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This hit Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O and sent the tech-heavy Nasdaq down for a third straight session. By David French Dec 6 (Reuters) - Wall Street closed lower on Tuesday, with the S&P 500 declining for the fourth straight session, as skittish investors fretted over Federal Reserve rate hikes and further talk of a looming recession. According to preliminary data, the S&P 500 .SPX lost 57.05 points, or 1.43%, to end at 3,941.79 points, while the Nasdaq Composite .IXIC lost 225.01 points, or 1.99%, to 11,014.93.
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This hit Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O and sent the tech-heavy Nasdaq down for a third straight session. Fears about economic growth come amid a re-evaluation by traders of what path future interest rate hikes will take, following strong data on jobs and the services sector in recent days. Money market bets are pointing to a 91% chance that the U.S. central bank might raise rates by 50 basis points at its Dec. 13-14 policy meeting, with rates expected to peak at 4.98% in May 2023, up from 4.92% estimated on Monday before service-sector data was released.
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This hit Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O and sent the tech-heavy Nasdaq down for a third straight session. Fears about economic growth come amid a re-evaluation by traders of what path future interest rate hikes will take, following strong data on jobs and the services sector in recent days. The energy sector .SPNY fell on Tuesday.
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18117.0
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2022-12-06 00:00:00 UTC
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Why Apple, Salesforce, and Qualcomm Stocks Are Volatile Today
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AAPL
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https://www.nasdaq.com/articles/why-apple-salesforce-and-qualcomm-stocks-are-volatile-today
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nan
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nan
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What happened
It was another negative day for tech stocks today as investors began to worry again that the Federal Reserve's interest rate hikes could end up tipping the U.S. economy into a recession.
Those fears sent stocks lower yesterday and the pessimism continued into today after Morgan Stanley said that it's laying off 2% of its workforce and JPMorgan Chase's CEO said that inflation could end up causing a recession.
As a result, the S&P 500 shed 1.8% and the tech-heavy Nasdaq Composite fell 2.3%. All of this pushed Apple (NASDAQ: AAPL) down by 2.7%, caused Salesforce (NYSE: CRM) to initially drop by than 2.2% today before regaining some of its losses by mid-afternoon, and made Qualcomm's (NASDAQ: QCOM) stock slide 3% as of 3:08 p.m. ET.
So what
Last week investors had been cautiously optimistic that the Fed wouldn't accidentally spur a recession after Federal Reserve Chairman Jerome Powell said, "...it makes sense to moderate the pace of our rate increases as we approach the level of restraint that will be sufficient to bring inflation down."
Image source: Getty Images.
Powell added, "The time for moderating the pace of rate increases may come as soon as the December meeting."
That boosted sentiment in the market temporarily, but over the past couple of days, investors began to process the rest of Powell's comments. Specifically, the Fed may need to raise the "terminal rate" -- the peak at which the Fed stops raising rates -- and Powell said that it may be "somewhat higher" than initially thought.
The Fed is meeting next week to decide how much to raise to raise interest rates again. Most economists are expecting a 50-basis-point increase.
A higher terminal rate spooked investors over the past couple of days and those fears were heightened after Morgan Stanley said it will cut about 2% of its workforce today, equal to about 1,600 jobs.
Additionally, investors were processing comments from JPMorgan Chase's CEO Jamie Dimon, who thinks that inflation and rising interest rates will push the economy into a recession next year.
Apple, Salesforce, and Qualcomm investors are likely reacting to all of this news today because any prolonged slowdown in the economy would cause pressure on their businesses.
Apple is already grappling with supply chain issues with some of its iPhone manufacturing in China due to strict zero-COVID policies.
And Salesforce's stock has been reeling after the company announced last week that its co-CEO is stepping down and after Slack's CEO said yesterday that he's leaving his position. Slack was purchased by Salesforce last year.
Additionally, Qualcomm investors have been trying to gauge where the company is headed after it reported fiscal fourth-quarter results last month that were mostly in line with expectations, but management issued first-quarter guidance that disappointed investors.
Now what
While it's not surprising to see Apple, Salesforce, and Qualcomm falling on recession fears today, it's worth mentioning that these stocks will likely have to weather some additional volatility as investors try to figure out what's happening with the economy.
What investors shouldn't be doing right now is panic-selling. Instead, one proactive measure you can take right now is to revisit your initial reasons for buying Apple, Salesforce, and Qualcomm and see if the investment thesis is still intact.
It can be easy to follow the investing crowd at the moment, but taking some time to step back and evaluate your investment strategy should give some much-needed clarity.
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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Chris Neiger has positions in Apple. The Motley Fool has positions in and recommends Apple, JPMorgan Chase, Qualcomm, and Salesforce. 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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All of this pushed Apple (NASDAQ: AAPL) down by 2.7%, caused Salesforce (NYSE: CRM) to initially drop by than 2.2% today before regaining some of its losses by mid-afternoon, and made Qualcomm's (NASDAQ: QCOM) stock slide 3% as of 3:08 p.m. What happened It was another negative day for tech stocks today as investors began to worry again that the Federal Reserve's interest rate hikes could end up tipping the U.S. economy into a recession. So what Last week investors had been cautiously optimistic that the Fed wouldn't accidentally spur a recession after Federal Reserve Chairman Jerome Powell said, "...it makes sense to moderate the pace of our rate increases as we approach the level of restraint that will be sufficient to bring inflation down."
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All of this pushed Apple (NASDAQ: AAPL) down by 2.7%, caused Salesforce (NYSE: CRM) to initially drop by than 2.2% today before regaining some of its losses by mid-afternoon, and made Qualcomm's (NASDAQ: QCOM) stock slide 3% as of 3:08 p.m. A higher terminal rate spooked investors over the past couple of days and those fears were heightened after Morgan Stanley said it will cut about 2% of its workforce today, equal to about 1,600 jobs. Additionally, investors were processing comments from JPMorgan Chase's CEO Jamie Dimon, who thinks that inflation and rising interest rates will push the economy into a recession next year.
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All of this pushed Apple (NASDAQ: AAPL) down by 2.7%, caused Salesforce (NYSE: CRM) to initially drop by than 2.2% today before regaining some of its losses by mid-afternoon, and made Qualcomm's (NASDAQ: QCOM) stock slide 3% as of 3:08 p.m. What happened It was another negative day for tech stocks today as investors began to worry again that the Federal Reserve's interest rate hikes could end up tipping the U.S. economy into a recession. Now what While it's not surprising to see Apple, Salesforce, and Qualcomm falling on recession fears today, it's worth mentioning that these stocks will likely have to weather some additional volatility as investors try to figure out what's happening with the economy.
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All of this pushed Apple (NASDAQ: AAPL) down by 2.7%, caused Salesforce (NYSE: CRM) to initially drop by than 2.2% today before regaining some of its losses by mid-afternoon, and made Qualcomm's (NASDAQ: QCOM) stock slide 3% as of 3:08 p.m. What happened It was another negative day for tech stocks today as investors began to worry again that the Federal Reserve's interest rate hikes could end up tipping the U.S. economy into a recession. Instead, one proactive measure you can take right now is to revisit your initial reasons for buying Apple, Salesforce, and Qualcomm and see if the investment thesis is still intact.
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18118.0
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2022-12-06 00:00:00 UTC
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Netflix co-CEO yet to see a path to profitability in 'renting big sports'
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AAPL
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https://www.nasdaq.com/articles/netflix-co-ceo-yet-to-see-a-path-to-profitability-in-renting-big-sports
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nan
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nan
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Adds Sarandos quotes
Dec 6 (Reuters) - Netflix Inc NFLX.O co-Chief Executive Ted Sarandos on Tuesday said he has yet to see a path to profitability in live sports on the streaming service.
Sarandos said the economics of professional sports were built around the economics of television - and buying rights is expensive.
"We've not seen a profit path to renting big sports today," Sarandos told the UBS Global TMT conference.
Rival streaming services Apple TV+ and Amazon Prime Video have added live professional sports competitions, acquiring rights to major league soccer and the NFL's Thursday night games, respectively. NBCUniversal simultaneously streams via Peacock the Sunday Night Football games it broadcasts on television.
Sarandos said Netflix has been able to add subscribers without the lure of big sporting events, such as the Super Bowl. He said he is "confident" the service can double in size without streaming live sports, although he did not rule it out entirely.
"We're not anti-sports, we're just pro-profit," Sarandos said. "We have yet to figure out how to do it."
(Reporting by Dawn Chmielewski in Los Angeles; editing by Jonathan Oatis and Howard Goller)
((Dawn.Chmielewski@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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"We've not seen a profit path to renting big sports today," Sarandos told the UBS Global TMT conference. Rival streaming services Apple TV+ and Amazon Prime Video have added live professional sports competitions, acquiring rights to major league soccer and the NFL's Thursday night games, respectively. Sarandos said Netflix has been able to add subscribers without the lure of big sporting events, such as the Super Bowl.
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Adds Sarandos quotes Dec 6 (Reuters) - Netflix Inc NFLX.O co-Chief Executive Ted Sarandos on Tuesday said he has yet to see a path to profitability in live sports on the streaming service. "We've not seen a profit path to renting big sports today," Sarandos told the UBS Global TMT conference. He said he is "confident" the service can double in size without streaming live sports, although he did not rule it out entirely.
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Adds Sarandos quotes Dec 6 (Reuters) - Netflix Inc NFLX.O co-Chief Executive Ted Sarandos on Tuesday said he has yet to see a path to profitability in live sports on the streaming service. Sarandos said the economics of professional sports were built around the economics of television - and buying rights is expensive. Rival streaming services Apple TV+ and Amazon Prime Video have added live professional sports competitions, acquiring rights to major league soccer and the NFL's Thursday night games, respectively.
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Adds Sarandos quotes Dec 6 (Reuters) - Netflix Inc NFLX.O co-Chief Executive Ted Sarandos on Tuesday said he has yet to see a path to profitability in live sports on the streaming service. Sarandos said the economics of professional sports were built around the economics of television - and buying rights is expensive. Rival streaming services Apple TV+ and Amazon Prime Video have added live professional sports competitions, acquiring rights to major league soccer and the NFL's Thursday night games, respectively.
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18119.0
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2022-12-06 00:00:00 UTC
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iShares Core S&P 500 ETF Experiences Big Inflow
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AAPL
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https://www.nasdaq.com/articles/ishares-core-sp-500-etf-experiences-big-inflow-2
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $1.6 billion dollar inflow -- that's a 0.5% increase week over week in outstanding units (from 759,850,000 to 763,800,000). Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is off about 1.3%, Microsoft Corporation (Symbol: MSFT) is down about 1.2%, and Amazon.com Inc (Symbol: AMZN) is lower by about 2%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average:
Looking at the chart above, IVV's low point in its 52 week range is $349.53 per share, with $482.07 as the 52 week high point — that compares with a last trade of $397.54. 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 ».
Free Report: Top 8%+ Dividends (paid monthly)
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 MBIN
Top Ten Hedge Funds Holding MSZ
PPBI shares outstanding history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is off about 1.3%, Microsoft Corporation (Symbol: MSFT) is down about 1.2%, and Amazon.com Inc (Symbol: AMZN) is lower by about 2%. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is off about 1.3%, Microsoft Corporation (Symbol: MSFT) is down about 1.2%, and Amazon.com Inc (Symbol: AMZN) is lower by about 2%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $349.53 per share, with $482.07 as the 52 week high point — that compares with a last trade of $397.54. Free Report: Top 8%+ Dividends (paid monthly) 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 IVV, in trading today Apple Inc (Symbol: AAPL) is off about 1.3%, Microsoft Corporation (Symbol: MSFT) is down about 1.2%, and Amazon.com Inc (Symbol: AMZN) is lower by about 2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $1.6 billion dollar inflow -- that's a 0.5% increase week over week in outstanding units (from 759,850,000 to 763,800,000). For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $349.53 per share, with $482.07 as the 52 week high point — that compares with a last trade of $397.54.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is off about 1.3%, Microsoft Corporation (Symbol: MSFT) is down about 1.2%, and Amazon.com Inc (Symbol: AMZN) is lower by about 2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $1.6 billion dollar inflow -- that's a 0.5% increase week over week in outstanding units (from 759,850,000 to 763,800,000). 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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18120.0
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2022-12-06 00:00:00 UTC
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Here is What to Know Beyond Why Apple Inc. (AAPL) is a Trending Stock
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AAPL
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https://www.nasdaq.com/articles/here-is-what-to-know-beyond-why-apple-inc.-aapl-is-a-trending-stock-2
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nan
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this maker of iPhones, iPads and other products have returned +5.6%, compared to the Zacks S&P 500 composite's +6.2% change. During this period, the Zacks Computer - Mini computers industry, which Apple falls in, has gained 6.1%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings Estimates
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
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 -5.3% over the last 30 days.
The consensus earnings estimate of $6.24 for the current fiscal year indicates a year-over-year change of +2.1%. This estimate has changed -1.6% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $6.76 indicates a change of +8.4% from what Apple is expected to report a year ago. Over the past month, the estimate has changed -1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Apple is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Apple, the consensus sales estimate for the current quarter of $123.05 billion indicates a year-over-year change of -0.7%. For the current and next fiscal years, $406.37 billion and $429.15 billion estimates indicate +3.1% and +5.6% changes, respectively.
Last Reported Results and Surprise History
Apple reported revenues of $90.15 billion in the last reported quarter, representing a year-over-year change of +8.1%. EPS of $1.29 for the same period compares with $1.24 a year ago.
Compared to the Zacks Consensus Estimate of $88.47 billion, the reported revenues represent a surprise of +1.9%. The EPS surprise was +2.38%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Apple is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Apple. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account.
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues.
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions.
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. When earnings estimates for a company go up, the fair value for its stock goes up as well.
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18121.0
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2022-12-06 00:00:00 UTC
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Meta Platforms (META) Adds Age Verification to Facebook Dating
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AAPL
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https://www.nasdaq.com/articles/meta-platforms-meta-adds-age-verification-to-facebook-dating
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nan
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Meta Platforms META recently announced that it is introducing age verification technology to Facebook Dating in the U.S. to prevent users under the age of 18 to access experiences meant to be enjoyed as adults.
Apart from uploading their ID (driver’s license or ID card), users can use video selfies to verify their age. Meta is also continuing its partnership with Yoti to protect people’s data privacy in its dating service and provide them with multiple options to verify their age.
To protect children from unwanted activities in its dating app service and being exploited by restricted ad content and protect people’s privacy, Meta is investing heavily in AI.
Meta already introduced an age verification process to Instagram, protecting children from unwanted contact from adults whom teenage users don’t know and limiting the options advertisers have to reach them with ads.
Meta’s social media platforms, Instagram and Facebook’s growing popularity in international markets, particularly in Asia, have helped Meta expand its user base. Instagram is particularly popular among Gen-Z.
Meta Platforms, Inc. Price and Consensus
Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote
However, the company, along with its other social media peer Snap SNAP, is facing backlash from global authorities and users due to child protection issues on the social networking platform.
Snap’s Snapchat platform announced new parental controls for its platform early this year to limit friend suggestions for teen users and protect them from unwanted attention.
Snapchat’s recent initiatives come following allegations that the company has been failing to prevent drug-related content from proliferating its chatting platforms, specifically among its users aged below 18.
Meta’s recent decision to introduce age verification and further protect user privacy in Facebook dating in the U.S. will attract more users to the platform. 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 Platforms Investing in AI to Boost Prospects
Meta Platforms is also investing heavily in developing AI, which is supporting the build-up of the metaverse. AI will also help Meta drive revenue growth in its ad business, which is facing the worst downturn in the company’s history.
The ad revenue business is still Meta's primary income source. However, it 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’s financial plans to generate sufficient operating income from its Family of Apps business segment to fund the growth of its Reality Labs 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.
Meta is banking its future on building the metaverse, which is a shared virtual 3D world, or multiverse, and provides more immersive ways to interact and collaborate, bringing globalization to a whole new level. It is created by the use of virtual and augmented reality.
However, building the metaverse is a collective effort and as such, Meta is making strategic partnerships with PyTorch co-founder Microsoft MSFT to develop and architect the required AI models for the metaverse.
Microsoft is bringing new work and productivity tools to Meta Quest Pro and Meta Quest 2 next year. These include apps like Microsoft Windows 365 and Microsoft Teams, and the ability to join a Teams meeting from inside Meta Horizons Workrooms, which will help create a seamless working experience in the metaverse.
META, 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.
Meta’s recent initiative to use AI to launch age verification in Facebook dating is likely to boost user confidence amid stiffening competition.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Snap Inc. (SNAP) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, it is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Snap Inc. (SNAP) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Meta already introduced an age verification process to Instagram, protecting children from unwanted contact from adults whom teenage users don’t know and limiting the options advertisers have to reach them with ads.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Snap Inc. (SNAP) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. However, it is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Meta Platforms META recently announced that it is introducing age verification technology to Facebook Dating in the U.S. 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 Snap Inc. (SNAP) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. However, it 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 However, the company, along with its other social media peer Snap SNAP, is facing backlash from global authorities and users due to child protection issues on the social networking platform.
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However, it is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Snap Inc. (SNAP) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Snap’s Snapchat platform announced new parental controls for its platform early this year to limit friend suggestions for teen users and protect them from unwanted attention.
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18122.0
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2022-12-06 00:00:00 UTC
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Microsoft mulls building 'super app' - The Information
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AAPL
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https://www.nasdaq.com/articles/microsoft-mulls-building-super-app-the-information
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nan
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Dec 6 (Reuters) - Microsoft Corp MSFT.O recently considered building a "super app" that could include shopping, messaging, news and web search services among others, The Information reported on Tuesday, citing people familiar with the matter.
The Windows-maker mulled building the app to loosen the hold of Alphabet Inc's Google GOOGL.O and Apple Inc AAPL.O on the mobile search space, according to the report.
Microsoft executives wanted the app to also boost the company's multibillion-dollar advertising business and Bing search, as well as draw more users to Teams messaging and other mobile services, The Information reported
Microsoft did not immediately respond to a Reuters request for comment.
A super app, made popular in Asia by Tencent Holdings' 0700.HK WeChat and South east Asia's Grab Holdings GRAB.O, has been described as the Swiss army knife of mobile apps, offering a suite of services for users such as messaging, social networking, peer-to-peer payments and e-commerce shopping.
Tesla Inc TSLA.O Chief Executive Elon Musk, who also owns Twitter, has shown interest in building a super app named "X" that would combine a multitude of services.
The report added that it isn't clear whether the company would launch such an app, but Chief Executive Satya Nadella has pushed for the Bing search service to perform better with the Teams and Outlook.
(Reporting by Akash Sriram in Bengaluru; Editing by Anil D'Silva)
((Akash.Sriram@thomsonreuters.com; https://twitter.com/hoodieonveshti;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Windows-maker mulled building the app to loosen the hold of Alphabet Inc's Google GOOGL.O and Apple Inc AAPL.O on the mobile search space, according to the report. Dec 6 (Reuters) - Microsoft Corp MSFT.O recently considered building a "super app" that could include shopping, messaging, news and web search services among others, The Information reported on Tuesday, citing people familiar with the matter. Tesla Inc TSLA.O Chief Executive Elon Musk, who also owns Twitter, has shown interest in building a super app named "X" that would combine a multitude of services.
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The Windows-maker mulled building the app to loosen the hold of Alphabet Inc's Google GOOGL.O and Apple Inc AAPL.O on the mobile search space, according to the report. Dec 6 (Reuters) - Microsoft Corp MSFT.O recently considered building a "super app" that could include shopping, messaging, news and web search services among others, The Information reported on Tuesday, citing people familiar with the matter. Microsoft executives wanted the app to also boost the company's multibillion-dollar advertising business and Bing search, as well as draw more users to Teams messaging and other mobile services, The Information reported Microsoft did not immediately respond to a Reuters request for comment.
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The Windows-maker mulled building the app to loosen the hold of Alphabet Inc's Google GOOGL.O and Apple Inc AAPL.O on the mobile search space, according to the report. Dec 6 (Reuters) - Microsoft Corp MSFT.O recently considered building a "super app" that could include shopping, messaging, news and web search services among others, The Information reported on Tuesday, citing people familiar with the matter. Microsoft executives wanted the app to also boost the company's multibillion-dollar advertising business and Bing search, as well as draw more users to Teams messaging and other mobile services, The Information reported Microsoft did not immediately respond to a Reuters request for comment.
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The Windows-maker mulled building the app to loosen the hold of Alphabet Inc's Google GOOGL.O and Apple Inc AAPL.O on the mobile search space, according to the report. Microsoft executives wanted the app to also boost the company's multibillion-dollar advertising business and Bing search, as well as draw more users to Teams messaging and other mobile services, The Information reported Microsoft did not immediately respond to a Reuters request for comment. A super app, made popular in Asia by Tencent Holdings' 0700.HK WeChat and South east Asia's Grab Holdings GRAB.O, has been described as the Swiss army knife of mobile apps, offering a suite of services for users such as messaging, social networking, peer-to-peer payments and e-commerce shopping.
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18123.0
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2022-12-06 00:00:00 UTC
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Should Engine No. 1 Transform 500 ETF (VOTE) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-engine-no.-1-transform-500-etf-vote-be-on-your-investing-radar-2
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Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Engine No. 1 Transform 500 ETF (VOTE) is a passively managed exchange traded fund launched on 06/22/2021.
The fund is sponsored by Engine No. 1. It has amassed assets over $369.79 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.05%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.37%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 27.50% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.19% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 27.74% of total assets under management.
Performance and Risk
VOTE seeks to match the performance of the MORNINGSTAR US LARGE CAP SELECT INDEX before fees and expenses. The Morningstar US Large Cap Select Index is market cap-weighted and tracks the 500 largest companies in the US.
The ETF has lost about -16.75% so far this year and is down about -12.24% in the last one year (as of 12/06/2022). In the past 52-week period, it has traded between $41.43 and $56.33.
The ETF has a beta of 0.99 and standard deviation of 21.26% for the trailing three-year period. With about 509 holdings, it effectively diversifies company-specific risk.
Alternatives
Engine No. 1 Transform 500 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, VOTE is a good option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $306 billion in assets, SPDR S&P 500 ETF has $372.91 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Engine No. 1 Transform 500 ETF (VOTE): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.19% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). 1 Transform 500 ETF (VOTE): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $369.79 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.
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1 Transform 500 ETF (VOTE): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.19% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Sector Exposure and Top Holdings Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund.
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1 Transform 500 ETF (VOTE): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.19% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). 1 Transform 500 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.19% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). 1 Transform 500 ETF (VOTE): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Annual operating expenses for this ETF are 0.05%, making it one of the least expensive products in the space.
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18124.0
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2022-12-06 00:00:00 UTC
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Air Products Stock Could Be a Hidden Gem Among All the Chip Manufacturing Hype
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AAPL
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https://www.nasdaq.com/articles/air-products-stock-could-be-a-hidden-gem-among-all-the-chip-manufacturing-hype
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nan
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nan
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Warren Buffett captured headlines when it was revealed that Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) made a multi-billion dollar investment in top chip foundry company Taiwan Semiconductor Manufacturing (NYSE: TSM). Many investors have been excited about the move, and are looking to follow Buffett's lead.
But maybe that's not such a great idea. Apple (NASDAQ: AAPL) makes up over more thanof Buffett's stock portfolio, and is a top customer of Taiwan Semi. Perhaps Buffett is simply hedging his Apple bet, especially since Taiwan Semi just passed big chipmaking price increases on to customers like Apple.
Nevertheless, a huge surge in chip manufacturing is shaping up around the globe, including here in the U.S. Rather than investing in Taiwan Semi stock, give Air Products & Chemicals (NYSE: APD) a serious look first.
A hidden gem amid mountains of silicon?
Air Products is not a chip manufacturer, nor is it a supplier of any key ingredients in chips like silicon. Rather, the company specializes in industrial gasses, liquified natural gas, and related equipment needed for manufacturing infrastructure. Chip fabrication is a mind-bogglingly complex process. Many chip fabs are customers of Air Products as they tap the company for gasses and energy to power massive fab facilities and manage a complex global supply chain.
As pointed out in Air Products' earnings presentations this year, Taiwan Semi (which commands over half of the world's chip fab market share) is likely an Air Products customer. Taiwan Semi is trying to localize the production of some of its neon gas (an ingredient in chipmaking). Global supply of neon has come to a grinding halt since Russia's invasion of what was once the world's top producer of the rare gas, Ukraine.
Thus, while Air Products isn't a pure play on chip manufacturing, it could be a great way to get some chip and technology supply chain exposure in your portfolio.
The U.S. and other countries around the world are prioritizing domestic technology (for example with the U.S. CHIPS Act, legislation that will kick in some $52 billion in chip manufacturing and research in the U.S.), and Air Products could have a lot to gain. New facilities being built means more gasses, energy, and equipment will need to be sold.
And a lot of facilities will be built. Various estimates anticipate global chip sales to surpass $1 trillion a year by 2030, up from just over $600 billion in 2022.
A stellar track record of steady and profitable returns
Why would an investor choose to invest in a stock like Air Products rather than a chipmaker like Taiwan Semi, especially given the huge growth expectation for the chip industry? Well, semiconductors can be a cyclical investment theme at times, and especially on the chip fab side. As with all manufacturing, chipmaking goes through booms when demand outpaces supply, followed by periods of sales slumps. It can also create some wild fluctuations in stock price that aren't tasteful to many investors.
As a heavy industrial company, Air Products can also go through up-and-down cycles. However, the company has been around a long time, and has carved out a highly profitable and diversified business for itself in the global manufacturing and energy supply chain. It also pays a dividend, which it has consistently increased for decades (the stock is a Dividend Aristocrat). Air Products' total return, which factors in share price increase and dividends paid, has been a steady winner for shareholders.
Data by YCharts.
Will Air Products be a winning investment going forward? I believe it will. Besides manufacturing, the company is also a top provider of renewable energy systems and equipment, like hydrogen. Saving money on energy is a top priority for many organizations these days, especially with inflation running hot in the wake of the pandemic. And here too Air Products could be a top supplier for tech and chipmaking.
In a recent interview, Nvidia's (NASDAQ: NVDA) vice president of enterprise computing cited a study that points toward computing technology eventually gobbling up a mid-teens percentage of total global energy consumption, up from a low-single-digit percentage today.
Air Products could thus call chip companies a customer by way of this boom in energy consumption too, not just as a supplier of manufacturing gasses. Add that to a long list of other non-tech customers that rely on Air Products to get continuously more efficient.
Is Air Products stock a buy right now?
Air Products stock has outpaced a recent rally in the overall market, rising by nearly 40% from lows in early October to early December. Shares currently trade for just under 32 times trailing 12-month earnings. It's a premium price, one that assumes Air Products will continue putting up market-beating earnings growth for many years.
At this juncture, I'd be inclined to start slowly dollar-cost averaging into Air Products, rather than investing a large sum all at once. Management anticipates growing earnings by 9% to 12% in 2023, which is not bad considering the world is fretting over a possible recession. And if the company can continue growing earnings at a low-teens percentage over the next decade like it has over the previous one, the current valuation certainly isn't all that "expensive."
However, using a discounted cash flow valuation method, at the moment the stock is just a bit over fairly valued assuming a 12% earnings growth rate for the next two years and then 7% earnings growth after that when using a discount rate of 11%.
Air Products & Chemicals doesn't rank as a top priority stock purchase for me right now. However, if you think chip manufacturing hype is real like I do, keep this company on your radar (or start nibbling in small amounts now) to ride the demand for gas and energy supply chain solutions that will be needed in the years ahead.
10 stocks we like better than Air Products And Chemicals
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 Air Products And Chemicals wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of December 1, 2022
Nicholas Rossolillo and his clients have positions in Apple, Berkshire Hathaway, and Nvidia. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) makes up over more thanof Buffett's stock portfolio, and is a top customer of Taiwan Semi. Nevertheless, a huge surge in chip manufacturing is shaping up around the globe, including here in the U.S. Rather than investing in Taiwan Semi stock, give Air Products & Chemicals (NYSE: APD) a serious look first. A stellar track record of steady and profitable returns Why would an investor choose to invest in a stock like Air Products rather than a chipmaker like Taiwan Semi, especially given the huge growth expectation for the chip industry?
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Apple (NASDAQ: AAPL) makes up over more thanof Buffett's stock portfolio, and is a top customer of Taiwan Semi. A stellar track record of steady and profitable returns Why would an investor choose to invest in a stock like Air Products rather than a chipmaker like Taiwan Semi, especially given the huge growth expectation for the chip industry? The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Nvidia, and Taiwan Semiconductor Manufacturing.
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Apple (NASDAQ: AAPL) makes up over more thanof Buffett's stock portfolio, and is a top customer of Taiwan Semi. Many chip fabs are customers of Air Products as they tap the company for gasses and energy to power massive fab facilities and manage a complex global supply chain. As pointed out in Air Products' earnings presentations this year, Taiwan Semi (which commands over half of the world's chip fab market share) is likely an Air Products customer.
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Apple (NASDAQ: AAPL) makes up over more thanof Buffett's stock portfolio, and is a top customer of Taiwan Semi. As pointed out in Air Products' earnings presentations this year, Taiwan Semi (which commands over half of the world's chip fab market share) is likely an Air Products customer. Air Products could thus call chip companies a customer by way of this boom in energy consumption too, not just as a supplier of manufacturing gasses.
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18125.0
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2022-12-06 00:00:00 UTC
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2 Dividend-Paying Tech Stocks to Buy in December
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AAPL
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https://www.nasdaq.com/articles/2-dividend-paying-tech-stocks-to-buy-in-december
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nan
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When searching for great stocks to buy, investors often have to choose between dividend income and stock price appreciation through growth. Ideally, they want to find investments that feature both of these core ingredients.
For these investors, 2022 has created a somewhat unique situation where they have a better chance of finding both in one stock. The stock market's swoon in 2022 has pushed dividend yields on several quality stocks higher, especially among a select group of beaten-down tech stocks.
Let's look at a few attractive tech stocks to own as the new year approaches. Read on for some good reasons to consider buying stock in Apple (NASDAQ: AAPL) and Activision Blizzard (NASDAQ: ATVI) in December.
1. Apple
As one of the world's most valuable brands, Apple needs no introduction. Its consumer tech products are known to command huge premiums in niches ranging from smartphones to tablets. Apple set several sales records in its most recent quarter and its products and services are likely to dominate over the holiday shopping season, too.
But income investors might be less aware of Apple's brightening profitability prospects. While temporary challenges like currency exchange rate shifts are pressuring margins today, the iPhone maker's push into services should lift operating income over time. The services business jumped to a record $19.2 billion through September, after all, as paid subscriptions passed 900 million.
This shift will add stability to Apple's business while lifting cash flow -- and that's where a rising dividend comes into play. Apple returned $29 billion to investors last quarter, mainly through stock buybacks. Look for the tech giant's dividend spending to rise over time, just as it has over the last several years.
2. Activision Blizzard
Buying Activision Blizzard stock right now is almost like buying Microsoft stock because of the likelihood that the software giant will soon close its $68.7 billion purchase of the video game developer. But investors can get a premium for taking on the risk that the purchase falls through. And Microsoft pays a solid dividend today after having boosted that payout by 10% earlier in 2022.
In the meantime, Activision Blizzard has many factors working in its favor as an investment. Yes, a few delayed title launches are pressuring 2022 sales and earnings. But those titles will still lift the business when they are released. Activision has a huge pipeline of content launches across major brands like Call of Duty, World of Warcraft, and Candy Crush.
Rival Take-Two Interactive recently told investors that the mobile gaming market is looking weaker in late 2022, in part because digital advertising spending is soft. That development might hurt Activision's King Digital segment.
Still, this dividend-paying stock is well positioned to benefit from the shift toward subscription-based game monetization over the next few years. Joining the Microsoft empire should also give it a clearer path toward virtual reality, augmented reality, and metaverse gaming.
And Activision's modest dividend payment can be considered a bonus that investors can collect as they wait for the Microsoft purchase to conclude and for the video game industry to stabilize following a post-pandemic growth hangover.
10 stocks we like better than Apple
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of November 7, 2022
Demitri Kalogeropoulos has positions in Activision Blizzard and Apple. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Microsoft, and Take-Two Interactive Software. The Motley Fool recommends the following options: long January 2023 $115 calls on Take-Two Interactive Software, 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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Read on for some good reasons to consider buying stock in Apple (NASDAQ: AAPL) and Activision Blizzard (NASDAQ: ATVI) in December. While temporary challenges like currency exchange rate shifts are pressuring margins today, the iPhone maker's push into services should lift operating income over time. Rival Take-Two Interactive recently told investors that the mobile gaming market is looking weaker in late 2022, in part because digital advertising spending is soft.
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Read on for some good reasons to consider buying stock in Apple (NASDAQ: AAPL) and Activision Blizzard (NASDAQ: ATVI) in December. Activision Blizzard Buying Activision Blizzard stock right now is almost like buying Microsoft stock because of the likelihood that the software giant will soon close its $68.7 billion purchase of the video game developer. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Microsoft, and Take-Two Interactive Software.
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Read on for some good reasons to consider buying stock in Apple (NASDAQ: AAPL) and Activision Blizzard (NASDAQ: ATVI) in December. The stock market's swoon in 2022 has pushed dividend yields on several quality stocks higher, especially among a select group of beaten-down tech stocks. Activision Blizzard Buying Activision Blizzard stock right now is almost like buying Microsoft stock because of the likelihood that the software giant will soon close its $68.7 billion purchase of the video game developer.
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Read on for some good reasons to consider buying stock in Apple (NASDAQ: AAPL) and Activision Blizzard (NASDAQ: ATVI) in December. When searching for great stocks to buy, investors often have to choose between dividend income and stock price appreciation through growth. Activision Blizzard Buying Activision Blizzard stock right now is almost like buying Microsoft stock because of the likelihood that the software giant will soon close its $68.7 billion purchase of the video game developer.
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18126.0
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2022-12-06 00:00:00 UTC
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Top Warren Buffett Stocks to Buy With $300 Right Now
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AAPL
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https://www.nasdaq.com/articles/top-warren-buffett-stocks-to-buy-with-%24300-right-now
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nan
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nan
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Warren Buffett is one of the most successful investors on Wall Street. The Berkshire Hathaway CEO's strategy of having his company buy and hold stock in solid companies for a long time has reaped rich rewards over the years, which is evident from the terrific annual gains in Berkshire's Class A shares since 1965. Berkshire's Class A shares have clocked average annual gains of 20.1% over the past 57 years.
That outperformance is why investors may want to take a page out of the Oracle of Omaha's playbook and consider buying stock in some Berkshire-held potential long-term winners themselves. Apple (NASDAQ: AAPL) and Snowflake (NYSE: SNOW) are two such names that investors with $300 to spare might want to consider buying right now.
If you have paid off your high-interest debt, have enough money saved for emergencies, and have $300 to spare, you have enough to buy one share each of these two top Buffett stocks that are trading at relatively attractive multiples. Let's look at the reasons why.
1. Apple
Apple is Berkshire Hathaway's top holding, accounting for 39% of the company's portfolio. The technology giant hasn't been immune to the stock market sell-off of 2022, as it has lost roughly 16% of its value this year. Apple's decline, however, means that investors can buy it at a nice discount right now. It is trading at 24 times trailing earnings, compared to 31 times trailing earnings in 2021.
There are a few solid reasons why investors should consider buying Buffett's top bet right now, apart from its valuation.
The first reason is that Apple's dominance of the 5G smartphone market is going to be a huge tailwind in the long run. The company reportedly controls nearly 30% of the global 5G smartphone market and enjoys a nice lead over second-placed Samsung, which has a 19% market share. It is worth noting that Apple has sustained its 5G dominance in 2022, finishing 2021 with a 31% share of 5G smartphones.
With 5G smartphone sales expected to generate nearly $747 billion in annual revenue by 2028, Apple's iPhone revenue could get a big boost in the long run. What's more, global smartphone revenue is expected to increase from $508 billion last year to nearly $790 billion in 2028. With Apple estimated to remain among the top two smartphone suppliers over the next five years, along with Samsung, its biggest source of revenue -- the iPhone -- should continue driving the company's growth.
The second reason to be upbeat about Apple's long-term growth is its services business. The segment's revenue was up 14% year over year in fiscal 2022 (which ended on Sept. 24) to $78 billion. The services business is expected to sustain its momentum in the future thanks to a huge installed base of 2 billion devices and the growing adoption of the company's music and service offerings. For instance, JPMorgan analysts estimate that Apple's annual revenue from music and gaming services could jump 36% by 2025 to $8.2 billion.
Moreover, with Apple reportedly working on new products such as augmented reality/virtual reality (AR/VR) headsets, it wouldn't be surprising to see its installed base expand further and services revenue go higher. Not surprisingly, the tech giant's top line is expected to head consistently higher in the future.
AAPL Revenue Estimates for Current Fiscal Year data by YCharts
All this makes Apple a solid Warren Buffett stock to buy right now. It seems built for long-term growth thanks to some healthy catalysts.
2. Snowflake
Though Snowflake stock is a currently a small constituent of Berkshire's portfolio, it could be a big winner for Buffett, in the long run, thanks to the massive market that the company serves and its terrific growth. The cloud-based data platform -- known for providing users with multiple services such as data warehousing (for storing filtered data that can be analyzed later), data science (which is studying huge data volumes for extracting meaningful insights), data lake (which contains unfiltered data), and secure storage of data, among others -- has been growing at an eye-popping pace.
Snowflake released its fiscal 2023 third-quarter results (for the three months ended Oct. 31) on Nov. 30. The company's quarterly revenue shot up 67% year over year to $557 million, driven by the healthy growth in its customer base as well as an increase in customer spending. Snowflake ended the quarter with a 34% year-over-year spike in the total number of customers to 7,292.
What's more, the number of customers who have spent $1 million or more on Snowflake's products over the past year shot up an impressive 94% year over year. It is also worth noting that the company's remaining performance obligations, which represent contracted future revenue that is yet to be recognized, jumped 66% over the year-ago quarter to $3 billion, indicating that Snowflake has built a solid revenue pipeline.
Snowflake should be able to sustain such impressive growth in the future, as it claims that its total addressable market could be worth $248 billion by 2026. Data warehousing, data lake, and Snowflake Unistore -- which integrates transactional and analytical data into a single platform -- would present the largest opportunity by 2026 at $173 billion.
The company is in a nice position to make the most of this massive market, as it is on track to end 2022 with a 20% share of the data warehousing market, second only to Amazon, which is expected to exit the year with a 22% share. Not surprisingly, Snowflake's top line is expected to take off strongly going forward.
SNOW Revenue Estimates for Current Fiscal Year data by YCharts
What's more, analysts are expecting 295% annual earnings growth from Snowflake for the next five years. That's not surprising, as Snowflake generated $1.86 billion in revenue over the trailing 12 months, and it is sitting on a huge opportunity that could supercharge its long-term growth.
However, investors will have to pay a rich 25 times sales to buy Snowflake. But that represents a big discount to last year's price-to-sales ratio of 97. So investors on the hunt for a growth stock that Buffett owns can consider buying Snowflake, as it is growing fast enough and has enough catalysts in the bag to justify its expensive valuation.
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. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, JPMorgan Chase &, and Snowflake. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) and Snowflake (NYSE: SNOW) are two such names that investors with $300 to spare might want to consider buying right now. AAPL Revenue Estimates for Current Fiscal Year data by YCharts All this makes Apple a solid Warren Buffett stock to buy right now. If you have paid off your high-interest debt, have enough money saved for emergencies, and have $300 to spare, you have enough to buy one share each of these two top Buffett stocks that are trading at relatively attractive multiples.
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AAPL Revenue Estimates for Current Fiscal Year data by YCharts All this makes Apple a solid Warren Buffett stock to buy right now. Apple (NASDAQ: AAPL) and Snowflake (NYSE: SNOW) are two such names that investors with $300 to spare might want to consider buying right now. SNOW Revenue Estimates for Current Fiscal Year data by YCharts What's more, analysts are expecting 295% annual earnings growth from Snowflake for the next five years.
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AAPL Revenue Estimates for Current Fiscal Year data by YCharts All this makes Apple a solid Warren Buffett stock to buy right now. Apple (NASDAQ: AAPL) and Snowflake (NYSE: SNOW) are two such names that investors with $300 to spare might want to consider buying right now. The Berkshire Hathaway CEO's strategy of having his company buy and hold stock in solid companies for a long time has reaped rich rewards over the years, which is evident from the terrific annual gains in Berkshire's Class A shares since 1965.
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Apple (NASDAQ: AAPL) and Snowflake (NYSE: SNOW) are two such names that investors with $300 to spare might want to consider buying right now. AAPL Revenue Estimates for Current Fiscal Year data by YCharts All this makes Apple a solid Warren Buffett stock to buy right now. SNOW Revenue Estimates for Current Fiscal Year data by YCharts What's more, analysts are expecting 295% annual earnings growth from Snowflake for the next five years.
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18127.0
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2022-12-06 00:00:00 UTC
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Biden to visit Taiwan's TSMC chip plant in Arizona, hail supply chain fixes
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AAPL
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https://www.nasdaq.com/articles/biden-to-visit-taiwans-tsmc-chip-plant-in-arizona-hail-supply-chain-fixes
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nan
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nan
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By Steve Holland and Jane Lanhee Lee
WASHINGTON, Dec 6 (Reuters) - President Joe Biden will visit the Arizona plant of TSMC 2330.TW on Tuesday as the Taiwanese chipmaker is set to more than triple its planned investment in the factory to $40 billion, among the largest foreign investments in U.S. history.
The investment is a big win for Biden after supply-chain issues disrupted the U.S. economy early in his presidency.
Joining Biden for his visit to Taiwan Semiconductor Manufacturing Co Ltd's facility in Phoenix to promote efforts to boost U.S. technology manufacturing will be Apple AAPL.O CEO Tim Cook, TSMC founder Morris Chang, and the heads of chipmakers Micron MU.O, Sanjay Mehrotra, and NVIDIA NVDA.O founder and CEO Jensen Huang, among others, the White House said.
They will attend a "tool-in" ceremony, which is the symbolic moving of the first equipment onto the shop floor of the new $12 billion facility. The plant is scheduled to be operational in 2024.
TSMC is the world's largest contract chipmaker and a major supplier to major U.S. hardware manufacturers such as Apple and NVIDIA.
"Bringing TSMC's investment to the United States is a masterstroke and a game-changing development for the industry," NVIDIA's Huang said in remarks prepared for Tuesday's event.
TSMC executives will announce a plan to build a second nearby facility that will produce advanced chips by 2026.
The company will announce its second plant will produce advanced N3 chips by 2026 and that its current facility will develop even more cutting-edge chips than originally proposed, going from N5 down to N4.
TSMC's investment in Arizona at two facilities will total $40 billion, making it the company's largest investment outside of Taiwan, and one of the largest foreign direct investments in U.S. history.
Biden has sought to boost production of semiconductors after the pandemic caused supply-chain problems that resulted in shortages of chips for vehicles and many other items.
U.S. semiconductor production now accounts for just 12% of the global total, down from 37% two decades ago, a White House report on supply-chain problems said last year.
Taiwan's dominant position as a maker of chips used in technology from cell phones and cars to fighter jets has sparked concerns of over-reliance on the island, especially as China ramps up military pressure to assert its sovereignty claims.
China claims Taiwan as its territory despite the strong objections of the democratically elected government in Taipei, which rejects Beijing's sovereignty claims.
The $52.7 billion "Chips and Science" act, signed by Biden in August, is aimed at preventing a resurgence of supply-chain woes.
"The occasion for the president's travel is to mark a significant milestone that TSMC is reaching in bringing the most advanced semiconductor manufacturing back to the U.S.," said Brian Deese, director of the White House National Economic Council.
Biden's victory in Arizona in the 2020 presidential election helped catapult him to the White House after Republican Donald Trump won the state in 2016.
Biden has said he intends to seek a second four-year term in 2024.
(Reporting By Steve Holland and Jane Lanhee Lee; additional reporting by David Shepardson; Editing by Sam Holmes)
((Steve.a.holland@thomsonreuters.com; www.twitter.com/steveholland1; 202 898 8300; Reuters Messaging: steve.holland.reuters.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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Joining Biden for his visit to Taiwan Semiconductor Manufacturing Co Ltd's facility in Phoenix to promote efforts to boost U.S. technology manufacturing will be Apple AAPL.O CEO Tim Cook, TSMC founder Morris Chang, and the heads of chipmakers Micron MU.O, Sanjay Mehrotra, and NVIDIA NVDA.O founder and CEO Jensen Huang, among others, the White House said. "Bringing TSMC's investment to the United States is a masterstroke and a game-changing development for the industry," NVIDIA's Huang said in remarks prepared for Tuesday's event. Taiwan's dominant position as a maker of chips used in technology from cell phones and cars to fighter jets has sparked concerns of over-reliance on the island, especially as China ramps up military pressure to assert its sovereignty claims.
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Joining Biden for his visit to Taiwan Semiconductor Manufacturing Co Ltd's facility in Phoenix to promote efforts to boost U.S. technology manufacturing will be Apple AAPL.O CEO Tim Cook, TSMC founder Morris Chang, and the heads of chipmakers Micron MU.O, Sanjay Mehrotra, and NVIDIA NVDA.O founder and CEO Jensen Huang, among others, the White House said. By Steve Holland and Jane Lanhee Lee WASHINGTON, Dec 6 (Reuters) - President Joe Biden will visit the Arizona plant of TSMC 2330.TW on Tuesday as the Taiwanese chipmaker is set to more than triple its planned investment in the factory to $40 billion, among the largest foreign investments in U.S. history. TSMC's investment in Arizona at two facilities will total $40 billion, making it the company's largest investment outside of Taiwan, and one of the largest foreign direct investments in U.S. history.
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Joining Biden for his visit to Taiwan Semiconductor Manufacturing Co Ltd's facility in Phoenix to promote efforts to boost U.S. technology manufacturing will be Apple AAPL.O CEO Tim Cook, TSMC founder Morris Chang, and the heads of chipmakers Micron MU.O, Sanjay Mehrotra, and NVIDIA NVDA.O founder and CEO Jensen Huang, among others, the White House said. By Steve Holland and Jane Lanhee Lee WASHINGTON, Dec 6 (Reuters) - President Joe Biden will visit the Arizona plant of TSMC 2330.TW on Tuesday as the Taiwanese chipmaker is set to more than triple its planned investment in the factory to $40 billion, among the largest foreign investments in U.S. history. TSMC's investment in Arizona at two facilities will total $40 billion, making it the company's largest investment outside of Taiwan, and one of the largest foreign direct investments in U.S. history.
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Joining Biden for his visit to Taiwan Semiconductor Manufacturing Co Ltd's facility in Phoenix to promote efforts to boost U.S. technology manufacturing will be Apple AAPL.O CEO Tim Cook, TSMC founder Morris Chang, and the heads of chipmakers Micron MU.O, Sanjay Mehrotra, and NVIDIA NVDA.O founder and CEO Jensen Huang, among others, the White House said. By Steve Holland and Jane Lanhee Lee WASHINGTON, Dec 6 (Reuters) - President Joe Biden will visit the Arizona plant of TSMC 2330.TW on Tuesday as the Taiwanese chipmaker is set to more than triple its planned investment in the factory to $40 billion, among the largest foreign investments in U.S. history. The company will announce its second plant will produce advanced N3 chips by 2026 and that its current facility will develop even more cutting-edge chips than originally proposed, going from N5 down to N4.
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18128.0
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2022-12-06 00:00:00 UTC
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Is Snowflake Stock A Buy Following Q3 Results?
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AAPL
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https://www.nasdaq.com/articles/is-snowflake-stock-a-buy-following-q3-results
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nan
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nan
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Snowflake (NYSE:SNOW) posted a stronger-than-expected set of Q3 2023 results, as demand for its cloud data warehousing tools mostly held up, despite some economic headwinds and cooling growth for public cloud players such as Amazon’s AWS and Microsoft Azure. However, the company’s guidance for Q4 FY’23 was weaker than expected, with product revenue projected at between $535 million and $540 million, compared to a consensus of over $550 million. While Q3 revenue grew by about 67% year over year to $557 million, adjusted operating margins rose to about 8% up from 3% in the year-ago period. The company also generated free cash flows, with cash flow margins standing at about 12%. Snowflake’s key metrics also remained relatively strong across the board, with net revenue retention standing at 165%, indicating that the company is able to expand business with its existing customers. Snowflake also continues to expand its customer base, with the total customer count rising from 5,416 in Q3 FY’22 to about 7,292 in Q3 FY’23.
However, we think that Snowflake stock looks attractive at current levels. The stock was down marginally in after-hours trading on Thursday and remains down by close to 55% year-to-date. Snowflake is valued at about 25x FY’23 revenue and about 17x FY’24 revenue, which is well below the 50x plus multiples it traded at last year. Now, although these revenue multiples might appear high, particularly in a rising interest rate environment, Snowflake has a long growth runway and its execution thus far has been very steady. The company is likely to be a big beneficiary of the continued pivot from on-premise databases to cloud-based warehousing solutions. Snowflake is particularly well-positioned in this market, as its product works across cloud platforms and also offers more flexibility. The company is targeting $10 billion in annual revenue by FY’ 29 and it is possible that it could fare still better, considering its growing addressable market (about $248 billion) as it focuses on new workloads such as cybersecurity. We value Snowflake stock at about $220 per share, about 50% ahead of the current market price. See our analysis Snowflake Valuation: Is SNOW Stock Expensive Or Cheap? for more details. See our analysis of Snowflake Revenue for more details on Snowflake’s business model and how its revenues are expected to trend.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Dec 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
SNOW Return 8% -55% -45%
S&P 500 Return 0% -14% 82%
Trefis Multi-Strategy Portfolio 1% -17% 229%
[1] Month-to-date and year-to-date as of 12/1/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Snowflake’s key metrics also remained relatively strong across the board, with net revenue retention standing at 165%, indicating that the company is able to expand business with its existing customers. Now, although these revenue multiples might appear high, particularly in a rising interest rate environment, Snowflake has a long growth runway and its execution thus far has been very steady. The company is likely to be a big beneficiary of the continued pivot from on-premise databases to cloud-based warehousing solutions.
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The company also generated free cash flows, with cash flow margins standing at about 12%. Snowflake also continues to expand its customer base, with the total customer count rising from 5,416 in Q3 FY’22 to about 7,292 in Q3 FY’23. Total [2] SNOW Return 8% -55% -45% S&P 500 Return 0% -14% 82% Trefis Multi-Strategy Portfolio 1% -17% 229% [1] Month-to-date and year-to-date as of 12/1/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Snowflake is valued at about 25x FY’23 revenue and about 17x FY’24 revenue, which is well below the 50x plus multiples it traded at last year. See our analysis of Snowflake Revenue for more details on Snowflake’s business model and how its revenues are expected to trend. Total [2] SNOW Return 8% -55% -45% S&P 500 Return 0% -14% 82% Trefis Multi-Strategy Portfolio 1% -17% 229% [1] Month-to-date and year-to-date as of 12/1/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Snowflake is valued at about 25x FY’23 revenue and about 17x FY’24 revenue, which is well below the 50x plus multiples it traded at last year. See our analysis of Snowflake Revenue for more details on Snowflake’s business model and how its revenues are expected to trend. Total [2] SNOW Return 8% -55% -45% S&P 500 Return 0% -14% 82% Trefis Multi-Strategy Portfolio 1% -17% 229% [1] Month-to-date and year-to-date as of 12/1/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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18129.0
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2022-12-06 00:00:00 UTC
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Biden to visit Taiwan's TSMC chip plant in Arizona, hail supply chain fixes
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AAPL
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https://www.nasdaq.com/articles/biden-to-visit-taiwans-tsmc-chip-plant-in-arizona-hail-supply-chain-fixes-0
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nan
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nan
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By Steve Holland and Jane Lanhee Lee
WASHINGTON/PHOENIX, Ariz., Dec 6 (Reuters) - U.S. President Joe Biden will visit TSMC's 2330.TW Arizona plant on Tuesday as the Taiwanese chipmaker said it will more than triple its planned investment there to $40 billion, among the largest foreign investments in American history.
The investment is a big win for Biden after supply chain issues disrupted the U.S. economy early in his presidency.
Joining Biden for his visit to Taiwan Semiconductor Manufacturing Co Ltd's facility in Phoenix to promote efforts to boost U.S. technology manufacturing will be Apple Inc AAPL.O Chief Executive Tim Cook, TSMC founder Morris Chang and the head of chipmaker Micron Technology Inc MU.O, Sanjay Mehrotra, and NVIDIA Corp NVDA.O founder and CEO Jensen Huang, among others, the White House said.
They will attend a "tool-in" ceremony, which is the symbolic moving of the first equipment onto the shop floor of the new $12 billion facility. The plant is scheduled to be operational in 2024.
TSMC is the world's largest contract chipmaker and a leading supplier to major U.S. hardware manufacturers such as Apple and NVIDIA.
"Bringing TSMC's investment to the United States is a masterstroke and a game-changing development for the industry," NVIDIA's Huang said in remarks prepared for Tuesday's event.
TSMC said it will build a second nearby facility that will produce advanced N3 chips by 2026, and that its current facility will develop even more cutting-edge chips than originally proposed.
TSMC's investment in Arizona at two facilities will total $40 billion, making it the company's largest investment outside of Taiwan, and one of the largest foreign direct investments in U.S. history.
The company also said when complete, the two plants will make over 600,000 wafers a year, with an estimated end-product value of more than $40 billion. A wafer is the round shiny disc that is used to make chips.
It also said it is planning to build an industrial water reclamation plant. Chip making is a water-intensive process, and Arizona, much of which is desert, is increasingly struggling with water shortages.
TSMC said its Phoenix factories are expected to create 10,000 high-tech jobs, including 4,500 TSMC jobs.
Biden has sought to boost production of semiconductors after the pandemic caused supply chain problems that resulted in shortages of chips for vehicles and many other items.
U.S. semiconductor production now accounts for just 12% of the global total, down from 37% two decades ago, a White House report on supply chain problems said last year.
Taiwan's dominant position as a maker of chips used in technology from cellphones and cars to fighter jets has sparked concerns of overreliance on the island, especially as China ramps up military pressure to assert its sovereignty claims.
China claims Taiwan as its territory despite the strong objections of the democratically elected government in Taipei, which rejects Beijing's sovereignty claims.
The $52.7 billion Chips and Science Act, signed into law by Biden in August, is aimed at preventing a resurgence of supply chain woes.
"The occasion for the president's travel is to mark a significant milestone that TSMC is reaching in bringing the most advanced semiconductor manufacturing back to the U.S.," said Brian Deese, director of the White House National Economic Council.
Biden's victory in Arizona in the 2020 presidential election helped catapult him to the White House after Republican Donald Trump won the state in 2016.
Biden has said he intends to seek a second four-year term in 2024.
(Reporting By Steve Holland and Jane Lanhee Lee; additional reporting by David Shepardson; Editing by Sam Holmes and Jonathan Oatis)
((Steve.a.holland@thomsonreuters.com; www.twitter.com/steveholland1; 202 898 8300; Reuters Messaging: steve.holland.reuters.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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Joining Biden for his visit to Taiwan Semiconductor Manufacturing Co Ltd's facility in Phoenix to promote efforts to boost U.S. technology manufacturing will be Apple Inc AAPL.O Chief Executive Tim Cook, TSMC founder Morris Chang and the head of chipmaker Micron Technology Inc MU.O, Sanjay Mehrotra, and NVIDIA Corp NVDA.O founder and CEO Jensen Huang, among others, the White House said. "Bringing TSMC's investment to the United States is a masterstroke and a game-changing development for the industry," NVIDIA's Huang said in remarks prepared for Tuesday's event. Taiwan's dominant position as a maker of chips used in technology from cellphones and cars to fighter jets has sparked concerns of overreliance on the island, especially as China ramps up military pressure to assert its sovereignty claims.
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Joining Biden for his visit to Taiwan Semiconductor Manufacturing Co Ltd's facility in Phoenix to promote efforts to boost U.S. technology manufacturing will be Apple Inc AAPL.O Chief Executive Tim Cook, TSMC founder Morris Chang and the head of chipmaker Micron Technology Inc MU.O, Sanjay Mehrotra, and NVIDIA Corp NVDA.O founder and CEO Jensen Huang, among others, the White House said. By Steve Holland and Jane Lanhee Lee WASHINGTON/PHOENIX, Ariz., Dec 6 (Reuters) - U.S. President Joe Biden will visit TSMC's 2330.TW Arizona plant on Tuesday as the Taiwanese chipmaker said it will more than triple its planned investment there to $40 billion, among the largest foreign investments in American history. TSMC's investment in Arizona at two facilities will total $40 billion, making it the company's largest investment outside of Taiwan, and one of the largest foreign direct investments in U.S. history.
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Joining Biden for his visit to Taiwan Semiconductor Manufacturing Co Ltd's facility in Phoenix to promote efforts to boost U.S. technology manufacturing will be Apple Inc AAPL.O Chief Executive Tim Cook, TSMC founder Morris Chang and the head of chipmaker Micron Technology Inc MU.O, Sanjay Mehrotra, and NVIDIA Corp NVDA.O founder and CEO Jensen Huang, among others, the White House said. By Steve Holland and Jane Lanhee Lee WASHINGTON/PHOENIX, Ariz., Dec 6 (Reuters) - U.S. President Joe Biden will visit TSMC's 2330.TW Arizona plant on Tuesday as the Taiwanese chipmaker said it will more than triple its planned investment there to $40 billion, among the largest foreign investments in American history. TSMC's investment in Arizona at two facilities will total $40 billion, making it the company's largest investment outside of Taiwan, and one of the largest foreign direct investments in U.S. history.
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Joining Biden for his visit to Taiwan Semiconductor Manufacturing Co Ltd's facility in Phoenix to promote efforts to boost U.S. technology manufacturing will be Apple Inc AAPL.O Chief Executive Tim Cook, TSMC founder Morris Chang and the head of chipmaker Micron Technology Inc MU.O, Sanjay Mehrotra, and NVIDIA Corp NVDA.O founder and CEO Jensen Huang, among others, the White House said. By Steve Holland and Jane Lanhee Lee WASHINGTON/PHOENIX, Ariz., Dec 6 (Reuters) - U.S. President Joe Biden will visit TSMC's 2330.TW Arizona plant on Tuesday as the Taiwanese chipmaker said it will more than triple its planned investment there to $40 billion, among the largest foreign investments in American history. It also said it is planning to build an industrial water reclamation plant.
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18130.0
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2022-12-05 00:00:00 UTC
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Alphabet (GOOGL) Google TV to Attract Users With New Features
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AAPL
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https://www.nasdaq.com/articles/alphabet-googl-google-tv-to-attract-users-with-new-features
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nan
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nan
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Alphabet’s GOOGL division Google is consistently introducing new capabilities to the video-streaming platform, Google TV.
According to 9TO5Google, Google started rolling out a new feature through which users can cast TV shows and movies from multiple streaming services from the Google TV app to their compatible TV with a single tap.
Apart from this, Google is introducing a redesigned Google TV remote which highlights the type of TV, and the content playing on the TV.
With the help of the revamped remote, users can search content, get recommendations and watch the show or movie on their TV without opening the Google TV app.
With the abovementioned capabilities, Google aims to provide an enhanced video streaming experience to users.
This is expected to increase customer engagement on the Google TV platform.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Growing Google TV Initiatives
Apart from the latest step, Google started showing content with audio descriptions to help users with visual impairment understand the movie or TV shows properly.
Google rolled out an innovative capability, Google TV Profiles, which let users create multiple profiles and switch among the same to get a personalized content experience.
Google also released Google TV’s revamped screensaver, which shows customized results for weather, videos, music, quotes, sports score, news, and screensaver photos.
Google’s growing efforts to expand Google TV app globally remain noteworthy. The Google TV app on Android is available in more than 100 countries currently. Google has plans to expand further in the coming months.
Competitive Video Streaming Market
All the aforesaid endeavors will continue to help Google penetrate the growing video streaming market rapidly.
Per a Fortune Business Insights report, the global video streaming market is expected to reach $1.69 trillion by 2029 from $473.4 billion in 2022, witnessing a CAGR of 19.9% between 2022 and 2029.
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 the long terms.
Shares of Alphabet have been down 29% in the year-to-date period, outperforming the Computer and Technology sector’s decline of 30.7%.
However, Alphabet faces intense competitive pressure from Apple AAPL which is making consistent efforts to capitalize on the above-mentioned prospects.
Apple, which has lost 13.1% in the year-to-date period, is continuously witnessing solid momentum across its video-streaming platform Apple TV.
Apple’s growing interest in sports streaming remains a major positive. Recently, AAPL signed a multi-year agreement with Nike to create and produce sports movies. Further, its growing original and regional content portfolio are helping it to expand its user base.
Zacks Rank & Stocks to Consider
Currently, Alphabet carries a Zacks Rank #4 (Sell).
Investors interested in the broader Zacks Computer & Technology sector can consider some better-ranked stocks like Asure Software ASUR and Airbnb ABNB. While Asure Software sports a Zacks Rank #1 (Strong Buy), Airbnb carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Asure Software has gained 14.7% in the year-to-date period. The long-term earnings growth rate for ASUR is currently projected at 23%.
Airbnb has lost 39.3% in the year-to-date period. The long-term earnings growth rate for ABNB is currently projected at 20.7%.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Asure Software Inc (ASUR) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Airbnb, Inc. (ABNB) : 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 which is making consistent efforts to capitalize on the above-mentioned prospects. Recently, AAPL signed a multi-year agreement with Nike to create and produce sports movies. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Asure Software Inc (ASUR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Airbnb, Inc. (ABNB) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Asure Software Inc (ASUR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Airbnb, Inc. (ABNB) : Free Stock Analysis Report To read this article on Zacks.com click here. However, Alphabet faces intense competitive pressure from Apple AAPL which is making consistent efforts to capitalize on the above-mentioned prospects. Recently, AAPL signed a multi-year agreement with Nike to create and produce sports movies.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Asure Software Inc (ASUR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Airbnb, Inc. (ABNB) : Free Stock Analysis Report To read this article on Zacks.com click here. However, Alphabet faces intense competitive pressure from Apple AAPL which is making consistent efforts to capitalize on the above-mentioned prospects. Recently, AAPL signed a multi-year agreement with Nike to create and produce sports movies.
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However, Alphabet faces intense competitive pressure from Apple AAPL which is making consistent efforts to capitalize on the above-mentioned prospects. Recently, AAPL signed a multi-year agreement with Nike to create and produce sports movies. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Asure Software Inc (ASUR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Airbnb, Inc. (ABNB) : Free Stock Analysis Report To read this article on Zacks.com click here.
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18131.0
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2022-12-05 00:00:00 UTC
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META Set to Create Economic Opportunities in the Metaverse
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AAPL
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https://www.nasdaq.com/articles/meta-set-to-create-economic-opportunities-in-the-metaverse
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nan
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nan
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Meta Platforms META is launching a new policy in the Metaverse Standards Forum created with other metaverse enthusiasts like Acer, Adobe and Blockchain Arbitration Society to develop metaverse as an independent commercial platform.
Per META, the metaverse will be worth $3 trillion by 2031. Big cities like Dubai, Seoul and Taiwan are planning to take advantage of the recent boom in metaverse popularity. Metaverse is also offering new opportunities for creators to develop new forms of art and entertainment, build more interactive relationships with their audiences and create new economic opportunities for themselves. Also, with the advent of hybrid work and online education, the metaverse provides a huge opportunity for industries to operate and provide customers with new experiences.
The advent of Web3 technologies like artificial intelligence (AI), Blockchain and machine learning (ML) is at the core of creating the $3 trillion virtual reality.
Meta is heavily investing in AI technology which will help build the metaverse as a commercial virtual reality independent of the real world. However, the company is facing certain major setbacks, hurting its future growth extensively.
In September, Meta closed its cryptocurrency pilot project - Novi. Despite having custody support of Coinbase, which is the largest U.S. cryptocurrency exchange trading some 50 different digital assets, the current market scenario and volatility have forced Meta to shut its operations for Novi. Traders and investors are extremely bearish about the asset class since both the crypto and NFT market crashed a year ago. The price of almost every major cryptocurrency, like Bitcoin and Ethereum, is now worth half or even less than their all-time highs.
Previously, Meta's Diem cryptocurrency was shelved even before it commenced operations as several high-profile partners bailed out due to increasing scrutiny from lawmakers and financial regulators on the company.
However, the company is hell-bent on building new economic opportunities in the metaverse with its recent policy approaches. The policies will help recognize the need for decentralized systems and build collaboration between the public and private sectors.
Meta Platforms, Inc. Price and Consensus
Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote
Meta Banking on Metaverse to Boost Prospects
Meta is facing its worst downfall in many years, negatively impacted by its advertising business segment's declining revenues.
META’s top-line growth in the third quarter was also significantly affected by negative forex impact.
Rising inflation hurt the ad spending budgets of enterprises, which weighed on the ad revenues of the company in the last reported quarter.
Meta’s ad revenue business is facing a decline 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. Meta’s advertisement revenues decreased 3.7% year over year to $27.24 billion in the third quarter, and it expects these factors to hurt advertising growth in the fourth quarter of 2022.
These reasons have impacted the stock negatively as it plummeted 63.3% in the year-to-date period compared with the Zacks Computer and Technology sector’s fall of 30.4%.
However, META, which currently carries 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 partnerships with other PyTorch foundation co-founders Microsoft MSFT and NVIDIA NVDA. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Meta recently launched its first high-end virtual reality headset, Meta Quest Pro, at the Meta Connect event. Microsoft Chairman and CEO Satya Nadella joined Zuckerberg at the event to announce the new partnership, bringing new work and productivity tools like Microsoft 365 and Teams to Meta Quest Pro and Meta Quest 2 next year.
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.
As Meta bets on building the metaverse for the future, investment in AI is expected to bring lofty ROI for the company and separate its services from competitors. This will help the company regain lost market share in the long term.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
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 a decline 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. Despite having custody support of Coinbase, which is the largest U.S. cryptocurrency exchange trading some 50 different digital assets, the current market scenario and volatility have forced Meta to shut its operations for Novi.
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Meta’s ad revenue business is facing a decline 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, Inc. Price and Consensus Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote Meta Banking on Metaverse to Boost Prospects Meta is facing its worst downfall in many years, negatively impacted by its advertising business segment's declining revenues.
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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 a decline 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 Banking on Metaverse to Boost Prospects Meta is facing its worst downfall in many years, negatively impacted by its advertising business segment's declining revenues.
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Meta’s ad revenue business is facing a decline 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, the company is hell-bent on building new economic opportunities in the metaverse with its recent policy approaches.
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18132.0
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2022-12-05 00:00:00 UTC
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Apple explores moving some iPad production to India - CNBC
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AAPL
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https://www.nasdaq.com/articles/apple-explores-moving-some-ipad-production-to-india-cnbc
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nan
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nan
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Dec 5 (Reuters) - India is exploring options to bring some of Apple Inc's AAPL.O iPad production to the country from China, CNBC reported on Monday, citing two sources close to the Indian government.
Apple is holding ongoing discussions with officials, according to the report.
The iPhone maker 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 5 (Reuters) - India is exploring options to bring some of Apple Inc's AAPL.O iPad production to the country from China, CNBC reported on Monday, citing two sources close to the Indian government. The iPhone maker 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 5 (Reuters) - India is exploring options to bring some of Apple Inc's AAPL.O iPad production to the country from China, CNBC reported on Monday, citing two sources close to the Indian government. Apple is holding ongoing discussions with officials, according to the report. (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 5 (Reuters) - India is exploring options to bring some of Apple Inc's AAPL.O iPad production to the country from China, CNBC reported on Monday, citing two sources close to the Indian government. The iPhone maker 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 5 (Reuters) - India is exploring options to bring some of Apple Inc's AAPL.O iPad production to the country from China, CNBC reported on Monday, citing two sources close to the Indian government. Apple is holding ongoing discussions with officials, according to the report. The iPhone maker did not immediately respond to a Reuters request for comment.
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18133.0
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2022-12-05 00:00:00 UTC
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ROKU Teams Up With RCA to Launch Budget HD, 4K TVs in the UK
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AAPL
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https://www.nasdaq.com/articles/roku-teams-up-with-rca-to-launch-budget-hd-4k-tvs-in-the-uk
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nan
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nan
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Roku Inc. ROKU recently made a major move into the UK market with the launch of a range of low-price TVs powered by the Roku operating system. This is in partnership with U.S. electronics manufacturer, RCA.
Roku has a long-running relationship with RCA in the United States but expanding this relationship to the UK represents a significant moment for both brands. The new RCA Roku models join Roku-carrying TVs already available in the UK from Hisense, TCL and Metz.
The 32-inch RR32HD1 will feature an HD-ready resolution and cost just £129.99, the 40-inch RR40FD1 will carry a full HD (1920x1080) resolution and cost just £169.99, and the 55-inch RR55UD1 will feature a 4K resolution and cost a mind-bogglingly cheap £269.99. These prices include 30 days of free access to discovery+ too (if you buy and activate one of the new TVs by Jan 15, 2023).
All three of these new RCA Roku TVs will feature fully localized versions of the Roku smart platform, complete with key UK apps such as Freeview Play, the BBC iPlayer, ITVX, All 4 and My5.
Roku, Inc. Price and Consensus
Roku, Inc. price-consensus-chart | Roku, Inc. Quote
Partnerships to Expand Roku TV Distribution to Fend Off Competition
Roku has significantly expanded partnerships and tie-ups in the UK in 2022. In September, the company teamed up with Germany-based brand Metz to offer affordable smart TVs, after working with Hisense and TCL to bring its software to the UK TV market.
Markedly, Roku faces stiff competition from other companies that provide TV streaming devices, including Apple’s AAPL Apple TV and Alphabet GOOGL owned Google TV.
Apple's newest digital media player, the third-generation TV 4K's interface powered by tvOS is ad-free and like an iPhone interface on a bigger screen, which allows for easy navigation. Two key additions in Apple TV 4K include the use of A15 Bionic, the same chip as the iPhone 13 series and iPhone 14 series besides support for HDR10+, the most advanced high dynamic range technology.
The Google TV app is starting to roll out a new update with the ability to cast TV shows and movies from multiple streaming services from one location, as well as a revamped remote for Android TV OS devices.
In its current form, the Google TV remote opens up as a separate page, but the new UI has a collapsible panel that minimizes into a bottom bar UI which shows what content is playing and what TV you’re connected to.
Nevertheless, Roku is riding on surge in premium subscription signups for the Roku Channel. The company has incorporated 11 free channels from AMC Networks AMC, focusing on some of the best contents from across its cable and streaming outlets. This will include a new AMC Showcase channel. AMC Showcase will spotlight many of AMC’s most well-known dramas, including Mad Men.
In addition to these new sports and entertainment offerings, the Roku Channel is also providing users a new, free Great British Baking Show channel tied to the premiere of the reboot of The Great American Baking Show on Friday, Dec 2.
Launch of third-party streaming channels, including Peacock, Disney+ and HBO Max, is aiding user growth.
Moreover, streaming hours growth is likely to boost TV streaming advertising on Roku’s platform, driving advertising revenues in the near term for this Zacks Rank #3 (Hold) company. In the third-quarter 2022, users streamed 21.9 billion hours of content on the Roku Channel, an increase of 1.1 billion over the previous quarter. The service added 2.3 million incremental active accounts in Q3, bringing its global total to 65.4 million.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Roku, Inc. (ROKU) : 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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Markedly, Roku faces stiff competition from other companies that provide TV streaming devices, including Apple’s AAPL Apple TV and Alphabet GOOGL owned Google TV. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Roku, Inc. (ROKU) : Free Stock Analysis Report To read this article on Zacks.com click here. In September, the company teamed up with Germany-based brand Metz to offer affordable smart TVs, after working with Hisense and TCL to bring its software to the UK TV market.
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Markedly, Roku faces stiff competition from other companies that provide TV streaming devices, including Apple’s AAPL Apple TV and Alphabet GOOGL owned Google TV. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Roku, Inc. (ROKU) : Free Stock Analysis Report To read this article on Zacks.com click here. In addition to these new sports and entertainment offerings, the Roku Channel is also providing users a new, free Great British Baking Show channel tied to the premiere of the reboot of The Great American Baking Show on Friday, Dec 2.
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Markedly, Roku faces stiff competition from other companies that provide TV streaming devices, including Apple’s AAPL Apple TV and Alphabet GOOGL owned Google TV. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Roku, Inc. (ROKU) : Free Stock Analysis Report To read this article on Zacks.com click here. Roku, Inc. Price and Consensus Roku, Inc. price-consensus-chart | Roku, Inc. Quote Partnerships to Expand Roku TV Distribution to Fend Off Competition Roku has significantly expanded partnerships and tie-ups in the UK in 2022.
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Markedly, Roku faces stiff competition from other companies that provide TV streaming devices, including Apple’s AAPL Apple TV and Alphabet GOOGL owned Google TV. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report AMC Entertainment Holdings, Inc. (AMC) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Roku, Inc. (ROKU) : Free Stock Analysis Report To read this article on Zacks.com click here. Roku, Inc. Price and Consensus Roku, Inc. price-consensus-chart | Roku, Inc. Quote Partnerships to Expand Roku TV Distribution to Fend Off Competition Roku has significantly expanded partnerships and tie-ups in the UK in 2022.
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18134.0
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2022-12-05 00:00:00 UTC
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The Impact of China's Changing Covid Policies: 2 Stocks to Consider
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AAPL
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https://www.nasdaq.com/articles/the-impact-of-chinas-changing-covid-policies%3A-2-stocks-to-consider
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nan
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nan
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I
n China, last week saw big protests in reaction to the so-called “Zero Covid” policy of President Xi Jinping, a policy that took China back to the spring of 2020, with lockdowns of individuals and the quarantining of towns and cities. Officially, of course, the protests changed nothing, but cities did begin to change their individual regulations around the pandemic and, over the weekend, news broke that the national policy was about to change too.
Politically, that probably means that Xi was having doubts about the policy himself before the protests, rather than that he and the other Party leaders are channeling the will of the people. Economically, however, Xi's motivation is irrelevant; the reality is that easing Covid restrictions will have a huge impact, both within China and outside.
First and foremost, this will impact inflation. The so-called “transient” issues that Jay Powell believed for a while were the main causes of inflation, supply chain disruptions and goods shortages, were exacerbated by the return to lockdowns in China, the world’s biggest manufacturer. A disrupted supply chain may not be the only thing pushing prices higher, but it certainly hasn’t helped, and the timing of renewed restrictions will have dampened and slowed the impact of rate hikes. If you try to slow demand, as the Fed has, but supply is constricted at the same time, the net impact is almost zero. That offsetting effect will be removed by even a partial return to normal in China, so bigger drops in the rate of increase in CPI over the next few months are likely, even if the Fed slows the pace of rate hikes. If we do see lower rate hikes and lower CPI increases simultaneously, we are in for a very good Q1 2023 for stocks in general.
Second, it will impact individual businesses substantially. It may be too late to rescue Apple's (AAPL) holiday season, but it may well enable them to increase output and meet some of the pent-up demand in Q1 of next year. That is good news for them, but also for suppliers like Qualcomm (QCOM) and Skyworks (SWKS).
In fact, QCOM and SWKS may be the best way for investors to play this change of policy in China. Both stocks are down substantially from their highs a year ago, and previously high-flying growth names have fallen to the point where the trailing and forward P/Es of both are well below the market averages. That is largely down to Apple’s somewhat gloomy outlook predicated on supply restrictions, and therefore reduced manufacturing of iPhones. If those problems ease, as they will when China eases up on lockdowns, suppliers like QCOM and SWKS will be producing flat out to catch up, and as they do, they will produce profits as well as parts.
As the hated “Zero Covid” restrictions in China are eased, some will point to it as a victory for people power there. President Xi will probably quietly encourage that interpretation. It enables him to retain control while giving the impression of democracy, which has big international benefits, notwithstanding the danger to him of allowing people to think they have real power. Anyway, before long, history tells us that it is likely that the protests will be forgotten and credit will be given by state-run media to President Xi, both for enacting and then lifting the restrictions, and everyone will move on.
That may upset some advocates of democracy, but it will have economic benefits, not least for Apple and its suppliers. Buying stock in a couple of those suppliers may be a smart move as the changes take effect.
* In addition to contributing here, Martin Tillier works as Head of Research at the crypto platform SmartFI.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It may be too late to rescue Apple's (AAPL) holiday season, but it may well enable them to increase output and meet some of the pent-up demand in Q1 of next year. The so-called “transient” issues that Jay Powell believed for a while were the main causes of inflation, supply chain disruptions and goods shortages, were exacerbated by the return to lockdowns in China, the world’s biggest manufacturer. A disrupted supply chain may not be the only thing pushing prices higher, but it certainly hasn’t helped, and the timing of renewed restrictions will have dampened and slowed the impact of rate hikes.
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It may be too late to rescue Apple's (AAPL) holiday season, but it may well enable them to increase output and meet some of the pent-up demand in Q1 of next year. n China, last week saw big protests in reaction to the so-called “Zero Covid” policy of President Xi Jinping, a policy that took China back to the spring of 2020, with lockdowns of individuals and the quarantining of towns and cities. The so-called “transient” issues that Jay Powell believed for a while were the main causes of inflation, supply chain disruptions and goods shortages, were exacerbated by the return to lockdowns in China, the world’s biggest manufacturer.
|
It may be too late to rescue Apple's (AAPL) holiday season, but it may well enable them to increase output and meet some of the pent-up demand in Q1 of next year. n China, last week saw big protests in reaction to the so-called “Zero Covid” policy of President Xi Jinping, a policy that took China back to the spring of 2020, with lockdowns of individuals and the quarantining of towns and cities. Economically, however, Xi's motivation is irrelevant; the reality is that easing Covid restrictions will have a huge impact, both within China and outside.
|
It may be too late to rescue Apple's (AAPL) holiday season, but it may well enable them to increase output and meet some of the pent-up demand in Q1 of next year. n China, last week saw big protests in reaction to the so-called “Zero Covid” policy of President Xi Jinping, a policy that took China back to the spring of 2020, with lockdowns of individuals and the quarantining of towns and cities. That offsetting effect will be removed by even a partial return to normal in China, so bigger drops in the rate of increase in CPI over the next few months are likely, even if the Fed slows the pace of rate hikes.
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18135.0
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2022-12-05 00:00:00 UTC
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MercadoLibre files complaints against Apple for 'anti-competitive practices'
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AAPL
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https://www.nasdaq.com/articles/mercadolibre-files-complaints-against-apple-for-anti-competitive-practices
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nan
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nan
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By Andre Romani
SAO PAULO, Dec 5 (Reuters) - E-commerce giant MercadoLibre Inc MELI.O said on Monday it has filed complaints against Apple Inc AAPL.Owith antitrust regulators in Brazil and Mexico for anti-competitive practices, accusing the U.S.-based firm of abusing what it called a monopoly in the distribution of apps for its devices.
In a statement, the e-commerce giant said that Apple had imposed a series of restrictions on the distribution of digital goods and in-app purchases, including banning apps from distributing third-party digital goods and services such as movies, music, video games, books and written content.
Apple declined to comment in Brazil and did not immediately respond to a Reuters request for comment in the United States. Google did not have a comment on the matter.
Apple's policies have been challenged in nearly every corner of the world over the past few years.
In a U.S. court trial last year over similar allegations, a judge found that Apple had not violated antitrust law in part because its rules led to security benefits for users that outweighed any harm to appmakers.
(Additional reporting by Gabriel Araujo and Paresh Dave, editing by Deepa Babington)
((Gabriel.Araujo2@thomsonreuters.com; +55 11 5644 7745;))
The views and 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 Andre Romani SAO PAULO, Dec 5 (Reuters) - E-commerce giant MercadoLibre Inc MELI.O said on Monday it has filed complaints against Apple Inc AAPL.Owith antitrust regulators in Brazil and Mexico for anti-competitive practices, accusing the U.S.-based firm of abusing what it called a monopoly in the distribution of apps for its devices. In a statement, the e-commerce giant said that Apple had imposed a series of restrictions on the distribution of digital goods and in-app purchases, including banning apps from distributing third-party digital goods and services such as movies, music, video games, books and written content. In a U.S. court trial last year over similar allegations, a judge found that Apple had not violated antitrust law in part because its rules led to security benefits for users that outweighed any harm to appmakers.
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By Andre Romani SAO PAULO, Dec 5 (Reuters) - E-commerce giant MercadoLibre Inc MELI.O said on Monday it has filed complaints against Apple Inc AAPL.Owith antitrust regulators in Brazil and Mexico for anti-competitive practices, accusing the U.S.-based firm of abusing what it called a monopoly in the distribution of apps for its devices. In a statement, the e-commerce giant said that Apple had imposed a series of restrictions on the distribution of digital goods and in-app purchases, including banning apps from distributing third-party digital goods and services such as movies, music, video games, books and written content. Apple declined to comment in Brazil and did not immediately respond to a Reuters request for comment in the United States.
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By Andre Romani SAO PAULO, Dec 5 (Reuters) - E-commerce giant MercadoLibre Inc MELI.O said on Monday it has filed complaints against Apple Inc AAPL.Owith antitrust regulators in Brazil and Mexico for anti-competitive practices, accusing the U.S.-based firm of abusing what it called a monopoly in the distribution of apps for its devices. In a statement, the e-commerce giant said that Apple had imposed a series of restrictions on the distribution of digital goods and in-app purchases, including banning apps from distributing third-party digital goods and services such as movies, music, video games, books and written content. Apple declined to comment in Brazil and did not immediately respond to a Reuters request for comment in the United States.
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By Andre Romani SAO PAULO, Dec 5 (Reuters) - E-commerce giant MercadoLibre Inc MELI.O said on Monday it has filed complaints against Apple Inc AAPL.Owith antitrust regulators in Brazil and Mexico for anti-competitive practices, accusing the U.S.-based firm of abusing what it called a monopoly in the distribution of apps for its devices. In a statement, the e-commerce giant said that Apple had imposed a series of restrictions on the distribution of digital goods and in-app purchases, including banning apps from distributing third-party digital goods and services such as movies, music, video games, books and written content. Apple declined to comment in Brazil and did not immediately respond to a Reuters request for comment in the United States.
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18136.0
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2022-12-05 00:00:00 UTC
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Dow Movers: HD, AAPL
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-hd-aapl
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nan
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nan
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In early trading on Monday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.6%. Year to date, Apple has lost about 15.4% of its value.
And the worst performing Dow component thus far on the day is Home Depot, trading down 2.1%. Home Depot is lower by about 22.6% looking at the year to date performance.
Two other components making moves today are MMM, trading down 1.7%, and Intel, trading up 0.7% on the day.
VIDEO: Dow Movers: HD, AAPL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Dow Movers: HD, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.6%. And the worst performing Dow component thus far on the day is Home Depot, trading down 2.1%.
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VIDEO: Dow Movers: HD, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.6%. Year to date, Apple has lost about 15.4% of its value.
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VIDEO: Dow Movers: HD, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.6%. And the worst performing Dow component thus far on the day is Home Depot, trading down 2.1%.
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VIDEO: Dow Movers: HD, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Dow component thus far on the day is Home Depot, trading down 2.1%. Home Depot is lower by about 22.6% looking at the year to date performance.
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18137.0
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2022-12-05 00:00:00 UTC
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Should SPDR S&P 500 ETF (SPY) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-spdr-sp-500-etf-spy-be-on-your-investing-radar-5
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nan
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nan
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Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the SPDR S&P 500 ETF (SPY), a passively managed exchange traded fund launched on 01/29/1993.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $385.29 billion, making it the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
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 0.09%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.52%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 26.80% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.39% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 28.07% of total assets under management.
Performance and Risk
SPY seeks to match the performance of the S&P 500 Index before fees and expenses. The S&P 500 Index is composed of five hundred selected stocks, all of which are listed on national stock exchanges and span over 25 separate industry groups.
The ETF has lost about -13.87% so far this year and is down about -9.69% in the last one year (as of 12/05/2022). In the past 52-week period, it has traded between $356.56 and $477.71.
The ETF has a beta of 1 and standard deviation of 24.80% for the trailing three-year period, making it a medium risk choice in the space. With about 505 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR S&P 500 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SPY is a good option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard S&P 500 ETF (VOO) and the iShares Core S&P 500 ETF (IVV) track the same index. While Vanguard S&P 500 ETF has $279.17 billion in assets, iShares Core S&P 500 ETF has $311.42 billion. VOO has an expense ratio of 0.03% and IVV charges 0.03%.
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.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SPDR S&P 500 ETF (SPY): 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
Vanguard S&P 500 ETF (VOO): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.39% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report SPDR S&P 500 ETF (SPY): 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 Vanguard S&P 500 ETF (VOO): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $385.29 billion, making it the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.39% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report SPDR S&P 500 ETF (SPY): 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 Vanguard S&P 500 ETF (VOO): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Sector Exposure and Top Holdings While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise.
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Click to get this free report SPDR S&P 500 ETF (SPY): 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 Vanguard S&P 500 ETF (VOO): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.39% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Alternatives SPDR S&P 500 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.39% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report SPDR S&P 500 ETF (SPY): 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 Vanguard S&P 500 ETF (VOO): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Annual operating expenses for this ETF are 0.09%, making it one of the least expensive products in the space.
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18138.0
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2022-12-05 00:00:00 UTC
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Nasdaq 100 Movers: TSLA, BIDU
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AAPL
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https://www.nasdaq.com/articles/nasdaq-100-movers%3A-tsla-bidu
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nan
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nan
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In early trading on Monday, shares of Baidu topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.2%. Year to date, Baidu has lost about 21.1% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Tesla, trading down 4.6%. Tesla is lower by about 47.2% looking at the year to date performance.
Two other components making moves today are DocuSign, trading down 4.0%, and Apple, trading up 1.8% on the day.
VIDEO: Nasdaq 100 Movers: TSLA, BIDU
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Monday, shares of Baidu topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.2%. And the worst performing Nasdaq 100 component thus far on the day is Tesla, trading down 4.6%. VIDEO: Nasdaq 100 Movers: TSLA, BIDU The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Monday, shares of Baidu topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.2%. Year to date, Baidu has lost about 21.1% of its value. And the worst performing Nasdaq 100 component thus far on the day is Tesla, trading down 4.6%.
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In early trading on Monday, shares of Baidu topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.2%. And the worst performing Nasdaq 100 component thus far on the day is Tesla, trading down 4.6%. Two other components making moves today are DocuSign, trading down 4.0%, and Apple, trading up 1.8% on the day.
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And the worst performing Nasdaq 100 component thus far on the day is Tesla, trading down 4.6%. Tesla is lower by about 47.2% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: TSLA, BIDU The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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18139.0
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2022-12-05 00:00:00 UTC
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Should Vanguard S&P 500 ETF (VOO) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-sp-500-etf-voo-be-on-your-investing-radar-5
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nan
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nan
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Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the Vanguard S&P 500 ETF (VOO), a passively managed exchange traded fund launched on 09/09/2010.
The fund is sponsored by Vanguard. It has amassed assets over $279.17 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.03%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.55%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 26.80% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.15% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 28.15% of total assets under management.
Performance and Risk
VOO seeks to match the performance of the S&P 500 Index before fees and expenses. The S&P 500 Index measures the performance of the large-capitalization sector of the U.S. equity market.
The ETF has lost about -13.88% so far this year and is down about -9.69% in the last one year (as of 12/05/2022). In the past 52-week period, it has traded between $327.64 and $439.25.
The ETF has a beta of 1 and standard deviation of 25.23% for the trailing three-year period, making it a medium risk choice in the space. With about 505 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard S&P 500 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, VOO is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track the same index. While iShares Core S&P 500 ETF has $311.42 billion in assets, SPDR S&P 500 ETF has $385.29 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vanguard S&P 500 ETF (VOO): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.15% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard S&P 500 ETF (VOO): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $279.17 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
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Click to get this free report Vanguard S&P 500 ETF (VOO): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.15% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Sector Exposure and Top Holdings ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing.
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Click to get this free report Vanguard S&P 500 ETF (VOO): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.15% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Sector Exposure and Top Holdings ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.15% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard S&P 500 ETF (VOO): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Annual operating expenses for this ETF are 0.03%, making it one of the least expensive products in the space.
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18140.0
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2022-12-05 00:00:00 UTC
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32% of My Retirement Portfolio Is in These 5 Stocks: Here's Why I Believe They're Winners for 2023 and Beyond
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AAPL
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https://www.nasdaq.com/articles/32-of-my-retirement-portfolio-is-in-these-5-stocks%3A-heres-why-i-believe-theyre-winners-for
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nan
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nan
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Latin American e-commerce giant MercadoLibre (NASDAQ: MELI), law enforcement technology company Axon Enterprise (NASDAQ: AXON), shoe maker Crocs (NASDAQ: CROX), equipment rental provider United Rentals (NYSE: URI), and retail landlord Tanger Factory Outlet Centers (NYSE: SKT) are five stocks I believe can beat the market over the long haul. And my money is where my mouth is; these five stocks combine to account for 32% of my personal retirement portfolio.
Below is an explanation of why I own each stock for the long haul. Percentages are the value of each position compared to the value of the entire portfolio, as of Dec. 2.
1. MercadoLibre: 7.7%
Surprisingly, I only started buying MercadoLibre stock in 2022. But I admired it from the sidelines for years. I was always uneasy with its valuation. But in 2022, the stock fell to its lowest price-to-sales (P/S) multiple ever, even though its future remains bright. And this was enough to get me off the sidelines and quickly build it into my largest position.
MELI PS ratio, data by YCharts.
As of the end of the third quarter of 2022, MercadoLibre had $945 million in property and equipment assets. And it has invested $342 million year to date in these areas. Much of this relates to the company's logistics and infrastructure for e-commerce, which is a real competitive advantage in my opinion.
According to management, 80% of items can be delivered in under 48 hours, which is hard to match. Indeed, rival Sea Limited reportedly exited some MercadoLibre markets earlier this year as the company focuses on cash flow. Building out infrastructure is expensive, especially when MercadoLibre has a big lead.
The trends for e-commerce and financial technology in Latin America are in MercadoLibre's favor. I believe these tailwinds can lift the stock to market-beating performance. And its logistics advantage and low valuation make me comfortable holding this as my largest position.
2. Axon Enterprise: 7.6%
By and large, law enforcement agencies aren't looking for short-term answers to their problems. That's why some of the contracts they sign with Axon extend out 10 years. And ever since the company adapted its strategy to better align with its customers' needs by offering its Tasers, body cameras, and software as a package deal in 2017, the stock has soared.
There are significant barriers to entry with a business like this -- you can't trust just anybody with sensitive information. This is partly why I believe Axon is a safe stock to invest in for the coming decade. For example, when it comes to national security, the company's cloud is the only one certified by the Federal Risk and Authorization Management Program. This is just one example of its trustworthiness at the federal level. And it's why the company has won $200 million in business from federal agencies in 2022 alone.
Federal agencies represent an emerging customer base for Axon; it has traditionally dealt with local and state law enforcement. And this is another reason to like Axon: It keeps expanding its addressable market. Management believes its products can be used by security personnel and corrections officers. It has even developed software to automate judicial paperwork.
At the end of the third quarter of 2022, Axon had a record backlog of over $3.7 billion, called remaining performance obligations. It's worth noting that this is up 12% quarter over quarter and up a whopping 56% year over year. The company is winning business in tough industries and is locking in customers for the long haul. It's why I still like it today.
3. Crocs: 6.5%
OK, I'll level with you. I don't wear Crocs' shoes and I don't really understand them as a fashion trend. But I don't need to. Apparently, millions of people love them, and that's what matters. The opinion of the masses is more meaningful than my personal preferences.
According to Comparably, a website that compares and rates workplaces and brands, Crocs is the 50th most popular brand among Gen Z consumers. And it has a net promoter score (NPS) of 43. For perspective, the NPS scale goes from negative 100 to positive 100. And a dominant brand like Apple only ranks slightly higher than Crocs with an NPS of 52.
This growing popularity is driving higher sales. And growth in the Americas in particular is delivering incredible profit boosts for Crocs. From 2019 through the end of 2021, revenue in the Americas jumped 151% from $641 million to $1.6 billion. And the company's operating margin is better in the Americas than in other regions, which has sent profits soaring.
CROX revenue (TTM); data by YCharts. TTM = trailing 12 months.
I believe that Crocs can keep growing in popularity in the U.S. and keep increasing revenue in this market through the acquisition of rival shoe company Heydude. Citing a survey from Piper Sandler, Crocs' management points out that Heydude is now the seventh-most-popular footwear brand for teenagers.
Heydude's financial results certainly bear this out. In the third quarter of 2022, revenue for the brand was $269 million, up a whopping 87% year over year. This momentum will certainly help Crocs' growth in coming years.
Crocs' management believes its popularity will keep it growing, and it's targeting over $6 billion in revenue in 2026. For perspective, it generated just $2.3 billion in 2021 -- that's a target of 160% growth in just four years. This leads me to believe that it's not too late to buy Crocs stock, even though it has already more than doubled from June lows.
4. United Rentals: 5.8%
Of the 33 stocks in my diversified portfolio, 17 have a higher cost basis than my United Rentals position. But United Rentals is in the top five for value because it's one of my best performers, gaining 130% compared to the 24% return of the S&P 500 since I purchased shares.
United Rentals stock is up more than 750% over the past decade, trouncing the market. Its recipe for these market-beating gains contains simple ingredients. The company has grown revenue by taking market share in the fragmented rental space and by acquiring other companies. Management watches expenses to keep free-cash-flow (FCF) generation high. And it uses cash flow to repurchase shares, as the chart below shows.
URI revenue per share (TTM); data by YCharts.
I expect United Rental's management will keep cooking this recipe for shareholders in 2023 and beyond. At the end of the third quarter of 2022, management announced that it was going to repurchase $1.5 billion in shares over the following five quarters. However, it then paused this repurchase program in order to jump at the opportunity to acquire competitor Ahern Rentals for $2 billion.
At the end of the third quarter, United Rentals was the largest equipment rental company in North America, but it only had 15% market share. Ahern Rentals allows it to grow market share by gaining Ahern's 106 stores, and increase revenue. That makes it immediately accretive to its FCF. Management will get back to repurchasing shares once it pays down some of the debt related to this acquisition.
I expect this formula will keep working for United Rentals' shareholders for the foreseeable future.
5. Tanger Factory Outlet Centers: 4.6%
Lastly, I bought shares of Tanger Factory Outlet as a dividend investment. And I liked it over other potential dividend investments because its payout is down almost 40% from its high. That sounds like a strange approach to a dividend investment, but let me explain.
SKT dividend; data by YCharts.
Tanger owns outlet malls and leases spaces to retail companies to generate revenue. And as a real estate investment trust (REIT), the company is legally obligated to pay out 90% of taxable earnings as a dividend.
Funds from operations (FFO) is another profitability metric for REITs. In 2019, Tanger had FFO of $2.27 per share. And it paid 62% of FFO as dividends.
However, the pandemic hurt brick-and-mortar retail companies, and Tanger consequently suffered as well. In 2020 and 2021, the company had FFO per share of just $1.58 and $1.29, respectively, down sharply from 2019. And it only paid out 45% and 55% of its FFO as dividends those years. That's why the dividend, and the stock, is down.
As we move further beyond the start of the pandemic, retail companies and Tanger are improving dramatically. Year to date, FFO for Tanger is up 63% from the comparable period of 2021. Management has raised the dividend some as results have improved. But it's still only paying out 43% of FFO so far in 2022. Therefore, it looks like future dividend increases are just around the corner with FFO surging back toward pre-pandemic levels.
By buying Tanger stock while it was down, I locked in a low cost basis for a dividend that looks set for a full eventual recovery. And it's why I keep holding Tanger stock, along with the other four mentioned here, for 2023 and beyond.
10 stocks we like better than MercadoLibre
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 MercadoLibre 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 September 30, 2022
Jon Quast has positions in Axon Enterprise, Crocs, MercadoLibre, Tanger Factory Outlet Centers, and United Rentals. The Motley Fool has positions in and recommends Apple, Axon Enterprise, MercadoLibre, and Sea. The Motley Fool recommends Crocs and Tanger Factory Outlet Centers and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Indeed, rival Sea Limited reportedly exited some MercadoLibre markets earlier this year as the company focuses on cash flow. And ever since the company adapted its strategy to better align with its customers' needs by offering its Tasers, body cameras, and software as a package deal in 2017, the stock has soared. Federal agencies represent an emerging customer base for Axon; it has traditionally dealt with local and state law enforcement.
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Latin American e-commerce giant MercadoLibre (NASDAQ: MELI), law enforcement technology company Axon Enterprise (NASDAQ: AXON), shoe maker Crocs (NASDAQ: CROX), equipment rental provider United Rentals (NYSE: URI), and retail landlord Tanger Factory Outlet Centers (NYSE: SKT) are five stocks I believe can beat the market over the long haul. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Jon Quast has positions in Axon Enterprise, Crocs, MercadoLibre, Tanger Factory Outlet Centers, and United Rentals. The Motley Fool recommends Crocs and Tanger Factory Outlet Centers and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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Latin American e-commerce giant MercadoLibre (NASDAQ: MELI), law enforcement technology company Axon Enterprise (NASDAQ: AXON), shoe maker Crocs (NASDAQ: CROX), equipment rental provider United Rentals (NYSE: URI), and retail landlord Tanger Factory Outlet Centers (NYSE: SKT) are five stocks I believe can beat the market over the long haul. At the end of the third quarter, United Rentals was the largest equipment rental company in North America, but it only had 15% market share. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Jon Quast has positions in Axon Enterprise, Crocs, MercadoLibre, Tanger Factory Outlet Centers, and United Rentals.
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In 2019, Tanger had FFO of $2.27 per share. That's why the dividend, and the stock, is down. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Jon Quast has positions in Axon Enterprise, Crocs, MercadoLibre, Tanger Factory Outlet Centers, and United Rentals.
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18141.0
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2022-12-05 00:00:00 UTC
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The 3 Most Popular Robinhood Stocks Right Now: Are They Buys?
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AAPL
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https://www.nasdaq.com/articles/the-3-most-popular-robinhood-stocks-right-now%3A-are-they-buys
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nan
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nan
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Robinhood (NASDAQ: HOOD) isn't the hotbed of activity that it used to be. The stock market downturn caused the trading platform's sizzle to fizzle quite a bit.
Still, though, Robinhood keeps a pretty good pulse on which stocks retail investors like the most. Here are the three most popular Robinhood stocks right now -- and whether or not they're good picks to buy.
1. Tesla
Tesla (NASDAQ: TSLA) claims the No. 1 spot on Robinhood's 100 Most Popular list. The electric vehicle (EV) stock's steep decline this year doesn't appear to have negatively affected its relative popularity among retail investors.
It's not hard to understand why Robinhood investors like Tesla so much. Despite the dismal returns in 2022, the stock has been a huge winner over the past three years. Tesla's opportunities also remain enticing.
The company began shipping its first electric Semi trucks last week. Many believe that the Class 8 truck market could be especially lucrative for Tesla over the long term. Other green flags for the EV maker's future include its initiation of production of electric pickup truck Cybertruck and its increasing profits.
2. Apple
Apple (NASDAQ: AAPL) comes in second on Robinhood's ranking of the most popular stocks on its platform. This isn't surprising, considering that Apple remains the largest company in the world based on market cap and is a household name.
Although Apple's share price is currently down nearly 20% year to date, it outperformed the S&P 500 throughout much of 2022. The company reported better-than-expected fourth-quarter results in October even with significant headwinds.
Customers continue to flock to Apple's new versions of its iPhone, Apple Watch, and Mac products. Apple TV+ is picking up momentum (and winning lots of accolades). The company's services business is also rocking along.
3. Amazon
Probably no one will be shocked that Amazon (NASDAQ: AMZN) ranks in third place on the Robinhood 100 Most Popular list. Like Apple and Tesla, Amazon is one of the biggest and most well-known companies on the planet.
Amazon also shares a less desirable commonality with the other two stocks: It's fallen sharply in 2022. The company's revenue growth is slowing. Macroeconomic uncertainty is the main culprit behind this trend.
However, Amazon's plunge of more than 40% makes the stock more attractively valued than it's been in quite a while. Many Robinhood investors have probably looked at the past times when Amazon fell so far below its previous highs and seen how the stock rebounded afterward.
Are they buys?
Different investors will have different views on each of these top Robinhood stocks. As for me, I'm most cautious about Tesla. I understand why many people like the stock. My concern, though, is that Tesla will face much stiffer competition going forward. And while CEO Elon Musk is a visionary, he now has more distractions than ever that could end up hurting Tesla over time.
I have a split opinion on Apple. The company is too dependent on China at a time when there's a lot of uncertainty in the country about COVID-19. This could make Apple stock highly volatile over the near term. But I still think that Apple will remain a solid winner for long-term investors.
What about Amazon? Sure, the e-commerce and cloud hosting giant's growth is slowing. However, the factors behind this sluggishness should only be temporary. Amazon is reducing its spending to improve profitability -- a good move, in my view. The stock is as hard to value as ever. But I think now is one of the best times in years to load up on Amazon stock.
Find out why Amazon.com is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Amazon.com is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of December 1, 2022
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keith Speights has positions in Amazon.com and Apple. The Motley Fool has positions in and recommends Amazon.com, Apple, and Tesla. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) comes in second on Robinhood's ranking of the most popular stocks on its platform. The electric vehicle (EV) stock's steep decline this year doesn't appear to have negatively affected its relative popularity among retail investors. Other green flags for the EV maker's future include its initiation of production of electric pickup truck Cybertruck and its increasing profits.
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Apple Apple (NASDAQ: AAPL) comes in second on Robinhood's ranking of the most popular stocks on its platform. This could make Apple stock highly volatile over the near term. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Apple Apple (NASDAQ: AAPL) comes in second on Robinhood's ranking of the most popular stocks on its platform. Like Apple and Tesla, Amazon is one of the biggest and most well-known companies on the planet. Many Robinhood investors have probably looked at the past times when Amazon fell so far below its previous highs and seen how the stock rebounded afterward.
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Apple Apple (NASDAQ: AAPL) comes in second on Robinhood's ranking of the most popular stocks on its platform. It's not hard to understand why Robinhood investors like Tesla so much. But I think now is one of the best times in years to load up on Amazon stock.
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18142.0
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2022-12-05 00:00:00 UTC
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Foxconn's IPhone Plant In China May Resume Full Production In Late Dec- Early Jan.
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AAPL
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https://www.nasdaq.com/articles/foxconns-iphone-plant-in-china-may-resume-full-production-in-late-dec-early-jan.
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nan
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nan
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(RTTNews) - Foxconn, Apple Inc.'s key iPhone assembler, expects that its major plant in China, which is being hit hard by worker unrest following Covid-19 spread and related restrictions, would restart full production around late December to early January, Reuters reported citing a Foxconn source.
At the world's biggest iPhone factory in the Zhengzhou city, called iPhone City, the situation related to the protests has stabilized, amid easing of COVID restrictions by the Government.
New staff hiring is underway, and the capacity at the plant is now being gradually resumed, the report said. It is expected that with the smooth recruitment process, it could take around three to four weeks to resume full production.
The report comes as Apple is said to have accelerated plans to shift some of its production outside China amid ongoing tensions.
The Wall Street Journal reported that the tech giant is telling suppliers to plan more actively for assembling Apple products elsewhere in Asia, particularly India and Vietnam, and looking to reduce dependence on Taiwanese assemblers.
Apple, which assembles most of its iPhones in China, had already shifted some production of its flagship smartphone iPhone 14 from China to India in September.
Foxconn will manufacture the smartphone at its Sriperumbudur factory on the outskirts of Chennai, India.
Apple's proposed production shift reflects the continuing tensions between the US and China, along with the ongoing Covid issues.
The tech major's key manufacturing hub of Zhengzhou has been struggling with issues among workers following strict Covid-19 restrictions. Foxconn is said to have employed as many as 300,000 workers at the factory, which produces the majority of Apple's premium models including iPhone 14 Pro.
At the plant, many workers fled in October after food shortages and to avoid strict Covid-19 restrictions, while others have to isolate to combat the spread of the virus. The issues had disrupted the production of Apple products ahead of the crucial Christmas and New Year holidays.
Earlier, Apple had warned that the shipments of iPhone 14 would be lower than expected due to the China Covid issues.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Foxconn, Apple Inc.'s key iPhone assembler, expects that its major plant in China, which is being hit hard by worker unrest following Covid-19 spread and related restrictions, would restart full production around late December to early January, Reuters reported citing a Foxconn source. Foxconn is said to have employed as many as 300,000 workers at the factory, which produces the majority of Apple's premium models including iPhone 14 Pro. At the plant, many workers fled in October after food shortages and to avoid strict Covid-19 restrictions, while others have to isolate to combat the spread of the virus.
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(RTTNews) - Foxconn, Apple Inc.'s key iPhone assembler, expects that its major plant in China, which is being hit hard by worker unrest following Covid-19 spread and related restrictions, would restart full production around late December to early January, Reuters reported citing a Foxconn source. At the world's biggest iPhone factory in the Zhengzhou city, called iPhone City, the situation related to the protests has stabilized, amid easing of COVID restrictions by the Government. Apple, which assembles most of its iPhones in China, had already shifted some production of its flagship smartphone iPhone 14 from China to India in September.
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(RTTNews) - Foxconn, Apple Inc.'s key iPhone assembler, expects that its major plant in China, which is being hit hard by worker unrest following Covid-19 spread and related restrictions, would restart full production around late December to early January, Reuters reported citing a Foxconn source. Apple, which assembles most of its iPhones in China, had already shifted some production of its flagship smartphone iPhone 14 from China to India in September. Apple's proposed production shift reflects the continuing tensions between the US and China, along with the ongoing Covid issues.
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(RTTNews) - Foxconn, Apple Inc.'s key iPhone assembler, expects that its major plant in China, which is being hit hard by worker unrest following Covid-19 spread and related restrictions, would restart full production around late December to early January, Reuters reported citing a Foxconn source. Apple, which assembles most of its iPhones in China, had already shifted some production of its flagship smartphone iPhone 14 from China to India in September. The tech major's key manufacturing hub of Zhengzhou has been struggling with issues among workers following strict Covid-19 restrictions.
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18143.0
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2022-12-05 00:00:00 UTC
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Insider Buying in 3D Systems, Live Nation and 5 Others
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AAPL
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https://www.nasdaq.com/articles/insider-buying-in-3d-systems-live-nation-and-5-others
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nan
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nan
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Insiders can sell for a whole host of reasons, including to make other investments, buy a house and pay for life's expenses. Insider selling doesn't have to mean the insider is necessarily bearish on the underlying stock. However, insider buying only occurs for one reason: they believe the stock price is going higher.
As Peter Lynch once said: "Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise."
With that, let's look at some recent insider buying.
3D Systems (DDD)
Starting off our list is 3D Systems (US:DDD), as it has not only had insider buying but insider buying from its CEO Jeffrey Graves.
Graves also serves as a director and the company's president, so it stood out when he bought 10,000 shares at $9.70 on Nov. 25 and 10,000 shares at $9.50 on Nov. 28th.
The second purchase pushed his total stake to 569,181 total shares.
Rocket Companies (RKT)
There's been plenty of insider buying by the CEO at Rocket Companies (US:RKT). Via a 10b5-1 plan, Jay Farner has been gobbling up stock.
On Nov. 25, Farner bought 25,900 shares for $7.71 apiece. Then a flurry of action took place late in the month, as he purchased 26,400 shares on Nov. 28, 25,700 shares on Nov. 29 and 25,300 shares on Nov. 30th.
Farner scooped up 103,300 shares over a five-day stretch, with each purchase worth just over $199,000. It pushed his total stake to 5.65 million shares.
Karat Packaging (KRT)
Another CEO purchase took place this week with Karat Packaging (US:KRT). Alan Yu, who also serves as the company's chairman, bought 4,000 shares at $13.47 on Nov. 28th.
The total purchase was good for more than $50,000, although it was modest compared to his total stake of 7.371 million shares.
Carvana (CVNA)
Carvana (US:CVNA) is exciting because the company is struggling right now. It's even going through another round of layoffs, and shares recently made new 52-week lows.
Yet insiders are gobbling up the stock.
On Nov. 7, two directors bought a combined 150,000 shares between $7.40 and $8.61, while another director bought 8,000 shares at $10 apiece on Nov. 14th.
President Thomas Taira bought a combined 45,000 shares between two different dates last month, while Chief Product Officer Daniel Gill more than doubled his stake by purchasing 133,000 shares at $7.62 apiece on Nov. 21st.
Prologis (PLD)
Prologis (US:PLD) showed up on some insider buying scans this week when director David O'Connor scooped up 9,000 shares at $114.13 apiece on Nov. 28th.
The purchase was good for just over $1 million.
Live Nation (LYV)
Another $1 million insider purchase took place, this time with Live Nation (US:LYV). That's after Jimmy Iovine bought 13,740 shares at $73.28 apiece on Dec. 1st. Iovine, who is a director at the company, purchased those shares in a trust but directly owns 32,792 shares as well.
If that name sounds familiar, Iovine is co-founder of Interscope Records and Beats Electronics, which was eventually sold to Apple (US:AAPL) for $3 billion.
Cosmos Holdings (COSM)
Last but not least, we have Cosmos Holdings (US:COSM), which has been popping up in many scans over the past few weeks, given the stock's immense volatility. From the November low to the November high, shares rallied almost 1,100% but have now pulled back more than 50% in just a couple of days.
As if that volatility weren't enough, Grigorios Siokas, CEO, director and a stakeholder of more than 10% of the firm, bought more than 800,000 shares on Nov. 28 at an average price of 62 cents a share.
While the stock trades for less than $1, the purchase was good for almost $500,000 and brought his stake to more than 20 million shares.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If that name sounds familiar, Iovine is co-founder of Interscope Records and Beats Electronics, which was eventually sold to Apple (US:AAPL) for $3 billion. Insiders can sell for a whole host of reasons, including to make other investments, buy a house and pay for life's expenses. As Peter Lynch once said: "Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise."
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If that name sounds familiar, Iovine is co-founder of Interscope Records and Beats Electronics, which was eventually sold to Apple (US:AAPL) for $3 billion. Karat Packaging (KRT) Another CEO purchase took place this week with Karat Packaging (US:KRT). Prologis (PLD) Prologis (US:PLD) showed up on some insider buying scans this week when director David O'Connor scooped up 9,000 shares at $114.13 apiece on Nov. 28th.
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If that name sounds familiar, Iovine is co-founder of Interscope Records and Beats Electronics, which was eventually sold to Apple (US:AAPL) for $3 billion. Then a flurry of action took place late in the month, as he purchased 26,400 shares on Nov. 28, 25,700 shares on Nov. 29 and 25,300 shares on Nov. 30th. On Nov. 7, two directors bought a combined 150,000 shares between $7.40 and $8.61, while another director bought 8,000 shares at $10 apiece on Nov. 14th.
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If that name sounds familiar, Iovine is co-founder of Interscope Records and Beats Electronics, which was eventually sold to Apple (US:AAPL) for $3 billion. With that, let's look at some recent insider buying. On Nov. 25, Farner bought 25,900 shares for $7.71 apiece.
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18144.0
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2022-12-05 00:00:00 UTC
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Friendshoring makes sense if done in the right way
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AAPL
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https://www.nasdaq.com/articles/friendshoring-makes-sense-if-done-in-the-right-way
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nan
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nan
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Reuters
Reuters
LONDON (Reuters Breakingviews) - The adage “don’t put all your eggs in one basket” applies as much to global trade as to a trip to the market.
China’s zero-Covid policies, and the backlash against them, provide a case in point. Apple may lose the production of 10 million iPhones because of disruption at a vast factory complex in Zhengzhou. Europe’s dependence on Russian gas is another cautionary tale. After President Vladimir Putin’s invasion of Ukraine, Russian gas supplies to the European Union have virtually ceased, causing economic damage which will last for years.
These examples explain the enthusiasm for “friendshoring”, an idea U.S. Treasury Secretary Janet Yellen is pushing. Her aim, which the EU also backs, is to build up suppliers of goods such as solar panels in friendly countries, so that Western buyers are less vulnerable to geopolitical blackmail or other disruptions. The People’s Republic, for its part, is trying to avoid relying too heavily on Western technology.
The risk of restricting trade to countries deemed friendly is that it could escalate into a full-blown Cold War – splitting the world into two trading blocs. That would damage prosperity at a time when the global economy is suffering. The World Trade Organization estimates it would knock global production by 5%.
So how to get the benefits of friendshoring while minimising the costs? There are two core principles: don’t use it to attack China; and have a big circle of friends.
PLAY DEFENCE NOT ATTACK
The policy could be used defensively or aggressively. In the former case, the aim is to protect a country against interruptions in supply chains, whether caused by another country’s aggressive actions or unforeseen events such as pandemics. This is the U.S. Treasury’s rationale, according to a senior official. Policies could involve dissuading companies from concentrating too much production in an unreliable country, or persuading allies to supply critical products by ensuring there is sufficient demand.
By contrast, using trade policy to damage China’s economy across the board would be a bad idea. First, it could provoke an all-out trade war – causing the kinds of disruptions that friendshoring is intended to prevent. For all the talk about diversifying supply chains, China’s economy is still tightly intertwined with the West, so cutting these links suddenly would be costly.
Second, it would heighten geopolitical tension with the People’s Republic – potentially spilling over into a hot war. Given the history of clashes between rising powers and ruling ones, the United States and others would be wise to avoid fanning the flames.
Things would be different if China was the West’s implacable enemy in the way that Putin’s Russia is. But last month’s summit between U.S. President Joe Biden and his Chinese counterpart Xi Jinping suggests that a wary détente may be possible.
David Dollar, a senior fellow at the Brookings Institution and a former official at the U.S. Embassy in Beijing, thinks America is right to take a different approach to the People’s Republic from Russia, though that may change if China invades Taiwan.
Using friendshoring in a defensive rather than aggressive way means focusing on strategic products. Hung Tran, a senior fellow at the Atlantic Council, listed five in a recent paper: semiconductors; telecommunications, including 5G infrastructure; green products, such as solar panels and batteries; active pharmaceutical ingredients; and strategic minerals, such as rare earths.
In many of these, Chinese companies have strong positions. For example, they control more than 80% of all solar panel manufacturing and over 95% of the production of polysilicon which goes inside the panels.
Yet even in these cases, the aim of the United States and its allies should be to ensure that there are enough alternative suppliers, not cut off Chinese ones completely. A targeted approach would limit the economic cost. Spreading production among several suppliers would also limit the risk that countries which are deemed friends today become less reliable in the future.
The same logic applies to companies. Apple, for example, is ramping up iPhone production in India. While it makes sense to cut its dependency on China, that doesn’t mean going all the way to zero.
WHO’S A FRIEND ANYWAY?
The term friendshoring might seem to imply that America should build up supply chains only where it has strong alliances – mainly other NATO countries and Pacific nations such as Japan, South Korea and Australia. That would mean avoiding India, which has refused to follow Western sanctions against Russia and has increased its purchases of Russian oil.
But this would be foolish. The more narrowly America and its allies define their club of friends, the more they will damage their own economies. Fortunately, the U.S. Treasury is taking a broad approach to what constitutes a friend. For example, last month Yellen was in India, touting the benefits of her policy.
Ideally, rich democracies would intensify trade with other parts of the world as they reduce their dependence on China. For example, they could negotiate ambitious trade and investment deals that increase production of green products – simultaneously advancing the energy transition and diluting China’s strong position.
Ngozi Okonjo-Iweala, the WTO’s director-general, rightly argues there is an “opportunity to use trade as an instrument of inclusion” for poorer countries. The snag is that America is extremely reluctant to agree new trade deals. The best it can probably do is squeeze more out of its new Indo-Pacific Economic Framework and the EU-U.S. Trade and Technology Council.
Protectionist sentiment in America was particularly aggressive when Donald Trump was in the White House. But Biden’s landmark Inflation Reduction Act includes protectionist subsidies for products like electric vehicles. Fortunately, the U.S. president seems to realise there is a conflict between this and friendshoring. When French President Emmanuel Macron complained during his state visit to the United States last week, Biden promised to “tweak” the rules so European allies aren’t excluded.
Protectionism won’t just undermine the geopolitical logic of friendshoring. It could be self-defeating. As the economist Richard Baldwin noted: “Putting all your production eggs in one basket doesn’t make sense, no matter where the basket is.”
Follow @Hugodixon on Twitter
(Editing by Peter Thal Larsen, Streisand Neto and Oliver Taslic)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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David Dollar, a senior fellow at the Brookings Institution and a former official at the U.S. Embassy in Beijing, thinks America is right to take a different approach to the People’s Republic from Russia, though that may change if China invades Taiwan. Hung Tran, a senior fellow at the Atlantic Council, listed five in a recent paper: semiconductors; telecommunications, including 5G infrastructure; green products, such as solar panels and batteries; active pharmaceutical ingredients; and strategic minerals, such as rare earths. The term friendshoring might seem to imply that America should build up supply chains only where it has strong alliances – mainly other NATO countries and Pacific nations such as Japan, South Korea and Australia.
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While it makes sense to cut its dependency on China, that doesn’t mean going all the way to zero. For example, they could negotiate ambitious trade and investment deals that increase production of green products – simultaneously advancing the energy transition and diluting China’s strong position. As the economist Richard Baldwin noted: “Putting all your production eggs in one basket doesn’t make sense, no matter where the basket is.” Follow @Hugodixon on Twitter (Editing by Peter Thal Larsen, Streisand Neto and Oliver Taslic) The views and 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 risk of restricting trade to countries deemed friendly is that it could escalate into a full-blown Cold War – splitting the world into two trading blocs. Policies could involve dissuading companies from concentrating too much production in an unreliable country, or persuading allies to supply critical products by ensuring there is sufficient demand. For example, they could negotiate ambitious trade and investment deals that increase production of green products – simultaneously advancing the energy transition and diluting China’s strong position.
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The policy could be used defensively or aggressively. In many of these, Chinese companies have strong positions. Yet even in these cases, the aim of the United States and its allies should be to ensure that there are enough alternative suppliers, not cut off Chinese ones completely.
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18145.0
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2022-12-04 00:00:00 UTC
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2 Top Stocks to Buy In December
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AAPL
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https://www.nasdaq.com/articles/2-top-stocks-to-buy-in-december
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nan
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nan
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The market sell-off has sent numerous stocks tumbling in 2022 as consumer-reliant companies have suffered from declines in spending. Rises in inflation and a potential recession in 2023 have made navigating the stock market cumbersome.
However, all hope is not lost. Recent dips in share prices make now an excellent time to invest in companies with promising long-term outlooks. After all, it's always best to bet your money on a company's business rather than its stock.
Warner Bros. Discovery (NASDAQ: WBD) and Apple (NASDAQ: AAPL) have each watched their stocks slide in 2022 but remain worthy investments this December thanks to positive outlooks over the long haul. Here's why.
Warner Bros. Discovery
Following headlines featuring Warner Bros. Discovery over the last year, you'd think it's best to avoid the company's stock like the plague. The entertainment giant's shares have plunged 55% year to date as controversial restructuring measures have spooked investors.
However, given its popular franchises such as Harry Potter, Game of Thrones, and DC superheroes, I would not bet against the long-term future of Warner Bros. Discovery. The company is well-equipped to cash in on the potential of these brands across multiple mediums such as film, TV, streaming, video games, and theme parks.
Since Warner Bros. Discovery formed from the merger of Warner Media and Discovery Inc. in April, the company has been in flux as its CEO David Zaslav makes changes to prioritize profitability. In the third quarter of 2022, Warner Bros. Discovery reported an 11% revenue decline, earning $9.82 billion with a net loss of $2.3 billion.
The weak results largely stemmed from restructuring costs and macroeconomic headwinds affecting its advertising business, both temporary obstacles. The company revealed in its Q3 2022 earnings report that it expects its restructuring efforts to be "substantially completed by the end of 2024," which bodes well for Warner Bros. Discovery's long-term future.
With the launch of its new HBO Max and Discovery+ merged streaming service in 2023, multiple upcoming theatrical blockbuster releases, and Marvel's James Gunn now co-leading all of its future DC offerings, Warner Bros. Discovery has promising prospects.
Additionally, its current price-to-earnings ratio of 12.8 shows the company's financial health is in better standing than its stock price would have you believe, making it a bargain buy this December.
Apple
Apple is home to some of the world's most coveted products, including the iPhone, Air Pods, the iPad, and its Mac lineup, to name a few. The high demand for its tech offerings drove the company to report revenue and operating income growth in its latest quarter despite significant declines in consumer spending throughout the industry.
In Q4 2022, the iPhone manufacturer posted revenue of $90.15 billion, an 8.1% year-over-year rise and $1.38 billion more than previous analysts' forecasts. Operating income increased 4.6% to $24.89 billion.
Moreover, Apple has proven its position as one of the best growth stocks out there, with its shares rising 249% in the last five years despite a 19% dip in 2022. In fact, stock market star Warren Buffett has put 39.2% of Berkshire Hathaway's portfolio into Apple stock, giving Berkshire a 5.8% stake in the company worth $135.3 billion.
In the coming year, reports say Apple will enter the $25 billion augmented reality/virtual reality (AR/VR) market with a new AR/VR headset, fill out its Mac lineup with a larger iMac and beefier Mac Mini, and further grow its services revenue from recent price hikes. With its long-term plans to venture into even newer areas, such as folding phones and electric vehicles, Apple will likely continue to see significant gains for years to come.
With $111 billion in free cash flow as of Sept. 30, a price-to-earnings ratio of 24, and some exciting developments in 2023, Apple is a screaming buy this December in the run-up to the new year.
10 stocks we like better than Warner Bros. Discovery
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Dani Cook 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 Warner Bros. Discovery 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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Discovery (NASDAQ: WBD) and Apple (NASDAQ: AAPL) have each watched their stocks slide in 2022 but remain worthy investments this December thanks to positive outlooks over the long haul. With the launch of its new HBO Max and Discovery+ merged streaming service in 2023, multiple upcoming theatrical blockbuster releases, and Marvel's James Gunn now co-leading all of its future DC offerings, Warner Bros. Additionally, its current price-to-earnings ratio of 12.8 shows the company's financial health is in better standing than its stock price would have you believe, making it a bargain buy this December.
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Discovery (NASDAQ: WBD) and Apple (NASDAQ: AAPL) have each watched their stocks slide in 2022 but remain worthy investments this December thanks to positive outlooks over the long haul. Discovery reported an 11% revenue decline, earning $9.82 billion with a net loss of $2.3 billion. The high demand for its tech offerings drove the company to report revenue and operating income growth in its latest quarter despite significant declines in consumer spending throughout the industry.
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Discovery (NASDAQ: WBD) and Apple (NASDAQ: AAPL) have each watched their stocks slide in 2022 but remain worthy investments this December thanks to positive outlooks over the long haul. In fact, stock market star Warren Buffett has put 39.2% of Berkshire Hathaway's portfolio into Apple stock, giving Berkshire a 5.8% stake in the company worth $135.3 billion. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Dani Cook has no position in any of the stocks mentioned.
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Discovery (NASDAQ: WBD) and Apple (NASDAQ: AAPL) have each watched their stocks slide in 2022 but remain worthy investments this December thanks to positive outlooks over the long haul. Discovery. Moreover, Apple has proven its position as one of the best growth stocks out there, with its shares rising 249% in the last five years despite a 19% dip in 2022.
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18146.0
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2022-12-04 00:00:00 UTC
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Foxconn expects COVID-hit China plant back to full output in late Dec-early Jan -source
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AAPL
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https://www.nasdaq.com/articles/foxconn-expects-covid-hit-china-plant-back-to-full-output-in-late-dec-early-jan-source
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nan
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nan
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Adds quote from source, background, share price
TAIPEI, Dec 5 (Reuters) - Apple supplier Foxconn 2317.TW expects its COVID-hit Zhengzhou plant in China to resume full production around late December to early January, a Foxconn source said on Monday, after worker unrest disrupted the world's biggest iPhone factory.
The Zhengzhou plant has been grappling with strict COVID-19 restrictions that have fuelled discontent among workers over conditions at the factory. Production of the Apple AAPL.O device was disrupted ahead of Christmas and January's Lunar New Year holidays, with many workers either having to isolate to combat the spread of the virus or fleeing the plant.
"If the recruitment goes smoothly, it could take around three to four weeks to resume full production," the person said, pointing to a period around late December to early January.
Foxconn and the local government are working hard on the recruitment drive but many uncertainties remain, according to the source. The person cited "fears" some workers might have about working for the company after the plant was hit by protests last month that sometimes turned violent.
"We are firing on all cylinders on the recruitment," the person said.
Foxconn declined to comment.
Shares of Foxconn were up 0.5% on Monday morning, in line with the 0.6% rise in the broader market .TWII.
(Reporting By Yimou Lee; Editing by Tom Hogue and Kenneth Maxwell)
((yimou.lee@thomsonreuters.com; +886-2-8729-5122;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Production of the Apple AAPL.O device was disrupted ahead of Christmas and January's Lunar New Year holidays, with many workers either having to isolate to combat the spread of the virus or fleeing the plant. Adds quote from source, background, share price TAIPEI, Dec 5 (Reuters) - Apple supplier Foxconn 2317.TW expects its COVID-hit Zhengzhou plant in China to resume full production around late December to early January, a Foxconn source said on Monday, after worker unrest disrupted the world's biggest iPhone factory. "If the recruitment goes smoothly, it could take around three to four weeks to resume full production," the person said, pointing to a period around late December to early January.
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Production of the Apple AAPL.O device was disrupted ahead of Christmas and January's Lunar New Year holidays, with many workers either having to isolate to combat the spread of the virus or fleeing the plant. Adds quote from source, background, share price TAIPEI, Dec 5 (Reuters) - Apple supplier Foxconn 2317.TW expects its COVID-hit Zhengzhou plant in China to resume full production around late December to early January, a Foxconn source said on Monday, after worker unrest disrupted the world's biggest iPhone factory. The Zhengzhou plant has been grappling with strict COVID-19 restrictions that have fuelled discontent among workers over conditions at the factory.
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Production of the Apple AAPL.O device was disrupted ahead of Christmas and January's Lunar New Year holidays, with many workers either having to isolate to combat the spread of the virus or fleeing the plant. Adds quote from source, background, share price TAIPEI, Dec 5 (Reuters) - Apple supplier Foxconn 2317.TW expects its COVID-hit Zhengzhou plant in China to resume full production around late December to early January, a Foxconn source said on Monday, after worker unrest disrupted the world's biggest iPhone factory. "If the recruitment goes smoothly, it could take around three to four weeks to resume full production," the person said, pointing to a period around late December to early January.
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Production of the Apple AAPL.O device was disrupted ahead of Christmas and January's Lunar New Year holidays, with many workers either having to isolate to combat the spread of the virus or fleeing the plant. Adds quote from source, background, share price TAIPEI, Dec 5 (Reuters) - Apple supplier Foxconn 2317.TW expects its COVID-hit Zhengzhou plant in China to resume full production around late December to early January, a Foxconn source said on Monday, after worker unrest disrupted the world's biggest iPhone factory. "If the recruitment goes smoothly, it could take around three to four weeks to resume full production," the person said, pointing to a period around late December to early January.
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18147.0
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2022-12-04 00:00:00 UTC
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Apple and Amazon resume advertising on Twitter - reports
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AAPL
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https://www.nasdaq.com/articles/apple-and-amazon-resume-advertising-on-twitter-reports
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nan
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nan
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Adds background, paragraph 5
Dec 3 (Reuters) - Amazon.com Inc AMZN.O and Apple Inc AAPL.O are planning to resume advertising on Twitter, according to media reports on Saturday.
The developments follow an email sent by Twitter on Thursday to advertising agencies offering advertisers incentives to increase their spending on the platform, an effort to jump-start its business after Elon Musk's takeover prompted many companies to pull back.
Twitter billed the offer as the "biggest advertiser incentive ever on Twitter," according to the email reviewed by Reuters. U.S. advertisers who book $500,000 in incremental spending will qualify to have their spending matched with a "100% value add," up to a $1 million cap, the email said.
However, a source familiar with the matter told Reuters that Amazon had never stopped advertising on Twitter.
Many companies from General Mills Inc GIS.N to luxury automaker Audi of America stopped or paused advertising on Twitter since the acquisition, and Musk said in November that the company had seen a "massive" drop in revenue.
Apple and Twitter did not immediately respond to Reuters request for comment on the matter.
(Reporting by Juby Babu and Akriti Sharma in Bengaluru; Additional reporting by Rhea Binoy; Editing by Lincoln Feast and Daniel Wallis)
((Juby.Babu@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds background, paragraph 5 Dec 3 (Reuters) - Amazon.com Inc AMZN.O and Apple Inc AAPL.O are planning to resume advertising on Twitter, according to media reports on Saturday. The developments follow an email sent by Twitter on Thursday to advertising agencies offering advertisers incentives to increase their spending on the platform, an effort to jump-start its business after Elon Musk's takeover prompted many companies to pull back. (Reporting by Juby Babu and Akriti Sharma in Bengaluru; Additional reporting by Rhea Binoy; Editing by Lincoln Feast and Daniel Wallis) ((Juby.Babu@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds background, paragraph 5 Dec 3 (Reuters) - Amazon.com Inc AMZN.O and Apple Inc AAPL.O are planning to resume advertising on Twitter, according to media reports on Saturday. The developments follow an email sent by Twitter on Thursday to advertising agencies offering advertisers incentives to increase their spending on the platform, an effort to jump-start its business after Elon Musk's takeover prompted many companies to pull back. Twitter billed the offer as the "biggest advertiser incentive ever on Twitter," according to the email reviewed by Reuters.
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Adds background, paragraph 5 Dec 3 (Reuters) - Amazon.com Inc AMZN.O and Apple Inc AAPL.O are planning to resume advertising on Twitter, according to media reports on Saturday. The developments follow an email sent by Twitter on Thursday to advertising agencies offering advertisers incentives to increase their spending on the platform, an effort to jump-start its business after Elon Musk's takeover prompted many companies to pull back. Twitter billed the offer as the "biggest advertiser incentive ever on Twitter," according to the email reviewed by Reuters.
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Adds background, paragraph 5 Dec 3 (Reuters) - Amazon.com Inc AMZN.O and Apple Inc AAPL.O are planning to resume advertising on Twitter, according to media reports on Saturday. The developments follow an email sent by Twitter on Thursday to advertising agencies offering advertisers incentives to increase their spending on the platform, an effort to jump-start its business after Elon Musk's takeover prompted many companies to pull back. However, a source familiar with the matter told Reuters that Amazon had never stopped advertising on Twitter.
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18148.0
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2022-12-04 00:00:00 UTC
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Validea's Top Five Technology Stocks Based On Warren Buffett - 12/4/2022
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AAPL
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https://www.nasdaq.com/articles/valideas-top-five-technology-stocks-based-on-warren-buffett-12-4-2022
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nan
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nan
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The following are the top rated Technology stocks according to Validea's Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating according to our strategy based on Warren Buffett is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Apple Inc. (Apple) designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories and sells a range of related services. The Company's products include iPhone, Mac, iPad, AirPods, Apple TV, Apple Watch, Beats products, HomePod, iPod touch and accessories. The Company operates various platforms, including the App Store, which allows customers to discover and download applications and digital content, such as books, music, video, games and podcasts. Apple offers digital content through subscription-based services, including Apple Arcade, Apple Music, Apple News+, Apple TV+ and Apple Fitness+. Apple also offers a range of other services, such as AppleCare, iCloud, Apple Card and Apple Pay. Apple sells its products and resells third-party products in a range of markets, including directly to consumers, small and mid-sized businesses, and education, enterprise and government customers through its retail and online stores and its direct sales force.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
Full Guru Analysis for AAPL>
Full Factor Report for AAPL>
MICROSOFT CORP (MSFT) is a large-cap growth stock in the Software & Programming industry. The rating according to our strategy based on Warren Buffett is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Microsoft Corporation is a technology company. The Company develops and supports software, services, devices, and solutions. Its segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. This segment includes Office Consumer, LinkedIn, dynamics business solutions, and Office Commercial. The Intelligent Cloud segment consists of public, private, and hybrid server products and cloud services that can power modern businesses and developers. This segment includes server products and cloud services, and enterprise services. The More Personal Computing segment consists of products and services that put customers at the centre of the experience with its technology. This segment includes Windows, devices, gaming, and search and news advertising.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of MICROSOFT CORP
Full Guru Analysis for MSFT>
Full Factor Report for MSFT>
KLA CORP (KLAC) is a large-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Warren Buffett is 96% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: KLA Corporation (KLA) is a supplier of process control and yield management solutions and services for the semiconductor and related electronics industries. The Company offers a portfolio of device manufacturing, inspection and metrology products and related service, software and other offerings support research and development (R&D) and manufacturing of integrated circuits (IC), wafers and reticles. It also offers technologically advanced, yield-enhancing and process-enabling solutions to address various manufacturing stages of Printed Circuit Boards (PCB), Flat Panel Displays (FPD), Specialty Semiconductor Devices (SD) and other electronic components. Its segment includes Semiconductor Process Control; Specialty Semiconductor Process; PCB, Display and Component Inspection, and Other. The Semiconductor Process Control segment provides a portfolio of inspection, metrology and data analytics products as well as related service offerings.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of KLA CORP
Full Guru Analysis for KLAC>
Full Factor Report for KLAC>
SKYWORKS SOLUTIONS INC (SWKS) is a large-cap value stock in the Semiconductors industry. The rating according to our strategy based on Warren Buffett is 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Skyworks Solutions, Inc. is engaged in designing, manufacturing, and marketing, semiconductor products, including intellectual property. The Company's analog semiconductors are connecting people, places, and things, across new applications within the aerospace, automotive, broadband, cellular infrastructure, connected home, entertainment, and gaming, industrial, medical, military, smartphone, tablet, and wearable markets. It operates engineering, manufacturing, sales, and service facilities throughout Asia, Europe, and North America. Its system solutions include Sky5, diversity receive (DRx) and multi-input multi-output (MIMO), SkyOne, antenna management, and integrated infrastructure. It offers a range of products, such as Amplifiers, Antenna Tuners, Attenuators, Automotive Tuners and Digital Radios, Circulators/Isolators, Demodulators, Detectors, Digital Power Isolators, Diodes, Directional Couplers, Diversity Receive Modules, Filters, Mixers, Modulators, Receivers, and Switches.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of SKYWORKS SOLUTIONS INC
Full Guru Analysis for SWKS>
Full Factor Report for SWKS>
TEXAS INSTRUMENTS INCORPORATED (TXN) is a large-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Warren Buffett is 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Texas Instruments Incorporated designs, makes and sells semiconductors to electronics designers and manufacturers across the world. The Company operates through two segments: Analog and Embedded Processing. The Company's Analog segment product lines include Power and Signal Chain. Power includes products that help customers manage power in electronic systems. Signal Chain includes products that sense, condition and measure signals to allow information to be transferred or converted for further processing and control. The Embedded Processing segment includes microcontrollers, digital signal processors (DSPs), and applications processors. Microcontrollers are self-contained systems with a processor core, memory and peripherals that are designed to control a set of specific tasks for electronic equipment. DSPs perform mathematical computations to process or improve digital data. Applications processors are designed for specific computing activities.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of TEXAS INSTRUMENTS INCORPORATED
Full Guru Analysis for TXN>
Full Factor Report for TXN>
More details on Validea's Warren Buffett strategy
Warren Buffett Stock Ideas
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. Detailed Analysis of APPLE INC Full Guru Analysis for AAPL> Full Factor Report for AAPL> MICROSOFT CORP (MSFT) is a large-cap growth stock in the Software & Programming industry. The Company operates various platforms, including the App Store, which allows customers to discover and download applications and digital content, such as books, music, video, games and podcasts.
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APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. Detailed Analysis of APPLE INC Full Guru Analysis for AAPL> Full Factor Report for AAPL> MICROSOFT CORP (MSFT) is a large-cap growth stock in the Software & Programming industry. Detailed Analysis of MICROSOFT CORP Full Guru Analysis for MSFT> Full Factor Report for MSFT> KLA CORP (KLAC) is a large-cap growth stock in the Semiconductors industry.
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APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. Detailed Analysis of APPLE INC Full Guru Analysis for AAPL> Full Factor Report for AAPL> MICROSOFT CORP (MSFT) is a large-cap growth stock in the Software & Programming industry. Apple offers digital content through subscription-based services, including Apple Arcade, Apple Music, Apple News+, Apple TV+ and Apple Fitness+.
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APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. Detailed Analysis of APPLE INC Full Guru Analysis for AAPL> Full Factor Report for AAPL> MICROSOFT CORP (MSFT) is a large-cap growth stock in the Software & Programming industry. Company Description: Apple Inc. (Apple) designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories and sells a range of related services.
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18149.0
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2022-12-04 00:00:00 UTC
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3 Stocks Billionaires Have Bought Ahead of 2023
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AAPL
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https://www.nasdaq.com/articles/3-stocks-billionaires-have-bought-ahead-of-2023
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nan
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nan
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The stock market hasn't been easy to navigate this year. There haven't been many places to hide, particularly for technology investors, with the Nasdaq-100 index shedding 27% of its value year to date. So, what should an investor do at a time like this?
First, it's critical to maintain a long-term focus. History is proof that the broader market always recovers to new highs, given enough time. But investors can also watch what the professionals are buying, particularly those who have achieved billionaire status. That's why three Motley Fool contributors think Apple (NASDAQ: AAPL), Datadog (NASDAQ: DDOG), and Okta (NASDAQ: OKTA) need to be on everybody's watch lists ahead of the new year.
Betting big on America's largest company
Anthony Di Pizio (Apple): He's widely considered as one of the greatest investors ever, so it seems fitting that Warren Buffett, through his investment company Berkshire Hathaway, would own shares in Apple, America's largest company. But to take things a step further, Apple has become Berkshire's biggest holding and it has regularly increased its position throughout the year.
Berkshire was most recently a buyer of Apple in the second quarter of 2022, and it now holds 915 million shares, a stake worth over $135 billion. In the recent third quarter, Berkshire also made a first-time bet on Taiwan Semiconductor Manufacturing stock -- curiously, Apple is that company's largest customer. It uses Taiwan Semi to manufacture the chips that power its portfolio of devices, so the move could be interpreted as an indirect bet on Apple's success.
But what is it about Apple that Buffett finds so attractive? The company sells products that consumers love, it's highly profitable, and it has returned a significant amount of money to shareholders, which flows directly into Berkshire's coffers. In fact, Apple returned over $104 billion to shareholders during fiscal 2022 (ended Sept. 24) alone through dividends and stock buybacks.
The company's fiscal 2022 results were a little sluggish in aggregate thanks to the slowing economy, with revenue growing by just 7.8% year over year. But there was some robust growth beneath the surface during the fourth quarter specifically, with Mac sales jumping by 25%, wearables by 9.8%, and iPhone by 9.6%. All of those segments caught a boost from Apple's September product launch, which revealed the next generation AirPods, the Apple Watch Ultra, and the iPhone 14.
Apple's services segment, which includes Apple Music, Apple News, and Apple Pay, will remain in focus during 2023 as it's the fastest-growing and most profitable part of Apple's business. But for now, the consumer electronics giant is finding a way to tread water in one of the most difficult economies in recent memory, and that sets up a great opportunity if the broader environment improves in the new year.
The company that keeps on growing
Jamie Louko (Datadog): Datadog has caught the eye of one of the most famous investors in the world: Stanley Druckenmiller. Druckenmiller bought almost 790,000 shares during the second and third quarters, totaling $82 million invested in this application and performance monitoring platform. He's so confident in Datadog that it is now his ninth-largest holding.
It's not surprising that Datadog has caught his eye because the company has been posting stellar results this year. While many software companies have seen demand plummet, customers continue to buy Datadog's tools. In Q3, revenue soared 61% year over year to $437 million. Datadog's cash flow has also continued to shoot higher: Trailing 12-month free cash flow reached $364 million, which is 45% higher than the year-ago period.
Datadog's stable results during this uncertain time should be no surprise. The company's application performance monitoring tools are vital to customers. Imagine running a business without understanding user behavior, reducing application downtime, and monitoring infrastructure performance. That would be pretty hard, right? Datadog provides these tools to 22,200 customers, and considering these abilities are always needed, no matter the economic environment, Datadog has continued to see stable adoption.
According to Gartner's Magic Quadrant, Datadog is the leader in this space. This is likely due to its large (and growing) product suite. The company has over 35 tools, with more likely to come. This makes Datadog the one-stop shop for all application monitoring, performance, and security needs. Given how much free cash flow the company is generating, it will be able to continue investing heavily in product innovation to maintain its top-dog status.
Druckenmiller doesn't seem too concerned with the company's high valuation of 64 times free cash flow, given how high-quality the business is. He is willing to load up on shares now, and you might want to consider doing the same.
The leader in identity and access management
Trevor Jennewine (Okta): Billionaire hedge fund manager Israel Englander tripled his stake in Okta in the third quarter, and he has increased his position fivefold since the beginning of 2022. That buying spree is especially noteworthy because Okta's share price has plunged 70% this year, evidencing Englander's confidence in the company.
Okta specializes in a branch of cybersecurity known as identity and access management (IAM). Its platform leans on artificial intelligence to authenticate users based on context like device, location, and behavior. It then authorizes users based on the permissions granted to them by administrators, ensuring that only the right people can access sensitive applications and data.
In November, IT research company Gartner named Okta a leader in access management, citing more robust product capabilities and a greater ability to execute than any other vendor, including tech titan Microsoft. That recognition highlights the power of neutrality. Whereas Microsoft has a clear incentive to steer customers toward its own cloud infrastructure, Okta engineered its software to be compatible across private data centers, public clouds, and hybrid environments.
Additionally, Okta addresses workforce and customer identity use cases. Its platform integrates with more than 7,000 applications and IT infrastructure providers, allowing businesses to secure products from vendors like Salesforce or even Microsoft. But Okta also provides developer tools that allow businesses to embed identity into custom software. Collectively, its neutrality and broad utility have propelled Okta to the forefront of the IAM market.
The company recently reported solid third-quarter results. Its customer count increased 22% to 17,050, and the average customer spent 22% more over the past year. In turn, revenue climbed 37% to $481 million, and Okta reported non-GAAP (adjusted) earnings of $0.00 per diluted share, a slight improvement from a non-GAAP loss of $0.07 per diluted share in the prior year.
Investors have good reason to be optimistic. IAM is a crucial component of zero-trust security, and digital transformation has made effective cybersecurity an imperative for virtually every business. Okta estimates its addressable market at $80 billion, leaving a long runway for growth. And with shares trading at 6.1 times sales -- a bargain compared to the three-year average of 27.2 times sales -- now is a good time to buy a few shares of this growth stock.
10 stocks we like better than Apple
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of December 1, 2022
Anthony Di Pizio has no position in any of the stocks mentioned. Jamie Louko has positions in Apple, Berkshire Hathaway, and Datadog. Trevor Jennewine has positions in Okta. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Datadog, Okta, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Gartner and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That's why three Motley Fool contributors think Apple (NASDAQ: AAPL), Datadog (NASDAQ: DDOG), and Okta (NASDAQ: OKTA) need to be on everybody's watch lists ahead of the new year. The company sells products that consumers love, it's highly profitable, and it has returned a significant amount of money to shareholders, which flows directly into Berkshire's coffers. But for now, the consumer electronics giant is finding a way to tread water in one of the most difficult economies in recent memory, and that sets up a great opportunity if the broader environment improves in the new year.
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That's why three Motley Fool contributors think Apple (NASDAQ: AAPL), Datadog (NASDAQ: DDOG), and Okta (NASDAQ: OKTA) need to be on everybody's watch lists ahead of the new year. The leader in identity and access management Trevor Jennewine (Okta): Billionaire hedge fund manager Israel Englander tripled his stake in Okta in the third quarter, and he has increased his position fivefold since the beginning of 2022. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Datadog, Okta, and Taiwan Semiconductor Manufacturing.
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That's why three Motley Fool contributors think Apple (NASDAQ: AAPL), Datadog (NASDAQ: DDOG), and Okta (NASDAQ: OKTA) need to be on everybody's watch lists ahead of the new year. Betting big on America's largest company Anthony Di Pizio (Apple): He's widely considered as one of the greatest investors ever, so it seems fitting that Warren Buffett, through his investment company Berkshire Hathaway, would own shares in Apple, America's largest company. Apple's services segment, which includes Apple Music, Apple News, and Apple Pay, will remain in focus during 2023 as it's the fastest-growing and most profitable part of Apple's business.
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That's why three Motley Fool contributors think Apple (NASDAQ: AAPL), Datadog (NASDAQ: DDOG), and Okta (NASDAQ: OKTA) need to be on everybody's watch lists ahead of the new year. And with shares trading at 6.1 times sales -- a bargain compared to the three-year average of 27.2 times sales -- now is a good time to buy a few shares of this growth stock. * 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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18150.0
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2022-12-04 00:00:00 UTC
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This Famed Finance Professor Thinks Meta Platforms Is All Upside. Is He Right?
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AAPL
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https://www.nasdaq.com/articles/this-famed-finance-professor-thinks-meta-platforms-is-all-upside.-is-he-right
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nan
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nan
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Meta Platforms (NASDAQ: META) has suffered an epic collapse over the last year.
The Facebook parent's pivot to the metaverse is on track to cost it $13 billion in operating losses this year, and its ad business has slowed dramatically due to competition from TikTok, Apple's crackdown on ad tracking, and macroeconomic headwinds.
While that's all bad news, what's already happened to Meta stock shouldn't matter at this point. What does matter is if the stock offers a good value at its current price, or if the discounted value of future cash flows is greater than the current valuation. So the best question to ask about the stock isn't "Is the business struggling?" The question is, "Is Meta a good value now?"
One of the brightest and most respected minds in finance and valuation, NYU Finance Professor Aswath Damodaran, the author of several books on valuation, including The Little Book of Valuation, just answered that question with a resounding "yes."
The worst-case scenario
In a recent blog post, Damodaran valued Meta under a "doomsday" scenario.
Damodaran's assumptions started with Meta's trailing-12-month operating income, which appears to be temporarily impaired by macroeconomic headwinds. He also assumed there would be no growth in advertising income, and the business would have 20 more years of life. R&D expenses will continue to be $32 billion a year, Damodaran assumed, and Meta will lose $10 billion a year in reality labs, its division devoted to the metaverse. Finally, Damodaran assigned a 9% cost of capital to Meta as he believes it's in the 75th percentile of risk.
That gives the company a no-growth net income of $26.7 billion for the next 20 years.
Under those circumstances, Damodaran found that Meta's equity is valued at about $259 billion, or $330 billion without reality labs. By comparison, Meta's current market cap is $325 billion, meaning the stock has essentially no downside if you back out the losses from the metaverse business.
At the stock's bottom a few weeks ago, its market cap had fallen all the way down to just $236 billion.
Is Damodaran right?
This isn't the first time the NYU professor has taken a stab at Meta's valuation. In fact, back in February, Damodaran valued the FAANG stock at $346.16 a share, though the stock was trading at just $220 then. That valuation assumed the company would sustain a 40% operating margin, which now seems impossible, given the money it's pouring into the metaverse project.
That exercise also highlights how calculating valuations is often an academic practice as it's hard to predict future cash flows, especially for a company like Meta, which in the midst of a business-model change.
Admittedly, Damodaran's doomsday model is crude as it doesn't assume any changes in the company's operating income for the next 20 years, and the company's business is likely to change in a number of ways.
What we do know is that Meta will probably report a wider loss next year than it will in 2022. Already, the company has told investors to expect losses in reality labs to significantly expand next year, meaning they could reach $15 billion to $20 billion. However, management said that from 2024 on, it would aim to control reality-labs spending so the company can grow overall operating income.
Image source: Meta Platforms.
Facebook's advertising business is also a question mark as the company has clearly been impacted by Apple's ad-tracking changes and competition from TikTok, but there's some good news on this front. Management said on the third-quarterearnings callthat it's lapping the worst of the ad-targeting restrictions so the headwinds from those changes will start to disappear. The company has also been investing heavily in Reels, its TikTok-like short-form video product, and the company expects Reels will begin making a material impact to operating income in the next 12 to 18 months.
Damodaran's doomsday valuation should offer some comfort to Meta shareholders as it's a strong indication the floor on the stock price is high, even if various things go wrong.
While the next year still looks challenging for Meta, the long-term picture looks favorable, especially considering the limited downside at its current price, according to Damodaran.
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
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jeremy Bowman has positions in Meta Platforms. The Motley Fool has positions in and recommends Apple and Meta Platforms. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That exercise also highlights how calculating valuations is often an academic practice as it's hard to predict future cash flows, especially for a company like Meta, which in the midst of a business-model change. Facebook's advertising business is also a question mark as the company has clearly been impacted by Apple's ad-tracking changes and competition from TikTok, but there's some good news on this front. Damodaran's doomsday valuation should offer some comfort to Meta shareholders as it's a strong indication the floor on the stock price is high, even if various things go wrong.
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One of the brightest and most respected minds in finance and valuation, NYU Finance Professor Aswath Damodaran, the author of several books on valuation, including The Little Book of Valuation, just answered that question with a resounding "yes." By comparison, Meta's current market cap is $325 billion, meaning the stock has essentially no downside if you back out the losses from the metaverse business. Facebook's advertising business is also a question mark as the company has clearly been impacted by Apple's ad-tracking changes and competition from TikTok, but there's some good news on this front.
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R&D expenses will continue to be $32 billion a year, Damodaran assumed, and Meta will lose $10 billion a year in reality labs, its division devoted to the metaverse. By comparison, Meta's current market cap is $325 billion, meaning the stock has essentially no downside if you back out the losses from the metaverse business. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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By comparison, Meta's current market cap is $325 billion, meaning the stock has essentially no downside if you back out the losses from the metaverse business. Is Damodaran right? Admittedly, Damodaran's doomsday model is crude as it doesn't assume any changes in the company's operating income for the next 20 years, and the company's business is likely to change in a number of ways.
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18151.0
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2022-12-04 00:00:00 UTC
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1 Green Flag and 1 Red Flag for TSMC's Future
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AAPL
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https://www.nasdaq.com/articles/1-green-flag-and-1-red-flag-for-tsmcs-future
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nan
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nan
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Taiwan Semiconductor Manufacturing (NYSE: TSM), the world's largest contract chipmaker, has been a divisive investment over the past year. The bears argued that cooling sales of PCs in a post-pandemic market, supply chain challenges for smartphones, and other macro headwinds would throttle the growth of the semiconductor sector and curb the market's demand for its services.
The bulls pointed out that TSMC has weathered plenty of cyclical downturns before, and that it would likely remain far ahead of its closest rivals -- Samsung and Intel -- in the "process race" to manufacture smaller and denser chips.
Image source: TSMC.
Yet TSMC's stock remains down more than 30% this year, which suggests most investors are still siding with the bears. Let's see if two recent events -- a green flag and a red flag for this Taiwanese tech giant's future -- can shift that balance.
The green flag: Berkshire's big buy
Last month, Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) disclosed a $4.1 billion stake in TSMC. That makes the chipmaker Berkshire's ninth-largest holding at 1.4% of its entire portfolio.
Buffett hasn't publicly spoken about that investment yet, but Berkshire has only bought a handful of tech stocks throughout its entire history. Its top holding is Apple (NASDAQ: AAPL), which accounts for a whopping 39.2% of its portfolio, while other notable tech plays include Activision Blizzard (1.3%), HP (1%), Amazon (0.3%), and Snowflake (0.3%). Speaking at a recent meeting in Taipei, TSMC Chairman Mark Liu complimented Buffett for his "sharp eye" for good investments.
Buffett usually favors undervalued companies with stable long-term growth and wide moats. TSMC checks all three boxes: Its stock trades at just 13 times forward earnings, it grew its net income at a compound annual growth rate (CAGR) of 17% between 2011 and 2021, and it remains the sole manufacturer of the world's smallest and most powerful chips.
The red flag: Apple's problems in China
TSMC's largest customer accounted for 26% of its revenue in 2021. TSMC didn't specifically name that customer in its latest annual report, but it's widely believed to be Apple. Therefore, the Mac maker's recent problems in China could generate significant headwinds for TSMC's near-term growth.
Last month, violent protests erupted at Foxconn's largest iPhone manufacturing plant in China in response to the facility's rigid COVID-19 policies and unpaid bonuses. Those disruptions have reportedly reduced the plant's November production by more than 30%, which will likely throttle Apple's available supply of iPhones throughout the holiday season.
But that's not all. Other protests subsequently erupted across China in response to the government's draconian "zero-COVID" policies, and that ongoing social unrest could impact Apple's sales across the "Greater China" region, which accounted for 19% of its top line in fiscal 2022 (ended in September). And that, in turn, could take a toll on TSMC.
Does the good news outweigh the bad news?
Berkshire's big buy suggests that TSMC is still a solid investment for long-term investors. However, the chipmaker's heavy dependence on Apple could become a near-term liability amid its recent problems in China.
On their own, I don't think either headline will tilt the balance in favor of the bulls or the bears. I personally believe TSMC's stock will remain stuck in neutral over the next few quarters as investors continue to fret over the PC market's slowdown, Apple's supply chain challenges, and the Biden administration's recent ban on advanced chip sales to China.
But over the long term, I believe TSMC will continue to grow as Samsung and Intel abandon their costly plans to catch up in the process race. TSMC still aims to spend $36 billion on capex this year to ramp up its production of advanced chips, compared to Intel's capex of $21 billion and Samsung's combined capex of $37 billion for its semiconductors and displays.
So if you're looking for short-term gains, TSMC will likely be a disappointing investment. But if you plan to follow Buffett's mantra of buying quality stocks and holding them "forever," then TSMC is still a great long-term buy.
10 stocks we like better than Taiwan Semiconductor Manufacturing
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*Stock Advisor returns as of December 1, 2022
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Leo Sun has positions in Amazon.com and Apple. The Motley Fool has positions in and recommends Activision Blizzard, Amazon.com, Apple, Berkshire Hathaway, Hp, Intel, Snowflake, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Its top holding is Apple (NASDAQ: AAPL), which accounts for a whopping 39.2% of its portfolio, while other notable tech plays include Activision Blizzard (1.3%), HP (1%), Amazon (0.3%), and Snowflake (0.3%). The bulls pointed out that TSMC has weathered plenty of cyclical downturns before, and that it would likely remain far ahead of its closest rivals -- Samsung and Intel -- in the "process race" to manufacture smaller and denser chips. TSMC checks all three boxes: Its stock trades at just 13 times forward earnings, it grew its net income at a compound annual growth rate (CAGR) of 17% between 2011 and 2021, and it remains the sole manufacturer of the world's smallest and most powerful chips.
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Its top holding is Apple (NASDAQ: AAPL), which accounts for a whopping 39.2% of its portfolio, while other notable tech plays include Activision Blizzard (1.3%), HP (1%), Amazon (0.3%), and Snowflake (0.3%). The green flag: Berkshire's big buy Last month, Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) disclosed a $4.1 billion stake in TSMC. The Motley Fool has positions in and recommends Activision Blizzard, Amazon.com, Apple, Berkshire Hathaway, Hp, Intel, Snowflake, and Taiwan Semiconductor Manufacturing.
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Its top holding is Apple (NASDAQ: AAPL), which accounts for a whopping 39.2% of its portfolio, while other notable tech plays include Activision Blizzard (1.3%), HP (1%), Amazon (0.3%), and Snowflake (0.3%). The green flag: Berkshire's big buy Last month, Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) disclosed a $4.1 billion stake in TSMC. I personally believe TSMC's stock will remain stuck in neutral over the next few quarters as investors continue to fret over the PC market's slowdown, Apple's supply chain challenges, and the Biden administration's recent ban on advanced chip sales to China.
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Its top holding is Apple (NASDAQ: AAPL), which accounts for a whopping 39.2% of its portfolio, while other notable tech plays include Activision Blizzard (1.3%), HP (1%), Amazon (0.3%), and Snowflake (0.3%). The green flag: Berkshire's big buy Last month, Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) disclosed a $4.1 billion stake in TSMC. The red flag: Apple's problems in China TSMC's largest customer accounted for 26% of its revenue in 2021.
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18152.0
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2022-12-04 00:00:00 UTC
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1 ETF That Could Turn $200 Per Month Into Nearly $250,000 With Next to No Effort
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AAPL
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https://www.nasdaq.com/articles/1-etf-that-could-turn-%24200-per-month-into-nearly-%24250000-with-next-to-no-effort
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It's been a difficult year for many investors as stock prices continue to slide. But that doesn't necessarily mean that it's a bad time to invest.
Many stocks are priced at a steep discount right now, making it an affordable time to buy. If you load up on high-quality investments now, you could see significant gains when the market eventually recovers.
Exchange-traded funds, or ETFs, can be fantastic options for many investors. And there's one, in particular, that could turn $200 per month into nearly one-quarter of a million dollars with next to no effort: The S&P 500 ETF.
What is an S&P 500 ETF?
An S&P 500 ETF aims to mirror the performance of the S&P 500 index itself. When you invest in an S&P 500 ETF, you'll own a stake in all 500 companies within the index, including behemoth corporations like Amazon, Apple, and Microsoft.
One of the biggest advantages of an S&P 500 ETF is that it's a low-maintenance type of investment. You never need to worry about choosing individual stocks or deciding when to buy or sell. Simply invest a little each month, and the fund will take care of the rest.
The S&P 500 itself also has an impeccable track record when it comes to market volatility. The index has experienced dozens of corrections, recessions, and bear markets over the decades, and it's managed to recover from all of them.
If you're concerned about the current market slump, an S&P 500 ETF can ease your worries. Although nearly all investments are subject to short-term volatility (and nobody can say for certain when the market will recover), this ETF is almost guaranteed to bounce back.
How much can you earn with an S&P 500 ETF?
While there are many different funds to choose from, one of the most popular is the Vanguard S&P 500 ETF (NYSEMKT: VOO). This particular fund has one of the lowest expense ratios among ETFs, charging just 0.03% per year in fees.
Since its inception, this fund has earned a nearly 14% average annual rate of return. However, that number may be skewed high, simply because this ETF was established in 2010 and didn't experience the lows of the Great Recession.
A more realistic return may be closer to 10% per year, on average. This is roughly what the S&P 500 itself has experienced, historically.
If you were investing $200 per month while earning a 10% average annual return, here's approximately how much you could accumulate over time:
NUMBER OF YEARS TOTAL SAVINGS
10 $38,000
15 $76,000
20 $137,000
25 $236,000
30 $395,000
35 $650,000
Data source: Author's calculations via Investor.gov.
To accumulate roughly one-quarter of a million dollars, you'll need to invest consistently for around 25 years. But if you have even longer to let your money grow, you could earn far more than that.
Of course, waiting decades isn't easy. But keep in mind that S&P 500 ETFs are passive investments and require next to no effort on your part. By simply investing as much as you can afford each month, you can build a portfolio worth hundreds of thousands of dollars or more over time.
There is one downside to consider, however: S&P 500 ETFs cannot beat the market. By definition, they only earn average returns. For many investors, that's a worthwhile trade-off for the overall ease of this investment. But if you're looking to earn above-average returns, you may consider investing in individual stocks instead.
S&P 500 ETFs, particularly the Vanguard S&P 500 ETF, have plenty of advantages. While they're not the best for everyone, if you're looking for a hands-off investment that can help you earn a lot of money over time, this ETF could be a smart addition to your portfolio.
10 stocks we like better than Vanguard Index Funds-Vanguard S&P 500 ETF
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*Stock Advisor returns as of December 1, 2022
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Katie Brockman has positions in Vanguard Index Funds-Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Amazon.com, Apple, Microsoft, and Vanguard Index Funds-Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When you invest in an S&P 500 ETF, you'll own a stake in all 500 companies within the index, including behemoth corporations like Amazon, Apple, and Microsoft. However, that number may be skewed high, simply because this ETF was established in 2010 and didn't experience the lows of the Great Recession. By simply investing as much as you can afford each month, you can build a portfolio worth hundreds of thousands of dollars or more over time.
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If you were investing $200 per month while earning a 10% average annual return, here's approximately how much you could accumulate over time: The Motley Fool has positions in and recommends Amazon.com, Apple, Microsoft, and Vanguard Index Funds-Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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S&P 500 ETFs, particularly the Vanguard S&P 500 ETF, have plenty of advantages. 10 stocks we like better than Vanguard Index Funds-Vanguard S&P 500 ETF When our award-winning analyst team has a stock tip, it can pay to listen. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Vanguard Index Funds-Vanguard S&P 500 ETF wasn't one of them!
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What is an S&P 500 ETF? * They just revealed what they believe are the ten best stocks for investors to buy right now... and Vanguard Index Funds-Vanguard S&P 500 ETF wasn't one of them! The Motley Fool has positions in and recommends Amazon.com, Apple, Microsoft, and Vanguard Index Funds-Vanguard S&P 500 ETF.
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18153.0
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2022-12-04 00:00:00 UTC
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Is It Time to Buy the Dow Jones' 2 Worst-Performing November Stocks?
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AAPL
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https://www.nasdaq.com/articles/is-it-time-to-buy-the-dow-jones-2-worst-performing-november-stocks
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Stocks rallied last month as investors reacted to signs that inflation is coming down and that the Federal Reserve could start slowing its pace of interest rate hikes as soon as next week when the Federal Open Market Committee meets.
Of the three major indexes, the Dow Jones Industrial Average (DJINDICES: ^DJI) finished the month up 5.7%, outperforming the S&P 500 and the Nasdaq Composite, as shown in the chart below shows.
^SPX data by YCharts.
However, not every Dow stock was a winner. Two high-profile consumer names were the worst performing of the bunch: Disney (NYSE: DIS) and Apple (NASDAQ: AAPL). Let's examine why each stock fell last month and whether they're worth buying today.
DIS data by YCharts.
1. Disney takes a dive
Disney stock finished November down 8.1% due primarily to a disappointing fiscal fourth-quarter earnings report. The stock fell 13% on Nov. 9 after it missed both top- and bottom-line estimates on both top and bottom lines, and its adjusted earnings per share actually fell even as its theme parks segment benefited from the economic reopening. The company finished fiscal 2022 with a loss of $4 billion in its streaming segment, and investor excitement over Disney+ seems to have fizzled as losses have mounted.
The company followed that up by announcing a hiring freeze, and later in November, Disney surprised investors by pulling Bob Chapek out of the CEO chair and bringing back Bob Iger to serve as CEO once again.
That helped drive a rebound in the stock as Iger is credited with reinventing the company during his earlier tenure, acquiring Pixar, Marvel, Star Wars, and 20th Century Fox. Iger wasted a little time getting back to work, dismissing Chapek's top lieutenants and announcing his intention to restructure the company to put storytelling at the center of the business, giving investors reason to buy into the recovery.
2. Apple shows some cracks
Apple has outperformed most of the tech sector this year as its business has generally been unaffected by recessionary fears, but the iPhone maker lost 3.5% in October, underperforming the broad market. At the beginning of the month, reports emerged that Apple was pausing hiring in a number of roles outside of research and development (R&D) in response to the weakening economic environment.
A few days later, Apple said it was experiencing production issues at a factory in Zhengzhou due to COVID restrictions. Those challenges carried on for the duration of the month as the company was later confronted with worker protests at the Foxconn plant. Apple said shipments of its iPhone 14 Pro and Pro Max would be delayed and customers would experience longer wait times for new products.
Analysts lowered their estimates over the course of the month as the production delays lingered and Apple was confronted with worker protests at the Zhengzhou plant.
Time to buy Disney and Apple?
Disney stock has plunged over the last year, but it has a good chance at a course correction under Iger. The company has many components for success, including a wealth of intellectual property and a unique flywheel model where distinct businesses reinforce one another.
Even before Iger's arrival, management said that the losses in the streaming business would improve as the company launches an advertising tier and pulls back in marketing. Iger has also said he wants to sharpen the streaming service's focus on profitability.
If Disney can improve its results in streaming while managing the decline in the linear TV business, the stock should outperform.
On the other hand, Apple is coming to the recessionary environment after a streak of outperformance. Year to date, the company has outperformed the Nasdaq Composite, but analysts are expecting slow growth in its new fiscal year, especially now that the company is facing supply chain issues.
Apple is coming off a strong fiscal fourth-quarter earnings report, and its consumer franchise looks as strong as ever. However, with growth expected to be temporarily impaired and the economy potentially sinking into a recession, there are better options than Apple for investors right now, though its long-term prospects remain solid.
Find out why Walt Disney is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Walt Disney is on the list -- but there are nine others you may be overlooking.
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Jeremy Bowman has positions in Walt Disney. The Motley Fool has positions in and recommends Apple and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two high-profile consumer names were the worst performing of the bunch: Disney (NYSE: DIS) and Apple (NASDAQ: AAPL). That helped drive a rebound in the stock as Iger is credited with reinventing the company during his earlier tenure, acquiring Pixar, Marvel, Star Wars, and 20th Century Fox. Iger wasted a little time getting back to work, dismissing Chapek's top lieutenants and announcing his intention to restructure the company to put storytelling at the center of the business, giving investors reason to buy into the recovery.
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Two high-profile consumer names were the worst performing of the bunch: Disney (NYSE: DIS) and Apple (NASDAQ: AAPL). The company followed that up by announcing a hiring freeze, and later in November, Disney surprised investors by pulling Bob Chapek out of the CEO chair and bringing back Bob Iger to serve as CEO once again. Year to date, the company has outperformed the Nasdaq Composite, but analysts are expecting slow growth in its new fiscal year, especially now that the company is facing supply chain issues.
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Two high-profile consumer names were the worst performing of the bunch: Disney (NYSE: DIS) and Apple (NASDAQ: AAPL). Disney takes a dive Disney stock finished November down 8.1% due primarily to a disappointing fiscal fourth-quarter earnings report. Apple shows some cracks Apple has outperformed most of the tech sector this year as its business has generally been unaffected by recessionary fears, but the iPhone maker lost 3.5% in October, underperforming the broad market.
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Two high-profile consumer names were the worst performing of the bunch: Disney (NYSE: DIS) and Apple (NASDAQ: AAPL). Even before Iger's arrival, management said that the losses in the streaming business would improve as the company launches an advertising tier and pulls back in marketing. Year to date, the company has outperformed the Nasdaq Composite, but analysts are expecting slow growth in its new fiscal year, especially now that the company is facing supply chain issues.
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18154.0
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2022-12-03 00:00:00 UTC
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Stocks to Be Thankful for and Stocks to Avoid
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AAPL
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https://www.nasdaq.com/articles/stocks-to-be-thankful-for-and-stocks-to-avoid
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In this podcast, Motley Fool senior analysts Ron Gross and Jason Moser discuss topics including:
Humble pie, i.e., stocks they were wrong about.
Stocks they are thankful for.
Turkey stocks to avoid.
Financial topics they really hope don't come up this holiday season.
In addition, we revisit our conversation with Scott Galloway, author of the best-selling book Adrift: America in 100 Charts, and discuss a potential rebranding for nuclear energy, as well as which CEO has created the most shareholder value.
Finally, Jason and Ron share two stocks on their radar: Ametek and Taiwan Semiconductor.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Walmart
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Stock Advisor returns as of October 26, 2022
This video was recorded on Nov. 25, 2022.
Chris Hill: A Thanksgiving tradition unlike any other. Motley Fool Money starts now.
Danny DeVito: Everybody needs money. That's why they call it money.
Chris Hill: From Fool global headquarters, this is Motley Fool Money. It's the Motley Fool Money radio show. I'm Chris Hill. Joining me in studio, Motley Fool senior analysts Jason Moser and Ron Gross. Good to see you as always, gentlemen.
Ron Gross: Hey
Jason Moser: Hey, Chris.
Chris Hill: It's our Thanksgiving special. We will give thanks for some stocks, we'll call out a few turkeys, we'll revisit a conversation with best-selling author Scott Galloway. Yes, we got a couple of stocks on our radar. But it's our Thanksgiving special, which means only one thing, Dan. That's right. It's the one show per year where we actually break out the special effects.
Ron Gross: Gets me every year. I don't know.
Chris Hill: Let's start, Jason, with a serving of humble pie, because what's Thanksgiving without pie? What is a stock or a business story this year that you were wrong about?
Jason Moser: Well, we all need this. I think that you've made an incredible leap as an investor when you can appreciate and actually look forward to making mistakes because you know that you will get better from them. Chris, my humble pie this year, AppHarvest, a company that I've talked about before on this show. A company that I own, a company that I've recommended. It has been a very, very disappointing performer since I recommended it and purchased it. To be clear, and I want to make sure everybody understands this, I am still keeping my shares, but this is one I clearly got in on far, far too early. For those who are unfamiliar, AppHarvest is in the business of controlled environment agriculture, ultimately growing or building these indoor farms in order to try to solidify and stabilize our food supply.
We saw that really take a hit here over the last few years. I do like what the company is doing, but this was a company that was brought to the public markets via SPAC and we know how many of those SPACs have turned out. SPACs brought companies to us at a far earlier stage in their life cycle than probably we would normally see them. It was exciting, but it was also very easy to become a bit separated from the potential of where the business could go in time versus where it actually was at that present day moment. For me, the lesson learned, recognize where a business really is, what reasonable financial expectations look like. It's not to say can't or won't work out, but it typically will take a little bit longer. Chris, SPAC me once, shame on you. SPAC me twice, shame on me.
Chris Hill: Ron, what form does your slice of humble pie take?
Ron Gross: For this one, I'm going to humbly choose the worst-performing stock in the Instant Income portfolio, which is a portfolio of dividend-paying stocks that I put together each year for our Total Income service. Walker & Dunlop, WD, is down about 40% since this portfolio was created only eight months ago. It's likely, I think, to be fine over the long term, but this year has really been brutal. They are a commercial real estate financial services company with interest rates increasing and real estate falling. They've just taken it on the chin quite frankly. As CEO Willy Walker said on the most recentearnings call in this rising rate environment, every deal is under pricing pressure, mortgage servicing has been hit especially hard. As I said, I think it's going to be fine. Again, as Willy Walker said, the pricing pressure is solely due to interest rate increases and it will abate the moment rates stabilize. Only 12 times forward earnings, 3% yield, I humbly suggest, I think we're going to be OK.
Chris Hill: My humble pie is it's not one stock, it's really just the idea of am I being very wrong in 2022 about former CEOs returning to their original jobs. This happened earlier in the year when Howard Schultz came back to Starbucks. I was saying no, that's not going to happen, and recently, when Bob Chapek at Disney came under fire, one of our coworkers said, do you think Bob Iger would ever come back and be CEO? I said no. He said no, what percentage chance would you give? I said zero percentage.
Jason Moser: Do you know that he found you?
Chris Hill: Bob Iger is coming back? Yeah, fortunately it's pie, it tastes delicious. Flipping from humble pie to stocks we're thankful for. Jason, what do you got?
Jason Moser: Well, I'm thankful this year gave me the opportunity to buy shares in a company I have long admired, the Home Depot. We always talk about our trips to better our homes. Home improvement is a massive market. Nothing really, I think could get in the way of that. Near-term macro concerns, I think, have hit virtually every corner of the market in some capacity. Even the biggest market leaders are feeling the pressure. When you look at Home Depot, those shares are down close to 25% year to date and trailing the market. But I actually think that has represented an opportunity. There are big tailwinds, obviously, in an aging, existing housing market, you get over half the homes in the U.S. today are 40 years or older, housing supply that still needs to catch up with demand. Home Depot, to me, just stands out as, it's an investment that I'm going to enjoy owning for many, many years to come.
Chris Hill: Along those lines, Ron, I am also thankful for a stock that I finally bought this year.
Ron Gross: Yes.
Chris Hill: Actually two stocks that I finally bought, Berkshire Hathaway and Nike.
Ron Gross: A shares.
Chris Hill: Not the A shares.
Ron Gross: It's still worth it. Still the same, it's all good.
Chris Hill: My pockets are not that deep. But finally, after years of listening to you talk about Berkshire Hathaway finally bought some B shares. Jason, for all all of the times you've talked about Nike, when it took a hit earlier this year, I thought this seems like an opportunity and I'm not going to let this one pass me by. Ron, what about you?
Ron Gross: I wanted to pick a stock that I've recommended at the Fool and that I also own personally. When I scanned down the list of my stocks to see what my biggest winners have been, Costco jumped out at me with a 1,000% return for me personally. Listeners will remember that I've spoken about Costco many times, even recently on this show. Lots of admiration for former CEO and founder Jim Sinegal, created an amazing corporate culture. Current management has continued that legacy, they're relentless about the value proposition for their customers, especially that $1.50 hot dog and drink, which isn't changing anytime soon. I love the membership model, I love the pricing power, I love the 90% retention rates they enjoy. I first bought Costco back in 2008 when I first recommended it in our Inside Value service for those that remember Inside Value. Lots of nostalgia here for me, plus not too shabby of a return.
Chris Hill: Bill Mann mentioned recently on the show talking about Apple and just obviously, when you think long term about Apple, you're thinking about Steve Jobs. But Bill pointed out, you look at the stock appreciation under the leadership of Tim Cook, and it far outweighs what the stock did in terms of Steve Jobs and his leadership. The same thing with Costco, Jim Sinegal set the tone, did such a great job leading that company. Craig Jelinek.
Ron Gross: Yes.
Chris Hill: Under his leadership as CEO, the performance of Costco shares really pretty phenomenal.
Ron Gross: Yeah, he took over something that was already at this wonderful business model. He didn't screw it up. He took it forward. We always say the stock's not cheap but yet the stock keeps moving higher. Perhaps we're even underestimating where a company as great as Costco is should be trading.
Jason Moser: Ron, quick question, just use your personal take on the matter.
Ron Gross: Yes.
Jason Moser: I'm sure probably you saw the headline recently where Sam's Club is taking the price of their hot dog and soda down to what? $1.38, I think.
Chris Hill: $1.38.
Jason Moser: They're one-upping Costco's $1.50.
Ron Gross: I would need to do a taste test. I bet the beef is inferior.
Jason Moser: If it is even beef, maybe they're turkey dogs.
Chris Hill: More of our Thanksgiving special after this, put down the leftovers and stay right here. You're listening to Motley Fool Money.
Chris Hill: As always, people on the program may have interest in the stocks they talk about and The Motley Fool may have formal recommendations for or against. Don't buy or sell stocks based solely on what you hear. Welcome back to Motley Fool Money, Chris Hill here in studio with Jason Moser and Ron Gross. It is our Thanksgiving special. Thank you for listening. Thanks for spreading the word on social media for rating and reviewing Motley Fool Money on whichever platform you're listening. It's the thing that helps other people find the show and we appreciate it.
Thanks for doing that. Thank you to our radio stations across America that broadcast our show every week and we're thankful for listeners like Rich Smith who dropped an email to say the following, "Thank you for all the content you provide. It means a lot more to me this year because I'm currently serving overseas. I'll be spending Thanksgiving 2022 with my military family. But seeing the new episodes of Motley Fool Money show up in my podcast feed helps to pass the time a little more easily. Shout out to everyone else serving our great nation and away from their loved ones. Be safe, take care of each other, and stay connected. Sincerely, Rich."
Jason Moser: Such a great note, thank you, Rich.
Ron Gross: Thank you so much for your service as well.
Chris Hill: Absolutely. Let's get back to using the sound effect more with turkey stocks. This is more forward looking. This is a stock to avoid and I want to point out, I looked at the list of stocks we talked about on last year's Thanksgiving special. We did right by the dozens of listeners because last year we said stay away from Peloton, stay away from Zillow, and Avis Budget Group. All three of those stocks down in the past 12 months and down worse than the S&P 500. I feel like we did our listeners are solid. Ron, a turkey stock that people should stay away from?
Ron Gross: It's got to be Bed Bath & Beyond, Chris. This is a stock you and I have owned on and off over the past year or 18 months or so, I think we may even have made some money on it.
Chris Hill: A little bit.
Ron Gross: Thanks to the WallStreetBets crowd perhaps.
Chris Hill: Thank you. Shout out to the Reddit community.
Ron Gross: But now I think it's permanently impaired and I think it's time to stay away. I know it's tempting to take a shot at a stock when it's $3 a share when it was at 30 sometime over the last year. Even if it gets back to 10, you'll hear people say that's a triple. How hard could it be to get back to 10? Well, Chris, I think it's likely more of a zero than it is a 10. The meme-stock folks, notwithstanding, I can't predict that. My original hope was that new CEO Mark Tritton was going to turn this around. He did not. He went in all-in on private label.
He did sell some off some non-core assets, which I appreciated, but his merchandising strategy, which he was really famous for over at Target, just really fell flat. He is no longer at the company. They're closing 150 stores. They're reducing costs. Moving thankfully to a national brand merchandising strategy, trying to firm up relationship with vendors. But most importantly, it's trying to firm up its balance sheet so it has time to execute the turnaround, $3.4 billion in debt; bankruptcy is not out of the question here. It's a real challenge. We have to keep an eye on it. It's too risky for me. I think I'm going to stay away. I recommend others do as well.
Chris Hill: There was so much there, Jason. Yet I think the pull quote for people online is going to be, "I think the business is permanently impaired." It is tough to bounce back from permanently impaired. What about you? What's the stock to avoid?
Jason Moser: Yeah, I know this will probably incense a few of the diehards in my direction, but I don't know, to me, Tesla is one, I've never owned Tesla shares before. I mean, obviously it's had a tough year, stock's down somewhere in the neighborhood of 50%, but it seems like everything is down 50% this year. I looked at Tesla. The valuation for me has never really fully made sense to me, it's 10 times the market cap of Ford, for example, yet Ford brings in double the revenue. Now, I understand, of course, that will change. Tesla is growing. But we always talk about, well, is it a car company? Is it a battery company? Is it a power company? Maybe it's going to be a metaverse.
Ron Gross: It can't do that. It's a gum.
Jason Moser: I personally, this really boils down for me to leadership. It really boils down to I just do not feel good about all of these things that Elon Musk is doing, the Twitter purchase. He got him SpaceX, the Boring Company, whatever else he wants to do. Most recently testifying in court that he doesn't want to be a CEO at any company. Like it seems to me very difficult to have any faith that you can really trust what this guy is going to do. I'm not saying that Tesla is permanently impaired. Don't get me wrong there. But it does feel like to me there are a lot of catalysts on the horizon in the near term, at least, that could take this stock lower. Again, it's not to say don't own it if you like it; great, good on you. But it just feels like things are going to get worse before they get better.
Chris Hill: First of all, I love the voice that you did because that is the voice I always imagine when people like you don't get it man, you're not looking at this company the right way.
Jason Moser: Bitcoin. I didn't get Bitcoin and you just don't get it.
Chris Hill: Second of all, on a more serious note, I'm just looking at my own notes and I just jotted down before coming in the studio, I just wrote down for a stock to avoid, I wrote Tesla, and then a hyphen and then I just wrote, the CEO is very distracted. On a more serious note, I have to go back to something Bill Mann said recently on the show about management. He was talking about small businesses and how he looks at management and how important that is when a business is smaller.
Then as the business grows, he continues to look at management, but he looks more at, well, what is the team underneath, in some cases, a founder, a CEO, that sort of thing and that's the thing that I look at when I look at Tesla. There are other companies, too, I don't want to just single out Tesla, but there are. Tesla is one of those companies when I just look at and I think, well, what is the bench strength? Who are they relying? Because, it really is true Ron, as we begun, we were talking earlier about Apple. Part of what enabled Steve Jobs to do what he did was he had an amazing operator in the form of Tim Cook, who he could rely on for all of the operational parts of the business. Tesla, I think one of the best things Musk could do, not necessarily step down as CEO, but just set up a structure where he's delegating a lot more.
Jason Moser: Delegating for sure, but make no bones about it. This is his company and all you have to do is listen to the trial going on now about his pay package where they basically said we needed to figure out what we're going to do to keep him because he's the company and if he walked away, we'd be in trouble.
Ron Gross: Maybe if he steps down, they can bring in Bob Iger.
Chris Hill: Where do you think we go from here? I know we are a month away from our 2023 preview, but just thinking about management, it really does seem like everything is on the table, both in terms of the question of whether or not we go into recession and what challenges businesses have, what the leaders of these businesses are dealing with. It seems like, I guess where I'm going with this Ron is it seems like a particularly rough time to be a public company CEO.
Ron Gross: Oh, yes. Taking away guidance, hurting people with poor guidance, not having good visibility into your own business. After all, who should have more visibility than the leader of a company. It's a rough time for sure. Supply chain disruptions notwithstanding, that even makes it even worse.
Chris Hill: All right, before we go to break, something we started doing a few years ago. A little something I like to call it not at the table. Just a business or investing story you're just hoping does not come up this holiday season, Ron.
Ron Gross: All things crypto. Now, last year when everyone thought they were a crypto genius making money on everything from Dogecoin to digital pictures of apes. I especially didn't want to talk about it then. I don't want to talk about that now, even though those same people have wringing their hands saying, oh gosh, what happened? There is a lot of real people losing a lot of real money. It's not that funny, but I just don't want to go there. Leave it off on my table.
Chris Hill: I'm looking at my notes, Jason, I just wrote down one word, crypto. What about you?
Jason Moser: Well, crypto definitely comes to mind. It's not something where I consider myself an expert by any means, but I sure as hell, don't want to talk about it either. People are going to think I'm piling on here, but maybe not Elon Musk just for a day? He bought Twitter, they closed the deal, he owns it now, he's tweeting all the time and that's great and even more so than usual. I think there's probably a relation.
Chris Hill: There is.
Jason Moser: How many tweets he offers out a day versus a decline in Tesla shares.
Ron Gross: Crypto link and they were there with him as well.
Chris Hill: All things lead back to Musk.
Jason Moser: I'm sure he's going to do something in the next couple of months. It's going to warrant another headline and us to talk more about, oh, can you believe what he's doing now? But let's just, one day, let's give it a rest.
Chris Hill: Yeah. I don't know that your wish is coming true.
Jason Moser: At my house, it will.
Ron Gross: We just got to turn all things over to Charlie Munger. Charlie, what do you think about crypto? Charlie, what do you think about Tesla? Charlie, what do you think about Musk? Just whatever Charlie says.
Chris Hill: Is there a chat? He's not on Twitter, but is there someone who's just like tweeting out Mungerisms?
Ron Gross: Pretty sure there is.
Jason Moser: Yeah, there's other Mungerisms.
Chris Hill: All right, Jason Moser, Ron Gross, guys, we'll see you later in the show for stocks on our radar. But up next, we got a conversation with best-selling author Scott Galloway. Stay right here. You're listening to Motley Fool Money. Welcome back to Motley Fool Money, I'm Chris Hill. Scott Galloway is a professor at the NYU Stern School of Business, host of a popular podcast, and the author of several best-sellers, the latest of which is Adrift: America in 100 Charts. Earlier this fall, I caught up with Galloway and started the conversation by asking how he got the idea for his new book.
Scott Galloway: Well, I'm fascinated by charts and trying to communicate information with images and visuals. We've had an alphabet for 1,500 years, but we've been interpreting actions and taking instruction through images for tens of thousands, whether it's paintings on cave walls, or trying to figure out when to plant the crops based on the height of the sun in the sky. We can process information communicated through visuals 6 to 60 times faster. I've always overinvested in everything I've done in finding someone exceptionally creative to help display information visually I would say with everything we put out -- a podcast, well, that's actually not true, a podcast -- but a book, a video, I would say, can we say this with an image as opposed to words? We produced several thousand images across our body of work over the last decade, and I thought if you were to try and pick the 100 most illuminating or shocking or insightful, and then group them or cluster them into themes that told a story, how would you do it? There's a narrative, it's basically, the book is laid out, a chart then a page of narrative, then another chart and tries to tell a story around, A) some of our biggest problems, and then I saved the last chapter for what I think are some potential solutions.
Chris Hill: The process you just described reminds me a little bit of a documentary filmmaker who has, in some cases, 70, 80 hours of footage and tries to distill it down to maybe 90 minutes or two hours. How challenging was the process of getting it down to 100 charts? Because certainly, if I was your publisher or your publicist, I would very much be focused on a nice round number like 100.
Scott Galloway: Yeah, it's definitely the phenomenon. If I had more time, I would have written you a shorter note. The hard part wasn't what to include, it was what not to include. We literally have several thousand charts. I sort of backward integrated, and I said, what do I think are the biggest issues facing America and the people aren't, or they're underreported or if you will, many of them. Then, which charts best illuminate the issue? But the hardest part is finding that narrative in that arc, that story arc that tells a story with them, and then trying to bring it all together, that's the hard part. The hard part is a clustering and the sorting. You can find the ingredients, but somebody really intelligent figured out, oh, chocolate and peanut butter actually go really well together.
That was the hardest part. This was fun, this stuff is fun. Writing a book is the hardest thing I do professionally. There is supposedly a hormone that comes over women right after childbirth that gives them amnesia, otherwise, they would never have more kids because it's so painful and unpleasant. I think there's a similar process with writing a book, this is my fourth book, about halfway through every book you think, why the heck did I agree to do this again? Right now is the euphoria stage, you get to the end of the book, like never again, I get to speak to smart people like you, I get to have fun, people are nice to me on Twitter and LinkedIn, and all of a sudden I can feel that amnesia washing over me, and already we're like, "What's the next one?" We'll see.
Chris Hill: When I think about your first book, which is about Amazon, Apple, [Meta's] Facebook, and [Alphabet's] Google, as you were writing this one, I don't want to say a North Star but was part of the process of putting this book together, looking back at that first book about big tech and essentially saying, I want to update what I wrote before?
Scott Galloway: There are some similarities, for example, in The Four, my publisher didn't want charts. The conventional wisdom when you put charts in a book, it feels like a textbook, and it won't sell. We said no, and I think we have 30-50 charts in The Four. Just think sometimes it's just much more illuminating to show the dominance of these companies graphically. The major contrast though versus The Four is, I started The Four as a love letter to these companies. They are the largest recruiter out of my class at Stern. I have a decent amount of economic security because I've owned their stocks for a long time. I love their products, and then as I really dug into the research and marinated in the data around these companies, the book turned more often to a cautionary tale. By the end of writing the book for a moment, the day you finish the book, you feel for a few minutes, you know more on that topic than anyone in the world and then a few minutes later you don't, because things change.
But I felt like I was the kid who could see dead people and that is I thought these guys are scary, people don't realize. You people don't remember when I wrote The Four in 2017. The only debate about The Four was who's going to be president, Jeff Bezos or Sheryl Sandberg? The general assumption was Sheryl Sandberg was the lock on for governor of California and then going to be Bloomberg's running mate and then going to be president. We were just all so enamored with these companies, including Mark Zuckerberg. I generally, for a moment, I'd like to think I saw the externalities a little bit sooner than some other people just by looking at the data. This book, Adrift: America in 100 Charts, I started out very pessimistic, polarization, failing young men, income inequality. There's just some rise of the shareholder class, decline of the middle class.
But by the end of the book, I felt much more optimistic because I think one of the major messages I've tried to get across in the book is the biggest problems we're facing are of our own making and we can absolutely unmake them. I have a chapter in the book called "The World We Made." If you look at the things we have faced down, if you look at the things we have pushed back on, if you look at the things, really bad ideas that we have defeated, there's nothing we're facing now that we can't defeat. There's this great photojournalist, I think her name is Maria Amolo. She's colorizing World War II photographs, and there's this wonderful photograph of landing craft, an Allied landing craft that it's front gate has just dropped, and there are a couple of dozen young men, their average age was 26, their average wage was $800 a month after inflation, wading toward Omaha Beach.
Two of three of those men would not leave that beach alive. I imagine them turning around and somehow through some sort of space and time, looking like metaverse, wormhole, can see what's going on in our lives. We said, "Oh my gosh, we're facing income inequality, we're facing polarization in our media." Them going, I can't imagine they wouldn't say, "You can't fix that? Look what's waiting for me on the beach." Look what I'm about to sacrifice and overcome, whether it's coming up with vaccines that saved 1 [million] to 2 million American lives by most estimates, no one's waiting in line for Russian or Chinese vaccines. Whether it's 50% of global philanthropy is sponsored by American organizations, and we've taken world poverty down. The World Health Organization in 1970 said, "Let's commit to cutting in half in 40 years." They cut it in half in 20 years, and then they cut it in half again. Most of this has been American-led. I actually came out of this book, started at half empty, started at half-full, come out of the book actually quite optimistic about America and our ability to face down these challenges.
Chris Hill: I was going to say you end this book on a very hopeful note. For anyone who might be thrown off by the word "adrift" in the title. You end the book with I think a great deal of optimism. As you touched on recommendations for specific remedies, things like simplifying the tax code. The one that really caught my attention was rebranding nuclear. I'd love to have you share a little bit more about this because I think this, among other things, relies on your expertise as a professor of marketing. But when I was reading that, I thought, oh, yeah, nuclear power really could use a rebrand.
Scott Galloway: Well, think about Hollywood and how it portrays electric vehicles or wind and solar. These are generally like the ultimate boyfriend in a Hallmark Channel movie is a guy who owns a solar farm or installs solar panels. So our heroes are innovators coming up with electric vehicles. Think about Hollywood and nuclear power, start with Monty Burns and the Simpsons, the evil guy who owns the nuclear power plant. Or there's that incredible docudrama, Chernobyl. Or there's The China Syndrome with Jack Lemmon where we're going to burn a hole through. Hollywood has done a great job of basically like Nazis, then South Africans during apartheid. They always find a bad guy then the Taliban and nuclear. Nuclear is the corporate bad guy, maybe only second to tobacco executives.
I'm not an expert on energy, but it strikes me that if you look at the fact that one power plant or one reactor can power a city the size of Philadelphia, when you look at the actual number of fatalities stemming from 50 or 60 years of nuclear, when you look at the fact that we are arguably funding a war in Ukraine with fossil fuel dependence, then you also quite frankly, just look at the relative efficiency or inefficiency of some of the cleaner, sexier technologies, wind and solar. Just how much of it we'd have to build to replace fossil at the rate we want. I would argue that most data leads you to any serious conversation around the type of pace and cadence we need to establish to turn back climate change has to involve a sober conversation around nuclear. That's not to say there aren't risks.
That's not to say there aren't externalities, but the emissions, I think the total nuclear fuel spent from US nuclear power plants could be put in some encasing six feet high and cover a soccer field. Now it's dangerous stuff and you got to be really careful with it, but that's nothing, I believe, compared to the emissions of most other, especially fossil fuels. Some very bright people including Bill Gates and some people I really respect are saying, yeah, let's start calling it elemental energy because there's some interesting conversation now around whether we put up plans to mothball some plants in California, Germany's is thinking maybe they don't unplug their plants. But I think nuclear and the advances in nuclear are really interesting given some of this new technology where you can have a mini plant the size of a Winnebago that can power a fairly sizable town, or even something the size of a backpack that can power a neighborhood. I'm actually really excited about nuclear. I think it offers a solution. Sometimes the most obvious solutions are right in front of you.
Chris Hill: Bill Gates is someone you referenced in an article you wrote recently for The Atlantic entitled "America's False Idols," really about tech entrepreneurs and one of the things that caught my attention in the article was the number of times a company founder lists his name in the S1 filing, which seems like it might be a new exercise for investors to just go through the S1 and see how many times someone like Adam Neumann lists himself in the IPO paperwork. I'm curious though, Scott. If you look at the follow-on leaders of companies differently, if you look at someone like Tim Cook, differently than Steve Jobs or Andy Jassy, different from Jeff Bezos because they don't have everything that comes with being a founder attached to them and instead they are an operator.
Scott Galloway: Yeah. There's a lot there, the idolatry of innovators. By the way, if I wrote that article again, I probably wouldn't include Bill Gates in that imagery because actually Bill Gates is doing really good work and I have a lot of admiration for him and I think we could do worse than have the wealthiest people in the world with the same foci as Bill Gates. But anyways, having said that, the charismatic storyteller leader has been a key component of any of these companies that have accelerated from zero to half-a-trillion dollars or more. That is their ability to articulate an incredible vision, whether it's Steve Jobs and his showmanship or Jeff Bezos, 1997 investment letter where you read the thing and you just want to buy shares. Or Adam Neumann, who I've been on stage interviewing before, who's just incredibly charismatic. You just want to be around him and a part of what he's building. That ability, that competence of a CEO to articulate a really compelling vision such that they attract cheap capital.
Basically, to use another World War II reference, overwhelm the enemy with just brute strength. That's what capital is. Typically, the company in any sector that has access to the most capital, the cheapest capital, that's the odds-on favorite to win. A really compelling CEO who can raise a lot of capital well ahead of the curve and pull the future forward with that capital to combine amazing things, plans, property, IP, people, wins. What's unusual about, you brought up Tim Cook, he's an exception and Tim Cook has added more shareholder value than any individual in history and people might say, well, Steve Jobs did take a company from 0-300 billion was more difficult, but nobody has taken a company from 300 billion to 2.5 trillion.
Tim Cook has added $2.2 trillion in shareholder value. No one has ever done that, accomplished that. He's a supply chain guy. I don't know if it says as much about the difference in CEOs because I still think at the end of the day they are spokespeople. When you listen to Tim Cook in his own way, he just reeks of credibility and integrity and the performance is just so outstanding. I think the jury is still out on Andy Jassy. I don't know if he brings the same level of compelling vision storytelling as a Jeff Bezos. I think that's still TBD. But I think Elon Musk weaponizing or leveraging whatever the term is, Twitter with 90 million followers and as a result, spends almost zero on traditional marketing and General Motors has to spend $2 billion. The storytelling visionary, charismatic CEO has become the criteria for a CEO.
They've become our new heroes. We have an idolatry and specifically tech CEOs, every third year Times' Person of the Year, just picks the richest tech person. I think it's a phenomena talking about the book, the Idolatry of Innovators, whose nations become wealthier and more educated. Their church attendance and reliance on a superman goes down, but we need new idols. We need to look to people who can answer the unanswerable. Technology is the closest thing we have to mysticism or magic or spirituality because my iPhone can do amazing things. I have no idea how it works. Steve Jobs is the information-age Jesus Christ and I would argue, Elon Musk is taking that mantle. It leads to some very unhealthy places. These firms aren't regulated the same way other firms are regulated and these individuals are given a wider berth than any leaders in history, unfortunately, I think it wallpapers over things such as teen depression or organizing insurrection. My last point, I'll stop.
There's an illusion of complexity that's fomented by these companies that these are big problems we can't figure out and yet, you remove one account from Twitter and 30%-60% of election misinformation goes away in one night. Amazon gets critic bombed on their Lord of The Rings series where people are showing up and making incendiary comments and fake comments. They close the comments section down, they use AI, they enforce identity. They post it 48 hours later and the comments are legitimate and have more veracity, so they figured it out in 48 hours. But Meta and Google throw up their arms and say these problems are too big. No, they're not. We're not talking about the realm of the possible, we're talking about the realm of the profitable. They create this illusion of complexity to try and stave off what are fairly obvious solutions and actions they should take.
Chris Hill: The book is Adrift: America in 100 Charts. It is out now and available wherever you find books, so pick up a copy. Scott Galloway, always great talking to you. Thanks so much for being here.
Scott Galloway: Chris, thanks for your good work.
Chris Hill: After the break, Ron Gross and Jason Moser are back with a couple of stocks on their radar. This is Motley Fool Money. Welcome back to Motley Fool Money, Chris Hill here in studio with Jason Moser and Ron Gross. This is our Thanksgiving special, we have just enough time for radar stocks. Dan is not going to hit you with a question. That's how little time we have. Ron, what's on your radar?
Ron Gross: Going back to Taiwan Semiconductor, TSM, pure-play semiconductor foundry. Shares are almost 25% cheaper versus the last time it was on my radar stock on March 18th. Big news is that Warren Buffett's Berkshire Hathaway disclosed the purchase of $4 billion of Taiwan Semi stock. China global economic slowdowns are the main risks here, but it looks cheap to me. Plus you get a 2.2% dividend yield.
Chris Hill: Jason Moser, what are you looking at?
Jason Moser: Yeah. It's the $30 billion market cap company you've never heard of: Ametek. That's right, ticker A-M-E. Ametek is a global manufacturer of high-tech industrial solutions that play an important role in many important and growing markets. They generate revenue through products marketed and sold via electronic instruments and electromechanical. Think thermal management systems, Dan, think things like precision manufacturing systems. They serve industries like semiconductors, aerospace and defense, healthcare. Their primary strategy is growth via acquisition: identifying small leaders in small niche markets, acquire them, bringing them under their umbrella and maximize those efficiencies, grow the business.
Ron Gross: I've never heard of this company. Dan, what do you want to add to your watch list?
Dan Boyd: I'm not entirely sure that Jason's company is real. So I'm going to have to go with Taiwan Semiconductor.
Chris Hill: That's going to do it for this week's Motley Fool Money radio show. The show is mixed by Dan Boyd. I'm Chris Hill. Thanks for listening and we'll see you next time.
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. Chris Hill has positions in Alphabet (A shares), Alphabet (C shares), Amazon, Ametek, AppHarvest, Inc., Apple, Costco Wholesale, Home Depot, Nike, Starbucks, Taiwan Semiconductor Manufacturing, Target, and Walt Disney. Dan Boyd has positions in Amazon, Berkshire Hathaway (B shares), Costco Wholesale, Walt Disney, Zillow Group (A shares), and Zillow Group (C shares). Jason Moser has positions in Alphabet (C shares), Amazon, AppHarvest, Inc., Apple, Home Depot, Nike, Starbucks, and Walt Disney. Ron Gross has positions in Amazon, Apple, Berkshire Hathaway (B shares), Bitcoin, Costco Wholesale, Meta Platforms, Inc., Nike, Starbucks, Taiwan Semiconductor Manufacturing, Target, and Walt Disney. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), Bitcoin, Costco Wholesale, Home Depot, Meta Platforms, Inc., Nike, Peloton Interactive, Starbucks, Taiwan Semiconductor Manufacturing, Target, Tesla, Walker & Dunlop, Walt Disney, Zillow Group (A shares), and Zillow Group (C shares). The Motley Fool recommends AppHarvest, Inc. and Walker & Dunlop, Inc. and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), short January 2023 $92.50 puts on Starbucks, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In addition, we revisit our conversation with Scott Galloway, author of the best-selling book Adrift: America in 100 Charts, and discuss a potential rebranding for nuclear energy, as well as which CEO has created the most shareholder value. We've had an alphabet for 1,500 years, but we've been interpreting actions and taking instruction through images for tens of thousands, whether it's paintings on cave walls, or trying to figure out when to plant the crops based on the height of the sun in the sky. Ron Gross has positions in Amazon, Apple, Berkshire Hathaway (B shares), Bitcoin, Costco Wholesale, Meta Platforms, Inc., Nike, Starbucks, Taiwan Semiconductor Manufacturing, Target, and Walt Disney.
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Chris Hill has positions in Alphabet (A shares), Alphabet (C shares), Amazon, Ametek, AppHarvest, Inc., Apple, Costco Wholesale, Home Depot, Nike, Starbucks, Taiwan Semiconductor Manufacturing, Target, and Walt Disney. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), Bitcoin, Costco Wholesale, Home Depot, Meta Platforms, Inc., Nike, Peloton Interactive, Starbucks, Taiwan Semiconductor Manufacturing, Target, Tesla, Walker & Dunlop, Walt Disney, Zillow Group (A shares), and Zillow Group (C shares). The Motley Fool recommends AppHarvest, Inc. and Walker & Dunlop, Inc. and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), short January 2023 $92.50 puts on Starbucks, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple.
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Welcome back to Motley Fool Money, Chris Hill here in studio with Jason Moser and Ron Gross. Chris Hill: All right, Jason Moser, Ron Gross, guys, we'll see you later in the show for stocks on our radar. The Motley Fool recommends AppHarvest, Inc. and Walker & Dunlop, Inc. and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), short January 2023 $92.50 puts on Starbucks, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple.
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Welcome back to Motley Fool Money, Chris Hill here in studio with Jason Moser and Ron Gross. Chris Hill: All right, Jason Moser, Ron Gross, guys, we'll see you later in the show for stocks on our radar.
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FTX Collapse: Lessons for Investors
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https://www.nasdaq.com/articles/ftx-collapse%3A-lessons-for-investors
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In this podcast, Motley Fool senior analyst Jim Gillies discusses:
Why the Dow Jones Industrial Average is "the dumbest index."
Where investors can find ballast for their portfolios.
Motley Fool analyst Dylan Lewis and Motley Fool producer Ricky Mulvey take a closer look at what actually happened with the collapse of FTX.
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 Nov. 30, 2022.
Chris Hill: It's time to talk about crypto. Motley Fool Money starts now.
[music]
I'm Chris Hill. Joining me today: Motley Fool Senior Analyst Jim Gillies. Thanks for being here.
Jim Gillies: Thanks for inviting me.
Chris Hill: Before we get to the collapse of FTX, today is the last day of November. The Dow Jones Industrial Average is on pace to finish up 3% for the month, which is not a lot. But if we could do that every month, that'd be pretty great. Barring a collapse, the Dow is going to finish well ahead of the S&P 500 for the year and even further ahead of the Nasdaq -- which, Jim, is leading some of the people in financial media to pound the table. There's a little bit of "see, I told you so" going on and pointing to the Nasdaq and saying, "that's why I've always said you got to stay away from these" and pointing to the Dow and saying, "and that's why you got to get behind companies that we just see in the Dow Jones Industrial Average."
I understand why someone in that position might take a little bit of a victory lap or even pound the table a little bit. However, I'm curious what you think of all this, because when I think about you and your investing style, you strike me as someone who is certainly open and embracing of the idea of ballast in a portfolio of sure, yeah, have some growth in there, but particularly as you get older, have some ballast. I'm wondering, do the pro-Dow Jones Industrial Average people hold any sway over you?
Jim Gillies: Well, as someone as well who looks at quite often at a lot of the companies in the Nasdaq could say, see I told you so. I've done that once or twice or 3,000 times. Yeah, I suppose I'm the natural guy to come along and a couple, pull one of those, but I'm not going to. I have some thoughts on how you can get some growth into your portfolio.
As you mentioned, I am very much someone who likes ballast. But we are Fools, and one of the tenets of Foolish investing is we think long-term. Yes, the Dow is going to win the month. Well, that's lovely, and I don't care. You are right again, they are probably ... "they." I feel like we're attacking a straw man we've just constructed, but why not? It's the construct for the show.
Chris Hill: I'm going to defend myself. I don't think this is a straw man. I look at financial media every day, and I think that part of what we deal with as investors is yes, we want to be focused on the businesses, but we also live in an environment where there is all this news swirling around us and the news has narratives. I feel confident in this prediction. This is absolutely going to be a narrative in the month of December as people start their year-end, they'll look back and it's like, look, boy, this was the year you wanted to, you should have been in the Dow.
Jim Gillies: Yeah, well, so let's talk about the outperformance of the Dow then in this year, 3% in the month. Whoop-de-doo. Chris, the Dow is in fact leading the charge for the major American indices in 2022. The Nasdaq, as of last night's close, is down 29.8% for the year; the S&P 500, as of last night's close, is down 17% for the year. Note I'm not including dividends, I'm just going straight numbers. The Dow leading the charge down only 6.8%. It's still down. How is this me winning?
But again, we want to talk total return. I shouldn't really call it total return because I've not bothered to grab the dividend numbers, but the absolute numbers over the past decade. Of course, as Fools, we like to talk about we expect to hold a minimum of five years. We encourage you to buy at least 25 stocks. Several multiples of those numbers myself.
As far as the length of time, I've got several stock holdings that are older than both of my children. I've got one child in university which should tell you how old I am.
But over the past decade, the leader of the pack, and it's not close with a 265% total return, that is 13.8% annualized is -- drum roll -- the Nasdaq. The thing that you're supposed to avoid. If you bought, held, didn't worry about it, then shut up. You are beating the Dow with it's 160% total return, which is roughly 10% annualized. The S&P lands in the middle at 180% total return, 10.8% annualized. Buying and holding, dollar-cost averaging.
Look, you can buy a Dow ETF, you can buy a Nasdaq and S&P ETF. But these are the types of returns that they have delivered and this includes the fact that the Nasdaq, on an annualized basis, has blown past the Dow by almost four percentage points. That's after the 30% drop this year.
Where I come at the growthy growth names, it's generally on a purely on a valuation basis. Paying 70 times sales for something, sorry, it's dumb, shouldn't do it, in my opinion. And I think my opinion is holding sway with what's happened in the last year or so.
But buying at 10 times sales, say, we'll call that company Shopify in 2016. When those sales are in fact going to the moon. Even when it dropped 75% in 2022, or whatever the number is, you're still up 10-, 12-bagger territory. Growth absolutely has a place. Just don't overdose on it.
But there's a few other criticisms ahead for the Dow. Again, I like to get hate mail, so I'll say it. The Dow is the dumbest index. I look at the Dow as almost worthless as an investing track. Anyone who is encouraging you, especially once the Nasdaq is down, encouraging you to get out of the Nasdaq Index or out of the growth names. We're playing index games today, so we'll stay away from individual stocks as investments. Going to mention a few.
Someone telling you to sell low effectively with the Nasdaq off 30% and buy the Dow for its relative success of only being down 7% year to date. They're basically encouraging you to buy a flawed, idiotically constructed, and poorly managed index that is far less diverse. There's by definition 30 names in it. The Dow Jones Industrial Average only has 30 names in it. The Nasdaq index, I believe there's 100. The S&P 500 obviously has slightly more than 500. It's poor on a returns basis, it's poor on a diversification basis, and it's constructed stupidly. But other than that, it's fine.
Chris Hill: It does speak to the power of both nostalgia and inertia that the Dow Jones Industrial Average continues to get the attention that it does because it's been around for so long. As you said, just if you were starting from scratch today, you wouldn't build the Dow. You wouldn't build an index of 30 stocks unless it was concentrated in a particular industry.
Jim Gillies: Exactly. It does a bad job of what it is supposed to do. The whole point of an index... By definition, the index is to supposedly attempt to measure the incredibly complex breadth of American business. I'm going with an American index.
But I mean, of course, so many of these companies are international, but then the largest company by market cap in the world is Apple, and the largest -- at least in America. I'm not sure were Saudi Aramco sits today. Maybe I should say world unless I'm right and I'm [inaudible].
But Apple, largest company America. Apple sells one or two products outside the borders of your fine nation. I think there's about 17 of them in this room. These are international companies. Coca-cola sells one or two beverages outside of America.
But the whole point of an index to try to capture and measure the health of publicly traded American business. The S&P 500 -- which, again, is 500, it's slightly more than 500 companies, but we'll pay no attention to that. It's the largest 500-ish companies in America, and what it does is it captures about between 70% to 80% of total market capitalization in America. Does a pretty good job.
What it doesn't capture is a host of tiny little companies that are the thousands of this 2,000 largest companies by market cap. It's pretty good job. If you go out and rank, go find the 10 largest companies by market size. Those 10 companies in America are, I'm going to run them down really quickly, Apple, Microsoft, [Alphabet's] Google, Amazon, Berkshire Hathaway, Tesla, UnitedHealth Group, Johnson & Johnson, ExxonMobil, and Visa. Those are the 10 largest-market-cap companies in America.
The first nine are also the top nine holdings of the S&P 500. Visa, the 10th-largest company, is actually 13th on the S&P 500, but you're starting to get one and two digits after the decimal point. Of those 10 largest companies, without looking, Chris, how many of the 10 largest companies are actually in the Dow? Not just in the top 10 of the Dow, are actually in the Dow.
Chris Hill: I want to say four.
Jim Gillies: You missed it by one. Five. But then you get into, well, what's the largest company by market cap in America? Apple is, oddly enough, market cap-wise, the largest weighting in the S&P 500. It's the 19th-largest weighting in the Dow. It's almost in the bottom third. Microsoft, the second-largest company in America, No. 2 in the S&P 500, is No. 6 in the Dow. The largest weighting is UnitedHealth Group.
The reason for this is that the Dow Jones Industrial Average is what's known as a price-weighted index. Your price is what matters, not your size, not your actual financial results. That is asinine. Then the No. 1 ranking in the Dow wouldn't need UnitedHealth Group, again, the seventh-largest company in America. The No. 2 waiting in the Dow is some vampire squid company called Goldman Sachs. It's the 59th-largest company in America by market cap. JPMorgan, which I believe is in the top 15, I think it's No. 11. JPMorgan is way down, it's at the 20th-ranked company in the Dow. It's weird.
The other thing is, why is Apple so small? Why is Apple, the largest company in America, 19th in the Dow? It's because Apple had the temerity to split their stock in, I believe August of 2020, they split 4 for 1. Because this is a price-weighted index, Apple basically removed 75% of their weighting in the Dow, which is amazing, because that then prompted the Dow Jones selection committee to make moves. Would you like to hear the silly moves they made?
Chris Hill: As quickly as possible. We got to get with the FTX.
Jim Gillies: As quickly as possible.
The argument to take Apple or that when Apple quartered themselves, essentially, by a stock split, it dropped the technology waiting down by almost 28% to about 20%. The folks in charge of Dow Jones selection said, "Cool, what we're going to do, we are going to take three companies out." Those three companies were ExxonMobil, Pfizer, and I believe Raytheon. "We're going to add three companies in: Salesforce" -- That's your technology weighting back up -- "Salesforce, Honeywell and Amgen."
Well, that turned out to have been a really spectacular move. The average return for those three companies they added in August of 2020 is negative 0.7%. The superstar there would be Salesforce, who was down 44% over this time. That's really what's weighted. Honeywell's up a respectable 31%, Amgen's up 11%, that's fine.
The three companies they took out, the average return of what they threw away is 91.6%. It's almost a double over a very volatile market. Chief among them, ExxonMobil up 176.8%, Pfizer up 38.2%, Raytheon up 59.7%.
This was done because they were reacting to the Apple's price waiting and they felt they needed more technology. What they would do is eliminate, basically, the largest energy producer at America which seems weird to me. But again, I'm not paid to be on the committee. I'm just paid to sit here and laugh at them.
Chris Hill: I was going to say, I don't know who's on the committee, but it sounds like they've got a lot of work to do.
We got to get out of here. Jim Gillies, always great talking to you.
Jim Gillies: Thank you.
[music]
Chris Hill: You've probably heard a lot lately about the collapse of a cryptocurrency exchange FTX. But what actually happened? Dylan Lewis and Ricky Mulvey give you a rundown on the story and the takeaway for investors.
[music]
Ricky Mulvey: Let's dive into some of the FTX craziness and see if we can find some lessons for investors. Dylan, I think let's first start with a recap and then pull out some takeaways.
Dylan Lewis: Love it. Yeah, this has been the inescapable story online over the last couple of weeks. It's fun to do a show on it.
Ricky Mulvey: Let's get your whiteboard and yarn ready, because there's a couple of players in this. FTX was a crypto exchange. At its peak in July of 2021, you had over a million users. There was the third-largest crypto exchange by volume.
When it starts, it receives an important investment from another exchange that's called Binance. Now, you probably saw FTX with the ads during the Super Bowl with Tom Brady and Larry David. Got an arena named after it. Its founder, Sam Bankman-Fried, also called SBF, becomes an immediate darling and makes large political donations.
Dylan Lewis: Yes. I think as crypto goes, FTX is as mainstream as it possibly could be.
A name that a lot of people have learned over the last couple of weeks is Alameda Research. This is a hedge fund that was also started by Sam Bankman-Fried prior to founding FTX. He was involved in Alameda for a while and then later gave leadership to someone else but was seemingly involved even though it was apparently a separate entity from FTX.
I think the important thing to know about the relationships between Alameda and FTX: The leaders of both sat next to each other and basically cohabitated. People who thought they were wiring money to FTX were actually wiring it to Alameda. That will become very important later.
Ricky Mulvey: They're giving loans to each other. When you build these ELA, a trading firm, it's not supposed to take money from people's deposits to make risky cryptocurrency trades. Those decisions is where the organizations start to unravel.
One other piece is that FTX and Alameda are using a token that's called FTT. It's a crypto that has been created by FTX. It's encouraging people to buy and sell cryptos on the platform. Because it has this trading volume, they're able to say it has a tremendous market cap.
This becomes a little bit tricky because Binance, the rival firm, owns a lot of these FTT tokens, and also, FTX and Alameda are using this essentially self-created cryptocurrency as collateral for much larger loans.
Dylan Lewis: Yes, and this is where it starts to get a lot cloudier and probably a lot more confusing for a lot of people. But the easiest way to think about FTT is just they essentially created their own coin. And there's nothing necessarily insidious about that. But what we see increasingly as the story develops is it was a way for them to grow their assets and also exchange money between FTX and Alameda, as well as other people in the crypto industry, relatively easily.
And all this comes to a head earlier this month when a website called CoinDesk, who's really one of the leaders in this space if you follow it, leaked a balance sheet from Alameda showing that if you looked at its balance sheet, it had roughly $15 billion in assets, but the vast majority of that money was held in FTT tokens. To go back to what I was just saying, this is a token that they created. The value of this is, to some extent, made out of thin air and really only valuable so long as people continue to feel like it is valuable.
Ricky Mulvey: FTT is making loans to the trading arm, Alameda, and receiving their own token as collateral. So you have this self-dealing that can create a lot of risk in the system.
FTX had a number of balance sheet errors. One of the most unfortunately hilarious ones was that they had $2.2 billion marked for a cryptocurrency called Serum on the balance sheet, and the coin's market cap was only $88 million.
So there's the revelation from CoinDesk that says that the balance sheet is built on the self-created token. This starts to create a bank run, where traders are making withdrawals, and Binance, which was that early investor in FTX, announces that it's going to offload all of the FTT tokens, which is worth hundreds of millions of dollars or more.
And this becomes a problem for FTX because there's now a huge supply, not enough demand in the system, and it can crash the price. This drives down the price of the FTT token, which is the overwhelming asset, and it just compounds the problem from their creating this huge snowball that you're seeing play out now.
Dylan Lewis: And really, the easiest way to think about how this all comes to head and really how this all gets exposed is this is a bank run. Because people were starting to be concerned that they would not be able to get money out of FTX because so much of FTX was collateralized by money that they had essentially invented.
And so at a very high level, because I know we threw a lot of stuff at people here: The FTX exchange seemingly took customer funds and then made those funds available to Alameda Research to invest without customer knowledge. It seems Alameda racked up losses as they were doing that but was able to cover those losses and continue to keep a lot of their customers, and really generally the crypto industry, in the dark because they could transfer FTT between FTX and Alameda to cover the deficit. They were also able to rehypothecate FTT and some of the other crypto holdings to continue to boost their overall assets.
And this all was fine so long as the value of FTT coin held. But it didn't because of actions in the market and recent information that CoinDesk was able to unearth.
The fallout, I think it's almost impossible to know at this point. But if you're a customer who had holdings with FTX, you are likely never going to be able to access them. And there seem to be a lot of other crypto firms that had exposure to FTX, which has created follow-on bankruptcies and concern throughout crypto.
Ricky Mulvey: I think it's a huge lesson in that a year ago, people were saying, "Hey, let's not have this financial regulation going on in crypto." Boy oh boy, has that tune changed.
Dylan Lewis: It's really interesting, because part of the "poster child of crypto" reputation that SBF was able to create for himself was one of "I'm willing to talk to regulators. I'm willing to do the work to legitimize crypto," and that seemed to be something that made him trustworthy, along with the fact that both of his parents have compliance backgrounds, are very highly regarded in the academia world.
He also tapped into effective altruism with his way of pitching both himself and his general crypto ambitions. We are starting to realize that a lot of that may have just been window dressing or marketing.
Ricky Mulvey: So, Dylan, what are some of your big takeaways from this story? If you're terminally online like I am, this just flood of nonstop information about the FTX fallout.
Dylan Lewis: This is going to sound wonky, but I think one of the biggest things that public investors can really take from this -- because this is a crypto story, and it may not be something that a lot of people feel like they have access to or exposure to -- is related-party transactions are rightly scrutinized, and they are a very large part of the way that we look at companies when they come public. There's a whole section dedicated to them in the prospectus, and if you see people waving the red flag when they look at them, they are worth paying attention to.
Because when you invest in a business, you want to make sure that the leadership of that business is acting in your best interests. And as we see here, when management controls multiple entities that are tied up together, it can become much harder for you to understand whether they are acting in your best interests or their own.
Ricky Mulvey: Did you see the chief regulatory officer of FTX had previously worked essentially at a poker website where people were given "god mode" so they could see other players' cards?
Dylan Lewis: I think you need to trust leadership broadly, and this is why we think it's so important, and really, with related parties and the ability to deal within entities. As we see here, it makes it so much easier to commit fraud, and some of that is because of lack of internal controls or maybe mischievous behavior on behalf of folks calling things.
But also, if you control both the books and the piggy bank for multiple entities, it becomes a lot easier to do "fun with numbers" questionable accounting, and, as it seems in this case, commit fraud without tipping off other people because you control everything.
Ricky Mulvey: That's where I think the narrative about this being a series of unfortunate mistakes becomes a little bit flimsier to me is that the chief technology officer of FTX built a back door so they could take customer funds and put it in Alameda Research without tipping off any regulatory red flags. So is this deliberate track covering that means that they were not looking out for the best interests of investors.
And you can understand, though, why a lot of people wanted to use FTX in these crypto investments, because there were these very high promises of return even for seemingly safe investments.
Dylan Lewis: This industry is so inaccessible to a lot of people. At core, there's nothing bad about being a crypto exchange. FTX made crypto ownership much more democratic and much easier for a lot of people. It's just they decided to do so many other things that were seemingly nefarious, and that's really where it got into trouble.
Well, I think one other thing that people should probably be paying attention to is this: As FTX was raising money and as Alameda was raising money, there were some other red flags that I think people probably should have seen. One of them is there was an Alameda pitch deck from 2018 surfaced by the Block, which basically showed an investment opportunity that included a 15% annualized fixed-rate loan with the statement, "These loans have no downside. We guarantee full payment, the principal and interest enforceable under U.S. law and established by all parties legal counsel."
I think the thing that you have to remember when you see high-promise, low-risk returns is the only way that someone is able to offer you a high rate of return, like 15% -- which is well above what we typically see for the stock market annualized -- is because they are going to do something with that money that is inherently riskier than how they are borrowing it from you.
Ricky Mulvey: Than buying U.S. Treasuries?
Dylan Lewis: Yes, exactly. And there is nothing truly risk free. Even buying a Treasury technically has some risk to it.
And so if you are providing funding to someone and they are paying you a relatively high rate for that, the only way, economically, they're able to pull that off, it's because they are able to do something that earns more money with those dollars or with that crypto, whatever it might be. And you have to question, at a certain point, the sustainability of that model and whether they can really continue to do it for years and years.
Very few people have been able to, and I think that that's something that probably should have concerned people a little bit earlier than it did.
Ricky Mulvey: They weren't the only exchange that were offering those late exchange. It was staking returns and hey, give us some Ethereum and we'll give you a guaranteed six- to double-digit return.
I also want to talk about, even if you don't own crypto, there are some public-market ramifications that will affect stock owners, investors everywhere.
Dylan Lewis: This is something that dramatically affects the number of people that trust crypto and the number of people that are willing to invest in crypto. I don't personally own crypto, but I think it's an incredibly interesting space to follow, and if you have any exposure to a company like Robinhood or any exposure to a company like Coinbase, you're going to take a hit here regardless of whether you own crypto or not.
What we're also seeing is, there was a lot of big money and a lot of smart money tied into this. Tiger Global was involved, Sequoia Capital was involved as investors. But also, we're seeing that the Ontario Teacher's Pension Fund was involved, and this is one of Canada's largest pension funds, and they had almost $100 million invested in FTX. They are writing down the entirety of that. And so this is something that is affecting people that maybe didn't even necessarily know that they had crypto exposure.
Ricky Mulvey: I want to know how many people are invested in Coinbase that don't own crypto. That's got be a thing that I agree on, Dylan.
Dylan Lewis: I'm curious. I think this contagion, it's easy to see a story just being played out and moving on after one cycle, but back in June...
So the price of Bitcoin right now is around like $16,000, and you're seeing a lot of lack of faith. People aren't entering the space that much. And back in June, MicroStrategy has said that they would face a margin call if Bitcoin essentially fell to $21,000. Right now, it's at $16,000, and I haven't heard much about that story. So I feel you might see some other developments continue to play out.
My takeaway from this is just being careful about investing in things you don't understand. I would say I got stung but not burned by investing in crypto. I was excited about it. I thought it was a really cool, unique beginning of something. Even after this, I don't own Bitcoin, but I'm not totally unsold on it. Because there's still a part of my brain that's saying, "Hey, if you bought Bitcoin every time it got cut in half, that wouldn't be a bad way to make money."
Ricky Mulvey: I think this is not the death of crypto, and I think the people saying that are probably going to be wrong. There's a critical base of people that are interested in this, and it seems there are interesting projects and interesting applications for it.
I think it is a massive setback for the industry, and one that is probably going to just lead to increased oversight, increased regulation, and also just a longer adoption cycle for people that were on the fence about jumping in. It's not the death of crypto, but it is the end of this segment.
Dylan Lewis, always good to chat with you.
Dylan Lewis: Thanks for having me, Ricky.
Chris Hill: As always, people on the program may have interest in the stocks they talk about and the Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. I'm Chris Hill. Thanks for listening. We'll see you tomorrow.
JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Chris Hill has positions in Alphabet, Amazon.com, Apple, Exxon Mobil, JPMorgan Chase &, Johnson & Johnson, Microsoft, Shopify, UnitedHealth Group, and Visa. Dylan Lewis has positions in Alphabet, Amazon.com, Apple, Salesforce, and Shopify. Jim Gillies has positions in Amazon.com, Apple, Berkshire Hathaway, and Visa. Ricky Mulvey has positions in Ethereum. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, Bitcoin, Coinbase Global, Ethereum, Goldman Sachs Group, JPMorgan Chase &, Microsoft, Salesforce, Shopify, Tesla, and Visa. The Motley Fool recommends Amgen, Johnson & Johnson, Pfizer, and UnitedHealth Group and recommends the following options: long January 2023 $1,140 calls on Shopify, long January 2023 $200 calls on Berkshire Hathaway, long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $1,160 calls on Shopify, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This starts to create a bank run, where traders are making withdrawals, and Binance, which was that early investor in FTX, announces that it's going to offload all of the FTT tokens, which is worth hundreds of millions of dollars or more. Ricky Mulvey: That's where I think the narrative about this being a series of unfortunate mistakes becomes a little bit flimsier to me is that the chief technology officer of FTX built a back door so they could take customer funds and put it in Alameda Research without tipping off any regulatory red flags. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, Bitcoin, Coinbase Global, Ethereum, Goldman Sachs Group, JPMorgan Chase &, Microsoft, Salesforce, Shopify, Tesla, and Visa.
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Those 10 companies in America are, I'm going to run them down really quickly, Apple, Microsoft, [Alphabet's] Google, Amazon, Berkshire Hathaway, Tesla, UnitedHealth Group, Johnson & Johnson, ExxonMobil, and Visa. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, Bitcoin, Coinbase Global, Ethereum, Goldman Sachs Group, JPMorgan Chase &, Microsoft, Salesforce, Shopify, Tesla, and Visa. The Motley Fool recommends Amgen, Johnson & Johnson, Pfizer, and UnitedHealth Group and recommends the following options: long January 2023 $1,140 calls on Shopify, long January 2023 $200 calls on Berkshire Hathaway, long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $1,160 calls on Shopify, 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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Dylan Lewis: This is going to sound wonky, but I think one of the biggest things that public investors can really take from this -- because this is a crypto story, and it may not be something that a lot of people feel like they have access to or exposure to -- is related-party transactions are rightly scrutinized, and they are a very large part of the way that we look at companies when they come public. Dylan Lewis: This is something that dramatically affects the number of people that trust crypto and the number of people that are willing to invest in crypto. The Motley Fool recommends Amgen, Johnson & Johnson, Pfizer, and UnitedHealth Group and recommends the following options: long January 2023 $1,140 calls on Shopify, long January 2023 $200 calls on Berkshire Hathaway, long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $1,160 calls on Shopify, 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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Motley Fool analyst Dylan Lewis and Motley Fool producer Ricky Mulvey take a closer look at what actually happened with the collapse of FTX. We got to get with the FTX. Dylan Lewis: This is something that dramatically affects the number of people that trust crypto and the number of people that are willing to invest in crypto.
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Black Friday Shopping in America; Protests in China
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AAPL
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https://www.nasdaq.com/articles/black-friday-shopping-in-america-protests-in-china
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In this podcast, Motley Fool senior analyst Jason Moser discusses:
Black Friday's new record of $9 billion spent.
How other retailers are competing with Amazon.
NFL viewing on Thanksgiving Day setting new records.
Motley Fool senior analyst Bill Mann discusses:
Rising unemployment among China's young adults.
How municipalities are "drowning in debt."
The challenges of sourcing ingredients and manufacturing in China for U.S. companies like Apple and Procter & Gamble.
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 Nov. 28, 2022.
Chris Hill: We've got Black Friday, Cyber Monday, and the latest on the protest in China. Motley Fool Money starts now. I'm Chris Hill, joining me in studio Motley Fool Senior Analyst, Jason Moser. Good to see you.
Jason Moser: It's good to see you. I'm glad I'm not still in a turkey coma. It was close there for a minute.
Chris Hill: You and me, both. I think you and I, because we were in our respective comas, we were not doing any shopping last Friday. That puts us probably in the minority, because Black Friday shopping hit a new record of nine billion dollars. There are few things we can get into here, but the data that popped out to me was MasterCard saying that the sales up 12 percent year-over-year. That's what you want to see.
Jason Moser: Yeah, absolutely. It is very encouraging from the perspective that the forecasts were a bit more tempered. I think the obviously ongoing concerns regarding inflation, interest rate environment making it more difficult to borrow, the general feeling was that consumer is going to be a bit more conscious of that type of spending. Maybe that will reflect as we get closer to the holiday, and I'm sure probably will. But based on the numbers there, it sounded like it was a very successful Black Friday. I'm not sure how to take this, I don't know if you saw the buy now, pay later data.
Chris Hill: I did not.
Jason Moser: Buy now, pay later payments increased by 78 percent compared with the week before. Ultimately, buy now, pay later is making up a considerable portion of the total spent on Black Friday. That's I guess encouraging in the sense that you got another avenue for consumers to be able to spend. Buy now, pay later, it's still very much taking shape. There are a lot of questions still to be answered there. You just have to wonder, if people aren't biting off a little bit more than they can chew. It just sits in the back of my mind there. I wonder because we've seen personal savings rate obviously is not an all-time low, but is low as it's been in the last decade, plus if not at an all-time low. Credit card balances are hitting record highs, and so now we have just one more way to spend money that we don't have. That bothers me a little bit, but it does sound like it was a successful weekend and that's a positive.
Chris Hill: It is. One more data point there, prices only up one percent year-over-year, which of course is lower than what we've seen in terms of inflation. I think you're right that the buy now, pay later data is something we're going to be keeping an eye on in 2023. A lot of times when we sit here on Cyber Monday and talk about Black Friday and the results, if there's a lot of spending going on it's a rising tide lifts all boats sort of thing. I think everything we've seen with major retailers in particular this year, indicates that's not necessarily going to be the case.
And along those lines, there were some data put out by a company called Captify. It's an adtech company that tracks searches online, and Amazon was not the leader in people searching for Black Friday bargains. Walmart was, and actually, Amazon was fourth behind Target, and Kohl's. This is a point you've made throughout the year that Amazon for as great a business as it is, for as great a performer as it's been for decades, they got more competition than ever.
Jason Moser: More choices now than ever before. It's not the only game in town. When I was thinking about that data, one thing I would be interested to know is exactly where they are measuring. Because one thing we talk about with Amazon in particular is a lot of times you'll go to Amazon and then initiate your search from there, as opposed to searching something on Google, and then having that take you to wherever it takes you. I'd be curious to know if that data is just incorporating Amazon searches external to Amazon's properties, app or website, or if it's something that incorporates searches that are initiated and conducted within actual Amazon properties. Because I think that does make a difference. As consumers, I think we've become more and more trained essentially to search within Amazon.
You go to Amazon you know what you're looking for, or you don't know and you want to search from there because it's ultimately more efficient, because you know you're already going to Amazon in the first place. It's a search engine in that regard, but it does speak to I think this is not just an Amazon holiday anymore. There are more choices than ever before. I think Jeff Bezos has said on multiple occasions. He wakes up every morning, and says he's scared of the consumer because the consumer has more options, and then they can go anywhere they want. That speaks to the philosophy of trying to be as customer-centric as possible, and try and be ultimately the most customer-centric company on the face of the earth.
I think that companies like Walmart, Target, Kohl's, Etsy, Wayfair, all of these companies have done such a good job in really getting us to go website- or mobile-first. Now, some of these businesses riding at zero, Wayfair, for example, those are online businesses. But I think particularly in the case of something like a Walmart where they had this massive store footprint, they've done a tremendous job in getting consumers to think online- or mobile-first, and then in-store would be the next step if needed. Convenience has become very addictive as consumers. Amazon I think probably got that ball rolling for us, but that's a rising tide that is lifting a lot of boats now, Walmart being another one. I think Amazon is really going to have to pay attention to that, because again, not the only game in town, Walmart has a tremendous footprint, physical and online. It doesn't feel like it's just an Amazon landscape anymore.
Chris Hill: With the exception of Kohl's, and I think this is due to where I was watching television at any given moment. But with the exception of Kohl's, every company you just mentioned, I saw a lot of advertising over the weekend. Which brings me to the other topic I wanted to hit with you, which is the television ratings for the football on Thanksgiving Day, which set a record both in terms of the aggregate average of the three NFL games on Thanksgiving Day, but also in particular with the Giants-Cowboys game, 42 million people watching. The highest ever for a regular season game, and it really does seem like for as expensive as the rights are for live sports and pro football in particular, they're delivering the eyeballs now more than ever.
Jason Moser: Yeah. They are benefiting from that long-term tailwind of tradition. Thanksgiving and the NFL, just go together hand in hand. I do think that's something that's going to continue, and I think that we're going to continue to see the landscape shift as far as who gets these games. Because the three games that were on on Thursday, if you watched them or if you didn't, but each network got one. You had NBC had one, CBS had one, Fox had one. I don't think it's going to be too far down the road, where we see Amazon having at least one of those games. I'm not saying this will happen, but we're seeing Netflix is starting to dabble in the idea of sports.
Now, depending on how far they take that, boy howdy, can you imagine the engagement? That is just guaranteed engagement. It costs a lot. But man, that really will bring a lot of people to your platform. The fact that you incorporate advertising into the mix, that's just a very lucrative setup. I suspect we'll continue to see that shift in the landscape as far as who's getting these games. The NFL was very thoughtful as to the scheduling, the teams that they're pitting against. These were all good games. I watched all of them, they were all good games. I think that's really key to it is making sure that you have actually good games on. But man, talk about printing money.
Chris Hill: Jason Moser, always good talking to you. Thanks for being here.
Jason Moser: Thank you.
Chris Hill: Wall Street's enthusiasm for the retail industry today is being outweighed by the continued unrest in China over the weekend, protests broke out in Beijing, Shanghai and other major cities in China as groups of people showed their frustration over the central government's zero-COVID policy. Joining me in studio now is Motley Fool Senior Analyst, Bill Mann, thanks for being here.
Bill Mann: They've had it, haven't they?
Chris Hill: They have and a bit more context. The government had recently indicated that the local controls might start to be eased up and then COVID infections started rising and so the response was we're going to put even more controls on and now we have protests and depending on the video you're watching in some cases, we're seeing evidence of the government literally cracking down on the protests.
Bill Mann: Yeah, not that COVID has been known for its sense of timing from the outset, but it is not for nothing that the spike that's happening in China and it is a severe spike as big as they have had since the onset of the pandemic, it's taking place just after the 20th the communist party Congress in which Xi Jinping absolutely locked down and made himself essentially one man power center for the country. In that meeting, he was very clear about the fact that their policy was COVID zero and by their policy, it means his policy. If you're in a country where there is one locus of power, it's important that locus of power not be shown up but COVID didn't get the memo on this, so they have several really bad choices at this point.
Chris Hill: There is a lot of geopolitical commentary for people looking forward. Ours is a business show, so let's focus on the business here. China's economy is one of the more important ones in the world. No surprise that it has slowed down over the last few years. I saw this, this morning, unemployment among young people in China is close to 20 percent. When you think about the ripple effect not just for China's economy but also for businesses here in the US, what goes through your mind?
Bill Mann: Well, first of all, I hear that statistic and say well it's probably a lot higher than that. One thing that's really important to note, China has not had an economic downturn since 1976. Whether you trust the statistics or not, what has happened in China has been one of the most incredible growth stories that mankind will ever see. But the governance in China is basically set up on a good news basis. They don't know how to handle this. They don't know how to handle, obviously they can crack down but China has worked really well because it's worked OK for most of the people and then the people who it hasn't worked out for, who have complained, have been cracked down upon, that's who the violence has been for.
When you see huge protests across the country like this, you have to wonder what move they have. China is absolutely drowning in debt on a municipal basis. They're municipalities basically fund their own balance sheets by selling land and that has been one of the biggest bubbles in the world and they are now seeing really since the beginning of the pandemic, Western companies realization that they can't depend on China anymore solely for goods. There was a statistic that in 2020, 17,000 products from Procter & Gamble alone had at least one ingredient or input that they only got from China. That's the thing that works when you are absolutely committed to just-in-time inventory and making sure that your expenses are as low as possible.
That cannot happen anymore. One of the things that you're starting to see is for example, one of the companies that's taken it worse so far is Apple, with the iPhone manufacturing facilities being shut down, there're being riots at them. Apple has to make a choice, do they transition as much of that manufacturing as they can for example, to India. But doing so is going to add three or four percent of expense for each phone that's made and it's a lot of phones. They can do it and maybe they should have done it before this, but those are some of the real expenses that are coming down the line and Apple is far from the only company that is dependent for certain components on China.
Chris Hill: Well, I was going to say they can do it, they can also pass that increase onto consumers who will almost certainly pay it.
Bill Mann: Maybe. Yes.
Chris Hill: Some healthy percentage will say, I will pay three percent more for an iPhone and not really think twice about it. However, here's what Apple can't do. They can't do it quickly.
Bill Mann: Yeah, they can't do it quickly and those expenses at some point, I think that you're right, I think that the theory of the case is that Apple can charge what it wants to but I may suggest to you in response that Apple already is charging what it wants to and that at some point, those margins start to matter and those costs and how much they're charging the public really starts to matter.
Chris Hill: We've talked about what it means for essentially manufacturing businesses on the tech side like Apple. What about more consumer-facing businesses that are based here in the US who are trying to sell to Chinese consumers. When you think about McDonald's, Starbucks, they're dependent on stores being opened.
Bill Mann: Well yes, they are and probably the biggest of them is Yum! Brands and Yum China, which is a massive company in China. It is separately traded but it is still very largely owned and controlled by Yum, so that's Kentucky Fried Chicken, Taco Bell, Pizza. Is there any other? Long John Silver's maybe, they've got a bunch of them. I was trying to pull something more esoteric.
Chris Hill: I think Arthur Treacher is off on his.
Bill Mann: Exactly. Yeah, that matters. I'm not sure that it matters quite so much the zero COVID policy is something that they've been dealing with for a long time. There are huge questions that have come up in China that I don't know that you can answer now. One of the big problems in China is that the elderly, maybe more than any country in the world, have simply not listened and have not gotten vaccinated against COVID. Why in a country that has some semblance of a control of personal behaviors has that been allowed to happen and what are the costs that come downstream from that? I don't know the answer and I don't know that anybody else does, but there are no good choices for the Chinese government right now. For companies that are dependent on China for sales, I almost think that you need to mark that down in your mind to zero for the upcoming future.
Chris Hill: Bill Mann always good talking to you, thanks for being here.
Bill Mann: Thanks, Chris.
Chris Hill: As always, people on the program may have interest in the stocks they talk about and the Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. I'm Chris Hill, thanks for listening. We'll see you tomorrow.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Bill Mann has positions in Mastercard and Starbucks. Chris Hill has positions in Amazon, Apple, Etsy, Starbucks, and Target. Jason Moser has positions in Amazon, Apple, Etsy, Mastercard, Starbucks, and Wayfair. The Motley Fool has positions in and recommends Amazon, Apple, Etsy, Mastercard, Starbucks, Target, and Walmart Inc. The Motley Fool recommends Wayfair 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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In this podcast, Motley Fool senior analyst Jason Moser discusses: Black Friday's new record of $9 billion spent. I think the obviously ongoing concerns regarding inflation, interest rate environment making it more difficult to borrow, the general feeling was that consumer is going to be a bit more conscious of that type of spending. They're municipalities basically fund their own balance sheets by selling land and that has been one of the biggest bubbles in the world and they are now seeing really since the beginning of the pandemic, Western companies realization that they can't depend on China anymore solely for goods.
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In this podcast, Motley Fool senior analyst Jason Moser discusses: Black Friday's new record of $9 billion spent. Motley Fool senior analyst Bill Mann discusses: Rising unemployment among China's young adults. The Motley Fool recommends Wayfair 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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Chris Hill: Wall Street's enthusiasm for the retail industry today is being outweighed by the continued unrest in China over the weekend, protests broke out in Beijing, Shanghai and other major cities in China as groups of people showed their frustration over the central government's zero-COVID policy. Bill Mann: Yeah, they can't do it quickly and those expenses at some point, I think that you're right, I think that the theory of the case is that Apple can charge what it wants to but I may suggest to you in response that Apple already is charging what it wants to and that at some point, those margins start to matter and those costs and how much they're charging the public really starts to matter. Chris Hill: As always, people on the program may have interest in the stocks they talk about and the Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear.
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Brands and Yum China, which is a massive company in China. I don't know the answer and I don't know that anybody else does, but there are no good choices for the Chinese government right now. Chris Hill: Bill Mann always good talking to you, thanks for being here.
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18157.0
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2022-12-03 00:00:00 UTC
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Why Taboola Stock Skyrocketed This Week
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AAPL
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https://www.nasdaq.com/articles/why-taboola-stock-skyrocketed-this-week
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nan
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nan
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What happened
Shares of Taboola (NASDAQ: TBLA) soared 56% this past week, according to data from S&P Global Market Intelligence, after the advertising company struck a blockbuster deal with Yahoo!.
So what
Under the terms of the agreement, Taboola will serve as Yahoo!'s exclusive digital advertising partner across its websites. Taboola will run the native ads on Yahoo!'s properties spanning news, sports, finance, and more that collectively reach nearly 900 million monthly active users.
As part of the deal, Yahoo! will also receive a roughly 25% equity stake in Taboola and a seat on the ad company's board of directors.
"Yahoo! is an internet pioneer, representing one of the largest, most trusted, and most sophisticated publishers in the world," Taboola CEO Adam Singolda said in a press release. "Everywhere I look, I see a rocket ship growth opportunity for both of us -- native, e-commerce, video, header bidding (display), and more."
The transaction is projected to close in the first quarter of 2023, subject to shareholder and regulatory approval. Taboola expects the partnership to be "highly accretive" to its revenue and free cash flow post-closing.
Now what
The agreement would cement Taboola's position as a leading native advertising platform at a time when advertisers and publishers are searching for new ways to monetize their sites. The impact of Apple's privacy changes on Facebook's and other social media sites' ad-targeting abilities, along with Google's plans to reduce its reliance on cookies to power its data-collection efforts, are forcing marketers to seek out effective alternatives. Taboola is emerging as one such option. Investors, in turn, are bidding up its stock price to reflect its improved prospects in the digital ad arena.
10 stocks we like better than Taboola.com
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Taboola.com 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
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. Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, and Meta Platforms. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of Taboola (NASDAQ: TBLA) soared 56% this past week, according to data from S&P Global Market Intelligence, after the advertising company struck a blockbuster deal with Yahoo!. is an internet pioneer, representing one of the largest, most trusted, and most sophisticated publishers in the world," Taboola CEO Adam Singolda said in a press release. The impact of Apple's privacy changes on Facebook's and other social media sites' ad-targeting abilities, along with Google's plans to reduce its reliance on cookies to power its data-collection efforts, are forcing marketers to seek out effective alternatives.
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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. The Motley Fool has positions in and recommends Alphabet, Apple, and Meta Platforms. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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What happened Shares of Taboola (NASDAQ: TBLA) soared 56% this past week, according to data from S&P Global Market Intelligence, after the advertising company struck a blockbuster deal with Yahoo!. Now what The agreement would cement Taboola's position as a leading native advertising platform at a time when advertisers and publishers are searching for new ways to monetize their sites. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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Taboola will run the native ads on Yahoo! That's right -- they think these 10 stocks are even better buys. The Motley Fool has positions in and recommends Alphabet, Apple, and Meta Platforms.
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18158.0
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2022-12-03 00:00:00 UTC
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73% of Warren Buffett's Portfolio Is in These 5 Stocks as 2022 Winds Down
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AAPL
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https://www.nasdaq.com/articles/73-of-warren-buffetts-portfolio-is-in-these-5-stocks-as-2022-winds-down
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nan
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nan
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What are Warren Buffett's favorite stocks? You could argue for several candidates. However, ultimately, the answer boils down to which stocks he is invested in most heavily.
On that score, no guesswork is required. Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) and its wholly owned subsidiary, New England Asset Management, reveal all of their holdings on a quarterly basis. And as 2022 winds down, just five stocks account for a little over 73% of the value in Buffett's portfolio.
1. Apple
Apple (NASDAQ: AAPL) ranks by far as the top Buffett stock. Berkshire Hathaway directly owns nearly 895 million shares of the consumer tech giant. New England Asset Management owns close to 20.5 million additional shares. Between these two positions, Apple makes up a whopping 39% of Berkshire Hathaway's total portfolio.
Buffett clearly remains a big fan of Apple. You could even make the case that he's betting more heavily on the company through Berkshire Hathaway's new stake in Taiwan Semiconductor, which is an enormously important chipmaker for Apple.
Like most other stocks, Apple hasn't had a great year in 2022. However, the company still has solid growth prospects over the long term. Don't expect it to relinquish the top spot among Buffett's holdings anytime soon.
2. Bank of America
Buffett isn't as enthusiastic about bank stocks as he used to be. However, he obviously still likes Bank of America (NYSE: BAC) quite a bit. The financial services company makes up 11.2% of Berkshire Hathaway's portfolio, including shares owned by New England Asset Management.
Although Bank of America's share price has tumbled this year, the stock could be almost a no-brainer pick to buy for 2023. Higher interest rates will boost the financial giant's net interest income. Meanwhile, its loan volume continues to grow.
3. Chevron
Chevron (NYSE: CVX) surged into the No. 3 spot among Buffett stocks this year. It now makes up 9% of Berkshire Hathaway's portfolio, including the more than 4.4 million shares owned by New England Asset Management.
The oil giant stands out as one of Buffett's biggest winners this year. Chevron could be able to keep this momentum going into 2023 if oil prices remain high. However, even if crude oil prices drop significantly, management expects to continue buying back shares and paying an attractive dividend.
4. Coca-Cola
Buffett loves Coca-Cola's (NYSE: KO) soft drinks -- in 2016, he stated that he drinks at least five Diet Cokes or Cherry Cokes every day. He also loves Coca-Cola stock. It makes up 7.3% of Berkshire Hathaway's equity portfolio.
The beverage company's stock has handily beaten the S&P 500 this year, but management hinted during the Q3 conference call that inflation could present more problems for it in 2023 than it has thus far. Even so, look for Coca-Cola to remain a Buffett favorite for years to come.
5. American Express
American Express (NYSE: AXP) ranks as Berkshire Hathaway's fifth-largest holding, representing 6.9% of the conglomerate's total portfolio. It has owned a significant position in AmEx since 1993, making it Berkshire Hathaway's second longest-held stock. American Express is also one of only five public companies in which Berkshire Hathaway owns a stake of 20% or more.
Macroeconomic worries have weighed on AmEx's stock price this year, but it's nonetheless beating the market. And with the shares trading now at less than 14 times expected earnings, American Express could be a top value stock to buy for 2023.
10 stocks we like better than American Express
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 American Express wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 1, 2022
Bank of America is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Keith Speights has positions in Apple, Bank of America, and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway, long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) ranks by far as the top Buffett stock. You could even make the case that he's betting more heavily on the company through Berkshire Hathaway's new stake in Taiwan Semiconductor, which is an enormously important chipmaker for Apple. However, even if crude oil prices drop significantly, management expects to continue buying back shares and paying an attractive dividend.
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Apple Apple (NASDAQ: AAPL) ranks by far as the top Buffett stock. The financial services company makes up 11.2% of Berkshire Hathaway's portfolio, including shares owned by New England Asset Management. American Express American Express (NYSE: AXP) ranks as Berkshire Hathaway's fifth-largest holding, representing 6.9% of the conglomerate's total portfolio.
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Apple Apple (NASDAQ: AAPL) ranks by far as the top Buffett stock. Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) and its wholly owned subsidiary, New England Asset Management, reveal all of their holdings on a quarterly basis. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Bank of America is an advertising partner of The Ascent, a Motley Fool company.
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Apple Apple (NASDAQ: AAPL) ranks by far as the top Buffett stock. 3 spot among Buffett stocks this year. Even so, look for Coca-Cola to remain a Buffett favorite for years to come.
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18159.0
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2022-12-02 00:00:00 UTC
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Apple (AAPL) Dips More Than Broader Markets: What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-dips-more-than-broader-markets%3A-what-you-should-know-4
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nan
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nan
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In the latest trading session, Apple (AAPL) closed at $147.81, marking a -0.34% move from the previous day. This change lagged the S&P 500's 0.12% loss on the day. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq added 0.05%.
Heading into today, shares of the maker of iPhones, iPads and other products had gained 6.79% over the past month, lagging the Computer and Technology sector's gain of 8.67% and outpacing the S&P 500's gain of 5.93% in that time.
Investors will be hoping for strength from Apple as it approaches its next earnings release. On that day, Apple is projected to report earnings of $1.97 per share, which would represent a year-over-year decline of 6.19%. Our most recent consensus estimate is calling for quarterly revenue of $123.05 billion, down 0.72% from the year-ago period.
AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.24 per share and revenue of $407.15 billion. These results would represent year-over-year changes of +2.13% and +3.25%, respectively.
It is also important to note the recent changes to analyst estimates for Apple. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 1.61% lower within the past month. Apple is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Apple has a Forward P/E ratio of 23.78 right now. For comparison, its industry has an average Forward P/E of 8.79, which means Apple is trading at a premium to the group.
Investors should also note that AAPL has a PEG ratio of 1.9 right now. 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 was holding an average PEG ratio of 2.56 at yesterday's closing price.
The Computer - Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 207, which puts it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the latest trading session, Apple (AAPL) closed at $147.81, marking a -0.34% move from the previous day. AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.24 per share and revenue of $407.15 billion. Investors should also note that AAPL has a PEG ratio of 1.9 right now.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. In the latest trading session, Apple (AAPL) closed at $147.81, marking a -0.34% move from the previous day. AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.24 per share and revenue of $407.15 billion.
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AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.24 per share and revenue of $407.15 billion. In the latest trading session, Apple (AAPL) closed at $147.81, marking a -0.34% move from the previous day. Investors should also note that AAPL has a PEG ratio of 1.9 right now.
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In the latest trading session, Apple (AAPL) closed at $147.81, marking a -0.34% move from the previous day. AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.24 per share and revenue of $407.15 billion. Investors should also note that AAPL has a PEG ratio of 1.9 right now.
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18160.0
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2022-12-02 00:00:00 UTC
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US STOCKS-Wall St futures slide after robust November jobs report
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-futures-slide-after-robust-november-jobs-report
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nan
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nan
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By Bansari Mayur Kamdar and Shashwat Chauhan
Dec 2 (Reuters) - U.S. stock index futures fell sharply on Friday as higher-than-expected job additions in November poured cold water on investor expectations of the Federal Reserve easing its aggressive monetary policy tightening.
The Labor Department's jobs report showed nonfarm payrolls rose by 263,000, compared with an estimated 200,000, as U.S. employers hired more workers than expected in November and raised wages despite mounting worries of a recession.
The U.S. unemployment rate remained unchanged, as expected.
"This is an employment market that continues to remain hot and the wage gains are going to be out of their comfort zones," said Jason Pride, chief investment officer for private wealth at Glenmede in Philadelphia.
"Hotter labor market means the Fed is going to stay on their tightening campaign or remain higher for longer which is not going to be taken well by the overall economy or the markets."
Wall Street indexes closed mixed on Thursday following a sharp rally the day before sparked by Fed Chair Jerome Powell's comments on scaling back interest rates hikes as early as December.
Thursday's moves followed a mixed bag of economic data, including the personal consumption expenditure index, the Fed's preferred inflation metric, which was better than expected, while manufacturing activity shrank in November for the first time in 2-1/2 years.
Investors now see an 87% chance that the U.S. central bank will increase interest rates by 50 basis points in December, down from 91% before the jobs data was published on Friday. FEDWATCH
The rate-setting Federal Open Market Committee meets on Dec. 13-14, capping a volatile year that saw the central bank respond to the fastest outbreak of inflation since the 1980s, with the fastest increase in interest rates since then to try to offset it.
Growth and technology companies such as Apple Inc AAPL.O and Nvidia Corp NVDA.O fell 1.6% and 3.2%, respectively, in trading before the bell, as rising Treasury yields pressured the rate-sensitive megacap stocks.
At 08:51 a.m. ET, Dow e-minis 1YMcv1 were down 411 points, or 1.19%, S&P 500 e-minis EScv1 were down 59.75 points, or 1.46%, and Nasdaq 100 e-minis NQcv1 were down 251 points, or 2.08%.
Semiconductor company Marvell Technology Inc MRVL.O tumbled 6.4% in premarket trading after quarterly earnings and revenue missed expectations.
(Reporting by Shubham Batra, Shashwat Chauhan, Ankika Biswas and Bansari Mayur Kamdar in Bengaluru; Editing by Shounak Dasgupta)
((Shubham.Batra@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Growth and technology companies such as Apple Inc AAPL.O and Nvidia Corp NVDA.O fell 1.6% and 3.2%, respectively, in trading before the bell, as rising Treasury yields pressured the rate-sensitive megacap stocks. By Bansari Mayur Kamdar and Shashwat Chauhan Dec 2 (Reuters) - U.S. stock index futures fell sharply on Friday as higher-than-expected job additions in November poured cold water on investor expectations of the Federal Reserve easing its aggressive monetary policy tightening. Wall Street indexes closed mixed on Thursday following a sharp rally the day before sparked by Fed Chair Jerome Powell's comments on scaling back interest rates hikes as early as December.
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Growth and technology companies such as Apple Inc AAPL.O and Nvidia Corp NVDA.O fell 1.6% and 3.2%, respectively, in trading before the bell, as rising Treasury yields pressured the rate-sensitive megacap stocks. By Bansari Mayur Kamdar and Shashwat Chauhan Dec 2 (Reuters) - U.S. stock index futures fell sharply on Friday as higher-than-expected job additions in November poured cold water on investor expectations of the Federal Reserve easing its aggressive monetary policy tightening. Investors now see an 87% chance that the U.S. central bank will increase interest rates by 50 basis points in December, down from 91% before the jobs data was published on Friday.
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Growth and technology companies such as Apple Inc AAPL.O and Nvidia Corp NVDA.O fell 1.6% and 3.2%, respectively, in trading before the bell, as rising Treasury yields pressured the rate-sensitive megacap stocks. By Bansari Mayur Kamdar and Shashwat Chauhan Dec 2 (Reuters) - U.S. stock index futures fell sharply on Friday as higher-than-expected job additions in November poured cold water on investor expectations of the Federal Reserve easing its aggressive monetary policy tightening. Thursday's moves followed a mixed bag of economic data, including the personal consumption expenditure index, the Fed's preferred inflation metric, which was better than expected, while manufacturing activity shrank in November for the first time in 2-1/2 years.
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Growth and technology companies such as Apple Inc AAPL.O and Nvidia Corp NVDA.O fell 1.6% and 3.2%, respectively, in trading before the bell, as rising Treasury yields pressured the rate-sensitive megacap stocks. By Bansari Mayur Kamdar and Shashwat Chauhan Dec 2 (Reuters) - U.S. stock index futures fell sharply on Friday as higher-than-expected job additions in November poured cold water on investor expectations of the Federal Reserve easing its aggressive monetary policy tightening. Wall Street indexes closed mixed on Thursday following a sharp rally the day before sparked by Fed Chair Jerome Powell's comments on scaling back interest rates hikes as early as December.
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18161.0
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2022-12-02 00:00:00 UTC
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US STOCKS-S&P 500 ends slightly lower after jobs report
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-ends-slightly-lower-after-jobs-report
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nan
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nan
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By Chuck Mikolajczak
NEW YORK, Dec 2 (Reuters) - The S&P 500 closed slightly lower on Friday, although major indexes rallied off their worst levels of the day, as the November payrolls report fueled expectations the Federal Reserve would maintain its path of interest rate hikes to combat inflation.
The Labor Department's jobs report showed rose by 263,000, above expectations of 200,000 and wage growth accelerated even as recession concerns increase.
The U.S. unemployment rate remained unchanged, as expected, at 3.7%.
"Wage growth has been in an uptrend since August," said Brian Jacobsen, senior investment strategist at Allspring Global Investment in Menomonee Falls, Wisconsin.
"We will have to see that trend reverse for the Fed to be comfortable with a pause. Until then, they’ll continue to taper towards a pause."
Investors have been looking for signs of weakness in the labor market, especially wages, as a precursor to faster cooling of inflation that will enable the Fed to slow and eventually stop its current rate hike cycle.
Stocks had rallied earlier in the week after Fed Chair Jerome Powell's comments on scaling back interest rates hikes as early as December.
The Dow Jones Industrial Average .DJI rose 34.87 points, or 0.1%, to 34,429.88, the S&P 500 .SPX lost 4.87 points, or 0.12%, to 4,071.7 and the Nasdaq Composite .IXIC dropped 20.95 points, or 0.18%, to 11,461.50.
Still, equities ended the session off their lowest levels of the day that saw each of the major indexes tumble at least 1%, with the Dow managing a slight gain.
"If anything, I am actually encouraged by how the market is clawing its way back from the level we were at today. It is another indication the market is looking for at least a seasonal December rally," said Sam Stovall, chief investment strategist at CFRA in New York.
"The market is beginning to look across the valley and say, 'OK, a year from now the Fed will likely be on hold and considering cutting rates.'"
The rate-setting Federal Open Market Committee meets on Dec. 13-14, the final meeting in a volatile year that saw the central bank attempt to stifle the fastest rate of inflation since the 1980s with record interest rates increases.
The major averages notched a second straight week of gains, with the S&P 500 climbing 1.13%, the Dow gaining 0.24% and the Nasdaq rising 2.1%.
Growth and technology companies such as Apple Inc AAPL.O, down 0.34%, and Amazon AMZN.O, off 1.43%, were pressured by concerns over rising rates but pared declines as U.S. Treasury yields eased throughout the day off earlier highs. The S&P 500 growth index .IGX declined 0.29% while technology shares .SPLRCT were among the worst performing among the 11 major S&P 500 sectors with a fall of 0.55%.
Ford Motor Co F.N declined 1.56% on lower vehicle sales in November, while DoorDash Inc DASH.N 3.38% shed after RBC downgraded the food delivery firm's stock.
Advancing issues outnumbered declining ones on the NYSE by a 1.15-to-1 ratio; on Nasdaq, a 1.35-to-1 ratio favored advancers.
The S&P 500 posted 20 new 52-week highs and no new lows; the Nasdaq Composite recorded 86 new highs and 92 new lows.
(Reporting by Chuck Mikolajczak; Editing by Cynthia Osterman)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Growth and technology companies such as Apple Inc AAPL.O, down 0.34%, and Amazon AMZN.O, off 1.43%, were pressured by concerns over rising rates but pared declines as U.S. Treasury yields eased throughout the day off earlier highs. By Chuck Mikolajczak NEW YORK, Dec 2 (Reuters) - The S&P 500 closed slightly lower on Friday, although major indexes rallied off their worst levels of the day, as the November payrolls report fueled expectations the Federal Reserve would maintain its path of interest rate hikes to combat inflation. Investors have been looking for signs of weakness in the labor market, especially wages, as a precursor to faster cooling of inflation that will enable the Fed to slow and eventually stop its current rate hike cycle.
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Growth and technology companies such as Apple Inc AAPL.O, down 0.34%, and Amazon AMZN.O, off 1.43%, were pressured by concerns over rising rates but pared declines as U.S. Treasury yields eased throughout the day off earlier highs. By Chuck Mikolajczak NEW YORK, Dec 2 (Reuters) - The S&P 500 closed slightly lower on Friday, although major indexes rallied off their worst levels of the day, as the November payrolls report fueled expectations the Federal Reserve would maintain its path of interest rate hikes to combat inflation. The rate-setting Federal Open Market Committee meets on Dec. 13-14, the final meeting in a volatile year that saw the central bank attempt to stifle the fastest rate of inflation since the 1980s with record interest rates increases.
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Growth and technology companies such as Apple Inc AAPL.O, down 0.34%, and Amazon AMZN.O, off 1.43%, were pressured by concerns over rising rates but pared declines as U.S. Treasury yields eased throughout the day off earlier highs. By Chuck Mikolajczak NEW YORK, Dec 2 (Reuters) - The S&P 500 closed slightly lower on Friday, although major indexes rallied off their worst levels of the day, as the November payrolls report fueled expectations the Federal Reserve would maintain its path of interest rate hikes to combat inflation. Investors have been looking for signs of weakness in the labor market, especially wages, as a precursor to faster cooling of inflation that will enable the Fed to slow and eventually stop its current rate hike cycle.
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Growth and technology companies such as Apple Inc AAPL.O, down 0.34%, and Amazon AMZN.O, off 1.43%, were pressured by concerns over rising rates but pared declines as U.S. Treasury yields eased throughout the day off earlier highs. By Chuck Mikolajczak NEW YORK, Dec 2 (Reuters) - The S&P 500 closed slightly lower on Friday, although major indexes rallied off their worst levels of the day, as the November payrolls report fueled expectations the Federal Reserve would maintain its path of interest rate hikes to combat inflation. The major averages notched a second straight week of gains, with the S&P 500 climbing 1.13%, the Dow gaining 0.24% and the Nasdaq rising 2.1%.
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18162.0
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2022-12-02 00:00:00 UTC
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After Hours Most Active for Dec 2, 2022 : ITUB, BBD, VALE, ABEV, AMZN, AAPL, QQQ, GOOGL, GRAB, CMCSA, F, T
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-dec-2-2022-%3A-itub-bbd-vale-abev-amzn-aapl-qqq-googl-grab-cmcsa
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -18.89 to 11,975.37. The total After hours volume is currently 87,716,413 shares traded.
The following are the most active stocks for the after hours session:
Itau Unibanco Banco Holding SA (ITUB) is -0.01 at $5.03, with 9,965,329 shares traded. As reported by Zacks, the current mean recommendation for ITUB is in the "buy range".
Banco Bradesco Sa (BBD) is unchanged at $2.95, with 8,294,821 shares traded. As reported by Zacks, the current mean recommendation for BBD is in the "buy range".
VALE S.A. (VALE) is unchanged at $16.72, with 5,294,305 shares traded. As reported by Zacks, the current mean recommendation for VALE is in the "buy range".
Ambev S.A. (ABEV) is +0.01 at $3.11, with 4,827,876 shares traded. ABEV's current last sale is 103.67% of the target price of $3.
Amazon.com, Inc. (AMZN) is -0.05 at $94.08, with 3,540,743 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Apple Inc. (AAPL) is -0.18 at $147.63, with 3,213,878 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2023. The consensus EPS forecast is $1.5. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is -0.43 at $292.12, with 3,048,084 shares traded. This represents a 14.89% increase from its 52 Week Low.
Alphabet Inc. (GOOGL) is -0.24 at $100.20, with 2,430,664 shares traded. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
Grab Holdings Limited (GRAB) is unchanged at $3.16, with 2,231,961 shares traded. As reported by Zacks, the current mean recommendation for GRAB is in the "buy range".
Comcast Corporation (CMCSA) is -0.11 at $35.75, with 1,869,824 shares traded. CMCSA's current last sale is 80.34% of the target price of $44.5.
Ford Motor Company (F) is -0.01 at $13.85, with 1,666,059 shares traded. F's current last sale is 92.33% of the target price of $15.
AT&T Inc. (T) is -0.02 at $19.00, with 1,578,497 shares traded. T's current last sale is 84.44% 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 -0.18 at $147.63, with 3,213,878 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Itau Unibanco Banco Holding SA (ITUB) is -0.01 at $5.03, with 9,965,329 shares traded.
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Apple Inc. (AAPL) is -0.18 at $147.63, with 3,213,878 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Itau Unibanco Banco Holding SA (ITUB) is -0.01 at $5.03, with 9,965,329 shares traded.
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Apple Inc. (AAPL) is -0.18 at $147.63, with 3,213,878 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 VALE is in the "buy range".
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Apple Inc. (AAPL) is -0.18 at $147.63, with 3,213,878 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Amazon.com, Inc. (AMZN) is -0.05 at $94.08, with 3,540,743 shares traded.
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18163.0
|
2022-12-02 00:00:00 UTC
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US STOCKS-Wall Street closes modestly lower after jobs report
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-closes-modestly-lower-after-jobs-report
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nan
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nan
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By Chuck Mikolajczak
NEW YORK, Dec 2 (Reuters) - The S&P 500 closed slightly lower on Friday, although major indexes rallied off their worst levels of the day, as the November payrolls report fueled expectations the Federal Reserve would maintain its path of interest rate hikes to combat inflation.
The Labor Department's jobs report showed rose by 263,000, above expectations of 200,000 and wage growth accelerated even as recession concerns increase.
The U.S. unemployment rate remained unchanged, as expected, at 3.7%.
"Wage growth has been in an uptrend since August," said Brian Jacobsen, senior investment strategist at Allspring Global Investment in Menomonee Falls, Wisconsin.
"We will have to see that trend reverse for the Fed to be comfortable with a pause. Until then, they’ll continue to taper towards a pause."
Investors have been looking for signs of weakness in the labor market, especially wages, as a precursor to faster cooling of inflation that will enable the Fed to slow and eventually stop its current rate hike cycle.
Stocks had rallied earlier in the week after Fed Chair Jerome Powell's comments on scaling back interest rates hikes as early as December.
According to preliminary data, the S&P 500 .SPX lost 5.17 points, or 0.13%, to end at 4,071.40 points, while the Nasdaq Composite .IXIC lost 20.76 points, or 0.18%, to 11,461.69. The Dow Jones Industrial Average .DJI rose 26.73 points, or 0.08%, to 34,421.74.
Still, equities ended the session off their lowest levels of the day that saw each of the major indexes tumble at least 1%.
"If anything, I am actually encouraged by how the market is clawing its way back from the level we were at today. It is another indication the market is looking for at least a seasonal December rally," said Sam Stovall, chief investment strategist at CFRA in New York.
"The market is beginning to look across the valley and say, 'OK, a year from now the Fed will likely be on hold and considering cutting rates.'"
The rate-setting Federal Open Market Committee meets on Dec. 13-14, the final meeting in a volatile year that saw the central bank attempt to stifle the fastest rate of inflation since the 1980s with record interest rates increases.
Even with Friday's weakness, the major averages notched a second straight week of gains.
Growth and technology companies such as Apple Inc AAPL.O, down and Amazon AMZN.O were pressured by concerns over rising rates. The S&P 500 growth index .IGX declined while technology shares .SPLRCT were the worst performing among the 11 major S&P 500 sectors.
Ford Motor Co F.N declined on lower vehicle sales in November, while DoorDash Inc DASH.N was lower after RBC downgraded the food delivery firm's stock.
(Reporting by Chuck Mikolajczak; Editing by Cynthia Osterman)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Growth and technology companies such as Apple Inc AAPL.O, down and Amazon AMZN.O were pressured by concerns over rising rates. By Chuck Mikolajczak NEW YORK, Dec 2 (Reuters) - The S&P 500 closed slightly lower on Friday, although major indexes rallied off their worst levels of the day, as the November payrolls report fueled expectations the Federal Reserve would maintain its path of interest rate hikes to combat inflation. Investors have been looking for signs of weakness in the labor market, especially wages, as a precursor to faster cooling of inflation that will enable the Fed to slow and eventually stop its current rate hike cycle.
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Growth and technology companies such as Apple Inc AAPL.O, down and Amazon AMZN.O were pressured by concerns over rising rates. By Chuck Mikolajczak NEW YORK, Dec 2 (Reuters) - The S&P 500 closed slightly lower on Friday, although major indexes rallied off their worst levels of the day, as the November payrolls report fueled expectations the Federal Reserve would maintain its path of interest rate hikes to combat inflation. According to preliminary data, the S&P 500 .SPX lost 5.17 points, or 0.13%, to end at 4,071.40 points, while the Nasdaq Composite .IXIC lost 20.76 points, or 0.18%, to 11,461.69.
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Growth and technology companies such as Apple Inc AAPL.O, down and Amazon AMZN.O were pressured by concerns over rising rates. By Chuck Mikolajczak NEW YORK, Dec 2 (Reuters) - The S&P 500 closed slightly lower on Friday, although major indexes rallied off their worst levels of the day, as the November payrolls report fueled expectations the Federal Reserve would maintain its path of interest rate hikes to combat inflation. Investors have been looking for signs of weakness in the labor market, especially wages, as a precursor to faster cooling of inflation that will enable the Fed to slow and eventually stop its current rate hike cycle.
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Growth and technology companies such as Apple Inc AAPL.O, down and Amazon AMZN.O were pressured by concerns over rising rates. By Chuck Mikolajczak NEW YORK, Dec 2 (Reuters) - The S&P 500 closed slightly lower on Friday, although major indexes rallied off their worst levels of the day, as the November payrolls report fueled expectations the Federal Reserve would maintain its path of interest rate hikes to combat inflation. The Dow Jones Industrial Average .DJI rose 26.73 points, or 0.08%, to 34,421.74.
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18164.0
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2022-12-02 00:00:00 UTC
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US STOCKS-Wall Street falls as jobs report keeps Fed on hike path
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-falls-as-jobs-report-keeps-fed-on-hike-path
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nan
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nan
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By Chuck Mikolajczak
NEW YORK, Dec 2 (Reuters) - U.S. stocks fell on Friday, although major indexes recovered from their lowest levels, as the November payrolls report fueled expectations the Federal Reserve would maintain its path of interest rate hikes to combat inflation.
The Labor Department's jobs report showed rose by 263,000, above expectations of 200,000 and wage growth accelerated even as recession concerns increase.
The U.S. unemployment rate remained unchanged, as expected, at 3.7%.
Investors have been looking for signs of weakness in the labor market, especially wages, as a precursor to faster cooling of inflation that will enable the Fed to slow and eventually stop its current rate hike cycle.
Stocks had rallied earlier in the week after Fed Chair Jerome Powell's comments on scaling back interest rates hikes as early as December.
Still, equities were off their lowest levels of the day that saw each of the major indexes tumble at least 1%.
"If anything, I am actually encouraged by how the market is clawing its way back from the level we were at today, it is another indication the market is looking for at least a seasonal December rally," said Sam Stovall, chief investment strategist at CFRA in New York.
"The market is beginning to look across the valley and say, 'OK, a year from now the Fed will likely be on hold and considering cutting rates.'"
The rate-setting Federal Open Market Committee meets on Dec. 13-14, the final meeting in a volatile year that saw the central bank attempt to stifle the fastest rate of inflation since the 1980s with record interest rates increases.
The Dow Jones Industrial Average .DJI fell 99.32 points, or 0.29%, to 34,295.69, the S&P 500 .SPX lost 21.92 points, or 0.54%, to 4,054.65 and the Nasdaq Composite .IXIC dropped 85.66 points, or 0.75%, to 11,396.79.
Even with Friday's weakness, the S&P 500 and Nasdaq were poised for a second straight week of gains, while the Dow showed modest losses for the week.
Information technology shares .SPLRCT bore the brunt of selling pressure among the 11 major S&P 500 sectors, down 1.23% as the worst performer on the day.
Growth and technology companies such as Apple Inc AAPL.O, down 1.36%, and Amazon AMZN.O, off 1.36%, were pressured by concerns over rising rates. The S&P 500 growth index .IGX lost 0.79%.
Ford Motor Co F.N declined 2.13% on lower vehicle sales in November, while DoorDash Inc DASH.N shed 2.10% after RBC downgraded the food delivery firm's stock.
Declining issues outnumbered advancing ones on the NYSE by a 1.22-to-1 ratio; on Nasdaq, a 1.01-to-1 ratio favored decliners.
The S&P 500 posted 17 new 52-week highs and no new lows; the Nasdaq Composite recorded 59 new highs and 84 new lows.
(Reporting by Chuck Mikolajczak; Editing by Cynthia Osterman)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Growth and technology companies such as Apple Inc AAPL.O, down 1.36%, and Amazon AMZN.O, off 1.36%, were pressured by concerns over rising rates. By Chuck Mikolajczak NEW YORK, Dec 2 (Reuters) - U.S. stocks fell on Friday, although major indexes recovered from their lowest levels, as the November payrolls report fueled expectations the Federal Reserve would maintain its path of interest rate hikes to combat inflation. Investors have been looking for signs of weakness in the labor market, especially wages, as a precursor to faster cooling of inflation that will enable the Fed to slow and eventually stop its current rate hike cycle.
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Growth and technology companies such as Apple Inc AAPL.O, down 1.36%, and Amazon AMZN.O, off 1.36%, were pressured by concerns over rising rates. By Chuck Mikolajczak NEW YORK, Dec 2 (Reuters) - U.S. stocks fell on Friday, although major indexes recovered from their lowest levels, as the November payrolls report fueled expectations the Federal Reserve would maintain its path of interest rate hikes to combat inflation. The rate-setting Federal Open Market Committee meets on Dec. 13-14, the final meeting in a volatile year that saw the central bank attempt to stifle the fastest rate of inflation since the 1980s with record interest rates increases.
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Growth and technology companies such as Apple Inc AAPL.O, down 1.36%, and Amazon AMZN.O, off 1.36%, were pressured by concerns over rising rates. By Chuck Mikolajczak NEW YORK, Dec 2 (Reuters) - U.S. stocks fell on Friday, although major indexes recovered from their lowest levels, as the November payrolls report fueled expectations the Federal Reserve would maintain its path of interest rate hikes to combat inflation. Investors have been looking for signs of weakness in the labor market, especially wages, as a precursor to faster cooling of inflation that will enable the Fed to slow and eventually stop its current rate hike cycle.
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Growth and technology companies such as Apple Inc AAPL.O, down 1.36%, and Amazon AMZN.O, off 1.36%, were pressured by concerns over rising rates. By Chuck Mikolajczak NEW YORK, Dec 2 (Reuters) - U.S. stocks fell on Friday, although major indexes recovered from their lowest levels, as the November payrolls report fueled expectations the Federal Reserve would maintain its path of interest rate hikes to combat inflation. Stocks had rallied earlier in the week after Fed Chair Jerome Powell's comments on scaling back interest rates hikes as early as December.
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18165.0
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2022-12-02 00:00:00 UTC
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Top Stock Reports for Apple, IBM & Elevance Health
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AAPL
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https://www.nasdaq.com/articles/top-stock-reports-for-apple-ibm-elevance-health
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nan
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nan
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Friday, December 2, 2022
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), International Business Machines Corporation (IBM) and Elevance Health Inc. (ELV). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Apple shares held up better than the Zacks Tech sector this year (down -17.5% vs. -30%), but have modestly lagged the S&P 500 index's -15.6% decline). The discretionary aspect of the iPhone handset purchase decision in a weakening macroeconomic landscape notwithstanding, the big uncertainty in the Apple story has been China and its zero-Covid policy.
Mac revenues are expected to be negatively impacted by forex. Apple expects Mac revenues to decline substantially year-over-year during the December quarter. Services revenue growth is expected to be negatively impacted by challenging macroeconomic conditions, unfavorable forex, as well as weakness in digital advertising and gaming.
However, Apple’s fourth-quarter fiscal 2022 results benefited from strong iPhone and Mac revenues. Although Services business grew at a slower pace, subscriber base continued to expand in the reported quarter.
(You can read the full research report on Apple here >>>)
Shares of IBM have outperformed the Zacks Computer - Integrated Systems industry over the past year (+27.6% vs. +7.6%). The company reported solid third-quarter 2022 results, wherein both the bottom and the top lines beat the Zacks Consensus Estimate. Synergies from the Red Hat buyout are bolstering its competitive position in the hybrid cloud market.
IBM’s growth is expected to be driven primarily by analytics, cloud computing, and security in the long haul. A combination of a better business mix, improving operating leverage through productivity gains and increased investment in growth opportunities will likely drive profitability in the forthcoming quarters.
However, IBM is facing stiff competition in the cloud computing market from the likes of Amazon Web Services and Microsoft Azure. Higher debt levels amid extensive restructuring activities pose a concern for the company. High integration risk from continuous acquisition spree is another headwind.
(You can read the full research report on IBM here >>>)
Shares of Elevance Health have outperformed the Zacks Medical Services industry over the past year (+31.4% vs. -27.3%). The company’s improving top-line can be attributed to premium rate increases and higher memberships. Acquisitions and collaborations have enabled the company to strengthen its business portfolio. Please note that Elevance is the new name of Anthem.
Its well-performing Medicare and Medicaid businesses, coupled with several contract wins, are expected to drive its membership going ahead. Adjusted net income is anticipated to be more than $28.95 per share, higher than the prior outlook of greater than $28.70.
However, the company's escalating costs continue to put pressure on margins. Declining cash flows are also concerning. Its balance sheet with a massive debt of more than $21 billion can affect financial flexibility. As such, the stock warrants a cautious stance.
(You can read the full research report on Elevance Health here >>>)
Other noteworthy reports we are featuring today include Intercontinental Exchange, Inc. (ICE), Charter Communications, Inc. (CHTR), and Archer-Daniels-Midland Company (ADM).
Sheraz Mian
Director of Research
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Apple (AAPL) Banks on Services to Counter Weak iPhone Demand
IBM Rides on Solid Demand Trends for Hybrid Cloud and AI
Elevance's (ELV) Strategic Buyouts & Product Expansion Aid
Featured Reports
Intercontinental (ICE) Banks on Buyouts Amid High Costs
Per the Zacks analyst, Intercontinental Exchange is set to grow on a number of acquisitions and cost synergies. However, rising expenses weigh on margin expansion.
Mobile & Internet Subscriber Gain Benefits Charter (CHTR)
Per the Zacks analyst, higher subscriber strength in residential and commercial internet services along with broadening Spectrum Mobile user base is driving Charter's top line.
Hershey (HSY) Benefits From Prudent Buyouts & Solid Pricing
Per the Zacks analyst, Hershey's contributions from buyouts and higher prices are driving growth. In the third quarter, net sales included a 4.1-point benefit from the Pretzels and Dot's buyouts.
Diversified Product Mix Aids Itau (ITUB) Amid Cost Woes
Per Zacks analyst, Itau's (ITUB) diversified portfoli, expansion strategy and solid liquidity position might support its growth. Yet rising costs and any stress in the Brazilian economy are concerning
Pure Storage (PSTG) To Benefit from Strong Product Portfolio
Per the Zacks analyst, Pure Storage is gaining from robust demand for the company's diversified product portfolio. Global weak macro conditions and supply chain woes are major concerns.
Programs Aid Hexcel Corporation (HXL), Inflation Impacts Woe
Per the Zacks analyst, impressive set of programs tend to boost Hexcel's long-term growth prospects. Yet supply chains, and inflationary pressures still remain a challenge for the stock
Allscripts (MDRX) Continues to Gain From its Business Model
The Zacks analyst is upbeat about Allscripts' product offerings, including some of the comprehensive solutions presently available in the industry, despite its operation in a highly competitive space.
New Upgrades
Solid Customer Demand Drives Archer Daniel's (ADM) Growth
Per the Zacks analyst, Archer Daniel's is gaining from robust demand and solid product portfolio which has been driving growth in all segments. It expects to conclude 2022 on a solid note.
Halliburton (HAL) to Benefit from North American Exposure
The Zacks analyst believes that Halliburton can take advantage of the tight fundamentals of the North American land drilling space through its market-leading pressure pumping operations.
U.S. Federal clients, Design Services Aids Tetra Tech (TTEK)
Per the Zacks analyst, strong momentum across U.S. Federal clients, driven by new funding for water & environment and Tetra Tech's design and engineering services will lend momentum to the company.
New Downgrades
Elevated Expenses and Stiff Competition Hurt Moody's (MCO)
Per the Zacks analyst, Moody's efforts to grow inorganically are likely to keep costs high, thus hurting bottom line growth. Also, stiff competition across the credit rating industry remains a woe.
KB Home (KBH) Ails From Housing Slowness, Intense Inflation
Per the Zacks analyst, KB Home is experiencing moderate housing demand due to significant inflation, supply chain woes and rising affordability issues.
Allegiant (ALGT) Continues to Grapple With Rising Expenses
The Zacks Analyst is worried about the escalating fuel prices as they are likely to keep the bottom line under pressure.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report
International Business Machines Corporation (IBM) : Free Stock Analysis Report
Archer Daniels Midland Company (ADM) : Free Stock Analysis Report
Charter Communications, Inc. (CHTR) : Free Stock Analysis Report
Elevance Health, Inc. (ELV) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Apple (AAPL) Banks on Services to Counter Weak iPhone Demand IBM Rides on Solid Demand Trends for Hybrid Cloud and AI Elevance's (ELV) Strategic Buyouts & Product Expansion Aid Featured Reports Intercontinental (ICE) Banks on Buyouts Amid High Costs Per the Zacks analyst, Intercontinental Exchange is set to grow on a number of acquisitions and cost synergies. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), International Business Machines Corporation (IBM) and Elevance Health Inc. (ELV). Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report Archer Daniels Midland Company (ADM) : Free Stock Analysis Report Charter Communications, Inc. (CHTR) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), International Business Machines Corporation (IBM) and Elevance Health Inc. (ELV). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Apple (AAPL) Banks on Services to Counter Weak iPhone Demand IBM Rides on Solid Demand Trends for Hybrid Cloud and AI Elevance's (ELV) Strategic Buyouts & Product Expansion Aid Featured Reports Intercontinental (ICE) Banks on Buyouts Amid High Costs Per the Zacks analyst, Intercontinental Exchange is set to grow on a number of acquisitions and cost synergies. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report Archer Daniels Midland Company (ADM) : Free Stock Analysis Report Charter Communications, Inc. (CHTR) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), International Business Machines Corporation (IBM) and Elevance Health Inc. (ELV). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Apple (AAPL) Banks on Services to Counter Weak iPhone Demand IBM Rides on Solid Demand Trends for Hybrid Cloud and AI Elevance's (ELV) Strategic Buyouts & Product Expansion Aid Featured Reports Intercontinental (ICE) Banks on Buyouts Amid High Costs Per the Zacks analyst, Intercontinental Exchange is set to grow on a number of acquisitions and cost synergies. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report Archer Daniels Midland Company (ADM) : Free Stock Analysis Report Charter Communications, Inc. (CHTR) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here.
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Apple (AAPL) Banks on Services to Counter Weak iPhone Demand IBM Rides on Solid Demand Trends for Hybrid Cloud and AI Elevance's (ELV) Strategic Buyouts & Product Expansion Aid Featured Reports Intercontinental (ICE) Banks on Buyouts Amid High Costs Per the Zacks analyst, Intercontinental Exchange is set to grow on a number of acquisitions and cost synergies. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), International Business Machines Corporation (IBM) and Elevance Health Inc. (ELV). Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report Archer Daniels Midland Company (ADM) : Free Stock Analysis Report Charter Communications, Inc. (CHTR) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here.
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2022-12-02 00:00:00 UTC
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Nasdaq leads Wall St lower after robust November jobs data
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https://www.nasdaq.com/articles/nasdaq-leads-wall-st-lower-after-robust-november-jobs-data
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By Bansari Mayur Kamdar, Ankika Biswas and Medha Singh
Dec 2 (Reuters) - U.S. stock indexes fell on Friday, with the tech-heavy Nasdaq leading losses, as higher-than-expected job additions in November reignited investor concerns about the Federal Reserve continuing on its path of aggressive monetary policy tightening.
The Labor Department's jobs report showed nonfarm payrolls rose by 263,000, compared with an estimated 200,000, as U.S. employers hired more workers than expected in November and raised wages despite mounting worries of a recession.
The U.S. unemployment rate remained unchanged, as expected.
"Strong job creation and a big increase in wages underscore the Fed's argument that a lot more work needs to be done to get inflation under control," said James Knightley, chief international economist at ING.
"Adding to the Fed's problems, monetary conditions have loosened in recent weeks as the dollar and longer-dated Treasury yields have fallen and credit spreads have narrowed. This is undoing the tightening effects of the Fed's recent rate rises."
Knightley forecast further 50-basis point rate hikes in December and February, with the potential for tightening needing to go on for longer, according to him.
The strong jobs report has left investors rethinking the euphoric rally on Wednesday, sparked by Fed Chair Jerome Powell's comments on scaling back interest rates hikes as early as December.
"We continue to think the market is ahead of itself anticipating Fed easing in late 2023," Mike Schumacher, global head of macro strategy at Wells Fargo Corporate & Investment Banking, said.
The rate-setting Federal Open Market Committee meets on Dec. 13-14, capping a volatile year that saw the central bank respond to the fastest outbreak of inflation since the 1980s, with the fastest increase in interest rates since then to try to offset it.
At 12:12 p.m. ET, the Dow Jones Industrial Average .DJI was down 71.82 points, or 0.21%, at 34,323.19, the S&P 500 .SPX was down 18.28 points, or 0.45%, at 4,058.29, and the Nasdaq Composite .IXIC was down 80.53 points, or 0.70%, at 11,401.92.
Despite Friday's weakness, the S&P 500 and Nasdaq are on track to end their second straight week higher, while the Dow looks set for a muted end to the week.
Information technology shares .SPLRCT bore the brunt of selling pressure among the 11 S&P 500 sector indexes, and were down 1.2%.
Growth and technology companies such as Apple Inc AAPL.O and Nvidia Corp NVDA.O fell 1.2% and 2.7%, respectively, as Treasury yields recovered, pressuring rate-sensitive megacap stocks.
Ford Motor Co F.N slipped 1.3% on lower vehicle sales in November, while DoorDash Inc DASH.N lost 2.5% after RBC downgraded the food delivery firm's stock.
Declining issues outnumbered advancers for a 1.37-to-1 ratio on the NYSE and a 1.06-to-1 ratio on the Nasdaq.
The S&P index recorded 15 new 52-week highs and no new low, while the Nasdaq recorded 46 new highs and 72 new lows.
(Reporting by Ankika Biswas, Bansari Mayur Kamdar and Medha Singh in Bengaluru; Additional reporting by Shubham Batra and Shashwat Chauhan; Editing by Shounak Dasgupta)
((BansariMayur.Kamdar@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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Growth and technology companies such as Apple Inc AAPL.O and Nvidia Corp NVDA.O fell 1.2% and 2.7%, respectively, as Treasury yields recovered, pressuring rate-sensitive megacap stocks. By Bansari Mayur Kamdar, Ankika Biswas and Medha Singh Dec 2 (Reuters) - U.S. stock indexes fell on Friday, with the tech-heavy Nasdaq leading losses, as higher-than-expected job additions in November reignited investor concerns about the Federal Reserve continuing on its path of aggressive monetary policy tightening. The Labor Department's jobs report showed nonfarm payrolls rose by 263,000, compared with an estimated 200,000, as U.S. employers hired more workers than expected in November and raised wages despite mounting worries of a recession.
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Growth and technology companies such as Apple Inc AAPL.O and Nvidia Corp NVDA.O fell 1.2% and 2.7%, respectively, as Treasury yields recovered, pressuring rate-sensitive megacap stocks. By Bansari Mayur Kamdar, Ankika Biswas and Medha Singh Dec 2 (Reuters) - U.S. stock indexes fell on Friday, with the tech-heavy Nasdaq leading losses, as higher-than-expected job additions in November reignited investor concerns about the Federal Reserve continuing on its path of aggressive monetary policy tightening. The S&P index recorded 15 new 52-week highs and no new low, while the Nasdaq recorded 46 new highs and 72 new lows.
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Growth and technology companies such as Apple Inc AAPL.O and Nvidia Corp NVDA.O fell 1.2% and 2.7%, respectively, as Treasury yields recovered, pressuring rate-sensitive megacap stocks. By Bansari Mayur Kamdar, Ankika Biswas and Medha Singh Dec 2 (Reuters) - U.S. stock indexes fell on Friday, with the tech-heavy Nasdaq leading losses, as higher-than-expected job additions in November reignited investor concerns about the Federal Reserve continuing on its path of aggressive monetary policy tightening. The strong jobs report has left investors rethinking the euphoric rally on Wednesday, sparked by Fed Chair Jerome Powell's comments on scaling back interest rates hikes as early as December.
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Growth and technology companies such as Apple Inc AAPL.O and Nvidia Corp NVDA.O fell 1.2% and 2.7%, respectively, as Treasury yields recovered, pressuring rate-sensitive megacap stocks. By Bansari Mayur Kamdar, Ankika Biswas and Medha Singh Dec 2 (Reuters) - U.S. stock indexes fell on Friday, with the tech-heavy Nasdaq leading losses, as higher-than-expected job additions in November reignited investor concerns about the Federal Reserve continuing on its path of aggressive monetary policy tightening. Knightley forecast further 50-basis point rate hikes in December and February, with the potential for tightening needing to go on for longer, according to him.
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2022-12-02 00:00:00 UTC
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Paramount's (PARA) Pluto TV AVOD Service Launches in Canada
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https://www.nasdaq.com/articles/paramounts-para-pluto-tv-avod-service-launches-in-canada
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Paramount Global’s PARA ad-supported streaming service Pluto TV continues its international rollout with the launch of the service in Canada through a partnership with Toronto-based Corus Entertainment, which has a large library of food and lifestyle programming and operates Global News.
The service will feature 110 themed linear FAST (free, ad-supported) channels, including some built around durable Paramount franchises such as CSI, NCIS, and South Park, as well as 20,000 hours of on-demand programming.
The Canadian version of Pluto will also have some Canuck-centric features, including more than 30 channels of local content. That batch includes six Home & DIY channels, four Food channels, and news and opinion programming from Global News, focused on more than a dozen of cities and provinces.
Local programming includes series such as Love It or List It, Property Brothers, Bryan Inc., Border Security, and Chopped Canada. It also includes a series of French-language channels that serve particularly the audiences in Quebec. Those channels include Dora TV FR, Tortues Ninja TV, South FR, Doctor Who FR, Degrassi FR, Alerte a Malibu, and Les Nouveaux Detectives.
All children's channels on PlutoTV Canada are ad-supported, which will be sold by Corus and licensed by Toronto-based advertising provider ThinkTV. Corus already serves the Canadian children's advertising market with linear channels, such as Teletoon and YTV.
Paramount Global Price and Consensus
Paramount Global price-consensus-chart | Paramount Global Quote
Strength in Pluto TV to Aid Global Subscriber Base
Pluto, which was launched in 2013, is already distributed in about 30 countries and territories, including the United States, Latin America, Central Europe and the Nordic countries of Europe. The service has a vast programming lineup that features more than 70 unique and locally curated channels, which are now live in each country. This is expected to boost the streamer’s global monthly active users (MAU) in the near term.
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.
International Expansion Builds Strength for Paramount
Among other factors, the company’s constant efforts to expand the availability of its streaming services internationally are noteworthy. Beyond Europe, Paramount is gearing up for an India launch for Paramount+ in 2023. The company’s FAST service Pluto TV is also making international waves, recently turning up in the Nordics followed by Canada.
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.
Paramount shares have outperformed Disney and Netflix on a year-to-date basis, while underperforming Apple.
This Zacks Rank #5 (Strong Sell) company has lost 36.5% of its shares year to date compared with the Zacks Consumer Discretionary space, which fell 35.2% in the same period.
While Apple shares are down 15.4%, Disney and Netflix have dropped 37.9% and 52.4%, respectively.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
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. The service will feature 110 themed linear FAST (free, ad-supported) channels, including some built around durable Paramount franchises such as CSI, NCIS, and South Park, as well as 20,000 hours of on-demand programming.
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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+. Paramount Global’s PARA ad-supported streaming service Pluto TV continues its international rollout with the launch of the service in Canada through a partnership with Toronto-based Corus Entertainment, which has a large library of food and lifestyle programming and operates Global News.
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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+. Paramount Global’s PARA ad-supported streaming service Pluto TV continues its international rollout with the launch of the service in Canada through a partnership with Toronto-based Corus Entertainment, which has a large library of food and lifestyle programming and operates Global News.
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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. Paramount Global’s PARA ad-supported streaming service Pluto TV continues its international rollout with the launch of the service in Canada through a partnership with Toronto-based Corus Entertainment, which has a large library of food and lifestyle programming and operates Global News.
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2022-12-02 00:00:00 UTC
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3 Cheap Stocks to Buy Right Now
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https://www.nasdaq.com/articles/3-cheap-stocks-to-buy-right-now-4
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What do Warren Buffett, Peter Lynch, and Seth Klarman all have in common? Not only are they widely viewed as some of the greatest investors of the modern era, they are all notable value investors.
Value investing is an approach in which investors seek to buy stocks that they feel are underappreciated by the broader market. Sometimes these stocks are cheap because they are dealing with a temporary challenge that long-term investors believe will ameliorate. Value investors believe that these stocks will eventually increase in price when the rest of the market comes around to them.
This approach is sometimes compared to trying to buy a $100 bill for $80. The current market environment, in which the S&P 500 and Nasdaq are in bear territory and many stocks with high valuation multiples have fallen sharply, is a good reminder that value is always important. Here are three cheap value stocks that you can buy now, before the market comes around to them.
Image source: Getty Images.
1. Williams-Sonoma
Williams-Sonoma (NYSE: WSM) is a great example of a good company dealing with some temporary headwinds, making it a good fit for value investors. Shares of the omnichannel furniture retailer (which owns brands such as Pottery Barn and West Elm) are down 44% from their 52-week high. That's because the market fears inflation and a slowing economy will curb demand for high-end furniture. But these concerns seem to be priced into the stock, which now looks attractive at just 7 times earnings.
With a valuation this cheap, you might expect that Williams-Sonoma is a value trap with declining growth. That isn't the case at all -- the company has grown earnings per share at an average of 50% a year over the last three years, and earnings per share are now three times what they were in 2019. Furthermore, this is no stodgy brick-and-mortar furniture store -- 66% of Williams-Sonoma's revenue comes from its e-commerce channel.
Williams-Sonoma's revenue could grow significantly over time as consumers shift toward buying more housewares and furniture online. According to data from Euromonitor, this category is underpenetrated by e-commerce at just 30%. Williams-Sonoma is capitalizing on this trend with e-commerce revenue expanding at a 9.7% compound annual growth rate (CAGR) over the past 20 years.
Like many value stocks, Williams-Sonoma pays attention to its shareholders. The company has returned $2.5 billion to them over the past five years through dividends and share repurchases. Williams-Sonoma's dividend currently looks appealing with a yield of 2.7%.
With a strong track record of earnings growth and more growth to come as e-commerce becomes a bigger part of the home goods industry, Williams-Sonoma looks like a top growth stock disguised as a value stock. At just 7 times earnings, it's a top buy for value investors.
2. Fortune Brands Home & Security
Like Williams-Sonoma, Fortune Brands Home & Security (NYSE: FBHS) is a company with a long history of creating shareholder value that is down markedly from its 52-week high due to the same concerns about inflation and housing. As with Williams-Sonoma, this has created the opportunity to buy a great stock at a cheap valuation. At 11 times earnings, Fortune Brands isn't quite as inexpensive as Williams-Sonoma, but this is still an attractive valuation and one that is cheaper than the broader market.
Fortune Brands owns and operates over two dozen home and security brands across three different segments -- water innovations, outdoor and security, and cabinets. You may be familiar with some of the company's brands such as Moen, Master Lock, Therma-Tru Doors, and SentrySafe. While it might not sound like the most exciting business, there's nothing boring about the company's long-term performance. From 2012 to 2021, Fortune Brands increased earnings per share from $0.83 to $5.73 -- an incredible 24% CAGR.
The company has also returned over $4 billion to shareholders via a combination of dividends and share repurchases over the years. With these characteristics, it's unsurprising that the stock has returned over 400% since going public in 2011.
Fortune Brands is a company with a strong track record, a portfolio of high-quality brands, and a commitment to shareholder returns -- and the stock is trading at an attractive valuation, making it a buy for value investors.
3. Taiwan Semiconductor
You might not think of a high-tech semiconductor manufacturer as a value stock, but after a 44% sell-off from its 52-week high, that's exactly what Taiwan Semiconductor Manufacturing (NYSE: TSM) is. Concerns about a supply glut in the cyclical semiconductor space have caused Taiwan Semiconductor to sell off, and shares of the world's largest contract chip manufacturer now trade at just 14 times earnings.
Over the long term, the company's products will continue to be in demand as it manufactures chips for the likes of Apple, Nvidia, and Advanced Micro Devices. These chips go into end markets that will drive demand over time, like automotive, mobile devices, high-performance computing, and artificial intelligence.
Taiwan Semiconductor's ability to make the smallest and most advanced chips in the market allow it to exercise enviable pricing power, as demonstrated by the company's 57% gross margin.
Like the other value stocks on this list, Taiwan Semiconductor returns capital to shareholders. It has paid a dividend for 17 years in a row and the shares currently yield 2.3%. The stock has returned 375% over the past decade, making the current slide look like an attractive entry point to get on board this long-term winner.
Value investing is an approach that has proven its mettle over time. In the current market environment, high-quality long-term growth stories like these three that you wouldn't normally think of as value stocks have entered value territory, making them compelling buys.
10 stocks we like better than Williams-Sonoma
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 Williams-Sonoma 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 November 7, 2022
Michael Byrne has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, Taiwan Semiconductor Manufacturing, and Williams-Sonoma. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The current market environment, in which the S&P 500 and Nasdaq are in bear territory and many stocks with high valuation multiples have fallen sharply, is a good reminder that value is always important. Taiwan Semiconductor's ability to make the smallest and most advanced chips in the market allow it to exercise enviable pricing power, as demonstrated by the company's 57% gross margin. In the current market environment, high-quality long-term growth stories like these three that you wouldn't normally think of as value stocks have entered value territory, making them compelling buys.
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Fortune Brands Home & Security Like Williams-Sonoma, Fortune Brands Home & Security (NYSE: FBHS) is a company with a long history of creating shareholder value that is down markedly from its 52-week high due to the same concerns about inflation and housing. In the current market environment, high-quality long-term growth stories like these three that you wouldn't normally think of as value stocks have entered value territory, making them compelling buys. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, Taiwan Semiconductor Manufacturing, and Williams-Sonoma.
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With a strong track record of earnings growth and more growth to come as e-commerce becomes a bigger part of the home goods industry, Williams-Sonoma looks like a top growth stock disguised as a value stock. Fortune Brands is a company with a strong track record, a portfolio of high-quality brands, and a commitment to shareholder returns -- and the stock is trading at an attractive valuation, making it a buy for value investors. See the 10 stocks *Stock Advisor returns as of November 7, 2022 Michael Byrne has no position in any of the stocks mentioned.
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At just 7 times earnings, it's a top buy for value investors. Fortune Brands is a company with a strong track record, a portfolio of high-quality brands, and a commitment to shareholder returns -- and the stock is trading at an attractive valuation, making it a buy for value investors. Like the other value stocks on this list, Taiwan Semiconductor returns capital to shareholders.
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2022-12-02 00:00:00 UTC
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My Best Warren Buffett Stock to Buy in December
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AAPL
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https://www.nasdaq.com/articles/my-best-warren-buffett-stock-to-buy-in-december
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Warren Buffett is a legendary stock picker. His choices are widely followed by stock market investors worldwide. This video will highlight my top Warren Buffett stock to buy in December.
*Stock prices used were the afternoon prices of Nov. 29, 2022. The video was published on Dec. 1, 2022.
10 stocks we like better than Apple
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 7, 2022
Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This video will highlight my top Warren Buffett stock to buy in December. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. If you choose to subscribe through his link, he will earn some extra money that supports his channel.
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This video will highlight my top Warren Buffett stock to buy in December. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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10 stocks we like better than Apple When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of November 7, 2022 Parkev Tatevosian, CFA 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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This video will highlight my top Warren Buffett stock to buy in December. The Motley Fool has positions in and recommends Apple. His opinions remain his own and are unaffected by The Motley Fool.
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18170.0
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2022-12-02 00:00:00 UTC
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My Top Warren Buffett Stock to Buy and Hold in 2023 and Beyond
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AAPL
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https://www.nasdaq.com/articles/my-top-warren-buffett-stock-to-buy-and-hold-in-2023-and-beyond
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nan
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nan
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It pays to listen to those who are experts in their fields. And when it comes to investing, there aren't many specialists who are more celebrated than widely successful investor Warren Buffett. The "Oracle of Omaha" has led Berkshire Hathaway for several decades, helping it crush the broader market since he took over. Among the many companies he and his team have invested in, Apple (NASDAQ: AAPL) features as one of their favorite picks. The tech giant is Berkshire Hathaway's largest holding, and with good reason.
Let's consider why Apple is such a great stock pick, even amid the economic troubles that may persist well into next year.
AAPL data by YCharts
Old tricks are still working
One of the keys to Apple's success is its ability to deliver solid financial results in good times and bad. It continues to do just that. For example, the tech giant in its Q4 2022 earnings report, it reported $394.3 billion in revenue over the trailing-12-month (TTM) period, an increase of 8% year over year. Meanwhile, Apple's TTM net income of $99.8 billion marked a 5% increase year over year.
Although Apple's business has somewhat evolved in the past decade, it continues to generate the bulk of its sales from its hardware, especially the iPhone. But it isn't just Apple's famous smartphone that is doing well. In the fourth quarter of its fiscal 2022, which ended Sept. 24, Apple set all-time revenue records for its Mac devices.
It also set September quarter records for its iPhone and for its home, wearables, and accessories segment, which includes such devices as AirPods, HomePods, and the Apple Watch. Apple has developed a solid brand name, which allows it to retain the bulk of its customers -- many of whom switch to newer versions of its devices when they become available -- while also attracting new ones.
A survey conducted last year found that the iPhone had a loyalty rate of about 90%. In its September quarter, the tech giant set a new record for the number of upgraders and switchers for the iPhone. Apple will continue to generate solid sales from its iPhone, since mobile penetration is still relatively low in many parts of the world, especially in developing nations.
And, of course, future iterations of its prized device will continue to generate some enthusiasm among its existing users. In short, Apple's hardware business still hasn't peaked -- far from it.
Apple's push in payment services
As lucrative as Apple's devices are, the company's services segment is growing in importance. This unit is home to Apple TV+, iTunes, advertising products, iCloud, and more. Although these offerings are critical, the company's payment services are arguably the most promising. It includes Apple Pay, a mobile payment service; Apple Pay Later, a buy now, pay later (BNPL) offering; and Apple Card. It is no secret that the switch to digital forms of payment continues to gain traction.
That explains why more and more companies are dipping their toes into these waters. But Apple has an advantage over many of its competitors. The company already has a massive base of users to tap into. Apple's iPhone installed base exceeded 1 billion people last year. And as CEO Tim Cook recently said, "Our continued installed base growth across each geographic segment and each major product category represents a great foundation for future expansion of our ecosystem."
Apple's opportunities in the payment services industry are still in their (very) early innings. Last year, a survey found that only 6% of iPhone users who have activated Apple Pay use it for in-store transactions. But some 85% of retailers in the country accept this form of payment. Apple Pay's growing acceptance will help the company create a network effect as more merchants enrolled will attract more users and vice versa.
But as the data shows, there's still a massive gap to close between those who have activated Apple Pay and those who actually use it. Apple's relatively recent addition of its BNPL service may be intended to increase usage among iPhone holders. BNPL has gained traction lately, and analysts for Insider Intelligence project it to continue its upward path. This is one more reason investors should expect Apple Pay to rise in prominence in the coming years.
There is no ceiling for this stock
Some might point out that Apple is already worth over $2 trillion, making it the largest corporation (by market capitalization) in the technology industry and the entire world. But the company can still grow by leaps and bounds. Its sleek, expensive devices are still popular despite an economic slowdown, and the company's services segment, including its fintech efforts, boasts excellent long-term prospects. In other words, wouldn't rush to bet against Warren Buffett and his investment thesis for Apple.
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 November 7, 2022
Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), 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 data by YCharts Old tricks are still working One of the keys to Apple's success is its ability to deliver solid financial results in good times and bad. Among the many companies he and his team have invested in, Apple (NASDAQ: AAPL) features as one of their favorite picks. And as CEO Tim Cook recently said, "Our continued installed base growth across each geographic segment and each major product category represents a great foundation for future expansion of our ecosystem."
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Among the many companies he and his team have invested in, Apple (NASDAQ: AAPL) features as one of their favorite picks. AAPL data by YCharts Old tricks are still working One of the keys to Apple's success is its ability to deliver solid financial results in good times and bad. It includes Apple Pay, a mobile payment service; Apple Pay Later, a buy now, pay later (BNPL) offering; and Apple Card.
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Among the many companies he and his team have invested in, Apple (NASDAQ: AAPL) features as one of their favorite picks. AAPL data by YCharts Old tricks are still working One of the keys to Apple's success is its ability to deliver solid financial results in good times and bad. Apple's push in payment services As lucrative as Apple's devices are, the company's services segment is growing in importance.
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Among the many companies he and his team have invested in, Apple (NASDAQ: AAPL) features as one of their favorite picks. AAPL data by YCharts Old tricks are still working One of the keys to Apple's success is its ability to deliver solid financial results in good times and bad. Apple's push in payment services As lucrative as Apple's devices are, the company's services segment is growing in importance.
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18171.0
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2022-12-02 00:00:00 UTC
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CONSOL Energy and Whirlpool have been highlighted as Zacks Bull and Bear of the Day
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AAPL
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https://www.nasdaq.com/articles/consol-energy-and-whirlpool-have-been-highlighted-as-zacks-bull-and-bear-of-the-day
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nan
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nan
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For Immediate Release
Chicago, IL – December 02, 2022 – Zacks Equity Research shares CONSOL Energy CEIX as the Bull of the Day and Whirlpool Corp. WHR as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Apple AAPL, Tesla TSLA and Meta META.
Here is a synopsis of all five stocks:
Bull of the Day:
The Zacks Coal Industry has been scorching hot in 2022, up more than a triple-digit 110% and crushing the S&P 500's performance.
Further, the Industry is currently ranked in the top 14% of all Zacks Industries (36 out of 250).
Studies have shown that 50% of a stock's price movement can be attributed to the group it's in, making it crucial to ensure that investors target stocks in a thriving industry.
In fact, the top 50% of Zacks Ranked Industries outperform the bottom 50% by a factor of more than two to one.
A company residing in the realm that's witnessed positive earnings estimate revisions over the last several months isCONSOL Energy.
CONSOL Energy is a publicly owned producer and exporter of high-BTU bituminous thermal coal and is one of the leading energy companies in the United States.
Let's take a closer look at how the company currently stands.
Share Performance & Valuation
Year-to-date, CEIX shares have been unbelievably strong, up more than 230% and leaving the S&P 500's performance in the dust.
Over the last month, CEIX shares have continued on their market-beating trajectory, up nearly 20%.
Clearly, bulls have had complete control of this stock in 2022.
Currently, shares trade at a 1.4X forward price-to-sales ratio, above the 0.6X five-year margin and its Zacks Coal Industry average of 0.8X.
CEIX carries a Value Style Score of "B."
Growth Outlook
It's hard to ignore CEIX's growth profile, further bolstered by its Style Score of "A" for Growth.
The Zacks Consensus EPS Estimate of $11.05 for its current fiscal year (FY22) suggests a Y/Y improvement of more than 430%. And in FY23, estimates suggest a further 150% of bottom-line growth.
The earnings growth comes on top of forecasted Y/Y revenue upticks of 57% in FY22 and 35% in FY23.
Dividends
Let's face it – we all love to get paid.
Fortunately for those with an appetite for income, CEIX's 5.4% annual dividend yield provides precisely that.
Bottom Line
One of the best ways investors can find expected winners is by utilizing the Zacks Rank – one of the most potent market tools out there that gives investors a massive advantage.
The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
CONSOL Energy would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).
Bear of the Day:
Bears have had a tight grip on the Zacks Household Appliances Industry in 2022, down more than 40% and widely lagging behind the S&P 500.
Further, the industry is currently ranked in the bottom 11% of all Zacks Industries (222 out of 250).
A company residing in the realm that's seen its near-term earnings outlook come under pressure over the last several months is Whirlpool Corp..
Whirlpool is one of the largest manufacturers of home appliances in the world. The company's portfolio of products can be broadly classified into laundry appliances, refrigerators and freezers, cooking appliances, and other small household appliances.
Let's dive deeper into how the appliance titan stacks up currently.
Share Performance
WHR shares have been no exception to the general market's woes in 2022, down more than 30% and lagging behind the S&P 500 notably.
Still, over the last month, WHR shares have tacked on a strong 15% in value, indicating that buyers have finally stepped up.
Growth Outlook
Whirlpool carries a less-than-favorable growth profile, with earnings forecasted to decrease by 28% in its current fiscal year (FY22) and a further 9.4% in FY23.
The projected earnings slowdown comes on top of forecasted Y/Y revenue decreases of 9% in FY22 and 4% in FY23.
Quarterly Performance
In its latest release, Whirlpool fell short of the Zacks Consensus EPS Estimate by nearly 20%, snapping a long streak of positive surprises.
Further, revenue results have consistently come in under expectations as of late, with the company falling short of sales estimates in five consecutive quarters. Below is a chart illustrating the company's revenue on a quarterly basis.
Bottom Line
A slowdown in growth and negative earnings estimate revisions from analysts paint a less-than-ideal picture for the company in the short term.
Whirlpool Corp. is a Zacks Rank #5 (Strong Sell), telling us it has a weak near-term earnings outlook.
Investors should pivot to stocks that either carry a Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy) – these stocks have a much stronger earnings outlook and potential to deliver explosive gains in the short-term.
Additional content:
Apple Up Nearly +5%: Should You Buy the Shares?
Apple shares jumped 4.86% in the last trading session, part of the big rally that followed Fed Chair Powell's signal that interest rates were going to rise at a slower clip, probably starting this month, and probably resulting in the soft landing that we are all hoping for.
Rates are at 3.75-4% right now, and now they could end up at 5% or higher. And then, they're going to hold there for as long as it takes to get inflation down. That's a bitter pill, but easier to swallow because it's old news.
Of course, moderation is good for the stock market, which has also been absorbing the drop in job openings, which is seen as a signal that Fed actions are getting us somewhere. Inflation numbers will be out later today, so there's no doubt that there will be some reaction to that, as well.
Inflation should hurt Apple, which sells this ultra-premium device, and some analysts have said that it could temper sales next year. You don't have to change your phone after all when you're seeing your savings melt away. Unless you have to.
But it would be a mistake to read Apple quarter to quarter. The company has a fairly captive user base that has so much stuff on its cloud, music and other apps that it's really hard to switch even if you think that they're being a bully [Tesla, Meta and others are certainly asserting this last issue]. And its devices are pretty much the best available, so there just isn't much of an incentive to switch.
Therefore, even if people don't buy or upgrade with Apple in the near term, they will likely eventually get around to it. The robust services business will continue to generate significant revenues and the cash hoard can always come in handy.
What should have weighed on the shares, however, is the unrest within China because that's where its devices are put together. If its Chinese factories are not functional, and that's how things appear to be right now, Apple simply won't have enough product on the shelves. So Apple may give us a warning soon and estimates may have to be reset. Estimates have been coming down over the past quarter, and further downward revisions may be in the cards.
Unfortunately, the Fed is not giving us the pullback that would make Apple shares worth buying. Despite the deteriorating earnings scenario, Apple shares trade at a 23.3X P/E multiple, a 28% premium to the S&P 500 and a 7% premium to the technology sector. They are also trading at a 6% premium to their median level over the past five years. Therefore, the shares are not cheap.
Zacks has a #3 (Hold) rating on the shares and it seems like a good idea to wait for a better entry point.
Why Haven't You Looked at Zacks' Top Stocks?
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Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Whirlpool Corporation (WHR) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Consol Energy Inc. (CEIX) : 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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In addition, Zacks Equity Research provides analysis on Apple AAPL, Tesla TSLA and Meta META. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Whirlpool Corporation (WHR) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Consol Energy Inc. (CEIX) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Quarterly Performance In its latest release, Whirlpool fell short of the Zacks Consensus EPS Estimate by nearly 20%, snapping a long streak of positive surprises.
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In addition, Zacks Equity Research provides analysis on Apple AAPL, Tesla TSLA and Meta META. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Whirlpool Corporation (WHR) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Consol Energy Inc. (CEIX) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Growth Outlook Whirlpool carries a less-than-favorable growth profile, with earnings forecasted to decrease by 28% in its current fiscal year (FY22) and a further 9.4% in FY23.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Whirlpool Corporation (WHR) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Consol Energy Inc. (CEIX) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. In addition, Zacks Equity Research provides analysis on Apple AAPL, Tesla TSLA and Meta META. Investors should pivot to stocks that either carry a Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy) – these stocks have a much stronger earnings outlook and potential to deliver explosive gains in the short-term.
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In addition, Zacks Equity Research provides analysis on Apple AAPL, Tesla TSLA and Meta META. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Whirlpool Corporation (WHR) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Consol Energy Inc. (CEIX) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Further, the Industry is currently ranked in the top 14% of all Zacks Industries (36 out of 250).
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18172.0
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2022-12-02 00:00:00 UTC
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Apple Has a China Problem
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AAPL
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https://www.nasdaq.com/articles/apple-has-a-china-problem
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nan
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nan
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There's increasing unrest in China over the zero-COVID policy's impact on people's lives and the economy, but this tension has started to spill over to Apple (NASDAQ: AAPL). The company is one of the biggest outsourced manufacturing partners in the country and relies on China for nearly all of its products. In the video below, Travis Hoium highlights just how big the risk is, using Apple's own words.
*Stock prices used were end-of-day prices of Nov. 25, 2022. The video was published on Dec. 1, 2022.
10 stocks we like better than Apple
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 1, 2022
JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Travis Hoium has positions in Apple. 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. 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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There's increasing unrest in China over the zero-COVID policy's impact on people's lives and the economy, but this tension has started to spill over to Apple (NASDAQ: AAPL). The company is one of the biggest outsourced manufacturing partners in the country and relies on China for nearly all of its products. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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There's increasing unrest in China over the zero-COVID policy's impact on people's lives and the economy, but this tension has started to spill over to Apple (NASDAQ: AAPL). 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 JPMorgan Chase &.
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There's increasing unrest in China over the zero-COVID policy's impact on people's lives and the economy, but this tension has started to spill over to Apple (NASDAQ: AAPL). 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. The Motley Fool has positions in and recommends Apple and JPMorgan Chase &.
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There's increasing unrest in China over the zero-COVID policy's impact on people's lives and the economy, but this tension has started to spill over to Apple (NASDAQ: AAPL). 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.
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18173.0
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2022-12-02 00:00:00 UTC
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GRAPHIC-Global equity funds post biggest weekly outflow in six weeks
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AAPL
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https://www.nasdaq.com/articles/graphic-global-equity-funds-post-biggest-weekly-outflow-in-six-weeks
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nan
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nan
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Dec 2 (Reuters) - Global equity funds recorded enormous outflows in the week ended on Nov. 30 as investors booked profits - after a rally in the last month - amid concerns about global economic growth due to China's strict zero-COVID curbs.
According to Refinitiv Lipper data, investors withdrew a net $5.44 billion out of global equity funds, the highest since the week ended Oct. 19. MSCI's gauge of stocks across the globe .MIWD00000PUS gained about 6.8% in the last month.
The U.S. and Asian equity funds had outflows of $17.37 billion and about $170 million, respectively, although investors were net buyers in European funds with purchases worth $3.02 billion.
Among equity sector funds, tech and financials booked outflows of $484 million and $308 million respectively. Still, healthcare funds remained in demand for a seventh week, obtaining a net of $823 million in inflows.
Meanwhile, global bond funds also remained out of favour for a fourth consecutive week, recording outflows worth a net $14.14 billion.
Global short- and mid-term bond funds lost $3.51 billion in a 15th straight week of outflow, while investors exited $1.09 billion worth of high-yield funds after two weeks in a row of purchases.
However, safer money market funds and government bond funds remained in demand, obtaining a net of $29.07 billion, the biggest in four weeks, and $1.86 billion respectively.
Data for commodity funds showed energy funds received about $59 million, marking the sixth week of inflows, but precious metal funds had small outflows.
According to data available for 24,756 emerging market (EM) funds, equity funds secured $656 million in a second straight week of inflows. Bond funds obtained $105 million after witnessing outflows in the previous week.
Fund flows: Global equities, bonds and money markethttps://tmsnrt.rs/3XQfskt
Fund flows: Global equity sector fundshttps://tmsnrt.rs/3OY1TeU
Global bond fund flows in the week ended Nov 30https://tmsnrt.rs/3VmVeNw
Fund flows: EM equities and bondshttps://tmsnrt.rs/3VK3DKF
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; editing by Mark Heinrich)
((gaurav.dogra@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 2 (Reuters) - Global equity funds recorded enormous outflows in the week ended on Nov. 30 as investors booked profits - after a rally in the last month - amid concerns about global economic growth due to China's strict zero-COVID curbs. According to Refinitiv Lipper data, investors withdrew a net $5.44 billion out of global equity funds, the highest since the week ended Oct. 19. Meanwhile, global bond funds also remained out of favour for a fourth consecutive week, recording outflows worth a net $14.14 billion.
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Dec 2 (Reuters) - Global equity funds recorded enormous outflows in the week ended on Nov. 30 as investors booked profits - after a rally in the last month - amid concerns about global economic growth due to China's strict zero-COVID curbs. However, safer money market funds and government bond funds remained in demand, obtaining a net of $29.07 billion, the biggest in four weeks, and $1.86 billion respectively. Fund flows: Global equities, bonds and money markethttps://tmsnrt.rs/3XQfskt Fund flows: Global equity sector fundshttps://tmsnrt.rs/3OY1TeU Global bond fund flows in the week ended Nov 30https://tmsnrt.rs/3VmVeNw Fund flows: EM equities and bondshttps://tmsnrt.rs/3VK3DKF (Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; editing by Mark Heinrich) ((gaurav.dogra@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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Global short- and mid-term bond funds lost $3.51 billion in a 15th straight week of outflow, while investors exited $1.09 billion worth of high-yield funds after two weeks in a row of purchases. Data for commodity funds showed energy funds received about $59 million, marking the sixth week of inflows, but precious metal funds had small outflows. Fund flows: Global equities, bonds and money markethttps://tmsnrt.rs/3XQfskt Fund flows: Global equity sector fundshttps://tmsnrt.rs/3OY1TeU Global bond fund flows in the week ended Nov 30https://tmsnrt.rs/3VmVeNw Fund flows: EM equities and bondshttps://tmsnrt.rs/3VK3DKF (Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; editing by Mark Heinrich) ((gaurav.dogra@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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Still, healthcare funds remained in demand for a seventh week, obtaining a net of $823 million in inflows. Meanwhile, global bond funds also remained out of favour for a fourth consecutive week, recording outflows worth a net $14.14 billion. However, safer money market funds and government bond funds remained in demand, obtaining a net of $29.07 billion, the biggest in four weeks, and $1.86 billion respectively.
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18174.0
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2022-12-02 00:00:00 UTC
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My 3 Biggest Stock Market Predictions for December
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AAPL
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https://www.nasdaq.com/articles/my-3-biggest-stock-market-predictions-for-december-0
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nan
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With the market's tumultuous 2022 drawing to a close, December is the last stepping stone to go. The month is traditionally a strong one for the market, with the force of holiday spending driving returns.
But this hasn't been an average year, and the market is down by almost 16%. Will December herald another chapter of gloom in the bear market, or will the Santa Claus rally give way to a blistering start to 2023? In my view, a scenario that's somewhere in the middle of those two is the most likely. Here are three predictions that indicate why -- and what to do about them.
1. The Federal Reserve will set the tone for 2023
My biggest prediction for December is that the Federal Reserve will continue to be the single largest influencer of the market as a result of its ongoing mission to stem inflation by increasing the Federal Funds rate. Raising the Federal Funds rate increases the cost of borrowing money, which in turn influences the amount of liquidity in the economy, not to mention stock prices. So far, the trend has been for stocks, especially risky growth stocks, to fall when rates rise, as growth-phase companies are the ones most likely to need to take out debt to finance their expansions.
The question is whether the Fed will continue to raise interest rates at the same tempo as it preferred for most of 2022, or at a different pace. Take a look at this chart:
Effective Federal Funds Rate data by YCharts
As you can see, so far the Fed's hikes haven't caused the core inflation rate to decline. That implies they'll probably prefer to keep hiking at a rapid pace for a while longer, rather than slowing down. The takeaway for investors is to expect growth stocks to keep getting hammered for as long as inflation looks to be unimpeded.
For most people, it probably makes sense to avoid starting new positions in unprofitable companies unless you can tolerate sitting on losses for a while, especially if they aren't growing their top lines very rapidly. Remember, you can always buy shares of a market-tracking fund, like the SPDR S&P 500 ETF Trust, if you want to avoid taking on risks that are significantly different from those facing the entire market.
2. Inflation will take a bite out of (some) retailers and luxury brands
A second prediction about the stock market in December is that consumer-facing retailers and purveyors of pricey lifestyle products will start to feel the sting of inflation as it makes consumers more conscious about their purchasing activities. When people's wallets are feeling a bit light, luxuries are the first thing to go, whereas must-have goods like medicines, rent, and staple foods are the last to get cut from the household budget.
In that vein, investors should expect businesses selling expensive and relatively frivolous products -- like Tesla and Peloton -- to suffer, even with the bump from anticipated holiday sales on the way.
For investors, the logical move is to keep buying shares of all-weather businesses that make products people need regardless of what's going on in the economy.
Some companies will benefit as people look for places to make their dollars go further. In particular, low-cost sellers of bulk goods like Costco are apt to flourish, as the company's warehouses offer better deals than are available elsewhere. Furthermore, companies that don't sell directly to consumers are likely to be insulated from the effects of inflation. Don't expect people to suddenly need fewer medicines made by players like Vertex Pharmaceuticals, even if inflation trends higher.
3. Ongoing events in China will have negative effects
China is one of the centers of gravity in the global economy, and anything that significantly affects its economic output will cause cascading consequences pretty much everywhere else.
Enter the country's zero-COVID policy, wherein the public health initiatives being pursued with the aim of minimizing its coronavirus caseload come at the cost of temporarily shuttered factories and disrupted workplaces. Frequently, those stalled factories are intended to be making high-tech goods for companies like Apple, which maintains major manufacturing partners in China.
The closures have already led to Apple being able to ship fewer iPhones than it planned this year, and it's far from the only business affected. As the market hears more about exactly how much damage to expect to Apple's sales, it could become a problem for shareholders.
In the short term, there's not too much that investors can do, other than to be aware that there's likely more turbulence to come. In the long term, it might make sense to invest in companies that are less exposed to the risk of disruption in China, though it's presently unclear whether the zero-COVID policy will continue indefinitely or not.
10 stocks we like better than Walmart
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Stock Advisor returns as of October 26, 2022
Alex Carchidi has positions in Apple and Costco Wholesale. The Motley Fool has positions in and recommends Apple, Costco Wholesale, Peloton Interactive, Tesla, and Vertex Pharmaceuticals. 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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Raising the Federal Funds rate increases the cost of borrowing money, which in turn influences the amount of liquidity in the economy, not to mention stock prices. When people's wallets are feeling a bit light, luxuries are the first thing to go, whereas must-have goods like medicines, rent, and staple foods are the last to get cut from the household budget. Enter the country's zero-COVID policy, wherein the public health initiatives being pursued with the aim of minimizing its coronavirus caseload come at the cost of temporarily shuttered factories and disrupted workplaces.
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Raising the Federal Funds rate increases the cost of borrowing money, which in turn influences the amount of liquidity in the economy, not to mention stock prices. The Motley Fool has positions in and recommends Apple, Costco Wholesale, Peloton Interactive, Tesla, and Vertex Pharmaceuticals. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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The Federal Reserve will set the tone for 2023 My biggest prediction for December is that the Federal Reserve will continue to be the single largest influencer of the market as a result of its ongoing mission to stem inflation by increasing the Federal Funds rate. Inflation will take a bite out of (some) retailers and luxury brands A second prediction about the stock market in December is that consumer-facing retailers and purveyors of pricey lifestyle products will start to feel the sting of inflation as it makes consumers more conscious about their purchasing activities. See the 10 stocks Stock Advisor returns as of October 26, 2022 Alex Carchidi has positions in Apple and Costco Wholesale.
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In the long term, it might make sense to invest in companies that are less exposed to the risk of disruption in China, though it's presently unclear whether the zero-COVID policy will continue indefinitely or not. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Walmart wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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18175.0
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2022-12-02 00:00:00 UTC
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Is WisdomTree U.S. LargeCap Dividend ETF (DLN) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-wisdomtree-u.s.-largecap-dividend-etf-dln-a-strong-etf-right-now-6
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The WisdomTree U.S. LargeCap Dividend ETF (DLN) was launched on 06/16/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
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.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other 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 Wisdomtree. DLN has been able to amass assets over $3.84 billion, making it one of the average sized ETFs in the Style Box - Large Cap Value. This particular fund seeks to match the performance of the WisdomTree U.S. LargeCap Dividend Index before fees and expenses.
The WisdomTree U.S. LargeCap Dividend Index is a fundamentally weighted index that measures the performance of the large-capitalization segment of the U.S. dividend-paying market.
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 0.28% for DLN, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 2.39%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 17.90% of the portfolio, the fund has heaviest allocation to the Healthcare sector; Consumer Staples and Information Technology round out the top three.
When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 4.22% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Apple Inc (AAPL).
Its top 10 holdings account for approximately 26.94% of DLN's total assets under management.
Performance and Risk
The ETF has lost about -0.51% and was up about 6.97% so far this year and in the past one year (as of 12/02/2022), respectively. DLN has traded between $55.26 and $66.91 during this last 52-week period.
DLN has a beta of 0.90 and standard deviation of 23.57% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 299 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. LargeCap Dividend 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 $55.75 billion in assets, Vanguard Value ETF has $108.01 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.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
WisdomTree U.S. LargeCap Dividend ETF (DLN): 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, Microsoft Corp (MSFT) accounts for about 4.22% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Apple Inc (AAPL). Click to get this free report WisdomTree U.S. LargeCap Dividend ETF (DLN): 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. The WisdomTree U.S. LargeCap Dividend ETF (DLN) was launched on 06/16/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
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Click to get this free report WisdomTree U.S. LargeCap Dividend ETF (DLN): 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, Microsoft Corp (MSFT) accounts for about 4.22% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Apple Inc (AAPL). Alternatives WisdomTree U.S. LargeCap Dividend 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 WisdomTree U.S. LargeCap Dividend ETF (DLN): 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, Microsoft Corp (MSFT) accounts for about 4.22% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Apple Inc (AAPL). The WisdomTree U.S. LargeCap Dividend ETF (DLN) was launched on 06/16/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
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When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 4.22% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Apple Inc (AAPL). Click to get this free report WisdomTree U.S. LargeCap Dividend ETF (DLN): 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. The WisdomTree U.S. LargeCap Dividend ETF (DLN) was launched on 06/16/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
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18176.0
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2022-12-02 00:00:00 UTC
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Should iShares Russell 1000 ETF (IWB) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-ishares-russell-1000-etf-iwb-be-on-your-investing-radar-4
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The iShares Russell 1000 ETF (IWB) was launched on 05/15/2000, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $29.05 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
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 0.15%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.40%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 25.80% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.56% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
Performance and Risk
IWB seeks to match the performance of the Russell 1000 Index before fees and expenses. The Russell 1000 Index measures the performance of the large-capitalization sector of the U.S. equity market. The Index is a float-adjusted capitalization-weighted index of equity securities issued by the approximately 1,000 largest issuers in the Russell 3000 Index.
The ETF has lost about -14.75% so far this year and is down about -9.46% in the last one year (as of 12/02/2022). In the past 52-week period, it has traded between $196.94 and $266.11.
The ETF has a beta of 1.01 and standard deviation of 25.37% for the trailing three-year period, making it a medium risk choice in the space. With about 1024 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell 1000 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IWB is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $311.30 billion in assets, SPDR S&P 500 ETF has $386.55 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares Russell 1000 ETF (IWB): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.56% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell 1000 ETF (IWB): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. The iShares Russell 1000 ETF (IWB) was launched on 05/15/2000, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report iShares Russell 1000 ETF (IWB): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.56% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). The iShares Russell 1000 ETF (IWB) was launched on 05/15/2000, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report iShares Russell 1000 ETF (IWB): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.56% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives IShares Russell 1000 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.56% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell 1000 ETF (IWB): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. The iShares Russell 1000 ETF (IWB) was launched on 05/15/2000, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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18177.0
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2022-12-02 00:00:00 UTC
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Why Are Reverse Stock Splits So Rare?
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AAPL
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https://www.nasdaq.com/articles/why-are-reverse-stock-splits-so-rare
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These days, the standard (or "forward") stock split garners a lot of attention. In fact, some of the country's most prominent companies have enacted such splits in recent times, including Tesla, Apple, and Amazon.
By contrast, there have been relatively few reverse stock splits, even at a time when standard ones are occurring on a regular basis. Here's a brief look at why they are such elusive creatures.
Reverse financial engineering
Before looking at the "why" of reverse stock split elusiveness, let's first back up and take care of the "what" of this piece of financial engineering.
As its name implies, a reverse stock split is the opposite of a standard stock split. In the reverse variety, the number of shares outstanding shrinks, whereas with its more common sibling the share count increases. When a reverse stock split is enacted each share's price jumps suddenly and dramatically higher, rather than falling at once as with standard stock splits.
It's critical to note here that while it can be awfully gratifying to see a stock leap five, or 10, or 20 times almost out of the blue, the actual value of your holding doesn't change. With reverse stock splits, the increased price is mitigated by the reduced number of shares, so the dollar amount of equity you own stays the same.
For example, imagine a company's stock trading at $1 with 1,000 shares outstanding, giving it a market value of $1,000. After a 1-for-5 reverse split, there will be 200 shares outstanding at a price of $5. Although the price of each share is five times higher than before, each investor now has only one-fifth as many shares and the market cap remains unchanged at $1,000.
There are several compelling reasons for a publicly traded company to increase its stock price. A big one is stock exchange listing requirements: the major exchanges have minimum price requirements for companies. In the case of the Nasdaq, for example, the floor is $1 per share because it doesn't want to take on the look of a penny stock-trading marketplace.
If all goes well, a reverse split keeps the exchange happy while the company tries to figure out a way to improve its performance enough to organically increase the value of its stock.
Stock exchanges are not the only entities that insist on a minimum per-share price -- many investment funds (and other entities with equity portfolios) do, too. Demand for a stock, particularly one of a company that's not particularly well known, can be strongly affected by its presence in such portfolios. It's understandable that a company wouldn't want to drop off the radar screens of fund managers.
Most businesses that land on the more prominent exchanges, or in the portfolios of investment funds, have done so by being competent enough to get to a certain size. The ones that mismanage their operations badly enough (or are simply very unfortunate) are relatively uncommon, hence the rarity of the reverse stock split. After all, this is very often a desperation measure by a business in real trouble.
So are reverse stock splits good or bad?
In a word: neither.
The Motley Fool's research indicates that neither form of stock split, standard or reverse, is a reliable indicator of how a company's shares will perform over the long term.
A company that does a reverse split might take a price hit in the short term, likely because the move shines an uncomfortable light on its struggles. As with standard splits, though, medium- to long-term share price movements have more to do with the traditional factors affecting stocks. These include fundamental performance, the state of the macroeconomy, and investor expectations, among numerous other elements.
So while a reverse stock split is often indicative of a company in the throes of struggle, no investor should make a buy or sell decision based purely on such a move. Instead, you are far better served by thoughtfully weighing those longer-term factors.
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 October 26, 2022
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Eric Volkman has positions in Apple. The Motley Fool has positions in and recommends Amazon, Apple, and Tesla. The Motley Fool recommends Nasdaq 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 fact, some of the country's most prominent companies have enacted such splits in recent times, including Tesla, Apple, and Amazon. With reverse stock splits, the increased price is mitigated by the reduced number of shares, so the dollar amount of equity you own stays the same. So while a reverse stock split is often indicative of a company in the throes of struggle, no investor should make a buy or sell decision based purely on such a move.
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In fact, some of the country's most prominent companies have enacted such splits in recent times, including Tesla, Apple, and Amazon. The Motley Fool's research indicates that neither form of stock split, standard or reverse, is a reliable indicator of how a company's shares will perform over the long term. The Motley Fool recommends Nasdaq and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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As its name implies, a reverse stock split is the opposite of a standard stock split. When a reverse stock split is enacted each share's price jumps suddenly and dramatically higher, rather than falling at once as with standard stock splits. The Motley Fool's research indicates that neither form of stock split, standard or reverse, is a reliable indicator of how a company's shares will perform over the long term.
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After a 1-for-5 reverse split, there will be 200 shares outstanding at a price of $5. Most businesses that land on the more prominent exchanges, or in the portfolios of investment funds, have done so by being competent enough to get to a certain size. The Motley Fool's research indicates that neither form of stock split, standard or reverse, is a reliable indicator of how a company's shares will perform over the long term.
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18178.0
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2022-12-02 00:00:00 UTC
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Amazon Just Announced New Innovations to Take On Snowflake, Nvidia, and More
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AAPL
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https://www.nasdaq.com/articles/amazon-just-announced-new-innovations-to-take-on-snowflake-nvidia-and-more
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nan
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nan
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Every November, Amazon (NASDAQ: AMZN) holds its Re:Invent conference. where it unveils new innovations under Amazon Web Services.
AWS is the first-mover in cloud computing, a juggernaut that is likely Amazon's most valuable segment, and with tremendous resources to continue innovating. At this year's Re:Invent, Amazon unveiled some eye-opening high-end products and services built completely in-house, which should perhaps make its current third-party hardware and software suppliers nervous.
Vertically integrating more in-house software and hardware on AWS is akin to Amazon releasing private-label products to compete with high-end brands on its retail platform. However, due to AWS' ability to tightly integrate software and semiconductors with its underlying infrastructure, the vertical integration could end up being even more effective.
New in-house chips to power high-performance computing
One of the ways in which Amazon can lower costs for customers is by having them run workloads on its in-house processors. Amazon bought Annapurna Labs in 2015 in order to develop its own ARM-based semiconductor designs, and AWS has been building its chip capabilities ever since.
At first, Amazon used in-house processors to execute simple tasks at low costs; however, in recent years, Amazon's in-house processors have become more advanced. This year, AWS unveiled its latest Graviton 3E chips, which now have the capability to execute high-performance computing in the most advanced workloads, such as weather prediction and drug discovery. That's normally the arena of Advanced Micro Devices (NASDAQ: AMD) and Intel (NASDAQ: INTC).
Additionally, Amazon unveiled its second-generation Inferentia chip, which enables a system to learn from vast arrays of data, a process in AI called "inference." That puts Amazon in competition with Nvidia (NASDAQ: NVDA) GPUs, which are currently the gold standard in artificial intelligence processing.
While it's difficult to compare the new AWS chips with the current industry leaders, it seems likely that Amazon's silicon could be used to power workloads for customers highly concerned with cost and price-performance.
Make no mistake, the current chip leaders are very advanced as well, with tremendous research budgets at their disposal, and should retain their leadership status for the highest-performance workloads. However, if high-performance computing becomes more commoditized as time goes on, it's possible Amazon may be able to steal market share in highly advanced computing applications.
Image source: Getty Images.
New data analytics offerings to take on software leaders like Snowflake
In addition to vertically integrating its server systems with its own chips, AWS also unveiled more vertically integrated cloud software services, which take on some of the world's top data analytics software companies. Examples of new offerings include AWS DataZone, AWS Clean Rooms, and AWS Supply Chain, among several others.
AWS DataZone is a service that enables customers to link up their data from AWS, on-premises data centers, and other third-party data sources more seamlessly than current solutions. AWS Clean Rooms allows companies to collaborate by analyzing their combined datasets, without revealing private or sensitive underlying information within each set, thereby enabling greater data insights through collaboration. And AWS Supply Chain is a new software platform that analyzes data from a multitude of supply chain systems, allowing for real-time insights and collaboration across a company's entire supply chain, to get a better handle on the current state of supply and aligning it with changing customer demand.
The new DataZone services seem to put Amazon in competition with software juggernauts like Salesforce (NYSE: CRM), with its Tableau and Mulesoft services. Amazon Clean Rooms appears to take on Snowflake (NYSE: SNOW) and its Snowflake Data Exchange service. And AWS Supply Chain takes dead aim at enterprise resource planning juggernauts like SAP (NYSE: SAP).
Vertical integration brings many benefits to AWS and its customers
Could these new competitive services turn off the world's leading software companies and chipmakers from working with AWS? Probably, but the fact that AWS is the leading cloud infrastructure platform means these companies can't afford to boycott Amazon. AWS has a leading 33% share of the global cloud infrastructure market, according to Statista, and even more when you exclude Chinese vendors in their closed-off market.
For AWS customers, they benefit from having more choice. Third-party hardware and software companies will remain attractive for their concentrated R&D efforts and the ability to work across multiple clouds. However, the more in-house services Amazon can provide, the more attractive AWS becomes, as it provides optionality and bargaining power for AWS customers with these other vendors.
Amazon won't all of a sudden dominate the hardware or software space, but its vertical integration efforts certainly give investors in top tech stocks like AMD or Snowflake something to think about. After all, Apple (NASDAQ: AAPL) was able to completely cut out the once-dominant Intel processors for Macs, and it's working to fully replace Qualcomm (NASDAQ: QCOM) chips for the iPhone by next year with its own in-house designs.
Amazon will likely never cut out its software and hardware partners, because it will want to offer choice and selection, whereas the iPhone is just a single device. Still, the total addressable market for leading semiconductor and software firms in advanced computing and data analytics, the encroachment of AWS, and perhaps other vertically integrated clouds for that matter, is certainly something to consider for the long term.
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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. Billy Duberstein has positions in Amazon and Apple and has the following options: short January 2023 $210 calls on Apple. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Apple, Intel, Nvidia, Qualcomm, Salesforce, Inc., and Snowflake Inc. The Motley Fool recommends SAP SE and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After all, Apple (NASDAQ: AAPL) was able to completely cut out the once-dominant Intel processors for Macs, and it's working to fully replace Qualcomm (NASDAQ: QCOM) chips for the iPhone by next year with its own in-house designs. At this year's Re:Invent, Amazon unveiled some eye-opening high-end products and services built completely in-house, which should perhaps make its current third-party hardware and software suppliers nervous. Amazon won't all of a sudden dominate the hardware or software space, but its vertical integration efforts certainly give investors in top tech stocks like AMD or Snowflake something to think about.
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After all, Apple (NASDAQ: AAPL) was able to completely cut out the once-dominant Intel processors for Macs, and it's working to fully replace Qualcomm (NASDAQ: QCOM) chips for the iPhone by next year with its own in-house designs. New data analytics offerings to take on software leaders like Snowflake In addition to vertically integrating its server systems with its own chips, AWS also unveiled more vertically integrated cloud software services, which take on some of the world's top data analytics software companies. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Apple, Intel, Nvidia, Qualcomm, Salesforce, Inc., and Snowflake Inc.
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After all, Apple (NASDAQ: AAPL) was able to completely cut out the once-dominant Intel processors for Macs, and it's working to fully replace Qualcomm (NASDAQ: QCOM) chips for the iPhone by next year with its own in-house designs. New data analytics offerings to take on software leaders like Snowflake In addition to vertically integrating its server systems with its own chips, AWS also unveiled more vertically integrated cloud software services, which take on some of the world's top data analytics software companies. AWS DataZone is a service that enables customers to link up their data from AWS, on-premises data centers, and other third-party data sources more seamlessly than current solutions.
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After all, Apple (NASDAQ: AAPL) was able to completely cut out the once-dominant Intel processors for Macs, and it's working to fully replace Qualcomm (NASDAQ: QCOM) chips for the iPhone by next year with its own in-house designs. At this year's Re:Invent, Amazon unveiled some eye-opening high-end products and services built completely in-house, which should perhaps make its current third-party hardware and software suppliers nervous. New data analytics offerings to take on software leaders like Snowflake In addition to vertically integrating its server systems with its own chips, AWS also unveiled more vertically integrated cloud software services, which take on some of the world's top data analytics software companies.
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18179.0
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2022-12-02 00:00:00 UTC
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3 Top Tech Stocks to Buy Right Now
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AAPL
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https://www.nasdaq.com/articles/3-top-tech-stocks-to-buy-right-now-9
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nan
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nan
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Over the past year, rising interest rates drove many investors away from the market's higher-growth tech stocks. However, a lot of babies were tossed out with the bathwater during that brutal sell-off.
If you can tune out all the near-term noise and stomach some volatility, then it's time to pick up a few of those babies. Here are three promising tech stocks I'd buy in this challenging market: The Trade Desk (NASDAQ: TTD), Palo Alto Networks (NASDAQ: PANW), and Cisco Systems (NASDAQ: CSCO). Let's find out a bit more about these three top tech stocks.
Image source: Getty Images.
1. The Trade Desk
The Trade Desk operates the world's largest independent demand-side platform (DSP) for digital ads. DSPs enable advertisers to place real-time bids on advertising space across various digital platforms. It sells advertising space across desktop and mobile devices, but it generates most of its growth from the connected TV (CTV) market -- which has been booming as streaming video services supplant linear TV channels.
Many digital advertising companies struggled over the past year as Apple's (NASDAQ: AAPL) privacy update on iOS disrupted services that relied heavily on crafting targeted ads with third-party data. The Trade Desk addresses those challenges with Solimar, its new AI-powered platform, which accumulates and analyzes more first-party data for advertisers.
The Trade Desk's revenue rose 26% in 2020 as companies purchased fewer ads during the pandemic, but surged 43% in 2021 as those headwinds dissipated. It expects its revenue to rise at least 32% this year as the ongoing expansion of the CTV market offsets the slower growth of its desktop and mobile markets in this tough macro environment.
Its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) also grew 33% in 2020 and 77% in 2021, and it anticipates another 30% growth this year. The Trade Desk's stock isn't cheap at 31 times next year's adjusted EBITDA, but I believe its robust growth and exposure to long-term secular tailwinds justify that higher valuation.
2. Palo Alto Networks
Palo Alto Networks is a diversified cybersecurity company that operates three main platforms: Strata, which houses its on-site networking security tools; Prisma, which operates its cloud-native cybersecurity services; and Cortex, its platform for AI-powered threat detection services. Most of its growth has been driven by Prisma and Cortex, which it dubs its next-gen security (NGS) services, over the past several years.
Palo Alto serves more than 80,000 enterprise customers, including almost all of the Fortune 100 companies and the majority of the Global 2000 companies. That scale and diversification enable it to generate more stable growth and profits than many of its smaller cybersecurity peers.
Palo Alto's revenue and adjusted earnings rose 25% and 26%, respectively, in fiscal 2021 (which ended in July of the calendar year) and indicated it was well-insulated from the pandemic. In fiscal 2022, its revenue and adjusted earnings grew another 29% and 23%, respectively.
For fiscal 2023, it expects its revenue to increase 25% to 26% as its adjusted earnings grow 34% to 37%. It also expects to turn profitable by GAAP (generally accepted accounting principles) measures this year. Those rock-solid growth rates, which are seemingly impervious to the near-term macro headwinds, make Palo Alto a top bear market buy -- even if its stock looks a bit pricey at 53 times its forward adjusted earnings.
3. Cisco Systems
Cisco, the world's largest networking hardware company, is a solid pick for value-oriented income investors in this tough market. It's a slow-growth company, but it's been expanding its higher-growth cybersecurity and software businesses to gradually reduce its dependence on its slower sales of routers, switches, and other networking hardware.
Cisco's revenue rose just 1% in fiscal 2021 (which ended last July) as its adjusted earnings per share (EPS) remained flat. In fiscal 2022, its revenue and adjusted EPS grew 3% and 4%, respectively, even as its hardware business grappled with component shortages and supply chain disruptions throughout most of the year.
For fiscal 2023, it expects its revenue to rise 4.5% to 6.5% and for its adjusted EPS to grow 4% to 7%. That accelerating growth -- which it attributes to the market's pent-up demand for its networking products coinciding with a gradual resolution of its supply chain challenges -- indicate its long-term goal of growing its revenue and adjusted EPS at a compound annual growth rate (CAGR) of 5% to 7% between fiscal 2021 and 2025 is still within reach.
Cisco's stock trades at just 14 times forward earnings, and it pays an attractive forward dividend yield of 3.2%. That low valuation and high yield should make it a solid safe haven stock to own as the bear market drags on.
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Leo Sun has positions in Apple and Palo Alto Networks. The Motley Fool has positions in and recommends Apple, Cisco Systems, Palo Alto Networks, and The Trade Desk. 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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Many digital advertising companies struggled over the past year as Apple's (NASDAQ: AAPL) privacy update on iOS disrupted services that relied heavily on crafting targeted ads with third-party data. The Trade Desk's stock isn't cheap at 31 times next year's adjusted EBITDA, but I believe its robust growth and exposure to long-term secular tailwinds justify that higher valuation. Those rock-solid growth rates, which are seemingly impervious to the near-term macro headwinds, make Palo Alto a top bear market buy -- even if its stock looks a bit pricey at 53 times its forward adjusted earnings.
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Many digital advertising companies struggled over the past year as Apple's (NASDAQ: AAPL) privacy update on iOS disrupted services that relied heavily on crafting targeted ads with third-party data. Here are three promising tech stocks I'd buy in this challenging market: The Trade Desk (NASDAQ: TTD), Palo Alto Networks (NASDAQ: PANW), and Cisco Systems (NASDAQ: CSCO). Those rock-solid growth rates, which are seemingly impervious to the near-term macro headwinds, make Palo Alto a top bear market buy -- even if its stock looks a bit pricey at 53 times its forward adjusted earnings.
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Many digital advertising companies struggled over the past year as Apple's (NASDAQ: AAPL) privacy update on iOS disrupted services that relied heavily on crafting targeted ads with third-party data. Here are three promising tech stocks I'd buy in this challenging market: The Trade Desk (NASDAQ: TTD), Palo Alto Networks (NASDAQ: PANW), and Cisco Systems (NASDAQ: CSCO). Palo Alto Networks Palo Alto Networks is a diversified cybersecurity company that operates three main platforms: Strata, which houses its on-site networking security tools; Prisma, which operates its cloud-native cybersecurity services; and Cortex, its platform for AI-powered threat detection services.
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Many digital advertising companies struggled over the past year as Apple's (NASDAQ: AAPL) privacy update on iOS disrupted services that relied heavily on crafting targeted ads with third-party data. Here are three promising tech stocks I'd buy in this challenging market: The Trade Desk (NASDAQ: TTD), Palo Alto Networks (NASDAQ: PANW), and Cisco Systems (NASDAQ: CSCO). Palo Alto Networks Palo Alto Networks is a diversified cybersecurity company that operates three main platforms: Strata, which houses its on-site networking security tools; Prisma, which operates its cloud-native cybersecurity services; and Cortex, its platform for AI-powered threat detection services.
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18180.0
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2022-12-02 00:00:00 UTC
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3 Top Tech Stocks to Buy in December
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AAPL
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https://www.nasdaq.com/articles/3-top-tech-stocks-to-buy-in-december-0
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nan
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nan
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The tech industry has been battered and bruised in 2022, with the Nasdaq-100 Technology Sector index plummeting 35% year to date and many companies suffering much steeper declines. The stock market sell-off has primarily stemmed from rises in inflation, leading to decreased consumer spending.
Microsoft (NASDAQ: MSFT), Advanced Micro Devices (NASDAQ: AMD), and Apple (NASDAQ: AAPL) have each watched their stocks experience double-digit declines since January. However, these companies continue to have promising outlooks and are excellent buys to hold for the long haul. Here's why.
1. Microsoft
As the home of hard-hitting brands such as Windows, Office, Azure, and Xbox, Microsoft has become a dominating presence in multiple markets. The company's stock has slid 24% year to date amid economic headwinds. However, it remains a robust business with strength in its diversification.
Microsoft's Intelligent Cloud segment, including Azure earnings, has been the fastest-growing part of its business in recent years. In fact, the segment is responsible for the largest portion of revenue. In the first quarter of 2023, Intelligent Cloud revenue rose 20% to $20.3 billion and generated $8.9 billion in operating income. Microsoft's cloud computing service Azure held a 21% market share in the industry as of Q3 2022, second to only Amazon Web Services' (AWS) 34%.
The $368.97 billion cloud computing market is expected to see a compound annual growth rate of 15.7% until 2030, according to Grand View Research. Considering Microsoft ended its last quarter with $63.33 billion in free cash flow against Amazon's -$26.32 billion, the company could be in an excellent position to invest further in cloud computing and steal market share from AWS.
Along with a majority market share in PC operating systems with Windows and plans to grow its gaming brand, Xbox, Microsoft has an excellent long-term outlook. Its price-to-earnings ratio sits at an attractive 27, making its current share price a bargain and worth buying for the long haul.
2. AMD
As a leader in the PC industry, AMD has suffered exponentially from market declines, with its shares plunging 48% year to date. Sharp reductions in consumer spending have clearly spooked investors. However, the company's business is more diverse than its PC-focused reputation suggests, giving it great long-term prospects.
AMD's revenue is divided into four segments: Data Center, Client, Gaming, and Embedded. In the company's third quarter of 2022, revenue demonstrated a fairly healthy split between the four segments. Gaming made up the most, with its $1.63 billion responsible for 29% of revenue, Data Center's $1.61 billion at $28.9%, Embedded's $1.31 billion at 24.4%, and the PC segment, Client, earned the smallest portion at $1.02 billion and 18% of revenue.
Despite the slide in AMD's stock this year, its shares have risen 624% in the past five years. It's one of the best growth stocks out there, likely to see substantial gains for years. For instance, its Data Center segment grew 45% year over year in Q3 2022, thanks to the lucrative cloud computing market. Similar to Microsoft's Azure, AMD is poised to see substantial gains from the burgeoning market as its data center business continues to grow.
In addition to data centers, AMD has strategically positioned itself as the company powering two of the most popular game consoles in the world, Sony's PlayStation 5 and Microsoft's Xbox Series X|S. AMD provides the processing and graphics chips for both consoles, which helped its Gaming segment see a revenue rise of 13.7% in its latest quarter.
AMD's stock took a deep dive in 2022, but its quickly growing business offers investors diverse reliability, making it a great long-term buy.
3. Apple
Like Microsoft and AMD, Apple shares have enjoyed triple-digit growth in the last five years, rising 246% despite a dip in 2022. The iPhone company's stock has fallen 19% since January, brought down primarily by macroeconomic declines. However, Apple has proven its resilience this year as its products and services have remained in demand.
In the fourth quarter of 2022, Apple reported $90.15 billion in revenue, beating analysts' expectations by $1.38 billion and rising 8.1% year over year. Operating income also rose 4.6% to $24.89 billion.
The company's growth was largely thanks to the success of its iPhone 14 lineup, which launched in September. Apple's iPhone segment increased by 9.6% to $42.6 billion despite worldwide smartphone shipments declining by 9.7% in 2022, according to IDC.
Additionally, the company's Mac segment grew by 25.3% earning $11.5 billion, while worldwide PC shipments fell 15%.
Apple is home to some of the world's most coveted products, with numerous reports stating it plans to enter new markets in the coming years, such as augmented/virtual reality, electric vehicles, and folding phones. Considering its success with breaking into new industries in the past with the iPad, Air Pods, and Apple Watch, I wouldn't bet against the company quickly rising into a dominating position in whatever industry it enters.
As a result, Apple's stellar stock growth over the last several years and its ability to beat the odds in 2022 makes it a no-brainer investment for the long haul.
10 stocks we like better than Microsoft
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Apple, and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Microsoft (NASDAQ: MSFT), Advanced Micro Devices (NASDAQ: AMD), and Apple (NASDAQ: AAPL) have each watched their stocks experience double-digit declines since January. Along with a majority market share in PC operating systems with Windows and plans to grow its gaming brand, Xbox, Microsoft has an excellent long-term outlook. In addition to data centers, AMD has strategically positioned itself as the company powering two of the most popular game consoles in the world, Sony's PlayStation 5 and Microsoft's Xbox Series X|S.
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Microsoft (NASDAQ: MSFT), Advanced Micro Devices (NASDAQ: AMD), and Apple (NASDAQ: AAPL) have each watched their stocks experience double-digit declines since January. Along with a majority market share in PC operating systems with Windows and plans to grow its gaming brand, Xbox, Microsoft has an excellent long-term outlook. Gaming made up the most, with its $1.63 billion responsible for 29% of revenue, Data Center's $1.61 billion at $28.9%, Embedded's $1.31 billion at 24.4%, and the PC segment, Client, earned the smallest portion at $1.02 billion and 18% of revenue.
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Microsoft (NASDAQ: MSFT), Advanced Micro Devices (NASDAQ: AMD), and Apple (NASDAQ: AAPL) have each watched their stocks experience double-digit declines since January. Considering Microsoft ended its last quarter with $63.33 billion in free cash flow against Amazon's -$26.32 billion, the company could be in an excellent position to invest further in cloud computing and steal market share from AWS. Gaming made up the most, with its $1.63 billion responsible for 29% of revenue, Data Center's $1.61 billion at $28.9%, Embedded's $1.31 billion at 24.4%, and the PC segment, Client, earned the smallest portion at $1.02 billion and 18% of revenue.
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Microsoft (NASDAQ: MSFT), Advanced Micro Devices (NASDAQ: AMD), and Apple (NASDAQ: AAPL) have each watched their stocks experience double-digit declines since January. In the fourth quarter of 2022, Apple reported $90.15 billion in revenue, beating analysts' expectations by $1.38 billion and rising 8.1% year over year. That's right -- they think these 10 stocks are even better buys.
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18181.0
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2022-12-02 00:00:00 UTC
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1 Thing Investors Must Know About Dividend Stocks (and 3 Great Dividend Stocks)
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AAPL
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https://www.nasdaq.com/articles/1-thing-investors-must-know-about-dividend-stocks-and-3-great-dividend-stocks
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nan
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The payout ratio is one of the most important metrics investors need to look at in dividend stocks. A low payout ratio means the dividend has room to grow and a company has money to reinvest in the business. Knowing this ratio could save investors a lot of headaches in dividend investing.
*Stock prices used were end-of-day prices of Nov. 25, 2022. The video was published on Dec. 1, 2022.
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*Stock Advisor returns as of December 1, 2022
Travis Hoium has positions in Apple, Mgm Resorts International, and Verizon Communications. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends Verizon Communications and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A low payout ratio means the dividend has room to grow and a company has money to reinvest in the business. Knowing this ratio could save investors a lot of headaches in dividend investing. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends Verizon Communications and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of December 1, 2022 Travis Hoium has positions in Apple, Mgm Resorts International, and Verizon Communications. The Motley Fool recommends Verizon Communications and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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See the 10 stocks *Stock Advisor returns as of December 1, 2022 Travis Hoium has positions in Apple, Mgm Resorts International, and Verizon Communications. The Motley Fool has positions in and recommends Apple. Their opinions remain their own and are unaffected by The Motley Fool.
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18182.0
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2022-12-01 00:00:00 UTC
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US STOCKS-Wall St falls after bleak manufacturing data, Salesforce tumbles
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-falls-after-bleak-manufacturing-data-salesforce-tumbles
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nan
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nan
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By Ankika Biswas and Shreyashi Sanyal
Dec 1 (Reuters) - Wall Street slipped on Thursday as a contraction in manufacturing activity last month clouded data showing a mild easing in inflation and solid consumer spending, while a fall in Salesforce shares dragged the Dow lower.
U.S. manufacturing activity shrank for the first time in 2-1/2 years in November as higher borrowing costs weighed on demand for goods, and proved to be a trigger for investors to book profits following a rally in the previous session.
"Yesterday's move was so crazy large, this is probably just some natural profit taking," Rusty Vanneman, chief investment strategist at Orion Advisor Solutions, said.
Federal Reserve Chair Jerome Powell said on Wednesday it was time to slow down coming interest rate hikes, while also signaling a protracted economic adjustment amid high borrowing costs, pushing the S&P 500 index .SPX above its 200-day moving average for the first time since April.
Markets were boosted earlier on Thursday following a reading from the Commerce Department, which showed consumer spending, that accounts for more than two-thirds of U.S. economic activity, rose 0.8% after an unrevised 0.6% increase in September.
The core personal consumption expenditure (PCE) index, excluding volatile items, eased to 0.2%, against expectations of 0.3%.
"Obviously the (manufacturing) sector is in recession and this basically upholds the fact that we're headed for a recession," said Peter Cardillo, chief market economist at Spartan Capital Securities.
Traders still see a 91% chance that the Fed will increase its key benchmark rate by 50 basis points in December, with the terminal rate expected to be under 5% in May 2023. FEDWATCH
Weighing the most on the Dow Jones Industrial Average .DJI was Salesforce Inc CRM.N, which tumbled 9.9% after the software maker said Bret Taylor would step down as co-chief executive officer in January.
Dollar General Corp DG.N fell 8.7% after the discount retailer cut its annual profit forecast, while Costco Wholesale Corp COST.O shed 6.6% after the membership-only retail chain reported slower sales growth in November.
Investors now await nonfarm payrolls data on Friday, with the ADP report on Wednesday suggesting cooling demand for labor.
Separately, a report from the Labor Department on Thursday showed initial claims for state unemployment benefits dropped 16,000 to a seasonally adjusted 225,000 for the week ended Nov. 26.
At 12:16 p.m. ET, the Dow Jones Industrial Average .DJI was down 330.81 points, or 0.96%, at 34,258.96, the S&P 500 .SPX was down 17.02 points, or 0.42%, at 4,063.09, and the Nasdaq Composite .IXIC was down 35.31 points, or 0.31%, at 11,432.69.
Most megacap growth stocks such as Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O, Meta Platforms Inc META.O and Tesla Inc TSLA.O were mixed, while 3% gains in Netflix Inc NFLX.O limited falls on the Nasdaq.
Advancing issues outnumbered decliners for a 1.29-to-1 ratio on the NYSE and a 1.02-to-1 ratio on the Nasdaq.
The S&P index recorded 29 new 52-week highs and no new low, while the Nasdaq recorded 83 new highs and 49 new lows.
(Reporting by Ankika Biswas and Shreyashi Sanyal in Bengaluru; Editing by Shounak Dasgupta)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Most megacap growth stocks such as Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O, Meta Platforms Inc META.O and Tesla Inc TSLA.O were mixed, while 3% gains in Netflix Inc NFLX.O limited falls on the Nasdaq. By Ankika Biswas and Shreyashi Sanyal Dec 1 (Reuters) - Wall Street slipped on Thursday as a contraction in manufacturing activity last month clouded data showing a mild easing in inflation and solid consumer spending, while a fall in Salesforce shares dragged the Dow lower. U.S. manufacturing activity shrank for the first time in 2-1/2 years in November as higher borrowing costs weighed on demand for goods, and proved to be a trigger for investors to book profits following a rally in the previous session.
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Most megacap growth stocks such as Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O, Meta Platforms Inc META.O and Tesla Inc TSLA.O were mixed, while 3% gains in Netflix Inc NFLX.O limited falls on the Nasdaq. Federal Reserve Chair Jerome Powell said on Wednesday it was time to slow down coming interest rate hikes, while also signaling a protracted economic adjustment amid high borrowing costs, pushing the S&P 500 index .SPX above its 200-day moving average for the first time since April. FEDWATCH Weighing the most on the Dow Jones Industrial Average .DJI was Salesforce Inc CRM.N, which tumbled 9.9% after the software maker said Bret Taylor would step down as co-chief executive officer in January.
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Most megacap growth stocks such as Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O, Meta Platforms Inc META.O and Tesla Inc TSLA.O were mixed, while 3% gains in Netflix Inc NFLX.O limited falls on the Nasdaq. By Ankika Biswas and Shreyashi Sanyal Dec 1 (Reuters) - Wall Street slipped on Thursday as a contraction in manufacturing activity last month clouded data showing a mild easing in inflation and solid consumer spending, while a fall in Salesforce shares dragged the Dow lower. Federal Reserve Chair Jerome Powell said on Wednesday it was time to slow down coming interest rate hikes, while also signaling a protracted economic adjustment amid high borrowing costs, pushing the S&P 500 index .SPX above its 200-day moving average for the first time since April.
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Most megacap growth stocks such as Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O, Meta Platforms Inc META.O and Tesla Inc TSLA.O were mixed, while 3% gains in Netflix Inc NFLX.O limited falls on the Nasdaq. By Ankika Biswas and Shreyashi Sanyal Dec 1 (Reuters) - Wall Street slipped on Thursday as a contraction in manufacturing activity last month clouded data showing a mild easing in inflation and solid consumer spending, while a fall in Salesforce shares dragged the Dow lower. U.S. manufacturing activity shrank for the first time in 2-1/2 years in November as higher borrowing costs weighed on demand for goods, and proved to be a trigger for investors to book profits following a rally in the previous session.
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18183.0
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2022-12-01 00:00:00 UTC
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Does Big Tech Have a Pulse?
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AAPL
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https://www.nasdaq.com/articles/does-big-tech-have-a-pulse
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nan
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nan
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The Fed’s tightening cycle has been a thorn in the side of the Zacks Computer and Technology sector in 2022, undoubtedly impacting many portfolios.
In his latest speech just given yesterday, Fed Chairman Jerome Powell acknowledged the idea of smaller interest rate hikes potentially starting in December and also reiterated that the Fed remains laser-focused on bringing inflation down.
The markets cheered on the relatively less-hawkish comments, providing stocks a significant boost into the closing bell.
During times of a potential market turnaround, a few of the mega-cap titans in the Zacks Computer and Technology sector, such as Apple AAPL, Alphabet GOOGL, and Microsoft MSFT, are undoubtedly worth visiting.
Below is a chart illustrating the year-to-date performance of all three stocks, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
As we can see, it’s been anything but fun for these stocks in 2022. Still, long-term investors have been presented with a potentially strong buying opportunity after the less-than-ideal performance.
Let’s take a closer look at each one of these beloved stocks.
Apple
Analysts have primarily dialed back their near-term earnings outlook over the last several months, with the company’s upcoming quarter seeing the harshest revisions. The company is currently a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
Still, Apple has been able to consistently post better-than-expected earnings results, exceeding earnings and revenue estimates in four consecutive quarters.
In its latest print, the tech titan posted a 2.4% bottom-line beat paired with a 1.9% sales surprise. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Apple shares currently trade at a 23.7X forward earnings multiple, a few ticks above the 23.3X five-year median and Zacks sector average of 23.2X.
Image Source: Zacks Investment Research
Microsoft
Over the last several months, analysts have turned bearish in their earnings outlook for MSFT, landing the stock into a Zacks Rank #4 (Sell).
Image Source: Zacks Investment Research
Like APPL, Microsoft has continued to beat quarterly estimates, exceeding revenue and earnings expectations in three of its last four quarters.
In its latest release, the giant posted a 2.6% EPS beat paired with a 1.3% sales surprise.
Image Source: Zacks Investment Research
Further, MSFT shares currently trade at a 26.5X forward earnings multiple, below the 28.5X five-year median by a fair margin and above its Zacks sector average.
Image Source: Zacks Investment Research
Alphabet
Like MSFT, Alphabet’s near-term earnings outlook has turned negative over the last several months, pushing the stock into a Zacks Rank #4 (Sell).
Image Source: Zacks Investment Research
The company has struggled to exceed quarterly estimates as of late, falling short on both the top and bottom-line in three consecutive quarters.
In its latest print, GOOGL fell short of earnings expectations by roughly 15% and sales estimates by 1.9%.
Image Source: Zacks Investment Research
On a relative basis, Alphabet shares don’t appear expensive; the company’s current forward earnings multiple of 21.6X is below its 26.5X five-year median and its Zacks sector average.
Image Source: Zacks Investment Research
Bottom Line
It’s no secret that technology stocks have been hit hard in 2022, ending stellar runs.
Still, for investors with a long-term horizon, the less-than-ideal year-to-date performance has provided an opportunity to buy shares of Apple AAPL, Alphabet GOOGL, and Microsoft MSFT at prices not seen in some time.
However, all three companies’ near-term earnings outlooks have come under pressure, with analysts rolling back their estimates by fair margins.
A great approach would be to wait until positive earnings estimate revisions start rolling in, which would tell us that analysts once again have a positive outlook regarding each company’s bottom-line.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
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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During times of a potential market turnaround, a few of the mega-cap titans in the Zacks Computer and Technology sector, such as Apple AAPL, Alphabet GOOGL, and Microsoft MSFT, are undoubtedly worth visiting. Still, for investors with a long-term horizon, the less-than-ideal year-to-date performance has provided an opportunity to buy shares of Apple AAPL, Alphabet GOOGL, and Microsoft MSFT at prices not seen in some time. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. During times of a potential market turnaround, a few of the mega-cap titans in the Zacks Computer and Technology sector, such as Apple AAPL, Alphabet GOOGL, and Microsoft MSFT, are undoubtedly worth visiting. Still, for investors with a long-term horizon, the less-than-ideal year-to-date performance has provided an opportunity to buy shares of Apple AAPL, Alphabet GOOGL, and Microsoft MSFT at prices not seen in some time.
|
During times of a potential market turnaround, a few of the mega-cap titans in the Zacks Computer and Technology sector, such as Apple AAPL, Alphabet GOOGL, and Microsoft MSFT, are undoubtedly worth visiting. Still, for investors with a long-term horizon, the less-than-ideal year-to-date performance has provided an opportunity to buy shares of Apple AAPL, Alphabet GOOGL, and Microsoft MSFT at prices not seen in some time. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Still, for investors with a long-term horizon, the less-than-ideal year-to-date performance has provided an opportunity to buy shares of Apple AAPL, Alphabet GOOGL, and Microsoft MSFT at prices not seen in some time. During times of a potential market turnaround, a few of the mega-cap titans in the Zacks Computer and Technology sector, such as Apple AAPL, Alphabet GOOGL, and Microsoft MSFT, are undoubtedly worth visiting. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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18184.0
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2022-12-01 00:00:00 UTC
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Why the Nasdaq Will Beat the Dow in 2023
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AAPL
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https://www.nasdaq.com/articles/why-the-nasdaq-will-beat-the-dow-in-2023
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nan
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nan
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Of the three major U.S. stock indexes, the Nasdaq (NASDAQINDEX: ^IXIC) has had by far the worst performance thus far in 2022. All of them have rebounded notably from their 52-week lows, but the tech-heavy index is still down 27% year to date, while the Dow Jones Industrial Average (DJINDICES: ^DJI) is down by just 5% and the S&P 500 (SNPINDEX: ^GSPC) is off 14%.
Data by YCharts.
That's the biggest gap between the Dow and the Nasdaq since 2000.
Tech stocks came into 2022 looking overvalued. Sectors like software were trading at sky-high multiples. But in this uncertain market, investors have pivoted instead to blue chip stocks and dividend payers to ride out the volatility.
However, in 2023, there seems to be a good chance this trend will reverse, and the Nasdaq will beat the Dow. Here's why.
Growth stocks rebound first
It's impossible to know when the market will bottom, but when it does, growth stocks are almost certain to rebound before their slower-growth counterparts.
Investors tend to pile into growth stocks at the beginning of bull markets, because those stocks are the ones that fall the furthest in bear markets, and therefore have the most to gain in recoveries. We already got a taste of this process just weeks ago after the Consumer Price Index reading for October came in lower than expected, sending the stock market soaring.
The Nasdaq jumped 7.4% on Nov. 10, the day the report came out, while the Dow gained just 3.7%.
That response also indicates a decline in inflation and a shift in the Fed's interest rate policy would be likely to favor growth stocks over blue chips. Part of the reason why growth stocks, especially those in the tech sector, have underperformed this year is those companies are more sensitive to changes in the discount rate, which is used to value stocks. When interest rates rise, future earnings become less valuable, which explains why valuations in the tech sector fell so much in 2022. If interest rates fall or at least stabilize in 2023, which seems like a possibility as inflation is now moderating, tech stock prices should respond favorably.
Similarly, in 2009, the Nasdaq outperformed both the Dow and the S&P 500 in the rebound from the financial crisis.
Data by YCharts.
Big tech stocks look undervalued
Nearly all of the so-called FAANG stocks have fallen sharply year to date as the chart below shows, which also includes Microsoft and Tesla.
Data by YCharts.
Among this group, Apple and Microsoft have been the two best performers of 2022, but they're also in the Dow, so they influence both indexes.
The remaining five aren't Dow components, however, and their poor performances have weighed particularly heavily on the Nasdaq since it's a market cap-weighted index. The 30%-plus declines of Alphabet and Amazon have thus hit the index especially hard as both have market caps of around $1 trillion. And arguably, they look undervalued.
For example, Alphabet trades at a price-to-earnings ratio of 20, slightly below the S&P 500, even though its growth prospects seem more appealing than the average public company based on its track record and the secular growth trend in digital advertising. Amazon, meanwhile, is trading at its lowest price-to-sales ratio in eight years. It hasn't been this cheap on a revenue basis since before it started breaking out the numbers for Amazon Web Services as a stand-alone business segment. Currently, AWS is the source of all of Amazon's profits.
A similar argument can be made for Meta Platforms. While that company is in the midst of a large and risky bet on the metaverse, its core advertising business still generates tons of cash. Investors seem to have forgotten about that as the stock now trades at a price-to-earnings ratio of just 11.2.
Investors are likely to rotate out of safe blue chips
Many of the top-performing Dow Jones Industrial Average components in 2022 are safe blue chips like Coca-Cola, McDonald's, Walmart, UnitedHealth, and Johnson & Johnson, and all of those stocks have generated positive returns this year.
Data by YCharts.
However, the current valuations on many of these stocks look stretched, and part of the reason they've gained this year is investors have sought refuge in safe stocks. McDonald's, for example, trades at a price-to-earnings ratio of 34.3. Coca-Cola's ratio is 27.8, and Walmart trades at a ratio of nearly 50 as of this writing.
Those valuations, which are all higher than Alphabet's, reflect market sentiment, not a belief that those companies' earnings will outgrow the tech giant's long term.
Once it seems like the worst impacts of a recession are already priced into stocks, investors are likely to rotate out of these safe blue chips and back into tech holdings like the FAANG group and other growth-focused names.
When that happens, the Nasdaq is almost certain to outperform the Dow.
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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. Jeremy Bowman has positions in Amazon.com, Meta Platforms, and Netflix. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Netflix, Tesla, and Walmart. The Motley Fool recommends Johnson & Johnson and UnitedHealth Group and recommends the following options: long January 2024 $47.50 calls on Coca-Cola, 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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We already got a taste of this process just weeks ago after the Consumer Price Index reading for October came in lower than expected, sending the stock market soaring. Those valuations, which are all higher than Alphabet's, reflect market sentiment, not a belief that those companies' earnings will outgrow the tech giant's long term. Once it seems like the worst impacts of a recession are already priced into stocks, investors are likely to rotate out of these safe blue chips and back into tech holdings like the FAANG group and other growth-focused names.
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Investors are likely to rotate out of safe blue chips Many of the top-performing Dow Jones Industrial Average components in 2022 are safe blue chips like Coca-Cola, McDonald's, Walmart, UnitedHealth, and Johnson & Johnson, and all of those stocks have generated positive returns this year. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Netflix, Tesla, and Walmart. The Motley Fool recommends Johnson & Johnson and UnitedHealth Group and recommends the following options: long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple.
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Investors tend to pile into growth stocks at the beginning of bull markets, because those stocks are the ones that fall the furthest in bear markets, and therefore have the most to gain in recoveries. Investors are likely to rotate out of safe blue chips Many of the top-performing Dow Jones Industrial Average components in 2022 are safe blue chips like Coca-Cola, McDonald's, Walmart, UnitedHealth, and Johnson & Johnson, and all of those stocks have generated positive returns this year. See the 10 stocks *Stock Advisor returns as of November 7, 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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That response also indicates a decline in inflation and a shift in the Fed's interest rate policy would be likely to favor growth stocks over blue chips. * They just revealed what they believe are the ten best stocks for investors to buy right now… and NASDAQ Composite Index (Price Return) wasn't one of them! The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Netflix, Tesla, and Walmart.
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18185.0
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2022-12-01 00:00:00 UTC
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After Hours Most Active for Dec 1, 2022 : ITUB, TLT, BBD, BEKE, VALE, ABEV, NYCB, AAPL, PDD, Z, AMZN, WBD
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-dec-1-2022-%3A-itub-tlt-bbd-beke-vale-abev-nycb-aapl-pdd-z-amzn
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -20.5 to 12,021.4. The total After hours volume is currently 132,556,279 shares traded.
The following are the most active stocks for the after hours session:
Itau Unibanco Banco Holding SA (ITUB) is unchanged at $4.97, with 9,735,215 shares traded. As reported by Zacks, the current mean recommendation for ITUB is in the "buy range".
iShares 20+ Year Treasury Bond ETF (TLT) is -0.02 at $105.74, with 9,318,267 shares traded. This represents a 15.12% increase from its 52 Week Low.
Banco Bradesco Sa (BBD) is -0.005 at $2.94, with 8,321,525 shares traded. As reported by Zacks, the current mean recommendation for BBD is in the "buy range".
KE Holdings Inc (BEKE) is unchanged at $16.70, with 7,663,534 shares traded. As reported by Zacks, the current mean recommendation for BEKE is in the "buy range".
VALE S.A. (VALE) is -0.03 at $16.61, with 4,925,547 shares traded. As reported by Zacks, the current mean recommendation for VALE is in the "buy range".
Ambev S.A. (ABEV) is unchanged at $3.08, with 4,607,666 shares traded. ABEV's current last sale is 102.67% of the target price of $3.
New York Community Bancorp, Inc. (NYCB) is +0.06 at $9.25, with 3,392,337 shares traded. NYCB's current last sale is 92.5% of the target price of $10.
Apple Inc. (AAPL) is -0.17 at $148.14, with 2,997,532 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2023. The consensus EPS forecast is $1.5. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Pinduoduo Inc. (PDD) is -0.24 at $83.50, with 2,808,508 shares traded. As reported by Zacks, the current mean recommendation for PDD is in the "buy range".
Zillow Group, Inc. (Z) is unchanged at $38.32, with 2,692,754 shares traded.
Amazon.com, Inc. (AMZN) is -0.17 at $95.33, with 2,448,139 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Warner Bros. Discovery, Inc. (WBD) is unchanged at $11.63, with 2,146,757 shares traded. WBD's current last sale is 58.15% of the target price of $20.
The views and 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 -0.17 at $148.14, with 2,997,532 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Itau Unibanco Banco Holding SA (ITUB) is unchanged at $4.97, with 9,735,215 shares traded.
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Apple Inc. (AAPL) is -0.17 at $148.14, with 2,997,532 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Itau Unibanco Banco Holding SA (ITUB) is unchanged at $4.97, with 9,735,215 shares traded.
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Apple Inc. (AAPL) is -0.17 at $148.14, with 2,997,532 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 132,556,279 shares traded.
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Apple Inc. (AAPL) is -0.17 at $148.14, with 2,997,532 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 -20.5 to 12,021.4.
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18186.0
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2022-12-01 00:00:00 UTC
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Meta Platforms (META) Boosts Prospects With New VR Features
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AAPL
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https://www.nasdaq.com/articles/meta-platforms-meta-boosts-prospects-with-new-vr-features
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nan
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nan
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Meta Platforms META is looking to boost its growth prospects by launching Meta House at Miami art week. The Meta House will showcase new mixed reality experiences like a VR art gallery, interactive AR murals and VR sculpting workshops with hopes of attracting various artists and customers to the metaverse.
Meta Platforms’ latest offering at the Miami Art Week will provide mixed reality experiences like live performances by Pop artists Doja Cat, GRAMMY nominee GloRilla and emerging artists COVL and YONK.
The company has already been undertaking various initiatives to help creators develop their own businesses in the metaverse. The company announced several new features and tools across Facebook and Instagram for creators in the first half of 2022.
Creators are expected to play a key role in developing the metaverse economy. META’s latest initiatives will surely benefit them in creating attractive brands and products, and artists for the metaverse.
It is also testing tools to sell digital assets and services in the virtual reality platform — Horizon Worlds, an early iteration of the metaverse. This is a massive step for Mark Zuckerberg's bold ambitions to create the metaverse, as it will allow the development of commercial activity in the alternate reality independent of the real world. Metaverse, upon completion, is expected to generate hundreds of billions of dollars in digital commerce and support millions of jobs and new projects for creators and developers.
Meta’s launch of its latest solution for the metaverse reflects the company’s strategy to invest in artificial intelligence (AI) and machine learning (ML) to build the metaverse upon which Zuckerberg has rested the company’s future.
Meta Platforms, Inc. Price and Consensus
Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote
META Looking to Boost Top Line by Investing in Metaverse
The metaverse market, globally, is expected to reach $800 billion by 2024, per a Bloomberg report. According to the latest report from Fortune Business Insights, the global metaverse market is expected to witness a CAGR of 47.6% between 2022 and 2029 to reach from an estimated $100.27 billion in 2022 to $1,527.55 billion by 2029.
However, Zuckerberg’s bold ambition to restructure Meta Platforms as a company primarily operating in the metaverse is facing various challenges.
The company is facing its worst downfall in many years being negatively impacted by its falling revenue growth from its advertisement business segment.
META’s top-line growth in the third quarter was also significantly affected due to negative forex impact.
Rising inflation also hurt the ad spending budgets of enterprises, which weighed on the ad revenues of the company in the last reported quarter.
Meta Platforms’ ad revenue business is facing a decline 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. Meta Platforms’ advertisement revenues decreased 3.7% year over year to $27.24 billion in the third quarter, and it expects these factors to hurt advertising growth in the fourth quarter of 2022.
These reasons have impacted the stock negatively as it pummeled 67.4% in the year-to-date period compared with the Zacks Computer and Technology sector’s fall of 32.2%.
However, META, which currently carries 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 partnerships with other PyTorch foundation co-founders Microsoft MSFT and NVIDIA NVDA. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Meta Platforms recently launched its first high-end virtual reality headset, Meta Quest Pro, at the Meta Connect event. Microsoft Chairman and CEO Satya Nadella joined Zuckerberg at the event to announce the new partnership, bringing new work and productivity tools like Microsoft 365 and Teams to Meta Quest Pro and Meta Quest 2 next year.
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 >>
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 Platforms’ ad revenue business is facing a decline 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. It is also testing tools to sell digital assets and services in the virtual reality platform — Horizon Worlds, an early iteration of the metaverse.
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Meta Platforms’ ad revenue business is facing a decline 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, Inc. Price and Consensus Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote META Looking to Boost Top Line by Investing in Metaverse The metaverse market, globally, is expected to reach $800 billion by 2024, per a Bloomberg report.
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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 Platforms’ ad revenue business is facing a decline 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 Looking to Boost Top Line by Investing in Metaverse The metaverse market, globally, is expected to reach $800 billion by 2024, per a Bloomberg report.
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Meta Platforms’ ad revenue business is facing a decline 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, Inc. Price and Consensus Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote META Looking to Boost Top Line by Investing in Metaverse The metaverse market, globally, is expected to reach $800 billion by 2024, per a Bloomberg report.
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18187.0
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2022-12-01 00:00:00 UTC
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Amazon's Upbeat Holiday Weekend Bodes Well for Retail
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AAPL
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https://www.nasdaq.com/articles/amazons-upbeat-holiday-weekend-bodes-well-for-retail
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nan
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nan
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During times of uncertainty, investors appreciate any upbeat news that could signal the economy is doing better than expected. To this end, Amazon (NASDAQ: AMZN) gave investors one key data point to add to any reasons they might have to stay optimistic.
The company said Wednesday morning that the five days from Thanksgiving to Cyber Monday represented a "record-breaking holiday shopping weekend" for the e-commerce giant. Customers purchased "hundreds of millions of products" during the period.
Amazon guided for a significant slowdown in its top-line growth in Q4 when it reported its third-quarter results in late October, and some retailers are even cutting their full-year sales outlooks. Therefore, there are many reasons investors could be skeptical about the state of the consumer today.
High inflation and surging interest rates are likely causing some consumers to tighten their holiday budgets. But it's difficult to estimate exactly how the current environment will impact total consumer spending during the period and -- ultimately -- retailers' performances.
All of this to say, Amazon's news Wednesday morning is likely a sigh of relief for investors.
Amazon's record-breaking holiday weekend
Though Amazon confirmed that the five-day shopping record generated more sales than ever, it didn't provide exact sales figures. The degree of year-over-year growth during the period, therefore, is unknown. But this doesn't mean the news isn't important.
With Amazon guiding for fourth-quarter sales to increase between 2% and 8% over the same period last year, the low end of this guidance range wasn't far from breakeven. A worse-than-expected quarter, therefore, could have easily been a period in which sales remained flat or even declined. Hearing that sales increased year over year during the important holiday weekend, therefore, bodes well for Amazon investors and, of course, retail overall.
While Amazon didn't tell investors how much sales grew, it did provide some insight into what products were hot sellers. Amazon's own Echo Dot smart speaker, streaming television-player Fire TV Stick, and Apple's AirPods were best-sellers during the weekend, Amazon said. Further, the company noted that the best-selling shopping categories were home, fashion, toys, beauty, and Amazon devices.
A challenging quarter
It was clear by October that Q4 would likely prove to be a challenging period for retailers. The days of strong double-digit growth rates during the holiday period are likely on hold -- at least for now. Amazon's guidance for 2% to 8% year-over-year growth represented a significant slowdown from the 15% growth it posted in Q3.
Adding to investors' concerns about the holiday quarter, Target (NYSE: TGT) said in its third-quarter update that its sales and profit trends weakened "meaningfully" in the last three weeks of Q3, leading management to lower its fourth-quarter outlook. Management said it now expects comparable sales to decline by a low-single-digit percentage on a year-over-year basis during the fourth quarter.
While Amazon's record-breaking holiday shopping weekend doesn't automatically translate to record results from all major retailers, it does give investors at least one reason to worry a bit less about the odds of a potentially dismal holiday season playing out. Perhaps even Target's deteriorating sales trends at the end of Q3 will prove to be the worst of the company's headwinds as the fourth quarter rolls around.
We'll see if Amazon's news this week is truly good news for overall retail when retailers start reporting their fourth-quarter results early next year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Amazon guided for a significant slowdown in its top-line growth in Q4 when it reported its third-quarter results in late October, and some retailers are even cutting their full-year sales outlooks. Adding to investors' concerns about the holiday quarter, Target (NYSE: TGT) said in its third-quarter update that its sales and profit trends weakened "meaningfully" in the last three weeks of Q3, leading management to lower its fourth-quarter outlook. *Stock Advisor returns as of November 7, 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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Hearing that sales increased year over year during the important holiday weekend, therefore, bodes well for Amazon investors and, of course, retail overall. Amazon's guidance for 2% to 8% year-over-year growth represented a significant slowdown from the 15% growth it posted in Q3. While Amazon's record-breaking holiday shopping weekend doesn't automatically translate to record results from all major retailers, it does give investors at least one reason to worry a bit less about the odds of a potentially dismal holiday season playing out.
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Amazon's record-breaking holiday weekend Though Amazon confirmed that the five-day shopping record generated more sales than ever, it didn't provide exact sales figures. Hearing that sales increased year over year during the important holiday weekend, therefore, bodes well for Amazon investors and, of course, retail overall. While Amazon's record-breaking holiday shopping weekend doesn't automatically translate to record results from all major retailers, it does give investors at least one reason to worry a bit less about the odds of a potentially dismal holiday season playing out.
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But this doesn't mean the news isn't important. We'll see if Amazon's news this week is truly good news for overall retail when retailers start reporting their fourth-quarter results early next year. The Motley Fool has positions in and recommends Amazon.com, Apple, and Target.
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18188.0
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2022-12-01 00:00:00 UTC
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5 Great Stocks to Gift Yourself This Holiday Season
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AAPL
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https://www.nasdaq.com/articles/5-great-stocks-to-gift-yourself-this-holiday-season
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nan
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nan
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Recession fears seem to be overpowering holiday season optimism this year. Of late, many market strategists have lowered their S&P 500 (SPX) price targets considerably in recent months. Morgan Stanley's (NYSE:MS) Mike Wilson — a man who's been spot on in calling the current bear market — sees more turbulence in the new year. Wilson's calling for a double-digit percentage drop before closing the year at 3,900. Though pundits don't expect much in 2023, investors shouldn't fret. In this article, we'll check out five stocks (AAPL, BRK.B, CRM, AMZN, and SNOW) that could be gifts ahead of the holidays.
It's big up days like Wednesday that remind us why it's a terrible idea to sell everything in a panic. Dovish surprises and the resilience of the consumer could be upside surprises that could cause strategists (many who downgraded their S&P 500 targets through the year) to raise the bar.
Apple (NASDAQ:AAPL)
Apple's been under pressure of late, thanks partly to iPhone delays due to lockdowns in China and more criticism from Elon Musk.
Indeed, Musk seems to want to go to war with Apple on its 30% fees. With Musk meeting Tim Cook in person, a lot of the fears seem to be easing. Musk said Cook told him Apple "never considered" giving Twitter the boot from the App Store.
This isn't the first time Cook met with someone who's been giving Apple a hard time. Cook met with President Trump amid his frustrations with the company. Indeed, Cook is a legend at making things right with well-known critics.
At just 24.3x trailing earnings, Apple stock looks like a fine addition. Though many Apple fans won't receive an iPhone for the holidays due to supply woes, odds are they'll still be loyal customers and will be buyers in the new year.
Is AAPL Stock a Buy, According to Analysts?
Turning to Wall Street, AAPL has a Strong Buy consensus rating based on 24 Buys and four Holds assigned in the past three months. The average AAPL price target of $180.48 implies 21.7% upside potential.
Berkshire Hathaway (NYSE:BRK.B)
Berkshire has been rock solid amid the bear market. The significant Apple shareholder has braved the turbulence, placing big bets on energy stocks, Japanese trading companies, and a Taiwanese chip giant.
As Berkshire continues to deploy capital into stocks it views as cheap, I consider the conglomerate as a far better bet than the market averages. Berkshire is finally getting its edge back and as value continues to trump growth, expect nothing less than terrific results from Warren Buffett's firm.
At 2.4x sales, Berkshire is still too cheap after a 21% pop off recent 52-week lows.
Is Berkshire Stock a Buy, According to Analysts?
On Wall Street, BRK.B has a Moderate Buy consensus rating based on two Buys and one Hold assigned in the past three months. The average BRK.B price target of $343.50 implies 8.8% upside potential.
Salesforce (NASDAQ:CRM)
Salesforce is a tech titan that's been obliterated this year. The stock shed over 8% today (giving back the day's Fed-powered gains) on some disappointing quarterly results.
Bret Taylor also stepped down as co-CEO. Marc Benioff is now the lone CEO and has a tough job as his firm sails into a recession.
It looks ugly, with the fourth-quarter outlook falling short, but the stock is getting cheap at 5x sales. For the Benioff believers, CRM stock seems like an excellent pick-up heading into the holidays and ahead of a potential Santa rally.
Is CRM Stock a Buy, According to Analysts?
On Wall Street, CRM has a Moderate Buy consensus rating based on two Buys and one Hold assigned in the past three months. The average CRM price target of $200.13 implies 36.1% upside potential.
Amazon (NASDAQ:AMZN)
Amazon stock has been one of the harder-hit FAANG stocks this year. With the "largest ever" Thanksgiving shopping weekend in the rearview, all eyes are on the holiday season.
Despite the good news, Amazon stock hasn't been moving much higher than its FAANG peers.
Analysts have conservative expectations for Amazon, with a recession likely around the corner. Still, a low bar means it'll be easier to jump over. With AMZN stock so oversold, I view the name as having the greatest upside potential in the final month of 2022.
Is AMZN Stock a Buy, According to Analysts?
AMZN has a Strong Buy consensus rating based on 33 Buys and two Holds assigned in the past three months. The average AMZN price target of $140.18 implies 46.8% upside potential.
Snowflake (NYSE:SNOW)
Snowflake is another innovative growth company that initially sunk after hours on Wednesday (before finishing the next day higher) following an underwhelming quarter and the issue of light revenue guidance. The data warehousing company sees $535 million - $540 million in sales for the fourth quarter, below expectations of $553 million.
With a usage-based revenue model, the quarterly flops and beats will likely cause significant volatility. The recent tumble is overdone and could set the stage for massive relief in the new year as demand comes back online.
Is SNOW Stock a Buy, According to Analysts?
It's been a hailstorm for Snowflake this year. Still, the stock is expensive at 30x sales. Despite the multiple, Wall Street boasts a "Strong Buy" rating on SNOW stock, with the average price target of $194.32 implying over 26.2% in gains from here.
The Takeaway
There are a lot of marked-down stocks ahead of the holiday season that can march higher in the new year. After a quarterly fumble, I think Snowflake is the best of the batch.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In this article, we'll check out five stocks (AAPL, BRK.B, CRM, AMZN, and SNOW) that could be gifts ahead of the holidays. Apple (NASDAQ:AAPL) Apple's been under pressure of late, thanks partly to iPhone delays due to lockdowns in China and more criticism from Elon Musk. Is AAPL Stock a Buy, According to Analysts?
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Turning to Wall Street, AAPL has a Strong Buy consensus rating based on 24 Buys and four Holds assigned in the past three months. In this article, we'll check out five stocks (AAPL, BRK.B, CRM, AMZN, and SNOW) that could be gifts ahead of the holidays. Apple (NASDAQ:AAPL) Apple's been under pressure of late, thanks partly to iPhone delays due to lockdowns in China and more criticism from Elon Musk.
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In this article, we'll check out five stocks (AAPL, BRK.B, CRM, AMZN, and SNOW) that could be gifts ahead of the holidays. Apple (NASDAQ:AAPL) Apple's been under pressure of late, thanks partly to iPhone delays due to lockdowns in China and more criticism from Elon Musk. Is AAPL Stock a Buy, According to Analysts?
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In this article, we'll check out five stocks (AAPL, BRK.B, CRM, AMZN, and SNOW) that could be gifts ahead of the holidays. Apple (NASDAQ:AAPL) Apple's been under pressure of late, thanks partly to iPhone delays due to lockdowns in China and more criticism from Elon Musk. Is AAPL Stock a Buy, According to Analysts?
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18189.0
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2022-12-01 00:00:00 UTC
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Apple up Nearly 5%: Should You Buy the Shares?
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AAPL
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https://www.nasdaq.com/articles/apple-up-nearly-5%3A-should-you-buy-the-shares
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nan
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nan
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Apple AAPL shares jumped 4.86% in the last trading session, part of the big rally that followed Fed Chair Powell’s signal that interest rates were going to rise at a slower clip, probably starting this month, and probably resulting in the soft landing that we are all hoping for.
Rates are at 3.75-4% right now, and now they could end up at 5% or higher. And then, they’re going to hold there for as long as it takes to get inflation down. That’s a bitter pill, but easier to swallow because it’s old news.
Of course, moderation is good for the stock market, which has also been absorbing the drop in job openings, which is seen as a signal that Fed actions are getting us somewhere. Inflation numbers will be out later today, so there’s no doubt that there will be some reaction to that, as well.
Inflation should hurt Apple, which sells this ultra-premium device, and some analysts have said that it could temper sales next year. You don’t have to change your phone after all when you’re seeing your savings melt away. Unless you have to.
But it would be a mistake to read Apple quarter to quarter. The company has a fairly captive user base that has so much stuff on its cloud, music and other apps that it’s really hard to switch even if you think that they’re being a bully [Tesla TSLA, Spotify SPOT, Meta META are certainly asserting this last issue]. And its devices are pretty much the best available, so there just isn’t much of an incentive to switch.
Therefore, even if people don’t buy or upgrade with Apple in the near term, they will likely eventually get around to it. The robust services business will continue to generate significant revenues and the cash hoard can always come in handy.
What should have weighed on the shares, however, is the unrest within China because that’s where its devices are put together. If its Chinese factories are not functional, and that’s how things appear to be right now, Apple simply won’t have enough product on the shelves. So Apple may give us a warning soon and estimates may have to be reset. Estimates have been coming down over the past quarter, and further downward revisions may be in the cards.
Unfortunately, the Fed is not giving us the pullback that would make Apple shares worth buying. Despite the deteriorating earnings scenario, Apple shares trade at a 23.3X P/E multiple, a 28% premium to the S&P 500 and a 7% premium to the technology sector. They are also trading at a 6% premium to their median level over the past five years. Therefore, the shares are not cheap.
Zacks has a #3 (Hold) rating on the shares and it seems like a good idea to wait for a better entry point.
One-Month Price Performance
Image Source: Zacks Investment Research
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
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Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL shares jumped 4.86% in the last trading session, part of the big rally that followed Fed Chair Powell’s signal that interest rates were going to rise at a slower clip, probably starting this month, and probably resulting in the soft landing that we are all hoping for. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Of course, moderation is good for the stock market, which has also been absorbing the drop in job openings, which is seen as a signal that Fed actions are getting us somewhere.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL shares jumped 4.86% in the last trading session, part of the big rally that followed Fed Chair Powell’s signal that interest rates were going to rise at a slower clip, probably starting this month, and probably resulting in the soft landing that we are all hoping for. The company has a fairly captive user base that has so much stuff on its cloud, music and other apps that it’s really hard to switch even if you think that they’re being a bully [Tesla TSLA, Spotify SPOT, Meta META are certainly asserting this last issue].
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Apple AAPL shares jumped 4.86% in the last trading session, part of the big rally that followed Fed Chair Powell’s signal that interest rates were going to rise at a slower clip, probably starting this month, and probably resulting in the soft landing that we are all hoping for. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research 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.
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Apple AAPL shares jumped 4.86% in the last trading session, part of the big rally that followed Fed Chair Powell’s signal that interest rates were going to rise at a slower clip, probably starting this month, and probably resulting in the soft landing that we are all hoping for. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Spotify Technology (SPOT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. And then, they’re going to hold there for as long as it takes to get inflation down.
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18190.0
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2022-12-01 00:00:00 UTC
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US STOCKS-Wall St slides after manufacturing data, Salesforce tumbles
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-slides-after-manufacturing-data-salesforce-tumbles
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nan
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nan
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By Ankika Biswas and Shreyashi Sanyal
Dec 1 (Reuters) - Wall Street gave up gains made earlier on Thursday as a contraction in manufacturing activity last month clouded data showing a mild easing in inflation and solid consumer spending, while a fall in Salesforce shares dragged the Dow lower.
U.S. manufacturing activity shrank for the first time in 2-1/2 years in November as higher borrowing costs weighed on demand for goods, and proved to be a trigger for investors to book profits following a rally in the previous session.
"Yesterday's move was so crazy large, this is probably just some natural profit taking," Rusty Vanneman, chief investment strategist at Orion Advisor Solutions, said.
Federal Reserve Chair Jerome Powell said on Wednesday it was time to slow down coming interest rate hikes, while also signaling a protracted economic adjustment amid high borrowing costs, pushing the S&P 500 index .SPX above its 200-day moving average for the first time since April.
Markets were boosted earlier in the day by a reading from the Commerce Department, which showed consumer spending, that accounts for more than two-thirds of U.S. economic activity, rose 0.8% after an unrevised 0.6% increase in September.
The core personal consumption expenditure (PCE) index, excluding volatile items, eased to 0.2%, against expectations of 0.3%.
"Obviously the (manufacturing) sector is in recession and this basically upholds the fact that we're headed for a recession," said Peter Cardillo, chief market economist at Spartan Capital Securities.
Traders still see an 89% chance that the Fed will increase its key benchmark rate by 50 basis points in December, with the terminal rate expected to be under 5% in May 2023. FEDWATCH
Weighing the most on the Dow Jones Industrial Average .DJI was Salesforce Inc CRM.N, which tumbled 10.8% after the software maker said Bret Taylor would step down as co-chief executive officer in January.
Dollar General Corp DG.N fell 9.3% after the discount retailer cut its annual profit forecast, while Costco Wholesale Corp COST.O shed 7.0% after the membership-only retail chain reported slower sales growth in November.
Investors now await nonfarm payrolls data on Friday, with the ADP report on Wednesday suggesting cooling demand for labor.
Separately, a report from the Labor Department on Thursday showed initial claims for state unemployment benefits dropped 16,000 to a seasonally adjusted 225,000 for the week ended Nov. 26.
At 10:33 a.m. ET, the Dow Jones Industrial Average .DJI was down 439.25 points, or 1.27%, at 34,150.52, the S&P 500 .SPX was down 26.13 points, or 0.64%, at 4,053.98, and the Nasdaq Composite .IXIC was down 69.40 points, or 0.61%, at 11,398.60.
Most megacap growth stocks such as Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O fell between 0.3% and 1.5% as Treasury yields edged higher following an initial dip.
Advancing issues outnumbered decliners for a 1.23-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.14-to-1 ratio on the Nasdaq.
The S&P index recorded 29 new 52-week highs and no new low, while the Nasdaq recorded 68 new highs and 37 new lows.
(Reporting by Ankika Biswas and Shreyashi Sanyal in Bengaluru; Additional reporting by Bansari Mayur Kamdar and Shubham Batra; Editing by Shounak Dasgupta)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Most megacap growth stocks such as Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O fell between 0.3% and 1.5% as Treasury yields edged higher following an initial dip. By Ankika Biswas and Shreyashi Sanyal Dec 1 (Reuters) - Wall Street gave up gains made earlier on Thursday as a contraction in manufacturing activity last month clouded data showing a mild easing in inflation and solid consumer spending, while a fall in Salesforce shares dragged the Dow lower. U.S. manufacturing activity shrank for the first time in 2-1/2 years in November as higher borrowing costs weighed on demand for goods, and proved to be a trigger for investors to book profits following a rally in the previous session.
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Most megacap growth stocks such as Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O fell between 0.3% and 1.5% as Treasury yields edged higher following an initial dip. U.S. manufacturing activity shrank for the first time in 2-1/2 years in November as higher borrowing costs weighed on demand for goods, and proved to be a trigger for investors to book profits following a rally in the previous session. Federal Reserve Chair Jerome Powell said on Wednesday it was time to slow down coming interest rate hikes, while also signaling a protracted economic adjustment amid high borrowing costs, pushing the S&P 500 index .SPX above its 200-day moving average for the first time since April.
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Most megacap growth stocks such as Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O fell between 0.3% and 1.5% as Treasury yields edged higher following an initial dip. By Ankika Biswas and Shreyashi Sanyal Dec 1 (Reuters) - Wall Street gave up gains made earlier on Thursday as a contraction in manufacturing activity last month clouded data showing a mild easing in inflation and solid consumer spending, while a fall in Salesforce shares dragged the Dow lower. Federal Reserve Chair Jerome Powell said on Wednesday it was time to slow down coming interest rate hikes, while also signaling a protracted economic adjustment amid high borrowing costs, pushing the S&P 500 index .SPX above its 200-day moving average for the first time since April.
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Most megacap growth stocks such as Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O fell between 0.3% and 1.5% as Treasury yields edged higher following an initial dip. U.S. manufacturing activity shrank for the first time in 2-1/2 years in November as higher borrowing costs weighed on demand for goods, and proved to be a trigger for investors to book profits following a rally in the previous session. Federal Reserve Chair Jerome Powell said on Wednesday it was time to slow down coming interest rate hikes, while also signaling a protracted economic adjustment amid high borrowing costs, pushing the S&P 500 index .SPX above its 200-day moving average for the first time since April.
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18191.0
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2022-12-01 00:00:00 UTC
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US STOCKS-Wall St set to extend gains on solid consumer spending data, easing prices
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-extend-gains-on-solid-consumer-spending-data-easing-prices
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nan
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nan
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By Ankika Biswas and Shreyashi Sanyal
Dec 1 (Reuters) - Wall Street was set to extend gains on Thursday after data showed a mild easing in inflation and solid consumer spending in October, adding to hopes of a likely downshift in the Federal Reserve's policy on aggressive rate hikes.
A reading from the Commerce Department showed consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 0.8% after an unrevised 0.6% increase in September.
The core personal consumption expenditure (PCE) index, excluding volatile items, eased to 0.2%, against expectations of 0.3%.
"People are feeling that the worst is behind us," said Sam Stovall, chief investment strategist at CFRA Research in New York.
"Today's PCE was sort of a confirmation that indeed inflation is coming down and would offer credibility to the likelihood that the Fed will raise rates by 50 basis points in December and then probably end its rate tightening program in the latter part of the first quarter."
This added to optimism after Fed Chair Jerome Powell said on Wednesday it was time to slow down coming interest rate hikes, while also signaling a protracted economic adjustment amid high borrowing costs.
The S&P 500 index .SPX closed above its 200-day moving average for the first time since April in the previous session, while the Nasdaq index .IXIC ended over 4% higher.
Powell, however, cautioned that the fight against inflation was far from over and indicated that the terminal rate will be "somewhat higher" than the 4.6% indicated by policymakers in their September projections.
Traders are now seeing a 91% chance that the Fed will increase its key benchmark rate by 50 basis points in December, with the terminal rate expected to peak under 5% in May 2023. FEDWATCH
Investors also await nonfarm payrolls data on Friday, with the ADP report on Wednesday suggesting cooling demand for labor.
Separately, a report from the Labor Department on Thursday showed initial claims for state unemployment benefits dropped 16,000 to a seasonally adjusted 225,000 for the week ended Nov. 26.
At 8:53 a.m. ET, Dow e-minis 1YMcv1 were up 38 points, or 0.11%, S&P 500 e-minis EScv1 were up 12.5 points, or 0.31%, and Nasdaq 100 e-minis NQcv1 were up 34.75 points, or 0.29%.
Most megacap technology and growth stocks such as Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O, Tesla Inc TSLA.O and Meta Platforms Inc META.O reversed earlier declines to rise between 0.2% and 0.5% amid a dip in Treasury yields.
Salesforce Inc CRM.N lost 7.1% in premarket trading on Thursday after the software maker said Bret Taylor would step down as co-chief executive officer in January and that co-founder Marc Benioff will become the sole CEO.
Costco Wholesale Corp COST.O fell 3.2% after the membership-only retail chain reported slower sales growth in November.
(Reporting by Ankika Biswas and Shreyashi Sanyal in Bengaluru; Additional reporting by Bansari Mayur Kamdar and Shubham Batra; Editing by Shounak Dasgupta)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Most megacap technology and growth stocks such as Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O, Tesla Inc TSLA.O and Meta Platforms Inc META.O reversed earlier declines to rise between 0.2% and 0.5% amid a dip in Treasury yields. By Ankika Biswas and Shreyashi Sanyal Dec 1 (Reuters) - Wall Street was set to extend gains on Thursday after data showed a mild easing in inflation and solid consumer spending in October, adding to hopes of a likely downshift in the Federal Reserve's policy on aggressive rate hikes. This added to optimism after Fed Chair Jerome Powell said on Wednesday it was time to slow down coming interest rate hikes, while also signaling a protracted economic adjustment amid high borrowing costs.
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Most megacap technology and growth stocks such as Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O, Tesla Inc TSLA.O and Meta Platforms Inc META.O reversed earlier declines to rise between 0.2% and 0.5% amid a dip in Treasury yields. By Ankika Biswas and Shreyashi Sanyal Dec 1 (Reuters) - Wall Street was set to extend gains on Thursday after data showed a mild easing in inflation and solid consumer spending in October, adding to hopes of a likely downshift in the Federal Reserve's policy on aggressive rate hikes. A reading from the Commerce Department showed consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 0.8% after an unrevised 0.6% increase in September.
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Most megacap technology and growth stocks such as Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O, Tesla Inc TSLA.O and Meta Platforms Inc META.O reversed earlier declines to rise between 0.2% and 0.5% amid a dip in Treasury yields. By Ankika Biswas and Shreyashi Sanyal Dec 1 (Reuters) - Wall Street was set to extend gains on Thursday after data showed a mild easing in inflation and solid consumer spending in October, adding to hopes of a likely downshift in the Federal Reserve's policy on aggressive rate hikes. "Today's PCE was sort of a confirmation that indeed inflation is coming down and would offer credibility to the likelihood that the Fed will raise rates by 50 basis points in December and then probably end its rate tightening program in the latter part of the first quarter."
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Most megacap technology and growth stocks such as Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O, Tesla Inc TSLA.O and Meta Platforms Inc META.O reversed earlier declines to rise between 0.2% and 0.5% amid a dip in Treasury yields. By Ankika Biswas and Shreyashi Sanyal Dec 1 (Reuters) - Wall Street was set to extend gains on Thursday after data showed a mild easing in inflation and solid consumer spending in October, adding to hopes of a likely downshift in the Federal Reserve's policy on aggressive rate hikes. The core personal consumption expenditure (PCE) index, excluding volatile items, eased to 0.2%, against expectations of 0.3%.
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18192.0
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2022-12-01 00:00:00 UTC
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What China's Lockdown Protests Mean for Apple Stock
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AAPL
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https://www.nasdaq.com/articles/what-chinas-lockdown-protests-mean-for-apple-stock
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nan
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nan
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Apple (NASDAQ: AAPL) is increasingly experiencing the downside of production in China. Workers at Foxconn, a China-based iPhone supplier, have slowed production in a dispute over overdue pay. And COVID-19 lockdowns in the area have also taken a toll on both the factory workers and overall production.
The slowdowns are significant enough that some Wall Street analysts forecasted slower iPhone sales despite high demand. Now, the question for investors is how the slowdowns might affect the investment thesis for Apple.
What happened to Apple
Analysts at Wedbush Securities now predict iPhone production slowdowns at a Foxconn factory. Foxconn is an Apple supplier based in China, and workers there have protested because they have not received overdue pay, leading to production slowdowns for the iPhone. Officials in China have also placed the city of Zhengzhou, the home of the Foxconn factory, under lockdown in pursuit of a zero-COVID policy.
Wedbush believes these challenges could lead to a 5% to 10% reduction in output. A Bloomberg report appears to echo these concerns, as its sources estimate the issues at Foxconn could reduce iPhone production by approximately 6 million units this year.
Production slowdowns and Apple stock
The lost revenue from that production shortfall is a concern, but Apple can probably take the hit. At a $2.3 trillion market cap, it remains the world's largest publicly traded company. Also, with about $169 billion in liquidity on its balance sheet, the stock might even appear bulletproof.
But investors should note that there is still potential for trouble. The iPhone made up 52% of Apple's revenue in fiscal 2022 (which ended Sept. 24). For all of the focus on products such as Apple's M2 chip or its Apple Services offerings, the iPhone remains the company's cash cow.
It also highlights a crucial vulnerability. Apple depends on product sales for around 80% of its revenue. Since it has relied primarily on suppliers from China, this could lead to potential slowdowns in other products.
Investors should also note that Apple did not escape the bear market. Its stock is down by just over 20% from its 52-week high.
Should investors worry?
Despite such issues, Apple stock can outperform the markets in the longer term. The iPhone is in the midst of a 5G upgrade cycle, and the devices continue to benefit from high demand. Warren Buffett's Berkshire Hathaway still has close to 40% of its portfolio in Apple. That vote of confidence is hard to top for any company.
Instead, investors should worry about whether they will want to buy the dip in Apple stock, a point that seems less clear. At a price-to-earnings (P/E) ratio of 24, the valuation is higher than the pre-pandemic P/E, which rarely topped 20. Such a valuation might have prompted Buffett to choose Taiwan Semiconductor Manufacturing (TSMC) stock over Apple. TSMC, an Apple supplier, sells for just 14 times its earnings.
Concerns about China might not go away quickly, and the country's troubles could remain a headwind for the foreseeable future. This could cause some pain for Apple -- it might have to shift more production to other countries. Nonetheless, these are likely temporary concerns, which should bode well for the FAANG stock in the longer term.
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Will Healy has positions in Berkshire Hathaway (B shares). The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), 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 increasingly experiencing the downside of production in China. What happened to Apple Analysts at Wedbush Securities now predict iPhone production slowdowns at a Foxconn factory. Foxconn is an Apple supplier based in China, and workers there have protested because they have not received overdue pay, leading to production slowdowns for the iPhone.
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Apple (NASDAQ: AAPL) is increasingly experiencing the downside of production in China. What happened to Apple Analysts at Wedbush Securities now predict iPhone production slowdowns at a Foxconn factory. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and Taiwan Semiconductor Manufacturing.
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Apple (NASDAQ: AAPL) is increasingly experiencing the downside of production in China. Production slowdowns and Apple stock The lost revenue from that production shortfall is a concern, but Apple can probably take the hit. For all of the focus on products such as Apple's M2 chip or its Apple Services offerings, the iPhone remains the company's cash cow.
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Apple (NASDAQ: AAPL) is increasingly experiencing the downside of production in China. What happened to Apple Analysts at Wedbush Securities now predict iPhone production slowdowns at a Foxconn factory. Production slowdowns and Apple stock The lost revenue from that production shortfall is a concern, but Apple can probably take the hit.
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18193.0
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2022-12-01 00:00:00 UTC
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US STOCKS-Futures flat after strong Wall Street rally; Salesforce slides
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-flat-after-strong-wall-street-rally-salesforce-slides
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nan
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By Ankika Biswas
Dec 1 (Reuters) - U.S. stock index futures were little changed on Thursday after a strong Wall Street rally in the previous session on hopes of a potential downshift in the Fed's policy on aggressive rate hikes, while Salesforce fell on news of its co-CEO to step down.
Federal Reserve Chair Jerome Powell said on Wednesday it was time to slow down coming interest rate hikes, while also signaling a protracted economic adjustment amid high borrowing costs.
The S&P 500 index .SPX closed above its 200-day moving average for the first time since April in the previous session, while the Nasdaq index .IXIC ended over 4% higher.
"Seeing a little bit of profit taking," said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey. "I wouldn't be surprised at all to see market continue its rally."
Powell, however, cautioned that the fight against inflation was far from over and indicated that the terminal rate will be "somewhat higher" than the 4.6% indicated by policymakers in their September projections.
Traders are now seeing a 91% chance that the Fed will increase its key benchmark rate by 50 basis points in December, with the terminal rate expected to peak under 5% in May 2023. FEDWATCH
Due later in the day, the Commerce Department's personal consumption expenditure (PCE) index, the Fed's preferred inflation metric, likely rose 0.8% in October from 0.6% in the previous month.
The core PCE, excluding volatile items, is seen easing to 0.3% from 0.5% in September.
Investors also await nonfarm payrolls data on Friday, with the ADP report on Wednesday suggesting cooling demand for labor.
At 7:19 a.m. ET, Dow e-minis 1YMcv1 were down 56 points, or 0.16%, S&P 500 e-minis EScv1 were down 2 points, or 0.05%, and Nasdaq 100 e-minis NQcv1 were down 13.25 points, or 0.11%.
Salesforce Inc CRM.N lost 7.3% in premarket trading on Thursday after the software maker said Bret Taylor would step down as co-chief executive officer in January and that co-founder Marc Benioff will become the sole CEO.
Most megacap technology and growth stocks like Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O, Tesla Inc TSLA.O and Meta Platforms Inc META.O were down between and 0.1% and 0.2%.
Costco Wholesale Corp COST.O fell 2.8% after the membership-only retail chain reported slower sales growth in November.
(Reporting by Shubham Batra and Ankika Biswas in Bengaluru; Editing by Shounak Dasgupta)
((Shubham.Batra@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Most megacap technology and growth stocks like Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O, Tesla Inc TSLA.O and Meta Platforms Inc META.O were down between and 0.1% and 0.2%. By Ankika Biswas Dec 1 (Reuters) - U.S. stock index futures were little changed on Thursday after a strong Wall Street rally in the previous session on hopes of a potential downshift in the Fed's policy on aggressive rate hikes, while Salesforce fell on news of its co-CEO to step down. Federal Reserve Chair Jerome Powell said on Wednesday it was time to slow down coming interest rate hikes, while also signaling a protracted economic adjustment amid high borrowing costs.
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Most megacap technology and growth stocks like Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O, Tesla Inc TSLA.O and Meta Platforms Inc META.O were down between and 0.1% and 0.2%. By Ankika Biswas Dec 1 (Reuters) - U.S. stock index futures were little changed on Thursday after a strong Wall Street rally in the previous session on hopes of a potential downshift in the Fed's policy on aggressive rate hikes, while Salesforce fell on news of its co-CEO to step down. The S&P 500 index .SPX closed above its 200-day moving average for the first time since April in the previous session, while the Nasdaq index .IXIC ended over 4% higher.
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Most megacap technology and growth stocks like Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O, Tesla Inc TSLA.O and Meta Platforms Inc META.O were down between and 0.1% and 0.2%. By Ankika Biswas Dec 1 (Reuters) - U.S. stock index futures were little changed on Thursday after a strong Wall Street rally in the previous session on hopes of a potential downshift in the Fed's policy on aggressive rate hikes, while Salesforce fell on news of its co-CEO to step down. Traders are now seeing a 91% chance that the Fed will increase its key benchmark rate by 50 basis points in December, with the terminal rate expected to peak under 5% in May 2023.
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Most megacap technology and growth stocks like Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O, Tesla Inc TSLA.O and Meta Platforms Inc META.O were down between and 0.1% and 0.2%. Federal Reserve Chair Jerome Powell said on Wednesday it was time to slow down coming interest rate hikes, while also signaling a protracted economic adjustment amid high borrowing costs. The S&P 500 index .SPX closed above its 200-day moving average for the first time since April in the previous session, while the Nasdaq index .IXIC ended over 4% higher.
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18194.0
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2022-12-01 00:00:00 UTC
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The Battery Maker Set to Soar 10X-Plus by 2030
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AAPL
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https://www.nasdaq.com/articles/the-battery-maker-set-to-soar-10x-plus-by-2030
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
[Editor’s note: “The Battery Maker Set to Soar 10X-Plus by 2030” was previously published in October 2022. It has since been updated to include the most relevant information available.]
When it comes to stocks with enormous long-term upside potential, few look more compelling than QuantumScape (QS).
As the leading solid-state battery maker, the company is developing a new generation of batteries. These next-gen batteries will enable electric vehicles to drive thousands of miles on a single charge. What’s more, QuantumScape’s breakthrough could allow for fast charging (in mere minutes). Most exciting of all? It’s a “forever battery.”
That’s a big deal.
Electric vehicles are the future of transportation. That’s a foregone conclusion. But today, the average electric car only gets about 250 miles of driving range. And for that, it takes upward of an hour to fully charge. These truths impede EVs’ ability to replace gas-powered cars.
To solve these issues, we need a new type of battery. Current lithium-ion batteries are maxed out. With present battery tech, we simply can’t create EVs that drive thousands of miles or recharge in minutes.
We need a new solution.
QuantumScape is leading the charge. And that also means QS stock has some serious potential.
Introducing the Future of Batteries
While everyone is so hyped up about the EV Revolution, the plain truth is that it won’t go mainstream until we make better batteries.
To understand why, we need to take a quick trip back to chemistry class.
Batteries comprise three things: a cathode, an anode, and an electrolyte. They work by promoting the flow of ions between the cathode and anode through the electrolyte.
Conventional lithium-ion batteries are built on liquid battery chemistry. That is, they comprise a solid cathode and anode. Connecting the two is a liquid electrolyte solution.
And these batteries have worked wonders for years. But due to the constraints of liquid electrolytes, they’ve reached their energy cell density limit. So if we want our phones, watches, and electric cars to last longer and charge faster, we need a battery unlike any we’ve seen before.
Insert the solid-state battery.
With solid-state batteries, the name pretty much says it all. Take the liquid electrolyte solution in conventional batteries. Compress it into a solid. Create a small, hyper-compact battery. And since it has zero wasted space, it lasts far longer and charges far faster.
Of course, the implications of solid-state battery chemistry are huge.
Solid-state batteries could be the key to making our phones sustain power for days. They could enable our smartwatches to fully charge in seconds! And, yes, SSBs can allow electric cars to drive for thousands of miles without a recharge.
That’s why they’re dubbed as “forever batteries” by insiders. It’s the critical technology that can propel the EV Revolution into its next phase: supercharged growth.
QuantumScape Has Figured Out the Impossible
Until recently, making solid-state batteries was the stuff of science fiction. The science was just too prohibitively complex.
Then, a team of genius Stanford professors, scientists, and a few tech execs came together to simplify it. And 12 years later, QuantumScape has basically solved the solid-state battery problem.
The biggest issue with solid-state batteries is something called “dendrites.” These are small cracks that form in the solid electrolyte during charging and recharging. Eventually, they get so big that they short-circuit the battery.
Thus, the big breakthrough in solid-state batteries lies in developing a solid electrolyte material that is dendrite-resistant. And QuantumScape has cracked this code.
In late 2021, the company illustrated that its forever battery performed in 4-layer formats up to 800 charging cycles. A quarter later, it scaled successful results to 10-layer batteries up to 800 cycles. And earlier this year, QuantumScape successfully demonstrated its 16-layer battery’s successful results at over 500 cycles.
In other words, QuantumScape’s solid-state battery breakthrough is proving to work even as the company scales up the battery size.
If this trend continues, then QuantumScape will soon be commercializing effective solid-state batteries that are big enough to be used in cars. And this has big implications for QS stock.
Enormous Upside Potential in QS Stock
The battery of the future will arrive – and QuantumScape will be the company making and selling that battery.
And that means the potential upside in QS stock is enormous.
By 2030, we estimate that around 75 million new passenger cars will be sold globally. We believe about half of those cars will be EVs. Of those, we think around 10% will be outfitted with solid-state batteries. Assuming QuantumScape nabs about half of the solid-state battery market in EVs – and sells those batteries for around $7,000 a pop – the company could be looking at over $13 billion in revenues by 2030.
Assuming target 25% operating margins and a 20% tax rate, that implies potential 2030 profits of about $2.6 billion. A 20X price-to-earnings multiple on that implies a potential future valuation for QuantumScape of $55 billion – which is up 17X from the current market cap.
That’s impressive. So, if you’re looking to buy and hold a growth stock that could make you really rich, QS stock should be at the top of your list.
Buy this stock. Hold it. Wait for it to change the world.
The Final Word on QS Stock
Solid-state batteries are the future, and they represent one of the most promising technological breakthroughs of the 2020s.
Over the next few years, this emerging technology will forever change the EV industry. And, indeed, it’ll forever change the entire electronics world.
Some of the stock market’s biggest winners in the 2020s will be solid-state battery makers.
QS stock projects as one of those mega-winners. But it won’t be alone. And in fact, it won’t be the biggest winner in this space.
Indeed, we see this as the beginning of a massive Energy Transition.
Even the world’s largest company, Apple (AAPL), is getting onboard with its own autonomous EV.
Yes, the creator of the iPhone, the iPad, the Mac and the Apple Watch is making a move into the Energy Transition via the launch of its very own EV.
Considering how Apple’s previous innovations have shifted paradigms, the Apple Car will be a gamechanger for EVs.
We’re even more convinced that the companies that supply critical components for Apple Car will make fortunes for their investors.
We’ve identified one such critical parts supplier. And its stock is only trading for $3.
To prime you, I just put together a presentation about the Energy Transition. In it, I talk all about Apple’s next big product launch and the tiny supplier stock that could soar 40X as the Apple Car takes over the world.
The energy revolution is here. It’s time to plug in.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
The post The Battery Maker Set to Soar 10X-Plus by 2030 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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Even the world’s largest company, Apple (AAPL), is getting onboard with its own autonomous EV. The biggest issue with solid-state batteries is something called “dendrites.” These are small cracks that form in the solid electrolyte during charging and recharging. The Final Word on QS Stock Solid-state batteries are the future, and they represent one of the most promising technological breakthroughs of the 2020s.
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Even the world’s largest company, Apple (AAPL), is getting onboard with its own autonomous EV. These next-gen batteries will enable electric vehicles to drive thousands of miles on a single charge. Enormous Upside Potential in QS Stock The battery of the future will arrive – and QuantumScape will be the company making and selling that battery.
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Even the world’s largest company, Apple (AAPL), is getting onboard with its own autonomous EV. In other words, QuantumScape’s solid-state battery breakthrough is proving to work even as the company scales up the battery size. Enormous Upside Potential in QS Stock The battery of the future will arrive – and QuantumScape will be the company making and selling that battery.
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Even the world’s largest company, Apple (AAPL), is getting onboard with its own autonomous EV. QuantumScape is leading the charge. The biggest issue with solid-state batteries is something called “dendrites.” These are small cracks that form in the solid electrolyte during charging and recharging.
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18195.0
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2022-12-01 00:00:00 UTC
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2 Beaten-Down Stocks to Buy Hand Over Fist Before They Soar
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AAPL
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https://www.nasdaq.com/articles/2-beaten-down-stocks-to-buy-hand-over-fist-before-they-soar
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nan
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nan
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Investors have been laser-focused on the performance of the technology-heavy Nasdaq-100 index this year, because it hosts some of the fastest growing companies in the world. The picture hasn't been positive with the index declining 28% in 2022 (so far), placing it firmly in bear territory.
But investors who are paying extra close attention might have spotted a few technology companies delivering record results this year, even in the face of broader economic challenges. Their respective share prices might still be beaten down, but that spells opportunity, especially going into the new year.
Uber Technologies (NYSE: UBER) and Duolingo (NASDAQ: DUOL) are two of them, and here's why investors should consider buying them before they rebound.
1. Uber's mobility business has roared back to life
Uber's bread and butter has always been mobility (ride-hailing), but the company has never been scared to conquer new verticals. Its Uber Eats food-delivery platform is now one of the largest in the world, and it carried the entire company through the pandemic as social restrictions destroyed demand for mobility services. And now, its Uber Freight platform is growing like a weed with significant long-term promise.
Let's begin there, because in the third quarter, Uber's freight segment grew a mind-boggling 336%. Not so long ago, it was an inconsequential contributor to the company's overall financial results, but it just generated $1.8 billion in quarterly revenue following Uber's acquisition of Transplace in Nov. 2021. Uber says the platform now has over 200,000 users and manages $17 billion in freight, making it one of the largest logistics networks in the world already.
But the headline in the third quarter was mobility, because the segment continued its resurgence back to the top spot as Uber's largest driver of revenue. Revenue came in at $3.8 billion with a little help from an accounting adjustment relating to its operations in the United Kingdom. But its gross bookings (the amount of money customers spent on the service) came in level with food delivery at $13.7 billion.
Its bookings growth rate, however, was 45% compared to delivery's 13%, suggesting mobility could already be the dominant driver of bookings in the current quarter.
Uber now has a record-high 124 million customers across all of its platforms, which was a 14% year-over-year increase. But the company says mobility customers specifically grew 22%, highlighting a return to normal now that most pandemic restrictions have been lifted.
Uber stock is down 36% in 2022. But its business is very much on the upswing, and investors might view that disparity as an opportunity to buy. Some of the pressures on the broader economy like inflation, appear to have peaked, so the new year could be more favorable to tech stocks like Uber.
2. Duolingo has more paying users than ever
Duolingo estimates there are 1.8 billion people learning foreign languages across the globe. As of the third quarter, its platform attracted 56.5 million monthly active users, making it one of the largest providers in the world, yet it still clearly has an enormous runway for growth.
What's the key to Duolingo's success? It has a mobile-first approach, and it has gamified the learning experience to make it fun, interactive, and even social, allowing users to connect with friends and family in-app. The company has delivered such a strong product that a rapidly growing number of active users are paying to unlock additional features to take their education one step further.
In the third quarter, Duolingo had a record-high 3.7 million paying subscribers, up 68% year over year. It drove the company's revenue 51% higher to $96.1 million, marking its fastest growth rate of the year despite the weakening economy. Duolingo continues to be the highest-grossing app in the education category across both the Apple's App Store and Alphabet's Google Play Store.
But there could be plenty of financial growth left in the tank. There's a clear shift toward digital when it comes to language education, and Duolingo expects that segment of the market will grow more than twice as fast as nondigital until at least 2025. The opportunity by then could be worth $47 billion annually.
Duolingo stock has also declined 36% year to date, and like Uber, its business is still firing on all cylinders. The company has proved its ability to deliver even in tough conditions, and its runway for growth makes it a great long-term buy here while the stock is trading at a discount.
10 stocks we like better than Uber Technologies
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 Uber Technologies 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 November 7, 2022
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, and Uber Technologies. 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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But investors who are paying extra close attention might have spotted a few technology companies delivering record results this year, even in the face of broader economic challenges. Its Uber Eats food-delivery platform is now one of the largest in the world, and it carried the entire company through the pandemic as social restrictions destroyed demand for mobility services. The company has delivered such a strong product that a rapidly growing number of active users are paying to unlock additional features to take their education one step further.
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Let's begin there, because in the third quarter, Uber's freight segment grew a mind-boggling 336%. The Motley Fool has positions in and recommends Alphabet, Apple, and Uber Technologies. 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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Uber Technologies (NYSE: UBER) and Duolingo (NASDAQ: DUOL) are two of them, and here's why investors should consider buying them before they rebound. Uber's mobility business has roared back to life Uber's bread and butter has always been mobility (ride-hailing), but the company has never been scared to conquer new verticals. Duolingo stock has also declined 36% year to date, and like Uber, its business is still firing on all cylinders.
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Uber stock is down 36% in 2022. Duolingo has more paying users than ever Duolingo estimates there are 1.8 billion people learning foreign languages across the globe. The Motley Fool has positions in and recommends Alphabet, Apple, and Uber Technologies.
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18196.0
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2022-12-01 00:00:00 UTC
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Is First Trust Rising Dividend Achievers ETF (RDVY) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-first-trust-rising-dividend-achievers-etf-rdvy-a-strong-etf-right-now-5
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nan
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A smart beta exchange traded fund, the First Trust Rising Dividend Achievers ETF (RDVY) debuted on 01/07/2014, and offers broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
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 First Trust Advisors. RDVY has been able to amass assets over $8.64 billion, making it one of the larger ETFs in the Style Box - Large Cap Value. RDVY, before fees and expenses, seeks to match the performance of the NASDAQ US Rising Dividend Achievers Index.
The NASDAQ US Rising Dividend Achievers Index is designed to provide access to a diversified portfolio of companies with a history of paying dividends.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.50% for RDVY, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 1.62%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
RDVY's heaviest allocation is in the Financials sector, which is about 36.80% of the portfolio. Its Information Technology and Healthcare round out the top three.
When you look at individual holdings, Williams-Sonoma, Inc. (WSM) accounts for about 2.46% of the fund's total assets, followed by Jefferies Financial Group Inc. (JEF) and Apple Inc. (AAPL).
RDVY's top 10 holdings account for about 22.08% of its total assets under management.
Performance and Risk
So far this year, RDVY has lost about -8.73%, and is down about -2.85% in the last one year (as of 12/01/2022). During this past 52-week period, the fund has traded between $38.88 and $52.79.
RDVY has a beta of 1.14 and standard deviation of 29.60% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.
Alternatives
First Trust Rising Dividend Achievers ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
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 $55.82 billion in assets, Vanguard Value ETF has $108.16 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.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
First Trust Rising Dividend Achievers ETF (RDVY): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Jefferies Financial Group Inc. (JEF) : Free Stock Analysis Report
WilliamsSonoma, Inc. (WSM) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When you look at individual holdings, Williams-Sonoma, Inc. (WSM) accounts for about 2.46% of the fund's total assets, followed by Jefferies Financial Group Inc. (JEF) and Apple Inc. (AAPL). Click to get this free report First Trust Rising Dividend Achievers ETF (RDVY): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Jefferies Financial Group Inc. (JEF) : Free Stock Analysis Report WilliamsSonoma, Inc. (WSM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. A smart beta exchange traded fund, the First Trust Rising Dividend Achievers ETF (RDVY) debuted on 01/07/2014, and offers broad exposure to the Style Box - Large Cap Value category of the market.
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Click to get this free report First Trust Rising Dividend Achievers ETF (RDVY): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Jefferies Financial Group Inc. (JEF) : Free Stock Analysis Report WilliamsSonoma, Inc. (WSM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Williams-Sonoma, Inc. (WSM) accounts for about 2.46% of the fund's total assets, followed by Jefferies Financial Group Inc. (JEF) and Apple Inc. (AAPL). A smart beta exchange traded fund, the First Trust Rising Dividend Achievers ETF (RDVY) debuted on 01/07/2014, and offers broad exposure to the Style Box - Large Cap Value category of the market.
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Click to get this free report First Trust Rising Dividend Achievers ETF (RDVY): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Jefferies Financial Group Inc. (JEF) : Free Stock Analysis Report WilliamsSonoma, Inc. (WSM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Williams-Sonoma, Inc. (WSM) accounts for about 2.46% of the fund's total assets, followed by Jefferies Financial Group Inc. (JEF) and Apple Inc. (AAPL). A smart beta exchange traded fund, the First Trust Rising Dividend Achievers ETF (RDVY) debuted on 01/07/2014, and offers broad exposure to the Style Box - Large Cap Value category of the market.
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When you look at individual holdings, Williams-Sonoma, Inc. (WSM) accounts for about 2.46% of the fund's total assets, followed by Jefferies Financial Group Inc. (JEF) and Apple Inc. (AAPL). Click to get this free report First Trust Rising Dividend Achievers ETF (RDVY): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Jefferies Financial Group Inc. (JEF) : Free Stock Analysis Report WilliamsSonoma, Inc. (WSM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. A smart beta exchange traded fund, the First Trust Rising Dividend Achievers ETF (RDVY) debuted on 01/07/2014, and offers broad exposure to the Style Box - Large Cap Value category of the market.
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18197.0
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2022-12-01 00:00:00 UTC
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Why Apple Stock Can Keep Delivering for Investors
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AAPL
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https://www.nasdaq.com/articles/why-apple-stock-can-keep-delivering-for-investors
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nan
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nan
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Shares of tech-giant Apple (NASDAQ: AAPL) have a long track record of rewarding investors. In fact, the stock has outperformed the S&P 500 by a wide margin over the last 10-, five-, three-, and one-year periods. But can the tech giant keep delivering outperformance over the next decade?
A close look at the stock and, more importantly, the underlying business suggests there's likely more meaningful growth to come for Apple shareholders. Here are four reasons there's a high probability of Apple stock performing well over the next decade.
1. Apple boasts a powerful "engine" of loyal users
Much of the analysis of Apple stock in the media is focused on the iPhone. This, of course, isn't surprising. The iPhone accounts for over half of the company's annual revenue and is obviously imperative to the business.
But the real driver for Apple's business is the user behind the iPhone. The company's efforts to consistently deliver an integrated ecosystem of hardware, software, and services that delight customers have helped the company not just sell products, but also build a loyal base of customers across many actively used devices (more than 1.8 billion as of the last time Apple reported the figure).
Pairing this installed base of active devices with the company's growing services business (sales from both native and third-party apps, cloud storage, AppleCare, and similar offerings), Apple boasts what management has been increasingly referring to as its "engine." An active base of loyal subscribers, which reached a record high in the company's most recently reported quarter, represents a monetization opportunity for the company as Apple works to increase customer engagement over time.
This engine gives Apple a reliable stream of revenue in its services business that will likely grow for the foreseeable future.
2. The tech giant is more focused than its megacap peers
Second, Apple's business is very focused, compared to some megacap peers. Amazon, for instance, seems to have its hands in almost everything, including online store revenue, private-label products across all sorts of categories, various tech devices, streaming TV and music services, cloud computing, grocery stores, and much more. Meanwhile, the beauty of Apple's business is easily articulated through nothing more than its product segments: iPhone, Mac, iPad, services, and "wearables, home, and accessories," which largely consists of earphones, headphones, and voice-activated speakers.
The smaller base of products today means the company can focus its resources across just a few product lines to ensure they're as high quality and marketable as possible.
3. Apple manages its capital prudently
The tech giant also has a reputation for being a good capital allocator. Consider that the company has repurchased more than $550 billion worth of its own stock at an average purchase price (on a split-adjusted basis) of just $47. As Apple Chief Financial Officer Luca Maestri noted in the company's most recent earnings call, the program "has been incredibly successful." Adding to its capital-return efforts, the company has paid out a dividend since 2012, increasing it every year.
In addition to its value-creating capital-return program, the company is known for being a penny-pincher when it comes to acquisitions, decreasing the risk of Apple overspending on assets. Apple's largest public acquisition was Beats Electronics for $3 billion in 2014.
Even back then, however, this was a drop in the bucket for the company. Of course, Beats ended up playing a role in the launch of AirPods, which has been a wildly successful product line.
4. The stock's valuation is attractive
Finally, the tech stock currently has an attractive valuation. Trading at just 23 times earnings at the time of this writing, Apple stock is cheaper on a price-to-earnings basis than both Proctor & Gamble and McDonald's. For a company with a highly focused business, a loyal customer base, and a long history of exceptional capital allocation, this valuation is approaching bargain territory.
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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. Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Amazon and Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of tech-giant Apple (NASDAQ: AAPL) have a long track record of rewarding investors. Pairing this installed base of active devices with the company's growing services business (sales from both native and third-party apps, cloud storage, AppleCare, and similar offerings), Apple boasts what management has been increasingly referring to as its "engine." Meanwhile, the beauty of Apple's business is easily articulated through nothing more than its product segments: iPhone, Mac, iPad, services, and "wearables, home, and accessories," which largely consists of earphones, headphones, and voice-activated speakers.
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Shares of tech-giant Apple (NASDAQ: AAPL) have a long track record of rewarding investors. The tech giant is more focused than its megacap peers Second, Apple's business is very focused, compared to some megacap peers. For a company with a highly focused business, a loyal customer base, and a long history of exceptional capital allocation, this valuation is approaching bargain territory.
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Shares of tech-giant Apple (NASDAQ: AAPL) have a long track record of rewarding investors. Apple boasts a powerful "engine" of loyal users Much of the analysis of Apple stock in the media is focused on the iPhone. The company's efforts to consistently deliver an integrated ecosystem of hardware, software, and services that delight customers have helped the company not just sell products, but also build a loyal base of customers across many actively used devices (more than 1.8 billion as of the last time Apple reported the figure).
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Shares of tech-giant Apple (NASDAQ: AAPL) have a long track record of rewarding investors. But can the tech giant keep delivering outperformance over the next decade? For a company with a highly focused business, a loyal customer base, and a long history of exceptional capital allocation, this valuation is approaching bargain territory.
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18198.0
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2022-12-01 00:00:00 UTC
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Is SPDR NYSE Technology ETF (XNTK) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-spdr-nyse-technology-etf-xntk-a-strong-etf-right-now-5
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nan
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nan
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Designed to provide broad exposure to the Technology ETFs category of the market, the SPDR NYSE Technology ETF (XNTK) is a smart beta exchange traded fund launched on 09/25/2000.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is managed by State Street Global Advisors. XNTK has been able to amass assets over $403.24 million, making it one of the average sized ETFs in the Technology ETFs. XNTK seeks to match the performance of the NYSE Technology Index before fees and expenses.
The NYSE Technology Index is composed of 35 leading U.S.-listed technology-related companies.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Operating expenses on an annual basis are 0.35% for XNTK, making it one of the least expensive products in the space.
XNTK's 12-month trailing dividend yield is 0.71%.
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.
XNTK's heaviest allocation is in the Information Technology sector, which is about 70.60% of the portfolio. Its Consumer Discretionary and Telecom round out the top three.
When you look at individual holdings, International Business Machines Corporation (IBM) accounts for about 4.65% of the fund's total assets, followed by Apple Inc. (AAPL) and Booking Holdings Inc. (BKNG).
Its top 10 holdings account for approximately 37.1% of XNTK's total assets under management.
Performance and Risk
The ETF has lost about -35.84% and is down about -36.02% so far this year and in the past one year (as of 12/01/2022), respectively. XNTK has traded between $90.06 and $169.09 during this last 52-week period.
The ETF has a beta of 1.17 and standard deviation of 34.47% for the trailing three-year period. With about 36 holdings, it has more concentrated exposure than peers.
Alternatives
SPDR NYSE Technology ETF is an excellent option for investors seeking to outperform the Technology ETFs segment of the market. There are other ETFs in the space which investors could consider as well.
Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $41.67 billion in assets, Vanguard Information Technology ETF has $42.23 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Technology ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SPDR NYSE Technology ETF (XNTK): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
International Business Machines Corporation (IBM) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
Booking Holdings Inc. (BKNG) : 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.
|
When you look at individual holdings, International Business Machines Corporation (IBM) accounts for about 4.65% of the fund's total assets, followed by Apple Inc. (AAPL) and Booking Holdings Inc. (BKNG). Click to get this free report SPDR NYSE Technology ETF (XNTK): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Booking Holdings Inc. (BKNG) : Free Stock Analysis Report To read this article on Zacks.com click here. XNTK seeks to match the performance of the NYSE Technology Index before fees and expenses.
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Click to get this free report SPDR NYSE Technology ETF (XNTK): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Booking Holdings Inc. (BKNG) : Free Stock Analysis Report To read this article on Zacks.com click here. When you look at individual holdings, International Business Machines Corporation (IBM) accounts for about 4.65% of the fund's total assets, followed by Apple Inc. (AAPL) and Booking Holdings Inc. (BKNG). Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index.
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Click to get this free report SPDR NYSE Technology ETF (XNTK): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Booking Holdings Inc. (BKNG) : Free Stock Analysis Report To read this article on Zacks.com click here. When you look at individual holdings, International Business Machines Corporation (IBM) accounts for about 4.65% of the fund's total assets, followed by Apple Inc. (AAPL) and Booking Holdings Inc. (BKNG). Designed to provide broad exposure to the Technology ETFs category of the market, the SPDR NYSE Technology ETF (XNTK) is a smart beta exchange traded fund launched on 09/25/2000.
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When you look at individual holdings, International Business Machines Corporation (IBM) accounts for about 4.65% of the fund's total assets, followed by Apple Inc. (AAPL) and Booking Holdings Inc. (BKNG). Click to get this free report SPDR NYSE Technology ETF (XNTK): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Booking Holdings Inc. (BKNG) : Free Stock Analysis Report To read this article on Zacks.com click here. Designed to provide broad exposure to the Technology ETFs category of the market, the SPDR NYSE Technology ETF (XNTK) is a smart beta exchange traded fund launched on 09/25/2000.
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18199.0
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2022-12-01 00:00:00 UTC
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Is FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-flexshares-morningstar-u.s.-market-factor-tilt-etf-tilt-a-strong-etf-right-now-5
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nan
|
nan
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Launched on 09/16/2011, the FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Blend category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $1.48 billion, this makes it one of the larger ETFs in the Style Box - All Cap Blend. TILT is managed by Flexshares. This particular fund, before fees and expenses, seeks to match the performance of the Morningstar U.S. Market Factor Tilt Index.
The Morningstar U.S. Market Factor Tilt Index measures the performance of U.S. equity markets with increased exposure toward small-capitalization and value stocks.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.25% for TILT, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.48%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
TILT's heaviest allocation is in the Information Technology sector, which is about 20.60% of the portfolio. Its Financials and Healthcare round out the top three.
When you look at individual holdings, Apple Inc Common Stock Usd 0.00001 (AAPL) accounts for about 4.54% of the fund's total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Amazon.com Inc Common Stock Usd 0.01 (AMZN).
Its top 10 holdings account for approximately 15.35% of TILT's total assets under management.
Performance and Risk
The ETF has lost about -12.49% so far this year and is down about -8.18% in the last one year (as of 12/01/2022). In the past 52-week period, it has traded between $138.28 and $184.14.
The ETF has a beta of 1.08 and standard deviation of 26.19% for the trailing three-year period, making it a medium risk choice in the space. With about 2282 holdings, it effectively diversifies company-specific risk.
Alternatives
FlexShares Morningstar U.S. Market Factor Tilt ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core S&P Total U.S. Stock Market ETF (ITOT) tracks S&P Total Market Index and the Vanguard Total Stock Market ETF (VTI) tracks CRSP US Total Market Index. IShares Core S&P Total U.S. Stock Market ETF has $41.29 billion in assets, Vanguard Total Stock Market ETF has $274.73 billion. ITOT has an expense ratio of 0.03% and VTI charges 0.03%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap 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.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT): 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
Vanguard Total Stock Market ETF (VTI): ETF Research Reports
iShares Core S&P Total U.S. Stock Market ETF (ITOT): 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 Common Stock Usd 0.00001 (AAPL) accounts for about 4.54% of the fund's total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Amazon.com Inc Common Stock Usd 0.01 (AMZN). Click to get this free report FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT): 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 Vanguard Total Stock Market ETF (VTI): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports To read this article on Zacks.com click here. This particular fund, before fees and expenses, seeks to match the performance of the Morningstar U.S. Market Factor Tilt Index.
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Click to get this free report FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT): 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 Vanguard Total Stock Market ETF (VTI): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Apple Inc Common Stock Usd 0.00001 (AAPL) accounts for about 4.54% of the fund's total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Amazon.com Inc Common Stock Usd 0.01 (AMZN). Launched on 09/16/2011, the FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Blend category of the market.
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Click to get this free report FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT): 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 Vanguard Total Stock Market ETF (VTI): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Apple Inc Common Stock Usd 0.00001 (AAPL) accounts for about 4.54% of the fund's total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Amazon.com Inc Common Stock Usd 0.01 (AMZN). IShares Core S&P Total U.S. Stock Market ETF (ITOT) tracks S&P Total Market Index and the Vanguard Total Stock Market ETF (VTI) tracks CRSP US Total Market Index.
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When you look at individual holdings, Apple Inc Common Stock Usd 0.00001 (AAPL) accounts for about 4.54% of the fund's total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Amazon.com Inc Common Stock Usd 0.01 (AMZN). Click to get this free report FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT): 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 Vanguard Total Stock Market ETF (VTI): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports To read this article on Zacks.com click here. Launched on 09/16/2011, the FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Blend category of the market.
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