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18400.0
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2022-11-16 00:00:00 UTC
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India's electronics industry moves towards uniform charging ports for smartphones
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AAPL
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https://www.nasdaq.com/articles/indias-electronics-industry-moves-towards-uniform-charging-ports-for-smartphones
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nan
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nan
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NEW DELHI, Nov 16 (Reuters) - Electronics industry stakeholders in India have agreed to a phased roll-out of USB-C type uniform charging ports for devices including smartphones and laptops, the Indian government said on Wednesday.
Adoption of the USB-C connectors, used by many Android based devices, is expected to hurt Apple Inc AAPL.O whose iPhones are charged using a Lightning cable currently.
The iPhone maker has to change the charger for its phones in the European Union from autumn 2024, in order to comply with new rules that mandate a single charging port for most electronic devices.
"A broad consensus emerged among stakeholders on adoption of USB Type-C as a charging port for electronic devices," the Ministry of Consumer Affairs said in a statement after a government task-force meeting with industry groups representing smartphone players.
A different charging port may be adopted for phones lacking the more advanced features of a smartphone, such as being able to use the web to download applications, the ministry said.
A group will also be formed to examine the feasibility of a uniform charging port for wearable devices like earphones and smart watches, the government said.
The statement did not name any companies that attended the meeting or agreed to the proposal of a phased roll-out. The government would conduct a study to assess the environmental impact of switching to a uniform charging port, it said.
Apple did not immediately respond to a Reuters request for comment.
(Reporting by Shivam Patel in New Delhi;Editing by Elaine Hardcastle)
((Shivam.Patel@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.
|
Adoption of the USB-C connectors, used by many Android based devices, is expected to hurt Apple Inc AAPL.O whose iPhones are charged using a Lightning cable currently. NEW DELHI, Nov 16 (Reuters) - Electronics industry stakeholders in India have agreed to a phased roll-out of USB-C type uniform charging ports for devices including smartphones and laptops, the Indian government said on Wednesday. The iPhone maker has to change the charger for its phones in the European Union from autumn 2024, in order to comply with new rules that mandate a single charging port for most electronic devices.
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Adoption of the USB-C connectors, used by many Android based devices, is expected to hurt Apple Inc AAPL.O whose iPhones are charged using a Lightning cable currently. NEW DELHI, Nov 16 (Reuters) - Electronics industry stakeholders in India have agreed to a phased roll-out of USB-C type uniform charging ports for devices including smartphones and laptops, the Indian government said on Wednesday. "A broad consensus emerged among stakeholders on adoption of USB Type-C as a charging port for electronic devices," the Ministry of Consumer Affairs said in a statement after a government task-force meeting with industry groups representing smartphone players.
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Adoption of the USB-C connectors, used by many Android based devices, is expected to hurt Apple Inc AAPL.O whose iPhones are charged using a Lightning cable currently. NEW DELHI, Nov 16 (Reuters) - Electronics industry stakeholders in India have agreed to a phased roll-out of USB-C type uniform charging ports for devices including smartphones and laptops, the Indian government said on Wednesday. "A broad consensus emerged among stakeholders on adoption of USB Type-C as a charging port for electronic devices," the Ministry of Consumer Affairs said in a statement after a government task-force meeting with industry groups representing smartphone players.
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Adoption of the USB-C connectors, used by many Android based devices, is expected to hurt Apple Inc AAPL.O whose iPhones are charged using a Lightning cable currently. The iPhone maker has to change the charger for its phones in the European Union from autumn 2024, in order to comply with new rules that mandate a single charging port for most electronic devices. "A broad consensus emerged among stakeholders on adoption of USB Type-C as a charging port for electronic devices," the Ministry of Consumer Affairs said in a statement after a government task-force meeting with industry groups representing smartphone players.
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18401.0
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2022-11-16 00:00:00 UTC
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AAPL vs. GOOG vs. AMZN: 3 Top FAANG Stocks Turning a Corner
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AAPL
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https://www.nasdaq.com/articles/aapl-vs.-goog-vs.-amzn%3A-3-top-faang-stocks-turning-a-corner
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nan
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nan
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FAANG stocks haven't been able to keep this stock market afloat amid the 2022 bear market. Though big tech may have been the last domino to fall, they're more than likely to land on their feet, unlike the many speculative and unprofitable innovative tech companies that have crashed hard. Indeed, it's quick to conclude that FAANG's glory days are over. Some of the names within the basket have lost more than 70% of their value. Indeed, that's a decline that's tough to recover from. Last week, the FAANG stocks took off as the CPI numbers caused many growth-savvy investors to go from bears to bulls. Though FAANG has fallen, they'll likely lead the inevitable rebound.
This year has exposed the weakest links of the group. Moving forward, Wall Street is standing firm on the strongest links, most notably Apple (NASDAQ: AAPL), Google-owner Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), and Amazon (NASDAQ:AMZN). Analysts may have reduced their price targets by modest amounts, but their consensus rating remains unchanged. They're still "Strong Buys," with price targets that seem likely to be hit (even surpassed) in 2023 if the Federal Reserve ends up hitting the pause button.
Let's compare the three FAANG stocks to see which holds the most upside potential.
Apple (AAPL)
Apple's latest quarter set it apart from the pack, with in-line earnings ($1.29 EPS vs. $1.27 consensus) despite the impact of the strong U.S. dollar and other macro headwinds. Though services weren't as robust as they could have been, recent price increases on the broad batch of services should help the firm better overcome inflationary pressures.
Indeed, Apple services are some of the best deals in town, especially for bundlers. Many Apple users won't think twice about paying an extra dollar for their favorite service.
Looking ahead, management held back on giving revenue guidance. Downbeat guidance has been a major sore spot for Apple's FAANG peers. Amid macro uncertainties, I'd say a lack of guidance is only wise. Whether or not Apple can continue bucking the trend with a looming recession remains to be seen.
Regardless, I view Apple as one of the strongest of the batch. Though some analysts have muted expectations for product demand going into 2023, I think many are discounting the potential impact of a mixed-reality headset, which could begin production as soon as March 2023, according to DigiTimes.
It's unclear how a new device will influence top-line growth. Regardless, Apple stock seems too good to pass up at 24.6x trailing earnings.
What is the Price Target for AAPL Stock?
Wall Street strongly favors Apple based on 23 Buys and four Holds assigned in the past three months, with the average AAPL stock price target of $179.70 implying 20.8% upside from here.
Alphabet (GOOG)(GOOGL)
Alphabet stock has been a heck of a lot more volatile than it has been historically over the past few months. The latest Q3 quarterly results were not just disappointing; they represented the third straight quarter of missing bottom-line estimates.
Indeed, Alphabet's growth seems to have come to a bit of a slowdown, with ads taking a hit from the rough macro climate. Total revenue climbed just 6% (11% on a constant-currency basis). Not at all indicative of a FAANG play. Despite the horrid growth, I view Alphabet as a top bounce-back play once the recession ends.
The streak of quarterly flops is discouraging. However, the 19.3x trailing earnings multiple is just too low for a company with some of the most prized tech assets out there.
Search, YouTube, and Google Cloud still has plenty of growth left in the tank. While other bets have failed to stick, Alphabet is still more than capable of regaining its growth multiple once the worst of the recession fears are baked in. After its recent bounce, it's arguable that GOOG stock already has the worst factored in.
What is the Price Target for GOOGL Stock?
Wall Street analysts are still pounding the table on Alphabet. The average GOOGL stock price target of $129.54 suggests 31.1% upside potential based on 29 unanimous Buy ratings.
Amazon (AMZN)
Amazon stock has now lost more than 51% of its value from peak to trough. It's been a painful drop for investors who bought in at any time over the past two and a half years. The new CEO, Andy Jassy, hasn't really impressed investors. Though it's mostly the macro to blame, investment in overcapacity in a rising rate environment has many concerned about the e-commerce darling.
With various disruptive technologies in the mix, Amazon is still one of the highest-growth FAANG stocks. Its massive decline is the result of the stretched multiple. After enduring a painful drop, the stock trades at 2x sales. That's a bargain for any growth stock, especially one with a track record (and network) like Amazon.
Disruptive innovation has never come cheaper, with Amazon looking to continue innovating in a period of economic contraction. Management guided cautiously in the most recent quarter. The stock was punished accordingly. With modest expectations and many growth levers, Amazon could have the greatest upside if next year's recession is mild or non-existent. Once the tides turn, it won't take long for AWS and retail to power the stock toward its prior highs.
What is the Price Target for AMZN Stock?
Wall Street still loves Amazon, with 33 of 34 analysts praising it as a Buy. The average AMZN stock price target of $140.36 suggests a whopping 44.5% upside potential over the year ahead.
Conclusion: Wall Street Expects the Most Upside from Amazon
It's hard to go wrong with the top FAANG stocks on weakness. Wall Street expects the most significant gains from Amazon stock of the three in this piece.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Wall Street strongly favors Apple based on 23 Buys and four Holds assigned in the past three months, with the average AAPL stock price target of $179.70 implying 20.8% upside from here. Moving forward, Wall Street is standing firm on the strongest links, most notably Apple (NASDAQ: AAPL), Google-owner Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), and Amazon (NASDAQ:AMZN). Apple (AAPL) Apple's latest quarter set it apart from the pack, with in-line earnings ($1.29 EPS vs. $1.27 consensus) despite the impact of the strong U.S. dollar and other macro headwinds.
|
Moving forward, Wall Street is standing firm on the strongest links, most notably Apple (NASDAQ: AAPL), Google-owner Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), and Amazon (NASDAQ:AMZN). Wall Street strongly favors Apple based on 23 Buys and four Holds assigned in the past three months, with the average AAPL stock price target of $179.70 implying 20.8% upside from here. Apple (AAPL) Apple's latest quarter set it apart from the pack, with in-line earnings ($1.29 EPS vs. $1.27 consensus) despite the impact of the strong U.S. dollar and other macro headwinds.
|
Moving forward, Wall Street is standing firm on the strongest links, most notably Apple (NASDAQ: AAPL), Google-owner Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), and Amazon (NASDAQ:AMZN). Wall Street strongly favors Apple based on 23 Buys and four Holds assigned in the past three months, with the average AAPL stock price target of $179.70 implying 20.8% upside from here. Apple (AAPL) Apple's latest quarter set it apart from the pack, with in-line earnings ($1.29 EPS vs. $1.27 consensus) despite the impact of the strong U.S. dollar and other macro headwinds.
|
Wall Street strongly favors Apple based on 23 Buys and four Holds assigned in the past three months, with the average AAPL stock price target of $179.70 implying 20.8% upside from here. Moving forward, Wall Street is standing firm on the strongest links, most notably Apple (NASDAQ: AAPL), Google-owner Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), and Amazon (NASDAQ:AMZN). Apple (AAPL) Apple's latest quarter set it apart from the pack, with in-line earnings ($1.29 EPS vs. $1.27 consensus) despite the impact of the strong U.S. dollar and other macro headwinds.
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18402.0
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2022-11-16 00:00:00 UTC
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After Hours Most Active for Nov 16, 2022 : VTRS, UBER, DBX, PYPL, QQQ, MDT, CSCO, AAPL, CCL, PBF, C, BNED
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-nov-16-2022-%3A-vtrs-uber-dbx-pypl-qqq-mdt-csco-aapl-ccl-pbf-c
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nan
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nan
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The NASDAQ 100 After Hours Indicator is up 31.22 to 11,730.31. The total After hours volume is currently 126,264,973 shares traded.
The following are the most active stocks for the after hours session:
Viatris Inc. (VTRS) is unchanged at $11.08, with 4,124,960 shares traded. VTRS's current last sale is 85.23% of the target price of $13.
Uber Technologies, Inc. (UBER) is +0.21 at $30.25, with 4,091,421 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. The consensus EPS forecast is $-0.19. As reported by Zacks, the current mean recommendation for UBER is in the "buy range".
Dropbox, Inc. (DBX) is unchanged at $22.43, with 3,961,804 shares traded. DBX's current last sale is 80.11% of the target price of $28.
PayPal Holdings, Inc. (PYPL) is +0.1733 at $87.21, with 3,382,557 shares traded. Over the last four weeks they have had 8 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. The consensus EPS forecast is $0.97. As reported by Zacks, the current mean recommendation for PYPL is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +1.31 at $286.75, with 2,859,509 shares traded. This represents a 12.78% increase from its 52 Week Low.
Medtronic plc (MDT) is unchanged at $81.78, with 2,614,300 shares traded.MDT is scheduled to provide an earnings report on 11/22/2022, for the fiscal quarter ending Oct2022. The consensus earnings per share forecast is 1.28 per share, which represents a 132 percent increase over the EPS one Year Ago
Cisco Systems, Inc. (CSCO) is +2.14 at $46.53, with 2,581,681 shares traded. Smarter Analyst Reports: Understanding Lumen Technologies’ Newly Added Risk Factors
Apple Inc. (AAPL) is +0.59 at $149.38, with 2,355,782 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".
Carnival Corporation (CCL) is +0.01 at $9.64, with 1,682,058 shares traded. CCL's current last sale is 104.22% of the target price of $9.25.
PBF Energy Inc. (PBF) is unchanged at $46.77, with 1,490,440 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. The consensus EPS forecast is $5.19. PBF's current last sale is 103.93% of the target price of $45.
Citigroup Inc. (C) is +0.07 at $48.44, with 1,427,327 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 $1.47. C's current last sale is 84.98% of the target price of $57.
Barnes & Noble Education, Inc (BNED) is unchanged at $2.81, with 1,350,137 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 +0.59 at $149.38, with 2,355,782 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Medtronic plc (MDT) is unchanged at $81.78, with 2,614,300 shares traded.MDT is scheduled to provide an earnings report on 11/22/2022, for the fiscal quarter ending Oct2022.
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Apple Inc. (AAPL) is +0.59 at $149.38, with 2,355,782 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022.
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Apple Inc. (AAPL) is +0.59 at $149.38, with 2,355,782 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022.
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Apple Inc. (AAPL) is +0.59 at $149.38, with 2,355,782 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022.
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18403.0
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2022-11-16 00:00:00 UTC
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Sonos CEO sees upbeat holiday season as supply snarls ease
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AAPL
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https://www.nasdaq.com/articles/sonos-ceo-sees-upbeat-holiday-season-as-supply-snarls-ease
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nan
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nan
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By Eva Mathews
Nov 16 (Reuters) - Sonos Inc SONO.O, which has been grappling with weak demand for its high-end speakers, is counting on easing supply chain bottlenecks and a rare set of promotions to lift sales in the holiday quarter, Chief Executive Patrick Spence told Reuters.
The company beat quarterly revenue estimates on Wednesday, as it stays resilient even as the broader retail industry struggles with a consumer spending slump caused by decades-high inflation.
The trend mirrors the strength seen at other luxury goods companies such as LVMH LVMH.PA, whose focus on higher-income consumers have shielded them from economic gyrations.
Sonos is seeing strong demand for its $349 entry-level sound bar Ray and the wireless loudspeaker Sub Mini priced at $429, Spence said.
He added that existing customers accounted for 44% of new product registrations in the year to Oct. 1, a sign that brand loyalty was helping Sonos fend off competition from bigger rivals Apple Inc AAPL.O, Google GOOGL.O and Amazon.com Inc AMZN.O - which offer cheaper, voice-enabled speakers.
Still, the company added only 1.4 million net new households in the period, compared with 1.8 million a year earlier.
Its growth was throttled by a shortage of chips and product components, exacerbated by strict COVID-19 lockdowns in China. Sonos also saw some softness in orders from peak pandemic levels as consumers spent more time outside.
"China is important in terms of our overall supply chain, but we are also in Malaysia and Vietnam. So, we have also recreated a more resilient supply chain," Spence said.
Sonos is also under pressure from a strong dollar, which is expected to shave off $79 million from sales in 2023.
"We have our fingers crossed that the holiday season will be good for us because it's one of those rare times when we do put some things on sale," said newly appointed finance chief Eddie Lazarus, who served in the role on an interim basis since September.
(Reporting by Eva Mathews in Bengaluru; Editing by Shailesh Kuber)
((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.
|
He added that existing customers accounted for 44% of new product registrations in the year to Oct. 1, a sign that brand loyalty was helping Sonos fend off competition from bigger rivals Apple Inc AAPL.O, Google GOOGL.O and Amazon.com Inc AMZN.O - which offer cheaper, voice-enabled speakers. The company beat quarterly revenue estimates on Wednesday, as it stays resilient even as the broader retail industry struggles with a consumer spending slump caused by decades-high inflation. "We have our fingers crossed that the holiday season will be good for us because it's one of those rare times when we do put some things on sale," said newly appointed finance chief Eddie Lazarus, who served in the role on an interim basis since September.
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He added that existing customers accounted for 44% of new product registrations in the year to Oct. 1, a sign that brand loyalty was helping Sonos fend off competition from bigger rivals Apple Inc AAPL.O, Google GOOGL.O and Amazon.com Inc AMZN.O - which offer cheaper, voice-enabled speakers. By Eva Mathews Nov 16 (Reuters) - Sonos Inc SONO.O, which has been grappling with weak demand for its high-end speakers, is counting on easing supply chain bottlenecks and a rare set of promotions to lift sales in the holiday quarter, Chief Executive Patrick Spence told Reuters. Still, the company added only 1.4 million net new households in the period, compared with 1.8 million a year earlier.
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He added that existing customers accounted for 44% of new product registrations in the year to Oct. 1, a sign that brand loyalty was helping Sonos fend off competition from bigger rivals Apple Inc AAPL.O, Google GOOGL.O and Amazon.com Inc AMZN.O - which offer cheaper, voice-enabled speakers. By Eva Mathews Nov 16 (Reuters) - Sonos Inc SONO.O, which has been grappling with weak demand for its high-end speakers, is counting on easing supply chain bottlenecks and a rare set of promotions to lift sales in the holiday quarter, Chief Executive Patrick Spence told Reuters. "We have our fingers crossed that the holiday season will be good for us because it's one of those rare times when we do put some things on sale," said newly appointed finance chief Eddie Lazarus, who served in the role on an interim basis since September.
|
He added that existing customers accounted for 44% of new product registrations in the year to Oct. 1, a sign that brand loyalty was helping Sonos fend off competition from bigger rivals Apple Inc AAPL.O, Google GOOGL.O and Amazon.com Inc AMZN.O - which offer cheaper, voice-enabled speakers. By Eva Mathews Nov 16 (Reuters) - Sonos Inc SONO.O, which has been grappling with weak demand for its high-end speakers, is counting on easing supply chain bottlenecks and a rare set of promotions to lift sales in the holiday quarter, Chief Executive Patrick Spence told Reuters. So, we have also recreated a more resilient supply chain," Spence said.
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18404.0
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2022-11-16 00:00:00 UTC
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3 Reasons to Buy Apple Stock in 2023 -- And Never Sell
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AAPL
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https://www.nasdaq.com/articles/3-reasons-to-buy-apple-stock-in-2023-and-never-sell
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nan
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nan
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Even while being down over 18% year to date (as of Nov. 15), Apple (NASDAQ: AAPL) is the world's most valuable public company, with a market cap of over $2.3 trillion. For perspective, that's more than Alphabet and Amazon combined. Apple didn't reach this size by luck, either -- it's well-deserved.
Between its world-class products and brand loyalty that's second to none, Apple is a force to be reckoned with. Here are three reasons you should buy Apple stock in 2023 and never sell.
1. Apple is becoming a player in the financial industry
Apple's first time dipping its toes in the financial services space was in 2014, when it announced Apple Pay. Apple Pay gave people the convenience of paying with a phone, but not many looked at it as Apple making a serious entrance into the industry. Fast forward to 2019, with the announcement of the Apple Card, and it became a bit more apparent that Apple was getting serious.
With the Apple Card, Apple partnered with Goldman Sachs (NYSE: GS) to approve applications and fund the loans. This is why, when they announced Apple Pay Later, it was a clear message that other financial companies should plan accordingly. Apple Pay Later is the company's move into the buy now, pay later industry. But, more importantly, it's the first time Apple is underwriting and funding loans by itself.
With Apple able to provide financial services without any middleman, it's in a prime position to use its vast tech power to take the ever-growing financial technology (fintech) space by storm. The global fintech market was just over $115 billion in 2021 and is expected to reach over $936 billion by 2030. I'd bet Apple wants a decent-sized slice of that pie.
2. Streaming is moving in a positive direction
Apple's streaming service, Apple TV+, undoubtedly lags behind other platforms like Netflix, Hulu, and Disney+, but there should be brighter days ahead as the company puts more resources behind the platform. In June, Apple and Major League Soccer (MLS) -- the world's fastest-growing soccer league -- announced they had struck a deal to show all MLS matches worldwide for 10 years beginning in 2023.
The MLS deal, worth at least $2.5 billion, is the first time a major American sports league has moved all of its games to a streaming platform. It's also the first time in major professional sports history that the games won't have any restrictions or local blackouts. It's a step that shows Apple is becoming more serious about making investments to become more competitive in the streaming space.
Will Apple TV+ ever grow to become a top three streaming service? It's not likely in the foreseeable future. But you can bet it will continue to grow and slowly but surely begin to gain some market share.
3. It's an undisputed cash cow
In a year defined by high inflation and economic anxiety, Apple managed to bring in $394.3 billion in revenue in its 2022 fiscal year (up 8% year over year) and a record $90.1 billion in the fourth quarter alone (up 8% year over year). For perspective, Visa, the 10th largest U.S. company by market cap, brought in $29.3 billion in its fiscal year.
There's no denying that Apple is a cash cow, and there's no reason to believe it'll slow down in the future. Apple has more cash on hand than a lot of companies in the S&P 500 are worth. Although holding on to too much cash and not investing in other areas can slow a company's growth, I don't see this being a problem for Apple.
With a bank account that size and a commitment to innovation, Apple still has room for noticeable growth -- which is what matters as an investor. It's one thing to have a great history; it's another thing to be primed for future success. The latter is why I'm a strong believer in Apple.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Stefon Walters has positions in Apple. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Goldman Sachs, and Visa. 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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Even while being down over 18% year to date (as of Nov. 15), Apple (NASDAQ: AAPL) is the world's most valuable public company, with a market cap of over $2.3 trillion. The MLS deal, worth at least $2.5 billion, is the first time a major American sports league has moved all of its games to a streaming platform. With a bank account that size and a commitment to innovation, Apple still has room for noticeable growth -- which is what matters as an investor.
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Even while being down over 18% year to date (as of Nov. 15), Apple (NASDAQ: AAPL) is the world's most valuable public company, with a market cap of over $2.3 trillion. In June, Apple and Major League Soccer (MLS) -- the world's fastest-growing soccer league -- announced they had struck a deal to show all MLS matches worldwide for 10 years beginning in 2023. The MLS deal, worth at least $2.5 billion, is the first time a major American sports league has moved all of its games to a streaming platform.
|
Even while being down over 18% year to date (as of Nov. 15), Apple (NASDAQ: AAPL) is the world's most valuable public company, with a market cap of over $2.3 trillion. Apple is becoming a player in the financial industry Apple's first time dipping its toes in the financial services space was in 2014, when it announced Apple Pay. Streaming is moving in a positive direction Apple's streaming service, Apple TV+, undoubtedly lags behind other platforms like Netflix, Hulu, and Disney+, but there should be brighter days ahead as the company puts more resources behind the platform.
|
Even while being down over 18% year to date (as of Nov. 15), Apple (NASDAQ: AAPL) is the world's most valuable public company, with a market cap of over $2.3 trillion. The MLS deal, worth at least $2.5 billion, is the first time a major American sports league has moved all of its games to a streaming platform. There's no denying that Apple is a cash cow, and there's no reason to believe it'll slow down in the future.
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18405.0
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2022-11-16 00:00:00 UTC
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Hedge Funds Betting Big This EV Stock Will Kill Tesla
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AAPL
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https://www.nasdaq.com/articles/hedge-funds-betting-big-this-ev-stock-will-kill-tesla
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
When the “smart money” talks, I listen. And that smart money right now is betting big on a single EV stock that could dethrone Tesla.
Specifically, hedge funds collectively bought nearly 37 million shares of this EV stock last quarter. That made it the single-most bought EV stock by hedge funds in the third quarter of 2022 (by share volume).
Some of the buyers include Wall Street heavyweights like George Soros, David Einhorn, and Ken Griffin. They’re three of the most successful hedge fund managers in the history of Wall Street.
In other words, the smart money has spoken. This is their pick as the top EV stock to buy today.
Needless to say, this is one that you need to learn about right now. Fortunately, we’re here to tell you all about it.
We’re talking about Rivian (RIVN).
An EV Stock Titan: The Quick Rundown on Rivian
To cut to the chase, let me be clear on where I stand on Rivian stock.
I stand with Soros, Einhorn, and Griffin. I’m a Rivian stock bull, mostly because I think this company can dominate an unfilled niche in the EV industry that, at scale, will be very large.
But before we dive into the bull thesis on Rivian stock, let’s first revisit the company’s fundamentals.
Rivian is an EV startup that’s designing, manufacturing, and selling high-end electric SUVs and pick-up trucks. The company is widely considered one of the most technologically advanced and promising EV makers in the world today.
Rivian started delivering units of its first model – the R1T – in 2021.
It’s an electric pick-up truck that seats five, has a 54×50-inch bed and gets roughly 300 miles per charge. It can tow up to 11,000 pounds and has a 0-to-60 mph time as quick as three seconds. The interior is comprised of vegan leather, with a panoramic all-glass roof and a custom enhanced audio system.
It is a very high-quality electric pick-up truck. It currently starts at $73,000. Rivian delivered almost 1,000 of these trucks in 2021 and is on track to deliver more than 20,000 R1Ts this year.
Rivian’s second model is an electric SUV dubbed the R1S.
It’s a large-format SUV that can comfortably seat up to seven passengers and their gear. It, too, gets roughly 300 miles of driving range on a single charge and can accelerate from 0-to-60 mph as quick as three seconds. It has all-wheel-drive capability and is outfitted with the same interior fittings as the R1T: vegan leather interior, all-glass panoramic roof, and a custom enhanced sound system.
R1S deliveries just began earlier this year, with the company shipping models to employees first and now to the general public. Its starting price is $78,000.
Rivian went public in a highly anticipated and briefly super-successful IPO last year. The stock has since struggled after a brief hot run. Today, the company is worth about $30 billion. And that’s a valuation that I think is an absolute steal for this stock.
The Long-Term Bull Thesis
Long term, I strongly believe that high-quality EV stocks are great multi-year investments. That’s because EVs are set to grow from ~10% of car sales today to 50%-plus by 2030.
As the whole industry grows 5X, the companies at the forefront of this disruption will sell tons of cars, generate huge profits, and unlock an enormous amount of shareholder value.
Over the next five to 10 years, some of the stock market’s biggest winners will be high-quality EV stocks.
In the realm of high-quality EV stocks, Rivian stock is one of my favorites.
Why? There are, in my opinion, five big sticking points of the bull thesis:
Leader in a strong demand niche of the burgeoning EV industry. We know that the trucking niche of the automotive market is very large with very durable and strong demand drivers. Presumably, as that portion of the auto market is electrified, there will emerge an equally large electric truck market. Presently, there is no clear leader in that market. But Rivian has a promising early start with a fantastic first-to-market truck that has among the best specs in the industry. This electric pick-up truck market will support multiple winners, and we’re confident Rivian will be one of them.
Great brand equity, with strong technology and a fantastic first product. Rivian has established exceptional luxury branding and has developed leading EV battery and torque technology – two things very important for creating a great electric truck. Indeed, the R1T is probably the highest-performing electric pick-up truck in the market today. And it should remain so for the foreseeable future.
Strong early demand signals. Rivian has over 114,000 net preorders in the U.S. and Canada for the R1S and R1T, illustrating that consumers want these cars.
Big support and partnerships. Rivian also has a very unique and promising partnership with Amazon (AMZN). The latter will buy at least 100,000 electric delivery vehicles from Rivian. The extent of this partnership broadly implies that Amazon has chosen Rivian as its “horse” in the EV race, And at scale, it will convert its entire delivery fleet into Rivian cars. That represents a huge long-term opportunity.
A mammoth-sized balance sheet. The best thing about Rivian is that it has about $14 billion in cash on the balance sheet. And that grants the company an almost unfair advantage over peers. Rivian plans to use basically every penny of that cash balance over the next two to three years to develop market-leading tech, secure market-leading supply deals, and establish market-leading production capacity. When all is said and done, Rivian’s $14 billion should enable it to create an electric vehicle empire by 2025.
For those reasons, I believe Rivian projects as one of the largest producers of EV cars by 2030, rendering it one of the most valuable auto companies in the world by then.
My “napkin math” indicates that Rivian could hit the million-deliveries-per-year milestone by the late 2020s. At a $70,000 average sales price, that implies total revenues of $70 billion. Assuming a similar margin profile as Tesla (TSLA) (30% gross margins/20% operating margins), that would lead to $14 billion in operating profits – or about $10 billion in net profits after taxes.
A simple 20X price-to-earnings multiple on that implies a potential late 2020s valuation target for Rivian of $200 billion. That’s nearly 10X the current market cap, meaning I see RIVN stock as a potential ten-bagger.
Powerful Short-Term Drivers
In the short-term, I think that Rivian stock has multiple catalysts that could spark a significant rebound in shares over the next six to 12 months. Maybe that’s why hedge funds are loading up right now…
For starters, the stock is really cheap. Indeed, Rivian stock is basically trading at just 1X its 2025 sales estimates. That means that if the company executes on its growth roadmap over the next few years, the stock should fly higher from current levels.
Previously, that was a big “if.” Today, it no longer is. Rivian is meeting its revised delivery and production targets even in a bad market. That’s impressive and should re-inject investor confidence into the company’s ability to execute over the long run.
At a macro level, significant tailwinds are forming for the whole Electric Vehicle Revolution.
On the production side, China – where 60% of battery manufacturing is done – is moving past COVID-19 lockdowns and is restarting full production capacity at many of its manufacturing plants.
On the demand side, the U.S. government recently passed the largest climate bill in the country’s history. And a big part of it includes legislation to stimulate EV demand (including an extension of the EV tax credit, the elimination of a cap on the tax credit based on number of EVs sold, and the introduction of a tax credit for a used EV purchase).
And on the pricing side, the industrial metals needed to make EV batteries – like lithium and cobalt – have seen their prices collapse over the past few months, after spending most of 2022 soaring. Today, industrial metal prices are broadly back to where they were throughout most of the 2010s.
Overall, we think the whole EV industry is about to “heat up” in a big way. Rivian will dramatically and impressively ramp production against this improving macroeconomic backdrop, on the heels of a huge stock price decline.
That’s a powerful cocktail that implies huge gains ahead for Rivian stock.
The Final Word on This EV Stock
We love Rivian stock as a long-term investment opportunity.
But in fact, it isn’t even our favorite next-gen transportation stock to buy today.
Instead, that’s reserved for a tiny $3 technology stock that I think may be the single most compelling 12-month investment opportunity in the market today.
See; the world’s largest company – Apple (AAPL) – is about to enter the EV game. It’s been working on a super-secret “Apple Car” project since 2015. And late last year, the company reportedly increased investments into the project so as to accelerate its development timeline.
The implication? Apple will likely launch its own EV within the next two years.
Judging by the success of the iPhone, the iPad, the Mac, the Apple Watch, and more, it seems very possible that the Apple Car is a huge hit. It even seems possible that this car unseats Tesla as the best-selling EV in the market.
If so, the Apple Car could be bigger than the iPhone, iPad, Apple Watch, and Mac put together.
And per my analysis, the $3 stock I’m talking about is positioned to secure a partnership with Apple to supply a critical piece of technology to make this car work.
If that sounds like a big deal, it’s because it is. My modeling suggests this tiny stock could soar 40X over the next few years.
So… what’re you waiting for? Learn more about what may be the most exciting investment opportunity in the market today.
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 Hedge Funds Betting Big This EV Stock Will Kill Tesla 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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See; the world’s largest company – Apple (AAPL) – is about to enter the EV game. As the whole industry grows 5X, the companies at the forefront of this disruption will sell tons of cars, generate huge profits, and unlock an enormous amount of shareholder value. Rivian has established exceptional luxury branding and has developed leading EV battery and torque technology – two things very important for creating a great electric truck.
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See; the world’s largest company – Apple (AAPL) – is about to enter the EV game. It has all-wheel-drive capability and is outfitted with the same interior fittings as the R1T: vegan leather interior, all-glass panoramic roof, and a custom enhanced sound system. Rivian has established exceptional luxury branding and has developed leading EV battery and torque technology – two things very important for creating a great electric truck.
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See; the world’s largest company – Apple (AAPL) – is about to enter the EV game. An EV Stock Titan: The Quick Rundown on Rivian To cut to the chase, let me be clear on where I stand on Rivian stock. In the realm of high-quality EV stocks, Rivian stock is one of my favorites.
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See; the world’s largest company – Apple (AAPL) – is about to enter the EV game. Over the next five to 10 years, some of the stock market’s biggest winners will be high-quality EV stocks. A simple 20X price-to-earnings multiple on that implies a potential late 2020s valuation target for Rivian of $200 billion.
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18406.0
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2022-11-16 00:00:00 UTC
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3 Top Stocks to Buy for the Long Haul
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AAPL
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https://www.nasdaq.com/articles/3-top-stocks-to-buy-for-the-long-haul-4
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nan
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nan
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With the stock market sell-off in 2022, it's become increasingly important to invest in reliable companies that can provide consistent growth for the long term. Moreover, if fears of a recession in 2023 prove to be valid, it will be crucial to hold on to stocks throughout potential market declines.
Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Walt Disney (NYSE: DIS) are each excellent stocks to consider holding for the long haul.
1. Apple
As growth stocks go, few are as reliable and resilient as Apple. The company's shares have risen 252% over the last five years despite steep market declines in 2022, and are likely to continue growing for at least another five years.
The iPhone manufacturer has become a haven for investors, with its stock falling 17% year to date while the Nasdaq-100 Technology Sector index has plummeted 34% in the same time frame. The company has remained strong throughout market downturns and diminishing consumer spending thanks to continued demand for its products and services.
For instance, according to IDC, worldwide smartphone shipments saw a year-over-year decline of 9.7% in the third quarter of 2022. The fall in demand led companies such as Samsung, Xiaomi, and Oppo to lose between 7.8% to 22.3% market share in the industry. But Apple saw the only growth among its competitors, with its market share rising by 1.6% to a total of 17.2%.
Apple has proved its resilience in 2022 but also has the cash to continue investing in its business and overcome further economic declines. As of Sept. 30, the company's free cash flow stood at $20.84 billion, significantly higher than Alphabet's $16 billion and Amazon's negative $4.97 billion.
With potent products and cash in the bank, Apple is an excellent investment to hold for the long haul.
2. Microsoft
Similarly to Apple, Microsoft has proved its worth as a long-term hold, with its stock price increasing 200% over the last five years. The company's biggest strength is the diversification present throughout its business and segments, with products such as Windows, Xbox, Office, and Azure giving it considerable market shares in multiple booming industries.
Microsoft's computer operating system, Windows, has held on to a majority market share for the last decade, despite the presence of Apple's Mac OS and Alphabet's Chrome OS. In fact, from December 2021 to June 2022, Windows' market share grew from 73.72% to 76.33%, stealing share from competitors.
Moreover, the company has leveraged its dominance in operating systems to further its gaming efforts, expanding its Xbox brand to PC gaming. As a result, its Xbox Game Pass subscription service, available on PC and its Xbox game consoles, hit 25 million subscribers in January 2022, up from 10 million in 2020. Considering that the $195 billion video game market is expected to see compound annual growth of 14.1% from 2022 to 2030, Microsoft is well positioned to see significant gains.
With Microsoft's asset in Windows, its swiftly growing gaming business, and its expanding cloud computing business with Azure, the company can almost guarantee long-term growth.
3. Disney
In 2023, Disney will enter its second century of business, solidifying it as one of the most successful entertainment companies in history. It has demonstrated the staying power of its brands, such as Marvel, Star Wars, Pixar, and Walt Disney Pictures. These brands have also helped its streaming business grow considerably in the last few years, with its total subscriber count at 235 million versus Netflix's 223 million.
Disney's stock has fallen 39% since January as its consumer-reliant business has investors worried for its immediate future. And the company's $30 billion content spending in 2022, in conjunction with a 3% decline in Media and Entertainment revenue, has only furthered skepticism about its streaming endeavors.
But management is taking strides toward profitability with Disney+. CEO Bob Chapek said in the company's latestearnings callthat he expects the service to achieve profitability in fiscal 2024. Steps such as raising prices across all of its streaming platforms, launching an ad-supported tier on Disney+ in December, and reducing its content spending are each likely to pay off in the long run.
And Disney's parks business skyrocketed in 2022 after suffering from pandemic closures in 2021. In the fourth quarter of 2022, parks revenue grew 36% year over year, to $7.4 billion, with the segment's operating income rising 136% to $1.5 billion.
The company has seen significant losses from heavily investing in Disney+. However, it has seen returns from the rapid subscriber and market share growth. At its current trajectory, Disney could dominate the $327 billion streaming industry in a few years, with a flourishing parks business to boot, making its stock a worthy long-haul investment.
10 stocks we like better than Apple
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Microsoft, Netflix, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Walt Disney (NYSE: DIS) are each excellent stocks to consider holding for the long haul. The company's biggest strength is the diversification present throughout its business and segments, with products such as Windows, Xbox, Office, and Azure giving it considerable market shares in multiple booming industries. Steps such as raising prices across all of its streaming platforms, launching an ad-supported tier on Disney+ in December, and reducing its content spending are each likely to pay off in the long run.
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Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Walt Disney (NYSE: DIS) are each excellent stocks to consider holding for the long haul. In the fourth quarter of 2022, parks revenue grew 36% year over year, to $7.4 billion, with the segment's operating income rising 136% to $1.5 billion. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Microsoft, Netflix, and Walt Disney.
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Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Walt Disney (NYSE: DIS) are each excellent stocks to consider holding for the long haul. 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. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Microsoft, Netflix, and Walt Disney.
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Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Walt Disney (NYSE: DIS) are each excellent stocks to consider holding for the long haul. Microsoft Similarly to Apple, Microsoft has proved its worth as a long-term hold, with its stock price increasing 200% over the last five years. Considering that the $195 billion video game market is expected to see compound annual growth of 14.1% from 2022 to 2030, Microsoft is well positioned to see significant gains.
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18407.0
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2022-11-16 00:00:00 UTC
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Semiconductor ETFs Surge on Warren Buffett's Stake Disclosure
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AAPL
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https://www.nasdaq.com/articles/semiconductor-etfs-surge-on-warren-buffetts-stake-disclosure
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nan
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nan
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Taiwan Semiconductor Manufacturing Company TSM was one of the star performers in Nov 15 trading session, jumping as much as 21% — its best day since 2008. Shares of TSM closed up 10.5% on the day. The massive gains were driven by Warren Buffett’s Berkshire Hathaway disclosure that it had purchased a $4.1 billion stake in the company.
This has fueled a rally in the semiconductor space, pushing ETFs and other stocks higher. As such, ETFs targeting the semiconductor space like VanEck Vectors Semiconductor ETF SMH, iShares Semiconductor ETF SOXX, SPDR S&P Semiconductor ETF XSD, Invesco Dynamic Semiconductors ETF PSI and Invesco PHLX Semiconductor ETF SOXQ surged nearly 3% each.
In a filing with the United States’ Securities and Exchange Commission on Monday, billionaire investor Warren Buffett said it acquired about 60 million American depository shares in one of the world’s largest chipmakers in the third quarter.
Taiwan Semiconductor shares have been the the most beaten-down in the tech selling spree this year. With the latest gain, the stock is still down 32% year to date.
Taiwan Semiconductor is the biggest manufacturer of the world’s most advanced chips, which are used in smartphones, computers, servers, cars and military equipment. It makes chips for fabless semiconductor firms including Nvidia NVDA and Qualcomm QCOM. It also is the exclusive supplier of Apple's AAPL custom chips.
The stock saw positive earnings estimate revision of couple of cents for this year over the past 60 days and has estimated growth of 51.9%. It has a Zacks Rank #3 (Hold) with a VGM Score of B. Taiwan Semiconductor falls in the solid Zacks industry (in the top 37%), underscoring its strength in the coming days (read: 5 Tech ETFs At the Heart of Last Week's Rally).
Semiconductors have been the most important drivers of the overall growth in technology, given the use of chips in day-to-day life from cars, electronic gadgets to planes and weapons. The demand will continue to trend higher given the increased digitization in various corners like healthcare, transport, financial systems, defense, agriculture and retail, among others.
The rapid adoption of cutting-edge technology like cloud, Internet of Things, autonomous cars, gaming, wearables, VR headsets, drones, virtual reality devices, artificial intelligence, cryptocurrencies, 5G and other advanced information technologies should continue to fuel growth. Further, the introduction of expensive and new-generation chips has been leading to an enhancement in the product mix for semiconductors.
VanEck Vectors Semiconductor ETF (SMH)
VanEck Vectors Semiconductor ETF provides exposure to 25 companies involved in semiconductor production and equipment by tracking the MVIS US Listed Semiconductor 25 Index. It has managed assets worth $7 billion and charges 35 bps in annual fees and expenses. Taiwan Manufacturing is the top firms, accounting for 10% share.
VanEck Vectors Semiconductor ETF is heavily traded with a volume of around 4.8 million shares per day and has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook.
iShares Semiconductor ETF (SOXX)
iShares Semiconductor ETF follows the ICE Semiconductor Index and offers exposure to U.S. companies that design, manufacture and distribute semiconductors. It holds 30 securities in its basket with TSM making up for 3.3% of assets.
iShares Semiconductor ETF has amassed $6.5 billion in its asset base and trades in a volume of about 1 million shares a day. The product charges a fee of 40 bps a year from investors and has a Zacks ETF Rank #2 (Buy) with a High risk outlook (read: November Retail Sales Steady: 3 ETF & Stock Picks).
SPDR S&P Semiconductor ETF (XSD)
SPDR S&P Semiconductor ETF offers exposure to the semiconductor segment of the broad technology sector and tracks the S&P Semiconductor Select Industry Index. It holds 38 stocks in its portfolio. SPDR S&P Semiconductor ETF has AUM of $1.1 billion and an average daily volume of about 62,000 shares.
SPDR S&P Semiconductor ETF charges 35 bps in fees per year and has a Zacks ETF Rank #2 with a High risk outlook.
Invesco Dynamic Semiconductors ETF (PSI)
Invesco Dynamic Semiconductors ETF tracks the Dynamic Semiconductor Intellidex Index, holding 32 securities in its basket.
Invesco Dynamic Semiconductors ETF has AUM of $515.6 million and sees a moderate average daily volume of 21,000 shares. Expense ratio is 0.55%. PSI has a Zacks ETF Rank #1 with a High risk outlook.
Invesco PHLX Semiconductor ETF (SOXQ)
Invesco PHLX Semiconductor ETF tracks the PHLX Semiconductor Sector Index, holding 30 stocks in its basket (read: Semiconductor ETFs to Buy Now).
Invesco PHLX Semiconductor ETF has accumulated $75.1 million in its asset base. It charges 19 bps in annual fees and trades in an average daily volume of 49,000 shares.
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Taiwan Semiconductor Manufacturing Company Ltd. (TSM): Free Stock Analysis Report
Invesco Dynamic Semiconductors ETF (PSI): ETF Research Reports
VanEck Semiconductor ETF (SMH): ETF Research Reports
iShares Semiconductor ETF (SOXX): ETF Research Reports
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Invesco PHLX Semiconductor ETF (SOXQ): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It also is the exclusive supplier of Apple's AAPL custom chips. Apple Inc. (AAPL): Free Stock Analysis Report In a filing with the United States’ Securities and Exchange Commission on Monday, billionaire investor Warren Buffett said it acquired about 60 million American depository shares in one of the world’s largest chipmakers in the third quarter.
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It also is the exclusive supplier of Apple's AAPL custom chips. Apple Inc. (AAPL): Free Stock Analysis Report As such, ETFs targeting the semiconductor space like VanEck Vectors Semiconductor ETF SMH, iShares Semiconductor ETF SOXX, SPDR S&P Semiconductor ETF XSD, Invesco Dynamic Semiconductors ETF PSI and Invesco PHLX Semiconductor ETF SOXQ surged nearly 3% each.
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It also is the exclusive supplier of Apple's AAPL custom chips. Apple Inc. (AAPL): Free Stock Analysis Report As such, ETFs targeting the semiconductor space like VanEck Vectors Semiconductor ETF SMH, iShares Semiconductor ETF SOXX, SPDR S&P Semiconductor ETF XSD, Invesco Dynamic Semiconductors ETF PSI and Invesco PHLX Semiconductor ETF SOXQ surged nearly 3% each.
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It also is the exclusive supplier of Apple's AAPL custom chips. Apple Inc. (AAPL): Free Stock Analysis Report As such, ETFs targeting the semiconductor space like VanEck Vectors Semiconductor ETF SMH, iShares Semiconductor ETF SOXX, SPDR S&P Semiconductor ETF XSD, Invesco Dynamic Semiconductors ETF PSI and Invesco PHLX Semiconductor ETF SOXQ surged nearly 3% each.
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18408.0
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2022-11-16 00:00:00 UTC
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1 Unstoppable Vanguard ETF That Could Double Your Money in 2023
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AAPL
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https://www.nasdaq.com/articles/1-unstoppable-vanguard-etf-that-could-double-your-money-in-2023
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nan
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nan
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Investing in the stock market can be daunting during periods of volatility, but it's a fantastic time to buy as we head into 2023.
Stock prices are down across the board, which means now is your chance to load up on quality investments for a fraction of the price. Once the market inevitably rebounds, you could potentially see significant returns.
While nobody can say for certain how the market will perform in 2023, there's one ETF I'm loading up on heading into next year: the Vanguard Growth ETF (NYSEMKT: VUG).
The pros and cons of investing in a growth ETF
A growth ETF is a collection of stocks with the potential to earn above-average returns. The Vanguard Growth ETF contains 250 stocks from multiple industries, and the largest holdings include Apple, Microsoft, and Amazon.
The downside of a growth ETF is that these funds are often hit harder during periods of market turbulence. High-growth stocks tend to be more volatile in general, so this type of ETF will often fall further during a downturn than broad-market funds, such as an S&P 500 ETF.
The good news, though, is that they also tend to earn higher returns over time than broad-market funds.
For example, although the Vanguard Growth ETF is currently down nearly 30% over the past year (compared to the S&P 500's 15% decline), it's up roughly 354% since its inception in 2004 (while the S&P 500 is up around 250% in that time frame).
In other words, market slumps could be more severe in the short term for a growth ETF. But if you stay invested for the long run, you're more likely to see higher returns.
Could this ETF double your money?
Whether or not you'll be able to double your money in 2023 will depend largely on how the market performs in the coming year.
If the market continues its slump, there is a chance your portfolio could lose value in the near term. But if the market rebounds, you could see substantial returns in a relatively short period of time.
Investing is a long-term strategy, though, and if you give your investments several years (or even decades) to grow, you could stand to make a lot of money over time.
For example, say you invest $1,000 in the Vanguard Growth ETF right now, and you continue investing $100 per month. Historically, this fund has earned an average rate of return of just over 9% per year since its inception in 2004. At that rate, here's approximately how much you could potentially earn over time:
NUMBER OF YEARS TOTAL SAVINGS
1 $2,300
5 $8,700
10 $20,600
20 $67,000
30 $176,800
Source: Author's calculations via Investor.gov.
While growth ETFs can be more volatile than their broad-market counterparts, higher risk can come with the potential for higher rewards.
If you do choose to invest in this ETF, double-check that the rest of your portfolio is well diversified. Because high-growth stocks can be riskier, a diversified portfolio full of strong long-term investments can keep your money as safe as possible.
Nobody knows exactly what's in store for the market in 2023, so a long-term outlook is key right now. By investing in the right places and holding those investments for the long run, you could be on your way to accumulating hundreds of thousands of dollars or more in the stock market.
10 stocks we like better than Vanguard Growth ETF
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 Vanguard Growth ETF 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
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 Growth ETF. The Motley Fool has positions in and recommends Amazon, Apple, Microsoft, and Vanguard Growth ETF. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Vanguard Growth ETF contains 250 stocks from multiple industries, and the largest holdings include Apple, Microsoft, and Amazon. For example, although the Vanguard Growth ETF is currently down nearly 30% over the past year (compared to the S&P 500's 15% decline), it's up roughly 354% since its inception in 2004 (while the S&P 500 is up around 250% in that time frame). Because high-growth stocks can be riskier, a diversified portfolio full of strong long-term investments can keep your money as safe as possible.
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The good news, though, is that they also tend to earn higher returns over time than broad-market funds. The Motley Fool has positions in and recommends Amazon, Apple, Microsoft, and Vanguard Growth ETF. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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While nobody can say for certain how the market will perform in 2023, there's one ETF I'm loading up on heading into next year: the Vanguard Growth ETF (NYSEMKT: VUG). The pros and cons of investing in a growth ETF A growth ETF is a collection of stocks with the potential to earn above-average returns. For example, say you invest $1,000 in the Vanguard Growth ETF right now, and you continue investing $100 per month.
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While nobody can say for certain how the market will perform in 2023, there's one ETF I'm loading up on heading into next year: the Vanguard Growth ETF (NYSEMKT: VUG). For example, say you invest $1,000 in the Vanguard Growth ETF right now, and you continue investing $100 per month. The Motley Fool has positions in and recommends Amazon, Apple, Microsoft, and Vanguard Growth ETF.
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18409.0
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2022-11-16 00:00:00 UTC
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Should Invesco S&P 500 Revenue ETF (RWL) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-invesco-sp-500-revenue-etf-rwl-be-on-your-investing-radar-4
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Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Invesco S&P 500 Revenue ETF (RWL) is a passively managed exchange traded fund launched on 02/22/2008.
The fund is sponsored by Invesco. It has amassed assets over $1.59 billion, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Large cap companies typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.39%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.53%.
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 Healthcare sector--about 20% of the portfolio. Consumer Discretionary and Financials round out the top three.
Looking at individual holdings, Walmart Inc (WMT) accounts for about 4.12% of total assets, followed by Amazon.com Inc (AMZN) and Apple Inc (AAPL).
The top 10 holdings account for about 24.17% of total assets under management.
Performance and Risk
RWL seeks to match the performance of the OFI Revenue Weighted Large Cap Index before fees and expenses. The S&P 500 Revenue-Weighted Index is constructed by using a rules-based methodology that re-weights the constituent securities of the S&P 500 Index according to the revenue earned by the companies in the parent index- subject to a maximum 5% per company weighting.
The ETF has lost about -3.75% so far this year and is down about -1.08% in the last one year (as of 11/16/2022). In the past 52-week period, it has traded between $67.11 and $82.04.
The ETF has a beta of 0.99 and standard deviation of 24.04% for the trailing three-year period, making it a medium risk choice in the space. With about 504 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P 500 Revenue 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, RWL is a reasonable option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $54.86 billion in assets, Vanguard Value ETF has $103.84 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
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.
One Tiny Company Could Shake the EV Industry
Zacks Aggressive Growth expert Brian Bolan has pinpointed a U.S. manufacturer with an under-$5 stock price that's gearing for a monster ride. It's ramping up production of an affordable, "working man's" rival to Tesla just as soaring gas prices and desire for energy independence are set to drive the EV market to $1 trillion in 5 years.
See This Stock 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
Invesco S&P 500 Revenue ETF (RWL): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Walmart Inc. (WMT): Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Walmart Inc (WMT) accounts for about 4.12% of total assets, followed by Amazon.com Inc (AMZN) and Apple Inc (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Invesco S&P 500 Revenue ETF (RWL) is a passively managed exchange traded fund launched on 02/22/2008.
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Looking at individual holdings, Walmart Inc (WMT) accounts for about 4.12% of total assets, followed by Amazon.com Inc (AMZN) and Apple Inc (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Invesco S&P 500 Revenue ETF (RWL) is a passively managed exchange traded fund launched on 02/22/2008.
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Looking at individual holdings, Walmart Inc (WMT) accounts for about 4.12% of total assets, followed by Amazon.com Inc (AMZN) and Apple Inc (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives Invesco S&P 500 Revenue 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, Walmart Inc (WMT) accounts for about 4.12% of total assets, followed by Amazon.com Inc (AMZN) and Apple Inc (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets.
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18410.0
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2022-11-16 00:00:00 UTC
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Should Vanguard Growth ETF (VUG) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-growth-etf-vug-be-on-your-investing-radar-4
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If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Vanguard Growth ETF (VUG), a passively managed exchange traded fund launched on 01/26/2004.
The fund is sponsored by Vanguard. It has amassed assets over $71.24 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies typically have a market capitalization above $10 billion. 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. Further, growth stocks have a higher level of volatility associated with them. 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
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.66%.
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 47.70% of the portfolio. Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.30% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 49.6% of total assets under management.
Performance and Risk
VUG seeks to match the performance of the CRSP U.S. Large Cap Growth Index before fees and expenses. The CRSP US Large Cap Growth Index represents the growth companies of the CRSP US Large Cap Index.
The ETF has lost about -28.34% so far this year and is down about -27.41% in the last one year (as of 11/16/2022). In the past 52-week period, it has traded between $208.46 and $325.67.
The ETF has a beta of 1.09 and standard deviation of 29.01% for the trailing three-year period, making it a medium risk choice in the space. With about 262 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard 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, VUG is a sufficient 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 iShares Russell 1000 Growth ETF (IWF) and the Invesco QQQ (QQQ) track a similar index. While iShares Russell 1000 Growth ETF has $61.15 billion in assets, Invesco QQQ has $162.72 billion. IWF has an expense ratio of 0.18% and QQQ charges 0.20%.
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.
One Tiny Company Could Shake the EV Industry
Zacks Aggressive Growth expert Brian Bolan has pinpointed a U.S. manufacturer with an under-$5 stock price that's gearing for a monster ride. It's ramping up production of an affordable, "working man's" rival to Tesla just as soaring gas prices and desire for energy independence are set to drive the EV market to $1 trillion in 5 years.
See This Stock 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
Vanguard Growth ETF (VUG): 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
iShares Russell 1000 Growth ETF (IWF): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.30% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report It has amassed assets over $71.24 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.30% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Performance and Risk VUG seeks to match the performance of the CRSP U.S. Large Cap Growth Index before fees and expenses.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.30% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Vanguard Growth ETF (VUG), a passively managed exchange traded fund launched on 01/26/2004.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.30% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Vanguard Growth ETF (VUG), a passively managed exchange traded fund launched on 01/26/2004.
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18411.0
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2022-11-16 00:00:00 UTC
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How One ETF Underweighted Mega-Caps and Beat the S&P 500
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AAPL
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https://www.nasdaq.com/articles/how-one-etf-underweighted-mega-caps-and-beat-the-sp-500
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Sometimes, bold contrarian calls can be more bold than profitable, but when an active manager gets it right, the results can really pay off. One such success story lies with the FCF US Quality ETF (TTAC).
Step back to 2021, the days when the bull market seemed like it could run forever, and the tech giants -- including Meta (META), Apple (AAPL), Amazon (AMZN), Alphabet (GOOG), Microsoft (MSFT), and even Tesla (TSLA) -- seemed like they could do no wrong for investors.
Not everyone was convinced, however. Back when the market remained bullish on tech, FCF Advisors went underweight on these so-called “FAAMGT” stocks in its signature strategy.
Starting in July 2021, TTAC allocated 12.4% less of its portfolio in these big tech mega-caps than its performance benchmark, the S&P 500 Index.
Source: FCF Advisors
The decision came about after a particularly strong earnings season for mega-cap tech names, in which the FAAMGT stocks beat their earnings estimates -- sometimes dramatically -- but revealed that the companies’ free cash flows weren't keep pacing with their net incomes.
“The most important factor for us is the free cash flow profitability factor,” FCF Advisors CEO and CIO Bob Shea told CNBC at the time. “So we are underweight this group, which has been rallying nicely, but which I would contend is more a function of what’s happened in interest rates, risk parity flows, and performance chasing into these earnings.”
As Tech Giants Crumble, TTAC Holds On
When the stock market began to turn in the spring of 2022, the tech mega-caps were the ones that fell farthest. Tech stocks, which had already sagged from their lockdown-driven highs of 2020, took the Fed’s initial interest rate hikes and hawkish signaling on the chin.
From July 31 to October 31, Microsoft fell 18.5%, Tesla 0.7%, Alphabet 30%, Amazon 38%, and Meta a whopping 74%. Only Apple rose, but by a mere 5.1%.
Source: YCharts
As the FAAMGT stocks dragged the rest of the S&P 500 Index along with them, the prescience of FCF Advisors’ call to underweight tech names became apparent.
In the period from July 31, 2021 to October 31, 2022 -- the period in which FCF Advisors had been underweight on these tech stocks -- TTAC’s cumulative active return was 5.26%. (Active return is the performance difference between TTAC and its benchmark, which in this case is the S&P 500 Index.)
In other words, in a market bogged down by the FAAMGT stocks, TTAC stayed afloat.
In fact, a full 47.5% of the excess return TTAC offered against its benchmark could be attributed back to that simple yet bold contrarian call to underweight the tech giants at their peak.
Source: YCharts
More Opportunities Ahead?
Active management doesn’t have to be flashy to be effective. TTAC’s underweight call, which prioritized free cash flow over other metrics of profitability more susceptible to management manipulation like GAAP earnings, offered alpha at a time when it was sorely needed.
Even now, TTAC is still underweight to several of the FAAMGT stocks. Its active weight for Microsoft is 2.6% for example, while it no longer holds any Amazon stock, weighted at 2.6% in the S&P 500.
Time will tell if the call pays off again. But if history is any guide, there will be more opportunities for an ETF like TTAC to prove itself in a volatile market.
For more news, information, and strategy, visit the Free Cash Flow Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Step back to 2021, the days when the bull market seemed like it could run forever, and the tech giants -- including Meta (META), Apple (AAPL), Amazon (AMZN), Alphabet (GOOG), Microsoft (MSFT), and even Tesla (TSLA) -- seemed like they could do no wrong for investors. Source: YCharts As the FAAMGT stocks dragged the rest of the S&P 500 Index along with them, the prescience of FCF Advisors’ call to underweight tech names became apparent. In fact, a full 47.5% of the excess return TTAC offered against its benchmark could be attributed back to that simple yet bold contrarian call to underweight the tech giants at their peak.
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Step back to 2021, the days when the bull market seemed like it could run forever, and the tech giants -- including Meta (META), Apple (AAPL), Amazon (AMZN), Alphabet (GOOG), Microsoft (MSFT), and even Tesla (TSLA) -- seemed like they could do no wrong for investors. “The most important factor for us is the free cash flow profitability factor,” FCF Advisors CEO and CIO Bob Shea told CNBC at the time. From July 31 to October 31, Microsoft fell 18.5%, Tesla 0.7%, Alphabet 30%, Amazon 38%, and Meta a whopping 74%.
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Step back to 2021, the days when the bull market seemed like it could run forever, and the tech giants -- including Meta (META), Apple (AAPL), Amazon (AMZN), Alphabet (GOOG), Microsoft (MSFT), and even Tesla (TSLA) -- seemed like they could do no wrong for investors. Source: FCF Advisors The decision came about after a particularly strong earnings season for mega-cap tech names, in which the FAAMGT stocks beat their earnings estimates -- sometimes dramatically -- but revealed that the companies’ free cash flows weren't keep pacing with their net incomes. “So we are underweight this group, which has been rallying nicely, but which I would contend is more a function of what’s happened in interest rates, risk parity flows, and performance chasing into these earnings.” As Tech Giants Crumble, TTAC Holds On When the stock market began to turn in the spring of 2022, the tech mega-caps were the ones that fell farthest.
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Step back to 2021, the days when the bull market seemed like it could run forever, and the tech giants -- including Meta (META), Apple (AAPL), Amazon (AMZN), Alphabet (GOOG), Microsoft (MSFT), and even Tesla (TSLA) -- seemed like they could do no wrong for investors. From July 31 to October 31, Microsoft fell 18.5%, Tesla 0.7%, Alphabet 30%, Amazon 38%, and Meta a whopping 74%. In the period from July 31, 2021 to October 31, 2022 -- the period in which FCF Advisors had been underweight on these tech stocks -- TTAC’s cumulative active return was 5.26%.
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18412.0
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2022-11-15 00:00:00 UTC
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US STOCKS-Wall Street jumps on growing evidence of easing inflation
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https://www.nasdaq.com/articles/us-stocks-wall-street-jumps-on-growing-evidence-of-easing-inflation
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nan
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By Amruta Khandekar and Ankika Biswas
Nov 15 (Reuters) - Wall Street's main indexes jumped on Tuesday as growing evidence of cooling inflation bolstered hopes of smaller rate hikes by the Federal Reserve, while Walmart's upbeat forecast powered gains in retail sector.
Data showed U.S. producer prices increased less than expected, rising 8% in the 12 months through October against an estimated 8.3% rise, according to a Reuters poll of economists.
The report follows a softer-than-expected consumer prices reading late last week, which sparked a massive rally on hopes that the Fed would tone down its aggressive monetary policy approach that has roiled markets this year.
Following the latest data, traders' bets of a 50-basis points rate hike in December surged to 91% compared with 71.5% last week. FEDWATCH
"Going into the final months of the year, this (the inflation data) gives the Fed a chance to go from at least 75 to 50 basis points and potentially even further," said Phil Blancato, chief executive of Ladenburg Thalmann Asset Management in New York.
Shares of Walmart Inc WMT.N jumped 7% after the top U.S. retailer lifted its annual sales and profit forecasts, benefiting from a steady demand for groceries despite higher prices.
Its results boosted stocks of other major retailers, including Target Corp TGT.N and Costco COST.O. Target will report results on Wednesday.
Home Depot Inc HD.Nleft its annual forecasts unchanged, but the home improvement chain's results exceeded Wall Street expectations and shares rose 1.6% amid a jump in shares of retailers.
Among the S&P 500 sectors, consumer staples was up .SPLRCS 1.2%, while the consumer discretionary .SPLRCD index jumped 1.9%.
Boosting the Nasdaq .IXIC, shares of megacap technology and other growth stocks such as Apple AAPL.O, Microsoft Corp MSFT.O and Alphabet GOOGL.O rose between 1% and 3%.
Focus was also on comments from policymakers, after Fed Vice Chair Lael Brainard and Governor Christoper Waller in recent days emphasized on the need to keep raising rates to rein in inflation.
Atlanta President Raphael Bostic echoed the views, saying he sees little evidence that the central bank's aggressive monetary policy tightening is slowing inflation.
At 12:41 a.m. ET, the Dow Jones Industrial Average .DJI was up 164.48 points, or 0.49%, at 33,701.18, the S&P 500 .SPX was up 51.46 points, or 1.30%, at 4,008.71, and the Nasdaq Composite .IXIC was up 253.48 points, or 2.26%, at 11,449.70.
U.S.-listed shares of Chinese firms including JD.Com JD.O, Alibaba Group Holding BABA.N rose between 7% and 12% after President Joe Biden and Chinese leader Xi Jinping's meeting on Monday where they pledged more frequent communications.
U.S.-listed shares of Taiwan Semiconductor Manufacturing TSM.N jumped 12.2% after Warren Buffett's Berkshire Hathaway BRKa.Nbought more than $4.1 billion of stock in the company.
Advancing issues outnumbered decliners by a 5.30-to-1 ratio on the NYSE and by a 2.80-to-1 ratio on the Nasdaq.
The S&P index recorded three new 52-week highs and no new lows, while the Nasdaq recorded 56 new highs and 51 new lows.
(Reporting by Shubham Batra, Sruthi Shankar, Amruta Khandekar and Ankika Biswas; Additional reporting by Devik Jain; Editing by Shounak Dasgupta and Arun Koyyur)
((Shubham.Batra@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Boosting the Nasdaq .IXIC, shares of megacap technology and other growth stocks such as Apple AAPL.O, Microsoft Corp MSFT.O and Alphabet GOOGL.O rose between 1% and 3%. By Amruta Khandekar and Ankika Biswas Nov 15 (Reuters) - Wall Street's main indexes jumped on Tuesday as growing evidence of cooling inflation bolstered hopes of smaller rate hikes by the Federal Reserve, while Walmart's upbeat forecast powered gains in retail sector. The report follows a softer-than-expected consumer prices reading late last week, which sparked a massive rally on hopes that the Fed would tone down its aggressive monetary policy approach that has roiled markets this year.
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Boosting the Nasdaq .IXIC, shares of megacap technology and other growth stocks such as Apple AAPL.O, Microsoft Corp MSFT.O and Alphabet GOOGL.O rose between 1% and 3%. By Amruta Khandekar and Ankika Biswas Nov 15 (Reuters) - Wall Street's main indexes jumped on Tuesday as growing evidence of cooling inflation bolstered hopes of smaller rate hikes by the Federal Reserve, while Walmart's upbeat forecast powered gains in retail sector. Its results boosted stocks of other major retailers, including Target Corp TGT.N and Costco COST.O.
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Boosting the Nasdaq .IXIC, shares of megacap technology and other growth stocks such as Apple AAPL.O, Microsoft Corp MSFT.O and Alphabet GOOGL.O rose between 1% and 3%. By Amruta Khandekar and Ankika Biswas Nov 15 (Reuters) - Wall Street's main indexes jumped on Tuesday as growing evidence of cooling inflation bolstered hopes of smaller rate hikes by the Federal Reserve, while Walmart's upbeat forecast powered gains in retail sector. Home Depot Inc HD.Nleft its annual forecasts unchanged, but the home improvement chain's results exceeded Wall Street expectations and shares rose 1.6% amid a jump in shares of retailers.
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Boosting the Nasdaq .IXIC, shares of megacap technology and other growth stocks such as Apple AAPL.O, Microsoft Corp MSFT.O and Alphabet GOOGL.O rose between 1% and 3%. By Amruta Khandekar and Ankika Biswas Nov 15 (Reuters) - Wall Street's main indexes jumped on Tuesday as growing evidence of cooling inflation bolstered hopes of smaller rate hikes by the Federal Reserve, while Walmart's upbeat forecast powered gains in retail sector. The report follows a softer-than-expected consumer prices reading late last week, which sparked a massive rally on hopes that the Fed would tone down its aggressive monetary policy approach that has roiled markets this year.
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18413.0
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2022-11-15 00:00:00 UTC
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Taiwan president decries 'rumours' about chip investment risk on island
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AAPL
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https://www.nasdaq.com/articles/taiwan-president-decries-rumours-about-chip-investment-risk-on-island
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nan
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By Ben Blanchard and Sarah Wu
TAIPEI, Nov 16 (Reuters) - Taiwan President Tsai Ing-wen has decried "rumours" about the risk of investing in the island's key semiconductor industry, saying the government was working hard to ensure such investments continued.
Taiwan, home to the world's largest contract chipmaker TSMC 2330.TW, TSM.N, plays an outsized role in providing the chips used in everything from cars and smartphones to fighter jets, and is a major supplier to companies like Apple Inc AAPL.O.
But the Chinese military's menacing of the island to assert Beijing's sovereignty claims, especially after U.S. House Speaker Nancy Pelosi visited Taipei in August, is causing the chip industry to rethink the risk over Taiwan.
Meeting Frederic Schneider-Maunoury, chief operations officer of ASML Holding NV ASML.AS, a key equipment supplier to chip companies like TSMC, Tsai praised the European company for its commitment to investing in Taiwan.
"At this moment when the world is paying attention to and is concerned about Taiwan, I am very grateful to ASML for investing in Taiwan with concrete actions," Tsai said, according to comments published by the presidential office late on Tuesday.
"I believe that this also discredits rumours of excessive speculation about Taiwan's risk," she added.
Rick Tsai, the chief executive of Taiwan's largest chip designer MediaTek Inc 2454.TW, told Reuters this month that US-China tensions are pushing some manufacturers to talk about expanding part of their supply chain beyond Taiwan, but it's "incremental."
ASML dominates theglobal marketfor lithography systems, which project light to create the microscopic circuitry on chips. TSMC uses ASML's EUV machines to manufacture its most advanced chips.
ASML did not immediately respond to a request for comment on the meeting.
Tsai said that investing in Taiwan was "definitely a very correct direction" and the government will continue to provide support.
"I also look forward to Taiwan's continued deepening of cooperation with democratic allies to build a safer and more resilient global supply chain," she added.
The presidential office statement cited Schneider-Maunoury as telling Tsai that the company will continue to increase its investments in Taiwan, pointing out they already have five factories and employee more than 4,500 people on the island.
(Reporting by Ben Blanchard and Sarah Wu; Editing by Christian Schmollinger)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taiwan, home to the world's largest contract chipmaker TSMC 2330.TW, TSM.N, plays an outsized role in providing the chips used in everything from cars and smartphones to fighter jets, and is a major supplier to companies like Apple Inc AAPL.O. But the Chinese military's menacing of the island to assert Beijing's sovereignty claims, especially after U.S. House Speaker Nancy Pelosi visited Taipei in August, is causing the chip industry to rethink the risk over Taiwan. The presidential office statement cited Schneider-Maunoury as telling Tsai that the company will continue to increase its investments in Taiwan, pointing out they already have five factories and employee more than 4,500 people on the island.
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Taiwan, home to the world's largest contract chipmaker TSMC 2330.TW, TSM.N, plays an outsized role in providing the chips used in everything from cars and smartphones to fighter jets, and is a major supplier to companies like Apple Inc AAPL.O. By Ben Blanchard and Sarah Wu TAIPEI, Nov 16 (Reuters) - Taiwan President Tsai Ing-wen has decried "rumours" about the risk of investing in the island's key semiconductor industry, saying the government was working hard to ensure such investments continued. Meeting Frederic Schneider-Maunoury, chief operations officer of ASML Holding NV ASML.AS, a key equipment supplier to chip companies like TSMC, Tsai praised the European company for its commitment to investing in Taiwan.
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Taiwan, home to the world's largest contract chipmaker TSMC 2330.TW, TSM.N, plays an outsized role in providing the chips used in everything from cars and smartphones to fighter jets, and is a major supplier to companies like Apple Inc AAPL.O. By Ben Blanchard and Sarah Wu TAIPEI, Nov 16 (Reuters) - Taiwan President Tsai Ing-wen has decried "rumours" about the risk of investing in the island's key semiconductor industry, saying the government was working hard to ensure such investments continued. Meeting Frederic Schneider-Maunoury, chief operations officer of ASML Holding NV ASML.AS, a key equipment supplier to chip companies like TSMC, Tsai praised the European company for its commitment to investing in Taiwan.
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Taiwan, home to the world's largest contract chipmaker TSMC 2330.TW, TSM.N, plays an outsized role in providing the chips used in everything from cars and smartphones to fighter jets, and is a major supplier to companies like Apple Inc AAPL.O. By Ben Blanchard and Sarah Wu TAIPEI, Nov 16 (Reuters) - Taiwan President Tsai Ing-wen has decried "rumours" about the risk of investing in the island's key semiconductor industry, saying the government was working hard to ensure such investments continued. Meeting Frederic Schneider-Maunoury, chief operations officer of ASML Holding NV ASML.AS, a key equipment supplier to chip companies like TSMC, Tsai praised the European company for its commitment to investing in Taiwan.
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18414.0
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2022-11-15 00:00:00 UTC
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Apple prepares to source chips from Arizona plant - Bloomberg News
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AAPL
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https://www.nasdaq.com/articles/apple-prepares-to-source-chips-from-arizona-plant-bloomberg-news
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Nov 15 (Reuters) - Apple Inc AAPL.O is preparing to begin sourcing chips for its devices from a plant under construction in Arizona in the United States, Bloomberg News reported on Tuesday.
The company may also expand its supply of chips from plants in Europe, the report said, attributing it to remarks by Chief Executive Officer Tim Cook at an internal meeting in Germany with local engineering and retail employees.
Apple declined to comment when contacted by Reuters.
According to the report, Cook was likely referring to an Arizona factory that will be run by Taiwan Semiconductor Manufacturing Co 2330.TW, the world's largest contract chipmaker and a major supplier to Apple.
Last year, TSMC said it had started construction at a site in Arizona where it planned to spend $12 billion to build a computer chip factory, and planned to start volume production of chips using its 5-nanometer production technology in 2024.
Earlier this month, TSMC also said it was constructing a building that could serve as its second chip factory in Arizona.
The United States has been encouraging foreign tech firms to manufacture in the country and has actively supported local research, development and manufacturing after passing its CHIPS Act.
(Reporting by Tiyashi Datta in Bengaluru; Editing by Shailesh Kuber)
((tiyashi.datta@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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Nov 15 (Reuters) - Apple Inc AAPL.O is preparing to begin sourcing chips for its devices from a plant under construction in Arizona in the United States, Bloomberg News reported on Tuesday. The company may also expand its supply of chips from plants in Europe, the report said, attributing it to remarks by Chief Executive Officer Tim Cook at an internal meeting in Germany with local engineering and retail employees. According to the report, Cook was likely referring to an Arizona factory that will be run by Taiwan Semiconductor Manufacturing Co 2330.TW, the world's largest contract chipmaker and a major supplier to Apple.
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Nov 15 (Reuters) - Apple Inc AAPL.O is preparing to begin sourcing chips for its devices from a plant under construction in Arizona in the United States, Bloomberg News reported on Tuesday. Last year, TSMC said it had started construction at a site in Arizona where it planned to spend $12 billion to build a computer chip factory, and planned to start volume production of chips using its 5-nanometer production technology in 2024. Earlier this month, TSMC also said it was constructing a building that could serve as its second chip factory in Arizona.
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Nov 15 (Reuters) - Apple Inc AAPL.O is preparing to begin sourcing chips for its devices from a plant under construction in Arizona in the United States, Bloomberg News reported on Tuesday. According to the report, Cook was likely referring to an Arizona factory that will be run by Taiwan Semiconductor Manufacturing Co 2330.TW, the world's largest contract chipmaker and a major supplier to Apple. Last year, TSMC said it had started construction at a site in Arizona where it planned to spend $12 billion to build a computer chip factory, and planned to start volume production of chips using its 5-nanometer production technology in 2024.
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Nov 15 (Reuters) - Apple Inc AAPL.O is preparing to begin sourcing chips for its devices from a plant under construction in Arizona in the United States, Bloomberg News reported on Tuesday. The company may also expand its supply of chips from plants in Europe, the report said, attributing it to remarks by Chief Executive Officer Tim Cook at an internal meeting in Germany with local engineering and retail employees. Apple declined to comment when contacted by Reuters.
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18415.0
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2022-11-15 00:00:00 UTC
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After Hours Most Active for Nov 15, 2022 : CCL, SHY, BAC, INTC, ATUS, AAPL, EMB, EGHT, LUMN, EW, WFC, AMZN
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-nov-15-2022-%3A-ccl-shy-bac-intc-atus-aapl-emb-eght-lumn-ew-wfc
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The NASDAQ 100 After Hours Indicator is down -8.92 to 11,862.23. The total After hours volume is currently 99,214,205 shares traded.
The following are the most active stocks for the after hours session:
Carnival Corporation (CCL) is -1.42 at $9.74, with 11,590,358 shares traded. CCL's current last sale is 105.3% of the target price of $9.25.
iShares 1-3 Year Treasury Bond ETF (SHY) is +0.05 at $81.30, with 7,169,432 shares traded. This represents a .92% increase from its 52 Week Low.
Bank of America Corporation (BAC) is -0.05 at $37.65, with 5,431,823 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. The consensus EPS forecast is $0.85. As reported by Zacks, the current mean recommendation for BAC is in the "buy range".
Intel Corporation (INTC) is unchanged at $30.71, with 5,084,226 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $0.65. INTC's current last sale is 102.37% of the target price of $30.
Altice USA, Inc. (ATUS) is unchanged at $4.85, with 4,982,986 shares traded. ATUS's current last sale is 48.5% of the target price of $10.
Apple Inc. (AAPL) is -0.09 at $149.95, with 4,099,809 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 $1.52. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) is -0.1152 at $84.23, with 3,867,393 shares traded. This represents a 10.33% increase from its 52 Week Low.
8x8 Inc (EGHT) is unchanged at $4.45, with 3,169,091 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. The consensus EPS forecast is $-0.18. EGHT's current last sale is 74.17% of the target price of $6.
Lumen Technologies, Inc. (LUMN) is +0.01 at $6.09, with 2,972,526 shares traded. LUMN's current last sale is 87% of the target price of $7.
Edwards Lifesciences Corporation (EW) is unchanged at $75.96, with 2,395,259 shares traded. As reported by Zacks, the current mean recommendation for EW is in the "buy range".
Wells Fargo & Company (WFC) is -0.16 at $46.55, with 2,368,679 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. The consensus EPS forecast is $1.28. As reported by Zacks, the current mean recommendation for WFC is in the "buy range".
Amazon.com, Inc. (AMZN) is -0.1201 at $98.82, with 2,312,505 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.09 at $149.95, with 4,099,809 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". iShares 1-3 Year Treasury Bond ETF (SHY) is +0.05 at $81.30, with 7,169,432 shares traded.
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Apple Inc. (AAPL) is -0.09 at $149.95, with 4,099,809 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 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022.
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Apple Inc. (AAPL) is -0.09 at $149.95, with 4,099,809 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 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022.
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Apple Inc. (AAPL) is -0.09 at $149.95, with 4,099,809 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 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022.
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18416.0
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2022-11-15 00:00:00 UTC
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Buffett's Berkshire Hathaway Buys Taiwan Semiconductor, Adds to Occidental Petroleum Stake
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AAPL
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https://www.nasdaq.com/articles/buffetts-berkshire-hathaway-buys-taiwan-semiconductor-adds-to-occidental-petroleum-stake
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nan
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Unlike most funds, Berkshire Hathaway (US:BRK.A, US:BRK.B) is a public company, which means we get a good idea of what Warren Buffett and Charlie Munger are buying and selling when the company reports earnings.
However, it also helps when the firm files its Form 13F with the U.S. Securities and Exchange Commission (SEC). The report, which comes 45 days after the end of the quarter, shows what Berkshire Hathaway’s holdings were at the end of the most recent quarter.
The main takeaway? Berkshire was cutting back on financials and inching up its stakes in energy. It also had an interesting new play on tech.
Buffett Is a Buyer Of Energy and Seller of Some Bank Stocks
Buffett’s Berkshire did not shy away from buying energy in the most recent quarter. The firm has gotten a lot of exposure due to its massive position in Occidental Petroleum (US:OXY), a position that grew in Q3.
Berkshire upped its stake in Occidental to roughly 194.4 million shares, up from 158.6 million shares in the prior quarter. It also increased its stake in Chevron (US:CVX) by roughly 4 million shares to 165 million shares.
The firm was also paring down some of its bank stock positions, as it completely exited its stake in Bank of New York Mellon (US:BK) and pared down its position in U.S. Bancorp (US:USB) from 120 million shares down to 78 million shares as of the end of Q3.
However, due to a separate Form 13G filing, we know the stake is now even lower (at roughly 53 million shares).
Berkshire Hathaway’s New Positions & Sales
The firm made a few new purchases in the quarter, including 5.795 million shares of Louisiana-Pacific (US:LPX) and ~433,000 shares of Jefferies Financial (US:JEF). However, the most noteworthy purchase was roughly $4 billion worth of Taiwan Semiconductor (US:TSM).
The 60.06 million shares make the position a top-10 holding for Buffett & Co. based on its current portfolio of public companies.
On the flip side, Berkshire Hathaway reduced its stake in Activision Blizzard (US:ATVI) by roughly 12%, Kroger (US:KR) by 4% and General Motors (US:GM) by 5.5%.
Its position in Apple (US:AAPL) was unchanged, at 894.8 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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Its position in Apple (US:AAPL) was unchanged, at 894.8 million shares. The firm was also paring down some of its bank stock positions, as it completely exited its stake in Bank of New York Mellon (US:BK) and pared down its position in U.S. Bancorp (US:USB) from 120 million shares down to 78 million shares as of the end of Q3. The 60.06 million shares make the position a top-10 holding for Buffett & Co. based on its current portfolio of public companies.
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Its position in Apple (US:AAPL) was unchanged, at 894.8 million shares. The report, which comes 45 days after the end of the quarter, shows what Berkshire Hathaway’s holdings were at the end of the most recent quarter. Berkshire upped its stake in Occidental to roughly 194.4 million shares, up from 158.6 million shares in the prior quarter.
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Its position in Apple (US:AAPL) was unchanged, at 894.8 million shares. Berkshire upped its stake in Occidental to roughly 194.4 million shares, up from 158.6 million shares in the prior quarter. The firm was also paring down some of its bank stock positions, as it completely exited its stake in Bank of New York Mellon (US:BK) and pared down its position in U.S. Bancorp (US:USB) from 120 million shares down to 78 million shares as of the end of Q3.
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Its position in Apple (US:AAPL) was unchanged, at 894.8 million shares. Buffett Is a Buyer Of Energy and Seller of Some Bank Stocks Buffett’s Berkshire did not shy away from buying energy in the most recent quarter. Berkshire upped its stake in Occidental to roughly 194.4 million shares, up from 158.6 million shares in the prior quarter.
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18417.0
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2022-11-15 00:00:00 UTC
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Dow Movers: MCD, WMT
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-mcd-wmt
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In early trading on Tuesday, shares of Walmart topped the list of the day's best performing Dow Jones Industrial Average components, trading up 6.6%. Year to date, Walmart registers a 2.0% gain.
And the worst performing Dow component thus far on the day is McDonald's, trading down 0.5%. McDonald's is showing a gain of 1.0% looking at the year to date performance.
Two other components making moves today are Home Depot, trading down 0.2%, and Apple, trading up 2.9% on the day.
VIDEO: Dow Movers: MCD, WMT
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Tuesday, shares of Walmart topped the list of the day's best performing Dow Jones Industrial Average components, trading up 6.6%. And the worst performing Dow component thus far on the day is McDonald's, trading down 0.5%. McDonald's is showing a gain of 1.0% looking at the year to date performance.
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In early trading on Tuesday, shares of Walmart topped the list of the day's best performing Dow Jones Industrial Average components, trading up 6.6%. Year to date, Walmart registers a 2.0% gain. And the worst performing Dow component thus far on the day is McDonald's, trading down 0.5%.
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In early trading on Tuesday, shares of Walmart topped the list of the day's best performing Dow Jones Industrial Average components, trading up 6.6%. And the worst performing Dow component thus far on the day is McDonald's, trading down 0.5%. Two other components making moves today are Home Depot, trading down 0.2%, and Apple, trading up 2.9% on the day.
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And the worst performing Dow component thus far on the day is McDonald's, trading down 0.5%. McDonald's is showing a gain of 1.0% looking at the year to date performance. VIDEO: Dow Movers: MCD, WMT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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18418.0
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2022-11-15 00:00:00 UTC
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Warren Buffett Is Living Off These Five Stocks
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AAPL
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https://www.nasdaq.com/articles/warren-buffett-is-living-off-these-five-stocks
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nan
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In this video, I will break down the top 5 dividend stocks that pay Warren Buffett the largest dividend payments. Apple (NASDAQ: AAPL) may be Berkshire Hathaway's (NYSE: BRK.B) largest holding, but they are not the largest dividend payer.
Check out this short video to learn more, consider subscribing to the channel, and check out the special offer in the link below.
*Stock prices used were end-of-day prices of Nov. 13, 2022. The video was published on Nov. 14, 2022.
10 stocks we like better than Apple
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Mark Roussin, CPA has positions in Bank of America, Berkshire Hathaway (B shares), and Coca-Cola. 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 January 2024 $47.50 calls on Coca-Cola, 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.
Mark Roussin is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) may be Berkshire Hathaway's (NYSE: BRK.B) largest holding, but they are not the largest dividend payer. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Mark Roussin, CPA has positions in Bank of America, Berkshire Hathaway (B shares), and Coca-Cola.
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Apple (NASDAQ: AAPL) may be Berkshire Hathaway's (NYSE: BRK.B) largest holding, but they are not the largest dividend payer. Mark Roussin, CPA has positions in Bank of America, Berkshire Hathaway (B shares), and Coca-Cola. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares).
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Apple (NASDAQ: AAPL) may be Berkshire Hathaway's (NYSE: BRK.B) largest holding, but they are not the largest dividend payer. See the 10 stocks *Stock Advisor returns as of November 7, 2022 Bank of America is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares).
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Apple (NASDAQ: AAPL) may be Berkshire Hathaway's (NYSE: BRK.B) largest holding, but they are not the largest dividend payer. That's right -- they think these 10 stocks are even better buys. Mark Roussin, CPA has positions in Bank of America, Berkshire Hathaway (B shares), and Coca-Cola.
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18419.0
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2022-11-15 00:00:00 UTC
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Meta Is Cutting Costs Where It Can. Here's What It's Not Giving Up On.
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AAPL
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https://www.nasdaq.com/articles/meta-is-cutting-costs-where-it-can.-heres-what-its-not-giving-up-on.
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nan
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Meta Platforms (NASDAQ: META) investors were none too happy with its third-quarter earnings report, and management had to do something about it.
In response, management announced a round of cost-cutting measures, including laying off 11,000 employees. It slashed its expense outlook for 2023, paring back its capital expenditures outlook by $2 billion on the top end.
While Meta is cutting costs where it can, there's a key area where it's not going to stop spending.
Reviving the advertising business
Meta saw a huge spike in capital expenditures in 2022.
Management expects capex to climb nearly 70% year over year when all is said and done in 2022. And even with the pared-back outlook for 2023, Meta will increase capex by another 10% or so. What's more, Meta's increasing capital expenditures even as its revenue declines, leading to a substantial bump in capex as a percentage of revenue.
As management explained on its fourth quarter 2021earnings callat the start of the year, the increase in capital expenditures "reflects a significant increase in our AI and Machine Learning investments." It reiterated that next year's increase will also go toward improving AI.
The AI investments are two-fold.
First, Meta is working on improving its recommendation algorithm for Reels and its feed products on Facebook and Instagram. Better recommendations will lead to more engagement among users, which will theoretically lead to more ad impressions. Meta can use the same recommendation engine to surface more relevant ads for its users, leading to more clicks for Meta's customers.
The second area of AI investments has to do with measuring the impact of advertising. Meta saw its advertising business upended when Apple instituted App Tracking Transparency last year. It went from being able to track a user who clicked on an ad and seeing explicitly whether they downloaded an app or bought something from a retailer to having no clue what happens after a user leaves the walled garden. Without good data on how well an ad converts, marketers aren't willing to spend as much on those ads.
In order to rectify that problem, Meta is building AI to help determine the likelihood that an ad converts into the desired user behavior. While it'll never be as good as having precise tracking data, enough investment in computing power and AI research should develop a pretty good model. As the AI improves, marketers will have greater confidence in their advertising conversions, and they'll be able to pour more money into the ads that the AI determines work best.
Massive investments in AI are necessary to revive the $100 billion advertising business that's been hampered by changes in the industry.
Building a business for long-term success
When Meta announced its plans to slash expenses and cut its capital expenditures budget, investors cheered. But the high levels of spending are necessary for Meta's future success.
While Meta was hit with a double-whammy of Apple's App Tracking Transparency and a slowdown in ad spending across the board, it's not slowing down its investments in improving its ad business. That leads to short-term pain as expenses take a big bite out of its profits. But investing now sets up Meta for strong growth going forward as the economy works its way through these uncertain times and overall ad spending returns to growth.
The market awarded Meta shares with a nice bump in price on the news of the lowered expense outlook. But with shares still trading for an earnings multiple of around 10, the market seems to be underappreciating the potential for growth coming out of the current economic environment.
10 stocks we like better than Meta Platforms, Inc.
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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. Adam Levy has positions in Apple and Meta Platforms, Inc. The Motley Fool has positions in and recommends Apple and Meta Platforms, Inc. 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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In order to rectify that problem, Meta is building AI to help determine the likelihood that an ad converts into the desired user behavior. Building a business for long-term success When Meta announced its plans to slash expenses and cut its capital expenditures budget, investors cheered. But with shares still trading for an earnings multiple of around 10, the market seems to be underappreciating the potential for growth coming out of the current economic environment.
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Meta Platforms (NASDAQ: META) investors were none too happy with its third-quarter earnings report, and management had to do something about it. Meta saw its advertising business upended when Apple instituted App Tracking Transparency last year. Building a business for long-term success When Meta announced its plans to slash expenses and cut its capital expenditures budget, investors cheered.
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Meta can use the same recommendation engine to surface more relevant ads for its users, leading to more clicks for Meta's customers. While Meta was hit with a double-whammy of Apple's App Tracking Transparency and a slowdown in ad spending across the board, it's not slowing down its investments in improving its ad business. See the 10 stocks *Stock Advisor returns as of November 7, 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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The second area of AI investments has to do with measuring the impact of advertising. 10 stocks we like better than Meta Platforms, Inc. The Motley Fool has positions in and recommends Apple and Meta Platforms, Inc.
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18420.0
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2022-11-15 00:00:00 UTC
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2 Monster Stocks to Buy for 2023 That Are Practically Minting Money
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AAPL
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https://www.nasdaq.com/articles/2-monster-stocks-to-buy-for-2023-that-are-practically-minting-money
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The end of the year is swiftly approaching, and now is a great time to think about your investment goals for 2023. While a recession could potentially dampen your optimism for portfolio growth next year, a few companies have recently beaten market expectations despite a stock market sell-off, and could continue to win next year.
Advanced Micro Devices (NASDAQ: AMD) and Apple (NASDAQ: AAPL) defied market declines in the last month and could provide investors with significant gains in 2023.
1. Advanced Micro Devices
The PC market was hit particularly hard in 2022, with worldwide shipments declining by 19.5% in the third quarter, according to Gartner. As a leader in PC components, AMD has seen its stock fall 49% year to date because of market declines. However, investors have grown bullish in the last month, pumping up the stock by 24% since Oct. 13.
The rally came as AMD announced its latest data center chip, code-named Genoa, and said that cloud computing titans such as Microsoft's Azure and Alphabet's Google Cloud would be some of its customers. AMD's data center business has seen substantial growth in the last year, with revenue rising 45% year over year to $1.6 billion in the third quarter of 2022.
And the data center market is expected to see compound annual growth of 18.9% from 2022 to 2028, according to Grand View Research. AMD's market share in the industry has rapidly grown in the last few years, more than doubling from 10% to 22% between 2020 and 2022 by stealing share from Intel. As a result, AMD is well positioned to continue seeing gains from its data center segment in 2023.
And its gaming segment saw a year-over-year revenue rise of 13.7% in the third quarter to $1.63 billion. Despite declines in the tech market this year, AMD's gaming business was primarily boosted by being the exclusive supplier of Microsoft's Xbox Series X|S and Sony's PlayStation 5's system on a chip. Stock for the popular game consoles has stabilized in recent months, with 2023 looking likely to see substantial sales.
AMD shares suffered steep declines in 2022, but investors have gradually regained confidence in the company as growth in its non-PC segments has continued. The company's stock has seen a double-digit rise in the last month, which will likely continue through 2023, thanks to its promising gaming and data center businesses.
2. Apple
Few companies have defied market trends in 2022 like Apple. The Nasdaq-100 Technology Sector index has fallen 27% year to date, while Apple has dipped a more modest 16% in the same period as its products and services remain in demand. Apple has essentially propped up the market this year, which would appear in far more severe shape without it.
The company's fiscal 2022 proved the potency of its business in a year when hikes in inflation led to significantly decreased consumer demand for multiple companies. Apple enjoyed year-over-year growth in several segments, with iPhone sales increasing by 7% to $205 billion, Mac revenue by 14% to $40 billion, and Services by 14% to $78 billion.
Apple's continued growth this year bodes well for 2023, when the company is likely to complete its transition from Intel processors to its custom Apple Silicon chips within its Mac lineup. The iPhone manufacturer has spent the last couple of years moving each of its Macs to its custom chips, including the MacBook Air, MacBook Pro, iMac, and Mac Mini. But consumers are still awaiting an Apple Silicon Mac Pro and a beefier Mac Mini.
Since the third quarter of 2020, when Apple Silicon was first announced, the company's Mac revenue has risen 62% from $7 billion to $11.5 billion in the fourth quarter of 2022. As a result, completing the transition in 2023 could provide the company with a notable boost.
Furthermore, numerous reports suggest Apple is gearing up to launch an augmented/virtual reality (AR/VR) headset in 2023. Considering the immense success it has had with first entering markets such as smartphones, tablets, Bluetooth headphones, and smartwatches, I wouldn't bet against Apple soon dominating the $25 billion AR industry that is expected to have compound annual growth of 40.9% until 2030.
This year, Apple's robust business has proved its resilience and its ability to grow despite economic declines. As a result, the company is an excellent investment for 2023.
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When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and 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
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet (A shares), Alphabet (C shares), Apple, Intel, and Microsoft. The Motley Fool recommends Gartner 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 2023 $57.50 puts on Intel, 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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Advanced Micro Devices (NASDAQ: AMD) and Apple (NASDAQ: AAPL) defied market declines in the last month and could provide investors with significant gains in 2023. Despite declines in the tech market this year, AMD's gaming business was primarily boosted by being the exclusive supplier of Microsoft's Xbox Series X|S and Sony's PlayStation 5's system on a chip. The Nasdaq-100 Technology Sector index has fallen 27% year to date, while Apple has dipped a more modest 16% in the same period as its products and services remain in demand.
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Advanced Micro Devices (NASDAQ: AMD) and Apple (NASDAQ: AAPL) defied market declines in the last month and could provide investors with significant gains in 2023. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet (A shares), Alphabet (C shares), Apple, Intel, and Microsoft. The Motley Fool recommends Gartner 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 2023 $57.50 puts on Intel, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple.
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Advanced Micro Devices (NASDAQ: AMD) and Apple (NASDAQ: AAPL) defied market declines in the last month and could provide investors with significant gains in 2023. While a recession could potentially dampen your optimism for portfolio growth next year, a few companies have recently beaten market expectations despite a stock market sell-off, and could continue to win next year. Apple's continued growth this year bodes well for 2023, when the company is likely to complete its transition from Intel processors to its custom Apple Silicon chips within its Mac lineup.
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Advanced Micro Devices (NASDAQ: AMD) and Apple (NASDAQ: AAPL) defied market declines in the last month and could provide investors with significant gains in 2023. AMD's data center business has seen substantial growth in the last year, with revenue rising 45% year over year to $1.6 billion in the third quarter of 2022. As a result, AMD is well positioned to continue seeing gains from its data center segment in 2023.
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18421.0
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2022-11-15 00:00:00 UTC
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Should iShares S&P 100 ETF (OEF) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-ishares-sp-100-etf-oef-be-on-your-investing-radar-3
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Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the iShares S&P 100 ETF (OEF) is a passively managed exchange traded fund launched on 10/23/2000.
The fund is sponsored by Blackrock. It has amassed assets over $7.73 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to 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.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.20%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.42%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 32.70% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 11.08% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 40.92% of total assets under management.
Performance and Risk
OEF seeks to match the performance of the S&P 100 Index before fees and expenses. The S&P 100 Index measures the performance of the large-capitalization sector of the U.S. equity market. It is a subset of the S&P 500 and consists of blue chip stocks from diverse industries in the S&P 500 with exchange listed options & the Index represented approximately 45% of the market capitalization of listed U.S. equities.
The ETF has lost about -19.09% so far this year and is down about -16.52% in the last one year (as of 11/15/2022). In the past 52-week period, it has traded between $161.29 and $221.63.
The ETF has a beta of 0.99 and standard deviation of 25.29% for the trailing three-year period, making it a medium risk choice in the space. With about 105 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares S&P 100 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, OEF 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 $300.17 billion in assets, SPDR S&P 500 ETF has $369.43 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares S&P 100 ETF (OEF): 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 11.08% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the iShares S&P 100 ETF (OEF) is a passively managed exchange traded fund launched on 10/23/2000.
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Apple Inc. (AAPL): Free Stock Analysis Report Looking at individual holdings, Apple Inc (AAPL) accounts for about 11.08% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the iShares S&P 100 ETF (OEF) is a passively managed exchange traded fund launched on 10/23/2000.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 11.08% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Sector Exposure and Top Holdings It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 11.08% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Sector Exposure and Top Holdings It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk.
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18422.0
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2022-11-15 00:00:00 UTC
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Surprise! Warren Buffett Just Bought a Semiconductor Stock
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AAPL
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https://www.nasdaq.com/articles/surprise-warren-buffett-just-bought-a-semiconductor-stock
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Followers of Warren Buffett know he's generally averse to technology stocks. Buffett typically takes big positions, and therefore seeks a high bar in terms of both valuation and conviction.
Since Buffett has admitted he's a novice when it comes to technology, it's no surprise to see few tech stocks in his portfolio, which totaled nearly $300 billion as of the third quarter. While Apple (NASDAQ: AAPL) is Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) largest holding, Buffett has said he sees that more as a consumer brand than a technology stock.
If tech stocks are typically avoided, that goes double for semiconductor stocks. Semiconductors are known to be cyclical, with frequent technology disruption being more of a rule than an exception.
However, could the semiconductor industry be changing for the better? In Berkshire's 13F filing, released Monday afternoon, Buffett's conglomerate revealed it took a big position in the world's largest semiconductor foundry, Taiwan Semiconductor Manufacturing (NYSE: TSM), making it Berkshire's 10th-largest position overall.
Taiwan Semi: Right out of the Buffett playbook
Buffett watchers know that Berkshire looks to buy companies with deep competitive advantages, attractive long-term growth prospects, and bargain valuations.
Taiwan Semiconductor appears to have all three elements. In terms of competitive advantages, it's the largest, most dominant semiconductor foundry in the world. According to Statista, it produced a stunning 53.6% of all semiconductors as of the first quarter of 2022. That market share is even higher on the most advanced chip nodes, where TSM vaulted past Intel (NASDAQ: INTC) in leading-edge production several years ago.
How did Taiwan Semiconductor do it? Well, this momentum has been a long time in the making, which probably makes it more durable.
Years ago, most semiconductor firms sought to separate their manufacturing from their design, since manufacturing was very capital-intensive. For instance, in 2008, Advanced Micro Devices spun off its foundry into what is now GlobalFoundries. By shedding the foundry business, semiconductor designers could focus on their research and development, thereby boosting margins and returns on capital without having to invest in costly manufacturing plants.
That enabled the foundry part of the industry to become concentrated and diversify its customer bases, as having more customers and scale would enable outsourced foundries to run at higher utilization, thereby boosting their economics as well.
Thus, Taiwan Semi attracted more and more top semiconductor designers, and its customers' diversity allowed it to compound semiconductor manufacturing knowledge at a faster rate. That, in turn, enabled Taiwan Semi, as a pure-play foundry, to surpass Intel, one of the last integrated designer-manufacturers, in leading-edge technology. Over time, semiconductor production has only gotten more challenging, giving TSM the opportunity to surpass the former leader.
New Intel CEO Pat Gelsinger has vowed to build out its own rival foundry and catch TSM within four to five years. However, that will be a long, expensive endeavor. Making things more complicated, Intel's main cash cow, its PC chip division, is in severe decline in 2022. That could delay or hamper the former leader's plans to catch up. Meanwhile, TSM is investing another $36 billion in its leading manufacturing footprint this year.
Flexing its pricing power in tough times
Taiwan Semi's status as the outright leader in semiconductor production gives it one of Buffett's favorite qualities: Pricing power. Amid inflationary concerns for raw materials, Taiwan Semi has been able to raise prices to its chip design customers throughout the past year, while also insisting on upfront payments when capacity was tight a year ago.
Even as the semiconductor market softened this summer, TSM refused to give refunds to customers that had pre-paid. Even a TSM customer as powerful as Nvidia (NASDAQ: NVDA) was forced to take a $1.3 billion inventory charge this summer, as TSM refused to cancel production of Nvidia gaming chips ordered earlier in the year. A report from earlier this summer also claimed TSM was insisting on faster payment terms from customers, to better finance its capital expenditures.
Despite many chip stocks running into softer results this summer, Taiwan Semi continued to deliver blistering growth. Revenue grew 35.9% in Q3 in dollar-terms, with a stunningly high net profit margin of 45.8% and a sky-high return on equity of 42.9%.
While most analysts think the semiconductor sector will decline next year, management has insisted that even if that occurs, TSM will still likely grow in 2023. This is due to its dominance in leading-edge technology, and demand for lagging-edge nodes for auto and industrial applications, which are still in high demand.
Image source: Getty Images.
An opportunity came about in Q3
Finally, Buffett likely saw a tremendous bargain this summer, as TSM's stock fell after the PC sector went into freefall, China began saber-rattling over Taiwan following House Speaker Nancy Pelosi's visit to the island in August, and the U.S. unveiled restrictions on high-performance chip sales to China.
During these headwinds, TSM's stock fell to around current levels in Q3, then fell even further in early October, before recovering. That means Buffett likely bought shares at an equivalent or even higher price than shares are at now. Currently, TSM trades at roughly 15.5 times earnings and just 12.5 times next year's earnings estimates, with a 2.5% dividend yield. Shares are currently down 48% on the year and 51% from all-time highs.
Going up Apple's supply chain
Some may think the TSM purchase may have come from one of Buffett's younger lieutenants, Todd Combs or Ted Wechsler. However, if that's the case, it would be the largest of their positions, as every allocation larger than TSM in Berkshire's portfolio is a Buffett purchase. Thus, there's a good chance the TSM buyer is Buffett himself.
It's quite possible Buffett found TSM from his position in Apple. After all, TSM produces Apple's Bionic iPhone processors and M series laptop chips, so Buffett likely came to appreciate TSM's market position and pricing power through the Apple position. In October, the website MacRumors reported that even Apple had reluctantly accepted TSM's most recent price hike, after initially pushing back. According to Taiwan's Economic Daily News, "At present, not one of the IC design factories that received the price increase notice has refused."
It's a good sign for the semiconductor sector that Buffett's giving at least one stock in the space his seal of approval. The iShares Semiconductor ETF (NASDAQ: SOXX) is down 32% on the year, so it could use the help.
10 stocks we like better than Taiwan Semiconductor Manufacturing
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Taiwan Semiconductor Manufacturing wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 7, 2022
Billy Duberstein has positions in Apple, Berkshire Hathaway (B shares), and Taiwan Semiconductor Manufacturing 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, Apple, Berkshire Hathaway (B shares), Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), 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 (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), 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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While Apple (NASDAQ: AAPL) is Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) largest holding, Buffett has said he sees that more as a consumer brand than a technology stock. That market share is even higher on the most advanced chip nodes, where TSM vaulted past Intel (NASDAQ: INTC) in leading-edge production several years ago. By shedding the foundry business, semiconductor designers could focus on their research and development, thereby boosting margins and returns on capital without having to invest in costly manufacturing plants.
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While Apple (NASDAQ: AAPL) is Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) largest holding, Buffett has said he sees that more as a consumer brand than a technology stock. In Berkshire's 13F filing, released Monday afternoon, Buffett's conglomerate revealed it took a big position in the world's largest semiconductor foundry, Taiwan Semiconductor Manufacturing (NYSE: TSM), making it Berkshire's 10th-largest position overall. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Berkshire Hathaway (B shares), Intel, Nvidia, and Taiwan Semiconductor Manufacturing.
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While Apple (NASDAQ: AAPL) is Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) largest holding, Buffett has said he sees that more as a consumer brand than a technology stock. In Berkshire's 13F filing, released Monday afternoon, Buffett's conglomerate revealed it took a big position in the world's largest semiconductor foundry, Taiwan Semiconductor Manufacturing (NYSE: TSM), making it Berkshire's 10th-largest position overall. See the 10 stocks *Stock Advisor returns as of November 7, 2022 Billy Duberstein has positions in Apple, Berkshire Hathaway (B shares), and Taiwan Semiconductor Manufacturing and has the following options: short January 2023 $210 calls on Apple.
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While Apple (NASDAQ: AAPL) is Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) largest holding, Buffett has said he sees that more as a consumer brand than a technology stock. That market share is even higher on the most advanced chip nodes, where TSM vaulted past Intel (NASDAQ: INTC) in leading-edge production several years ago. How did Taiwan Semiconductor do it?
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18423.0
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2022-11-15 00:00:00 UTC
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Over Half of Millennials Own Stocks. Here Are 3 Stock Ideas to Start Your Own Portfolio.
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https://www.nasdaq.com/articles/over-half-of-millennials-own-stocks.-here-are-3-stock-ideas-to-start-your-own-portfolio.
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Over half of Millennials own stocks, according to recent research by The Motley Fool. It might not seem like it today, but the stock market has historically proven resilient, enduring recessions and wars to deliver annual returns averaging 10% over decades. In other words, owning stocks is one of the most proven ways to build wealth.
Don't panic if you're one of those who haven't gotten started yet; it's never too late. You can build a diversified portfolio of stocks that produces compound returns and helps brighten your financial future. Remember that Millennials and Gen Z are the upcoming generations of consumers. Below are three companies younger consumers love that have the robust financials to make them superb investments for kick-starting a diversified portfolio.
Image source: Getty Images.
1. Alphabet
Technology conglomerate Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) owns the internet search engine Google and the video platform YouTube, the two most-trafficked websites in the world. Google conducts 84% of the world's internet searches, while YouTube dominates video content. According to a study by Morning Consult, Google and YouTube rank among Gen Z's most-beloved brands, which probably shouldn't surprise anyone considering Alphabet's internet presence.
Alphabet monetizes all of the attention it gets by selling ads to the billions of eyeballs on its websites. The company did $282 billion in revenue over the past four quarters, making $62 billion in cash profits (22% free cash flow conversion rate). Alphabet also has deep pockets, including $116 billion in cash on its balance sheet, which can act as a safety net to help the company during hard times and fund new growth ideas during good times.
GOOG Revenue (TTM) data by YCharts
The stock has fallen 36% from its high in this bear market, but business is still doing well. Analysts believe that Alphabet's earnings per share (EPS) will grow by an average of 11% annually over the next three to five years. Ad dollars typically flow toward the largest audiences, so until someone challenges Google and YouTube for internet supremacy, the stock seems poised for long-term success.
2. Apple
Electronic device maker Apple (NASDAQ: AAPL) dominates the smartphone market with the iPhone, which owns roughly 55% of the market in the United States. Phones have become the technology hub for everyday life, which resonates with young consumers. According to a survey by Business Insider, Apple is the top brand among Millennials. Apple's a massive company; it did $394 billion in revenue over the past year, and is also a cash cow, generating $111 billion in cash profits, or 28% of its revenue.
Motley Fool's internal research uncovered that the technology and financial sectors are popular among young investors, and Apple hits the mark there. Think of the nearly 2 billion active iOS devices worldwide as a distribution network. Apple makes about a quarter of its revenue by selling subscription services to device users. The company's various services include Apple Pay, which is steadily growing its share of digital wallets worldwide, with 507 million users. It's a potential growth opportunity that could become an even bigger deal.
AAPL Revenue (TTM) data by YCharts
Apple has held up better than most stocks in the bear market, down just 19% from its high. You can't predict the share price in the short term, but analysts believe Apple's EPS will grow by 12% annually over the next three to five years. A stock's share price eventually tends to follow the business performance over time, so Apple could still have a lot to give investors over the coming years.
3. Amazon
Young consumers have grown up in the age of e-commerce, and Amazon (NASDAQ: AMZN) is the undisputed king in the United States with a roughly 50% share of e-commerce business. Jeff Bezos spent the past 28 years building the company that now virtually everyone knows, whether they watch football on Amazon Prime or see the company's famous logo on its many trucks on the roads. That could play a key role in why Gen Z and Millennials love the brand; both generations lean heavily on investing in companies they know.
Amazon's one of the world's largest companies, and made $502 billion in revenue over the past year. You can see below that cash profits were negative $26 billion over the past year due to inflation, which raised the company's costs. However, Amazon has $58 billion in cash on its balance sheet, so investors shouldn't panic about its inflation-driven hiccup.
Amazon has also built the world's leading public cloud platform, Amazon Web Services (AWS). This business segment is very profitable -- Amazon's operating income in the third quarter of 2022 all came from AWS. It's still just 15% of Amazon's revenue, which could make it even more critical as AWS grows moving forward.
AMZN Revenue (TTM) data by YCharts
Inflation headaches have caused Wall Street to sour on Amazon, which has fallen 47% from its peak. However, Amazon's dominance in high-growth industries like e-commerce and cloud computing should continue driving growth over time. Analysts are looking for EPS growth averaging 20% annually over the next three to five years. In hindsight, the company's short-term fall could look like a massive opportunity if Amazon can live up to expectations.
10 stocks we like better than Alphabet (C shares)
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Alphabet (C shares) 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
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. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), 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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Apple Electronic device maker Apple (NASDAQ: AAPL) dominates the smartphone market with the iPhone, which owns roughly 55% of the market in the United States. AAPL Revenue (TTM) data by YCharts Apple has held up better than most stocks in the bear market, down just 19% from its high. It might not seem like it today, but the stock market has historically proven resilient, enduring recessions and wars to deliver annual returns averaging 10% over decades.
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Apple Electronic device maker Apple (NASDAQ: AAPL) dominates the smartphone market with the iPhone, which owns roughly 55% of the market in the United States. AAPL Revenue (TTM) data by YCharts Apple has held up better than most stocks in the bear market, down just 19% from its high. Alphabet Technology conglomerate Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) owns the internet search engine Google and the video platform YouTube, the two most-trafficked websites in the world.
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Apple Electronic device maker Apple (NASDAQ: AAPL) dominates the smartphone market with the iPhone, which owns roughly 55% of the market in the United States. AAPL Revenue (TTM) data by YCharts Apple has held up better than most stocks in the bear market, down just 19% from its high. Apple's a massive company; it did $394 billion in revenue over the past year, and is also a cash cow, generating $111 billion in cash profits, or 28% of its revenue.
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Apple Electronic device maker Apple (NASDAQ: AAPL) dominates the smartphone market with the iPhone, which owns roughly 55% of the market in the United States. AAPL Revenue (TTM) data by YCharts Apple has held up better than most stocks in the bear market, down just 19% from its high. Apple's a massive company; it did $394 billion in revenue over the past year, and is also a cash cow, generating $111 billion in cash profits, or 28% of its revenue.
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18424.0
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2022-11-14 00:00:00 UTC
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2 Dividend-Paying Tech Stocks to Buy Right Now
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https://www.nasdaq.com/articles/2-dividend-paying-tech-stocks-to-buy-right-now-3
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nan
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Tech stocks aren't exactly known for their dividends, but there are some companies in the sector that can be great sources of both growth and income. In this video, Fool.com contributors Travis Hoium and Matt Frankel, CFP, discuss two tech stocks in particular that look like great additions to a dividend portfolio right now.
*Stock prices in this video are as of Nov. 4, 2022 at midday. This video was published on Nov. 12, 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
Matthew Frankel, CFP® has positions in Digital Realty Trust. Travis Hoium has positions in Apple. The Motley Fool has positions in and recommends Apple and Digital Realty Trust. 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.
Matthew Frankel 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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Tech stocks aren't exactly known for their dividends, but there are some companies in the sector that can be great sources of both growth and income. In this video, Fool.com contributors Travis Hoium and Matt Frankel, CFP, discuss two tech stocks in particular that look like great additions to a dividend portfolio right now. 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. See the 10 stocks *Stock Advisor returns as of November 7, 2022 Matthew Frankel, CFP® has positions in Digital Realty Trust. The Motley Fool has positions in and recommends Apple and Digital Realty Trust.
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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 Matthew Frankel, CFP® has positions in Digital Realty Trust. 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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In this video, Fool.com contributors Travis Hoium and Matt Frankel, CFP, discuss two tech stocks in particular that look like great additions to a dividend portfolio right now. See the 10 stocks *Stock Advisor returns as of November 7, 2022 Matthew Frankel, CFP® has positions in Digital Realty Trust. The Motley Fool has positions in and recommends Apple and Digital Realty Trust.
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18425.0
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2022-11-14 00:00:00 UTC
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US STOCKS-S&P 500, Nasdaq pare losses as investors digest Fed comments
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-pare-losses-as-investors-digest-fed-comments
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By Ankika Biswas and Amruta Khandekar
Nov 14 (Reuters) - The S&P 500 and the tech-heavy Nasdaq pared losses on Monday as comments from U.S. Federal Reserve Vice Chair Lael Brainard lifted hopes that the Federal Reserve could ease its aggressive stance on interest rate hikes.
Brainard, a voting member of the rate-setting committee this year said that it would be "appropriate soon" for the U.S. central bank to reduce the pace of its aggressive monetary policy tightening.
"That is consistent with what the market's already been telling us," said Randy Frederick, vice president of trading and derivatives at Charles Schwab in Texas, referring to traders pricing in a 50-basis-point rate hike by the Fed in December. FEDWATCH.
"When someone who is a part of the committee who makes that decision reiterates what the market is telling us, that gives people some confidence to potentially go in and buy (stocks)."
The S&P 500 and the Nasdaq had fallen as much as 0.7% and 1.4%, respectively, earlier in the session as hawkish comments from Fed Governor Christopher Waller over the weekend dented sentiment. Waller said on Sunday that smaller hikes should not be seen as Fed "softening" in its commitment to lower inflation.
Comments from both the Fed officials come against the backdrop of a softer-than-expected inflation report last week, which had raised hopes that the Fed could scale back its hefty interest rate hikes and helped drive a euphoric market rally.
The S&P 500 on Friday logged its biggest weekly percentage gain in about five months, while the tech-heavy Nasdaq .IXIC notched its best week since March.
In the week ahead, several other Fed officials are also due to speak while market focus will also be on a slew of economic data for further clues on the outlook for interest rates.
At 12:13 a.m. ET, the S&P 500 .SPX was flat at 3,992.84, and the Nasdaq Composite .IXIC was down 40.55 points, or 0.36%, at 11,282.78.
The Dow Jones Industrial Average .DJI was up 103.10 points, or 0.31%, at 33,850.96, boosted by gains in drugmakers including Johnson & Johnson JNJ.N and Amgen AMGN.O.
Technology and growth names too cut some losses but remained under pressure, with Microsoft Corp MSFT.O, Apple Inc AAPL.Oand Amazon.com Inc AMZN.Odown between 0.4% and 2%.
The New York Times on Monday reported that Amazon.com AMZN.O was planning to lay off about 10,000 people in corporate and technology jobs starting as soon as this week.
Tesla Inc TSLA.O fell 1.0% as Chief Executive Elon Musk said "I have too much work on my plate" when asked about his recent acquisition of Twitter and his leadership of the electric-vehicle maker.
Chinese leader Xi Jinping and U.S. President Joe Biden met on Monday for long-awaited talks that come as relations between their countries are at the lowest in decades, marred by disagreements over a host of issues from Taiwan to trade.
Among other stocks, Biogen Inc BIIB.O and Eli Lilly LLY.N gained 4.6% and 1.9%, respectively, after the failure of Swiss rival Roche's ROG.S Alzheimer's disease drug candidate.
Declining issues outnumbered advancers for a 1.54-to-1 ratio on the NYSE and a 1.25-to-1 ratio on the Nasdaq.
The S&P index recorded 13 new 52-week highs and one new low, while the Nasdaq recorded 43 new highs and 47 new lows.
(Reporting by Shubham Batra, Bansari Mayur Kamdar, Ankika Biswas and Amruta Khandekar in Bengaluru; Editing by Shounak Dasgupta 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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Technology and growth names too cut some losses but remained under pressure, with Microsoft Corp MSFT.O, Apple Inc AAPL.Oand Amazon.com Inc AMZN.Odown between 0.4% and 2%. "That is consistent with what the market's already been telling us," said Randy Frederick, vice president of trading and derivatives at Charles Schwab in Texas, referring to traders pricing in a 50-basis-point rate hike by the Fed in December. In the week ahead, several other Fed officials are also due to speak while market focus will also be on a slew of economic data for further clues on the outlook for interest rates.
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Technology and growth names too cut some losses but remained under pressure, with Microsoft Corp MSFT.O, Apple Inc AAPL.Oand Amazon.com Inc AMZN.Odown between 0.4% and 2%. By Ankika Biswas and Amruta Khandekar Nov 14 (Reuters) - The S&P 500 and the tech-heavy Nasdaq pared losses on Monday as comments from U.S. Federal Reserve Vice Chair Lael Brainard lifted hopes that the Federal Reserve could ease its aggressive stance on interest rate hikes. The S&P index recorded 13 new 52-week highs and one new low, while the Nasdaq recorded 43 new highs and 47 new lows.
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Technology and growth names too cut some losses but remained under pressure, with Microsoft Corp MSFT.O, Apple Inc AAPL.Oand Amazon.com Inc AMZN.Odown between 0.4% and 2%. By Ankika Biswas and Amruta Khandekar Nov 14 (Reuters) - The S&P 500 and the tech-heavy Nasdaq pared losses on Monday as comments from U.S. Federal Reserve Vice Chair Lael Brainard lifted hopes that the Federal Reserve could ease its aggressive stance on interest rate hikes. Comments from both the Fed officials come against the backdrop of a softer-than-expected inflation report last week, which had raised hopes that the Fed could scale back its hefty interest rate hikes and helped drive a euphoric market rally.
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Technology and growth names too cut some losses but remained under pressure, with Microsoft Corp MSFT.O, Apple Inc AAPL.Oand Amazon.com Inc AMZN.Odown between 0.4% and 2%. By Ankika Biswas and Amruta Khandekar Nov 14 (Reuters) - The S&P 500 and the tech-heavy Nasdaq pared losses on Monday as comments from U.S. Federal Reserve Vice Chair Lael Brainard lifted hopes that the Federal Reserve could ease its aggressive stance on interest rate hikes. Waller said on Sunday that smaller hikes should not be seen as Fed "softening" in its commitment to lower inflation.
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18426.0
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2022-11-14 00:00:00 UTC
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'Fortnite' creator fights Apple antitrust ruling at appeal hearing
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AAPL
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https://www.nasdaq.com/articles/fortnite-creator-fights-apple-antitrust-ruling-at-appeal-hearing
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nan
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nan
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By Paresh Dave
SAN FRANCISCO, Nov 14 (Reuters) - Epic Games on Monday argued to a three-judge federal appeals panel to overturn portions of a lower court antitrust ruling that largely favored Apple Inc AAPL.O and its App Store payment business.
The "Fortnite" creator had sued Apple in 2020 alleging that the iPhone maker unlawfully required software developers to pay it commissions of up to 30% on in-app purchases.
After a three-week trial last year, a judge stopped short of dubbing Apple an "illegal monopolist" and found that Epic had failed to prove that the privacy and security benefits of the commissions and related policies outweighed costs to consumers.
On Monday, the U.S. Ninth Circuit Court of Appeals panel quizzed attorneys from Epic, Apple and the U.S. Justice Department about whether the trial judge properly compared those consequences.
Epic acknowledged it had not brought sufficient evidence on some points. Apple reiterated that the developer fees help it fund review of apps to ensure consumers are not exposed to fraudulent, pornographic or privacy-intrusive apps.
Key to the trial judge's ruling was its finding that Apple's contracts with developers to use its App Store did not violate antitrust laws because they were non-negotiable agreements - developers either agreed or could not use the App Store. Epic argues that such standard agreements are still subject to antitrust laws.
Other large technology companies use similar agreements to guard access to their systems. The Department of Justice, which has been investigating Apple and other tech companies, joined the Epic appeal because it said the lower court ruling could "significantly harm antitrust enforcement beyond the specific context of this case."
The lower court also had found that Apple violated its home state of California's unfair competition law and ordered the company to let developers tell users how to make app purchases outside of its proprietary payment system. The appeals panel can reconsider that order.
(Reporting by Paresh Dave in San Francisco; Additional reporting by Stephen Nellis in San Luis Obispo County, California; Editing by Rosalba O'Brien and Stephen Coates)
((Stephen.Nellis@thomsonreuters.com; (415) 344-4934;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Paresh Dave SAN FRANCISCO, Nov 14 (Reuters) - Epic Games on Monday argued to a three-judge federal appeals panel to overturn portions of a lower court antitrust ruling that largely favored Apple Inc AAPL.O and its App Store payment business. After a three-week trial last year, a judge stopped short of dubbing Apple an "illegal monopolist" and found that Epic had failed to prove that the privacy and security benefits of the commissions and related policies outweighed costs to consumers. The lower court also had found that Apple violated its home state of California's unfair competition law and ordered the company to let developers tell users how to make app purchases outside of its proprietary payment system.
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By Paresh Dave SAN FRANCISCO, Nov 14 (Reuters) - Epic Games on Monday argued to a three-judge federal appeals panel to overturn portions of a lower court antitrust ruling that largely favored Apple Inc AAPL.O and its App Store payment business. On Monday, the U.S. Ninth Circuit Court of Appeals panel quizzed attorneys from Epic, Apple and the U.S. Justice Department about whether the trial judge properly compared those consequences. (Reporting by Paresh Dave in San Francisco; Additional reporting by Stephen Nellis in San Luis Obispo County, California; Editing by Rosalba O'Brien and Stephen Coates) ((Stephen.Nellis@thomsonreuters.com; (415) 344-4934;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Paresh Dave SAN FRANCISCO, Nov 14 (Reuters) - Epic Games on Monday argued to a three-judge federal appeals panel to overturn portions of a lower court antitrust ruling that largely favored Apple Inc AAPL.O and its App Store payment business. Key to the trial judge's ruling was its finding that Apple's contracts with developers to use its App Store did not violate antitrust laws because they were non-negotiable agreements - developers either agreed or could not use the App Store. The lower court also had found that Apple violated its home state of California's unfair competition law and ordered the company to let developers tell users how to make app purchases outside of its proprietary payment system.
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By Paresh Dave SAN FRANCISCO, Nov 14 (Reuters) - Epic Games on Monday argued to a three-judge federal appeals panel to overturn portions of a lower court antitrust ruling that largely favored Apple Inc AAPL.O and its App Store payment business. Key to the trial judge's ruling was its finding that Apple's contracts with developers to use its App Store did not violate antitrust laws because they were non-negotiable agreements - developers either agreed or could not use the App Store. The lower court also had found that Apple violated its home state of California's unfair competition law and ordered the company to let developers tell users how to make app purchases outside of its proprietary payment system.
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18427.0
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2022-11-14 00:00:00 UTC
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Buffett's Berkshire discloses big Taiwan Semi stake
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AAPL
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https://www.nasdaq.com/articles/buffetts-berkshire-discloses-big-taiwan-semi-stake-0
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nan
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nan
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By Jonathan Stempel
Nov 14 (Reuters) - Berkshire Hathaway Inc BRKa.N said it bought more than $4.1 billion of stock in Taiwan Semiconductor Manufacturing Co 2330.TWTSM.N, a rare significant foray into the technology sector by billionaire Warren Buffett's conglomerate.
In a Monday regulatory filing describing its U.S.-listed equity investments as of Sept. 30, Berkshire said it owned about 60.1 million American depositary shares of the world's largest contract chipmaker.
Berkshire also disclosed new stakes of $297 million in building materials company Louisiana-Pacific Corp LPX.N and $13 million in Jefferies Financial Group Inc JEF.N. It exited an investment in Store Capital Corp STOR.N, a real estate company that agreed in September to be taken private.
The filing did not specify whether Buffett or his portfolio managers Todd Combs and Ted Weschler made specific purchases and sales. Investors often try to piggy back on what Berkshire buys. Larger investments are normally Buffett's.
While Berkshire does not normally make big technology bets, it often prefers companies it perceives to have competitive advantages, often through their size.
Taiwan Semi posted an 80% jump in third-quarter profit, helped by demand from customers such as iPhone maker Apple Inc AAPL.O, by far the largest investment in Berkshire's $306.2 billion equity portfolio.
"I suspect Berkshire has a belief that the world cannot do without the products manufactured by Taiwan Semi," said Tom Russo, a partner at Gardner, Russo & Quinn in Lancaster, Pennsylvania, which owns Berkshire shares.
"Only a small number of companies that can amass the capital to deliver semiconductors, which are increasingly central to people's lives," he added.
Berkshire has had mixed success in technology.
Its more than six-year wager during the last decade in IBM Corp IBM.N did not pan out, but Berkshire is sitting on huge unrealized gains on its $126.5 billion stake in Apple, which Buffett views more as a consumer products company.
Berkshire disclosed the Taiwan Semi stake about 2-1/2 months after it began reducing a decade-old, multi-billion dollar stake in BYD Co 1211.HK002594.SZ, China's largest electric car company.
In the third quarter, Berkshire added to its stakes in Chevron Corp CVX.N, Occidental Petroleum Corp OXY.N, Celanese Corp CE.N, Paramount Global PARA.O and RH RH.N.
It also sold shares of Activision Blizzard Inc ATVI.O, Bank of New York Mellon Corp BK.N, General Motors Co GM.N, Kroger Co KR.N and US Bancorp USB.N.
Buffett, 92, has run Berkshire since 1965. The Omaha, Nebraska-based company also owns dozens of businesses such as the BNSF railroad, the Geico auto insurer, several energy and industrial companies, Fruit of the Loom and Dairy Queen.
(Reporting by Jonathan Stempel in New York; Editing by Leslie Adler and David Gregorio)
((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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Taiwan Semi posted an 80% jump in third-quarter profit, helped by demand from customers such as iPhone maker Apple Inc AAPL.O, by far the largest investment in Berkshire's $306.2 billion equity portfolio. By Jonathan Stempel Nov 14 (Reuters) - Berkshire Hathaway Inc BRKa.N said it bought more than $4.1 billion of stock in Taiwan Semiconductor Manufacturing Co 2330.TWTSM.N, a rare significant foray into the technology sector by billionaire Warren Buffett's conglomerate. Its more than six-year wager during the last decade in IBM Corp IBM.N did not pan out, but Berkshire is sitting on huge unrealized gains on its $126.5 billion stake in Apple, which Buffett views more as a consumer products company.
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Taiwan Semi posted an 80% jump in third-quarter profit, helped by demand from customers such as iPhone maker Apple Inc AAPL.O, by far the largest investment in Berkshire's $306.2 billion equity portfolio. In a Monday regulatory filing describing its U.S.-listed equity investments as of Sept. 30, Berkshire said it owned about 60.1 million American depositary shares of the world's largest contract chipmaker. Berkshire disclosed the Taiwan Semi stake about 2-1/2 months after it began reducing a decade-old, multi-billion dollar stake in BYD Co 1211.HK002594.SZ, China's largest electric car company.
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Taiwan Semi posted an 80% jump in third-quarter profit, helped by demand from customers such as iPhone maker Apple Inc AAPL.O, by far the largest investment in Berkshire's $306.2 billion equity portfolio. "I suspect Berkshire has a belief that the world cannot do without the products manufactured by Taiwan Semi," said Tom Russo, a partner at Gardner, Russo & Quinn in Lancaster, Pennsylvania, which owns Berkshire shares. Its more than six-year wager during the last decade in IBM Corp IBM.N did not pan out, but Berkshire is sitting on huge unrealized gains on its $126.5 billion stake in Apple, which Buffett views more as a consumer products company.
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Taiwan Semi posted an 80% jump in third-quarter profit, helped by demand from customers such as iPhone maker Apple Inc AAPL.O, by far the largest investment in Berkshire's $306.2 billion equity portfolio. By Jonathan Stempel Nov 14 (Reuters) - Berkshire Hathaway Inc BRKa.N said it bought more than $4.1 billion of stock in Taiwan Semiconductor Manufacturing Co 2330.TWTSM.N, a rare significant foray into the technology sector by billionaire Warren Buffett's conglomerate. In a Monday regulatory filing describing its U.S.-listed equity investments as of Sept. 30, Berkshire said it owned about 60.1 million American depositary shares of the world's largest contract chipmaker.
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18428.0
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2022-11-14 00:00:00 UTC
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Warren Buffett Just Bought Shares of Apple's Key Chipmaker -- and 7 Other Stocks
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AAPL
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https://www.nasdaq.com/articles/warren-buffett-just-bought-shares-of-apples-key-chipmaker-and-7-other-stocks
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nan
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nan
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Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), the huge conglomerate run by legendary investor Warren Buffett, released its always anticipated 13F filing on Monday afternoon, detailing the company's portfolio moves from the third quarter of the year. We already knew from Berkshire's latest earnings report that it had purchased close to $9 billion in stock and sold $5.3 billion worth in the third quarter. But the 13F, which is required for large institutional investment managers, removes the mystery. Let's take a look.
A key part of Apple's business
Arguably the most notable move by Buffett and Berkshire in the quarter was their investment in the world's largest chipmaker, Taiwan Semiconductor Manufacturing Company (NYSE: TSM), also known as TSMC. Berkshire purchased roughly 60.06 million shares in the company, amounting to $4.1 billion at the time of the purchase. That equates to a roughly 1.2% stake in the company.
TSMC is a powerhouse in its own right, but it's also a key supplier for Apple. The consumer tech giant was TSMC's largest customer in 2021 and made up a quarter of the company's revenue last year. This year, that number is expected to be even higher, even as TSMC anticipates more room to grow in other sectors such as the auto market.
Apple is also Berkshire's largest stock holding by far, making up roughly 40% of an equities portfolio worth well over $300 billion. It's quite common for Berkshire to find stocks through existing companies it operates or owns stock in. For example, the company credits its investment in the cloud storage company Snowflake to the fact that its insurance brand Geico had been one of Snowflake's clients for some time. We know Buffett and Berkshire really love Apple, so this investment makes perfect sense.
Seven other buys and six sells
In addition to TSMC, Berkshire also purchased shares of seven other companies, two of which were new additions to the portfolio.
The first is Louisiana-Pacific Corp. (NYSE: LPX), a materials supplier for the homebuilding industry. The stock rose more than 10% in after-hours trading. Many homebuilders have struggled to source materials because of supply-chain issues and are also dealing with higher construction expenses. Buying about 5.8 million shares for a stake of more than $300 million may be a way to invest in the industry's growth.
Berkshire also interestingly purchased a very small stake -- $12.8 million -- in the investment bank Jefferies Financial Group (NYSE: JEF), which rose 5% in after-hours trading. Investment banks have struggled this year due to a slowdown in equity and debt underwriting. But Jefferies believes it has gained market share recently and trades at a pretty cheap valuation right now, right around tangible book value.
Other buys in the quarter consisted of existing positions. Unsurprisingly, Berkshire continued to keep betting on U.S. oil through its purchases of Occidental Petroleum (NYSE: OXY) and Chevron (NYSE: CVX) in the quarter. Berkshire upped its stake in Occidental by roughly 22.6%.
Berkshire also significantly increased its stake in the large media company Paramount Global (NASDAQ: PARA) by more than 16% in the quarter. Finally, Berkshire increased its holdings in the home furnishing company RH (NYSE: RH) and chemical company Celanese (NYSE: CE) by roughly 8.8% and 6%, respectively.
In addition to the buying, Berkshire sold six stocks in the quarter, including its entire position in the real estate investment trust STORE Capital (NYSE: STOR), which should come as no surprise considering the company is being acquired. Berkshire also significantly trimmed its position in longtime holding U.S. Bancorp (NYSE: USB) and has actually continued to cut that position after the third quarter, according to recent filings.
Other more sizable cuts Berkshire made in the quarter are to Bank of New York Mellon (NYSE: BK), which it trimmed by about 14%, and the video game company Activision Blizzard (NASDAQ: ATVI), about 12% of its existing position. Berkshire made minor trims to holdings Kroger (NYSE: KR) and General Motors (NYSE: GM).
The upshot of all the activity
Berkshire definitely made some moves in the third quarter, but less so than it would appear. The biggest move was acquiring a stake in TSMC and selling a big position in U.S. Bancorp. Selling STORE Capital made sense, and buying more of the oil stocks has been an ongoing theme this year.
While Berkshire did make some notable cuts, Buffett and the rest of the company could simply be right-sizing the portfolio to prepare for a tougher economy in 2023. However, it will be worth monitoring if Berkshire eventually moves to fully exit any of the holdings it sold, like U.S. Bancorp, which would certainly be possible.
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Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Berkshire Hathaway (B shares), Jefferies Financial Group Inc., STORE Capital, Snowflake Inc., and Taiwan Semiconductor Manufacturing. The Motley Fool recommends RH and 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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A key part of Apple's business Arguably the most notable move by Buffett and Berkshire in the quarter was their investment in the world's largest chipmaker, Taiwan Semiconductor Manufacturing Company (NYSE: TSM), also known as TSMC. In addition to the buying, Berkshire sold six stocks in the quarter, including its entire position in the real estate investment trust STORE Capital (NYSE: STOR), which should come as no surprise considering the company is being acquired. Other more sizable cuts Berkshire made in the quarter are to Bank of New York Mellon (NYSE: BK), which it trimmed by about 14%, and the video game company Activision Blizzard (NASDAQ: ATVI), about 12% of its existing position.
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Berkshire also interestingly purchased a very small stake -- $12.8 million -- in the investment bank Jefferies Financial Group (NYSE: JEF), which rose 5% in after-hours trading. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Berkshire Hathaway (B shares), Jefferies Financial Group Inc., STORE Capital, Snowflake Inc., and Taiwan Semiconductor Manufacturing. The Motley Fool recommends RH and 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.
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Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), the huge conglomerate run by legendary investor Warren Buffett, released its always anticipated 13F filing on Monday afternoon, detailing the company's portfolio moves from the third quarter of the year. In addition to the buying, Berkshire sold six stocks in the quarter, including its entire position in the real estate investment trust STORE Capital (NYSE: STOR), which should come as no surprise considering the company is being acquired. The Motley Fool recommends RH and 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.
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Apple is also Berkshire's largest stock holding by far, making up roughly 40% of an equities portfolio worth well over $300 billion. That's right -- they think these 10 stocks are even better buys. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Berkshire Hathaway (B shares), Jefferies Financial Group Inc., STORE Capital, Snowflake Inc., and Taiwan Semiconductor Manufacturing.
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18429.0
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2022-11-14 00:00:00 UTC
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Buffett's Berkshire discloses big Taiwan Semi stake
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AAPL
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https://www.nasdaq.com/articles/buffetts-berkshire-discloses-big-taiwan-semi-stake
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nan
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nan
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Nov 14 (Reuters) - Berkshire Hathaway Inc BRKa.N said it bought more than $4.1 billion of stock in Taiwan Semiconductor Manufacturing Co 2330.TW, a rare significant foray into the technology sector by billionaire Warren Buffett's conglomerate.
In a Monday regulatory filing describing its U.S.-listed equity investments as of Sept. 30, Berkshire said it owned about 60.1 million of Taiwan Semiconductor's American depositary shares.
Berkshire also disclosed new, smaller stakes in building materials company Louisiana-Pacific Corp LPX.N and the financial services company Jefferies Financial Group Inc JEF.N.
(Reporting by Jonathan Stempel in New York; Editing by Leslie Adler)
((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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Nov 14 (Reuters) - Berkshire Hathaway Inc BRKa.N said it bought more than $4.1 billion of stock in Taiwan Semiconductor Manufacturing Co 2330.TW, a rare significant foray into the technology sector by billionaire Warren Buffett's conglomerate. In a Monday regulatory filing describing its U.S.-listed equity investments as of Sept. 30, Berkshire said it owned about 60.1 million of Taiwan Semiconductor's American depositary shares. (Reporting by Jonathan Stempel in New York; Editing by Leslie Adler) ((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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Nov 14 (Reuters) - Berkshire Hathaway Inc BRKa.N said it bought more than $4.1 billion of stock in Taiwan Semiconductor Manufacturing Co 2330.TW, a rare significant foray into the technology sector by billionaire Warren Buffett's conglomerate. In a Monday regulatory filing describing its U.S.-listed equity investments as of Sept. 30, Berkshire said it owned about 60.1 million of Taiwan Semiconductor's American depositary shares. Berkshire also disclosed new, smaller stakes in building materials company Louisiana-Pacific Corp LPX.N and the financial services company Jefferies Financial Group Inc JEF.N.
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Nov 14 (Reuters) - Berkshire Hathaway Inc BRKa.N said it bought more than $4.1 billion of stock in Taiwan Semiconductor Manufacturing Co 2330.TW, a rare significant foray into the technology sector by billionaire Warren Buffett's conglomerate. Berkshire also disclosed new, smaller stakes in building materials company Louisiana-Pacific Corp LPX.N and the financial services company Jefferies Financial Group Inc JEF.N. (Reporting by Jonathan Stempel in New York; Editing by Leslie Adler) ((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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Nov 14 (Reuters) - Berkshire Hathaway Inc BRKa.N said it bought more than $4.1 billion of stock in Taiwan Semiconductor Manufacturing Co 2330.TW, a rare significant foray into the technology sector by billionaire Warren Buffett's conglomerate. In a Monday regulatory filing describing its U.S.-listed equity investments as of Sept. 30, Berkshire said it owned about 60.1 million of Taiwan Semiconductor's American depositary shares. Berkshire also disclosed new, smaller stakes in building materials company Louisiana-Pacific Corp LPX.N and the financial services company Jefferies Financial Group Inc JEF.N.
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18430.0
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2022-11-14 00:00:00 UTC
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Noteworthy Monday Option Activity: AAPL, HRI, PENN
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AAPL
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https://www.nasdaq.com/articles/noteworthy-monday-option-activity%3A-aapl-hri-penn
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nan
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 777,025 contracts have traded so far, representing approximately 77.7 million underlying shares. That amounts to about 82.6% of AAPL's average daily trading volume over the past month of 94.1 million shares. Particularly high volume was seen for the $150 strike call option expiring November 18, 2022, with 53,546 contracts trading so far today, representing approximately 5.4 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $150 strike highlighted in orange:
Herc Holdings Inc (Symbol: HRI) options are showing a volume of 1,843 contracts thus far today. That number of contracts represents approximately 184,300 underlying shares, working out to a sizeable 72.6% of HRI's average daily trading volume over the past month, of 253,975 shares. Especially high volume was seen for the $45 strike put option expiring December 16, 2022, with 1,672 contracts trading so far today, representing approximately 167,200 underlying shares of HRI. Below is a chart showing HRI's trailing twelve month trading history, with the $45 strike highlighted in orange:
And PENN Entertainment Inc (Symbol: PENN) options are showing a volume of 21,099 contracts thus far today. That number of contracts represents approximately 2.1 million underlying shares, working out to a sizeable 69.7% of PENN's average daily trading volume over the past month, of 3.0 million shares. Particularly high volume was seen for the $39 strike call option expiring November 18, 2022, with 6,984 contracts trading so far today, representing approximately 698,400 underlying shares of PENN. Below is a chart showing PENN's trailing twelve month trading history, with the $39 strike highlighted in orange:
For the various different available expirations for AAPL options, HRI options, or PENN options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
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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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Particularly high volume was seen for the $150 strike call option expiring November 18, 2022, with 53,546 contracts trading so far today, representing approximately 5.4 million underlying shares of AAPL. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 777,025 contracts have traded so far, representing approximately 77.7 million underlying shares. That amounts to about 82.6% of AAPL's average daily trading volume over the past month of 94.1 million shares.
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Below is a chart showing AAPL's trailing twelve month trading history, with the $150 strike highlighted in orange: Herc Holdings Inc (Symbol: HRI) options are showing a volume of 1,843 contracts thus far today. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 777,025 contracts have traded so far, representing approximately 77.7 million underlying shares. That amounts to about 82.6% of AAPL's average daily trading volume over the past month of 94.1 million shares.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 777,025 contracts have traded so far, representing approximately 77.7 million underlying shares. Particularly high volume was seen for the $150 strike call option expiring November 18, 2022, with 53,546 contracts trading so far today, representing approximately 5.4 million underlying shares of AAPL. Below is a chart showing PENN's trailing twelve month trading history, with the $39 strike highlighted in orange: For the various different available expirations for AAPL options, HRI options, or PENN options, visit StockOptionsChannel.com.
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Particularly high volume was seen for the $150 strike call option expiring November 18, 2022, with 53,546 contracts trading so far today, representing approximately 5.4 million underlying shares of AAPL. Below is a chart showing PENN's trailing twelve month trading history, with the $39 strike highlighted in orange: For the various different available expirations for AAPL options, HRI options, or PENN options, visit StockOptionsChannel.com. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 777,025 contracts have traded so far, representing approximately 77.7 million underlying shares.
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18431.0
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2022-11-14 00:00:00 UTC
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'Fortnite' creator to fight Apple antitrust ruling at appeal hearing
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AAPL
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https://www.nasdaq.com/articles/fortnite-creator-to-fight-apple-antitrust-ruling-at-appeal-hearing
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nan
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nan
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By Paresh Dave and Stephen Nellis
Nov 14 (Reuters) - Epic Games on Monday will try to overturn portions of a court ruling in an antitrust trial last year that largely favored Apple Inc AAPL.O.
The "Fortnite" creator sued Apple in 2020 alleging that the iPhone maker's App Store rules, under which software developers must pay commissions of up to 30% on in-app purchases, violated U.S. antitrust law.
After a three-week trial last year, a judge largely sided with Apple, stopping short of dubbing the company an "illegal monopolist" and upholding its right to charge the commissions.
But the judge did find that Apple violated its home state of California's unfair competition law and ordered the company to let developers tell users how to make app purchases outside of its proprietary payment system.
Apple appealed the order, and Epic appealed the finding that Apple did not violate antitrust laws. The two sides will argue their case before the U.S. Ninth Circuit Court of Appeals in San Francisco on Monday, with representatives from the U.S. Department of Justice and the state of California also making appearances to describe relevant laws.
According to its court filings, Epic plans to argue that the trial judge did not properly interpret U.S. antitrust laws. In particular, the trial judge ruled that Apple's contracts with developers to use its App Store did not violate antitrust laws because they were non-negotiable agreements - developers either agreed or could not use the App Store. Epic argues that such standard agreements are still subject to antitrust laws.
Other large technology companies use similar agreements to guard access to their systems. The Department of Justice, which has been investigating Apple and other tech companies, asked to join the Epic appeal because it said the lower court ruling could "significantly harm antitrust enforcement beyond the specific context of this case."
(Reporting by Paresh Dave in Oakland, California and Stephen Nellis in San Luis Obispo County, California; Editing by Rosalba O'Brien)
((Stephen.Nellis@thomsonreuters.com; (415) 344-4934;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Paresh Dave and Stephen Nellis Nov 14 (Reuters) - Epic Games on Monday will try to overturn portions of a court ruling in an antitrust trial last year that largely favored Apple Inc AAPL.O. But the judge did find that Apple violated its home state of California's unfair competition law and ordered the company to let developers tell users how to make app purchases outside of its proprietary payment system. The two sides will argue their case before the U.S. Ninth Circuit Court of Appeals in San Francisco on Monday, with representatives from the U.S. Department of Justice and the state of California also making appearances to describe relevant laws.
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By Paresh Dave and Stephen Nellis Nov 14 (Reuters) - Epic Games on Monday will try to overturn portions of a court ruling in an antitrust trial last year that largely favored Apple Inc AAPL.O. But the judge did find that Apple violated its home state of California's unfair competition law and ordered the company to let developers tell users how to make app purchases outside of its proprietary payment system. Apple appealed the order, and Epic appealed the finding that Apple did not violate antitrust laws.
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By Paresh Dave and Stephen Nellis Nov 14 (Reuters) - Epic Games on Monday will try to overturn portions of a court ruling in an antitrust trial last year that largely favored Apple Inc AAPL.O. But the judge did find that Apple violated its home state of California's unfair competition law and ordered the company to let developers tell users how to make app purchases outside of its proprietary payment system. Apple appealed the order, and Epic appealed the finding that Apple did not violate antitrust laws.
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By Paresh Dave and Stephen Nellis Nov 14 (Reuters) - Epic Games on Monday will try to overturn portions of a court ruling in an antitrust trial last year that largely favored Apple Inc AAPL.O. But the judge did find that Apple violated its home state of California's unfair competition law and ordered the company to let developers tell users how to make app purchases outside of its proprietary payment system. Apple appealed the order, and Epic appealed the finding that Apple did not violate antitrust laws.
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18432.0
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2022-11-14 00:00:00 UTC
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After Hours Most Active for Nov 14, 2022 : AMZN, META, AAPL, QQQ, NIO, DIS, BEKE, ADCT, INTC, ATRA, NU, SU
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-nov-14-2022-%3A-amzn-meta-aapl-qqq-nio-dis-beke-adct-intc-atra
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nan
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The NASDAQ 100 After Hours Indicator is up 14.06 to 11,715. The total After hours volume is currently 115,689,022 shares traded.
The following are the most active stocks for the after hours session:
Amazon.com, Inc. (AMZN) is unchanged at $98.49, with 6,737,221 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Meta Platforms, Inc. (META) is +0.0534 at $114.27, with 5,153,177 shares traded. As reported by Zacks, the current mean recommendation for META is in the "buy range".
Apple Inc. (AAPL) is +0.19 at $148.47, with 4,819,416 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 $1.51. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +0.33 at $285.77, with 4,326,611 shares traded. This represents a 12.39% increase from its 52 Week Low.
NIO Inc. (NIO) is +0.04 at $11.21, with 3,326,326 shares traded. NIO's current last sale is 41.67% of the target price of $26.9.
Walt Disney Company (The) (DIS) is unchanged at $94.28, with 3,318,342 shares traded. As reported by Zacks, the current mean recommendation for DIS is in the "buy range".
KE Holdings Inc (BEKE) is -0.04 at $13.96, with 3,120,143 shares traded. As reported by Zacks, the current mean recommendation for BEKE is in the "buy range".
ADC Therapeutics SA (ADCT) is unchanged at $4.16, with 2,864,116 shares traded. As reported by Zacks, the current mean recommendation for ADCT is in the "buy range".
Intel Corporation (INTC) is +0.09 at $30.44, with 2,655,936 shares traded. INTC's current last sale is 101.47% of the target price of $30.
Atara Biotherapeutics, Inc. (ATRA) is unchanged at $5.18, with 2,320,742 shares traded. As reported in the last short interest update the days to cover for ATRA is 9.656569; this calculation is based on the average trading volume of the stock.
Nu Holdings Ltd. (NU) is +0.49 at $4.84, with 2,258,993 shares traded. As reported by Zacks, the current mean recommendation for NU is in the "buy range".
Suncor Energy Inc. (SU) is unchanged at $36.20, with 2,194,141 shares traded. SU's current last sale is 88.63% of the target price of $40.845.
The views and 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 +0.19 at $148.47, with 4,819,416 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 +0.19 at $148.47, with 4,819,416 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 115,689,022 shares traded.
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Apple Inc. (AAPL) is +0.19 at $148.47, with 4,819,416 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 META is in the "buy range".
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is +0.19 at $148.47, with 4,819,416 shares traded. As reported by Zacks, the current mean recommendation for META is in the "buy range".
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18433.0
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2022-11-14 00:00:00 UTC
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US STOCKS-Nasdaq leads Wall Street lower after hawkish Fed comments
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-leads-wall-street-lower-after-hawkish-fed-comments
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nan
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nan
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By Shubham Batra and Ankika Biswas
Nov 14 (Reuters) - Wall Street's main indexes slipped on Monday, with the tech-heavy Nasdaq down about 1%, as hawkish comments from a U.S. Federal Reserve official tempered hopes of the central bank toning down its aggressive monetary policy approach.
Federal Reserve Governor Christopher Waller, a voting member of the rate-setting committee this year, said on Sunday that markets should now pay attention to the "endpoint" of rate increases, not the pace of each move, and that the endpoint was likely "a ways off".
The comments follow a softer-than-expected inflation report last week, which had buoyed hopes that the Fed could scale back its hefty interest rate hikes and helped drive a euphoric market rally.
The S&P 500 in the previous session logged its biggest weekly percentage gain in about five months, while the tech-heavy Nasdaq .IXIC notched its best week since March.
In the week ahead, focus will be on a slew of economic data including retail sales numbers on Wednesday as well as speeches by several Fed officials for further clues on the outlook for interest rates.
"The market is expecting the Fed to continue its hawkish rhetoric on rates. That could all change once we get more confirmation on inflation in December," said Peter Cardillo, chief market economist at Spartan Capital Securities.
Traders now expect the Fed to hike interest rates in December by a half point, and expect terminal rate in the range of 4.75%-5.0% next year. FEDWATCH
At 9:42 a.m. ET, the S&P 500 .SPX was down 17.25 points, or 0.43%, at 3,975.68, and the Nasdaq Composite .IXIC was down 115.13 points, or 1.02%, at 11,208.20.
The Dow Jones Industrial Average .DJI was down 7.84 points, or 0.02%, at 33,740.02. Gains in drugmakers including Johnson & Johnson JNJ.N and Amgen AMGN.O limited declines on the blue-chip index.
As U.S. Treasury yields edged up, technology and growth names such as Microsoft Corp MSFT.O, Apple Inc AAPL.Oand Amazon.com Inc AMZN.O slipped between 1% and 3%. US/
The S&P 500 information technology sector .SPLRCT was down 1.2% and among the leading sectoral decliners on the benchmark index.
Tesla Inc TSLA.O fell 3.4% as Chief Executive Elon Musk said "I have too much work on my plate" when asked about his recent acquisition of Twitter and his leadership of the electric-vehicle maker.
Chinese leader Xi Jinping and U.S. President Joe Biden met on Monday for long-awaited talks that come as relations between their countries are at their lowest in decades, marred by disagreements over a host of issues from Taiwan to trade.
Among other stocks, Biogen Inc BIIB.O and Eli Lilly LLY.N gained 3.4% and 1.4%, respectively, after the failure of Swiss rival Roche's ROG.S Alzheimer's disease drug candidate.
Theater operator AMC Entertainment AMC.O jumped 6.5% as Marvel's latest film "Black Panther: Wakanda Forever" grossed $330 million globally in its opening weekend, while Hasbro Inc HAS.O fell 7.4% after BofA Global Research downgraded the toymaker's stock.
Declining issues outnumbered advancers for a 2.08-to-1 ratio on the NYSE and a 1.65-to-1 ratio on the Nasdaq.
The S&P index recorded four new 52-week highs and no new low, while the Nasdaq recorded 23 new highs and 21 new lows.
(Reporting by Shubham Batra, Bansari Mayur Kamdar, Ankika Biswas and Amruta Khandekar in Bengaluru; Editing by Shounak Dasgupta)
((Shubham.Batra@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As U.S. Treasury yields edged up, technology and growth names such as Microsoft Corp MSFT.O, Apple Inc AAPL.Oand Amazon.com Inc AMZN.O slipped between 1% and 3%. By Shubham Batra and Ankika Biswas Nov 14 (Reuters) - Wall Street's main indexes slipped on Monday, with the tech-heavy Nasdaq down about 1%, as hawkish comments from a U.S. Federal Reserve official tempered hopes of the central bank toning down its aggressive monetary policy approach. The comments follow a softer-than-expected inflation report last week, which had buoyed hopes that the Fed could scale back its hefty interest rate hikes and helped drive a euphoric market rally.
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As U.S. Treasury yields edged up, technology and growth names such as Microsoft Corp MSFT.O, Apple Inc AAPL.Oand Amazon.com Inc AMZN.O slipped between 1% and 3%. By Shubham Batra and Ankika Biswas Nov 14 (Reuters) - Wall Street's main indexes slipped on Monday, with the tech-heavy Nasdaq down about 1%, as hawkish comments from a U.S. Federal Reserve official tempered hopes of the central bank toning down its aggressive monetary policy approach. Traders now expect the Fed to hike interest rates in December by a half point, and expect terminal rate in the range of 4.75%-5.0% next year.
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As U.S. Treasury yields edged up, technology and growth names such as Microsoft Corp MSFT.O, Apple Inc AAPL.Oand Amazon.com Inc AMZN.O slipped between 1% and 3%. By Shubham Batra and Ankika Biswas Nov 14 (Reuters) - Wall Street's main indexes slipped on Monday, with the tech-heavy Nasdaq down about 1%, as hawkish comments from a U.S. Federal Reserve official tempered hopes of the central bank toning down its aggressive monetary policy approach. The comments follow a softer-than-expected inflation report last week, which had buoyed hopes that the Fed could scale back its hefty interest rate hikes and helped drive a euphoric market rally.
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As U.S. Treasury yields edged up, technology and growth names such as Microsoft Corp MSFT.O, Apple Inc AAPL.Oand Amazon.com Inc AMZN.O slipped between 1% and 3%. The comments follow a softer-than-expected inflation report last week, which had buoyed hopes that the Fed could scale back its hefty interest rate hikes and helped drive a euphoric market rally. Traders now expect the Fed to hike interest rates in December by a half point, and expect terminal rate in the range of 4.75%-5.0% next year.
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18434.0
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2022-11-14 00:00:00 UTC
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3 Warren Buffett Stocks That Are Screaming Buys in November
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AAPL
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https://www.nasdaq.com/articles/3-warren-buffett-stocks-that-are-screaming-buys-in-november-0
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nan
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nan
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CEO Warren Buffett has attributed much of Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) incredible success through the years to an investment approach that revolves around being fearful when others are greedy -- and greedy when others are fearful. With better-than-expected inflation data for October recently published, stocks are enjoying an uptick in bullish momentum. But it's fears spurred by macroeconomic and geopolitical risk factors that have played the biggest role in shaping the market this year.
Berkshire's recent third-quarter results show that the investment conglomerate was a net purchaser of stocks in the period, suggesting that the Oracle of Omaha sees opportunity in the market despite current risk factors and volatility. With that in mind, read on for a look at three Buffett-backed stocks that are worth investing in this month.
Image source: The Motley Fool.
1. Amazon
Macroeconomic pressures, rising costs, and slowing e-commerce growth had already been pressuring Amazon (NASDAQ: AMZN) stock this year, and the company's third-quarter results highlighted additional risk factors that dampened investor confidence. The stock trades down roughly 17% since the publication of the Q3 results, and its share price is now down 48% year to date and 53% from the high that it reached last year.
The roughly 27.5% year-over-year sales increase for the Amazon Web Services (AWS) segment in the third quarter was hardly a terrible performance, but it did come in below the market's expectations, and midpoint guidance calling for overall company sales to grow just 8% this quarter suggests that the cloud infrastructure unit's growth deceleration will continue in the current quarter. With pandemic-driven tailwinds for the e-commerce business having largely evaporated and expenses remaining relatively high even after cost-cutting initiatives, it's not shocking that investors flinched at Amazon's Q3 performance.
On the other hand, Amazon remains one of the best companies in the world, and it also stands out as a great stock at current prices. Guidance for the current quarter suggests that AWS isn't immune to market pressures, but the cloud business still looks poised for strong growth over the long term, and its dominant e-commerce unit still has plenty of room for sales and margin expansion. Overall, Amazon's growth engine remains in good shape, and long-term investors who take advantage of recent sell-offs stand a good chance of recording strong returns from the stock at current prices.
2. Activision Blizzard
Just weeks before Microsoft announced it aimed to make Activision Blizzard (NASDAQ: ATVI) its largest-ever acquisition, Berkshire Hathaway purchased roughly $1 billion worth of the gaming publisher's stock. The investment conglomerate has continued to make big purchases following the announcement of the deal, and Berkshire owned roughly 9.5% of Activision Blizzard's outstanding shares as of its last update.
Activision Blizzard is set to be acquired by Microsoft in a $68.7 billion, all-cash deal valuing the video game publisher at $95 per share. With management expecting the buyout to close before the second half of next year and Activision's current stock price of roughly $73 per share, the stock has approximately 30% upside if the deal is closed. The big gulf between today's valuation and the expected buyout price comes down to concerns that the acquisition will be blocked on antitrust grounds, but the stock presents a worthwhile risk-reward dynamic in today's volatile market.
With a market capitalization of roughly $1.8 trillion, there's no doubt Microsoft is one of the largest and most influential companies in the world, and the acquisition of Activision Blizzard would certainly give the tech giant an even stronger position in the gaming industry. But its rival Sony actually leads the market in their shared corner of the console-gaming space, and Microsoft also faces gaming and overall product ecosystem competition from tech giants including Tencent, Apple, Amazon, Meta Platforms, and Alphabet.
While Microsoft may need to make some concessions in order for its big acquisition to pass regulatory muster in the U.S., Europe, and other markets, Buffett's big push into the stock reflects an expectation that the deal will close. I agree with that position and think Activision Blizzard shares look like a worthwhile buy.
3. Berkshire Hathaway
The strength of Berkshire's wholly owned subsidiaries, value-oriented approach to portfolio composition, and rock-solid balance sheet have all helped the company hold up very well compared to the broader market amid this year's pressures. But while the stock is handily outperforming the benchmark S&P 500 index, it still trades down roughly 16% from the high that it reached earlier this year and offers an attractive entry point for long-term investors.
^SPXTR data by YCharts
Buffett and the management team at Berkshire made the smart move of keeping plenty of cash on the sidelines heading into this year. While the company has been ramping up its stock purchases, it ended last quarter with roughly $109 billion in cash. The investment conglomerate has been keeping plenty of powder dry, and with macroeconomic pressures having depressed valuations for many companies, Berkshire is in good position to make some explosive investments or outright acquisitions.
Berkshire's diversified holdings, massive cash pile, and time-tested management team give the company defensive characteristics that could help shares hold relatively well if turbulence continues to shape the broader market, and its shares should benefit from rebound momentum as bearish pressures shaping the current backdrop ease.
10 stocks we like better than Amazon
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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. Keith Noonan has positions in Activision Blizzard. The Motley Fool has positions in and recommends Activision Blizzard, Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), Meta Platforms, Inc., Microsoft, and Tencent Holdings. 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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Berkshire's recent third-quarter results show that the investment conglomerate was a net purchaser of stocks in the period, suggesting that the Oracle of Omaha sees opportunity in the market despite current risk factors and volatility. Guidance for the current quarter suggests that AWS isn't immune to market pressures, but the cloud business still looks poised for strong growth over the long term, and its dominant e-commerce unit still has plenty of room for sales and margin expansion. But its rival Sony actually leads the market in their shared corner of the console-gaming space, and Microsoft also faces gaming and overall product ecosystem competition from tech giants including Tencent, Apple, Amazon, Meta Platforms, and Alphabet.
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Activision Blizzard Just weeks before Microsoft announced it aimed to make Activision Blizzard (NASDAQ: ATVI) its largest-ever acquisition, Berkshire Hathaway purchased roughly $1 billion worth of the gaming publisher's stock. The Motley Fool has positions in and recommends Activision Blizzard, Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), Meta Platforms, Inc., Microsoft, and Tencent Holdings. 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.
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Activision Blizzard Just weeks before Microsoft announced it aimed to make Activision Blizzard (NASDAQ: ATVI) its largest-ever acquisition, Berkshire Hathaway purchased roughly $1 billion worth of the gaming publisher's stock. The Motley Fool has positions in and recommends Activision Blizzard, Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), Meta Platforms, Inc., Microsoft, and Tencent Holdings. 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.
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The investment conglomerate has continued to make big purchases following the announcement of the deal, and Berkshire owned roughly 9.5% of Activision Blizzard's outstanding shares as of its last update. The investment conglomerate has been keeping plenty of powder dry, and with macroeconomic pressures having depressed valuations for many companies, Berkshire is in good position to make some explosive investments or outright acquisitions. The Motley Fool has positions in and recommends Activision Blizzard, Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), Meta Platforms, Inc., Microsoft, and Tencent Holdings.
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18435.0
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2022-11-14 00:00:00 UTC
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This FAANG Stock Is Crushing It Despite Inflation
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AAPL
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https://www.nasdaq.com/articles/this-faang-stock-is-crushing-it-despite-inflation
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nan
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nan
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The acronym FAANG refers to a group of prominent tech companies. It includes Facebook parent Meta Platforms, Apple (NASDAQ: AAPL), Amazon, Netflix, and Google parent Alphabet.
Though these tech giants have a long history of crushing the market, all of them have lagged the tech-heavy Nasdaq this year -- all but one: Apple. The iPhone maker continues to put up impressive performances.
And despite having a market cap above $2 trillion, there is plenty of fuel left in the growth tank. Here's why.
AAPL data by YCharts
Riding out the storm
Apple is known for putting its own spin on existing technological devices. That's what it did with the iPhone, its AirPods, and many other gadgets, and with great success. But what Apple isn't known for is low prices. The company's electronics generally command hefty premiums. Given the state of the economy -- including decades-high inflation -- it's not crazy to think that Apple's sales would drop substantially, especially considering people can get by just fine without most of its products.
But that's not what we're seeing. In the fourth quarter of its fiscal year 2022, ending on Sept. 24, Apple recorded revenue of $90.1 billion, an increase of 8% year over year (YoY) and a record for the company's September quarter. iPhone sales jumped by 9.7% YoY during the period to $42.6 billion -- also a record for this quarter.
Inflation wasn't the only thing working against Apple. The company had to deal with supply chain issues that impacted its ability to meet demand for the iPhone, as well as unfavorable currency exchange fluctuations. On the bottom line, Apple reported earnings per share of $1.29, 4% higher than the year-ago period.
Apple's ability to perform well despite all the troubles it faces speaks volumes about just how popular the company is. Customers continue to spend money on the iPhone and other devices despite these gadgets' highly prohibitive prices. That's why it is one of Warren Buffett's largest holdings.
There is more where that came from
Let's look at a few areas where Apple can continue to grow -- first, within its existing base of customers. iPhone users are as excited about new versions of the highly successful smartphone as everyone else. In the company's fourth quarter, it had a record number of upgrades -- a good sign that the new iPhone fatigue syndrome some analysts have been warning about for years hasn't yet fully taken over.
Second, Apple is making a strong push within emerging markets, where smartphone penetration tends to be lower. The company reported strong double-digit growth in such markets as Latin America, Southeast Asia, and India. About 78% of the world's population had a smartphone as of 2020, which includes 82% of people in North America, 78% in Europe, but only 48% in sub-Saharan Africa.
Access to mobile devices has only become more important. We can reasonably predict that more people in developing nations will get on board, making room for Apple to gain new users in these regions. Of course, Apple is also grabbing new customers by stealing them away from its competitors. It recorded double-digit growth in the number of those who switched to the iPhone during its Q4 in 2022.
It is worth noting that the switch to the faster 5G wireless technology is helping fuel iPhone sales. Apple's smartphones have supported 5G technology for a couple of years now, but worldwide 5G penetration remains quite low, according to the company. That'll help boost the company's crown jewel as the entire world catches up to 5G wireless.
All of these opportunities will allow Apple to increase its installed base, which reached a new record in its latest period. That's an increasingly important aspect of the company's business. It allows it to offer a range of services through its network, from Apple TV+ to Apple Pay, a leading digital wallet. Apple's entire ecosystem isn't easy to leave. Switching requires transferring loads of data, which can sometimes be incredibly tedious.
Further, Apple's services segment boasts higher margins than the rest of its business. The growth of this unit spells great news for Apple's future.
Here's one more reason to buy the company's shares: Apple generates plenty of cash, which allows the company to invest aggressively in research and development efforts and reward its shareholders with dividends. The company returned $29 billion to its shareholders in its fourth quarter.
With a robust business that is handling the challenging conditions just fine, lots of growth potential, steady cash flow, and the willingness to give back to investors via dividends, no wonder Apple is outperforming its FAANG peers and the broader technology sector.
10 stocks we like better than Apple
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*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. 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. Prosper Junior Bakiny has positions in Amazon and Meta Platforms, Inc. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., and Netflix. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It includes Facebook parent Meta Platforms, Apple (NASDAQ: AAPL), Amazon, Netflix, and Google parent Alphabet. AAPL data by YCharts Riding out the storm Apple is known for putting its own spin on existing technological devices. The company had to deal with supply chain issues that impacted its ability to meet demand for the iPhone, as well as unfavorable currency exchange fluctuations.
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It includes Facebook parent Meta Platforms, Apple (NASDAQ: AAPL), Amazon, Netflix, and Google parent Alphabet. AAPL data by YCharts Riding out the storm Apple is known for putting its own spin on existing technological devices. 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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It includes Facebook parent Meta Platforms, Apple (NASDAQ: AAPL), Amazon, Netflix, and Google parent Alphabet. AAPL data by YCharts Riding out the storm Apple is known for putting its own spin on existing technological devices. In the fourth quarter of its fiscal year 2022, ending on Sept. 24, Apple recorded revenue of $90.1 billion, an increase of 8% year over year (YoY) and a record for the company's September quarter.
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It includes Facebook parent Meta Platforms, Apple (NASDAQ: AAPL), Amazon, Netflix, and Google parent Alphabet. AAPL data by YCharts Riding out the storm Apple is known for putting its own spin on existing technological devices. In the fourth quarter of its fiscal year 2022, ending on Sept. 24, Apple recorded revenue of $90.1 billion, an increase of 8% year over year (YoY) and a record for the company's September quarter.
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18436.0
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2022-11-14 00:00:00 UTC
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Meta Platforms Stock: Buy, Sell, or Hold in 2023?
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AAPL
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https://www.nasdaq.com/articles/meta-platforms-stock%3A-buy-sell-or-hold-in-2023
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nan
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nan
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Facebook rebranded itself as Meta Platforms (NASDAQ: META) on Oct. 28, 2021. Since that fateful day, Meta's stock declined more than 60% as it repeatedly disappointed its investors with its sluggish growth, feverish spending, and opaque plans for the future. Rising interest rates and other macro headwinds exacerbated that painful sell-off.
That crash stunned many investors who considered Meta to be reliable blue-chip tech stock. Let's compare the main reasons to buy, sell, and hold Meta to see if this out-of-favor tech giant will finally bounce back in 2023.
Image source: Meta Platforms.
The main reasons to sell Meta
Before we discuss Meta's turnaround potential, we should review why its stock collapsed over the past year. First, the growth of its core advertising business stalled out for three main reasons: 1. Apple's (NASDAQ: AAPL) iOS update crippled its targeted ads; 2. ByteDance's TikTok lured users and advertisers away from Facebook and Instagram; and 3. The macroeconomic headwinds disrupted the growth of the broader advertising market.
Meta aggressively invested in the expansion of Instagram Reels to counter TikTok, but it warned that those short videos would be more difficult to monetize than its Feed-based ads. But instead of streamlining its business to offset those costs, Meta doubled down on expanding its Reality Labs segment, which houses its virtual reality products. That segment's revenue rose less than 3% year over year to $1.43 billion in the first nine months of 2022, but its operating loss widened from $6.89 billion to $9.44 billion. During last quarter's conference call, Meta's CFO Dave Wehner warned that the Reality Labs division's operating losses would still "grow significantly year over year" in 2023 as it rolls out its next Quest headset. Wehner also estimated that Meta's total expenses would rise from $85 billion-$87 billion in 2022 to $96 billion-$101 billion in 2023.
That toxic mix of slowing growth and rising expenses drove away the bulls. Analysts expect its revenue and earnings to drop 2% and 33%, respectively, this year. For 2023, they expect its revenue to rise 5% -- but for its earnings to tumble another 15% as its expenses continue to climb. We should take those estimates with a grain of salt, but we should also recall that Meta's insiders sold nearly four times as many shares as they bought over the past 12 months.
The main reasons to buy or hold Meta
The bulls believe Meta's stock is a screaming bargain at 12 times forward earnings. That makes it the cheapest FAANG stock by a wide margin. They'll also note that Meta's recent decision to lay off 13% of its staff, or about 11,000 employees, indicates CEO Mark Zuckerberg is finally ready to make some tough calls to stabilize its near-term margins. In an open letter to his employees, Zuckerberg said Meta needed to "become more capital efficient" to cope with the "macroeconomic downturn, increased competition, and ads signal loss." In addition to those layoffs, Zuckerberg said Meta was also "scaling back budgets, reducing perks, and shrinking our real estate footprint" as it prioritized the growth of its core businesses.
Those statements suggest that Meta will pour a lot less cash into its money-losing Reality Labs division while prioritizing the development of better first-party data mining services (which could reduce its dependence on third-party data from Apple or other operating system providers) and the expansion of Instagram Reels to keep pace with TikTok.
During Meta's last conference call, Dave Wehner said the company was "working to close" the monetization gap between Reels and its higher-value Feed and Stories, but that it could take another 12 to 18 months to do so. That process could be accelerated significantly if the U.S. government finally bans TikTok over its ties to the Chinese government.
Meta's growth will likely remain sluggish over the next few quarters, but the worst-case scenario has arguably been priced in. Meanwhile, the potential tailwinds for the tech giant -- including a revival of its ad business with first-party data, the downsizing (or complete shutdown) of Reality Labs, and a national ban on TikTok -- aren't reflected in its current valuation yet. If the market merely values Meta at 18 times forward earnings, its stock price could easily rise about 50%.
Which argument makes more sense?
I personally think it's too late to sell Meta at these levels, especially if cooler inflation drives stocks higher over the next few months. Meanwhile, investors who already own Meta's stock should probably simply hold it for a few more quarters and see if its business improves or deteriorates. However, I also think it's still too risky to buy Meta's stock before a few green shoots actually appear. Therefore, I believe Meta will be a stock to hold -- instead of being too bearish or bullish on -- in 2023.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Leo Sun has positions in Apple and Meta Platforms, Inc. The Motley Fool has positions in and recommends Apple and Meta Platforms, Inc. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple's (NASDAQ: AAPL) iOS update crippled its targeted ads; 2. They'll also note that Meta's recent decision to lay off 13% of its staff, or about 11,000 employees, indicates CEO Mark Zuckerberg is finally ready to make some tough calls to stabilize its near-term margins. In addition to those layoffs, Zuckerberg said Meta was also "scaling back budgets, reducing perks, and shrinking our real estate footprint" as it prioritized the growth of its core businesses.
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Apple's (NASDAQ: AAPL) iOS update crippled its targeted ads; 2. During last quarter's conference call, Meta's CFO Dave Wehner warned that the Reality Labs division's operating losses would still "grow significantly year over year" in 2023 as it rolls out its next Quest headset. The main reasons to buy or hold Meta The bulls believe Meta's stock is a screaming bargain at 12 times forward earnings.
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Apple's (NASDAQ: AAPL) iOS update crippled its targeted ads; 2. The main reasons to sell Meta Before we discuss Meta's turnaround potential, we should review why its stock collapsed over the past year. The main reasons to buy or hold Meta The bulls believe Meta's stock is a screaming bargain at 12 times forward earnings.
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Apple's (NASDAQ: AAPL) iOS update crippled its targeted ads; 2. Facebook rebranded itself as Meta Platforms (NASDAQ: META) on Oct. 28, 2021. First, the growth of its core advertising business stalled out for three main reasons: 1.
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18437.0
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2022-11-14 00:00:00 UTC
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Should Vanguard Mega Cap Growth ETF (MGK) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-mega-cap-growth-etf-mgk-be-on-your-investing-radar-4
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nan
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nan
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Launched on 12/17/2007, the Vanguard Mega Cap Growth ETF (MGK) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Vanguard. It has amassed assets over $10.61 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Further, growth stocks have a higher level of volatility associated with them. 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
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 0.07%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.61%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 50.20% of the portfolio. Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 15.95% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 59.54% of total assets under management.
Performance and Risk
MGK seeks to match the performance of the CRSP U.S. Mega Cap Growth Index before fees and expenses. The CRSP US Mega Cap Growth Index is a float-adjusted, market-capitalization-weighted index designed to measure equity market performance of mega-capitalization growth stocks in the United States.
The ETF has lost about -28.96% so far this year and is down about -26.46% in the last one year (as of 11/14/2022). In the past 52-week period, it has traded between $168.38 and $264.33.
The ETF has a beta of 1.09 and standard deviation of 29.49% for the trailing three-year period, making it a medium risk choice in the space. With about 100 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Mega Cap 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, MGK is a good option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $71.11 billion in assets, Invesco QQQ has $156.88 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 15.95% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report It has amassed assets over $10.61 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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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 15.95% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 12/17/2007, the Vanguard Mega Cap Growth ETF (MGK) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 15.95% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 12/17/2007, the Vanguard Mega Cap Growth ETF (MGK) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 15.95% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 12/17/2007, the Vanguard Mega Cap Growth ETF (MGK) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
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18438.0
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2022-11-14 00:00:00 UTC
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Should Vanguard Russell 1000 Growth ETF (VONG) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-russell-1000-growth-etf-vong-be-on-your-investing-radar-4
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nan
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nan
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If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Vanguard Russell 1000 Growth ETF (VONG), a passively managed exchange traded fund launched on 09/22/2010.
The fund is sponsored by Vanguard. It has amassed assets over $8.32 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. When you consider growth versus value, growth stocks are usually the clear winner in strong bull markets but tend to fall flat in nearly all other environments.
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 0.08%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.88%.
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 43.40% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 12.57% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 46.85% of total assets under management.
Performance and Risk
VONG seeks to match the performance of the Russell 1000 Growth Index before fees and expenses. The Russell 1000 Growth Index measures the performance of large-capitalization growth stocks in the United States.
The ETF has lost about -25.39% so far this year and is down about -23.30% in the last one year (as of 11/14/2022). In the past 52-week period, it has traded between $53.17 and $79.55.
The ETF has a beta of 1.07 and standard deviation of 27.94% for the trailing three-year period, making it a medium risk choice in the space. With about 518 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Russell 1000 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, VONG is a good option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $71.11 billion in assets, Invesco QQQ has $156.88 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.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vanguard Russell 1000 Growth ETF (VONG): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 12.57% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report It has amassed assets over $8.32 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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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 12.57% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Vanguard Russell 1000 Growth ETF (VONG), a passively managed exchange traded fund launched on 09/22/2010.
|
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 12.57% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Vanguard Russell 1000 Growth ETF (VONG), a passively managed exchange traded fund launched on 09/22/2010.
|
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 12.57% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Vanguard Russell 1000 Growth ETF (VONG), a passively managed exchange traded fund launched on 09/22/2010.
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18439.0
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2022-11-14 00:00:00 UTC
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EXCLUSIVE-Russian software disguised as American finds its way into U.S. Army, CDC apps
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AAPL
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https://www.nasdaq.com/articles/exclusive-russian-software-disguised-as-american-finds-its-way-into-u.s.-army-cdc-apps
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nan
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nan
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By James Pearson and Marisa Taylor
LONDON/WASHINGTON, Nov 14 (Reuters) - Thousands of smartphone applications in Apple AAPL.O and Google's GOOGL.O online stores contain computer code developed by a technology company, Pushwoosh, that presents itself as based in the United States, but is actually Russian, Reuters has found.
The Centers for Disease Control and Prevention (CDC), the United States' main agency for fighting major health threats, said it had been deceived into believing Pushwoosh was based in the U.S. capital. After learning about its Russian roots from Reuters, it removed Pushwoosh software from seven public-facing apps, citing security concerns.
The U.S. Army said it had removed an app containing Pushwoosh code in March because of the same concerns. That app was used by soldiers at one of the country's main combat training bases.
According to company documents publicly filed in Russia and reviewed by Reuters, Pushwoosh is headquartered in the Siberian town of Novosibirsk, where it is registered as a software company that also carries out data processing. It employs around 40 people and reported revenue of 143,270,000 rubles ($2.4 mln) last year. Pushwoosh is registered with the Russian government to pay taxes in Russia.
On social media and in U.S. regulatory filings, however, it presents itself as a U.S. company, based at various times in California, Maryland and Washington, D.C., Reuters found.
Pushwoosh provides code and data processing support for software developers, enabling them to profile the online activity of smartphone app users and send tailor-made push notifications from Pushwoosh servers.
On its website, Pushwoosh says it does not collect sensitive information, and Reuters found no evidence Pushwoosh mishandled user data. Russian authorities, however, have compelled local companies to hand over user data to domestic security agencies.
Pushwoosh's founder, Max Konev, told Reuters in a September email that the company had not tried to mask its Russian origins. "I am proud to be Russian and I would never hide this."
He said the company "has no connection with the Russian government of any kind" and stores its data in the United States and Germany.
Cybersecurity experts said storing data overseas would not prevent Russian intelligence agencies from compelling a Russian firm to cede access to that data, however.
Russia, whose ties with the West have deteriorated since its takeover of the Crimean Peninsula in 2014 and its invasion of Ukraine this year, is a global leader in hacking and cyber-espionage, spying on foreign governments and industries to seek competitive advantage, according to Western officials.
HUGE DATABASE
Pushwoosh code was installed in the apps of a wide array of international companies, influential non-profits and government agencies from global consumer goods company Unilever Plc ULVR.L and the Union of European Football Associations (UEFA) to the politically powerful U.S. gun lobby, the National Rifle Association (NRA), and Britain's Labour Party.
Pushwoosh's business with U.S. government agencies and private companies could violate contracting and U.S. Federal Trade Commission (FTC) laws or trigger sanctions, 10 legal experts told Reuters. The FBI, U.S. Treasury and the FTC declined to comment.
Jessica Rich, former director of the FTC's Bureau of Consumer Protection, said "this type of case falls right within the authority of the FTC," which cracks down on unfair or deceptive practices affecting U.S. consumers.
Washington could choose to impose sanctions on Pushwoosh and has broad authority to do so, sanctions experts said, including possibly through a 2021 executive order that gives the United States the ability to target Russia's technology sector over malicious cyber activity.
Pushwoosh code has been embedded into almost 8,000 apps in the Google and Apple app stores, according to Appfigures, an app intelligence website. Pushwoosh's website says it has more than 2.3 billion devices listed in its database.
"Pushwoosh collects user data including precise geolocation, on sensitive and governmental apps, which could allow for invasive tracking at scale," said Jerome Dangu, co-founder of Confiant, a firm that tracks misuse of data collected in online advertising supply chains.
"We haven't found any clear sign of deceptive or malicious intent in Pushwoosh's activity, which certainly doesn't diminish the risk of having app data leaking to Russia," he added.
Google said privacy was a "huge focus" for the company but did not respond to requests for comment about Pushwoosh. Apple said it takes user trust and safety seriously but similarly declined to answer questions.
Keir Giles, a Russia expert at London think tank Chatham House, said despite international sanctions on Russia, a "substantial number" of Russian companies were still trading abroad and collecting people's personal data.
Given Russia's domestic security laws, "it shouldn't be a surprise that with or without direct links to Russian state espionage campaigns, firms that handle data will be keen to play down their Russian roots," he said.
'SECURITY ISSUES'
After Reuters raised Pushwoosh's Russian links with the CDC, the health agency removed the code from its apps because "the company presents a potential security concern," spokesperson Kristen Nordlund said.
"CDC believed Pushwoosh was a company based in the Washington, D.C. area," Nordlund said in a statement. The belief was based on "representations" made by the company, she said, without elaborating.
The CDC apps that contained Pushwoosh code included the agency's main app and others set up to share information on a wide range of health concerns. One was for doctors treating sexually transmitted diseases. While the CDC also used the company's notifications for health matters such as COVID, the agency said it "did not share user data with Pushwoosh."
The Army told Reuters it removed an app containing Pushwoosh in March, citing "security issues." It did not say how widely the app, which was an information portal for use at its National Training Center (NTC) in California, had been used by troops.
The NTC is a major battle training center in the Mojave Desert for pre-deployment soldiers, meaning a data breach there could reveal upcoming overseas troop movements.
U.S. Army spokesperson Bryce Dubee said the Army had suffered no "operational loss of data," adding that the app did not connect to the Army network.
Some large companies and organizations including UEFA and Unilever said third parties set up the apps for them, or they thought they were hiring a U.S. company.
"We don't have a direct relationship with Pushwoosh," Unilever said in a statement, adding that Pushwoosh was removed from one of its apps "some time ago."
UEFA said its contract with Pushwoosh was "with a U.S. company." UEFA declined to say if it knew of Pushwoosh's Russian ties but said it was reviewing its relationship with the company after being contacted by Reuters.
The NRA said its contract with the company ended last year, and it was "not aware of any issues."
Britain's Labour Party did not respond to requests for comment.
"The data Pushwoosh collects is similar to data that could be collected by Facebook, Google or Amazon, but the difference is that all the Pushwoosh data in the U.S. is sent to servers controlled by a company (Pushwoosh) in Russia," said Zach Edwards, a security researcher, who first spotted the prevalence of Pushwoosh code while working for Internet Safety Labs, a nonprofit organization.
Roskomnadzor, Russia's state communications regulator, did not respond to a request from Reuters for comment.
FAKE ADDRESS, FAKE PROFILES
In U.S. regulatory filings and on social media, Pushwoosh never mentions its Russian links. The company lists "Washington, D.C." as its location on Twitter and claims its office address as a house in the suburb of Kensington, Maryland, according to its latest U.S. corporation filings submitted to Delaware's secretary of state. It also lists the Maryland address on its Facebook and LinkedIn profiles.
The Kensington house is the home of a Russian friend of Konev's who spoke to a Reuters journalist on condition of anonymity. He said he had nothing to do with Pushwoosh and had only agreed to allow Konev to use his address to receive mail.
Konev said Pushwoosh had begun using the Maryland address to "receive business correspondence" during the coronavirus pandemic.
He said he now operates Pushwoosh from Thailand but provided no evidence that it is registered there. Reuters could not find a company by that name in the Thai company registry.
Pushwoosh never mentioned it was Russian-based in eight annual filings in the U.S. state of Delaware, where it is registered, an omission which could violate state law.
Pushwoosh used LinkedIn accounts purportedly belonging to two Washington, D.C.-based executives named Mary Brown and Noah O'Shea to solicit sales. But neither Brown nor O'Shea are real people, Reuters found.
The one belonging to Brown was actually of an Austria-based dance teacher, taken by a photographer in Moscow, who told Reuters she had no idea how it ended up on the site.
Konev acknowledged the accounts were not genuine. He said Pushwoosh hired a marketing agency in 2018 to create them in an attempt to use social media to sell Pushwoosh, not to mask the company's Russian origins.
LinkedIn said it had removed the accounts after being alerted by Reuters.
How Pushwoosh workshttps://tmsnrt.rs/3To59Av
(Reporting by James Pearson in London and Marisa Taylor in Washington Additional reporting by Chris Bing in Washington, editing by Chris Sanders and Ross Colvin)
((james.pearson@reuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By James Pearson and Marisa Taylor LONDON/WASHINGTON, Nov 14 (Reuters) - Thousands of smartphone applications in Apple AAPL.O and Google's GOOGL.O online stores contain computer code developed by a technology company, Pushwoosh, that presents itself as based in the United States, but is actually Russian, Reuters has found. Russia, whose ties with the West have deteriorated since its takeover of the Crimean Peninsula in 2014 and its invasion of Ukraine this year, is a global leader in hacking and cyber-espionage, spying on foreign governments and industries to seek competitive advantage, according to Western officials. After Reuters raised Pushwoosh's Russian links with the CDC, the health agency removed the code from its apps because "the company presents a potential security concern," spokesperson Kristen Nordlund said.
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By James Pearson and Marisa Taylor LONDON/WASHINGTON, Nov 14 (Reuters) - Thousands of smartphone applications in Apple AAPL.O and Google's GOOGL.O online stores contain computer code developed by a technology company, Pushwoosh, that presents itself as based in the United States, but is actually Russian, Reuters has found. Pushwoosh's business with U.S. government agencies and private companies could violate contracting and U.S. Federal Trade Commission (FTC) laws or trigger sanctions, 10 legal experts told Reuters. After Reuters raised Pushwoosh's Russian links with the CDC, the health agency removed the code from its apps because "the company presents a potential security concern," spokesperson Kristen Nordlund said.
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By James Pearson and Marisa Taylor LONDON/WASHINGTON, Nov 14 (Reuters) - Thousands of smartphone applications in Apple AAPL.O and Google's GOOGL.O online stores contain computer code developed by a technology company, Pushwoosh, that presents itself as based in the United States, but is actually Russian, Reuters has found. After Reuters raised Pushwoosh's Russian links with the CDC, the health agency removed the code from its apps because "the company presents a potential security concern," spokesperson Kristen Nordlund said. "The data Pushwoosh collects is similar to data that could be collected by Facebook, Google or Amazon, but the difference is that all the Pushwoosh data in the U.S. is sent to servers controlled by a company (Pushwoosh) in Russia," said Zach Edwards, a security researcher, who first spotted the prevalence of Pushwoosh code while working for Internet Safety Labs, a nonprofit organization.
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By James Pearson and Marisa Taylor LONDON/WASHINGTON, Nov 14 (Reuters) - Thousands of smartphone applications in Apple AAPL.O and Google's GOOGL.O online stores contain computer code developed by a technology company, Pushwoosh, that presents itself as based in the United States, but is actually Russian, Reuters has found. On its website, Pushwoosh says it does not collect sensitive information, and Reuters found no evidence Pushwoosh mishandled user data. The FBI, U.S. Treasury and the FTC declined to comment.
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18440.0
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2022-11-14 00:00:00 UTC
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US STOCKS-Wall St eyes lower open after hawkish Fed comments
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-eyes-lower-open-after-hawkish-fed-comments
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nan
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nan
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By Shubham Batra and Ankika Biswas
Nov 14 (Reuters) - Wall street's main indexes were set to open lower on Monday as hawkish comments from a U.S. Federal Reserve official over the weekend tempered hopes of the central bank toning down its aggressive monetary policy approach.
Federal Reserve Governor Christopher Waller, a voting member of the rate-setting committee this year, said on Sunday that markets should now pay attention to the "endpoint" of rate increases, not the pace of each move, and that the endpoint was likely "a ways off".
The comments follow a softer-than-expected inflation report last week, which had buoyed hopes that price pressures were easing and the Fed could scale back its hefty interest rate hikes.
The data helped drive a euphoric market rally, with the S&P 500 logging its biggest weekly percentage gains in about five months, while the tech-heavy Nasdaq .IXIC logged its best week since March.
In the week ahead, focus will be on a slew of economic data including retail sales numbers on Wednesday as well as speeches by several Fed officials for further clues on the outlook for interest rates.
"The market is expecting the Fed to continue its hawkish rhetoric on rates," said Peter Cardillo, chief market economist at Spartan Capital Securities.
"That could all change once we get more confirmation on inflation in December. Once they (Fed) raise rates at 50 (bps), there's a possibility that they might indicate slower rates."
Traders now expect the Fed to hike interest rates in December by a half point, and expect terminal rate in the range of 4.75%-5.0% next year. FEDWATCH
As U.S. Treasury yields edged up, technology and growth names such as Meta Platforms Inc META.O, Apple Inc AAPL.O, Amazon.com Inc AMZN.O slipped between 0.7% and 1.5% in premarket trade. US/
Tesla Inc TSLA.O fell 1.3% as Chief Executive Elon Musk said "I have too much work on my plate" when asked about his recent acquisition of Twitter and his leadership of the electric-vehicle maker.
Meanwhile, bitcoin and other cryptocurrencies remained under pressure, following last week's collapse of crypto exchange FTX.
At 8:06 a.m. ET, Dow e-minis 1YMcv1 were down 50 points, or 0.15%, S&P 500 e-minis EScv1 were down 11.5 points, or 0.29%, and Nasdaq 100 e-minis NQcv1 were down 62 points, or 0.52%.
U.S.-listed shares of Chinese firms such as Alibaba.com BABA.N, JD.com JD.O and Pinduoduo PDD.O gained between 2% and 6% following Beijing's support measures to boost liquidity in the property sector and easing of some of its strict COVID-19 rules.
Chinese leader Xi Jinping and U.S. President Joe Biden met on Monday for long-awaited talks that come as relations between their countries are at their lowest in decades, marred by disagreements over a host of issues from Taiwan to trade.
Biogen Inc BIIB.O and Eli Lilly LLY.N gained 5.4% and 2.0%, respectively, after their Swiss rival Roche's ROG.S Alzheimer's disease drug candidate failed to meet the goal of long-awaited studies.
(Reporting by Shubham Batra, Bansari Mayur Kamdar, Ankika Biswas and Amruta Khandekar in Bengaluru; Editing by Shounak Dasgupta)
((Shubham.Batra@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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FEDWATCH As U.S. Treasury yields edged up, technology and growth names such as Meta Platforms Inc META.O, Apple Inc AAPL.O, Amazon.com Inc AMZN.O slipped between 0.7% and 1.5% in premarket trade. By Shubham Batra and Ankika Biswas Nov 14 (Reuters) - Wall street's main indexes were set to open lower on Monday as hawkish comments from a U.S. Federal Reserve official over the weekend tempered hopes of the central bank toning down its aggressive monetary policy approach. In the week ahead, focus will be on a slew of economic data including retail sales numbers on Wednesday as well as speeches by several Fed officials for further clues on the outlook for interest rates.
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FEDWATCH As U.S. Treasury yields edged up, technology and growth names such as Meta Platforms Inc META.O, Apple Inc AAPL.O, Amazon.com Inc AMZN.O slipped between 0.7% and 1.5% in premarket trade. By Shubham Batra and Ankika Biswas Nov 14 (Reuters) - Wall street's main indexes were set to open lower on Monday as hawkish comments from a U.S. Federal Reserve official over the weekend tempered hopes of the central bank toning down its aggressive monetary policy approach. The comments follow a softer-than-expected inflation report last week, which had buoyed hopes that price pressures were easing and the Fed could scale back its hefty interest rate hikes.
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FEDWATCH As U.S. Treasury yields edged up, technology and growth names such as Meta Platforms Inc META.O, Apple Inc AAPL.O, Amazon.com Inc AMZN.O slipped between 0.7% and 1.5% in premarket trade. The comments follow a softer-than-expected inflation report last week, which had buoyed hopes that price pressures were easing and the Fed could scale back its hefty interest rate hikes. The data helped drive a euphoric market rally, with the S&P 500 logging its biggest weekly percentage gains in about five months, while the tech-heavy Nasdaq .IXIC logged its best week since March.
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FEDWATCH As U.S. Treasury yields edged up, technology and growth names such as Meta Platforms Inc META.O, Apple Inc AAPL.O, Amazon.com Inc AMZN.O slipped between 0.7% and 1.5% in premarket trade. By Shubham Batra and Ankika Biswas Nov 14 (Reuters) - Wall street's main indexes were set to open lower on Monday as hawkish comments from a U.S. Federal Reserve official over the weekend tempered hopes of the central bank toning down its aggressive monetary policy approach. Federal Reserve Governor Christopher Waller, a voting member of the rate-setting committee this year, said on Sunday that markets should now pay attention to the "endpoint" of rate increases, not the pace of each move, and that the endpoint was likely "a ways off".
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18441.0
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2022-11-13 00:00:00 UTC
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Top Stock Investing Lessons Learned from Q3 Earnings
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AAPL
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https://www.nasdaq.com/articles/top-stock-investing-lessons-learned-from-q3-earnings
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nan
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nan
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The third-quarter (Q3) earnings season was quite turbulent, with even some mega-cap blue-chip stocks showing dents in their armor. Undoubtedly, FAANG stocks (with the exception of Apple (NASDAQ: AAPL)) have fallen flat this earnings season, with forward-looking guidance weighing them down. Indeed, it's discouraging to see big tech show such fragility after holding their own through past periods of turbulence.
With downbeat guidance enticing analysts to lower the bar on coming quarterly results, expectations are now very muted for most firms. Though recession storm clouds will be moving in, such lowered expectations may set the stage for better-than-expected quarters moving forward. Indeed, it's hard to be bullish on anything these days as blue chips begin to sink.
This third quarter may have been painful for most portfolios, but there were lessons to be learned. In this piece, we'll go through two key takeaways from one of the most jittery and stomach-churning earnings seasons in recent memory.
Don't Bet Against Apple Stock, Even as its Peers Sink
FAANG companies really failed to deliver in the latest quarter. Even the firms that surpassed expectations were met with steep selling activity following downbeat guidance. With a recession on the way and inflation headwinds lingering, I'd say it's only prudent to be cautious with any such guidance. Indeed, things could get more turbulent from here as we learn just how much consumers can tighten their wallets. Despite the seemingly endless post-earnings tumbles for big tech companies, Apple, which reported after many of its big-tech peers, delivered a beat, punishing the short-sellers who thought it'd also fumble.
Indeed, the best was saved for last when it came to the FAANG group!
There was chatter about muted iPhone deliveries, but at the end of the day, Apple pulled it off and was able to scrape out a strong, albeit short-lived gain, widening the gap with its +$1 trillion peers.
Going into Apple's quarter, it seemed like a sure thing that Apple would flop. If all of its FAANG rivals fell flat, it would have been forgivable for Apple to clock in a stinker for once. The fact that it didn't shows how powerful a firm Apple can be in the face of profound pressures.
Indeed, CEO Tim Cook deserves a round of applause for surprising to the upside. Eventually, the post-earnings gains were lost as markets sunk on the back of broader market fears.
In any case, Apple's quarterly performance shows that wonderful firms can pull off surprises even when the odds are stacked against them. As it turned out, Apple wasn't the last domino to tumble.
Earnings Results Can Drastically Overshoot
We've seen some horrific double-digit plunges from mega-caps this year. Meta Platforms (NASDAQ: META) is a stock that's crumbled on the back of weak results that probably weren't as abysmal as post-earnings moves suggested. Indeed, reaction to earnings can be extreme, leading to overswings in both directions.
In Q3, the gravitational pull has been to the downside. Expectations were already muted, making the consequences for missing that much more severe. Guidance downgrades have also added to the gloom. Such post-earnings moves show the high stakes of betting on firms going into earnings results.
Since clocking in terrible results, it's been a downhill slide for Meta stock. Eventually, the sellers ran out of steam, and the stock went on to rally about 30% from its low of around $88 per share. Indeed, the odds were stacked against Meta, but there were promising takeaways from the quarter. Most notably, Meta's Reels is starting to pick up traction. As economic storm clouds begin to fade, Meta could begin to flex its muscles as it looks to get back into growth mode.
The Takeaway
In the third quarter, many mighty firms have fallen. Still, the mightiest (Apple) has been able to buck the trend and shows that some firms are more capable than others in overcoming profound headwinds weighing heavily on most other companies.
Betting for or against companies has become that much riskier in today's volatile environment. However, arming yourself with premium website traffic data available on TipRanks may help investors gain an edge before earnings reports to better deal with the choppiness in the face of a recession.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Undoubtedly, FAANG stocks (with the exception of Apple (NASDAQ: AAPL)) have fallen flat this earnings season, with forward-looking guidance weighing them down. Despite the seemingly endless post-earnings tumbles for big tech companies, Apple, which reported after many of its big-tech peers, delivered a beat, punishing the short-sellers who thought it'd also fumble. There was chatter about muted iPhone deliveries, but at the end of the day, Apple pulled it off and was able to scrape out a strong, albeit short-lived gain, widening the gap with its +$1 trillion peers.
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Undoubtedly, FAANG stocks (with the exception of Apple (NASDAQ: AAPL)) have fallen flat this earnings season, with forward-looking guidance weighing them down. Don't Bet Against Apple Stock, Even as its Peers Sink FAANG companies really failed to deliver in the latest quarter. Despite the seemingly endless post-earnings tumbles for big tech companies, Apple, which reported after many of its big-tech peers, delivered a beat, punishing the short-sellers who thought it'd also fumble.
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Undoubtedly, FAANG stocks (with the exception of Apple (NASDAQ: AAPL)) have fallen flat this earnings season, with forward-looking guidance weighing them down. Don't Bet Against Apple Stock, Even as its Peers Sink FAANG companies really failed to deliver in the latest quarter. In any case, Apple's quarterly performance shows that wonderful firms can pull off surprises even when the odds are stacked against them.
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Undoubtedly, FAANG stocks (with the exception of Apple (NASDAQ: AAPL)) have fallen flat this earnings season, with forward-looking guidance weighing them down. Don't Bet Against Apple Stock, Even as its Peers Sink FAANG companies really failed to deliver in the latest quarter. In any case, Apple's quarterly performance shows that wonderful firms can pull off surprises even when the odds are stacked against them.
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18442.0
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2022-11-13 00:00:00 UTC
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Wall St Week Ahead-Soaring U.S. tech stocks leave some investors doubtful rebound will last
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AAPL
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https://www.nasdaq.com/articles/wall-st-week-ahead-soaring-u.s.-tech-stocks-leave-some-investors-doubtful-rebound-will-0
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nan
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nan
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By Lewis Krauskopf
NEW YORK, Nov 11 (Reuters) - Hopes that inflation is subsiding are fueling a surge in battered technology and megacap stocks, though some investors believe still-high valuations and doubts over the companies' earnings outlooks may make a sustained reversal elusive.
The tech-heavy Nasdaq Composite index .IXIC rose 8.1% this week to notch its biggest weekly gain since March, one of several eye-popping market moves that also saw Treasuries soar and the U.S. dollar tumble after Thursday's softer-than-expected inflation data spurred hopes the Federal Reserve could temper its rate hikes.
Despite those recent gains, some investors are hesitant to jump on the rebound in shares of companies such as Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Google-parent Alphabet Inc GOOGL.O, which have stumbled badly this year after leading markets higher for more than a decade.
Few believe the Fed will be swayed by a single inflation print, and past rebounds fueled by Fed-related optimism have crumbled this year after discouraging economic data or pushback from policymakers.
At the same time, tech sector valuations remain well above the overall market, while analysts are dimming their profit outlooks for the group.
While lower interest rates could drive near-term demand for the stocks, "we think that there is still going to be some valuation and earnings concern," said James Ragan, director of wealth management research at D.A. Davidson. "We are not really looking for those sectors to retake the leadership of the market."
In the coming week investors will be watching a spate of economic data, including retail sales numbers on Wednesday, for more clues on whether the Fed's monetary policy tightening is cooling the economy.
Tech and growth stocks have been hit hard this year, with the Russell 1000 growth index .RLG still down 25% for 2022, compared to a 16% decline for the S&P 500 .SPX and a 7% fall for the Dow Jones Industrial Average .DJI. Tech sector funds have seen $14.2 billion in outflows so far this year, putting them on track for their first year of outflows since 2016, according to Refinitiv Lipper data.
The price declines have moderated valuations, with the S&P 500 tech sector trading at about 21 times forward earnings estimates versus 28 times at the end of 2021, according to Refinitiv Datastream. That level, which is still above the 17 times earnings commanded by the S&P 500, is still too lofty for some investors.
"The (megacaps) trade at quite a premium to the S&P," said Andrew Slimmon, U.S. equity portfolio manager at Morgan Stanley Investment Management. "There are a series of stocks that will do much better than the megacaps because they have re-rated significantly lower."
Many of the major tech and growth companies, including heavyweights such as including Amazon, Microsoft, Alphabet and Facebook parent Meta Platforms META.O, also recently posted third-quarter earnings reports that soundly disappointed the market.
Tech and tech related companies that represent less than one-fifth of the S&P 500 have so far accounted for over half of the negative profit revisions for the fourth quarter, according to Credit Suisse.
Still, some investors are considering increasing their positions in tech and megacap stocks if further evidence of easing inflation presents itself.
One key factor is whether Treasury yields, which move inversely to prices, continue this week's stunning decline. Higher yields can weigh heavily on tech and growth stocks, whose valuations tend to be based heavily on future profits that are discounted more severely as yields go higher.
The U.S. 10-year yield dropped to a five-week low of 3.818% on Thursday after notching its steepest one-day decline since daily fall in more than a decade.
King Lip, chief strategist at Baker Avenue Asset Management, described Thursday's CPI news - with the annual increase below 8% for the first time in eight months - as a "big deal." If bond yields continue to fall, "the pace at which people are reducing their exposure to these large-cap tech names is going to slow down," he added.
The firm has been underweight large-cap tech and growth stocks, preferring small cap and value shares, Lip said.
Ultimately, much will depend on whether inflation shows more signs of cooling. The Fed will get one more CPI reading before the bank's policymakers gather again in December.
"If inflation continues to subside, tech is a good place to invest right now," said J. Bryant Evans, portfolio manager at Cozad Asset Management. "They certainly could lead the way out in an environment where the Fed is reducing these increases they have been doing on interest rates."
(Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and Richard Chang)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
The views and 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 Lewis Krauskopf NEW YORK, Nov 11 (Reuters) - Hopes that inflation is subsiding are fueling a surge in battered technology and megacap stocks, though some investors believe still-high valuations and doubts over the companies' earnings outlooks may make a sustained reversal elusive. Despite those recent gains, some investors are hesitant to jump on the rebound in shares of companies such as Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Google-parent Alphabet Inc GOOGL.O, which have stumbled badly this year after leading markets higher for more than a decade. In the coming week investors will be watching a spate of economic data, including retail sales numbers on Wednesday, for more clues on whether the Fed's monetary policy tightening is cooling the economy.
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Many of the major tech and growth companies, including heavyweights such as including Amazon, Microsoft, Alphabet and Facebook parent Meta Platforms META.O, also recently posted third-quarter earnings reports that soundly disappointed the market. One key factor is whether Treasury yields, which move inversely to prices, continue this week's stunning decline. Higher yields can weigh heavily on tech and growth stocks, whose valuations tend to be based heavily on future profits that are discounted more severely as yields go higher.
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By Lewis Krauskopf NEW YORK, Nov 11 (Reuters) - Hopes that inflation is subsiding are fueling a surge in battered technology and megacap stocks, though some investors believe still-high valuations and doubts over the companies' earnings outlooks may make a sustained reversal elusive. The price declines have moderated valuations, with the S&P 500 tech sector trading at about 21 times forward earnings estimates versus 28 times at the end of 2021, according to Refinitiv Datastream. Higher yields can weigh heavily on tech and growth stocks, whose valuations tend to be based heavily on future profits that are discounted more severely as yields go higher.
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Few believe the Fed will be swayed by a single inflation print, and past rebounds fueled by Fed-related optimism have crumbled this year after discouraging economic data or pushback from policymakers. The price declines have moderated valuations, with the S&P 500 tech sector trading at about 21 times forward earnings estimates versus 28 times at the end of 2021, according to Refinitiv Datastream. "If inflation continues to subside, tech is a good place to invest right now," said J. Bryant Evans, portfolio manager at Cozad Asset Management.
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18443.0
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2022-11-13 00:00:00 UTC
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These 3 Stocks Were Warren Buffett's Biggest Winners Over the Past 5 Years
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AAPL
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https://www.nasdaq.com/articles/these-3-stocks-were-warren-buffetts-biggest-winners-over-the-past-5-years
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nan
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nan
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When Warren Buffett gets something right, he really gets it right. The legendary investor's stock picks through the years have helped him become one of the wealthiest people on the planet.
But much of Buffett's success has stemmed from decisions he made a long time ago. What are examples of his best picks more recently? Here are Buffett's biggest winners over the past five years -- and whether or not they can keep winning in the future.
1. Apple
In his 2021 letter to Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) shareholders, Buffett wrote that the conglomerate had "four giants." Three of them were Berkshire subsidiaries: the company's insurance businesses (including Geico and General Re), railroad operator BNSF, and energy provider Berkshire Hathaway Energy. But Berkshire doesn't control one of those giants -- Apple (NASDAQ: AAPL).
Currently, Berkshire owns only a 5.8% stake in Apple. However, the tech stock ranks as Berkshire's top holding by far, representing 38.8% of the total portfolio. Buying such a huge position in Apple has proven to be one of Buffett's smartest moves ever. The stock has skyrocketed around 240% over the past five years.
It's no secret why Apple has delivered such a tremendous gain. The company's iPhone remains highly popular, especially with the shift to high-speed 5G networks. Apple's services business has also become a much bigger revenue driver in recent years.
2. Mastercard
Buffett has been a longtime fan of credit card stocks. Berkshire's portfolio includes American Express and Visa. The former ranks as Berkshire's No. 5 holding. But the biggest winner over the past five years has been Mastercard (NYSE: MA).
Mastercard's gain of more than 125% is due in part to a broad-based shift away from cash. A sharp increase in e-commerce also provided a nice boost.
Despite Mastercard's status as one of Buffett's biggest winners in recent years, it's still not one of his favorite stocks. Berkshire reduced its position in Mastercard in the fourth quarter of 2021. Mastercard now makes up only 0.4% of Berkshire's total portfolio.
3. Moody's
Buffett technically didn't decide to invest in Moody's (NYSE: MCO). Berkshire owned shares of Dun & Bradstreet in the past. It received shares of Moody's when D&B spun off the credit rating business in 2000.
While Berkshire later sold its stake in D&B, it retained a position in Moody's. That turned out to be a wise move. The stock more than doubled over the past five years and has delivered more than a 20x gain since the spin-off from D&B.
However, Buffett could have made even more money from his investment in Moody's. He sold some of the stock in 2009. The Oracle of Omaha referred to this as a "billion-dollar mistake" less than two years later.
Can they win in the future?
None of these three stocks are performing very well so far in 2022. Only Mastercard is beating the S&P 500. But can these stocks win in the future? I think so.
Apple remains a great stock to buy for the same reasons it's made Buffett so much money in the past. Demand should continue to be strong for iPhones for a long time to come. Apple has opportunities to extend its smartphone dominance by introducing augmented reality applications.
Mastercard should benefit as digital payments replace cash in many cases. The company could especially profit as open banking (expanding interoperability between financial service providers) picks up momentum.
Moody's has a strong moat with its credit rating business. It also has significant growth potential for its analytics unit.
My view is that Apple, Mastercard, and Moody's should be big winners for Buffett over the next five years. And I think all three are good picks for investors who aren't worth close to $100 billion, too. Warren Buffett doesn't have to be the only person to really get it right.
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American Express is an advertising partner of The Ascent, a Motley Fool company. Keith Speights has positions in Apple, Berkshire Hathaway (B shares), and Mastercard. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), Mastercard, Moody's, and Visa. 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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But Berkshire doesn't control one of those giants -- Apple (NASDAQ: AAPL). Apple remains a great stock to buy for the same reasons it's made Buffett so much money in the past. The company could especially profit as open banking (expanding interoperability between financial service providers) picks up momentum.
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But Berkshire doesn't control one of those giants -- Apple (NASDAQ: AAPL). Berkshire's portfolio includes American Express and Visa. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), Mastercard, Moody's, and Visa.
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But Berkshire doesn't control one of those giants -- Apple (NASDAQ: AAPL). My view is that Apple, Mastercard, and Moody's should be big winners for Buffett over the next five years. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), Mastercard, Moody's, and Visa.
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But Berkshire doesn't control one of those giants -- Apple (NASDAQ: AAPL). My view is that Apple, Mastercard, and Moody's should be big winners for Buffett over the next five years. Keith Speights has positions in Apple, Berkshire Hathaway (B shares), and Mastercard.
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18444.0
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2022-11-12 00:00:00 UTC
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7 No-Brainer Blue-Chip Stocks to Buy for 2023 and Beyond
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AAPL
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https://www.nasdaq.com/articles/7-no-brainer-blue-chip-stocks-to-buy-for-2023-and-beyond
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
While it’s tempting to target the flavors of the week during a market correction, investors ought to spare some time for no-brainer blue-chip stocks to buy for 2023 and beyond. Indeed, the broader market and economic dynamics encourage retail investors to think about value and stability over growth.
Earlier, I laid out the monetary backdrop that should guide investing principles in the new normal. “In the trailing five years since September 2022, the real M2 money stock expanded over 30%. Put another way, money was “cheap” (or inflationary), so it incentivized business growth. However, in the trailing year, M2 declined over 5%, making money “expensive” (deflationary).”
Put another way, companies with deeply established track records should gain significant relevance. You couldn’t ask for a better framework for no-brainer blue-chip stocks to buy. Below are some compelling ideas to consider.
AAPL Apple $149.70
MSFT Microsoft $247.11
ABT Abbott Laboratories $104.09
VEEV Veeva Systems $191.02
ROST Ross Stores $96.17
CTSH Cognizant Technology $58.42
BF-B Brown-Forman $69.64
Apple (AAPL)
Source: Vytautas Kielaitis / Shutterstock.com
Headquartered in Cupertino, California, consumer electronics giant Apple (NASDAQ:AAPL) really needs no introduction. Recently, the company generated buzz when its market performance for the Nov. 10 session added $190.9 billion in market value, a record for a U.S.-listed company. At the time of writing, Apple had a market capitalization of $2.38 trillion, making it the world’s most valuable company.
To be fair, broadly weak consumer sentiment data suggests that companies like Apple should be having a rough time. Not surprisingly, AAPL is down over 19% on a year-to-date basis. However, the fundamentals remain strong. For instance, the company benefited from strong results from its latest product rollout. Therefore, Apple facilitates a powerful case for no-brainer blue-chip stocks to buy.
Financially, AAPL brings excellent value for what you get. The company enjoys blistering performance states for growth and profitability. In addition, Apple provides stability in the balance sheet, particularly its Altman Z-Score of 6.45 reflecting low bankruptcy risk.
Microsoft (MSFT)
Source: Asif Islam / Shutterstock.com
Headquartered in Redmond, Washington, Microsoft (NASDAQ:MSFT) is a software and technology powerhouse. In addition, the company also carved a huge name for itself as a console video game manufacturer. Therefore, the company enjoys a wide canvas of relevancies. At the moment, MSFT features a market cap of $1.84 trillion, making it one of the elites among blue-chip stocks to buy.
Fundamentally, what investors should focus on regarding MSFT is that the underlying company dominates the business ecosystem. For example, it owns 76% of the desktop operating system market share. In other words, if you want to get anything done in the professional realm, you have to be familiar with Microsoft Windows and its business applications.
Financially, Gurufocus.com considers MSFT a modestly undervalued investment based on its proprietary calculations. It’s difficult to argue with this notion. Microsoft enjoys strong revenue growth metrics along with excellent profitability margins that dominate the underlying sector. Additionally, it features a stable balance sheet based on its 7.36 Altman Z-Score.
Abbott Laboratories (ABT)
Source: venusvi / Shutterstock.com
Headquartered in Chicago, Illinois, Abbott Laboratories (NYSE:ABT) is a multinational medical device and health care company. Currently, Abbott sells medical devices, diagnostics, branded generic medicines, and nutritional products. At the time of writing, the enterprise commands a market cap of nearly $181.4 billion. Since the start of the year, ABT dropped 25% in equity value.
To be sure, Abbott carries much baggage. From its baby formula recall to weak medical device sales, the company can’t say it doesn’t deserve any market loss. At the same time, near-term momentum has been picking up. In the trailing five days since the close of the Nov. 10 session, ABT gained 6.5% in value.
Against the bigger picture financially, ABT certainly makes a strong case for blue-chip stocks to buy. Mainly, the company enjoys excellent profit margins. For example, its net margin stands at 17.5%, beating out 82% of the competition. Also, its return on equity (ROE) is 22% compared to the industry median of 0.2%.
Veeva Systems (VEEV)
Source: Blackboard / Shutterstock
Founded in 2007, Veeva Systems (NYSE:VEEV) operates out of Pleasanton, California. Veeva is a cloud-computing company focused on pharmaceutical and life sciences industry applications. At the moment, the enterprise features a market cap of $29.66 billion. Since the beginning of this year, VEEV gave up nearly 27% of its equity value. However, shares are making a comeback, gaining nearly 16% over the trailing month.
Admittedly, the fallout in the market this year has not been kind, especially toward the tech segment. However, with recent data on inflation coming in lighter than expected, it’s possible that the Federal Reserve could relax its monetary tightening policy. If so, that might encourage badly beaten-up investors to consider tech plays like VEEV.
Now, what makes Veeva one of the blue-chip stocks to buy centers on its financial resilience. Primarily, the company enjoys a stout balance sheet. For instance, its cash-to-debt ratio stands at 46 times, ranked better than 87% of its rivals. Also, the enterprise carries outstanding profit margins that also rank among the sector’s elite.
Ross Stores (ROST)
Source: Rawpixel.com / Shutterstock
Headquartered in Dublin, California, Ross Stores (NASDAQ:ROST) is a chain of discount department stores. Per its public profile, the company is the largest off-price retailer in the U.S. Presently, Ross Stores carries a market cap of $33.38 billion. Since the start of the year, ROST slipped more than 14%. Still, the stock is outperforming the benchmark S&P 500 index.
Obviously, the big concern for ROST that works against its inclusion among the blue-chip stocks to buy centers on sentiment. With the consumer taking a beating from high inflation and now rising layoffs, not too many folks are interested in opening their wallets unnecessarily. However, with remote work facing a possible paradigm shift as employees lose leverage to employers, many folks might be forced to upgrade their professional wardrobes.
Cynically, that’s a big plus for Ross Stores. While it’s a tricky narrative, it’s still worth considering for blue-chip stocks to buy. On a final note, the company impresses on the income statement, particularly its strong operating and net margins.
Cognizant Technology (CTSH)
Source: Peshkova / Shutterstock
Based in New Jersey, Cognizant Technology (NASDAQ:CTSH) is an American multinational information technology services and consulting company. Cognizant provides myriad solutions, including business process services, cloud-computing applications, industrial automation, and artificial intelligence. At the time of writing, Cognizant carries a market cap of $30 billion.
Since the January opener, CTSH stock gave up 36% of its equity value. As with other tech-related blue-chip stocks to buy, macroeconomic headwinds imposed a dark cloud over the broader industry. Nevertheless, enthusiasm is finally returning to the space, with CTSH gaining nearly 9% over the trailing five days. While it still has a ways to go, this might be the start of something interesting.
Financially, CTSH will likely attract investors seeking blue-chip stocks to buy because it’s deeply undervalued. Shares trade at 12.2 times forward earnings, comparing favorably to the industry median of 22.2 times. Also, the company features a stable balance sheet with an Altman Z-Score of over 6, reflecting low bankruptcy risk.
Brown-Forman (BF-B)
Source: Shutterstock
Headquartered in Louisville, Kentucky, Brown-Forman (NYSE:BF-B) is one of the largest companies in the spirits and wine industry. It features some iconic brands including Jack Daniel’s, Old Forester, and Woodford Reserve. At the time of writing, Brown-Forman commands a market cap of $33.48 billion. Since the start of the year, BF.B declined by 2.4% in the charts.
Interestingly, though, over the trailing month, BF.B gained 8%. At least some of this enthusiasm might be traced to the underlying fundamentals. According to TipRanks, “during a recession, consumers are likely to increase alcohol consumption at home, while companies in the space retain fantastic pricing power during such periods.” Further, with people likely to seek escapism from troubling headlines, Brown-Forman could jump higher on cynical catalysts.
Financially, what may impress market observers the most is the company’s high business quality. It features an ROE of 32.7%, beating out more than 90% of its competitors. Also, it has a return on assets of 13.9%, above more than 86% of the industry.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
The post 7 No-Brainer Blue-Chip Stocks to Buy for 2023 and Beyond appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAPL Apple $149.70 MSFT Microsoft $247.11 ABT Abbott Laboratories $104.09 VEEV Veeva Systems $191.02 ROST Ross Stores $96.17 CTSH Cognizant Technology $58.42 BF-B Brown-Forman $69.64 Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Headquartered in Cupertino, California, consumer electronics giant Apple (NASDAQ:AAPL) really needs no introduction. Not surprisingly, AAPL is down over 19% on a year-to-date basis. Financially, AAPL brings excellent value for what you get.
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AAPL Apple $149.70 MSFT Microsoft $247.11 ABT Abbott Laboratories $104.09 VEEV Veeva Systems $191.02 ROST Ross Stores $96.17 CTSH Cognizant Technology $58.42 BF-B Brown-Forman $69.64 Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Headquartered in Cupertino, California, consumer electronics giant Apple (NASDAQ:AAPL) really needs no introduction. Not surprisingly, AAPL is down over 19% on a year-to-date basis. Financially, AAPL brings excellent value for what you get.
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AAPL Apple $149.70 MSFT Microsoft $247.11 ABT Abbott Laboratories $104.09 VEEV Veeva Systems $191.02 ROST Ross Stores $96.17 CTSH Cognizant Technology $58.42 BF-B Brown-Forman $69.64 Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Headquartered in Cupertino, California, consumer electronics giant Apple (NASDAQ:AAPL) really needs no introduction. Not surprisingly, AAPL is down over 19% on a year-to-date basis. Financially, AAPL brings excellent value for what you get.
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AAPL Apple $149.70 MSFT Microsoft $247.11 ABT Abbott Laboratories $104.09 VEEV Veeva Systems $191.02 ROST Ross Stores $96.17 CTSH Cognizant Technology $58.42 BF-B Brown-Forman $69.64 Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Headquartered in Cupertino, California, consumer electronics giant Apple (NASDAQ:AAPL) really needs no introduction. Not surprisingly, AAPL is down over 19% on a year-to-date basis. Financially, AAPL brings excellent value for what you get.
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18445.0
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2022-11-12 00:00:00 UTC
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Alibaba mum on Singles Day sales tally, says in line with 2021
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AAPL
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https://www.nasdaq.com/articles/alibaba-mum-on-singles-day-sales-tally-says-in-line-with-2021
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nan
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By Casey Hall
SHANGHAI, Nov 12 (Reuters) - Alibaba Group 9988.HK opted not to disclose the final sales tally of its annual Singles Day shopping festival for the first time since it started the event in 2009, saying only that results were in line with last year.
Last year's 8.5% rise in gross merchandise value (GMV) for Alibaba's platforms had been its lowest yet, following a 26% jump in 2020. Before 2020, the festival was a one-day event.
The e-commerce platform said in a press release early on Saturday that the event had "delivered results in line with last year's GMV performance despite macro challenges and COVID-related impact."
Growth has been slowing in recent editions of Singles Day - the world's biggest online shopping festival that has, despite its name, evolved into a lengthy event and become a barometer of Chinese retail demand.
Other indicators showed that Chinese consumers clutched their wallets tight this year and continued seeking relatively economical home brands over pricier expensive labels, as consumer sentiment has been hit by stringent COVID-19 curbs and a sharply slowing economy.
Singles Day growth this year had been widely predicted at flat to low single digits.
Alibaba did not respond to requests for comment on its decision to avoid releasing figures on the 11-day sales event ended that ended on Friday.
Yang Zengdong, 40, a teacher in Shanghai, said she had second thoughts about participating in Singles Day at all this year, but when the final sales period started on Thursday evening, she ended up purchasing about the same amount as last year.
"I think it's something deep in the mind of Chinese people that if you don't buy on Singles Day, you are missing out on an opportunity," she said.
Consultancy Syntun on Saturday estimated Alibaba and other Chinese e-commerce firms holding Singles Day shopping events together logged 934 billion yuan in sales, up 2.9%.
Citi analysts said this week they were conservatively forecasting Alibaba's GMV for the event to range from 545 billion yuan to 560 billion yuan ($75 billion to $77 billion), with growth of 0.9% to 3.6%.
The e-commerce giant has for over a year toned down hype around the event as Chinese President Xi Jinping increasingly emphasises "common prosperity" - a push that seeks to eliminate growing wealth inequities and clamp down on what the Communist Party sees as excessive behaviour.
Alibaba did not hold its usual celebrity-studded gala this year or any in-person media events, citing the pandemic.
The company's Tmall marketplace offered Singles Day deals on more than 17 million products, 3 million more than last year, with a record-matching 290,000 brands participating.
Alibaba did not say which brands sold well but said sales of high-tech beauty devices, such as gadgets to cool and lift facial skin, had surged some 5,570% from last year, while carpet cleaners and smart kitchen appliances had been selling extremely well.
Rival JD.com also did not publish GMV or sales growth but said Apple Inc AAPL.O sold over 1 billion yuan ($140 million) worth of products in the first minute of the event's final sales period on Thursday evening, which is marked by deeper discounts.
During those 10 minutes, turnover for 87 international beauty brands, including Estee Lauder EL.N, L'Oreal OPREP.PA and L'Occitane 0973.HK, tripled from last year, JD.com said.
($1 = 7.1066 Chinese yuan renminbi)
Posh ice cream, craft beer in vogue as Chinese downsize their love of luxury
Chinese brands outnumber foreign names among Singles Day best-sellers
(Reporting by Casey Hall and Sophie Yu; Editing by Brenda Goh, Edwina Gibbs, Richard Chang, Cynthia Osterman and William Mallard)
((Casey.Hall@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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Rival JD.com also did not publish GMV or sales growth but said Apple Inc AAPL.O sold over 1 billion yuan ($140 million) worth of products in the first minute of the event's final sales period on Thursday evening, which is marked by deeper discounts. By Casey Hall SHANGHAI, Nov 12 (Reuters) - Alibaba Group 9988.HK opted not to disclose the final sales tally of its annual Singles Day shopping festival for the first time since it started the event in 2009, saying only that results were in line with last year. The e-commerce giant has for over a year toned down hype around the event as Chinese President Xi Jinping increasingly emphasises "common prosperity" - a push that seeks to eliminate growing wealth inequities and clamp down on what the Communist Party sees as excessive behaviour.
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Rival JD.com also did not publish GMV or sales growth but said Apple Inc AAPL.O sold over 1 billion yuan ($140 million) worth of products in the first minute of the event's final sales period on Thursday evening, which is marked by deeper discounts. Yang Zengdong, 40, a teacher in Shanghai, said she had second thoughts about participating in Singles Day at all this year, but when the final sales period started on Thursday evening, she ended up purchasing about the same amount as last year. Consultancy Syntun on Saturday estimated Alibaba and other Chinese e-commerce firms holding Singles Day shopping events together logged 934 billion yuan in sales, up 2.9%.
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Rival JD.com also did not publish GMV or sales growth but said Apple Inc AAPL.O sold over 1 billion yuan ($140 million) worth of products in the first minute of the event's final sales period on Thursday evening, which is marked by deeper discounts. By Casey Hall SHANGHAI, Nov 12 (Reuters) - Alibaba Group 9988.HK opted not to disclose the final sales tally of its annual Singles Day shopping festival for the first time since it started the event in 2009, saying only that results were in line with last year. Consultancy Syntun on Saturday estimated Alibaba and other Chinese e-commerce firms holding Singles Day shopping events together logged 934 billion yuan in sales, up 2.9%.
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Rival JD.com also did not publish GMV or sales growth but said Apple Inc AAPL.O sold over 1 billion yuan ($140 million) worth of products in the first minute of the event's final sales period on Thursday evening, which is marked by deeper discounts. The e-commerce platform said in a press release early on Saturday that the event had "delivered results in line with last year's GMV performance despite macro challenges and COVID-related impact." Consultancy Syntun on Saturday estimated Alibaba and other Chinese e-commerce firms holding Singles Day shopping events together logged 934 billion yuan in sales, up 2.9%.
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18446.0
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2022-11-11 00:00:00 UTC
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Here's My Top Growth Stock to Buy Now
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AAPL
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https://www.nasdaq.com/articles/heres-my-top-growth-stock-to-buy-now-15
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nan
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nan
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It's extremely difficult to create a successful clothing business. Not only is competition incredibly fierce -- since customers essentially have an unlimited number of shopping choices at their disposal -- but building a durable brand is a tough challenge. Consumer tastes are constantly changing, so what's popular today might not be in the future.
A business that has thrived despite the industry's inherent obstacles is none other than athleisure pioneer Lululemon Athletica (NASDAQ: LULU). Once known only for its women's yoga pants, the company has developed into a full-blown lifestyle enterprise, and investors need to pay attention.
Lululemon's shares are down about 18% in 2022. But despite the poor performance, this unstoppable apparel company is my top growth stock to buy right now.
Weathering the storm
While many companies face dramatic slowdowns as a result of the worsening macroeconomic picture, Lululemon continues posting outstanding financial results. In the latest fiscal quarter (ended July 31), the business saw revenue and same-store sales soar 29% and 23%, respectively, year over year. And diluted earnings per share were up 42% compared to Q2 2021. For the just-ended quarter, management expects sales to jump 23% to 24% from the prior-year period, signaling no meaningful deceleration in the business.
Lululemon is a very profitable enterprise, too. Over the trailing-12-month period, the company generated operating profits of $1.5 billion on $7.1 billion of revenue, good for a 21.6% margin. And Lululemon's gross margin is superb, coming in at 56.5% in the most recent quarter. That's better than the likes of Apple, Ferrari, and Starbucks.
A wide gross margin allows Lululemon to better handle the inflationary environment and the impact it may have on the company's cost structure. What's more, it demonstrates customers' willingness to pay up for what they deem to be a quality product. That's a favorable position for Lululemon.
A strong brand
Lululemon's remarkable success over the past 15 years has been surprising, given just how competitive the apparel industry is. Direct rivals like Nike, Adidas, and Under Armour, offer consumers high-quality merchandise similar to Lululemon's. But Lululemon has carved out a niche at the premium-priced end of the apparel spectrum.
The business has built up a powerful brand, not by relying on expensive endorsements with major professional athletes, like its competitors do, but with a community-based approach. Lululemon hires ambassadors in the various communities it serves to promote and build a local, grassroots following for the brand. Events and workout classes are also offered. The result is deeper engagement and more meaningful connections with its potential customer base -- and clearly great financial success, too.
Ambitious goals
Investors would be mistaken to think that Lululemon's past growth is coming to an end. Earlier this year, management, led by CEO Calvin McDonald, laid out a five-year financial plan. They set a clear target to reach $12.5 billion in sales by fiscal 2026, which would be roughly double fiscal 2021's revenue. That's solid growth on the horizon that shareholders can get excited about, despite any near-term uncertainty in the macroeconomic environment.
To achieve this financial goal, there will be three key areas of focus. Management wants to double digital and men's sales, while quadrupling the international business. What's outstanding is that Lululemon already generates 42% of revenue from digital channels, so a greater focus on omnichannel going forward is nice to see. Furthermore, pushing for growth in the men's segment will help the brand broaden its appeal, a far cry from when Lululemon mainly sold popular yoga pants to women.
And touching on international, right now the company gets 83% of its revenue from the U.S. and Canada. Compare this to Nike with 57% of fiscal 2023 first-quarter (ended Aug. 31) sales coming from outside North America. This means Lululemon has a massive opportunity to take market share in foreign markets, particularly in China, where the business currently operates 79 stores.
With solid recent results, a powerful brand, and excellent growth prospects, Lululemon stock definitely merits a closer look from investors.
10 stocks we like better than Lululemon Athletica
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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Lululemon Athletica, Nike, Starbucks, and Under Armour (C Shares). The Motley Fool recommends Under Armour (A Shares) 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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Not only is competition incredibly fierce -- since customers essentially have an unlimited number of shopping choices at their disposal -- but building a durable brand is a tough challenge. The business has built up a powerful brand, not by relying on expensive endorsements with major professional athletes, like its competitors do, but with a community-based approach. Furthermore, pushing for growth in the men's segment will help the brand broaden its appeal, a far cry from when Lululemon mainly sold popular yoga pants to women.
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With solid recent results, a powerful brand, and excellent growth prospects, Lululemon stock definitely merits a closer look from investors. The Motley Fool has positions in and recommends Apple, Lululemon Athletica, Nike, Starbucks, and Under Armour (C Shares). The Motley Fool recommends Under Armour (A Shares) 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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With solid recent results, a powerful brand, and excellent growth prospects, Lululemon stock definitely merits a closer look from investors. 10 stocks we like better than Lululemon Athletica When our award-winning analyst team has a stock tip, it can pay to listen. The Motley Fool has positions in and recommends Apple, Lululemon Athletica, Nike, Starbucks, and Under Armour (C Shares).
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Management wants to double digital and men's sales, while quadrupling the international business. With solid recent results, a powerful brand, and excellent growth prospects, Lululemon stock definitely merits a closer look from investors. The Motley Fool has positions in and recommends Apple, Lululemon Athletica, Nike, Starbucks, and Under Armour (C Shares).
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18447.0
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2022-11-11 00:00:00 UTC
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Apple Inc. (AAPL) is Attracting Investor Attention: Here is What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-inc.-aapl-is-attracting-investor-attention%3A-here-is-what-you-should-know-2
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nan
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nan
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Apple (AAPL) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this maker of iPhones, iPads and other products have returned +2.7%, compared to the Zacks S&P 500 composite's +9.6% change. During this period, the Zacks Computer - Mini computers industry, which Apple falls in, has gained 4.9%. 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
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
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.
Apple is expected to post earnings of $2.05 per share for the current quarter, representing a year-over-year change of -2.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -4.5%.
The consensus earnings estimate of $6.32 for the current fiscal year indicates a year-over-year change of +3.4%. This estimate has changed -2.9% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $6.83 indicates a change of +8.1% from what Apple is expected to report a year ago. Over the past month, the estimate has changed -1.8%.
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
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Apple, the consensus sales estimate for the current quarter of $125.6 billion indicates a year-over-year change of +1.3%. For the current and next fiscal years, $408.82 billion and $430.61 billion estimates indicate +3.7% and +5.3% 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
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Apple is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
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.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) has been one of the most searched-for stocks on Zacks.com lately. Apple Inc. (AAPL): Free Stock Analysis Report 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 been one of the most searched-for stocks on Zacks.com lately. Apple Inc. (AAPL): Free Stock Analysis Report For the next fiscal year, the consensus earnings estimate of $6.83 indicates a change of +8.1% from what Apple is expected to report a year ago.
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Apple (AAPL) has been one of the most searched-for stocks on Zacks.com lately. Apple Inc. (AAPL): Free Stock Analysis Report 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 been one of the most searched-for stocks on Zacks.com lately. Apple Inc. (AAPL): Free Stock Analysis Report EPS of $1.29 for the same period compares with $1.24 a year ago.
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18448.0
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2022-11-11 00:00:00 UTC
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After Hours Most Active for Nov 11, 2022 : AAPL, INTC, QQQ, VALE, AAXJ, MRO, AMZN, MSFT, BAC, XOM, TECK, T
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-nov-11-2022-%3A-aapl-intc-qqq-vale-aaxj-mro-amzn-msft-bac-xom
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -11.63 to 11,805.38. The total After hours volume is currently 75,546,278 shares traded.
The following are the most active stocks for the after hours session:
Apple Inc. (AAPL) is -0.23 at $149.47, with 3,218,825 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 $1.51. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Intel Corporation (INTC) is +0.01 at $30.44, with 2,808,565 shares traded. INTC's current last sale is 101.47% of the target price of $30.
Invesco QQQ Trust, Series 1 (QQQ) is +0.02 at $287.98, with 2,485,128 shares traded. This represents a 13.26% increase from its 52 Week Low.
VALE S.A. (VALE) is -0.05 at $15.40, with 2,221,656 shares traded. VALE's current last sale is 96.25% of the target price of $16.
iShares MSCI All Country Asia ex Japan Index Fund (AAXJ) is -0.1577 at $63.26, with 2,000,376 shares traded. This represents a 16.31% increase from its 52 Week Low.
Marathon Oil Corporation (MRO) is unchanged at $32.88, with 1,949,729 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $0.97. As reported by Zacks, the current mean recommendation for MRO is in the "buy range".
Amazon.com, Inc. (AMZN) is -0.18 at $100.61, with 1,861,033 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Microsoft Corporation (MSFT) is -0.07 at $247.04, with 1,852,581 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Bank of America Corporation (BAC) is unchanged at $38.41, with 1,531,373 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. The consensus EPS forecast is $0.85. As reported by Zacks, the current mean recommendation for BAC is in the "buy range".
Exxon Mobil Corporation (XOM) is -0.08 at $113.87, with 1,248,147 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. The consensus EPS forecast is $3.21. As reported by Zacks, the current mean recommendation for XOM is in the "buy range".
Teck Resources Ltd (TECK) is unchanged at $35.02, with 1,110,640 shares traded. Over the last four weeks they have had 8 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. The consensus EPS forecast is $0.98. As reported by Zacks, the current mean recommendation for TECK is in the "buy range".
AT&T Inc. (T) is -0.01 at $19.04, with 1,042,866 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. The consensus EPS forecast is $0.58. T's current last sale is 84.62% 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 -0.23 at $149.47, with 3,218,825 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 -0.23 at $149.47, with 3,218,825 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023.
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Apple Inc. (AAPL) is -0.23 at $149.47, with 3,218,825 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023.
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Apple Inc. (AAPL) is -0.23 at $149.47, with 3,218,825 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 -11.63 to 11,805.38.
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18449.0
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2022-11-11 00:00:00 UTC
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Nasdaq, S&P 500 end sharply higher, fueled by inflation optimism
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AAPL
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https://www.nasdaq.com/articles/nasdaq-sp-500-end-sharply-higher-fueled-by-inflation-optimism
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nan
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nan
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By Noel Randewich and Sruthi Shankar
Nov 11 (Reuters) - The S&P 500 and Nasdaq ended sharply higher on Friday, extending a rally started the day before after a soft inflation reading raised hopes the Federal Reserve would get less aggressive with U.S. interest rate hikes.
Amazon AMZN.Ojumped 4.3%, with Apple AAPL.O and Microsoft MSFT.O both up more than 1% and contributing to the Nasdaq's gain.
On Thursday, the S&P 500 and the Nasdaq racked up their biggest daily percentage gains in more than 2-1/2 years as annual inflation slipped below 8% for the first time in eight months.
Declines in healthcare stocks limited the Dow Jones Industrial Average's gain, with UnitedHealth Group UNH.N down 4.1% for the day.
"What we're really seeing today is simply a follow-through on yesterday. There's a lot of cash sitting on the sidelines that is being put to work," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.
"Perhaps it signals some type of bottom being put in the market, some type of line drawn in the sand. But even if we put in a bottom, we're a long way away from setting new highs,” Ghriskey said.
Investors see an 81% chance of a 50-basis point rate hike in December and a 19% chance of a 75-basis point hike, according to CME Fedwatch tool.
Adding some nervousness on Wall Street, crypto exchange FTX said it would start U.S. bankruptcy proceedings and that CEO Sam Bankman-Fried resigned due to a liquidity crisis that prompted intervention from regulators around the world.
The S&P 500 climbed 0.93% to end the session at 3,993.05 points.
The Nasdaq gained 1.88% to 11,323.33 points, while Dow Jones Industrial Average rose 0.10% to 33,749.18 points.
Volume on U.S. exchanges was relatively heavy, with 13.5 billion shares traded, compared to an average of 12.0 billion shares over the previous 20 sessions.
Of the 11 S&P 500 sector indexes, six rose, led by energy .SPNY, up 3.07%, followed by a 2.48% gain in communication services .SPLRCL.
The S&P 500 growth index .IGX, which includes interest rate-sensitive technology stocks, rose 1.6%, beating the value index's .IVX gain of 0.3%.
For the week, the S&P 500 rose 5.9%, the Dow added 4.15% and the Nasdaq jumped 8.1%. It was the S&P 500's biggest weekly gain since June and the Nasdaq's largest weekly gain since March.
Worries about an economic downturn have hammered Wall Street this year. The S&P 500 remains down about 16% year to date, on course for its biggest annual decline since 2008.
U.S.-listed shares of Chinese companies rose, with Alibaba Group Holding Ltd BABA.N gaining 1.4% after China eased some of its strict COVID-19 rules.
Advancing issues outnumbered falling ones within the S&P 500 .AD.SPX by a 1.7-to-one ratio.
The S&P 500 posted 22 new highs and no new lows; the Nasdaq recorded 102 new highs and 110 new lows.
(Reporting by Shubham Batra, Sruthi Shankar, Devik Jain, Bansari Mayur Kamdar and Shashwat Chauhan in Bengaluru, and by Noel Randewich in Oakland, California; Editing by Shounak Dasgupta, Arun Koyyur and David Gregorio)
((noel.randewich@tr.com; Twitter: @randewich))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Amazon AMZN.Ojumped 4.3%, with Apple AAPL.O and Microsoft MSFT.O both up more than 1% and contributing to the Nasdaq's gain. By Noel Randewich and Sruthi Shankar Nov 11 (Reuters) - The S&P 500 and Nasdaq ended sharply higher on Friday, extending a rally started the day before after a soft inflation reading raised hopes the Federal Reserve would get less aggressive with U.S. interest rate hikes. Adding some nervousness on Wall Street, crypto exchange FTX said it would start U.S. bankruptcy proceedings and that CEO Sam Bankman-Fried resigned due to a liquidity crisis that prompted intervention from regulators around the world.
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Amazon AMZN.Ojumped 4.3%, with Apple AAPL.O and Microsoft MSFT.O both up more than 1% and contributing to the Nasdaq's gain. By Noel Randewich and Sruthi Shankar Nov 11 (Reuters) - The S&P 500 and Nasdaq ended sharply higher on Friday, extending a rally started the day before after a soft inflation reading raised hopes the Federal Reserve would get less aggressive with U.S. interest rate hikes. Declines in healthcare stocks limited the Dow Jones Industrial Average's gain, with UnitedHealth Group UNH.N down 4.1% for the day.
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Amazon AMZN.Ojumped 4.3%, with Apple AAPL.O and Microsoft MSFT.O both up more than 1% and contributing to the Nasdaq's gain. By Noel Randewich and Sruthi Shankar Nov 11 (Reuters) - The S&P 500 and Nasdaq ended sharply higher on Friday, extending a rally started the day before after a soft inflation reading raised hopes the Federal Reserve would get less aggressive with U.S. interest rate hikes. The Nasdaq gained 1.88% to 11,323.33 points, while Dow Jones Industrial Average rose 0.10% to 33,749.18 points.
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Amazon AMZN.Ojumped 4.3%, with Apple AAPL.O and Microsoft MSFT.O both up more than 1% and contributing to the Nasdaq's gain. But even if we put in a bottom, we're a long way away from setting new highs,” Ghriskey said. The Nasdaq gained 1.88% to 11,323.33 points, while Dow Jones Industrial Average rose 0.10% to 33,749.18 points.
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18450.0
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2022-11-11 00:00:00 UTC
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US STOCKS-Nasdaq and S&P 500 end higher, fueled by inflation optimism
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-and-sp-500-end-higher-fueled-by-inflation-optimism
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nan
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nan
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By Noel Randewich and Sruthi Shankar
Nov 11 (Reuters) - The S&P 500 and Nasdaq ended higher on Friday, extending a rally started the day before after a soft inflation reading raised hopes the Federal Reserve would get less aggressive with U.S. interest rate hikes.
Amazon AMZN.O jumped, with Apple AAPL.O and Microsoft MSFT.Oalso making gains and contributing to the Nasdaq's strong gain.
On Thursday, the S&P 500 and the Nasdaq racked up their biggest daily percentage gains in more than 2-1/2 years as annual inflation slipped below 8% for the first time in eight months.
Declines in healthcare stocks weighed on the Dow Jones Industrial Average, with UnitedHealth Group UNH.Ndown for the day.
"What we're really seeing today is simply a follow-through on yesterday. There's a lot of cash sitting on the sidelines that is being put to work," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.
"Perhaps it signals some type of bottom being put in the market, some type of line drawn in the sand. But even if we put in a bottom, we're a long way away from setting new highs,” Ghriskey said.
Investors see an 81% chance of a 50-basis point rate hike in December and a 19% chance of a 75-basis point hike, according to CME Fedwatch tool.
Adding some nervousness on Wall Street, crypto exchange FTX said it would start U.S. bankruptcy proceedings and that CEO Sam Bankman-Fried resigned due to a liquidity crisis that prompted intervention from regulators around the world.
According to preliminary data, the S&P 500 .SPX gained 35.76 points, or 0.90%, to end at 3,992.13 points, while the Nasdaq Composite .IXIC gained 205.30 points, or 1.85%, to 11,319.44. The Dow Jones Industrial Average .DJI rose 29.61 points, or 0.09%, to 33,742.61.
Worries about an economic downturn have hammered Wall Street this year. The S&P 500 remains down about 16% year to date, on course for its biggest annual decline since 2008.
U.S.-listed shares of Chinese companies rose, with Alibaba Group Holding Ltd > gaining after China eased some of its strict COVID-19 rules.
(Reporting by Shubham Batra, Sruthi Shankar, Devik Jain, Bansari Mayur Kamdar and Shashwat Chauhan in Bengaluru, and by Noel Randewich in Oakland, California; Editing by Shounak Dasgupta, Arun Koyyur and David Gregorio)
((noel.randewich@tr.com; Twitter: @randewich))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Amazon AMZN.O jumped, with Apple AAPL.O and Microsoft MSFT.Oalso making gains and contributing to the Nasdaq's strong gain. By Noel Randewich and Sruthi Shankar Nov 11 (Reuters) - The S&P 500 and Nasdaq ended higher on Friday, extending a rally started the day before after a soft inflation reading raised hopes the Federal Reserve would get less aggressive with U.S. interest rate hikes. Adding some nervousness on Wall Street, crypto exchange FTX said it would start U.S. bankruptcy proceedings and that CEO Sam Bankman-Fried resigned due to a liquidity crisis that prompted intervention from regulators around the world.
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Amazon AMZN.O jumped, with Apple AAPL.O and Microsoft MSFT.Oalso making gains and contributing to the Nasdaq's strong gain. Declines in healthcare stocks weighed on the Dow Jones Industrial Average, with UnitedHealth Group UNH.Ndown for the day. According to preliminary data, the S&P 500 .SPX gained 35.76 points, or 0.90%, to end at 3,992.13 points, while the Nasdaq Composite .IXIC gained 205.30 points, or 1.85%, to 11,319.44.
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Amazon AMZN.O jumped, with Apple AAPL.O and Microsoft MSFT.Oalso making gains and contributing to the Nasdaq's strong gain. By Noel Randewich and Sruthi Shankar Nov 11 (Reuters) - The S&P 500 and Nasdaq ended higher on Friday, extending a rally started the day before after a soft inflation reading raised hopes the Federal Reserve would get less aggressive with U.S. interest rate hikes. According to preliminary data, the S&P 500 .SPX gained 35.76 points, or 0.90%, to end at 3,992.13 points, while the Nasdaq Composite .IXIC gained 205.30 points, or 1.85%, to 11,319.44.
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Amazon AMZN.O jumped, with Apple AAPL.O and Microsoft MSFT.Oalso making gains and contributing to the Nasdaq's strong gain. But even if we put in a bottom, we're a long way away from setting new highs,” Ghriskey said. According to preliminary data, the S&P 500 .SPX gained 35.76 points, or 0.90%, to end at 3,992.13 points, while the Nasdaq Composite .IXIC gained 205.30 points, or 1.85%, to 11,319.44.
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18451.0
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2022-11-11 00:00:00 UTC
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3 Ways to Follow Warren Buffett to Massive Long-Term Gains
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AAPL
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https://www.nasdaq.com/articles/3-ways-to-follow-warren-buffett-to-massive-long-term-gains
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Aside from holding Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) stock, which is a conglomerate holding some of the best-quality businesses in the world, investors have a number of ways to ride the coattails of Warren Buffett to long-term gains.
Of course, investors can always simply buy the entire basket, and opt for Berkshire stock outright. That’s a strategy I, and many others, have taken.
That said, I think there is also value in paring down Mr. Buffett’s portfolio into categories or sectors. This approach is one I think is worth considering, because it indicates directionally how Buffett is thinking about the market at a particular time.
Investors will certainly want to note, for example, that Warren Buffett has been re-orientating his portfolio toward energy for the better part of the past two years. Buffett’s view appears to be that energy exposure is a great hedge against inflation and more geopolitical conflict. Additionally, many energy companies are excellent operators and produce incredible cash flows and dividends (which he’s historically preferred).
Then there’s the tech sector, dominated by a company we’ll get to on this list. It’s important to have some component of high-quality growth in one’s portfolio, and there’s plenty to be found in Berkshire right now.
Finally, directional exposure to the U.S. consumer makes sense for most long-term investors. Finding companies that continue to grow alongside the broader economy is a great way to grow one’s wealth.
These three stocks are perhaps among the best in Buffett’s portfolio right now, representing excellent wealth-generating assets for long-term investors.
OXY Occidental Petroleum $70.48
AXP American Express $154.75
AAPL Apple $146.87
Occidental Petroleum (OXY)
Source: T. Schneider / Shutterstock.com
Houston-based hydrocarbon exploration company Occidental Petroleum (NYSE:OXY) has been among the biggest additions Warren Buffett has made over the past year. This move has proven to be prudent, given Occidental’s price performance increase of more than 130% this year. Notably, Buffett has been adding millions of shares for several quarters now, suggesting that he’s betting that the energy trade is far from over.
Of course, one of the primary reasons oil stocks have outperformed the market is the relatively high prices at which crude oil has been trading. There’s always some risk that oil prices will decline, if demand is hit hard enough by central banks. However, Warren Buffett appears to be sticking with this pick, and buying on weakness.
Investors will hope for Occidental Petroleum to show strength as it approaches its next earnings release. The company is expected to report earnings per share of $2.48, a 185.06% increase over the prior-year quarter. The most recent consensus forecast calls for quarterly revenue of $9.35 billion, a 37.25% increase over the previous year.
Valuation is also important, so investors should be aware that Occidental Petroleum currently has a forward price-earnings ratio of 10.35 times. Occidental Petroleum ranks eighth in the Oil & Gas-Exploration and Production industry group and seems to be an exciting buy option for investors right now. At least, Warren Buffett thinks so.
American Express (AXP)
Source: First Class Photography / Shutterstock.com
American Express (NYSE:AXP) has long been one of the most desirable brands in the market. This is why many consumers are willing to pay nearly $700 per year for the American Express Platinum card.
American Express earns a decent living by charging these subscription fees on several card programs, such as its Platinum and Gold cards. Apart from the company’s credit card lending business, American Express also operates an end-to-end payments network that facilitates payment transactions between consumers and merchants. The revenue from these transactions is the company’s largest revenue generator.
The New York City-based company expects full-year earnings to exceed its forecast of $9.25 to $9.65 per share. Analysts are already forecasting full-year earnings of around $9.92 per share.
American Express maintains its full-year revenue growth forecast of 23% to 25%. This statement came after American Express reported higher revenue in the previous quarter. For those looking for long-term exposure to the American consumer, there’s perhaps no better way to go than AXP stock right now.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
No list of Warren Buffett stocks is complete without discussing Apple (NASDAQ:AAPL), the most valuable company in the world for much of the past decade. This is one of the Oracle of Omaha’s best bets in recent years, and it’s also his biggest holding (for good reason).
In fact, Berkshire Hathaway’s Apple holdings increased in value by $9.8 billion during the first half of 2022. This was driven in part by a surge in Apple stock of nearly 7% following a strong earnings report. While the stock’s recent performance hasn’t been great (along with the entire market), this is a long-term winner for Warren Buffett. Berkshire Hathaway began buying Apple stock in 2016 and now owns 887,136,000 shares of the iPhone maker. This is more than 5% of Apple’s outstanding stock.
Apple pays out regular dividends, which Buffett considers appealing to his investing philosophy. Buffett has also argued that Apple’s iPhone ecosystem is “sticky”. This encourages customers to upgrade regularly, making it a safer investment as a consumer company rather than a tech company.
Furthermore, Apple’s revenue increased 8% year-over-year to $90.1 billion in Q4 2022, with multiple segments outperforming Q4 2021. Its iPhone segment revenue of $42.63 billion surpassed the previous year’s $38.87 billion, while Mac revenue of $11.51 billion increased from $9.18 billion in Q4 2021. With several PC companies experiencing decreased demand, Apple’s 25% growth in its Mac segment demonstrates the potency of its products.
On the date of publication, Chris MacDonald has a LONG position in BRK-B and AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
The post 3 Ways to Follow Warren Buffett to Massive Long-Term Gains 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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OXY Occidental Petroleum $70.48 AXP American Express $154.75 AAPL Apple $146.87 Occidental Petroleum (OXY) Source: T. Schneider / Shutterstock.com Houston-based hydrocarbon exploration company Occidental Petroleum (NYSE:OXY) has been among the biggest additions Warren Buffett has made over the past year. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com No list of Warren Buffett stocks is complete without discussing Apple (NASDAQ:AAPL), the most valuable company in the world for much of the past decade. On the date of publication, Chris MacDonald has a LONG position in BRK-B and AAPL.
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OXY Occidental Petroleum $70.48 AXP American Express $154.75 AAPL Apple $146.87 Occidental Petroleum (OXY) Source: T. Schneider / Shutterstock.com Houston-based hydrocarbon exploration company Occidental Petroleum (NYSE:OXY) has been among the biggest additions Warren Buffett has made over the past year. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com No list of Warren Buffett stocks is complete without discussing Apple (NASDAQ:AAPL), the most valuable company in the world for much of the past decade. On the date of publication, Chris MacDonald has a LONG position in BRK-B and AAPL.
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OXY Occidental Petroleum $70.48 AXP American Express $154.75 AAPL Apple $146.87 Occidental Petroleum (OXY) Source: T. Schneider / Shutterstock.com Houston-based hydrocarbon exploration company Occidental Petroleum (NYSE:OXY) has been among the biggest additions Warren Buffett has made over the past year. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com No list of Warren Buffett stocks is complete without discussing Apple (NASDAQ:AAPL), the most valuable company in the world for much of the past decade. On the date of publication, Chris MacDonald has a LONG position in BRK-B and AAPL.
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OXY Occidental Petroleum $70.48 AXP American Express $154.75 AAPL Apple $146.87 Occidental Petroleum (OXY) Source: T. Schneider / Shutterstock.com Houston-based hydrocarbon exploration company Occidental Petroleum (NYSE:OXY) has been among the biggest additions Warren Buffett has made over the past year. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com No list of Warren Buffett stocks is complete without discussing Apple (NASDAQ:AAPL), the most valuable company in the world for much of the past decade. On the date of publication, Chris MacDonald has a LONG position in BRK-B and AAPL.
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18452.0
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2022-11-11 00:00:00 UTC
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US STOCKS-Nasdaq and S&P 500 add to rally, stoked by inflation optimism
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-and-sp-500-add-to-rally-stoked-by-inflation-optimism
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nan
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nan
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By Noel Randewich and Sruthi Shankar
Nov 11 (Reuters) - The S&P 500 and Nasdaq rose on Friday, extending a rally started the day before after a soft inflation reading raised hopes the Federal Reserve would get less aggressive with U.S. interest rate hikes.
Amazon AMZN.O jumped 4.5%, with Apple AAPL.O and Microsoft MSFT.O up more than 1% each and contributing to the Nasdaq's strong gain.
On Thursday, the S&P 500 and the Nasdaq racked up their biggest daily percentage gains in more than 2-1/2 years as annual inflation slipped below 8% for the first time in eight months.
Declines in healthcare stocks weighed on the Dow Jones Industrial Average, with UnitedHealth Group UNH.N losing more than 5%.
The S&P 500 growth index .IGX, which includes interest rate-sensitive technology stocks, rose 1.4%, while the value index .IVX was mostly unchanged.
"What we're really seeing today is simply a follow-through on yesterday. There's a lot of cash sitting on the sidelines that is being put to work," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.
"Perhaps it signals some type of bottom being put in the market, some type of line drawn in the sand. But even if we put in a bottom, we're a long way away from setting new highs,” Ghriskey said.
Of the 11 S&P 500 sector indexes, seven rose, led by energy .SPNY, up 2.84%, followed by a 2.48% gain in communication services .SPLRCL.
Investors see a 81% chance of a 50-basis point rate hike in December and a 19% chance of a 75-basis point hike, according to CME Fedwatch tool.
Adding some nervousness on Wall Street, crypto exchange FTX said it would start U.S. bankruptcy proceedings and that CEO Sam Bankman-Fried resigned due to a liquidity crisis that prompted intervention from regulators around the world.
In afternoon trading, the S&P 500 was up 0.82% at 3,988.77 points.
The Nasdaq gained 1.84% to 11,318.39 points, while the Dow Jones Industrial Average was down 0.15% at 33,664.89 points.
The S&P 500 has gained over 6% in the past two sessions, while the Nasdaq has added about 9%.
Worries about an economic downturn have hammered Wall Street this year. The S&P 500 remains down about 16% year to date, on course for its biggest annual decline since 2008.
U.S.-listed shares of Chinese companies rose, with Alibaba Group Holding Ltd BABA.Ngaining 1.9% afterChina eased some of its strict COVID-19 rules.
Advancing issues outnumbered falling ones within the S&P 500 .AD.SPX by a 1.6-to-one ratio.
The S&P 500 posted 22 new highs and no new lows; the Nasdaq recorded 84 new highs and 90 new lows.
(Reporting by Shubham Batra, Sruthi Shankar, Devik Jain, Bansari Mayur Kamdar and Shashwat Chauhan in Bengaluru, and by Noel Randewich in Oakland, California; Editing by Shounak Dasgupta, Arun Koyyur and David Gregorio)
((noel.randewich@tr.com; Twitter: @randewich))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Amazon AMZN.O jumped 4.5%, with Apple AAPL.O and Microsoft MSFT.O up more than 1% each and contributing to the Nasdaq's strong gain. By Noel Randewich and Sruthi Shankar Nov 11 (Reuters) - The S&P 500 and Nasdaq rose on Friday, extending a rally started the day before after a soft inflation reading raised hopes the Federal Reserve would get less aggressive with U.S. interest rate hikes. Adding some nervousness on Wall Street, crypto exchange FTX said it would start U.S. bankruptcy proceedings and that CEO Sam Bankman-Fried resigned due to a liquidity crisis that prompted intervention from regulators around the world.
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Amazon AMZN.O jumped 4.5%, with Apple AAPL.O and Microsoft MSFT.O up more than 1% each and contributing to the Nasdaq's strong gain. By Noel Randewich and Sruthi Shankar Nov 11 (Reuters) - The S&P 500 and Nasdaq rose on Friday, extending a rally started the day before after a soft inflation reading raised hopes the Federal Reserve would get less aggressive with U.S. interest rate hikes. Declines in healthcare stocks weighed on the Dow Jones Industrial Average, with UnitedHealth Group UNH.N losing more than 5%.
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Amazon AMZN.O jumped 4.5%, with Apple AAPL.O and Microsoft MSFT.O up more than 1% each and contributing to the Nasdaq's strong gain. By Noel Randewich and Sruthi Shankar Nov 11 (Reuters) - The S&P 500 and Nasdaq rose on Friday, extending a rally started the day before after a soft inflation reading raised hopes the Federal Reserve would get less aggressive with U.S. interest rate hikes. The Nasdaq gained 1.84% to 11,318.39 points, while the Dow Jones Industrial Average was down 0.15% at 33,664.89 points.
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Amazon AMZN.O jumped 4.5%, with Apple AAPL.O and Microsoft MSFT.O up more than 1% each and contributing to the Nasdaq's strong gain. But even if we put in a bottom, we're a long way away from setting new highs,” Ghriskey said. The Nasdaq gained 1.84% to 11,318.39 points, while the Dow Jones Industrial Average was down 0.15% at 33,664.89 points.
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18453.0
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2022-11-11 00:00:00 UTC
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Apple Gains Record $191 Market-Cap Value: ETFs Surge
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AAPL
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https://www.nasdaq.com/articles/apple-gains-record-%24191-market-cap-value%3A-etfs-surge
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nan
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nan
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Apple Inc. AAPL climbed 8.9% in Thursday's trading session to record its best single-day performance in more than two years amid a strong broad-market rally. This represents Apple's largest gain since Jul 31, 2020, according to Dow Jones Market Data.
As such, ETFs having the largest allocation to the tech titan enjoyed a huge surge on the day. Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC and iShares US Technology ETF IYW gained more than 8% each. These funds have Apple as the top firm with a double-digit allocation and carry a Zacks Rank #2 (Buy).
The share price surge led to a record market value gain of $190.9 billion for Apple. This marks the biggest one-day market-cap surge ever for the company, according to Bloomberg data. Currently, Apple has a $2.34 trillion in market capitalization.
As softer-than-expected inflation data fueled some optimism, the broad stock market saw a furious rally. The consumer price index rose 7.7% annually in October after rising 8.2% at the end of September, while the core consumer price index, which strips out volatile components such as food and energy prices, climbed 6.3% year over year, down from 6.6% in September. Notably, Wall Street stocks recorded their best one-day performance since 2020.
Further, Apple is one of the big techs that came up with solid earnings results last month. Earnings per share came in at $1.29, outpacing the Zacks Consensus Estimate by 3 cents and increasing 4% from the year-ago earnings. Revenues increased 8% year over year to a record $90.1 billion and edged past the estimate of $88.5 billion (read: Apple Notches Best Day Since April 2020: 4 ETFs to Taste).
iPhone sales grew 10% to a record $42.6 billion. Services revenues, comprising iTunes, Apple Music, iCloud, Apple Pay and Apple Care, soared 5% year over year to a record $19.2 billion. Revenues from Wearables, Home and Accessories, which include Apple Watch, AirPods, HomePod, Apple TV and Beats headphones, rose 10% to $9.7 billion. Mac sales jumped 25% to $11.5 billion, while iPad sales dropped 13% to $7.2 billion.
ETFs to Buy
Technology Select Sector SPDR Fund (XLK)
Technology Select Sector SPDR Fund targets the broad technology sector and follows the Technology Select Sector Index. It holds about 75 securities in its basket, with Apple making up a 22.5% share. Technology Select Sector SPDR Fund has key holdings in software, technology hardware, storage & peripherals, semiconductors & semiconductor equipment and IT services.
Technology Select Sector SPDR Fund is the most popular and heavily traded ETF, with AUM of $37.5 billion and an average daily volume of 7.9 million shares. The fund charges 10 bps in fees per year.
Vanguard Information Technology ETF (VGT)
Vanguard Information Technology ETF manages about $38.8 billion in its asset base and provides exposure to 371 technology stocks. It currently tracks the MSCI US Investable Market Information Technology 25/50 Index. Here, Apple accounts for a 22.4% share (see: all the Technology ETFs here).
Vanguard Information Technology ETF has an expense ratio of 0.10%, while volume is solid at nearly 876,000 shares.
MSCI Information Technology Index ETF (FTEC)
MSCI Information Technology Index ETF is home to 381 technology stocks with AUM of $4.9 billion. It follows the MSCI USA IMI Information Technology Index. Apple accounts for a 23.2% allocation.
MSCI Information Technology Index ETF has an expense ratio of 0.08%, while volume is solid at 196,000 shares a day.
iShares US Technology ETF (IYW)
iShares Dow Jones US Technology ETF tracks the Russell 1000 Technology RIC 22.5/45 Capped Index, giving investors exposure to 143 U.S. electronics, computer software and hardware, and informational technology companies. Apple makes up for 19% of the assets (read: Top-Ranked ETFs That Beat the Market in October).
iShares Dow Jones US Technology ETF has AUM of $7.7 billion and charges 39 bps in fees and expenses. Volume is good as it exchanges nearly 1.2 million shares a day.
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
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports
iShares U.S. Technology ETF (IYW): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. AAPL climbed 8.9% in Thursday's trading session to record its best single-day performance in more than two years amid a strong broad-market rally. Apple Inc. (AAPL): Free Stock Analysis Report Technology Select Sector SPDR Fund is the most popular and heavily traded ETF, with AUM of $37.5 billion and an average daily volume of 7.9 million shares.
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Apple Inc. AAPL climbed 8.9% in Thursday's trading session to record its best single-day performance in more than two years amid a strong broad-market rally. Apple Inc. (AAPL): Free Stock Analysis Report Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC and iShares US Technology ETF IYW gained more than 8% each.
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Apple Inc. AAPL climbed 8.9% in Thursday's trading session to record its best single-day performance in more than two years amid a strong broad-market rally. Apple Inc. (AAPL): Free Stock Analysis Report Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC and iShares US Technology ETF IYW gained more than 8% each.
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Apple Inc. AAPL climbed 8.9% in Thursday's trading session to record its best single-day performance in more than two years amid a strong broad-market rally. Apple Inc. (AAPL): Free Stock Analysis Report Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC and iShares US Technology ETF IYW gained more than 8% each.
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2022-11-11 00:00:00 UTC
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SPY, SAVN: Big ETF Outflows
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https://www.nasdaq.com/articles/spy-savn%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 14,750,000 units were destroyed, or a 1.6% decrease week over week. Among the largest underlying components of SPY, in morning trading today Apple is up about 0.5%, and Microsoft is higher by about 1.2%.
And on a percentage change basis, the ETF with the biggest outflow was the SAVN ETF, which lost 125,000 of its units, representing a 35.7% decline in outstanding units compared to the week prior.
VIDEO: SPY, SAVN: 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 up about 0.5%, and Microsoft is higher by about 1.2%. And on a percentage change basis, the ETF with the biggest outflow was the SAVN ETF, which lost 125,000 of its units, representing a 35.7% decline in outstanding units compared to the week prior. VIDEO: SPY, SAVN: 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 14,750,000 units were destroyed, or a 1.6% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the SAVN ETF, which lost 125,000 of its units, representing a 35.7% decline in outstanding units compared to the week prior. VIDEO: SPY, SAVN: 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 14,750,000 units were destroyed, or a 1.6% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the SAVN ETF, which lost 125,000 of its units, representing a 35.7% decline in outstanding units compared to the week prior. VIDEO: SPY, SAVN: 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 14,750,000 units were destroyed, or a 1.6% decrease week over week. Among the largest underlying components of SPY, in morning trading today Apple is up about 0.5%, and Microsoft is higher by about 1.2%. And on a percentage change basis, the ETF with the biggest outflow was the SAVN ETF, which lost 125,000 of its units, representing a 35.7% decline in outstanding units compared to the week prior.
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2022-11-11 00:00:00 UTC
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1 Monster Stock Growing Faster Than Amazon and Microsoft in This Key Area
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AAPL
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https://www.nasdaq.com/articles/1-monster-stock-growing-faster-than-amazon-and-microsoft-in-this-key-area
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By now, most people are familiar with cloud computing. If you own an Apple iPhone, you probably have access to iCloud, or you might be a user of Alphabet's Google Drive on another device. These are basic applications of cloud technology, which allows us to store our data online where it's easily accessible from anywhere, at any time.
But there's a much greater demand for cloud-based services in the corporate sector. The industry could be valued at more than $1.5 trillion annually by 2030, according to Grand View Research, with Amazon (NASDAQ: AMZN) and Microsoft (NASDAQ: MSFT) being the top two players right now.
But there's a much smaller provider called DigitalOcean (NYSE: DOCN), and it just crushed its bigger competitors for growth in the third quarter (ended Sept. 30). Its stock trades at a very attractive price right now, and here's why it might be worth buying.
The DigitalOcean difference
Amazon Web Services and Microsoft Azure provide hundreds of cloud-based solutions to corporate customers, from simple storage to advanced machine learning tools, but much of what they do is tailored to large organizations. Given their size, it isn't cost-effective to provide highly personalized support to small businesses, and that leaves a gap in the market that DigitalOcean is happily filling.
The company focuses on providing cloud services to small to mid-sized enterprises, and this strategy brings many benefits. It can offer a much smaller portfolio of products and solutions than its larger competitors, which keeps costs down, and it can specialize in those specific areas. Plus, it can maintain more personalized relationships with customers, which tends to increase their stickiness.
For example, DigitalOcean's net retention rate hit an all-time high of 118% in Q3, meaning existing customers are spending about 18% more money in each passing year.
DigitalOcean also delivers some of the cheapest pricing in the industry. It has built a simple dashboard with a range of one-click tools making deployment quick and easy, eliminating the need for expensive technical staff.
Plus, the company is intently focused on educating its customers to help them get the most out of their cloud services through its online library containing thousands of items.
DigitalOcean outgrew the cloud segments of Amazon and Microsoft in Q3
Amazon and Microsoft both reported their financial results for the quarter ended Sept. 30. Over the last few years, the growth rate in their cloud services segments crushed the growth rate of their overall revenue, which points to the growing appetite among businesses for shifting their operations online.
In the recent quarter, revenue in Amazon's cloud segment grew by 27% year over year, and Microsoft's intelligent cloud segment grew by 20%. DigitalOcean's revenue, on the other hand, increased by a whopping 37%, which was its fastest pace this year and suggests it's actually snatching market share from its competitors.
DigitalOcean's average revenue per customer also soared by 27% to $79.22. The company had a record-high 142,000 users spending $50 or more each month, up 50% year over year, though that figure was boosted by DigitalOcean's recent acquisition of Cloudways, which contributed 20,000 customers to this spending category.
DigitalOcean has been flirting with profitability for a while on a net income basis, and in Q3, it managed to get there. It was in the black to the tune of $10 million, or $0.10 per share. This is a positive in the presently difficult economic environment because it reduces the risk of the company requiring a dilutive cash injection.
DigitalOcean stock is very attractive right now
Despite all the positives mentioned above, DigitalOcean stock has fallen by 78% from its all-time high, and it currently trades near its 52-week low point. The broader tech sell-off, which has sent the Nasdaq 100 index lower by 33% this year, is eroding investors' confidence in many high-growth companies -- Amazon and Microsoft included.
DigitalOcean stock now trades at a price-to-sales ratio of just 6.1, which is the lowest level since it became a public company.
But it's doing all the right things from an operational perspective, and that suggests this is an opportunity to buy a quality stock at a heavy discount. The long term could be even more exciting. DigitalOcean places its addressable opportunity at $72 billion this year, but it could double to $145 billion by 2025.
That's a compound annual growth rate of 27%, which is much higher than the 15% rate for the cloud industry overall. This suggests small to mid-sized businesses are a missed opportunity for DigitalOcean's much larger competitors.
It doesn't have to be a missed opportunity for investors, though.
10 stocks we like better than DigitalOcean Holdings, Inc.
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They just revealed what they believe are the ten best stocks for investors to buy right now... and DigitalOcean Holdings, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, DigitalOcean Holdings, Inc., 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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The DigitalOcean difference Amazon Web Services and Microsoft Azure provide hundreds of cloud-based solutions to corporate customers, from simple storage to advanced machine learning tools, but much of what they do is tailored to large organizations. Given their size, it isn't cost-effective to provide highly personalized support to small businesses, and that leaves a gap in the market that DigitalOcean is happily filling. The broader tech sell-off, which has sent the Nasdaq 100 index lower by 33% this year, is eroding investors' confidence in many high-growth companies -- Amazon and Microsoft included.
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Over the last few years, the growth rate in their cloud services segments crushed the growth rate of their overall revenue, which points to the growing appetite among businesses for shifting their operations online. In the recent quarter, revenue in Amazon's cloud segment grew by 27% year over year, and Microsoft's intelligent cloud segment grew by 20%. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, DigitalOcean Holdings, Inc., and Microsoft.
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In the recent quarter, revenue in Amazon's cloud segment grew by 27% year over year, and Microsoft's intelligent cloud segment grew by 20%. DigitalOcean stock is very attractive right now Despite all the positives mentioned above, DigitalOcean stock has fallen by 78% from its all-time high, and it currently trades near its 52-week low point. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, DigitalOcean Holdings, Inc., and Microsoft.
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For example, DigitalOcean's net retention rate hit an all-time high of 118% in Q3, meaning existing customers are spending about 18% more money in each passing year. DigitalOcean's revenue, on the other hand, increased by a whopping 37%, which was its fastest pace this year and suggests it's actually snatching market share from its competitors. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, DigitalOcean Holdings, Inc., and Microsoft.
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2022-11-11 00:00:00 UTC
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US STOCKS-Futures point to fresh gains on Wall Street
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https://www.nasdaq.com/articles/us-stocks-futures-point-to-fresh-gains-on-wall-street
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Futures up: Dow 0.39%, S&P 0.41%, Nasdaq 0.57%
Nov 11 (Reuters) - U.S. stock index futures rose on Friday after Wall Street rallied sharply higher in the previous session, spurred by hopes that cooling inflation will push the Federal Reserve to take a less aggressive stance in its interest rate hikes.
The benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC closed 5.5% and 7.4% higher on Thursday, racking up their biggest daily percentage gains in over 2-1/2 years after data showed annual inflation below 8% for the first time in eight months.
"If ever we needed proof that the market is absolutely desperate for some good news on inflation, yesterday proved it in spades," Deutsche Bank strategist Jim Reid said.
Futures contracts tied to the Fed's benchmark rate show traders now expect the blistering pace of policy tightening to slow next month, and for the U.S. central bank to stop its rate hikes sooner than expected.
Investors are now betting on a 50-basis point rate hike in December, while the top policy rate is seen in the 4.75%-5% range next March, lower than the 5% plus range seen before the inflation data. 0#FEDWATCH
The S&P 500 has now rallied over 10% from its mid-October closing lows, while the Nasdaq has climbed nearly 8%, aided by better-than-expected earnings reports and hopes of a Fed slowdown.
However, both the indexes are down sharply on a year-to-date basis, on course for their worst annual performance since 2008, on fears that surging inflation and rising interest rates will dent corporate profits.
At 05:48 a.m. ET, Dow e-minis 1YMcv1 were up 130 points, or 0.39%, S&P 500 e-minis EScv1 were up 16.25 points, or 0.41%, and Nasdaq 100 e-minis NQcv1 were up 66 points, or 0.57%.
Shares of megacap companies extended gains in premarket trading, with Apple Inc AAPL.O up 0.5% after a near 9% surge in the previous session.
U.S.-listed shares of Chinese companies rose, with Alibaba Group Holding Ltd BABA.N up 3.9% as China eased some of its strict COVID-19 rules.
A survey from the University of Michigan due later in the day is expected to show consumer sentiment eased slightly in November, with the index seen slipping to 59.5 points this month from 59.9 in October.
(Reporting by Shubham Batra and Sruthi Shankar 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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Shares of megacap companies extended gains in premarket trading, with Apple Inc AAPL.O up 0.5% after a near 9% surge in the previous session. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Futures up: Dow 0.39%, S&P 0.41%, Nasdaq 0.57% Nov 11 (Reuters) - U.S. stock index futures rose on Friday after Wall Street rallied sharply higher in the previous session, spurred by hopes that cooling inflation will push the Federal Reserve to take a less aggressive stance in its interest rate hikes. The benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC closed 5.5% and 7.4% higher on Thursday, racking up their biggest daily percentage gains in over 2-1/2 years after data showed annual inflation below 8% for the first time in eight months.
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Shares of megacap companies extended gains in premarket trading, with Apple Inc AAPL.O up 0.5% after a near 9% surge in the previous session. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Futures up: Dow 0.39%, S&P 0.41%, Nasdaq 0.57% Nov 11 (Reuters) - U.S. stock index futures rose on Friday after Wall Street rallied sharply higher in the previous session, spurred by hopes that cooling inflation will push the Federal Reserve to take a less aggressive stance in its interest rate hikes. The benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC closed 5.5% and 7.4% higher on Thursday, racking up their biggest daily percentage gains in over 2-1/2 years after data showed annual inflation below 8% for the first time in eight months.
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Shares of megacap companies extended gains in premarket trading, with Apple Inc AAPL.O up 0.5% after a near 9% surge in the previous session. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Futures up: Dow 0.39%, S&P 0.41%, Nasdaq 0.57% Nov 11 (Reuters) - U.S. stock index futures rose on Friday after Wall Street rallied sharply higher in the previous session, spurred by hopes that cooling inflation will push the Federal Reserve to take a less aggressive stance in its interest rate hikes. Futures contracts tied to the Fed's benchmark rate show traders now expect the blistering pace of policy tightening to slow next month, and for the U.S. central bank to stop its rate hikes sooner than expected.
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Shares of megacap companies extended gains in premarket trading, with Apple Inc AAPL.O up 0.5% after a near 9% surge in the previous session. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Futures up: Dow 0.39%, S&P 0.41%, Nasdaq 0.57% Nov 11 (Reuters) - U.S. stock index futures rose on Friday after Wall Street rallied sharply higher in the previous session, spurred by hopes that cooling inflation will push the Federal Reserve to take a less aggressive stance in its interest rate hikes. The benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC closed 5.5% and 7.4% higher on Thursday, racking up their biggest daily percentage gains in over 2-1/2 years after data showed annual inflation below 8% for the first time in eight months.
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Major ad firm Omnicom recommends clients pause Twitter ad spend - memo
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https://www.nasdaq.com/articles/major-ad-firm-omnicom-recommends-clients-pause-twitter-ad-spend-memo
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Changes sourcing, adds quotes, details from memo
Nov 11 (Reuters) - Advertising and marketing conglomerate Omnicom Group Inc OMC.N has recommended that clients pause their spending on Twitter in the short term, according to an internal memo seen by Reuters.
Omnicom serves over 5,000 clients in 70 countries, including McDonald's Corp MCD.N, Apple AAPL.O and Johnson & Johnson JNJ.N. The memo did not mention clients by name and it is not clear if any have paused Twitter advertising spending.
The move, first reported by tech news site The Verge, emphasizes a growing skepticism among agencies and brands about the micro-blogging site's future since Elon Musk’s $44 billion takeover.
The Tesla CEO has blamed civil rights groups lobbying Twitter advertisers to boycott the service until Musk clarified how he would control misinformation and hate speech on the service for a “massive” revenue drop.
“Twitter’s ability to maintain their previous level of brand safety measures and effectiveness seem impeded in the immediate term,” according to the memo.
“Whilst OMG believes this is unlikely to result in a significantly higher risk environment for advertisers, the risk of being associated with unsafe content could rise and as such should be considered when deciding on use of the platform.”
Ad sales represented over 90% of Twitter's revenue in the second quarter.
Last month, U.S. automaker General Motors Co GM.N said it had temporarily halted paid advertising on Twitter.
(Reporting by Mehnaz Yasmin in Bengaluru and Kenneth Li in New York; Editing by Shailesh Kuber and Stephen Coates)
((Mehnaz.Yasmin@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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Omnicom serves over 5,000 clients in 70 countries, including McDonald's Corp MCD.N, Apple AAPL.O and Johnson & Johnson JNJ.N. Changes sourcing, adds quotes, details from memo Nov 11 (Reuters) - Advertising and marketing conglomerate Omnicom Group Inc OMC.N has recommended that clients pause their spending on Twitter in the short term, according to an internal memo seen by Reuters. “Twitter’s ability to maintain their previous level of brand safety measures and effectiveness seem impeded in the immediate term,” according to the memo.
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Omnicom serves over 5,000 clients in 70 countries, including McDonald's Corp MCD.N, Apple AAPL.O and Johnson & Johnson JNJ.N. Changes sourcing, adds quotes, details from memo Nov 11 (Reuters) - Advertising and marketing conglomerate Omnicom Group Inc OMC.N has recommended that clients pause their spending on Twitter in the short term, according to an internal memo seen by Reuters. The memo did not mention clients by name and it is not clear if any have paused Twitter advertising spending.
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Omnicom serves over 5,000 clients in 70 countries, including McDonald's Corp MCD.N, Apple AAPL.O and Johnson & Johnson JNJ.N. Changes sourcing, adds quotes, details from memo Nov 11 (Reuters) - Advertising and marketing conglomerate Omnicom Group Inc OMC.N has recommended that clients pause their spending on Twitter in the short term, according to an internal memo seen by Reuters. The Tesla CEO has blamed civil rights groups lobbying Twitter advertisers to boycott the service until Musk clarified how he would control misinformation and hate speech on the service for a “massive” revenue drop.
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Omnicom serves over 5,000 clients in 70 countries, including McDonald's Corp MCD.N, Apple AAPL.O and Johnson & Johnson JNJ.N. Changes sourcing, adds quotes, details from memo Nov 11 (Reuters) - Advertising and marketing conglomerate Omnicom Group Inc OMC.N has recommended that clients pause their spending on Twitter in the short term, according to an internal memo seen by Reuters. The memo did not mention clients by name and it is not clear if any have paused Twitter advertising spending.
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The Zacks Analyst Blog Highlights Apple, Snap, Autodesk and NVIDIA
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-apple-snap-autodesk-and-nvidia
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nan
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For Immediate Release
Chicago, IL – November 11, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple, Inc. AAPL, Snap Inc. SNAP, Autodesk, Inc. ADSK and NVIDIA Corp. NVDA.
Here are highlights from Thursday’s Analyst Blog:
4 Solid Stocks to Watch on a Booming Metaverse Space
The COVID-19 pandemic has brought about a major social change and made life dependent on the digital world. The pandemic taught people to work, learn and shop remotely, order food and other necessities online, go for contactless payments and restrict themselves to indoor entertainment like playing video games.
The virtual world, or metaverse, which is reachable to millions globally for business, communication, learning, entertainment, and more, is thus gradually taking control of our present and future.
A Metaverse Future with Huge Growth Potential
The metaverse is the most recent development in the digitization field. In a nutshell, a metaverse is a collaborative and participatory virtual universe. Metaverse includes virtual reality, which is characterized by persistent virtual environments that exist even when one is not playing, and augmented reality, which fuses elements of the digital and real worlds.
Experts believe that the metaverse universe has just begun its journey and holds immense potential for the future.
According to a recent report by the management consulting company McKinsey, consumer and business use cases for the metaverse are projected to generate $4-$5 trillion by 2030. Another report from market research firm BlueWeave Consulting shows that the global metaverse market was worth $40.7 billion in 2021 and will witness a CAGR of 40.5%, generating revenues of more than $439 billion by 2028.
The metaverse world was taking baby steps till some time back but the pandemic gave it a sudden push as an increasing number of people became dependent on technology. Demand for working and learning from home, or shopping and paying bills online, which picked up during the peak of the pandemic, is now the new normal.
At the same time, this space has increased the adoption of non-fungible tokens and cryptocurrencies. Astute investors, thus, should keep a watch on businesses that are positioned to gain from the expanding metaverse market.
Stocks to Watch
We have narrowed our search to four stocks whose growth will be propelled by the metaverse expansion. These are Apple, Inc., Snap Inc., Autodesk, Inc. and NVIDIA Corp. These companies currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Apple, Inc. encourages app developers to include machine learning and artificial intelligence in their apps. A long-term growth opportunity is presented by AAPL's concentration on driverless vehicles and augmented reality/virtual reality technologies. Over the years, Apple has bought a number of smaller businesses with expertise in AR hardware, 3D gaming, and VR software namely SensoMotoric, Flyby Media, Emotient, TupleJump, Turi, Metaio, PrimeSense, and Lattice Data Inc. in order to step up its efforts.
Apple’s expected earnings growth for the current year is 3.4%. AAPL reported fourth-quarter fiscal 2022 earnings of $1.29 per share, beating the Zacks Consensus Estimate of $1.26 per share. Apple has reported an earnings beat in each of the last four reported quarters.
Snap Inc. is focusing on creating AR hardware through its Spectacle smart glasses. The company's AR lenses have gained significant popularity, especially since the release of Lens Studio 2. In collaboration with Verizon, Snap unveiled its first Landmarker Lens (a brand-new tool for superimposing augmented reality on the real world) around the end of 2020. The Lens takes advantage of Verizon's 5G Ultra-Wideband capabilities with SNAP's augmented reality technology.
The widespread use of items like Scan and AR Bar is propelling the use of AR-based lenses and offering SNAP considerable growth opportunities. Additionally, it is anticipated that the introduction of Local Lenses, which permits shared and permanent AR experiences across far broader geographic regions, will increase user engagement.
Snap’s expected earnings growth for next year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the past 60 days.
Autodesk, Inc. is expected to make long-term gains from its business transition from perpetual licensing to cloud-based subscription services. Top-line growth is expected to be fueled by increased demand for Autodesk's cloud-based (BIM 360 cloud platform, Shotgun, and Fusion Lifecycle), mobile (AutoCAD 360), and design suite solutions. Aside from its e-store, ADSK also gains from its investment in digital infrastructure.
Autodesk’s expected earnings growth for the current year is 30.2%. The Zacks Consensus Estimate for current-year earnings has improved 1% over the past 60 days.
NVIDIA's robust portfolio of cutting-edge graphics cards has made it a popular graphics card supplier and is anticipated to aid the business's entry into the metaverse gaming market. In this respect, NVDA's Omniverse is also noteworthy. Omniverse is a shared platform where live interactions between users and applications happen with real-time speed and virtual reality thanks to its RTX technology.
NVIDIA’s expected earnings growth for next year is 30.1%. Shares of NVDA have gained 14% in the past 30 days.
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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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Stocks recently featured in the blog include: Apple, Inc. AAPL, Snap Inc. A long-term growth opportunity is presented by AAPL's concentration on driverless vehicles and augmented reality/virtual reality technologies. AAPL reported fourth-quarter fiscal 2022 earnings of $1.29 per share, beating the Zacks Consensus Estimate of $1.26 per share.
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Stocks recently featured in the blog include: Apple, Inc. AAPL, Snap Inc. Apple Inc. (AAPL): Free Stock Analysis Report A long-term growth opportunity is presented by AAPL's concentration on driverless vehicles and augmented reality/virtual reality technologies.
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Stocks recently featured in the blog include: Apple, Inc. AAPL, Snap Inc. A long-term growth opportunity is presented by AAPL's concentration on driverless vehicles and augmented reality/virtual reality technologies. AAPL reported fourth-quarter fiscal 2022 earnings of $1.29 per share, beating the Zacks Consensus Estimate of $1.26 per share.
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Stocks recently featured in the blog include: Apple, Inc. AAPL, Snap Inc. A long-term growth opportunity is presented by AAPL's concentration on driverless vehicles and augmented reality/virtual reality technologies. AAPL reported fourth-quarter fiscal 2022 earnings of $1.29 per share, beating the Zacks Consensus Estimate of $1.26 per share.
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18459.0
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2022-11-11 00:00:00 UTC
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3 Best Warren Buffett Stocks to Buy for the Long Haul
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AAPL
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https://www.nasdaq.com/articles/3-best-warren-buffett-stocks-to-buy-for-the-long-haul
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nan
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nan
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Which person first comes to mind when you think about long-term investing? I suspect that for many of us, the answer would be Warren Buffett. The 92-year-old multibillionaire is, of course, one of the most famous investors ever. He has also promoted a long-term investing mindset for most of his life.
Unsurprisingly, quite a few of the stocks that Buffett has added to Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) through the years are good picks for long-term investors. Some are better than others, though. Here are the three best Buffett stocks to buy for the long haul.
1. Berkshire Hathaway
I think arguably the best Buffett stock to buy for the long haul is Berkshire Hathaway itself. In Buffett's latest letter to Berkshire shareholders, he noted that the stock delivered a compounded annual gain of 20.1% between 1965 (when he took control) and the end of 2021. By comparison, the S&P 500 generated an average annual return of 10.1% during this period.
Berkshire is continuing to outperform the S&P 500 in 2022. Although the stock is down a little year to date, it's still well ahead of the overall market.
This impressive track record isn't the main reason why I like Berkshire going forward, however. Instead, my favorite thing about the stock is the diversification that it provides. You don't just buy one business when you invest in Berkshire Hathaway -- you buy a big basket of businesses.
Berkshire has more than 60 subsidiaries that operate in multiple industries. It owns equity positions in over 40 other publicly traded companies. Not all of these businesses will perform well over the next three decades and beyond, but many of them will. Berkshire's diversification increases your chances of long-term success.
2. Markel
You can take nearly everything I said about Berkshire and apply it to Markel (NYSE: MKL). The main exception is that Markel hasn't delivered returns quite as impressive and for as long as Berkshire has. However, the stock has nonetheless been a big winner since its initial public offering (IPO) in 1986, generating a cumulative gain of around 12,000%.
Like Berkshire, Markel is beating the S&P 500 this year. And it continues to attract investors for some of the same reasons Berkshire remains popular.
Markel is so much like Berkshire that it's sometimes referred to as a "baby Berkshire." The company's core focus is on insurance (in Markel's case, specialty insurance). It's a holding company that owns subsidiaries in other industries. Markel also invests in a long list of other publicly traded companies, including Berkshire.
Co-CEOs Tom Gaynor and Richie Witt also have similar mindsets as Buffett and Berkshire vice-chairman Charlie Munger. In Markel's Q3 call, Gaynor said, "If markets were going down and we were steadily buying more equity securities and bonds with higher interest income and our own stock at lower prices, that would be fantastic." He then added, "We're buying." That's what Buffett's doing, too.
3. Apple
Buffett clearly loves Apple (NASDAQ: AAPL). He's stated in the past that it's "probably the best business I know in the world." Apple ranks as Berkshire's biggest holding, by far.
Sure, the tech stock isn't performing so great this year. Over the longer term, though, Apple has trounced the S&P 500. I think it can continue to do so.
Apple's current headwinds will only be temporary. The company's iPhone ecosystem should remain highly profitable for a long time to come. Apple has plenty of growth opportunities ahead, including augmented reality, digital payments, and streaming.
The company probably won't be able to deliver the sizzling level of growth going forward as it has in the past. That's expected, considering that Apple is now worth more than $2 trillion. But it should remain a steady winner and could even be the ultimate Buffett stock for long-term investors.
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*Stock Advisor returns as of November 7, 2022
Keith Speights has positions in Apple and Berkshire Hathaway (B shares). The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and Markel. 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 Buffett clearly loves Apple (NASDAQ: AAPL). In Buffett's latest letter to Berkshire shareholders, he noted that the stock delivered a compounded annual gain of 20.1% between 1965 (when he took control) and the end of 2021. Co-CEOs Tom Gaynor and Richie Witt also have similar mindsets as Buffett and Berkshire vice-chairman Charlie Munger.
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Apple Buffett clearly loves Apple (NASDAQ: AAPL). Unsurprisingly, quite a few of the stocks that Buffett has added to Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) through the years are good picks for long-term investors. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and Markel.
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Apple Buffett clearly loves Apple (NASDAQ: AAPL). Berkshire Hathaway I think arguably the best Buffett stock to buy for the long haul is Berkshire Hathaway itself. See the 10 stocks *Stock Advisor returns as of November 7, 2022 Keith Speights has positions in Apple and Berkshire Hathaway (B shares).
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Apple Buffett clearly loves Apple (NASDAQ: AAPL). The main exception is that Markel hasn't delivered returns quite as impressive and for as long as Berkshire has. Markel also invests in a long list of other publicly traded companies, including Berkshire.
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18460.0
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2022-11-11 00:00:00 UTC
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Warren Buffett's Latest $1 Billion Buy Brings His Total Investment in This Stock to $63 Billion in 4 Years
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AAPL
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https://www.nasdaq.com/articles/warren-buffetts-latest-%241-billion-buy-brings-his-total-investment-in-this-stock-to-%2463
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nan
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nan
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There's little argument within the investment community that Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett is an all-time great. For decades, the Oracle of Omaha has shown how powerful an ally time can be. Since becoming CEO in 1965, he's helped create more than $630 billion in value for shareholders (himself included) and overseen a greater than 3,600,000% return in his company's Class A shares (BRK.A).
Because of Buffett's highly successful track record, new and tenured investors wisely follow his lead and use his investment portfolio as inspiration when looking for new ideas. That's where Form 13F filings with the Securities and Exchange Commission have come in handy.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Investors closely monitor Berkshire Hathaway's 13Fs for investment ideas
A Form 13F is effectively a portfolio snapshot of what successful money managers held at the end of the most recent quarter. It allows everyday investors to see what the brightest minds on Wall Street have been buying and selling.
For instance, one glimpse of Berkshire Hathaway's portfolio today, compared to a year ago, shows how much conviction Warren Buffett has in energy stocks. At no point in this century have energy stocks comprised a double-digit percentage of Berkshire's investment portfolio -- until the June-ended quarter.
More specifically, Buffett and his team have piled into oil stocks Chevron (NYSE: CVX) and Occidental Petroleum (NYSE: OXY). The logic behind these sizable purchases is the expectation that the spot price for crude oil and natural gas will remain well above average. Reduced investment from energy companies during the pandemic, coupled with Russia's invasion of Ukraine, creates a scenario where boosting domestic and global supply is going to be difficult.
Both Chevron and Occidental are also integrated energy companies. This is a fancy way of saying that in addition to drilling and exploration, they operate transmission pipelines and/or downstream assets, such as refineries or chemical plants. If energy commodity prices were to decline, both companies have hedges in place.
Investors following Buffett's buying and selling activity via 13Fs can't miss the mammoth stake his company has built up in Apple (NASDAQ: AAPL), either. When the closing bell tolled on Nov. 4, Apple accounted for nearly 39% of Berkshire Hathaway's $328 billion of invested assets.
Apple has an exceptionally loyal customer base, the top-selling smartphone in the U.S. (by a mile), and its CEO, Tim Cook, is spearheading a multiyear transition that's seeing the company spread its wings as a service provider. It's a cash-flow monster with an equally impressive capital return program to boot, which is probably why it's such a hit with the Oracle of Omaha.
Image source: Getty Images.
Warren Buffett has invested $63.1 billion in this stock since July 2018
However, 13F filings aren't providing you with a complete picture of where Warren Buffett is putting his company's capital to work. To locate Buffett's favorite stock, you'll have to open up Berkshire Hathaway's quarterly earnings releases -- the latest of which hit the newswires on Saturday, Nov. 5.
Although Berkshire Hathaway's operating results list the five largest holdings by market value at the end of the latest quarter, it's the final page of the report, just before the exhibits and certifications, that offers investors a detailed look at Buffett's favorite stock (cue the irony): Berkshire Hathaway. It's the page that details the company's share buyback activity for the most recent quarter.
Prior to July 17, 2018, Warren Buffett and his right-hand man Charlie Munger were only able to repurchase shares of their company if it was valued at or below 120% of book value (i.e., no more than 20% above book value). For more than five years leading up to July 17, 2018, not a single share was repurchased because Berkshire Hathaway stock never fell to a book value of 120% or below. Then things changed.
July 17, 2018, marked the date where Berkshire's board passed new criteria to enable Buffett and Munger to execute buybacks. As long as Berkshire Hathaway has $30 billion in cash and U.S. Treasuries on its balance sheet, and Buffett and Munger agree that their company's stock is trading at a low intrinsic value, buybacks can continue without a cap.
Midway through 2022, Buffett and Munger had overseen the repurchase of $62.1 billion of their company's Class A and Class B stock since the new criteria went into effect. These buybacks continued during the third quarter, with Buffett and Munger green-lighting the repurchase of $1.04 billion in Class A stock. That brings the grand total of buybacks to roughly $63.1 billion since July 2018.
For a company like Buffett's that tends to steadily grow its net income over time, a reduced outstanding share count can have a positive impact on earnings per share. That can make Berkshire Hathaway more fundamentally attractive to investors.
Buying back stock is also a way Buffett can demonstrate to shareholders that he's willing to bet on himself and the long-term vision he's built at Berkshire Hathaway. Even though Berkshire Hathaway has endured down years with the Oracle of Omaha at the reins, Berkshire's stock has ultimately outperformed the benchmark S&P 500 by a factor of 120 since 1965.
Warren Buffett's favorite stock to buy unquestionably remains Berkshire Hathaway, and he continues to send signals to the investment community that it's still a bargain.
10 stocks we like better than Berkshire Hathaway (B shares)
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*Stock Advisor returns as of September 30, 2022
Sean Williams 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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Investors following Buffett's buying and selling activity via 13Fs can't miss the mammoth stake his company has built up in Apple (NASDAQ: AAPL), either. Investors closely monitor Berkshire Hathaway's 13Fs for investment ideas A Form 13F is effectively a portfolio snapshot of what successful money managers held at the end of the most recent quarter. Apple has an exceptionally loyal customer base, the top-selling smartphone in the U.S. (by a mile), and its CEO, Tim Cook, is spearheading a multiyear transition that's seeing the company spread its wings as a service provider.
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Investors following Buffett's buying and selling activity via 13Fs can't miss the mammoth stake his company has built up in Apple (NASDAQ: AAPL), either. There's little argument within the investment community that Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett is an all-time great. Warren Buffett's favorite stock to buy unquestionably remains Berkshire Hathaway, and he continues to send signals to the investment community that it's still a bargain.
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Investors following Buffett's buying and selling activity via 13Fs can't miss the mammoth stake his company has built up in Apple (NASDAQ: AAPL), either. Warren Buffett has invested $63.1 billion in this stock since July 2018 However, 13F filings aren't providing you with a complete picture of where Warren Buffett is putting his company's capital to work. Although Berkshire Hathaway's operating results list the five largest holdings by market value at the end of the latest quarter, it's the final page of the report, just before the exhibits and certifications, that offers investors a detailed look at Buffett's favorite stock (cue the irony): Berkshire Hathaway.
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Investors following Buffett's buying and selling activity via 13Fs can't miss the mammoth stake his company has built up in Apple (NASDAQ: AAPL), either. Investors closely monitor Berkshire Hathaway's 13Fs for investment ideas A Form 13F is effectively a portfolio snapshot of what successful money managers held at the end of the most recent quarter. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway (B shares) wasn't one of them!
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18461.0
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2022-11-11 00:00:00 UTC
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Is PayPal a Top Growth Stock to Buy Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-paypal-a-top-growth-stock-to-buy-right-now
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nan
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nan
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Digital payments giant PayPal (NASDAQ: PYPL) recently reported its 2022 third-quarter financials, posting revenue of $6.8 billion and adjusted earnings per share (EPS) of $1.08, both of which exceeded Wall Street forecasts. Nonetheless, the stock fell after the announcement thanks to a disappointing Q4 revenue forecast, as the market tends to care more about the outlook than past numbers.
PayPal has historically been able to post greater than 15% annual sales growth like clockwork, but with a slowdown imminent, is this still a top growth stock for investors to buy? Let's take a closer look at the fintech pioneer.
Recent results
During the three-month period that ended September 30, PayPal added 2.9 million net new active accounts, bringing the total to a whopping 432 million. And these users are engaged, as the number of transactions per account (over the trailing 12-month period) was 50.1, up 13% year over year. Total payment volume, a key metric that investors should follow, came in at $337 billion in the quarter, a gargantuan amount.
What's more, PayPal continues to show how profitable it is, increasing free cash flow 37% from the prior-year period to $1.8 billion.
PayPal also announced a new strategic partnership with tech giant Apple that will allow the fintech company's merchants and consumers to utilize Apple Pay at checkout in various ways. This follows another potentially lucrative tie-up for PayPal. By Black Friday, Venmo users will be able to shop on Amazon's website using their Venmo balances.
These announcements help to make PayPal's offerings even more ubiquitous in a hyper-competitive payments market, something that could support higher revenue over time.
Investors should wait
Despite the generally positive news that I just discussed, PayPal is facing macroeconomic headwinds, as is nearly every other business out there. High inflation deters consumers from spending like they did in 2020 and much of 2021. And because the activity on PayPal's platform leans toward discretionary purchases, the company could be severely affected in a recession. This also means slowing transaction revenue, which is PayPal's bread and butter, accounting for 91% of total revenue in the third quarter.
Besides the external issues facing PayPal, the business also has some internal problems that investors should be aware of. Not too long ago, Dan Schulman, PayPal's chief executive officer, walked back the company's ambitious goal of having 750 million active accounts by 2025. The goal now is to focus on adding higher-value users who will transact much more, a move that makes strategic sense, but which will limit the business's account growth. Management is expecting to end 2022 having added 8 million to 10 million net new active accounts in the year, a substantial decline from past years.
Plus, while the Amazon and Apple partnerships might help, Venmo is still being under-monetized. PayPal says that the peer-to-peer payments service counts 90 million active customers. And Venmo is forecasted to increase revenue 40% this year to nearly $1.3 billion, compared to $900 million last year. That might be impressive in a vacuum, but looking at a rival provides insights.
Block's Cash App, which competes directly with Venmo, provides an apt comparison. Cash App counted 49 million monthly active users in the latest quarter, but generated $774 million in gross profit in just the latest three-month period. It's safe to say that Venmo has some catching up to do when it comes to achieving better monetization.
For the full year, PayPal's management did raise EPS projections from $3.92 (at the midpoint) to $4.08 (at the midpoint), calling out benefits from cost savings and the release of credit loss reserves. But Q4 revenue is expected to come in lighter than what Wall Street was hoping at less than $7.4 billion, good for a 10% gain from the prior-year fourth quarter.
With PayPal's stock down 54% in 2022, the shares now trade at a forward price-to-earnings multiple of about 17. This is a compelling valuation, given that from 2016 through 2021 the company's revenue and net income increased 134% and 198%, respectively.
However, considering the state of the economy right now, coupled with problems specific to PayPal, it's probably best for investors to wait until things show signs of improvement before buying the stock.
10 stocks we like better than PayPal Holdings
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*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. Neil Patel has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Apple, Block, Inc., and PayPal Holdings. 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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Digital payments giant PayPal (NASDAQ: PYPL) recently reported its 2022 third-quarter financials, posting revenue of $6.8 billion and adjusted earnings per share (EPS) of $1.08, both of which exceeded Wall Street forecasts. Not too long ago, Dan Schulman, PayPal's chief executive officer, walked back the company's ambitious goal of having 750 million active accounts by 2025. However, considering the state of the economy right now, coupled with problems specific to PayPal, it's probably best for investors to wait until things show signs of improvement before buying the stock.
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Recent results During the three-month period that ended September 30, PayPal added 2.9 million net new active accounts, bringing the total to a whopping 432 million. Cash App counted 49 million monthly active users in the latest quarter, but generated $774 million in gross profit in just the latest three-month period. The Motley Fool has positions in and recommends Amazon, Apple, Block, Inc., and PayPal Holdings.
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Recent results During the three-month period that ended September 30, PayPal added 2.9 million net new active accounts, bringing the total to a whopping 432 million. PayPal also announced a new strategic partnership with tech giant Apple that will allow the fintech company's merchants and consumers to utilize Apple Pay at checkout in various ways. The Motley Fool has positions in and recommends Amazon, Apple, Block, Inc., and PayPal Holdings.
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And Venmo is forecasted to increase revenue 40% this year to nearly $1.3 billion, compared to $900 million last year. That's right -- they think these 10 stocks are even better buys. The Motley Fool has positions in and recommends Amazon, Apple, Block, Inc., and PayPal Holdings.
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18462.0
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2022-11-11 00:00:00 UTC
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Taiwan electric scooter firm Gogoro delaying China expansion
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AAPL
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https://www.nasdaq.com/articles/taiwan-electric-scooter-firm-gogoro-delaying-china-expansion
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nan
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nan
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TAIPEI, Nov 11 (Reuters) - Taiwanese electric scooter maker Gogoro Inc GGR.O is delaying its expansion plans in China due to geopolitical and economic uncertainty there and putting more focus on India and Indonesia, its chief financial officer told Reuters on Friday.
As well as making its own vehicles, Gogoro has electric battery and other partnerships with vehicle makers including India's Hero MotoCorp HROM.NS and China's Dachangjiang Group and Yadea Group Holdings 1585.HK.
Gogoro, known for its green-hued battery swap distribution network for riders, has ambitious plans, seeing potential to replace vast fleets of heavily-polluting, gasoline-powered scooters with electric two-wheelers as Asia's metropolises bid to improve air quality.
Gogoro's CFO Bruce Aitken said that while almost all their revenue was currently generated in Taiwan, they are looking to diversify internationally, with the biggest market for two-wheelers being China, India and Indonesia.
But with China - whose economy has slowed because of repeated lockdowns to control COVID-19 and where Beijing is locked in trade and political disputes with Washington - "there are all the geopolitical issues, there are all the China macroeconomic issues," Aitken said.
"There's so much uncertainly, I think I would say, with regards to the China market in general that we're delaying our expansion plans until we have a bit more certainty and a bit more viability into what follows," he said.
"We're taking an optimistic but cautionary kind of a perspective with regards to a further roll out in China as a result of the current situation there."
With China being a challenging place, Gogoro is looking at its plans elsewhere, Aitken said.
"India and Indonesia therefore become very appealing marketplaces."
But the company does not expect more significant international income until 2024 and beyond, he said.
In Taiwan, Gogoro has a partnership with Foxconn 2317.TW, best known for assembling Apple Inc AAPL.O iPhones but with its own huge electric vehicle ambitions.
Aitken said there was potential to do a lot more with Foxconn, whose EV plans do not include two-wheelers at present, concentrating instead on sedans, buses and trucks.
"We do not have aspirations right now, specifically, to get into the four-wheeled space ourselves, so there's no competition there."
(Reporting by Ben Blanchard; Editing by Tom Hogue)
((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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In Taiwan, Gogoro has a partnership with Foxconn 2317.TW, best known for assembling Apple Inc AAPL.O iPhones but with its own huge electric vehicle ambitions. Gogoro, known for its green-hued battery swap distribution network for riders, has ambitious plans, seeing potential to replace vast fleets of heavily-polluting, gasoline-powered scooters with electric two-wheelers as Asia's metropolises bid to improve air quality. Gogoro's CFO Bruce Aitken said that while almost all their revenue was currently generated in Taiwan, they are looking to diversify internationally, with the biggest market for two-wheelers being China, India and Indonesia.
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In Taiwan, Gogoro has a partnership with Foxconn 2317.TW, best known for assembling Apple Inc AAPL.O iPhones but with its own huge electric vehicle ambitions. TAIPEI, Nov 11 (Reuters) - Taiwanese electric scooter maker Gogoro Inc GGR.O is delaying its expansion plans in China due to geopolitical and economic uncertainty there and putting more focus on India and Indonesia, its chief financial officer told Reuters on Friday. As well as making its own vehicles, Gogoro has electric battery and other partnerships with vehicle makers including India's Hero MotoCorp HROM.NS and China's Dachangjiang Group and Yadea Group Holdings 1585.HK.
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In Taiwan, Gogoro has a partnership with Foxconn 2317.TW, best known for assembling Apple Inc AAPL.O iPhones but with its own huge electric vehicle ambitions. TAIPEI, Nov 11 (Reuters) - Taiwanese electric scooter maker Gogoro Inc GGR.O is delaying its expansion plans in China due to geopolitical and economic uncertainty there and putting more focus on India and Indonesia, its chief financial officer told Reuters on Friday. As well as making its own vehicles, Gogoro has electric battery and other partnerships with vehicle makers including India's Hero MotoCorp HROM.NS and China's Dachangjiang Group and Yadea Group Holdings 1585.HK.
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In Taiwan, Gogoro has a partnership with Foxconn 2317.TW, best known for assembling Apple Inc AAPL.O iPhones but with its own huge electric vehicle ambitions. TAIPEI, Nov 11 (Reuters) - Taiwanese electric scooter maker Gogoro Inc GGR.O is delaying its expansion plans in China due to geopolitical and economic uncertainty there and putting more focus on India and Indonesia, its chief financial officer told Reuters on Friday. As well as making its own vehicles, Gogoro has electric battery and other partnerships with vehicle makers including India's Hero MotoCorp HROM.NS and China's Dachangjiang Group and Yadea Group Holdings 1585.HK.
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18463.0
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2022-11-11 00:00:00 UTC
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EXCLUSIVE-Apple supplier Foxconn plans to quadruple workforce at India plant-sources
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AAPL
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https://www.nasdaq.com/articles/exclusive-apple-supplier-foxconn-plans-to-quadruple-workforce-at-india-plant-sources-0
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nan
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nan
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By Sudarshan Varadhan and Yimou Lee
NEW DELHI/TAIPEI, Nov 11 (Reuters) - Apple AAPL.O supplier Foxconn 2317.TW plans to quadruple the workforce at its iPhone factory in India over two years, two government officials with knowledge of the matter said, pointing to a production adjustment as it faces disruptions in China.
Foxconn has grabbed headlines in recent weeks, with tight virus restrictions at its Zhengzhou plant, the world's largest iPhone factory, disturbing production and fuelling concerns over the impact of China's virus policy on global supply chains.
The disruptions prompted Apple to lower its forecast for shipments of the premium iPhone 14 models this week, dampening its sales outlook for the busy year-end holiday season.
Taiwan-based Foxconn now plans to boost the workforce at its plant in southern India to 70,000 by adding 53,000 more workers over the next two years, said the sources, who declined to be named as the discussions are private.
While the size of the plant in India's southern state of Tamil Nadu is dwarfed by Foxconn's Zhengzhou plant, which employs 200,000 workers, it is central to Apple's efforts to shift production away from China.
Foxconn, formally called Hon Hai Precision Industry Co Ltd, opened the India plant in 2019 and has been ramping up production. It began producing iPhone 14 this year.
Foxconn's interest in expanding the facility is known, but the scale of the planned expansion and timelines have previously not been reported.
Both Foxconn and Apple declined to comment.
Foxconn Chairman Liu Young-way said on anearnings callon Thursday the company would adjust its production capacity and output so there was no impact from further potential disruptions on supplies for the Christmas and Lunar New Year holidays.
Foxconn has shared its plans with Tamil Nadu officials about accelerating its hiring efforts at the Indian plant due to disruptions in China, said the first government source.
Beyond iPhones, the plant also manufactures products for other global tech firms, but the new hiring push is mainly driven by its need to meet growing iPhone demand, the person added.
A person in Taiwan with knowledge of the matter said Foxconn was expanding its operations in India to increase its capacity for basic models and to meet Indian demand.
"We are gradually increasing our production scale there," the person said, declining to give details on its hiring plans in India.
The second government source in India, a senior official in the Tamil Nadu administration, said the state government was working with Foxconn in "finalising" the expansion.
On Oct. 27, the state's investment promotion arm tweeted that top government officials had travelled to Taiwan and met Liu. They had "elaborately discussed Foxconn's plans for new ventures and investments" and offered the government's support.
The state was having discussions with the suppliers to address issues such as housing facilities for workers as it looked to expand, the first government official said.
Last year, Foxconn's Tamil Nadu plant was at the centre of a mass food-poisoning incident which sparked employee protests and threw light on the living conditions of the workers in hostels near the factory.
Officials at Tamil Nadu, a hub of electronic and automotive manufacturing, were also pushing Apple suppliers to branch out into manufacturing components for iPhones beyond just assembly, the two government sources added.
Currently, iPhones are assembled in India by at least three of Apple's global suppliers: Foxconn and Pegatron 4938.TW in Tamil Nadu; and Wistron 3231.TW in nearby Karnataka state.
JP Morgan analysts estimated in September that Apple may make one out of four iPhones in India by 2025, and 25% of all Apple products, including Mac, iPad, Apple Watch and AirPods, will be manufactured outside China by 2025 from 5% currently.
iPhone shipment projectionshttps://tmsnrt.rs/3tlDRjP
iPhone supplier order allocationhttps://tmsnrt.rs/3A80098
Large bite out of the applehttps://tmsnrt.rs/3fVmSSe
(Reporting by Sudarshan Varadhan; Additional reporting by Yimou Lee, Ben Blanchard and Sarah Wu in Taipei and Paresh Dave in San Francisco; Writing by Munsif Vengattil and Aditya Kalra; Editing by Miyoung Kim and Stephen Coates)
((aditya.kalra@tr.com; Twitter @adityakalra;))
The views and 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 Sudarshan Varadhan and Yimou Lee NEW DELHI/TAIPEI, Nov 11 (Reuters) - Apple AAPL.O supplier Foxconn 2317.TW plans to quadruple the workforce at its iPhone factory in India over two years, two government officials with knowledge of the matter said, pointing to a production adjustment as it faces disruptions in China. Foxconn Chairman Liu Young-way said on anearnings callon Thursday the company would adjust its production capacity and output so there was no impact from further potential disruptions on supplies for the Christmas and Lunar New Year holidays. iPhone shipment projectionshttps://tmsnrt.rs/3tlDRjP iPhone supplier order allocationhttps://tmsnrt.rs/3A80098 Large bite out of the applehttps://tmsnrt.rs/3fVmSSe (Reporting by Sudarshan Varadhan; Additional reporting by Yimou Lee, Ben Blanchard and Sarah Wu in Taipei and Paresh Dave in San Francisco; Writing by Munsif Vengattil and Aditya Kalra; Editing by Miyoung Kim and Stephen Coates) ((aditya.kalra@tr.com; Twitter @adityakalra;)) The views and 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 Sudarshan Varadhan and Yimou Lee NEW DELHI/TAIPEI, Nov 11 (Reuters) - Apple AAPL.O supplier Foxconn 2317.TW plans to quadruple the workforce at its iPhone factory in India over two years, two government officials with knowledge of the matter said, pointing to a production adjustment as it faces disruptions in China. Foxconn has shared its plans with Tamil Nadu officials about accelerating its hiring efforts at the Indian plant due to disruptions in China, said the first government source. A person in Taiwan with knowledge of the matter said Foxconn was expanding its operations in India to increase its capacity for basic models and to meet Indian demand.
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By Sudarshan Varadhan and Yimou Lee NEW DELHI/TAIPEI, Nov 11 (Reuters) - Apple AAPL.O supplier Foxconn 2317.TW plans to quadruple the workforce at its iPhone factory in India over two years, two government officials with knowledge of the matter said, pointing to a production adjustment as it faces disruptions in China. While the size of the plant in India's southern state of Tamil Nadu is dwarfed by Foxconn's Zhengzhou plant, which employs 200,000 workers, it is central to Apple's efforts to shift production away from China. Foxconn has shared its plans with Tamil Nadu officials about accelerating its hiring efforts at the Indian plant due to disruptions in China, said the first government source.
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By Sudarshan Varadhan and Yimou Lee NEW DELHI/TAIPEI, Nov 11 (Reuters) - Apple AAPL.O supplier Foxconn 2317.TW plans to quadruple the workforce at its iPhone factory in India over two years, two government officials with knowledge of the matter said, pointing to a production adjustment as it faces disruptions in China. While the size of the plant in India's southern state of Tamil Nadu is dwarfed by Foxconn's Zhengzhou plant, which employs 200,000 workers, it is central to Apple's efforts to shift production away from China. The second government source in India, a senior official in the Tamil Nadu administration, said the state government was working with Foxconn in "finalising" the expansion.
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18464.0
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2022-11-11 00:00:00 UTC
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China eases COVID rules, including shortening quarantines
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AAPL
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https://www.nasdaq.com/articles/china-eases-covid-rules-including-shortening-quarantines
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nan
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nan
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By Ryan Woo and Tony Munroe
BEIJING, Nov 11 (Reuters) - China on Friday eased some of its draconian COVID rules, including shortening quarantines by two days for close contacts of infected people and for inbound travellers, and removing a penalty for airlines for bringing in too many cases.
The loosening of the rules, which came a day after China's new Politburo Standing Committee discussed COVID during a meeting chaired by President Xi Jinping, cheered markets, with Shanghai's benchmark CSI 300 .CSI300 jumping 3% and the yuan currency extending gains to a one-month high.
Under the new rules, centralised quarantine times for close contacts and travellers from abroad were shortened from seven days to five days. The requirement for three further days in home isolation after centralised quarantine remains.
China will also stop trying to identify "secondary" contacts - a major annoyance for residents of cities who find themselves caught up in sweeping contact-tracing efforts when a case is found - while still identifying close contacts.
"Optimising and adjusting prevention and control measures is not relaxing prevention and control, let alone opening up and 'laying flat', but to adapt to the new situation of epidemic prevention and control and the new characteristics of COVID-19 mutation," the National Health Commission (NHC) said.
Also, China is adjusting its categorisation of COVID risk areas to simply "high" and "low" risk - eliminating the "medium" category, an effort to minimise the number of people coming under control measures.
The NHC also said it would develop a plan to accelerate vaccinations, which experts say is widely needed before the country can begin more fully dialing-back of a zero-COVID policy that has made China a global outlier and inflicted significant economic costs.
The easing of rules comes even as case numbers surge to their highest in months, with Beijing and the central city of Zhengzhou seeing record tallies.
Authorities reported 10,535 new domestically transmitted cases for Thursday, a low number by global standards but China's highest number since April 29, when the commercial hub of Shanghai, was battling its most serious outbreak under strict lockdown.
'STAY AT HOME'
The southern city of Guangzhou - a manufacturing and transport hub and the new epicentre of China's COVID fight - reported 2,824 new local cases for Thursday, the fourth day in which infections exceeded 2,000.
Driving the surge were cases in the populous Haizhu district, which on Friday extended a lockdown until Sunday. At least three of Guangzhou's 11 districts have been put under some sort of restriction.
"All residents are required to stay at home," the district government said in a statement. "Only one person in each household is allowed to buy daily necessities on a staggered schedule."
All public transit in the district of 1.8 million people has been suspended, and mandatory PCR tests will be administered to "every household and every individual", it said.
Will Zhang, 30, a post-graduate student, said universities in Guangzhou have been put under curbs, including a sprawling university town in Panyu district with more than a dozen institutions and a population of more than 300,000.
"Since yesterday, campuses located inside the Guangzhou University Town have been under a lockdown where people are only allowed to leave but not enter," Zhang said.
In some cases, construction cranes have been used to deliver food to students locked in multi-storey dorms, he said.
Beijing, Zhengzhou and Chongqing also tightened measures as daily cases rose to around all-time highs.
Zhengzhou, capital of central Henan province, reported 2,988 new cases, more than double from a day earlier, in a widening outbreak that has thrown an iPhone assembly plant of Apple supplier Foxconn2317.TW into chaos.
In the southwestern metropolis of Chongqing, cases remained in the triple digits all week, with a new high of 783 on Thursday. Some districts on Friday banned dining at restaurants and some subway stations were closed.
Beijing reported a record 118 new domestic cases for Thursday, which is still low compared with other Chinese cities.
Authorities in many parts of the city of nearly 22 million people have urged residents to take daily PCR tests, or be barred entry to public spaces including offices, leisure venues and fitness centres.
Sanya, a beach resort city in the southern island province of Hainan, said it would launch a round of mass testing on Saturday.
"This meeting further illustrates policymakers have started to focus more on optimising the COVID control policies," Goldman Sachs said in a note following Thursday's Politburo Standing Committee meeting but before Friday's announcement.
"We continue to expect policymakers to start preparation work for the gradual relaxation of the 'dynamic Zero Covid' policy stance while the actual relaxation might only begin by the second quarter next year."
(Reporting by Ryan Woo and Tony Munroe; Additional reporting by Josh Ye in Hong Kong and Jason Xue in Shanghai; Editing by Gerry Doyle, Robert Birsel)
((Ryan.Woo@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Ryan Woo and Tony Munroe BEIJING, Nov 11 (Reuters) - China on Friday eased some of its draconian COVID rules, including shortening quarantines by two days for close contacts of infected people and for inbound travellers, and removing a penalty for airlines for bringing in too many cases. The loosening of the rules, which came a day after China's new Politburo Standing Committee discussed COVID during a meeting chaired by President Xi Jinping, cheered markets, with Shanghai's benchmark CSI 300 .CSI300 jumping 3% and the yuan currency extending gains to a one-month high. The NHC also said it would develop a plan to accelerate vaccinations, which experts say is widely needed before the country can begin more fully dialing-back of a zero-COVID policy that has made China a global outlier and inflicted significant economic costs.
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By Ryan Woo and Tony Munroe BEIJING, Nov 11 (Reuters) - China on Friday eased some of its draconian COVID rules, including shortening quarantines by two days for close contacts of infected people and for inbound travellers, and removing a penalty for airlines for bringing in too many cases. The easing of rules comes even as case numbers surge to their highest in months, with Beijing and the central city of Zhengzhou seeing record tallies. Authorities reported 10,535 new domestically transmitted cases for Thursday, a low number by global standards but China's highest number since April 29, when the commercial hub of Shanghai, was battling its most serious outbreak under strict lockdown.
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By Ryan Woo and Tony Munroe BEIJING, Nov 11 (Reuters) - China on Friday eased some of its draconian COVID rules, including shortening quarantines by two days for close contacts of infected people and for inbound travellers, and removing a penalty for airlines for bringing in too many cases. Authorities reported 10,535 new domestically transmitted cases for Thursday, a low number by global standards but China's highest number since April 29, when the commercial hub of Shanghai, was battling its most serious outbreak under strict lockdown. The southern city of Guangzhou - a manufacturing and transport hub and the new epicentre of China's COVID fight - reported 2,824 new local cases for Thursday, the fourth day in which infections exceeded 2,000.
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By Ryan Woo and Tony Munroe BEIJING, Nov 11 (Reuters) - China on Friday eased some of its draconian COVID rules, including shortening quarantines by two days for close contacts of infected people and for inbound travellers, and removing a penalty for airlines for bringing in too many cases. The easing of rules comes even as case numbers surge to their highest in months, with Beijing and the central city of Zhengzhou seeing record tallies. "This meeting further illustrates policymakers have started to focus more on optimising the COVID control policies," Goldman Sachs said in a note following Thursday's Politburo Standing Committee meeting but before Friday's announcement.
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18465.0
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2022-11-11 00:00:00 UTC
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EXCLUSIVE-Apple supplier Foxconn plans to quadruple workforce at India plant-sources
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AAPL
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https://www.nasdaq.com/articles/exclusive-apple-supplier-foxconn-plans-to-quadruple-workforce-at-india-plant-sources
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nan
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nan
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By Sudarshan Varadhan and Yimou Lee
NEW DELHI/TAIPEI, Nov 11 (Reuters) - Apple AAPL.O supplier Foxconn 2317.TW plans to quadruple the workforce at its iPhone factory in India over two years, two government officials with knowledge of the matter said, pointing to a production adjustment as it faces disruptions in China.
Foxconn has grabbed headlines in recent weeks, with tight virus restrictions at its Zhengzhou plant, the world's largest iPhone factory, disturbing production and fuelling concerns over the impact of China's virus policy on global supply chains.
The disruptions prompted Apple to lower its forecast for shipments of the premium iPhone 14 models this week, dampening its sales outlook for the busy year-end holiday season.
Taiwan-based Foxconn now plans to boost the workforce at its plant in southern India to 70,000 by adding 53,000 more workers over the next two years, said the sources, who declined to be named as the discussions are private.
While the size of the plant in India's southern state of Tamil Nadu is dwarfed by Foxconn's Zhengzhou plant, which employs 200,000 workers, it is central to Apple's efforts to shift production away from China.
Foxconn, formally called Hon Hai Precision Industry Co Ltd, opened the India plant in 2019 and has been ramping up production. It began producing iPhone 14 this year.
Foxconn's interest in expanding the facility is known, but the scale of the planned expansion and timelines have previously not been reported.
Both Foxconn and Apple declined to comment.
Foxconn Chairman Liu Young-way said on anearnings callon Thursday the company would adjust its production capacity and output so there was no impact from further potential disruptions on supplies for the Christmas and Lunar New Year holidays.
Foxconn has shared its plans with Tamil Nadu officials about accelerating its hiring efforts at the Indian plant due to disruptions in China, said the first government source.
Beyond iPhones, the plant also manufactures products for other global tech firms, but the new hiring push is mainly driven by its need to meet growing iPhone demand, the person added.
A person in Taiwan with knowledge of the matter said Foxconn was expanding its operations in India to increase its capacity for basic models and to meet Indian demand.
"We are gradually increasing our production scale there," the person said, declining to give details on its hiring plans in India.
The second government source in India, a senior official in the Tamil Nadu administration, said the state government was working with Foxconn in "finalising" the expansion.
On Oct. 27, the state's investment promotion arm tweeted that top government officials had travelled to Taiwan and met Liu. They had "elaborately discussed Foxconn's plans for new ventures and investments" and offered the government's support.
The state was having discussions with the suppliers to address issues such as housing facilities for workers as it looked to expand, the first government official said.
Last year, Foxconn's Tamil Nadu plant was at the centre of a mass food-poisoning incident which sparked employee protests and threw light on the living conditions of the workers in hostels near the factory.
Officials at Tamil Nadu, a hub of electronic and automotive manufacturing, were also pushing Apple suppliers to branch out into manufacturing components for iPhones beyond just assembly, the two government sources added.
Currently, iPhones are assembled in India by at least three of Apple's global suppliers: Foxconn and Pegatron 4938.TW in Tamil Nadu; and Wistron 3231.TW in nearby Karnataka state.
JP Morgan analysts estimated in September that Apple may make one out of four iPhones in India by 2025, and 25% of all Apple products, including Mac, iPad, Apple Watch and AirPods, will be manufactured outside China by 2025 from 5% currently.
(Reporting by Sudarshan Varadhan; Additional reporting by Yimou Lee, Ben Blanchard and Sarah Wu in Taipei and Paresh Dave in San Francisco; Writing by Munsif Vengattil and Aditya Kalra; Editing by Miyoung Kim and Stephen Coates)
((aditya.kalra@tr.com; Twitter @adityakalra;))
The views and 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 Sudarshan Varadhan and Yimou Lee NEW DELHI/TAIPEI, Nov 11 (Reuters) - Apple AAPL.O supplier Foxconn 2317.TW plans to quadruple the workforce at its iPhone factory in India over two years, two government officials with knowledge of the matter said, pointing to a production adjustment as it faces disruptions in China. Foxconn Chairman Liu Young-way said on anearnings callon Thursday the company would adjust its production capacity and output so there was no impact from further potential disruptions on supplies for the Christmas and Lunar New Year holidays. Last year, Foxconn's Tamil Nadu plant was at the centre of a mass food-poisoning incident which sparked employee protests and threw light on the living conditions of the workers in hostels near the factory.
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By Sudarshan Varadhan and Yimou Lee NEW DELHI/TAIPEI, Nov 11 (Reuters) - Apple AAPL.O supplier Foxconn 2317.TW plans to quadruple the workforce at its iPhone factory in India over two years, two government officials with knowledge of the matter said, pointing to a production adjustment as it faces disruptions in China. Foxconn has shared its plans with Tamil Nadu officials about accelerating its hiring efforts at the Indian plant due to disruptions in China, said the first government source. A person in Taiwan with knowledge of the matter said Foxconn was expanding its operations in India to increase its capacity for basic models and to meet Indian demand.
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By Sudarshan Varadhan and Yimou Lee NEW DELHI/TAIPEI, Nov 11 (Reuters) - Apple AAPL.O supplier Foxconn 2317.TW plans to quadruple the workforce at its iPhone factory in India over two years, two government officials with knowledge of the matter said, pointing to a production adjustment as it faces disruptions in China. While the size of the plant in India's southern state of Tamil Nadu is dwarfed by Foxconn's Zhengzhou plant, which employs 200,000 workers, it is central to Apple's efforts to shift production away from China. Foxconn has shared its plans with Tamil Nadu officials about accelerating its hiring efforts at the Indian plant due to disruptions in China, said the first government source.
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By Sudarshan Varadhan and Yimou Lee NEW DELHI/TAIPEI, Nov 11 (Reuters) - Apple AAPL.O supplier Foxconn 2317.TW plans to quadruple the workforce at its iPhone factory in India over two years, two government officials with knowledge of the matter said, pointing to a production adjustment as it faces disruptions in China. While the size of the plant in India's southern state of Tamil Nadu is dwarfed by Foxconn's Zhengzhou plant, which employs 200,000 workers, it is central to Apple's efforts to shift production away from China. The second government source in India, a senior official in the Tamil Nadu administration, said the state government was working with Foxconn in "finalising" the expansion.
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18466.0
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2022-11-11 00:00:00 UTC
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Should You Invest in the Invesco DWA Technology Momentum ETF (PTF)?
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AAPL
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https://www.nasdaq.com/articles/should-you-invest-in-the-invesco-dwa-technology-momentum-etf-ptf-3
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nan
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nan
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Looking for broad exposure to the Technology - Broad segment of the equity market? You should consider the Invesco DWA Technology Momentum ETF (PTF), a passively managed exchange traded fund launched on 10/12/2006.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 4, placing it in top 25%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $206.26 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Broad segment of the equity market. PTF seeks to match the performance of the DWA Technology Technical Leaders Index before fees and expenses.
The Dorsey Wright??Technology Technical Leaders Index identifies companies that are showing relative strength and are composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on US exchanges.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.60%, making it on par with most peer products in the space.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 85.60% of the portfolio. Industrials and Telecom round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.47% of total assets, followed by Monolithic Power Systems Inc (MPWR) and Array Technologies Inc (ARRY).
The top 10 holdings account for about 44.33% of total assets under management.
Performance and Risk
The ETF has lost about -28.87% and is down about -32.48% so far this year and in the past one year (as of 11/11/2022), respectively. PTF has traded between $101.47 and $184.09 during this last 52-week period.
The ETF has a beta of 1.20 and standard deviation of 40.14% for the trailing three-year period, making it a high risk choice in the space. With about 34 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco DWA Technology Momentum ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PTF is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $39.51 billion in assets, Vanguard Information Technology ETF has $40.73 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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
Invesco DWA Technology Momentum ETF (PTF): ETF Research Reports
Apple Inc. (AAPL): Free Stock Analysis Report
Monolithic Power Systems, Inc. (MPWR): Free Stock Analysis Report
Array Technologies, Inc. (ARRY): Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.47% of total assets, followed by Monolithic Power Systems Inc (MPWR) and Array Technologies Inc (ARRY). Apple Inc. (AAPL): Free Stock Analysis Report Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.47% of total assets, followed by Monolithic Power Systems Inc (MPWR) and Array Technologies Inc (ARRY). Apple Inc. (AAPL): Free Stock Analysis Report You should consider the Invesco DWA Technology Momentum ETF (PTF), a passively managed exchange traded fund launched on 10/12/2006.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.47% of total assets, followed by Monolithic Power Systems Inc (MPWR) and Array Technologies Inc (ARRY). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives Invesco DWA Technology Momentum ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.47% of total assets, followed by Monolithic Power Systems Inc (MPWR) and Array Technologies Inc (ARRY). Apple Inc. (AAPL): Free Stock Analysis Report PTF seeks to match the performance of the DWA Technology Technical Leaders Index before fees and expenses.
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18467.0
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2022-11-10 00:00:00 UTC
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Why Big Tech Stocks Apple, Microsoft, and Intel Ripped Higher Today
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AAPL
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https://www.nasdaq.com/articles/why-big-tech-stocks-apple-microsoft-and-intel-ripped-higher-today
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nan
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nan
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What happened
Shares of big tech stocks Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Intel (NASDAQ: INTC) all moved significantly higher today, rocketing 6.2%, 6.6%, and 5.5%, respectively, as of 12:33 p.m. ET.
Those are massive moves for companies that big, but today was no ordinary day. After basically a year of negative surprises in the monthly Consumer Price Index (CPI) releases, with some exceptions, today's CPI print was lower than expected, fueling hopes of a Federal Reserve pause on its aggressive interest rate hikes.
These tech giants are each at least partially exposed to the troubled PC sector, which has been one of the hardest-hit areas of tech. While enterprise spending on cloud and servers has been hanging in, the prospect of more interest rate hikes or recession had led to fears another shoe was to drop. So today's print was especially positive, given that the sooner inflation declines, the sooner the Fed can stop hiking interest rates, and the greater the possibility of avoiding a recession.
So what
Obviously, Apple and Microsoft make the two main operating systems for virtually all PCs, and Intel's largest business segment is its PC processors. Therefore, each stock had seen a big sell-off this year, despite their size, moats, and relatively limited competition.
Of note, technology research firm Gartner projects that third-quarter PC shipments were down a stunning 19.5% year over year -- the biggest drop since it began tracking PC shipments in the 1990s.
So why is today's CPI print so important in relation to PC sales? Well, the rapidly rising interest rate hikes tend to hit interest rate-sensitive items hardest first, which are usually big-ticket items like housing, autos, home electronics, and business fixed investments, which these days include data centers and enterprise PCs.
Add to that the fact that so many consumers bought new computers during the 2020-2021 timeframe, and could therefore defer the purchase of a new computer, and the rapid shift in rates led to a huge air pocket in PC sales. So, the potential for a pause in interest rate hikes could give big-ticket items a boost from their current severe downturn.
Apple has held up much better than others, as it had fallen "only" 23.6% this year, as opposed to 32.8% for Microsoft and 44.5% for Intel.
AAPL Year to Date Total Returns (Daily) data by YCharts
It's somewhat surprising that Apple has done better than Microsoft, given that it was thought consumer spending on electronics is generally weaker than enterprise spending. Microsoft's More Personal Computing segment, which is geared toward consumer-facing PCs, video games, and Bing digital advertising, is only 30% or so of the business, as opposed to Apple being predominantly a consumer-facing company, so it's strange that Apple had held up better than Microsoft this year. The outperformance does go to show how strong Apple's brand is and how much of a staple the iPhone is.
Intel has really been feeling the pain of the PC downturn this year, because that had been the company's cash cow. New Intel CEO Pat Gelsinger has ambitious plans to catch up to Taiwan Semiconductor Manufacturing in leading-edge semiconductors by achieving five node transitions in four years, while also building out a massive foundry ecosystem to serve third-party chip designers.
That's incredibly hard and very expensive to do, which is why the plummet in PC sales has been so harmful to Intel this year, as it deprived the company of needed cash to execute its investment plans. That's why Intel has traded down to just a single-digit P/E ratio this year.
Given the shellacking these stocks have already taken, and given that the market is forward looking, it's no surprise they are ripping higher at the prospect of inflation cooling off.
Now what
Given the lags with which the Fed's economic policy operates, investors should know that while inflation is slowing, it's because the economy is also slowing. Over the coming months, the Fed will try to keep rates high enough to cool inflation further, without tipping the economy into a recession. Despite today's rally, that's still a tricky proposition.
A recession would be bad news for all stocks, but of these three, especially Intel, since it is in a capital-intensive hardware business.
On the other hand, today's promising CPI print could allow the Fed to slow down or even stop its rate increases. That would be good for all economically sensitive stocks, as long as the economy doesn't have too bad of a downturn.
As is often the case, Apple and Microsoft still look like strong core holdings for the long term, even in spite of this year's declines. With Intel, an investment really comes down to your belief in CEO Pat Gelsinger's vision and ability to execute. If the turnaround works, Intel stands to have the most upside of these three names; however, if all that spending doesn't result in solid returns or Intel catching up to Taiwan Semi in leading-edge technology, it could be a problem, even if Intel's stock does look cheap today.
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Billy Duberstein has positions in Apple, Microsoft, and Taiwan Semiconductor Manufacturing 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 Apple, Intel, Microsoft, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Gartner 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 2023 $57.50 puts on Intel, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of big tech stocks Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Intel (NASDAQ: INTC) all moved significantly higher today, rocketing 6.2%, 6.6%, and 5.5%, respectively, as of 12:33 p.m. AAPL Year to Date Total Returns (Daily) data by YCharts It's somewhat surprising that Apple has done better than Microsoft, given that it was thought consumer spending on electronics is generally weaker than enterprise spending. While enterprise spending on cloud and servers has been hanging in, the prospect of more interest rate hikes or recession had led to fears another shoe was to drop.
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What happened Shares of big tech stocks Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Intel (NASDAQ: INTC) all moved significantly higher today, rocketing 6.2%, 6.6%, and 5.5%, respectively, as of 12:33 p.m. AAPL Year to Date Total Returns (Daily) data by YCharts It's somewhat surprising that Apple has done better than Microsoft, given that it was thought consumer spending on electronics is generally weaker than enterprise spending. So today's print was especially positive, given that the sooner inflation declines, the sooner the Fed can stop hiking interest rates, and the greater the possibility of avoiding a recession.
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What happened Shares of big tech stocks Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Intel (NASDAQ: INTC) all moved significantly higher today, rocketing 6.2%, 6.6%, and 5.5%, respectively, as of 12:33 p.m. AAPL Year to Date Total Returns (Daily) data by YCharts It's somewhat surprising that Apple has done better than Microsoft, given that it was thought consumer spending on electronics is generally weaker than enterprise spending. If the turnaround works, Intel stands to have the most upside of these three names; however, if all that spending doesn't result in solid returns or Intel catching up to Taiwan Semi in leading-edge technology, it could be a problem, even if Intel's stock does look cheap today.
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What happened Shares of big tech stocks Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Intel (NASDAQ: INTC) all moved significantly higher today, rocketing 6.2%, 6.6%, and 5.5%, respectively, as of 12:33 p.m. AAPL Year to Date Total Returns (Daily) data by YCharts It's somewhat surprising that Apple has done better than Microsoft, given that it was thought consumer spending on electronics is generally weaker than enterprise spending. That would be good for all economically sensitive stocks, as long as the economy doesn't have too bad of a downturn.
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18468.0
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2022-11-10 00:00:00 UTC
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4 Solid Stocks to Watch on a Booming Metaverse Space
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AAPL
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https://www.nasdaq.com/articles/4-solid-stocks-to-watch-on-a-booming-metaverse-space
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nan
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nan
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The COVID-19 pandemic has brought about a major social change and made life dependent on the digital world. The pandemic taught people to work, learn and shop remotely, order food and other necessities online, go for contactless payments and restrict themselves to indoor entertainment like playing video games.
The virtual world, or metaverse, which is reachable to millions globally for business, communication, learning, entertainment, and more, is thus gradually taking control of our present and future.
A Metaverse Future With Huge Growth Potential
The metaverse is the most recent development in the digitization field. In a nutshell, a metaverse is a collaborative and participatory virtual universe. Metaverse includes virtual reality, which is characterized by persistent virtual environments that exist even when one is not playing, and augmented reality, which fuses elements of the digital and real worlds.
Experts believe that the metaverse universe has just begun its journey and holds immense potential for the future.
According to a recent report by the management consulting company McKinsey, consumer and business use cases for the metaverse are projected to generate $4-$5 trillion by 2030. Another report from market research firm BlueWeave Consulting shows that the global metaverse market was worth $40.7 billion in 2021 and will witness a CAGR of 40.5%, generating revenues of more than $439 billion by 2028.
The metaverse world was taking baby steps till some time back but the pandemic gave it a sudden push as an increasing number of people became dependent on technology. Demand for working and learning from home, or shopping and paying bills online, which picked up during the peak of the pandemic, is now the new normal.
At the same time, this space has increased the adoption of non-fungible tokens and cryptocurrencies. Astute investors, thus, should keep a watch on businesses that are positioned to gain from the expanding metaverse market.
Stocks to Watch
We have narrowed our search to four stocks whose growth will be propelled by the metaverse expansion. These are Apple, Inc. AAPL, Snap Inc. SNAP, Autodesk, Inc. ADSK and NVIDIA Corporation NVDA. These companies currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Apple, Inc. encourages app developers to include machine learning and artificial intelligence in their apps. A long-term growth opportunity is presented by AAPL's concentration on driverless vehicles and augmented reality/virtual reality technologies. Over the years, Apple has bought a number of smaller businesses with expertise in AR hardware, 3D gaming, and VR software namely SensoMotoric, Flyby Media, Emotient, TupleJump, Turi, Metaio, PrimeSense, and Lattice Data Inc. in order to step up its efforts.
Apple’s expected earnings growth for the current year is 3.4%. AAPL reported fourth-quarter fiscal 2022 earnings of $1.29 per share, beating the Zacks Consensus Estimate of $1.26 per share. Apple has reported an earnings beat in each of the last four reported quarters.
Snap Inc. is focusing on creating AR hardware through its Spectacle smart glasses. The company's AR lenses have gained significant popularity, especially since the release of Lens Studio 2. In collaboration with Verizon, Snap unveiled its first Landmarker Lens (a brand-new tool for superimposing augmented reality on the real world) around the end of 2020. The Lens takes advantage of Verizon's 5G Ultra-Wideband capabilities with SNAP's augmented reality technology.
The widespread use of items like Scan and AR Bar is propelling the use of AR-based lenses and offering SNAP considerable growth opportunities. Additionally, it is anticipated that the introduction of Local Lenses, which permits shared and permanent AR experiences across far broader geographic regions, will increase user engagement.
Snap’s expected earnings growth for next year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the past 60 days.
Autodesk, Inc. is expected to make long-term gains from its business transition from perpetual licensing to cloud-based subscription services. Top-line growth is expected to be fueled by increased demand for Autodesk's cloud-based (BIM 360 cloud platform, Shotgun, and Fusion Lifecycle), mobile (AutoCAD 360), and design suite solutions. Aside from its e-store, ADSK also gains from its investment in digital infrastructure.
Autodesk’s expected earnings growth for the current year is 30.2%. The Zacks Consensus Estimate for current-year earnings has improved 1% over the past 60 days.
NVIDIA's robust portfolio of cutting-edge graphics cards has made it a popular graphics card supplier and is anticipated to aid the business's entry into the metaverse gaming market. In this respect, NVDA's Omniverse is also noteworthy. Omniverse is a shared platform where live interactions between users and applications happen with real-time speed and virtual reality thanks to its RTX technology.
NVIDIA’s expected earnings growth for next year is 30.1%. Shares of NVDA have gained 14% in the past 30 days.
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
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Autodesk, Inc. (ADSK): Free Stock Analysis Report
Snap Inc. (SNAP): 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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These are Apple, Inc. AAPL, Snap Inc. A long-term growth opportunity is presented by AAPL's concentration on driverless vehicles and augmented reality/virtual reality technologies. AAPL reported fourth-quarter fiscal 2022 earnings of $1.29 per share, beating the Zacks Consensus Estimate of $1.26 per share.
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Apple Inc. (AAPL): Free Stock Analysis Report These are Apple, Inc. AAPL, Snap Inc. A long-term growth opportunity is presented by AAPL's concentration on driverless vehicles and augmented reality/virtual reality technologies.
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AAPL reported fourth-quarter fiscal 2022 earnings of $1.29 per share, beating the Zacks Consensus Estimate of $1.26 per share. These are Apple, Inc. AAPL, Snap Inc. A long-term growth opportunity is presented by AAPL's concentration on driverless vehicles and augmented reality/virtual reality technologies.
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These are Apple, Inc. AAPL, Snap Inc. A long-term growth opportunity is presented by AAPL's concentration on driverless vehicles and augmented reality/virtual reality technologies. AAPL reported fourth-quarter fiscal 2022 earnings of $1.29 per share, beating the Zacks Consensus Estimate of $1.26 per share.
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18469.0
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2022-11-10 00:00:00 UTC
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Breaking Down Target (TGT) Stock Before Q3 Earnings
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AAPL
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https://www.nasdaq.com/articles/breaking-down-target-tgt-stock-before-q3-earnings
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nan
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With Target TGT trading 39% off its high, investors are eagerly looking toward its Q3 earnings report on November 16.
The better than expected consumer price Index (CPI) numbers for October should boost optimism surrounding the retail giant’s report. TGT’s third quarter report will also give further insight into consumer spending amid an economic downturn.
The Basics
Target stock has been hit harder than competitor Walmart WMT, which is also set to report next week. Target struggled during the second quarter due to excess inventory amid slower consumer spending and rising inflation. Profits in Q2 fell by more than 90% as the company was forced to sell the excess inventory at steep discounts.
Like Walmart, Target has evolved into more than just a brick & mortar retailer. Target has strived for technological advancements across its website and mobile apps to compete with e-commerce companies such as Amazon AMZN and eBay EBAY.
The company also sells merchandise through periodic exclusive design, creative partnerships, and shop-in-shop experiences, with partners such as Apple AAPL, Disney DIS, Levi's LEVI, and Ulta Beauty ULTA. Target also generates revenue from in-store amenities such as Target Café, Starbucks SBUX, and Target Optical, becoming a one-stop shop for consumers.
Investors hope that the decline in TGT stock over the last year will turn out to be a long-term buying opportunity. This makes the company’s Q3 report and outlook critical for the stock as Target has now missed earnings expectations for two consecutive quarters.
Image Source: Zacks Investment Research
Q3 Outlook
The Zacks Consensus Estimate for TGT’s Q3 earnings is $2.14 per share, which would be a decline of -29% from the year prior quarter. Sales for Q3 are expected to be up 3% at $26.36 billion. This is an indication that operating costs are weighing on Target’s profits although the company says inventory issues are behind it.
Earnings estimates for the period are down from $2.42 at the beginning of the quarter. Year over year, TGT earnings are expected to decline -40% to $8.09 per share. However, fiscal 2024 earnings are projected to stabilize and rise 49% to $12.11 per share.
Top line growth is expected, with sales set to rise 3% in fiscal 2023 and another 3% in FY24 to $113.78 billion. This is after the company has already experienced huge top line growth over the last five years.
Performance & Valuation
Year to date, TGT is down -29% to underperform the S&P 500’s -22%. Despite the recent fall, TGT stock is up +208% over the last five years when including its solid dividend to blast the performance of the benchmark and beat its peer group’s +93%.
Image Source: Zacks Investment Research
Target’s performance over the last five years and its current valuation are reasons to believe its drop could indeed be an opportunity for longer-term investors. Trading around $164 per share, TGT has a P/E of 18.9X. This is below the industry average of 22.5X. Even better, TGT trades nicely below its decade-high of 26.8X and closer to the median of 15.9X.
Image Source: Zacks Investment Research
Bottom Line
TGT currently lands a Zacks Rank #3 (Hold) and its Retail-Discount Stores Industry is in the top 23% of over 250 Zacks Industries. Trading attractively relative to its past, patient investors may be rewarded for holding Target stock, especially with the approaching holiday season. TGT also offers a generous 2.82% annual dividend yield at $4.32 a share, and the Average Zacks Price Target suggests 26% upside from current levels.
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
Target Corporation (TGT): Free Stock Analysis Report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Walmart Inc. (WMT): Free Stock Analysis Report
Starbucks Corporation (SBUX): Free Stock Analysis Report
eBay Inc. (EBAY): Free Stock Analysis Report
The Walt Disney Company (DIS): Free Stock Analysis Report
Ulta Beauty Inc. (ULTA): Free Stock Analysis Report
Levi Strauss & Co. (LEVI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company also sells merchandise through periodic exclusive design, creative partnerships, and shop-in-shop experiences, with partners such as Apple AAPL, Disney DIS, Levi's LEVI, and Ulta Beauty ULTA. Apple Inc. (AAPL): Free Stock Analysis Report Despite the recent fall, TGT stock is up +208% over the last five years when including its solid dividend to blast the performance of the benchmark and beat its peer group’s +93%.
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The company also sells merchandise through periodic exclusive design, creative partnerships, and shop-in-shop experiences, with partners such as Apple AAPL, Disney DIS, Levi's LEVI, and Ulta Beauty ULTA. Apple Inc. (AAPL): Free Stock Analysis Report Image Source: Zacks Investment Research Q3 Outlook The Zacks Consensus Estimate for TGT’s Q3 earnings is $2.14 per share, which would be a decline of -29% from the year prior quarter.
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The company also sells merchandise through periodic exclusive design, creative partnerships, and shop-in-shop experiences, with partners such as Apple AAPL, Disney DIS, Levi's LEVI, and Ulta Beauty ULTA. Apple Inc. (AAPL): Free Stock Analysis Report Image Source: Zacks Investment Research Q3 Outlook The Zacks Consensus Estimate for TGT’s Q3 earnings is $2.14 per share, which would be a decline of -29% from the year prior quarter.
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The company also sells merchandise through periodic exclusive design, creative partnerships, and shop-in-shop experiences, with partners such as Apple AAPL, Disney DIS, Levi's LEVI, and Ulta Beauty ULTA. Apple Inc. (AAPL): Free Stock Analysis Report Image Source: Zacks Investment Research Q3 Outlook The Zacks Consensus Estimate for TGT’s Q3 earnings is $2.14 per share, which would be a decline of -29% from the year prior quarter.
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18470.0
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2022-11-10 00:00:00 UTC
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Buffett's Berkshire sheds large portion of US Bancorp stake
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AAPL
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https://www.nasdaq.com/articles/buffetts-berkshire-sheds-large-portion-of-us-bancorp-stake
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nan
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nan
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Nov 10 (Reuters) - Berkshire Hathaway Inc BRKa.N, the conglomerate run by billionaire Warren Buffett, said on Thursday it has shed more than 91 million US Bancorp USB.N shares since the start of the year, reducing its stake in the fifth-largest U.S. bank by 63%.
In a regulatory filing, Berkshire said it owned just over 53 million U.S. Bancorp shares, for a 3.6% stake, on Oct. 31, down from 144.7 million shares, or 9.8%, on Dec. 31, 2021.
Berkshire began investing in the Minneapolis-based bank in 2006, according to regulatory filings.
It not did give a reason for the reduction or say if it has sold more stock in November. Buffett does not discuss his stock purchases and sales while they are ongoing.
U.S. Bancorp and Buffett's assistant did not immediately respond to requests for comment after market hours.
Shares of U.S. Bancorp closed Thursday at $44.87. They have fallen 20% this year.
Banks and other financial services companies normally comprise a large percentage of Berkshire's equity portfolio, which totaled $306.2 billion as of Sept. 30.
The Omaha, Nebraska-based company ended September with a $31.2 billion stake in Bank of America Corp BAC.N, the second-largest U.S. bank, and recently held large stakes in American Express Co AXP.N and Bank of New York Mellon Corp BK.N.
It has in recent years also held and sold multi-billion-dollar stakes in Goldman Sachs Group Inc GS.N, JPMorgan Chase & Co JPM.N and Wells Fargo & Co WFC.N.
Apple Inc AAPL.O is Berkshire's largest common stock investment. Berkshire owned $126.5 billion of the iPhone maker's shares on Sept. 30.
On Nov. 14, Berkshire is expected in a regulatory filing to disclose more information about its U.S.-listed stock holdings.
Buffett, 92, has run Berkshire since 1965. The conglomerate also owns several dozen companies including the BNSF railroad, Geico auto insurer, energy and industrial businesses, and consumer products such as Dairy Queen ice cream.
(Reporting by Jonathan Stempel in New York; Editing by Leslie Adler)
((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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Apple Inc AAPL.O is Berkshire's largest common stock investment. Nov 10 (Reuters) - Berkshire Hathaway Inc BRKa.N, the conglomerate run by billionaire Warren Buffett, said on Thursday it has shed more than 91 million US Bancorp USB.N shares since the start of the year, reducing its stake in the fifth-largest U.S. bank by 63%. It has in recent years also held and sold multi-billion-dollar stakes in Goldman Sachs Group Inc GS.N, JPMorgan Chase & Co JPM.N and Wells Fargo & Co WFC.N.
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Apple Inc AAPL.O is Berkshire's largest common stock investment. In a regulatory filing, Berkshire said it owned just over 53 million U.S. Bancorp shares, for a 3.6% stake, on Oct. 31, down from 144.7 million shares, or 9.8%, on Dec. 31, 2021. The Omaha, Nebraska-based company ended September with a $31.2 billion stake in Bank of America Corp BAC.N, the second-largest U.S. bank, and recently held large stakes in American Express Co AXP.N and Bank of New York Mellon Corp BK.N.
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Apple Inc AAPL.O is Berkshire's largest common stock investment. Nov 10 (Reuters) - Berkshire Hathaway Inc BRKa.N, the conglomerate run by billionaire Warren Buffett, said on Thursday it has shed more than 91 million US Bancorp USB.N shares since the start of the year, reducing its stake in the fifth-largest U.S. bank by 63%. In a regulatory filing, Berkshire said it owned just over 53 million U.S. Bancorp shares, for a 3.6% stake, on Oct. 31, down from 144.7 million shares, or 9.8%, on Dec. 31, 2021.
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Apple Inc AAPL.O is Berkshire's largest common stock investment. In a regulatory filing, Berkshire said it owned just over 53 million U.S. Bancorp shares, for a 3.6% stake, on Oct. 31, down from 144.7 million shares, or 9.8%, on Dec. 31, 2021. Berkshire began investing in the Minneapolis-based bank in 2006, according to regulatory filings.
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18471.0
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2022-11-10 00:00:00 UTC
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US STOCKS-Wall St set to open higher as inflation data spurs bets of smaller rate hikes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-open-higher-as-inflation-data-spurs-bets-of-smaller-rate-hikes
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nan
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nan
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By Devik Jain and Bansari Mayur Kamdar
Nov 10 (Reuters) - Wall Street's main indexes were set to open sharply higher on Thursday as data showed consumer prices increased less than expected in October, spurring hopes that the Federal Reserve might scale down the size of its future interest rate hikes.
The Labor Department said consumer prices advanced 7.7% in the 12 months through October, after rising 8.2% at the end of September, while the core rate, which excludes volatile food and energy prices, increased 6.3% on a year-on-year basis last month, from 6.6% in September.
Economists polled by Reuters had expected the CPI and core number to rise 8% and 6.5%, respectively.
"A softer-than-expected inflation report is acting as a tailwind for markets. Every line of the report shows sequential improvement," said Art Hogan, chief market strategist at B. Riley Financial.
The report prompted traders to adjust their rate hike bets, with bets of a 50-basis point rate hike in December jumping to more than 70% from 45% before the data was released.
Following last week's Fed policy meeting, some U.S. central bank officials have made comments that pointed to slower rate rises over coming meetings.
However, they also signaled that the final stopping point for the tightening campaign could be higher than the 4.6% policy makers penciled in just a couple months ago.
The Fed's policy rate is currently in a range of 3.75%-4.00%.
At 8:42 a.m. ET, Dow e-minis 1YMcv1 were up 759 points, or 2.33%, S&P 500 e-minis EScv1 were up 108.75 points, or 2.9%, and Nasdaq 100 e-minis NQcv1 were up 407.5 points, or 3.76%.
Rate-sensitive technology stocks rallied, with Microsoft Corp MSFT.O, Apple Inc <AAPL.O>, Amazon.com Inc AMZN.O, Meta Platforms Inc META.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O up between 3.9% and 5.8% in premarket trading.
Meanwhile, Republicans edged closer to securing a majority in the U.S. House of Representatives while control of the Senate hinged on a few tight races, two days after Democrats staved off an anticipated "red wave" of Republican gains in midterm elections.
Rivian Automotive Inc RIVN.O jumped 14% in premarket trading after the electric-vehicle maker reported a smaller-than-expected loss, higher number of preorders and reaffirmed its full-year production outlook.
Tapestry Inc TPR.N dipped nearly 1% after the luxury handbag maker cut its annual sales and profit forecasts.
Online dating firm Bumble Inc BMBL.O slid 6.8% after it forecast downbeat fourth-quarter revenue.
The CBOE volatility index .VIX, also known as Wall Street's fear gauge, fell to a near two-month low of 23.94.points.
(Reporting by Shubham Batra, Bansari Mayur Kamdar and Devik Jain 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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Rate-sensitive technology stocks rallied, with Microsoft Corp MSFT.O, Apple Inc <AAPL.O>, Amazon.com Inc AMZN.O, Meta Platforms Inc META.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O up between 3.9% and 5.8% in premarket trading. By Devik Jain and Bansari Mayur Kamdar Nov 10 (Reuters) - Wall Street's main indexes were set to open sharply higher on Thursday as data showed consumer prices increased less than expected in October, spurring hopes that the Federal Reserve might scale down the size of its future interest rate hikes. However, they also signaled that the final stopping point for the tightening campaign could be higher than the 4.6% policy makers penciled in just a couple months ago.
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Rate-sensitive technology stocks rallied, with Microsoft Corp MSFT.O, Apple Inc <AAPL.O>, Amazon.com Inc AMZN.O, Meta Platforms Inc META.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O up between 3.9% and 5.8% in premarket trading. By Devik Jain and Bansari Mayur Kamdar Nov 10 (Reuters) - Wall Street's main indexes were set to open sharply higher on Thursday as data showed consumer prices increased less than expected in October, spurring hopes that the Federal Reserve might scale down the size of its future interest rate hikes. The report prompted traders to adjust their rate hike bets, with bets of a 50-basis point rate hike in December jumping to more than 70% from 45% before the data was released.
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Rate-sensitive technology stocks rallied, with Microsoft Corp MSFT.O, Apple Inc <AAPL.O>, Amazon.com Inc AMZN.O, Meta Platforms Inc META.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O up between 3.9% and 5.8% in premarket trading. By Devik Jain and Bansari Mayur Kamdar Nov 10 (Reuters) - Wall Street's main indexes were set to open sharply higher on Thursday as data showed consumer prices increased less than expected in October, spurring hopes that the Federal Reserve might scale down the size of its future interest rate hikes. The Labor Department said consumer prices advanced 7.7% in the 12 months through October, after rising 8.2% at the end of September, while the core rate, which excludes volatile food and energy prices, increased 6.3% on a year-on-year basis last month, from 6.6% in September.
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Rate-sensitive technology stocks rallied, with Microsoft Corp MSFT.O, Apple Inc <AAPL.O>, Amazon.com Inc AMZN.O, Meta Platforms Inc META.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O up between 3.9% and 5.8% in premarket trading. By Devik Jain and Bansari Mayur Kamdar Nov 10 (Reuters) - Wall Street's main indexes were set to open sharply higher on Thursday as data showed consumer prices increased less than expected in October, spurring hopes that the Federal Reserve might scale down the size of its future interest rate hikes. "A softer-than-expected inflation report is acting as a tailwind for markets.
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18472.0
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2022-11-10 00:00:00 UTC
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China's COVID curbs intensify as cases surge to highest since Shanghai lockdown
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https://www.nasdaq.com/articles/chinas-covid-curbs-intensify-as-cases-surge-to-highest-since-shanghai-lockdown-0
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By Ryan Woo
BEIJING, Nov 11 (Reuters) - Chinese authorities stepped up COVID-19 lockdowns and other curbs to halt clusters from spreading as China's case load soared to its highest since this year's Shanghai lockdown, with Beijing and Zhengzhou seeing record daily cases.
China reported on Friday 10,535 new locally transmitted cases for Nov. 10, the highest since April 29, when the country's commercial hub, Shanghai, was battling its most serious outbreak.
The nationwide surge, still small by global standards and for a country of 1.4 billion people, has spurred China's top leadership to reaffirm its zero-tolerance strategy for the virus, a policy that President Xi Jinping says is to save lives, especially among China's elderly.
The southern city of Guangzhou, the current epicentre of China's COVID fight, reported 2,824 new local cases for Nov. 10, the fourth day in which infections exceeded 2,000.
Driving the infections were cases in the populous district of Haizhu, which on Friday declared a hard lockdown until Sunday after days of widening restrictions and curbs.
"All residents are required to stay at home," the district government said in a statement. "Only one person in each household is allowed to buy daily necessities on a staggered schedule."
All public transit in the district of 1.8 million people is also suspended, and mandatory PCR tests will be administered to "every household and every individual", according to the statement.
China will not relax its COVID measures but will keep improving them according to the changing epidemic situation and mutation of the virus, a government expert was cited as saying by the national health authority on Friday.
TIGHTER MEASURES
Other major cities such as Beijing, Zhengzhou and Chongqing have tightened measures this week as daily cases renewed all-time highs.
Zhengzhou, the capital of central Henan province, reported 2,988 new local cases, more than doubling from a day earlier, in a widening outbreak that has thrown the local iPhone assembly plant of Apple supplier Foxconn 2317.TW into chaos in recent weeks.
In the southwestern metropolis of Chongqing, local cases have remained in the triple digits all week, with a new high of 783 infections on Nov. 10.
Some Chongqing districts on Friday banned dining in at restaurants and suspended offline classes at schools. Some subway stations were also closed.
Beijing reported 118 new local cases for Nov. 10, a daily record but still low compared with other Chinese cities.
Still many parts of the city of nearly 22 million people started to urge residents to undergo PCR tests every day, or be barred entry to public spaces including office blocks, leisure venues and fitness centres.
Organisers said this week that the Beijing Auto Show - a high-profile event that draws global brands - will not be held this year.
The new top leadership body of the ruling Communist Party on Thursday reaffirmed China's zero-COVID policy, saying measures should not be relaxed, with state media reporting that "20 measures" would be further improved, without elaborating.
In its meeting, the Politburo Standing Committee stressed the need to minimise the impact of those measures on the economy.
Strategies that oversimplify containment measures, one-size-fits-all policies, and extra "layers" of measures should be avoided, according to the state media readout of the meeting.
"This meeting further illustrates policymakers have started to focus more on optimising the COVID control policies," according to Goldman Sachs in a note. "We continue to expect policymakers to start preparation work for the gradual relaxation of the "dynamic Zero Covid" policy stance while the actual relaxation might only begin by the second quarter next year."
(Reporting by Ryan Woo. Editing by Gerry Doyle)
((Ryan.Woo@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The southern city of Guangzhou, the current epicentre of China's COVID fight, reported 2,824 new local cases for Nov. 10, the fourth day in which infections exceeded 2,000. China will not relax its COVID measures but will keep improving them according to the changing epidemic situation and mutation of the virus, a government expert was cited as saying by the national health authority on Friday. Still many parts of the city of nearly 22 million people started to urge residents to undergo PCR tests every day, or be barred entry to public spaces including office blocks, leisure venues and fitness centres.
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By Ryan Woo BEIJING, Nov 11 (Reuters) - Chinese authorities stepped up COVID-19 lockdowns and other curbs to halt clusters from spreading as China's case load soared to its highest since this year's Shanghai lockdown, with Beijing and Zhengzhou seeing record daily cases. Other major cities such as Beijing, Zhengzhou and Chongqing have tightened measures this week as daily cases renewed all-time highs. The new top leadership body of the ruling Communist Party on Thursday reaffirmed China's zero-COVID policy, saying measures should not be relaxed, with state media reporting that "20 measures" would be further improved, without elaborating.
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By Ryan Woo BEIJING, Nov 11 (Reuters) - Chinese authorities stepped up COVID-19 lockdowns and other curbs to halt clusters from spreading as China's case load soared to its highest since this year's Shanghai lockdown, with Beijing and Zhengzhou seeing record daily cases. Zhengzhou, the capital of central Henan province, reported 2,988 new local cases, more than doubling from a day earlier, in a widening outbreak that has thrown the local iPhone assembly plant of Apple supplier Foxconn 2317.TW into chaos in recent weeks. The new top leadership body of the ruling Communist Party on Thursday reaffirmed China's zero-COVID policy, saying measures should not be relaxed, with state media reporting that "20 measures" would be further improved, without elaborating.
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By Ryan Woo BEIJING, Nov 11 (Reuters) - Chinese authorities stepped up COVID-19 lockdowns and other curbs to halt clusters from spreading as China's case load soared to its highest since this year's Shanghai lockdown, with Beijing and Zhengzhou seeing record daily cases. The southern city of Guangzhou, the current epicentre of China's COVID fight, reported 2,824 new local cases for Nov. 10, the fourth day in which infections exceeded 2,000. All public transit in the district of 1.8 million people is also suspended, and mandatory PCR tests will be administered to "every household and every individual", according to the statement.
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18473.0
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2022-11-10 00:00:00 UTC
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US STOCKS-Wall St soars as cooling inflation spurs bets of smaller rate hikes
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https://www.nasdaq.com/articles/us-stocks-wall-st-soars-as-cooling-inflation-spurs-bets-of-smaller-rate-hikes
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By Devik Jain and Sruthi Shankar
Nov 10 (Reuters) - Wall Street's main indexes rallied on Thursday, with the tech-heavy Nasdaq leading gains, after data showed consumer prices rose less than expected in October, spurring hopes that the Fed might scale down the size of its future rate hikes.
The benchmark S&P 500 .SPX and the Nasdaq .IXIC were set for their biggest percentage gain since April 2020 as the data pointed to strongest signs yet that inflation was starting to subside, with the annual number below 8% for the first time in eight months.
"It's very good news for future Fed policy and indicates that what the Fed has been doing has been appropriate," said Mike Zigmont, head of trading and research at Harvest Volatility Management. "It takes off the table the risk that the Fed will have to overtighten and break the economy."
The inflation data prompted traders to adjust their rate hike bets, with odds of a 50-basis point rate hike in December jumping to more than 80% from 52% before the data was released. 0#FEDWATCH
Another set of data showed the number of Americans filing new claims for unemployment benefits increased moderately last week, signaling job growth is slowing.
The CBOE volatility index .VIX, also known as Wall Street's fear gauge, fell to a near two-month low of 23.4 points.
Wall Street's main indexes have suffered sharp losses this year as investors feared the U.S. central bank's aggressive rate hikes to tame decades-high inflation will tip the economy into recession. The S&P 500 is still down 18.3% on a year-to-date basis, on course for its worst annual performance since 2008.
Growth and technology-related stocks provided a big boost to the markets on Thursday as Treasury yields tumbled following the data. US/
Market heavyweights including Tesla Inc TSLA.O, Microsoft Corp MSFT.O, Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Meta Platforms Inc META.O and Nvidia Corp NVDA.O rose between 6.0% and 10.1%.
A media report said Amazon was reviewing unprofitable business units, including the devices unit, to cut costs.
At 10:43 a.m. ET, the Dow Jones Industrial Average .DJI was up 820.97 points, or 2.52%, at 33,334.91, the S&P 500 .SPX was up 149.48 points, or 3.99%, at 3,898.05, and the Nasdaq Composite .IXIC was up 553.42 points, or 5.35%, at 10,906.60.
The PHLX Housing index .HGX jumped 10.3% to its highest level in two months after getting battered this year on concerns about higher rates denting affordability.
The Russell 2000 index of small cap companies .RUT climbed 5.1%.
Rivian Automotive Inc RIVN.O rose 13.8% after the electric-vehicle maker reported a smaller-than-expected loss, higher number of preorders and reaffirmed its full-year production outlook.
Meanwhile, Republicans edged closer to securing a majority in the U.S. House of Representatives while control of the Senate hinged on a few tight races, two days after Democrats staved off an anticipated "red wave" of Republican gains in midterm elections.
Advancing issues outnumbered decliners for a 11.59-to-1 ratio on the NYSE and a 5.60-to-1 ratio on the Nasdaq.
The S&P index recorded 13 new 52-week highs and no new low, while the Nasdaq recorded 70 new highs and 93 new lows.
(Reporting by Shubham Batra, Bansari Mayur Kamdar, Devik Jain and Sruthi Shankar 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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US/ Market heavyweights including Tesla Inc TSLA.O, Microsoft Corp MSFT.O, Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Meta Platforms Inc META.O and Nvidia Corp NVDA.O rose between 6.0% and 10.1%. By Devik Jain and Sruthi Shankar Nov 10 (Reuters) - Wall Street's main indexes rallied on Thursday, with the tech-heavy Nasdaq leading gains, after data showed consumer prices rose less than expected in October, spurring hopes that the Fed might scale down the size of its future rate hikes. The benchmark S&P 500 .SPX and the Nasdaq .IXIC were set for their biggest percentage gain since April 2020 as the data pointed to strongest signs yet that inflation was starting to subside, with the annual number below 8% for the first time in eight months.
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US/ Market heavyweights including Tesla Inc TSLA.O, Microsoft Corp MSFT.O, Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Meta Platforms Inc META.O and Nvidia Corp NVDA.O rose between 6.0% and 10.1%. By Devik Jain and Sruthi Shankar Nov 10 (Reuters) - Wall Street's main indexes rallied on Thursday, with the tech-heavy Nasdaq leading gains, after data showed consumer prices rose less than expected in October, spurring hopes that the Fed might scale down the size of its future rate hikes. Wall Street's main indexes have suffered sharp losses this year as investors feared the U.S. central bank's aggressive rate hikes to tame decades-high inflation will tip the economy into recession.
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US/ Market heavyweights including Tesla Inc TSLA.O, Microsoft Corp MSFT.O, Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Meta Platforms Inc META.O and Nvidia Corp NVDA.O rose between 6.0% and 10.1%. By Devik Jain and Sruthi Shankar Nov 10 (Reuters) - Wall Street's main indexes rallied on Thursday, with the tech-heavy Nasdaq leading gains, after data showed consumer prices rose less than expected in October, spurring hopes that the Fed might scale down the size of its future rate hikes. The benchmark S&P 500 .SPX and the Nasdaq .IXIC were set for their biggest percentage gain since April 2020 as the data pointed to strongest signs yet that inflation was starting to subside, with the annual number below 8% for the first time in eight months.
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US/ Market heavyweights including Tesla Inc TSLA.O, Microsoft Corp MSFT.O, Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Meta Platforms Inc META.O and Nvidia Corp NVDA.O rose between 6.0% and 10.1%. By Devik Jain and Sruthi Shankar Nov 10 (Reuters) - Wall Street's main indexes rallied on Thursday, with the tech-heavy Nasdaq leading gains, after data showed consumer prices rose less than expected in October, spurring hopes that the Fed might scale down the size of its future rate hikes. The inflation data prompted traders to adjust their rate hike bets, with odds of a 50-basis point rate hike in December jumping to more than 80% from 52% before the data was released.
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18474.0
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2022-11-10 00:00:00 UTC
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US STOCKS-Nasdaq soars as cooling inflation spurs bets of smaller rate hikes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-soars-as-cooling-inflation-spurs-bets-of-smaller-rate-hikes
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By Devik Jain and Ankika Biswas
Nov 10 (Reuters) - The tech-heavy Nasdaq surged 5% on Thursday as data showed U.S. consumer prices increased less than expected in October, spurring hopes that the Federal Reserve might scale down the size of its future interest rate hikes.
The Labor Department said consumer prices advanced 7.7% in the 12 months through October, while the core rate, which excludes volatile food and energy prices, increased 6.3% on a year-on-year basis last month.
Economists polled by Reuters had expected the CPI and core number to rise 8% and 6.5%, respectively.
"It is a good sign for the Fed ... it's all moving in the direction that the Fed wants it to," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.
"Given just this data, it would allow the Fed to raise rates by only 50 basis points rather than 75 at the next meeting."
The data prompted traders to adjust their rate hike bets, with bets of a 50-basis point rate hike in December jumping to more than 70% from 45% before the data was released. 0#FEDWATCH
Separately, data also showed that the number of Americans filing new claims for unemployment benefits increased moderately last week.
Following last week's Fed policy meeting, some U.S. central bank officials have made comments that pointed to slower rate rises over coming meetings.
However, they also signaled that the final stopping point for the tightening campaign could be higher than the 4.6% policy makers penciled in just a couple months ago.
The Fed's policy rate is currently in a range of 3.75%-4.00%.
At 9:49 a.m. ET, the Dow Jones Industrial Average .DJI was up 775.13 points, or 2.38%, at 33,289.07, the S&P 500 .SPX was up 140.60 points, or 3.75%, at 3,889.17, and the Nasdaq Composite .IXIC was up 520.85 points, or 5.03%, at 10,874.03.
Rate-sensitive technology stocks rallied, with Tesla Inc TSLA.O, Microsoft Corp MSFT.O, Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Meta Platforms Inc META.O and Nvidia Corp NVDA.O up between 5.3% and 7.2%, as Treasury yields tumbled. US/.
The PHLX Housing index .HGX climbed 8.4% to its highest level in two months after getting battered this year on concerns about higher rates denting affordability.
Rivian Automotive Inc RIVN.O jumped 15.3% after the electric-vehicle maker reported a smaller-than-expected loss, higher number of preorders and reaffirmed its full-year production outlook.
The CBOE volatility index .VIX, also known as Wall Street's fear gauge, fell to a near two-month low of 23.75 points.
Meanwhile, Republicans edged closer to securing a majority in the U.S. House of Representatives while control of the Senate hinged on a few tight races, two days after Democrats staved off an anticipated "red wave" of Republican gains in midterm elections.
Advancing issues outnumbered decliners for a 13.73-to-1 ratio on the NYSE and a 6.88-to-1 ratio on the Nasdaq.
The S&P index recorded 12 new 52-week highs and no new low, while the Nasdaq recorded 56 new highs and 76 new lows.
(Reporting by Shubham Batra, Bansari Mayur Kamdar, Devik Jain and Sruthi Shankar 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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Rate-sensitive technology stocks rallied, with Tesla Inc TSLA.O, Microsoft Corp MSFT.O, Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Meta Platforms Inc META.O and Nvidia Corp NVDA.O up between 5.3% and 7.2%, as Treasury yields tumbled. By Devik Jain and Ankika Biswas Nov 10 (Reuters) - The tech-heavy Nasdaq surged 5% on Thursday as data showed U.S. consumer prices increased less than expected in October, spurring hopes that the Federal Reserve might scale down the size of its future interest rate hikes. The PHLX Housing index .HGX climbed 8.4% to its highest level in two months after getting battered this year on concerns about higher rates denting affordability.
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Rate-sensitive technology stocks rallied, with Tesla Inc TSLA.O, Microsoft Corp MSFT.O, Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Meta Platforms Inc META.O and Nvidia Corp NVDA.O up between 5.3% and 7.2%, as Treasury yields tumbled. By Devik Jain and Ankika Biswas Nov 10 (Reuters) - The tech-heavy Nasdaq surged 5% on Thursday as data showed U.S. consumer prices increased less than expected in October, spurring hopes that the Federal Reserve might scale down the size of its future interest rate hikes. The Labor Department said consumer prices advanced 7.7% in the 12 months through October, while the core rate, which excludes volatile food and energy prices, increased 6.3% on a year-on-year basis last month.
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Rate-sensitive technology stocks rallied, with Tesla Inc TSLA.O, Microsoft Corp MSFT.O, Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Meta Platforms Inc META.O and Nvidia Corp NVDA.O up between 5.3% and 7.2%, as Treasury yields tumbled. By Devik Jain and Ankika Biswas Nov 10 (Reuters) - The tech-heavy Nasdaq surged 5% on Thursday as data showed U.S. consumer prices increased less than expected in October, spurring hopes that the Federal Reserve might scale down the size of its future interest rate hikes. The data prompted traders to adjust their rate hike bets, with bets of a 50-basis point rate hike in December jumping to more than 70% from 45% before the data was released.
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Rate-sensitive technology stocks rallied, with Tesla Inc TSLA.O, Microsoft Corp MSFT.O, Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Meta Platforms Inc META.O and Nvidia Corp NVDA.O up between 5.3% and 7.2%, as Treasury yields tumbled. By Devik Jain and Ankika Biswas Nov 10 (Reuters) - The tech-heavy Nasdaq surged 5% on Thursday as data showed U.S. consumer prices increased less than expected in October, spurring hopes that the Federal Reserve might scale down the size of its future interest rate hikes. "Given just this data, it would allow the Fed to raise rates by only 50 basis points rather than 75 at the next meeting."
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18475.0
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2022-11-10 00:00:00 UTC
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China reaffirms zero-COVID stance, city of Guangzhou on edge
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AAPL
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https://www.nasdaq.com/articles/china-reaffirms-zero-covid-stance-city-of-guangzhou-on-edge
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By Tony Munroe
BEIJING, Nov 10 (Reuters) - China's new top leadership body reaffirmed Beijing's "dynamic-zero" COVID-19 policy on Thursday, as case numbers rose and authorities in the city of Guangzhou urged residents to work from home but stopped short of a city-wide lockdown.
In its first meeting since being formed last month after the ruling Communist Party's twice-a-decade congress, the Politburo Standing Committee said China's epidemic prevention measures must not be relaxed, according to state media.
The meeting, chaired by President Xi Jinping, also stressed the need to minimise COVID's impact on the economy.
"We must take more resolute and decisive measures to curb the spread of the epidemic as soon as possible and restore normal production and normal life as soon as possible," the leadership said at the meeting, according to news agency Xinhua.
New case numbers are at their highest since April, and rebounding infections and China's aggressive response to them are causing disruption for residents and businesses in cities across the country and weighing on financial markets, including for global commodities.
New bank lending fell sharply in October, central bank data released on Thursday showed, far below expectations in a Reuters poll, as COVID-19 outbreaks and a property sector downturn weighed on credit demand.
In Beijing, organisers of China's flagship auto show said the already-postponed event would not take place this year due to the COVID-19 situation in the capital, which reported 95 new infections for the previous day, up from 80 a day earlier.
While China's infection numbers are low by global standards - new domestic cases rose to 8,824 on Wednesday - the country continues to stick with its outlier zero-COVID approach, fuelling widespread public frustration and inflicting damage on the world's second-largest economy.
NOT LOCKING DOWN...YET
In the southern city of Guangzhou, a manufacturing powerhouse that is home to nearly 19 million people, cases hit more than 2,000 for a third straight day and officials have launched mass testing, resisting for now a city-wide lockdown of the type that paralysed Shanghai for two months earlier this year.
"As things stand, it is hard to tell whether Guangzhou will repeat the experience of Shanghai in spring this year. If Guangzhou repeats what Shanghai did in spring, it will lead to a new round of pessimism on China," Nomura analysts wrote in a Thursday note.
Mason Long, who works for a Guangzhou gaming company, said some residents were bracing for a lockdown, with many leaving the city or planning to.
Most of Guangzhou's 11 districts are under some form of COVID restriction.
"Panyu district just announced that it's restricting travel in and out, so that's three districts to announce that," Long said. "The rest of us in other districts are super-worried this will be applied to the entire city and we'll be facing a Shanghai-style lockdown."
Last week, Chinese share prices soared on hopes that China would begin easing COVID curbs, but Beijing continues to reiterate its commitment to what is a signature Xi policy that authorities argue saves lives.
China has yet to spell out an easing strategy or mount the sort of massive new vaccine campaign that experts say is needed before it can begin to open up, with many saying China is unlikely to begin easing until the spring, at the earliest.
BE MORE TARGETED
In Beijing, residents of some areas have been asked to get COVID tests every day this week.
Outside one residential compound in the Chaoyang district, a loud-hailer repeatedly squawked: "During this time of large-scale testing, no one is to be left out. Do your COVID test each day."
A Thursday commentary in the official Xinhua news agency urged Chinese authorities to take a more targeted approach to tackling outbreaks and rectify any extra "layers" of measures.
"All localities will further improve the level of scientific and precise prevention and control, strive to achieve the greatest prevention and control effect at the least cost, and minimise the impact of the epidemic on economic and social development," Xinhua reported.
On Thursday, Taiwan-based Foxconn said it expected smartphone revenue to fall this quarter and was adjusting production to prevent recent COVID-19 curbs at its massive Zhengzhou factory, which makes Apple AAPL.O iPhones, from impacting holiday orders.
Foxconn2317.TW was rocked by recent discontent over stringent COVID measures at the Zhengzhou plant, with many of its roughly 200,000 workers there fleeing the site.
(Reporting by Bernard Orr, Ryan Woo, Martin Pollard and Tony Munroe in Beijing and Josh Ye in Hong Kong; Editing by Robert Birsel, Raissa Kasolowsky and Alex Richardson)
((bernard.orr@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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On Thursday, Taiwan-based Foxconn said it expected smartphone revenue to fall this quarter and was adjusting production to prevent recent COVID-19 curbs at its massive Zhengzhou factory, which makes Apple AAPL.O iPhones, from impacting holiday orders. While China's infection numbers are low by global standards - new domestic cases rose to 8,824 on Wednesday - the country continues to stick with its outlier zero-COVID approach, fuelling widespread public frustration and inflicting damage on the world's second-largest economy. In the southern city of Guangzhou, a manufacturing powerhouse that is home to nearly 19 million people, cases hit more than 2,000 for a third straight day and officials have launched mass testing, resisting for now a city-wide lockdown of the type that paralysed Shanghai for two months earlier this year.
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On Thursday, Taiwan-based Foxconn said it expected smartphone revenue to fall this quarter and was adjusting production to prevent recent COVID-19 curbs at its massive Zhengzhou factory, which makes Apple AAPL.O iPhones, from impacting holiday orders. By Tony Munroe BEIJING, Nov 10 (Reuters) - China's new top leadership body reaffirmed Beijing's "dynamic-zero" COVID-19 policy on Thursday, as case numbers rose and authorities in the city of Guangzhou urged residents to work from home but stopped short of a city-wide lockdown. Last week, Chinese share prices soared on hopes that China would begin easing COVID curbs, but Beijing continues to reiterate its commitment to what is a signature Xi policy that authorities argue saves lives.
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On Thursday, Taiwan-based Foxconn said it expected smartphone revenue to fall this quarter and was adjusting production to prevent recent COVID-19 curbs at its massive Zhengzhou factory, which makes Apple AAPL.O iPhones, from impacting holiday orders. By Tony Munroe BEIJING, Nov 10 (Reuters) - China's new top leadership body reaffirmed Beijing's "dynamic-zero" COVID-19 policy on Thursday, as case numbers rose and authorities in the city of Guangzhou urged residents to work from home but stopped short of a city-wide lockdown. In the southern city of Guangzhou, a manufacturing powerhouse that is home to nearly 19 million people, cases hit more than 2,000 for a third straight day and officials have launched mass testing, resisting for now a city-wide lockdown of the type that paralysed Shanghai for two months earlier this year.
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On Thursday, Taiwan-based Foxconn said it expected smartphone revenue to fall this quarter and was adjusting production to prevent recent COVID-19 curbs at its massive Zhengzhou factory, which makes Apple AAPL.O iPhones, from impacting holiday orders. By Tony Munroe BEIJING, Nov 10 (Reuters) - China's new top leadership body reaffirmed Beijing's "dynamic-zero" COVID-19 policy on Thursday, as case numbers rose and authorities in the city of Guangzhou urged residents to work from home but stopped short of a city-wide lockdown. "We must take more resolute and decisive measures to curb the spread of the epidemic as soon as possible and restore normal production and normal life as soon as possible," the leadership said at the meeting, according to news agency Xinhua.
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18476.0
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2022-11-10 00:00:00 UTC
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US STOCKS-Wall St shoots up as cooling inflation spurs hopes of smaller rate hikes
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https://www.nasdaq.com/articles/us-stocks-wall-st-shoots-up-as-cooling-inflation-spurs-hopes-of-smaller-rate-hikes
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By Devik Jain and Sruthi Shankar
Nov 10 (Reuters) - The tech-heavy Nasdaq led a rally on Wall Street's main indexes on Thursday as signs of cooling consumer prices in October raised hopes that the Federal Reserve would soon start scaling down the size of interest-rate hikes.
The benchmark S&P 500 .SPX and the Nasdaq .IXIC were set for their biggest percentage gain since April 2020 as the latest inflation data cheered investors worried about aggressive rise in borrowing costs hampering economic growth.
The Labor Department's data pointed to strongest signs yet that price pressures was starting to subside, with the annual CPI number below 8% for the first time in eight months.
Growing recession worries have pushed the three main indexes into bear market this year, with the S&P 500 .SPX down 17.8% and still on course for its worst annual performance since 2008.
"It's very good news for future Fed policy and indicates that what the Fed has been doing has been appropriate," said Mike Zigmont, head of trading and research at Harvest Volatility Management.
The inflation data prompted traders to adjust their rate hike bets, with odds of a 50-basis point rate hike in December jumping to 73.5% from 52% before the data was released. 0#FEDWATCH
San Francisco Fed President Mary Daly and Dallas Fed President Lorie Logan welcomed the "good news" on inflation, but said the fight with rising prices is far from over.
The CBOE volatility index .VIX, also known as Wall Street's fear gauge, fell to a near two-month low of 23.19 points.
Growth and technology-related stocks provided a big boost to the markets with heavyweights Microsoft Corp MSFT.O and Apple Inc AAPL.O adding at least 6.5% each as Treasury yields tumbled following the data. US/
Amazon.com Inc AMZN.O surged 12.2% after a media report said the e-commerce giant was reviewing unprofitable business units, including the devices unit, to cut costs.
At 12:18 p.m. ET, the Dow Jones Industrial Average .DJI was up 959.59 points, or 2.95%, at 33,473.53, the S&P 500 .SPX was up 172.53 points, or 4.60%, at 3,921.10, and the Nasdaq Composite .IXIC was up 631.19 points, or 6.10%, at 10,984.36.
"It would take a lot more in coming months for the Fed to make an actual dovish pivot rather than stick to its 'higher for longer' recent messaging," Yung-Yu Ma, chief investment strategist at BMO Wealth Management, said.
The PHLX Housing index .HGX gained 10.2% to its highest level in two months after getting battered this year on concerns about higher mortgage rates denting affordability.
The Russell 2000 index of small cap companies .RUT climbed 5.5%.
Rivian Automotive Inc RIVN.O jumped 17% after the electric-vehicle maker reported a smaller-than-expected loss, higher number of pre-orders and reaffirmed its full-year production outlook.
Advancing issues outnumbered decliners by a 9.96-to-1 ratio on the NYSE and by a 4.92-to-1 ratio on the Nasdaq.
The S&P index recorded 17 new 52-week highs and no new low, while the Nasdaq recorded 92 new highs and 128 new lows.
(Reporting by Chuck Mikolajczak in New York, Shubham Batra, Bansari Mayur Kamdar, Devik Jain and Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta and Arun Koyyur)
((Shubham.Batra@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Growth and technology-related stocks provided a big boost to the markets with heavyweights Microsoft Corp MSFT.O and Apple Inc AAPL.O adding at least 6.5% each as Treasury yields tumbled following the data. By Devik Jain and Sruthi Shankar Nov 10 (Reuters) - The tech-heavy Nasdaq led a rally on Wall Street's main indexes on Thursday as signs of cooling consumer prices in October raised hopes that the Federal Reserve would soon start scaling down the size of interest-rate hikes. The benchmark S&P 500 .SPX and the Nasdaq .IXIC were set for their biggest percentage gain since April 2020 as the latest inflation data cheered investors worried about aggressive rise in borrowing costs hampering economic growth.
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Growth and technology-related stocks provided a big boost to the markets with heavyweights Microsoft Corp MSFT.O and Apple Inc AAPL.O adding at least 6.5% each as Treasury yields tumbled following the data. By Devik Jain and Sruthi Shankar Nov 10 (Reuters) - The tech-heavy Nasdaq led a rally on Wall Street's main indexes on Thursday as signs of cooling consumer prices in October raised hopes that the Federal Reserve would soon start scaling down the size of interest-rate hikes. The S&P index recorded 17 new 52-week highs and no new low, while the Nasdaq recorded 92 new highs and 128 new lows.
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Growth and technology-related stocks provided a big boost to the markets with heavyweights Microsoft Corp MSFT.O and Apple Inc AAPL.O adding at least 6.5% each as Treasury yields tumbled following the data. By Devik Jain and Sruthi Shankar Nov 10 (Reuters) - The tech-heavy Nasdaq led a rally on Wall Street's main indexes on Thursday as signs of cooling consumer prices in October raised hopes that the Federal Reserve would soon start scaling down the size of interest-rate hikes. The inflation data prompted traders to adjust their rate hike bets, with odds of a 50-basis point rate hike in December jumping to 73.5% from 52% before the data was released.
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Growth and technology-related stocks provided a big boost to the markets with heavyweights Microsoft Corp MSFT.O and Apple Inc AAPL.O adding at least 6.5% each as Treasury yields tumbled following the data. By Devik Jain and Sruthi Shankar Nov 10 (Reuters) - The tech-heavy Nasdaq led a rally on Wall Street's main indexes on Thursday as signs of cooling consumer prices in October raised hopes that the Federal Reserve would soon start scaling down the size of interest-rate hikes. "It's very good news for future Fed policy and indicates that what the Fed has been doing has been appropriate," said Mike Zigmont, head of trading and research at Harvest Volatility Management.
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18477.0
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2022-11-10 00:00:00 UTC
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IVV, AAPL, MSFT, GOOG: Large Inflows Detected at ETF
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AAPL
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https://www.nasdaq.com/articles/ivv-aapl-msft-goog%3A-large-inflows-detected-at-etf-0
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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 $244.3 million dollar inflow -- that's a 0.1% increase week over week in outstanding units (from 760,050,000 to 760,700,000). Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is up about 6.4%, Microsoft Corporation (Symbol: MSFT) is up about 6.3%, and Alphabet Inc (Symbol: GOOG) is higher by about 6.8%. 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 $391.57. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
Also see:
Expedia Group Technical Analysis
PFBC Videos
APPN Average Annual Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is up about 6.4%, Microsoft Corporation (Symbol: MSFT) is up about 6.3%, and Alphabet Inc (Symbol: GOOG) is higher by about 6.8%. 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 up about 6.4%, Microsoft Corporation (Symbol: MSFT) is up about 6.3%, and Alphabet Inc (Symbol: GOOG) is higher by about 6.8%. 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 $391.57. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is up about 6.4%, Microsoft Corporation (Symbol: MSFT) is up about 6.3%, and Alphabet Inc (Symbol: GOOG) is higher by about 6.8%. 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 $244.3 million dollar inflow -- that's a 0.1% increase week over week in outstanding units (from 760,050,000 to 760,700,000). 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 $391.57.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is up about 6.4%, Microsoft Corporation (Symbol: MSFT) is up about 6.3%, and Alphabet Inc (Symbol: GOOG) is higher by about 6.8%. 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 $244.3 million dollar inflow -- that's a 0.1% increase week over week in outstanding units (from 760,050,000 to 760,700,000). Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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18478.0
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2022-11-10 00:00:00 UTC
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Apple supplier Foxconn records 5% rise in Q3 profit, sees flattish Q4
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AAPL
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https://www.nasdaq.com/articles/apple-supplier-foxconn-records-5-rise-in-q3-profit-sees-flattish-q4
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nan
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nan
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By Ben Blanchard and Sarah Wu
TAIPEI, Nov 10 (Reuters) - Apple Inc AAPL.O supplier and iPhone assembler Foxconn 2317.TW said on Thursday it expected flattish revenue in the fourth quarter, as the company grapples with COVID-19 curbs at a major factory in China's Zhengzhou industrial hub.
Apple expects lower shipments of its high-end iPhone 14 models than previously anticipated following a significant production cut at the virus-blighted plant in China, dampening its sales outlook for the year-end holiday season.
The Taiwanese company, the world's largest contract electronics maker which is formally called Hon Hai Precision Industry Co Ltd, said net profit for the July-September quarter rose 5% to T$38.8 billion from T$36.98 billion a year earlier.
Eleven analysts were expecting on average profit of T$41.3 billion, according to Refinitiv.
Reuters last month reported that Foxconn's production of Apple's iPhones at the Zhengzhou factory could slump by as much as 30% in November due to tight COVID-19 restrictions.
Foxconn's main Zhengzhou factory in central China, which employs about 200,000 people and is the world's largest iPhone plant, has been rocked by discontent over stringent measures to curb the spread of COVID-19, with many workers fleeing the site.
Apple, which launched sales of the new iPhones in September, said customers will experience longer wait times to receive their new products.
Foxconn said on Monday it was working to resume full production at the plant as soon as possible. On Wednesday it said it would continue production in Zhengzhou under a "closed loop" system, where staff live and work on-site in a bubble isolated from the wider world. .
Foxconn is Apple's biggest iPhone maker, accounting for 70% of iPhone shipments globally. It has other smaller production sites in India and southern China.
Having said on Monday it would "revise down" its fourth quarter outlook given the situation in Zhengzhou, Foxconn said revenue in the final three months of this year would be flattish.
It did not provide a numerical outlook.
The fourth quarter is traditionally the hot season for Taiwan's tech companies as they race to supply cellphones, tablets and other electronics for the busy year-end holiday period in Western markets.
(Reporting by Ben Blanchard and Sarah Wu; Editing by Anne Marie Roantree and Christopher Cushing)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Ben Blanchard and Sarah Wu TAIPEI, Nov 10 (Reuters) - Apple Inc AAPL.O supplier and iPhone assembler Foxconn 2317.TW said on Thursday it expected flattish revenue in the fourth quarter, as the company grapples with COVID-19 curbs at a major factory in China's Zhengzhou industrial hub. Apple expects lower shipments of its high-end iPhone 14 models than previously anticipated following a significant production cut at the virus-blighted plant in China, dampening its sales outlook for the year-end holiday season. Foxconn's main Zhengzhou factory in central China, which employs about 200,000 people and is the world's largest iPhone plant, has been rocked by discontent over stringent measures to curb the spread of COVID-19, with many workers fleeing the site.
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By Ben Blanchard and Sarah Wu TAIPEI, Nov 10 (Reuters) - Apple Inc AAPL.O supplier and iPhone assembler Foxconn 2317.TW said on Thursday it expected flattish revenue in the fourth quarter, as the company grapples with COVID-19 curbs at a major factory in China's Zhengzhou industrial hub. Apple expects lower shipments of its high-end iPhone 14 models than previously anticipated following a significant production cut at the virus-blighted plant in China, dampening its sales outlook for the year-end holiday season. Reuters last month reported that Foxconn's production of Apple's iPhones at the Zhengzhou factory could slump by as much as 30% in November due to tight COVID-19 restrictions.
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By Ben Blanchard and Sarah Wu TAIPEI, Nov 10 (Reuters) - Apple Inc AAPL.O supplier and iPhone assembler Foxconn 2317.TW said on Thursday it expected flattish revenue in the fourth quarter, as the company grapples with COVID-19 curbs at a major factory in China's Zhengzhou industrial hub. Apple expects lower shipments of its high-end iPhone 14 models than previously anticipated following a significant production cut at the virus-blighted plant in China, dampening its sales outlook for the year-end holiday season. Foxconn's main Zhengzhou factory in central China, which employs about 200,000 people and is the world's largest iPhone plant, has been rocked by discontent over stringent measures to curb the spread of COVID-19, with many workers fleeing the site.
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By Ben Blanchard and Sarah Wu TAIPEI, Nov 10 (Reuters) - Apple Inc AAPL.O supplier and iPhone assembler Foxconn 2317.TW said on Thursday it expected flattish revenue in the fourth quarter, as the company grapples with COVID-19 curbs at a major factory in China's Zhengzhou industrial hub. Apple expects lower shipments of its high-end iPhone 14 models than previously anticipated following a significant production cut at the virus-blighted plant in China, dampening its sales outlook for the year-end holiday season. Having said on Monday it would "revise down" its fourth quarter outlook given the situation in Zhengzhou, Foxconn said revenue in the final three months of this year would be flattish.
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18479.0
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2022-11-10 00:00:00 UTC
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Apple supplier Foxconn's Q3 profit up 5% y/y
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AAPL
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https://www.nasdaq.com/articles/apple-supplier-foxconns-q3-profit-up-5-y-y
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nan
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nan
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TAIPEI, Nov 10 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW reported on Thursday a rise of 5% in third-quarter net profit, Reuters calculations showed, missing market estimates.
The Taiwan company, which is the world's largest contract electronics maker, said net profit for the July-September quarter rose to T$38.8 billion from T$36.98 billion a year earlier.
Eleven analysts were expecting on average profit of T$41.3 billion, according to Refinitiv.
(Reporting by Sarah Wu and Ben Blanchard; Editing by Clarence Fernandez)
((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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TAIPEI, Nov 10 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW reported on Thursday a rise of 5% in third-quarter net profit, Reuters calculations showed, missing market estimates. Eleven analysts were expecting on average profit of T$41.3 billion, according to Refinitiv. (Reporting by Sarah Wu and Ben Blanchard; Editing by Clarence Fernandez) ((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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TAIPEI, Nov 10 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW reported on Thursday a rise of 5% in third-quarter net profit, Reuters calculations showed, missing market estimates. The Taiwan company, which is the world's largest contract electronics maker, said net profit for the July-September quarter rose to T$38.8 billion from T$36.98 billion a year earlier. (Reporting by Sarah Wu and Ben Blanchard; Editing by Clarence Fernandez) ((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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TAIPEI, Nov 10 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW reported on Thursday a rise of 5% in third-quarter net profit, Reuters calculations showed, missing market estimates. The Taiwan company, which is the world's largest contract electronics maker, said net profit for the July-September quarter rose to T$38.8 billion from T$36.98 billion a year earlier. (Reporting by Sarah Wu and Ben Blanchard; Editing by Clarence Fernandez) ((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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TAIPEI, Nov 10 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW reported on Thursday a rise of 5% in third-quarter net profit, Reuters calculations showed, missing market estimates. The Taiwan company, which is the world's largest contract electronics maker, said net profit for the July-September quarter rose to T$38.8 billion from T$36.98 billion a year earlier. Eleven analysts were expecting on average profit of T$41.3 billion, according to Refinitiv.
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18480.0
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2022-11-10 00:00:00 UTC
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GLOBAL MARKETS-Shares dip, dollar strengthens as markets eye U.S. inflation data
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AAPL
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https://www.nasdaq.com/articles/global-markets-shares-dip-dollar-strengthens-as-markets-eye-u.s.-inflation-data
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nan
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nan
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By Stella Qiu and Alun John
SYDNEY/LONDON, Nov 10 (Reuters) - Shares dipped slightly and the dollar firmed on Thursday, ahead of U.S. inflation data that will influence the Federal Reserve's rate plans, while the likely collapse of a major digital asset exchange rattled crypto investors.
MSCI's world stock index .MIWD00000PUS slipped 0.36%, dragged down by losses in Asia .MIAPJ0000PUS, but stayed in sight of this week's two month high.
British .FTSE, French .FCHI and German .GDAXI share benchmarks traded sideways, with traders cautious ahead of the data, while U.S. S&P500 futures ESc1 gained 0.4%. .L.EU.N
Sky-high inflation has caused the Fed to raise rates aggressively this year, a process that has boosted the dollar and caused U.S. Treasuries and shares around the world to sell off sharply.
Hopes the Fed might be nearing the end of this process have helped stocks to rally in recent weeks though.
The release of U.S. CPI data, due at 1330 GMT, is the main event of the day for markets as investors try to position themselves based on when and at what level they think U.S. interest rates will peak.
The report is expected to show a slowing in both the monthly and yearly core numbers for October to 0.5% and 6.5%, respectively, according to a Reuters poll.
"I think the story here is that there are many indications of inflation peaking and rolling over - such as supply chains, used cars, maybe wages - but they simply haven't shown in the CPI report, so the question is: is today the day that all these indicators finally show up?" said Samy Chaar, chief economist at Lombard Odier.
"Everyone is focused on that and how that will affect the pricing for not only the December Fed meeting but also the peak policy rate pricing."
He said if CPI came in higher than expected, particularly its core components, then that pricing would go up, and likely send the dollar higher, while a lower than expected print could cause the U.S. currency to give back some gains.
Markets are currently pricing in a 54% chance of a 50-basis-point increase at the Fed's December meeting, according to CME's Fedwatch tool, with still a good chance of a 75-basis-point rise. Expectations for future meetings are divided.
The U.S. dollar firmed on Thursday, with the euro dipping 0.6% to $0.9947 EUR=EBS while the yen was steady 146.45 per dollar. JPY=EBS. FRX/
The greenback hit a 32-year high of 151.94 yen in October and a 20-year peak against the euro in September when the European common currency dropped as low as $0.9528.
The benchmark 10 year U.S. Treasury yield US10YT=RR was at 4.1%, a touch lower on the day, while European government bond yields were little changed. US/GVD/EUR
The looming CPI data meant markets largely looked through the outcome of the U.S. mid-term elections. Republicans were edging closer to securing a majority in the U.S. House of Representatives while control of the Senate hung in the balance.
CHINA's COVID SURGE
Another factor for markets is that China is again grappling with a COVID-19 surge, with the southern metropolis of Guangzhou reporting thousands of cases. Chinese blue-chips .CSI300 lost 0.7% and the Hong Kong benchmark .HSI fell 1.7%.
Apple Inc AAPL.O supplier and iPhone assembler Foxconn 2317.TW said on Thursday it expected flattish revenue in the fourth quarter, as the company grapples with COVID curbs at a major factory in China's Zhengzhou industrial hub.
In the crypto world, bitcoin BTC=BTSP rose 5% to $16,666 on Thursday, steadying after plunging sharply for two straight sessions to as low as $15,632, its lowest level since late 2020.
Binance, the world's biggest crypto exchange, said late on Wednesday that it had decided not to acquire smaller rival FTX, which has grappled with a severe liquidity crunch and warned it faces bankruptcy without more capital.
In commodities, oil prices edged down, after tumbling around 3% in the previous session on fears about demand from China and rising U.S. crude stocks. O/R
U.S. crude oil futures CLc1 were 0.7% lower at $85.23 per barrel, while Brent crude futures LCOc1 lost 0.33% to $92.28.
Gold was steady with the spot price XAU= at $1,707.3 per ounce. GOL/
Asia stock marketshttps://tmsnrt.rs/2zpUAr4
Asia-Pacific valuationshttps://tmsnrt.rs/2Dr2BQA
(Reporting by Stella Qiu in Sydney and Alun John in London ; Editing by Emelia Sithole-Matarise, Kirsten Donovan)
((yifan.qiu@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 supplier and iPhone assembler Foxconn 2317.TW said on Thursday it expected flattish revenue in the fourth quarter, as the company grapples with COVID curbs at a major factory in China's Zhengzhou industrial hub. By Stella Qiu and Alun John SYDNEY/LONDON, Nov 10 (Reuters) - Shares dipped slightly and the dollar firmed on Thursday, ahead of U.S. inflation data that will influence the Federal Reserve's rate plans, while the likely collapse of a major digital asset exchange rattled crypto investors. Binance, the world's biggest crypto exchange, said late on Wednesday that it had decided not to acquire smaller rival FTX, which has grappled with a severe liquidity crunch and warned it faces bankruptcy without more capital.
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Apple Inc AAPL.O supplier and iPhone assembler Foxconn 2317.TW said on Thursday it expected flattish revenue in the fourth quarter, as the company grapples with COVID curbs at a major factory in China's Zhengzhou industrial hub. By Stella Qiu and Alun John SYDNEY/LONDON, Nov 10 (Reuters) - Shares dipped slightly and the dollar firmed on Thursday, ahead of U.S. inflation data that will influence the Federal Reserve's rate plans, while the likely collapse of a major digital asset exchange rattled crypto investors. The U.S. dollar firmed on Thursday, with the euro dipping 0.6% to $0.9947 EUR=EBS while the yen was steady 146.45 per dollar.
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Apple Inc AAPL.O supplier and iPhone assembler Foxconn 2317.TW said on Thursday it expected flattish revenue in the fourth quarter, as the company grapples with COVID curbs at a major factory in China's Zhengzhou industrial hub. By Stella Qiu and Alun John SYDNEY/LONDON, Nov 10 (Reuters) - Shares dipped slightly and the dollar firmed on Thursday, ahead of U.S. inflation data that will influence the Federal Reserve's rate plans, while the likely collapse of a major digital asset exchange rattled crypto investors. .L.EU.N Sky-high inflation has caused the Fed to raise rates aggressively this year, a process that has boosted the dollar and caused U.S. Treasuries and shares around the world to sell off sharply.
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Apple Inc AAPL.O supplier and iPhone assembler Foxconn 2317.TW said on Thursday it expected flattish revenue in the fourth quarter, as the company grapples with COVID curbs at a major factory in China's Zhengzhou industrial hub. By Stella Qiu and Alun John SYDNEY/LONDON, Nov 10 (Reuters) - Shares dipped slightly and the dollar firmed on Thursday, ahead of U.S. inflation data that will influence the Federal Reserve's rate plans, while the likely collapse of a major digital asset exchange rattled crypto investors. Expectations for future meetings are divided.
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18481.0
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2022-11-10 00:00:00 UTC
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2 Top Tech Stocks to Buy for the Long Haul
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AAPL
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https://www.nasdaq.com/articles/2-top-tech-stocks-to-buy-for-the-long-haul-7
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nan
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nan
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You shouldn't expect most investments to make you lots of money right away. Most of the time, investing boils down to finding companies and stocks that can deliver wealth-building results in the long run.
The history books are packed with tremendous winners that spent many years in Wall Street's basement before going big.
Netflix barely kept up with the S&P 500 index in its first three years on the market, but has posted market-stomping returns of 19,300% after that modest start.
Apple nearly went out of business in 1997, saved by the return of Steve Jobs and a $150 million cash infusion from Microsoft. Now, Apple's stock carries the largest market cap on the planet.
Early investors who held on to their Apple and Netflix shares through the years are fabulously wealthy now. Through the magic of compound returns, a $10,000 Apple or Netflix investment at the end of 2004 would be worth more than $1 million today. And that's just an 18-year period, selected only because I wanted to show you a tidy hundredfold gain. Stretching the timeline further back results in even greater returns.
The Apples and Netflixes of the next 20 years are out there right now. They hide in plain sight as small-cap or mid-cap stocks with relatively modest revenue streams and even leaner profits. Let me show you two names that I believe could walk in the footsteps of those proven business giants.
The stocks below are a bit larger than Netflix was in 2004 but smaller than the Apple of that era. They might not make you rich in 2023 or 2024, but I expect them to deliver game-changing investment profits over the next couple of decades.
Silvergate is the thinking investor's crypto pick
I believe that cryptocurrencies are about to change the world in a thousand little ways. The heavily encrypted digital coins offer a whole new way to manage financial transactions, ownership records, and asset ownership. The new tools are inherently more secure than the simple spreadsheet entries and database posts of old, and could pose a real challenge to gold and paper money in the long run.
But I'm not asking you to pick a long-term winner among the thousands of different cryptocurrencies on today's market. Veteran names like Bitcoin and Ethereum have already been around for a decade and could have staying power for the next century -- or newer alternatives might replace them with fundamentally superior designs. I'm comfortable enough with the old guard to own a small serving of each, but I'm also prepared to lose it all if something better comes along.
Instead, I suggest that you look at the nuts and bolts of the cryptocurrency market. Regional bank Silvergate Capital (NYSE: SI) fits that description to a T.
Silvergate was one of the first financial institutions willing to provide loans and liquidity tools to the brand-new, unproven crypto sector. It still serves that vital function for many of the leading crypto-trading exchanges and many smaller projects.
Furthermore, Silvergate created its own digital trading service, the Silvergate Exchange Network (SEN), which helps clients serve and settle crypto trades quickly and cheaply, around the clock, with no weekend or holiday breaks.
The loans could come from any bank that has learned to trust digital traders, but there are no drop-in replacements available for the SEN platform. If you take Silvergate out of the equation, many giants of the crypto-trading world will struggle to do what they do.
That's why I expect Silvergate to continue playing this central role in the crypto industry for years to come. Digital coins will come and go, and so will the trading services that make them available to consumers and corporations. But Silvergate sticks around to make the whole system run, and the business will grow alongside the crypto sector as a whole.
And Silvergate's stock is quite affordable right now, trading at just 9 times earnings and 10 times free cash flows. This small-cap bank has a long and bright future, and savvy investors should snap up a few shares at this bargain-bin price.
Fiverr changes how working works
Freelance services manager Fiverr International (NYSE: FVRR) is shooting for the stars. The ultimate target market is the global total of freelance and contractor services in creative, technical, and professional endeavors. This sector generated $247 billion in revenue last year in the U.S. alone.
The company earns a small percentage of that massive business opportunity as a finder's fee for connecting freelancers to the people and businesses needing them. So far, most of the service pairings are done offline, but the online portion of it is growing year by year.
Fiverr isn't the only name in this business, but it is a firmly established leader and innovator in the so-called gig economy. As the digital freelancer sector grows, the company works to stay in the vanguard of that revolution. As time passes, it continues to expand its potential target market by launching services in new geographic regions, building additional services into its service-hunting platform, and exploring new business ideas in adjacent sectors.
That growth is a long-term project, and Fiverr has barely scratched the surface of the enormous market opportunity. Management's latest guidance points to full-year sales of just $337 million. Don't forget that the freelance market is a moving target, expanding as more of the global workforce moves out of traditional nine-to-five careers and into flexible freelancing.
As a high-octane growth stock, Fiverr pours every available penny of spare cash into sales, research, and company infrastructure costs. Therefore, its valuation ratios are sky-high and I can't call the stock "affordable." But I do believe that the company is in the early days of a game-changing growth spurt, and that the pennies you invest today should be worth dollars in 20 years -- just like in the Netflix and Apple examples above.
10 stocks we like better than Silvergate Capital Corporation
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 Silvergate Capital Corporation 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
Anders Bylund has positions in Bitcoin, Ethereum, Fiverr International, Netflix, and Silvergate Capital Corporation. The Motley Fool has positions in and recommends Apple, Bitcoin, Ethereum, Fiverr International, Microsoft, and Netflix. The Motley Fool recommends Silvergate Capital Corporation and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The new tools are inherently more secure than the simple spreadsheet entries and database posts of old, and could pose a real challenge to gold and paper money in the long run. Veteran names like Bitcoin and Ethereum have already been around for a decade and could have staying power for the next century -- or newer alternatives might replace them with fundamentally superior designs. But I do believe that the company is in the early days of a game-changing growth spurt, and that the pennies you invest today should be worth dollars in 20 years -- just like in the Netflix and Apple examples above.
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Fiverr changes how working works Freelance services manager Fiverr International (NYSE: FVRR) is shooting for the stars. The Motley Fool has positions in and recommends Apple, Bitcoin, Ethereum, Fiverr International, Microsoft, and Netflix. The Motley Fool recommends Silvergate Capital Corporation and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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Furthermore, Silvergate created its own digital trading service, the Silvergate Exchange Network (SEN), which helps clients serve and settle crypto trades quickly and cheaply, around the clock, with no weekend or holiday breaks. See the 10 stocks *Stock Advisor returns as of November 7, 2022 Anders Bylund has positions in Bitcoin, Ethereum, Fiverr International, Netflix, and Silvergate Capital Corporation. The Motley Fool recommends Silvergate Capital Corporation and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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The Apples and Netflixes of the next 20 years are out there right now. See the 10 stocks *Stock Advisor returns as of November 7, 2022 Anders Bylund has positions in Bitcoin, Ethereum, Fiverr International, Netflix, and Silvergate Capital Corporation. The Motley Fool has positions in and recommends Apple, Bitcoin, Ethereum, Fiverr International, Microsoft, and Netflix.
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18482.0
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2022-11-10 00:00:00 UTC
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Should Schwab U.S. LargeCap Growth ETF (SCHG) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-schwab-u.s.-largecap-growth-etf-schg-be-on-your-investing-radar-4
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nan
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nan
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Launched on 12/11/2009, the Schwab U.S. LargeCap Growth ETF (SCHG) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Charles Schwab. It has amassed assets over $12.95 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Further, growth stocks have a higher level of volatility associated with them. Compared to value stocks, growth stocks are a safer bet in a strong bull market, but don't perform as strongly in almost all other financial environments.
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 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.65%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 58.10% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc. Com (AAPL) accounts for about 12.86% of total assets, followed by Microsoft Corporation Com (MSFT) and Amazon.com Inc. Com (AMZN).
The top 10 holdings account for about 56.48% of total assets under management.
Performance and Risk
SCHG seeks to match the performance of the Dow Jones U.S. Large-Cap Growth Total Stock Market Index before fees and expenses. The Dow Jones U.S. Large-Cap Growth Total Stock Market Index is float-adjusted market-capitalization weighted and includes the large-cap growth portion of the Dow Jones U.S. Total Stock Market Index.
The ETF has lost about -33.50% so far this year and is down about -33% in the last one year (as of 11/10/2022). In the past 52-week period, it has traded between $54.56 and $83.40.
The ETF has a beta of 1.08 and standard deviation of 28.98% for the trailing three-year period, making it a medium risk choice in the space. With about 229 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab U.S. LargeCap Growth ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SCHG is a sufficient 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 $64.58 billion in assets, Invesco QQQ has $143.61 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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
Schwab U.S. LargeCap Growth ETF (SCHG): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. Com (AAPL) accounts for about 12.86% of total assets, followed by Microsoft Corporation Com (MSFT) and Amazon.com Inc. Com (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report It has amassed assets over $12.95 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc. Com (AAPL) accounts for about 12.86% of total assets, followed by Microsoft Corporation Com (MSFT) and Amazon.com Inc. Com (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Performance and Risk SCHG seeks to match the performance of the Dow Jones U.S. Large-Cap Growth Total Stock Market Index before fees and expenses.
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Looking at individual holdings, Apple Inc. Com (AAPL) accounts for about 12.86% of total assets, followed by Microsoft Corporation Com (MSFT) and Amazon.com Inc. Com (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 12/11/2009, the Schwab U.S. LargeCap Growth ETF (SCHG) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc. Com (AAPL) accounts for about 12.86% of total assets, followed by Microsoft Corporation Com (MSFT) and Amazon.com Inc. Com (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 12/11/2009, the Schwab U.S. LargeCap Growth ETF (SCHG) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
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18483.0
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2022-11-10 00:00:00 UTC
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Don’t Let This Apple News Sour You on AAPL Stock
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AAPL
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https://www.nasdaq.com/articles/dont-let-this-apple-news-sour-you-on-aapl-stock
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
When the going gets tough, stick with reliable businesses. For a good example of this principle in action, consider how Apple (NASDAQ:AAPL) stock held up comparatively well during this harsh earnings season.
Granted, some skeptics will observe that Apple isn’t planning to ramp up its hiring activity, but that’s not a reason to dismiss the tech giant.
It’s been just one problem after another for Big Tech in 2022. From supply chain woes to “sticky” inflation and Covid-19 lockdowns in China, the headlines all seem to be bearish lately.
Some people would add reports of hiring freezes to that list. Should Apple’s investors be concerned if the company isn’t planning to expand its headcount? Not necessarily, as the data will remind us of Apple’s resilience during these tough times for tech.
AAPL Apple $136.36
Apple’s Chilling on the Hiring, but Don’t Sweat It
Is it a deal-breaker if Apple plans to slow or halt its hiring activity? That’s for you to decide, but after delving into the details, you might decide not to lose sleep at night over Apple’s apparent hiring freeze.
So, here’s the scoop. Apparently, three “sources” said that Apple has halted its hiring activity for positions “across corporate divisions.” Furthermore, Apple’s pause in hiring could continue through September of 2023.
One of the three sources claimed that the hiring freeze will affect “full-time employees inside the company.” It’s not all negative news, though, as “divisions such as retail” are reportedly “still likely to add sales staffers at Apple locations in advance of the holiday gifting rush.”
So really, it’s not even a full-fledged hiring freeze as Apple seems to anticipate a robust holiday shopping season. Most likely, the company is just being cautious and a discontinuation of the hiring halt in the near future shouldn’t be too surprising if it happens.
AAPL Stock Didn’t Tumble Post-Earnings
The third-quarter 2022 earnings season was notorious for Big Tech companies. However, AAPL stock traders mostly maintained their composure after Apple released its quarterly data.
The Apple share price is down this year, but in light of the company’s earnings beat, there should be room for a recovery. If anything’s weighing the shares down, it’s probably general anxiety about Big Tech, not anything specific to Apple.
After all, Apple’s Q3 2022 earnings report has some notable strong points. The company announced a September-quarter record in terms of revenue, for example. Apple’s quarterly revenue totaled $90.1 billion, up 8% year-over-year (YOY), exceeding Wall Street’s forecast of $88.9 billion.
Meanwhile, Apple’s earnings per diluted share of $1.29 represented a 4% YOY improvement. That might not sound like much, but again, its was a harsh quarter for Big Tech overall. Moreover, Apple’s result beat the analyst consensus estimate of $1.27 per share.
What You Can Do Now
So, you have a choice to make. You can worry about Apple’s reported hiring freeze – which isn’t really a complete freeze, by the way. Or, you can browse through Apple’s financial data and consider how well the company performed during a tough quarter.
This isn’t to suggest that it will always be smooth sailing for Apple and its shareholders. There will be more challenges, and not everybody will be ready to buy more shares of AAPL stock. If this describes you, then feel free to hold on to the shares you already have as the holiday season could bring nice gifts, and possibly nice profits as well.
On the date of publication, Louis Navellier had a long position in AAPL. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.
The post Don’t Let This Apple News Sour You on AAPL Stock appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAPL Stock Didn’t Tumble Post-Earnings The third-quarter 2022 earnings season was notorious for Big Tech companies. For a good example of this principle in action, consider how Apple (NASDAQ:AAPL) stock held up comparatively well during this harsh earnings season. AAPL Apple $136.36 Apple’s Chilling on the Hiring, but Don’t Sweat It Is it a deal-breaker if Apple plans to slow or halt its hiring activity?
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For a good example of this principle in action, consider how Apple (NASDAQ:AAPL) stock held up comparatively well during this harsh earnings season. AAPL Apple $136.36 Apple’s Chilling on the Hiring, but Don’t Sweat It Is it a deal-breaker if Apple plans to slow or halt its hiring activity? AAPL Stock Didn’t Tumble Post-Earnings The third-quarter 2022 earnings season was notorious for Big Tech companies.
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AAPL Apple $136.36 Apple’s Chilling on the Hiring, but Don’t Sweat It Is it a deal-breaker if Apple plans to slow or halt its hiring activity? For a good example of this principle in action, consider how Apple (NASDAQ:AAPL) stock held up comparatively well during this harsh earnings season. AAPL Stock Didn’t Tumble Post-Earnings The third-quarter 2022 earnings season was notorious for Big Tech companies.
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For a good example of this principle in action, consider how Apple (NASDAQ:AAPL) stock held up comparatively well during this harsh earnings season. AAPL Apple $136.36 Apple’s Chilling on the Hiring, but Don’t Sweat It Is it a deal-breaker if Apple plans to slow or halt its hiring activity? AAPL Stock Didn’t Tumble Post-Earnings The third-quarter 2022 earnings season was notorious for Big Tech companies.
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18484.0
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2022-11-10 00:00:00 UTC
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3 Growth Stocks to Buy With $1,000 Right Now
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AAPL
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https://www.nasdaq.com/articles/3-growth-stocks-to-buy-with-%241000-right-now-4
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nan
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Growth stocks were battered badly on the market this year due to multiple headwinds, including rising interest rates, surging inflation, and macroeconomic headwinds. That resulted in a steep sell-off in major indexes such as the S&P 500 and the Nasdaq Composite which slipped over 20% and 33%, respectively, so far in 2022.
However, if you're a savvy investor with $1,000 to spare right now, it may be a good idea to buy some fast-growing companies that are trading at relatively attractive valuations. Cloudflare (NYSE: NET), Cirrus Logic (NASDAQ: CRUS), and Airbnb (NASDAQ: ABNB) are three high-growth companies that have witnessed a brutal sell-off in 2022, but their latest results indicate they are built for solid long-term growth.
Let's look at the reasons why investing $1,000 in these three stocks could be a good idea.
1. Cloudflare
Shares of internet infrastructure and security provider Cloudflare were in the doghouse on Nov. 4. The stock fell over 18% in a day despite releasing terrific third-quarter results that crushed Wall Street's estimates the day before. In this uncertain economic environment, even the idea that growth might be slowing was enough to spook investors and sink the stock.
The company's revenue shot up 47% year over year to $254 million, while adjusted earnings increased to $0.06 per share from $0.00 in the prior-year period. Analysts would have settled for $250.6 million in revenue and break-even earnings per share, but healthy growth in Cloudflare's customer base and an increase in customer spending helped it ease past consensus estimates.
The company added nearly 4,200 paying customers last quarter, which took its total count to 156,000. Additionally, the number of large paying customers who spend at least $100,000 on Cloudflare's services annually increased 51% year over year to 1,908. Not surprisingly, Cloudflare's dollar-based net retention rate stood at an impressive 124% last quarter.
This metric measures Cloudflare's "ability to retain and expand recurring revenue from existing customers," comparing the company's annualized revenue from its customers in a quarter to the revenue generated by the same set of customers in the year-ago period. So, a reading of over 100% means that Cloudflare's customers increased their adoption of the company's offerings or they are spending more on its services.
Cloudflare CEO Matthew Prince remarked on the latest earnings conference call that the company achieved solid year-over-year growth despite a challenging economic environment. The guidance suggests its impressive growth is here to stay. The company guided for $274 million in revenue in the current quarter, along with an adjusted net income of $0.04 to $0.05 per share. The revenue guidance points toward 41% year-over-year growth, while earnings should increase once again over last year's breakeven.
Even better, Cloudflare believes that it is on its way to achieving annualized revenue of $5 billion over the next five years. That would be a big improvement over the company's current annualized revenue run rate of $1 billion. All this makes Cloudflare a top growth stock to buy right now, especially considering that it is trading at 14 times sales as compared to last year's multiple of nearly 69.
2. Cirrus Logic
Semiconductor stocks are having a horrid time on the market, but Cirrus Logic had a different story to tell when it released its fiscal 2023 second-quarter results on Nov. 1. The company's revenue increased 16% year over year to $541 million, driven by higher average selling prices (ASPs), stronger smartphone shipment volumes, and content gains in the high-performance mixed-signal (HPMS) business.
The company's non-GAAP (adjusted) earnings for the three months ended Sept. 24, 2022, increased to $1.99 per share from $1.82 per share. Cirrus' robust year-over-year growth may lead one to wonder how the company managed to do well at a time when smartphone sales are declining. But with Cirrus getting 82% of its revenue from selling chips to Apple (NASDAQ: AAPL) last quarter, it becomes clear why the company registered healthy growth.
Apple reportedly shipped 48.5 million iPhones in the third quarter, an increase of 6.4% over the prior-year period. Given that Cirrus is reportedly supplying five chips for each unit of the iPhone -- including audio amplifiers, audio codecs, and voice processors -- it wasn't surprising to see the chipmaker beat the weakness in the smartphone market on the back of a mix of higher volumes and more content.
Apple's dominance of the 5G smartphone space and Cirrus' close relationship with the iPhone maker suggests that the latter could sustain its momentum in the future. At the same time, investors shouldn't miss the fact that Cirrus' entry into the HPMS business unlocked a big growth opportunity. The company now sees its serviceable addressable market increasing to $7.3 billion in 2026 from $3.4 billion last year.
The company's HPMS revenue was up 23% year over year last quarter to $203 million. The segment accounted for 37% of Cirrus' top line. The company expects the HPMS business to produce half of its total revenue in the future. So, the strength of the legacy audio business and Cirrus' entry into a new vertical should turn out to be long-term tailwinds and boost the company's top and bottom lines.
With the stock trading at 11 times trailing earnings right now, investors with $1,000 to spare may want to spend some of that money on adding Cirrus Logic to their portfolios as it is available at an attractive valuation.
3. Airbnb
Airbnb is another fast-growing company that reported solid results recently, but investors decided to nitpick, and the stock witnessed a big sell-off. The vacation rental platform reported a 29% year-over-year increase in revenue in the third quarter to $2.9 billion, which was a record. The company also enjoyed strong margin growth, reporting a net income margin of 42% as compared to 37% in the year-ago period.
Airbnb's solid results were driven by an increase in the number of nights and experiences booked last quarter, as well as healthy average daily rates (ADRs) that increased 12% year over year (excluding the impact of foreign currency fluctuations) to $156 in Q3. More specifically, Airbnb's nights and experiences increased 25% year over year to 99.7 million last quarter. Its net income increased 46% year over year to $1.79 per share.
The guidance, however, was a sore point for investors. Airbnb guided for $1.84 billion in revenue this quarter at the midpoint of its range, which would translate into 20% growth over the year-ago quarter. Excluding the forex impact, Airbnb sees its revenue jumping 26% over the year-ago period. Airbnb's projected growth is impressive but just a hair short of the $1.85 billion revenue analysts were looking for.
Given that Airbnb is set to sustain its healthy growth levels in the long run thanks to the $79 billion incremental revenue opportunity in the vacation rental market through 2026, according to TechNavio, now may be a good time for savvy investors to buy the stock. Airbnb is trading at 8 times sales, which is a big discount to its 2021 average of 19. The forward price-to-earnings ratio of 31 is also way lower than last year's multiple of 128, suggesting that investors are getting a sweet deal on Airbnb stock right now.
10 stocks we like better than Cloudflare, Inc.
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*Stock Advisor returns as of November 7, 2022
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Airbnb, Inc., Apple, and Cloudflare, Inc. The Motley Fool recommends Cirrus Logic and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But with Cirrus getting 82% of its revenue from selling chips to Apple (NASDAQ: AAPL) last quarter, it becomes clear why the company registered healthy growth. Cloudflare CEO Matthew Prince remarked on the latest earnings conference call that the company achieved solid year-over-year growth despite a challenging economic environment. With the stock trading at 11 times trailing earnings right now, investors with $1,000 to spare may want to spend some of that money on adding Cirrus Logic to their portfolios as it is available at an attractive valuation.
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But with Cirrus getting 82% of its revenue from selling chips to Apple (NASDAQ: AAPL) last quarter, it becomes clear why the company registered healthy growth. The company's revenue increased 16% year over year to $541 million, driven by higher average selling prices (ASPs), stronger smartphone shipment volumes, and content gains in the high-performance mixed-signal (HPMS) business. Airbnb's solid results were driven by an increase in the number of nights and experiences booked last quarter, as well as healthy average daily rates (ADRs) that increased 12% year over year (excluding the impact of foreign currency fluctuations) to $156 in Q3.
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But with Cirrus getting 82% of its revenue from selling chips to Apple (NASDAQ: AAPL) last quarter, it becomes clear why the company registered healthy growth. The company's revenue shot up 47% year over year to $254 million, while adjusted earnings increased to $0.06 per share from $0.00 in the prior-year period. This metric measures Cloudflare's "ability to retain and expand recurring revenue from existing customers," comparing the company's annualized revenue from its customers in a quarter to the revenue generated by the same set of customers in the year-ago period.
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But with Cirrus getting 82% of its revenue from selling chips to Apple (NASDAQ: AAPL) last quarter, it becomes clear why the company registered healthy growth. All this makes Cloudflare a top growth stock to buy right now, especially considering that it is trading at 14 times sales as compared to last year's multiple of nearly 69. The company's HPMS revenue was up 23% year over year last quarter to $203 million.
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18485.0
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2022-11-10 00:00:00 UTC
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GLOBAL MARKETS-Shares dip, dollar holds steady ahead of U.S. inflation data
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AAPL
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https://www.nasdaq.com/articles/global-markets-shares-dip-dollar-holds-steady-ahead-of-u.s.-inflation-data
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nan
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By Stella Qiu and Alun John
SYDNEY/LONDON, Nov 10 (Reuters) - Share markets edged down on Thursday and the dollar held onto overnight gains before U.S. inflation data that will influence the Federal Reserve's rate plans, while the likely collapse of a major crypto exchange rattled investors.
Europe's STOXX 600 index .STOXX fell 0.4%, and Asia's broadest index of shares outside Japan .MIAPJ0000PUS dipped by a similar amount, as traders were cautious of placing too many bets ahead of the data. U.S. S&P500 futures ESc1 inched up 0.2%.
Sky-high inflation has caused the Fed to raise rates aggressively this year, a process that has boosted the dollar and caused U.S. Treasuries and shares around the world to sell off sharply.
Hopes the Fed might be nearing the end of this process helped the STOXX benchmark to a two month high earlier this week, however.
The release of U.S. CPI data, due at 1330 GMT, is the main event of the day for markets as investors try to position themselves based on when and at what level they think U.S. interest rates will peak.
The report is expected to show a slowing in both the monthly and yearly core numbers for October to 0.5% and 6.5%, respectively, according to a Reuters poll.
"I think the story here is that there are many indications of inflation peaking and rolling over - such as supply chains, used cars, maybe wages - but they simply haven't shown in the CPI report, so the question is: is today the day that all these indicators finally show up?" said Samy Chaar, chief economist at Lombard Odier.
"Everyone is focused on that and how that will affect the pricing for not only the December Fed meeting but also the peak policy rate pricing."
He said if CPI came in higher than expected, particularly its core components then that pricing would go up, which would be a dollar bullish story, while a lower than expected print could cause the dollar to give back some gains.
Markets are currently pricing in a 54% chance of a 50-basis-point increase at the Fed's December meeting, according to CME's Fedwatch tool, with still a good chance of a 75-basis-point rise. Expectations for future meetings are divided.
The U.S. dollar was a fraction firmer on Thursday at $0.9986 per euro EUR=EBS and 146.38 yen JPY=EBS. FRX/
It hit a 32-year high of 151.94 yen in October and a 20-year peak against the euro in September when the European common currency dropped as low as $0.9528.
The benchmark 10 year U.S. treasury yield US10YT=RR was 4.1% steady on the day, while European government bond yields were also largely flat. US/GVD/EUR
The looming CPI data meant markets largely looked through the outcome of the U.S. mid-term elections. Republicans were edging closer to securing a majority in the U.S. House of Representatives while control of the Senate hung in the balance.
CHINA's COVID SURGE
Another factor for markets is that China is again grappling with a COVID-19 surge, with the southern metropolis of Guangzhou reporting thousands of cases. Chinese blue-chips .CSI300 lost 0.7% and the Hong Kong benchmark .HSI fell 1.7%.
Apple Inc AAPL.O supplier and iPhone assembler Foxconn 2317.TW said on Thursday it expected flattish revenue in the fourth quarter, as the company grapples with COVID-19 curbs at a major factory in China's Zhengzhou industrial hub.
In the crypto world, bitcoin BTC=BTSP rose 5% to $16,666 on Thursday, after plunging sharply for two straight sessions to as low as $15,632, its lowest level since late 2020.
Binance, the world's biggest crypto exchange, said late on Wednesday that it had decided not to acquire smaller rival FTX, which has grappled with a severe liquidity crunch and warned it faces bankruptcy without more capital.
In commodities, oil prices edged down on Thursday, after tumbling around 3% in the previous session on fears of demand from China and rising U.S. crude stocks. O/R
U.S. crude oil futures CLc1 were 0.16% lower at $85.63 per barrel, while Brent crude futures LCOc1 lost 0.37% to 92.39.
Gold was steady with the spot price XAU= at $1,707.3 per ounce. GOL/
Asia stock marketshttps://tmsnrt.rs/2zpUAr4
Asia-Pacific valuationshttps://tmsnrt.rs/2Dr2BQA
(Reporting by Stella Qiu in Sydney and Alun John in London ; Editing by Sam Holmes and Emelia Sithole-Matarise)
((yifan.qiu@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 supplier and iPhone assembler Foxconn 2317.TW said on Thursday it expected flattish revenue in the fourth quarter, as the company grapples with COVID-19 curbs at a major factory in China's Zhengzhou industrial hub. By Stella Qiu and Alun John SYDNEY/LONDON, Nov 10 (Reuters) - Share markets edged down on Thursday and the dollar held onto overnight gains before U.S. inflation data that will influence the Federal Reserve's rate plans, while the likely collapse of a major crypto exchange rattled investors. Binance, the world's biggest crypto exchange, said late on Wednesday that it had decided not to acquire smaller rival FTX, which has grappled with a severe liquidity crunch and warned it faces bankruptcy without more capital.
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Apple Inc AAPL.O supplier and iPhone assembler Foxconn 2317.TW said on Thursday it expected flattish revenue in the fourth quarter, as the company grapples with COVID-19 curbs at a major factory in China's Zhengzhou industrial hub. By Stella Qiu and Alun John SYDNEY/LONDON, Nov 10 (Reuters) - Share markets edged down on Thursday and the dollar held onto overnight gains before U.S. inflation data that will influence the Federal Reserve's rate plans, while the likely collapse of a major crypto exchange rattled investors. Europe's STOXX 600 index .STOXX fell 0.4%, and Asia's broadest index of shares outside Japan .MIAPJ0000PUS dipped by a similar amount, as traders were cautious of placing too many bets ahead of the data.
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Apple Inc AAPL.O supplier and iPhone assembler Foxconn 2317.TW said on Thursday it expected flattish revenue in the fourth quarter, as the company grapples with COVID-19 curbs at a major factory in China's Zhengzhou industrial hub. By Stella Qiu and Alun John SYDNEY/LONDON, Nov 10 (Reuters) - Share markets edged down on Thursday and the dollar held onto overnight gains before U.S. inflation data that will influence the Federal Reserve's rate plans, while the likely collapse of a major crypto exchange rattled investors. Sky-high inflation has caused the Fed to raise rates aggressively this year, a process that has boosted the dollar and caused U.S. Treasuries and shares around the world to sell off sharply.
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Apple Inc AAPL.O supplier and iPhone assembler Foxconn 2317.TW said on Thursday it expected flattish revenue in the fourth quarter, as the company grapples with COVID-19 curbs at a major factory in China's Zhengzhou industrial hub. By Stella Qiu and Alun John SYDNEY/LONDON, Nov 10 (Reuters) - Share markets edged down on Thursday and the dollar held onto overnight gains before U.S. inflation data that will influence the Federal Reserve's rate plans, while the likely collapse of a major crypto exchange rattled investors. "Everyone is focused on that and how that will affect the pricing for not only the December Fed meeting but also the peak policy rate pricing."
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18486.0
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2022-11-10 00:00:00 UTC
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The Real Reason Behind MercadoLibre Stock's Wild Success
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AAPL
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https://www.nasdaq.com/articles/the-real-reason-behind-mercadolibre-stocks-wild-success
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nan
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nan
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MercadoLibre (NASDAQ: MELI) has been one of the few e-commerce companies that have held up relatively well during this stock market downturn. While e-commerce stocks around the world have fallen by 40%, 50%, or even 80% year to date, MercadoLibre is down a little more than 30% over the same period. That's a better performance than even Amazon (NASDAQ: AMZN), which has fallen 45% this year.
What's the reason behind MercadoLibre's relative resiliency? The key could be the company's top-line growth. While many e-commerce companies have seen top-line expansion slow and even halt, 2022 has been remarkable for MercadoLibre: Year-over-year revenue growth has remained above 40% this year.
The primary driver behind this Latin American company is not its e-commerce side but its exciting fintech business, Mercado Pago. Here's why long-term investors should get excited about the potential Pago has to offer.
Image source: Getty Images.
Pago is taking the wheel
MercadoLibre is known for its dominant e-commerce operations in Latin America, especially in Brazil, Mexico, and Argentina. The company had roughly 20% e-commerce market share in the region in 2021, according to Statista. This makes sense, considering the company sold more than 284 million items totaling $8.6 billion in the third quarter alone. However, MercadoLibre's real revenue improvements come from the fintech side of its business, Mercado Pago.
Pago has gained incredible traction in Latin America. It now has 41.6 million active users, compared to 31.6 million just one year ago. As a result, fintech revenue soared. In the third quarter, it shot 115% higher year over year to $1.2 billion. In the third quarter of 2021, Pago generated roughly half of the revenue that MercadoLibre's e-commerce segment did, but now, it is generating almost 84%.
The likely cause of this increased penetration is the company's success outside of its own platform. Off-platform total payment volume (volume facilitated outside of its e-commerce site) rose 122% year over year in the third quarter, and it now represents 72% of total payment volume.
So what does that mean? Using a fintech platform outside its natural ecosystem demonstrates how much consumers rely on it. Just like you might use Apple Pay to buy groceries, using Pago on other platforms besides MercadoLibre signals sustainable adoption.
Same geography, different story
What's appealing about MercadoLibre's fintech segment is that it benefits from the tailwinds pushing its e-commerce business but doesn't have the saturation the other segment has.
Latin America has one of the fastest-growing internet penetration rates worldwide, meaning that consumers in the region are adopting these digital technologies at a rapid rate. And with 41.6 million active accounts, Pago has barely scratched the surface of its entire opportunity, considering there are 650 million people in Latin America.
The level of competition in the fintech space is also much lower than in e-commerce. Fintech start-up and venture investments in Latin America have just started to ramp up, and while that could pose a risk over the next decade, it gives Pago a notable head start to gain market share while these emerging players achieve scale.
Conversely, MercadoLibre's e-commerce business is fighting against large multibillion-dollar players like Amazon and Sea Limited's (NYSE: SE) Shopee, among others.
Buy Pago, get the rest free
MercadoLibre trades at just 4.9 times sales, the company's cheapest valuation since 2009 (aside from July 2022). But its fintech business might deserve a much higher premium, given its adoption in an emerging space.
If you believe Mercado Pago alone should be valued at 11 times trailing-12-month sales, Pago would be almost a $46 billion company by itself. Comparatively, MercadoLibre's total market capitalization is just $47 billion.
In other words, investors are getting MercadoLibre's e-commerce segment almost free at today's prices, assuming this valuation for Pago.
MercadoLibre is in a fantastic position today. It is the top dog in two industries that are rising in popularity, and it's capturing the benefits. With much more room to run during the coming years, investors could see lucrative returns over the long haul. And at today's valuation, investors are getting this high-quality company at a significant bargain.
10 stocks we like better than MercadoLibre
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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. Jamie Louko has positions in Amazon, Apple, MercadoLibre, and Sea Limited. The Motley Fool has positions in and recommends Amazon, Apple, MercadoLibre, and Sea Limited. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While many e-commerce companies have seen top-line expansion slow and even halt, 2022 has been remarkable for MercadoLibre: Year-over-year revenue growth has remained above 40% this year. Conversely, MercadoLibre's e-commerce business is fighting against large multibillion-dollar players like Amazon and Sea Limited's (NYSE: SE) Shopee, among others. Buy Pago, get the rest free MercadoLibre trades at just 4.9 times sales, the company's cheapest valuation since 2009 (aside from July 2022).
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The primary driver behind this Latin American company is not its e-commerce side but its exciting fintech business, Mercado Pago. The Motley Fool has positions in and recommends Amazon, Apple, MercadoLibre, and Sea Limited. 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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MercadoLibre (NASDAQ: MELI) has been one of the few e-commerce companies that have held up relatively well during this stock market downturn. While many e-commerce companies have seen top-line expansion slow and even halt, 2022 has been remarkable for MercadoLibre: Year-over-year revenue growth has remained above 40% this year. The primary driver behind this Latin American company is not its e-commerce side but its exciting fintech business, Mercado Pago.
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In the third quarter, it shot 115% higher year over year to $1.2 billion. Just like you might use Apple Pay to buy groceries, using Pago on other platforms besides MercadoLibre signals sustainable adoption. The Motley Fool has positions in and recommends Amazon, Apple, MercadoLibre, and Sea Limited.
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18487.0
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2022-11-10 00:00:00 UTC
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China Lockdowns Bite Apple (NASDAQ:AAPL), Yet Analyst Remains Bullish
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AAPL
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https://www.nasdaq.com/articles/china-lockdowns-bite-apple-nasdaq%3Aaapl-yet-analyst-remains-bullish
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nan
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nan
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Tech titan Apple (NASDAQ:AAPL) is not protected from a potential recession. Recently, the company warned of lower-than-expected shipments of the iPhone 14 this year due to COVID-related lockdowns in China. There are growing concerns on the Street that Apple’s revenue growth in its fiscal year 2023 might take a hit. Nonetheless, JPMorgan analyst Samik Chatterjee remains steadfast with his Buy rating and $200 price target on AAPL stock.
Notwithstanding his long-term bullish view, the analyst acknowledged the inescapable near-term concerns that are staring at Apple in the forthcoming months. So this piece is going to be an unusual one based on a bullish analyst’s report that focuses on the headwinds.
Near-Term Risks Are Rife, but the Long-Term Outlook Is Unchanged
Lockdowns in Zhengzhou are adversely impacting operations at Hon Hai/ Foxconn’s assembly facility for the iPhone 14 Pro and iPhone 14 Pro Max. This facility assembles 60% of the iPhones produced, and an impact on its production capacity is evidently a major concern for Apple.
Being the most sought-after models of the iPhone 14 series, lower production of the iPhone Pro and iPhone Pro Max is likely to hurt revenues. Besides that, the absence of a second manufacturing and assembly source for these models makes the situation more problematic.
The affected supply due to the China lockdowns and other headwinds has also extended the lead times for customer deliveries of the iPhone 14 Pro and iPhone 14 Pro Max by a week. Chatterjee expects delayed shipments to push out into the March-end quarter or later. The analyst also does not anticipate Apple being able to achieve the “supply-demand balance that it usually does every year with lead times dropping to a matter of days by the end of C4Q/F1Q.”
Nevertheless, Chatterjee thinks that rather than canceling their purchases or purchasing an alternative phone, customers will probably decide to wait longer for their iPhones to come.
“We see upside in several aspects of the business as well as financials that remain underappreciated by investors, namely the transformation of the company to Services, growth in the installed base, technology leadership, and optionality around capital deployment—all of which together lead us to expect double-digit earnings growth and a modest re-rating for the shares,” said Chatterjee.
Is Apple a Buy, Sell, or Hold?
Bulls are running for Apple stock on Wall Street, with a Strong Buy consensus based on 21 Buys and four Holds. Analysts also expect the price to reach $179.13 over the next year, growing 31% from the current level.
Apple Might Be Too Expensive Now but Worthy for the Long Run
At a price-to-earnings (P/E) multiple of more than 20 times the forward 12-month earnings estimates, Apple is trading higher than the Nasdaq 100’s P/E multiple of around 19.7. This makes the stock look expensive. However, this should not divert investors from the company’s long-term prospects.
Chatterjee thinks that the company has “sustainable secular drivers in iPhone and Services with a larger installed base, higher share in 5G smartphones, and better Services monetization—all together turning out to be a strategic advantage for the company.”
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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Nonetheless, JPMorgan analyst Samik Chatterjee remains steadfast with his Buy rating and $200 price target on AAPL stock. Tech titan Apple (NASDAQ:AAPL) is not protected from a potential recession. Notwithstanding his long-term bullish view, the analyst acknowledged the inescapable near-term concerns that are staring at Apple in the forthcoming months.
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Tech titan Apple (NASDAQ:AAPL) is not protected from a potential recession. Nonetheless, JPMorgan analyst Samik Chatterjee remains steadfast with his Buy rating and $200 price target on AAPL stock. Near-Term Risks Are Rife, but the Long-Term Outlook Is Unchanged Lockdowns in Zhengzhou are adversely impacting operations at Hon Hai/ Foxconn’s assembly facility for the iPhone 14 Pro and iPhone 14 Pro Max.
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Tech titan Apple (NASDAQ:AAPL) is not protected from a potential recession. Nonetheless, JPMorgan analyst Samik Chatterjee remains steadfast with his Buy rating and $200 price target on AAPL stock. Being the most sought-after models of the iPhone 14 series, lower production of the iPhone Pro and iPhone Pro Max is likely to hurt revenues.
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Tech titan Apple (NASDAQ:AAPL) is not protected from a potential recession. Nonetheless, JPMorgan analyst Samik Chatterjee remains steadfast with his Buy rating and $200 price target on AAPL stock. The affected supply due to the China lockdowns and other headwinds has also extended the lead times for customer deliveries of the iPhone 14 Pro and iPhone 14 Pro Max by a week.
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18488.0
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2022-11-10 00:00:00 UTC
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Here's Why Smart Investors Should Be Buying Airbnb's Stock Hand Over Fist
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AAPL
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https://www.nasdaq.com/articles/heres-why-smart-investors-should-be-buying-airbnbs-stock-hand-over-fist
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nan
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nan
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Sometimes, general market sentiment is enough to steer stocks downward, even though the business's trajectory is clearly pointing in the right direction. This situation is precisely where Airbnb (NASDAQ: ABNB) finds itself.
Even though the company reported tremendous third-quarter earnings, the stock has fallen nearly 10% and sits at a cheap valuation. Smart investors are the ones who look at Airbnb's business and don't let short-term sentiment affect their long-term investing decisions.
Here's why now could be an excellent time to purchase Airbnb stock, despite its recent trading indicating otherwise.
A blowout third quarter
Every critical metric Airbnb reports grew rapidly in the third quarter.
METRIC YOY CHANGE
Nights and experiences booked 25%
Gross booking value 31%
Revenue 29%
Net income 46%
Data source: Airbnb. YOY = year over year.
The first thing to note is that gross booking value (GBV) rose faster than nights and experiences booked. This indicates Airbnb's hosts are successfully charging more for their offerings, showing the hosts have pricing power on the platform.
Rising GBV lets Airbnb scrape more revenue from each booking, and with revenue rising 29% year over year, travel demand stayed high during the quarter despite many consumers feeling the pinch financially.
But the bottom line is what really impresses me: $1.2 billion in net income. That's enough for a 42% net income margin -- enough to beat out Apple (23%), Microsoft (35%), and Alphabet (20%) in their most recent quarters. This elite level of profitability will allow Airbnb to stockpile cash and make key acquisitions or continue repurchasing shares (which it is currently doing to offset dilution from stock-based compensation).
As for free cash flow, Airbnb has generated $3.3 billion of it over the last 12 months. With its current $63 billion market cap, that prices Airbnb's stock at a meager 18.9 times free cash flow. It's rare to find companies growing at this pace with margins this high and an attractive valuation, but that's what the market is giving you.
So why is the stock's price so cheap?
Regulations cast a shadow over Airbnb's business
To start, Airbnb's fourth-quarter outlook was slightly disappointing, at least to some people. Revenue is expected to come between $1.80 billion and $1.88 billion, indicating 20% growth at the midpoint -- a slowdown from last quarter's 29% pace. It also expects nights and experiences booked growth to slow too.
While the company doesnt reportnet income or free-cash-flow guidance, it expects adjusted EBITDA margins to match or come in slightly higher than the prior-year period's 22% (and well below the third-quarter tally of 51%). Airbnb's business sees seasonal trends, so investors must remember the first and fourth quarters will underperform the second and third.
Still, that's not a terrible outlook, considering the University of Michigan's Consumer Sentiment Index is still near all-time lows. When the economy recovers and inflation stabilizes, Airbnb could see a renewed travel surge, sparking another wave of growth. However, when or if that happens remains to be seen.
One other development investors need to keep an eye on are the increasing calls to regulate Airbnb residences. Many critics point their finger at the company for contributing to a housing crunch, especially in the affordable home and renters markets. On Nov. 4, New York City proposed a set of rules that bans hosts from renting out an "entire registered dwelling unit," among other restrictions, beginning in Jan. 2023.
Now, it's unclear if these rules will be fought in court or if they will spread to other areas of the country, but it's something Airbnb investors need to watch. It will probably be fine if Airbnb is affected in one or two of its large markets, but the investment thesis comes under threat if restrictive policies spread quickly.
I feel that's unlikely to happen, and investors who agree can buy into a fantastic business at a great price. With Airbnb down over 9% just this past month, it's a solid opportunity to purchase some shares.
10 stocks we like better than Airbnb, Inc.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Keithen Drury has positions in Airbnb, Inc. and Alphabet (C shares). The Motley Fool has positions in and recommends Airbnb, Inc., Alphabet (A shares), Alphabet (C shares), 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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This elite level of profitability will allow Airbnb to stockpile cash and make key acquisitions or continue repurchasing shares (which it is currently doing to offset dilution from stock-based compensation). While the company doesnt reportnet income or free-cash-flow guidance, it expects adjusted EBITDA margins to match or come in slightly higher than the prior-year period's 22% (and well below the third-quarter tally of 51%). On Nov. 4, New York City proposed a set of rules that bans hosts from renting out an "entire registered dwelling unit," among other restrictions, beginning in Jan. 2023.
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Nights and experiences booked 25% Gross booking value 31% Revenue 29% Net income 46% Data source: Airbnb. Rising GBV lets Airbnb scrape more revenue from each booking, and with revenue rising 29% year over year, travel demand stayed high during the quarter despite many consumers feeling the pinch financially. The Motley Fool has positions in and recommends Airbnb, Inc., Alphabet (A shares), Alphabet (C shares), Apple, and Microsoft.
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Rising GBV lets Airbnb scrape more revenue from each booking, and with revenue rising 29% year over year, travel demand stayed high during the quarter despite many consumers feeling the pinch financially. With its current $63 billion market cap, that prices Airbnb's stock at a meager 18.9 times free cash flow. The Motley Fool has positions in and recommends Airbnb, Inc., Alphabet (A shares), Alphabet (C shares), Apple, and Microsoft.
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That's enough for a 42% net income margin -- enough to beat out Apple (23%), Microsoft (35%), and Alphabet (20%) in their most recent quarters. Revenue is expected to come between $1.80 billion and $1.88 billion, indicating 20% growth at the midpoint -- a slowdown from last quarter's 29% pace. 10 stocks we like better than Airbnb, Inc.
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18489.0
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2022-11-09 00:00:00 UTC
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Should Investors Buy the Dip on Apple Stock?
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AAPL
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https://www.nasdaq.com/articles/should-investors-buy-the-dip-on-apple-stock
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nan
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nan
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Like many tech stocks in 2022, Apple's (NASDAQ: AAPL) shares are down year to date with a loss of 22%. Rising inflation and interest rates have hurt consumer spending and other parts of the economy, leading to a stock market sell-off. The Nasdaq Composite index is down 32% so far this year.
While Apple stock has suffered, it has still fared far better than many of its technology peers. For instance, Alphabet and Microsoft have dipped 39% and 32%, respectively.
The iPhone company has proven it's capable of successfully pushing through poor market conditions. Here's why Apple is a must-buy after its considerable dip this year.
Beating the odds
On Oct. 27, Apple released its fiscal 2022 year-end financial report, beating Wall Street's expectations on revenue and earnings per share (EPS). The company reported an EPS of $1.29, versus an expectation of $1.27, and $90.15 billion in revenue against the analyst consensus of $88.90 billion.
The promising results come after months of media reports that Apple was headed for turmoil, with suggestions that sales of its 2022 iPhone lineup were significantly lower than in previous years, and its services business could be in trouble if consumers continue to cut their discretionary spending.
For the full year, revenue rose only 7.8% compared to the 33.2% surge seen in fiscal 2021. Growth slowed considerably, but it's important to remember the meteoric rise the tech industry enjoyed last year as consumers homebound during the pandemic invested in home-office and entertainment devices. In fact, all of Apple's segments in fiscal 2021 saw growth between 20% and 40%.
Despite the uneven year-over-year comparison, all but one of Apple's segments reported growth in fiscal 2022. For example, iPhone sales grew 7%, which the company attributed primarily to the success of its iPhone 14 lineup, released in September. Meanwhile, its Mac segment rose 14%, wearables 7%, and services 14%. The only segment to decline was iPad, falling 8%, which the company said was due to lower iPad Pro sales.
However, the last iPad Pro release was in May 2021. The newest version only came out in late October, meaning it didn't contribute to Apple's fiscal 2022 results.
Apple didn't have a perfect year, but its growth, despite ongoing market conditions, reinforces its reputation as a dominant, reliable company to buy and hold long term.
A cash machine
As fears of a recession grow, cash flow is becoming an increasingly important metric that illustrates a business's ability to weather an economic downturn. And once again, Apple stands above all with free cash flow of $111 billion in the past year.
Data by YCharts.
That's enough cash generated in a single year to cover the company's nearly $120 billion of borrowings, not to mention the $169 billion of existing cash and marketable securities on its balance sheet.
The rise of Apple's services business is especially promising in terms of cash. The segment, which includes digital offerings such as Apple Music, TV+, and iCloud reported a gross margin of 71.7% for the year, compared to 36.3% for Apple's products business. In fact, margins for the entire company have been expanding in recent years.
Apple is an industry-leading business that can thrive in a recession or bear market. The stock has dipped considerably in 2022, but that should only make it more attractive to investors.
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 September 30, 2022
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., 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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Like many tech stocks in 2022, Apple's (NASDAQ: AAPL) shares are down year to date with a loss of 22%. The promising results come after months of media reports that Apple was headed for turmoil, with suggestions that sales of its 2022 iPhone lineup were significantly lower than in previous years, and its services business could be in trouble if consumers continue to cut their discretionary spending. Growth slowed considerably, but it's important to remember the meteoric rise the tech industry enjoyed last year as consumers homebound during the pandemic invested in home-office and entertainment devices.
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Like many tech stocks in 2022, Apple's (NASDAQ: AAPL) shares are down year to date with a loss of 22%. 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 (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., and Microsoft.
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Like many tech stocks in 2022, Apple's (NASDAQ: AAPL) shares are down year to date with a loss of 22%. The segment, which includes digital offerings such as Apple Music, TV+, and iCloud reported a gross margin of 71.7% for the year, compared to 36.3% for Apple's products business. See the 10 stocks *Stock Advisor returns as of September 30, 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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Like many tech stocks in 2022, Apple's (NASDAQ: AAPL) shares are down year to date with a loss of 22%. In fact, all of Apple's segments in fiscal 2021 saw growth between 20% and 40%. That's right -- they think these 10 stocks are even better buys.
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18490.0
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2022-11-09 00:00:00 UTC
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GLOBAL MARKETS-Asian shares fall ahead of U.S. CPI, crypto worries mount
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AAPL
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https://www.nasdaq.com/articles/global-markets-asian-shares-fall-ahead-of-u.s.-cpi-crypto-worries-mount
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nan
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nan
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By Stella Qiu
SYDNEY, Nov 10 (Reuters) - Asian share markets were tense on Thursday and the dollar held on to its overnight gains before the big test of a U.S. consumer inflation report, while market sentiment took a dive as the likely collapse of a major crypto exchange spooked investors.
With no final results available from the U.S. mid-term elections, investors were turning to the upcoming inflation data later in the day, which are likely to show a decline in both the monthly and yearly core numbers for October to 0.5% and 6.5%, respectively, according to a Reuters poll.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS dropped 0.6% in early trade, dragged lower by outsized declines in China's bluechips .CSI300 and Hong Kong's Hang Seng index .HSI.
Japan's Nikkei .N225 lost 1%.
China is again grappling with a COVID surge, with the southern metropolis of Guangzhou reporting thousands of cases. Apple Inc AAPL.O supplier Foxconn 2317.TW plans to update its fourth-quarter outlook on Thursday, after strict COVID curbs remained in place at its major plant in China despite the lifting of a lockdown.
Elsewhere, focus remained squarely on inflation.
Still, some central banks in both developed and emerging markets had become dovish as they worried about monetary tightening pushing down economic growth, the analysts noted.
The futures market currently shows investors believe the target U.S. federal funds rate will peak around 5.1% by next June, and the chances of a rise of 50 or 75 basis points are tilted in favour of a half-point increase next month. FEDWATCH
In the crypto world, bitcoin BTC=BTSP clawed back some ground in early trade on Thursday, after tumbling for two straight sessions to its lowest level since late 2020.
Binance, the world's biggest crypto exchange, said late on Wednesday that it had decided not to acquire smaller rival FTX, which has grappled with a severe liquidity crunch and faced bankruptcy without more capital.
"You can't deny the growing correlation between bitcoin and risk assets. The FTX news is having an outsized effect on asset prices," said Stephen Innes, managing partner at SPI Asset Management.
"Bitcoin spillovers are not negligible, and given how widely crypto coins are held, it could mean more forced liquidation of other assets to cover margin calls as long position investors were massively wrong-footed."
The U.S. dollar =USD on Thursday held onto its most of its gains overnight against a basket of currencies. FRX/
The sterling GBP=D3 rose 0.2% against the greenback, after tumbling 1.6% in the previous session.
U.S. Treasury yields were lower on Thursday.
The yield on benchmark 10-year notes US10YT=RR eased 6 basis points to 4.0866% while the yield on two-year notes US2YT=RR edged 5 basis points lower to 4.5732%.
In commodities, oil prices continued to retreat on Thursday, after tumbling about 3% in the previous session on fears of demand from China and rising U.S. crude stocks. O/R
U.S. crude oil futures CLc1 eased 0.3% to $85.59 per barrel, while Brent crude futures LCOc1 fell by a similar margin to $92.37.
Gold was little changed, with the spot price XAU= at $1705.92 per ounce.
Asia stock marketshttps://tmsnrt.rs/2zpUAr4
Asia-Pacific valuationshttps://tmsnrt.rs/2Dr2BQA
(Reporting by Stella Qiu; Editing by Bradley Perrett)
((yifan.qiu@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 supplier Foxconn 2317.TW plans to update its fourth-quarter outlook on Thursday, after strict COVID curbs remained in place at its major plant in China despite the lifting of a lockdown. With no final results available from the U.S. mid-term elections, investors were turning to the upcoming inflation data later in the day, which are likely to show a decline in both the monthly and yearly core numbers for October to 0.5% and 6.5%, respectively, according to a Reuters poll. The futures market currently shows investors believe the target U.S. federal funds rate will peak around 5.1% by next June, and the chances of a rise of 50 or 75 basis points are tilted in favour of a half-point increase next month.
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Apple Inc AAPL.O supplier Foxconn 2317.TW plans to update its fourth-quarter outlook on Thursday, after strict COVID curbs remained in place at its major plant in China despite the lifting of a lockdown. By Stella Qiu SYDNEY, Nov 10 (Reuters) - Asian share markets were tense on Thursday and the dollar held on to its overnight gains before the big test of a U.S. consumer inflation report, while market sentiment took a dive as the likely collapse of a major crypto exchange spooked investors. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS dropped 0.6% in early trade, dragged lower by outsized declines in China's bluechips .CSI300 and Hong Kong's Hang Seng index .HSI.
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Apple Inc AAPL.O supplier Foxconn 2317.TW plans to update its fourth-quarter outlook on Thursday, after strict COVID curbs remained in place at its major plant in China despite the lifting of a lockdown. By Stella Qiu SYDNEY, Nov 10 (Reuters) - Asian share markets were tense on Thursday and the dollar held on to its overnight gains before the big test of a U.S. consumer inflation report, while market sentiment took a dive as the likely collapse of a major crypto exchange spooked investors. FEDWATCH In the crypto world, bitcoin BTC=BTSP clawed back some ground in early trade on Thursday, after tumbling for two straight sessions to its lowest level since late 2020.
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Apple Inc AAPL.O supplier Foxconn 2317.TW plans to update its fourth-quarter outlook on Thursday, after strict COVID curbs remained in place at its major plant in China despite the lifting of a lockdown. The futures market currently shows investors believe the target U.S. federal funds rate will peak around 5.1% by next June, and the chances of a rise of 50 or 75 basis points are tilted in favour of a half-point increase next month. FEDWATCH In the crypto world, bitcoin BTC=BTSP clawed back some ground in early trade on Thursday, after tumbling for two straight sessions to its lowest level since late 2020.
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18491.0
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2022-11-09 00:00:00 UTC
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Apple supplier Foxconn to update on outlook after China COVID curbs
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AAPL
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https://www.nasdaq.com/articles/apple-supplier-foxconn-to-update-on-outlook-after-china-covid-curbs
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nan
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nan
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Major Foxconn iPhone factory in China hit by COVID-19 curbs
Foxconn downgraded Q4 outlook this week
Foxconn holding Q3earnings callThursday 0700GMT
Foxconn to give details on outlook downgrade onearnings call/p>
TAIPEI, Nov 10 (Reuters) - Apple Inc AAPL.O supplier and iPhone assembler Foxconn 2317.TW plans to update its fourth-quarter outlook on Thursday, having warned this week of the impact of COVID-19 restrictions at a major plant in China's Zhengzhou.
Foxconn's main Zhengzhou plant in central China, which employs about 200,000 people, has been rocked by discontent over stringent measures to curb the spread of COVID-19, with many workers fleeing the site.
The lockdown ended on Wednesday, though Foxconn said it was maintaining "closed loop" operations, referring to a bubble-like arrangement commonly imposed as part of virus prevention measures in China, where employees sleep, live and work isolated from the wider world.
Foxconn said on Monday it was working to resume full production there as soon as possible, and, having previously guided for "cautious optimism" in the fourth quarter, said it would "revise down" its outlook given events in Zhengzhou, though provided no details.
Foxconn will release its third-quarter earnings on Thursday at 0700 GMT, with analysts expecting on average a profit of T$41.3 billion, according to Refinitiv, an 11.7% year-on-year increase, benefiting from sustained demand for high-end consumer electronics and data centres.
The company said it will also provide an update on its view for the current quarter; though it does not provide a numerical outlook, only a broad forecast in terms of the general direction.
A source familiar with the matter said Foxconn aims to resume full production at its Zhengzhou plant by the second half of November.
Apple said on Monday it expects lower shipments of high-end iPhone 14 models than previously anticipated following a significant production cut at the virus-blighted plant in China, dampening its sales outlook for the year-end holiday season.
The fourth quarter is traditionally the hot season for Taiwan's tech companies as they race to supply cellphones, tablets and other electronics for the year-end holiday period in Western markets.
Shares in Foxconn, formally called Hon Hai Precision Industry Co Ltd, closed up 2.5% on Wednesday, outperforming the broader market's .TWII 2.2% rise.
The shares have fallen 1.4% so far this year.
(Reporting by Ben Blanchard; Editing by Sherry Jacob-Phillips)
((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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Major Foxconn iPhone factory in China hit by COVID-19 curbs Foxconn downgraded Q4 outlook this week Foxconn holding Q3earnings callThursday 0700GMT Foxconn to give details on outlook downgrade onearnings call/p> TAIPEI, Nov 10 (Reuters) - Apple Inc AAPL.O supplier and iPhone assembler Foxconn 2317.TW plans to update its fourth-quarter outlook on Thursday, having warned this week of the impact of COVID-19 restrictions at a major plant in China's Zhengzhou. The lockdown ended on Wednesday, though Foxconn said it was maintaining "closed loop" operations, referring to a bubble-like arrangement commonly imposed as part of virus prevention measures in China, where employees sleep, live and work isolated from the wider world. Foxconn will release its third-quarter earnings on Thursday at 0700 GMT, with analysts expecting on average a profit of T$41.3 billion, according to Refinitiv, an 11.7% year-on-year increase, benefiting from sustained demand for high-end consumer electronics and data centres.
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Major Foxconn iPhone factory in China hit by COVID-19 curbs Foxconn downgraded Q4 outlook this week Foxconn holding Q3earnings callThursday 0700GMT Foxconn to give details on outlook downgrade onearnings call/p> TAIPEI, Nov 10 (Reuters) - Apple Inc AAPL.O supplier and iPhone assembler Foxconn 2317.TW plans to update its fourth-quarter outlook on Thursday, having warned this week of the impact of COVID-19 restrictions at a major plant in China's Zhengzhou. Foxconn said on Monday it was working to resume full production there as soon as possible, and, having previously guided for "cautious optimism" in the fourth quarter, said it would "revise down" its outlook given events in Zhengzhou, though provided no details. A source familiar with the matter said Foxconn aims to resume full production at its Zhengzhou plant by the second half of November.
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Major Foxconn iPhone factory in China hit by COVID-19 curbs Foxconn downgraded Q4 outlook this week Foxconn holding Q3earnings callThursday 0700GMT Foxconn to give details on outlook downgrade onearnings call/p> TAIPEI, Nov 10 (Reuters) - Apple Inc AAPL.O supplier and iPhone assembler Foxconn 2317.TW plans to update its fourth-quarter outlook on Thursday, having warned this week of the impact of COVID-19 restrictions at a major plant in China's Zhengzhou. Foxconn said on Monday it was working to resume full production there as soon as possible, and, having previously guided for "cautious optimism" in the fourth quarter, said it would "revise down" its outlook given events in Zhengzhou, though provided no details. Apple said on Monday it expects lower shipments of high-end iPhone 14 models than previously anticipated following a significant production cut at the virus-blighted plant in China, dampening its sales outlook for the year-end holiday season.
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Major Foxconn iPhone factory in China hit by COVID-19 curbs Foxconn downgraded Q4 outlook this week Foxconn holding Q3earnings callThursday 0700GMT Foxconn to give details on outlook downgrade onearnings call/p> TAIPEI, Nov 10 (Reuters) - Apple Inc AAPL.O supplier and iPhone assembler Foxconn 2317.TW plans to update its fourth-quarter outlook on Thursday, having warned this week of the impact of COVID-19 restrictions at a major plant in China's Zhengzhou. Foxconn's main Zhengzhou plant in central China, which employs about 200,000 people, has been rocked by discontent over stringent measures to curb the spread of COVID-19, with many workers fleeing the site. Foxconn said on Monday it was working to resume full production there as soon as possible, and, having previously guided for "cautious optimism" in the fourth quarter, said it would "revise down" its outlook given events in Zhengzhou, though provided no details.
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18492.0
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2022-11-09 00:00:00 UTC
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After Hours Most Active for Nov 9, 2022 : F, EW, FALN, BCE, AAPL, QQQ, BBD, U, INTC, MSFT, AMZN, PFE
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-nov-9-2022-%3A-f-ew-faln-bce-aapl-qqq-bbd-u-intc-msft-amzn-pfe
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nan
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The NASDAQ 100 After Hours Indicator is up 6.55 to 10,804.1. The total After hours volume is currently 85,459,929 shares traded.
The following are the most active stocks for the after hours session:
Ford Motor Company (F) is -0.01 at $13.30, with 7,666,052 shares traded. F's current last sale is 88.67% of the target price of $15.
Edwards Lifesciences Corporation (EW) is unchanged at $69.99, with 3,892,741 shares traded. As reported by Zacks, the current mean recommendation for EW is in the "buy range".
iShares Fallen Angels USD Bond ETF (FALN) is +0.1216 at $23.89, with 3,873,475 shares traded. This represents a 2.06% increase from its 52 Week Low.
BCE, Inc. (BCE) is unchanged at $45.30, with 3,005,475 shares traded. BCE's current last sale is 86.91% of the target price of $52.12.
Apple Inc. (AAPL) is +0.0599 at $134.93, with 2,953,873 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 $1.51. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +0.23 at $263.55, with 2,936,343 shares traded. This represents a 3.65% increase from its 52 Week Low.
Banco Bradesco Sa (BBD) is +0.01 at $2.95, with 2,872,089 shares traded.BBD is scheduled to provide an earnings report on 11/10/2022, for the fiscal quarter ending Sep2022. The consensus earnings per share forecast is 0.12 per share, which represents a 11 percent increase over the EPS one Year Ago
Unity Software Inc. (U) is -2.04 at $19.46, with 2,798,617 shares traded., following a 52-week high recorded in today's regular session.
Intel Corporation (INTC) is -0.0199 at $27.50, with 2,232,526 shares traded. INTC's current last sale is 91.67% of the target price of $30.
Microsoft Corporation (MSFT) is +0.31 at $224.82, with 2,094,394 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Amazon.com, Inc. (AMZN) is +0.0406 at $86.18, with 1,762,231 shares traded., following a 52-week high recorded in today's regular session.
Pfizer, Inc. (PFE) is unchanged at $46.72, with 1,514,007 shares traded. As reported by Zacks, the current mean recommendation for PFE is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is +0.0599 at $134.93, with 2,953,873 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". iShares Fallen Angels USD Bond ETF (FALN) is +0.1216 at $23.89, with 3,873,475 shares traded.
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Apple Inc. (AAPL) is +0.0599 at $134.93, with 2,953,873 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The consensus earnings per share forecast is 0.12 per share, which represents a 11 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is +0.0599 at $134.93, with 2,953,873 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 85,459,929 shares traded.
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Apple Inc. (AAPL) is +0.0599 at $134.93, with 2,953,873 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The following are the most active stocks for the after hours session:
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18493.0
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2022-11-09 00:00:00 UTC
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Lawsuit claims Apple, Amazon colluded to raise iPhone, iPad prices
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AAPL
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https://www.nasdaq.com/articles/lawsuit-claims-apple-amazon-colluded-to-raise-iphone-ipad-prices
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nan
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nan
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By Jonathan Stempel
Nov 9 (Reuters) - Apple Inc AAPL.O and Amazon.com Inc AMZN.O were accused in an antitrust lawsuit on Wednesday of conspiring to drive up iPhone and iPad prices by removing nearly all other resellers of new Apple products from Amazon's website.
The proposed class action in Seattle federal court objected to an agreement that took effect in January 2019, under which Apple gave Amazon discounts of up to 10% on its products, in exchange for Amazon letting just seven of 600 resellers stay on its platform.
This transformed Amazon into the dominant reseller of new iPhones and iPads on its website, according to the complaint, after it had previously carried a limited number of Apple products as well as knockoffs.
Prices rose more than 10%, while Apple stabilized the prices it charged in retail stores, the complaint said. Discounts of 20% or more that were once common no longer are, it added.
"Erecting barriers to entry to keep competitors out and raising prices in the wake of their elimination is precisely the kind of conduct that Congress enacted antitrust laws to prevent," the complaint said. "The case is open and shut."
Apple and Amazon did not immediately respond to requests for comment. The combined product revenue of Cupertino, California-based Apple and Seattle-based Amazon topped $125 billion in this year's third quarter.
Wednesday's lawsuit covers U.S. residents who bought new iPhones and iPads on Amazon since January 2019.
It seeks unspecified triple damages, restitution, and an end to the companies' alleged so-called "group boycott."
The named plaintiff, Steven Floyd of Williamsport, Pennsylvania, said he paid $319.99 for a new iPad he bought from Amazon on the company's website, and was denied a chance to pay less because competition had been stifled.
Last month, an Italian administrative court scrapped a 173.3 million euro ($173.6 million) fine against Apple and Amazon by Italy's antitrust regulator for alleged price collusion.
The case is Floyd v Amazon.com Inc et al, U.S. District Court, Western District of Washington, No. 22-01599.
(1 euro = US$1.002)
(Reporting by Jonathan Stempel in New York; Additional reporting by Jeffrey Dastin in San Francisco; Editing by Bill Berkrot)
((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 Nov 9 (Reuters) - Apple Inc AAPL.O and Amazon.com Inc AMZN.O were accused in an antitrust lawsuit on Wednesday of conspiring to drive up iPhone and iPad prices by removing nearly all other resellers of new Apple products from Amazon's website. This transformed Amazon into the dominant reseller of new iPhones and iPads on its website, according to the complaint, after it had previously carried a limited number of Apple products as well as knockoffs. "Erecting barriers to entry to keep competitors out and raising prices in the wake of their elimination is precisely the kind of conduct that Congress enacted antitrust laws to prevent," the complaint said.
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By Jonathan Stempel Nov 9 (Reuters) - Apple Inc AAPL.O and Amazon.com Inc AMZN.O were accused in an antitrust lawsuit on Wednesday of conspiring to drive up iPhone and iPad prices by removing nearly all other resellers of new Apple products from Amazon's website. Wednesday's lawsuit covers U.S. residents who bought new iPhones and iPads on Amazon since January 2019. Last month, an Italian administrative court scrapped a 173.3 million euro ($173.6 million) fine against Apple and Amazon by Italy's antitrust regulator for alleged price collusion.
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By Jonathan Stempel Nov 9 (Reuters) - Apple Inc AAPL.O and Amazon.com Inc AMZN.O were accused in an antitrust lawsuit on Wednesday of conspiring to drive up iPhone and iPad prices by removing nearly all other resellers of new Apple products from Amazon's website. The proposed class action in Seattle federal court objected to an agreement that took effect in January 2019, under which Apple gave Amazon discounts of up to 10% on its products, in exchange for Amazon letting just seven of 600 resellers stay on its platform. Last month, an Italian administrative court scrapped a 173.3 million euro ($173.6 million) fine against Apple and Amazon by Italy's antitrust regulator for alleged price collusion.
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By Jonathan Stempel Nov 9 (Reuters) - Apple Inc AAPL.O and Amazon.com Inc AMZN.O were accused in an antitrust lawsuit on Wednesday of conspiring to drive up iPhone and iPad prices by removing nearly all other resellers of new Apple products from Amazon's website. The proposed class action in Seattle federal court objected to an agreement that took effect in January 2019, under which Apple gave Amazon discounts of up to 10% on its products, in exchange for Amazon letting just seven of 600 resellers stay on its platform. Wednesday's lawsuit covers U.S. residents who bought new iPhones and iPads on Amazon since January 2019.
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18494.0
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2022-11-09 00:00:00 UTC
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Tesla stock hits 2-year low after Musk sells $4 bln worth of shares
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AAPL
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https://www.nasdaq.com/articles/tesla-stock-hits-2-year-low-after-musk-sells-%244-bln-worth-of-shares
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nan
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nan
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By Hyunjoo Jin
SAN FRANCISCO, Nov 9 (Reuters) - Tesla Inc TSLA.O shares slid to their lowest level in nearly two years on Wednesday after Chief Executive Elon Musk sold $3.95 billion worth of shares in the electric-vehicle maker.
The shares were down 6.1% at $179.66 in afternoon trading.
Musk's latest share sale fueled jitters about the fallout of his Twitter buy on the world's most valuable automaker, analysts said.
The billionaire's recent acquisition of Twitter sparked investor concerns including whether he would be distracted from running Tesla or divert resources to the social media company. Some investors also feared the possible impact on Tesla's sales and brand as well as potential pressure on Tesla from countries trying to control online speech.
The latest sale brings the total amount of Tesla stock sold by Musk since last November to about $36 billion - despite his having said earlier that he would sell no more of his shares.
"Turns out Elon was not done selling his $TSLA stock," Gene Munster of investment firm Loup Ventures said in a Tweet.
"Given his bullish comments recently about Tesla's potential valuation, the news won’t sit well with some investors," he said.
Musk said on a conference call last month that he expects Tesla to be worth more than Apple Inc AAPL.O and Saudi Aramco 2222.SE combined, while downplaying investor concerns about softer demand after the electric vehicle maker's revenue missed Wall Street estimates.
Tesla shares have fallen more than 50% since touching a record high on Nov. 4 of last year. Four days after that, Musk started unloading his shares.
With the latest sale of his Tesla stock, Musk "yet again loses more credibility with investors and his loyalists in a boy who cried wolf moment," Wedbush Securities analyst Dan Ives said.
Musk, said Ives, needs to end "Twitter overhang on the Tesla story with his focus back on the golden child Tesla which needs his time more than ever given the soft macro, production/delivery issues in China, and EV competition increasing from all corners of the globe."
Musk unloaded 19.5 million shares between Friday and Tuesday, according to filings published by the U.S. Securities and Exchange Commission late on Tuesday.
Analysts had expected Musk to sell more Tesla shares to finance the $44 billion Twitter deal, but it was not clear whether the sales were related to the Twitter acquisition.
Musk last month closed the deal with $13 billion in loans from banks and a $33.5 billion equity commitment, which included $7.1 billion from investors including Oracle Corp ORCL.N co-founder Larry Ellison and Saudi Prince Alwaleed bin Talal. It is not clear whether all of the equity investors lived up to their equity commitment.
Tesla did not respond to a request for comment on the purpose of the share sale.
Musk said that Twitter has suffered a "massive" revenue drop since he took over, underscoring the precarious nature of the social media company's finances after he saddled it with $13 billion in debt, credit experts say.
Twitter faces interest payments totaling close to $1.2 billion in the next 12 months on the debt that Musk piled on it.
(Reporting by Hyunjoo Jin in San Francisco Editing by Chris Reese and Matthew Lewis)
((hyunjoo.jin@thomsonreuters.com; 82-2-3704-5685; Reuters Messaging: hyunjoo.jin.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Musk said on a conference call last month that he expects Tesla to be worth more than Apple Inc AAPL.O and Saudi Aramco 2222.SE combined, while downplaying investor concerns about softer demand after the electric vehicle maker's revenue missed Wall Street estimates. With the latest sale of his Tesla stock, Musk "yet again loses more credibility with investors and his loyalists in a boy who cried wolf moment," Wedbush Securities analyst Dan Ives said. Musk said that Twitter has suffered a "massive" revenue drop since he took over, underscoring the precarious nature of the social media company's finances after he saddled it with $13 billion in debt, credit experts say.
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Musk said on a conference call last month that he expects Tesla to be worth more than Apple Inc AAPL.O and Saudi Aramco 2222.SE combined, while downplaying investor concerns about softer demand after the electric vehicle maker's revenue missed Wall Street estimates. By Hyunjoo Jin SAN FRANCISCO, Nov 9 (Reuters) - Tesla Inc TSLA.O shares slid to their lowest level in nearly two years on Wednesday after Chief Executive Elon Musk sold $3.95 billion worth of shares in the electric-vehicle maker. Analysts had expected Musk to sell more Tesla shares to finance the $44 billion Twitter deal, but it was not clear whether the sales were related to the Twitter acquisition.
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Musk said on a conference call last month that he expects Tesla to be worth more than Apple Inc AAPL.O and Saudi Aramco 2222.SE combined, while downplaying investor concerns about softer demand after the electric vehicle maker's revenue missed Wall Street estimates. By Hyunjoo Jin SAN FRANCISCO, Nov 9 (Reuters) - Tesla Inc TSLA.O shares slid to their lowest level in nearly two years on Wednesday after Chief Executive Elon Musk sold $3.95 billion worth of shares in the electric-vehicle maker. The latest sale brings the total amount of Tesla stock sold by Musk since last November to about $36 billion - despite his having said earlier that he would sell no more of his shares.
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Musk said on a conference call last month that he expects Tesla to be worth more than Apple Inc AAPL.O and Saudi Aramco 2222.SE combined, while downplaying investor concerns about softer demand after the electric vehicle maker's revenue missed Wall Street estimates. The latest sale brings the total amount of Tesla stock sold by Musk since last November to about $36 billion - despite his having said earlier that he would sell no more of his shares. "Given his bullish comments recently about Tesla's potential valuation, the news won’t sit well with some investors," he said.
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18495.0
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2022-11-09 00:00:00 UTC
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Apple To Begin Production Of AR Headset In March Next Year
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AAPL
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https://www.nasdaq.com/articles/apple-to-begin-production-of-ar-headset-in-march-next-year
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nan
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nan
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(RTTNews) - Tech giant Apple Inc. (AAPL) is reportedly planning to start production of its AR (augmented reality)-MR (mixed reality) headsets from March next year.
This device, codename N301, will be exclusively assembled by Pegatron, according to DigiTimes.
According to MacRumors, initial production is said to be very limited, with a high price point limiting Apple's first headset mainly to commercial markets. Previous estimates said that the annual shipment for this device would reach 2.5 million units. However, the estimates have been downgraded to around 0.7 to 0.8 million units.
Although the initial production will be low that will affect profitability, Apple's manufacturing partners are willing to work with on the project to be well positioned for future AR/VR products.
Apple has been working on augmented reality, virtual reality, and mixed reality headsets for a number of years, but hasn't revealed much about its project. However, the company has recently trademarked "RealityOS," "Reality Processor," and "Reality One" names which are expected related to its AR headset project.
The views and 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) - Tech giant Apple Inc. (AAPL) is reportedly planning to start production of its AR (augmented reality)-MR (mixed reality) headsets from March next year. This device, codename N301, will be exclusively assembled by Pegatron, according to DigiTimes. Previous estimates said that the annual shipment for this device would reach 2.5 million units.
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(RTTNews) - Tech giant Apple Inc. (AAPL) is reportedly planning to start production of its AR (augmented reality)-MR (mixed reality) headsets from March next year. Apple has been working on augmented reality, virtual reality, and mixed reality headsets for a number of years, but hasn't revealed much about its project. However, the company has recently trademarked "RealityOS," "Reality Processor," and "Reality One" names which are expected related to its AR headset project.
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(RTTNews) - Tech giant Apple Inc. (AAPL) is reportedly planning to start production of its AR (augmented reality)-MR (mixed reality) headsets from March next year. Previous estimates said that the annual shipment for this device would reach 2.5 million units. Apple has been working on augmented reality, virtual reality, and mixed reality headsets for a number of years, but hasn't revealed much about its project.
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(RTTNews) - Tech giant Apple Inc. (AAPL) is reportedly planning to start production of its AR (augmented reality)-MR (mixed reality) headsets from March next year. This device, codename N301, will be exclusively assembled by Pegatron, according to DigiTimes. Although the initial production will be low that will affect profitability, Apple's manufacturing partners are willing to work with on the project to be well positioned for future AR/VR products.
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18496.0
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2022-11-09 00:00:00 UTC
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Bet on These Equity ETFs to Follow Warren Buffett
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AAPL
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https://www.nasdaq.com/articles/bet-on-these-equity-etfs-to-follow-warren-buffett
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nan
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nan
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Billionaire investor Warren Buffett has turned a winner this year despite wild stock market gyrations. The world’s richest people including Elon Musk, Mark Zuckerberg and Jeff Bezos have seen their net worth nosediving in 2022 — except for Warren Buffett.
Per a Motley Fool article, due to an acquisition in 1998 of reinsurance company General Re, Buffett's company owns a specialty investment firm known as New England Asset Management (NEAM). Although Buffett isn't directly involved in NEAM's investment portfolio, the securities NEAM buys are, eventually, owned by Buffett's company.
Interestingly, majority of NEAM’s portfolio is concentrated on five stocks as of June-end, namely Apple (AAPL), U.S. Bancorp (USB), Bank of America (BAC), HP Inc. (HPQ) and Chevron Corporation (CVX), per the Motley Fool.
Against this backdrop, below we highlight a few ETF strategies that could be followed if you are a fan of Warren Buffet.
Apple: 47.24% of Invested Assets
Apple AAPL is a key holding of Berkshire’s portfolio, making up more than 45% of Berkshire’s portfolio by market value. The Oracle of Omaha investor now owns over 5% of outstanding the Apple stock.
There is a set of consumers who always choose to buy Apple products irrespective of inflationary pressure. In 2017, Buffett indicated that the Apple stock is a buy candidate as consumers ‘want the product’ despite its prices.
This gives Apple the leeway to pass on the rising costs to consumers (which won’t hurt sales) due to sheer brand name. And Apple is now paying off to Buffett.
Despite massive tech crash due to big tech earnings woes and rising rates, Apple has lost the least (down 6.4%) past month among famous FAAMG group. Facebook or Meta lost 9.7% past month, Alphabet (GOOG) is off 14.5%, Microsoft has shed about 9.4% and Amazon retreated 24.7% past month.
Plus, Information Technology business normally does not require recurrent capital investments, which makes it an inflation-friendly investment. Hence, one can bet on Apple ETFs like Technology Select Sector SPDR Fund XLK, Fidelity MSCI Information Technology Index ETF FTEC and Vanguard Information Technology ETF (VGT).
U.S. Bancorp: 13.76% of Invested Assets
Warren Buffett is a big fan of bank stock. Regional bank U.S. Bancorp USB make up about 13.8% of invested assets at the end of June and has been a continuous holding in NEAM's portfolio for more than two decades. USB is up 4.6% past month.
The company has a decent earnings surprise history. The company’s strong loan and deposit balances are positives. U.S. Bancorp’s decent liquidity position is likely to support capital-deployment plans. USB has about 11% exposure to iShares U.S. Regional Banks ETF IAT and 7.7% focus on Invesco KBW Bank ETF KBWB.
Bank of America: 11.96% of Invested Assets
Yet another big holding of NEAM is Bank of America BAC, which Berkshire Hathaway also bets big on. Bank of America's third-quarter 2022 results were primarily aided by higher rates and loan growth. The opening of new financial centers, enhancement in digital capabilities and cost-saving efforts are expected to keep aiding the company’s financials. Bank of America has 8.92% exposure Invesco KBW Bank ETF (KBWB) and 7.36% focus on iShares U.S. Financial Services ETF IYG.
HP: 9.12% of Invested Assets
Like Buffett, New England Asset Management's investment team is also charmed by with HP's HPQ capital return program. The company increased its base annual payout by 29% in 2021, and has been aggressively repurchasing its common stock. HP has 10.97% exposure to Invesco S&P SmallCap Energy ETF PSCE.
Chevron: 5.26% of Invested Assets
The energy supermajor is considered one of the best placed integrated oil firms to achieve sustainable production growth, thanks to its premier position in the lucrative Permian Basin. Chevron’s CVX Noble Energy takeover expanded its footprint in the region and the DJ Basin along with the addition of cash generating offshore assets in Israel. In shareholder friendly moves, the integrated major recently hiked its dividend and boosted the stock repurchase program. Considering all of these factors, Wall Street expects the company’s EPS to grow 132.8% this year.
Chevron has 19.48% exposure to Energy Select Sector SPDR Fund XLE and 16.75% focus on iShares U.S. Energy ETF IYE.
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
Energy Select Sector SPDR ETF (XLE): ETF Research Reports
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
iShares U.S. Energy ETF (IYE): ETF Research Reports
Invesco S&P SmallCap Energy ETF (PSCE): ETF Research Reports
Invesco KBW Bank ETF (KBWB): ETF Research Reports
iShares U.S. Financial Services ETF (IYG): ETF Research Reports
Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports
iShares U.S. Regional Banks ETF (IAT): 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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Interestingly, majority of NEAM’s portfolio is concentrated on five stocks as of June-end, namely Apple (AAPL), U.S. Bancorp (USB), Bank of America (BAC), HP Inc. (HPQ) and Chevron Corporation (CVX), per the Motley Fool. Apple: 47.24% of Invested Assets Apple AAPL is a key holding of Berkshire’s portfolio, making up more than 45% of Berkshire’s portfolio by market value. Apple Inc. (AAPL): Free Stock Analysis Report
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Interestingly, majority of NEAM’s portfolio is concentrated on five stocks as of June-end, namely Apple (AAPL), U.S. Bancorp (USB), Bank of America (BAC), HP Inc. (HPQ) and Chevron Corporation (CVX), per the Motley Fool. Apple: 47.24% of Invested Assets Apple AAPL is a key holding of Berkshire’s portfolio, making up more than 45% of Berkshire’s portfolio by market value. Apple Inc. (AAPL): Free Stock Analysis Report
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Interestingly, majority of NEAM’s portfolio is concentrated on five stocks as of June-end, namely Apple (AAPL), U.S. Bancorp (USB), Bank of America (BAC), HP Inc. (HPQ) and Chevron Corporation (CVX), per the Motley Fool. Apple: 47.24% of Invested Assets Apple AAPL is a key holding of Berkshire’s portfolio, making up more than 45% of Berkshire’s portfolio by market value. Apple Inc. (AAPL): Free Stock Analysis Report
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Interestingly, majority of NEAM’s portfolio is concentrated on five stocks as of June-end, namely Apple (AAPL), U.S. Bancorp (USB), Bank of America (BAC), HP Inc. (HPQ) and Chevron Corporation (CVX), per the Motley Fool. Apple: 47.24% of Invested Assets Apple AAPL is a key holding of Berkshire’s portfolio, making up more than 45% of Berkshire’s portfolio by market value. Apple Inc. (AAPL): Free Stock Analysis Report
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18497.0
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2022-11-09 00:00:00 UTC
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Disney (DIS) Q4 Earnings Miss Estimates, Revenues Rise Y/Y
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AAPL
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https://www.nasdaq.com/articles/disney-dis-q4-earnings-miss-estimates-revenues-rise-y-y-0
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nan
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nan
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The Walt Disney Company DIS reported fourth-quarter fiscal 2022 adjusted earnings of 30 cents per share, missing the Zacks Consensus Estimate by 40% and declining 18.9% year over year.
Revenues increased 8.7% year over year to $20.15 billion but lagged the consensus mark by 4.50%.
Segment Details
Media and Entertainment Distribution (63.2% of revenues) revenues decreased 2.7% year over year to $12.73 billion.
Revenues from Linear Networks declined 5.4% year over year to $6.34 billion.
The Walt Disney Company Price, Consensus and EPS Surprise
The Walt Disney Company price-consensus-eps-surprise-chart | The Walt Disney Company Quote
Direct-to-Consumer revenues increased 7.6% year over year to $4.91 billion.
Content Sales/Licensing and Other revenues declined 15.2% year over year to $1.74 billion.
Parks, Experiences and Products revenues (36.8% of revenues) increased 36.2% year over year to $7.43 billion. Domestic revenues were $5.01 billion, up 44.3% in the year-ago quarter. International revenues jumped 55% year over year to $1.07 billion in the reported quarter.
Disney’s nearest peer, Comcast CMCSA, reported strong third-quarter 2022 results in its Theme Park business.
Comcast’s Theme Parks revenues jumped 42.4% year over year to $2.1 billion, reflecting higher attendance and increases in guest spending at its parks in the United States and Japan, as well as the Universal Beijing Resort.
Meanwhile, revenues from Disney’s Consumer Products increased 4.4% year over year to $1.34 billion.
Subscriber Details: Disney+
ESPN+ had 22.8 million paid subscribers at the end of the fiscal fourth quarter compared with 14.9 million at the end of the year-ago quarter.
Disney+, as of Oct 1, 2022, had 164.2 million paid subscribers compared with 118.1 million as of Oct 2, 2021.
The rapidly growing subscriber base strengthens Disney’s position in the increasingly saturated streaming space currently dominated by Netflix NFLX and the growing prominence of services from Apple AAPL, Peacock, Amazon prime video and HBO Max.
Netflix added 2.41 million paid subscribers globally in third-quarter 2022, higher than its estimate of gaining one million users.
Apple’s streaming service, Apple TV+, continues to gain recognition with its critically acclaimed and popular shows like Ted Lasso.
Meanwhile, Disney’s Hulu ended the quarter with 47.2 million paid subscribers, up from 43.8 million reported in the year-ago quarter.
The average monthly revenue per paid subscriber for ESPN+ increased 2% year over year to $4.84.
The average monthly revenue per paid subscriber for Disney+ was $3.91, down 5% year over year.
The average monthly revenue per paid subscriber for Disney’s Hulu SVOD-only service declined 4% year over year to $12.23.
The average monthly revenue per paid subscriber for Disney’s Hulu Live TV + SVOD service rose 2% from the year-ago quarter to $86.77.
Operating Details
Costs & expenses increased 9.3% year over year to $19.61 billion in the reported quarter.
Segmental operating income was $1.60 billion, which inched up 0.6% year over year.
Media and Entertainment Distribution’s segmental operating income declined 91.2% year over year to $83 million.
Linear Networks’ operating income increased 5.7% to $1.74 billion.
Direct-to-Consumer operating loss was $1.47 billion, wider than the year-ago quarter’s loss of $630 million.
Content Sales/Licensing and Other operating losses were $178 million compared with an operating loss of $65 million reported in the year-ago quarter.
Parks, Experiences and Products’ operating income was $1.51 billion compared with the year-ago quarter’s operating income of $640 million.
The Domestic segment reported an operating income of $741 million compared with the $244 million reported in the year-ago quarter.
The International segment reported an operating income of $74 million against an operating loss of $222 million reported in the year-ago quarter.
Consumer Products’ operating profit increased 13.1% year over year to $699 million.
Balance Sheet
As of Oct 1, 2022, cash and cash equivalents were $11.62 billion compared with $12.96 billion as of Jul 2, 2022.
Total borrowings were $48.37 billion as of Oct 1, 2022 compared with $46.6 billion as of Jul 2, 2022.
Free cash flow was $1.38 billion in the reported quarter compared with free cash flow of $1.92 billion in the previous quarter
Outlook
For the first quarter of fiscal 2023, Disney expects direct-to-consumer operating results to improve by at least $200 million sequentially.
Disney expects ESPN+ and Hulu to continue adding new subscribers in the current quarter. The company expects core Disney+ subscribers to increase only slightly in the quarter, reflecting tougher comparisons sequentially. Disney+ core subscriber growth is expected to increase in the fiscal second quarter, largely driven by international markets.
For fiscal 2023, Disney expects capital expenditures to be $6.7 billion compared with fiscal 2022 capital expenditure of $5 billion.
This Zacks Rank #3 (Hold) company expects cash content spending to be in the low $30 billion. 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
Comcast Corporation (CMCSA): Free Stock Analysis Report
Netflix, Inc. (NFLX): Free Stock Analysis Report
The Walt Disney Company (DIS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The rapidly growing subscriber base strengthens Disney’s position in the increasingly saturated streaming space currently dominated by Netflix NFLX and the growing prominence of services from Apple AAPL, Peacock, Amazon prime video and HBO Max. Apple Inc. (AAPL): Free Stock Analysis Report Disney’s nearest peer, Comcast CMCSA, reported strong third-quarter 2022 results in its Theme Park business.
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The rapidly growing subscriber base strengthens Disney’s position in the increasingly saturated streaming space currently dominated by Netflix NFLX and the growing prominence of services from Apple AAPL, Peacock, Amazon prime video and HBO Max. Apple Inc. (AAPL): Free Stock Analysis Report The Walt Disney Company DIS reported fourth-quarter fiscal 2022 adjusted earnings of 30 cents per share, missing the Zacks Consensus Estimate by 40% and declining 18.9% year over year.
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The rapidly growing subscriber base strengthens Disney’s position in the increasingly saturated streaming space currently dominated by Netflix NFLX and the growing prominence of services from Apple AAPL, Peacock, Amazon prime video and HBO Max. Apple Inc. (AAPL): Free Stock Analysis Report The Walt Disney Company Price, Consensus and EPS Surprise The Walt Disney Company price-consensus-eps-surprise-chart | The Walt Disney Company Quote Direct-to-Consumer revenues increased 7.6% year over year to $4.91 billion.
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The rapidly growing subscriber base strengthens Disney’s position in the increasingly saturated streaming space currently dominated by Netflix NFLX and the growing prominence of services from Apple AAPL, Peacock, Amazon prime video and HBO Max. Apple Inc. (AAPL): Free Stock Analysis Report International revenues jumped 55% year over year to $1.07 billion in the reported quarter.
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18498.0
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2022-11-09 00:00:00 UTC
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If I Could Only Buy 1 Stock, This Would Be It
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AAPL
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https://www.nasdaq.com/articles/if-i-could-only-buy-1-stock-this-would-be-it-4
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nan
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nan
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Technology stocks have suffered steep declines in 2022, as rising inflation has slowed consumer spending. However, Apple (NASDAQ: AAPL) has staved off the worst market declines, with its shares down 18% since January compared to the Nasdaq-100 Technology Sector index's plunge of 40% in the same period.
Apple's innovative business of top-rated products and services has made it a haven for investors this year. The company's unique ability to reinvent existing technology and boost it into mainstream use has had an undeniable effect on consumer technology, and will likely continue doing so for years to come.
Here's why Apple would be my first choice if I could only buy one stock.
Standing strong despite market declines
Decreased consumer spending in 2022 has led to the decline of multiple markets. According to IDC, worldwide PC shipments decreased by 15% year-over-year in the third quarter of 2022.Meanwhile, the smartphone market similarly saw a 9.7% decline in the same period.
However, Apple has continued seeing growth in its segments despite market headwinds. In its Q4 2022 results released on Oct. 28, the company's Macbook business reported a 25% increase from the previous year, earning $11.51 billion.
The significant rise highlights consumer preference for Apple's computer offerings, while competitor Microsoft saw a slight decline in its "More Personal Computing" segment, which includes sales from its Surface computer lineup, in its most recent quarter.
Moreover, despite declines in the smartphone market, Apple's iPhone revenue saw a 9.6% bump in Q4 2022, bringing in $42.63 billion.The company has managed to continue growing its earnings while the competition suffers the brunt of the market's downward trend.
In fact, Apple was the only company out of its biggest competitors in Q3 2022 to see year-over-year growth, with its iPhone business rising 1.6%, while competitors such as Samsung, Xiaomi, and OPPO saw declines between 7.8% to 22.3%.
Apple's ability to thrive in poor market conditions makes it an immensely reliable stock and an excellent long-term investment.
A bright future
Apple has made a name for itself, not by always being the first to produce technology but by innovatively redesigning existing tech in a way that catapults it into mainstream use. The company has done this repeatedly, most notably with the smartphone, which quickly became a necessity after the release of the iPhone. Apple did the same with its take on the tablet when it launched the first iPad, the smartwatch with its Apple Watch, and Bluetooth headphones with the immense success of its AirPods.
The company's ability to drive up usability with its custom-designed products leaves plenty of room to continue growing. Rumors of Apple's plans to release an augmented and/or virtual reality device, an electric vehicle, and a folding iPhone mean the company is in a constant state of development and is always on the cusp of taking over a new market.
Additionally, in a more immediate and concrete future, the tech giant still has yet to complete its Intel-to-Apple Silicon transition within its Mac lineup. After exclusively using Intel processors in its computers since 2006, Apple started moving over to its in-house designed Apple Silicon chips in 2020. The company first announced it would move its entire line of PCs to its own custom chips in 2020, beginning with the launch of its M1 MacBook Air, Pro, and Mac Mini.
Apple has slowly replaced each Intel Mac with its own Apple Silicon version over the last few years, introducing an M1 iMac, an M2 MacBook Air and Pro, and a Mac Studio. However, it isn't quite done yet. Numerous reports state Apple has plans to release an Apple Silicon Mac Pro in the first quarter of 2023, while many consumers are still hoping to see a larger and more powerful iMac and a beefier Mac Mini.
Since beginning the transition to Apple Silicon in June 2020, the company's Mac revenue has jumped 115% from $5.35 billion in Q2 2020 to $11.51 billion in Q4 2022. With the additional Macs still waiting to be moved over to the new processors, revenue will likely continue growing.
Suffice it to say, Apple still has decades of innovation left up its sleeve, with no signs of slowing down. The company's unwavering growth and potent line of products are why I would unquestionably buy Apple stock if I could only choose one company to invest in.
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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Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Intel, and Microsoft. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2023 $57.50 puts on Intel, 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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However, Apple (NASDAQ: AAPL) has staved off the worst market declines, with its shares down 18% since January compared to the Nasdaq-100 Technology Sector index's plunge of 40% in the same period. Rumors of Apple's plans to release an augmented and/or virtual reality device, an electric vehicle, and a folding iPhone mean the company is in a constant state of development and is always on the cusp of taking over a new market. The company first announced it would move its entire line of PCs to its own custom chips in 2020, beginning with the launch of its M1 MacBook Air, Pro, and Mac Mini.
|
However, Apple (NASDAQ: AAPL) has staved off the worst market declines, with its shares down 18% since January compared to the Nasdaq-100 Technology Sector index's plunge of 40% in the same period. Standing strong despite market declines Decreased consumer spending in 2022 has led to the decline of multiple markets. Numerous reports state Apple has plans to release an Apple Silicon Mac Pro in the first quarter of 2023, while many consumers are still hoping to see a larger and more powerful iMac and a beefier Mac Mini.
|
However, Apple (NASDAQ: AAPL) has staved off the worst market declines, with its shares down 18% since January compared to the Nasdaq-100 Technology Sector index's plunge of 40% in the same period. Apple has slowly replaced each Intel Mac with its own Apple Silicon version over the last few years, introducing an M1 iMac, an M2 MacBook Air and Pro, and a Mac Studio. Numerous reports state Apple has plans to release an Apple Silicon Mac Pro in the first quarter of 2023, while many consumers are still hoping to see a larger and more powerful iMac and a beefier Mac Mini.
|
However, Apple (NASDAQ: AAPL) has staved off the worst market declines, with its shares down 18% since January compared to the Nasdaq-100 Technology Sector index's plunge of 40% in the same period. Technology stocks have suffered steep declines in 2022, as rising inflation has slowed consumer spending. Moreover, despite declines in the smartphone market, Apple's iPhone revenue saw a 9.6% bump in Q4 2022, bringing in $42.63 billion.The company has managed to continue growing its earnings while the competition suffers the brunt of the market's downward trend.
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18499.0
|
2022-11-09 00:00:00 UTC
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Should Invesco Dynamic Large Cap Growth ETF (PWB) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-invesco-dynamic-large-cap-growth-etf-pwb-be-on-your-investing-radar-4
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nan
|
nan
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If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Invesco Dynamic Large Cap Growth ETF (PWB), a passively managed exchange traded fund launched on 03/03/2005.
The fund is sponsored by Invesco. It has amassed assets over $547.45 million, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Additionally, growth stocks have a greater level of risk associated with them. 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 0.55%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.12%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 48.70% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Tesla Inc (TSLA) accounts for about 4.25% of total assets, followed by Costco Wholesale Corp (COST) and Apple Inc (AAPL).
The top 10 holdings account for about 35.17% of total assets under management.
Performance and Risk
PWB seeks to match the performance of the Dynamic Large Cap Growth Intellidex Index before fees and expenses. The Dynamic Large Cap Growth Intellidex Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure.
The ETF has lost about -24.75% so far this year and is down about -25.55% in the last one year (as of 11/09/2022). In the past 52-week period, it has traded between $56.26 and $82.12.
The ETF has a beta of 1 and standard deviation of 27.85% for the trailing three-year period, making it a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Dynamic Large Cap Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PWB is an excellent option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $66.17 billion in assets, Invesco QQQ has $147.01 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
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
Invesco Dynamic Large Cap Growth ETF (PWB): ETF Research Reports
Apple Inc. (AAPL): Free Stock Analysis Report
Costco Wholesale Corporation (COST): Free Stock Analysis Report
Tesla, Inc. (TSLA): Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Looking at individual holdings, Tesla Inc (TSLA) accounts for about 4.25% of total assets, followed by Costco Wholesale Corp (COST) and Apple Inc (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report It has amassed assets over $547.45 million, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.
|
Looking at individual holdings, Tesla Inc (TSLA) accounts for about 4.25% of total assets, followed by Costco Wholesale Corp (COST) and Apple Inc (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Invesco Dynamic Large Cap Growth ETF (PWB), a passively managed exchange traded fund launched on 03/03/2005.
|
Looking at individual holdings, Tesla Inc (TSLA) accounts for about 4.25% of total assets, followed by Costco Wholesale Corp (COST) and Apple Inc (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Invesco Dynamic Large Cap Growth ETF (PWB), a passively managed exchange traded fund launched on 03/03/2005.
|
Looking at individual holdings, Tesla Inc (TSLA) accounts for about 4.25% of total assets, followed by Costco Wholesale Corp (COST) and Apple Inc (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report 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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