Unnamed: 0
stringlengths 3
8
| Date
stringlengths 23
23
| Article_title
stringlengths 1
250
| Stock_symbol
stringlengths 1
5
| Url
stringlengths 44
135
| Publisher
stringclasses 1
value | Author
stringclasses 1
value | Article
stringlengths 1
343k
| Lsa_summary
stringlengths 3
53.9k
| Luhn_summary
stringlengths 1
53.9k
| Textrank_summary
stringlengths 1
53.9k
| Lexrank_summary
stringlengths 1
53.9k
|
|---|---|---|---|---|---|---|---|---|---|---|---|
18500.0
|
2022-11-09 00:00:00 UTC
|
Better Buy: Amazon vs. Apple
|
AAPL
|
https://www.nasdaq.com/articles/better-buy%3A-amazon-vs.-apple
|
nan
|
nan
|
Many companies have watched their share prices fall significantly as rises in inflation and interest rates have increasingly stunted consumer spending. As a result, the stock market has become a buyer's paradise for investors willing to hold for the long term.
Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) have both seen their stock prices plummet since January. These are some of the most valuable companies in the world, so prospective investors might be wondering which is the better buy. Let's take a look.
Amazon: An e-commerce titan
Amazon has come a long way since it started as an online book retailer in 1994. The company has grown into an e-commerce behemoth that has become the first place most of the world turns to for online shopping, and its Prime subscription service generates roughly $25.21 billion a year.
However, Amazon's stock has plummeted 45% year to date because the consumer-reliant part of its business has been hit especially hard by macroeconomic declines. In its third quarter of 2022, for which it reported earnings on Oct. 27, the company earned $127.1 billion in revenue, which was just shy of analysts' expectations of $127.46 billion. The miss was primarily fueled by reduced earnings in Amazon's International segment, which decreased by 4.9% year over year from $29.1 billion in Q3 2021 to $27.7 billion in Q3 2022.
Moreover, despite the company's dominance in e-commerce, its cloud computing business, Amazon Web Services (AWS), has become the most crucial part of its growth since launching in 2006. From Q3 2019 to Q3 2022, AWS revenue has risen 130%, from $9.0 billion to $20.5 billion.
However, AWS growth has slowed in 2022, concerning investors. The cloud computing business saw revenue rise 27.4% in its latest quarter, a lower rate than Q2 2022's increase of 33% and Q3 2021's 39%.
Amazon is a strong business with a majority market share in the lucrative e-commerce and cloud computing industries. However, with a potential recession in 2022, its e-commerce business might continue suffering losses. An investment in Amazon would be less risky if AWS continued to see increasing growth, but that hasn't been the case in 2022.
As a result, investors should remain cautious toward Amazon's stock for now, at least until its cloud computing business can see a return to rising quarterly growth.
Apple: Outperforming the market
Like most tech stocks this year, Apple shares have dipped since January. However, while many titans of the industry, such as Microsoft (NASDAQ: MSFT) and AMD (NASDAQ: AMD), have seen their share prices fall 31.9% and 55.6% year to date, respectively, Apple's has dipped at a more moderate 20.9% in the same period.
The company's Q4 2022 earnings release on Oct. 27 proved many analysts wrong; revenue hit $90.15 billion, rising 8.1% year over year, while Wall Street had previously projected $88.9 billion. Additionally, despite a slowdown in the personal computer market in 2022, Apple reported 25% year-over-year growth in its fourth quarter, earning $11.5 billion against analyst forecasts of $9.36 billion.
For reference, one of Apple's biggest competitors in personal computers, Microsoft, reported a slight decrease in its More Personal Computing segment, which includes its Surface laptop lineup, for the period that ended Sept. 30.
Apple's latest earnings release has demonstrated the business's ability to continue growing despite an economic slowdown. The company's fiscal 2022 revenue of $394.3 billion and 8% year-over-year rise might pale in comparison to 2021's 33% year-over-year revenue growth. However, it's important to remember that last year was an economic boom in the tech market, with consumers homebound by pandemic lockdowns investing in home office setups and entertainment gadgets. As a result, 2021 and 2022 have been like night and day economically, with even marginal growth worth celebrating this year.
When it comes down to it, Apple's stock is the better buy right now. The iPhone company is home to immensely in-demand products and services that seem capable of weathering the worst economic downturns. Meanwhile, Amazon has a badly hit e-commerce business that looks likely to suffer further declines in the next year, and the slowing growth of its AWS segment has done little to quell concerns for the future.
Additionally, because free cash flow will be a crucial metric in the wake of a potential recession, Apple's $20.8 billion versus Amazon's loss of $4.97 billion only makes the case for the MacBook manufacturer even stronger. Apple shares are undoubtedly the better buy.
10 stocks we like better than Apple
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 30, 2022
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Apple, and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) have both seen their stock prices plummet since January. The company has grown into an e-commerce behemoth that has become the first place most of the world turns to for online shopping, and its Prime subscription service generates roughly $25.21 billion a year. However, it's important to remember that last year was an economic boom in the tech market, with consumers homebound by pandemic lockdowns investing in home office setups and entertainment gadgets.
|
Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) have both seen their stock prices plummet since January. However, while many titans of the industry, such as Microsoft (NASDAQ: MSFT) and AMD (NASDAQ: AMD), have seen their share prices fall 31.9% and 55.6% year to date, respectively, Apple's has dipped at a more moderate 20.9% in the same period. The company's Q4 2022 earnings release on Oct. 27 proved many analysts wrong; revenue hit $90.15 billion, rising 8.1% year over year, while Wall Street had previously projected $88.9 billion.
|
Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) have both seen their stock prices plummet since January. Apple: Outperforming the market Like most tech stocks this year, Apple shares have dipped since January. The company's Q4 2022 earnings release on Oct. 27 proved many analysts wrong; revenue hit $90.15 billion, rising 8.1% year over year, while Wall Street had previously projected $88.9 billion.
|
Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) have both seen their stock prices plummet since January. The cloud computing business saw revenue rise 27.4% in its latest quarter, a lower rate than Q2 2022's increase of 33% and Q3 2021's 39%. As a result, investors should remain cautious toward Amazon's stock for now, at least until its cloud computing business can see a return to rising quarterly growth.
|
18501.0
|
2022-11-09 00:00:00 UTC
|
3 Stocks to Buy to Invest in Virtual Reality
|
AAPL
|
https://www.nasdaq.com/articles/3-stocks-to-buy-to-invest-in-virtual-reality
|
nan
|
nan
|
Virtual reality (VR) has become one of the biggest buzz phrases in the tech world. According to Grand View Research, the VR market was valued at $21.83 billion in 2021, and it's expected to grow at a compound annual rate of 15% until at least 2030. As a result, some of the biggest names in tech are throwing their hats into the virtual ring.
Now might be a great time to invest in the leading VR companies. Here are three that are worth considering.
1. Meta Platforms
No company is investing more money into the growth of VR than Meta Platforms (NASDAQ: META). The company formerly known as Facebook has invested $36 billion into its metaverse-related efforts in just the last three years. However, its investment in the technology goes back to at least 2014, when it purchased VR headset manufacturer Oculus for $2 billion.
Meta is going all in on its metaverse project, which it hopes will be the future of human communication, a la movies like Ready Player One. Meta got to where it is today by controlling communication portals Facebook, Instagram, and WhatsApp -- three of the biggest communication tools on the internet. However, with the metaverse, the company aims to control the next internet itself. If everything goes according to Meta's plan, it will own the platform that other companies build their portals on.
If Meta can achieve its goal, it will become one of the most valuable companies on the planet. However, that's a pretty big "if," and there's a lot of risk involved in the company's strategy and how much it is spending. In the time over which Meta has invested $36 billion into VR, its Reality Labs VR and metaverse division has reported just $5.3 billion in revenue. Hence why Meta's stock price is currently at a seven-year low.
Meta is a risky investment, but it's the biggest player in VR, and if any company can become the leader in the space in the years to come, it's the one best positioned to do so.
2. Apple
If any company can give Meta Platforms a run for its money in VR, it's Apple (NASDAQ: AAPL). While it's rarely the first tech company to enter a new product category, it has a knack for dominating the categories it enters when it finally does. It did so with the iPhone, iPad, Apple Watch, and AirPods -- all of the product categories it has entered since 2007.
According to respected Apple supply chain analyst Ming-Chi Kuo, Apple could reveal its long-awaited VR/AR headset as soon as January. Although concrete information on what the headset will feature won't be revealed until the official announcement, CEO Tim Cook recently teased that people will "wonder how you led your life without augmented reality."
Apple's AR/VR headset is expected to debut with a price of around $3,000, double what Meta is charging for its recently released Meta Quest Pro. As it improves its Augmented Reality OS and is able to bring down the hardware cost, reports say Apple will begin to offer a cheaper, mass-market version of the headset by 2025.
If VR and AR play as big of a role in our future daily lives as Meta and Apple believe they will, investing in Apple before the announcement of its headset could be like investing in Apple before the launch of the original iPhone.
3. Sony
While Apple and Meta vie for the future of human connectivity in VR, Sony (NYSE: SONY) is going for dominance in the already-popular VR gaming space. The PlayStation VR2 headset will be the only VR option in the $46.3 billion console gaming market when it launches in February. The other two major console manufacturers, Microsoft and Nintendo, have no VR offerings and aren't rushing to develop them.
Sony's PlayStation VR2 headset will be priced at $549 in the U.S., which puts it in between Valve's $999 Index VR Kit (which requires a separate gaming PC to use) and Meta's $399 Quest 2 headset, which doesn't require additional hardware but has limits regarding the games it can run.
To use the PlayStation VR2, gamers will also need a PS5. Those consoles go for either $399 or $499, but that still puts the whole package at a lower price than VR gaming on a PC and will give players a much higher quality experience than the stand-alone Meta Quest 2.
In the years since it was released in 2016, Sony has sold more than 5 million of the original PlayStation VRs. By contrast, Sony sold nearly 117 million PlayStation 4 consoles, so that headset clearly enjoyed only limited adoption by its target audience. However, the company has significantly improved its tech for the new model, so Sony is hoping to make a bigger splash this time around.
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 September 30, 2022
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple 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.
|
Apple If any company can give Meta Platforms a run for its money in VR, it's Apple (NASDAQ: AAPL). Although concrete information on what the headset will feature won't be revealed until the official announcement, CEO Tim Cook recently teased that people will "wonder how you led your life without augmented reality." As it improves its Augmented Reality OS and is able to bring down the hardware cost, reports say Apple will begin to offer a cheaper, mass-market version of the headset by 2025.
|
Apple If any company can give Meta Platforms a run for its money in VR, it's Apple (NASDAQ: AAPL). Sony's PlayStation VR2 headset will be priced at $549 in the U.S., which puts it in between Valve's $999 Index VR Kit (which requires a separate gaming PC to use) and Meta's $399 Quest 2 headset, which doesn't require additional hardware but has limits regarding the games it can run. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
|
Apple If any company can give Meta Platforms a run for its money in VR, it's Apple (NASDAQ: AAPL). Meta Platforms No company is investing more money into the growth of VR than Meta Platforms (NASDAQ: META). If VR and AR play as big of a role in our future daily lives as Meta and Apple believe they will, investing in Apple before the announcement of its headset could be like investing in Apple before the launch of the original iPhone.
|
Apple If any company can give Meta Platforms a run for its money in VR, it's Apple (NASDAQ: AAPL). Meta Platforms No company is investing more money into the growth of VR than Meta Platforms (NASDAQ: META). In the time over which Meta has invested $36 billion into VR, its Reality Labs VR and metaverse division has reported just $5.3 billion in revenue.
|
18502.0
|
2022-11-09 00:00:00 UTC
|
China, Hong Kong stocks fall as subdued data; midterm polls weigh
|
AAPL
|
https://www.nasdaq.com/articles/china-hong-kong-stocks-fall-as-subdued-data-midterm-polls-weigh
|
nan
|
nan
|
By Summer Zhen
HONG KONG, Nov 9 (Reuters) - China and Hong Kong stocks closed lower on Wednesday, as producer prices' fall for the first time since December 2020 underscored faltering domestic demand amid COVID-19 curbs, with investors awaited U.S. inflation data and midterm poll results.
** China's blue-chip CSI 300 Index .CSI300 ended down 0.93%, while the Shanghai Composite Index .SSEC slid 0.53%.
** Hong Kong's Hang Seng Index .HSI dropped 1.2% and the Hang Seng China Enterprises Index .HSCE declined 1.21%.
** Asian shares were mixed on Wednesday, with eyes on U.S. midterm election results and a major inflation update due later in the week.
** China's October producer price index (PPI) fell 1.3% year-on-year from 0.9% gain a month earlier, official data showed, compared with a forecast of a 1.5% contraction in a Reuters poll.
** The consumer price index climbed 2.1% from a year earlier, slower than the 2.4% forecast by analysts.
** South-bound trading via Shanghai-Hong Kong Stock Connect saw HK$694 million ($88.41 million) of outflow after 24 days of consecutive inflows.
** Millions of residents of China's southern manufacturing hub of Guangzhou will be required to have COVID-19 tests on Wednesday, authorities said, in an effort to control the city's worst outbreak with infections topping 2,000 for two consecutive days.
** The self-regulatory body of China's interbank market said it will expand bond financing for private firms, including developers, with support from the central bank.
** "We believe the private sector will benefit from this bond issuance program... However, the benefits are unlikely to be sufficient to resolve the financial woes faced by private enterprises, especially private developers," Nomura analysts wrote in a note.
** Internet stocks and the photovoltaic solar power sector, down 2% each, led declines among mainland A-shares.
** Goertek Inc 002241.SZ tumbled 10%, hitting its daily trading limit, as the China-based supplier for companies including Apple AAPL.O said an unidentified overseas client suspended order.
** In Hong Kong, the Hang Seng Mainland Properties Index .HSMPI rose 4.3%, while Hang Seng Tech .HSTECH dropped 1.9%, dragging the broader market.
($1 = 7.8496 Hong Kong dollars)
(Reporting by Summer Zhen; Editing by Rashmi Aich)
((summer.zhen@thomsonreuters.com; 852-3462-7739;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
** Goertek Inc 002241.SZ tumbled 10%, hitting its daily trading limit, as the China-based supplier for companies including Apple AAPL.O said an unidentified overseas client suspended order. ** China's October producer price index (PPI) fell 1.3% year-on-year from 0.9% gain a month earlier, official data showed, compared with a forecast of a 1.5% contraction in a Reuters poll. ** Millions of residents of China's southern manufacturing hub of Guangzhou will be required to have COVID-19 tests on Wednesday, authorities said, in an effort to control the city's worst outbreak with infections topping 2,000 for two consecutive days.
|
** Goertek Inc 002241.SZ tumbled 10%, hitting its daily trading limit, as the China-based supplier for companies including Apple AAPL.O said an unidentified overseas client suspended order. By Summer Zhen HONG KONG, Nov 9 (Reuters) - China and Hong Kong stocks closed lower on Wednesday, as producer prices' fall for the first time since December 2020 underscored faltering domestic demand amid COVID-19 curbs, with investors awaited U.S. inflation data and midterm poll results. ** Hong Kong's Hang Seng Index .HSI dropped 1.2% and the Hang Seng China Enterprises Index .HSCE declined 1.21%.
|
** Goertek Inc 002241.SZ tumbled 10%, hitting its daily trading limit, as the China-based supplier for companies including Apple AAPL.O said an unidentified overseas client suspended order. By Summer Zhen HONG KONG, Nov 9 (Reuters) - China and Hong Kong stocks closed lower on Wednesday, as producer prices' fall for the first time since December 2020 underscored faltering domestic demand amid COVID-19 curbs, with investors awaited U.S. inflation data and midterm poll results. ** Hong Kong's Hang Seng Index .HSI dropped 1.2% and the Hang Seng China Enterprises Index .HSCE declined 1.21%.
|
** Goertek Inc 002241.SZ tumbled 10%, hitting its daily trading limit, as the China-based supplier for companies including Apple AAPL.O said an unidentified overseas client suspended order. By Summer Zhen HONG KONG, Nov 9 (Reuters) - China and Hong Kong stocks closed lower on Wednesday, as producer prices' fall for the first time since December 2020 underscored faltering domestic demand amid COVID-19 curbs, with investors awaited U.S. inflation data and midterm poll results. ** Hong Kong's Hang Seng Index .HSI dropped 1.2% and the Hang Seng China Enterprises Index .HSCE declined 1.21%.
|
18503.0
|
2022-11-09 00:00:00 UTC
|
China's Guangzhou city brings back mass testing to fight worst COVID outbreak
|
AAPL
|
https://www.nasdaq.com/articles/chinas-guangzhou-city-brings-back-mass-testing-to-fight-worst-covid-outbreak-0
|
nan
|
nan
|
By Liz Lee and Bernard Orr
BEIJING, Nov 9 (Reuters) - Millions of residents of China's southern manufacturing hub of Guangzhou will be required to have COVID-19 tests on Wednesday, authorities said, in an effort to control the city's worst outbreak with infections topping 2,000 for two consecutive days.
As local cases across China reached their highest level since April 30, authorities announced on social media that five districts representing more than half Guangzhou's population of almost 19 million would need to undergo mass testing.
The latest round of mass testing in Guangzhou comes as China battles a rebound in infections in several economically vital cities, including the capital Beijing, which have dampened hopes that the world's second-largest economy could ease curbs and restrictions soon.
Authorities are determined to get on top of the outbreaks and make good on President Xi Jinping's zero-COVID policy, without having to impose mass lockdowns of the sort that shut Shanghai earlier this year.
The districts in Guangzhou subject to mass testing this week include Haizhu, which has seen the bulk of the city's cases. A district-wide lockdown from Saturday to Monday has been extended to Friday as cases rise.
"My residential compound in Tianhe (district) has been locked up since yesterday," said Guangzhou resident Jason Li.
"I was suddenly notified by my compound. Residents were instructed not to leave our building."
Li said he hadn't been told for how long his compound would be locked up.
"Thank god I've stocked up on groceries recently," he said.
Lily Li, a Guangzhou resident, said the outbreak in the city had worsened in the past two days, having spread to Tianhe, just north of Haizhu.
"Honestly, it's already a huge surprise that Tianhe hadn't been affected sooner," she said.
ECONOMIC TOLL
In the latest sign of how anti-virus measures are crushing consumer demand, China's factory gate prices for October dropped for the first time since December 2020 and consumer inflation moderated, in part due to strict COVID curbs.
In central China, Apple AAPL.O supplier Foxconn 2317.TW said it would continue to maintain closed-loop operations - a system where staff live on-site isolated from the wider world - at its iPhone plant even as the economic zone that housed the factory lifted a seven-day lockdown.
Foxconn has declined to disclose the number of infections or comment on the conditions of those infected. The issues at the plant have hit iPhone production, prompting Apple on Monday to say that it expects lower shipments of premium iPhone 14 models.
While COVID cases in China are small by global standards, the policy response has been relentless and mass testing for large populations has been the norm since 2020.
Mass testing is generally free, but some local governments are resuming charges for tests as their finances come under strain amid a slowing economy.
A COVID testing company in Xuchang, a city in Henan province, said on Tuesday they would stop all testing-related work from Friday due to late payments from authorities.
(Reporting by Liz Lee, Bernard Orr, Martin Quin Pollard and Beijing newsroom; Additional reporting by Josh Ye in Hong Kong; Editing by Stephen Coates and Tom Hogue)
((liz.lee@thomsonreuters.com; Twitter: @livinglizly;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In central China, Apple AAPL.O supplier Foxconn 2317.TW said it would continue to maintain closed-loop operations - a system where staff live on-site isolated from the wider world - at its iPhone plant even as the economic zone that housed the factory lifted a seven-day lockdown. By Liz Lee and Bernard Orr BEIJING, Nov 9 (Reuters) - Millions of residents of China's southern manufacturing hub of Guangzhou will be required to have COVID-19 tests on Wednesday, authorities said, in an effort to control the city's worst outbreak with infections topping 2,000 for two consecutive days. The latest round of mass testing in Guangzhou comes as China battles a rebound in infections in several economically vital cities, including the capital Beijing, which have dampened hopes that the world's second-largest economy could ease curbs and restrictions soon.
|
In central China, Apple AAPL.O supplier Foxconn 2317.TW said it would continue to maintain closed-loop operations - a system where staff live on-site isolated from the wider world - at its iPhone plant even as the economic zone that housed the factory lifted a seven-day lockdown. By Liz Lee and Bernard Orr BEIJING, Nov 9 (Reuters) - Millions of residents of China's southern manufacturing hub of Guangzhou will be required to have COVID-19 tests on Wednesday, authorities said, in an effort to control the city's worst outbreak with infections topping 2,000 for two consecutive days. The districts in Guangzhou subject to mass testing this week include Haizhu, which has seen the bulk of the city's cases.
|
In central China, Apple AAPL.O supplier Foxconn 2317.TW said it would continue to maintain closed-loop operations - a system where staff live on-site isolated from the wider world - at its iPhone plant even as the economic zone that housed the factory lifted a seven-day lockdown. By Liz Lee and Bernard Orr BEIJING, Nov 9 (Reuters) - Millions of residents of China's southern manufacturing hub of Guangzhou will be required to have COVID-19 tests on Wednesday, authorities said, in an effort to control the city's worst outbreak with infections topping 2,000 for two consecutive days. As local cases across China reached their highest level since April 30, authorities announced on social media that five districts representing more than half Guangzhou's population of almost 19 million would need to undergo mass testing.
|
In central China, Apple AAPL.O supplier Foxconn 2317.TW said it would continue to maintain closed-loop operations - a system where staff live on-site isolated from the wider world - at its iPhone plant even as the economic zone that housed the factory lifted a seven-day lockdown. By Liz Lee and Bernard Orr BEIJING, Nov 9 (Reuters) - Millions of residents of China's southern manufacturing hub of Guangzhou will be required to have COVID-19 tests on Wednesday, authorities said, in an effort to control the city's worst outbreak with infections topping 2,000 for two consecutive days. The districts in Guangzhou subject to mass testing this week include Haizhu, which has seen the bulk of the city's cases.
|
18504.0
|
2022-11-09 00:00:00 UTC
|
Chip maker TSMC plans multibillion-dollar Arizona factory expansion - WSJ
|
AAPL
|
https://www.nasdaq.com/articles/chip-maker-tsmc-plans-multibillion-dollar-arizona-factory-expansion-wsj-0
|
nan
|
nan
|
Adds details, background
Nov 9 (Reuters) - Taiwan Semiconductor Manufacturing Co Ltd 2330.TW is preparing for another multibillion-dollar factory investment in Arizona in the United States, the Wall Street Journal reported on Wednesday, citing sources.
TSMC, a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, plans to announce in the coming months that it will build a cutting-edge semiconductor plant north of Phoenix, the report said.
The scale of this investment is expected to be roughly similar to the $12 billion it committed two years ago, it added.
The Taiwanese chipmaker's new facility would manufacture the so-called 3-nanometer transistors, the WSJ report said.
Last year, Reuters had reported TSMC's plans to build several more chipmaking factories in Arizona beyond the current one, including discussions about whether the next plant should be a more advanced facility that can make chips with 3-nanometer chipmaking technology compared to the slower, less-efficient 5-nanometer technology used for the first factory.
TSMC did not immediately repond to a Reuters request for comment.
The United States has been encouraging foreign tech firms to manufacture in the country and also vigorously supporting local research, development and manufacturing after passing its CHIPS Act.
While the chips sector is already bracing for waning demand as red-hot inflation squeezes spending, Taiwan faces a tougher situation - sandwiched between its largest export market China and its main international backer and arms supplier, the United States - especially as Beijing steps up military pressure to force Taipei to accept Chinese sovereignty claims.
(Reporting by Shivani Tanna in Bengaluru; Editing by Rashmi Aich)
((ShivaniJayesh.Tanna@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.
|
TSMC, a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, plans to announce in the coming months that it will build a cutting-edge semiconductor plant north of Phoenix, the report said. Adds details, background Nov 9 (Reuters) - Taiwan Semiconductor Manufacturing Co Ltd 2330.TW is preparing for another multibillion-dollar factory investment in Arizona in the United States, the Wall Street Journal reported on Wednesday, citing sources. While the chips sector is already bracing for waning demand as red-hot inflation squeezes spending, Taiwan faces a tougher situation - sandwiched between its largest export market China and its main international backer and arms supplier, the United States - especially as Beijing steps up military pressure to force Taipei to accept Chinese sovereignty claims.
|
TSMC, a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, plans to announce in the coming months that it will build a cutting-edge semiconductor plant north of Phoenix, the report said. Adds details, background Nov 9 (Reuters) - Taiwan Semiconductor Manufacturing Co Ltd 2330.TW is preparing for another multibillion-dollar factory investment in Arizona in the United States, the Wall Street Journal reported on Wednesday, citing sources. Last year, Reuters had reported TSMC's plans to build several more chipmaking factories in Arizona beyond the current one, including discussions about whether the next plant should be a more advanced facility that can make chips with 3-nanometer chipmaking technology compared to the slower, less-efficient 5-nanometer technology used for the first factory.
|
TSMC, a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, plans to announce in the coming months that it will build a cutting-edge semiconductor plant north of Phoenix, the report said. Adds details, background Nov 9 (Reuters) - Taiwan Semiconductor Manufacturing Co Ltd 2330.TW is preparing for another multibillion-dollar factory investment in Arizona in the United States, the Wall Street Journal reported on Wednesday, citing sources. Last year, Reuters had reported TSMC's plans to build several more chipmaking factories in Arizona beyond the current one, including discussions about whether the next plant should be a more advanced facility that can make chips with 3-nanometer chipmaking technology compared to the slower, less-efficient 5-nanometer technology used for the first factory.
|
TSMC, a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, plans to announce in the coming months that it will build a cutting-edge semiconductor plant north of Phoenix, the report said. The scale of this investment is expected to be roughly similar to the $12 billion it committed two years ago, it added. Last year, Reuters had reported TSMC's plans to build several more chipmaking factories in Arizona beyond the current one, including discussions about whether the next plant should be a more advanced facility that can make chips with 3-nanometer chipmaking technology compared to the slower, less-efficient 5-nanometer technology used for the first factory.
|
18505.0
|
2022-11-09 00:00:00 UTC
|
China's Guangzhou city brings back mass testing to fight worst COVID outbreak
|
AAPL
|
https://www.nasdaq.com/articles/chinas-guangzhou-city-brings-back-mass-testing-to-fight-worst-covid-outbreak
|
nan
|
nan
|
BEIJING, Nov 9 (Reuters) - Millions of residents of China's southern manufacturing hub of Guangzhou will be required to have COVID-19 tests on Wednesday, authorities said, in an effort to control the city's worst outbreak with infections topping 2,000 for two consecutive days.
As local cases across China reached their highest level since April 30, authorities announced on social media that five districts representing more than half Guangzhou's population of almost 19 million would need to undergo mass testing.
The latest round of mass testing in Guangzhou comes as China battles a rebound in infections in several economically vital cities, including the capital Beijing, which have dampened hopes that the world's second-largest economy could ease curbs and restrictions soon.
Authorities are determined to get on top of the outbreaks and make good on President Xi Jinping's zero-COVID policy, without having to impose mass lockdowns of the sort that shut Shanghai earlier this year.
The districts in Guangzhou subject to mass testing this week include Haizhu, which has seen the bulk of the city's cases. A district-wide lockdown from Saturday to Monday has been extended to Friday as cases rise.
Guangzhou reported 2,637 new locally transmitted COVID cases for Nov. 8, up from 2,377 a day earlier amid the city's most serious outbreak to date and accounting for nearly a third of the 8,176 new local infections reported in China on the day.
Surging case numbers in the city, capital of Guangdong province, means Guangzhou has surpassed the northern Inner Mongolia city of Hohhot to become China's COVID epicentre.
ECONOMIC TOLL
In the latest sign of how anti-virus measures are crushing consumer demand, China's factory gate prices for October dropped for the first time since December 2020 and consumer inflation moderated, in part due to strict COVID curbs.
In central China, Apple AAPL.O supplier Foxconn 2317.TW said it would continue to maintain closed-loop operations - a system where staff live on-site isolated from the wider world - at its iPhone plant even as the economic zone that housed the factory lifted a seven-day lockdown.
Foxconn has declined to disclose the number of infections or comment on the conditions of those infected. The issues at the plant have hit iPhone production, prompting Apple on Monday to say that it expects lower shipments of premium iPhone 14 models.
While COVID cases in China are small by global standards, the policy response has been relentless and mass testing for large populations has been the norm since 2020.
Mass testing is generally free, but some local governments are resuming charges for tests as their finances come under strain amid a slowing economy.
A COVID testing company in Xuchang, a city in Henan province, said on Tuesday they would stop all testing-related work from Friday due to late payments from authorities.
(Reporting by Liz Lee, Bernard Orr, Martin Quin Pollard and Beijing newsroom; Editing by Stephen Coates)
((liz.lee@thomsonreuters.com; Twitter: @livinglizly;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In central China, Apple AAPL.O supplier Foxconn 2317.TW said it would continue to maintain closed-loop operations - a system where staff live on-site isolated from the wider world - at its iPhone plant even as the economic zone that housed the factory lifted a seven-day lockdown. BEIJING, Nov 9 (Reuters) - Millions of residents of China's southern manufacturing hub of Guangzhou will be required to have COVID-19 tests on Wednesday, authorities said, in an effort to control the city's worst outbreak with infections topping 2,000 for two consecutive days. The latest round of mass testing in Guangzhou comes as China battles a rebound in infections in several economically vital cities, including the capital Beijing, which have dampened hopes that the world's second-largest economy could ease curbs and restrictions soon.
|
In central China, Apple AAPL.O supplier Foxconn 2317.TW said it would continue to maintain closed-loop operations - a system where staff live on-site isolated from the wider world - at its iPhone plant even as the economic zone that housed the factory lifted a seven-day lockdown. The latest round of mass testing in Guangzhou comes as China battles a rebound in infections in several economically vital cities, including the capital Beijing, which have dampened hopes that the world's second-largest economy could ease curbs and restrictions soon. Guangzhou reported 2,637 new locally transmitted COVID cases for Nov. 8, up from 2,377 a day earlier amid the city's most serious outbreak to date and accounting for nearly a third of the 8,176 new local infections reported in China on the day.
|
In central China, Apple AAPL.O supplier Foxconn 2317.TW said it would continue to maintain closed-loop operations - a system where staff live on-site isolated from the wider world - at its iPhone plant even as the economic zone that housed the factory lifted a seven-day lockdown. BEIJING, Nov 9 (Reuters) - Millions of residents of China's southern manufacturing hub of Guangzhou will be required to have COVID-19 tests on Wednesday, authorities said, in an effort to control the city's worst outbreak with infections topping 2,000 for two consecutive days. The latest round of mass testing in Guangzhou comes as China battles a rebound in infections in several economically vital cities, including the capital Beijing, which have dampened hopes that the world's second-largest economy could ease curbs and restrictions soon.
|
In central China, Apple AAPL.O supplier Foxconn 2317.TW said it would continue to maintain closed-loop operations - a system where staff live on-site isolated from the wider world - at its iPhone plant even as the economic zone that housed the factory lifted a seven-day lockdown. As local cases across China reached their highest level since April 30, authorities announced on social media that five districts representing more than half Guangzhou's population of almost 19 million would need to undergo mass testing. The districts in Guangzhou subject to mass testing this week include Haizhu, which has seen the bulk of the city's cases.
|
18506.0
|
2022-11-09 00:00:00 UTC
|
Foxconn persists with COVID curbs at Zhengzhou plant as district lifts lockdown
|
AAPL
|
https://www.nasdaq.com/articles/foxconn-persists-with-covid-curbs-at-zhengzhou-plant-as-district-lifts-lockdown
|
nan
|
nan
|
Adds Foxconn comment, background on plant
BEIJING, Nov 9 (Reuters) - Apple supplier Foxconn 2317.TW said it would continue to maintain closed-loop operations at its iPhone plant in central China, even as the economic zone that housed the factory lifted a 7-day lockdown on Wednesday as planned.
The Zhengzhou Airport Economy Zone, which has over 600,000 residents, said on its official WeChat account that it had lifted the district-wide lockdown, though certain restrictions would remain especially in medium- to high-risk areas, defined in China as places where cases have recently been found or visited.
Companies in high-risk areas, for example, need to continue to implement closed loop operations, a system where staff live and work on-site in a bubble isolated from the wider world.
Foxconn said on Wednesday it would continue to implement the system. The company has declined to disclose the number of infections or comment on the conditions of those infected.
The lockdown of the zone, which barred all of its residents from going out and shut down its public transport, had added pressure to Foxconn which has been dealing with worker discontent at the plant after it implemented closed-loop operations in mid-October.
The issues at the plant where Foxconn makes most iPhones caused several workers to flee the plant and have hit production, prompting Apple on Monday to say that it expects lower shipments of premium iPhone 14 models.
The Zhengzhou Airport Economy Zone said that while most residents in the area would now be free to move around, dine-in services at restaurants would continue to be suspended and schools would continue with online teaching.
(Reporting by Beijing newsroom and Ben Blanchard in Taipei; Writing by Brenda Goh; editing by Christian Schmollinger and Stephen Coates)
((Albee.Zhang@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.
|
The Zhengzhou Airport Economy Zone, which has over 600,000 residents, said on its official WeChat account that it had lifted the district-wide lockdown, though certain restrictions would remain especially in medium- to high-risk areas, defined in China as places where cases have recently been found or visited. Companies in high-risk areas, for example, need to continue to implement closed loop operations, a system where staff live and work on-site in a bubble isolated from the wider world. The lockdown of the zone, which barred all of its residents from going out and shut down its public transport, had added pressure to Foxconn which has been dealing with worker discontent at the plant after it implemented closed-loop operations in mid-October.
|
Adds Foxconn comment, background on plant BEIJING, Nov 9 (Reuters) - Apple supplier Foxconn 2317.TW said it would continue to maintain closed-loop operations at its iPhone plant in central China, even as the economic zone that housed the factory lifted a 7-day lockdown on Wednesday as planned. The Zhengzhou Airport Economy Zone, which has over 600,000 residents, said on its official WeChat account that it had lifted the district-wide lockdown, though certain restrictions would remain especially in medium- to high-risk areas, defined in China as places where cases have recently been found or visited. The Zhengzhou Airport Economy Zone said that while most residents in the area would now be free to move around, dine-in services at restaurants would continue to be suspended and schools would continue with online teaching.
|
Adds Foxconn comment, background on plant BEIJING, Nov 9 (Reuters) - Apple supplier Foxconn 2317.TW said it would continue to maintain closed-loop operations at its iPhone plant in central China, even as the economic zone that housed the factory lifted a 7-day lockdown on Wednesday as planned. The lockdown of the zone, which barred all of its residents from going out and shut down its public transport, had added pressure to Foxconn which has been dealing with worker discontent at the plant after it implemented closed-loop operations in mid-October. The Zhengzhou Airport Economy Zone said that while most residents in the area would now be free to move around, dine-in services at restaurants would continue to be suspended and schools would continue with online teaching.
|
Adds Foxconn comment, background on plant BEIJING, Nov 9 (Reuters) - Apple supplier Foxconn 2317.TW said it would continue to maintain closed-loop operations at its iPhone plant in central China, even as the economic zone that housed the factory lifted a 7-day lockdown on Wednesday as planned. The Zhengzhou Airport Economy Zone, which has over 600,000 residents, said on its official WeChat account that it had lifted the district-wide lockdown, though certain restrictions would remain especially in medium- to high-risk areas, defined in China as places where cases have recently been found or visited. Foxconn said on Wednesday it would continue to implement the system.
|
18507.0
|
2022-11-09 00:00:00 UTC
|
China, Hong Kong stocks fall on subdued data, U.S. midterm election uncertainty
|
AAPL
|
https://www.nasdaq.com/articles/china-hong-kong-stocks-fall-on-subdued-data-u.s.-midterm-election-uncertainty
|
nan
|
nan
|
By Summer Zhen
HONG KONG, Nov 9 (Reuters) - China and Hong Kong stocks slid on Wednesday, as producer prices fell for the first time since December 2020 underscoring faltering domestic demand amid COVID-19 curbs, while investors awaited U.S. inflation data and mid-term election results. ** China's blue-chip CSI 300 Index .CSI300 fell 0.75 %, while the Shanghai Composite Index .SSEC edged down 0.35%. ** Hong Kong's Hang Seng Index .HSI dropped 1.52% and the Hang Seng China Enterprises Index .HSCE declined 1.4%. ** Asian shares rose and the dollar wobbled, as investors awaited U.S. inflation data as well as the results of the U.S. midterm elections that could signify a power shift in Washington. ** China's October producer price index (PPI) fell 1.3% year-on-year from 0.9% gain a month earlier, official data showed, compared with a forecast of a 1.5% contraction in a Reuters poll. ** The consumer price index climbed 2.1% from a year earlier, slower than the 2.4% forecast by analysts. ** New coronavirus cases surged in Guangzhou and other Chinese cities, official data showed on Tuesday. Many of Guangzhou's districts, including central Haizhu, have imposed varying levels of curbs and lockdowns.[ nL1N3241V4] ** The self-regulatory body of China's interbank market said it will expand bond financing for private firms, including developers, with support from the central bank.[ nB9N31O054]
** "We believe the private sector will benefit from this bond issuance program... However, the benefits are unlikely to be sufficient to resolve the financial woes faced by private enterprises, especially private developers," Nomura analysts wrote in a note.
** Internet stocks and the photovoltaic solar power sector, down 2.1% and 1.9% respectively, led declines among mainland A-shares.
** Goertek Inc 002241.SZ tumbled 10% after the supplier for companies including Apple AAPL.O said an unidentified overseas client suspended order. .nL1N3250AC
** In Hong Kong, the Hang Seng Mainland Properties Index .HSMPI rose 5.3%, while Hang Seng Tech .HSTECH dropped 1.9%, dragging the broader market.
(Reporting by Summer Zhen; Editing by Rashmi Aich)
((summer.zhen@thomsonreuters.com; 852-3462-7739;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
** Goertek Inc 002241.SZ tumbled 10% after the supplier for companies including Apple AAPL.O said an unidentified overseas client suspended order. ** Asian shares rose and the dollar wobbled, as investors awaited U.S. inflation data as well as the results of the U.S. midterm elections that could signify a power shift in Washington. ** China's October producer price index (PPI) fell 1.3% year-on-year from 0.9% gain a month earlier, official data showed, compared with a forecast of a 1.5% contraction in a Reuters poll.
|
** Goertek Inc 002241.SZ tumbled 10% after the supplier for companies including Apple AAPL.O said an unidentified overseas client suspended order. By Summer Zhen HONG KONG, Nov 9 (Reuters) - China and Hong Kong stocks slid on Wednesday, as producer prices fell for the first time since December 2020 underscoring faltering domestic demand amid COVID-19 curbs, while investors awaited U.S. inflation data and mid-term election results. ** Hong Kong's Hang Seng Index .HSI dropped 1.52% and the Hang Seng China Enterprises Index .HSCE declined 1.4%.
|
** Goertek Inc 002241.SZ tumbled 10% after the supplier for companies including Apple AAPL.O said an unidentified overseas client suspended order. By Summer Zhen HONG KONG, Nov 9 (Reuters) - China and Hong Kong stocks slid on Wednesday, as producer prices fell for the first time since December 2020 underscoring faltering domestic demand amid COVID-19 curbs, while investors awaited U.S. inflation data and mid-term election results. ** Hong Kong's Hang Seng Index .HSI dropped 1.52% and the Hang Seng China Enterprises Index .HSCE declined 1.4%.
|
** Goertek Inc 002241.SZ tumbled 10% after the supplier for companies including Apple AAPL.O said an unidentified overseas client suspended order. By Summer Zhen HONG KONG, Nov 9 (Reuters) - China and Hong Kong stocks slid on Wednesday, as producer prices fell for the first time since December 2020 underscoring faltering domestic demand amid COVID-19 curbs, while investors awaited U.S. inflation data and mid-term election results. ** China's October producer price index (PPI) fell 1.3% year-on-year from 0.9% gain a month earlier, official data showed, compared with a forecast of a 1.5% contraction in a Reuters poll.
|
18508.0
|
2022-11-09 00:00:00 UTC
|
Will Crypto Retail Stores Blow Up Like Apple Stores, or Will They Flop?
|
AAPL
|
https://www.nasdaq.com/articles/will-crypto-retail-stores-blow-up-like-apple-stores-or-will-they-flop
|
nan
|
nan
|
In late July, Solana (CRYPTO: SOL) launched a first-of-its-kind crypto retail experience in the middle of New York City. Then, in October, it followed that up with the launch of another Solana store in Miami.
In many ways, this new Solana retail store concept resembles an Apple Store -- a sleek, high-tech space filled with real-world items to buy, a regular event schedule, and a knowledgeable retail staff able to get you started on your crypto journey.
So are crypto retail stores part of an interesting new trend that will finally tip crypto into the popular mainstream? Here's a look at several other types of crypto retail experiences to see what they have in common. Perhaps these unique characteristics will be enough to help this new trend blow up.
Image source: Getty Images.
The crypto retail store
For now, the Solana Spaces retail store in New York is the template for what a crypto retail store experience should be. It looks and feels much like an Apple Store. You can learn about Solana NFTs, check out merchandise such as Solana sneakers, and get help with your crypto questions. Solana refers to this as an "embassy" rather than a store, and the idea is that people will spend a considerable amount of time there learning about crypto.
Online, reviews of Solana Spaces have been glowing. It's easy to see how this same type of store concept could be emulated by rival cryptos trying to attract new users, developers, and investors.
The pop-up store
A much more typical crypto retail store, though, is something that can best be called a "pop-up" store. In New York City, there are already pop-up restaurants and pop-up fashion boutiques, so why not a pop-up crypto store? Back in December 2021, for example, Coinbase (NASDAQ: COIN) co-hosted a pop-up store in New York City as a celebration of crypto, NFTs, street fashion, and art. This was several months before Coinbase began offering NFTs on its platform, so the timing obviously made sense.
The blurring of the lines between the traditional art world and the NFT art world opens up new opportunities. The NFT marketplace SuperRare, for example, opened up a pop-up NFT art gallery in New York City's Soho district. This makes sense since SuperRare specializes in unique NFTs from emerging artists and Soho has some of the best art galleries in the nation.
Other store concepts
Stores can also sell crypto-related merchandise next to their primary merchandise. For example, upscale luxury brand Dolce & Gabbana installed a temporary NFT art gallery in its flagship NYC store on Fifth Avenue to celebrate the launch of a pricey new NFT collection. And Los Angeles-based fashion retailer Fred Segal has integrated crypto and NFTs into new types of retail experience featuring digital products.
There are plenty of other creative ways to blur the line between traditional stores and crypto stores. For example, Ape Water -- a water brand inspired by the Bored Ape Yacht Club NFT collection and the ApeCoin (CRYPTO: APE) crypto -- is doing a store takeover of the legendary Pink Dot on Sunset Boulevard in West Hollywood in November. As part of a kick-off plan for the statewide distribution of Ape Water in California, Pink Dot will stock bottles of Ape Water featuring the Bored Apes.
Location, location, location
So what do all of these store concepts have in common? The short answer is: "Location, location, location."
All the crypto experiences in New York City, for example, are in high-density, high-traffic neighborhoods: Fifth Avenue, Chelsea, Soho, and Hudson Yards. The new Solana "embassy" in Miami is located in the funky and artistic Wynwood district. For now, it's hard to imagine crypto retail stores popping up in bland suburban malls.
Recognizing that millennial investors are more likely to stop by than older investors, these crypto retail experiences have focused on adding elements that appeal to younger investors, such as art, music, sports, and celebrity culture. The new Solana store in Miami, for example, features exclusive celebrity-inspired merchandise, a co-working lounge, and an NFT-inspired coffee shop. The Coinbase pop-up in New York featured limited edition T-shirts and toys in Japanese vending machines.
Will crypto go mainstream?
Only time will tell whether any of these crypto retail experiences pan out. But there is obviously a blurring of the lines between traditional retail and the brave new world of crypto retail. I'm particularly intrigued by cryptos such as Solana that are emulating the Apple Store model and bringing crypto to the masses. Once Solana has its new Saga mobile phones ready to buy in early 2023, this real-world product could be a big draw for people looking to stop by and learn more about crypto.
Remember: People were plenty skeptical when Apple opened its first retail store back in 2001, so it's easy to see why people are skeptical about Solana more than 20 years later.
At the very least, the presence of more of these crypto retail experiences could help crypto go mainstream. People who are intimidated by cryptocurrency are more likely to invest if they can get help in a cool, funky environment and fiddle around with new crypto gadgets and devices before actually buying them.
That's why I'm so bullish on the future prospects of Solana: It is making crypto easier to understand and use, and doing it in a way that Apple has already shown can be very successful.
10 stocks we like better than Solana
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 Solana wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 30, 2022
Dominic Basulto has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Coinbase Global, Inc., and Solana. 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.
|
Back in December 2021, for example, Coinbase (NASDAQ: COIN) co-hosted a pop-up store in New York City as a celebration of crypto, NFTs, street fashion, and art. All the crypto experiences in New York City, for example, are in high-density, high-traffic neighborhoods: Fifth Avenue, Chelsea, Soho, and Hudson Yards. Once Solana has its new Saga mobile phones ready to buy in early 2023, this real-world product could be a big draw for people looking to stop by and learn more about crypto.
|
The NFT marketplace SuperRare, for example, opened up a pop-up NFT art gallery in New York City's Soho district. For example, Ape Water -- a water brand inspired by the Bored Ape Yacht Club NFT collection and the ApeCoin (CRYPTO: APE) crypto -- is doing a store takeover of the legendary Pink Dot on Sunset Boulevard in West Hollywood in November. As part of a kick-off plan for the statewide distribution of Ape Water in California, Pink Dot will stock bottles of Ape Water featuring the Bored Apes.
|
In many ways, this new Solana retail store concept resembles an Apple Store -- a sleek, high-tech space filled with real-world items to buy, a regular event schedule, and a knowledgeable retail staff able to get you started on your crypto journey. The crypto retail store For now, the Solana Spaces retail store in New York is the template for what a crypto retail store experience should be. The pop-up store A much more typical crypto retail store, though, is something that can best be called a "pop-up" store.
|
The crypto retail store For now, the Solana Spaces retail store in New York is the template for what a crypto retail store experience should be. The NFT marketplace SuperRare, for example, opened up a pop-up NFT art gallery in New York City's Soho district. The new Solana "embassy" in Miami is located in the funky and artistic Wynwood district.
|
18509.0
|
2022-11-08 00:00:00 UTC
|
Is Qualcomm Stock a Buy Now?
|
AAPL
|
https://www.nasdaq.com/articles/is-qualcomm-stock-a-buy-now-1
|
nan
|
nan
|
Qualcomm's (NASDAQ: QCOM) stock tumbled nearly 8% during after-hours trading on Nov. 2 in response to its latest earnings report. For the fourth quarter of fiscal 2022, which ended on Sept. 25, the chipmaker's non-GAAP revenue rose 22% year-over-year to $11.39 billion, which beat analysts' estimates by $40 million. Its adjusted earnings increased 23% to $3.13 per share, which matched the consensus forecast.
Qualcomm's growth rates seem robust, but they represent a significant deceleration from previous quarters. The company's downbeat outlook for the upcoming fiscal year also shattered investors' hopes for a quick recovery. Let's take a closer look at Qualcomm's slowdown, its near-term challenges, and whether or not it's still worth buying in this rough market for semiconductor stocks.
Image source: Getty Images.
Grappling with slower smartphone sales
Qualcomm is one of the world's largest producers of mobile system-on-chips (SoCs) and baseband modems. It also owns a massive portfolio of wireless patents, which entitles it to a cut of every mobile device sold worldwide. Therefore, Qualcomm is heavily dependent on the smartphone market, which has cooled off lately due to severe COVID-19 restrictions in China, sluggish consumer spending amid high inflation, and lackluster sales following last year's 5G upgrade cycle. During the conference call, CFO Akash Palkhiwala warned that "rapid deterioration in demand and easing of supply constraints across the semiconductor industry have resulted in elevated channel inventory." In other words: Smartphone makers simply don't need as many chips anymore.
85% of Qualcomm's $44.17 billion in fiscal 2022 revenue came from its chipmaking segment, while the remaining 15% of total revenue came from the company's licensing unit. Here's a breakdown of how these two core businesses fared over the past year:
METRIC
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Chipmaking Revenue Growth (YOY)
56%
35%
52%
45%
28%
Licensing Revenue Growth (YOY)
3%
10%
(2%)
2%
(8%)
Total Revenue Growth (YOY)
43%
30%
41%
37%
22%
Data source: Qualcomm. *Non-GAAP basis. YOY = Year-over-year.
Qualcomm's chipmaking business lost its momentum in the second half of fiscal 2022 as its slowing sales of smartphone SoCs, which still accounted for two-thirds of the segment's full-year revenues, offset its accelerating growth in automotive chips, which only brought in 4.3% of its chipmaking revenues. That's why its higher-margin licensing business, which still relies heavily on smartphone sales, also ground to a halt. Qualcomm doesn't expect that pressure to ease anytime soon: Management reduced calendar year 2022 guidance for 3G/4G/5G handset volume growth from a mid-single-digit decline to a double-digit decline.
Management expects fiscal 2023's first quarter revenue to be 6.5%-14% less than the $10.7 billion brought in during the year-ago period. Qualcomm predicts revenue in the upcoming quarter will drop 6%-13% year over year for the chipmaking segment and 9%-20% year over year fro the licensing segment. It's anticipated that adjusted earnings per share (EPS) will slump 24%-30%, broadly missing analysts' original expectations for 6% growth.
How long will this downturn last?
During the conference call, CEO Cristiano Amon warned that Qualcomm would likely struggle with the "further deterioration of the macroeconomic environment and extended China COVID restrictions" throughout fiscal 2023. But he also noted that the company wouldn't lose "sight of the significant growth opportunities ahead," as it scales up its automotive and non-handset IoT (Internet of Things) chipmaking divisions to reduce dependence on the saturated and cyclical smartphone market.
Unfortunately, I don't see Qualcomm transforming into Texas Instruments (NASDAQ: TXN), which has a lot more exposure to the growing automotive market and limited exposure to the sluggish smartphone market, anytime soon. Qualcomm still generates two-thirds of its chipmaking revenue from smartphone SoCs, while its smaller front-end RF and consumer IoT chip businesses still partly rely on the smartphone market. It also faces stiff competition in the automotive market, which it's pinning its future hopes on, from other chipmakers like Nvidia (NASDAQ: NVDA) and Mobileye (NASDAQ: MBLY).
Those diversification plans are further complicated by the chipmaker's relationship with Apple (NASDAQ: AAPL), its leading customer which accounted for over 10% of Qualcomm's fiscal 2022 revenues. Qualcomm originally expected to supply about 20% of Apple's baseband modems for its next iPhone, which will likely launch next September, but it now expects to supply the "vast majority" of those modems. It only expects to generate a "minimal" amount of revenue from Apple by fiscal 2025 after that deal ends, but it's unclear if its non-smartphone chipmaking segments can sufficiently fill that void.
Is Qualcomm's stock too cheap to ignore?
Analysts expect Qualcomm's revenue and adjusted EPS to grow 5% and 2%, respectively, in fiscal 2023. Based on those estimates, Qualcomm's stock still looks cheap at just 9 times forward earnings. But I believe those estimates are still too high in light of its latest report, so its actual forward valuation might be a bit higher. Its forward yield of 2.6% looks decent, but it also won't attract any serious income investors as long as the three-month treasury's yield exceeds 4%.
Simply put, Qualcomm's stock isn't a screaming bargain yet. Investors would arguably be better off investing in a better-diversified chipmaker like Texas Instruments than Qualcomm, which remains tightly tethered to the cyclical smartphone market, as the bear market drags on.
10 stocks we like better than Qualcomm
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 Qualcomm wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 30, 2022
Leo Sun has positions in Apple and Qualcomm. The Motley Fool has positions in and recommends Apple, Qualcomm, and Texas Instruments. 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.
|
Those diversification plans are further complicated by the chipmaker's relationship with Apple (NASDAQ: AAPL), its leading customer which accounted for over 10% of Qualcomm's fiscal 2022 revenues. Therefore, Qualcomm is heavily dependent on the smartphone market, which has cooled off lately due to severe COVID-19 restrictions in China, sluggish consumer spending amid high inflation, and lackluster sales following last year's 5G upgrade cycle. During the conference call, CFO Akash Palkhiwala warned that "rapid deterioration in demand and easing of supply constraints across the semiconductor industry have resulted in elevated channel inventory."
|
Those diversification plans are further complicated by the chipmaker's relationship with Apple (NASDAQ: AAPL), its leading customer which accounted for over 10% of Qualcomm's fiscal 2022 revenues. Chipmaking Revenue Growth (YOY) 56% 35% 52% 45% 28% Licensing Revenue Growth (YOY) 3% 10% (2%) 2% (8%) Total Revenue Growth (YOY) 43% 30% 41% 37% 22% Data source: Qualcomm. Qualcomm's chipmaking business lost its momentum in the second half of fiscal 2022 as its slowing sales of smartphone SoCs, which still accounted for two-thirds of the segment's full-year revenues, offset its accelerating growth in automotive chips, which only brought in 4.3% of its chipmaking revenues.
|
Those diversification plans are further complicated by the chipmaker's relationship with Apple (NASDAQ: AAPL), its leading customer which accounted for over 10% of Qualcomm's fiscal 2022 revenues. Chipmaking Revenue Growth (YOY) 56% 35% 52% 45% 28% Licensing Revenue Growth (YOY) 3% 10% (2%) 2% (8%) Total Revenue Growth (YOY) 43% 30% 41% 37% 22% Data source: Qualcomm. Qualcomm's chipmaking business lost its momentum in the second half of fiscal 2022 as its slowing sales of smartphone SoCs, which still accounted for two-thirds of the segment's full-year revenues, offset its accelerating growth in automotive chips, which only brought in 4.3% of its chipmaking revenues.
|
Those diversification plans are further complicated by the chipmaker's relationship with Apple (NASDAQ: AAPL), its leading customer which accounted for over 10% of Qualcomm's fiscal 2022 revenues. 85% of Qualcomm's $44.17 billion in fiscal 2022 revenue came from its chipmaking segment, while the remaining 15% of total revenue came from the company's licensing unit. Qualcomm's chipmaking business lost its momentum in the second half of fiscal 2022 as its slowing sales of smartphone SoCs, which still accounted for two-thirds of the segment's full-year revenues, offset its accelerating growth in automotive chips, which only brought in 4.3% of its chipmaking revenues.
|
18510.0
|
2022-11-08 00:00:00 UTC
|
Shares in Apple supplier Goertek tumble after client suspends order
|
AAPL
|
https://www.nasdaq.com/articles/shares-in-apple-supplier-goertek-tumble-after-client-suspends-order
|
nan
|
nan
|
By Josh Ye
HONG KONG, Nov 9 (Reuters) - Shares in Goertek Inc 002241.SZ tumbled on Wednesday after the China-based supplier for companies such as Apple AAPL.O and Meta Platforms META.O said an unidentified overseas client had asked it to suspend assembly work for a smart acoustic product.
Goertek said late on Tuesday it had received the notice from a "major overseas client", without disclosing the identity of the customer or product. The suspension would impact up to 3.3 billion yuan ($455.05 million) in revenue, equivalent to about 4.2% of the company's total revenue in 2021, it said.
Shares in Goertek fell by their maximum, triggering a trading suspension in accordance with exchange rules.
Ming-Chi Kuo, an Apple analyst at research firm TF Securities, said on Twitter that, according to his checks, the product involved could be Apple's AirPods Pro 2. "Goertek's suspension of production is more likely due to production issues rather than demand issues," he said.
Apple and Goertek, whose clients also include Samsung and Microsoft, did not immediately reply to requests for comment.
Goertek rivals Luxshare 002475.SZ and AAC Technologies 2018.HK jumped as high as 4.6% and 14.6%, respectively, before paring gains. The two companies were up about 0.5% and 5%, respectively, near the end of the morning session.
($1 = 7.2520 Chinese yuan renminbi)
(Reporting by Josh Ye; Editing by Bradley Perrett)
((Josh.Ye@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.
|
By Josh Ye HONG KONG, Nov 9 (Reuters) - Shares in Goertek Inc 002241.SZ tumbled on Wednesday after the China-based supplier for companies such as Apple AAPL.O and Meta Platforms META.O said an unidentified overseas client had asked it to suspend assembly work for a smart acoustic product. Goertek said late on Tuesday it had received the notice from a "major overseas client", without disclosing the identity of the customer or product. Apple and Goertek, whose clients also include Samsung and Microsoft, did not immediately reply to requests for comment.
|
By Josh Ye HONG KONG, Nov 9 (Reuters) - Shares in Goertek Inc 002241.SZ tumbled on Wednesday after the China-based supplier for companies such as Apple AAPL.O and Meta Platforms META.O said an unidentified overseas client had asked it to suspend assembly work for a smart acoustic product. Goertek said late on Tuesday it had received the notice from a "major overseas client", without disclosing the identity of the customer or product. "Goertek's suspension of production is more likely due to production issues rather than demand issues," he said.
|
By Josh Ye HONG KONG, Nov 9 (Reuters) - Shares in Goertek Inc 002241.SZ tumbled on Wednesday after the China-based supplier for companies such as Apple AAPL.O and Meta Platforms META.O said an unidentified overseas client had asked it to suspend assembly work for a smart acoustic product. Goertek said late on Tuesday it had received the notice from a "major overseas client", without disclosing the identity of the customer or product. "Goertek's suspension of production is more likely due to production issues rather than demand issues," he said.
|
By Josh Ye HONG KONG, Nov 9 (Reuters) - Shares in Goertek Inc 002241.SZ tumbled on Wednesday after the China-based supplier for companies such as Apple AAPL.O and Meta Platforms META.O said an unidentified overseas client had asked it to suspend assembly work for a smart acoustic product. Goertek said late on Tuesday it had received the notice from a "major overseas client", without disclosing the identity of the customer or product. The suspension would impact up to 3.3 billion yuan ($455.05 million) in revenue, equivalent to about 4.2% of the company's total revenue in 2021, it said.
|
18511.0
|
2022-11-08 00:00:00 UTC
|
7 No-Brainer Retirement Stocks to Buy for 2023 and Beyond
|
AAPL
|
https://www.nasdaq.com/articles/7-no-brainer-retirement-stocks-to-buy-for-2023-and-beyond
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The incredible volatility in the market can open doors for investors looking at various income-generating opportunities right now. In the world of stocks, a number of high-quality retirement-centric investments should be on the radar, given the market’s tilt toward defensive, lower-risk assets. Right now, investing in no-brainer retirement stocks regardless of the market downturn may be the painful, yet profitable, action.
I define no-brainer retirement stocks as those companies with an incredibly consistent track record of rewarding shareholders. These rewards can include dividends, share buybacks, or capital appreciation over time. Investing in such stocks will enable investors to grow their wealth and ensure a smooth retirement.
It’s often the more established ideas that flourish as retirement stocks. Consequently, in compiling this list, you’ll find some of the most popular names in the stock market that continue to grow investor wealth at a remarkable pace each year. That said, let’s look at seven no-brainer retirement stocks you should wager on for the long-haul.
BCBP BCB Bancorp $19.83
AAPL Apple $141.19
BRK-B Berkshire Hathaway $294.15
MRK Merck $101.55
KMI Kinder Morgan $18.38
IBM International Business Machines $140.66
MKC McCormick & Co. $81.28
BCB Bancorp (BCBP)
Source: Andreas Prott / Shutterstock
BCB Bancorp (NASDAQ:BCBP) is a leading regional bank with branches spread across New Jersey and New York. BCBP stock offers investors a solid forward dividend yield of 3.2%, with two years of dividend expansion. Moreover, the company’s payout ratio of 24.6% indicates massive room for dividend growth. Also, the stock sports a low valuation, trading at 2.8-times forward sales.
In its most recent quarter, BCB posted a healthy 24% bump in revenues, with considerable expansion in net incomes. The company reported stellar loan growth in the first nine months this year and is expected to see strong growth and margin expansion over the next several months. Furthermore, the firm is investing heavily in its digital capabilities, which should solidify its balance sheet.
Apple (AAPL)
Source: WeDesing / Shutterstock.com
Consumer electronics giant Apple (NASDAQ:AAPL) has been an incredible business and wealth compounder for long-term investors. Apple’s eye-catching shareholder rewards have been driven by its robust business, which continues to produce consistently-growing earnings and revenues. Looking at APPL stock’s impressive 250% rise over the past few years, it’s easy to forget about the rather lackluster performance this stock (and the market in general) has seen of late.
Interestingly, Apple is one of the few tech companies that pays a quarterly dividend. This dividend distribution has grown for nine consecutive years, now yielding roughly 0.6%. Moreover, the company is a heavy purchaser of its own shares, buying back more of its stock than any other entity in the U.S. Last year, it spent a whopping $85.5 billion in buybacks, and followed it up with $90 billion in 2022. With its business as strong as ever, I expect that number to grow consistently for the foreseeable future, making AAPL stock a no-brainer retirement investment.
Berkshire Hathaway (BRK-B)
Source: Jonathan Weiss / Shutterstock.com
Investing mogul Warren Buffett isn’t infallible, but his impeccable track record as the CEO of conglomerate Berkshire Hathaway (NYSE:BRK-B) suggests otherwise. Under his leadership, Berkshire has delivered a spectacular 20.1% annual average return, making it one of the most attractive long-term holdings for any investor.
Buffet has done a remarkable job of picking stocks that have stood the test of time and continue to deliver above-average returns. Berkshire’s investment portfolio includes multiple cyclical stocks that align with the U.S. economy. Periods of expansion are typically much longer than recessions, making cyclical stocks tremendous bets.
Another aspect of the company portfolio is it’s packed with reliable dividend stocks. The company will collect more than $5 billion in dividend income this year, which adds a superb buffer, given the current economic climate.
Merck (MRK)
Source: Atmosphere1 / Shutterstock.com
Merck (NYSE:MRK) is one of the most successful and profitable drug makers that has flown under the radar due to the buzz surrounding the coronavirus vaccines. Merck’s most popular drug in its portfolio is Keytruda, a lucrative cancer treatment that forms a huge portion of its colossal revenue base. Moreover, the company’s Papillomavirus vaccine called Gardasil has impressively complemented sales of Keytruda over the years. Hence, Merck boasts a marvelous track record, growing sales and EBITDA by 9.5% and 15.5%, respectively, year-over-year.
In its most recent quarter, company sales shot up 14% from the prior-year period to $14 billion, generating earnings per share of $1.85, 14 cents over consensus estimates. Sales from Keytruda climbed 26% to $5.4 billion, while Gardasil’s sales rose 20% on a year-over-year basis, excluding a $2.3 billion charge. Its magnificent results have allowed Merck to maintain its A-graded dividend profile, with a dividend yield of over 2.7% and 11 consecutive years of growth in its payouts.
Kinder Morgan (KMI)
Source: JHVEPhoto / Shutterstock.com
Kinder Morgan (NYSE:KMI) is a top midstream player in the energy sector. The company has interests in or owns 141 terminals, as well as 83,000 miles of pipelines. The current robust pricing environment for commodities has allowed the firm to produce stellar results in recent quarters. Indeed, I think the recent strength we’ve seen in fuel prices is likely to continue for the foreseeable future, making Kinder Morgan a business that’s relatively resilient to economic headwinds.
Furthermore, the company’s distributable cash flows are growing at an impressive pace, indicative of the quality of its business. And distribute its cash flows Kinder Morgan has. The energy giant currently offers a remarkably 6.1% forward dividend yield with 5 years of consecutive growth in payouts. Moreover, the company paid out roughly 56.6% of its distributable cash flows as dividends, which gives it enough room to grow its payments while also making new investments in its pipeline infrastructure.
International Business Machines (IBM)
Source: JHVEPhoto / Shutterstock.com
Tech giant International Business Machines (NYSE:IBM) had long been considered an afterthought in the tech sector. Its competition had embraced the changes in the this sector, investing in new areas such as the blockchain, cloud computing, and the Internet of Things. At the same time, Big Blue maintained its popular hardware business. However, over the past couple of years, its brand has evolved and has forayed into new profitable tech industries.
Also, with IMB being a predominantly business-to-business enterprise, it has effectively shielded itself from the weaker elements of the market, such as consumer-facing offerings. The company is witnessing strong growth in the new elements of its business portfolio, including key growth areas of consulting, infrastructure, and software. Moreover, IBM offers an attractive forward yield of around 5%, and its investors have enjoyed 22 years of consecutive dividend increases.
McCormick & Co. (MKC)
McCormick & Co. (NYSE:MKC) is a leading producer of spices, condiments, and seasonings. Its brand is tied to the food industry, which enables McComick’s business to enjoy stable demand. Growth and stability are shown in its operating performance over the past five years, where it has grown its sales and earnings by single-digit margins.
The firm has expanded organically and through strategic acquisitions. Moreover, McCormick’s investment in its sales channels has allowed it to grow sales without compromising on its margins. Gross margins have dropped slightly over the years, but it hasn’t been anything too concerning. With its strong business performance, MKC offers a forward dividend yield of just under 2% and boasts 36 years of consecutive dividend increases, making this stock a dividend aristocrat worth considering for investors nearing retirement.
On the date of publication, Muslim Farooque 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.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
The post 7 No-Brainer Retirement 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.
|
With its business as strong as ever, I expect that number to grow consistently for the foreseeable future, making AAPL stock a no-brainer retirement investment. BCBP BCB Bancorp $19.83 AAPL Apple $141.19 BRK-B Berkshire Hathaway $294.15 MRK Merck $101.55 KMI Kinder Morgan $18.38 IBM International Business Machines $140.66 MKC McCormick & Co. $81.28 BCB Bancorp (BCBP) Source: Andreas Prott / Shutterstock BCB Bancorp (NASDAQ:BCBP) is a leading regional bank with branches spread across New Jersey and New York. Apple (AAPL) Source: WeDesing / Shutterstock.com Consumer electronics giant Apple (NASDAQ:AAPL) has been an incredible business and wealth compounder for long-term investors.
|
BCBP BCB Bancorp $19.83 AAPL Apple $141.19 BRK-B Berkshire Hathaway $294.15 MRK Merck $101.55 KMI Kinder Morgan $18.38 IBM International Business Machines $140.66 MKC McCormick & Co. $81.28 BCB Bancorp (BCBP) Source: Andreas Prott / Shutterstock BCB Bancorp (NASDAQ:BCBP) is a leading regional bank with branches spread across New Jersey and New York. Apple (AAPL) Source: WeDesing / Shutterstock.com Consumer electronics giant Apple (NASDAQ:AAPL) has been an incredible business and wealth compounder for long-term investors. With its business as strong as ever, I expect that number to grow consistently for the foreseeable future, making AAPL stock a no-brainer retirement investment.
|
BCBP BCB Bancorp $19.83 AAPL Apple $141.19 BRK-B Berkshire Hathaway $294.15 MRK Merck $101.55 KMI Kinder Morgan $18.38 IBM International Business Machines $140.66 MKC McCormick & Co. $81.28 BCB Bancorp (BCBP) Source: Andreas Prott / Shutterstock BCB Bancorp (NASDAQ:BCBP) is a leading regional bank with branches spread across New Jersey and New York. Apple (AAPL) Source: WeDesing / Shutterstock.com Consumer electronics giant Apple (NASDAQ:AAPL) has been an incredible business and wealth compounder for long-term investors. With its business as strong as ever, I expect that number to grow consistently for the foreseeable future, making AAPL stock a no-brainer retirement investment.
|
BCBP BCB Bancorp $19.83 AAPL Apple $141.19 BRK-B Berkshire Hathaway $294.15 MRK Merck $101.55 KMI Kinder Morgan $18.38 IBM International Business Machines $140.66 MKC McCormick & Co. $81.28 BCB Bancorp (BCBP) Source: Andreas Prott / Shutterstock BCB Bancorp (NASDAQ:BCBP) is a leading regional bank with branches spread across New Jersey and New York. With its business as strong as ever, I expect that number to grow consistently for the foreseeable future, making AAPL stock a no-brainer retirement investment. Apple (AAPL) Source: WeDesing / Shutterstock.com Consumer electronics giant Apple (NASDAQ:AAPL) has been an incredible business and wealth compounder for long-term investors.
|
18512.0
|
2022-11-08 00:00:00 UTC
|
After Hours Most Active for Nov 8, 2022 : AAPL, DIS, AFRM, T, AUY, QQQ, GOOGL, EW, CLVT, MRO, VTRS, MSFT
|
AAPL
|
https://www.nasdaq.com/articles/after-hours-most-active-for-nov-8-2022-%3A-aapl-dis-afrm-t-auy-qqq-googl-ew-clvt-mro-vtrs
|
nan
|
nan
|
The NASDAQ 100 After Hours Indicator is down -8.29 to 11,051.21. The total After hours volume is currently 91,409,921 shares traded.
The following are the most active stocks for the after hours session:
Apple Inc. (AAPL) is unchanged at $139.50, with 4,056,761 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".
Walt Disney Company (The) (DIS) is -6.59 at $93.31, with 3,606,975 shares traded. As reported by Zacks, the current mean recommendation for DIS is in the "buy range".
Affirm Holdings, Inc. (AFRM) is -2.74 at $12.90, with 3,542,311 shares traded. Smarter Analyst Reports: Marqeta Expands Partnership with Klarna Bank; Shares Gain 6.5% Pre-Market
AT&T Inc. (T) is -0.0099 at $18.56, with 3,383,023 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 82.49% of the target price of $22.5.
Yamana Gold Inc. (AUY) is +0.01 at $5.05, with 2,848,469 shares traded. As reported by Zacks, the current mean recommendation for AUY is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is -0.29 at $269.25, with 2,768,216 shares traded. This represents a 5.9% increase from its 52 Week Low.
Alphabet Inc. (GOOGL) is -0.2 at $88.70, with 2,422,658 shares traded. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
Edwards Lifesciences Corporation (EW) is unchanged at $69.69, with 2,399,762 shares traded. As reported by Zacks, the current mean recommendation for EW is in the "buy range".
Clarivate Plc (CLVT) is +0.01 at $9.64, with 2,314,085 shares traded. As reported by Zacks, the current mean recommendation for CLVT is in the "buy range".
Marathon Oil Corporation (MRO) is unchanged at $32.73, with 1,838,544 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".
Viatris Inc. (VTRS) is +0.03 at $11.13, with 1,779,642 shares traded. VTRS's current last sale is 101.18% of the target price of $11.
Microsoft Corporation (MSFT) is -0.3 at $228.57, with 1,713,985 shares traded. As reported by Zacks, the current mean recommendation for MSFT 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.
|
Apple Inc. (AAPL) is unchanged at $139.50, with 4,056,761 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Smarter Analyst Reports: Marqeta Expands Partnership with Klarna Bank; Shares Gain 6.5% Pre-Market
|
Apple Inc. (AAPL) is unchanged at $139.50, with 4,056,761 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.
|
Apple Inc. (AAPL) is unchanged at $139.50, with 4,056,761 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". AT&T Inc. (T) is -0.0099 at $18.56, with 3,383,023 shares traded.
|
Apple Inc. (AAPL) is unchanged at $139.50, with 4,056,761 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 -8.29 to 11,051.21.
|
18513.0
|
2022-11-08 00:00:00 UTC
|
Should You Invest in the Vanguard Information Technology ETF (VGT)?
|
AAPL
|
https://www.nasdaq.com/articles/should-you-invest-in-the-vanguard-information-technology-etf-vgt-3
|
nan
|
nan
|
The Vanguard Information Technology ETF (VGT) was launched on 01/26/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market.
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.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 5, placing it in top 31%.
Index Details
The fund is sponsored by Vanguard. It has amassed assets over $38.22 billion, making it the largest ETF attempting to match the performance of the Technology - Broad segment of the equity market. VGT seeks to match the performance of the MSCI US Investable Market Information Technology 25/50 Index before fees and expenses.
The MSCI US Investable Market Information Technology 25/50 Index is designed to transition in and out of securities affected by pending updates to the information technology sector.
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 0.10%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.91%.
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 99.70% of the portfolio.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 24.10% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA).
The top 10 holdings account for about 61.07% of total assets under management.
Performance and Risk
So far this year, VGT has lost about -31.35%, and is down about -29.03% in the last one year (as of 11/08/2022). During this past 52-week period, the fund has traded between $300.84 and $466.10.
The ETF has a beta of 1.14 and standard deviation of 31.27% for the trailing three-year period, making it a medium risk choice in the space. With about 377 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Information Technology 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, VGT 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.
IShares U.S. Technology ETF (IYW) tracks Dow Jones U.S. Technology Index and the Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index. IShares U.S. Technology ETF has $7.67 billion in assets, Technology Select Sector SPDR ETF has $37.15 billion. IYW has an expense ratio of 0.39% and XLK 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
Vanguard Information Technology ETF (VGT): ETF Research Reports
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
iShares U.S. Technology ETF (IYW): 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, Apple Inc. (AAPL) accounts for about 24.10% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Apple Inc. (AAPL): Free Stock Analysis Report It has amassed assets over $38.22 billion, making it the largest ETF attempting to match the performance of the Technology - Broad segment of the equity market.
|
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 24.10% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Apple Inc. (AAPL): Free Stock Analysis Report The Vanguard Information Technology ETF (VGT) was launched on 01/26/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market.
|
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 24.10% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Apple Inc. (AAPL): Free Stock Analysis Report IShares U.S. Technology ETF (IYW) tracks Dow Jones U.S. Technology Index and the Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index.
|
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 24.10% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Apple Inc. (AAPL): Free Stock Analysis Report The Vanguard Information Technology ETF (VGT) was launched on 01/26/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market.
|
18514.0
|
2022-11-08 00:00:00 UTC
|
China's COVID epicentre shifts to Guangzhou as outbreaks widen
|
AAPL
|
https://www.nasdaq.com/articles/chinas-covid-epicentre-shifts-to-guangzhou-as-outbreaks-widen
|
nan
|
nan
|
By Ryan Woo
BEIJING, Nov 8 (Reuters) - New coronavirus cases surged in Guangzhou and other Chinese cities, official data showed on Tuesday, with the global manufacturing hub becoming China's latest COVID-19 epicentre and testing the city's ability to avoid a Shanghai-style lockdown.
Nationwide, new locally transmitted infections climbed to 7,475 on Nov. 7, according to China's health authority, up from 5,496 the day before and the highest since May 1. Guangzhou accounted for nearly a third of the new infections.
The increase was modest by global standards but significant for China, where outbreaks are to be quickly tackled when they surface under its zero-COVID policy. Economically vital cities, including the capital Beijing, are demanding more PCR tests for residents and locking down neighbourhoods and even districts in some cases.
The sharp rebound will test China's ability to keep its COVID measures surgical and targeted, and could dampen investors' hopes that the world's second-largest economy could ease curbs and restrictions soon.
"We are seeing a game between rising voices for loosening controls and rapid spreading of COVID cases," said Nie Wen, a Shanghai-based economist at Hwabao Trust.
Considering how the nationwide COVID curbs are crushing domestic consumption, Nie said he had downgraded his fourth-quarter economic growth forecast to around 3.5% from 4%-4.5%. The economy grew 3.9% in July-September.
The rising case load dragged on China's stock markets on Tuesday, but shares have not yet surrendered last week's big gains.
Investors see China's beaten-down markets as an attractive prospect as a global slowdown looms, and have focused on small clues of gradual change - such as more targeted lockdowns and progress on vaccination rates.
"No matter how harsh the letter of the law is...there is a little bit more loosening," said Damien Boey, chief macro strategist at Australian investment bank Barrenjoey.
NO FULL LOCKDOWN YET
Guangzhou, capital of Guangdong province, reported 2,377 new local cases for Nov. 7, up from 1,971 the previous day. It was a dramatic jump from double-digit increases two weeks ago.
Surging case numbers in the sprawling southern city, dubbed the "factory floor of the world", means Guangzhou has surpassed the northern Inner Mongolia city of Hohhot to become China's COVID epicentre, in its most serious outbreak ever.
Many of Guangzhou's districts, including central Haizhu, have imposed varying levels of curbs and lockdowns. But, so far, the city has not imposed a blanket lockdown like the one in Shanghai earlier this year.
Shanghai, currently not facing a COVID resurgence, went into a lockdown in April and May after reporting several thousand new infections daily in the last week of March.
"We have been working from home for the past couple of days," said Aaron Xu, who runs a company in Guangzhou.
"Only a few compounds have been locked up so far. Mostly we are seeing disruptions in the form of public transit services being suspended and compound security barring couriers and food delivery. And we have to do PCR tests every day."
RISING CASES
In Beijing, authorities detected 64 new local infections, a small uptick relative to Guangzhou and Zhengzhou, but enough to spark a new burst of PCR tests for many of its residents and a lockdown of more buildings and neighbourhoods.
"The lockdown situation has continued to deteriorate quickly across the country over the past week, with our in-house China COVID lockdown index rising to 12.2% of China's total GDP from 9.5% last Monday," Nomura wrote in a note on Monday.
Zhengzhou, capital of central Henan province and a major production base for Apple AAPL.O supplier Foxconn 2317.TW, reported 733 new local cases for Nov. 7, more than doubling from a day earlier.
In the southwest metropolis of Chongqing, the city reported 281 new local cases, also more than doubling from 120 a day earlier.
In the coal-producing region of Inner Mongolia, the city of Hohhot reported 1,760 new local cases for Nov. 7, up from 1,013 a day earlier.
(Reporting by Ryan Woo, Bernard Orr, Liz Lee and Jing Wang; Additional reporting by Josh Ye in Hong Kong and Tom Westbrook in Singapore; Editing by Raju Gopalakrishnan, Stephen Coates and Raissa Kasolowsky)
((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.
|
Zhengzhou, capital of central Henan province and a major production base for Apple AAPL.O supplier Foxconn 2317.TW, reported 733 new local cases for Nov. 7, more than doubling from a day earlier. The sharp rebound will test China's ability to keep its COVID measures surgical and targeted, and could dampen investors' hopes that the world's second-largest economy could ease curbs and restrictions soon. Investors see China's beaten-down markets as an attractive prospect as a global slowdown looms, and have focused on small clues of gradual change - such as more targeted lockdowns and progress on vaccination rates.
|
Zhengzhou, capital of central Henan province and a major production base for Apple AAPL.O supplier Foxconn 2317.TW, reported 733 new local cases for Nov. 7, more than doubling from a day earlier. Economically vital cities, including the capital Beijing, are demanding more PCR tests for residents and locking down neighbourhoods and even districts in some cases. Guangzhou, capital of Guangdong province, reported 2,377 new local cases for Nov. 7, up from 1,971 the previous day.
|
Zhengzhou, capital of central Henan province and a major production base for Apple AAPL.O supplier Foxconn 2317.TW, reported 733 new local cases for Nov. 7, more than doubling from a day earlier. By Ryan Woo BEIJING, Nov 8 (Reuters) - New coronavirus cases surged in Guangzhou and other Chinese cities, official data showed on Tuesday, with the global manufacturing hub becoming China's latest COVID-19 epicentre and testing the city's ability to avoid a Shanghai-style lockdown. Surging case numbers in the sprawling southern city, dubbed the "factory floor of the world", means Guangzhou has surpassed the northern Inner Mongolia city of Hohhot to become China's COVID epicentre, in its most serious outbreak ever.
|
Zhengzhou, capital of central Henan province and a major production base for Apple AAPL.O supplier Foxconn 2317.TW, reported 733 new local cases for Nov. 7, more than doubling from a day earlier. Economically vital cities, including the capital Beijing, are demanding more PCR tests for residents and locking down neighbourhoods and even districts in some cases. The sharp rebound will test China's ability to keep its COVID measures surgical and targeted, and could dampen investors' hopes that the world's second-largest economy could ease curbs and restrictions soon.
|
18515.0
|
2022-11-08 00:00:00 UTC
|
Stock Buybacks: Who's Doing Them Well?
|
AAPL
|
https://www.nasdaq.com/articles/stock-buybacks%3A-whos-doing-them-well
|
nan
|
nan
|
In this podcast, Motley Fool analysts Dylan Lewis and John Rotonti take a look at two companies that are expert capital allocators and one company that's made some expensive buybacks.
They discuss:
The only four uses for free cash flow.
Why management teams often struggle to do share repurchases well.
How Apple became a "shining example" of superior capital allocation.
One less familiar company that's executed buybacks well.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than 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 September 30, 2022
This video was recorded on Nov. 05, 2022.
Dylan Lewis: It's hard to understate how excellent that program has been and how massive it's been. I mean, they have bought back in their own stock the equivalent of most companies market caps many times over.
John Rotonti: Most. I mean, they bought back more than a Visa, Dylan.
Dylan Lewis: It's incredible.
John Rotonti: They've bought back more than a Visa.
Chris Hill: I'm Chris Hill, and that's Dylan Lewis and John Rotonti. Buybacks are one of the best ways to return capital to shareholders, but only if they're done well. On today's show, we're taking a look at share buybacks and the companies giving you a larger slice of the pie. Dylan and John zoomed in on two companies that have done a great job of buying back their own stock and one that may have made some expensive mistakes.
Dylan Lewis: Before we get into the nitty-gritty, I think we should probably spend some time talking about what we're talking about with capital allocation and specifically what capital is being allocated here by companies.
John Rotonti: To understand capital allocation and the priorities for how companies allocate their capital, we first need to define free cash flow because that's where capital allocation comes from. Free cash flow is the cash flow available to all claimholders, so both equityholders and debtholders, after the company has reinvested in growth, so after the company has invested to maintain and grow its assets. One of the things that I think a lot of investors misunderstand is they think that companies are reinvesting their free cash flow. That is incorrect. Remember, free cash flow is after reinvestment, and that reinvestment takes the form of anything, research and development, working capital, capital expenditures, even acquisitions.
Free cash flow is the free, unencumbered cash that is leftover after investing for growth. There's only four things that company can do with that free cash flow. One is it can pay a dividend. Two is it can pay down debt, repay debt. Three is it can repurchase stock or buyback stock. Then four is it can let it build up on the balance sheet. There are no other uses for free cash flow. The most creative companies in the world could not come up with another use. Those are the only four uses of real true free cash flow. Then the question of capital allocation is, how does a company prioritize those uses? Does it prioritize dividends? Does it prioritize paying down debt? Or does it prioritize buying back stock, which is what we're going to dive into here today?
Dylan Lewis: Yeah. I think the reason that this is so important and why capital allocation is so often directly associated with the management team is it gets outside of a little bit of the day-to-day of the business and starts to focus a little bit more on what the business is building too and also financially how this business wants to exist, wants to sell itself to people in the market. Do they want to be known as a company that pays a dividend? Do they want to be an aggressive repurchaser of their own stock? Do they want to be a company that is aggressively shoveling money into their marketing and then not even having the option and deciding through these things? It's a way that we can zoom in on the financials to understand some of the priorities of management teams.
John Rotonti: You're exactly right. When we do a deep dive into the cash flow statement, each of the potential uses of free cash flow is a line item on the cash flow statement. Repay debt is a line item on the cash flow statement. Common dividends paid or total dividends paid is a line item on the cash flow statement, and repurchase of shares is a line item on the cash flow statement. So if you look at the cash flow statement, you can literally see what a company's capital allocation priorities are. You don't have to ask management, it's right there. If they're spending more every year on buybacks and dividends, you can see that buybacks are a priority. If they're spending more on dividends and buybacks, you can see dividends are a priority. Warren Buffett, Dylan, has shared his thoughts on the most value accretive uses of free cash flow. Here's one or two quotes from Buffett himself in his 2012 letter to shareholders.
He says quote, "We like increased dividends and we love repurchases at appropriate prices." Two other quotes from his, well, this is also one from his 2011 letter to shareholders, "It doesn't suffice to say that repurchases are being made to offset the dilution from stock issuances or simply because a company has excess cash. Continuing shareholders are hurt unless shares are purchased below intrinsic value. The first law of capital allocation, whether the money is slated for acquisitions or share repurchases, is that what is smart at one price is dumb at another." Then finally, my last quote also from Buffett, "Repurchases is sensible for a company when it shares sell at a meaningful discount to conservatively calculated intrinsic value. Indeed, disciplined repurchases are the surest way to use funds intelligently. It's hard to go wrong when you're buying dollar bills for 80 cents or less." There's Warren Buffett himself saying repurchases are the single best use of capital when done intelligently, Dylan.
Dylan Lewis: I like that Buffett specifies in that first quote. He likes dividends, loves share repurchases. A big part of that, John, is the dividends are great. You can receive a payment. Sometimes it's a onetime payment, sometimes it's an ongoing payment from a company, but that is generally seen as a onetime use of cash, whereas buybacks create an ongoing benefit for shareholders and for the company.
John Rotonti: They create an ongoing benefit for continuing shareholders, shareholders that don't sell out, if done at appropriate prices. Yes, that's 100 percent correct.
Dylan Lewis: I think to zoom in on the mechanics here, we're talking about going out and removing the number of shares outstanding or reducing the number of shares outstanding. The reason that that can continue to benefit people who continued on the stock is your stake in the business gets a little bit bigger. You own a little bit larger piece of the pie with these companies. Before we start getting into some examples of companies that have done this well and companies that have not necessarily done this so well over the last years, the prevailing thought and the reason that I think people are willing to give management teams leash to buyback shares is in addition to the economic benefits, John, we typically think of management companies as being as dialed in and as aware of the health of their business as anybody. Who better to be making decisions about being able to buyback shares and allocate capital correctly than the C-suite? Otherwise, why would they be there?
John Rotonti: You're exactly right, Dylan. You would think management understands their company best, the company prospects best, and also the intrinsic value of the business best. Unfortunately, there's data, there is research showing that a lot of times, corporate America will buyback stock at the wrong time. They will buyback the most stock when stock prices are high and surging, and then they will take their foot off of the buyback pedal when stock prices are attractively valued and falling. There's many reasons for that. One is psychological. When everything is going well and your stock's going up, you think it's going to continue to go for a while. That's its recency bias, it's a psychology thing. The other reason is incentives. Sometimes management teams are not incentivized to do what is best for long-term value creation and long-term shareholder value. Sometimes they are not incentivized to increase earnings per share over a short period of time. One way to do that may be to repurchase stock, even if it's at a high price. Those high priced buybacks could destroy value in the long-term, but inflate earnings per share in the short-term. It also comes down to incentives.
Dylan Lewis: We're going to try to learn a little bit here. Learn from the best. Maybe learn from an example or two more recently that I have some issues with. Let's start with one of those shining examples. There is, I think one company that immediately comes to mind, John, when you think about share repurchases. It is simply just because of the scale that they have bought back stock on over the last decade, and that's Apple.
John Rotonti: It's Apple. I think it's also a great segue because we were just talking about Warren Buffett and his thoughts on buybacks. It also happens that Apple is his largest stockholding. I don't know if it's 150 billion or where it is, but it's a very, very large amount. He says he loves buybacks at appropriate prices. That was a Buffett quote. Apple is an example of that. They started buying back stock in 2012 and since then they've purchased a trillion dollars worth of their stock. By the way, it's allocated about another $100 billion to dividends over that time period, but we're going to focus on the buybacks here. Right now, Apple is allocating about $90 billion a year toward buybacks and other 14 billion toward dividends. Over that time frame, basically, their fiscal 2013 through fiscal year end 2021, Apple's fully diluted shares outstanding have gone from about 26 billion to about 16.8 billion.
Apple has bought back over 35 percent of shares outstanding and has been reducing the share count by an average of about five percent per year over the past decade. This is real return of cash to shareholders and not just buying back stock to offset dilution. Apple spent about $486 billion buying in 9.2 billion shares fully diluted. That's an average price of about $53 per share, Dylan. Fifty three dollars is the average price Apple has paid to buyback stock. If you want to round up to 55, let's just do that. Round up to 55, that compares to a stock price today of about $145 per share. Apple is a shining example of superior capital allocation. I cannot think of a better CEO for where Apple is in its life cycle than Tim Cook. He is just doing a fantastic job with both operating the business and capital allocation.
Dylan Lewis: It's hard to understate how excellent that program has been and how massive it's been. They have bought back in their own stock the equivalent of most companies' market caps, many times.
John Rotonti: No. They bought back more than a Visa, Dylan.
Dylan Lewis: It's incredible.
John Rotonti: They've bought back more than a Visa. It's incredible. Visa does not have a market cap of 500 billion.
Dylan Lewis: To put some numbers to what that does. Look over the last five years, 2017-2022, company's net income has gone from about $48 billion to $99 billion.
John Rotonti: Wow.
Dylan Lewis: Over that same period, earnings per share have gone from $2.32 to trailing 12 months, $6.10 on basic EPS level. Your earnings-per-share growth is outpacing net income because the number of shares that you're out there with have gone down. I think one of the other interesting elements, and this gets lost just because Apple's dividend is so small, the yield is so small even though the payment itself is actually quite large. Apple's dividend per share is up 30 percent from 2018, so on a per share basis. The total amount of money that Apple pays in dividends is only up seven percent during the same period.
John Rotonti: Per share value
Dylan Lewis: Yeah, 4.5 billion shares have been retired over that time. It's been an ongoing benefit because people own more. It also means that the company hasn't had to pay out nearly as much overall to satisfy the requirements. They've been able to grow their dividend.
John Rotonti: Yeah, Dylan. Just to put some numbers on it, like you said, through their fiscal year end 2021, their net income grew at a five-year compounded annual growth rate of 16 percent. Their earnings per share grew at a compound annual growth rate of 22 percent. The Delta between the 16 percent growth in net income and a 22 percent growth in earnings per share was from buybacks.
Dylan Lewis: That's real. That is a real benefit that shareholders feel appreciated and it's demonstrated in the performance of the stock. It's the largest company in the world. If you look at how much their market cap has increased compared to their stock price, the stock price has gone up a lot more because of those buybacks. Apple will be the first company to return one trillion dollars in capital through dividends and buybacks.
John Rotonti: It's hard to believe.
Dylan Lewis: We followed the story for a while. This is not new, this share repurchase program. I think even five years ago, if you told me that that was the number they were going to hit, I'd have a hard time believing you.
John Rotonti: Yeah, totally.
Dylan Lewis: The Apple share repurchase story is, I'll say a little well-won, John. People know it. I also want to give people maybe a story that they're a little bit less familiar with as an example of share repurchases done well.
John Rotonti: I would say even done better than Apple. The example I have is O'Reilly ticker, ORLY, that's O'Reilly Automotive. This is a company that I tweet about all the time because it's one of my top holdings. It has increased it's return on invested capital for 12 straight years. That is driven by an upward trend in both its no-pat margins or net operating profit after-tax margins and its invested capital turnover. Basically, that means the increase in return on invested capital is coming from higher profit margins as well as better balance sheet efficiency. It also has a negative cash conversion cycle and generates more free cash flow than it knows what to do with.
Its core earnings, Dylan, have grown every year for 23 consecutive years, yet a lot of investors think it's going to be disrupted or something like that. If it is, that disruption is happening at a glacial pace. In the meantime, the company continues to grow profitably at extremely high returns on invested capital, year-in and year-out. I've owned it for a decade. I've owned for longer than I've owned Apple. People have been telling me, Dylan, to sell this stock the entire time I've owned it for over a decade because EVs are going to put the company out of business. I just keep ignoring them honestly and thank goodness, because have you seen how well the stock price has held up this year when pretty much everything else is getting smashed? Anyway, O'Reilly is, just like Apple, a superior operator and a superior capital allocator.
It does not pay a dividend. Apple pay to dividend, O'Reilly does not pay a dividend, so its priority for allocating free cash flow is clearly share repurchases and paying down debt, but we're going to focus on the buybacks here. It started buying back stock in 2011 and through year end 2021, it has spent $16.7 billion buying back 67 million shares. Over that time, its fully diluted share count went from 137 million down to 70 million. It reduced its shares by 67 million. That means that over those 11 years, it repurchased stock at an average stock price of about $250 compared to its stock price today of about $800. Over that time they repurchased 49 percent of its shares outstanding and reduce the share count by an average of about seven percent per year. I mean, Dylan, you cannot make this stuff up.
Dylan Lewis: It's incredible and it's a put plainly. People who have owned the stock that entire time have seen their share of the business essentially double.
John Rotonti: Yes. That's exactly right.
Dylan Lewis: Which there are not very many businesses you can say that for.
John Rotonti: No, and you didn't have to buy that, you'd have to buy an additional share. Your ownership of the business doubled just because of the buybacks that company is doing on your behalf if you're continuing shareholder.
Dylan Lewis: I'm curious John, O'Reilly is a little bit of a lesser known name. Was this something where you were following the company, interested in the company, and then found that they were good capital allocators? Or did you becoming a shareholder start with identifying that they were great capital allocators and then getting interested in the business?
John Rotonti: I don't remember exactly. It's a really good question. I've owned it for over a decade, like I said. I do remember how I first came across it. It was owned by Chuck Akre at the time and so I was reading one of his letters or I had seen one of his interviews. He said he was an owner of O'Reilly Automotive and then I started doing my research. I assume that at some point, doing my research a decade ago, I discovered they were a pretty good capital allocator and over those last 10 years, I think they've gotten even better. Probably a little combination of both.
Dylan Lewis: To turn things around a little bit and look at some buybacks that I think probably haven't gone quite as well or maybe buybacks done poorly. This may not be a surprise for folks that been following earnings season in the new cycle recently. Meta has been catching a lot of bad headlines, John, and I think that their buybacks over the last 12-16 months have not been great to put it mildly. The company has spent $48 billion in repurchasing shares, roughly 158 million shares, as part of that. This was all prior to them reporting earnings. Roughly an average price of $300 a share.
Now after a disappointing earnings report, we are seeing shares at around $100 and we know that from the recent earnings report they bought back another 6.5 billion in the most recent quarter. We're looking at over $50 billion over the last, we'll call it 16 months, that they've repurchased, most of which at multiples from where the stock is right now. I think it's hard to know for sure until we're years out, in the same way that it takes a while for us to know as individual investors whether our thesis has played out and we need 3, 5, 10 years but I would just look at those numbers and say, I'm not sold, that those were great capital allocation decisions by this management team.
John Rotonti: Yeah. They definitely look poorly timed. In the very least, they look poorly timed. I guess two things I'll say about this is while they were doing these buybacks over the last 12, 18 months, like you said, I read a research report from Poland Capital, which excellent stock-picking firm based out of Florida and they did some of the parts analysis on Facebook and they said that they thought core Facebook, so not Instagram, not WhatsApp, not metaverse, not Oculus. They thought core Facebook was trading at four times earnings over the last year and so that's cheap. That's really, really cheap.
Dylan Lewis: That's incredibly cheap.
John Rotonti: Based on their analysis. I'm sorry, Meta. Maybe Meta executives had a similar analysis and thought that their stock was incredibly undervalued and so they bought back $50 billion worth of stock. On the other hand, they are going through a massive business model transformation. It's uncertain how it's going to play out Dylan. It's uncertain how it's going to play out. When going through such a transformation, that is not only uncertain, but extremely capital-intensive. One could argue that Facebook should have conserved some of its cash flow just because it's doing something so uncertain.
Dylan Lewis: I think that's part of my issue with it honestly, is the headline is they could have bought back 2-3 times as many shares as they did.
John Rotonti: Yeah.
Dylan Lewis: With that same amount of money based on the levels they're at right now. I have to think that at some point in late calendar 2021, early calendar 2022, when the vast majority of these repurchases were happening, the management team there was probably starting to see some indications of a business slowdown. That would be my guess.
John Rotonti: It's more than a slowdown. Apple privacy changes disrupted Meta's business model. It disrupted the business model. Along with a lot of other advertising, digital advertising businesses, mobile first digital advertising businesses and so yes, it's more than a slowdown. It's a business model disruption in my opinion.
Dylan Lewis: The company was trading at all-time highs in late 2021 when a lot of these repurchases were happening and so I think strictly on a financial basis, I think you could easily criticize the decision.
John Rotonti: I agree.
Dylan Lewis: But John, I think you're right. I think the meat of this and the frustrating part of it is they had a lot of cash on hand, and it's a lot easier to try things out when you have a lot of cash on it and they decided that in addition to a massive strategic pivot and a pivot that was going to require a lot of spending.
John Rotonti: Yeah, a lot.
Dylan Lewis: A lot of spending on highly speculative business lines kept. They were also going to put tens of billions of dollars to work buying back shares in excess of any stock-based compensation. This was aggressive buybacks. These were not buybacks that were simply keeping the share count roughly where it should be.
John Rotonti: It was very aggressive. Like we said, at a very uncertain time in the businesses life, they don't look good right now, don't they? They don't look good. It's going to take a while to see where the stock price ends up and how these buybacks turned out.
Dylan Lewis: I mean, what's incredible is for dogging them on this capital allocation decision, the company has $40 billion in cash sitting on the balance sheet.
John Rotonti: Forty billion in cash, what against like 20-ish billion in debt and leases. I haven't looked but I think it's about 20.
Dylan Lewis: Yes and I think 10 billion of that is new. They just put out their first-ever bond offering, which is another reason I was surprised by the share purchase program. You indicate that, not you Meta indicates that was to fund buybacks and also company investments. I would rather, if that's the route they're going to go scale back on the buybacks.
John Rotonti: I agree.
Dylan Lewis: Focus on high conviction business ideas and if you're going to be aggressive with buybacks, paste it out and be able to do it during a period where your company stock has fallen dramatically.
Chris Hill: As always, people on the program may have interest in the stocks they talk about and the Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. I'm Chris Hill. Thanks for listening. We'll see you tomorrow.
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. Chris Hill has positions in Apple and Visa. Dylan Lewis has positions in Apple. John Rotonti has positions in Apple, Meta Platforms, Inc., OReilly Automotive, and Visa. The Motley Fool has positions in and recommends Apple, Meta Platforms, Inc., 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.
|
Two other quotes from his, well, this is also one from his 2011 letter to shareholders, "It doesn't suffice to say that repurchases are being made to offset the dilution from stock issuances or simply because a company has excess cash. Dylan Lewis: The company was trading at all-time highs in late 2021 when a lot of these repurchases were happening and so I think strictly on a financial basis, I think you could easily criticize the decision. Dylan Lewis: Focus on high conviction business ideas and if you're going to be aggressive with buybacks, paste it out and be able to do it during a period where your company stock has fallen dramatically.
|
Common dividends paid or total dividends paid is a line item on the cash flow statement, and repurchase of shares is a line item on the cash flow statement. Over that time frame, basically, their fiscal 2013 through fiscal year end 2021, Apple's fully diluted shares outstanding have gone from about 26 billion to about 16.8 billion. Apple pay to dividend, O'Reilly does not pay a dividend, so its priority for allocating free cash flow is clearly share repurchases and paying down debt, but we're going to focus on the buybacks here.
|
In this podcast, Motley Fool analysts Dylan Lewis and John Rotonti take a look at two companies that are expert capital allocators and one company that's made some expensive buybacks. John Rotonti: To understand capital allocation and the priorities for how companies allocate their capital, we first need to define free cash flow because that's where capital allocation comes from. Before we start getting into some examples of companies that have done this well and companies that have not necessarily done this so well over the last years, the prevailing thought and the reason that I think people are willing to give management teams leash to buyback shares is in addition to the economic benefits, John, we typically think of management companies as being as dialed in and as aware of the health of their business as anybody.
|
Three is it can repurchase stock or buyback stock. I think the reason that this is so important and why capital allocation is so often directly associated with the management team is it gets outside of a little bit of the day-to-day of the business and starts to focus a little bit more on what the business is building too and also financially how this business wants to exist, wants to sell itself to people in the market. John Rotonti: Per share value Dylan Lewis: Yeah, 4.5 billion shares have been retired over that time.
|
18516.0
|
2022-11-08 00:00:00 UTC
|
Netflix explores investing in live sports, bids for streaming rights- WSJ
|
AAPL
|
https://www.nasdaq.com/articles/netflix-explores-investing-in-live-sports-bids-for-streaming-rights-wsj
|
nan
|
nan
|
Nov 8 (Reuters) - Netflix Inc NFLX.O is exploring investments in live sports broadcasting and has recently bid for the streaming rights for sports leagues, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.
The company recently bid for the streaming rights for the ATP tennis tour for some European countries, including France and the U.K., but dropped out, the report said.
Netflix declined to comment, when contacted by Reuters.
The company also discussed bidding for other events, including U.K. rights to the Women's Tennis Association and cycling competitions, and was in talks late last year to acquire the World Surf League, the WSJ said.
Netflix executives have considered buying lower-profile leagues to avoid the mounting costs of bidding for sports rights, according to the report, while some of them believe they could boost lesser-known sports into franchises given the size of the platform.
The move comes as Netflix has been struggling to add new subscribers as competition from rivals including Walt Disney Co DIS.N, Apple AAPL.O and Amazon AMZN.O increases. This month, Netflix launched an ad-backed tier in an attempt to boost revenue and subscriber growth.
Streaming platforms are also looking at live sports to gain market share in an already saturated market.
Disney and Liberty Media-owned Formula One extended their broadcast partnership last month, while Major League Soccer and Apple TV announced a partnership to stream every game on the app for the next decade.
(Reporting by Shreyaa Narayanan and Vansh Agarwal in Bengaluru; Editing by Shailesh Kuber)
((Shreyaa.Narayanan@thomsonreuters.com; Vansh.Agarwal@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.
|
The move comes as Netflix has been struggling to add new subscribers as competition from rivals including Walt Disney Co DIS.N, Apple AAPL.O and Amazon AMZN.O increases. The company recently bid for the streaming rights for the ATP tennis tour for some European countries, including France and the U.K., but dropped out, the report said. The company also discussed bidding for other events, including U.K. rights to the Women's Tennis Association and cycling competitions, and was in talks late last year to acquire the World Surf League, the WSJ said.
|
The move comes as Netflix has been struggling to add new subscribers as competition from rivals including Walt Disney Co DIS.N, Apple AAPL.O and Amazon AMZN.O increases. Nov 8 (Reuters) - Netflix Inc NFLX.O is exploring investments in live sports broadcasting and has recently bid for the streaming rights for sports leagues, the Wall Street Journal reported on Tuesday, citing people familiar with the matter. The company recently bid for the streaming rights for the ATP tennis tour for some European countries, including France and the U.K., but dropped out, the report said.
|
The move comes as Netflix has been struggling to add new subscribers as competition from rivals including Walt Disney Co DIS.N, Apple AAPL.O and Amazon AMZN.O increases. Nov 8 (Reuters) - Netflix Inc NFLX.O is exploring investments in live sports broadcasting and has recently bid for the streaming rights for sports leagues, the Wall Street Journal reported on Tuesday, citing people familiar with the matter. The company recently bid for the streaming rights for the ATP tennis tour for some European countries, including France and the U.K., but dropped out, the report said.
|
The move comes as Netflix has been struggling to add new subscribers as competition from rivals including Walt Disney Co DIS.N, Apple AAPL.O and Amazon AMZN.O increases. Nov 8 (Reuters) - Netflix Inc NFLX.O is exploring investments in live sports broadcasting and has recently bid for the streaming rights for sports leagues, the Wall Street Journal reported on Tuesday, citing people familiar with the matter. The company recently bid for the streaming rights for the ATP tennis tour for some European countries, including France and the U.K., but dropped out, the report said.
|
18517.0
|
2022-11-08 00:00:00 UTC
|
The Profit and Protection Quantitative Stock-Picking System
|
AAPL
|
https://www.nasdaq.com/articles/the-profit-and-protection-quantitative-stock-picking-system
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Here’s a deceptively simple question:
What’s the best strategy for beating the market?
Growth stocks… Deep value… Trend following… Swing trading…
Every talking head on CNBC has the magic answer — as long as you sign up for their course or buy their book.
But unlike the kids at Lake Wobegon, we know that not every stock picker is above average. Half of all stocks underperform the market. And besides, why would these minor celebrities ask you for money if their system is so profitable?
And that’s why I’m here.
Thanks to my time on Wall Street, I’ve realized that only a select few have the discipline to follow strategies for very long. The market is large enough for those like us.
It’s the reason why I’m giving my Profit & Protection strategy away for free.
In this article, we will look at what actually works in investing.
You’ll find out whether high-momentum stocks outperform…
Whether high-profit companies outperform low-profit ones…
If you should “buy the dip” or “buy into strength.”
In other words, you’re going to get the playbook that I use to help pick stocks.
And we’ll start with the most obvious question: Does growth investing work?
Part 1: Does Growth Investing Work?
Apple (NASDAQ:AAPL)… Amazon (NASDAQ:AMZN)… Netflix (NASDAQ:NFLX)…
One of the most popular investing strategies is to find promising high-growth companies and get in on the ground floor.
It’s easy to see why. $10,000 invested in “hypergrowth” companies like Chinese electric vehicle maker Nio (NYSE:NIO) in 2019 is still worth $110,000 today. That’s how my colleague Luke Lango managed to become the No. 1 rated analyst on TipRanks in 2020 with a stunning 81% success rate.
Yet these companies can also be blindingly expensive. Nio would fall 75% from its peak as electric-vehicle mania faded. And successful firms like Amazon can trade sideways for years while their fundamentals catch up to sky-high valuations.
So ultimately, who’s right? Should you buy fast-growth stocks or slow-growth ones?
To answer this question, I’ve examined financial data from the 1950s to the present day. And for building my quantitative system, I’ve included figures starting in 2013 to avoid the pre-2008 era when accounting rules were significantly different.
The results are fascinating.
Does High Sales Growth Predict Outperformance?
First, we’ll consider sales growth — one of the most straightforward signals of a fast-growing firm.
For this study, I divided companies from the broad-based Russell 3000 index into five quintiles, from the fastest-growing to the slowest, based on the prior year’s revenue growth rate. I assumed a 1-year holding period, with a purchase date 60 days after the quarter-end to allow companies to report earnings.
Here are the results for data from 2013 to 2022.
It turns out that turnaround companies win by a wide margin.
Over the past business cycle, the quintile of slowest-growing companies gained 17.1% per year, outperforming the higher-growth groups by 6%. At that rate, $10,000 invested for 10 years compounds to $48,480 over a mere $28,651.
Interestingly, growth investors also do well. The fastest-growing companies returned 12.2% during the period, suggesting that companies with high growth in the past can sustain stock returns the following year.
Put another way, investors looking for abnormal profits today need to focus on companies with abnormal growth potential.
It’s why I favor stocks in a barbell distribution — buying shares in either high-growth tech companies or low-growth turnarounds.
Does Earnings Growth Predict Outperformance?
Next, let’s consider earnings-per-share growth — a figure Wall Street often obsesses over.
This metric is somewhat trickier to analyze. Companies that lose money in one or consecutive years have no meaningful earnings “growth rate” (i.e., When a company swings from negative to positive earnings, there’s no basis for calculating a percent increase).
Net earnings figures also have some practical weaknesses. Accounting tricks like “accelerated depreciation” can disguise profits at companies like Amazon to reduce tax liabilities. And in the banking sector, super-normal profits often come from reducing provisions for bad loans — a trick that surely didn’t help companies like Lehman Brothers or Bear Stearns.
But earnings can also be a helpful guide for understanding more “typical” firms. Stable growth companies like Apple usually see multi-year improvements in their earnings, while cyclical ones like airlines or automakers will have bumpier rides
To analyze earnings growth, I again took all companies from the broad-based Russell 3000 and divided them into quintiles. Investments are bought 60 days after the quarter-end and held for a full 12 months. All companies with negative EPS were dropped from the study.
Do companies with high or low earnings growth beat the market?
Once again, turnaround companies do best. The quintile of companies with the worst earnings shrinkage rose at 18.2% over the following 12 months, 6.2% faster than other stocks.
Meanwhile, companies with past earnings increases don’t see the same boost.
Do Wall Street Analyst Projections Work?
Finally, does future growth predict stock returns?
Since no one can actually see into the future, I took the next best thing:
Analyst estimates.
These projections are the bedrock for stock valuations. Any company that “misses” earnings or revenue estimates tend to see share prices drop like stones. And millions of dollars can trade hands when a high-profile analyst changes their ratings.
To get the best data, I turn to Thomson Reuters’ I/B/E/S SmartEstimates, a gold standard of normalized analyst estimates.
Again, I take stocks from the Russell 3000, but this time the 12-month holding period begins immediately after quarter-end. Forecasters don’t have access to future filings, so we can safely transact at the quarter-end without creating accidental bias.
Thankfully, I have some good news for those high-paid analysts on Wall Street (and those who employ them):
It turns out their sales forecasts are a strong source of returns.
The top quintile of companies with the fastest expected sales growth would have returned 15.8% per year, compared to 10.1% for the lowest group.
And when it comes to earnings growth, the results are also good:
Investors focused on estimated earnings growth would have netted returns of 14.9% — much higher than the 9.5% from companies with the lowest-expected earnings growth.
The Bottom Line on Growth Investing
The data tells us that investors can beat the market by buying stocks 1) going through temporary growth slowdowns that 2) are expected to improve in the future.
The results are also robust, even for downturns. During the 2015 commodities crash, companies with the slowest earnings growth returned 20.1%, compared to the 10.9% loss for other stocks.
In other words, investors seeking superior returns should buy shares of companies with diverging growth, not those sitting in the middle.
Part 2: Does Value Investing Work?
Next we consider value investing, a concept popularized by investing legends from Warren Buffett to Peter Lynch.
In 1963, Mr. Buffett scooped up cheap shares in American Express (NYSE:AXP) after the financial firm revealed it had lost the equivalent of $1.6 billion in today’s money in a massive fraud.
The rest, as they say, is history. Value investors have been buying up shares of beaten-down companies ever since.
But…
Is buying cheap stocks a winning long-term strategy? For every American Express (or meme oil stock) that rebounds, many more seem to go straight to zero.
To answer this question, I once again turn to Thomson Reuters’ financial data. By taking information from our most recent market cycle spanning from 2013 to 2022, we can outline an updated version of what works in today’s markets.
The Price-to-Earnings (P/E) Ratio
The most famous of these “value” yardsticks is a company’s price-to-earnings ratio (also known as the P/E ratio). The metric takes a company’s share price and divides it by earnings per share. The higher the number, the more “expensive” the company.
Let’s be clear: The P/E ratio has some obvious weaknesses:
Zero or negative earnings. Non-positive earnings create nonsensical P/E ratios (i.e., a company with zero earnings will have an infinitely high P/E ratio).
Taxes and depreciation. Net earnings figures are easily massaged by talented accountants, allowing firms like Amazon to pay less in corporate profit taxes and throwing off value metrics in the process.
Debt structure. Interest payments can skew a company’s P/E ratio downwards. And P/E ratios routinely fail to capture the value of assets on the balance sheet.
Most importantly, there’s anecdotal evidence that P/E ratios have become less valuable with time. High-performing firms (and their accountants) have become more adept at hiding taxable income, and the rise of intangible assets at tech companies make shenanigans even easier to hide.
But P/E ratios remain a powerful tool. Cheap firms trading at 10x earnings are generally considered “safer” than those trading at 50x… 100x… or 500x multiples.
So without further ado, let’s dive in. For this study, I sort the same universe of Russell 3000 stocks by P/E ratio into quintiles. Companies with zero or negative earnings are ignored, and holdings are updated every twelve months.
The Results: Buy Middle-of-the-Road P/E Stocks
The results are fascinating:
Over the past 10 years, companies with middling P/E ratios performed marginally better.
There were many years of exceptions. High-P/E companies performed well during the commodity crisis of 2015 and the Covid-19 pandemic of 2020, while low P/E companies did better in 2013 and 2018.
But for an entire business cycle, the hum-drum players did best of all. A company with an “average” P/E ratio like Apple was a far better bet than big, unprofitable bets like 3D Systems (NYSE:DDD) or cheap ones like Exxon Mobil (NYSE:XOM).
The Forward Price-to-Earnings Ratio
Meanwhile, intelligent investors will quickly realize that the P/E ratio is backward-looking. Wouldn’t the future matter more?
That’s where the forward P/E ratio comes in. By considering estimated earnings, investors can supposedly get a better sense of a firm’s future value.
For this section, I use I/B/E/S earnings estimates gathered by Thomson Reuters.
Again, the results are intriguing. Over the past decade, the most expensive companies on a forward price-to-earnings basis have outperformed, albeit by only a small degree.
In a sense, it’s a reflection of America’s tech boom. Growth stocks have outperformed value for the past decade, with the S&P 500 Growth Index rising 2.25x faster than its value counterpart.
The performance of middling P/E companies might also be less pronounced because Wall Street analysts can often conflate the earnings of high-growth companies, making them look “cheaper” than they truly are.
The Price-to-Sales (P/S) Ratio
Next up is the price-to-sales ratio, a commonly used metric among deep value investors eyeing companies on the verge of bankruptcy.
It’s a historically rich vein of 10x plays, particularly among companies with >$2 billion in sales and
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple (NASDAQ:AAPL)… Amazon (NASDAQ:AMZN)… Netflix (NASDAQ:NFLX)… One of the most popular investing strategies is to find promising high-growth companies and get in on the ground floor. And in the banking sector, super-normal profits often come from reducing provisions for bad loans — a trick that surely didn’t help companies like Lehman Brothers or Bear Stearns. In 1963, Mr. Buffett scooped up cheap shares in American Express (NYSE:AXP) after the financial firm revealed it had lost the equivalent of $1.6 billion in today’s money in a massive fraud.
|
Apple (NASDAQ:AAPL)… Amazon (NASDAQ:AMZN)… Netflix (NASDAQ:NFLX)… One of the most popular investing strategies is to find promising high-growth companies and get in on the ground floor. The fastest-growing companies returned 12.2% during the period, suggesting that companies with high growth in the past can sustain stock returns the following year. And when it comes to earnings growth, the results are also good: Investors focused on estimated earnings growth would have netted returns of 14.9% — much higher than the 9.5% from companies with the lowest-expected earnings growth.
|
Apple (NASDAQ:AAPL)… Amazon (NASDAQ:AMZN)… Netflix (NASDAQ:NFLX)… One of the most popular investing strategies is to find promising high-growth companies and get in on the ground floor. Companies that lose money in one or consecutive years have no meaningful earnings “growth rate” (i.e., When a company swings from negative to positive earnings, there’s no basis for calculating a percent increase). Stable growth companies like Apple usually see multi-year improvements in their earnings, while cyclical ones like airlines or automakers will have bumpier rides To analyze earnings growth, I again took all companies from the broad-based Russell 3000 and divided them into quintiles.
|
Apple (NASDAQ:AAPL)… Amazon (NASDAQ:AMZN)… Netflix (NASDAQ:NFLX)… One of the most popular investing strategies is to find promising high-growth companies and get in on the ground floor. And when it comes to earnings growth, the results are also good: Investors focused on estimated earnings growth would have netted returns of 14.9% — much higher than the 9.5% from companies with the lowest-expected earnings growth. The Results: Buy Middle-of-the-Road P/E Stocks The results are fascinating: Over the past 10 years, companies with middling P/E ratios performed marginally better.
|
18518.0
|
2022-11-08 00:00:00 UTC
|
Pre-Market Most Active for Nov 8, 2022 : TQQQ, AAPL, SQQQ, TSLA, BAC, LYFT, RIDE, XOM, EW, AVTR, NIO, CCL
|
AAPL
|
https://www.nasdaq.com/articles/pre-market-most-active-for-nov-8-2022-%3A-tqqq-aapl-sqqq-tsla-bac-lyft-ride-xom-ew-avtr-nio
|
nan
|
nan
|
The NASDAQ 100 Pre-Market Indicator is up 61.47 to 11,038.47. The total Pre-Market volume is currently 32,547,839 shares traded.
The following are the most active stocks for the pre-market session:
ProShares UltraPro QQQ (TQQQ) is +0.24 at $18.76, with 6,448,652 shares traded. This represents a 14.95% increase from its 52 Week Low.
Apple Inc. (AAPL) is +0.64 at $139.56, with 2,226,478 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".
ProShares UltraPro Short QQQ (SQQQ) is -0.73 at $56.93, with 1,905,082 shares traded. This represents a 102.24% increase from its 52 Week Low.
Tesla, Inc. (TSLA) is -2.08 at $195.00, with 1,724,774 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 $1.1. , following a 52-week high recorded in prior regular session.
Bank of America Corporation (BAC) is +0.07 at $37.08, with 1,573,141 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 $0.85. As reported by Zacks, the current mean recommendation for BAC is in the "buy range".
Lyft, Inc. (LYFT) is -2.56 at $11.58, with 1,540,196 shares traded. LYFT's current last sale is 46.32% of the target price of $25.
Lordstown Motors Corp. (RIDE) is +0.26 at $2.11, with 1,532,238 shares traded. Smarter Analyst Reports: Lucid Under SEC Investigation; Shares Drop – Report
Exxon Mobil Corporation (XOM) is -0.15 at $113.49, with 1,418,093 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. , following a 52-week high recorded in prior regular session.
Edwards Lifesciences Corporation (EW) is -0.34 at $68.43, with 1,416,024 shares traded. As reported by Zacks, the current mean recommendation for EW is in the "buy range".
Avantor, Inc. (AVTR) is -1.6243 at $18.08, with 1,228,461 shares traded. As reported by Zacks, the current mean recommendation for AVTR is in the "buy range".
NIO Inc. (NIO) is -0.24 at $10.74, with 1,118,083 shares traded.NIO is scheduled to provide an earnings report on 11/10/2022, for the fiscal quarter ending Sep2022.
Carnival Corporation (CCL) is +0.21 at $8.97, with 683,664 shares traded. CCL's current last sale is 96.97% of the target price of $9.25.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple Inc. (AAPL) is +0.64 at $139.56, with 2,226,478 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.
|
Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. Apple Inc. (AAPL) is +0.64 at $139.56, with 2,226,478 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
|
Apple Inc. (AAPL) is +0.64 at $139.56, with 2,226,478 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022.
|
Apple Inc. (AAPL) is +0.64 at $139.56, with 2,226,478 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The following are the most active stocks for the pre-market session:
|
18519.0
|
2022-11-08 00:00:00 UTC
|
Is Roku Stock a Buy Now?
|
AAPL
|
https://www.nasdaq.com/articles/is-roku-stock-a-buy-now-2
|
nan
|
nan
|
Roku's (NASDAQ: ROKU) stock sank 18% during after-hours trading on Nov. 2 following the release of its third-quarter earnings report. The streaming platform and device maker's revenue rose 12% year-over-year to $761 million, which beat analysts' estimates by $68 million. It posted a net loss of $122 million, compared to a net profit of $69 million a year earlier -- but, that came out to a net loss of $0.88 per share, which cleared the consensus forecast by $0.41.
Roku passed Wall Street's low bar, but a closer look at its growth metrics and guidance reveals some glaring weaknesses. Should investors still buy Roku's stock as it languishes near its lowest levels in nearly four years?
Image source: Getty Images.
Another quarter of decelerating growth
Roku experienced a major growth spurt during the pandemic, which prompted people to stay at home and watch more streaming videos. But its sales of streaming devices declined as those lockdown measures ended. On top of that, growth of Roku's higher-margin software platform -- which generates the bulk of its revenue by selling integrated ads on Roku devices and third-party hardware -- also cooled off, as macro headwinds prompted companies to purchase fewer ads.
At first glance, Roku's third quarter numbers don't look too bad. Its active accounts grew 16% year over year to 65.4 million in the third quarter, an acceleration from 14% growth in the second quarter. Total streaming hours grew 21% to 21.9 billion, accelerating from its 19% growth in the previous quarter. However, its average revenue per user (ARPU) rose a mere 10% to $44.25, a significant slowdown from the 21% growth reported last quarter.
That lessened ARPU growth can be attributed to the aforementioned headwinds facing the digital advertising market and broader economy. But it also caused a slowdown of Roku's revenue growth: Platform revenue, which accounted for 88% of the company's top line, brought in $670.4 million in the third quarter, up by 15% year over year but down sequentially from Q2's $673.2 million. Player revenue reported only $91 million, a decline of 7% growth compared to the year-ago quarter. All in all, Roku's third quarter revenue rose just 12% year over year, to $761.4 million. But that's a drop from the second quarter's $764.4 million in revenue.
Roku expects this pain to persist as its player and platform businesses simultaneously slow down. Roku predicts fourth quarter revenue will reach $800 million. While that's a significant sequential increase, it would represent a 7.5% decline compared to the fourth quarter of 2021, when revenue hit $865.3 million. Management expects net loss to more than double sequentially to $245 million. That gloomy forecast indicates that Roku's business will endure much more pain over the next few quarters.
Will Roku's business ever recover?
Roku's platform gross margin declined sequentially and year over year to 55.8% in the third quarter, reflecting the company's waning pricing power in the shriveling advertising market. It's been trying to lock in more viewers and advertisers with its ad-supported Roku Channel, but that streaming service faces intense competition for ad dollars from other ad-supported services like Comcast's Peacock, Disney+ (NYSE: DIS), and even Netflix (NASDAQ: NFLX).
Roku's player gross margin also remained negative for the sixth consecutive quarter. That was caused by its limited pricing power in the streaming device market, which has been saturated with other formidable competitors like Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL), as well as the ongoing supply chain shortages and supply chain disruptions.
Rather than pass those costs onto the consumer and potentially cede its market share to competitors, Roku has been absorbing those costs and incurring losses for the past three quarters. That loss-leading strategy might have worked if its platform business were healthier, but it could be difficult to sustain as its advertising business slows down.
Faced with these challenges, it isn't surprising that Roku turned unprofitable and has posted widening losses since the start of fiscal 2022. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), which generously excludes its stock-based compensation and other one-time expenses, also turned red over the past two quarters.
Roku's stock is still a falling knife
Roku's stock might look cheap at just two times next year's sales, but it faces too many challenges. Its platform business was once its core profit engine, but it's stalling out in this rough market for advertising companies. At the same time, it needs to ramp up its spending on new content for the Roku Channel to widen its moat against Netflix, Disney, Amazon, and other formidable competitors in the streaming market. That's all bad news for its near-term margins.
Roku's hardware business will also continue to struggle as it competes against tech giants like Amazon and Apple -- which can afford to rack up losses on their devices to support the expansion of their digital ecosystems. In short, I believe Roku will remain a falling knife until the macro headwinds dissipate and its advertising business shows a few flickers of life again.
10 stocks we like better than Roku
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 Roku wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 30, 2022
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Leo Sun has positions in Amazon, Apple, and Walt Disney. The Motley Fool has positions in and recommends Amazon, Apple, Netflix, Roku, and Walt Disney. The Motley Fool recommends Comcast and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
That was caused by its limited pricing power in the streaming device market, which has been saturated with other formidable competitors like Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL), as well as the ongoing supply chain shortages and supply chain disruptions. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), which generously excludes its stock-based compensation and other one-time expenses, also turned red over the past two quarters. At the same time, it needs to ramp up its spending on new content for the Roku Channel to widen its moat against Netflix, Disney, Amazon, and other formidable competitors in the streaming market.
|
That was caused by its limited pricing power in the streaming device market, which has been saturated with other formidable competitors like Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL), as well as the ongoing supply chain shortages and supply chain disruptions. But it also caused a slowdown of Roku's revenue growth: Platform revenue, which accounted for 88% of the company's top line, brought in $670.4 million in the third quarter, up by 15% year over year but down sequentially from Q2's $673.2 million. The Motley Fool has positions in and recommends Amazon, Apple, Netflix, Roku, and Walt Disney.
|
That was caused by its limited pricing power in the streaming device market, which has been saturated with other formidable competitors like Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL), as well as the ongoing supply chain shortages and supply chain disruptions. But it also caused a slowdown of Roku's revenue growth: Platform revenue, which accounted for 88% of the company's top line, brought in $670.4 million in the third quarter, up by 15% year over year but down sequentially from Q2's $673.2 million. Roku's platform gross margin declined sequentially and year over year to 55.8% in the third quarter, reflecting the company's waning pricing power in the shriveling advertising market.
|
That was caused by its limited pricing power in the streaming device market, which has been saturated with other formidable competitors like Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL), as well as the ongoing supply chain shortages and supply chain disruptions. But it also caused a slowdown of Roku's revenue growth: Platform revenue, which accounted for 88% of the company's top line, brought in $670.4 million in the third quarter, up by 15% year over year but down sequentially from Q2's $673.2 million. Roku's stock is still a falling knife Roku's stock might look cheap at just two times next year's sales, but it faces too many challenges.
|
18520.0
|
2022-11-08 00:00:00 UTC
|
2 FAANG Stocks to Buy Hand Over Fist and 1 to Avoid Like the Plague
|
AAPL
|
https://www.nasdaq.com/articles/2-faang-stocks-to-buy-hand-over-fist-and-1-to-avoid-like-the-plague-1
|
nan
|
nan
|
To say it's been a bad year for investors might be an understatement. The bond market is working on its worst year in history, while the widely followed S&P 500 delivered its worst first-half return in over a half-century.
But when heightened volatility and uncertainty arise, investors often turn to companies that have a history of winning. Perhaps no group of companies stand out more than the FAANG stocks.
Image source: Getty Images.
When I say "FAANG," I'm referring to:
Facebook, which is now a subsidiary of parent company Meta Platforms (NASDAQ: META)
Apple (NASDAQ: AAPL)
Amazon (NASDAQ: AMZN)
Netflix (NASDAQ: NFLX)
Google, which is now a subsidiary of parent company Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG)
Aside from vastly outperforming the major U.S. stock market indexes, FAANG stocks are industry leaders. For instance, Amazon has the most dominant online marketplace and Meta Platforms' social media sites bring in the most unique monthly active users. It's these competitive edges and the collective history of innovation that have made FAANG stocks popular buys during any stock market weakness.
But even among the FAANGs, there's a hierarchy. At the moment, two FAANG stocks stand out as amazing deals that can be bought hand over fist, while another looks entirely avoidable.
FAANG No. 1 to buy hand over fist: Alphabet
The first FAANG stock begging to be bought right now is Alphabet, the parent company of search engine Google, streaming platform YouTube, and autonomous vehicle company Waymo.
The most glaring issue for Alphabet is that the lion's share of its revenue derives from advertising. With interest rates rapidly climbing, there's an increased likelihood of a recession on the horizon. Advertising spending is often one of the first things to be hit when the winds of economic weakness begin blowing. The company's third-quarter operating results certainly demonstrated these struggles, with year-over-year revenue up just 6%, or 11% if you exclude currency movements.
But this only tells part of the tale. While short-term struggles shouldn't be swept under the rug, it's important to understand the context surrounding this advertising slowdown. Though recessions are an inevitable part of the economic cycle, they're often short-lived. By comparison, economic expansions usually last years. Advertising may ebb and flow, but an ad giant like Alphabet spends far more time in the sun than under storm clouds.
A big reason for this is its absolutely dominant search engine, Google. Data from GlobalStats shows that Google has sustained at least a 91% global share of internet search -- I repeat, a 91% global share of internet search -- looking back more than two years. Advertisers understand that Google offers them the best chance to reach as many consumers as possible with their message.
But when it comes to long-term growth, YouTube and Google Cloud may take the cake. YouTube is the world's second-most visited social site, behind Meta's Facebook, and looks to be on pace to generate $29 billion in full-year ad revenue. Meanwhile, Google Cloud is pacing more than $27 billion in annual run rate sales and delivered 38% revenue growth in the September-ended quarter. By mid-decade, Google Cloud could grow into a serious cash-flow driver for the company.
Opportunistic investors can buy shares of Alphabet right now for about 9 times Wall Street's forecast cash flow for the company in 2024. That would be well below the company's historic multiple to cash flow.
Image source: Getty Images.
FAANG No. 2 to buy hand over fist: Meta Platforms
The second FAANG stock to buy hand over fist is arguably the one that's fallen most out of favor with Wall Street and everyday investors: Meta Platforms.
One reason skeptics aren't thrilled with Meta is its advertising reliance. A little over 98% of the $27.7 billion in sales Meta generated in the third quarter derived from ads. Just as Alphabet has been weighed down by weaker ad spending, so will Meta -- at least in the short run.
The other issue for Meta Platforms is CEO Mark Zuckerberg's insistence on spending aggressively to develop metaverse innovations. The metaverse is the 3D virtual world where connected users can interact with each other and their environments. Reality Labs, the company's metaverse operating division, has lost a whopping $9.4 billion through the first nine months of 2022, and there's no sign spending will slow anytime soon.
But, once again, this skepticism tells an incomplete story. While these headwinds are tangible, they overlook core catalysts and advantages for Meta that haven't changed, despite its recent weakness.
For example, Meta remains as dominant as ever with its social media assets. Facebook, Facebook Messenger, WhatsApp, and Instagram are consistently among the most-downloaded social apps worldwide. What's more, Meta recognized 3.71 billion unique monthly active users across its family of apps during the third quarter. This equates to more than half of the world's adult population visiting at least one Meta-owned site each month. Though ad pricing is weak at the moment, advertisers have previously demonstrated a willingness to pay premium prices to reach Meta Platforms' billions of users.
The other important consideration is that Meta's balance sheet gives it the flexibility to invest in what could very well be a multitrillion-dollar opportunity. When the curtain closed on September, Meta had close to $32 billion in cash, cash equivalents, and marketable securities, after subtracting all outstanding debt. Even with a lot of the company's free cash being diverted to Reality Labs, Meta should generate north of $16 per share in operating cash flow this year. Paying less than 6 times operating cash flow for a dominant business like Meta Platforms would be historically cheap.
The FAANG stock to avoid like the plague: Netflix
On the other side of the aisle is the FAANG stock investors would be smart to avoid like the plague: media giant Netflix.
Netflix has obviously done some things right to reach a $116 billion market cap. Its pivot to streaming content more than a decade ago paved the way for it to grab the leading share of the U.S. streaming market. Since making this pivot, Netflix's worldwide subscriber count has surpassed 223 million, as of the latest quarter.
The company also has exceptional pricing power, which is due to its growing content library and lengthy list of proprietary shows. Being able to pass along price hikes without losing subscribers is a powerful tool to increase revenue and profits.
But Netflix wouldn't be a stock to avoid if it didn't have clearly defined headwinds that could stunt its future growth potential. Arguably the biggest issue for Netflix is the relatively low barrier to entry for streaming services. While cord-cutting continues to favor a push toward streaming, there are more choices than ever for consumers, and that's significantly stunted Netflix's subscriber growth.
Maybe the biggest red flag is how quickly Disney+ from Walt Disney gained ground on Netflix. Less than three years after launching the Disney+ streaming service, more than 152 million people worldwide have subscribed. Walt Disney reached subscriber levels that took Netflix over a decade to achieve, and the House of Mouse arguably evokes much stronger emotional engagement and connection with its proprietary content and characters than Netflix can with its own content.
The other concern for Netflix is its long history of burning cash. Expanding into international markets isn't cheap, but it's an absolute necessity when competition is fierce in the United States. Unfortunately, this aggressive spending has pushed Netflix to 58 times Wall Street's forecast cash flow in 2022 and 43 times forecast cash flow in 2023. That makes Netflix the priciest FAANG stock, relative to operating cash flow, by a considerable amount.
10 stocks we like better than Alphabet (A shares)
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 Alphabet (A 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 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. Sean Williams has positions in Alphabet (A shares), Amazon, and Meta Platforms, Inc. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., 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.
|
When I say "FAANG," I'm referring to: Facebook, which is now a subsidiary of parent company Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of parent company Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Aside from vastly outperforming the major U.S. stock market indexes, FAANG stocks are industry leaders. For instance, Amazon has the most dominant online marketplace and Meta Platforms' social media sites bring in the most unique monthly active users. YouTube is the world's second-most visited social site, behind Meta's Facebook, and looks to be on pace to generate $29 billion in full-year ad revenue.
|
When I say "FAANG," I'm referring to: Facebook, which is now a subsidiary of parent company Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of parent company Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Aside from vastly outperforming the major U.S. stock market indexes, FAANG stocks are industry leaders. Unfortunately, this aggressive spending has pushed Netflix to 58 times Wall Street's forecast cash flow in 2022 and 43 times forecast cash flow in 2023. 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.
|
When I say "FAANG," I'm referring to: Facebook, which is now a subsidiary of parent company Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of parent company Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Aside from vastly outperforming the major U.S. stock market indexes, FAANG stocks are industry leaders. 1 to buy hand over fist: Alphabet The first FAANG stock begging to be bought right now is Alphabet, the parent company of search engine Google, streaming platform YouTube, and autonomous vehicle company Waymo. 2 to buy hand over fist: Meta Platforms The second FAANG stock to buy hand over fist is arguably the one that's fallen most out of favor with Wall Street and everyday investors: Meta Platforms.
|
When I say "FAANG," I'm referring to: Facebook, which is now a subsidiary of parent company Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of parent company Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Aside from vastly outperforming the major U.S. stock market indexes, FAANG stocks are industry leaders. 1 to buy hand over fist: Alphabet The first FAANG stock begging to be bought right now is Alphabet, the parent company of search engine Google, streaming platform YouTube, and autonomous vehicle company Waymo. That makes Netflix the priciest FAANG stock, relative to operating cash flow, by a considerable amount.
|
18521.0
|
2022-11-08 00:00:00 UTC
|
Taiwan October exports edge down but chip demand holds up
|
AAPL
|
https://www.nasdaq.com/articles/taiwan-october-exports-edge-down-but-chip-demand-holds-up
|
nan
|
nan
|
Recasts, adds details
Taiwan Oct exports -0.5% y/y vs -6% Reuters poll
Exports to China -9.2% y/y (previous month -13.3%)
Finance ministry expects Nov exports -5% to -8% y/y
Ministry says chip demand holding up well
TAIPEI, Nov 8 (Reuters) - Taiwan's exports fell in October for the second straight month though less rapidly than forecast due to continued strong demand for chips for high performance computing and autos, but with the outlook again clouded by global inflation and the war in Ukraine.
Exports edged down 0.5% in October from a year earlier to $39.93 billion, the Ministry of Finance said on Tuesday.
That was better than a forecast for a 6% contraction in a Reuters poll, and followed a 5.3% drop in September - the first contraction in more than two years.
The ministry said while global demand overall was slowing, tech exports were holding up well, helped by demand for high-performance computing, autos and data centres.
Taiwan's total exports of electronics components in October rose 15.9% to $16.9 billion, with semiconductor exports up 19.4% from a year earlier.
Many companies expect global chip shortages to last at least for the rest of the year, which will continue to bolster Taiwanese semiconductor firms' order books even as demand for some consumer electronics weakens.
Firms such as TSMC 2330.TWTSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O and other global tech giants, as well as providers of chips for auto companies and lower-end consumer goods.
United Microelectronics Corp 2303.TW, a smaller competitor of TSMC, this week reported October sales jumped 27.1% year-on-year.
Still, Taiwan's exports to China, the island's largest trading partner, fell an annual 9.2% to $14.72 billion in October, after a 13.3% drop in September.
China's exports and imports unexpectedly contracted in October, the first simultaneous slump since May 2020, as surging inflation and rising interest rates hammered global demand while new COVID-19 curbs at home disrupted output and consumption.
While Taiwan's finance ministry expected demand for chips in tech products ahead of the end-of-year shopping season to help maintain the export momentum, it said global inflation, monetary tightening, China-U.S. tensions and the Russia-Ukraine war would "continue to deepen doubts about the international economic outlook".
"This may constrain our country's export performance in the fourth quarter," it added.
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.
October exports to the United States were up 3.1%, compared with the 2.1% contraction recorded the previous month.
Taiwan's October imports rose 8.2% to $36.95 billion, driven by energy and semiconductor equipment, compared with economists' expectations of a 3.5% drop and after a fall of 2.4% in September.
Taiwan could see November exports contract in a range of 5% to 8% from a year earlier, the finance ministry said.
(Reporting by Emily Chan and Ben Blanchard; Editing by Ana Nicolaci da Costa)
((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.
|
Firms such as TSMC 2330.TWTSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O and other global tech giants, as well as providers of chips for auto companies and lower-end consumer goods. China's exports and imports unexpectedly contracted in October, the first simultaneous slump since May 2020, as surging inflation and rising interest rates hammered global demand while new COVID-19 curbs at home disrupted output and consumption. While Taiwan's finance ministry expected demand for chips in tech products ahead of the end-of-year shopping season to help maintain the export momentum, it said global inflation, monetary tightening, China-U.S. tensions and the Russia-Ukraine war would "continue to deepen doubts about the international economic outlook".
|
Firms such as TSMC 2330.TWTSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O and other global tech giants, as well as providers of chips for auto companies and lower-end consumer goods. Recasts, adds details Taiwan Oct exports -0.5% y/y vs -6% Reuters poll Exports to China -9.2% y/y (previous month -13.3%) Finance ministry expects Nov exports -5% to -8% y/y Ministry says chip demand holding up well TAIPEI, Nov 8 (Reuters) - Taiwan's exports fell in October for the second straight month though less rapidly than forecast due to continued strong demand for chips for high performance computing and autos, but with the outlook again clouded by global inflation and the war in Ukraine. Taiwan's total exports of electronics components in October rose 15.9% to $16.9 billion, with semiconductor exports up 19.4% from a year earlier.
|
Firms such as TSMC 2330.TWTSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O and other global tech giants, as well as providers of chips for auto companies and lower-end consumer goods. Recasts, adds details Taiwan Oct exports -0.5% y/y vs -6% Reuters poll Exports to China -9.2% y/y (previous month -13.3%) Finance ministry expects Nov exports -5% to -8% y/y Ministry says chip demand holding up well TAIPEI, Nov 8 (Reuters) - Taiwan's exports fell in October for the second straight month though less rapidly than forecast due to continued strong demand for chips for high performance computing and autos, but with the outlook again clouded by global inflation and the war in Ukraine. Taiwan's total exports of electronics components in October rose 15.9% to $16.9 billion, with semiconductor exports up 19.4% from a year earlier.
|
Firms such as TSMC 2330.TWTSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O and other global tech giants, as well as providers of chips for auto companies and lower-end consumer goods. Recasts, adds details Taiwan Oct exports -0.5% y/y vs -6% Reuters poll Exports to China -9.2% y/y (previous month -13.3%) Finance ministry expects Nov exports -5% to -8% y/y Ministry says chip demand holding up well TAIPEI, Nov 8 (Reuters) - Taiwan's exports fell in October for the second straight month though less rapidly than forecast due to continued strong demand for chips for high performance computing and autos, but with the outlook again clouded by global inflation and the war in Ukraine. Taiwan's total exports of electronics components in October rose 15.9% to $16.9 billion, with semiconductor exports up 19.4% from a year earlier.
|
18522.0
|
2022-11-08 00:00:00 UTC
|
Renault, Google expand ties in automotive software
|
AAPL
|
https://www.nasdaq.com/articles/renault-google-expand-ties-in-automotive-software
|
nan
|
nan
|
PARIS, Nov 8 (Reuters) - Renault RENA.PA and Google GOOGL.O said on Tuesday that they are expanding their partnership in software services for future Renault vehicles, adding that Google will become the preferred cloud supplier to the French automaker.
The partnership with Google will also help Renault accelerate its "end-to-end digital transformation, from the design of the car to its market launch through its production," Renault Chief Executive Luca de Meo said in a statement.
Automakers and technology companies including Sony 6758.T, Apple AAPL.O and Google, have been working to develop ways to build future cars into platforms more like smartphones, with billable services where key updates are wireless.
(Reporting by Sudip Kar-Gupta; Editing by Kevin Krolicki and Edwina Gibbs)
((sudip.kargupta@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.
|
Automakers and technology companies including Sony 6758.T, Apple AAPL.O and Google, have been working to develop ways to build future cars into platforms more like smartphones, with billable services where key updates are wireless. PARIS, Nov 8 (Reuters) - Renault RENA.PA and Google GOOGL.O said on Tuesday that they are expanding their partnership in software services for future Renault vehicles, adding that Google will become the preferred cloud supplier to the French automaker. The partnership with Google will also help Renault accelerate its "end-to-end digital transformation, from the design of the car to its market launch through its production," Renault Chief Executive Luca de Meo said in a statement.
|
Automakers and technology companies including Sony 6758.T, Apple AAPL.O and Google, have been working to develop ways to build future cars into platforms more like smartphones, with billable services where key updates are wireless. PARIS, Nov 8 (Reuters) - Renault RENA.PA and Google GOOGL.O said on Tuesday that they are expanding their partnership in software services for future Renault vehicles, adding that Google will become the preferred cloud supplier to the French automaker. (Reporting by Sudip Kar-Gupta; Editing by Kevin Krolicki and Edwina Gibbs) ((sudip.kargupta@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.
|
Automakers and technology companies including Sony 6758.T, Apple AAPL.O and Google, have been working to develop ways to build future cars into platforms more like smartphones, with billable services where key updates are wireless. PARIS, Nov 8 (Reuters) - Renault RENA.PA and Google GOOGL.O said on Tuesday that they are expanding their partnership in software services for future Renault vehicles, adding that Google will become the preferred cloud supplier to the French automaker. The partnership with Google will also help Renault accelerate its "end-to-end digital transformation, from the design of the car to its market launch through its production," Renault Chief Executive Luca de Meo said in a statement.
|
Automakers and technology companies including Sony 6758.T, Apple AAPL.O and Google, have been working to develop ways to build future cars into platforms more like smartphones, with billable services where key updates are wireless. PARIS, Nov 8 (Reuters) - Renault RENA.PA and Google GOOGL.O said on Tuesday that they are expanding their partnership in software services for future Renault vehicles, adding that Google will become the preferred cloud supplier to the French automaker. The partnership with Google will also help Renault accelerate its "end-to-end digital transformation, from the design of the car to its market launch through its production," Renault Chief Executive Luca de Meo said in a statement.
|
18523.0
|
2022-11-08 00:00:00 UTC
|
3 Top Tech Stocks to Buy in November
|
AAPL
|
https://www.nasdaq.com/articles/3-top-tech-stocks-to-buy-in-november
|
nan
|
nan
|
This has been a horrible year for technology stocks, as the 33% decline in the Nasdaq-100 indicates. But there are some names that have shown remarkable resilience despite the bear market.
Advanced Micro Devices (NASDAQ: AMD), CrowdStrike Holdings (NASDAQ: CRWD), and Apple (NASDAQ: AAPL) are three companies that are witnessing robust demand for their offerings despite inflation and weakness in the smartphone and personal computer (PC) markets. Let's look at the reasons why AMD, CrowdStrike, and Apple look like solid bets amid the tech sell-off.
1. Advanced Micro Devices
The weakness in the PC market couldn't prevent AMD from delivering solid double-digit growth in its fiscal third quarter. The chipmaker's top line was up 29% year over year to $5.6 billion, driven by strength in the data center and embedded segments. What's more, AMD anticipates 14% year-over-year revenue growth in the current quarter as well, which would be quite an achievement as sales of PCs are expected to drop further.
However, AMD has massive growth opportunities other areas, which should allow the chipmaker to mitigate the PC market's struggles in the near term. The company has already started the initial shipments of its next-generation Epyc server processors to select customers. Sales of these chips should start ramping up with the launch of server platforms by the likes of Dell, Hewlett Packard Enterprise, Super Micro, and Lenovo, among others.
Meanwhile, AMD is now making progress in the data processing unit (DPU) market as well following the acquisition of Pensando, which was completed in May this year. AMD CEO Lisa Su remarked on the latest earnings conference call that the "addition of Pensando DPUs to our product portfolio has been very well received by customers, highlighted by our enterprise customer pipeline doubling in the few months since the acquisition closed."
More importantly, the DPU business seems built for long-term growth as the demand for these data center chips is expected to increase at an annual pace of 27% through 2031. The overall data center business, meanwhile, could give AMD's growth a big shot in the arm considering the huge end-market opportunity at hand.
With shares of AMD trading at 37 times trailing earnings, compared to the five-year average earnings multiple of nearly 100, it looks like a top semiconductor stock to buy now given the healthy long-term catalysts it's sitting on.
2. CrowdStrike Holdings
CrowdStrike is another fast-growing company that can be bought at a relatively attractive valuation right now. The cybersecurity specialist is trading at 16 times sales, and while that isn't cheap, it's worth noting the stock was trading at closer to 50 times sales this time last year.
More importantly, CrowdStrike's terrific growth justifies its rich valuation. The company's revenue in the first six months of fiscal 2023 (ended Aug. 30) increased an impressive 60% year over year to $1.02 billion. The company's full-year guidance for $2.23 billion in revenue would translate into 53% top-line growth over the previous fiscal year.
Most importantly, CrowdStrike should be able to sustain its impressive momentum thanks to the growth in its annual recurring revenue (ARR). The company was sitting on $2.14 billion of ARR at the end of the fiscal second quarter, up 59%. As ARR represents the annualized value of CrowdStrike's subscription contracts in effect at the end of a particular period, the sharp increase in this metric points toward a robust pipeline.
The terrific growth in CrowdStrike's business and the company's ability to set up a solid revenue pipeline isn't surprising given the cybersecurity segments it's serving. The company provides a cloud-based, artificial intelligence (AI)-powered platform to protect endpoints, prevent identity theft, and deliver security and information technology (IT) operations to customers.
Demand for cloud-based cybersecurity offerings is growing at a healthy pace. Fortune Business Insights expects the cloud security market to clock annual growth of 18% through 2029. CrowdStrike itself estimates a $158 billion addressable market by 2026, indicating the company is only scratching the surface of a huge opportunity.
Not surprisingly, analysts are expecting nearly 75% annual earnings growth from CrowdStrike over the next five years, suggesting it could turn out to be a top growth stock going forward.
3. Apple
Apple stock has been in the news for the wrong reasons recently after an iPhone factory in China was suddenly locked down to prevent a coronavirus outbreak. The news sent Apple stock down nearly 4% on Nov. 2, but investors need to look at the bigger picture.
Apple's iPhone sales are increasing at a time when the broader smartphone market is contracting. That's because the company is grabbing a healthy share of the 5G smartphone market, a space set for rapid long-term growth. Annual 5G smartphone sales could exceed $4.1 trillion by 2027, growing at a compound annual rate of nearly 125%, according to a third-party estimate.
This would pave the way for robust iPhone sales at Apple in the long run. The company generated $205 billion in iPhone revenue in the latest fiscal year, which ended on Sept. 24. The potential growth of the 5G smartphone space, Apple's strong market share, and growing influence in markets such as India should help sustain this key part of the company.
But the growing installed base of all Apple devices is going to be a boon for the services business as well. Apple generated $78 billion in revenue from this segment in fiscal 2022, up 14%. The company has 900 million paid subscribers in the services business, less than half of the nearly two billion active devices.
In all, Apple should be able to deliver steady growth in the long run thanks to its unmatched product ecosystem, which also has the potential for new additions. With the stock trading at 23 times trailing earnings, near its lowest level since the start of the pandemic, Apple is another top tech stock to buy following its 22% slide in 2022.
10 stocks we like better than Advanced Micro Devices
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 Advanced Micro Devices wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 30, 2022
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, and CrowdStrike Holdings, 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.
|
Advanced Micro Devices (NASDAQ: AMD), CrowdStrike Holdings (NASDAQ: CRWD), and Apple (NASDAQ: AAPL) are three companies that are witnessing robust demand for their offerings despite inflation and weakness in the smartphone and personal computer (PC) markets. Sales of these chips should start ramping up with the launch of server platforms by the likes of Dell, Hewlett Packard Enterprise, Super Micro, and Lenovo, among others. As ARR represents the annualized value of CrowdStrike's subscription contracts in effect at the end of a particular period, the sharp increase in this metric points toward a robust pipeline.
|
Advanced Micro Devices (NASDAQ: AMD), CrowdStrike Holdings (NASDAQ: CRWD), and Apple (NASDAQ: AAPL) are three companies that are witnessing robust demand for their offerings despite inflation and weakness in the smartphone and personal computer (PC) markets. Advanced Micro Devices The weakness in the PC market couldn't prevent AMD from delivering solid double-digit growth in its fiscal third quarter. The terrific growth in CrowdStrike's business and the company's ability to set up a solid revenue pipeline isn't surprising given the cybersecurity segments it's serving.
|
Advanced Micro Devices (NASDAQ: AMD), CrowdStrike Holdings (NASDAQ: CRWD), and Apple (NASDAQ: AAPL) are three companies that are witnessing robust demand for their offerings despite inflation and weakness in the smartphone and personal computer (PC) markets. Not surprisingly, analysts are expecting nearly 75% annual earnings growth from CrowdStrike over the next five years, suggesting it could turn out to be a top growth stock going forward. The potential growth of the 5G smartphone space, Apple's strong market share, and growing influence in markets such as India should help sustain this key part of the company.
|
Advanced Micro Devices (NASDAQ: AMD), CrowdStrike Holdings (NASDAQ: CRWD), and Apple (NASDAQ: AAPL) are three companies that are witnessing robust demand for their offerings despite inflation and weakness in the smartphone and personal computer (PC) markets. Advanced Micro Devices The weakness in the PC market couldn't prevent AMD from delivering solid double-digit growth in its fiscal third quarter. Apple's iPhone sales are increasing at a time when the broader smartphone market is contracting.
|
18524.0
|
2022-11-07 00:00:00 UTC
|
If You Invested $10,000 In Berkshire Hathaway In 2012, This Is How Much You Would Have Today
|
AAPL
|
https://www.nasdaq.com/articles/if-you-invested-%2410000-in-berkshire-hathaway-in-2012-this-is-how-much-you-would-have-today
|
nan
|
nan
|
Legendary investor Warren Buffett has successfully run the large conglomerate Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) for more than five decades, generating some very compelling returns for investors along the way.
Between 1965 and 2021, Berkshire's stock price has gained an unimaginable 3,641,613%. That equates to a compound average annual gain of roughly 20.1%. The S&P 500, a benchmark for the broader market, has only generated a compound average annual gain of 10.5% including dividends.
But in recent times, Berkshire has actually had some off years compared to the broader market, although it is actually beating the market pretty handily this year. Let's take a look at Berkshire's more recent performance and see how much money you would have made had you invested $10,000 in the stock in 2012. I'll focus on Berkshire class B shares because they are more affordable than class A.
A snapshot of the last decade
Berkshire introduced class B shares in 1996 at 1/30 of the price of class A shares, to make them more affordable to smaller retail investors who wanted to get in on Berkshire's greatness.
Class B shares started trading at more than $1,000 per share and rose all the way to roughly $3,350 in 2010 before Berkshire did a 50-for-1 stock split, which made shares even cheaper. After the split, Berkshire class B shares began trading at about $73.
While Buffett has gotten older over the years, Berkshire has remained very active over the last decade. In 2013, Berkshire Hathaway teamed up with 3G Capital to purchase Heinz 2013 for $23 billion. Two years later, they would merge Heinz with Kraft to create the multinational food and beverage brand Kraft Heinz (NASDAQ: KHC).
This investment is widely known as one of Buffett's biggest mistakes, with the stock price of Kraft Heinz opening around $71 and currently trading below $39 today. "I made a mistake in the Kraft purchase in terms of paying too much," Buffett told CNBC in 2019.
Berkshire has also made other big acquisitions, such as its $4.7 billion purchase of the battery maker Duracell and the $4 billion purchase of the energy company Dominion Energy.
In terms of stock purchases in Berkshire's now roughly $328 billion equities portfolio, the conglomerate took a stake in Bank of America (NYSE: BAC) shortly after the Great Recession and has built America's second-largest bank into Berkshire's second-largest equity holding.
Another big moment for Berkshire came in 2016. It acquired a new position in the consumer tech giant Apple (NASDAQ: AAPL), which the company hasn't looked back on since, continuing to buy shares heavily in recent years. Berkshire's position in Apple is now valued at more than $136 billion and makes up more than 40% of Berkshire's equity holdings.
This year, Buffett and his team have been all about the energy sector, with rising gas prices. Berkshire has taken big stakes in Chevron (NYSE: CVX) and Occidental Petroleum (NYSE: OXY), and many suspect the conglomerate may look to eventually acquire Occidental outright. Here is how Berkshire's annual gains have stacked up to the S&P 500 since 2012.
YEAR BERKSHIRE HATHAWAY S&P 500 W/DIVIDENDS
2012 16.8% 16%
2013 32.7% 32.4%
2014 27% 13.7%
2015 -12.5% 1.4%
2016 23.4% 12%
2017 21.9% 21.8%
2018 2.8% -4.4%
2019 11% 31.5%
2020 2.4% 18.4%
2021 29.6% 28.7%
2022* -2.04% -19.97%
Data source: Berkshire's annual letter. *= Year to date.
As you can see, Berkshire has won seven of the last 10 years, although it struggled in 2019 and 2020. However, unless things change dramatically over the last two months of this year, Berkshire is about to find itself back on a two-year winning streak against the S&P 500.
If you invested $10,000 in 2012, how much do you have now?
Berkshire class B shares started 2012 at about $77.38 per share. Currently, they trade for just under $295 per share, which equates to a gain of about 281%. That means if you invested $10,000 in 2012, you'd have about $38,100 now.
A popular S&P 500 index ETF started 2012 with a dividend-adjusted price of around $104 per share and recently closed at $376. That works out to a gain of roughly 262%. That means your $10,000 invested in this broader benchmark index would now be $36,200. So your investment in Berkshire would have yielded about $1,900 more than investing in the broader market.
10 stocks we like better than Berkshire Hathaway (B shares)
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway (B 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 September 30, 2022
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Bram Berkowitz has positions in Bank of America. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends The Kraft Heinz Company 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.
|
It acquired a new position in the consumer tech giant Apple (NASDAQ: AAPL), which the company hasn't looked back on since, continuing to buy shares heavily in recent years. This investment is widely known as one of Buffett's biggest mistakes, with the stock price of Kraft Heinz opening around $71 and currently trading below $39 today. However, unless things change dramatically over the last two months of this year, Berkshire is about to find itself back on a two-year winning streak against the S&P 500.
|
It acquired a new position in the consumer tech giant Apple (NASDAQ: AAPL), which the company hasn't looked back on since, continuing to buy shares heavily in recent years. Legendary investor Warren Buffett has successfully run the large conglomerate Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) for more than five decades, generating some very compelling returns for investors along the way. In terms of stock purchases in Berkshire's now roughly $328 billion equities portfolio, the conglomerate took a stake in Bank of America (NYSE: BAC) shortly after the Great Recession and has built America's second-largest bank into Berkshire's second-largest equity holding.
|
It acquired a new position in the consumer tech giant Apple (NASDAQ: AAPL), which the company hasn't looked back on since, continuing to buy shares heavily in recent years. A snapshot of the last decade Berkshire introduced class B shares in 1996 at 1/30 of the price of class A shares, to make them more affordable to smaller retail investors who wanted to get in on Berkshire's greatness. Class B shares started trading at more than $1,000 per share and rose all the way to roughly $3,350 in 2010 before Berkshire did a 50-for-1 stock split, which made shares even cheaper.
|
It acquired a new position in the consumer tech giant Apple (NASDAQ: AAPL), which the company hasn't looked back on since, continuing to buy shares heavily in recent years. Class B shares started trading at more than $1,000 per share and rose all the way to roughly $3,350 in 2010 before Berkshire did a 50-for-1 stock split, which made shares even cheaper. This investment is widely known as one of Buffett's biggest mistakes, with the stock price of Kraft Heinz opening around $71 and currently trading below $39 today.
|
18525.0
|
2022-11-07 00:00:00 UTC
|
As yen tumbles, gadget-loving Japan goes for secondhand iPhones
|
AAPL
|
https://www.nasdaq.com/articles/as-yen-tumbles-gadget-loving-japan-goes-for-secondhand-iphones
|
nan
|
nan
|
By Miho Uranaka
TOKYO, Nov 8 (Reuters) - For years Japanese shoppers eagerly shelled out for the latest gadgets, but now a tumbling yen has put new iPhones out of reach for some and sparked a growing secondhand trade in a major market for Apple Inc AAPL.O.
The Japanese currency's fall to a 32-year low against the dollar has squeezed consumers and accelerated a broader spending shift in the world's no.3 economy. Industry watchers say Japan's shoppers have become more open to buying secondhand, thanks in part to the rise of online auction sites.
In July, Apple hiked the price of the entry-level iPhone 13 by nearly a fifth. The basic iPhone 14 later debuted at 20% more than the iPhone 13 did, even as the U.S. price stayed flat at $799. While the dollar has surged against global currencies this year, the yen has been particularly hit, dropping 22%.
Salaryman Kaoru Nagase wanted a new phone but couldn't justify the price of a iPhone 14, which starts at 119,800 yen ($814). Instead, he bought a used iPhone SE 2 in Tokyo's Akihabara electronics district for less than a third of that.
"At more than 100,000 yen the iPhone 14 is too expensive and I just can't afford it. It would be fine if the battery lasted for 10 years," he said. The iPhone SE 2, released in 2020 but without the dual rear camera of the iPhone 14, was a "good balance" of cost and features, he said.
Apple declined to comment for this story. But in an annual regulatory filing last month, it said Japan sales fell 9% in the year ended September 24 due to the yen's weakness.
Apple Chief Financial Luca Maestri also acknowledged to analysts last month that the strong dollar had led to price increases for its products in some countries, but sales had still grown by double digits in Indonesia, Vietnam and other markets facing currency challenges.
Sales of used smartphones grew nearly 15% in Japan to a record 2.1 million in the last financial year and are likely to reach 3.4 million by 2026, according to technology market research firm MM Research Institute.
100,000 YEN BARRIER
Taishin Chonan bought a used iPhone 13 after the screen cracked on one of the two devices he carries for personal use. The replacement has higher resolution and a better battery and camera than the iPhone 7 he had been using.
"Up until now I'd only ever bought new phones, this is my first time buying used," the 23-year-old said. "The new models are expensive."
Even after the price hikes, the iPhone 14 sold in Japan is the cheapest among 37 countries when tax is taken into account, MM Research Institute said in a September survey. More yen weakness could prompt Apple to raise prices again, the research firm said, potentially denting its hefty 50% share of Japan's smartphone market.
The latest iPhones are now priced above the 100,000 yen level that is a "major psychological barrier" for many shoppers, said Daisuke Inoue, chief executive of Belong Inc, a unit of trading house Itochu Corp. 8001.T that sells used phones and tablets online.
Average sales on Belong's Nicosuma e-commerce site have trebled since Apple raised prices in July compared to the average over the previous three months, Inoue said. At Belong's operations centre outside of Tokyo, shipments of used phones were unboxed and sorted before being inspected, graded and cleaned by rows of workers at long tables.
The phones were then photographed from multiple angles for sale online. Belong uses Itochu's global network to help it source used devices both in Japan and overseas, depending on where the best prices are, Inoue said.
Some of the devices are bought from businesses, such as tablets previously used for payments in cafes or displays in taxis, he said.
Many Japanese have traditionally been wary of secondhand items, including electronics, but that is changing.
With Japan open again to foreign tourists, the secondhand iPhone market is getting another boost.
Retail chain Iosys Co Ltd has seen a surge in foreign tourists buying used iPhones in the last two months.
"The yen just keeps weakening," said Iosys executive Takashi Okuno. "That trend of visiting Japan and buying an iPhone is coming back."
($1 = 147.1200 yen)
(Additional reporting by Kohei Miyazaki in Zama, Japan and Paresh Dave in San Francisco; Writing by David Dolan; Editing by Lincoln Feast)
((david.dolan@thomsonreuters.com; +81 3 4563 2708;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Miho Uranaka TOKYO, Nov 8 (Reuters) - For years Japanese shoppers eagerly shelled out for the latest gadgets, but now a tumbling yen has put new iPhones out of reach for some and sparked a growing secondhand trade in a major market for Apple Inc AAPL.O. Apple Chief Financial Luca Maestri also acknowledged to analysts last month that the strong dollar had led to price increases for its products in some countries, but sales had still grown by double digits in Indonesia, Vietnam and other markets facing currency challenges. The latest iPhones are now priced above the 100,000 yen level that is a "major psychological barrier" for many shoppers, said Daisuke Inoue, chief executive of Belong Inc, a unit of trading house Itochu Corp. 8001.T that sells used phones and tablets online.
|
By Miho Uranaka TOKYO, Nov 8 (Reuters) - For years Japanese shoppers eagerly shelled out for the latest gadgets, but now a tumbling yen has put new iPhones out of reach for some and sparked a growing secondhand trade in a major market for Apple Inc AAPL.O. Sales of used smartphones grew nearly 15% in Japan to a record 2.1 million in the last financial year and are likely to reach 3.4 million by 2026, according to technology market research firm MM Research Institute. Average sales on Belong's Nicosuma e-commerce site have trebled since Apple raised prices in July compared to the average over the previous three months, Inoue said.
|
By Miho Uranaka TOKYO, Nov 8 (Reuters) - For years Japanese shoppers eagerly shelled out for the latest gadgets, but now a tumbling yen has put new iPhones out of reach for some and sparked a growing secondhand trade in a major market for Apple Inc AAPL.O. The basic iPhone 14 later debuted at 20% more than the iPhone 13 did, even as the U.S. price stayed flat at $799. The latest iPhones are now priced above the 100,000 yen level that is a "major psychological barrier" for many shoppers, said Daisuke Inoue, chief executive of Belong Inc, a unit of trading house Itochu Corp. 8001.T that sells used phones and tablets online.
|
By Miho Uranaka TOKYO, Nov 8 (Reuters) - For years Japanese shoppers eagerly shelled out for the latest gadgets, but now a tumbling yen has put new iPhones out of reach for some and sparked a growing secondhand trade in a major market for Apple Inc AAPL.O. While the dollar has surged against global currencies this year, the yen has been particularly hit, dropping 22%. "Up until now I'd only ever bought new phones, this is my first time buying used," the 23-year-old said.
|
18526.0
|
2022-11-07 00:00:00 UTC
|
Why Globalstar Shares Gained 36.5% Last Month
|
AAPL
|
https://www.nasdaq.com/articles/why-globalstar-shares-gained-36.5-last-month
|
nan
|
nan
|
What happened
Shares of Globalstar (NYSEMKT: GSAT) rose 36.5% in October 2022, according to data from S&P Global Market Intelligence. The stock price climbed higher thanks to a bullish analyst note just ahead of early November's earnings report.
So what
On Oct. 31, analysts at Craig-Hallum started covering the stock with a "buy" rating. The firm's price target for the satellite networking and communications stock was pegged at $5 per share, more than double the closing price of $2.03 on the previous market day. Analyst George Sutton argued that Globalstar's radio spectrum licenses are "substantially under-credited" by the stock market, especially since Apple (NASDAQ: AAPL) included support for the company's satellite phone band in the iPhone 14.
The iPhone maker will also contribute 95% of the capital costs of launching new satellites in support of this service, which dramatically lowers Globalstar's financial risk. Apple should switch on this service for iPhone 14 users by the end of this year.
Now what
Craig-Hallum wasn't the first analyst firm to boost its Globalstar price target thanks to the Apple relationship, but market makers always love to see more voices joining the bullish choir.
The Apple pact has turned Globalstar's stock into one of the best-performing tech stocks in 2022. Share prices have increased by 75% year to date, ranking behind only solar power specialist First Solar among tickers in the technology and communication services sectors. That's an impressive performance in an industry group where only 11% of 561 stocks have seen a positive price move this year.
Regardless of that powerful market performance, analysts like Craig-Hallum still see room for growth. That makes sense if Apple pulls its weight in the satellite phone service partnership.
10 stocks we like better than Globalstar
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 Globalstar 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 no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends First Solar 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.
|
Analyst George Sutton argued that Globalstar's radio spectrum licenses are "substantially under-credited" by the stock market, especially since Apple (NASDAQ: AAPL) included support for the company's satellite phone band in the iPhone 14. The iPhone maker will also contribute 95% of the capital costs of launching new satellites in support of this service, which dramatically lowers Globalstar's financial risk. Now what Craig-Hallum wasn't the first analyst firm to boost its Globalstar price target thanks to the Apple relationship, but market makers always love to see more voices joining the bullish choir.
|
Analyst George Sutton argued that Globalstar's radio spectrum licenses are "substantially under-credited" by the stock market, especially since Apple (NASDAQ: AAPL) included support for the company's satellite phone band in the iPhone 14. The firm's price target for the satellite networking and communications stock was pegged at $5 per share, more than double the closing price of $2.03 on the previous market day. Now what Craig-Hallum wasn't the first analyst firm to boost its Globalstar price target thanks to the Apple relationship, but market makers always love to see more voices joining the bullish choir.
|
Analyst George Sutton argued that Globalstar's radio spectrum licenses are "substantially under-credited" by the stock market, especially since Apple (NASDAQ: AAPL) included support for the company's satellite phone band in the iPhone 14. The Apple pact has turned Globalstar's stock into one of the best-performing tech stocks in 2022. See the 10 stocks *Stock Advisor returns as of November 7, 2022 Anders Bylund has no position in any of the stocks mentioned.
|
Analyst George Sutton argued that Globalstar's radio spectrum licenses are "substantially under-credited" by the stock market, especially since Apple (NASDAQ: AAPL) included support for the company's satellite phone band in the iPhone 14. Apple should switch on this service for iPhone 14 users by the end of this year. Now what Craig-Hallum wasn't the first analyst firm to boost its Globalstar price target thanks to the Apple relationship, but market makers always love to see more voices joining the bullish choir.
|
18527.0
|
2022-11-07 00:00:00 UTC
|
7 No-Brainer Stocks to Buy for 2023 and Beyond
|
AAPL
|
https://www.nasdaq.com/articles/7-no-brainer-stocks-to-buy-for-2023-and-beyond
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The economy is in trouble. Inflation remains stubbornly high, hitting 8.2% in the month of September, with inflation now having officially soared to levels we haven’t seen in four decades. Thus, even for long-term investors in no-brainer stocks, it’s a difficult time to hold steady right now.
With the Federal Reserve appearing intent on raising rates further from here, this is certainly true. That said, there is some good news. The U.S. central bank has signaled smaller increases are likely to materialize moving forward. This may help offset concerns that higher terminal rates than initially suggested are now a distinct possibility.
The inflation fight appears to be far from over. Accordingly, investors, consumers, and all Americans should understand that the chances of something breaking in the economy are increasing. Indeed, many experts now suggest the chances of a recession in 2023 are higher than ever.
This dour outlook could continue to drive stocks lower next year. That said, there are plenty of no-brainer stocks investors may want to consider for 2023 and beyond.
AAPL Apple $138.96
ASML ASML Holding $483.38
V Visa $200.10
UNH UnitedHealth Group $545.40
MSFT Microsoft $227.87
DPZ Domino’s Pizza $347.61
ORLY O’Reilly Automotive $830.20
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
It’s fair to assert that Apple (NASDAQ:AAPL) stock is the best of the big tech giants to invest in. That has been true in 2022, as shares have outperformed its famed FAANG peer group it is often compared against.
That said, Apple is down 23% year-to-date. This decline is meaningful, but it’s worth noting that this loss greatly outperforms that of the Nasdaq, which has fallen 33%. That matters, because the tech-heavy index is seen as a bellwether for how the broader technology sector is performing. Thus, it’s fair to argue that Apple is the best tech stock available, so for those who believe the sector will rebound, it may make sense to buy now.
Apple has proven over its long history that it can better weather tech slowdowns when they arise. Thus, many investors look at Apple as a relatively defensive option, compared to its peers. The company’s dividend is another attribute which prompts such discussion. While Apple’s dividend only pays a modest 23 cents, yielding 0.7%, that’s still a 0.7% buffer against losses investors won’t have with most other tech shares. If not looked at as a buffer, it’s certainly a dependable income stream.
Apple posted yet another record quarter. The naysayers continue to provide a negative outlook ,just as they have throughout this year. That said, I think now is the time to take advantage of the illogical sentiment that has pushed AAPL stock lower again. It will pay off.
ASML Holding (ASML)
Source: Ralf Liebhold / Shutterstock
ASML Holding (NASDAQ:ASML) is a semiconductor firm that has fallen precipitously throughout 2022. This company has been plagued by the same doubts that have followed chip companies everywhere. Namely, persistent inflation and slowing global growth imply a slowdown in chip sales. By extension, that means the large, expensive lithography machines ASML produces should see waning demand as well.
Thus, its share price should drop.
Here’s the thing – the company’s share price has dropped, but its Q3 earnings report shows that demand remains quite strong. The company announced it sold 80 advanced lithography systems in Q3, which represented a decline of 3 machines on a year-over-year basis. In terms of used machines, 6 systems were sold compared to 8 one year prior. Thus, demand is essentially the same. Additionally, rising prices led to a marginal sales increase of 6%, with revenue reaching EUR 5.778 billion.
ASML is a highly-profitable company that provides a product few others can. In other words, it has a moat that is somewhat unassailable. That said, many investors are afraid to buy this no-brainer stock. Those that do should see strong upside realized over the long-term, while receiving a modest dividend to boot.
Visa (V)
Source: Kikinunchi / Shutterstock.com
Visa (NYSE:V) stock has a lot going for it. The company has posted four straight quarterly earnings beats over the past year, the most recent of which came a few weeks ago.
The credit card giant’s revenues were up 19% year-over-year, reaching $7.8 billion. That figure was ahead of the $7.5 billion Wall Street was anticipating. Strong sales translated to earnings per share of $1.93, also above the Street’s projections.
It hasn’t much mattered. Visa’s stock price continues to be punished, and has recently fallen below the $200 threshold as recession fears mount.
Therein lies another tailwind for Visa. Boston Fed reserve research shows that in the Great Recession of ‘08-’09, reliance on credit cards increased as uncertainty grew. The job market remains tight right now, but it’s fair to say that recession fears are as strong as ever. Influential figures are increasingly calling for a recession in 2023. That could actually provide a boon for Visa, should historical patterns play out as expected.
UnitedHealth Group (UNH)
Source: Ken Wolter / Shutterstock.com
UnitedHealth Group (NYSE:UNH) is one of a select group of stocks that are likely to be recommended, no matter the prevailing economy. As its name suggests, UnitedHealth is a leading healthcare stock, meaning it belongs to a sector with relatively inelastic demand. People need access to doctors and medical care, recession or not.
The firm’s recent Q3 earnings showed that to be true, with the company’s revenues climbing 12%. That led the company’s CEO Andrew Witty to reiterate previous 2022 projection, and suggest that earnings near the top end of its initial earnings outlook range were likely. Looking further out, UnitedHealth expects earnings growth in the range of 13-16% annually.
Thus, UnitedHealth tends to fare in any macro environment, mostly because its industry is relatively predictable. But it’s also a stock that includes a dividend that hasn’t been reduced since 1990. That’s another form of security that investors can rely on from UnitedHealth. All in all, these factors make UNH stock the type of equity that is perfect for the investor with a long-term horizon.
Microsoft (MSFT)
Source: NYCStock / Shutterstock.com
Microsoft (NASDAQ:MSFT) stock looks like a pretty safe bet right now. That might seem like a strange statement, given that MSFT stock continues to fall and is approaching its 52-week low.
However, I tend to zoom out and take a more holsitic view of Microsoft in this market. Prior to the pandemic, MSFT stock traded around the $185 level. While the stock is nearing this mark, it still remains above pre-pandemic levels. That said, growth has surged (in part as a result of the pandemic), making the company’s valuation multiple more attractive right now.
It’s certainly possible MSFT stock could fall further, but I don’t see it. One of the reasons why is the company’s stronger-than anticipated results for its third quarter. Microsoft’s Azure cloud results were slightly weaker than expected, but the overall numbers came in strong. Weaker-than-expected guidance led to a dropping Microsoft’s stock price, but I think investors are being too near-sighted on this company.
Microsoft projects it will record between $52.4 and $53.4 billion in revenues next quarter. The company posted $51.73 billion in 2021 during the same period and $43 billion in 2020 (certainly, 2021 was an aberration in many senses). Microsoft will be fine, just as long as investors don’t expect it to grow like it did between 2020 and 2021 indefinitely.
Domino’s Pizza (DPZ)
Source: Ken Wolter / Shutterstock.com
Domino’s Pizza (NYSE:DPZ) will contend with many of the same issues facing all retail operators across the economy into 2023. That means the company’s costs are likely to continue to run higher, negatively impacting its bottom line. For investors who look past those uncontrollable factors, what emerges is a strong opportunity.
Domino’s Pizza saw its net income slip in the most recent quarter. Net income fell to $100.5 million in Q3 from $120.4 million a year earlier. That’s rarely a positive sign. However, Domino’s did see supply chain costs increase by more than $62 million in the quarter. So, a $20 million decrease in the bottom line isn’t as bad as it could have been. This strongly implies that Domino’s management team is steering the company through a rough period well, via passing on costs to consumers.
Zooming out, it also appears that the broader picture of demand for Domino’s remains high. Sales increased by $70 million this past quarter, reaching $1.068 billion.
Should we be headed into a recession in 2023, I think Domino’s will perform well, for obvious reasons. This is a company that sells cheap pizza, replace more expensive out-of-home meal alternatives. For those looking to eat out on a budget, this company will likely be the way to go.
O’Reilly (ORLY)
Source: Jonathan Weiss / Shutterstock.com
O’Reilly (NASDAQ:ORLY) stock is on of the best options for investor stocks consider as we head into 2023. The auto parts retailer had a strong 2022, partly driven by wild swings in the car market, and in particular, surging demand for used cars. Semiconductor shortages meant fewer new cars were built, which sent buyers searching for used alternatives.
That dynamic has cooled, and used car prices are starting to break. That is probably a strong sign for O’Reilly moving forward. Demand for used cars is likely to increase the worse the economy gets. And in a recession, most consumers are less-likely to have the money for a new car purchase. Accordingly, with older cars requiring more maintenance, there are clear tailwinds building for O’Reilly.
Additionally, a recession is likely to lead consumers to hold on to their vehicles for longer. Thus, more demand for vehicle parts in times of distress could be the boon investors in ORLY stock are looking for.
The good news is that most investors aren’t fully sold on ORLY stock, compared to competitors like AutoZone (NYSE:AZO). Upside remains baked into O’Reilly’s target stock price, whereas AutoZone is trading above its consensus target price.
On the date of publication, Alex Sirois 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.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks.Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
The post 7 No-Brainer 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.
|
AAPL Apple $138.96 ASML ASML Holding $483.38 V Visa $200.10 UNH UnitedHealth Group $545.40 MSFT Microsoft $227.87 DPZ Domino’s Pizza $347.61 ORLY O’Reilly Automotive $830.20 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com It’s fair to assert that Apple (NASDAQ:AAPL) stock is the best of the big tech giants to invest in. That said, I think now is the time to take advantage of the illogical sentiment that has pushed AAPL stock lower again. Boston Fed reserve research shows that in the Great Recession of ‘08-’09, reliance on credit cards increased as uncertainty grew.
|
AAPL Apple $138.96 ASML ASML Holding $483.38 V Visa $200.10 UNH UnitedHealth Group $545.40 MSFT Microsoft $227.87 DPZ Domino’s Pizza $347.61 ORLY O’Reilly Automotive $830.20 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com It’s fair to assert that Apple (NASDAQ:AAPL) stock is the best of the big tech giants to invest in. That said, I think now is the time to take advantage of the illogical sentiment that has pushed AAPL stock lower again. UnitedHealth Group (UNH) Source: Ken Wolter / Shutterstock.com UnitedHealth Group (NYSE:UNH) is one of a select group of stocks that are likely to be recommended, no matter the prevailing economy.
|
AAPL Apple $138.96 ASML ASML Holding $483.38 V Visa $200.10 UNH UnitedHealth Group $545.40 MSFT Microsoft $227.87 DPZ Domino’s Pizza $347.61 ORLY O’Reilly Automotive $830.20 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com It’s fair to assert that Apple (NASDAQ:AAPL) stock is the best of the big tech giants to invest in. That said, I think now is the time to take advantage of the illogical sentiment that has pushed AAPL stock lower again. Weaker-than-expected guidance led to a dropping Microsoft’s stock price, but I think investors are being too near-sighted on this company.
|
AAPL Apple $138.96 ASML ASML Holding $483.38 V Visa $200.10 UNH UnitedHealth Group $545.40 MSFT Microsoft $227.87 DPZ Domino’s Pizza $347.61 ORLY O’Reilly Automotive $830.20 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com It’s fair to assert that Apple (NASDAQ:AAPL) stock is the best of the big tech giants to invest in. That said, I think now is the time to take advantage of the illogical sentiment that has pushed AAPL stock lower again. While Apple’s dividend only pays a modest 23 cents, yielding 0.7%, that’s still a 0.7% buffer against losses investors won’t have with most other tech shares.
|
18528.0
|
2022-11-07 00:00:00 UTC
|
After Hours Most Active for Nov 7, 2022 : ADT, LYFT, ENB, WBD, CMCSA, CSCO, MSFT, VZ, T, AAPL, MRK, NKE
|
AAPL
|
https://www.nasdaq.com/articles/after-hours-most-active-for-nov-7-2022-%3A-adt-lyft-enb-wbd-cmcsa-csco-msft-vz-t-aapl-mrk
|
nan
|
nan
|
The NASDAQ 100 After Hours Indicator is up 2.9 to 10,979.9. The total After hours volume is currently 88,012,335 shares traded.
The following are the most active stocks for the after hours session:
ADT Inc. (ADT) is unchanged at $8.66, with 8,589,305 shares traded. ADT's current last sale is 86.6% of the target price of $10.
Lyft, Inc. (LYFT) is -2.09 at $12.05, with 5,590,419 shares traded. Smarter Analyst Reports: Elastic Continues to Dip Despite Excellent Q2 Results
Enbridge Inc (ENB) is -0.0368 at $39.89, with 4,235,710 shares traded. ENB's current last sale is 85.61% of the target price of $46.6.
Warner Bros. Discovery, Inc. (WBD) is unchanged at $10.27, with 3,355,571 shares traded. WBD's current last sale is 47.77% of the target price of $21.5.
Comcast Corporation (CMCSA) is unchanged at $31.60, with 3,351,000 shares traded. CMCSA's current last sale is 71.01% of the target price of $44.5.
Cisco Systems, Inc. (CSCO) is unchanged at $44.55, with 3,011,307 shares traded. CSCO's current last sale is 85.67% of the target price of $52.
Microsoft Corporation (MSFT) is +0.19 at $228.06, with 2,687,474 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Verizon Communications Inc. (VZ) is -0.02 at $37.17, with 2,033,558 shares traded. VZ's current last sale is 74.34% of the target price of $50.
AT&T Inc. (T) is +0.02 at $18.38, with 1,842,804 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 81.69% of the target price of $22.5.
Apple Inc. (AAPL) is +0.2 at $139.12, with 1,680,289 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".
Merck & Company, Inc. (MRK) is -0.07 at $100.00, with 1,578,194 shares traded. As reported by Zacks, the current mean recommendation for MRK is in the "buy range".
Nike, Inc. (NKE) is unchanged at $93.44, with 1,436,705 shares traded. As reported by Zacks, the current mean recommendation for NKE 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.
|
Apple Inc. (AAPL) is +0.2 at $139.12, with 1,680,289 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Smarter Analyst Reports: Elastic Continues to Dip Despite Excellent Q2 Results
|
Apple Inc. (AAPL) is +0.2 at $139.12, with 1,680,289 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 MSFT is in the "buy range".
|
Apple Inc. (AAPL) is +0.2 at $139.12, with 1,680,289 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 88,012,335 shares traded.
|
Apple Inc. (AAPL) is +0.2 at $139.12, with 1,680,289 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is up 2.9 to 10,979.9.
|
18529.0
|
2022-11-07 00:00:00 UTC
|
Stocks Stay Hot as "Fear Gauge" Cools
|
AAPL
|
https://www.nasdaq.com/articles/stocks-stay-hot-as-fear-gauge-cools
|
nan
|
nan
|
Stocks secured sizable wins today, with the Dow now having added 825 points in the last two trading days. The S&P 500 and Nasdaq joined the blue-chip index in the black, with investors shrugging off potential Election Day headwinds, a supply warning from Apple (AAPL), and looming inflation data later in the week. Wall Street's "fear gauge," the Cboe Volatility Index (VIX), fell for the third straight day and logged its lowest close since Sept. 12.
Continue reading for more on today's market, including:
Put traders are growing bolder with Meta stock.
There's not a whole lot to like about CarMax stock.
Plus, ON bull signal flashing; a political stock to watch; and the 'gig' stock to target.
The Dow Jones Average (DJI - 32,827.00) added 423.8 points, or 1.3% for the day. Walgreens Boots Alliance (WBA) paced the 27 gainers with a 4.1% win, while Nike (NKE) led the laggards with a 2.5% drop.
The S&P 500 Index (SPX - 3,806.80) popped 36.3 points, or 1% for the day. The Nasdaq Composite (IXIC - 10,564.52) rose 89.3 points, or 0.9% for the session.
Lastly, the Cboe Volatility Index (VIX - 24.35) lost 0.2 point, or 0.8% for the session.
5 Things to Know Today
The Fannie Mae Home Purchase Sentiment Index took a tumble for the eighth straight month in October, and is at its lowest level on record. (MarketWatch)
Election Day misinformation is out there. See how these social media companies are planning to combat it. (CNBC)
Signal says don't sweat struggling ON Semiconductor stock.
Media stock tied to Donald Trump's 2024 prospects.
One analyst thinks DoorDash stock is back.
Oil, Gold Move in Opposite Directions
Oil prices took a breather, with black gold tied to the prospects of China easing its restrictive Covid measures. December-dated crude shed 82 cents, or 0.9% to trade at $91.79 per barrel.
Gold climbed once more, settling at four-week highs. December-dated gold added $3.90, or 0.2%, to settle at $1,680.50 an ounce.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The S&P 500 and Nasdaq joined the blue-chip index in the black, with investors shrugging off potential Election Day headwinds, a supply warning from Apple (AAPL), and looming inflation data later in the week. Wall Street's "fear gauge," the Cboe Volatility Index (VIX), fell for the third straight day and logged its lowest close since Sept. 12. 5 Things to Know Today The Fannie Mae Home Purchase Sentiment Index took a tumble for the eighth straight month in October, and is at its lowest level on record.
|
The S&P 500 and Nasdaq joined the blue-chip index in the black, with investors shrugging off potential Election Day headwinds, a supply warning from Apple (AAPL), and looming inflation data later in the week. Stocks secured sizable wins today, with the Dow now having added 825 points in the last two trading days. Wall Street's "fear gauge," the Cboe Volatility Index (VIX), fell for the third straight day and logged its lowest close since Sept. 12.
|
The S&P 500 and Nasdaq joined the blue-chip index in the black, with investors shrugging off potential Election Day headwinds, a supply warning from Apple (AAPL), and looming inflation data later in the week. Stocks secured sizable wins today, with the Dow now having added 825 points in the last two trading days. Plus, ON bull signal flashing; a political stock to watch; and the 'gig' stock to target.
|
The S&P 500 and Nasdaq joined the blue-chip index in the black, with investors shrugging off potential Election Day headwinds, a supply warning from Apple (AAPL), and looming inflation data later in the week. Stocks secured sizable wins today, with the Dow now having added 825 points in the last two trading days. Lastly, the Cboe Volatility Index (VIX - 24.35) lost 0.2 point, or 0.8% for the session.
|
18530.0
|
2022-11-07 00:00:00 UTC
|
US STOCKS-S&P 500 rises and Meta jumps as investors eye midterms
|
AAPL
|
https://www.nasdaq.com/articles/us-stocks-sp-500-rises-and-meta-jumps-as-investors-eye-midterms
|
nan
|
nan
|
By Noel Randewich and Amruta Khandekar
Nov 7 (Reuters) - The S&P 500 rose on Monday as investors focused on Tuesday's midterm elections that will determine control of Congress, while shares of Meta Platforms jumped on a report of job cuts at the Facebook parent.
Republican candidates have picked up momentum in polls and analysts expect a split government, with the GOP winning the House of Representatives and possibly the Senate, as the likely outcome possibly hindering Democratic President Joe Biden's agenda.
"The likelihood that the Republicans take the House or the Senate is pretty high, therefore guaranteeing some form of gridlock over the next couple of years. That would probably take tax hikes off the table, and any sort of big spending potentially perceived as inflationary off the table," said Ross Mayfield, an investment strategy analyst at Baird.
Focus this week will also be on U.S. consumer prices data for October, due out on Thursday, for clues about how much the U.S. Federal Reserve's rapid interest rate hikes are helping cool down the economy.
Four Fed policymakers on Friday indicated they would consider a smaller rate hike at their next policy meeting, despite new data showing another month of robust job gains and only small signs of progress in lowering inflation.
Traders are divided about whether the Fed will raise interest rates by 50 basis points or 75 basis points at the U.S. central bank's meeting in December.
"All else equal, whether the terminal rate sits at 4.5%, 5% or beyond, monetary policy is poised to have a negative effect on the economy heading into 2023," Glenmede's investment strategists wrote in a note on Monday.
All the three major U.S. indexes have slumped this year, with the tech-heavy Nasdaq .IXIC down 33% due to worries that aggressive monetary policy tightening could cripple the U.S. economy.
In afternoon trading, the S&P 500 was up 0.29% at 3,781.54 points.
The Nasdaq gained 0.03% to 10,478.70 points, while the Dow Jones Industrial Average was up 0.84% at 32,675.85 points.
Meta Platforms Inc META.Ojumped4.6% following a report that the company was planning to begin large-scale layoffs this week. The stock has slumped more than 70% so far this year.
Weighing on the tech-heavy Nasdaq, Apple Inc AAPL.O fell about 1% after the company said it expected lower shipments of premium iPhone 14 models than previously anticipated.
Digital World Acquisition Corp DWAC.O surged 44% after former U.S. President Donald Trump hinted at another White House bid. The blank-check firm has agreed to take social-media startup Trump Media & Technology Group Corp public.
Walgreens Boots Alliance Inc WBA.O gained 3.8%% after VillageMD, a primary care provider backed by the pharmacy chain, said it will acquire Summit Health in a deal valued at nearly $9 billion.
Of the 11 S&P 500 sector indexes, eight rose, led by energy .SPNY, up 1.51%, followed by a 0.95% gain in communication services .SPLRCL.
Advancing issues outnumbered falling ones within the S&P 500 .AD.SPX by a 1.4-to-one ratio.
The S&P 500 posted 15 new highs and 15 new lows; the Nasdaq recorded 63 new highs and 180 new lows.
S&P 500 by market caphttps://tmsnrt.rs/3t6WLuE
(Reporting by Shubham Batra and Amruta Khandekar in Bengaluru, and by Noel Randewich in Oakland, Calif.; Additional reporting by Shreyashi Sanyal and Devik Jain; Editing by Maju Samuel and Chizu Nomiyama)
((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.
|
Weighing on the tech-heavy Nasdaq, Apple Inc AAPL.O fell about 1% after the company said it expected lower shipments of premium iPhone 14 models than previously anticipated. By Noel Randewich and Amruta Khandekar Nov 7 (Reuters) - The S&P 500 rose on Monday as investors focused on Tuesday's midterm elections that will determine control of Congress, while shares of Meta Platforms jumped on a report of job cuts at the Facebook parent. Focus this week will also be on U.S. consumer prices data for October, due out on Thursday, for clues about how much the U.S. Federal Reserve's rapid interest rate hikes are helping cool down the economy.
|
Weighing on the tech-heavy Nasdaq, Apple Inc AAPL.O fell about 1% after the company said it expected lower shipments of premium iPhone 14 models than previously anticipated. By Noel Randewich and Amruta Khandekar Nov 7 (Reuters) - The S&P 500 rose on Monday as investors focused on Tuesday's midterm elections that will determine control of Congress, while shares of Meta Platforms jumped on a report of job cuts at the Facebook parent. Traders are divided about whether the Fed will raise interest rates by 50 basis points or 75 basis points at the U.S. central bank's meeting in December.
|
Weighing on the tech-heavy Nasdaq, Apple Inc AAPL.O fell about 1% after the company said it expected lower shipments of premium iPhone 14 models than previously anticipated. Traders are divided about whether the Fed will raise interest rates by 50 basis points or 75 basis points at the U.S. central bank's meeting in December. All the three major U.S. indexes have slumped this year, with the tech-heavy Nasdaq .IXIC down 33% due to worries that aggressive monetary policy tightening could cripple the U.S. economy.
|
Weighing on the tech-heavy Nasdaq, Apple Inc AAPL.O fell about 1% after the company said it expected lower shipments of premium iPhone 14 models than previously anticipated. By Noel Randewich and Amruta Khandekar Nov 7 (Reuters) - The S&P 500 rose on Monday as investors focused on Tuesday's midterm elections that will determine control of Congress, while shares of Meta Platforms jumped on a report of job cuts at the Facebook parent. "The likelihood that the Republicans take the House or the Senate is pretty high, therefore guaranteeing some form of gridlock over the next couple of years.
|
18531.0
|
2022-11-07 00:00:00 UTC
|
US STOCKS-Wall St struggles for direction as investors brace for midterms; Meta jumps
|
AAPL
|
https://www.nasdaq.com/articles/us-stocks-wall-st-struggles-for-direction-as-investors-brace-for-midterms-meta-jumps
|
nan
|
nan
|
By Amruta Khandekar and Devik Jain
Nov 7 (Reuters) - U.S. stock indexes struggled for direction on Monday, with focus shifting to Tuesday's midterm elections that will determine control of Congress, while shares of Meta Platforms jumped on a report of job cuts at the Facebook parent.
Republicans have picked up momentum in polls and analysts see a split government, with the GOP winning the House of Representatives and possibly the Senate, as the likely outcome possibly hindering Democratic President Joe Biden's agenda.
"The history of midterm elections tends to usher in gridlock, and markets are leaning into that concept," said Art Hogan, chief market strategist at B. Riley Financial.
"That in fact means no big changes to tax code or regulation or policy initiatives. You just don't necessarily get anything done and that truly is a no-news-is-good-news environment for equities."
Focus will also be on U.S. consumer prices data for October, due to be released on Thursday, for clues on whether the U.S. Federal Reserve's rapid interest rate hikes are helping cool down the economy.
Four Fed policymakers on Friday indicated they would still consider a smaller rate hike at their next policy meeting, despite new data showing another month of robust job gains and only small signs of progress in lowering inflation.
Traders are now betting on 61% odds of a 50-basis point rate hike at the U.S. central bank's meeting in December. FEDWATCH
"The Fed now faces a challenging communications objective, given that they will need to slow the pace of rate increases at some point, but must do so without letting markets develop yet another 'pivot' narrative," Glenmede's investment strategists wrote in a note.
"All else equal, whether the terminal rate sits at 4.5%, 5% or beyond, monetary policy is poised to have a negative effect on the economy heading into 2023."
All the three major U.S. indexes have slumped this year, with the tech-heavy Nasdaq .IXIC down 33.1% on worries that aggressive monetary policy tightening could tip the economy into a recession.
At 11:46 a.m. ET, the Dow Jones Industrial Average .DJI was up 149.04 points, or 0.46%, at 32,552.26, the S&P 500 .SPX was up 2.35 points, or 0.06%, at 3,772.90, and the Nasdaq Composite .IXIC was down 20.54 points, or 0.20%, at 10,454.72.
Meta Platforms Inc META.O climbed 5.4% following a report that the company was planning to begin large-scale layoffs this week. The stock has lost more than 71% in value so far this year.
Weighing on the tech-heavy Nasdaq, Apple Inc AAPL.O fell 1.2% after the company said it expected lower shipments of premium iPhone 14 models than previously anticipated.
Digital World Acquisition Corp DWAC.O surged 21% as former U.S. President Donald Trump hinted at another White House bid. The blank-check firm has agreed to take social-media startup Trump Media & Technology Group Corp public.
Walgreens Boots Alliance Inc WBA.O gained 4.8% as VillageMD, a primary care provider backed by the pharmacy chain, said it will acquire Summit Health in a deal valued at nearly $9 billion.
Advancing issues outnumbered decliners by a 1.14-to-1 ratio on the NYSE and by a 1.02-to-1 ratio on the Nasdaq.
The S&P index recorded 15 new 52-week highs and 11 new lows, while the Nasdaq recorded 58 new highs and 145 new lows.
(Reporting by Shubham Batra and Amruta Khandekar in Bengaluru; Additional reporting by Shreyashi Sanyal and Devik Jain; Editing by Shounak Dasgupta and Maju Samuel)
((Shubham.Batra@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Weighing on the tech-heavy Nasdaq, Apple Inc AAPL.O fell 1.2% after the company said it expected lower shipments of premium iPhone 14 models than previously anticipated. By Amruta Khandekar and Devik Jain Nov 7 (Reuters) - U.S. stock indexes struggled for direction on Monday, with focus shifting to Tuesday's midterm elections that will determine control of Congress, while shares of Meta Platforms jumped on a report of job cuts at the Facebook parent. Four Fed policymakers on Friday indicated they would still consider a smaller rate hike at their next policy meeting, despite new data showing another month of robust job gains and only small signs of progress in lowering inflation.
|
Weighing on the tech-heavy Nasdaq, Apple Inc AAPL.O fell 1.2% after the company said it expected lower shipments of premium iPhone 14 models than previously anticipated. By Amruta Khandekar and Devik Jain Nov 7 (Reuters) - U.S. stock indexes struggled for direction on Monday, with focus shifting to Tuesday's midterm elections that will determine control of Congress, while shares of Meta Platforms jumped on a report of job cuts at the Facebook parent. Traders are now betting on 61% odds of a 50-basis point rate hike at the U.S. central bank's meeting in December.
|
Weighing on the tech-heavy Nasdaq, Apple Inc AAPL.O fell 1.2% after the company said it expected lower shipments of premium iPhone 14 models than previously anticipated. By Amruta Khandekar and Devik Jain Nov 7 (Reuters) - U.S. stock indexes struggled for direction on Monday, with focus shifting to Tuesday's midterm elections that will determine control of Congress, while shares of Meta Platforms jumped on a report of job cuts at the Facebook parent. All the three major U.S. indexes have slumped this year, with the tech-heavy Nasdaq .IXIC down 33.1% on worries that aggressive monetary policy tightening could tip the economy into a recession.
|
Weighing on the tech-heavy Nasdaq, Apple Inc AAPL.O fell 1.2% after the company said it expected lower shipments of premium iPhone 14 models than previously anticipated. By Amruta Khandekar and Devik Jain Nov 7 (Reuters) - U.S. stock indexes struggled for direction on Monday, with focus shifting to Tuesday's midterm elections that will determine control of Congress, while shares of Meta Platforms jumped on a report of job cuts at the Facebook parent. Traders are now betting on 61% odds of a 50-basis point rate hike at the U.S. central bank's meeting in December.
|
18532.0
|
2022-11-07 00:00:00 UTC
|
Why Meta Platforms Stock Was Moving Higher Today
|
AAPL
|
https://www.nasdaq.com/articles/why-meta-platforms-stock-was-moving-higher-today
|
nan
|
nan
|
What happened
Shares of Meta Platforms (NASDAQ: META) were gaining today after the struggling FAANG stock got a much-needed analyst upgrade from Itau BBA.
As of 10:24 a.m. ET, the stock was up 4.9%.
Image source: Meta Platforms.
So what
Itau BBA, a Brazilian investment bank that's one of Latin America's largest, lifted its rating on the tech giant from market perform to outperform. Analyst Thiago Kapulskis said the current price reflects an extremely bearish case, assuming that the company will continue to be disrupted by Apple and TikTok and see cash flow erode as it spends on its metaverse project and watches its market share in social media decline.
Though Kapulskis acknowledged the range of possible outcomes for Meta vary widely, the analyst said the current price makes the stock a buy, adding that the "right price has finally come." In addition to the upgrade, Kapulskis raised his price target to $102, an 11% premium from its closing price Friday.
Now what
Meta stock has plunged 75% from its peak last year, giving up $750 billon in market value along the way. After diving again on its recent earnings report, the stock has emerged as one of the biggest battleground stocks on Wall Street.
As Kapulskis argues, the stock looks cheap at a price-to-earnings ratio of less than 10, given that Meta still has the dominant franchise in social media. However, the company is in a much different place than it was a couple of years ago. Apple has weakened its ad targeting abilities, and TikTok has taken significant market share as the hot new social platform.
Additionally, Meta's Reality Labs division is incinerating cash at an unbelievable rate, losing $3.7 billion in just the third quarter, and the company said losses from the metaverse-focused division would widen next year, implying that they could reach $15 billion to $20 billion in 2023.
There's a clearly a bull case for Meta Platforms at the current price, but given the huge risks it's taking in the metaverse, this isn't a slam dunk by any means. At this point, investors may want to approach the tech stock with caution.
10 stocks we like better than Meta Platforms, Inc.
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Meta Platforms, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 30, 2022
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jeremy Bowman has positions in Meta Platforms, 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.
|
So what Itau BBA, a Brazilian investment bank that's one of Latin America's largest, lifted its rating on the tech giant from market perform to outperform. Analyst Thiago Kapulskis said the current price reflects an extremely bearish case, assuming that the company will continue to be disrupted by Apple and TikTok and see cash flow erode as it spends on its metaverse project and watches its market share in social media decline. There's a clearly a bull case for Meta Platforms at the current price, but given the huge risks it's taking in the metaverse, this isn't a slam dunk by any means.
|
What happened Shares of Meta Platforms (NASDAQ: META) were gaining today after the struggling FAANG stock got a much-needed analyst upgrade from Itau BBA. 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.
|
What happened Shares of Meta Platforms (NASDAQ: META) were gaining today after the struggling FAANG stock got a much-needed analyst upgrade from Itau BBA. Though Kapulskis acknowledged the range of possible outcomes for Meta vary widely, the analyst said the current price makes the stock a buy, adding that the "right price has finally come." See the 10 stocks *Stock Advisor returns as of September 30, 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.
|
ET, the stock was up 4.9%. 10 stocks we like better than Meta Platforms, Inc. The Motley Fool has positions in and recommends Apple and Meta Platforms, Inc.
|
18533.0
|
2022-11-07 00:00:00 UTC
|
Guangzhou's COVID outbreak deepens as more lockdowns loom in China
|
AAPL
|
https://www.nasdaq.com/articles/guangzhous-covid-outbreak-deepens-as-more-lockdowns-loom-in-china
|
nan
|
nan
|
The increase was modest by global standards but significant for China, where outbreaks are quickly tackled when they surface. Economically vital cities, including the Chinese capital Beijing, have jumped on the rising infections, demanding more PCR tests for residents and locking down neighbourhoods and even districts in some cases.
The sharp rebound will test China's ability to keep its COVID measures surgical and targeted, and challenge the expectations of investors that the world's second-largest economy could soon reopen its borders or even back off from its zero-tolerance approach.
Guangzhou, capital of Guangdong province, reported 2,377 new local cases for Nov. 7, up from 1,971 the previous day. It was a dramatic jump from just double-digit increases two weeks ago, as the sprawling southern Chinese city, dubbed the "factory floor of the world", battles its most serious outbreak ever.
Many of its districts, including Haizhu at the heart of city, have imposed varying levels of curbs and lockdowns. But, so far, Guangzhou has resisted a blanket lockdown like the one in Shanghai earlier this year.
Shanghai, currently not facing a COVID resurgence, went into a lockdown in April and May after reporting several thousands of new infections daily in the last week of March.
Zhengzhou, capital of central Henan province and a major production base for Apple supplier Foxconn 2317.TW, reported 733 new local cases for Nov. 7, more than doubling from a day earlier.
In Beijing, authorities detected 64 new local infections, a small uptick relative to Guangzhou and Zhengzhou, but enough to spark a new burst of PCR tests for many of its residents and a lockdown of more buildings and neighbourhoods where cases had been found.
"The lockdown situation has continued to deteriorate quickly across the country over the past week, with our in-house China COVID lockdown index rising to 12.2% of China's total GDP from 9.5% last Monday," Nomura wrote in a note on Monday.
"We continue to believe that, while Beijing may fine-tune some of its COVID measures in coming weeks, those fine-tuning measures could be more than offset by local officials' tightening of the zero-COVID strategy."
In the southwest metropolis of Chongqing, the city reported 281 new local cases, more than doubling from 120 a day earlier.
Chongqing officials have put new curbs on areas in at least four districts, closing some karaoke lounges, dance halls and entertainment venues, in a situation which a local official described as "complex and severe".
(Reporting by Ryan Woo, Bernard Orr, Liz Lee and Jing Wang; Editing by Raju Gopalakrishnan)
((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.
|
Economically vital cities, including the Chinese capital Beijing, have jumped on the rising infections, demanding more PCR tests for residents and locking down neighbourhoods and even districts in some cases. The sharp rebound will test China's ability to keep its COVID measures surgical and targeted, and challenge the expectations of investors that the world's second-largest economy could soon reopen its borders or even back off from its zero-tolerance approach. In Beijing, authorities detected 64 new local infections, a small uptick relative to Guangzhou and Zhengzhou, but enough to spark a new burst of PCR tests for many of its residents and a lockdown of more buildings and neighbourhoods where cases had been found.
|
Economically vital cities, including the Chinese capital Beijing, have jumped on the rising infections, demanding more PCR tests for residents and locking down neighbourhoods and even districts in some cases. Guangzhou, capital of Guangdong province, reported 2,377 new local cases for Nov. 7, up from 1,971 the previous day. In the southwest metropolis of Chongqing, the city reported 281 new local cases, more than doubling from 120 a day earlier.
|
Economically vital cities, including the Chinese capital Beijing, have jumped on the rising infections, demanding more PCR tests for residents and locking down neighbourhoods and even districts in some cases. In Beijing, authorities detected 64 new local infections, a small uptick relative to Guangzhou and Zhengzhou, but enough to spark a new burst of PCR tests for many of its residents and a lockdown of more buildings and neighbourhoods where cases had been found. "The lockdown situation has continued to deteriorate quickly across the country over the past week, with our in-house China COVID lockdown index rising to 12.2% of China's total GDP from 9.5% last Monday," Nomura wrote in a note on Monday.
|
The increase was modest by global standards but significant for China, where outbreaks are quickly tackled when they surface. Economically vital cities, including the Chinese capital Beijing, have jumped on the rising infections, demanding more PCR tests for residents and locking down neighbourhoods and even districts in some cases. Guangzhou, capital of Guangdong province, reported 2,377 new local cases for Nov. 7, up from 1,971 the previous day.
|
18534.0
|
2022-11-07 00:00:00 UTC
|
3 Charts Prove Why Now Is The Time to Buy Stocks
|
AAPL
|
https://www.nasdaq.com/articles/3-charts-prove-why-now-is-the-time-to-buy-stocks
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
We’re in the midst of a nasty bear market. But every bear market in history has become a new bull market. So, prescient investors know that at some point, today’s market will create a golden buying opportunity.
That time is now.
Everything’s about the Fed these days. The so-called “masters of the financial universe” are hiking interest rates rapidly and aggressively to stymie inflation. Unfortunately, it’s also curtailing economic activity and leading to significantly lower stock prices.
The good news is that since stocks are so beaten-up, with depressed-enough valuations, when the Fed decides to stop hiking interest rates, they will soar. The bad news is that no one really knows when the Fed will stop hiking interest rates.
On Friday, though, we may have received some very important clues from the October jobs report. And they indicate that a Fed pivot (read our thoughts on what a “pivot” means) is very close and that the time to buy stocks is right now.
“Unhealthy” Job Growth
At first glance, Friday’s jobs report was scalding hot. The U.S. economy added 261,000 jobs in October, much better than the 193,000 expected by economists.
The big jobs number is deceiving, however, because it was “unhealthy” jobs growth. That is, 60% of the job growth came from the lower-paying services sectors.
That’s worrisome.
Lower-paying services include things like retail, travel, and entertainment. Those are the last dominos to fall in an economic slowdown. That’s mostly because those are consumer-driven industries, and consumers tend to be the last to react to a slowdown. That is, businesses usually recognize an economic slowdown before it happens and pull back spending and hiring before it arrives. Consumers, on the other hand, tend to recognize a slowdown only when it happens and pull back their spending only once it hits.
So, if we’re seeing outsized growth in consumer-driven industries and small growth or losses in business-driven industries, that’s a “tell” that we’re heading into a major slowdown.
Indeed, whenever the lower-paying services sector – which normally contributes about 40% of job growth every month – starts to consistently account for more than 60% of monthly job growth, the labor market starts to lose jobs shortly thereafter.
In early 2007, the lower-paying services sector had a string of months where it accounted for more than 60% of jobs. By mid-2007, the once-strong labor market was shedding jobs.
And in mid-2000, the lower-paying services sector had a string of months where it accounted for more than 60% of jobs. By early 2001, the once-strong labor market was shedding jobs.
In other words, the fact that the bulk of hiring today is coming from the lower-paying services sector indicates that the labor market is on its last legs before a collapse.
But you don’t need the data to tell you that – just look at all the recent jobs headlines.
Amazon (AMZN) and Apple (AAPL) have both paused hiring. Twitter (TWTR) is reducing its workforce by 50%, while Stripe and Lyft (LYFT) lay off 14% and 13% of their workforces, respectively. And for its part, Coca-Cola (KO) is offering voluntary buyouts.
The layoffs are piling up. The labor market is about to crash.
For stocks, that’s bullish. High interest rates hurt growth stocks. But historically speaking, the Fed has backed down from aggressive monetary policy when Americans are losing jobs.
Therefore, if Americans lose jobs in droves over the next few months, the Fed will pivot dovish. And stocks will rally.
Unemployment Will Encourage a Fed Pivot
Another interesting facet of Friday’s jobs report was that the unemployment rate ticked up 20 basis points to 3.7%.
While that may seem like nothing, we think it is very important.
Please understand: When the unemployment rate rises, it doesn’t rise gradually – it spikes. Specifically, during recessionary periods, the unemployment rate gains 20 basis points every month.
We rose by 20 basis points last month. Given all the layoff announcements, it seems likely we will see 20 bps increases per month for the near future. At that pace, unemployment will exceed 4.4% by February 2023.
That’s significant because the Fed has signaled that 4.4% unemployment is a possibility in 2023. Therefore, the Fed has the greenlight to hike rates until unemployment hits 4.4%.
But if joblessness exceeds that level, the pressure will be on the Fed to stop hiking rates.
Our analysis suggests it could exceed 4.4% by February 2023. That means that within three to four months, the Fed will need to seriously consider ending its rate-hike campaign.
If the Fed’s last rate hike is in February 2023, then stocks will absolutely soar throughout the rest of 2023. And so, the time to buy stocks before that big rally is right now.
Wage Growth Is Collapsing
One of the stickiest parts of inflation is wage inflation. That’s partly why the Fed has been so aggressive with rate hikes. Wage inflation has been running above-trend ever since the pandemic emerged, and the Fed has wanted to snuff that out.
But wage growth is now falling quite rapidly and is on track to hit its pre-pandemic levels within a few months.
Specifically, average hourly earnings rose 4.7% year-over-year in October, down from 5% growth in the prior month. Assuming this 30 basis points per month of decelerating growth persists, then wage growth will fall back to 3% by April 2023.
Wage growth averaged about 3% in the years before the pandemic. Therefore, we have visibility to wage growth normalizing to pre-pandemic levels within the next six months.
There simply is no reason for the Fed to hike rates at that point.
If, indeed, we see a Fed pivot by early 2023, then stocks are due for a massive rally between late 2022 and late 2023.
The Final Word on the Coming Fed Pivot
The bear market of 2022 has been brutal. But the one thing about bear markets is that they always turn into bull markets.
This one looks like it could turn into a bull market very soon.
The Fed is playing the “tough guy” right now. But it’s just an act. As soon as the labor market falls apart and wage growth collapses, it will have to ditch that act. The data says that’s going to happen very soon – by early 2023. And therefore, a Fed pivot is on the way within the next three to six months.
Stocks tend to sniff things out before they happen. That’s why stocks aren’t crashing right now and why they haven’t made new lows even after the Fed’s super-hawkish press conference this week. The market knows that what the Fed does is more important than what it says – and that it will pivot by early 2023.
Mark my words: Next year will be a record-breaking year for stocks.
Find out how to best play this coming massive rally.
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 3 Charts Prove Why Now Is The Time to Buy Stocks 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.
|
Amazon (AMZN) and Apple (AAPL) have both paused hiring. The good news is that since stocks are so beaten-up, with depressed-enough valuations, when the Fed decides to stop hiking interest rates, they will soar. In other words, the fact that the bulk of hiring today is coming from the lower-paying services sector indicates that the labor market is on its last legs before a collapse.
|
Amazon (AMZN) and Apple (AAPL) have both paused hiring. InvestorPlace - Stock Market News, Stock Advice & Trading Tips We’re in the midst of a nasty bear market. Indeed, whenever the lower-paying services sector – which normally contributes about 40% of job growth every month – starts to consistently account for more than 60% of monthly job growth, the labor market starts to lose jobs shortly thereafter.
|
Amazon (AMZN) and Apple (AAPL) have both paused hiring. InvestorPlace - Stock Market News, Stock Advice & Trading Tips We’re in the midst of a nasty bear market. Indeed, whenever the lower-paying services sector – which normally contributes about 40% of job growth every month – starts to consistently account for more than 60% of monthly job growth, the labor market starts to lose jobs shortly thereafter.
|
Amazon (AMZN) and Apple (AAPL) have both paused hiring. Unemployment Will Encourage a Fed Pivot Another interesting facet of Friday’s jobs report was that the unemployment rate ticked up 20 basis points to 3.7%. And therefore, a Fed pivot is on the way within the next three to six months.
|
18535.0
|
2022-11-07 00:00:00 UTC
|
US STOCKS-Wall St inches higher as investors brace for midterms, Meta jumps
|
AAPL
|
https://www.nasdaq.com/articles/us-stocks-wall-st-inches-higher-as-investors-brace-for-midterms-meta-jumps
|
nan
|
nan
|
By Amruta Khandekar and Devik Jain
Nov 7 (Reuters) - U.S. stock indexes edged higher in choppy trading on Monday, with focus shifting to Tuesday's midterm elections that will determine control of Congress, while shares of Meta Platforms jumped on a report of job cuts at the Facebook parent.
Republicans have picked up momentum in polls and analysts see a split government, with the GOP winning the House of Representatives and possibly the Senate, as the likely outcome possibly hindering Democratic President Joe Biden's agenda.
"Under this election outcome scenario, we doubt we would make any major changes to our forecasts for GDP growth, inflation or the federal funds rate as a result of the election," Wells Fargo economists said.
"Instead, status quo and political gridlock strike us as the most likely outcome, with the possibility for some government shutdown/debt ceiling theatrics over the next two years."
A split government could result in political gridlock that stymies major policy changes, an outcome that investors see as favorable for equities.
Focus will also be on U.S. consumer prices data for October, due to be released on Thursday, for clues on whether the U.S. Federal Reserve's rapid interest rate hikes are helping cool down the economy.
Four Fed policymakers on Friday indicated they would still consider a smaller rate hike at their next policy meeting, despite new data showing another month of robust job gains and only small signs of progress in lowering inflation.
Traders are now betting on 67% odds of a 50-basis point rate hike at the U.S. central bank's meeting in December. FEDWATCH
All the three major U.S. indexes are in bear market territory, from their previous record closing highs. The S&P 500 has lost nearly 20.7% year-to-date on worries that aggressive monetary policy tightening could tip the economy into a recession.
At 10:06 a.m. ET, the Dow Jones Industrial Average .DJI was up 117.28 points, or 0.36%, at 32,520.50, the S&P 500 .SPX was up 9.74 points, or 0.26%, at 3,780.29, and the Nasdaq Composite .IXIC was up 17.44 points, or 0.17%, at 10,492.69.
Shares of Meta Platforms Inc META.O climbed 5.4% following a report that the company was planning to begin large-scale layoffs this week.
Weighing on the tech-heavy Nasdaq, Apple Inc AAPL.O fell 1.2% after the company said it expected lower shipments of premium iPhone 14 models than previously anticipated.
Digital World Acquisition Corp DWAC.O surged 21% as former U.S. President Donald Trump hinted at another White House bid. The blank check firm has agreed to take social-media startup Trump Media & Technology Group Corp public.
Walgreens Boots Alliance Inc WBA.O rose 4.8% as VillageMD, a primary care provider backed by the pharmacy chain, said it will acquire Summit Health in a deal valued at nearly $9 billion.
Advancing issues outnumbered decliners for a 1.31-to-1 ratio on the NYSE and a 1.10-to-1 ratio on the Nasdaq.
The S&P index recorded six new 52-week highs and two new lows, while the Nasdaq recorded 43 new highs and 95 new lows.
(Reporting by Shubham Batra and Amruta Khandekar in Bengaluru; Additional reporting by Shreyashi Sanyal and Devik Jain; 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.
|
Weighing on the tech-heavy Nasdaq, Apple Inc AAPL.O fell 1.2% after the company said it expected lower shipments of premium iPhone 14 models than previously anticipated. By Amruta Khandekar and Devik Jain Nov 7 (Reuters) - U.S. stock indexes edged higher in choppy trading on Monday, with focus shifting to Tuesday's midterm elections that will determine control of Congress, while shares of Meta Platforms jumped on a report of job cuts at the Facebook parent. Focus will also be on U.S. consumer prices data for October, due to be released on Thursday, for clues on whether the U.S. Federal Reserve's rapid interest rate hikes are helping cool down the economy.
|
Weighing on the tech-heavy Nasdaq, Apple Inc AAPL.O fell 1.2% after the company said it expected lower shipments of premium iPhone 14 models than previously anticipated. A split government could result in political gridlock that stymies major policy changes, an outcome that investors see as favorable for equities. Traders are now betting on 67% odds of a 50-basis point rate hike at the U.S. central bank's meeting in December.
|
Weighing on the tech-heavy Nasdaq, Apple Inc AAPL.O fell 1.2% after the company said it expected lower shipments of premium iPhone 14 models than previously anticipated. By Amruta Khandekar and Devik Jain Nov 7 (Reuters) - U.S. stock indexes edged higher in choppy trading on Monday, with focus shifting to Tuesday's midterm elections that will determine control of Congress, while shares of Meta Platforms jumped on a report of job cuts at the Facebook parent. Republicans have picked up momentum in polls and analysts see a split government, with the GOP winning the House of Representatives and possibly the Senate, as the likely outcome possibly hindering Democratic President Joe Biden's agenda.
|
Weighing on the tech-heavy Nasdaq, Apple Inc AAPL.O fell 1.2% after the company said it expected lower shipments of premium iPhone 14 models than previously anticipated. By Amruta Khandekar and Devik Jain Nov 7 (Reuters) - U.S. stock indexes edged higher in choppy trading on Monday, with focus shifting to Tuesday's midterm elections that will determine control of Congress, while shares of Meta Platforms jumped on a report of job cuts at the Facebook parent. A split government could result in political gridlock that stymies major policy changes, an outcome that investors see as favorable for equities.
|
18536.0
|
2022-11-07 00:00:00 UTC
|
US STOCKS-Wall St set to open higher with focus on midterm elections
|
AAPL
|
https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-open-higher-with-focus-on-midterm-elections
|
nan
|
nan
|
By Shubham Batra and Amruta Khandekar
Nov 7 (Reuters) - U.S. stock indexes were set to open higher on Monday following a rollercoaster week, with investor focus shifting to Tuesday's midterm elections that will determine control of Congress.
Republicans have picked up momentum in polls and analysts see a split government, with the GOP winning the House of Representatives and possibly the Senate, as the likely outcome possibly hindering Democratic President Joe Biden's agenda.
"A gridlock is usually positive for the market ... spending doesn't go up and the market seems to enjoy that," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
U.S. consumer prices data for October, due to be released on Thursday, will also be scrutinized as investors try to gauge whether the U.S. Federal Reserve's rapid interest rate hikes are helping cool down the economy.
Wall Street's major indexes recorded gains on Friday ending a volatile week that saw a mixed jobs report and comments from Fed officials on the pace of rate hikes.
Traders are now betting on 67% odds of a 50-basis point rate hike at the U.S. central bank's meeting in December. FEDWATCH
All the three indexes are in bear market territory, from their previous record closing highs. The S&P 500 .SPX index has lost nearly 20.9% year-to-date on worries that aggressive monetary policy tightening could tip the economy into a recession.
At 8:34 a.m. ET, Dow e-minis 1YMcv1 were up 72 points, or 0.22%, S&P 500 e-minis EScv1 were up 7.75 points, or 0.21%, and Nasdaq 100 e-minis NQcv1 were up 25.25 points, or 0.23%.
The CBOE Volatility index .VIX, also known as Wall Street's fear gauge, rose to 25.38 points a day after closing at its lowest since Sept. 13.
Apple Inc AAPL.O fell 1% in premarket trading after the company said it expected lower shipments of premium iPhone 14 models than previously anticipated.
Meta Platforms Inc META.O jumped 3.2% following a report that the Facebook parent was planning to begin large-scale layoffs this week that will affect thousands of employees.
U.S.-listed shares of Chinese firms JD.Com Inc JD.O, Alibaba Group Holding Ltd BABA.N and Baidu Inc BIDU.O rose between 1.7% and 2.9%, despite Beijing's reaffirmation of its strict COVID-19 policies over the weekend.
Digital World Acquisition Corp DWAC.O surged 26.9% as former U.S. President Donald Trump hinted at another White House bid. The blank check firm has agreed to take social-media startup Trump Media & Technology Group Corp public.
(Reporting by Shubham Batra and Amruta Khandekar in Bengaluru; Additional reporting by Shreyashi Sanyal and Devik Jain; 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.
|
Apple Inc AAPL.O fell 1% in premarket trading after the company said it expected lower shipments of premium iPhone 14 models than previously anticipated. By Shubham Batra and Amruta Khandekar Nov 7 (Reuters) - U.S. stock indexes were set to open higher on Monday following a rollercoaster week, with investor focus shifting to Tuesday's midterm elections that will determine control of Congress. U.S. consumer prices data for October, due to be released on Thursday, will also be scrutinized as investors try to gauge whether the U.S. Federal Reserve's rapid interest rate hikes are helping cool down the economy.
|
Apple Inc AAPL.O fell 1% in premarket trading after the company said it expected lower shipments of premium iPhone 14 models than previously anticipated. Wall Street's major indexes recorded gains on Friday ending a volatile week that saw a mixed jobs report and comments from Fed officials on the pace of rate hikes. The CBOE Volatility index .VIX, also known as Wall Street's fear gauge, rose to 25.38 points a day after closing at its lowest since Sept. 13.
|
Apple Inc AAPL.O fell 1% in premarket trading after the company said it expected lower shipments of premium iPhone 14 models than previously anticipated. Wall Street's major indexes recorded gains on Friday ending a volatile week that saw a mixed jobs report and comments from Fed officials on the pace of rate hikes. ET, Dow e-minis 1YMcv1 were up 72 points, or 0.22%, S&P 500 e-minis EScv1 were up 7.75 points, or 0.21%, and Nasdaq 100 e-minis NQcv1 were up 25.25 points, or 0.23%.
|
Apple Inc AAPL.O fell 1% in premarket trading after the company said it expected lower shipments of premium iPhone 14 models than previously anticipated. FEDWATCH All the three indexes are in bear market territory, from their previous record closing highs. The CBOE Volatility index .VIX, also known as Wall Street's fear gauge, rose to 25.38 points a day after closing at its lowest since Sept. 13.
|
18537.0
|
2022-11-07 00:00:00 UTC
|
Pre-Market Most Active for Nov 7, 2022 : TQQQ, SQQQ, PLTR, NIO, GCT, AAPL, DWAC, META, XPEV, BABA, BBD, CVNA
|
AAPL
|
https://www.nasdaq.com/articles/pre-market-most-active-for-nov-7-2022-%3A-tqqq-sqqq-pltr-nio-gct-aapl-dwac-meta-xpev-baba
|
nan
|
nan
|
The NASDAQ 100 Pre-Market Indicator is up 18.35 to 10,875.38. The total Pre-Market volume is currently 33,548,642 shares traded.
The following are the most active stocks for the pre-market session:
ProShares UltraPro QQQ (TQQQ) is +0.09 at $18.04, with 8,027,252 shares traded. This represents a 10.54% increase from its 52 Week Low.
ProShares UltraPro Short QQQ (SQQQ) is -0.33 at $59.22, with 2,594,544 shares traded. This represents a 110.37% increase from its 52 Week Low.
Palantir Technologies Inc. (PLTR) is -0.19 at $7.74, with 2,265,369 shares traded. Smarter Analyst Reports: Palantir Bags $43M Contract from Space Systems Command
NIO Inc. (NIO) is +0.37 at $12.05, with 2,050,032 shares traded.NIO is scheduled to provide an earnings report on 11/10/2022, for the fiscal quarter ending Sep2022.
GigaCloud Technology Inc (GCT) is +1.71 at $6.37, with 1,941,628 shares traded. As reported by Zacks, the current mean recommendation for GCT is in the "strong buy range".
Apple Inc. (AAPL) is -1.76 at $136.62, with 1,938,738 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".
Digital World Acquisition Corp. (DWAC) is +4.52 at $22.00, with 1,892,812 shares traded.
Meta Platforms, Inc. (META) is +2.8 at $93.59, with 1,508,094 shares traded. As reported by Zacks, the current mean recommendation for META is in the "buy range".
XPeng Inc. (XPEV) is +0.36 at $8.24, with 1,348,191 shares traded. XPEV's current last sale is 32.96% of the target price of $25.
Alibaba Group Holding Limited (BABA) is +1.21 at $71.02, with 732,574 shares traded. As reported by Zacks, the current mean recommendation for BABA is in the "buy range".
Banco Bradesco Sa (BBD) is -0.06 at $3.78, with 554,274 shares traded. As reported by Zacks, the current mean recommendation for BBD is in the "buy range".
Carvana Co. (CVNA) is -0.22 at $8.54, with 412,396 shares traded., following a 52-week high recorded in prior regular session.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple Inc. (AAPL) is -1.76 at $136.62, with 1,938,738 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Smarter Analyst Reports: Palantir Bags $43M Contract from Space Systems Command
|
As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -1.76 at $136.62, with 1,938,738 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2023.
|
Apple Inc. (AAPL) is -1.76 at $136.62, with 1,938,738 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 33,548,642 shares traded.
|
Apple Inc. (AAPL) is -1.76 at $136.62, with 1,938,738 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 Pre-Market Indicator is up 18.35 to 10,875.38.
|
18538.0
|
2022-11-07 00:00:00 UTC
|
Disney (DIS) to Post Q4 Earnings: Key Factors to Consider
|
AAPL
|
https://www.nasdaq.com/articles/disney-dis-to-post-q4-earnings%3A-key-factors-to-consider
|
nan
|
nan
|
The Walt Disney Company’s DIS fourth-quarter fiscal 2022 results, set to be reported on Nov 8, are expected to benefit from an expanding Disney+ subscriber base and revival in its Parks, Experiences and Products businesses.
Disney+ has emerged as a key growth driver for Disney, primarily driven by its solid content portfolio.
Disney’s cheaper bundled services (Disney+, ESPN+ and Hulu) have been able to attract subscribers amid stiff competition from Netflix NFLX, Apple’s AAPL streaming service Apple TV+, Amazon Prime Video, HBO Max, Comcast’s CMCSA Peacock, Paramount+ and TikTok.
The Zacks Consensus Estimate for paid subscribers for Disney+ is currently pegged at 162 million, indicating 37.2% growth from the figure reported in the year-ago quarter. The consensus mark for ESPN+ and Hulu stands at 23.85 million and 47.27 million, respectively, suggesting 39.5% and 7.9% growth from the figures reported in the year-ago quarter.
Streaming market leader, Netflix, reported better-than-expected third-quarter 2022 subscriber numbers. The streaming giant gained 2.41 million paid subscribers globally, higher than its estimate of gaining one million users. Netflix added 4.38 million paid subscribers in the year-ago quarter.
The Walt Disney Company Revenue (TTM)
The Walt Disney Company revenue-ttm | The Walt Disney Company Quote
Apple’s streaming service, Apple TV+, continues to gain recognition with its critically acclaimed and popular shows like Ted Lasso.
Comcast’s Peacock had more than 15 million paid subscribers in the United States at the end of third-quarter 2022. Moreover, Peacock had approximately 14 million bundled and free users, totaling around 30 million monthly active accounts.
Nevertheless, Disney is expected to have benefited from a strong content portfolio.
Click here to know how Disney’s overall fourth-quarter fiscal 2022 results are likely to be.
Revival in Theme Park Business to Boost Growth
Disney’s domestic Theme Park business (Walt Disney World and Disneyland) revenues are expected to have grown in the to-be-reported quarter, driven by a strong admission rate.
Disney’s nearest peer, Comcast, reported strong third-quarter 2022 results in its Theme Park business. Comcast generated Theme Park revenues of $2.1 billion, up 42.4% year over year, reflecting higher attendance and an increase in guest spending at Comcast’s parks in the United States and Japan, as well as the Universal Beijing Resort.
The Zacks Consensus Estimate for Disney’s Parks, Experiences & Consumer Products revenues is currently pegged at $7.32 billion, indicating growth of 34.3% year over year.
However, this Zacks Rank #3 (Hold) company’s advertising revenues are expected to have declined in the to-be-reported quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The consensus estimates for advertising revenues – broadcasting is currently pegged at $679 million, suggesting a 10% from the figure reported in the previous quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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.
|
Disney’s cheaper bundled services (Disney+, ESPN+ and Hulu) have been able to attract subscribers amid stiff competition from Netflix NFLX, Apple’s AAPL streaming service Apple TV+, Amazon Prime Video, HBO Max, Comcast’s CMCSA Peacock, Paramount+ and TikTok. Apple Inc. (AAPL): Free Stock Analysis Report The Walt Disney Company’s DIS fourth-quarter fiscal 2022 results, set to be reported on Nov 8, are expected to benefit from an expanding Disney+ subscriber base and revival in its Parks, Experiences and Products businesses.
|
Disney’s cheaper bundled services (Disney+, ESPN+ and Hulu) have been able to attract subscribers amid stiff competition from Netflix NFLX, Apple’s AAPL streaming service Apple TV+, Amazon Prime Video, HBO Max, Comcast’s CMCSA Peacock, Paramount+ and TikTok. Apple Inc. (AAPL): Free Stock Analysis Report The Walt Disney Company’s DIS fourth-quarter fiscal 2022 results, set to be reported on Nov 8, are expected to benefit from an expanding Disney+ subscriber base and revival in its Parks, Experiences and Products businesses.
|
Disney’s cheaper bundled services (Disney+, ESPN+ and Hulu) have been able to attract subscribers amid stiff competition from Netflix NFLX, Apple’s AAPL streaming service Apple TV+, Amazon Prime Video, HBO Max, Comcast’s CMCSA Peacock, Paramount+ and TikTok. Apple Inc. (AAPL): Free Stock Analysis Report The Zacks Consensus Estimate for paid subscribers for Disney+ is currently pegged at 162 million, indicating 37.2% growth from the figure reported in the year-ago quarter.
|
Disney’s cheaper bundled services (Disney+, ESPN+ and Hulu) have been able to attract subscribers amid stiff competition from Netflix NFLX, Apple’s AAPL streaming service Apple TV+, Amazon Prime Video, HBO Max, Comcast’s CMCSA Peacock, Paramount+ and TikTok. Apple Inc. (AAPL): Free Stock Analysis Report The streaming giant gained 2.41 million paid subscribers globally, higher than its estimate of gaining one million users.
|
18539.0
|
2022-11-07 00:00:00 UTC
|
China's trade unexpectedly shrinks as COVID curbs, global slowdown jolt demand
|
AAPL
|
https://www.nasdaq.com/articles/chinas-trade-unexpectedly-shrinks-as-covid-curbs-global-slowdown-jolt-demand
|
nan
|
nan
|
By Ellen Zhang and Ryan Woo
BEIJING, Nov 7 (Reuters) - China's exports and imports unexpectedly contracted in October, the first simultaneous slump since May 2020, as a perfect storm of COVID curbs at home and global recession risks dented demand and further darkened the outlook for a struggling economy.
The bleak data highlights the challenge for policymakers in China as they press on with pandemic prevention measures and try to navigate broad pressure from surging inflation, sweeping increases in worldwide interest rates and a global slowdown.
Outbound shipments in October shrank 0.3% from a year earlier, a sharp turnaround from a 5.7% gain in September, official data showed on Monday, and well below analysts' expectations for a 4.3% increase. It was the worst performance since May 2020.
The data suggests demand remains frail overall, and analysts warn of further gloom for exporters over the coming quarters, heaping more pressure on the country's manufacturing sector and the world's second-biggest economy grappling with persistent COVID-19 curbs and protracted property weakness.
Chinese exporters weren't even able to capitalise on a prolonged weakening in the yuan currency since April and the key year-end shopping season, underlining the broadening strains for consumers and businesses worldwide.
The yuan on Monday eased 0.4% from a more than one-week high against the dollar reached in the previous session, as the weak trade data and Beijing's vow to continue with its strict zero-COVID strategy hurt sentiment.
"The weak export growth likely reflects both poor external demand as well as the supply disruptions due to COVID outbreaks," said Zhiwei Zhang, chief economist at Pinpoint Asset Management, citing COVID disruptions at a Foxconn factory, a major Apple supplier, as one example.
Apple Inc AAPL.O said it expects lower-than-anticipated shipments of high-end iPhone 14 models following a key production cut at the virus-blighted Zhengzhou plant.
"Looking forward, we think exports will fall further over the coming quarters... We think that aggressive financial tightening and the drag on real incomes from high inflation will push the global economy into a recession next year," said Zichun Huang, economist at Capital Economics.
Growth of auto exports in terms of volume also slowed sharply to 60% year-on-year from 106% in September, according to Reuters calculations based on customs data, reflecting a transition from demand for goods to services in major economies.
Overall exports to China's major markets of the United States and European Union also slumped in October, off 12.6% and 9% year-on-year, respectively.
DOMESTIC WOES HAMPER GROWTH
Almost three years into the pandemic, China has stuck to a strict COVID-19 containment policy that has exacted a heavy economic toll and caused widespread frustration and fatigue.
Feeble October factory and trade figures suggested the economy is struggling to get out of the mire in the last quarter of 2022, after it reported a faster-than-anticipated rebound in the third quarter.
The Ukraine war, which sparked a surge in already high inflation globally, has added to geopolitical tensions and further dampened business activity.
Chinese policymakers pledged last week to prioritise economic growth and press on with reforms, easing fears that ideology could take precedence as President Xi Jinping began a new leadership term and disruptive lockdowns continued with no clear exit strategy in sight.
Tepid domestic demand, partly weighed down by fresh COVID curbs and lockdowns in October, hurt importers.
Inbound shipments declined 0.7% from a 0.3% gain in September, below a forecast 0.1% increase, marking the weakest outcome since August 2020.
The harsh impact on demand from strict pandemic measures and a property slump was also highlighted in a broad range of Chinese imports; purchases of soybeans declined to eight-year-lows last month while copper imports fell and coal imports slackened after hitting a 10-month high in September.
On top of the global slowdown, frail domestic consumption will put more strain on China's economy for a while yet, analysts say.
"Insufficient domestic demand is the main constraint on China's short-term recovery and long-term growth trajectory," said Bruce Pang, chief economist at Jones Lang Lasalle.
China's exports and imports contract in Octoberhttps://tmsnrt.rs/3NIhuOJ
(Reporting by Ellen Zhang and Ryan Woo; Editing by Shri Navaratnam)
((Ellen.Zhang@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.
|
Apple Inc AAPL.O said it expects lower-than-anticipated shipments of high-end iPhone 14 models following a key production cut at the virus-blighted Zhengzhou plant. By Ellen Zhang and Ryan Woo BEIJING, Nov 7 (Reuters) - China's exports and imports unexpectedly contracted in October, the first simultaneous slump since May 2020, as a perfect storm of COVID curbs at home and global recession risks dented demand and further darkened the outlook for a struggling economy. The data suggests demand remains frail overall, and analysts warn of further gloom for exporters over the coming quarters, heaping more pressure on the country's manufacturing sector and the world's second-biggest economy grappling with persistent COVID-19 curbs and protracted property weakness.
|
Apple Inc AAPL.O said it expects lower-than-anticipated shipments of high-end iPhone 14 models following a key production cut at the virus-blighted Zhengzhou plant. By Ellen Zhang and Ryan Woo BEIJING, Nov 7 (Reuters) - China's exports and imports unexpectedly contracted in October, the first simultaneous slump since May 2020, as a perfect storm of COVID curbs at home and global recession risks dented demand and further darkened the outlook for a struggling economy. The harsh impact on demand from strict pandemic measures and a property slump was also highlighted in a broad range of Chinese imports; purchases of soybeans declined to eight-year-lows last month while copper imports fell and coal imports slackened after hitting a 10-month high in September.
|
Apple Inc AAPL.O said it expects lower-than-anticipated shipments of high-end iPhone 14 models following a key production cut at the virus-blighted Zhengzhou plant. By Ellen Zhang and Ryan Woo BEIJING, Nov 7 (Reuters) - China's exports and imports unexpectedly contracted in October, the first simultaneous slump since May 2020, as a perfect storm of COVID curbs at home and global recession risks dented demand and further darkened the outlook for a struggling economy. "The weak export growth likely reflects both poor external demand as well as the supply disruptions due to COVID outbreaks," said Zhiwei Zhang, chief economist at Pinpoint Asset Management, citing COVID disruptions at a Foxconn factory, a major Apple supplier, as one example.
|
Apple Inc AAPL.O said it expects lower-than-anticipated shipments of high-end iPhone 14 models following a key production cut at the virus-blighted Zhengzhou plant. By Ellen Zhang and Ryan Woo BEIJING, Nov 7 (Reuters) - China's exports and imports unexpectedly contracted in October, the first simultaneous slump since May 2020, as a perfect storm of COVID curbs at home and global recession risks dented demand and further darkened the outlook for a struggling economy. The bleak data highlights the challenge for policymakers in China as they press on with pandemic prevention measures and try to navigate broad pressure from surging inflation, sweeping increases in worldwide interest rates and a global slowdown.
|
18540.0
|
2022-11-07 00:00:00 UTC
|
US STOCKS-Futures rise as focus shifts to midterm elections
|
AAPL
|
https://www.nasdaq.com/articles/us-stocks-futures-rise-as-focus-shifts-to-midterm-elections
|
nan
|
nan
|
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 0.31%, S&P 0.27%, Nasdaq 0.20%
Nov 7 (Reuters) - U.S. stock index futures inched higher on Monday even as Beijing reaffirmed over the weekend that it would stick to its zero COVID-19 policy, while investor focus shifted to Tuesday's U.S. midterm elections that will determine control of Congress.
Republicans have picked up momentum in polls and analysts see a split government, with the GOP winning the House of Representatives and possibly the Senate, as the likely outcome possibly hindering Democratic President Joe Biden's agenda.
A split government could result in political gridlock that stymies major policy changes, an outcome that investors see as favorable for equities.
U.S. consumer prices for October are due to be released on Thursday. Economists expect the annual consumer prices inflation to slow to 8.0% and the core numbers to dip to 6.5%.
Both the midterm elections and inflation are likely to provide major cues for Wall Street after a volatile week dominated by mixed jobs report and hawkish comments from Fed Chair Jerome Powell.
At 04:47 a.m. ET, Dow e-minis 1YMcv1 were up 101 points, or 0.31%, S&P 500 e-minis EScv1 were up 10.25 points, or 0.27%, and Nasdaq 100 e-minis NQcv1 were up 21.75 points, or 0.2%.
Apple Inc AAPL.O fell 1.1% in premarket trading after the company said it expected lower shipments of premium iPhone 14 models than previously anticipated.
Meta Platforms Inc META.O jumped 3.1% following a report that the Facebook parent was planning to begin large-scale layoffs this week that will affect thousands of employees.
U.S.-listed shares of Chinese firms JD.Com Inc JD.O, Alibaba Group Holding Ltd BABA.N and Baidu Inc BIDU.O rose between 1.3% and 2.1%, despite Beijing's reaffirmation of its strict COVID-19 policies over the weekend.
(Reporting by Shubham Batra and Amruta Khandekar in Bengaluru)
((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.
|
Apple Inc AAPL.O fell 1.1% in premarket trading after the company said it expected lower shipments of premium iPhone 14 models than previously anticipated. 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 0.31%, S&P 0.27%, Nasdaq 0.20% Nov 7 (Reuters) - U.S. stock index futures inched higher on Monday even as Beijing reaffirmed over the weekend that it would stick to its zero COVID-19 policy, while investor focus shifted to Tuesday's U.S. midterm elections that will determine control of Congress. Both the midterm elections and inflation are likely to provide major cues for Wall Street after a volatile week dominated by mixed jobs report and hawkish comments from Fed Chair Jerome Powell.
|
Apple Inc AAPL.O fell 1.1% in premarket trading after the company said it expected lower shipments of premium iPhone 14 models than previously anticipated. 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 0.31%, S&P 0.27%, Nasdaq 0.20% Nov 7 (Reuters) - U.S. stock index futures inched higher on Monday even as Beijing reaffirmed over the weekend that it would stick to its zero COVID-19 policy, while investor focus shifted to Tuesday's U.S. midterm elections that will determine control of Congress. Economists expect the annual consumer prices inflation to slow to 8.0% and the core numbers to dip to 6.5%.
|
Apple Inc AAPL.O fell 1.1% in premarket trading after the company said it expected lower shipments of premium iPhone 14 models than previously anticipated. 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 0.31%, S&P 0.27%, Nasdaq 0.20% Nov 7 (Reuters) - U.S. stock index futures inched higher on Monday even as Beijing reaffirmed over the weekend that it would stick to its zero COVID-19 policy, while investor focus shifted to Tuesday's U.S. midterm elections that will determine control of Congress. Economists expect the annual consumer prices inflation to slow to 8.0% and the core numbers to dip to 6.5%.
|
Apple Inc AAPL.O fell 1.1% in premarket trading after the company said it expected lower shipments of premium iPhone 14 models than previously anticipated. 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 0.31%, S&P 0.27%, Nasdaq 0.20% Nov 7 (Reuters) - U.S. stock index futures inched higher on Monday even as Beijing reaffirmed over the weekend that it would stick to its zero COVID-19 policy, while investor focus shifted to Tuesday's U.S. midterm elections that will determine control of Congress. Republicans have picked up momentum in polls and analysts see a split government, with the GOP winning the House of Representatives and possibly the Senate, as the likely outcome possibly hindering Democratic President Joe Biden's agenda.
|
18541.0
|
2022-11-07 00:00:00 UTC
|
Apple, Amazon, Alphabet, Microsoft and Meta are part of Zacks Earnings Preview
|
AAPL
|
https://www.nasdaq.com/articles/apple-amazon-alphabet-microsoft-and-meta-are-part-of-zacks-earnings-preview
|
nan
|
nan
|
For Immediate Release
Chicago, IL – November 7, 2022 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Apple AAPL, Amazon AMZN , Alphabet GOOGL, Microsoft MSFT and Meta META.
3 Things We Learned from Q3 Earnings Season
With September-quarter results from more than 85% of S&P 500 members already out, the bulk of the Q3 reporting cycle is now behind us.
The overall takeaway from the Q3 earnings season was one of relief and reassurance, with actual quarterly reports belying pre-season fears of an impending ‘earnings cliff’. As we have repeatedly pointed out, the picture that emerged from the Q3 earnings season wasn’t great, but it wasn’t bad either. To that end, here are the three things we learned from the Q3 earnings season.
First, growth is fading. This is no surprise, as the global economy is going through a synchronized slowdown, under the combined effects of rising interest rates in response to inflationary pressures, still-lingering logistical challenges that have started to ease up and China’s continuing zero-Covid restrictions.
The orange bars in the chart above represent revenue growth. So, for 2022 Q3, revenues are on track to grow +11.3% from the same period last year even though earnings are only expected to be up +1.6%. This seemingly elevated revenue growth is a direct function of pricing power, with companies able to pass on rising input costs to end consumers. We intuitively know that this can’t go on forever and current projections for the next three quarters bears out this intuition.
Second, margins are holding up better than most of us would have expected. Net margins in the aggregate have been below the year-earlier in each of the last three quarters, but the pressures aren’t distributed evenly across the different sectors.
If we look at the Q3 results have come out already, net margins are down 130 basis points for the 429 S&P 500 members in the aggregate, with 10 of the 16 Zacks sectors suffering margin contraction. On the flip side, four sectors enjoyed higher margins relative to the year-earlier period, led by the Energy sector.
Sectors suffering the biggest margin squeeze include Technology, Basic Materials and Finance. We discussed last week the earnings outlook for the Technology sector, particularly what we call the ‘Big 5 Tech Players’ – Apple, Amazon, Alphabet, Microsoft and Meta. For reference, please read – Making Sense of Big Tech Earnings After Amazon and Meta Tumble.
We pointed out in that note how each of these Tech leaders was in a mad rush over the last few year-plus to add employees, which has left them with bloated payroll expenses. The issue is particularly acute with Meta and Amazon, whose net margins this year are expected to be 1274 basis points and 586 basis points, respectively below the 2021 level.
The margin issue is hardly restricted to the ‘Big 5 Tech Players,’ as the issue is very much present with the broader Tech sector.
Third, the narrative that earnings estimates remain too high is misleading if not altogether wrong Regular readers of our earnings commentary know that we have consistently flagged the persistent cuts to forward earnings estimates over the last few months.
We take earnings estimate revisions very seriously as they form the core of our stock rating system. The way we see it, earnings estimates for 2023 outside of the Energy sector peaked in April and have been steadily trending down since then.
Since mid-April, 2023 earnings estimates in the aggregate have come down by -7.4% for the S&P 500 index as a whole and -10.4% on an ex-Energy basis. The cuts to estimates have been particularly notable for the Tech (down -17.4% since mid-April), Construction (-21.5%), Retail (-18.2%), Industrial Products (-11.8%), Consumer Discretionary (-15.1%) and Aerospace (-11.5%).
If we look at Amazon and Meta, 2023 earnings estimates for Amazon have come down -19.8% for Amazon (from $21.7 per share to $1.74 per share) and -30.4% for Meta (from $11.15 per share to $7.76 per share) over the last 3 months.
This goes to our earlier comment about the revisions narrative being misleading if not altogether wrong. Estimates have been coming down for a while now and are down more than -10% for 2023 on an ex-Energy basis since mid-April, as we stated earlier.
There are some in the market who think that 2023 earnings should be below the 2022 level instead of the current expected +3.5% growth simply because the U.S. economy is expected to go through a moderate recession.
I am not suggesting that 2023 earnings can’t be below the 2022 level; they can be, and current revisions trends are likely headed there. But it is wrong to expect moderate declines in ‘real’ GDP to automatically result in ‘nominal’ or non-inflation adjusted corporate earnings to also decline. Corporate revenues and earnings are ‘nominal’ values and will reflect the effects of inflation. Inflation is expected to come down in 2023, but nevertheless remain positive.Q3 Earnings Season Scorecard
Including all of the results through Friday, November 4th, we now have Q3 results from 429 S&P 500 members that combined account for 85.8% of the index’s total membership.
The bulk of the Q3 earnings season for the large-cap companies in the S&P 500 index is now behind us. But there are still a ton of small and mid-cap companies that have yet to report quarterly results. This week will bring in results from more than 1,000 companies, including 30 S&P 500 members.
For the 429 index members that have reported results already, total earnings are up +2.2% from the same period last year on +12.4% higher revenues, with 70.9% beating EPS estimates and 67.8% beating revenue estimates.
Here is how the 2022 Q3 earnings and revenue growth rates for these 429 companies compares across different periods.
The EPS and revenue beats percentages were notably on the weak side earlier in the reporting cycle. But as you can see above, they are very much within the historical range by now.
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>>Breaking Down the Earnings Picture as Estimates Fade
Why Haven’t You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Meta Platforms, Inc. (META): Free Stock Analysis Report
To read this article on Zacks.com click here.
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.
|
This week’s list includes Apple AAPL, Amazon AMZN , Alphabet GOOGL, Microsoft MSFT and Meta META. Apple Inc. (AAPL): Free Stock Analysis Report This is no surprise, as the global economy is going through a synchronized slowdown, under the combined effects of rising interest rates in response to inflationary pressures, still-lingering logistical challenges that have started to ease up and China’s continuing zero-Covid restrictions.
|
This week’s list includes Apple AAPL, Amazon AMZN , Alphabet GOOGL, Microsoft MSFT and Meta META. Apple Inc. (AAPL): Free Stock Analysis Report We discussed last week the earnings outlook for the Technology sector, particularly what we call the ‘Big 5 Tech Players’ – Apple, Amazon, Alphabet, Microsoft and Meta.
|
This week’s list includes Apple AAPL, Amazon AMZN , Alphabet GOOGL, Microsoft MSFT and Meta META. Apple Inc. (AAPL): Free Stock Analysis Report Third, the narrative that earnings estimates remain too high is misleading if not altogether wrong Regular readers of our earnings commentary know that we have consistently flagged the persistent cuts to forward earnings estimates over the last few months.
|
This week’s list includes Apple AAPL, Amazon AMZN , Alphabet GOOGL, Microsoft MSFT and Meta META. Apple Inc. (AAPL): Free Stock Analysis Report The issue is particularly acute with Meta and Amazon, whose net margins this year are expected to be 1274 basis points and 586 basis points, respectively below the 2021 level.
|
18542.0
|
2022-11-07 00:00:00 UTC
|
German industry calls for delay to global minimum tax - BDI
|
AAPL
|
https://www.nasdaq.com/articles/german-industry-calls-for-delay-to-global-minimum-tax-bdi
|
nan
|
nan
|
BERLIN, Nov 7 (Reuters) - German industry has called for a delay to a global minimum corporate tax by at least a year to 2025 to give companies more time to prepare given the current crisis, according to a position paper published by industry association BDI on Monday.
"The ambitious timetable of applying the minimum tax as early as 2024 is not realistic against the background of the enormous complexity of the associated new regulations," BDI said.
The shake-up, the biggest overhaul of cross-border tax rules in a generation, which nearly 140 countries agreed to last year, aims to take better account of the emergence of big digital companies, such as Apple AAPL.O and Amazon AMZN.O that can book profits in low-tax countries.
The Organisation for Economic Cooperation and Development (OECD), which has been shepherding the global minimum tax, had said in July that the new rules were on course to take effect in 2024.
BDI said implementation of the new rules and the preparation of IT processes would be very time-consuming and resource-consuming for companies, calling for a simplification of the process, for transitional arrangements and for a postponement until at least 2025.
It also rejected the idea that Germany could implement the minimum tax without legislation being passed across the European Union.
The governments of the EU's five biggest economies, including Germany, said last month they would implement the new tax rules next year by "any possible legal means" if Hungary does not lift its opposition at the EU level.
BDI said that going it alone would harm the competitiveness of the German economy as it would generate costs for German parent companies.
(Reporting by Maria Sheahan, editing by Rachel More and Ed Osmond)
((maria.sheahan@thomsonreuters.com; +49 30 22013 3680;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The shake-up, the biggest overhaul of cross-border tax rules in a generation, which nearly 140 countries agreed to last year, aims to take better account of the emergence of big digital companies, such as Apple AAPL.O and Amazon AMZN.O that can book profits in low-tax countries. BERLIN, Nov 7 (Reuters) - German industry has called for a delay to a global minimum corporate tax by at least a year to 2025 to give companies more time to prepare given the current crisis, according to a position paper published by industry association BDI on Monday. "The ambitious timetable of applying the minimum tax as early as 2024 is not realistic against the background of the enormous complexity of the associated new regulations," BDI said.
|
The shake-up, the biggest overhaul of cross-border tax rules in a generation, which nearly 140 countries agreed to last year, aims to take better account of the emergence of big digital companies, such as Apple AAPL.O and Amazon AMZN.O that can book profits in low-tax countries. The Organisation for Economic Cooperation and Development (OECD), which has been shepherding the global minimum tax, had said in July that the new rules were on course to take effect in 2024. It also rejected the idea that Germany could implement the minimum tax without legislation being passed across the European Union.
|
The shake-up, the biggest overhaul of cross-border tax rules in a generation, which nearly 140 countries agreed to last year, aims to take better account of the emergence of big digital companies, such as Apple AAPL.O and Amazon AMZN.O that can book profits in low-tax countries. BERLIN, Nov 7 (Reuters) - German industry has called for a delay to a global minimum corporate tax by at least a year to 2025 to give companies more time to prepare given the current crisis, according to a position paper published by industry association BDI on Monday. The governments of the EU's five biggest economies, including Germany, said last month they would implement the new tax rules next year by "any possible legal means" if Hungary does not lift its opposition at the EU level.
|
The shake-up, the biggest overhaul of cross-border tax rules in a generation, which nearly 140 countries agreed to last year, aims to take better account of the emergence of big digital companies, such as Apple AAPL.O and Amazon AMZN.O that can book profits in low-tax countries. BERLIN, Nov 7 (Reuters) - German industry has called for a delay to a global minimum corporate tax by at least a year to 2025 to give companies more time to prepare given the current crisis, according to a position paper published by industry association BDI on Monday. "The ambitious timetable of applying the minimum tax as early as 2024 is not realistic against the background of the enormous complexity of the associated new regulations," BDI said.
|
18543.0
|
2022-11-06 00:00:00 UTC
|
GLOBAL MARKETS-Asia stocks resilient as Wall St slips, China trade disappoints
|
AAPL
|
https://www.nasdaq.com/articles/global-markets-asia-stocks-resilient-as-wall-st-slips-china-trade-disappoints
|
nan
|
nan
|
By Wayne Cole
SYDNEY, Nov 7 (Reuters) - U.S. stock futures and commodities slipped in Asia on Monday after Beijing denied it was considering easing its zero COVID-19 policy, though resilience in Asian equities took some of the sting out of the selling.
Risk assets had rallied on Friday amid speculation China was preparing to relax its pandemic restrictions, but over the weekend health officials reiterated their commitment to the "dynamic-clearing" approach to COVID cases as soon as they emerge.
"Despite the denial, notions that China will pivot to living with COVID in the new year are unlikely to be quashed given the very real toll that zero-COVID is having on the economy," said Tapas Strickland, head of market economics at NAB.
"With China going into winter, most analysts think a change in zero-COVID is unlikely until at least March."
Speculation that China might open its economy saw copper jump 7% on Friday in its biggest one-day rally since 2009, while a range of resources all benefited from hopes of increased demand. MET/L
It also sent the yuan surging and triggered a round of profit taking on long U.S. dollar positions, particularly against commodity sensitive currencies such as the Australian dollar.
A little of that reversed on Monday, with the Aussie down 0.7% at $0.6421 AUD-D3 after jumping 3% on Friday. The dollar gained 0.7% on the offshore yuan CNH=.
The U.S. dollar index =USD bounced 0.3% having dived almost 2% at the end of last week. The dollar was 0.4% firmer on the yen at 147.22 yen JPY=EBS, while the euro eased a fraction to $0.9929 EUR=. FRX/
S&P 500 futures ESc1 dipped 0.2%, while Nasdaq futures NQc1 lost 0.3%. EUROSTOXX 50 futures STXEc1 lost 0.2% and FTSE futures FFIc1 0.6% amid reports the UK government was planning tax rises and spending cuts.
Chinese blue chips .CSI300 edged up 0.2%, a decent performance given data released earlier showed Chinese exports and imports both contracted in October and missed forecasts.
Illustrating the costs of Beijing's strict policies, Apple Inc AAPL.O on Sunday said it expects lower iPhone 14 Pro and iPhone Pro Max shipments than previously anticipated as COVID-19 restrictions temporarily disrupt production.
Still, investors seemed to hope there might be something to the China loosening story and MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS added 1.0%.
Japan's Nikkei .N225 rose 1.2% and South Korea .KS11 0.8%.
U.S. CPI LOOMS
Aiding risk sentiment at the margin were reports the White House is privately encouraging Ukraine to signal an openness to negotiate with Russia.
Dealers were still assessing a mixed U.S jobs report which showed solid gains in the payrolls survey but softness in the less reliable household survey of unemployment.
Four Federal Reserve policymakers on Friday indicated they would still consider a smaller interest rate hike at their next policy meeting, sounding less hawkish than Chair Jerome Powell.
There are at least seven Fed officials scheduled to speak this week, which will help refine the rate outlook with markets now narrowly leaning toward a half-point rate hike next month to 4.25-4.5%. FEDWATCH
"We maintain the Fed will see sufficient progress on inflation to pause at 4.75% in February, but the risks are skewed to more hikes that likely bring about a recession sometime later in 2023 or early 2024," said Bruce Kasman, head of economic research at JPMorgan.
Short-term Treasuries managed a minor rally on Friday with two-year yields US2YT=RR edging back to 4.68% and off highs not seen since 2007.
The market faces a major hurdle on Thursday when U.S. consumer prices for October are released, with any upside surprise set to test hopes for a step down in Fed hikes.
Median forecasts are for annual CPI inflation to slow to 8.0% and for the core to dip a tick to 6.5%.
Also of note will be midterm U.S. elections on Tuesday where Republicans could win control of one or both chambers and lead to deadlock on fiscal policy.
In commodity markets, gold eased back to $1,671 an ounce XAU= after jumping over 3% on Friday. GOL/
Oil futures lost some of their recent gains with Brent LCOc1 off $1.07 at $97.50, while U.S. crude CLc1 dropped $1.26 to $91.35 per barrel. O/R
Asia stock marketshttps://tmsnrt.rs/2zpUAr4
Asia-Pacific valuationshttps://tmsnrt.rs/2Dr2BQA
(Reporting by Wayne Cole; Editing by Daniel Wallis & Shri Navaratnam)
((Wayne.Cole@thomsonreuters.com; 612 9171 7144; Reuters Messaging: wayne.cole.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Illustrating the costs of Beijing's strict policies, Apple Inc AAPL.O on Sunday said it expects lower iPhone 14 Pro and iPhone Pro Max shipments than previously anticipated as COVID-19 restrictions temporarily disrupt production. By Wayne Cole SYDNEY, Nov 7 (Reuters) - U.S. stock futures and commodities slipped in Asia on Monday after Beijing denied it was considering easing its zero COVID-19 policy, though resilience in Asian equities took some of the sting out of the selling. Risk assets had rallied on Friday amid speculation China was preparing to relax its pandemic restrictions, but over the weekend health officials reiterated their commitment to the "dynamic-clearing" approach to COVID cases as soon as they emerge.
|
Illustrating the costs of Beijing's strict policies, Apple Inc AAPL.O on Sunday said it expects lower iPhone 14 Pro and iPhone Pro Max shipments than previously anticipated as COVID-19 restrictions temporarily disrupt production. By Wayne Cole SYDNEY, Nov 7 (Reuters) - U.S. stock futures and commodities slipped in Asia on Monday after Beijing denied it was considering easing its zero COVID-19 policy, though resilience in Asian equities took some of the sting out of the selling. Risk assets had rallied on Friday amid speculation China was preparing to relax its pandemic restrictions, but over the weekend health officials reiterated their commitment to the "dynamic-clearing" approach to COVID cases as soon as they emerge.
|
Illustrating the costs of Beijing's strict policies, Apple Inc AAPL.O on Sunday said it expects lower iPhone 14 Pro and iPhone Pro Max shipments than previously anticipated as COVID-19 restrictions temporarily disrupt production. By Wayne Cole SYDNEY, Nov 7 (Reuters) - U.S. stock futures and commodities slipped in Asia on Monday after Beijing denied it was considering easing its zero COVID-19 policy, though resilience in Asian equities took some of the sting out of the selling. Risk assets had rallied on Friday amid speculation China was preparing to relax its pandemic restrictions, but over the weekend health officials reiterated their commitment to the "dynamic-clearing" approach to COVID cases as soon as they emerge.
|
Illustrating the costs of Beijing's strict policies, Apple Inc AAPL.O on Sunday said it expects lower iPhone 14 Pro and iPhone Pro Max shipments than previously anticipated as COVID-19 restrictions temporarily disrupt production. Speculation that China might open its economy saw copper jump 7% on Friday in its biggest one-day rally since 2009, while a range of resources all benefited from hopes of increased demand. FRX/ S&P 500 futures ESc1 dipped 0.2%, while Nasdaq futures NQc1 lost 0.3%.
|
18544.0
|
2022-11-06 00:00:00 UTC
|
Apple supplier Foxconn says working to resume China production as soon as possible
|
AAPL
|
https://www.nasdaq.com/articles/apple-supplier-foxconn-says-working-to-resume-china-production-as-soon-as-possible
|
nan
|
nan
|
Repeats story
TAIPEI, Nov 7 (Reuters) - Taiwan's Foxconn, Apple Inc's biggest iPhone maker, said on Monday it was working to resume full production at a major plant in China's Zhengzhou as soon as possible that has been hit by COVID-19 curbs, and revised down its fourth quarter outlook.
China ordered an industrial park that houses an iPhone factory belonging to Foxconn 2317.TW to enter a seven-day lockdown on Wednesday, in a move set to intensify pressure on the Apple AAPL.O supplier as it scrambles to quell worker discontent at the base.
The Zhengzhou Airport Economy Zone in central China said it would impose "silent management" measures with immediate effect, including barring all residents from going out and only allowing approved vehicles on roads within that area.
Foxconn, the world's largest contract electronics maker, said in a statement that the provincial government in Henan, where Zhengzhou is located, "has made it clear that it will, as always, fully support Foxconn in Henan".
"Foxconn is now working with the government in concerted effort to stamp out the pandemic and resume production to its full capacity as quickly as possible."
In a statement released at the same time, Apple said it expects lower iPhone 14 Pro and iPhone Pro Max shipments than previously anticipated as COVID-19 restrictions temporarily disrupt production in Zhengzhou.
Apple's new iPhone 14 went on sale in September.
Foxconn, formally Hon Hai Precision Industry Co Ltd, is Apple's biggest iPhone maker, accounting for 70% of iPhone shipments globally. It makes most of the phones at the Zhengzhou plant where it employs about 200,000 people, though it has other smaller production sites in India and southern China.
Having previously guided for "cautious optimism" in the fourth quarter, Foxconn said it will "revise down" its outlook given events in Zhengzhou.
However, the firm reported October sales had soared 40.97% year-on-year, a record high for the same period, but down 5.56% compared to the previous month.
"Benefiting from the launch of new products in October, stable demand for major products, and strong demand in the server market, revenue in all four major product segments grew," it said, referring to computing products, smart consumer electronics products, and cloud and networking products.
Computing products, smart consumer electronics products, and cloud and networking products all showed double-digit growth last month, compared to the same period last year, the company added.
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.
Foxconn releases third-quarter earnings on Nov. 10.
(Reporting by Ben Blanchard; Editing by Daniel Wallis)
((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.
|
China ordered an industrial park that houses an iPhone factory belonging to Foxconn 2317.TW to enter a seven-day lockdown on Wednesday, in a move set to intensify pressure on the Apple AAPL.O supplier as it scrambles to quell worker discontent at the base. Repeats story TAIPEI, Nov 7 (Reuters) - Taiwan's Foxconn, Apple Inc's biggest iPhone maker, said on Monday it was working to resume full production at a major plant in China's Zhengzhou as soon as possible that has been hit by COVID-19 curbs, and revised down its fourth quarter outlook. The Zhengzhou Airport Economy Zone in central China said it would impose "silent management" measures with immediate effect, including barring all residents from going out and only allowing approved vehicles on roads within that area.
|
China ordered an industrial park that houses an iPhone factory belonging to Foxconn 2317.TW to enter a seven-day lockdown on Wednesday, in a move set to intensify pressure on the Apple AAPL.O supplier as it scrambles to quell worker discontent at the base. Repeats story TAIPEI, Nov 7 (Reuters) - Taiwan's Foxconn, Apple Inc's biggest iPhone maker, said on Monday it was working to resume full production at a major plant in China's Zhengzhou as soon as possible that has been hit by COVID-19 curbs, and revised down its fourth quarter outlook. "Benefiting from the launch of new products in October, stable demand for major products, and strong demand in the server market, revenue in all four major product segments grew," it said, referring to computing products, smart consumer electronics products, and cloud and networking products.
|
China ordered an industrial park that houses an iPhone factory belonging to Foxconn 2317.TW to enter a seven-day lockdown on Wednesday, in a move set to intensify pressure on the Apple AAPL.O supplier as it scrambles to quell worker discontent at the base. Repeats story TAIPEI, Nov 7 (Reuters) - Taiwan's Foxconn, Apple Inc's biggest iPhone maker, said on Monday it was working to resume full production at a major plant in China's Zhengzhou as soon as possible that has been hit by COVID-19 curbs, and revised down its fourth quarter outlook. "Benefiting from the launch of new products in October, stable demand for major products, and strong demand in the server market, revenue in all four major product segments grew," it said, referring to computing products, smart consumer electronics products, and cloud and networking products.
|
China ordered an industrial park that houses an iPhone factory belonging to Foxconn 2317.TW to enter a seven-day lockdown on Wednesday, in a move set to intensify pressure on the Apple AAPL.O supplier as it scrambles to quell worker discontent at the base. Repeats story TAIPEI, Nov 7 (Reuters) - Taiwan's Foxconn, Apple Inc's biggest iPhone maker, said on Monday it was working to resume full production at a major plant in China's Zhengzhou as soon as possible that has been hit by COVID-19 curbs, and revised down its fourth quarter outlook. Foxconn, formally Hon Hai Precision Industry Co Ltd, is Apple's biggest iPhone maker, accounting for 70% of iPhone shipments globally.
|
18545.0
|
2022-11-06 00:00:00 UTC
|
Apple warns of hit to iPhone shipments from China COVID disruptions
|
AAPL
|
https://www.nasdaq.com/articles/apple-warns-of-hit-to-iphone-shipments-from-china-covid-disruptions
|
nan
|
nan
|
By Ben Blanchard and Jaiveer Shekhawat
TAIPEI, Nov 7 (Reuters) - Apple Inc AAPL.O expected on Sunday lower shipments of high-end iPhone 14 models than previously anticipated, hit by a significant production cut at a major plant in China affected by COVID-19 restrictions.
"The facility is currently operating at significantly reduced capacity," Apple said in a statement without elaborating how much production has been impacted.
"We continue to see strong demand for iPhone 14 Pro and iPhone 14 Pro Max models. However, we now expect lower iPhone 14 Pro and iPhone 14 Pro Max shipments than we previously anticipated," it said.
Its 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.
Market research firm TrendForce said last week it has cut its iPhone shipments forecast for the December quarter by 2-3 million units, from 80 million previously, due to the troubles at the Zhengzhou plant, adding that its investigation of the situation found that the factory's capacity utilisation rates were now around 70%.
Apple, which launched sales of the new iPhones in September, said customers will experience longer wait times to receive their new products.
"Anything that affects Apple's production obviously affects their share price," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.
"But this is part of a much deeper story - the uncertainty surrounding the future of the Chinese economy... These headlines are part of the ongoing saga as to whether there is any truth to the consistent rumours that authorities are discussing whether some of the measures will be lifted in the first quarter."
FOXCONN CUTS OUTLOOK
It said it would implement new measures at the plant to curb the spread of COVID-19, which include a system that restricts factory workers' movement.
China ordered an industrial park that houses the iPhone factory to enter a seven-day lockdown on Wednesday, in a move set to intensify pressure on the Apple supplier as it scrambles to quell worker discontent at the base.
The Zhengzhou Airport Economy Zone in central China said it would impose "silent management" measures with immediate effect, including barring all residents from going out and only allowing approved vehicles on roads within that area.
Foxconn, the world's largest contract electronics maker, said in a statement that the provincial government in Henan, where Zhengzhou is located, "has made it clear that it will, as always, fully support Foxconn in Henan".
"Foxconn is now working with the government in concerted effort to stamp out the pandemic and resume production to its full capacity as quickly as possible."
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.
Foxconn releases third-quarter earnings on Nov. 10.
(Reporting by Ben Blanchard; Editing by Daniel Wallis 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.
|
By Ben Blanchard and Jaiveer Shekhawat TAIPEI, Nov 7 (Reuters) - Apple Inc AAPL.O expected on Sunday lower shipments of high-end iPhone 14 models than previously anticipated, hit by a significant production cut at a major plant in China affected by COVID-19 restrictions. China ordered an industrial park that houses the iPhone factory to enter a seven-day lockdown on Wednesday, in a move set to intensify pressure on the Apple supplier as it scrambles to quell worker discontent at the base. The Zhengzhou Airport Economy Zone in central China said it would impose "silent management" measures with immediate effect, including barring all residents from going out and only allowing approved vehicles on roads within that area.
|
By Ben Blanchard and Jaiveer Shekhawat TAIPEI, Nov 7 (Reuters) - Apple Inc AAPL.O expected on Sunday lower shipments of high-end iPhone 14 models than previously anticipated, hit by a significant production cut at a major plant in China affected by COVID-19 restrictions. "We continue to see strong demand for iPhone 14 Pro and iPhone 14 Pro Max models. However, we now expect lower iPhone 14 Pro and iPhone 14 Pro Max shipments than we previously anticipated," it said.
|
By Ben Blanchard and Jaiveer Shekhawat TAIPEI, Nov 7 (Reuters) - Apple Inc AAPL.O expected on Sunday lower shipments of high-end iPhone 14 models than previously anticipated, hit by a significant production cut at a major plant in China affected by COVID-19 restrictions. However, we now expect lower iPhone 14 Pro and iPhone 14 Pro Max shipments than we previously anticipated," it said. Market research firm TrendForce said last week it has cut its iPhone shipments forecast for the December quarter by 2-3 million units, from 80 million previously, due to the troubles at the Zhengzhou plant, adding that its investigation of the situation found that the factory's capacity utilisation rates were now around 70%.
|
By Ben Blanchard and Jaiveer Shekhawat TAIPEI, Nov 7 (Reuters) - Apple Inc AAPL.O expected on Sunday lower shipments of high-end iPhone 14 models than previously anticipated, hit by a significant production cut at a major plant in China affected by COVID-19 restrictions. Its 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, the world's largest contract electronics maker, said in a statement that the provincial government in Henan, where Zhengzhou is located, "has made it clear that it will, as always, fully support Foxconn in Henan".
|
18546.0
|
2022-11-06 00:00:00 UTC
|
GLOBAL MARKETS-U.S. stocks slip as China sticks to pandemic policy
|
AAPL
|
https://www.nasdaq.com/articles/global-markets-u.s.-stocks-slip-as-china-sticks-to-pandemic-policy
|
nan
|
nan
|
By Wayne Cole
SYDNEY, Nov 7 (Reuters) - U.S. stock futures slipped in Asia on Monday after Beijing denied it was considering easing its zero COVID-19 policy, helping the dollar recover some losses while dealing a setback to oil and commodities.
Risk assets had rallied on Friday amid speculation China was preparing to relax its pandemic restrictions, but over the weekend health officials reiterated their commitment to the "dynamic-clearing" approach to COVID cases as soon as they emerge.
"Despite the denial, notions that China will pivot to living with COVID in the new year are unlikely to be quashed given the very real toll that zero-COVID is having on the economy," said Tapas Strickland, head of market economics at NAB.
"With China going into winter, most analysts think a change in zero-COVID is unlikely until at least March."
Speculation that China might open its economy saw copper jump 7% on Friday in its biggest one-day rally since 2009, while a range of resources all benefited from hopes of increased demand. MET/L
It also sent the yuan surging and triggered a round of profit taking on long U.S. dollar positions, particularly against commodity sensitive currencies such as the Australian dollar.
A little of that reversed on Monday, with the Aussie down 0.4% at $0.6440 AUD-D3 after jumping 3% on Friday. The dollar gained 0.9% on the offshore yuan CNH=.
The U.S. dollar index =USD bounced 0.4% having dived almost 2% at the end of last week. The dollar was just a shade former on the yen at 146.77 yen JPY=EBS, while the euro eased a fraction to $0.9944 EUR=. FRX/
S&P 500 futures ESc1 turned tail and fell 0.5%, while Nasdaq futures NQc1 lost 0.6%.
Illustrating the costs of Beijing's strict policies, Apple Inc AAPL.O on Sunday said it expects lower iPhone 14 Pro and iPhone Pro Max shipments than previously anticipated as COVID-19 restrictions temporarily disrupt production.
Still, investors seemed to hope there might be something to the China loosening story and MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS added 0.3%.
Japan's Nikkei .N225 rose 0.6% and South Korea .KS11 0.3%. Markets are now waiting on Chinese trade data due later in the session for a guide on global demand.
U.S. CPI LOOMS
Aiding risk sentiment at the margin were reports the White House is privately encouraging Ukraine to signal an openness to negotiate with Russia.
Dealers were still digesting a mixed U.S jobs report which showed solid gains in the payrolls survey but softness in the less reliable household survey of unemployment.
Four Federal Reserve policymakers on Friday indicated they would still consider a smaller interest rate hike at their next policy meeting, sounding less hawkish than Chair Jerome Powell.
There are at least seven Fed officials scheduled to speak this week, which will help refine the rate outlook with markets now narrowly leaning toward a half-point rate hike next month to 4.25-4.5%. FEDWATCH
"We maintain the Fed will see sufficient progress on inflation to pause at 4.75% in February, but the risks are skewed to more hikes that likely bring about a recession sometime later in 2023 or early 2024," said Bruce Kasman, head of economic research at JPMorgan.
Short-term Treasuries managed a minor rally on Friday with two-year yields US2YT=RR edging back to 4.68% and off highs not seen since 2007.
The market faces a major hurdle on Thursday when U.S. consumer prices for October are released, with any upside surprise set to test hopes for a step down in Fed hikes.
Median forecasts are for annual CPI inflation to slow to 8.0% and for the core to dip a tick to 6.5%.
Also of note will be midterm U.S. elections on Tuesday where Republicans could win control of one or both chambers and lead to deadlock on fiscal policy.
In commodity markets, gold eased back to $1,673 an ounce XAU= after jumping over 3% on Friday. GOL/
Oil futures lost some of their gains with Brent LCOc1 off $1.66 at $96.91, while U.S. crude CLc1 dropped $1.85 to $90.76 per barrel. O/R
Asia stock marketshttps://tmsnrt.rs/2zpUAr4
Asia-Pacific valuationshttps://tmsnrt.rs/2Dr2BQA
(Reporting by Wayne Cole; Editing by Daniel Wallis & Shri Navaratnam)
((Wayne.Cole@thomsonreuters.com; 612 9171 7144; Reuters Messaging: wayne.cole.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Illustrating the costs of Beijing's strict policies, Apple Inc AAPL.O on Sunday said it expects lower iPhone 14 Pro and iPhone Pro Max shipments than previously anticipated as COVID-19 restrictions temporarily disrupt production. By Wayne Cole SYDNEY, Nov 7 (Reuters) - U.S. stock futures slipped in Asia on Monday after Beijing denied it was considering easing its zero COVID-19 policy, helping the dollar recover some losses while dealing a setback to oil and commodities. Risk assets had rallied on Friday amid speculation China was preparing to relax its pandemic restrictions, but over the weekend health officials reiterated their commitment to the "dynamic-clearing" approach to COVID cases as soon as they emerge.
|
Illustrating the costs of Beijing's strict policies, Apple Inc AAPL.O on Sunday said it expects lower iPhone 14 Pro and iPhone Pro Max shipments than previously anticipated as COVID-19 restrictions temporarily disrupt production. By Wayne Cole SYDNEY, Nov 7 (Reuters) - U.S. stock futures slipped in Asia on Monday after Beijing denied it was considering easing its zero COVID-19 policy, helping the dollar recover some losses while dealing a setback to oil and commodities. O/R Asia stock marketshttps://tmsnrt.rs/2zpUAr4 Asia-Pacific valuationshttps://tmsnrt.rs/2Dr2BQA (Reporting by Wayne Cole; Editing by Daniel Wallis & Shri Navaratnam) ((Wayne.Cole@thomsonreuters.com; 612 9171 7144; Reuters Messaging: wayne.cole.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Illustrating the costs of Beijing's strict policies, Apple Inc AAPL.O on Sunday said it expects lower iPhone 14 Pro and iPhone Pro Max shipments than previously anticipated as COVID-19 restrictions temporarily disrupt production. By Wayne Cole SYDNEY, Nov 7 (Reuters) - U.S. stock futures slipped in Asia on Monday after Beijing denied it was considering easing its zero COVID-19 policy, helping the dollar recover some losses while dealing a setback to oil and commodities. Risk assets had rallied on Friday amid speculation China was preparing to relax its pandemic restrictions, but over the weekend health officials reiterated their commitment to the "dynamic-clearing" approach to COVID cases as soon as they emerge.
|
Illustrating the costs of Beijing's strict policies, Apple Inc AAPL.O on Sunday said it expects lower iPhone 14 Pro and iPhone Pro Max shipments than previously anticipated as COVID-19 restrictions temporarily disrupt production. By Wayne Cole SYDNEY, Nov 7 (Reuters) - U.S. stock futures slipped in Asia on Monday after Beijing denied it was considering easing its zero COVID-19 policy, helping the dollar recover some losses while dealing a setback to oil and commodities. Still, investors seemed to hope there might be something to the China loosening story and MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS added 0.3%.
|
18547.0
|
2022-11-06 00:00:00 UTC
|
2 Tech Stocks To Watch In November 2022
|
AAPL
|
https://www.nasdaq.com/articles/2-tech-stocks-to-watch-in-november-2022
|
nan
|
nan
|
Tech stocks have been on the rise in recent years, as more and more people are investing in the latest and greatest technology. This trend shows no signs of slowing down, as new innovations are constantly being made in the tech world. Some of the most popular tech stocks include Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Microsoft Corporation (NASDAQ: MSFT).
These companies are leaders in their respective fields, and their stock prices have reflected this. investors who are looking to make a profit. Tech stocks can be a great investment for those who are willing to take a risk, as they have the potential to generate a lot of growth. However, it is important to remember that the tech sector is also very volatile, so it is important to do your research before investing. Considering this, here are two large-cap tech stocks to watch in the stock market today.
Tech Stocks To Buy [Or Sell] Now
Intuit Inc. (NASDAQ: INTU)
Alphabet Inc. (NASDAQ: GOOGL)
1. Intuit Inc. (INTU Stock)
Starting off, Intuit Inc. (INTU) is a global financial technology company. The company currently has over 100 million customers across the globe that use its family of software. This includes popular platforms like QuickBook, TurboTax, Credit Karma, and Mailchimp.
INTU Recent Stock News
In November, Intuit announced that it reaffirms its operating income and EPS forecast for the fiscal year 2023. Diving in, the company said it expects to report results for Q1 2023 on November 29, 2022. They also said that they are expecting to report 1st quarter of 2023 above the guidance that it provided at its Investor Day back on September 29, 2022.
The company’s CEO Sasan Goodarzi stated, “We continue to be bullish on our small business and tax businesses, which made up 86 percent of our revenue last year, and we expect each of these segments to meet our previously issued revenue guidance for the year as we continue to accelerate innovation across the company.”
INTU Stock Chart
On Friday, shares of INTU stock closed down 1.04%. Meanwhile, INTU stock is set to open Monday morning’s trading session at around $361.19 a share.
Source: TD Ameritrade TOS
[Read More] What Happens To Stocks During A Recession?
2. Alphabet (GOOGL Stock)
Next, Alphabet Inc. (GOOGL) is an American multinational conglomerate, notably the parent company of Google. The company is best known for its flagship product, Google Search, as well as for developing and owning such notable products and services as YouTube, and Android among others.
GOOGL Recent Stock News
Just last month, the tech giant reported a miss for its 3rd quarter 2022 financial results. Specifically, Alphabet reported earnings of $1.06 per share, along with revenue of $69.1 billion for the third quarter of 2022. This is compared to the street’s consensus estimates, which were earnings of $1.25 per share, and revenue estimates of $71.0 billion.
Ruth Porat, CFO of Alphabet and Google, said: “Our third quarter revenues were $69.1 billion, up 6% versus last year or up 11% on a constant currency basis. Financial results for the third quarter reflect healthy fundamental growth in Search and momentum in Cloud, while affected by foreign exchange. We’re working to realign resources to fuel our highest growth priorities.”
GOOGL Stock Chart
Meanwhile, Alphabet stock is going into the new trading week after closing Friday’s trading session up 3.78%. With that, shares of GOOGL stock are set to open Monday’s trading session at around $86.58 a share.
Source: TD Ameritrade TOS
If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel.
CLICK HERE RIGHT NOW!!
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Some of the most popular tech stocks include Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Microsoft Corporation (NASDAQ: MSFT). INTU Recent Stock News In November, Intuit announced that it reaffirms its operating income and EPS forecast for the fiscal year 2023. The company’s CEO Sasan Goodarzi stated, “We continue to be bullish on our small business and tax businesses, which made up 86 percent of our revenue last year, and we expect each of these segments to meet our previously issued revenue guidance for the year as we continue to accelerate innovation across the company.” INTU Stock Chart On Friday, shares of INTU stock closed down 1.04%.
|
Some of the most popular tech stocks include Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Microsoft Corporation (NASDAQ: MSFT). Tech Stocks To Buy [Or Sell] Now Intuit Inc. (NASDAQ: INTU) Alphabet Inc. (NASDAQ: GOOGL) 1. INTU Recent Stock News In November, Intuit announced that it reaffirms its operating income and EPS forecast for the fiscal year 2023.
|
Some of the most popular tech stocks include Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Microsoft Corporation (NASDAQ: MSFT). The company’s CEO Sasan Goodarzi stated, “We continue to be bullish on our small business and tax businesses, which made up 86 percent of our revenue last year, and we expect each of these segments to meet our previously issued revenue guidance for the year as we continue to accelerate innovation across the company.” INTU Stock Chart On Friday, shares of INTU stock closed down 1.04%. Alphabet (GOOGL Stock) Next, Alphabet Inc. (GOOGL) is an American multinational conglomerate, notably the parent company of Google.
|
Some of the most popular tech stocks include Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Microsoft Corporation (NASDAQ: MSFT). Alphabet (GOOGL Stock) Next, Alphabet Inc. (GOOGL) is an American multinational conglomerate, notably the parent company of Google. GOOGL Recent Stock News Just last month, the tech giant reported a miss for its 3rd quarter 2022 financial results.
|
18548.0
|
2022-11-06 00:00:00 UTC
|
Better Big Tech Stock: Apple vs. Alphabet
|
AAPL
|
https://www.nasdaq.com/articles/better-big-tech-stock%3A-apple-vs.-alphabet
|
nan
|
nan
|
Shares of Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) moved in opposite directions after their latest earnings reports. Apple's stock jumped nearly 8% on Oct. 28 after it soundly beat Wall Street's expectations, but Alphabet's stock tumbled 9% on Oct. 26 after it broadly missed analysts' expectations on both the top and bottom lines.
Apple's stock has still declined 12% this year as of this writing, but Alphabet fared much worse with a 34% drop. Let's see why Apple outperformed Alphabet by such a wide margin and if it will remain the better bear market buy.
Image source: Apple.
The key differences between Apple and Alphabet
Apple generated 79% of its revenue in its latest quarter by selling iPhones, iPads, Macs, and other hardware products and accessories. The remaining 21% came from its Services business, which houses its App Store and subscription-based services. It ended fiscal 2022 (which ended in September) with over 900 million subscribers across all of its services.
Alphabet generated 79% of its revenue in its latest quarter from Google's advertising business, which houses the ads from its core search engine, its advertising network, and YouTube. The rest of Alphabet's revenue came from Google's Cloud platform (10% of its revenues), its subscription-based services, hardware products, and other smaller businesses.
Apple's hardware business faced supply chain constraints throughout the first nine months of fiscal 2022, but that pressure eased in the fourth quarter. It was also affected by intermittent COVID-19 lockdowns in China, but its sales in the Greater China area (19% of its fiscal 2022 revenue) still increased nearly 9% for the full year.
Alphabet's main challenge is the slowdown of the digital advertising market. Its ad sales had recovered quickly from the pandemic in 2021, but inflation, rising rates, and other macro headwinds all caused companies to buy fewer ads this year. YouTube, which suffered its first year-over-year revenue decline last quarter, also struggled to keep pace with ByteDance's TikTok in the short video market. Google's Cloud business continued to grow, but it couldn't fully offset its slower ad sales.
Which tech giant is growing faster?
Apple's revenue rose 33% to $365.8 billion in fiscal 2021, driven by robust sales of the iPhone 12 (its first family of 5G devices), while its EPS surged 71%. Its growth cooled off in fiscal 2022 as it lapped those 5G upgrades and it faced persistent supply chain headwinds, but its revenue still increased 8% to $394.3 billion as its EPS rose 9%. Analysts expect its revenue and earnings to grow 4% and 5%, respectively, this year.
Those growth rates might not seem impressive, but they don't factor in any new devices -- including its long-rumored AR (augmented reality) headsets -- or services that Apple might launch in 2023. Apple ended fiscal 2022 with $169 billion in cash and marketable securities, so it could still easily expand into new markets with big investments and acquisitions.
Alphabet's revenue rose 41% to $257.6 billion in 2021 as its advertising business posted a strong post-pandemic recovery. Its EPS also increased a whopping 91%. But in the first nine months of 2022, its revenue only grew 13% year over year to $206.8 billion (and decelerated throughout all three quarters) as its EPS declined 14%. Analysts expect its revenue to rise 10% this year but for its earnings to decrease 15%.
That slowdown can be entirely attributed to the market's softening demand for digital ads. Its overseas revenues are also being gobbled up by a strong dollar, which could continue to strengthen as interest rates continue to rise. Nevertheless, analysts expect Alphabet's revenue and earnings to grow 9% and 14%, respectively, as some of those headwinds dissipate.
Alphabet ended the third quarter with $22 billion in cash and equivalents, which also gives it ample room for fresh investments and acquisitions. But for now, Alphabet plans to rein in its spending until its core advertising business recovers.
The valuations and verdict
Apple's stock outperformed Alphabet's this year because its core business seemed more resistant to the macro headwinds. But at 24 times forward earnings, Apple's stock looks a bit pricey relative to its near-term growth. Alphabet trades at just 17 times forward earnings, but that lower valuation suggests that investors aren't too optimistic about its future.
I own both of these stocks, and I think they're still great long-term investments. But if I had to buy more shares of one of these stocks right now, I'd pick Apple instead of Alphabet because its near-term growth is more predictable, it's better insulated from the macroeconomic headwinds, and it's widely expected to roll out new products and services -- which the market probably hasn't fully priced in yet -- in 2023 and beyond. Alphabet's stock might seem cheaper, but it probably won't command a higher valuation until the broader digital advertising market recovers.
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 September 30, 2022
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Leo Sun has positions in Alphabet (A shares) and Apple. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), 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.
|
Shares of Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) moved in opposite directions after their latest earnings reports. Its growth cooled off in fiscal 2022 as it lapped those 5G upgrades and it faced persistent supply chain headwinds, but its revenue still increased 8% to $394.3 billion as its EPS rose 9%. Those growth rates might not seem impressive, but they don't factor in any new devices -- including its long-rumored AR (augmented reality) headsets -- or services that Apple might launch in 2023.
|
Shares of Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) moved in opposite directions after their latest earnings reports. Alphabet generated 79% of its revenue in its latest quarter from Google's advertising business, which houses the ads from its core search engine, its advertising network, and YouTube. Apple's hardware business faced supply chain constraints throughout the first nine months of fiscal 2022, but that pressure eased in the fourth quarter.
|
Shares of Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) moved in opposite directions after their latest earnings reports. The key differences between Apple and Alphabet Apple generated 79% of its revenue in its latest quarter by selling iPhones, iPads, Macs, and other hardware products and accessories. But if I had to buy more shares of one of these stocks right now, I'd pick Apple instead of Alphabet because its near-term growth is more predictable, it's better insulated from the macroeconomic headwinds, and it's widely expected to roll out new products and services -- which the market probably hasn't fully priced in yet -- in 2023 and beyond.
|
Shares of Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) moved in opposite directions after their latest earnings reports. But in the first nine months of 2022, its revenue only grew 13% year over year to $206.8 billion (and decelerated throughout all three quarters) as its EPS declined 14%. But if I had to buy more shares of one of these stocks right now, I'd pick Apple instead of Alphabet because its near-term growth is more predictable, it's better insulated from the macroeconomic headwinds, and it's widely expected to roll out new products and services -- which the market probably hasn't fully priced in yet -- in 2023 and beyond.
|
18549.0
|
2022-11-05 00:00:00 UTC
|
Musk's Twitter updates app to start charging $8 for blue checkmark
|
AAPL
|
https://www.nasdaq.com/articles/musks-twitter-updates-app-to-start-charging-%248-for-blue-checkmark
|
nan
|
nan
|
By Rhea Binoy
Nov 5 (Reuters) - Twitter on Saturday updated its app in Apple's App Store to begin charging $8 for sought-after blue check verification marks, in Elon Musk’s first major revision of the social media platform.
The change comes a week after Musk took over the social media company in a $44 billion deal. The billionaire entrepreneur and CEO of electric car maker Tesla TSLA.Ocut half the staff at Twitter and has vowed to start charging users more.
In an update to Apple iOS devices, Twitter said those who "sign up now" for $7.99 a month can receive the blue checkmark next to their user names, "just like the celebrities, companies and politicians you already follow."
Before Musk took over, blue check marks next to a person's user name meant Twitter confirmed the account belonged to the person or company claiming it. It was not immediately clear how or if Twitter planned to verify the identity of the user beyond charging a fee.
According to the iOS notification, other benefits in the update include "half the ads", the ability to post longer videos to Twitter and priority ranking for quality content.
Twitter and Musk, via Tesla, did not immediately respond to a request for comment.
Twitter's new boss flagged the updates earlier this week in his push to monetize the social media network and make it less reliant on ads. Twitter is currently free for most users.
Twitter's update said the new service with verification will be available in the United States, Canada, Australia, New Zealand and the United Kingdom.
"As soon as we confirm it's working well in the initial set of countries and we have the translation work done, it will roll out worldwide," Musk said in a tweet on Saturday.
Twitter Blue will roll out in India in "hopefully less than a month," Musk tweeted in reply to a question from a follower.
In a separate tweet, Musk also added that "fixing search is a top priority" on Twitter.
"We can beat that," he replied in another tweet when a user pointed out that YouTube gives creators 55% of ad revenue.
"Twitter will soon add ability to attach long-form text to tweets, ending absurdity of notepad screenshots. Followed by creator monetization for all forms of content," Musk added in a tweet.
As of Saturday, the update to Twitter Blue remained at the old price of $4.99.
Shortly after the update was available to users, Twitter's early stage products executive Esther Crawford said the new service was not yet live.
"The new Blue isn’t live yet — the sprint to our launch continues but some folks may see us making updates because we are testing and pushing changes in real-time," she said in a tweet.
Earlier this week, Crawford went viral after she retweeted a photo of herself sleeping on the office floor at Twitter's San Francisco headquarters after Musk's takeover.
"When your team is pushing round the clock to make deadlines sometimes you #SleepWhereYouWork".
(Additional reporting by Megan Davies; Sneha Bhowmik in Bengaluru; Editing by Daniel Wallis and Ken Li)
((daniel.wallis@thomsonreuters.com;; (303)-335-5080; Reuters Messaging: daniel.wallis.thomsonreuters@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.
|
In an update to Apple iOS devices, Twitter said those who "sign up now" for $7.99 a month can receive the blue checkmark next to their user names, "just like the celebrities, companies and politicians you already follow." According to the iOS notification, other benefits in the update include "half the ads", the ability to post longer videos to Twitter and priority ranking for quality content. Earlier this week, Crawford went viral after she retweeted a photo of herself sleeping on the office floor at Twitter's San Francisco headquarters after Musk's takeover.
|
By Rhea Binoy Nov 5 (Reuters) - Twitter on Saturday updated its app in Apple's App Store to begin charging $8 for sought-after blue check verification marks, in Elon Musk’s first major revision of the social media platform. Before Musk took over, blue check marks next to a person's user name meant Twitter confirmed the account belonged to the person or company claiming it. Twitter's new boss flagged the updates earlier this week in his push to monetize the social media network and make it less reliant on ads.
|
By Rhea Binoy Nov 5 (Reuters) - Twitter on Saturday updated its app in Apple's App Store to begin charging $8 for sought-after blue check verification marks, in Elon Musk’s first major revision of the social media platform. Before Musk took over, blue check marks next to a person's user name meant Twitter confirmed the account belonged to the person or company claiming it. Twitter's new boss flagged the updates earlier this week in his push to monetize the social media network and make it less reliant on ads.
|
By Rhea Binoy Nov 5 (Reuters) - Twitter on Saturday updated its app in Apple's App Store to begin charging $8 for sought-after blue check verification marks, in Elon Musk’s first major revision of the social media platform. Twitter's new boss flagged the updates earlier this week in his push to monetize the social media network and make it less reliant on ads. Twitter Blue will roll out in India in "hopefully less than a month," Musk tweeted in reply to a question from a follower.
|
18550.0
|
2022-11-05 00:00:00 UTC
|
Buffett's Berkshire loses money as stocks, Hurricane Ian offset higher demand
|
AAPL
|
https://www.nasdaq.com/articles/buffetts-berkshire-loses-money-as-stocks-hurricane-ian-offset-higher-demand
|
nan
|
nan
|
By Jonathan Stempel
Nov 5 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N on Saturday posted a $2.69 billion third-quarter loss as rising inflation, falling stock investments and a big loss from Hurricane Ian offset improvement in many of the conglomerate's businesses.
Operating profit, meanwhile, rose by 20%, as Berkshire benefited from increased demand and prices for new home sales, industrial products and energy, while rising interest rates helped generate more income from insurance investments.
Berkshire took advantage of declining equity markets to add more stocks to its $306 billion portfolio, buying a net $3.7 billion in the quarter and building a now 20.9% stake in the oil company Occidental Petroleum Corp OXY.N.
It also bought back more of its own stock but was cautious, repurchasing $1.05 billion, similar to the second quarter.
The Omaha, Nebraska-based conglomerate's cash hoard ended September at $109 billion, up from $105.4 billion in June. It spent $11.6 billion last month to buy an insurance business, Alleghany Corp.
Berkshire's conservatism may reflect the "significant disruptions" that it said it still sees in supply chains and from events it cannot control, such as the COVID-19 pandemic and Russia-Ukraine conflict.
It also said rising costs hurt results at two of its best-known businesses, the BNSF railroad and Geico auto insurer.
'HUNKERING DOWN'
"The concern is which of the rising expenses are going to become more permanent," said Tom Russo, a partner at Gardner, Russo & Quinn in Lancaster, Pennsylvania, who invests more than $1 billion in Berkshire.
Russo said results reflect "an enterprise hunkering down and conserving resources while it awaits large 'elephants,'" a term Buffett uses to describe large acquisitions.
The quarterly net loss, equal to $1,832 per Class A share, compared with a profit of $10.34 billion, or $6,882 per share, a year earlier.
Operating profit rose to $7.76 billion, or about $5,294 per Class A share, from $6.47 billion, or $4,331 per share, a year earlier.
Results were bolstered by the strengthening U.S. dollar, which added $858 million to the value of Berkshire's non-dollar denominated debt, and a 21% increase in insurance investment income.
Income from U.S. Treasuries and other debt nearly tripled to $397 million, as the Federal Reserve aggressively raised short-term interest rates to combat inflation.
Profit rose 6% from Berkshire Hathaway Energy and 20% from manufacturing, service and retail businesses including Clayton Homes. Berkshire said, though, that higher mortgage rates will likely cut into future home sales.
That helped offset a $2.7 billion after-tax loss from Ian, a strong Category 4 hurricane that slammed into Florida on Sept. 28. Insurance modelers and executives said storm damages could far exceed $50 billion.
In 2022, Berkshire's stock has outperformed the Standard & Poor's 500 .SPX, falling just 4% compared with the index's 21% decline.
BNSF, GEICO
Profit at BNSF fell 6% as expenses jumped by one-third, including an 80% surge in fuel costs, some of which the railroad passed on to customers through surcharges.
Geico, meanwhile, suffered its fifth straight quarterly underwriting loss, reflecting "significant cost inflation" from damages claims, used car prices and shortages of car parts.
Net results included $10.45 billion of losses from investments and derivatives, as the stock prices of many large Berkshire investments other than Apple Inc AAPL.O fell.
Accounting rules require Berkshire to report the changes even if it buys and sells nothing. This causes large quarterly swings in results that Buffett says are usually meaningless.
Buffett, 92, has run Berkshire since 1965.
Investors closely watch Berkshire because of his reputation, and because results from itsdozens of operating units often mirror broader economic trends.
Those units also include estate brokerage, and consumer brands such as Dairy Queen, Duracell, Fruit of the Loom and See's Candies.
(Reporting by Jonathan Stempel in New York; Editing by Mark Potter and Chizu Nomiyama)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Net results included $10.45 billion of losses from investments and derivatives, as the stock prices of many large Berkshire investments other than Apple Inc AAPL.O fell. Operating profit, meanwhile, rose by 20%, as Berkshire benefited from increased demand and prices for new home sales, industrial products and energy, while rising interest rates helped generate more income from insurance investments. It spent $11.6 billion last month to buy an insurance business, Alleghany Corp. Berkshire's conservatism may reflect the "significant disruptions" that it said it still sees in supply chains and from events it cannot control, such as the COVID-19 pandemic and Russia-Ukraine conflict.
|
Net results included $10.45 billion of losses from investments and derivatives, as the stock prices of many large Berkshire investments other than Apple Inc AAPL.O fell. By Jonathan Stempel Nov 5 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N on Saturday posted a $2.69 billion third-quarter loss as rising inflation, falling stock investments and a big loss from Hurricane Ian offset improvement in many of the conglomerate's businesses. Operating profit, meanwhile, rose by 20%, as Berkshire benefited from increased demand and prices for new home sales, industrial products and energy, while rising interest rates helped generate more income from insurance investments.
|
Net results included $10.45 billion of losses from investments and derivatives, as the stock prices of many large Berkshire investments other than Apple Inc AAPL.O fell. By Jonathan Stempel Nov 5 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N on Saturday posted a $2.69 billion third-quarter loss as rising inflation, falling stock investments and a big loss from Hurricane Ian offset improvement in many of the conglomerate's businesses. Berkshire took advantage of declining equity markets to add more stocks to its $306 billion portfolio, buying a net $3.7 billion in the quarter and building a now 20.9% stake in the oil company Occidental Petroleum Corp OXY.N.
|
Net results included $10.45 billion of losses from investments and derivatives, as the stock prices of many large Berkshire investments other than Apple Inc AAPL.O fell. By Jonathan Stempel Nov 5 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N on Saturday posted a $2.69 billion third-quarter loss as rising inflation, falling stock investments and a big loss from Hurricane Ian offset improvement in many of the conglomerate's businesses. Operating profit, meanwhile, rose by 20%, as Berkshire benefited from increased demand and prices for new home sales, industrial products and energy, while rising interest rates helped generate more income from insurance investments.
|
18551.0
|
2022-11-05 00:00:00 UTC
|
Amazon, Apple, and Other Hot Names Investors Are Watching
|
AAPL
|
https://www.nasdaq.com/articles/amazon-apple-and-other-hot-names-investors-are-watching
|
nan
|
nan
|
In this podcast, Motley Fool senior analysts Jason Moser and Matt Argersinger discuss:
The diversity and strength of Apple's business lines.
Slowing growth in Amazon Web Services.
Meta Platforms hitting its lowest point in six years.
Ford Motor Company's demonstration of fiscal discipline.
The latest from Alphabet, Microsoft, and Visa.
ExxonMobil and McDonald's hitting new highs.
Chipotle Mexican Grill's plans for growth.
Surprisingly strong weeks for Teladoc Health and Intel.
Overrated and underrated Halloween candy.
Two stocks on their radar: SiTime Corp. and Lennox International
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Amazon
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 Amazon wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 30, 2022
This video was recorded on October 28, 2022.
Chris Hill: The biggest names in tech reported this week and 'tis the season for hot takes on Halloween candy. We got thoughts on all that and a lot more Motley Fool Money starts now.
Everybody needs money. That's why they call it money. From Fool global headquarters this is Motley Fool Money.
It's the Motley Fool Money radio show. I'm Chris Hill joining me in studio Motley Fool Senior Analyst Jason Moser and Matt Argersinger. Good to see you as always gentlemen.
Jason Moser: Hey.
Matt Argersinger: Hey.
Chris Hill: It's earnings-palooza, we've got the latest on some of the most widely held companies and as always, we've got a couple of stocks on our radar. But we begin with Apple, the biggest tech companies in the world reported earnings this week, but the reaction to Apple's report was different than the rest. Shares up more than 7% on Friday after fourth-quarter profits and revenue came in higher than expected. Jason, a little surprising when you consider how important the iPhone is to Apple's business and iPhone revenue was more than half a billion dollars lower than expected.
Jason Moser: But Apple's like pizza. Even when it's bad or it's not that great, it's still pizza. Same thing when Apple, it's still Apple. Did they blow the doors off quarter, nope but it was still a pretty Apple-like quarter and so even if they underperformed anywhere in regard to expectations, it was still a respectable quarter. Phones, services. They could have done a little bit better, but it's not like these were bad results and they point to a company that ultimately remains pretty darn resilient even in the face of a tough economic climate like we're in now. If you look at the numbers, revenue of $19.1 billion was up eight percent from a year ago and that includes 600 basis points of currency impact. To put some numbers around the fiscal year, fiscal 2022, $394 billion in revenue 8% annual growth. Services performed well, but probably not well enough in some eyes, $19.2 billion versus $18.3 billion a year ago, so 5% growth.
For a company we've been talking about, this is becoming a services company. That's not all that inspiring but the flip side of that is they've got more than 900 million paid subscriptions across the services on their platform. That's up more than 155 million over the last 12 months alone, a double what they had three years ago. They are pulling it off. I think they're just going to have to execute a little bit on the pricing side and we're seeing that with music and streaming. They're going to raise prices in music that's primarily due to licensing costs. They're going to raise prices on streaming because they feel like it's a better offering now and they can do it. Mac sales up 25%, iPad revenue was down 13%. Nothing terribly surprising there, wearables/homes/accessories, that was up 10%. I think all things considered, again, didn't blow the doors off the quarter, but a very respectable quarter, particularly when you compare it to the other big tech names that we'll talk about.
Matt Argersinger: I think Apple is always going to benefit from the power users of Apple that people that will buy the new iPhone, the new Mac, at least every two years. I'm just wondering, to your thought, if we do enter a slowdown or recession, consumer-driven or not, will their sales fall off just because people might delay buying that next iPhone, or the next iPad?
Jason Moser: I feel it maybe it does to an extent, but I think what we're seeing, I think a pretty common theme we're seeing this earnings season thus far as at least the current economic conditions and any potential recession that comes down the pike here, it seems to be impacting the lower-income earners as opposed to the higher-end income earners. Apple certainly benefits from that higher spender, that higher earner. It may delay, but I think ultimately that's a timing thing and if it does that, then you probably look at that as an opportunity to buy the stock.
Chris Hill: Amazon's third-quarter results showed slowing growth in the AWS division and the company lowered guidance for the all-important holiday quarter shares of Amazon down 10% on Friday. You tell me, Matt, how bad was this?
Matt Argersinger: Well, not great. I think you hit the two main things. It comes down to AWS and guidance. I want to know if I could tell a quick story really quickly though, before we get to that, which is July 2020, owned Amazon for 10 plus years, I had to sell shares first time because I was making a real estate investment, had some other things going on and I had to sell a bunch of things and I sold half my Amazon stake. I remember I trembled clicking the button to sell those shares because I didn't want to do it. Of course, at that point, the stock had just gone over $3,000 a share pre-split so but $150 post-split today and I was like, I'm going to regret this. I know I am. Of course over the next year, I watched the stock go up to, I think 180,185, almost 4,000 pre-split and I was depressed about that. Watching the stock come, I never thought I would see the stock down on a post-split basis below $100 a share, which it briefly did this week after earnings.
I'm excited about that, but I'm also realizing, there is something to why it's down and you hit it, which is there is this the Amazon Web Services part of this business it's been the crutch, even though the retail business has held up, and if you look at the retail numbers, they were fine. I think it was up 13% overall, which given the maturity of the business, of that e-commerce business, pretty strong. But you see the slowdown in AWS, which is slower-growing now than Google and Microsoft's competitors. I think the bigger thing might be the operating margins of that business have come down quite a bit. If that is the profit engine that is no longer there, or at least it's diminishing to a certain extent that I think had a lot investors worried. Then of course you said the guidance, looking at growth between 2 and 8%, I believe on their guidance range over the fourth quarter, that is probably a lot sharper than investors were expecting.
Chris Hill: Again, this is the holiday quarter.
Matt Argersinger: This is it.
Chris Hill: This is what people expect, not just Amazon but all retailers to really make their bones. Did the range of the guidance surprise you because it struck me as wider than typically we hear from Amazon and I just thought, and not that I fault them for this, but I thought on the low side they might be a little sandbagging.
Matt Argersinger: Probably a little bit and I think Amazon is known for this. I even said that their operating income will between zero and $4 billion. That's a tremendous range. I would not be surprised at all. I think what you're getting at is if they come in at the high end of those ranges when actually report.
Chris Hill: Shares of Meta platforms fell to their lowest level since 2016 this week, after the company's third-quarter report revealed just how much the company is investing in its metaverse division. Jason, we like it when CEOs communicate clearly, Mark Zuckerberg is being very clear about what he wants the future of Meta platforms to be.
Jason Moser: He is indeed. Then that's, we're going to see how that plays out. Certainly, it's not a surprise that there are challenges on the advertising front. At the end of the day it is cyclical and it goes as the economy goes to when those purse strings tighten, ad budgets tighten with them. But you said it, they're basically doubling down on this metaverse which right now is it still just a very squishy concept. You have Google with their moonshots. Those other bets as they call them. For Meta, for Facebook, this metaverse bed is an all in Pluto shot. It's so far out there that most people just can't see it and that's understandable. I'm not saying that it's a waste of investment dollars.
This probably works out in some capacity, but I think it's going to take a while and there are understandable concerns that he's overdoing it. Particularly when you look at the core business itself. Revenue was down if you exclude currency effects, it was up 2%. I think he'd take those bottom-line earnings down 49% from a year ago, which is obviously not good user growth, 4% was a positive, daily actives up 3%, but back to the ad market, while impressions were up 17%, price per ad continues to fall down 18%. They are spending a ton of money, though, capital expenditures $9.5 billion almost double from a year ago.
Guidance across the board not painting a very encouraging picture in the near term, as expenses continue to go up and revenue continues to come down. That repurchase about 32 million shares for the quarter at an average of about $203 per share and given where Facebook's prices today or Meta, I'm sorry. Clearly, that wasn't the wisest use of those dollars. I'm not the biggest fan of this company. I think most people know that said, and honestly from here. The stock is probably an opportunity for those who are able to take that longer view. It is really difficult to disrupt networks of that scale. I think that he will start to moderate those metaverse investments a little bit, but investors should be very prepared for a bumpy ride.
Chris Hill: Speaking of a slowdown in ad spending, Alphabet's third-quarter profits in revenue were lower than expected. Really with the exception of Google Cloud, it was across the board, Matt, shares of Alphabet down 7% this week.
Matt Argersinger: Right. It's important to remember that I think for a lot of these companies especially in the ad space, the comparable from a year ago were hard, they were going to be hard. If you look at Google's revenue, for example in the year-ago third quarter up 41%. The fact that they have any growth at all over those numbers is pretty impressive, but you're right. There's definitely a slowdown here. I think the biggest thing that stood out to me was just that the YouTube, the advertising revenue for YouTube was down. Maybe that was I didn't follow the guidance, so I don't know if that was expected, but that felt like a little bit of a shock to me. I think that's been such a sticky platform that's always gaining popularity in my mind, but it looks like and I don't use it so I don't know if it looks like TikTok is actually finally making some inroads and taking some market share from that short form, medium-term form video.
I feel like the ads slowdown is comparable, the tough, comparable perils last year. Explainable. I think the YouTube slowdown is the thing to watch here. I wish Alphabet, just pay a dividend. You've got all these other things and I know there's other bets. The one thing I'll say about comparing Meta to Alphabet is that the thing I like about Google's approach is that these other bets are spread around a lot of different areas where I feel like Mark Zuckerberg, and Facebook, Meta, it feels like an all-in bet where it's not the case for Alphabet at the same time, I'd rather they clamp down a little bit on that spending and maybe focus on dividends or other things.
Chris Hill: Let me go back to YouTube for a second because I think that part of the reaction we saw was not just to the results themselves, but to the fact that earlier this year, Alphabet already pulled the lever with YouTube in terms of original programming, where they said, you know what, we tried this, it's not working we're just going to pull this. The results we saw from YouTube become slightly more concerning when it's against the backdrop of like, they've already cut the original programming.
Matt Argersinger: That's right. No, that's a really good point.
Chris Hill: Visa, Microsoft and a lot more after the break so stay right here. You're listening to Motley Fool Money. Welcome back to Motley Fool Money. Chris Hill is here in studio with Jason Moser and Matt Argersinger. Visa's fourth-quarter profits and revenue came in higher than expected and Visa must have some extra cash laying around Jason because they increased their dividend and announced a $12 billion share buyback plan.
Jason Moser: I'm not complaining as a shareholder I'll take it. This was another very strong quarter and a good example of why I think Visa is worthy as a core fintech holding. It was interesting in the call right through that a lot of recession torque and management clearly, they're not planning for a recession in the coming year so maybe take that optimism with a grain of salt. If a recession does hit, we likely see them reassess the outlook, but I think counter to that is this is such a valuable network that leverages so many capabilities across the world.
Given the tailwinds and the electronic movement of money, maybe they're a little bit more immune than others, but to the numbers. The numbers were really strong. Fourth-quarter net revenue up 19 percent from a year ago. Non-GAAP earnings per share of $1.93 up 19 percent. Total payments for the core, total payments volume was up 10 percent from a year ago, up 135 percent versus three years ago, cross-border, which is an investment that Visa and MasterCard in particular continued to make. Those volumes were very encouraging up 49 percent from a year ago and 130 percent versus three years ago, and the new flows, which is ultimately it's beyond that consumer to business payments that they've always focused on.
Broader movement of money around individuals' businesses, governments, that was up over 20 percent for the quarter. As you said, they are going to continue buying back stock. They bought back for the year, $11.6 billion in shares at an average price of just over $205. Now the share counts down nine percent since 2017. That's really, that's the MO with owning the stock. They're going to continue to buyback those shares, pay a modest dividend. It's a stock that has offered investors some real stability here this year, just down three-and-a-half percent versus in the S&P's around 20. It's been a good one to own.
Chris Hill: How much should we read into the fact that Visa doesn't think there's going to be a recession next year?
Jason Moser: Again, I think that it's just one of those things that plays into that broader trend of the electronic movement of money. I think they benefit from that, but I would not be surprised if we do hit that recessionary period. You'd likely see management maybe reassess their outlook a little bit.
Chris Hill: Microsoft brought in more than $50 billion in revenue in the first quarter, but shares of the software giant are down a bit this week after guidance for the current quarter, a little bit lower than Wall Street was hoping for, Matt.
Matt Argersinger: Yeah, a lot a lot lower and maybe I'm surprised that the growth, they're guiding for growth of just two percent in the next quarter. That seems very low to me. This was also, by the way, Microsoft's lowest rate of revenue growth in five years. Good news is you still have the Azure Cloud business growing 35 percent. It was the one that was trailing Amazon for many years, but it's really, it's maintained its growth. It's now growing faster than Amazon's Web Services. Stand out to me, does anyone use LinkedIn around here? Because LinkedIn's revenue was up 17 percent. I'm really surprised that the sessions to LinkedIn were up 24 percent. When I remember Jason, we're working on a million-dollar portfolio back in the day and when Microsoft acquired LinkedIn. I just thought this just seems like a real stab in the dark for Microsoft who miss the whole social networking and this was their chance to get in on that. I think they've done a tremendous job with LinkedIn, even though I don't use it very much. I don't really know many people that do.
Jason Moser: I'm with you. Every time I log into it, I wonder why did I just log into this.
Chris Hill: There has been a lot of job movement in 2022, so I think that's part of it. But take solace in the fact that you weren't the only ones. There were plenty of people looking at that acquisition back was it $26 billion that's my memory.
Matt Argersinger: That sounds about right.
Chris Hill: But I remember thinking at the time are they just bored, are they just doing it to just to see because to your point, Matt and also yours is, the way they have consistently monetized it and it's really just been in the, I think the last couple of years that they've broken that out and highlighted that. But it is surprising when you look at the run rate on LinkedIn.
Matt Argersinger: Very impressive.
Chris Hill: Ford Motor posted a loss in the third quarter, but shares up eight percent this week. In part because Ford executives said they are going to stop pouring money into their autonomous driving initiative, Jason. They were very clear about this. We're not doing this anymore.
Jason Moser: Well, certainly the future for now is more EV unless AV and I think shareholders have reason to celebrate there. They will continue to invest in the electric vehicle capability that they've developed and they're the number 2 EV brand in the US now, so I think that says a lot. I wouldn't say they've given up fully on autonomy, but management also recognizes that its a far more complex problem than some would have you believe it requires more time, capital, capability that would take them away from making sure that they focus on success in the near term with the things that they do really well, building cars. EVs are a little bit of a more natural extension, I think at this point. The company is in great fiscal shape of $50 billion in total liquidity.
As they noted in the call, they're going to impair this investment in Argo, which ultimately was that effort at L4 Autonomy, and L4, If you remember, that's considered to be fully autonomous driving, although a human driver can still request control and the car still has a cockpit. They are going to continue to invest in autonomy, but it's going to be more L2, and L3, which ultimately just brings more human judgment into play there. I think that makes a lot of sense because I think most of us agree and I've been very critical of this move toward AVs because to me it feels like the technology for the car I think is there, but we don't have the infrastructure, we don't have the road system that can handle that at this point. Matt you said here earlier today in the production meeting, you got to build a city that's geared for that specific technology there. So far the future, I think it makes it a little bit more sense, but I really do appreciate that they're going to focus more on EV, more on the automobile, ratchet back on the autonomy a little bit and move forward.
Matt Argersinger: You can only innovate so much at the car level you said it. If the infrastructure and the cities and the roads aren't meeting that technology investment, you're never going to be able to do that and I just say kudos to Ford, by the way, a company, unlike other companies we've talked about that decides to cut bait on something that's just not working out instead of doubling down.
Chris Hill: Well, and also saying like, look, we're looking out over the next 10 years, and over the next 10 years, this isn't going to pay off.
Matt Argersinger: Maybe let someone else innovate it and Ford can of course, build vehicles into that eventually.
Chris Hill: After the break, we've got restaurants, more tech, and two dividend aristocrats hitting new all-time highs. Stay right here. You're listening to Motley Fool Money. Welcome back to Motley Fool Money, Chris Hill here in studio with Jason Moser and Matt Argersinger. ExxonMobil's third-quarter profits were not just a record, but a just shy of $20 billion. The energy giants profits were within shouting distance of Apple's quarterly profits, Matt, shares of ExxonMobil hitting a new all-time high on Friday.
Matt Argersinger: Yeah. All good, when oil prices are at multi-year highs, we know that is the business. But kudos to Exxon. Darren Woods the CEO, I believe he was on CNBC on Friday, and he said, We use lean times like we had beginning of the early on in COVID and the months after to really keep our CapEx programs going, keep exploring to prepare ourselves for the eventual good times like we have today. If you look at ExxonMobil's history, it's an energy giant, but it's also one of the most innovative companies out there. They've always been really great capital allocators.
This is just proving the point that, if you can survive the boom and bust cycles of the energy space, which ExxonMobil has done very successfully for decades, you can do quite well as an investor. I love this, I'm looking at this chart. We're beating too much on Meta, I get it, but it was like a year ago, Meta stock price market capitalization was three times the size of Exxon's. Exxon is now on the verge of being twice the market cap of Meta and that happened in the space of about a year. Think about the turnaround there, but really impressive results. I saw that they raised their dividend. Again, this is of course a long time dividend payer Dividend Aristocrat company so you have that as well.
Chris Hill: Teladoc Health's loss in the third quarter was smaller than expected. Shares of Teladoc up more than 20 percent this week Jason, is the worst if it over?
Jason Moser: Well, I don't want to make a call, but it does feel like we may be finally getting past this mess of an acquisition when they decided to buy Livongo a couple of years ago. The good news is there was no further goodwill impairment this go-round. Maybe we're on the other side of this thing and then get back to focusing on the core business. I think the results were very respectable, revenue was up 17 percent from a year ago to $611 million. The biggest driver of that growth continues to be BetterHelp, their direct-to-consumer mental health brand. That grew over 35 percent compared to the previous year. I think on that note to as much as I hammered them on that Livongo deal because I do, BetterHelp has grown and scaled so quickly and so effectively. It's working now at a run rate of one billion dollars in revenue. Now think about that for a second, they bought it for $4.5 million back in 2015. Livongo, maybe not so great.
Matt Argersinger: You're saying it's the opposite of the Livongo acquisition.
Jason Moser: It's the George Costanza of Livongo's and it's at least something to remember. They ended the quarter with total US paid members, 57.8 million versus 52.5 million a year ago, visit fee only 24.3 million versus 23.6 million a year ago, and average US revenue per member per month was $2.61, that was up nine percent from $2.40 a year ago. Utilization, 22.3 percent up from 21 percent a year ago as well. We're seeing signs that the business is starting to normalize, they talked about pipeline development really taking a turn for the better and in a great position here for the remainder of year and going into 2023, getting through some unforced errors in a difficult macro environment, but I still like what they're doing.
Chris Hill: I don't think any of us believe that a company being acquired is reason enough to buy shares of a company. That being said, when you look at where Teladoc Health is today, do you think it is an acquisition target?
Jason Moser: I'm sure there are folks out there that would like to own it, but I think that Teladoc management would much prefer to be able to forge their own paths. I don't suspect we'll see that, but it's an attractive asset.
Chris Hill: Shares of Intel up 10 percent on Friday after third-quarter profits came in higher-than-expected. The chipmaker also told investors it plans to reduce costs by up to $10 billion over the next three years. Cost-cutting is often music to Wall Street ears Matt.
Matt Argersinger: It is, but to me it's never the panacea to what looks like a pretty steady downtrend for Intel's business. I was looking at the results and trying to figure out, where the good news is and why investor-
Jason Moser: Why is the stock up?
Matt Argersinger: Revenue 15.3 billion down 15 percent year-over-year, adjusted net income down 60 percent from a year ago. I wonder if it's one of the situations where investors just were expecting much worse and it wasn't as bad as they thought, so the stock is up. This is a business that probably could be more efficient so I think that's a good story. If they can save three billion in cost reductions by 2023, maybe 8-10 billion in cost savings by the end of 2025 is what they're outlining. You also have a dividend, by the way, right now that's yielding over five percent. If you're an investor, maybe right now at today's price, there's not a lot that has to go right to really earn a nice return if you have that dividend in place, which they seem like they're going to defend and if they can bring some efficiencies and the business brings some costs down and this cycle comes back, the semi-cycle comes back in a year or two, maybe that works out for Intel.
Chris Hill: Not to be overly cynical, but this is one of those announcements that any company, not just Intel, can go back to over the next three years. This is something they can point to six, 12 months from now and say, Hey, by the way, we made that announcement in late 2022 and so far this year, this is what we've done toward that goal.
Matt Argersinger: Right. It's equivalent to sometimes a new CEO comes in and decides toss this kitchen sink out, we're cutting all these costs, business is going to be lean, but guess what? We can look back a year or two from now and say, Hey, that's when we made the business more efficient, look at our margins today, the business has come back. That's probably what's happening with Intel.
Chris Hill: Chipotle's third-quarter profits came in higher than expected, but customer visits fell and shares of the Burrito Company down a bit this week. Jason, I say this not just as someone who host this show, but also as a shareholder, it is fascinating to watch CEO Brian Niccol and his team continue to walk this line of managing inflation while also managing price increases, they're passing along to customers.
Jason Moser: Yeah. They do a very effective job of it. In with around 3,100 stores today, the management sees an opportunity for this business to get to 7,000 stores in total. Now, if you think that's optimistic, which I do, so let's discount that 20 percent that's still around 5,600 stores they could potentially get to, I think likely will. To me, I think that helps make some sense of today's valuation, get a Burrito maker trading at like 44 times forward earnings. Sounds like a lot, but there's a lot of growth to be had there and they make good foods. When you look at the numbers, I think that really tells us a lot, sales were up 14 percent for the quarter $2.2 billion and that was driven by a 7.6% percent comp versus a year ago.
The in-store sales grew by 22 percent, digital sales represented 37 percent. If that sounds a little low, it is, but that's a sign that people are getting back out there and I think that's a good thing. Restaurant level margin 25.3 percent, that was up 180 basis points from a year ago and ultimately adjusted earnings $9.51, up 35 percent from last year, opened 43 new restaurants, 30 of those with Chipotlanes. Again, speaking to that convenience digital ordering, trying to be wherever the consumer wants them to be, they now have 30 million rewards members up from 24.5 million just a year ago. They continue with modest share repurchases, but ultimately that just offsets dilution.
The balance sheet remains in great shape over $1.2 billion in cash and equivalents. To your point, they're managing the costs and inflation along with pricing yet it does continue to create headwinds. They've seen costs go up 20 percent over the last two years. They just effectively, just methodically pass-through little price increases here and there that customers continue to pay for. Then finally, Chipotle, the tech company I'm really looking forward to seeing how this chippy thing plays out. Talk about your chipmakers. Chip is autonomous chipmaking, like this thing it's a chip making robot. I'm not talking about IT chips Matt, I'm talking about those sausage.
Matt Argersinger: I like those chips so much better, they are important chips.
Jason Moser: I think it's just going to be fun to watch this play out. There is a very innovative management team, they try new things as a lot of fun. I'm happy to continue owning these shares.
Chris Hill: There was a point in time when the growth story for Chipotle involved other cuisines, the Shophouse concept, they were, I think kicking around a burger concept, that thing. Do you get any sense from Brian Niccol that that is something even on the back burner that they are considering or is that completely off their radar?
Jason Moser: I don't get any sense that he has any interest in it at all. I say that as someone I loved those other efforts. I thought they made some really good food, there were tremendous offerings, but it's encouraging to see that he really is going to focus on the core concept here.
Chris Hill: Breakfast. Where are we on Breakfast?
Jason Moser: We've been asking that for years.
Chris Hill: I know.
Jason Moser: Been waiting for it for years.
Chris Hill: But unlike the other concepts where you could find people who would take a bearish outlook and ultimately the company just decided to put those things away. Who's bearish on breakfast?
Jason Moser: Feels like the biggest no brainer in the history. No brainers, Chris.
Chris Hill: Global same-store sales for McDonald's rose 9.5 percent in the third-quarter, helping to push shares to a new all-time high. Matt, unlike a lot of restaurant chains, including Chipotle, McDonald's, seeing an increase in customer traffic.
Matt Argersinger: Yeah. Great results for McDonald's. The one disadvantage McDonald's has by being such a global company versus a Chipotle, which still as far as I know, mostly a North American story, even though their global comp sales were up 9.5 percent, and US comp sales were up six percent, overall revenue was actually down five percent because you got the stronger dollar, lower traffic in a lot of the international stores. That was affecting them a little bit. Operating profits were actually down four percent, but again, in constant currencies, up four percent. McDonald's is, the growing pains of being a very large company that scales across the globe is affecting it a little bit. But those things are outside of management's control, and I'd say can't control currencies or what happens in the macro economy. The results are fantastic from an operating basis. Also raised their dividend 10 percent, so a brand as mature as McDonald's doing this well is really impressive.
Chris Hill: What about these comments that CEO Chris Kempczinski made on the call about the McRib, where he referred to it as the goat of sandwiches and compared it to Michael Jordan and Tom Brady?
Matt Argersinger: Maybe a stretch of the tad stretch I've actually never heard the McRib, so I can't speak to its qualities. But well, to me, there's the question of like really, this is the greatest sandwich of all-time? Also, McDonald's is not in the McRib business, they are in the burger business. On another level, I just find it odd that he was essentially just pushing aside all the burgers and just saying, now there's limited-time offer sandwich we roll out once in a great while. That's the greatest of all time. I was like, really? That seems like a bad message to send.
Chris Hill: It might be, but can't argue with the results so far. Just like stocks, some Halloween candies are overvalued, while others are flat out undervalued. After the break, we've got our picks for overrated an underrated Halloween candies, as well as a couple of stocks on our radar so stay right here. You're listening to Motley Fool Money. As always, people on the program may have interest in the stocks they talk about and the Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. Welcome back to Motley Fool Money. Chris Hill here in studio with Jason Moser and Matt Argersinger. Tis the season guys, Halloween, just hours away actually. As we do every year, let's talk about some overrated and underrated candies, because they're not all fairly rated. Matt, I'll start with you. What is an overrated Halloween candy, in your opinion?
Matt Argersinger: Got to be Jolly Ranchers. They're small, they're cheap. People throw them in your bag. They take forever to consume. They make your mouth turn green and blue for hours.
Chris Hill: They're not chocolate.
Matt Argersinger: No, they're not chocolate. I have to sit there and suck on one for an hour before I get to my next piece of candy, which is inconvenient.
Jason Moser: I understand where you're coming from because it's a very polarizing candy, but it's a true story. I made a new year's resolution, one year, several years back to my wife to stop eating Jolly Ranchers because I couldn't stop I had a ball of those things. I'd throw 20 of them in there during a day because they're so fruity and delightful.
Matt Argersinger: But unsatisfying, so you have to keep eating.
Jason Moser: You're right. That's why ultimately I made that resolution, and I will say I fulfilled that resolution, and now my hankering for Jolly Ranchers is almost non-existent.
Chris Hill: On some level, were you telling yourself you were eating fruit, you were eating something healthy?
Jason Moser: No.
Chris Hill: There's vitamin C, maybe.
Jason Moser: No I think I was just in denial that I had a problem.
Chris Hill: What do you think is overrated?
Jason Moser: For me, this one came right to top of mind, Twizzlers. When I see the commercial even, I don't get it. It's like chewing on a shoe. I don't care what flavor, whether it's licorice, or strawberry, or cherry, whatever, I don't get the attraction to Twizzlers. You find them in those variety bags. It's thrown away. They're not good.
Matt Argersinger: My parents alone loved Twizzlers. They accidentally left a bag of the long Twizzlers open. I don't know if it was on the floor or something, but their dog consumed it. This just a week ago, consumed an entire bag of large Twizzlers.
Jason Moser: At least it wasn't chocolate.
Matt Argersinger: Yeah. The dog is still alive.
Chris Hill: Let's go to the other side Matt. What do you think is an underrated candy?
Matt Argersinger: Rolos. I'm not even a caramel fan, but Rolos, I love the taste that come in a little gold wrapping, which always feels great, but I just feel like I don't know where they've gone. I don't see Rolos that much anymore.
Chris Hill: I will say this about Rolos. I'm blanking on who makes them, but they clearly hit on something good and they just decided, no, we don't need to innovate. It's not like Mondelez with Oreos, where it's like, let's just try new flavors, no. We've got a hit on our hands, we're just going to keep making this here.
Matt Argersinger: No need to innovate.
Chris Hill: What about you, Jason?
Jason Moser: Chris, I get so sized for Whatchamacallit. I can't understand how we don't see them in every variety bag, everywhere. The big candy bars, I think in mini form they would be even better. It takes me back to my childhood. You remember the original Whatchamacallit that didn't have a caramel in it, now that has the caramel and it's still delicious. I just don't understand how this is not a candy we see everywhere. Whenever I find those things in my kid's trick or treat baskets, they're junior and senior in high school, but they still somehow come on with candy. I'm looking for those things. I'll sneak them, I'm not scared.
Chris Hill: Well, they're not listening to this show, so they don't know probably that you're sneaking them. This weekend we have an episode dedicated to the business of candy, because as any Hershey shareholder can tell you, it can be a very lucrative business for shareholders. One of the things they're doing on that episode is power rankings of Halloween candy. Let's go to our man behind the glass, Dan Boyd, who's going to be on that episode with his power rankings of candy. But Dan underrated, overrated, any thoughts here either way?
Dan Boyd: I just want to echo that both Jolly Ranchers and Twizzlers are completely trashed here. Throw them directly in the garbage, no need. I want to echo my sentiment from previous years of this, Chris, and remind everybody that the Milky Way is a joke of a product, just completely awful. Just get a Snickers, it's ten times better. Then as far as underrated candies, I want to go with the humble Payday here. The peanut and caramel combination, I think is extremely strong.
Chris Hill: Love and, can't improve on that. Let's get to the stocks on our radar. Dan, I'll hit you with a question. Matt, you're up first, what are you looking at this?
Matt Argersinger: I'm going with one, and I'm sure a lot of listeners haven't heard of, its Lennox International ticker, LII. It's actually been around since 1895. They were pioneer in the business of forced air heating for homes, but they make and distribute HVAC and refrigeration products. Record results in the third quarter. They are a dividend night, which means they have beaten the market over the last 10 years and raised the dividend by more than 10 percent annually over the last 10 years. Since their IPO in 1999, up 1,800 percent versus the market, which is up only about 350 percent. Big time performer.
Chris Hill: Impressive stuff. Dan, question about Lennox International?
Dan Boyd: I don't know about the company, but man, the dividend night label is quickly becoming my favorite way to look at stocks. Is this stock dividend night? Then it sounds pretty good to me.
Chris Hill: Jason Moser, what are you looking at this week?
Jason Moser: Yeah, a company called SiTime. Ticker is SITM. SiTime specializes in designing precision timing MicroElectroMechanical Systems, or MEMS for short.
Matt Argersinger: Wow.
Jason Moser: Not to be confused with some metrics we discussed earlier in the week, like perhaps DTRG or something like that. But regardless, this is a smaller, more efficient chips essentially is what they are. Rugged, accurate, durable, effective. It's really about moving away from coats and toward silicone, which is a better timing keeping mechanism. It's better than the legacy courts-base system. That's what SiTime focuses on their solutions. They're used for everything from data centers, to communications, companies, to those personal devices that we have in our pocket, Chris. As the world moves toward more technology, faster means of communication, the more connected we become, the more MEMS timing systems are going to be required to make all this happen, which just plays right into their wheelhouse. Earnings for SiTime out on Wednesday, November 2nd, given the challenges we've seen in the greater semiconductor space, it will be noteworthy to hear what they had to say.
Chris Hill: Dan, question about SiTime?
Dan Boyd: Now, Jason to say that this market is somewhat saturated is a little bit of an understatement when it comes to chips and your various silicone processors and everything. What about SiTime makes it special and interesting for investing other than a Taiwan Semiconductor.
Jason Moser: Well, I think ultimately it's that specialization in moving away from cords to silicone. Their thesis, and this is one that seems to be playing out is it is even more superior time keeping device and so that's what they're playing into. They sell their chips to big distributors who then sell to end customers. It's worth noting that Apple really is one of their largest end customers, if not the largest end customer,.
Chris Hill: What do you want to add to your watchlist, Dan?
Dan Boyd: In no surprise, I'm going to go with the dividend night, go with Lennox International.
Matt Argersinger: There you go, Dan.
Chris Hill: Matt Argersinger, Jason Moser, thanks for being here, guys.
Jason Moser: Thank you.
Matt Argersinger: Thanks, Chris.
Chris Hill: I'm Chris Hill. Thanks for listening. We'll see you next time.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. 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. Chris Hill has positions in Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Chipotle Mexican Grill, ExxonMobil, Microsoft, Taiwan Semiconductor Manufacturing, Teladoc Health, and Visa. Dan Boyd has positions in Amazon and Chipotle Mexican Grill. Jason Moser has positions in Alphabet (C shares), Amazon, Apple, Chipotle Mexican Grill, Teladoc Health, and Visa. Matthew Argersinger has positions in Alphabet (C shares), Amazon, Chipotle Mexican Grill, Intel, Teladoc Health, and Visa and has the following options: short December 2022 $100 puts on Alphabet (A shares). The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Chipotle Mexican Grill, Intel, Meta Platforms, Inc., Microsoft, SiTime Corporation, Taiwan Semiconductor Manufacturing, Teladoc Health, and Visa. 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.
|
I wouldn't say they've given up fully on autonomy, but management also recognizes that its a far more complex problem than some would have you believe it requires more time, capital, capability that would take them away from making sure that they focus on success in the near term with the things that they do really well, building cars. As they noted in the call, they're going to impair this investment in Argo, which ultimately was that effort at L4 Autonomy, and L4, If you remember, that's considered to be fully autonomous driving, although a human driver can still request control and the car still has a cockpit. We're seeing signs that the business is starting to normalize, they talked about pipeline development really taking a turn for the better and in a great position here for the remainder of year and going into 2023, getting through some unforced errors in a difficult macro environment, but I still like what they're doing.
|
Chris Hill has positions in Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Chipotle Mexican Grill, ExxonMobil, Microsoft, Taiwan Semiconductor Manufacturing, Teladoc Health, and Visa. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Chipotle Mexican Grill, Intel, Meta Platforms, Inc., Microsoft, SiTime Corporation, Taiwan Semiconductor Manufacturing, Teladoc Health, and Visa. 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.
|
I'm Chris Hill joining me in studio Motley Fool Senior Analyst Jason Moser and Matt Argersinger. Welcome back to Motley Fool Money, Chris Hill here in studio with Jason Moser and Matt Argersinger. They ended the quarter with total US paid members, 57.8 million versus 52.5 million a year ago, visit fee only 24.3 million versus 23.6 million a year ago, and average US revenue per member per month was $2.61, that was up nine percent from $2.40 a year ago.
|
Chris Hill is here in studio with Jason Moser and Matt Argersinger. Chris Hill: Well, and also saying like, look, we're looking out over the next 10 years, and over the next 10 years, this isn't going to pay off. Welcome back to Motley Fool Money, Chris Hill here in studio with Jason Moser and Matt Argersinger.
|
18552.0
|
2022-11-04 00:00:00 UTC
|
Technology Sector Update for 11/04/2022: LASR,OLED,AAPL,ACMR,TEAM
|
AAPL
|
https://www.nasdaq.com/articles/technology-sector-update-for-11-04-2022%3A-lasroledaaplacmrteam
|
nan
|
nan
|
Technology stocks rebounded strongly heading into Friday's close, with the SPDR Technology Select Sector ETF (XLK) rising 1.4%, shaking off a nearly 1% decline for Apple (AAPL) after Bloomberg reported the sector titan was suspending new hiring in outside research and development.
The Philadelphia Semiconductor Index also was surging 4.1% Friday afternoon.
In company news, nLIGHT (LASR) slid nearly 12% after the specialty chipmaker and fiber lasers company reported a wider Q3 net loss than analysts were anticipating along with a 17% year-over-year drop in revenue for the September quarter, also missing analyst estimates. For the current quarter, the company sees revenue in a range of $53 million to $59 million compared with the analyst mean of $60.6 million in Q4 revenue.
Atlassian (TEAM) tumbled more than 29% after the software licensing company reported a decline in its fiscal Q1 earnings compared with year-ago levels, trailing analyst estimates, and projected revenue for the current quarter lagging consensus views. For its Q2 ending in December, the company sees revenue in a range of $835 million to $855 million compared with the Capital IQ consensus looking for $879.6 million.
On the upside, ACM Research (ACMR) was gaining 6.4%, backing down from an early 19% spike, after the chipmaking-equipment company easily dispatched market expectations with its Q3 results, earning $0.42 per share during the three months ended Sept. 30, excluding one-time items, more than doubling its $0.19 per share adjusted profit during the same quarter last year and topping the Capital IQ consensus expecting $0.23 per share. Revenue grew 99.5% year-over-year to $133.7 million, also outpacing the $113.3 million Street view.
Universal Display (OLED) climbed nearly 12% after the organic light emitting diode manufacturer late Thursday reported a Q3 profit of $1.12 per share, up from $0.97 per share during the same quarter in 2021 and beating the three-analyst consensus call by $0.06 per share. Total revenue also increased to $160.6 million compared with $143.6 million in revenue during the same quarter last year and also topped the $155.7 million analyst mean.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Technology stocks rebounded strongly heading into Friday's close, with the SPDR Technology Select Sector ETF (XLK) rising 1.4%, shaking off a nearly 1% decline for Apple (AAPL) after Bloomberg reported the sector titan was suspending new hiring in outside research and development. In company news, nLIGHT (LASR) slid nearly 12% after the specialty chipmaker and fiber lasers company reported a wider Q3 net loss than analysts were anticipating along with a 17% year-over-year drop in revenue for the September quarter, also missing analyst estimates. Atlassian (TEAM) tumbled more than 29% after the software licensing company reported a decline in its fiscal Q1 earnings compared with year-ago levels, trailing analyst estimates, and projected revenue for the current quarter lagging consensus views.
|
Technology stocks rebounded strongly heading into Friday's close, with the SPDR Technology Select Sector ETF (XLK) rising 1.4%, shaking off a nearly 1% decline for Apple (AAPL) after Bloomberg reported the sector titan was suspending new hiring in outside research and development. For the current quarter, the company sees revenue in a range of $53 million to $59 million compared with the analyst mean of $60.6 million in Q4 revenue. For its Q2 ending in December, the company sees revenue in a range of $835 million to $855 million compared with the Capital IQ consensus looking for $879.6 million.
|
Technology stocks rebounded strongly heading into Friday's close, with the SPDR Technology Select Sector ETF (XLK) rising 1.4%, shaking off a nearly 1% decline for Apple (AAPL) after Bloomberg reported the sector titan was suspending new hiring in outside research and development. For the current quarter, the company sees revenue in a range of $53 million to $59 million compared with the analyst mean of $60.6 million in Q4 revenue. For its Q2 ending in December, the company sees revenue in a range of $835 million to $855 million compared with the Capital IQ consensus looking for $879.6 million.
|
Technology stocks rebounded strongly heading into Friday's close, with the SPDR Technology Select Sector ETF (XLK) rising 1.4%, shaking off a nearly 1% decline for Apple (AAPL) after Bloomberg reported the sector titan was suspending new hiring in outside research and development. For the current quarter, the company sees revenue in a range of $53 million to $59 million compared with the analyst mean of $60.6 million in Q4 revenue. For its Q2 ending in December, the company sees revenue in a range of $835 million to $855 million compared with the Capital IQ consensus looking for $879.6 million.
|
18553.0
|
2022-11-04 00:00:00 UTC
|
Unusual Options Activity and Flow in Apple (AAPL)
|
AAPL
|
https://www.nasdaq.com/articles/unusual-options-activity-and-flow-in-apple-aapl
|
nan
|
nan
|
O
n November 2, 2022, among the underlying components of the NYSE, Unusual Whales saw unusual or noteworthy options trading volume and activity in Apple (AAPL) 4/21 P $135.00.
The following screenshot from Unusual Whales shows a large premium, bearish, contracts that are monthly and ask-side. The Bid-Ask is $7.05 - $7.24, the premium is $25K to $20.9M, open interest is at 3,026, and the volume is from 82 to 30,523.
You can see the full noteworthy options in AAPL at Unusual Whales. It is vital to look at the whole flow to better conceptualize unusual options, which we will give a screenshot of below.
Looking at the historical flow, you can see further information. Seen above at the very top is the aforementioned chain’s historical volume of puts and calls, in red and green respectively, and the price in white. Seen in the middle is the price, in blue, gamma score, in purple, flow ratio, in green, and cumulative premium options effect, or COPE, in orange.
The Unusual Whales intraday analyst page shows further information, as well. Looking at intraday analyst page for today, you can see the most active chains and chains with the highest open interest, as well as the intraday options volume, with puts and calls being noted in red and green respectively.
To view more information about AAPL daily flow breakdown, click here to visit unusualwhales.com.
Please note, as well, that the following information is not investment advice. Options are risky, and you can lose all or some of your investment. Do your own research before any investment, and see the full terms of Unusual Whales for details.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
n November 2, 2022, among the underlying components of the NYSE, Unusual Whales saw unusual or noteworthy options trading volume and activity in Apple (AAPL) 4/21 P $135.00. You can see the full noteworthy options in AAPL at Unusual Whales. To view more information about AAPL daily flow breakdown, click here to visit unusualwhales.com.
|
n November 2, 2022, among the underlying components of the NYSE, Unusual Whales saw unusual or noteworthy options trading volume and activity in Apple (AAPL) 4/21 P $135.00. You can see the full noteworthy options in AAPL at Unusual Whales. To view more information about AAPL daily flow breakdown, click here to visit unusualwhales.com.
|
n November 2, 2022, among the underlying components of the NYSE, Unusual Whales saw unusual or noteworthy options trading volume and activity in Apple (AAPL) 4/21 P $135.00. You can see the full noteworthy options in AAPL at Unusual Whales. To view more information about AAPL daily flow breakdown, click here to visit unusualwhales.com.
|
You can see the full noteworthy options in AAPL at Unusual Whales. n November 2, 2022, among the underlying components of the NYSE, Unusual Whales saw unusual or noteworthy options trading volume and activity in Apple (AAPL) 4/21 P $135.00. To view more information about AAPL daily flow breakdown, click here to visit unusualwhales.com.
|
18554.0
|
2022-11-04 00:00:00 UTC
|
Apple to expand live TV advertising around new soccer deal -Bloomberg News
|
AAPL
|
https://www.nasdaq.com/articles/apple-to-expand-live-tv-advertising-around-new-soccer-deal-bloomberg-news
|
nan
|
nan
|
Nov 4 (Reuters) - Apple Inc AAPL.O is preparing to expand its advertising network for live television as part of its deal to stream Major League Soccer (MLS) games next year, Bloomberg News reported on Friday, citing people with knowledge of the matter.
The iPhone maker is in talks with advertising partners and MLS sponsors in advance of the launch next February about airing advertisements during soccer games and related shows, according to the report.
Apple did not immediately respond to a Reuters request for comment.
Earlier this year, MLS and Apple TV announced a partnership that will see every game streamed on the app for the next decade. The deal was reported to be worth about $2.5 billion.
(Reporting by Chavi Mehta in Bengaluru; Editing by Anil D'Silva)
((Chavi.Mehta@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Nov 4 (Reuters) - Apple Inc AAPL.O is preparing to expand its advertising network for live television as part of its deal to stream Major League Soccer (MLS) games next year, Bloomberg News reported on Friday, citing people with knowledge of the matter. The iPhone maker is in talks with advertising partners and MLS sponsors in advance of the launch next February about airing advertisements during soccer games and related shows, according to the report. Earlier this year, MLS and Apple TV announced a partnership that will see every game streamed on the app for the next decade.
|
Nov 4 (Reuters) - Apple Inc AAPL.O is preparing to expand its advertising network for live television as part of its deal to stream Major League Soccer (MLS) games next year, Bloomberg News reported on Friday, citing people with knowledge of the matter. The iPhone maker is in talks with advertising partners and MLS sponsors in advance of the launch next February about airing advertisements during soccer games and related shows, according to the report. Earlier this year, MLS and Apple TV announced a partnership that will see every game streamed on the app for the next decade.
|
Nov 4 (Reuters) - Apple Inc AAPL.O is preparing to expand its advertising network for live television as part of its deal to stream Major League Soccer (MLS) games next year, Bloomberg News reported on Friday, citing people with knowledge of the matter. The iPhone maker is in talks with advertising partners and MLS sponsors in advance of the launch next February about airing advertisements during soccer games and related shows, according to the report. (Reporting by Chavi Mehta in Bengaluru; Editing by Anil D'Silva) ((Chavi.Mehta@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Nov 4 (Reuters) - Apple Inc AAPL.O is preparing to expand its advertising network for live television as part of its deal to stream Major League Soccer (MLS) games next year, Bloomberg News reported on Friday, citing people with knowledge of the matter. The iPhone maker is in talks with advertising partners and MLS sponsors in advance of the launch next February about airing advertisements during soccer games and related shows, according to the report. Apple did not immediately respond to a Reuters request for comment.
|
18555.0
|
2022-11-04 00:00:00 UTC
|
Apple to expand live TV advertising around new soccer deal -Bloomberg News
|
AAPL
|
https://www.nasdaq.com/articles/apple-to-expand-live-tv-advertising-around-new-soccer-deal-bloomberg-news-0
|
nan
|
nan
|
Adds Apple's response
Nov 4 (Reuters) - Apple Inc AAPL.O is preparing to expand its advertising network for live television as part of its deal to stream Major League Soccer (MLS) games next year, Bloomberg News reported on Friday, citing people with knowledge of the matter.
The iPhone maker is in talks with advertising partners and MLS sponsors in advance of the launch next February about airing advertisements during soccer games and related shows, according to the report. Apple declined to comment.
Earlier this year, MLS and Apple TV announced a partnership that will see every game streamed on the app for the next decade. The deal was reported to be worth about $2.5 billion.
(Reporting by Chavi Mehta in Bengaluru; Editing by Anil D'Silva)
((Chavi.Mehta@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Adds Apple's response Nov 4 (Reuters) - Apple Inc AAPL.O is preparing to expand its advertising network for live television as part of its deal to stream Major League Soccer (MLS) games next year, Bloomberg News reported on Friday, citing people with knowledge of the matter. The iPhone maker is in talks with advertising partners and MLS sponsors in advance of the launch next February about airing advertisements during soccer games and related shows, according to the report. Earlier this year, MLS and Apple TV announced a partnership that will see every game streamed on the app for the next decade.
|
Adds Apple's response Nov 4 (Reuters) - Apple Inc AAPL.O is preparing to expand its advertising network for live television as part of its deal to stream Major League Soccer (MLS) games next year, Bloomberg News reported on Friday, citing people with knowledge of the matter. The iPhone maker is in talks with advertising partners and MLS sponsors in advance of the launch next February about airing advertisements during soccer games and related shows, according to the report. Earlier this year, MLS and Apple TV announced a partnership that will see every game streamed on the app for the next decade.
|
Adds Apple's response Nov 4 (Reuters) - Apple Inc AAPL.O is preparing to expand its advertising network for live television as part of its deal to stream Major League Soccer (MLS) games next year, Bloomberg News reported on Friday, citing people with knowledge of the matter. The iPhone maker is in talks with advertising partners and MLS sponsors in advance of the launch next February about airing advertisements during soccer games and related shows, according to the report. (Reporting by Chavi Mehta in Bengaluru; Editing by Anil D'Silva) ((Chavi.Mehta@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Adds Apple's response Nov 4 (Reuters) - Apple Inc AAPL.O is preparing to expand its advertising network for live television as part of its deal to stream Major League Soccer (MLS) games next year, Bloomberg News reported on Friday, citing people with knowledge of the matter. The iPhone maker is in talks with advertising partners and MLS sponsors in advance of the launch next February about airing advertisements during soccer games and related shows, according to the report. Apple declined to comment.
|
18556.0
|
2022-11-04 00:00:00 UTC
|
3 Things We Learned from the Q3 Earnings Season
|
AAPL
|
https://www.nasdaq.com/articles/3-things-we-learned-from-the-q3-earnings-season
|
nan
|
nan
|
With September-quarter results from more than 85% of S&P 500 members already out, the bulk of the Q3 reporting cycle is now behind us.
The overall takeaway from the Q3 earnings season was one of relief and reassurance, with actual quarterly reports belying pre-season fears of an impending ‘earnings cliff’. As we have repeatedly pointed out, the picture that emerged from the Q3 earnings season wasn’t great, but it wasn’t bad either. To that end, here are the three things we learned from the Q3 earnings season.
First, growth is fading. Take a look at the chart below that shows the blended earnings and revenue growth for 2022 Q3 relative to what we saw in the preceding four quarters and what is expected in the coming three periods.
Image Source: Zacks Investment Research
This is no surprise, as the global economy is going through a synchronized slowdown, under the combined effects of rising interest rates in response to inflationary pressures, still-lingering logistical challenges that have started to ease up and China’s continuing zero-Covid restrictions.
The orange bars in the chart above represent revenue growth. So, for 2022 Q3, revenues are on track to grow +11.3% from the same period last year even though earnings are only expected to be up +1.6%. This seemingly elevated revenue growth is a direct function of pricing power, with companies able to pass on rising input costs to end consumers. We intuitively know that this can’t go on forever and current projections for the next three quarters bears out this intuition.
Second, margins are holding up better than most of us would have expected. Net margins in the aggregate have been below the year-earlier in each of the last three quarters, but the pressures aren’t distributed evenly across the different sectors.
If we look at the Q3 results have come out already, net margins are down 130 basis points for the 429 S&P 500 members in the aggregate, with 10 of the 16 Zacks sectors suffering margin contraction. On the flip side, four sectors enjoyed higher margins relative to the year-earlier period, led by the Energy sector.
Sectors suffering the biggest margin squeeze include Technology, Basic Materials and Finance. We discussed last week the earnings outlook for the Technology sector, particularly what we call the ‘Big 5 Tech Players’ – Apple AAPL, Amazon AMZN, Alphabet GOOGL, Microsoft MSFT and Meta META. For reference, please read – Making Sense of Big Tech Earnings After Amazon and Meta Tumble.
We pointed out in that note how each of these Tech leaders was in a mad rush over the last few year-plus to add employees, which has left them with bloated payroll expenses. The issue is particularly acute with Meta and Amazon, whose net margins this year are expected to be 1274 basis points and 586 basis points, respectively below the 2021 level, as you can see in the table below.
Image Source: Zacks Investment Research
The margin issue is hardly restricted to the ‘Big 5 Tech Players’, as the issue is very much present with the broader Tech sector, as the chart below shows.
Image Source: Zacks Investment Research
Third, the narrative that earnings estimates remain too high is misleading if not altogether wrong. Regular readers of our earnings commentary know that we have consistently flagged the persistent cuts to forward earnings estimates over the last few months.
The charts below show how earnings growth expectations for 2022 Q4 have evolved in recent weeks. The left-hand side chart shows S&P 500 earnings growth expectations in the aggregate, while the left-hand side chart shows the same data on an ex-Energy basis.
Image Source: Zacks Investment Research
We take earnings estimate revisions very seriously as they form the core of our stock rating system. The way we see it, earnings estimates for 2023 outside of the Energy sector peaked in April and have been steadily trending down since then.
The chart below shows the aggregate 2023 earnings estimate on an ex-Energy basis.
Image Source: Zacks Investment Research
Since mid-April, 2023 earnings estimates in the aggregate have come down by -7.4% for the S&P 500 index as a whole and -10.4% on an ex-Energy basis. The cuts to estimates have been particularly notable for the Tech (down -17.4% since mid-April), Construction (-21.5%), Retail (-18.2%), Industrial Products (-11.8%), Consumer Discretionary (-15.1%) and Aerospace (-11.5%).
If we look at Amazon and Meta, 2023 earnings estimates for Amazon have come down -19.8% for Amazon (from $21.7 per share to $1.74 per share) and -30.4% for Meta (from $11.15 per share to $7.76 per share) over the last 3 months.
The chart below shows the overall earnings picture on an annual basis.
Image Source: Zacks Investment Research
This goes to our earlier comment about the revisions narrative being misleading if not altogether wrong. Estimates have been coming down for a while now and are down more than -10% for 2023 on an ex-Energy basis since mid-April, as we stated earlier.
There are some in the market who think that 2023 earnings should be below the 2022 level instead of the current expected +3.5% growth simply because the U.S. economy is expected to go through a moderate recession.
I am not suggesting that 2023 earnings can’t be below the 2022 level; they can be and on current revisions trend are likely headed there. But it is wrong to expect moderate declines in ‘real’ GDP to automatically result in ‘nominal’ or non-inflation adjusted corporate earnings to also decline. Corporate revenues and earnings are ‘nominal’ values and will reflect the effects of inflation. Inflation is expected to come down in 2023, but nevertheless remain positive.
Q3 Earnings Season Scorecard
Including all of the results through Friday, November 4th, we now have Q3 results from 429 S&P 500 members that combined account for 85.8% of the index’s total membership.
The bulk of the Q3 earnings season for the large-cap companies in the S&P 500 index is now behind us. But there are still a ton of small and mid-cap companies that have yet to report quarterly results. This week will bring in results from more than 1,000 companies, including 30 S&P 500 members.
For the 429 index members that have reported results already, total earnings are up +2.2% from the same period last year on +12.4% higher revenues, with 70.9% beating EPS estimates and 67.8% beating revenue estimates.
Here is how the 2022 Q3 earnings and revenue growth rates for these 429 companies compares across different periods.
Image Source: Zacks Investment Research
Here is how the 2022 Q3 EPS and revenue beats percentages for these 429 companies compare across different periods.
Image Source: Zacks Investment Research
The EPS and revenue beats percentages were notably on the weak side earlier in the reporting cycle. But as you can see above, they are very much within the historical range by now.
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>>Breaking Down the Earnings Picture as Estimates Fade
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
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Meta Platforms, Inc. (META): Free Stock Analysis Report
To read this article on Zacks.com click here.
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.
|
We discussed last week the earnings outlook for the Technology sector, particularly what we call the ‘Big 5 Tech Players’ – Apple AAPL, Amazon AMZN, Alphabet GOOGL, Microsoft MSFT and Meta META. Apple Inc. (AAPL): Free Stock Analysis Report Image Source: Zacks Investment Research This is no surprise, as the global economy is going through a synchronized slowdown, under the combined effects of rising interest rates in response to inflationary pressures, still-lingering logistical challenges that have started to ease up and China’s continuing zero-Covid restrictions.
|
We discussed last week the earnings outlook for the Technology sector, particularly what we call the ‘Big 5 Tech Players’ – Apple AAPL, Amazon AMZN, Alphabet GOOGL, Microsoft MSFT and Meta META. Apple Inc. (AAPL): Free Stock Analysis Report The left-hand side chart shows S&P 500 earnings growth expectations in the aggregate, while the left-hand side chart shows the same data on an ex-Energy basis.
|
We discussed last week the earnings outlook for the Technology sector, particularly what we call the ‘Big 5 Tech Players’ – Apple AAPL, Amazon AMZN, Alphabet GOOGL, Microsoft MSFT and Meta META. Apple Inc. (AAPL): Free Stock Analysis Report Image Source: Zacks Investment Research Since mid-April, 2023 earnings estimates in the aggregate have come down by -7.4% for the S&P 500 index as a whole and -10.4% on an ex-Energy basis.
|
We discussed last week the earnings outlook for the Technology sector, particularly what we call the ‘Big 5 Tech Players’ – Apple AAPL, Amazon AMZN, Alphabet GOOGL, Microsoft MSFT and Meta META. Apple Inc. (AAPL): Free Stock Analysis Report The issue is particularly acute with Meta and Amazon, whose net margins this year are expected to be 1274 basis points and 586 basis points, respectively below the 2021 level, as you can see in the table below.
|
18557.0
|
2022-11-04 00:00:00 UTC
|
Technology Sector Update for 11/04/2022: OLED,AAPL,ACMR,TEAM
|
AAPL
|
https://www.nasdaq.com/articles/technology-sector-update-for-11-04-2022%3A-oledaaplacmrteam
|
nan
|
nan
|
Technology stocks were hanging on for a narrow gain, with the SPDR Technology Select Sector ETF (XLK) rising just 0.1%, weighed down by a more than 2% decline for Apple (AAPL) after Bloomberg reported the sector titan was suspending new hiring outside research and development, but the Philadelphia Semiconductor Index was posting a 2.9% advance this afternoon.
In company news, Universal Display (OLED) climbed 15% after the organic light emitting diode manufacturer late Thursday reported a Q3 profit of $1.12 per share, up from $0.97 per share during the same quarter in 2021 and beating the three-analyst consensus call by $0.06 per share. Total revenue also increased to $160.6 million compared with $143.6 million in revenue during the same quarter last year and also topped the $155.7 million analyst mean.
ACM Research (ACMR) was gaining 2.7%, backing down from an early 19% spike, after the chipmaking-equipment company easily dispatched market expectations with its Q3 results, earning $0.42 per share during the three months ended Sept. 30, excluding one-time items, more than doubling its $0.19 per share adjusted profit during the same quarter last year and topping the Capital IQ consensus expecting $0.23 per share. Revenue grew 99.5% year-over-year to $133.7 million, also outpacing the $113.3 million Street view.
Atlassian (TEAM) tumbled almost 34% after the software licensing company reported a decline in its fiscal Q1 earnings compared with year-ago levels, also trailing analyst estimates, and projected revenue for the current quarter lagging consensus views. For its Q2 ending in December, the company sees revenue in a range of $835 million to $855 million compared with the Capital IQ consensus looking for $879.6 million.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Technology stocks were hanging on for a narrow gain, with the SPDR Technology Select Sector ETF (XLK) rising just 0.1%, weighed down by a more than 2% decline for Apple (AAPL) after Bloomberg reported the sector titan was suspending new hiring outside research and development, but the Philadelphia Semiconductor Index was posting a 2.9% advance this afternoon. ACM Research (ACMR) was gaining 2.7%, backing down from an early 19% spike, after the chipmaking-equipment company easily dispatched market expectations with its Q3 results, earning $0.42 per share during the three months ended Sept. 30, excluding one-time items, more than doubling its $0.19 per share adjusted profit during the same quarter last year and topping the Capital IQ consensus expecting $0.23 per share. Atlassian (TEAM) tumbled almost 34% after the software licensing company reported a decline in its fiscal Q1 earnings compared with year-ago levels, also trailing analyst estimates, and projected revenue for the current quarter lagging consensus views.
|
Technology stocks were hanging on for a narrow gain, with the SPDR Technology Select Sector ETF (XLK) rising just 0.1%, weighed down by a more than 2% decline for Apple (AAPL) after Bloomberg reported the sector titan was suspending new hiring outside research and development, but the Philadelphia Semiconductor Index was posting a 2.9% advance this afternoon. Total revenue also increased to $160.6 million compared with $143.6 million in revenue during the same quarter last year and also topped the $155.7 million analyst mean. ACM Research (ACMR) was gaining 2.7%, backing down from an early 19% spike, after the chipmaking-equipment company easily dispatched market expectations with its Q3 results, earning $0.42 per share during the three months ended Sept. 30, excluding one-time items, more than doubling its $0.19 per share adjusted profit during the same quarter last year and topping the Capital IQ consensus expecting $0.23 per share.
|
Technology stocks were hanging on for a narrow gain, with the SPDR Technology Select Sector ETF (XLK) rising just 0.1%, weighed down by a more than 2% decline for Apple (AAPL) after Bloomberg reported the sector titan was suspending new hiring outside research and development, but the Philadelphia Semiconductor Index was posting a 2.9% advance this afternoon. Total revenue also increased to $160.6 million compared with $143.6 million in revenue during the same quarter last year and also topped the $155.7 million analyst mean. ACM Research (ACMR) was gaining 2.7%, backing down from an early 19% spike, after the chipmaking-equipment company easily dispatched market expectations with its Q3 results, earning $0.42 per share during the three months ended Sept. 30, excluding one-time items, more than doubling its $0.19 per share adjusted profit during the same quarter last year and topping the Capital IQ consensus expecting $0.23 per share.
|
Technology stocks were hanging on for a narrow gain, with the SPDR Technology Select Sector ETF (XLK) rising just 0.1%, weighed down by a more than 2% decline for Apple (AAPL) after Bloomberg reported the sector titan was suspending new hiring outside research and development, but the Philadelphia Semiconductor Index was posting a 2.9% advance this afternoon. Total revenue also increased to $160.6 million compared with $143.6 million in revenue during the same quarter last year and also topped the $155.7 million analyst mean. ACM Research (ACMR) was gaining 2.7%, backing down from an early 19% spike, after the chipmaking-equipment company easily dispatched market expectations with its Q3 results, earning $0.42 per share during the three months ended Sept. 30, excluding one-time items, more than doubling its $0.19 per share adjusted profit during the same quarter last year and topping the Capital IQ consensus expecting $0.23 per share.
|
18558.0
|
2022-11-04 00:00:00 UTC
|
Stock Market News for Nov 4, 2022
|
AAPL
|
https://www.nasdaq.com/articles/stock-market-news-for-nov-4-2022
|
nan
|
nan
|
U.S. stocks ended lower for the fourth-straight session on Thursday, a day after the Fed announced another 75-basis point interest rate hike and also signaled that it has no plans of slowing down on its aggressive rate-hike policy anytime soon. All three indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slid 0.5% or 146.51 points to close at 32,001.25 points, after declining as much as 420 points at its trading low.
The S&P 500 declined 0.5% or 39.80 points to finish at 3,719.89 points. Tech and communication services stocks were the biggest losers.
The Communication Services Select Sector SPDR (XLC) fell 2.5%, while the Technology Select Sector SPDR (XLK) lost 2.9%. The Energy Select Sector SPDR (XLE) gained 1.9%. Seven of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq slipped 1.7% or 181.86 points to end at 10,342.94 points.
The fear-gauge CBOE Volatility Index (VIX) was down 2.17% to 25.30. Decliners outnumbered advancers on the NYSE by a 1.75-to-1 ratio. On Nasdaq, a 1.50-to-1 ratio favored declining issues. A total of 11.81 billion shares were traded on Thursday, higher than the last 20-session average of 11.63 billion.
Fed’s Stance Weigh on Markets
Trading remained volatile on Wednesday after the Fed announced yet another highly anticipated 75-basis interest rate hike to take its benchmark interest rate target to the range of 3.75% to 4%. This saw the S&P 500 and Nasdaq touching their lowest levels since Oct 21 and Oct 14, respectively. The Dow also hit its lowest level since Oct 26 but managed to pair the losses.
The 75-basis point rate hike was expected but the investors were actually waiting for Fed Chair Jerome Powell’s comments as they were hopeful that the central bank might go slow on its pace of rate hikes in the coming months as economic data released last week hinted at inflation easing.
However, their hopes were dashed as Powell’s hinted that it is too premature to think about pausing its aggressive rate hikes. Instead, Powell hinted at continuing with its aggressive rate hike stance and that the Fed’s benchmark rate may require topping the level of core inflation to get complete control of surging inflation.
Powell’s comments now suggest that the Fed might push its benchmark interest rate target above 5% and then leave it there for some time for core inflation to come down to its target 2%. This means the Fed is likely to not only continue to hike rates frequently but also would go for steep hikes. Powell’s Wednesday comments continued to weigh on investors’ sentiments on Friday taking a toll on stocks.
Treasury Yields Spike
Treasury yields rose once again following the announcement of the new rate hike and Powell’s comments. The 10-year Treasury yield jumped 9 basis points to reach 4.15%, while the 2-year Treasury yield rose 13.1 basis points to 4.699% to its highest level since July 2007.
Tech stocks were the biggest casualties on Thursday. Shares of Apple, Inc. AAPL declined 4.2%, while Meta Platforms, Inc. META fell 1.8%. Apple has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Also, semiconductor stocks were a big drag on Nasdaq with shares of QUALCOMM Incorporated QCOM ending 7.7% lower despite the company beating on both earnings and revenues estimate. Qualcomm reported fourth-quarter fiscal 2022 earnings of $3.13 per share, beating the Zacks Consensus Estimate of $3.12 per share.
Economic Data
The Labor Department said on Thursday that jobless claims totaled 217,000 for the week ending Oct 29, declining 1,000 from the previous week’s revised level of 218,000. The four-week moving average decreased to 218,750, a decrease of 500 from the previous week’s revised average of 219,250.
Continuing claims came in at s 1,485,000, an increase of 47,000 from the previous week’s unrevised level of 1,438,000. The 4-week moving average was 1,417,500, an increase of 30,000 from the previous week's unrevised average of 1,387,500.
In other economic data released on Thursday, the ISM services sector Purchasing Managers' Index came up with a reading of 54.4% in October, slipping from September’s 56.7%.
In a separate report, the Census Bureau said that new orders for U.S.-made factory goods increased 0.3% or $1.5 billion to $551 billion in September. This follows a 0.2% increase in August.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
QUALCOMM Incorporated (QCOM): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Meta Platforms, Inc. (META): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Shares of Apple, Inc. AAPL declined 4.2%, while Meta Platforms, Inc. META fell 1.8%. Apple Inc. (AAPL): Free Stock Analysis Report U.S. stocks ended lower for the fourth-straight session on Thursday, a day after the Fed announced another 75-basis point interest rate hike and also signaled that it has no plans of slowing down on its aggressive rate-hike policy anytime soon.
|
Shares of Apple, Inc. AAPL declined 4.2%, while Meta Platforms, Inc. META fell 1.8%. Apple Inc. (AAPL): Free Stock Analysis Report Instead, Powell hinted at continuing with its aggressive rate hike stance and that the Fed’s benchmark rate may require topping the level of core inflation to get complete control of surging inflation.
|
Shares of Apple, Inc. AAPL declined 4.2%, while Meta Platforms, Inc. META fell 1.8%. Apple Inc. (AAPL): Free Stock Analysis Report U.S. stocks ended lower for the fourth-straight session on Thursday, a day after the Fed announced another 75-basis point interest rate hike and also signaled that it has no plans of slowing down on its aggressive rate-hike policy anytime soon.
|
Shares of Apple, Inc. AAPL declined 4.2%, while Meta Platforms, Inc. META fell 1.8%. Apple Inc. (AAPL): Free Stock Analysis Report U.S. stocks ended lower for the fourth-straight session on Thursday, a day after the Fed announced another 75-basis point interest rate hike and also signaled that it has no plans of slowing down on its aggressive rate-hike policy anytime soon.
|
18559.0
|
2022-11-04 00:00:00 UTC
|
Apple adds Pegatron as new iPhone 14 supplier in India - Bloomberg News
|
AAPL
|
https://www.nasdaq.com/articles/apple-adds-pegatron-as-new-iphone-14-supplier-in-india-bloomberg-news-0
|
nan
|
nan
|
Adds details from Bloomberg report, background
Nov 4 (Reuters) - Apple Inc's AAPL.O Taiwanese contract manufacturer Pegatron Corp 4938.TW has begun assembling the new iPhone 14 in India, Bloomberg News reported on Friday, citing people familiar with the matter.
The report comes as relentless controls and spot lockdowns across China, where majority of Apple's iPhones are manufactured, have hampered economic growth and taken a heavy psychological and financial toll on residents and companies.
Meanwhile, Foxxconn 2317.TW, formally Hon Hai Precision Industry Co Ltd, began production of iPhone 14 in India in September, making Pegatron the second producer of the model in India, Bloomberg report added.
All of Apple's biggest Taiwanese suppliers, Foxconn, Pegatron and Wistron Corp3231.TW, have ramped up iPhone assembly in India, boosted by Prime Minister Narendra Modi's financial incentives program, Bloomberg said.
India and other countries such as Mexico and Vietnam are increasingly turning important to contract manufacturers supplying to American brands amid COVID-related lockdowns in China and simmering tensions between Washington and Beijing.
China on Wednesday ordered an industrial park in the city of Zhengzhou that houses an iPhone factory belonging to Foxconn to enter a seven-day lockdown.
Earlier this week, market research firm TrendForce said it has cut its iPhone shipments forecast for the fourth quarter by 2-3 million units, from 80 million previously, due to the troubles at the Zhengzhou plant, adding that its investigation of the situation found that the factory's capacity utilization rates were now around 70%.
Pegatron declined to comment, whereas a spokesperson for Apple did not immediately respond to a Reuters query.
(Reporting by Lavanya Ahire in Bengaluru; Editing by Savio D'Souza and Dhanya Ann Thoppil)
((LavanyaSushil.Ahire@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.
|
Adds details from Bloomberg report, background Nov 4 (Reuters) - Apple Inc's AAPL.O Taiwanese contract manufacturer Pegatron Corp 4938.TW has begun assembling the new iPhone 14 in India, Bloomberg News reported on Friday, citing people familiar with the matter. The report comes as relentless controls and spot lockdowns across China, where majority of Apple's iPhones are manufactured, have hampered economic growth and taken a heavy psychological and financial toll on residents and companies. All of Apple's biggest Taiwanese suppliers, Foxconn, Pegatron and Wistron Corp3231.TW, have ramped up iPhone assembly in India, boosted by Prime Minister Narendra Modi's financial incentives program, Bloomberg said.
|
Adds details from Bloomberg report, background Nov 4 (Reuters) - Apple Inc's AAPL.O Taiwanese contract manufacturer Pegatron Corp 4938.TW has begun assembling the new iPhone 14 in India, Bloomberg News reported on Friday, citing people familiar with the matter. Meanwhile, Foxxconn 2317.TW, formally Hon Hai Precision Industry Co Ltd, began production of iPhone 14 in India in September, making Pegatron the second producer of the model in India, Bloomberg report added. All of Apple's biggest Taiwanese suppliers, Foxconn, Pegatron and Wistron Corp3231.TW, have ramped up iPhone assembly in India, boosted by Prime Minister Narendra Modi's financial incentives program, Bloomberg said.
|
Adds details from Bloomberg report, background Nov 4 (Reuters) - Apple Inc's AAPL.O Taiwanese contract manufacturer Pegatron Corp 4938.TW has begun assembling the new iPhone 14 in India, Bloomberg News reported on Friday, citing people familiar with the matter. Meanwhile, Foxxconn 2317.TW, formally Hon Hai Precision Industry Co Ltd, began production of iPhone 14 in India in September, making Pegatron the second producer of the model in India, Bloomberg report added. All of Apple's biggest Taiwanese suppliers, Foxconn, Pegatron and Wistron Corp3231.TW, have ramped up iPhone assembly in India, boosted by Prime Minister Narendra Modi's financial incentives program, Bloomberg said.
|
Adds details from Bloomberg report, background Nov 4 (Reuters) - Apple Inc's AAPL.O Taiwanese contract manufacturer Pegatron Corp 4938.TW has begun assembling the new iPhone 14 in India, Bloomberg News reported on Friday, citing people familiar with the matter. The report comes as relentless controls and spot lockdowns across China, where majority of Apple's iPhones are manufactured, have hampered economic growth and taken a heavy psychological and financial toll on residents and companies. Meanwhile, Foxxconn 2317.TW, formally Hon Hai Precision Industry Co Ltd, began production of iPhone 14 in India in September, making Pegatron the second producer of the model in India, Bloomberg report added.
|
18560.0
|
2022-11-04 00:00:00 UTC
|
4 Ways to Grow $100,000 Into $1 Million for Retirement Savings
|
AAPL
|
https://www.nasdaq.com/articles/4-ways-to-grow-%24100000-into-%241-million-for-retirement-savings-5
|
nan
|
nan
|
For many people, $1 million in savings is a huge goal for building retirement wealth. Saving $1 million from the income you earn is not easy to accomplish, but luckily there are easy ways to grow a smaller amount of money into $1 million through your working years.
The best strategy for most people is to put their money in the stock market. But what does that mean? If you have little experience buying stocks, this can seem like a daunting and/or confusing task.
Investing is not nearly as hard as it seems at first glance. Here are four tried and true methods for turning $100,000 into $1 million in retirement savings by investing in the stock market.
1. Buy high-quality businesses (or an index fund)
Before getting to the nitty-gritty on how to optimize your portfolio, you need to find things to actually invest in. The best way to do this is to keep it simple and buy the stocks of quality businesses with strong track records of success.
There are many ways to identify a high-quality business, but the key things to look for are industry leaders, dependable business models, and a long-term track record of growth. Diversify your $100,000 into 20 or more of these stocks, and it will be tough to lose money over the long haul.
If you don't want to dabble with individual stocks, your best course of action is to buy a U.S. or all-world index fund, which will track the performance of the entire stock market. That way, you have exposure to high-quality businesses that might turn into the next Amazon, Apple, or Tesla, but without the need to do nearly as much research.
2. Give yourself enough time for success
This section may be discouraging if you started investing very late in your career, but it should be encouraging if you are still in your 20s or 30s. Patience and a long-term time horizon make it much easier to build wealth in retirement.
For example, to turn $100,000 into $1 million over 30 years, all you need is a compound annual growth rate (CAGR) of 8%, which is right around the market average. If you want to do the same over 10 years, you need to generate a CAGR of 26%, which only a few legendary investors have ever been able to achieve. Frankly, you are likely not one of these people.
You shouldn't expect your wealth to move up in a straight line every year, either. Bear markets are a normal part of the investing process, as 2022 is painfully showing us. That's why you need to have a multi-decade time horizon when building wealth for retirement. Don't bet on turning $100,000 into $1 million within 10 years unless you take a lot of risks and get a few lucky breaks, which is not a repeatable process for success.
3. Minimize taxes
An easy way to maximize your wealth that few people focus on is by minimizing taxes. For most people, the best way to do this is investing through a Roth IRA. This allows you to invest tax-free as long as you don't take out your gains until you turn 60, which is right around retirement age for most people anyway.
Using a Roth IRA versus a regular investing account can help once you start selling your stocks and spending in retirement. For example, if our scenario from the above section was applied to a regular investing account, the investor would have $900,000 in taxable gains ($1 million minus the $100,000 starting amount), which at a 10% tax rate would mean $90,000 given back to Uncle Sam. If the money was put into a Roth IRA, there would be no taxes to pay if you start taking out money after the age of 60.
4. Add to your portfolio each year
If you have $100,000 saved up, you likely have enough income every month to consistently add to your investment portfolio. This can help you add even more gains to your retirement portfolio, giving you more flexibility in your elder years.
Let's go through an example. Under our original scenario (8% CAGR, 30-year timeframe, $100,000 starting amount), an investor would have slightly over $1 million at the end of year 30. But if that same person contributed $200 a month to their account over 30 years, their investment portfolio would be worth over $1.3 million by the end of the scenario. It's not a monumental difference, but it's a nice $300,000 bump compared to just setting $100,000 aside and adding nothing more.
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 September 30, 2022
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, and Tesla. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Buy high-quality businesses (or an index fund) Before getting to the nitty-gritty on how to optimize your portfolio, you need to find things to actually invest in. Don't bet on turning $100,000 into $1 million within 10 years unless you take a lot of risks and get a few lucky breaks, which is not a repeatable process for success. For example, if our scenario from the above section was applied to a regular investing account, the investor would have $900,000 in taxable gains ($1 million minus the $100,000 starting amount), which at a 10% tax rate would mean $90,000 given back to Uncle Sam.
|
Here are four tried and true methods for turning $100,000 into $1 million in retirement savings by investing in the stock market. The Motley Fool has positions in and recommends Amazon, Apple, and Tesla. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
|
Here are four tried and true methods for turning $100,000 into $1 million in retirement savings by investing in the stock market. If you don't want to dabble with individual stocks, your best course of action is to buy a U.S. or all-world index fund, which will track the performance of the entire stock market. 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.
|
* 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. The Motley Fool has positions in and recommends Amazon, Apple, and Tesla.
|
18561.0
|
2022-11-04 00:00:00 UTC
|
Should iShares S&P 500 Growth ETF (IVW) Be on Your Investing Radar?
|
AAPL
|
https://www.nasdaq.com/articles/should-ishares-sp-500-growth-etf-ivw-be-on-your-investing-radar-4
|
nan
|
nan
|
Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the iShares S&P 500 Growth ETF (IVW) is a passively managed exchange traded fund launched on 05/22/2000.
The fund is sponsored by Blackrock. It has amassed assets over $26.54 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 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. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.18%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.84%.
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 45.40% of the portfolio. Consumer Discretionary and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.71% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 52.14% of total assets under management.
Performance and Risk
IVW seeks to match the performance of the S&P 500 Growth Index before fees and expenses. The S&P 500 Growth Index measures the performance of the large capitalization growth sector of the U.S. equity market.
The ETF has lost about -32.26% so far this year and is down about -29.82% in the last one year (as of 11/04/2022). In the past 52-week period, it has traded between $56.73 and $84.81.
The ETF has a beta of 1.05 and standard deviation of 27.54% for the trailing three-year period, making it a medium risk choice in the space. With about 244 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares S&P 500 Growth ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IVW is a 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 $64.43 billion in assets, Invesco QQQ has $142.01 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
iShares S&P 500 Growth ETF (IVW): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.71% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report It has amassed assets over $26.54 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
|
Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.71% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the iShares S&P 500 Growth ETF (IVW) is a passively managed exchange traded fund launched on 05/22/2000.
|
Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.71% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the iShares S&P 500 Growth ETF (IVW) is a passively managed exchange traded fund launched on 05/22/2000.
|
Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.71% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). 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.
|
18562.0
|
2022-11-04 00:00:00 UTC
|
Should SPDR MSCI USA StrategicFactors ETF (QUS) Be on Your Investing Radar?
|
AAPL
|
https://www.nasdaq.com/articles/should-spdr-msci-usa-strategicfactors-etf-qus-be-on-your-investing-radar-4
|
nan
|
nan
|
Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the SPDR MSCI USA StrategicFactors ETF (QUS) is a passively managed exchange traded fund launched on 04/15/2015.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $827.71 million, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that 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.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
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 0.15%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.58%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 26% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 3.33% of total assets, followed by Microsoft Corporation (MSFT) and Unitedhealth Group Incorporated (UNH).
The top 10 holdings account for about 18.26% of total assets under management.
Performance and Risk
QUS seeks to match the performance of the MSCI USA Factor Mix A-Series Index before fees and expenses. The MSCI USA Factor Mix A-Series Index measures the equity market performance of large and mid-cap companies across the U.S. equity market. It aims to represent the performance of a combination of three factors: value, quality, and low volatility.
The ETF has lost about -17.96% so far this year and is down about -15.32% in the last one year (as of 11/04/2022). In the past 52-week period, it has traded between $101.25 and $131.16.
The ETF has a beta of 0.91 and standard deviation of 23.60% for the trailing three-year period, making it a medium risk choice in the space. With about 630 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR MSCI USA StrategicFactors ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, QUS is a 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 $283.12 billion in assets, SPDR S&P 500 ETF has $352.98 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 3.33% of total assets, followed by Microsoft Corporation (MSFT) and Unitedhealth Group Incorporated (UNH). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the SPDR MSCI USA StrategicFactors ETF (QUS) is a passively managed exchange traded fund launched on 04/15/2015.
|
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 3.33% of total assets, followed by Microsoft Corporation (MSFT) and Unitedhealth Group Incorporated (UNH). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the SPDR MSCI USA StrategicFactors ETF (QUS) is a passively managed exchange traded fund launched on 04/15/2015.
|
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 3.33% of total assets, followed by Microsoft Corporation (MSFT) and Unitedhealth Group Incorporated (UNH). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives SPDR MSCI USA StrategicFactors ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
|
Apple Inc. (AAPL): Free Stock Analysis Report Looking at individual holdings, Apple Inc. (AAPL) accounts for about 3.33% of total assets, followed by Microsoft Corporation (MSFT) and Unitedhealth Group Incorporated (UNH). 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.
|
18563.0
|
2022-11-04 00:00:00 UTC
|
GRAPHIC-U.S. equity funds lure inflows for third straight week
|
AAPL
|
https://www.nasdaq.com/articles/graphic-u.s.-equity-funds-lure-inflows-for-third-straight-week
|
nan
|
nan
|
By sector, health care, tech and consumer staples funds obtained inflows worth $630 million, $478 million and $393 million respectively.
However, the U.S. Federal Reserve hiked the interest rates by 75 basis points and said the peak for rates would likely be higher than previously expected.
Meanwhile, outflows from bond funds stood at just $14 million, a seven-week low.
Investors purchased U.S. high yield bond funds of $5.07 billion, which was their biggest weekly net buying since August 2020, but government bond funds witnessed $1.75 billion worth of withdrawals after luring inflows for nine straight weeks.
Money market funds drew $46.64 billion in inflow after posting two weeks of outflows in a row.
Fund flows: US equities, bonds and money market fundshttps://tmsnrt.rs/3hbIoTa
Fund flows: US equity sector fundshttps://tmsnrt.rs/3haaYnQ
Fund flows: US bond fundshttps://tmsnrt.rs/3T53Giy
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Chizu Nomiyama)
((gaurav.dogra@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Investors purchased U.S. high yield bond funds of $5.07 billion, which was their biggest weekly net buying since August 2020, but government bond funds witnessed $1.75 billion worth of withdrawals after luring inflows for nine straight weeks. Money market funds drew $46.64 billion in inflow after posting two weeks of outflows in a row. Fund flows: US equities, bonds and money market fundshttps://tmsnrt.rs/3hbIoTa Fund flows: US equity sector fundshttps://tmsnrt.rs/3haaYnQ Fund flows: US bond fundshttps://tmsnrt.rs/3T53Giy (Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Chizu Nomiyama) ((gaurav.dogra@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By sector, health care, tech and consumer staples funds obtained inflows worth $630 million, $478 million and $393 million respectively. Money market funds drew $46.64 billion in inflow after posting two weeks of outflows in a row. Fund flows: US equities, bonds and money market fundshttps://tmsnrt.rs/3hbIoTa Fund flows: US equity sector fundshttps://tmsnrt.rs/3haaYnQ Fund flows: US bond fundshttps://tmsnrt.rs/3T53Giy (Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Chizu Nomiyama) ((gaurav.dogra@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
However, the U.S. Federal Reserve hiked the interest rates by 75 basis points and said the peak for rates would likely be higher than previously expected. Investors purchased U.S. high yield bond funds of $5.07 billion, which was their biggest weekly net buying since August 2020, but government bond funds witnessed $1.75 billion worth of withdrawals after luring inflows for nine straight weeks. Fund flows: US equities, bonds and money market fundshttps://tmsnrt.rs/3hbIoTa Fund flows: US equity sector fundshttps://tmsnrt.rs/3haaYnQ Fund flows: US bond fundshttps://tmsnrt.rs/3T53Giy (Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Chizu Nomiyama) ((gaurav.dogra@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By sector, health care, tech and consumer staples funds obtained inflows worth $630 million, $478 million and $393 million respectively. However, the U.S. Federal Reserve hiked the interest rates by 75 basis points and said the peak for rates would likely be higher than previously expected. Meanwhile, outflows from bond funds stood at just $14 million, a seven-week low.
|
18564.0
|
2022-11-04 00:00:00 UTC
|
Apple adds Pegatron as new iPhone 14 supplier in India - Bloomberg News
|
AAPL
|
https://www.nasdaq.com/articles/apple-adds-pegatron-as-new-iphone-14-supplier-in-india-bloomberg-news
|
nan
|
nan
|
Nov 4 (Reuters) - Apple Inc's AAPL.O Taiwanese contract manufacturer Pegatron Corp 4938.TW has begun assembling the new iPhone 14 in India, Bloomberg News reported on Friday, citing people familiar with the matter.
The move comes as Zhengzhou, a key iPhone manufacturing hub in China, was placed under an abrupt Covid-19 lockdown by local authorities.
Apple and Pegatron did not immediately respond to Reuters' request for comment.
(Reporting by Lavanya Ahire in Bengaluru; Editing by Savio D'Souza)
((LavanyaSushil.Ahire@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.
|
Nov 4 (Reuters) - Apple Inc's AAPL.O Taiwanese contract manufacturer Pegatron Corp 4938.TW has begun assembling the new iPhone 14 in India, Bloomberg News reported on Friday, citing people familiar with the matter. The move comes as Zhengzhou, a key iPhone manufacturing hub in China, was placed under an abrupt Covid-19 lockdown by local authorities. Apple and Pegatron did not immediately respond to Reuters' request for comment.
|
Nov 4 (Reuters) - Apple Inc's AAPL.O Taiwanese contract manufacturer Pegatron Corp 4938.TW has begun assembling the new iPhone 14 in India, Bloomberg News reported on Friday, citing people familiar with the matter. The move comes as Zhengzhou, a key iPhone manufacturing hub in China, was placed under an abrupt Covid-19 lockdown by local authorities. (Reporting by Lavanya Ahire in Bengaluru; Editing by Savio D'Souza) ((LavanyaSushil.Ahire@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.
|
Nov 4 (Reuters) - Apple Inc's AAPL.O Taiwanese contract manufacturer Pegatron Corp 4938.TW has begun assembling the new iPhone 14 in India, Bloomberg News reported on Friday, citing people familiar with the matter. The move comes as Zhengzhou, a key iPhone manufacturing hub in China, was placed under an abrupt Covid-19 lockdown by local authorities. (Reporting by Lavanya Ahire in Bengaluru; Editing by Savio D'Souza) ((LavanyaSushil.Ahire@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.
|
Nov 4 (Reuters) - Apple Inc's AAPL.O Taiwanese contract manufacturer Pegatron Corp 4938.TW has begun assembling the new iPhone 14 in India, Bloomberg News reported on Friday, citing people familiar with the matter. The move comes as Zhengzhou, a key iPhone manufacturing hub in China, was placed under an abrupt Covid-19 lockdown by local authorities. Apple and Pegatron did not immediately respond to Reuters' request for comment.
|
18565.0
|
2022-11-04 00:00:00 UTC
|
Cathie Wood Has Abandoned Spotify -- Should You Follow Her Lead?
|
AAPL
|
https://www.nasdaq.com/articles/cathie-wood-has-abandoned-spotify-should-you-follow-her-lead
|
nan
|
nan
|
While the business of streaming content has been around for quite some time, it's no secret the COVID-19 pandemic contributed to the accelerated adoption of such services. While people sat at home and binged on video content, listened to audiobooks, or relaxed to music, streaming services became a natural component of their daily routines.
The Swedish company Spotify (NYSE: SPOT) specializes in music, audiobooks, and podcasts. While it faces competition from big-tech counterparts like Apple, Amazon, and Alphabet, Spotify remains the No. 1 streaming audio service.
The company has inked exclusive deals with several big-name podcasting hosts in an effort to gain market share in that space. However, even as the company has seen an uptick in its subscriber base (and, in turn, its revenue), its margins have also deteriorated over time. The company is struggling to achieve efficient operating leverage, and big-name investors like Cathie Wood have seen enough.
Let's dig into Spotify to see if it deserves a spot in your portfolio.
How is Spotify different?
If you look at music streaming services overall, there is very little differentiation among them besides price. For movies and television, companies like Netflix have deals with production companies and distributors to be the exclusive provider of popular content. But what really sets Netflix apart from the competition is its original content. Subscribers can debate how much they enjoy original content from Netflix over Disney, for example.
But listening to a song or album from your favorite singer sounds the same on Spotify, Apple Music, Amazon Prime Music, or YouTube. So in an effort to differentiate itself, Spotify decided to invest heavily in the podcasting market.
Podcasts have risen in popularity for several reasons. Some are episodic, like a TV show. However, unlike television, you have the luxury of listening to each episode on the go.
Some podcasts are less formal. Instead of scripted content, they are interviews. While this mimics radio, the same podcast benefits apply: The listener does not need to set aside a designated time to ensure they've listened to the entire interview.
Spotify has deployed a two-pronged approach to podcasting. First, the company has made a number of strategic acquisitions in podcasting networks in an effort to inspire its users to create their own content on the platform, much like YouTube has done. Second, it has signed exclusivity deals with high-profile podcasters. Both of these initiatives have come with a steep cost, which has weighed heavily on the streamer's financials.
Users are up, but margins are down
Two of Spotify's most notable deals were the takeovers of podcasting network Gimlet and recording platform Anchor at an estimated price of $340 million for the two companies.
Spotify also acquired The Ringer, a sports and movie media outlet, for roughly $200 million, and The Joe Rogan Experience, for which it also paid about $200 million. The primary thesis behind these deals was the company would attract users away from platforms like YouTube and other music-streaming services and convert them to paying subscribers on its own platform.
The table below illustrates Spotify's subscriber base after the deals mentioned above. Also included are the company's ad revenue and margin profile to show how the growth from these acquisitions came with downsides.
METRIC Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022
Monthly active users (MAUs) 381 million 406 million 422 million 433 million 456 million
Premium subscribers 172 million 180 million 182 million 188 million 195 million
Ad-supported MAUs 220 million 236 million 252 million 256 million 273 million
Premium revenue 2.18 billion euros 2.3 billion euros 2.38 billion euros 2.50 billion euros 2.65 billion euros
Ad-supported revenue 323 million euros 394 million euros 282 million euros 360 million euros 385 million euros
Gross margin 26.7% 26.5% 25.2% 24.6% 24.7%
Operating margin 3.0% (0.3%) (0.2%) (6.8%) (7.5%)
Data source: Spotify.
It's clear Spotify has been able to attract more users to its platform, and more importantly, some of these users have become premium (paying) subscribers. However, the company's gross margin and operating margin have declined significantly over the past year, indicating that the cost of these deals have taken their toll. In that light, it's no surprise that some on Wall Street have decided to move away from the company.
What does Wall Street think?
Cathie Wood is the head of asset management firm Ark Invest. Her firm once owned over four million shares of Spotify. But since April, she has gradually sold the bulk of her position.
While Wood has moved on from Spotify, not all on Wall Street have given up on the company. Several banks have cut their price targets for the stock but still give it a buy rating. For example, Citigroup currently has a price target of $140, which implies 87% upside from the current share price. And while Goldman Sachs has a neutral rating on Spotify, its price target of $114 is 50% higher than where Spotify trades as of this writing.
Companies typically enjoy increased profitability as their business scales, but in the case of Spotify, rising revenue and users haven't been able to offset declining margins. Management's fourth-quarter guidance indicates gross margin will shrink to 24.5%, while operating losses grow to over 9% of revenue. Even so, Wall Street seems to believe the stock is currently undervalued and carries some upside. If you're still bullish on the streaming service's potential to turn podcasts into a lasting competitive advantage, now could be an opportunity to lower your cost basis if you already own shares or to initiate a small position.
10 stocks we like better than Spotify Technology
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Spotify Technology wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 30, 2022
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Citigroup is an advertising partner of The Ascent, a Motley Fool company. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Adam Spatacco has positions in Alphabet (A shares), Amazon, and Apple. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Goldman Sachs, Netflix, Spotify Technology, 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.
|
While people sat at home and binged on video content, listened to audiobooks, or relaxed to music, streaming services became a natural component of their daily routines. Companies typically enjoy increased profitability as their business scales, but in the case of Spotify, rising revenue and users haven't been able to offset declining margins. If you're still bullish on the streaming service's potential to turn podcasts into a lasting competitive advantage, now could be an opportunity to lower your cost basis if you already own shares or to initiate a small position.
|
Monthly active users (MAUs) 381 million 406 million 422 million 433 million 456 million Premium subscribers 172 million 180 million 182 million 188 million 195 million Ad-supported MAUs 220 million 236 million 252 million 256 million 273 million Premium revenue 2.18 billion euros 2.3 billion euros 2.38 billion euros 2.50 billion euros 2.65 billion euros Ad-supported revenue 323 million euros 394 million euros 282 million euros 360 million euros 385 million euros Gross margin 26.7% 26.5% 25.2% 24.6% 24.7% Operating margin 3.0% (0.3%) (0.2%) (6.8%) (7.5%) Data source: Spotify. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Goldman Sachs, Netflix, Spotify Technology, 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.
|
Users are up, but margins are down Two of Spotify's most notable deals were the takeovers of podcasting network Gimlet and recording platform Anchor at an estimated price of $340 million for the two companies. Monthly active users (MAUs) 381 million 406 million 422 million 433 million 456 million Premium subscribers 172 million 180 million 182 million 188 million 195 million Ad-supported MAUs 220 million 236 million 252 million 256 million 273 million Premium revenue 2.18 billion euros 2.3 billion euros 2.38 billion euros 2.50 billion euros 2.65 billion euros Ad-supported revenue 323 million euros 394 million euros 282 million euros 360 million euros 385 million euros Gross margin 26.7% 26.5% 25.2% 24.6% 24.7% Operating margin 3.0% (0.3%) (0.2%) (6.8%) (7.5%) Data source: Spotify. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Goldman Sachs, Netflix, Spotify Technology, and Walt Disney.
|
How is Spotify different? Users are up, but margins are down Two of Spotify's most notable deals were the takeovers of podcasting network Gimlet and recording platform Anchor at an estimated price of $340 million for the two companies. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Goldman Sachs, Netflix, Spotify Technology, and Walt Disney.
|
18566.0
|
2022-11-03 00:00:00 UTC
|
US STOCKS-Wall Street eyes lower open on Fed's rate hike view
|
AAPL
|
https://www.nasdaq.com/articles/us-stocks-wall-street-eyes-lower-open-on-feds-rate-hike-view
|
nan
|
nan
|
By Shubham Batra and Amruta Khandekar
Nov 3 (Reuters) - U.S. stock indexes were set to open lower on Thursday as yields climbed against the backdrop of worries that the Federal Reserve's rate-hike cycle is far from over as the central bank hinted at smaller rate hikes.
Stocks initially received a boost after the Fed on Wednesday raised interest rates by 75 basis points as expected, and the policy announcement left open the possibility of smaller increments.
However, such optimism was quickly doused after Fed Chair Jerome Powell said it was "very premature" to discuss when the central bank might pause the rate hikes.
The benchmark S&P 500 .SPX ended 2.5% lower on Wednesday, marking its biggest percentage decline in almost a month.
While traders are still split between the odds of a 50 bps and 75 bps rate hike in December, the peak Fed funds rate is seen climbing to 5% or higher next year, compared with a prior estimate of 4.50%-4.75% rise. FEDWATCH.
"The implication that the terminal rate could be over 5% scared markets that rate hikes are going to be a bit more frequent and maybe a bit higher going forward," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.
Meanwhile, the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, providing further evidence of a strong labor market.
The more comprehensive nonfarm payrolls report due on Friday will be crucial as investors try to gauge whether the Fed's rate hikes have significantly cooled the economy.
Separately, a survey from the Institute for Supply Management due at 10 a.m. ET is expected to show non-manufacturing PMI dipped to 55.5 in October from 56.7 in September.
The tech-heavy Nasdaq .IXIC slumped 3.4% on Wednesday as rate-sensitive growth stocks came under pressure on the prospect of higher rates.
On Thursday, shares of megacap technology companies Apple Inc AAPL.O, Microsoft MSFT.O and Alphabet GOOGL.O slipped between 0.3% and 2% in premarket trading as the 10-year U.S. Treasury yield US10YT=RR hit its highest level since Oct. 25. US/
At 8:39 a.m. ET, Dow e-minis 1YMcv1 were down 225 points, or 0.7%, S&P 500 e-minis EScv1 were down 35.25 points, or 0.94%, and Nasdaq 100 e-minis NQcv1 were down 132 points, or 1.21%.
Among other stocks, Moderna MRNA.O tumbled 11.7% after cutting its annual sales forecast for its COVID-19 vaccine.
Qualcomm Inc QCOM.O and Roku Inc ROKU.O tumbled 8.4% and 21.2% respectively after their holiday quarter forecasts fell below expectations.
(Reporting by Sruthi Shankar, Shubham Batra and Amruta Khandekar in Bengaluru; Editing by Arun Koyyur and Shounak Dasgupta)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
On Thursday, shares of megacap technology companies Apple Inc AAPL.O, Microsoft MSFT.O and Alphabet GOOGL.O slipped between 0.3% and 2% in premarket trading as the 10-year U.S. Treasury yield US10YT=RR hit its highest level since Oct. 25. By Shubham Batra and Amruta Khandekar Nov 3 (Reuters) - U.S. stock indexes were set to open lower on Thursday as yields climbed against the backdrop of worries that the Federal Reserve's rate-hike cycle is far from over as the central bank hinted at smaller rate hikes. Stocks initially received a boost after the Fed on Wednesday raised interest rates by 75 basis points as expected, and the policy announcement left open the possibility of smaller increments.
|
On Thursday, shares of megacap technology companies Apple Inc AAPL.O, Microsoft MSFT.O and Alphabet GOOGL.O slipped between 0.3% and 2% in premarket trading as the 10-year U.S. Treasury yield US10YT=RR hit its highest level since Oct. 25. By Shubham Batra and Amruta Khandekar Nov 3 (Reuters) - U.S. stock indexes were set to open lower on Thursday as yields climbed against the backdrop of worries that the Federal Reserve's rate-hike cycle is far from over as the central bank hinted at smaller rate hikes. While traders are still split between the odds of a 50 bps and 75 bps rate hike in December, the peak Fed funds rate is seen climbing to 5% or higher next year, compared with a prior estimate of 4.50%-4.75% rise.
|
On Thursday, shares of megacap technology companies Apple Inc AAPL.O, Microsoft MSFT.O and Alphabet GOOGL.O slipped between 0.3% and 2% in premarket trading as the 10-year U.S. Treasury yield US10YT=RR hit its highest level since Oct. 25. By Shubham Batra and Amruta Khandekar Nov 3 (Reuters) - U.S. stock indexes were set to open lower on Thursday as yields climbed against the backdrop of worries that the Federal Reserve's rate-hike cycle is far from over as the central bank hinted at smaller rate hikes. Stocks initially received a boost after the Fed on Wednesday raised interest rates by 75 basis points as expected, and the policy announcement left open the possibility of smaller increments.
|
On Thursday, shares of megacap technology companies Apple Inc AAPL.O, Microsoft MSFT.O and Alphabet GOOGL.O slipped between 0.3% and 2% in premarket trading as the 10-year U.S. Treasury yield US10YT=RR hit its highest level since Oct. 25. By Shubham Batra and Amruta Khandekar Nov 3 (Reuters) - U.S. stock indexes were set to open lower on Thursday as yields climbed against the backdrop of worries that the Federal Reserve's rate-hike cycle is far from over as the central bank hinted at smaller rate hikes. Stocks initially received a boost after the Fed on Wednesday raised interest rates by 75 basis points as expected, and the policy announcement left open the possibility of smaller increments.
|
18567.0
|
2022-11-03 00:00:00 UTC
|
What Are Retail Investors Buying And Selling This Week Amidst Q3 Earnings Season?
|
AAPL
|
https://www.nasdaq.com/articles/what-are-retail-investors-buying-and-selling-this-week-amidst-q3-earnings-season
|
nan
|
nan
|
With the third quarter earnings season well underway, it is worth considering what stock and ETF investors are buying and selling as the market remains volatile.
The retail trade data can be found by clicking here. You can access this data by linking your broker account for free!
Most bought securities over the last seven days:
Lucid Group (LCID) was the 10th most bought security this week among retail investors. The EV manufacturer produced 2,282 vehicles during the quarter and remained on track to deliver 6,000 to 7,000 vehicles for the full year.
Market Vectors Gulf States ETF (MES) was the 9th most bought security this week.
Snowflake Inc (SNOW) ranked as the 8th most bought stock this week as investors bought ahead of its third quarter results later this month. The stock rose 13 ranks in popularity and is now the 159th most-held security among retail investors.
Daseke Inc (DSKE) was the 7th most bought security over the week. During the last quarter, the company announced a $40 million share buyback program and told investors they expect revenue growth of 12-15% over the year.
Meta Platforms (META) has been the 6th most bought security this week after falling significantly on a weak earnings report. The stock price continues to trend lower, but the company has risen five ranks in popularity and is now the 99th most-held security by retail investors.
Fontera Energy (FECCF) was the 5th most bought security the week after reporting third quarter results. Company profits continued to rise over 2022, helped by elevated oil and gas prices.
AMC Entertainment (APE) preference shares were the 4th most bought security this week by retail investors. The stock's wild ride over 2022 continued with significant interest from retail traders. AMC is the second most popular stock with retail investors.
Alphabet Inc (GOOGL) was the third most bought security over the week as the shares fell after reporting third quarter earnings. The stock has underperformed broader US markets, falling 40% over 2022.
Chipotle Mexican Grill (CMG) is the second most bought security by retail investors after reporting third quarter earnings last week that beat bottom-line expectations. CMG has performed in line with the S&P 500 this year.
Apple (AAPL) was the most bought security over the week after reporting a solid Q4 earnings result that beat analyst forecasts. The stock remains down 20% year to date, in line with the S&P 500. The stock rose one rank this week and is the 12th most held security.
Most sold securities over the last seven days:
NVIDIA Corporation (NVDA) was the 10th most sold security over the last week after rallying for most of the past month as the stock bounced off annual lows. NVIDIA has cooled from pandemic highs and has fallen 22 ranks in retail investor popularity. NVDA is the 63rd most held security by retail investors.
Kura Oncology (KURA) has been the 9th most sold security over the past seven days. KURA traded sideways this year with significant month-to-month swings on news flow. Last week the company announced preliminary trial data from a recent trial of Tipifarnib.
SoFi Technologies (SOFI) was the 8th most sold security after reporting third quarter earnings this week. The stock rose more than 20% early this week but quickly fell back to slip below its preannouncement price. SOFI has fallen 15 ranks this week and is retail investors' 45th most held stock.
Intel Corporation (INTC) was the 7th most sold security this week after reporting third quarter results last week. Intel rose sharply after beating top and bottom line consensus estimates. Gains have been erased this week with the rest of the market, and INTC has fallen six ranks in popularity to the 24th spot.
iShares 20+ Year Treasury Bond ETF (TLT) was the 6th most sold security this week as the ETF continues to trend downward in an inverse trend to rising interest rates.
Tesla (TLSA) was the 5th most sold stock during the week by investors but remained the third most popular security by retail investors.
S&P 500 ETF (SPY) was the 4th most sold security over the week as investors took profits from the rally experienced over the last few weeks.
As retail investors purchased the preference shares, AMC Entertainment (AMC) regular shares were the third most sold security over the week.
Polaris Industries (PII) trended higher last week as the company outperformed Q3 result expectations. This week traders have taken profits, with the stock being the second most sold security. The stock has outperformed broader equity markets over 2022 and pays a 2.55% dividend to investors.
The iShares Russell 2000 Index ETF (IWM) was the most sold security over the week as investors reduced risk to small-cap shares.
The top 10 most held securities by retail investors have been provided below:
Rank
Δ Rank
(1wk)
Security
Market
Cap (MM)
Avg Position
Size ($1000)
Market
Share (%)
1
ATER / Aterian, Inc.
78.32
16.14
3.06
2
AMC / AMC Entertainment Holdings Inc
3,001.49
9.98
1.58
3
TSLA / Tesla Motors, Inc.
678,474.69
18.49
1.36
4
GME / GameStop Corp.
8,071.25
12.48
1.20
5
VOO / Vanguard 500 Index Fund
53.03
0.92
6
1 ↑
BBIG / Vinco Ventures Inc
212.48
10.19
0.74
7
3 ↑
LWLG / Lightwave Logic, Inc.
840.65
245.84
0.71
8
1 ↑
VXRT / Vaxart Inc
195.45
243.78
0.71
9
5 ↑
APE / AMC Entertainment Holdings Preferred Equity Units
882.99
5.37
0.57
10
1 ↑
MULN / Mullen Automotive Inc
182.58
6.47
0.56
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.
|
Apple (AAPL) was the most bought security over the week after reporting a solid Q4 earnings result that beat analyst forecasts. With the third quarter earnings season well underway, it is worth considering what stock and ETF investors are buying and selling as the market remains volatile. The stock price continues to trend lower, but the company has risen five ranks in popularity and is now the 99th most-held security by retail investors.
|
Apple (AAPL) was the most bought security over the week after reporting a solid Q4 earnings result that beat analyst forecasts. AMC Entertainment (APE) preference shares were the 4th most bought security this week by retail investors. Chipotle Mexican Grill (CMG) is the second most bought security by retail investors after reporting third quarter earnings last week that beat bottom-line expectations.
|
Apple (AAPL) was the most bought security over the week after reporting a solid Q4 earnings result that beat analyst forecasts. Most bought securities over the last seven days: Lucid Group (LCID) was the 10th most bought security this week among retail investors. Chipotle Mexican Grill (CMG) is the second most bought security by retail investors after reporting third quarter earnings last week that beat bottom-line expectations.
|
Apple (AAPL) was the most bought security over the week after reporting a solid Q4 earnings result that beat analyst forecasts. The stock price continues to trend lower, but the company has risen five ranks in popularity and is now the 99th most-held security by retail investors. Alphabet Inc (GOOGL) was the third most bought security over the week as the shares fell after reporting third quarter earnings.
|
18568.0
|
2022-11-03 00:00:00 UTC
|
US STOCKS-Wall St down for fourth straight day on Fed rate hike worry
|
AAPL
|
https://www.nasdaq.com/articles/us-stocks-wall-st-down-for-fourth-straight-day-on-fed-rate-hike-worry
|
nan
|
nan
|
By Chuck Mikolajczak
NEW YORK, Nov 3 (Reuters) - U.S. stocks closed lower for a fourth consecutive session on Thursday as economic data did little to alter expectations the Federal Reserve would continue raising interest rates for longer than previously thought.
Following the Federal Reserve's statement on Wednesday, comments from Fed Chair Jerome Powell that it was "very premature" to be thinking about pausing its rate hikes sent stocks lower as U.S. bond yields and the U.S. dollar rose, a pattern that extended into Thursday.
Economic data on Thursday showed a labor market that continues to stay strong, although a separate report showed growth in the services sector slowed in October, keeping the Fed on its aggressive interest rate hike path.
"Years ago the Fed’s job was to take away the punch bowl and that balance is always a very difficult transition, you want the economy to slow to keep inflation from getting out of hand but you want enough earnings to support stock prices," said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey.
"It is about the rate of change as much as the change so when the rate of change starts to slow ... that almost becomes a positive even though in absolute terms we are going to continue to see higher rates, and higher rates means more competition for stocks and lower multiples."
The Dow Jones Industrial Average .DJI fell 146.51 points, or 0.46%, to 32,001.25, the S&P 500 .SPX lost 39.8 points, or 1.06%, to 3,719.89 and the Nasdaq Composite .IXIC dropped 181.86 points, or 1.73%, to 10,342.94.
While traders are roughly evenly split between the odds of a 50 basis-point and 75 basis-point rate hike in December, the peak Fed funds rate is seen climbing to at least 5%, compared with a prior view of a rise to the 4.50%-4.75% range.
Investors will closely eye the nonfarm payrolls report due on Friday for signs the Fed's rate hikes are beginning to have a notable impact on slowing the economy.
The climb in yields weighed on megacap growth companies such as Apple Inc AAPL.O, down 4.24%, and Alphabet Inc GOOGL.O, which lost 4.07% and pulled down the technology .SPLRCT and communication services .SPLRCL sectors as the worst-performing on the session.
Losses were curbed on the Dow thanks to gains in industrials including Boeing Co BA.N, which rose 6.34%, and a 2.20% climb in heavy equipment maker Caterpillar Inc CAT.N.
Qualcomm Inc QCOM.O and Roku Inc ROKU.O shed 7.66% and 4.57%, respectively, after their holiday quarter forecasts fell below expectations.
With roughly 80% of S&P 500 companies having reported earnings, the expected growth rate is 4.7%, according to Refinitiv data, up slightly from the 4.5% at the start of October.
Volume on U.S. exchanges was 11.81 billion shares, compared with the 11.63 billion average for the full session over the last 20 trading days.
Declining issues outnumbered advancing ones on the NYSE by a 1.75-to-1 ratio; on Nasdaq, a 1.50-to-1 ratio favored decliners.
The S&P 500 posted 6 new 52-week highs and 46 new lows; the Nasdaq Composite recorded 77 new highs and 291 new lows.
Jobless claims and Challenger Grayhttps://tmsnrt.rs/3h5MhsI
(Reporting by Chuck Mikolajczak in New York Editing by Matthew Lewis)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The climb in yields weighed on megacap growth companies such as Apple Inc AAPL.O, down 4.24%, and Alphabet Inc GOOGL.O, which lost 4.07% and pulled down the technology .SPLRCT and communication services .SPLRCL sectors as the worst-performing on the session. By Chuck Mikolajczak NEW YORK, Nov 3 (Reuters) - U.S. stocks closed lower for a fourth consecutive session on Thursday as economic data did little to alter expectations the Federal Reserve would continue raising interest rates for longer than previously thought. Following the Federal Reserve's statement on Wednesday, comments from Fed Chair Jerome Powell that it was "very premature" to be thinking about pausing its rate hikes sent stocks lower as U.S. bond yields and the U.S. dollar rose, a pattern that extended into Thursday.
|
The climb in yields weighed on megacap growth companies such as Apple Inc AAPL.O, down 4.24%, and Alphabet Inc GOOGL.O, which lost 4.07% and pulled down the technology .SPLRCT and communication services .SPLRCL sectors as the worst-performing on the session. Economic data on Thursday showed a labor market that continues to stay strong, although a separate report showed growth in the services sector slowed in October, keeping the Fed on its aggressive interest rate hike path. The Dow Jones Industrial Average .DJI fell 146.51 points, or 0.46%, to 32,001.25, the S&P 500 .SPX lost 39.8 points, or 1.06%, to 3,719.89 and the Nasdaq Composite .IXIC dropped 181.86 points, or 1.73%, to 10,342.94.
|
The climb in yields weighed on megacap growth companies such as Apple Inc AAPL.O, down 4.24%, and Alphabet Inc GOOGL.O, which lost 4.07% and pulled down the technology .SPLRCT and communication services .SPLRCL sectors as the worst-performing on the session. By Chuck Mikolajczak NEW YORK, Nov 3 (Reuters) - U.S. stocks closed lower for a fourth consecutive session on Thursday as economic data did little to alter expectations the Federal Reserve would continue raising interest rates for longer than previously thought. Economic data on Thursday showed a labor market that continues to stay strong, although a separate report showed growth in the services sector slowed in October, keeping the Fed on its aggressive interest rate hike path.
|
The climb in yields weighed on megacap growth companies such as Apple Inc AAPL.O, down 4.24%, and Alphabet Inc GOOGL.O, which lost 4.07% and pulled down the technology .SPLRCT and communication services .SPLRCL sectors as the worst-performing on the session. By Chuck Mikolajczak NEW YORK, Nov 3 (Reuters) - U.S. stocks closed lower for a fourth consecutive session on Thursday as economic data did little to alter expectations the Federal Reserve would continue raising interest rates for longer than previously thought. Economic data on Thursday showed a labor market that continues to stay strong, although a separate report showed growth in the services sector slowed in October, keeping the Fed on its aggressive interest rate hike path.
|
18569.0
|
2022-11-03 00:00:00 UTC
|
7 Stocks for Beginners to Buy Now
|
AAPL
|
https://www.nasdaq.com/articles/7-stocks-for-beginners-to-buy-now
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It’s never too early to begin investing. The earlier a person begins investing, the more time their money has to compound and the greater their returns are likely to be. Every reader has likely heard a similar sentiment.
It’s difficult to paint a picture of the average stock investor. Statistics say that 39% of 18-29-year-olds own stocks.
That is the lowest percentage of any age group. Nearly six in ten of Americans 65 and older own stocks. Their portfolios have an average value of $109,000 while the average portfolio of those under 35 is worth $7,360.
Beginner investors should buy time-tested stocks. That means they should skew toward blue-chip firms and let the power of compounding do its magic. Although they have more time until they retire and thus a greater ability to absorb risk, slow and steady will win the race for them.
AAPL Apple $139
GOOG,GOOGL Alphabet $83.50
V Visa $195
QQQ Invesco QQQ Trust Series $261
COST Costco $487
JNJ Johnson & Johnson $171
MELI MercadoLibre $871
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple (NASDAQ:AAPL) has done it again, to no one’s surprise. Its stock has risen on news of yet another quarterly record revenue .
While competitors’ sales languish as consumer spending slows and recession fears ramp up, Apple continues to post impressive results. The world’s most valuable firm by market capitalization generated a record $90.1 billion of revenue last quarter. Apple’s iPhones accounted for $42.6 billion of that $90.1 billion of revenues, as iPhone revenue jumped nearly 10% year-over-year.
So Apple continues to be the strongest of the tech giants as others falter. AAPL stock is an excellent choice for beginner investors because of its tremendous stability in an otherwise volatile tech sector. Further, it provides a dividend of 23 cents that management continues to grow. AAPL stock currently has a dividend yield of 0.54%. That is relatively low. However, the company has increased its dividend by an annual average of 9.5% over the past five years.
Alphabet (GOOG,GOOGL)
Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) stock is among the faltering tech giants mentioned in the paragraph above. So it’s somewhat curious that I’m recommending it at this point.
And unlike Apple, Alphabet did not report strong Q3 results at all. Google’s bread and butter is advertising revenues from its search engine, YouTube ad revenue, and its cloud business.
Alphabet reported its earnings last week on Oct. 25. And its ad revenues were very problematic, rising only 2.5% YOY. Analysts, on average, expected the company to report $56.9 billion of ad revenue, so the $54.48 billion of ad sales that it actually reported was disappointing. YouTube’s ad revenues reached $7.07 billion, well below the $7.5 billion that analysts had anticipated.
None of this seems to suggest that GOOG stock is a buy. However, there is a silver lining. Google’s search ads are expected to fare better during the continued economic downturn than direct response and display ads. So the shares may not perform well in the short term, but they should outperform the stocks of other ad giants.
A beginner investor who buys GOOG now will get an inexpensive stock which is extremely likely to rebound over time and provide strong returns.
Visa (V)
Source: Kikinunchi / Shutterstock.com
Visa (NYSE:V) stock has short-term and long-term positive catalysts that make it a smart investment for beginner investors.
In the short term, it’s clear that credit card spending remains strong. Total credit card balances hit $916 billion in September. That’s a level not seen since before the pandemic. The data point indicates that Americans are spending and borrowing despite increasing fears of recession.
Whatever the case, Visa is among the credit card companies that stand to benefit as credit card balances are currently 23% higher than their pandemic low. while its defaults remain below pre-pandemic levels.
Beginner investors should also understand that Visa is an excellent long-term choice. Its annual return over the past decade has averaged 19%.
Visa stock also a dividend which yields a modest 0.69%. However, its dividend has grown at an average annual rate of 17.4% over the past five years.
Invesco QQQ Trust Series (QQQ)
Source: kenary820 / Shutterstock
Beginner investors should buy Invesco QQQ Trust Series (NASDAQ:QQQ) stock. In fact, they would be wise to consider any number of ETFs that are tailored to their individual interests and own stocks in sectors in which they believe strongly. Generally speaking, ETFs provide trading flexibility, diversification, lower costs, and tax benefits, compared to mutual funds.
Beginner investors should consider QQQ stock because it provides the benefits listed above. Further, because QQQ tracks the performance of the Nasdaq-100 Index. the ETF also provides exposure to the tech-heavy Nasdaq.
As a result, investors will get exposure to the best tech stocks, including Apple, Google, Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), and Tesla (NASDAQ:TSLA). A beginner investor who owns QQQ will learn, among other things, about interest rates and their effects on the tech sector. The price of QQQ is low now but will rise in time when the Fed ultimately slows its quantitative tightening process.
So the long-term outlook of QQQ is bright.
Costco (COST)
Source: ilzesgimene / Shutterstock.com
It’s reasonable to argue that buying Costco (NASDAQ:COST) stock now isn’t a great idea. The bulk wholesaler has received a lot of attention as worries about inflation have risen in 2022.
Consumers are looking for ways to ease the burden of inflation. And bulk buying is an obvious means of doing so. So it’s no surprise that investors have flocked to COST stock, causing it to rise.
That has left many pundits arguing that Costco stock is overpriced. They have a reasonable argument because Costco’s P/E ratio of 38.7 is higher than that of 84% of defensive-retail stocks.
But there are many equally reasonable arguments against the idea that Costco is overpriced. For example, its return on assets, return on equity, and return on invested capital are all better than 90% of those of other companies in the defensive-retail sector.
That suggests Costco is fairly priced. It’s a great stock and is likely to continue rising as the economy worsens on rising 2023 recession fears.
Johnson & Johnson (JNJ)
Source: Alexander Tolstykh / Shutterstock.com
Beginner investors should consider a strong healthcare stock like Johnson & Johnson (NYSE:JNJ). Healthcare stocks tend to do well during recessions, making JNJ a good choice now.
Further, Johnson & Johnson is currently particularly well-positioned. The company is flush with cash after raking in loads of money from the sales of its Covid-19 vaccine and other products. It has approximately $34 billion of cash on hand. That gives JNJ the ability to buy other pharma companies whose valuations have dropped sharply
But Johnson & Johnson is not jumping to make acquisitions. It remains focused on the spin off of its consumer business, Kenvue, which is slated to occur next year.
JNJ can afford to wait before making acquisitions because a recession appears more and more likely to occur next year.
JNJ stock has every chance to rise, management will keep the company stable at worst, and investors will get dividends in the meantime. So there’s a lot to like about JNJ.
MercadoLibre (MELI)
Source: rafapress / Shutterstock.com
MercadoLibre (NASDAQ:MELI) has been described as the Amazon of Latin America. MELI is an eCommerce platform based in Uruguay with operations that span Mexico, Central America, and all of South America.
Amazon was founded in 1994 and MercadoLibre was launched in 1999. So the two aren’t very different in age. However, MercadoLibre might be able to grow more rapidly going forward. And its shares have provided massive annual average returns of 26.14% over the past ten years. Amazon, on the other hand, has provided slightly lower average annual returns of 25.84%.
MELI stock is deeply undervalued, according to most Wall Street analysts. More than 20 analysts currently cover MercadoLibre. The vast majority of them rate the shares a “buy.” Their average price target on the shares is $870.
The company is growing at breakneck speed, as its annual average EBITDA growth over the last three years is 154%, and its revenue that has grown by an average of 64% annually in the same period.
On the date of publication, Alex Sirois 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.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks.Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
The post 7 Stocks for Beginners to Buy Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
AAPL Apple $139 GOOG,GOOGL Alphabet $83.50 V Visa $195 QQQ Invesco QQQ Trust Series $261 COST Costco $487 JNJ Johnson & Johnson $171 MELI MercadoLibre $871 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) has done it again, to no one’s surprise. AAPL stock is an excellent choice for beginner investors because of its tremendous stability in an otherwise volatile tech sector. AAPL stock currently has a dividend yield of 0.54%.
|
AAPL Apple $139 GOOG,GOOGL Alphabet $83.50 V Visa $195 QQQ Invesco QQQ Trust Series $261 COST Costco $487 JNJ Johnson & Johnson $171 MELI MercadoLibre $871 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) has done it again, to no one’s surprise. AAPL stock is an excellent choice for beginner investors because of its tremendous stability in an otherwise volatile tech sector. AAPL stock currently has a dividend yield of 0.54%.
|
AAPL Apple $139 GOOG,GOOGL Alphabet $83.50 V Visa $195 QQQ Invesco QQQ Trust Series $261 COST Costco $487 JNJ Johnson & Johnson $171 MELI MercadoLibre $871 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) has done it again, to no one’s surprise. AAPL stock is an excellent choice for beginner investors because of its tremendous stability in an otherwise volatile tech sector. AAPL stock currently has a dividend yield of 0.54%.
|
AAPL Apple $139 GOOG,GOOGL Alphabet $83.50 V Visa $195 QQQ Invesco QQQ Trust Series $261 COST Costco $487 JNJ Johnson & Johnson $171 MELI MercadoLibre $871 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) has done it again, to no one’s surprise. AAPL stock is an excellent choice for beginner investors because of its tremendous stability in an otherwise volatile tech sector. AAPL stock currently has a dividend yield of 0.54%.
|
18570.0
|
2022-11-03 00:00:00 UTC
|
US STOCKS-U.S. stocks close lower on Fed rate hike worry
|
AAPL
|
https://www.nasdaq.com/articles/us-stocks-u.s.-stocks-close-lower-on-fed-rate-hike-worry
|
nan
|
nan
|
By Chuck Mikolajczak
NEW YORK, Nov 3 (Reuters) - U.S. stocks closed lower for a fourth consecutive session on Thursday as economic data did little to alter expectations the Federal Reserve would continue raising interest rates for longer than previously thought.
Following the Federal Reserve's statement on Wednesday, comments from Fed Chair Jerome Powell that it was "very premature" to be thinking about pausing its rate hikes sent stocks lower as U.S. bond yields and the U.S. dollar rose, a pattern that extended into Thursday.
Economic data on Thursday showed a labor market that continues to stay strong, although a separate report showed growth in the services sector slowed in October, keeping the Fed on its aggressive interest rate hike path.
"Years ago the Fed’s job was to take away the punch bowl and that balance is always a very difficult transition, you want the economy to slow to keep inflation from getting out of hand but you want enough earnings to support stock prices," said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey.
"It is about the rate of change as much as the change so when the rate of change starts to slow ... that almost becomes a positive even though in absolute terms we are going to continue to see higher rates and higher rates means more competition for stocks and lower multiples."
According to preliminary data, the S&P 500 .SPX lost 40.23 points, or 1.04%, to end at 3,720.44 points, while the Nasdaq Composite .IXIC lost 181.15 points, or 1.73%, to 10,342.97. The Dow Jones Industrial Average .DJI fell 148.42 points, or 0.47%, to 31,995.61.
While traders are roughly evenly split between the odds of a 50 basis-point and 75 basis-point rate hike in December, the peak Fed funds rate is seen climbing to at least 5%, compared with a prior view of 4.50%-4.75% rise.
Investors will closely eye the nonfarm payrolls report due on Friday for signs the Fed's rate hikes are beginning to have a notable impact on slowing the economy.
The climb in yields weighed on megacap growth companies such as Apple Inc AAPL.O and Alphabet Inc GOOGL.O, which pulled down the technology .SPLRCT and communication services .SPLRCL sectors as the worst-performing on the session.
Losses were curbed on the Dow thanks to gains in industrials including Boeing Co BA.N and heavy equipment maker Caterpillar Inc CAT.N.
Qualcomm Inc QCOM.O and Roku Inc ROKU.O lost ground after their holiday quarter forecasts fell below expectations.
With roughly 80% of S&P 500 having reported earnings, the expected growth rate is 4.7%, according to Refinitiv data, up slightly from the 4.5% at the start of October.
Jobless claims and Challenger Grayhttps://tmsnrt.rs/3h5MhsI
(Reporting by Chuck Mikolajczak in New York Editing by Matthew Lewis)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The climb in yields weighed on megacap growth companies such as Apple Inc AAPL.O and Alphabet Inc GOOGL.O, which pulled down the technology .SPLRCT and communication services .SPLRCL sectors as the worst-performing on the session. By Chuck Mikolajczak NEW YORK, Nov 3 (Reuters) - U.S. stocks closed lower for a fourth consecutive session on Thursday as economic data did little to alter expectations the Federal Reserve would continue raising interest rates for longer than previously thought. Following the Federal Reserve's statement on Wednesday, comments from Fed Chair Jerome Powell that it was "very premature" to be thinking about pausing its rate hikes sent stocks lower as U.S. bond yields and the U.S. dollar rose, a pattern that extended into Thursday.
|
The climb in yields weighed on megacap growth companies such as Apple Inc AAPL.O and Alphabet Inc GOOGL.O, which pulled down the technology .SPLRCT and communication services .SPLRCL sectors as the worst-performing on the session. By Chuck Mikolajczak NEW YORK, Nov 3 (Reuters) - U.S. stocks closed lower for a fourth consecutive session on Thursday as economic data did little to alter expectations the Federal Reserve would continue raising interest rates for longer than previously thought. Economic data on Thursday showed a labor market that continues to stay strong, although a separate report showed growth in the services sector slowed in October, keeping the Fed on its aggressive interest rate hike path.
|
The climb in yields weighed on megacap growth companies such as Apple Inc AAPL.O and Alphabet Inc GOOGL.O, which pulled down the technology .SPLRCT and communication services .SPLRCL sectors as the worst-performing on the session. By Chuck Mikolajczak NEW YORK, Nov 3 (Reuters) - U.S. stocks closed lower for a fourth consecutive session on Thursday as economic data did little to alter expectations the Federal Reserve would continue raising interest rates for longer than previously thought. Economic data on Thursday showed a labor market that continues to stay strong, although a separate report showed growth in the services sector slowed in October, keeping the Fed on its aggressive interest rate hike path.
|
The climb in yields weighed on megacap growth companies such as Apple Inc AAPL.O and Alphabet Inc GOOGL.O, which pulled down the technology .SPLRCT and communication services .SPLRCL sectors as the worst-performing on the session. By Chuck Mikolajczak NEW YORK, Nov 3 (Reuters) - U.S. stocks closed lower for a fourth consecutive session on Thursday as economic data did little to alter expectations the Federal Reserve would continue raising interest rates for longer than previously thought. Economic data on Thursday showed a labor market that continues to stay strong, although a separate report showed growth in the services sector slowed in October, keeping the Fed on its aggressive interest rate hike path.
|
18571.0
|
2022-11-03 00:00:00 UTC
|
US STOCKS-Wall St falls on concerns over Fed interest rate path
|
AAPL
|
https://www.nasdaq.com/articles/us-stocks-wall-st-falls-on-concerns-over-fed-interest-rate-path
|
nan
|
nan
|
By Chuck Mikolajczak
NEW YORK, Nov 3 (Reuters) - U.S. stocks were lower for a fourth straight session on Thursday as economic data did little to change investors' perceptions that the Federal Reserve would continue raising interest rates for longer than previously thought.
Equities had initially moved higher upon the release of the Fed's policy statement on Wednesday, which seemed to confirm hopes the Fed would begin to decelerate the size and speed of its path of interest rate hikes.
But comments from Fed Chair Jerome Powell following the statement that it was "very premature" to be thinking about pausing its rate hikes sent stocks lower as bond yields and the U.S. dollar rose, a pattern the extended into Thursday.
Economic data on Thursday showed a labor market that continues to stay strong, although a separate report showed growth in the services sector slowed in October.
"One key takeaway from yesterday was what matters is the ultimate level of rates and how long we stay there, those are to be determined, we are going to figure those out along the way," said Brad Conger, deputy chief investment officer at Hirtle Callaghan & Co in West Conshohocken, Pennsylvania.
"The bad news for stocks is obviously we are going to have to contend with more rate hikes than we thought."
The Dow Jones Industrial Average .DJI fell 24.21 points, or 0.08%, to 32,123.55, the S&P 500 .SPX lost 20.53 points, or 0.55%, to 3,739.16 and the Nasdaq Composite .IXIC dropped 119.76 points, or 1.14%, to 10,405.04.
While traders are roughly evenly split between the odds of a 50 basis-point and 75 basis-point rate hike in December, the peak Fed funds rate is seen climbing to at least 5%, compared with a prior view of 4.50%-4.75% rise. FEDWATCH
Investors will closely eye the nonfarm payrolls report due on Friday for signs the Fed's rate hikes are beginning to have a notable impact on slowing the economy.
The climb in yields weighed on megacap growth companies such Apple Inc AAPL.O, down 3.59% and Alphabet Inc GOOGL.O which was down 3.20%. This in turn pulled down the technology .SPLRCT and communication services .SPLRCL sectors as the worst-performing on the session.
The Dow was able to hold near the unchanged mark thanks to gains in industrials including Boeing Co BA.N, up 6.68% and heavy equipment maker Caterpillar Inc CAT.N, which gained 2.85%.
Qualcomm Inc QCOM.O and Roku Inc ROKU.O lost 6.48% and 1.96%, respectively, after their holiday quarter forecasts fell below expectations.
With roughly 80% of S&P 500 having reported earnings, the expected growth rate is 4.7%, according to Refinitiv data, up slightly from the 4.5% at the start of October.
Declining issues outnumbered advancing ones on the NYSE by a 1.44-to-1 ratio; on Nasdaq, a 1.36-to-1 ratio favored decliners.
The S&P 500 posted 6 new 52-week highs and 44 new lows; the Nasdaq Composite recorded 57 new highs and 261 new lows.
Jobless claims and Challenger Grayhttps://tmsnrt.rs/3h5MhsI
(Reporting by Chuck Mikolajczak in New York Editing by Matthew Lewis)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The climb in yields weighed on megacap growth companies such Apple Inc AAPL.O, down 3.59% and Alphabet Inc GOOGL.O which was down 3.20%. By Chuck Mikolajczak NEW YORK, Nov 3 (Reuters) - U.S. stocks were lower for a fourth straight session on Thursday as economic data did little to change investors' perceptions that the Federal Reserve would continue raising interest rates for longer than previously thought. But comments from Fed Chair Jerome Powell following the statement that it was "very premature" to be thinking about pausing its rate hikes sent stocks lower as bond yields and the U.S. dollar rose, a pattern the extended into Thursday.
|
The climb in yields weighed on megacap growth companies such Apple Inc AAPL.O, down 3.59% and Alphabet Inc GOOGL.O which was down 3.20%. Economic data on Thursday showed a labor market that continues to stay strong, although a separate report showed growth in the services sector slowed in October. While traders are roughly evenly split between the odds of a 50 basis-point and 75 basis-point rate hike in December, the peak Fed funds rate is seen climbing to at least 5%, compared with a prior view of 4.50%-4.75% rise.
|
The climb in yields weighed on megacap growth companies such Apple Inc AAPL.O, down 3.59% and Alphabet Inc GOOGL.O which was down 3.20%. By Chuck Mikolajczak NEW YORK, Nov 3 (Reuters) - U.S. stocks were lower for a fourth straight session on Thursday as economic data did little to change investors' perceptions that the Federal Reserve would continue raising interest rates for longer than previously thought. The Dow Jones Industrial Average .DJI fell 24.21 points, or 0.08%, to 32,123.55, the S&P 500 .SPX lost 20.53 points, or 0.55%, to 3,739.16 and the Nasdaq Composite .IXIC dropped 119.76 points, or 1.14%, to 10,405.04.
|
The climb in yields weighed on megacap growth companies such Apple Inc AAPL.O, down 3.59% and Alphabet Inc GOOGL.O which was down 3.20%. By Chuck Mikolajczak NEW YORK, Nov 3 (Reuters) - U.S. stocks were lower for a fourth straight session on Thursday as economic data did little to change investors' perceptions that the Federal Reserve would continue raising interest rates for longer than previously thought. Equities had initially moved higher upon the release of the Fed's policy statement on Wednesday, which seemed to confirm hopes the Fed would begin to decelerate the size and speed of its path of interest rate hikes.
|
18572.0
|
2022-11-03 00:00:00 UTC
|
Traders scramble for protection after Fed spooks markets
|
AAPL
|
https://www.nasdaq.com/articles/traders-scramble-for-protection-after-fed-spooks-markets
|
nan
|
nan
|
By Saqib Iqbal Ahmed
NEW YORK, Nov 3 (Reuters) - Investors rushed to guard against further declines in U.S. stocks on Thursday, a day after the Federal Reserve dashed hopes for a downshift in the central bank’s inflation-fighting rate hikes.
Trading in S&P 500 put options, typically used as a play in defensive positions, outnumbered calls, usually employed for upside wagers, 1.5-to-1 on Thursday afternoon, the most defensive the measure has been since mid-October, according to Trade Alert data.
The rush for protection comes after Fed Chair Jerome Powell signaled that while interest rates may rise by smaller increments in the months ahead, the central bank will likely take its policy rate higher than previously expected to fight surging consumer prices.
The hawkish message was a disappointment to investors following a rally that saw the S&P 500 .SPX gain around 8% since mid-October through Tuesday on hopes that the Fed was close to a shift in the aggressive monetary policy that has bruised stocks this year. The index is down about 3% since Tuesday's close and is down around 22% so far in 2022.
"This caught a lot of people by surprise," said Steve Sosnick, chief strategist at Interactive Brokers. "I am definitely seeing a bit more risk aversion to the downside."
The more defensive tone of trading is in contrast with some bullish activity in the options market prior to the Fed meeting as investors worried about missing out on a rally.
SPY puts expiring at the end of next week, struck at the $350 mark, just above the ETF's mid-October intra-day low of $348.11, were the fourth most actively traded SPY options on Thursday.
At the single stock level, near-term put options on battered megacaps such as Tesla TSLA.O, Amazon.com Inc AMZN.O and Apple Inc AAPL.O were among Thursday's most heavily traded contracts.
While investors appear anxious about more near-term volatility, expectations for a big market crash remain muted. For instance, Nations TailDex.TDEX, which measures the cost of hedging against a 3-standard deviation move in the SPY ETF, was on pace to close the session at a multi-year low, down sharply over the last six months.
Still, history suggests investors may have good reason to be wary.
"Recent 'Fed meeting volatility' has not necessarily been confined to the Fed day itself," Christopher Jacobson, a strategist at Susquehanna Financial Group, said in a note.
"Over the six prior Fed meetings year-to-date, the SPY has seen an average move of +/- 2.8% from the close on Wednesday (Fed day) to Friday's close," he said.
Though the Fed meeting is now in the rear view mirror, other events with the potential to roil markets lay ahead, including October's employment report, scheduled for release on Friday. According to a Reuters survey of economists, nonfarm payrolls likely increased by 200,000 in October.
Next week also brings the U.S. mid-term elections on Tuesday, with S&P 500 Index options implying a +/-2.9% move the day after the election, nearly double the index's daily average move this year, according to Goldman Sachs.
For now, "the potential for divergent returns driven by the election is clearly underappreciated by the options market," the bank’s analysts wrote.
(Reporting by Saqib Iqbal Ahmed; Editing by Ira Iosebashvili and Leslie Adler)
((saqib.ahmed@thomsonreuters.com; @SaqibReports; +1 332 219 1971; Reuters Messaging: saqib.ahmed.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.
|
At the single stock level, near-term put options on battered megacaps such as Tesla TSLA.O, Amazon.com Inc AMZN.O and Apple Inc AAPL.O were among Thursday's most heavily traded contracts. By Saqib Iqbal Ahmed NEW YORK, Nov 3 (Reuters) - Investors rushed to guard against further declines in U.S. stocks on Thursday, a day after the Federal Reserve dashed hopes for a downshift in the central bank’s inflation-fighting rate hikes. The hawkish message was a disappointment to investors following a rally that saw the S&P 500 .SPX gain around 8% since mid-October through Tuesday on hopes that the Fed was close to a shift in the aggressive monetary policy that has bruised stocks this year.
|
At the single stock level, near-term put options on battered megacaps such as Tesla TSLA.O, Amazon.com Inc AMZN.O and Apple Inc AAPL.O were among Thursday's most heavily traded contracts. SPY puts expiring at the end of next week, struck at the $350 mark, just above the ETF's mid-October intra-day low of $348.11, were the fourth most actively traded SPY options on Thursday. "Over the six prior Fed meetings year-to-date, the SPY has seen an average move of +/- 2.8% from the close on Wednesday (Fed day) to Friday's close," he said.
|
At the single stock level, near-term put options on battered megacaps such as Tesla TSLA.O, Amazon.com Inc AMZN.O and Apple Inc AAPL.O were among Thursday's most heavily traded contracts. The more defensive tone of trading is in contrast with some bullish activity in the options market prior to the Fed meeting as investors worried about missing out on a rally. "Over the six prior Fed meetings year-to-date, the SPY has seen an average move of +/- 2.8% from the close on Wednesday (Fed day) to Friday's close," he said.
|
At the single stock level, near-term put options on battered megacaps such as Tesla TSLA.O, Amazon.com Inc AMZN.O and Apple Inc AAPL.O were among Thursday's most heavily traded contracts. By Saqib Iqbal Ahmed NEW YORK, Nov 3 (Reuters) - Investors rushed to guard against further declines in U.S. stocks on Thursday, a day after the Federal Reserve dashed hopes for a downshift in the central bank’s inflation-fighting rate hikes. SPY puts expiring at the end of next week, struck at the $350 mark, just above the ETF's mid-October intra-day low of $348.11, were the fourth most actively traded SPY options on Thursday.
|
18573.0
|
2022-11-03 00:00:00 UTC
|
US STOCKS-Wall St slides as Fed signals more interest rate hikes
|
AAPL
|
https://www.nasdaq.com/articles/us-stocks-wall-st-slides-as-fed-signals-more-interest-rate-hikes
|
nan
|
nan
|
By Shubham Batra and Amruta Khandekar
Nov 3 (Reuters) - Wall Street's main indexes were on track to extend losses for a fourth straight session on Thursday as investors worried that the Federal Reserve would keep raising interest rates for longer than previously anticipated.
Market participants were hoping that the Fed, which raised rates by 75 basis pointson Wednesday, would ease its hawkish stance in the near future after a string of big rate hikes has fanned fears of a recession.
However, the S&P 500 .SPX and the tech-heavy Nasdaq .IXIC marked their biggest one-day percentage declines in nearly a month after Fed Chair Jerome Powell said it was "very premature" to discuss when the central bank might pause the rate hikes.
While traders are still split between the odds of a 50 bps and 75 bps rate hike in December, the peak Fed funds rate is seen climbing to 5% or higher next year, compared with a prior estimate of 4.50%-4.75% rise. FEDWATCH.
"It means that your terminal rate is higher and that's why markets are repricing in rates remaining higher for longer."
Meanwhile, the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, providing further evidence of a strong labor market.
Another set of data on Thursday showed the U.S. services industry grew at its slowest pace in nearly 2-1/2 years in October and businesses continued to face higher input prices, confirming that inflation was shifting to services from goods.
The nonfarm payrolls report due on Friday will be crucial as investors try to gauge whether the Fed's rate hikes have significantly cooled the economy.
At 12:29 a.m. ET, the Dow Jones Industrial Average .DJI was down 16.78 points, or 0.05%, at 32,130.98, the S&P 500 .SPX was down 20.26 points, or 0.54%, at 3,739.43, and the Nasdaq Composite .IXIC was down 109.26 points, or 1.04%, at 10,415.53.
Shares of megacap technology companies extended losses, with Apple Inc AAPL.O, Microsoft MSFT.O and Alphabet GOOGL.O down between 1% and 4% as the 10-year U.S. Treasury yield US10YT=RR hit its highest level since Oct. 25. US/
Gains in industrials including aircraft firm Boeing BA.N and heavy equipment maker Caterpillar CAT.N limited declines on the Dow Jones.
Among companies reporting their quarterly results, Royal Caribbean Group RCL.Nrose 4.7% after mixed results, while Etsy Inc ETSY.O jumped 13.6% to the top of the S&P 500 after beating quarterly revenue estimates.
Qualcomm Inc QCOM.O and Roku Inc ROKU.O tumbled 7.5% and 4.1% respectively, after their holiday quarter forecasts fell below expectations.
Declining issues outnumbered advancers for a 1.66-to-1 ratio on the NYSE and for a 1.47-to-1 ratio on the Nasdaq.
The S&P index recorded four new 52-week highs and 44 new lows, while the Nasdaq recorded 43 new highs and 241 new lows.
(Reporting by Sruthi Shankar, Amruta Khandekar and Shubham Batra in Bengaluru; Editing by Shounak Dasgupta, Arun Koyyur and Anil D'Silva)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Shares of megacap technology companies extended losses, with Apple Inc AAPL.O, Microsoft MSFT.O and Alphabet GOOGL.O down between 1% and 4% as the 10-year U.S. Treasury yield US10YT=RR hit its highest level since Oct. 25. By Shubham Batra and Amruta Khandekar Nov 3 (Reuters) - Wall Street's main indexes were on track to extend losses for a fourth straight session on Thursday as investors worried that the Federal Reserve would keep raising interest rates for longer than previously anticipated. However, the S&P 500 .SPX and the tech-heavy Nasdaq .IXIC marked their biggest one-day percentage declines in nearly a month after Fed Chair Jerome Powell said it was "very premature" to discuss when the central bank might pause the rate hikes.
|
Shares of megacap technology companies extended losses, with Apple Inc AAPL.O, Microsoft MSFT.O and Alphabet GOOGL.O down between 1% and 4% as the 10-year U.S. Treasury yield US10YT=RR hit its highest level since Oct. 25. By Shubham Batra and Amruta Khandekar Nov 3 (Reuters) - Wall Street's main indexes were on track to extend losses for a fourth straight session on Thursday as investors worried that the Federal Reserve would keep raising interest rates for longer than previously anticipated. While traders are still split between the odds of a 50 bps and 75 bps rate hike in December, the peak Fed funds rate is seen climbing to 5% or higher next year, compared with a prior estimate of 4.50%-4.75% rise.
|
Shares of megacap technology companies extended losses, with Apple Inc AAPL.O, Microsoft MSFT.O and Alphabet GOOGL.O down between 1% and 4% as the 10-year U.S. Treasury yield US10YT=RR hit its highest level since Oct. 25. By Shubham Batra and Amruta Khandekar Nov 3 (Reuters) - Wall Street's main indexes were on track to extend losses for a fourth straight session on Thursday as investors worried that the Federal Reserve would keep raising interest rates for longer than previously anticipated. Market participants were hoping that the Fed, which raised rates by 75 basis pointson Wednesday, would ease its hawkish stance in the near future after a string of big rate hikes has fanned fears of a recession.
|
Shares of megacap technology companies extended losses, with Apple Inc AAPL.O, Microsoft MSFT.O and Alphabet GOOGL.O down between 1% and 4% as the 10-year U.S. Treasury yield US10YT=RR hit its highest level since Oct. 25. By Shubham Batra and Amruta Khandekar Nov 3 (Reuters) - Wall Street's main indexes were on track to extend losses for a fourth straight session on Thursday as investors worried that the Federal Reserve would keep raising interest rates for longer than previously anticipated. However, the S&P 500 .SPX and the tech-heavy Nasdaq .IXIC marked their biggest one-day percentage declines in nearly a month after Fed Chair Jerome Powell said it was "very premature" to discuss when the central bank might pause the rate hikes.
|
18574.0
|
2022-11-03 00:00:00 UTC
|
2 Reasons to Buy Spotify Stock Right Now
|
AAPL
|
https://www.nasdaq.com/articles/2-reasons-to-buy-spotify-stock-right-now
|
nan
|
nan
|
Spotify Technologies (NYSE: SPOT) has more than doubled its revenue and monthly active users since its initial public offering (IPO) four years ago.However, the stock has underperformed over that time, going down 39% since Spotify's IPO.
A stock will catch up with the underlying company's financial performance in the long run. The good news is that Spotify is steadily adding new users even in a challenging economy. Here are two reasons the stock is a buy for the long term.
1. Growing demand
No matter what comes along to compete for people's time, such as video games or social media, music has always been in demand. Over the last few decades, music streaming has emerged as the largest driver of growth in the $28 billion global recorded music industry.
Despite sky-high inflation and economic uncertainty, consumers are still signing up for Spotify. The company reported a 20% year-over-year increase in monthly active years for the third quarter. While growth in premium subscriptions has slowed recently, management said that subscribers exceeded their guidance by 1 million in the quarter.
METRIC Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 YOY GROWTH
Premium subscribers 172 180 182 188 195 13%
Ad-supported monthly users 220 236 252 256 273 24%
Total monthly active users 381 406 422 433 456 20%
Data source: Spotify. YoY = Year over year.
One advantage that can keep people locked into their Spotify subscription is the ubiquity of the service. Nine out of 10 premium users use Spotify across several devices, and this eager engagement tends to lead to higher lifetime value and lower cancellation rates.
2. Music is cheap
Wall Street is concerned about Spotify's operating loss of $228 million last quarter, which has worsened this year as more users opt to sign up for free ad-supported plans that generate lower margins than paid subscriptions. However, a sell-off in the stock over Spotify's profitability is a no-brainer buying opportunity for the following reason.
Music streaming services are under-monetized. People are spending significantly less on music today than they did 20 years ago, and a big reason for that is the affordability of streaming compared to physical media.
Image source: Statista.
Apple just raised the price of Apple Music, and it's only a matter of time before Spotify follows suit in the U.S. market. Spotify has raised prices 46 times across international markets in the last two years. Even after those increases, the platform still continues to grow the number of premium subscribers.
Buy the stock while growth expectations are low
Spotify could follow Apple's lead and raise prices tomorrow if it wanted to. Still, management seems more inclined to give consumers more value through a growing podcast library and enhancements to personalization. Spotify's management is choosing to widen the net as much as possible now and worry about maximizing margins later. This is the right strategy to maximize the company's long-term potential for profitable business growth.
A few years ago, the stock was valued at a high price-to-sales (P/S) ratio of over 6, which implied the expectation for a double-digit operating margin over the long term. With the stock trading at a P/S multiple of 1.24 at the time of writing, the lofty expectations for high margins are gone. The premium has been taken out of the stock, making it a potential bargain at these price levels.
10 stocks we like better than Spotify Technology
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Spotify Technology wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 30, 2022
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Spotify Technology. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Music is cheap Wall Street is concerned about Spotify's operating loss of $228 million last quarter, which has worsened this year as more users opt to sign up for free ad-supported plans that generate lower margins than paid subscriptions. People are spending significantly less on music today than they did 20 years ago, and a big reason for that is the affordability of streaming compared to physical media. A few years ago, the stock was valued at a high price-to-sales (P/S) ratio of over 6, which implied the expectation for a double-digit operating margin over the long term.
|
Premium subscribers 172 180 182 188 195 13% Ad-supported monthly users 220 236 252 256 273 24% Total monthly active users 381 406 422 433 456 20% Data source: Spotify. Buy the stock while growth expectations are low Spotify could follow Apple's lead and raise prices tomorrow if it wanted to. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
|
Spotify Technologies (NYSE: SPOT) has more than doubled its revenue and monthly active users since its initial public offering (IPO) four years ago.However, the stock has underperformed over that time, going down 39% since Spotify's IPO. Music is cheap Wall Street is concerned about Spotify's operating loss of $228 million last quarter, which has worsened this year as more users opt to sign up for free ad-supported plans that generate lower margins than paid subscriptions. Buy the stock while growth expectations are low Spotify could follow Apple's lead and raise prices tomorrow if it wanted to.
|
Here are two reasons the stock is a buy for the long term. Premium subscribers 172 180 182 188 195 13% Ad-supported monthly users 220 236 252 256 273 24% Total monthly active users 381 406 422 433 456 20% Data source: Spotify. The Motley Fool has positions in and recommends Apple and Spotify Technology.
|
18575.0
|
2022-11-03 00:00:00 UTC
|
Best Stocks To Invest In Right Now? 2 Dow 30 Stocks To Know
|
AAPL
|
https://www.nasdaq.com/articles/best-stocks-to-invest-in-right-now-2-dow-30-stocks-to-know
|
nan
|
nan
|
The Dow Jones Industrial Average (DJIA) is one of the oldest and most widely-followed stock market indices in the world. Often simply referred to as “the Dow,” the DJIA is a price-weighted average of 30 large publicly-traded companies that are representative of different sectors of the US economy. Dow Jones Industrial Average stocks are some of the most well-known and widely-held blue chip stocks around. This includes notable companies such as Johnson & Johnson (NYSE: JNJ), Microsoft Corporation (NASDAQ: MSFT), and American Express Company (NYSE: AXP) to name a couple.
What’s more, the Dow Jones index is widely known as a barometer for the overall health of the US stock market. Although it’s not without its detractors, the Dow Jones Industrial Average remains one of the most closely-watched stock market indices in the world. If this has you interested in investing in Dow 30 stocks, here are two to check out right now.
Dow 30 Stocks To Watch Right Now
The Boeing Company (NYSE: BA)
Apple Inc. (NASDAQ: AAPL)
1. Boeing Company (BA Stock)
First up, Boeing Company (BA) is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, and satellites worldwide. The company also provides leasing and product support services. Moreover, Boeing is one of the largest global aerospace manufacturers.
BA Recent Stock News
At the end of October, Boeing reported its Q3 2022 financial results. In the report, the company announced a loss of $6.18 per share and revenue of $16 billion for the 3rd quarter of 2022. Also, BA reported that its revenue increased by 4.4% during the same period, a year prior. In addition, Boeing was able to resume its 787 deliveries and delivered 9 airplanes in the third quarter of 2022.
Furthermore, Dave Calhoun, Boeing President, and CEO commented, “We generated strong cash in the quarter and are on a solid path to achieving positive free cash flow for 2022. At the same time, revenue and earnings were significantly impacted by losses on our fixed-price defense development programs. We’re squarely focused on maturing these programs, mitigating risks and delivering for our customers and their important missions.“
BA Stock Chart
During Thursday’s mid-morning trading action, shares of Boeing stock are up by 6.20%, trading at $156.81 a share.
Source: TD Ameritrade TOS
2. Apple (AAPL Stock)
Next, a company that needs little to no introduction, is consumer tech behemoth Apple Inc. (AAPL). For the uninitiated, Apple is an American multinational technology company. The company designs develop and sell consumer electronics like iPhone smartphones, iPad tablet computers to name a few.
AAPL Recent Stock News
Meanwhile, just last week, Apple announced its Q4 2022 financial and operating results. Diving in, Apple notched in earnings of $1.29 per share, along with revenue of $90.1 billion in the 4th quarter of 2022. For context, analysts’ consensus estimates for Q4 2022 were earnings of $1.26 per share on revenue of $90.0 billion. Moreover, Apple reported an 8.1% increase in revenue on a year-over-year basis. Additionally, the company said it projects first quarter 2023 revenue to be greater than $134 billion.
Tim Cook, Apple’s CEO had this to say in its press release to shareholders, “As we head into the holiday season with our most powerful lineup ever, we are leading with our values in every action we take and every decision we make. We are deeply committed to protecting the environment, to securing user privacy, to strengthening accessibility, and to creating products and services that can unlock humanity’s full creative potential.“
AAPL Stock Chart
Meanwhile, on Thursday morning, shares of Apple stock are trading down 3.41%, at $140.09 per share.
Source: TD Ameritrade TOS
If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel.
CLICK HERE RIGHT NOW!!
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Dow 30 Stocks To Watch Right Now The Boeing Company (NYSE: BA) Apple Inc. (NASDAQ: AAPL) 1. Apple (AAPL Stock) Next, a company that needs little to no introduction, is consumer tech behemoth Apple Inc. (AAPL). AAPL Recent Stock News Meanwhile, just last week, Apple announced its Q4 2022 financial and operating results.
|
Dow 30 Stocks To Watch Right Now The Boeing Company (NYSE: BA) Apple Inc. (NASDAQ: AAPL) 1. Apple (AAPL Stock) Next, a company that needs little to no introduction, is consumer tech behemoth Apple Inc. (AAPL). AAPL Recent Stock News Meanwhile, just last week, Apple announced its Q4 2022 financial and operating results.
|
Dow 30 Stocks To Watch Right Now The Boeing Company (NYSE: BA) Apple Inc. (NASDAQ: AAPL) 1. Apple (AAPL Stock) Next, a company that needs little to no introduction, is consumer tech behemoth Apple Inc. (AAPL). AAPL Recent Stock News Meanwhile, just last week, Apple announced its Q4 2022 financial and operating results.
|
Dow 30 Stocks To Watch Right Now The Boeing Company (NYSE: BA) Apple Inc. (NASDAQ: AAPL) 1. Apple (AAPL Stock) Next, a company that needs little to no introduction, is consumer tech behemoth Apple Inc. (AAPL). AAPL Recent Stock News Meanwhile, just last week, Apple announced its Q4 2022 financial and operating results.
|
18576.0
|
2022-11-03 00:00:00 UTC
|
2 Top Growth Stocks I'd Buy Right Now Without Any Hesitation
|
AAPL
|
https://www.nasdaq.com/articles/2-top-growth-stocks-id-buy-right-now-without-any-hesitation
|
nan
|
nan
|
Disastrous results from Amazon (NASDAQ: AMZN) and Meta (NASDAQ: META) have many fearing another "tech wreck" is upon us. But even the tech-heavy Nasdaq Composite index, which is down 30% this year, is still nowhere near the dramatic decline it suffered in 2000 when it lost 56% of its value, or the massive 78% plunge it took in 2008.
And both of those collapses ultimately resulted in multi-year bull market runs. That's the thing about downturns: While they're never fun, they mark excellent opportunities to buy great growth stocks at values not seen in some time.
Image source: Getty Images.
If you have money you've kept on the sidelines and don't need it to pay bills or for emergencies, then now is one of those rare chances to buy stocks you previously missed out on. The following two growth stocks are great companies you can buy right now without hesitation that will make your portfolio thank you in the years to come.
Apple
It seems every run up to Apple's (NASDAQ: AAPL) earnings is filled with Wall Street's cries of "this is the end" for the tech giant. While the consumer electronics company's results were far from perfect, it quickly became clear Apple was the bulwark propping up the entire market from a meltdown.
iPhone revenue of $14.63 billion was 10% higher than last year (though it just missed analyst expectations) and has become the biggest mobile device after surpassing Android smartphones back in June with an active installed base greater than 50%. iPad sales were also weaker than anticipated, with revenue down 13%, but the rest of its business was fairly solid. Mac revenue was up 25% to $11.5 billion, and wearables jumped 10% from last year.
Although products will always be important for Apple, everyone realizes services are the tech stock's future, and despite significant currency headwinds due to the very strong dollar overseas, revenue rose 5% to $19.2 billion (again, slightly below expectations). Yet Apple said paid subscriptions across all of its platforms soared by 155 million in the quarter to 900 million, or double what it was just three years ago.
Warren Buffett has been a big buyer of Apple stock, and it accounts for around 41% of Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) portfolio. Yet with Apple trading at around $156 per share, you would be buying the stock now at prices similar to or better than the Oracle of Omaha, making it a good long-term growth stock to own.
Image source: Getty Images.
Shopify
E-commerce platform provider Shopify (NYSE: SHOP) has gone from pandemic hero to post-pandemic has-been. Its stock has lost three quarters of its value this year, and is down 80% from its all-time high.
But that's a case of the market throwing the baby out with the bathwater.
Shopify certainly got a spike in new business during the COVID outbreak as people locked down in their homes launched new websites and businesses at a torrid pace and turned to the e-commerce platform provider for assistance.
There was naturally going to be a return to the mean after the economy reopened, but the response has been as if Shopify were going out of business. Although it's been reporting losses of late, President Harley Finkelstein says Shopify is on the path back to profitability.
"If you look over the 7 years since IPO, 5 of those years, we've been profitable. We plan on becoming profitable again."
In the second quarter it reported a $1.2 billion net loss, but Shopify had that shrink to a minuscule $125 million in the third as revenue rose 22% from last year. It continues to show strong growth in gross merchandise volume and gross payment volume, even if at a slower pace than before the pandemic -- but no company can continue to expand at such high percentages in perpetuity.
Shopify, however, is rolling out new products for its users, such as a new sales tax product and mobile point-of-sale hardware, while also adding greater functionality to existing features like its fulfillment network. In the process the company is becoming more vertically integrated, which allows it to establish itself as a critical component of a businesses' operations.
Shopify has $4.9 billion in cash, equivalents, and short-term investments available to it to weather any storm, and as its business grows again at a more normal pace, the market will recognize the opportunity it presents. Buying now affords an investor the chance to get in before that inflection point arrives.
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 September 30, 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. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), Meta Platforms, Inc., and Shopify. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify, long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $1,160 calls on Shopify, 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.
|
Apple It seems every run up to Apple's (NASDAQ: AAPL) earnings is filled with Wall Street's cries of "this is the end" for the tech giant. iPhone revenue of $14.63 billion was 10% higher than last year (though it just missed analyst expectations) and has become the biggest mobile device after surpassing Android smartphones back in June with an active installed base greater than 50%. Although products will always be important for Apple, everyone realizes services are the tech stock's future, and despite significant currency headwinds due to the very strong dollar overseas, revenue rose 5% to $19.2 billion (again, slightly below expectations).
|
Apple It seems every run up to Apple's (NASDAQ: AAPL) earnings is filled with Wall Street's cries of "this is the end" for the tech giant. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), Meta Platforms, Inc., and Shopify.
|
Apple It seems every run up to Apple's (NASDAQ: AAPL) earnings is filled with Wall Street's cries of "this is the end" for the tech giant. Yet with Apple trading at around $156 per share, you would be buying the stock now at prices similar to or better than the Oracle of Omaha, making it a good long-term growth stock to own. See the 10 stocks *Stock Advisor returns as of September 30, 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.
|
Apple It seems every run up to Apple's (NASDAQ: AAPL) earnings is filled with Wall Street's cries of "this is the end" for the tech giant. "If you look over the 7 years since IPO, 5 of those years, we've been profitable. That's right -- they think these 10 stocks are even better buys.
|
18577.0
|
2022-11-03 00:00:00 UTC
|
Elon Musk’s $44 billion Twitter challenge begins: podcast
|
AAPL
|
https://www.nasdaq.com/articles/elon-musks-%2444-billion-twitter-challenge-begins%3A-podcast
|
nan
|
nan
|
Reuters
Reuters
LONDON (Reuters Breakingviews) - The Tesla boss is now the proud owner of the social media platform. In this Viewsroom podcast, Breakingviews columnists discuss the billionaire’s plans to boost revenue, the implications for the electric carmaker’s shareholders, and what the saga tells us about mega-deals.
Listen to the podcast
Follow @aimeedonnellan on Twitter
(Editing by Thomas Shum and Oliver Taslic)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
LONDON (Reuters Breakingviews) - The Tesla boss is now the proud owner of the social media platform. In this Viewsroom podcast, Breakingviews columnists discuss the billionaire’s plans to boost revenue, the implications for the electric carmaker’s shareholders, and what the saga tells us about mega-deals. Listen to the podcast Follow @aimeedonnellan on Twitter (Editing by Thomas Shum and Oliver Taslic) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Reuters Reuters LONDON (Reuters Breakingviews) - The Tesla boss is now the proud owner of the social media platform. In this Viewsroom podcast, Breakingviews columnists discuss the billionaire’s plans to boost revenue, the implications for the electric carmaker’s shareholders, and what the saga tells us about mega-deals.
|
Reuters Reuters In this Viewsroom podcast, Breakingviews columnists discuss the billionaire’s plans to boost revenue, the implications for the electric carmaker’s shareholders, and what the saga tells us about mega-deals. Listen to the podcast Follow @aimeedonnellan on Twitter (Editing by Thomas Shum and Oliver Taslic) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Reuters Reuters LONDON (Reuters Breakingviews) - The Tesla boss is now the proud owner of the social media platform. In this Viewsroom podcast, Breakingviews columnists discuss the billionaire’s plans to boost revenue, the implications for the electric carmaker’s shareholders, and what the saga tells us about mega-deals.
|
18578.0
|
2022-11-03 00:00:00 UTC
|
Zacks Earnings Trends Highlights: Amazon, Alphabet, Microsoft and Apple
|
AAPL
|
https://www.nasdaq.com/articles/zacks-earnings-trends-highlights%3A-amazon-alphabet-microsoft-and-apple
|
nan
|
nan
|
For Immediate Release
Chicago, IL – November 3, 2022 – Zacks Director of Research Sheraz Mian says, " Looking at 2022 Q3 as a whole, total S&P 500 earnings are currently expected to be up +2.0% from the same period last year on +10.7% higher revenues.'"
Breaking Down the Earnings Picture as Estimates Fade
Note: The following is an excerpt from this week's Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
· The picture emerging from the 2022 Q3 earnings season continues to run counter to pre-season fears of an impending earnings cliff. Overall corporate profitability isn't great, but it isn't bad either. That said, estimates for the coming periods are steadily coming down, with the revisions trend accelerating in recent days.
· Looking at 2022 Q3 as a whole, total S&P 500 earnings are currently expected to be up +2.0% from the same period last year on +10.7% higher revenues. Excluding contributions from the Energy sector, Q3 earnings for the rest of the index would be -5.6% below the year-earlier level.
· Looking at the calendar-year picture, total S&P 500 earnings are expected to be up +5.7% in 2022 and +3.8% in 2023. On an ex-Energy basis, total 2022 index earnings would be down -1.2% (instead of +5.7%, with Energy).
· The widely held view that earnings estimates remain out of sync with the economic ground reality is erroneous as it looks at the aggregate picture at the index level where estimates for the Energy sector have consistently been positive.
The focus lately has been on the disappointing results from the Tech sector, particularly the mega-cap operators Amazon AMZN, Alphabet GOOGL, Microsoft MSFT and Apple AAPL; we have been referring to this group as the 'Big 5 Tech Players'.
Of this group, Apple has fared a lot better, burnishing its leadership credentials and its 'Rock of Gibraltar' status in the eyes of its legion of supporters. That said, these results have forced us all to revisit our long-held assumptions about the sustainability of these technology leaders' earnings power.
The market's immediate concerns appear to be centered on the outlook for Amazon and Meta, as Alphabet and Microsoft results weren't really that bad. Some of that differentiation was clear from the stock market reaction to the results as well, with Amazon and Meta shares really getting punished following their quarterly reports.
The one thing that is becoming clear after results from these 'Big 5 Tech Players' is that none of these players' profitability is Teflon coated and immune from cyclical forces. Apple may be looking invincible in the afterglow of its quarterly report, but the consumer decision to purchase the company's pricey phones and other devices remains a discretionary choice and vulnerable to economic forces.
Q3 earnings for the 'Big 5 Tech Players' in the aggregate are down -15.2% from the same period last year on +9.4% higher revenues.
For 2022 as a whole, the group is expected to bring in -13.6% lower earnings on +5.5% higher revenues. But growth is expected to resume next year and accelerate the following year.
A big driver of the group's current growth challenge is the all-around margin pressures, a function of their bulging payrolls, particularly for Amazon, Meta and Alphabet. Many in the market have been suspecting for some time now that these companies are significantly over-staffed, with Amazon even acknowledging the reality. One could say that if they move into the management mode of other blue chip operators by getting on top of their expenses, they can help strengthen their profitability.
Amazon hired a ton of workers during Covid to meet the surging demand as all of us stopped going to stores. The question now is whether they need to let some of those workers go as Covid restrictions are mostly in the rear-view mirror.
In addition to the group's margin challenge, there are two other factors that will drive their profitability over the next two years.
The first factor is the unusual impact of Covid on their profitability in the last two years, including an unusually large gain in 2021 on account of the pandemic. The question now is whether the +58% jump in 2021 earnings brought forward profits from 2022 only or 2022 and 2023?
The second factor is related to the impact of macroeconomic forces on these companies' profitability. Microsoft's business was affected not only by the slump in PC demand, a function of post-Covid adjustment, but also by growth deceleration in the cloud business.
We saw similar cloud-centric challenges in the Amazon and Alphabet reports as well. This cloud deceleration is likely a reflection of companies cutting back on enterprise spending, on top of reining in digital advertising spending.
The market was under the impression that cloud spending was effectively immune from economic forces and will not experience any cuts. The numbers from Microsoft, Amazon, Alphabet and others show otherwise.
This brings us back to evaluating the seemingly Teflon-coated status of Apple's gadgets and services.
I am of the opinion that once the Fed's tighter policy regime produces cracks in the labor market, we will end up discovering that consumers rationally deferred replacing their older devices with newer ones. We are not there yet because the labor market is still rock solid, but we could very well reach that stage at either of the coming two quarterly reports.
The Estimate Revisions Trend
Analysts have been steadily cutting their estimates for some time now. We saw this in the run up to the start of the Q3 earnings season and the trend continues with respect to estimates for the current period (2022 Q4) and full-year 2023.
Aggregate S&P 500 earnings outside of the Energy sector peaked in mid-April and have been steadily trending down ever since. In fact, S&P 500 earnings estimates in the aggregate outside of the Energy sector have declined -9.9% since mid-April, with double-digit percentage declines in Retail, Construction, Consumer Discretionary, Tech, Industrial Products and the Aerospace sectors. On the whole, estimates are down for 13 of the 16 Zacks sectors.
The Overall Earnings Picture
Please note that a big part of this year's growth is thanks to the strong momentum in the Energy sector whose earnings are on track to grow +142.6%. Excluding this extraordinary Energy sector contribution, earnings growth for the rest of the index would be down -1.3%. This relatively flat earnings picture for this year is also in-line with the economic ground reality.
Earnings next year are expected to be up only +3.8% as a whole and +5.6% excluding the Energy sector. This magnitude of growth can hardly be called out-of-sync with a flat or even modestly down economic growth outlook. Don't forget that headline GDP growth numbers are in real or inflation-adjusted terms while S&P 500 earnings discussed here are not.
As mentioned earlier, 2023 aggregate earnings estimates on an ex-Energy basis are already down -9.9% since mid-April. Perhaps we see a bit more downward adjustments to estimates over the coming weeks, after we have seen Q3 results. But we have nevertheless already covered some ground in taking estimates to a fair or appropriate level.
This is particularly so if whatever economic downturn lies ahead proves to be more of the garden variety rather than the last two such events. Recency bias forces us to use the last two economic downturns, which were also among the nastiest in recent history, as our reference points. But we need to be cautious against that natural tendency as the economy's foundations at present remain unusually strong.
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The focus lately has been on the disappointing results from the Tech sector, particularly the mega-cap operators Amazon AMZN, Alphabet GOOGL, Microsoft MSFT and Apple AAPL; we have been referring to this group as the 'Big 5 Tech Players'. Apple Inc. (AAPL): Free Stock Analysis Report For Immediate Release Chicago, IL – November 3, 2022 – Zacks Director of Research Sheraz Mian says, " Looking at 2022 Q3 as a whole, total S&P 500 earnings are currently expected to be up +2.0% from the same period last year on +10.7% higher revenues.'"
|
The focus lately has been on the disappointing results from the Tech sector, particularly the mega-cap operators Amazon AMZN, Alphabet GOOGL, Microsoft MSFT and Apple AAPL; we have been referring to this group as the 'Big 5 Tech Players'. Apple Inc. (AAPL): Free Stock Analysis Report In fact, S&P 500 earnings estimates in the aggregate outside of the Energy sector have declined -9.9% since mid-April, with double-digit percentage declines in Retail, Construction, Consumer Discretionary, Tech, Industrial Products and the Aerospace sectors.
|
The focus lately has been on the disappointing results from the Tech sector, particularly the mega-cap operators Amazon AMZN, Alphabet GOOGL, Microsoft MSFT and Apple AAPL; we have been referring to this group as the 'Big 5 Tech Players'. Apple Inc. (AAPL): Free Stock Analysis Report You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>> Here are the key points: · The picture emerging from the 2022 Q3 earnings season continues to run counter to pre-season fears of an impending earnings cliff.
|
The focus lately has been on the disappointing results from the Tech sector, particularly the mega-cap operators Amazon AMZN, Alphabet GOOGL, Microsoft MSFT and Apple AAPL; we have been referring to this group as the 'Big 5 Tech Players'. Apple Inc. (AAPL): Free Stock Analysis Report On the whole, estimates are down for 13 of the 16 Zacks sectors.
|
18579.0
|
2022-11-03 00:00:00 UTC
|
7 Best Reddit Stocks to Buy Now
|
AAPL
|
https://www.nasdaq.com/articles/7-best-reddit-stocks-to-buy-now
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Even though they’ve been maligned as a class, there are some Reddit stocks that boast incredible potential.
The Reddit community on Wall Street has been a great source of inspiration for investors leveraging the site’s popularity to make major investments.
The site is home to an investing community and traders with multiple subreddits dedicated exclusively to their needs. Many investors look to Reddit forinvestment advicedue to its massive popularity. Though Redditors are notorious for pushing stocks that only have their relevance based on social media, Reddit stocks also have been known to perform.
As you read through, you’ll find that these Reddit stocks are some of the most popular ones in the investing world. With more and more traders becoming savvy, high-quality names on the stock market are being bid up.
Therefore you are unlikely to see many obscure stocks trending on the social media platform. That said, here are seven of the best Reddit stocks that present themselves as attractive bets in the current market downturn.
DOCU DocuSign $45.88
NIO Nio $9.55
DIS Disney $103.67
AAPL Apple $148.72
TA TravelCenters of America $52.20
IT Gartner $326.10
AI C3.ai $12.43
DocuSign (DOCU)
Source: Sundry Photography / Shutterstock.com
DocuSign (NASDAQ:DOCU) operates a leading e-signature platform that has grown its sales from just $500 million in 2018 to a massive $2.5 billion today. It has over 1.2 million customers and established a leadership position in its niche.
DocuSign was a pandemic darling and saw its shares skyrocket to new heights following multiple blow-out earnings reports. However, with the pandemic tailwinds fading away, company growth rates have normalized, which has investors concerned over its long-term outlook.
Given its customer base’s stickiness and humongous addressable market, I feel that DocuSign still has an incredible growth runway ahead.
According to a report from Straits Research, the e-signature market could grow from $4.4 billion last year to $42 billion by 2030. Moreover, with the firm’s cost-saving program in play and its impressive net retention rate of over 100%, I feel DocuSign will continue growing by double-digit margins making it one of the Reddit stocks to keep an eye on.
Nio (NIO)
Source: Michael Vi / Shutterstock.com
Growth stocks like Nio (NYSE:NIO) have fallen out of favor with investors over concerns about an economic slowdown in China and the government’s zero-Covid policy. The EV giant now trades at around three times forward sales, a highly attractive multiple given its long-term outlook.
Nio has been a revelation in the Chinese EV space producing thousands of vehicles each year, putting it firmly ahead of smaller EV markers and making it one of the more interesting Reddit stocks.
Deliveries have dropped in recent quarters due to supply-chain hiccups, but its recent results have been encouraging. Despite the headwinds, it delivered 29% more vehicles in its third quarter than last year.
Moreover, it delivered 10,059 vehicles last month, a 174% growth from the prior-year period. Therefore, there’s plenty to be optimistic about with NIO stock.
Disney (DIS)
Source: chrisdorney / Shutterstock
Disney (NYSE:DIS) has attracted plenty of attention from investors of late due to its streaming service, Disney+, which has been a smashing success since its launch.
It now has over 221 million subscribers, just behind Netflix with 223 million subscribers. Experts believe that subscriber growth for Disney+ is likely to outpace Netflix in the not-so-distant future.
Unlike Netflix, Disney has experiential businesses, such as its Parks and Cruise Line segments, which provide an incredible buffer.
After lengthy lockdowns, Disney reopened its global parks, with fans flocking back in droves. In its third quarter, the firm reported domestic hotel bookings hit an amazing 90% occupancy. Consequently, Disney has been growing at above-average rates while trading at just 2.3 times forward sales, making it a highly attractive bet.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple (NASDAQ:AAPL) is one of the most powerful tech companies that boast an unmatched ecosystem of sticky products and services that work to ensure better outcomes.
Its iPhone is one of the most popular gadgets in history, which continues to turn heads with new innovations.
Like other tech companies, Apple faces serious headwinds that have had a meaningful impact on its business. However, the firm had held up remarkably well under the circumstances and dished out another revenue and earnings beat in its most recent quarter.
Its CEO Tim Cook believes it’s heading into the holiday season “with our most powerful product lineup ever.”
The iPhone 14 will be the obvious growth catalyst moving forward. Daniel Ives, a top analyst at Wedbush, estimates that roughly 240 million iPhone users haven’t upgraded their phones in the past 3.5 years, pointing to amazing pent-up demand for the device.
TravelCenters of America (TA)
Source: IgorGolovniov / Shutterstock.com
TravelCenters of America (NASDAQ:TA) operates over 275 travel centers in the U.S. near major airports and highways.
Additionally, it also owns multiple big-box retail stores in various cities across the U.S. Its top- and bottom-line performances took a big hit during the pandemic due to a substantial drop in airport revenues. However, the business is back with considerable aplomb, with the rapid increase in travel demand.
It’s growing sales by over 50% this year, driven by post-pandemic tailwinds for its business. It recently wrapped up its third quarter, delivering $2.8 billion in revenues, a 44.8% improvement from the prior year.
Gartner (IT)
Source: T. Schneider / Shutterstock.com
Gartner (NYSE:IT) is an industry leader in market research and analytics for the tech sector. Its expertise covers many areas, including cloud computing, enterprise applications, and other profitable areas.
The company has been highly effective in adapting to evolving market conditions while delivering incredible insights for its clients. Also, it benefits from accelerating digital transformation, with firms adopting new technologies.
Its stellar performances over the years have given investors confidence that it will deliver great results for the foreseeable future.
Despite the market headwinds, it continues to report strong results and guidance. Its top line has been growing by double-digit margins in the past few quarters, and it remains a tremendous choice for investors eyeing a high-potential investment opportunity. Contrary to what most investors think, IT stock trades at a discount compared to peers while growing sales at a faster pace.
C3.ai (AI)
Source: Khakimullin Aleksandr / Shutterstock
C3.ai (NYSE:AI) is another growth stock that has witnessed a massive drop in value over the past several months.
Its growth rates have decelerated in the past few quarters, with the pandemic fade.
Over the long term, its business is looking at a massive addressable market and should continue to grow at a healthy pace for the foreseeable future. It’s still growing at over 30% annually, which is incredible given the current economic scenario.
The company recently shifted its business model to a subscription model, which gives it a chance to earn higher revenues and margins. Its algorithms have proven to cut costs and optimize the firm’s operations effectively.
The firm is scaling its customer base and is now over 220 customers compared to just 50 at its IPO. Moreover, with the stock trading at historical lows, AI stock remains a tremendous bet at current levels.
On the date of publication, Muslim Farooque 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
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
The post 7 Best Reddit Stocks to Buy Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
DOCU DocuSign $45.88 NIO Nio $9.55 DIS Disney $103.67 AAPL Apple $148.72 TA TravelCenters of America $52.20 IT Gartner $326.10 AI C3.ai $12.43 DocuSign (DOCU) Source: Sundry Photography / Shutterstock.com DocuSign (NASDAQ:DOCU) operates a leading e-signature platform that has grown its sales from just $500 million in 2018 to a massive $2.5 billion today. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is one of the most powerful tech companies that boast an unmatched ecosystem of sticky products and services that work to ensure better outcomes. Moreover, with the firm’s cost-saving program in play and its impressive net retention rate of over 100%, I feel DocuSign will continue growing by double-digit margins making it one of the Reddit stocks to keep an eye on.
|
DOCU DocuSign $45.88 NIO Nio $9.55 DIS Disney $103.67 AAPL Apple $148.72 TA TravelCenters of America $52.20 IT Gartner $326.10 AI C3.ai $12.43 DocuSign (DOCU) Source: Sundry Photography / Shutterstock.com DocuSign (NASDAQ:DOCU) operates a leading e-signature platform that has grown its sales from just $500 million in 2018 to a massive $2.5 billion today. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is one of the most powerful tech companies that boast an unmatched ecosystem of sticky products and services that work to ensure better outcomes. Disney (DIS) Source: chrisdorney / Shutterstock Disney (NYSE:DIS) has attracted plenty of attention from investors of late due to its streaming service, Disney+, which has been a smashing success since its launch.
|
DOCU DocuSign $45.88 NIO Nio $9.55 DIS Disney $103.67 AAPL Apple $148.72 TA TravelCenters of America $52.20 IT Gartner $326.10 AI C3.ai $12.43 DocuSign (DOCU) Source: Sundry Photography / Shutterstock.com DocuSign (NASDAQ:DOCU) operates a leading e-signature platform that has grown its sales from just $500 million in 2018 to a massive $2.5 billion today. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is one of the most powerful tech companies that boast an unmatched ecosystem of sticky products and services that work to ensure better outcomes. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Even though they’ve been maligned as a class, there are some Reddit stocks that boast incredible potential.
|
DOCU DocuSign $45.88 NIO Nio $9.55 DIS Disney $103.67 AAPL Apple $148.72 TA TravelCenters of America $52.20 IT Gartner $326.10 AI C3.ai $12.43 DocuSign (DOCU) Source: Sundry Photography / Shutterstock.com DocuSign (NASDAQ:DOCU) operates a leading e-signature platform that has grown its sales from just $500 million in 2018 to a massive $2.5 billion today. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is one of the most powerful tech companies that boast an unmatched ecosystem of sticky products and services that work to ensure better outcomes. Despite the headwinds, it delivered 29% more vehicles in its third quarter than last year.
|
18580.0
|
2022-11-03 00:00:00 UTC
|
Should Schwab Fundamental U.S. Large Company Index ETF (FNDX) Be on Your Investing Radar?
|
AAPL
|
https://www.nasdaq.com/articles/should-schwab-fundamental-u.s.-large-company-index-etf-fndx-be-on-your-investing-radar-5
|
nan
|
nan
|
Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the Schwab Fundamental U.S. Large Company Index ETF (FNDX), a passively managed exchange traded fund launched on 08/13/2013.
The fund is sponsored by Charles Schwab. It has amassed assets over $9.52 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
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.
Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.25%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.08%.
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 15.50% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.39% of total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT).
The top 10 holdings account for about 19.55% of total assets under management.
Performance and Risk
FNDX seeks to match the performance of the Russell RAFI US Large Co. Index before fees and expenses. The Russell RAFI US Large Company Index measures the performance of the large company size segment by fundamental overall company scores.
The ETF has lost about -10.13% so far this year and is down about -6.89% in the last one year (as of 11/03/2022). In the past 52-week period, it has traded between $47.76 and $59.90.
The ETF has a beta of 1.01 and standard deviation of 25.06% for the trailing three-year period, making it a medium risk choice in the space. With about 729 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab Fundamental U.S. Large Company Index ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, FNDX is a great option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $52.34 billion in assets, Vanguard Value ETF has $99.57 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
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 the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Exxon Mobil Corporation (XOM): Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.39% of total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report You should consider the Schwab Fundamental U.S. Large Company Index ETF (FNDX), a passively managed exchange traded fund launched on 08/13/2013.
|
Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.39% of total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report You should consider the Schwab Fundamental U.S. Large Company Index ETF (FNDX), a passively managed exchange traded fund launched on 08/13/2013.
|
Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.39% of total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives Schwab Fundamental U.S. Large Company Index ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
|
Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.39% of total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report The top 10 holdings account for about 19.55% of total assets under management.
|
18581.0
|
2022-11-03 00:00:00 UTC
|
Is iShares Core S&P U.S. Growth ETF (IUSG) a Strong ETF Right Now?
|
AAPL
|
https://www.nasdaq.com/articles/is-ishares-core-sp-u.s.-growth-etf-iusg-a-strong-etf-right-now-4
|
nan
|
nan
|
The iShares Core S&P U.S. Growth ETF (IUSG) made its debut on 07/24/2000, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - All Cap Growth category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
IUSG is managed by Blackrock, and this fund has amassed over $10.50 billion, which makes it one of the largest ETFs in the Style Box - All Cap Growth. IUSG, before fees and expenses, seeks to match the performance of the S&P 900 Growth Index.
The S&P 900 Growth Index measures the performance of the large and mid-capitalization growth sector of the U.S. equity market.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.04% for IUSG, making it one of the least expensive products in the space.
IUSG's 12-month trailing dividend yield is 0.99%.
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.
For IUSG, it has heaviest allocation in the Information Technology sector --about 43.50% of the portfolio --while Consumer Discretionary and Healthcare round out the top three.
Taking into account individual holdings, Apple Inc (AAPL) accounts for about 13.87% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
Performance and Risk
So far this year, IUSG has lost about -30.36%, and is down about -27.51% in the last one year (as of 11/03/2022). During this past 52-week period, the fund has traded between $78.88 and $117.16.
IUSG has a beta of 1.05 and standard deviation of 27.29% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 480 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core S&P U.S. Growth ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Growth segment of the market. However, there are other ETFs in the space which investors could consider.
First Trust US Equity Opportunities ETF (FPX) tracks IPOX-100 U.S. Index and the iShares Morningstar Growth ETF (ILCG) tracks MORNINGSTAR US LARGE-MID CP BRD GRWTH ID. First Trust US Equity Opportunities ETF has $926.28 million in assets, iShares Morningstar Growth ETF has $1.41 billion. FPX has an expense ratio of 0.57% and ILCG charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Growth.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares Core S&P U.S. Growth ETF (IUSG): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
First Trust US Equity Opportunities ETF (FPX): ETF Research Reports
iShares Morningstar Growth ETF (ILCG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Taking into account individual holdings, Apple Inc (AAPL) accounts for about 13.87% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
|
Taking into account individual holdings, Apple Inc (AAPL) accounts for about 13.87% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives IShares Core S&P U.S. Growth ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Growth segment of the market.
|
Taking into account individual holdings, Apple Inc (AAPL) accounts for about 13.87% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report The iShares Core S&P U.S. Growth ETF (IUSG) made its debut on 07/24/2000, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - All Cap Growth category of the market.
|
Taking into account individual holdings, Apple Inc (AAPL) accounts for about 13.87% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report The iShares Core S&P U.S. Growth ETF (IUSG) made its debut on 07/24/2000, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - All Cap Growth category of the market.
|
18582.0
|
2022-11-03 00:00:00 UTC
|
Apple Stock Is Outperforming in a Down Market. Is It Time to Buy?
|
AAPL
|
https://www.nasdaq.com/articles/apple-stock-is-outperforming-in-a-down-market.-is-it-time-to-buy
|
nan
|
nan
|
Apple (NASDAQ: AAPL) needs little introduction. With a market valuation of $2.4 trillion, it's the largest publicly traded company in America -- even after factoring in a 16% decline in its stock price year-to-date.
Apple didn't build its business in a single year. It's a story that investors should observe over the long term because, since it was listed on the stock exchange in 1982, it has generated a return of more than 117,600%. In other words, an investment of just $10,000 back then would be worth more than $11.76 million today -- assuming you held on the entire time.
Last week, the multinational tech giant released its full-year financial results for its fiscal 2022, which ended Sept. 24. The results beat Wall Street expectations on revenue and earnings per share, but they also reflected some weaknesses in a few different areas.
The stock price jumped initially after the release but has settled back a bit since then. Should long-term investors follow the lead of short-term traders and take this as an opportunity to buy Apple stock ahead of further long-term growth?
Looking back on a tough year
Despite the upbeat report, Apple is coming off a difficult year, although it's certainly not alone. High inflation, supply chain issues, and rising interest rates have stung several sectors of the economy. Companies that rely on consumer spending were hit hard as household finances tightened, and Apple's big-ticket devices -- like its flagship iPhones -- fit into categories of goods seeing cutbacks.
In its fiscal 2022, Apple's revenue increased by just 7.8%, well below the prior year's 33.2% growth rate. Of course, the economy was running hot in 2021 as the Federal Reserve kept interest rates artificially low and the U.S. government deployed stimulus dollars in an effort to blunt the economic impacts of the ongoing pandemic. The economic environment in 2022 is very different.
Apple did release a swath of new products in September that should give its sales a lift in the upcoming holiday season. Its new iPhone 14 appears to be having an impact already: Apple's smartphone revenue jumped 9.6% in its fiscal fourth quarter, which was a healthy improvement from the 2.7% increase in fiscal Q3.
Similarly, after a year-over-year decline in Q3, sales of Mac computers and notebooks jumped by 25% in Q4 to a quarterly record $11.5 billion. Wearables revenue jumped by 9.8%, driven by demand for the new Apple Watch Ultra and the second-generation AirPods Pro.
Apple's services segment remains key
Apple began to report the financials for its services segment separately in 2017, and since then, investors have paid close attention to those figures because of that segment's strong growth and much higher gross profit margins.
The services segment at Apple includes just about anything it offers via a subscription, from iCloud to Apple Music to Apple TV+. At the close of Q4, investors are wondering if consumers are starting to tire of subscriptions. It's a question being asked more after streaming giant Netflix's subscriber base shrank during the first two quarters of 2022.
Price hikes were one driver of Netflix's decline, and Apple recently increased the price of its popular Apple Music subscription, for example. The latest report didn't have the answer so we'll have to wait and see whether the recent hike has a negative impact. Relentless competition is another issue: Consumers are spoiled for choice when it comes to streaming platforms in general, and for many people, it's becoming harder to justify the expense of continuing to subscribe to all the ones they'd like, especially in this economy.
That combination of factors could explain why Apple's services segment revenue grew in fiscal 2022 at its slowest pace since the company began reporting it. It could also just be that the pandemic pulled forward a lot of subscription growth into 2021 and 2022 is just feeling the hangover effects from the outsized growth a year earlier. This is one metric to keep an eye on next year.
Even with the slowdown, Apple still set a record for services revenue in the fourth quarter on the back of 900 million paid subscriptions across its ecosystem.
Apple has also broken new ground this year in the segment. It expanded its Apple Pay product by introducing Apple Pay Later, its own take on the "buy now, pay later" (BNPL) installment-based lending services that have grown popular recently, particularly among younger shoppers. This could pull market share from credit card providers, and since Apple has an installed base of nearly 2 billion active iPhones, its uptake could be much swifter than its BNPL competitors.
Why Apple stock might be a buy right now
Yes, Apple's growth slowed during fiscal 2022. And yes, economic weakness may persist for a while longer. Apple CEO Tim Cook highlighted those issues in the company'searnings call along with the geopolitical tensions in Europe and climate change, as areas for concern.
But these challenges are not unfamiliar. Apple navigated recessions in the 1980s and the 1990s, not to mention the tech wreck in the early 2000s, which was followed by the Great Recession of 2007-09. It weathered them all and went on to become the most valuable company in America.
Consumers now have a record-high number of active iPhones and a record-high number of Apple subscriptions. For shareholders, Apple generated a record-high $99.8 billion in net income (or $6.11 per share) during fiscal 2022, and it returned a record-high $89 billion to shareholders through stock repurchases plus almost $15 billion in dividend payments.
The company is a cash-generating machine, and despite its short-term challenges, it's set up to continue its run of long-term success. With Apple stock trading down 16% year to date, this might be an opportune time to buy, especially for those who have at least a five-to-10-year investment horizon.
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 September 30, 2022
Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple 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.
|
Apple (NASDAQ: AAPL) needs little introduction. Companies that rely on consumer spending were hit hard as household finances tightened, and Apple's big-ticket devices -- like its flagship iPhones -- fit into categories of goods seeing cutbacks. Of course, the economy was running hot in 2021 as the Federal Reserve kept interest rates artificially low and the U.S. government deployed stimulus dollars in an effort to blunt the economic impacts of the ongoing pandemic.
|
Apple (NASDAQ: AAPL) needs little introduction. Price hikes were one driver of Netflix's decline, and Apple recently increased the price of its popular Apple Music subscription, for example. Even with the slowdown, Apple still set a record for services revenue in the fourth quarter on the back of 900 million paid subscriptions across its ecosystem.
|
Apple (NASDAQ: AAPL) needs little introduction. Apple's services segment remains key Apple began to report the financials for its services segment separately in 2017, and since then, investors have paid close attention to those figures because of that segment's strong growth and much higher gross profit margins. The services segment at Apple includes just about anything it offers via a subscription, from iCloud to Apple Music to Apple TV+.
|
Apple (NASDAQ: AAPL) needs little introduction. In its fiscal 2022, Apple's revenue increased by just 7.8%, well below the prior year's 33.2% growth rate. Why Apple stock might be a buy right now Yes, Apple's growth slowed during fiscal 2022.
|
18583.0
|
2022-11-03 00:00:00 UTC
|
US STOCKS-Futures signal more losses on Fed's rate hike view
|
AAPL
|
https://www.nasdaq.com/articles/us-stocks-futures-signal-more-losses-on-feds-rate-hike-view
|
nan
|
nan
|
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures down: Dow 0.12%, S&P 0.17%, Nasdaq 0.26%
Nov 3 (Reuters) - U.S. stock index futures slipped on Thursday, signaling a fresh round of selloff spurred by worries that the Federal Reserve's rate-hike cycle is far from over as the central bank hinted at smaller rate hikes.
The benchmark S&P 500 .SPX ended 2.5% lower on Wednesday, marking its biggest percentage decline in almost a month, after the Fed raised rates by 75 basis points as expected, although Chair Jerome Powell said it was "very premature" to discuss when it might pause its increases.
Stocks had initially gained after the policy announcement left open the possibility of smaller increments, with traders still split between a rise of 50 bps and 75 bps in December.
However, rate futures markets implied the odds of peak Fed funds rate climbing to 5% or higher next year compared with a prior estimate of 4.50%-4.75% rise.
"Although the U.S. economy is beginning to decelerate, inflation remains stubbornly high, and the labor market is still very tight," said Paul O' Connor, head of multi-asset team at Janus Henderson Investors.
"While the balance of evidence suggests that the inflation news will improve from here, the Fed is unlikely to emit dovish tones until stronger proof of this has emerged."
Data this week showed U.S. private payrolls increased more than expected in October and job openings jumped unexpectedly in September, signaling resilience in the labor market.
Focus will shift to Friday's jobs data, expected to show nonfarm payrolls increased by 200,000 in October. The economy created 263,000 jobs in September.
At 5:16 a.m. ET, Dow e-minis 1YMcv1 were down 39 points, or 0.12%, S&P 500 e-minis EScv1 were down 6.5 points, or 0.17%, and Nasdaq 100 e-minis NQcv1 were down 28.5 points, or 0.26%.
The tech-heavy Nasdaq .IXIC slumped 3.4% on Wednesday, as rate-sensitive growth stocks came under pressure from the prospect of higher rates for longer.
Shares of Apple Inc AAPL.O slipped 0.8% in premarket trading, but Amazon.com Inc AMZN.O gained 1.1%.
Qualcomm Inc QCOM.O tumbled 6.9% after the chipmaker's forecast for holiday-quarter revenue fell about $2 billion short of Street estimates.
Roku Inc ROKU.O slumped 18.8% after the streaming platform forecast holiday-quarter revenue below Wall Street estimates as ad spending dries up.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Arun Koyyur)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Shares of Apple Inc AAPL.O slipped 0.8% in premarket trading, but Amazon.com Inc AMZN.O gained 1.1%. The benchmark S&P 500 .SPX ended 2.5% lower on Wednesday, marking its biggest percentage decline in almost a month, after the Fed raised rates by 75 basis points as expected, although Chair Jerome Powell said it was "very premature" to discuss when it might pause its increases. "Although the U.S. economy is beginning to decelerate, inflation remains stubbornly high, and the labor market is still very tight," said Paul O' Connor, head of multi-asset team at Janus Henderson Investors.
|
Shares of Apple Inc AAPL.O slipped 0.8% in premarket trading, but Amazon.com Inc AMZN.O gained 1.1%. Futures down: Dow 0.12%, S&P 0.17%, Nasdaq 0.26% Nov 3 (Reuters) - U.S. stock index futures slipped on Thursday, signaling a fresh round of selloff spurred by worries that the Federal Reserve's rate-hike cycle is far from over as the central bank hinted at smaller rate hikes. Data this week showed U.S. private payrolls increased more than expected in October and job openings jumped unexpectedly in September, signaling resilience in the labor market.
|
Shares of Apple Inc AAPL.O slipped 0.8% in premarket trading, but Amazon.com Inc AMZN.O gained 1.1%. Futures down: Dow 0.12%, S&P 0.17%, Nasdaq 0.26% Nov 3 (Reuters) - U.S. stock index futures slipped on Thursday, signaling a fresh round of selloff spurred by worries that the Federal Reserve's rate-hike cycle is far from over as the central bank hinted at smaller rate hikes. However, rate futures markets implied the odds of peak Fed funds rate climbing to 5% or higher next year compared with a prior estimate of 4.50%-4.75% rise.
|
Shares of Apple Inc AAPL.O slipped 0.8% in premarket trading, but Amazon.com Inc AMZN.O gained 1.1%. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. However, rate futures markets implied the odds of peak Fed funds rate climbing to 5% or higher next year compared with a prior estimate of 4.50%-4.75% rise.
|
18584.0
|
2022-11-03 00:00:00 UTC
|
US STOCKS-Wall Street extends losses after Fed signals more rate hikes
|
AAPL
|
https://www.nasdaq.com/articles/us-stocks-wall-street-extends-losses-after-fed-signals-more-rate-hikes
|
nan
|
nan
|
By Shubham Batra and Amruta Khandekar
Nov 3 (Reuters) - U.S. stocks extended losses on Thursday as investors feared the Federal Reserve was far from signaling a less hawkish stance in its fight against inflation.
Stocks initially received a boost on Wednesday after the Fed raised interest rates by 75 basis points as expected and the policy announcement left open the possibility of smaller increments in the future.
The gains, however, evaporated as Fed Chair Jerome Powell said it was "very premature" to discuss when the central bank might pause the rate hikes.
The benchmark S&P 500 .SPX marked its biggest percentage decline in almost a month with a 2.5% loss in the previous session.
While traders are still split between the odds of a 50 bps and 75 bps rate hike in December, the peak Fed funds rate is seen climbing to 5% or higher next year, compared with a prior estimate of 4.50%-4.75% rise. FEDWATCH.
"The implication that the terminal rate could be over 5% scared markets that rate hikes are going to be a bit more frequent and maybe a bit higher going forward," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.
Meanwhile, the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, providing further evidence of a strong labor market.
The more comprehensive nonfarm payrolls report due on Friday will be crucial as investors try to gauge whether the Fed's rate hikes have significantly cooled the economy.
Another set of data on Thursday showed the U.S. services industry grew at its slowest pace in nearly 2-1/2 years in October and businesses continued to face higher input prices, confirming that inflation was shifting to services from goods.
At 9:46 a.m. ET, the Dow Jones Industrial Average .DJI was down 218.25 points, or 0.68%, at 31,929.51, the S&P 500 .SPX was down 42.28 points, or 1.12%, at 3,717.41, and the Nasdaq Composite .IXIC was down 146.95 points, or 1.40%, at 10,377.85.
Shares of megacap technology companies extended losses, with Apple Inc AAPL.O, Microsoft MSFT.O and Alphabet GOOGL.O down between 0.3% and 2% as the 10-year U.S. Treasury yield US10YT=RR hit its highest level since Oct. 25. US/
Among companies reporting their quarterly results, Moderna MRNA.O fell 2.6% after cutting its annual sales forecast for its COVID-19 vaccine.
Qualcomm Inc QCOM.O and Roku Inc ROKU.O tumbled 8.1% and 15.1%, respectively, after their holiday quarter forecasts fell below expectations.
Declining issues outnumbered advancers for a 3.92-to-1 ratio on the NYSE and a 2.44-to-1 ratio on the Nasdaq.
The S&P index recorded two new 52-week highs and 43 new lows, while the Nasdaq recorded 17 new highs and 161 new lows.
(Reporting by Sruthi Shankar, Amruta Khandekar and Shubham Batra in Bengaluru; Editing by Shounak Dasgupta and Arun Koyyur)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Shares of megacap technology companies extended losses, with Apple Inc AAPL.O, Microsoft MSFT.O and Alphabet GOOGL.O down between 0.3% and 2% as the 10-year U.S. Treasury yield US10YT=RR hit its highest level since Oct. 25. By Shubham Batra and Amruta Khandekar Nov 3 (Reuters) - U.S. stocks extended losses on Thursday as investors feared the Federal Reserve was far from signaling a less hawkish stance in its fight against inflation. Stocks initially received a boost on Wednesday after the Fed raised interest rates by 75 basis points as expected and the policy announcement left open the possibility of smaller increments in the future.
|
Shares of megacap technology companies extended losses, with Apple Inc AAPL.O, Microsoft MSFT.O and Alphabet GOOGL.O down between 0.3% and 2% as the 10-year U.S. Treasury yield US10YT=RR hit its highest level since Oct. 25. By Shubham Batra and Amruta Khandekar Nov 3 (Reuters) - U.S. stocks extended losses on Thursday as investors feared the Federal Reserve was far from signaling a less hawkish stance in its fight against inflation. While traders are still split between the odds of a 50 bps and 75 bps rate hike in December, the peak Fed funds rate is seen climbing to 5% or higher next year, compared with a prior estimate of 4.50%-4.75% rise.
|
Shares of megacap technology companies extended losses, with Apple Inc AAPL.O, Microsoft MSFT.O and Alphabet GOOGL.O down between 0.3% and 2% as the 10-year U.S. Treasury yield US10YT=RR hit its highest level since Oct. 25. While traders are still split between the odds of a 50 bps and 75 bps rate hike in December, the peak Fed funds rate is seen climbing to 5% or higher next year, compared with a prior estimate of 4.50%-4.75% rise. "The implication that the terminal rate could be over 5% scared markets that rate hikes are going to be a bit more frequent and maybe a bit higher going forward," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.
|
Shares of megacap technology companies extended losses, with Apple Inc AAPL.O, Microsoft MSFT.O and Alphabet GOOGL.O down between 0.3% and 2% as the 10-year U.S. Treasury yield US10YT=RR hit its highest level since Oct. 25. By Shubham Batra and Amruta Khandekar Nov 3 (Reuters) - U.S. stocks extended losses on Thursday as investors feared the Federal Reserve was far from signaling a less hawkish stance in its fight against inflation. Stocks initially received a boost on Wednesday after the Fed raised interest rates by 75 basis points as expected and the policy announcement left open the possibility of smaller increments in the future.
|
18585.0
|
2022-11-02 00:00:00 UTC
|
Is Apple Stock a Buy Now?
|
AAPL
|
https://www.nasdaq.com/articles/is-apple-stock-a-buy-now-1
|
nan
|
nan
|
Big technology companies, such as Meta Platforms and Microsoft, are having a horrid time on the stock market this earnings season thanks to the macroeconomic slowdown, but Apple (NASDAQ: AAPL) dodged a bullet and avoided a big sell-off when on Oct. 27 it released its fiscal 2022 fourth-quarter results (for the three months ended Sept. 24).
The technology giant's revenue and earnings beat Wall Street's estimates despite what Apple's CFO termed "a challenging and volatile macroeconomic backdrop." The company's revenue was up 8% year over year to $90.1 billion, while adjusted earnings increased 4% to $1.29 per share. Analysts would have settled for $1.27 per share in earnings on $88.7 billion in revenue, but the healthy demand for iPhones, MacBooks, and wearable devices, along with the growth in Apple's services business, helped it post stronger results.
The iPhone moved the needle in a big way for Apple last quarter, and the device is the biggest reason why this tech giant looks worth buying at a time when other big names have fallen by the wayside. Let's see why.
Apple thrives on strong iPhone sales
The iPhone was the driving force behind Apple's growth last quarter. The device produced 47% of the company's revenue and recorded nearly 10% year-over-year growth in revenue to $42.6 billion. That's impressive, considering that the broader smartphone market declined yet again last quarter.
According to Strategy Analytics, global smartphone shipments were down 9% year over year in the third quarter to 297 million units. Apple, however, bucked the trend and sold 49 million iPhones during the quarter, an increase of 6% over the prior-year period. The company's share of the global smartphone market increased to 16.3% as a result.
It is worth noting that Apple's sales increased at a time when its key competitors saw their shipments decline. Samsung's shipments were down 7% year over year. Chinese smartphone OEMs (original equipment manufacturers) such as Xiaomi, Oppo, and Vivo saw their shipments drop 8%, 20.1%, and 20.5%, respectively.
More importantly, Apple enjoyed healthy pricing power last quarter despite inflation and concerns about a potential recession next year. Dividing Apple's total iPhone revenue in fiscal Q4 by Strategy Analytics' shipment estimate points toward an average selling price (ASP) of nearly $879. That's more than double the overall smartphone market's estimated ASP of $413 for 2022, according to IDC.
Apple's solid pricing power isn't surprising. The ASP of 5G smartphones in 2022 is expected to land at $616, so customers are spending more on phones supporting the latest wireless standard. What's more, shipments of 5G smartphones could jump nearly 24% over 2021 to 688 million units and account for 54% of overall shipments, which tells us why Apple is enjoying a mix of healthy pricing and volumes.
The 5G market can supercharge Apple's long-term growth
Apple was the leading 5G smartphone OEM last year with a 31% market share. A similar share in 2022 means that Apple could end up shipping just over 213 million smartphones, based on this year's estimated 5G smartphone shipment forecast of 688 million. As Apple is expected to build 220 million iPhones this year, it could hit that mark as it has a comprehensive 5G smartphone lineup, including the entry-level iPhone SE.
Additionally, customers are willing to pay a premium for Apple's 5G devices, as the company's iPhone ASP indicates. What's more, the stronger demand for Apple's more expensive Pro models is another indication of the company's pricing power at a time when inflation is pulling the overall market down. As such, it won't be surprising to see Apple sustain its dominant position in 5G smartphones.
The good part is that the 5G smartphone market still has a lot of room for growth. IDC estimates that 79% of the smartphones sold in 2026 will support 5G. Based on IDC's forecast of 1.46 billion overall smartphone sales in 2026, annual 5G smartphone shipments could hit 1.15 billion units after four years. If Apple continues to control 30% of the 5G smartphone space in 2026 -- which it could in light of customers' preference for its devices even in the face of macroeconomic headwinds -- its annual iPhone shipments could reach 350 million units.
Multiplying that by an estimated ASP of $850 (assuming Apple needs to lower prices to keep the competition at bay), its annual iPhone revenue could approach $300 billion. That would be a big increase over Apple's iPhone revenue of $205 billion in fiscal 2022, indicating that the company's biggest source of revenue is set to get bigger in the long run.
With Apple trading at 25 times trailing earnings and 6 times sales right now, buying the stock looks like a good idea as these multiples suggest a discount to last year's earnings multiple of 31 and sales multiple of 8. The robust demand for the company's iPhones and its foray into emerging areas such as headsets and even self-driving cars could make Apple a top tech stock in the long run, which is why investors may want to capitalize on its 12% decline in 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 September 30, 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. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends 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.
|
Big technology companies, such as Meta Platforms and Microsoft, are having a horrid time on the stock market this earnings season thanks to the macroeconomic slowdown, but Apple (NASDAQ: AAPL) dodged a bullet and avoided a big sell-off when on Oct. 27 it released its fiscal 2022 fourth-quarter results (for the three months ended Sept. 24). Analysts would have settled for $1.27 per share in earnings on $88.7 billion in revenue, but the healthy demand for iPhones, MacBooks, and wearable devices, along with the growth in Apple's services business, helped it post stronger results. If Apple continues to control 30% of the 5G smartphone space in 2026 -- which it could in light of customers' preference for its devices even in the face of macroeconomic headwinds -- its annual iPhone shipments could reach 350 million units.
|
Big technology companies, such as Meta Platforms and Microsoft, are having a horrid time on the stock market this earnings season thanks to the macroeconomic slowdown, but Apple (NASDAQ: AAPL) dodged a bullet and avoided a big sell-off when on Oct. 27 it released its fiscal 2022 fourth-quarter results (for the three months ended Sept. 24). A similar share in 2022 means that Apple could end up shipping just over 213 million smartphones, based on this year's estimated 5G smartphone shipment forecast of 688 million. Based on IDC's forecast of 1.46 billion overall smartphone sales in 2026, annual 5G smartphone shipments could hit 1.15 billion units after four years.
|
Big technology companies, such as Meta Platforms and Microsoft, are having a horrid time on the stock market this earnings season thanks to the macroeconomic slowdown, but Apple (NASDAQ: AAPL) dodged a bullet and avoided a big sell-off when on Oct. 27 it released its fiscal 2022 fourth-quarter results (for the three months ended Sept. 24). Apple thrives on strong iPhone sales The iPhone was the driving force behind Apple's growth last quarter. The 5G market can supercharge Apple's long-term growth Apple was the leading 5G smartphone OEM last year with a 31% market share.
|
Big technology companies, such as Meta Platforms and Microsoft, are having a horrid time on the stock market this earnings season thanks to the macroeconomic slowdown, but Apple (NASDAQ: AAPL) dodged a bullet and avoided a big sell-off when on Oct. 27 it released its fiscal 2022 fourth-quarter results (for the three months ended Sept. 24). According to Strategy Analytics, global smartphone shipments were down 9% year over year in the third quarter to 297 million units. The 5G market can supercharge Apple's long-term growth Apple was the leading 5G smartphone OEM last year with a 31% market share.
|
18586.0
|
2022-11-02 00:00:00 UTC
|
China's Nio resumes production at its two Hefei factories
|
AAPL
|
https://www.nasdaq.com/articles/chinas-nio-resumes-production-at-its-two-hefei-factories
|
nan
|
nan
|
Adds details, context
BEIJING, Nov 3 (Reuters) - Chinese electric vehicle maker Nio NIO.N9866.HK said on Thursday it has resumed production at its two factories in the eastern city of Hefei, after COVID-19 curbs disrupted operations and delayed deliveries.
"Production is resumed at the moment," said a company representative, declining to say whether it was a full or partial resumption.
China is battling a rising number of cases in several major cities with lockdowns and stringent curbs that have disrupted travel and fuelled worker discontent at major AppleAAPL.O supplier Foxconn 2317.TW.
Nio said on Wednesday it had suspended production because of COVID curbs, leading to delays in deliveries when sales are booming, triggering a steep drop in its shares.
Hefei's latest outbreak begun in early October, prompting the authorities to put parts of the city under lockdown at various times, including the district where Nio's plants are located.
Nio sold 10,059 cars last month, nearly three times its sales from October 2021, after introducing new models such as ET5. For the first 10 months, its sales grew 32%.
(Reporting by Cui Zhuzhu, Zhang Yan and Brenda Goh in Shanghai and Beijing newsroom; Editing by Tom Hogue and William Mallard)
((Albee.Zhang@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.
|
China is battling a rising number of cases in several major cities with lockdowns and stringent curbs that have disrupted travel and fuelled worker discontent at major AppleAAPL.O supplier Foxconn 2317.TW. Adds details, context BEIJING, Nov 3 (Reuters) - Chinese electric vehicle maker Nio NIO.N9866.HK said on Thursday it has resumed production at its two factories in the eastern city of Hefei, after COVID-19 curbs disrupted operations and delayed deliveries. Nio said on Wednesday it had suspended production because of COVID curbs, leading to delays in deliveries when sales are booming, triggering a steep drop in its shares.
|
China is battling a rising number of cases in several major cities with lockdowns and stringent curbs that have disrupted travel and fuelled worker discontent at major AppleAAPL.O supplier Foxconn 2317.TW. Adds details, context BEIJING, Nov 3 (Reuters) - Chinese electric vehicle maker Nio NIO.N9866.HK said on Thursday it has resumed production at its two factories in the eastern city of Hefei, after COVID-19 curbs disrupted operations and delayed deliveries. Nio said on Wednesday it had suspended production because of COVID curbs, leading to delays in deliveries when sales are booming, triggering a steep drop in its shares.
|
China is battling a rising number of cases in several major cities with lockdowns and stringent curbs that have disrupted travel and fuelled worker discontent at major AppleAAPL.O supplier Foxconn 2317.TW. Adds details, context BEIJING, Nov 3 (Reuters) - Chinese electric vehicle maker Nio NIO.N9866.HK said on Thursday it has resumed production at its two factories in the eastern city of Hefei, after COVID-19 curbs disrupted operations and delayed deliveries. Nio said on Wednesday it had suspended production because of COVID curbs, leading to delays in deliveries when sales are booming, triggering a steep drop in its shares.
|
China is battling a rising number of cases in several major cities with lockdowns and stringent curbs that have disrupted travel and fuelled worker discontent at major AppleAAPL.O supplier Foxconn 2317.TW. Adds details, context BEIJING, Nov 3 (Reuters) - Chinese electric vehicle maker Nio NIO.N9866.HK said on Thursday it has resumed production at its two factories in the eastern city of Hefei, after COVID-19 curbs disrupted operations and delayed deliveries. "Production is resumed at the moment," said a company representative, declining to say whether it was a full or partial resumption.
|
18587.0
|
2022-11-02 00:00:00 UTC
|
Breaking Down the Earnings Picture as Estimates Fade
|
AAPL
|
https://www.nasdaq.com/articles/breaking-down-the-earnings-picture-as-estimates-fade-0
|
nan
|
nan
|
Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
The picture emerging from the 2022 Q3 earnings season continues to run counter to pre-season fears of an impending earnings cliff. Overall corporate profitability isn’t great, but it isn’t bad either. That said, estimates for the coming periods are steadily coming down, with the revisions trend accelerating in recent days.
Looking at 2022 Q3 as a whole, total S&P 500 earnings are currently expected to be up +2.0% from the same period last year on +10.7% higher revenues. Excluding contributions from the Energy sector, Q3 earnings for the rest of the index would be -5.6% below the year-earlier level.
Looking at the calendar-year picture, total S&P 500 earnings are expected to be up +5.7% in 2022 and +3.8% in 2023. On an ex-Energy basis, total 2022 index earnings would be down -1.2% (instead of +5.7%, with Energy).
The widely held view that earnings estimates remain out of sync with the economic ground reality is erroneous as it looks at the aggregate picture at the index level where estimates for the Energy sector have consistently been positive.
The focus lately has been on the disappointing results from the Tech sector, particularly the mega-cap operators Amazon AMZN, Alphabet GOOGL, Meta META, Microsoft MSFT and Apple AAPL; we have been referring to this group as the ‘Big 5 Tech Players’.
Of this group, Apple has fared a lot better, burnishing its leadership credentials and its ‘Rock of Gibraltar’ status in the eyes of its legion of supporters. That said, these results have forced us all to revisit our long-held assumptions about the sustainability of these technology leaders’ earnings power.
The market’s immediate concerns appear to be centered on the outlook for Amazon and Meta, as Alphabet and Microsoft results weren’t really that bad. Some of that differentiation was clear from the stock market reaction to the results as well, with Amazon and Meta shares really getting punished following their quarterly reports.
You can see some of this clearly in the chart below that shows the quarter-to-date performance of this group of stocks relative to the S&P 500 index.
Image Source: Zacks Investment Research
The one thing that is becoming clear after results from these ‘Big 5 Tech Players’ is that none of these players’ profitability is Teflon coated and immune from cyclical forces. Apple may be looking invincible in the afterglow of its quarterly report, but the consumer decision to purchase the company’s pricey phones and other devices remains a discretionary choice and vulnerable to economic forces.
Q3 earnings for the ‘Big 5 Tech Players’ in the aggregate are down -15.2% from the same period last year on +9.4% higher revenues, as the chart below shows.
Image Source: Zacks Investment Research
For 2022 as a whole, the group is expected to bring in -13.6% lower earnings on +5.5% higher revenues. But growth is expected to resume next year and accelerate the following year, as you can see in the chart below that shows the group’s earnings and revenue growth picture on an annual basis.
Image Source: Zacks Investment Research
A big driver of the group’s current growth challenge is the all-around margin pressures, a function of their bulging payrolls, particularly for Amazon, Meta and Alphabet. Many in the market have been suspecting for some time now that these companies are significantly over-staffed, with Amazon even acknowledging the reality. One could say that if they move into the management mode of other blue chip operators by getting on top of their expenses, they can help strengthen their profitability.
Amazon hired a ton of workers during Covid to meet the surging demand as all of us stopped going to stores. The question now is whether they need to let some of those workers go as Covid restrictions are mostly in the rear-view mirror.
In addition to the group’s margin challenge, there are two other factors that will drive their profitability over the next two years.
The first factor is the unusual impact of Covid on their profitability in the last two years. You can see some of that from the 2021 growth figures in the above chart. The chart below shows the aggregate dollar earnings and revenues for the group in the last 6 years and estimates for the next two years.
Image Source: Zacks Investment Research
You can see the unusually large gain in 2021 on account of the pandemic. The question now is whether the +58% jump in 2021 earnings brought forward profits from 2022 only or 2022 and 2023?
The second factor is related to the impact of macroeconomic forces on these companies’ profitability. Microsoft’s business was affected not only by the slump in PC demand, a function of post-Covid adjustment, but also by growth deceleration in the cloud business.
We saw similar cloud-centric challenges in the Amazon and Alphabet reports as well. This cloud deceleration is likely a reflection of companies cutting back on enterprise spending, on top of reining in digital advertising spending.
The market was under the impression that cloud spending was effectively immune from economic forces and will not experience any cuts. The numbers from Microsoft, Amazon, Alphabet and others show otherwise.
This brings us back to evaluating the seemingly Teflon-coated status of Apple’s gadgets and services.
I am of the opinion that once the Fed’s tighter policy regime produces cracks in the labor market, we will end up discovering that consumers rationally deferred replacing their older devices with newer ones. We are not there yet because the labor market is still rock solid, but we could very well reach that stage at either of the coming two quarterly reports.
The Estimate Revisions Trend
Analysts have been steadily cutting their estimates for some time now. We saw this in the run up to the start of the Q3 earnings season and the trend continues with respect to estimates for the current period (2022 Q4) and full-year 2023.
The charts below show how earnings growth expectations for the 2022 Q4, as a whole and on an ex-Energy basis, have evolved in recent weeks.
Image Source: Zacks Investment Research
The chart below shows how the expected aggregate total earnings for full-year 2023 have evolved on an ex-Energy basis.
Image Source: Zacks Investment Research
As you have consistently been pointing out, aggregate S&P 500 earnings outside of the Energy sector peaked in mid-April and have been steadily trending down ever since. In fact, S&P 500 earnings estimates in the aggregate outside of the Energy sector have declined -9.9% since mid-April, with double-digit percentage declines in Retail, Construction, Consumer Discretionary, Tech, Industrial Products and the Aerospace sectors. On the whole, estimates are down for 13 of the 16 Zacks sectors.
The Overall Earnings Picture
The chart below that provides a big-picture view of earnings on a quarterly basis.
Image Source: Zacks Investment Research
The chart below shows the overall earnings picture on an annual basis, with the growth momentum expected to continue.
Image Source: Zacks Investment Research
Please note that a big part of this year’s growth is thanks to the strong momentum in the Energy sector whose earnings are on track to grow +142.6%. Excluding this extraordinary Energy sector contribution, earnings growth for the rest of the index would be down -1.3%. This relatively flat earnings picture for this year is also in-line with the economic ground reality.
Earnings next year are expected to be up only +3.8% as a whole and +5.6% excluding the Energy sector. This magnitude of growth can hardly be called out-of-sync with a flat or even modestly down economic growth outlook. Don’t forget that headline GDP growth numbers are in real or inflation-adjusted terms while S&P 500 earnings discussed here are not.
As mentioned earlier, 2023 aggregate earnings estimates on an ex-Energy basis are already down -9.9% since mid-April. Perhaps we see a bit more downward adjustments to estimates over the coming weeks, after we have seen Q3 results. But we have nevertheless already covered some ground in taking estimates to a fair or appropriate level.
This is particularly so if whatever economic downturn lies ahead proves to be more of the garden variety rather than the last two such events. Recency bias forces us to use the last two economic downturns, which were also among the nastiest in recent history, as our reference points. But we need to be cautious against that natural tendency as the economy’s foundations at present remain unusually strong.
Just Released: Zacks Unveils the Top 5 EV Stocks for 2022
For several months now, electric vehicles have been disrupting the $82 billion automotive industry. And that disruption is only getting bigger thanks to sky-high gas prices. Even titans in the financial industry including George Soros, Jeff Bezos, and Ray Dalio have invested in this unstoppable wave. You don't want to be sitting on your hands while EV stocks break out and climb to new highs. In a new free report, Zacks is revealing the top 5 EV stocks for investors. Next year, don't look back on today wishing you had taken advantage of this opportunity.
>>Send me my free report revealing the top 5 EV stocks
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Meta Platforms, Inc. (META): Free Stock Analysis Report
To read this article on Zacks.com click here.
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.
|
The focus lately has been on the disappointing results from the Tech sector, particularly the mega-cap operators Amazon AMZN, Alphabet GOOGL, Meta META, Microsoft MSFT and Apple AAPL; we have been referring to this group as the ‘Big 5 Tech Players’. Apple Inc. (AAPL): Free Stock Analysis Report Apple may be looking invincible in the afterglow of its quarterly report, but the consumer decision to purchase the company’s pricey phones and other devices remains a discretionary choice and vulnerable to economic forces.
|
The focus lately has been on the disappointing results from the Tech sector, particularly the mega-cap operators Amazon AMZN, Alphabet GOOGL, Meta META, Microsoft MSFT and Apple AAPL; we have been referring to this group as the ‘Big 5 Tech Players’. Apple Inc. (AAPL): Free Stock Analysis Report Image Source: Zacks Investment Research The chart below shows how the expected aggregate total earnings for full-year 2023 have evolved on an ex-Energy basis.
|
The focus lately has been on the disappointing results from the Tech sector, particularly the mega-cap operators Amazon AMZN, Alphabet GOOGL, Meta META, Microsoft MSFT and Apple AAPL; we have been referring to this group as the ‘Big 5 Tech Players’. Apple Inc. (AAPL): Free Stock Analysis Report But growth is expected to resume next year and accelerate the following year, as you can see in the chart below that shows the group’s earnings and revenue growth picture on an annual basis.
|
The focus lately has been on the disappointing results from the Tech sector, particularly the mega-cap operators Amazon AMZN, Alphabet GOOGL, Meta META, Microsoft MSFT and Apple AAPL; we have been referring to this group as the ‘Big 5 Tech Players’. Apple Inc. (AAPL): Free Stock Analysis Report The first factor is the unusual impact of Covid on their profitability in the last two years.
|
18588.0
|
2022-11-02 00:00:00 UTC
|
After Hours Most Active for Nov 2, 2022 : OABI, VONG, EW, QQQ, ROKU, RTO, AAPL, TQQQ, LUMN, STLA, T, MET
|
AAPL
|
https://www.nasdaq.com/articles/after-hours-most-active-for-nov-2-2022-%3A-oabi-vong-ew-qqq-roku-rto-aapl-tqqq-lumn-stla-t
|
nan
|
nan
|
The NASDAQ 100 After Hours Indicator is down -2.88 to 10,903.46. The total After hours volume is currently 99,155,740 shares traded.
The following are the most active stocks for the after hours session:
OmniAb, Inc. (OABI) is +0.09 at $2.50, with 6,285,402 shares traded., following a 52-week high recorded in today's regular session.
Vanguard Russell 1000 Growth ETF (VONG) is +1.448 at $56.31, with 4,971,001 shares traded. This represents a 8.33% increase from its 52 Week Low.
Edwards Lifesciences Corporation (EW) is unchanged at $70.31, with 4,345,279 shares traded. As reported by Zacks, the current mean recommendation for EW is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +0.08 at $265.76, with 4,161,790 shares traded. This represents a 4.52% increase from its 52 Week Low.
Roku, Inc. (ROKU) is -8.23 at $46.09, with 3,619,567 shares traded. Smarter Analyst Reports: Roku Ends Battle with YouTube; Shares Surge 18%
Rentokil Initial plc (RTO) is unchanged at $29.63, with 3,509,034 shares traded. As reported by Zacks, the current mean recommendation for RTO is in the "buy range".
Apple Inc. (AAPL) is -0.33 at $144.70, with 3,350,670 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".
ProShares UltraPro QQQ (TQQQ) is +0.01 at $18.21, with 3,067,491 shares traded. This represents a 11.58% increase from its 52 Week Low.
Lumen Technologies, Inc. (LUMN) is -0.65 at $6.40, with 2,766,428 shares traded. Smarter Analyst Reports: Understanding Lumen Technologies’ Newly Added Risk Factors
Stellantis N.V. (STLA) is -0.11 at $13.26, with 1,937,806 shares traded. As reported by Zacks, the current mean recommendation for STLA is in the "buy range".
AT&T Inc. (T) is -0.09 at $18.34, with 1,518,275 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 81.51% of the target price of $22.5.
MetLife, Inc. (MET) is unchanged at $73.57, with 1,426,076 shares traded. As reported by Zacks, the current mean recommendation for MET 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.
|
Apple Inc. (AAPL) is -0.33 at $144.70, with 3,350,670 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". OmniAb, Inc. (OABI) is +0.09 at $2.50, with 6,285,402 shares traded., following a 52-week high recorded in today's regular session.
|
Apple Inc. (AAPL) is -0.33 at $144.70, with 3,350,670 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Smarter Analyst Reports: Roku Ends Battle with YouTube; Shares Surge 18%
|
Apple Inc. (AAPL) is -0.33 at $144.70, with 3,350,670 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 99,155,740 shares traded.
|
Apple Inc. (AAPL) is -0.33 at $144.70, with 3,350,670 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.
|
18589.0
|
2022-11-02 00:00:00 UTC
|
3 Year-End Investing Strategies You Should Consider Right Now
|
AAPL
|
https://www.nasdaq.com/articles/3-year-end-investing-strategies-you-should-consider-right-now
|
nan
|
nan
|
In a perfect world, the calendar wouldn't matter when it comes to investing. Companies would always be fairly valued based on their future prospects, and major price swings would be rare events driven by substantial changes to those prospects. In the real world, however, the calendar matters. Investors make decisions on factors like which tax year an investment choice will impact or whether or not a sale qualifies for long-term capital gains tax treatment.
Those calendar-based decisions provide opportunities to investors too. With that in mind, three Motley Fool contributors came up with year-end investing strategies worth considering right now. They highlighted dividend stocks, tax-loss harvesting, and bargain hunting. Read on to learn more about each of those strategies, and find out how they can work for you as 2022 draws closer to its end.
Image source: Getty Images.
It pays to buy a payer
Eric Volkman: The end of the year is a time when a great many companies declare dividend raises. Since many of these stocks are cheaper than they have been in quite some time thanks to the ongoing market weakness, their dividend yields are approaching highs or setting new ones.
One of the wonderful features of the U.S. stock market is that it is stuffed with regular dividend payers. So for anyone who wants steady and reliable passive income from a stock, there are plenty of choices.
Want to go for a high-yield play? You might consider a real estate investment trust (REIT), which is obligated by law to pay out at least 90% of its taxable income to shareholders. This all but guarantees a regular dividend, particularly if it comes from a veteran operator like retail properties specialist Realty Income. The company's payout -- dispensed monthly, no less -- yields 4.8% as of this writing.
Typically a rung or several down the yield ladder are blue-chip stocks, established businesses that have been mainstays on the market for years. Not all of them pay dividends and with those that do, yields can vary widely. Still, there are some relatively high-yield plays here too. For example, in the healthcare sector, AbbVie is a $260 billion industry giant with a yield above 4%.
Finally, there are the high-fliers that aren't (yet) high-yielders, but they can offer an appealing combination of share price growth and income. In this category, there are names like Apple and MGM Resorts International, a casino operator that's pushing into the high potential online and mobile betting segment.
There are dividend stocks of all shapes and sizes, for any type of investing style. It's good to mix and match among these categories, of course, but diversification usually comes down to personal taste and appetite for risk. Regardless, now's a great time to buy a dividend-paying stock or several.
Investors can make the best of a down year in 2022
Parkev Tatevosian: As the end of a challenging year for the market approaches, there is one strategy that makes the best of this situation. The bear market in 2022 makes it likely investors have holdings in their taxable brokerage accounts that are down significantly. For any stocks where your investing thesis no longer holds up, sell them and take advantage of the capital loss at tax time next year.
Specifically, the IRS allows investors who sell stocks at a loss to use those losses to reduce their tax liability. First, capital losses can offset your capital gains if you're fortunate enough to have them in 2022. But if you're like most investors with only losses to report this year, you can use them to deduct up to $3,000 annually from other sources of income like salaried wages and business earnings.
Not only that, but the IRS allows you to carry forward excess losses to future years, meaning you could harvest $10,000 in capital losses right now, take the $3,000 deduction for 2022, and still have $7,000 left over to offset future capital gains or income.
Before running with this strategy, there are other topics you must familiarize yourself with like the wash-sale rule and the effect of different holding periods on your deductions. But taking advantage of tax-loss harvesting could help you make the best of a forgettable year.
It's time to go bargain hunting
Chuck Saletta: The tax-loss harvesting strategy Parkev outlines above may be very tempting in this market. When investors start selling for tax reasons or to escape from this year's volatility, it can often put undue pressure on a company's stock price. After all, to the market, a seller is a seller, regardless of whether that person is looking to get rid of a dud of a company or simply manage their tax bill. The market finds its clearing price by balancing buyers and sellers, and if there's an excess of sellers, it tends to drive prices down.
While the overall market has spent substantial portions of 2022 down more than 20%, there are plenty of companies that have fared even worse. Some of those companies may have seen their shares get downright cheap from a valuation perspective, but for investors focused on the tax benefit or just cutting their losses, the valuation may not matter all that much.
That's where you can step in with your bargain-hunter's mentality and buy shares of solid companies at value prices. With a tool like a discounted cash flow model at your side, you can get a decent estimate of what a stock is really worth. If the market is asking for a much lower price, it could very well be a bargain just waiting for your purchase order.
It's important to note that any valuation model will at best get you a reasonable estimate. You are attempting to predict the future after all, and a company's numbers are never certain until it closes its books. Still, even with that uncertainty, if the ups and downs from a lousy year in the market make bargains available, this year-end season just might be the best time to seek out quality companies at value prices.
The clock is ticking
Regardless of what you do with your portfolio, 2022 will draw to a close in the not too distant future. If you want to take advantage of the calendar to buy dividend stocks, engage in tax-loss harvesting, or seek out bargains, your opportunity comes with an expiration date. Get started now, and give yourself the most time you can to put your plans in place.
Offer from The Motley Fool: The 10 best stocks to buy now
Our award-winning anaylst team has spent more than a decade beating the market. In fact, the newsletter they run, Motley Fool Stock Advisor, has tripled the S&P 500!*
They just revealed their ten top stock picks for investors to buy right now.
Click here to get access to the full list!
*Stock Advisor returns as of June 15, 2021
Chuck Saletta has no position in any of the stocks mentioned. Eric Volkman has positions in Apple. Parkev Tatevosian has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In this category, there are names like Apple and MGM Resorts International, a casino operator that's pushing into the high potential online and mobile betting segment. For any stocks where your investing thesis no longer holds up, sell them and take advantage of the capital loss at tax time next year. Still, even with that uncertainty, if the ups and downs from a lousy year in the market make bargains available, this year-end season just might be the best time to seek out quality companies at value prices.
|
It pays to buy a payer Eric Volkman: The end of the year is a time when a great many companies declare dividend raises. It's time to go bargain hunting Chuck Saletta: The tax-loss harvesting strategy Parkev outlines above may be very tempting in this market. If you want to take advantage of the calendar to buy dividend stocks, engage in tax-loss harvesting, or seek out bargains, your opportunity comes with an expiration date.
|
Investors can make the best of a down year in 2022 Parkev Tatevosian: As the end of a challenging year for the market approaches, there is one strategy that makes the best of this situation. For any stocks where your investing thesis no longer holds up, sell them and take advantage of the capital loss at tax time next year. When investors start selling for tax reasons or to escape from this year's volatility, it can often put undue pressure on a company's stock price.
|
Investors make decisions on factors like which tax year an investment choice will impact or whether or not a sale qualifies for long-term capital gains tax treatment. Investors can make the best of a down year in 2022 Parkev Tatevosian: As the end of a challenging year for the market approaches, there is one strategy that makes the best of this situation. If you want to take advantage of the calendar to buy dividend stocks, engage in tax-loss harvesting, or seek out bargains, your opportunity comes with an expiration date.
|
18590.0
|
2022-11-02 00:00:00 UTC
|
Qualcomm forecasts earnings below estimates as smartphone market weakens
|
AAPL
|
https://www.nasdaq.com/articles/qualcomm-forecasts-earnings-below-estimates-as-smartphone-market-weakens
|
nan
|
nan
|
Nov 2 (Reuters) - Smartphone chipmaker Qualcomm Inc QCOM.O forecast first-quarter revenue and profit below Wall Street estimates on Wednesday as its chip business was slammed by slowing demand for mobile phones in the face of surging prices globally.
Decades-high inflation, the Ukraine war, COVID-19 lockdowns in China and fears of an economic slowdown have soured demand for personal electronics as consumers abandon discretionary spending on items such as mobile phones.
That in turn led to a 12% drop in smartphone unit shipments in the third quarter ended September, according to Counterpoint Research.
Qualcomm expects a low double-digit percentage decline in handset volumes this year, compared with its prior forecast of a mid-single-digit percentage drop.
Revenue from Qualcomm's handsets business, which makes up more than half of total sales, rose 40% in the fourth quarter, while revenue from chips that enable WiFi and Bluetooth connections fell 20%.
The company forecast current-quarter revenue in the range of $9.2 billion and $10 billion, compared with analysts' estimates of $12.02 billion, according to Refinitiv data.
It expects adjusted earnings per share to be between $2.25 and $2.45, compared with analysts' expectations of $3.42.
(Reporting by Chavi Mehta in Bengaluru and Jane Lanhee Lee in Oakland; Editing by Anil D'Silva)
((Chavi.Mehta@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Nov 2 (Reuters) - Smartphone chipmaker Qualcomm Inc QCOM.O forecast first-quarter revenue and profit below Wall Street estimates on Wednesday as its chip business was slammed by slowing demand for mobile phones in the face of surging prices globally. Decades-high inflation, the Ukraine war, COVID-19 lockdowns in China and fears of an economic slowdown have soured demand for personal electronics as consumers abandon discretionary spending on items such as mobile phones. That in turn led to a 12% drop in smartphone unit shipments in the third quarter ended September, according to Counterpoint Research.
|
Qualcomm expects a low double-digit percentage decline in handset volumes this year, compared with its prior forecast of a mid-single-digit percentage drop. Revenue from Qualcomm's handsets business, which makes up more than half of total sales, rose 40% in the fourth quarter, while revenue from chips that enable WiFi and Bluetooth connections fell 20%. The company forecast current-quarter revenue in the range of $9.2 billion and $10 billion, compared with analysts' estimates of $12.02 billion, according to Refinitiv data.
|
Nov 2 (Reuters) - Smartphone chipmaker Qualcomm Inc QCOM.O forecast first-quarter revenue and profit below Wall Street estimates on Wednesday as its chip business was slammed by slowing demand for mobile phones in the face of surging prices globally. Qualcomm expects a low double-digit percentage decline in handset volumes this year, compared with its prior forecast of a mid-single-digit percentage drop. The company forecast current-quarter revenue in the range of $9.2 billion and $10 billion, compared with analysts' estimates of $12.02 billion, according to Refinitiv data.
|
Nov 2 (Reuters) - Smartphone chipmaker Qualcomm Inc QCOM.O forecast first-quarter revenue and profit below Wall Street estimates on Wednesday as its chip business was slammed by slowing demand for mobile phones in the face of surging prices globally. Decades-high inflation, the Ukraine war, COVID-19 lockdowns in China and fears of an economic slowdown have soured demand for personal electronics as consumers abandon discretionary spending on items such as mobile phones. That in turn led to a 12% drop in smartphone unit shipments in the third quarter ended September, according to Counterpoint Research.
|
18591.0
|
2022-11-02 00:00:00 UTC
|
AAPL, NFLX, AMZN: Which FAANG Stock Does Wall Street Expect to Rise the Most?
|
AAPL
|
https://www.nasdaq.com/articles/aapl-nflx-amzn%3A-which-faang-stock-does-wall-street-expect-to-rise-the-most
|
nan
|
nan
|
FAANG – five of the most prominent tech companies: Meta Platforms (META), previously called Facebook, Amazon (AMZN), Apple (AAPL), Netflix (NFLX), and Google’s parent company Alphabet (GOOGL) (GOOG), recently reported their quarterly results. Here we will discuss analysts’ opinions on three FAANG stocks following their results and use TipRanks’ Stock Comparison Tool to pick the one with the highest upside potential.
Apple (NASDAQ:AAPL) Stock
Apple’s fiscal fourth-quarter results (ended September 24, 2022) exceeded analysts' expectations, reflecting resilience amid challenging macro conditions. The company’s sales grew 8.1% to $90.1 billion, while earnings per share (EPS) grew 4% to $1.29.
Sales from iPhone, the largest revenue contributor, grew almost 10% to $42.6 billion but lagged expectations. Also, Services sales of $19.2 billion rose 5% and fell short of estimates. It’s worth noting that Mac sales increased 25.4% to $11.5 billion, defying the broader industry trend of lower PC shipments.
While Apple’s overall performance was impressive, the company cautioned that revenue growth in the December quarter would be lower than the Q4 growth rate.
Is Apple a Buy or Sell Now?
Evercore ISI analyst Amit Daryanani feels that Apple delivered an “impressive set of numbers and guide,” given the dismal earnings reported by other tech giants. Daryanani stated, “Eventually the question will be on durability of demand beyond Dec-qtr and the impact from macro not just on iPhones but also services.”
The analyst feels that Apple is “uniquely positioned” to maintain mid or high single-digit top-line growth and low or mid-teens EPS growth on a multi-year basis. Daryanani expects EPS growth to be driven by higher gross margin resulting from easing supply chain issues, operating expense controls, and share buybacks. Daryanani reaffirmed a Buy rating on Apple stock and a price target of $190.
Overall, Apple stock scores a Strong Buy consensus rating based on 20 Buys and four Holds. The average AAPL stock price target of $181.25 implies 20.3% upside potential. Shares have declined 15.2% year-to-date.
Netflix (NASDAQ:NFLX) Stock
The loss of subscribers in the first two quarters of the year had spooked Netflix investors. The company’s Q3 beat was cheered by investors, with the company adding 2.41 million net subscribers in the quarter. Subscriber additions exceeded the company’s own guidance of 1 million and also crushed the Street’s estimate of 1.09 million.
As part of its plan to reaccelerate growth, Netflix is launching a lower-priced ad-supported plan in 12 countries in November. The ad-based plan is not expected to make a material difference to the fourth quarter. Netflix expects 4.5 million paid net additions in the fourth quarter.
What is the Prediction for Netflix Stock?
Following the recent results, Deutsche Bank analyst Bryan Kraft upgraded Netflix stock to a Buy from Hold and increased the price target to $350 from $270.
Kraft sees “visibility into a subscriber growth inflection point” next year due to the introduction of new measures to monetize account sharing in early 2023 and the launch of ad-supported plans.
Overall, the Street is cautiously optimistic on Netflix stock, with a Moderate Buy consensus rating based on 13 Buys, 14 Holds, and four Sells. At $284.20, the average NFLX stock price target suggests a marginal downside from current levels. Netflix stock has plunged 52.4% so far this year.
Amazon (NASDAQ:AMZN) Stock
Amazon’s mixed Q3 results and lower-than-anticipated Q4 sales guidance dragged down the stock. After reporting losses in the first two quarters, the company generated EPS of $0.28 in Q3, beating the Street’s estimate of $0.22. Q3 sales grew 15% to $127.1 billion but lagged expectations. Amazon's Q4 guidance indicates sales growth in the range of 2% to 8%.
Amazon’s outlook and the Q3 sales guidance miss reflect the impact of macro challenges on consumer spending. Also, currency headwinds, which impacted Q3 sales by $5 billion, remain a concern. Moreover, the company’s high-margin Amazon Web Services (AWS) cloud computing business delivered sales growth of 27%, marking the slowest revenue growth since at least 2014.
On the positive side, Amazon’s advertising revenue increased 25% to about $9.6 billion, bucking the negative trend experienced by certain ad-dependent tech companies.
Is Amazon Stock Expected to Rise?
Several analysts cut their price targets for Amazon stock to reflect near-term concerns. However, they reaffirmed their bullish stance, indicating confidence in the company’s long-term growth.
Raymond James analyst Aaron Kessler lowered his price target for Amazon stock to $130 from $164 due to the slowdown in AWS growth and lower Q4 gross margin expectations. However, Kessler maintained a Buy rating on Amazon stock.
Kessler explained, “While we expect a more challenging growth outlook near-term, we remain positive on long-term growth for both retail and AWS with improving margins over time as Amazon focuses on productivity improvements.”
On TipRanks, Amazon stock earns a Strong Buy consensus rating based on 31 Buys versus one Hold. The average Amazon stock target price of $140.29 implies 45% upside potential. Shares have tanked 42% so far in 2022.
Conclusion
Analysts are more bullish about Apple and Amazon than Netflix. Wall Street expects higher upside potential in AMZN stock than the other two stocks.
Analysts are looking beyond the near-term weakness in Amazon and remain optimistic about the company's long-term growth story. They view the current pullback in Amazon stock as a great opportunity to buy this FAANG stock.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
FAANG – five of the most prominent tech companies: Meta Platforms (META), previously called Facebook, Amazon (AMZN), Apple (AAPL), Netflix (NFLX), and Google’s parent company Alphabet (GOOGL) (GOOG), recently reported their quarterly results. Apple (NASDAQ:AAPL) Stock Apple’s fiscal fourth-quarter results (ended September 24, 2022) exceeded analysts' expectations, reflecting resilience amid challenging macro conditions. The average AAPL stock price target of $181.25 implies 20.3% upside potential.
|
FAANG – five of the most prominent tech companies: Meta Platforms (META), previously called Facebook, Amazon (AMZN), Apple (AAPL), Netflix (NFLX), and Google’s parent company Alphabet (GOOGL) (GOOG), recently reported their quarterly results. Apple (NASDAQ:AAPL) Stock Apple’s fiscal fourth-quarter results (ended September 24, 2022) exceeded analysts' expectations, reflecting resilience amid challenging macro conditions. The average AAPL stock price target of $181.25 implies 20.3% upside potential.
|
FAANG – five of the most prominent tech companies: Meta Platforms (META), previously called Facebook, Amazon (AMZN), Apple (AAPL), Netflix (NFLX), and Google’s parent company Alphabet (GOOGL) (GOOG), recently reported their quarterly results. Apple (NASDAQ:AAPL) Stock Apple’s fiscal fourth-quarter results (ended September 24, 2022) exceeded analysts' expectations, reflecting resilience amid challenging macro conditions. The average AAPL stock price target of $181.25 implies 20.3% upside potential.
|
FAANG – five of the most prominent tech companies: Meta Platforms (META), previously called Facebook, Amazon (AMZN), Apple (AAPL), Netflix (NFLX), and Google’s parent company Alphabet (GOOGL) (GOOG), recently reported their quarterly results. Apple (NASDAQ:AAPL) Stock Apple’s fiscal fourth-quarter results (ended September 24, 2022) exceeded analysts' expectations, reflecting resilience amid challenging macro conditions. The average AAPL stock price target of $181.25 implies 20.3% upside potential.
|
18592.0
|
2022-11-02 00:00:00 UTC
|
Nasdaq Bear Market: 1 Stock That Could Weather the Storm
|
AAPL
|
https://www.nasdaq.com/articles/nasdaq-bear-market%3A-1-stock-that-could-weather-the-storm
|
nan
|
nan
|
The Nasdaq Composite, a tech-heavy index, has gotten beaten up in 2022. With the steep drop in tech stock interest and the struggles that many stocks in the index have had, the Nasdaq is down more than 29% year to date.
Apple (NASDAQ: AAPL) is the largest component of the Nasdaq Composite, making up almost 13% of the index as of Sept. 30. Considering Apple is down only 12% year to date, it is helping to prop up the index. This stock price resiliency is due to Apple's operational resiliency. While other big tech companies are crashing and burning after reporting earnings, Apple continues to chug along and post stable results.
Apple seems to be weathering the storm of an uncertain global economy right now, but let's find out why that could continue and why you might want to buy shares of this stock if you're looking to take advantage of the Nasdaq bear market.
Image source: Getty Images.
Steady execution, no matter the climate
Since Apple was founded almost five decades ago, the company has developed one of the strongest brand names ever in the consumer-facing tech space. The company sells hundreds of billions of dollars worth of iPhones, Macs, iPads, and wearable devices every year worldwide, illustrating its unrivaled scale. This has helped Apple control over 55% of the U.S. smartphone industry as of September, according to Oberlo.
Apple's brand strength has stemmed from its high-quality products. As of its fiscal fourth quarter, which ended Sept. 24, iPhone customer satisfaction in the U.S. was 98%. Therefore, it will be incredibly difficult for a rival to penetrate the company's dominant position, considering its products are loved by consumers.
These powerful competitive advantages have helped the company see robust results despite the uncertain global economic environment. In Q4, Apple posted total sales of $90.1 billion, which was up 8% year over year. Considering consumers generally spend less on discretionary goods like new phones during economic turmoil, this is a testament to the near-impenetrable moat that Apple has built.
Another reason Apple's results have continued to stay healthy is its revenue diversification. Not only does Apple generate revenue from its iPhones and Macs, but it has gradually expanded into other business segments like wearable devices, as well as services and subscriptions. Apple's services business includes subscriptions to products like Apple TV and Apple Music, as well as advertising and payment services. Therefore, when one business segment struggles, another is often there to pick up the slack.
This was abundantly clear in Q4 when Apple's iPad sales slumped 13% year over year to $7.2 billion, but Mac sales soared 25% to $11.5 billion over the same period.
The best cash generator on the market?
The company has impressive competitive advantages that have helped it remain fairly resilient, but nothing can be more valuable during a bear market than cash flows. Luckily for Apple, it has built a business that practically prints money. During the last fiscal year, Apple generated more than $122 billion in cash from operations, which is unrivaled by any other big tech company.
In an uneasy macro environment, cash is king. Not only does it allow businesses to avoid financing with debt during a precarious time, but with enough cash, companies can continue investing heavily into their core business while rivals are forced to pull back spending. Given Apple's impressive cash generation (with just $11 billion in short-term debt on the balance sheet), it is positioned nicely to continue investing and thrive over the long haul.
This stable stock could be for you
Apple's fourth quarter proved why the company is handily outperforming the Nasdaq this year. While other companies are seeing demand stagnate and cash flows fall, Apple is leaning on its competitive advantages to continue thriving. Chances are high that the company will come out more powerful than ever from this downdraft in the economy.
Considering Apple is one of the biggest companies in the world with a market capitalization of $2.5 trillion, it might not be the best investment if you're looking for the next big winner. If you're looking to buy a healthy company to build your portfolio around, however, Apple looks like a great place to park cash today.
10 stocks we like better than Apple
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 30, 2022
Jamie Louko has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple (NASDAQ: AAPL) is the largest component of the Nasdaq Composite, making up almost 13% of the index as of Sept. 30. Steady execution, no matter the climate Since Apple was founded almost five decades ago, the company has developed one of the strongest brand names ever in the consumer-facing tech space. The company sells hundreds of billions of dollars worth of iPhones, Macs, iPads, and wearable devices every year worldwide, illustrating its unrivaled scale.
|
Apple (NASDAQ: AAPL) is the largest component of the Nasdaq Composite, making up almost 13% of the index as of Sept. 30. These powerful competitive advantages have helped the company see robust results despite the uncertain global economic environment. During the last fiscal year, Apple generated more than $122 billion in cash from operations, which is unrivaled by any other big tech company.
|
Apple (NASDAQ: AAPL) is the largest component of the Nasdaq Composite, making up almost 13% of the index as of Sept. 30. Apple's services business includes subscriptions to products like Apple TV and Apple Music, as well as advertising and payment services. During the last fiscal year, Apple generated more than $122 billion in cash from operations, which is unrivaled by any other big tech company.
|
Apple (NASDAQ: AAPL) is the largest component of the Nasdaq Composite, making up almost 13% of the index as of Sept. 30. With the steep drop in tech stock interest and the struggles that many stocks in the index have had, the Nasdaq is down more than 29% year to date. During the last fiscal year, Apple generated more than $122 billion in cash from operations, which is unrivaled by any other big tech company.
|
18593.0
|
2022-11-02 00:00:00 UTC
|
Reddit’s 7 Most Popular Meme Stocks Ranked From Best to Worst
|
AAPL
|
https://www.nasdaq.com/articles/reddits-7-most-popular-meme-stocks-ranked-from-best-to-worst
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
With social media-driven investments dominating headlines, it was no surprise that Reddit’s most popular meme stocks garnered tremendous interest in 2021. Unfortunately, circumstances have not panned out well. Primarily, the Federal Reserve may be to “blame,” if you will. Due to wild fluctuations in the M2 money stock, investor sentiment understandably slipped.
Now, before we begin this discussion of Reddit’s most popular meme stocks, it’s confession time. I’m not entirely sure whether these ideas represent the absolute most fashionable market plays. Instead, I elected names that various publications focused on while incorporating some diverse industries. That way, we’re not just talking about one specific sector.
Further, I used Gurufocus.com to provide an objective ranking of the selected Reddit’s most popular meme stocks by financial stability. While you or I might not agree with the ranking itself, I simply stuck with what was presented. That way, we have an objective baseline to work with.
Without further ado, here are Reddit’s most popular meme stocks ranked from best to worst.
META Meta Platforms $92.93
AAPL Apple $149.51
NFLX Netflix $280.17
AMZN Amazon $94.78
OXY Occidental Petroleum $72.31
BBBY Bed Bath & Beyond $4.30
SOFI SoFi Technologies $5.18
Meta Platforms (META)
Source: Aleem Zahid Khan / Shutterstock.com
A social media giant turned into a metaverse specialist, Meta Platforms (NASDAQ:META) undoubtedly saw itself in a different position than where it is right now. Bluntly speaking, the next generation of digital connectivity doesn’t look inspiring for Meta. Further, the company’s increased capital expenditures on its metaverse initiatives raise alarm among several analysts. At the time of writing, META hemorrhaged nearly 72% of equity value on a year-to-date basis.
Despite the metaverse miscues, fundamental investors should see tremendous value in the otherwise sterling organization. For instance, the company’s three-year revenue growth rate stands at 29.2%, better than 79% of its peers. On the bottom line, Meta’s net margin is 24.4%, ranked better than 85% of the competition. As well, it features a return on equity (ROE) of nearly 23%, reflecting a very high-quality business.
Plus, you can make the case that META represents a significantly undervalued business. For example, its forward price-earnings ratio is 11.8 times, lower than the industry’s median of 15.7 times. Sure, as a name among Reddit’s most popular meme stocks, META presents risks. However, it’s arguably the smart way to speculate.
Apple (AAPL)
Source: Eric Broder Van Dyke / Shutterstock.com
One of the most powerful companies in the world, Apple (NASDAQ:AAPL) utterly dominates the consumer electronics space. Still, even this dominance hasn’t been enough to spare AAPL from volatility. Since the beginning of this year, shares fell over 17%. Nevertheless, it’s a far better performance than what the underlying Nasdaq Composite index put up. It’s down over 31% during the same period.
A major reason why Apple outperformed its tech peers centers on its brand power. Even with economic woes, consumers can’t get enough of Apple’s latest gadgets and gizmos. Naturally, this brand power shows up on the financials. For instance, Apple’s three-year revenue growth rate stands at 20%, much higher than the hardware industry’s median rate of 2.85%.
Additionally, the tech giant lights up the profitability angle. For example, its net margin stands at a whopping 25.3%. That’s ranked higher than almost 96% of the industry. Furthermore, the company’s ROE is over 160%, reflecting an extremely high business quality. As one of Reddit’s most popular meme stocks, you really can’t go wrong with AAPL.
Netflix (NFLX)
Source: xalien / Shutterstock
During the immediate aftermath of the coronavirus pandemic, Netflix (NASDAQ:NFLX) eventually made its way toward record highs. Essentially, the streaming service provider benefitted handsomely from a captive audience. But toward the latter half of 2021 and well into 2022, the revenge travel phenomenon took over. Suddenly, people wanted real experiences over digital ones, leaving NFLX reeling. Shares fell 52% YTD.
Despite the turmoil, NFLX ranks among Reddit’s most popular meme stocks. Fundamentally, investors took great encouragement at Netflix beating expectations for the third quarter of 2022. What could be intriguing here is that the entertainment space may be on a pivot to the living room. Part of this dynamic may stem from consumers seeking cheaper means of entertainment. If so, NFLX may once again represent a handsome beneficiary.
Financially, Netflix still delivers the goodies for prospective stakeholders. Both of its core revenue and profitability metrics stand well above industry norms. Plus, the company has a stable balance sheet, characterized by an Altman Z-Score of 4.53, indicating low bankruptcy risk.
Amazon (AMZN)
Source: Tada Images / Shutterstock.com
With economic headwinds brewing (in part due to the fluctuations and vagaries of Fed policy) consumer sentiment carries vulnerabilities. You know circumstances are bad when the storms also negatively impact e-commerce giant Amazon (NASDAQ:AMZN). For once, Amazon understands what it’s like to get the wind knocked out of it. Since the beginning of the year, AMZN dropped over 43% of its equity value.
While a tough pill to swallow for many stakeholders, AMZN consistently ranks among Reddit’s most popular meme stocks. Fundamentally, it’s not a bad place to put your money to work (even though right now, it’s getting worked). For example, Amazon’s three-year revenue growth rate stands at 25.1%, above nearly 87% of its peers. Also, its book growth rate during the same period is 45.2%, higher than nearly 92% of the underlying sector.
Further, Amazon enjoys some stability in the balance sheet, though the circumstances this year haven’t helped. Nevertheless, Amazon’s Altman Z-Score is nearly 3.7, which is still on the safe zone regarding potential bankruptcy risk.
Occidental Petroleum (OXY)
Source: zhengzaishuru / Shutterstock.com
With Occidental Petroleum (NYSE:OXY), we’re moving into the riskier realm of Reddit’s most popular meme stocks. To be clear, on paper, it doesn’t look that way. Since the January opener, OXY skyrocketed to the tune of almost 138%. Presently, Occidental enjoys a market capitalization of $67.6 billion. If anybody cleaned up during the wild events of 2022, it’s OXY.
Of course, many meme traders jumped aboard Occidental because of legendary investor Warren Buffett’s enthusiasm for the energy company. So, while OXY might be one of Reddit’s most popular meme stocks, it doesn’t necessarily mean you should buy it. Primarily, Gurufocus.com labels Occidental’s business as significantly overvalued.
At the moment, the company’s price-to-book ratio is 3.8 times, well above the oil and gas sector’s median of 1.35. As well, Occidental features a cash-to-debt ratio of 0.06 times, which is lower than 86% of its peers. In other words, while OXY isn’t a bad investment, better ideas exist.
Bed Bath & Beyond (BBBY)
Source: Shutter_M / Shutterstock
Easily one of Reddit’s most popular meme stocks based on earlier hype this year, Bed Bath & Beyond (NASDAQ:BBBY) initially attracted contrarians based on its turnaround potential. Sadly, circumstances didn’t pan out that way, with key supporters dumping shares. Such actions demonstrated the capricious nature of meme trades, yet some folks decided to press on. Presently, BBBY incurred a loss of nearly 71% YTD.
According to Gurufocus.com, BBBY may represent a possible value trap. For instance, you’ll notice that its price-to-sales ratio is 0.06 times, favorably below almost 98% of the competition. But then, you look at the three-year revenue growth rate (on a per-share basis) and you’ll notice that it’s negative. What should really scare folks about this figure is that shares outstanding generally declined over the past several quarters. If anything, revenue per share should increase since fewer shares are available to the public. That it still trends negatively suggests deeply seated problems. Unless you have good reason to invest in BBBY, most market participants should step away.
SoFi Technologies (SOFI)
Source: Michael Vi / Shutterstock
One of the popular financial technology (fintech) firms, SoFi Technologies (NASDAQ:SOFI) generated plenty of buzz as a leading name among Reddit’s most popular meme stocks. However, the company continues to suffer fundamental challenges. Therefore, Wall Street has taken a dim view of SOFI stock. Since the start of the year, shares dropped over 63% in equity value.
To be fair, SOFI did pop up on the Tuesday session by more than 5%. The underlying company beat expectations in the third quarter for revenue and pared down the expected earnings loss. One analyst mentioned that SoFi’s Q3 report was outstanding, leading to broader enthusiasm following the disclosure.
While I’ll give credit where it’s due, it’s also important to realize that one quarterly report usually doesn’t change the entire narrative. Fundamentally, a major concern centers on share dilution. For instance, at the end of 2020, SoFi’s shares outstanding count hit 116.2 million. A year later, this metric ballooned to over 828 million. With myriad headwinds built into the economy, now might not be the best time to speculate on dilutive investments.
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 Reddit’s 7 Most Popular Meme Stocks Ranked From Best to Worst 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.
|
META Meta Platforms $92.93 AAPL Apple $149.51 NFLX Netflix $280.17 AMZN Amazon $94.78 OXY Occidental Petroleum $72.31 BBBY Bed Bath & Beyond $4.30 SOFI SoFi Technologies $5.18 Meta Platforms (META) Source: Aleem Zahid Khan / Shutterstock.com A social media giant turned into a metaverse specialist, Meta Platforms (NASDAQ:META) undoubtedly saw itself in a different position than where it is right now. Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com One of the most powerful companies in the world, Apple (NASDAQ:AAPL) utterly dominates the consumer electronics space. Still, even this dominance hasn’t been enough to spare AAPL from volatility.
|
META Meta Platforms $92.93 AAPL Apple $149.51 NFLX Netflix $280.17 AMZN Amazon $94.78 OXY Occidental Petroleum $72.31 BBBY Bed Bath & Beyond $4.30 SOFI SoFi Technologies $5.18 Meta Platforms (META) Source: Aleem Zahid Khan / Shutterstock.com A social media giant turned into a metaverse specialist, Meta Platforms (NASDAQ:META) undoubtedly saw itself in a different position than where it is right now. Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com One of the most powerful companies in the world, Apple (NASDAQ:AAPL) utterly dominates the consumer electronics space. Still, even this dominance hasn’t been enough to spare AAPL from volatility.
|
META Meta Platforms $92.93 AAPL Apple $149.51 NFLX Netflix $280.17 AMZN Amazon $94.78 OXY Occidental Petroleum $72.31 BBBY Bed Bath & Beyond $4.30 SOFI SoFi Technologies $5.18 Meta Platforms (META) Source: Aleem Zahid Khan / Shutterstock.com A social media giant turned into a metaverse specialist, Meta Platforms (NASDAQ:META) undoubtedly saw itself in a different position than where it is right now. Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com One of the most powerful companies in the world, Apple (NASDAQ:AAPL) utterly dominates the consumer electronics space. Still, even this dominance hasn’t been enough to spare AAPL from volatility.
|
META Meta Platforms $92.93 AAPL Apple $149.51 NFLX Netflix $280.17 AMZN Amazon $94.78 OXY Occidental Petroleum $72.31 BBBY Bed Bath & Beyond $4.30 SOFI SoFi Technologies $5.18 Meta Platforms (META) Source: Aleem Zahid Khan / Shutterstock.com A social media giant turned into a metaverse specialist, Meta Platforms (NASDAQ:META) undoubtedly saw itself in a different position than where it is right now. Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com One of the most powerful companies in the world, Apple (NASDAQ:AAPL) utterly dominates the consumer electronics space. Still, even this dominance hasn’t been enough to spare AAPL from volatility.
|
18594.0
|
2022-11-02 00:00:00 UTC
|
Should BNY Mellon US Large Cap Core Equity ETF (BKLC) Be on Your Investing Radar?
|
AAPL
|
https://www.nasdaq.com/articles/should-bny-mellon-us-large-cap-core-equity-etf-bklc-be-on-your-investing-radar-3
|
nan
|
nan
|
Launched on 04/09/2020, the BNY Mellon US Large Cap Core Equity ETF (BKLC) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Bny Mellon. It has amassed assets over $435.79 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
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.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0%, making it the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.56%.
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 30.40% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.65% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 33.35% of total assets under management.
Performance and Risk
BKLC seeks to match the performance of the MORNINGSTAR U.S. LARGE CAP INDEX before fees and expenses. The Morningstar US Large Cap Index is a float-adjusted market capitalization weighted index designed to measure the performance of U.S. large-capitalization stocks.
The ETF has lost about -20.45% so far this year and is down about -17.32% in the last one year (as of 11/02/2022). In the past 52-week period, it has traded between $65.88 and $90.50.
The ETF has a beta of 1.04 and standard deviation of 19.97% for the trailing three-year period. With about 218 holdings, it effectively diversifies company-specific risk.
Alternatives
BNY Mellon US Large Cap Core Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, BKLC is a good option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $293.47 billion in assets, SPDR S&P 500 ETF has $366.81 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.
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
BNY Mellon US Large Cap Core Equity ETF (BKLC): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.65% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report It has amassed assets over $435.79 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.
|
Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.65% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 04/09/2020, the BNY Mellon US Large Cap Core Equity ETF (BKLC) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
|
Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.65% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives BNY Mellon US Large Cap Core Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
|
Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.65% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 04/09/2020, the BNY Mellon US Large Cap Core Equity ETF (BKLC) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
|
18595.0
|
2022-11-02 00:00:00 UTC
|
Should Schwab U.S. LargeCap ETF (SCHX) Be on Your Investing Radar?
|
AAPL
|
https://www.nasdaq.com/articles/should-schwab-u.s.-largecap-etf-schx-be-on-your-investing-radar-4
|
nan
|
nan
|
Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Schwab U.S. LargeCap ETF (SCHX) is a passively managed exchange traded fund launched on 11/03/2009.
The fund is sponsored by Charles Schwab. It has amassed assets over $29.41 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.03%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.63%.
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 27.30% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.78% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 26.15% of total assets under management.
Performance and Risk
SCHX seeks to match the performance of the Dow Jones U.S. Large-Cap Total Stock Market Index before fees and expenses. The Dow Jones U.S. Large-Cap Total Stock Market measures all U.S. equity securities with readily available prices. The index includes approximately the largest 750 stocks and is float-adjusted market-capitalization weighted.
The ETF has lost about -19.60% so far this year and is down about -17.03% in the last one year (as of 11/02/2022). In the past 52-week period, it has traded between $42.25 and $57.29.
The ETF has a beta of 1.01 and standard deviation of 25% for the trailing three-year period, making it a medium risk choice in the space. With about 756 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab U.S. LargeCap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SCHX is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $293.47 billion in assets, SPDR S&P 500 ETF has $366.81 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
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 ETF (SCHX): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.78% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Schwab U.S. LargeCap ETF (SCHX) is a passively managed exchange traded fund launched on 11/03/2009.
|
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.78% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Schwab U.S. LargeCap ETF (SCHX) is a passively managed exchange traded fund launched on 11/03/2009.
|
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.78% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives Schwab U.S. LargeCap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
|
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.78% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report It has amassed assets over $29.41 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
|
18596.0
|
2022-11-02 00:00:00 UTC
|
Apple reseller Redington Q2 profit up as India sales of phones, laptops rise
|
AAPL
|
https://www.nasdaq.com/articles/apple-reseller-redington-q2-profit-up-as-india-sales-of-phones-laptops-rise
|
nan
|
nan
|
BENGALURU, Nov 2 (Reuters) - India's biggest Apple and IT products distributor Redington Ltd REDI.NS on Thursday reported a 26% jump in September quarter profit on the back of buoyant domestic demand for phones, laptops and software.
Consolidated profit for the three months ended Sept. 30 climbed to 3.87 billion rupees ($46.76 million) from 3.07 billion rupees a year ago, the company said in an exchange filing.
The iPhone reseller's quarterly revenue rose to 190.51 billion rupees from 152.87 billion rupees a year ago, per the filing. Apple, its single largest vendor, accounted for 27% of the revenue.
India distribution business continued to post double digit growth, Redington said. The company also caters to Singapore, Turkey, the Middle East and the African continent. Meanwhile, the share of revenue from mobility devices rose to 25% from 23% a year ago.
The pandemic benefited companies like Redington, which sells everything from smartphones to personal computers and software to consumers and businesses across 38 countries, as it led to spike in demand with most enterprises embracing work from home.
Earnings before interest, taxes, depreciation and amortization (EBITDA), or core earnings, grew nearly 23% to 5.62 billion rupees, the company said in an investor presentation.
Redington shares rose as much as 11.2% to 152.70 rupees after the earnings.
($1 = 82.7600 Indian rupees)
(Reporting by Nandan Mandayam in Bengaluru; Editing by Dhanya Ann Thoppil)
((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
BENGALURU, Nov 2 (Reuters) - India's biggest Apple and IT products distributor Redington Ltd REDI.NS on Thursday reported a 26% jump in September quarter profit on the back of buoyant domestic demand for phones, laptops and software. India distribution business continued to post double digit growth, Redington said. The pandemic benefited companies like Redington, which sells everything from smartphones to personal computers and software to consumers and businesses across 38 countries, as it led to spike in demand with most enterprises embracing work from home.
|
Consolidated profit for the three months ended Sept. 30 climbed to 3.87 billion rupees ($46.76 million) from 3.07 billion rupees a year ago, the company said in an exchange filing. The iPhone reseller's quarterly revenue rose to 190.51 billion rupees from 152.87 billion rupees a year ago, per the filing. Meanwhile, the share of revenue from mobility devices rose to 25% from 23% a year ago.
|
BENGALURU, Nov 2 (Reuters) - India's biggest Apple and IT products distributor Redington Ltd REDI.NS on Thursday reported a 26% jump in September quarter profit on the back of buoyant domestic demand for phones, laptops and software. Consolidated profit for the three months ended Sept. 30 climbed to 3.87 billion rupees ($46.76 million) from 3.07 billion rupees a year ago, the company said in an exchange filing. The iPhone reseller's quarterly revenue rose to 190.51 billion rupees from 152.87 billion rupees a year ago, per the filing.
|
BENGALURU, Nov 2 (Reuters) - India's biggest Apple and IT products distributor Redington Ltd REDI.NS on Thursday reported a 26% jump in September quarter profit on the back of buoyant domestic demand for phones, laptops and software. The iPhone reseller's quarterly revenue rose to 190.51 billion rupees from 152.87 billion rupees a year ago, per the filing. Apple, its single largest vendor, accounted for 27% of the revenue.
|
18597.0
|
2022-11-02 00:00:00 UTC
|
Chinese zone housing major Apple iPhone plant imposes fresh lockdown
|
AAPL
|
https://www.nasdaq.com/articles/chinese-zone-housing-major-apple-iphone-plant-imposes-fresh-lockdown
|
nan
|
nan
|
By Brenda Goh
Nov 2 (Reuters) - A Chinese industral park that hosts an iPhone factory belonging to Foxconn 2317.TW announced a fresh COVID-19 lockdown on Wednesday, raising questions about its impact on the Apple AAPL.O supplier's efforts to quell discontent at the factory.
The Zhengzhou Airport Economy Zone in central China said it would impose "silent management" measures with immediate effect including barring all residents from going out and only allowing approved vehicles no the roads. The curbs will stay in place until Nov. 9, it said.
Foxconn, formally Hon Hai Precision Industry Co Ltd, is Apple's biggest iPhone maker, producing 70% of iPhone shipments globally. It makes most of the phones at the Zhengzhou plant where it employs about 200,000 people, though it has other smaller production sites in India and south China.
The industrial park's notice did not specify how the measures might be applied to Foxconn. Foxconn and Apple did not immediately respond to a request for comment.
Foxconn has been working to retain staff and smooth over tensions in the factory, after workers complained about their treatment and provisions under COVID-19 prevention measures. Several employees also fled the factory, prompting Foxconn to offer generous bonuses to retain staff.
The park also locked down earlier this year in late April for 14 days. Foxconn said at the time that its production at the plant was normal.
Wednesday's lockdown marks a re-tightening of measures in Zhengzhou, which unexpectedly lifted a quasi-lockdown on its nearly 13 million people the day before. The city reported 358 locally transmitted cases for Tuesday, up from 95 the day before.
(Reporting by Brenda Goh; Additional reporting by Yimou Lee in Taipei; Editing by Jacqueline Wong and Stephen Coates)
((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters Messaging: brenda.goh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Brenda Goh Nov 2 (Reuters) - A Chinese industral park that hosts an iPhone factory belonging to Foxconn 2317.TW announced a fresh COVID-19 lockdown on Wednesday, raising questions about its impact on the Apple AAPL.O supplier's efforts to quell discontent at the factory. The Zhengzhou Airport Economy Zone in central China said it would impose "silent management" measures with immediate effect including barring all residents from going out and only allowing approved vehicles no the roads. Foxconn has been working to retain staff and smooth over tensions in the factory, after workers complained about their treatment and provisions under COVID-19 prevention measures.
|
By Brenda Goh Nov 2 (Reuters) - A Chinese industral park that hosts an iPhone factory belonging to Foxconn 2317.TW announced a fresh COVID-19 lockdown on Wednesday, raising questions about its impact on the Apple AAPL.O supplier's efforts to quell discontent at the factory. It makes most of the phones at the Zhengzhou plant where it employs about 200,000 people, though it has other smaller production sites in India and south China. (Reporting by Brenda Goh; Additional reporting by Yimou Lee in Taipei; Editing by Jacqueline Wong and Stephen Coates) ((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters Messaging: brenda.goh.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Brenda Goh Nov 2 (Reuters) - A Chinese industral park that hosts an iPhone factory belonging to Foxconn 2317.TW announced a fresh COVID-19 lockdown on Wednesday, raising questions about its impact on the Apple AAPL.O supplier's efforts to quell discontent at the factory. Foxconn has been working to retain staff and smooth over tensions in the factory, after workers complained about their treatment and provisions under COVID-19 prevention measures. (Reporting by Brenda Goh; Additional reporting by Yimou Lee in Taipei; Editing by Jacqueline Wong and Stephen Coates) ((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters Messaging: brenda.goh.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Brenda Goh Nov 2 (Reuters) - A Chinese industral park that hosts an iPhone factory belonging to Foxconn 2317.TW announced a fresh COVID-19 lockdown on Wednesday, raising questions about its impact on the Apple AAPL.O supplier's efforts to quell discontent at the factory. The Zhengzhou Airport Economy Zone in central China said it would impose "silent management" measures with immediate effect including barring all residents from going out and only allowing approved vehicles no the roads. Foxconn, formally Hon Hai Precision Industry Co Ltd, is Apple's biggest iPhone maker, producing 70% of iPhone shipments globally.
|
18598.0
|
2022-11-02 00:00:00 UTC
|
Chinese zone that hosts Foxconn's Zhengzhou plant imposes fresh lockdown
|
AAPL
|
https://www.nasdaq.com/articles/chinese-zone-that-hosts-foxconns-zhengzhou-plant-imposes-fresh-lockdown
|
nan
|
nan
|
Nov 2 (Reuters) - The Zhengzhou Airport Economy Zone, which hosts a major plant belonging to Apple AAPL.O iPhone manufacturer Foxconn 2317.TW, said on Wednesday it will with immediate effect impose a fresh lockdown until Nov. 9.
All residents in the area will be barred from going out and only approved vehicles will be allowed on the roads, according to a notice from the zone. It did not specify how the measures might be applied to Foxconn, which has in recent weeks been working to quell worker discontent at the plant over COVID-19 curbs.
Foxconn did not immediately respond to a request for comment.
(Reporting by Brenda Goh; Additional reporting by Yimou Lee in Taipei; Editing by Jacqueline Wong)
((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters Messaging: brenda.goh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Nov 2 (Reuters) - The Zhengzhou Airport Economy Zone, which hosts a major plant belonging to Apple AAPL.O iPhone manufacturer Foxconn 2317.TW, said on Wednesday it will with immediate effect impose a fresh lockdown until Nov. 9. It did not specify how the measures might be applied to Foxconn, which has in recent weeks been working to quell worker discontent at the plant over COVID-19 curbs. (Reporting by Brenda Goh; Additional reporting by Yimou Lee in Taipei; Editing by Jacqueline Wong) ((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters Messaging: brenda.goh.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Nov 2 (Reuters) - The Zhengzhou Airport Economy Zone, which hosts a major plant belonging to Apple AAPL.O iPhone manufacturer Foxconn 2317.TW, said on Wednesday it will with immediate effect impose a fresh lockdown until Nov. 9. All residents in the area will be barred from going out and only approved vehicles will be allowed on the roads, according to a notice from the zone. (Reporting by Brenda Goh; Additional reporting by Yimou Lee in Taipei; Editing by Jacqueline Wong) ((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters Messaging: brenda.goh.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Nov 2 (Reuters) - The Zhengzhou Airport Economy Zone, which hosts a major plant belonging to Apple AAPL.O iPhone manufacturer Foxconn 2317.TW, said on Wednesday it will with immediate effect impose a fresh lockdown until Nov. 9. It did not specify how the measures might be applied to Foxconn, which has in recent weeks been working to quell worker discontent at the plant over COVID-19 curbs. (Reporting by Brenda Goh; Additional reporting by Yimou Lee in Taipei; Editing by Jacqueline Wong) ((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters Messaging: brenda.goh.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Nov 2 (Reuters) - The Zhengzhou Airport Economy Zone, which hosts a major plant belonging to Apple AAPL.O iPhone manufacturer Foxconn 2317.TW, said on Wednesday it will with immediate effect impose a fresh lockdown until Nov. 9. All residents in the area will be barred from going out and only approved vehicles will be allowed on the roads, according to a notice from the zone. It did not specify how the measures might be applied to Foxconn, which has in recent weeks been working to quell worker discontent at the plant over COVID-19 curbs.
|
18599.0
|
2022-11-02 00:00:00 UTC
|
Should You Invest in the Technology Select Sector SPDR ETF (XLK)?
|
AAPL
|
https://www.nasdaq.com/articles/should-you-invest-in-the-technology-select-sector-spdr-etf-xlk-4
|
nan
|
nan
|
Designed to provide broad exposure to the Technology - Broad segment of the equity market, the Technology Select Sector SPDR ETF (XLK) is a passively managed exchange traded fund launched on 12/16/1998.
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.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 5, placing it in top 31%.
Index Details
The fund is sponsored by State Street Global Advisors. It has amassed assets over $38.40 billion, making it the largest ETF attempting to match the performance of the Technology - Broad segment of the equity market. XLK seeks to match the performance of the Technology Select Sector Index before fees and expenses.
The Technology Select Sector Index includes companies from the following industries: computers & peripherals; software; diversified telecommunication services; communications equipment; semiconductor & semiconductor equipment; internet software & services; IT services; wireless telecommunication services; electronic equipment & instruments; and office electronics.
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 0.10%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.98%.
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 in the Information Technology sector--about 100% of the portfolio.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 24.80% of total assets, followed by Microsoft Corporation (MSFT) and Nvidia Corporation (NVDA).
The top 10 holdings account for about 66.38% of total assets under management.
Performance and Risk
The ETF has lost about -27.23% so far this year and is down about -20.61% in the last one year (as of 11/02/2022). In that past 52-week period, it has traded between $116.56 and $176.65.
The ETF has a beta of 1.11 and standard deviation of 30.99% for the trailing three-year period, making it a medium risk choice in the space. With about 79 holdings, it effectively diversifies company-specific risk.
Alternatives
Technology Select Sector SPDR 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, XLK is a great 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.
IShares U.S. Technology ETF (IYW) tracks Dow Jones U.S. Technology Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. IShares U.S. Technology ETF has $7.88 billion in assets, Vanguard Information Technology ETF has $39.74 billion. IYW has an expense ratio of 0.39% 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.
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
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
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.
|
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 24.80% of total assets, followed by Microsoft Corporation (MSFT) and Nvidia Corporation (NVDA). Apple Inc. (AAPL): Free Stock Analysis Report It has amassed assets over $38.40 billion, making it the largest ETF attempting to match the performance of the Technology - Broad segment of the equity market.
|
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 24.80% of total assets, followed by Microsoft Corporation (MSFT) and Nvidia Corporation (NVDA). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Technology - Broad segment of the equity market, the Technology Select Sector SPDR ETF (XLK) is a passively managed exchange traded fund launched on 12/16/1998.
|
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 24.80% of total assets, followed by Microsoft Corporation (MSFT) and Nvidia Corporation (NVDA). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives Technology Select Sector SPDR ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
|
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 24.80% of total assets, followed by Microsoft Corporation (MSFT) and Nvidia Corporation (NVDA). Apple Inc. (AAPL): Free Stock Analysis Report XLK seeks to match the performance of the Technology Select Sector Index before fees and expenses.
|
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.