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18600.0
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2022-11-01 00:00:00 UTC
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Apple, Bank of America, and Chevron Earnings Show the Warren Buffett Way Still Works
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AAPL
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https://www.nasdaq.com/articles/apple-bank-of-america-and-chevron-earnings-show-the-warren-buffett-way-still-works
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nan
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nan
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Warren Buffett once quipped, "Only when the tide goes out do you discover who's been swimming naked." The adage certainly seems applicable in the current market environment. Most investors perform well when the market is rising. But when the market is down, it's more readily apparent which investors have the best approaches.
We've seen some large, well-known companies deliver disappointing quarterly results in recent weeks. However, there are some noticeable exceptions that make Buffett look quite astute. You might even say that the latest earnings reports from Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), and Chevron (NYSE: CVX) show that the Warren Buffett way still works.
What is the Warren Buffett way?
Buffett focuses on businesses instead of stocks. The legendary investor adamantly insisted in his annual letter to Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) shareholders earlier this year that he and his longtime business associate Charlie Munger "are not stock-pickers; we are business-pickers."
He especially likes businesses that are well-run and that have sustainable competitive advantages. Buffett prefers to invest in companies that have moats -- distinct competitive advantages that enable them to flourish over the long term.
If you want examples of these kinds of businesses, just look at the top holdings in Buffett's portfolio. Apple is by far the biggest position. It's followed by Bank of America. Chevron now ranks as Berkshire's third-largest holding (including the shares owned by its New England Asset Management subsidiary).
Buffett refers to Apple as one of Berkshire's "four giants" -- and it's the only one of those giants that isn't a Berkshire subsidiary. He's been a longtime fan of bank stocks, with Bank of America clearly his favorite. The multibillionaire also foresaw that energy stocks would perform well after they were hammered during the early days of the COVID-19 pandemic. Buffett loaded up on Chevron to profit from the predicted rebound.
Three for three
The "Oracle of Omaha" has gone three for three with his top holdings in the latest earnings season. Apple, Bank of America, and Chevron delivered better-than-expected results.
Apple reported its highest fiscal Q4 revenue ($90.1 billion) in company history. Importantly, this milestone was achieved despite stiff currency headwinds. The tech giant also posted its highest fiscal Q4 gross profit margin ever.
Bank of America easily topped Wall Street revenue and earnings estimates with its Q3 results. Rising interest rates hurt some businesses, but they helped BofA. The company's net interest income jumped $1.4 billion from the previous quarter -- well above management's previous guidance of $1 billion.
Chevron stock hit an all-time high after the giant oil and gas producer reported outstanding Q3 results. The company's profit nearly doubled year over year to $11.2 billion. Chevron generated record-high cash flow from operations of $15.3 billion. This strong performance was driven by higher oil prices.
Not just one quarter
Buffett would probably be the first person to tell you not to focus too heavily on one quarter. However, the solid results for Apple, Bank of America, and Chevron reflect underlying business strengths that aren't just temporary.
CEO Tim Cook said in Apple's quarterly conference call, "There's no other company that fuses best-in-class hardware with cutting-edge software and services to create a truly integrated and seamless experience." Buffett would almost certainly agree with that statement. And Apple's continued success arguably validates it.
Bank of America has led the financial services industry in adopting technology. This innovation has enabled the company to grow while operating with fewer employees than it had seven years ago. Around 80% of BofA's customers actively use its digital platform.
Chevron is taking advantage of the current favorable industry dynamics in several ways. The company has paid down debt for six consecutive quarters. It's investing in new energy sources, including renewable energy as well as carbon capture and storage.
Well-run businesses with competitive advantages tend to win over the long term. Buffett knows that as well as anyone on the planet. It's not surprising at all that his three biggest positions are beating expectations during a period of economic uncertainty. That's just the Warren Buffett way at work.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Keith Speights has positions in Apple, Bank of America, and Berkshire Hathaway (B shares). The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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You might even say that the latest earnings reports from Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), and Chevron (NYSE: CVX) show that the Warren Buffett way still works. Buffett prefers to invest in companies that have moats -- distinct competitive advantages that enable them to flourish over the long term. Chevron stock hit an all-time high after the giant oil and gas producer reported outstanding Q3 results.
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You might even say that the latest earnings reports from Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), and Chevron (NYSE: CVX) show that the Warren Buffett way still works. Apple reported its highest fiscal Q4 revenue ($90.1 billion) in company history. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple.
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You might even say that the latest earnings reports from Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), and Chevron (NYSE: CVX) show that the Warren Buffett way still works. 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. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple.
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You might even say that the latest earnings reports from Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), and Chevron (NYSE: CVX) show that the Warren Buffett way still works. Most investors perform well when the market is rising. What is the Warren Buffett way?
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18601.0
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2022-11-01 00:00:00 UTC
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US STOCKS-Wall St slips as jobs data dents Fed deceleration wish
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-slips-as-jobs-data-dents-fed-deceleration-wish
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nan
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nan
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By Chuck Mikolajczak
NEW YORK, Nov 1 (Reuters) - U.S. stocks closed lower for a second straight session on Tuesday after data indicating the labor market remained on solid ground dimmed hopes the Federal Reserve might have enough reason to begin decreasing the size of its interest rate hikes.
A survey showed U.S. job openings unexpectedly rose in September, suggesting that demand for labor remains strong even as the central bank has embarked on a path of aggressive interest rate hikes in an effort to bring down stubbornly high inflation.
Investors have been paying close attention to labor market data for any signs of weakening in the job market, as decreasing wage pressures and easing demand would help reduce inflation, giving the Fed the ammunition to begin decelerating with a 50-basis-point rate hike in December.
Growing expectations the central bank may have enough justification to begin slowing in December -- partly due to data pointing to a weakening economy and a corporate earnings season that has been better than expected -- helped stocks rally in October, with the Dow notching its biggest monthly percentage gain since 1976.
The sharp focus on labor market data overshadowed another report which showed U.S. manufacturing activity grew at its slowest pace in nearly 2-1/2 years in October as rising interest rates cool demand for goods and pricing pressures on manufacturers lessened.
"That is the concern for the market is we know the Fed wants to slow down the labor market, they want to slow down hiring so demand drops in the economy, which will help inflation," said Anthony Saglimbene, chief market strategist at Ameriprise Financial in Troy, Michigan.
"From an employment standpoint things look really robust though, and that is putting some pressure on stocks."
According to preliminary data, the S&P 500 .SPX lost 16.26 points, or 0.42%, to end at 3,855.79 points, while the Nasdaq Composite .IXIC lost 97.62 points, or 0.90%, to 10,889.23. The Dow Jones Industrial Average .DJI fell 85.35 points, or 0.26%, to 32,647.60.
The Fed is set to release its policy statement at 2 p.m. EDT (1800 GMT) on Wednesday, and investors will be closely eyeing any signals in the statement or comments from Fed Chair Jerome Powell afterwards that the central bank is contemplating decreasing its rate hikes.
Energy .SPNY was the best-performing S&P sector, lifted by a gain in crude prices on an unverified report that China was considering lifting its strict COVID-19 regulations.
That also helped boost U.S.-listed shares of Chinese firms such as JD.Com JD.O and Alibaba Group Holding BABA.N.
Megacap growth names such as Amazon AMZN.O and Apple AAPL.O, which have struggled since the Fed began raising interest rates, were once again under pressure.
Uber Technologies UBER.N surged after giving an upbeat fourth-quarter profit view that also lifted shares of its peers Lyft Inc LYFT.O and DoorDash DASH.N.
Pfizer PFE.N rose after the drugmaker raised full-year sales estimates for its COVID-19 vaccine, while Eli Lilly LLY.N fell after trimming its profit forecast.
(Reporting by Chuck Mikolajczak; editing by Jonathan Oatis)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Megacap growth names such as Amazon AMZN.O and Apple AAPL.O, which have struggled since the Fed began raising interest rates, were once again under pressure. By Chuck Mikolajczak NEW YORK, Nov 1 (Reuters) - U.S. stocks closed lower for a second straight session on Tuesday after data indicating the labor market remained on solid ground dimmed hopes the Federal Reserve might have enough reason to begin decreasing the size of its interest rate hikes. A survey showed U.S. job openings unexpectedly rose in September, suggesting that demand for labor remains strong even as the central bank has embarked on a path of aggressive interest rate hikes in an effort to bring down stubbornly high inflation.
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Megacap growth names such as Amazon AMZN.O and Apple AAPL.O, which have struggled since the Fed began raising interest rates, were once again under pressure. Investors have been paying close attention to labor market data for any signs of weakening in the job market, as decreasing wage pressures and easing demand would help reduce inflation, giving the Fed the ammunition to begin decelerating with a 50-basis-point rate hike in December. Growing expectations the central bank may have enough justification to begin slowing in December -- partly due to data pointing to a weakening economy and a corporate earnings season that has been better than expected -- helped stocks rally in October, with the Dow notching its biggest monthly percentage gain since 1976.
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Megacap growth names such as Amazon AMZN.O and Apple AAPL.O, which have struggled since the Fed began raising interest rates, were once again under pressure. By Chuck Mikolajczak NEW YORK, Nov 1 (Reuters) - U.S. stocks closed lower for a second straight session on Tuesday after data indicating the labor market remained on solid ground dimmed hopes the Federal Reserve might have enough reason to begin decreasing the size of its interest rate hikes. Investors have been paying close attention to labor market data for any signs of weakening in the job market, as decreasing wage pressures and easing demand would help reduce inflation, giving the Fed the ammunition to begin decelerating with a 50-basis-point rate hike in December.
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Megacap growth names such as Amazon AMZN.O and Apple AAPL.O, which have struggled since the Fed began raising interest rates, were once again under pressure. Investors have been paying close attention to labor market data for any signs of weakening in the job market, as decreasing wage pressures and easing demand would help reduce inflation, giving the Fed the ammunition to begin decelerating with a 50-basis-point rate hike in December. Growing expectations the central bank may have enough justification to begin slowing in December -- partly due to data pointing to a weakening economy and a corporate earnings season that has been better than expected -- helped stocks rally in October, with the Dow notching its biggest monthly percentage gain since 1976.
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18602.0
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2022-11-01 00:00:00 UTC
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After Hours Most Active for Nov 1, 2022 : SHV, ENB, BFH, AMZN, AMD, ABNB, AAPL, VMBS, BHC, CMA, F, VZ
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-nov-1-2022-%3A-shv-enb-bfh-amzn-amd-abnb-aapl-vmbs-bhc-cma-f-vz
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -18.05 to 11,270.9. The total After hours volume is currently 86,716,366 shares traded.
The following are the most active stocks for the after hours session:
iShares Short Treasury Bond ETF (SHV) is unchanged at $109.76, with 10,720,480 shares traded., following a 52-week high recorded in today's regular session.
Enbridge Inc (ENB) is +0.01 at $38.93, with 5,784,962 shares traded.ENB is scheduled to provide an earnings report on 11/4/2022, for the fiscal quarter ending Sep2022. The consensus earnings per share forecast is 0.5 per share, which represents a 47 percent increase over the EPS one Year Ago
Bread Financial Holdings, Inc. (BFH) is unchanged at $36.71, with 5,051,791 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 $7.04. BFH's current last sale is 62.75% of the target price of $58.5.
Amazon.com, Inc. (AMZN) is -0.17 at $96.62, with 4,982,776 shares traded., following a 52-week high recorded in today's regular session.
Advanced Micro Devices, Inc. (AMD) is +1.14 at $60.80, with 3,185,381 shares traded. As reported by Zacks, the current mean recommendation for AMD is in the "buy range".
Airbnb, Inc. (ABNB) is -3.74 at $105.31, with 2,872,840 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2022. The consensus EPS forecast is $1.43. ABNB's current last sale is 75.22% of the target price of $140.
Apple Inc. (AAPL) is -0.2611 at $150.39, with 2,824,403 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".
Vanguard Mortgage-Backed Securities ETF (VMBS) is -0.0161 at $44.37, with 2,625,837 shares traded. This represents a 2.4% increase from its 52 Week Low.
Bausch Health Companies Inc. (BHC) is -0.01 at $6.90, with 2,026,965 shares traded.BHC is scheduled to provide an earnings report on 11/3/2022, for the fiscal quarter ending Sep2022. The consensus earnings per share forecast is 0.92 per share, which represents a 114 percent increase over the EPS one Year Ago
Comerica Incorporated (CMA) is unchanged at $70.33, with 1,461,380 shares traded. CMA's current last sale is 82.74% of the target price of $85.
Ford Motor Company (F) is -0.05 at $13.35, with 1,391,254 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 $0.6. F's current last sale is 89% of the target price of $15.
Verizon Communications Inc. (VZ) is unchanged at $37.37, with 1,214,339 shares traded. VZ's current last sale is 74.74% of the target price of $50.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.2611 at $150.39, with 2,824,403 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". iShares Short Treasury Bond ETF (SHV) is unchanged at $109.76, with 10,720,480 shares traded., following a 52-week high recorded in today's regular session.
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Apple Inc. (AAPL) is -0.2611 at $150.39, with 2,824,403 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Enbridge Inc (ENB) is +0.01 at $38.93, with 5,784,962 shares traded.ENB is scheduled to provide an earnings report on 11/4/2022, for the fiscal quarter ending Sep2022.
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Apple Inc. (AAPL) is -0.2611 at $150.39, with 2,824,403 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The consensus earnings per share forecast is 0.5 per share, which represents a 47 percent increase over the EPS one Year Ago
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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 -0.2611 at $150.39, with 2,824,403 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
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18603.0
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2022-11-01 00:00:00 UTC
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US STOCKS-Wall St slips as jobs data dents hopes for Fed rate deceleration
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-slips-as-jobs-data-dents-hopes-for-fed-rate-deceleration
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nan
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nan
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By Chuck Mikolajczak
NEW YORK, Nov 1 (Reuters) - U.S. stocks closed lower for a second straight session on Tuesday after data indicating that the labor market remained on solid ground dimmed hopes the Federal Reserve might have enough reason to begin reducing the size of its interest rate hikes.
A survey showed U.S. job openings unexpectedly rose in September, suggesting that demand for labor remains strong even as the central bank has embarked on a path of aggressive rate hikes in an effort to bring down stubbornly high inflation.
Investors have been paying close attention to labor market data for any signs of weakening in the job market, as decreasing wage pressures and easing demand would help reduce inflation, giving the Fed the ammunition to begin decelerating with a 50-basis-point rate hike in December.
Growing expectations the central bank may have enough justification to begin slowing in December -- partly due to data pointing to a weakening economy and a corporate earnings season that has been better than expected -- helped stocks rally in October, with the Dow notching its biggest monthly percentage gain since 1976.
The sharp focus on labor market data overshadowed another report which showed U.S. manufacturing activity grew at its slowest pace in nearly 2-1/2 years in October as rising rates cool demand for goods and pricing pressures on manufacturers lessened.
"That is the concern for the market is we know the Fed wants to slow down the labor market, they want to slow down hiring so demand drops in the economy, which will help inflation," said Anthony Saglimbene, chief market strategist at Ameriprise Financial in Troy, Michigan.
"From an employment standpoint things look really robust though, and that is putting some pressure on stocks."
The Dow Jones Industrial Average .DJI fell 79.75 points, or 0.24%, to 32,653.2, the S&P 500 .SPX lost 15.88 points, or 0.41%, to 3,856.1 and the Nasdaq Composite .IXIC dropped 97.30 points, or 0.89%, to 10,890.85.
The Fed is set to release its policy statement at 2 p.m. EDT (1800 GMT) on Wednesday, and investors will be closely eyeing any signals in the statement or comments from Fed Chair Jerome Powell afterward that the central bank is contemplating decreasing its rate hikes.
Energy .SPNY, up 0.99% was the best-performing S&P sector, lifted by a gain in crude prices on an unverified report that China was considering lifting its strict COVID-19 regulations.
That also helped boost U.S.-listed shares of Chinese firms such as JD.Com JD.O, up 3.08% and Alibaba Group Holding BABA.N, which gained 3.59%.
Megacap growth names such as Amazon AMZN.O and Apple AAPL.O, which have struggled since the Fed began raising interest rates, were once again under pressure, falling 5.52% and 1.75%, respectively.
Uber Technologies UBER.N surged 11.97% after giving an upbeat fourth-quarter profit view that also lifted shares of its peers Lyft Inc LYFT.O, up 3.48% and DoorDash DASH.N, up 3.61%.
Pfizer PFE.N rose 3.14% after the drugmaker raised full-year sales estimates for its COVID-19 vaccine, while Eli Lilly LLY.N fell 2.63% after trimming its profit forecast.
Volume on U.S. exchanges was 11.11 billion shares, compared with the 11.45 billion average for the full session over the last 20 trading days.
Advancing issues outnumbered declining ones on the NYSE by a 1.56-to-1 ratio; on Nasdaq, a 1.29-to-1 ratio favored advancers.
The S&P 500 posted 24 new 52-week highs and eight new lows; the Nasdaq Composite recorded 120 new highs and 110 new lows.
(Reporting by Chuck Mikolajczak; editing by Jonathan Oatis)
((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.
|
Megacap growth names such as Amazon AMZN.O and Apple AAPL.O, which have struggled since the Fed began raising interest rates, were once again under pressure, falling 5.52% and 1.75%, respectively. By Chuck Mikolajczak NEW YORK, Nov 1 (Reuters) - U.S. stocks closed lower for a second straight session on Tuesday after data indicating that the labor market remained on solid ground dimmed hopes the Federal Reserve might have enough reason to begin reducing the size of its interest rate hikes. A survey showed U.S. job openings unexpectedly rose in September, suggesting that demand for labor remains strong even as the central bank has embarked on a path of aggressive rate hikes in an effort to bring down stubbornly high inflation.
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Megacap growth names such as Amazon AMZN.O and Apple AAPL.O, which have struggled since the Fed began raising interest rates, were once again under pressure, falling 5.52% and 1.75%, respectively. Investors have been paying close attention to labor market data for any signs of weakening in the job market, as decreasing wage pressures and easing demand would help reduce inflation, giving the Fed the ammunition to begin decelerating with a 50-basis-point rate hike in December. The sharp focus on labor market data overshadowed another report which showed U.S. manufacturing activity grew at its slowest pace in nearly 2-1/2 years in October as rising rates cool demand for goods and pricing pressures on manufacturers lessened.
|
Megacap growth names such as Amazon AMZN.O and Apple AAPL.O, which have struggled since the Fed began raising interest rates, were once again under pressure, falling 5.52% and 1.75%, respectively. By Chuck Mikolajczak NEW YORK, Nov 1 (Reuters) - U.S. stocks closed lower for a second straight session on Tuesday after data indicating that the labor market remained on solid ground dimmed hopes the Federal Reserve might have enough reason to begin reducing the size of its interest rate hikes. Investors have been paying close attention to labor market data for any signs of weakening in the job market, as decreasing wage pressures and easing demand would help reduce inflation, giving the Fed the ammunition to begin decelerating with a 50-basis-point rate hike in December.
|
Megacap growth names such as Amazon AMZN.O and Apple AAPL.O, which have struggled since the Fed began raising interest rates, were once again under pressure, falling 5.52% and 1.75%, respectively. A survey showed U.S. job openings unexpectedly rose in September, suggesting that demand for labor remains strong even as the central bank has embarked on a path of aggressive rate hikes in an effort to bring down stubbornly high inflation. Investors have been paying close attention to labor market data for any signs of weakening in the job market, as decreasing wage pressures and easing demand would help reduce inflation, giving the Fed the ammunition to begin decelerating with a 50-basis-point rate hike in December.
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18604.0
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2022-11-01 00:00:00 UTC
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After Last Week's Rally Is Apple Stock Poised To Rise Further?
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AAPL
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https://www.nasdaq.com/articles/after-last-weeks-rally-is-apple-stock-poised-to-rise-further
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nan
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nan
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The shares of Apple (NASDAQ:AAPL) have gained about 9% over the past month (about 21 trading days), trading at about $156 per share. This compares to the S&P 500 which has gained about 7% over the same period. The stock was also up by about 6% over the last week (five trading days). The recent rally comes as Apple’s Q4 FY’22 results came in ahead of expectations, in contrast with fellow tech titans Amazon, Alphabet, and Meta, who all missed estimates, amid weaker demand and easing Covid-19 tailwinds. Over Q4, Apple’s revenues stood at $90.1 billion, up about 8% year-over-year, and EPS came in at $1.29, up about 3% versus last year. However, growth rates for Apple’s bread-and-butter iPhone businesses fell short of estimates as interest in entry level models was weak, although premium devices such as the iPhone Pro apparently saw a stronger uptake. Apple’s services business has also seen a meaningful slowdown, with year-over-year growth coming in at just 5%, compared to double-digit levels in previous quarters.
Now that Apple stock has seen gains of about 9% over the last month, will it continue its upward trajectory in the near term, or is a decline imminent? Going by historical performance, there is a roughly 64% chance of a rise in Apple stock over the next month. Out of 493 instances in the last ten years that Apple stock saw a twenty-one-day rise of 9% or more, 314 of them resulted in Apple stock rising over the subsequent month (21 trading days). This historical pattern reflects 314 out of 493, or about 64% chance of a rise in Apple stock over the coming month, implying a positive near-term outlook for the stock. See our analysis on Apple Stock Chance of A Rise for more details.
Calculation of ‘Event Probability’ and ‘Chance of Rise’ using the last ten years data
After moving 6% or more over five days, the stock rose in the next five days on 60% of the occasions.
After moving 13% or more over ten days, the stock rose in the next ten days on 57% of the occasions
After moving 9% or more over a twenty-one-day period, the stock rose in the next twenty-one days on 64% of the occasions.
This pattern suggests that it is moderately likely that Apple stock will see gains in the near term.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Oct 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
AAPL Return 13% -12% 438%
S&P 500 Return 9% -18% 74%
Trefis Multi-Strategy Portfolio 7% -22% 211%
[1] Month-to-date and year-to-date as of 10/30/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The shares of Apple (NASDAQ:AAPL) have gained about 9% over the past month (about 21 trading days), trading at about $156 per share. Total [2] AAPL Return 13% -12% 438% S&P 500 Return 9% -18% 74% Trefis Multi-Strategy Portfolio 7% -22% 211% [1] Month-to-date and year-to-date as of 10/30/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The recent rally comes as Apple’s Q4 FY’22 results came in ahead of expectations, in contrast with fellow tech titans Amazon, Alphabet, and Meta, who all missed estimates, amid weaker demand and easing Covid-19 tailwinds.
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Total [2] AAPL Return 13% -12% 438% S&P 500 Return 9% -18% 74% Trefis Multi-Strategy Portfolio 7% -22% 211% [1] Month-to-date and year-to-date as of 10/30/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The shares of Apple (NASDAQ:AAPL) have gained about 9% over the past month (about 21 trading days), trading at about $156 per share. Out of 493 instances in the last ten years that Apple stock saw a twenty-one-day rise of 9% or more, 314 of them resulted in Apple stock rising over the subsequent month (21 trading days).
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Total [2] AAPL Return 13% -12% 438% S&P 500 Return 9% -18% 74% Trefis Multi-Strategy Portfolio 7% -22% 211% [1] Month-to-date and year-to-date as of 10/30/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The shares of Apple (NASDAQ:AAPL) have gained about 9% over the past month (about 21 trading days), trading at about $156 per share. Out of 493 instances in the last ten years that Apple stock saw a twenty-one-day rise of 9% or more, 314 of them resulted in Apple stock rising over the subsequent month (21 trading days).
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Total [2] AAPL Return 13% -12% 438% S&P 500 Return 9% -18% 74% Trefis Multi-Strategy Portfolio 7% -22% 211% [1] Month-to-date and year-to-date as of 10/30/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The shares of Apple (NASDAQ:AAPL) have gained about 9% over the past month (about 21 trading days), trading at about $156 per share. This compares to the S&P 500 which has gained about 7% over the same period.
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18605.0
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2022-11-01 00:00:00 UTC
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US STOCKS-Wall St slips as labor market data dims Fed deceleration hopes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-slips-as-labor-market-data-dims-fed-deceleration-hopes
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nan
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nan
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By Chuck Mikolajczak
NEW YORK, Nov 1 (Reuters) - U.S. stocks retreated for a second straight session on Tuesday after data indicating the labor market remained on firm footing dented hopes the Federal Reserve might have cause to begin decreasing the size of its interest rate hikes.
A survey showed U.S. job openings unexpectedly rose in September, suggesting that demand for labor remains strong even as the central bank has embarked on a path of aggressive interest rate hikes in an effort to bring down stubbornly high inflation.
Investors have been paying close attention to labor market data for any signs of weakening in the job market, as decreasing wage pressures would help reduce inflation, giving the Fed the ammunition to begin decelerating with a 50-basis-point rate hike in December.
Growing expectations the central bank may have enough justification to begin slowing in December -- partly due to data pointing to a weakening economy and a corporate earnings season that has been better than expected -- helped stocks rally in October, with the Dow notching its biggest monthly percentage gain since 1976.
Other data showed U.S. manufacturing activity grew at its slowest pace in nearly 2-1/2 years in October as rising interest rates cool demand for goods.
"You saw the manufacturing index, the good side of the equation, becoming disinflationary, and so everyone is waiting for this lagging employment indicator to actually crack because it is hard for me to find anywhere else in the economy that is actually strong," said Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management Company in Milwaukee, Wisconsin.
"It has been easy for the Fed to hike because they are winning on their employment mandate but they are losing on their inflation mandate; the next few months of data will provide them with a tougher backdrop for rate hikes."
The Dow Jones Industrial Average .DJI fell 87.34 points, or 0.27%, to 32,645.61, the S&P 500 .SPX lost 14.08 points, or 0.36%, to 3,857.9 and the Nasdaq Composite .IXIC dropped 76.04 points, or 0.69%, to 10,912.10.
The Fed is set to release its policy statement at 2 p.m. EDT (1800 GMT) on Wednesday, and investors will be closely eyeing any signals in the statement or comments from Fed Chair Jerome Powell afterwards that the central bank is contemplating decreasing its rate hikes.
Energy .SPNY was the best performing S&P sector, up 1.12%, lifted by a gain in crude prices on an unverified report that China was considering lifting its strict COVID-19 regulations.
That also helped boost U.S.-listed shares of Chinese firms such as JD.Com JD.O, up 3.86%, and Alibaba Group Holding BABA.N, which gained 5.12%.
Megacap growth names such as Amazon AMZN.O, off 5.63% and Apple AAPL.O, down 1.91%, which have struggled since the Fed began raising interest rates, were once again under pressure.
Uber Technologies UBER.N surged 12.35% after giving an upbeat fourth-quarter profit view that also lifted shares of its rivals Lyft Inc LYFT.O and DoorDash DASH.N.
Pfizer PFE.N rose 3.20% after the drugmaker raised full-year sales estimates for its COVID-19 vaccine, while Eli Lilly LLY.N slipped 4.6% after trimming its profit forecast.
Advancing issues outnumbered declining ones on the NYSE by a 1.89-to-1 ratio; on Nasdaq, a 1.56-to-1 ratio favored advancers.
The S&P 500 posted 23 new 52-week highs and eight new lows; the Nasdaq Composite recorded 98 new highs and 89 new lows.
(Reporting by Chuck Mikolajczak; editing by Jonathan Oatis)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Megacap growth names such as Amazon AMZN.O, off 5.63% and Apple AAPL.O, down 1.91%, which have struggled since the Fed began raising interest rates, were once again under pressure. By Chuck Mikolajczak NEW YORK, Nov 1 (Reuters) - U.S. stocks retreated for a second straight session on Tuesday after data indicating the labor market remained on firm footing dented hopes the Federal Reserve might have cause to begin decreasing the size of its interest rate hikes. A survey showed U.S. job openings unexpectedly rose in September, suggesting that demand for labor remains strong even as the central bank has embarked on a path of aggressive interest rate hikes in an effort to bring down stubbornly high inflation.
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Megacap growth names such as Amazon AMZN.O, off 5.63% and Apple AAPL.O, down 1.91%, which have struggled since the Fed began raising interest rates, were once again under pressure. By Chuck Mikolajczak NEW YORK, Nov 1 (Reuters) - U.S. stocks retreated for a second straight session on Tuesday after data indicating the labor market remained on firm footing dented hopes the Federal Reserve might have cause to begin decreasing the size of its interest rate hikes. A survey showed U.S. job openings unexpectedly rose in September, suggesting that demand for labor remains strong even as the central bank has embarked on a path of aggressive interest rate hikes in an effort to bring down stubbornly high inflation.
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Megacap growth names such as Amazon AMZN.O, off 5.63% and Apple AAPL.O, down 1.91%, which have struggled since the Fed began raising interest rates, were once again under pressure. By Chuck Mikolajczak NEW YORK, Nov 1 (Reuters) - U.S. stocks retreated for a second straight session on Tuesday after data indicating the labor market remained on firm footing dented hopes the Federal Reserve might have cause to begin decreasing the size of its interest rate hikes. A survey showed U.S. job openings unexpectedly rose in September, suggesting that demand for labor remains strong even as the central bank has embarked on a path of aggressive interest rate hikes in an effort to bring down stubbornly high inflation.
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Megacap growth names such as Amazon AMZN.O, off 5.63% and Apple AAPL.O, down 1.91%, which have struggled since the Fed began raising interest rates, were once again under pressure. A survey showed U.S. job openings unexpectedly rose in September, suggesting that demand for labor remains strong even as the central bank has embarked on a path of aggressive interest rate hikes in an effort to bring down stubbornly high inflation. Investors have been paying close attention to labor market data for any signs of weakening in the job market, as decreasing wage pressures would help reduce inflation, giving the Fed the ammunition to begin decelerating with a 50-basis-point rate hike in December.
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18606.0
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2022-11-01 00:00:00 UTC
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Workers Flee Apple's China Factory Following Covid Lockdown
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AAPL
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https://www.nasdaq.com/articles/workers-flee-apples-china-factory-following-covid-lockdown
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nan
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nan
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(RTTNews) - According to reports, workers at the biggest Apple iPhone assembly factory in China have run away from the premises after a spurt of Covid cases forced a complete lockdown at the factory. There is still no clarity about the number of Covid positive people in the premises.
Many videos are being shared online of around 10 people climbing over a fence outside the plant, which is owned by manufacturer Foxconn, in the central city of Zhengzhou.
As per a Reuters report, during the last week, Zhengzhou, which is the capital of Henan province, had reported 167 locally transmitted infections, higher than last week's 97. Following the outbreak, the city with a population of 10 million was put under partial lockdown even as the Chinese Government makes use of strict lockdown measures to deal with Covid.
Foxconn, which is a supplier to US-based Apple, has many workers at its Zhengzhou complex and has not provided an official count of how many are infected. The Taiwan-based company said on Sunday that it would not stop workers from leaving. However, in videos shared online, workers were shown escaping the grounds and walking long distances back to their hometowns in a bid to not being caught on public transport.
One 22-year-old worker, surnamed Xia, told the media that it was "total chaos in the dormitories" he and colleagues were being kept in. "We jumped a plastic fence and a metal fence to get out of the campus," he added.
Workers also claimed the area surrounding the plant had been locked down for days, with Covid-positive workers being subjected to daily testing and quarantines to try to contain the outbreak.
On 19 October, Foxconn announced it was banning all dine-in catering at the Zhengzhou plant and workers would eat meals in their rooms. At the same time, the company told reporters that it was maintaining "normal production" as the factory increased production of the latest iPhone 14 models.
The company said that for those wanting to return home, "The [plant] is co-operating with the government to organise personnel and vehicles to provide a point-to-point orderly return service for employees from today".
Under China's strict zero-Covid policy, cities have been given special powers to act swiftly to stop any virus outbreaks. This includes anything from full-scale lockdowns to regular testing and travel restrictions.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Many videos are being shared online of around 10 people climbing over a fence outside the plant, which is owned by manufacturer Foxconn, in the central city of Zhengzhou. However, in videos shared online, workers were shown escaping the grounds and walking long distances back to their hometowns in a bid to not being caught on public transport. Under China's strict zero-Covid policy, cities have been given special powers to act swiftly to stop any virus outbreaks.
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(RTTNews) - According to reports, workers at the biggest Apple iPhone assembly factory in China have run away from the premises after a spurt of Covid cases forced a complete lockdown at the factory. However, in videos shared online, workers were shown escaping the grounds and walking long distances back to their hometowns in a bid to not being caught on public transport. At the same time, the company told reporters that it was maintaining "normal production" as the factory increased production of the latest iPhone 14 models.
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(RTTNews) - According to reports, workers at the biggest Apple iPhone assembly factory in China have run away from the premises after a spurt of Covid cases forced a complete lockdown at the factory. Many videos are being shared online of around 10 people climbing over a fence outside the plant, which is owned by manufacturer Foxconn, in the central city of Zhengzhou. Workers also claimed the area surrounding the plant had been locked down for days, with Covid-positive workers being subjected to daily testing and quarantines to try to contain the outbreak.
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(RTTNews) - According to reports, workers at the biggest Apple iPhone assembly factory in China have run away from the premises after a spurt of Covid cases forced a complete lockdown at the factory. Many videos are being shared online of around 10 people climbing over a fence outside the plant, which is owned by manufacturer Foxconn, in the central city of Zhengzhou. Following the outbreak, the city with a population of 10 million was put under partial lockdown even as the Chinese Government makes use of strict lockdown measures to deal with Covid.
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18607.0
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2022-11-01 00:00:00 UTC
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Is Wall Street Overly Negative on Meta Stock?
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AAPL
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https://www.nasdaq.com/articles/is-wall-street-overly-negative-on-meta-stock
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nan
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nan
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Frustration is a reasonable response to Meta Platforms' (NASDAQ: META) aggressive spending on its metaverse ambitions. After all, at the very least, the economy is softening, and things could get worse. The logical move would be to cut back on your spending, especially when Meta's Reality Labs segment is bleeding cash. However, Meta isn't letting up.
Wall Street disapproves of Meta's actions, and has slaughtered the stock price over the past 12 months. But CEO Mark Zuckerberg believes that Reality Labs is critical to the company's future, so investors holding the stock should probably come to terms with that.
But the market can get carried away. Here is why Meta could be a great buy today, even with its ongoing problems.
There is a lot of negativity around Meta Platforms
Despite being a component of the FAANG acronym of Wall Street's most prominent technology stocks, investors are arguably more bearish on Meta Platforms than ever. To be fair, there is a lot of baggage right now.
For example, Meta is seemingly lighting billions on fire to fund its Reality Labs segment, and Apple's iOS privacy policy has hurt Meta's cash cow, its advertising business.
META data by YCharts
A bear market like what Wall Street sees today is not a good situation for a company with problems, and the stock's responded by falling to its lowest price since 2015, when the company made $17.9 billion in revenue. Meta's done about $118 billion over the past four quarters, a ten-fold difference. Investors are treating Meta like its sky is falling.
But that's all priced in, and then some
There is no denying Meta's losses on Reality Labs, which were $3.7 billion just in the third quarter of this year. Further, Meta is still navigating the iOS privacy changes Apple implemented. But should the market sell Meta down to almost nothing? Or is there a point where the stock price reflects all these problems?
You can value a stock by looking at how much of a company's free cash flow you're getting for your investment. Free cash flow is cash profit the company can spend on dividends or share repurchases, or stack on its balance sheet. A high free cash flow yield means that not only is the company doing well enough to generate cash profits, but the stock is also trading low enough that you're getting more bang for your buck when you buy shares.
Below is Meta's free cash flow yield over time. You can see that the current yield approaching 10% is its highest in many years. Remember that free cash flow is discretionary cash profits, so that's after the Reality Labs spending. Free cash flow would be even higher if not for Reality Labs, but the point is that Wall Street has way oversold the stock relative to the actual financial state of Meta's business.
META Free Cash Flow Yield data by YCharts
This data is only a snapshot, and Meta's financials could worsen over time. That's a risk you take in investing.
But if you're looking for a margin of safety, here it is. Meta's stock has become so cheap that the business would have to get a lot worse than it is now for its valuation even to approach where it's historically traded.
A long-term investor can do very well if Meta reverts toward its past valuation, and that's before factoring in any potential success from Reality Labs. Zuckerberg's metaverse ambitions could send Meta to a new level if he eventually proves Wall Street wrong.
10 stocks we like better than Meta Platforms, Inc.
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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.
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*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. Justin Pope 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.
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But CEO Mark Zuckerberg believes that Reality Labs is critical to the company's future, so investors holding the stock should probably come to terms with that. Free cash flow would be even higher if not for Reality Labs, but the point is that Wall Street has way oversold the stock relative to the actual financial state of Meta's business. Zuckerberg's metaverse ambitions could send Meta to a new level if he eventually proves Wall Street wrong.
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For example, Meta is seemingly lighting billions on fire to fund its Reality Labs segment, and Apple's iOS privacy policy has hurt Meta's cash cow, its advertising business. Below is Meta's free cash flow yield over time. META Free Cash Flow Yield data by YCharts This data is only a snapshot, and Meta's financials could worsen over time.
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There is a lot of negativity around Meta Platforms Despite being a component of the FAANG acronym of Wall Street's most prominent technology stocks, investors are arguably more bearish on Meta Platforms than ever. Free cash flow would be even higher if not for Reality Labs, but the point is that Wall Street has way oversold the stock relative to the actual financial state of Meta's business. 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.
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You can value a stock by looking at how much of a company's free cash flow you're getting for your investment. * 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! The Motley Fool has positions in and recommends Apple and Meta Platforms, Inc.
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18608.0
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2022-11-01 00:00:00 UTC
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Why a Recession Won't Slow Down Meta Platforms
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AAPL
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https://www.nasdaq.com/articles/why-a-recession-wont-slow-down-meta-platforms
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nan
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nan
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Technology conglomerate Meta Platforms (NASDAQ: META) continues investing heavily in the metaverse. This hasn't gone over well with Wall Street, which can sometimes act like a popularity contest. The stock has fallen roughly 68% since Mark Zuckerberg announced the rebranding of his company to Meta Platforms.
But doing the right thing isn't always popular, and Meta has forged on with its plans to invest tens of billions of dollars to develop its metaverse business Reality Labs, an investment that Zuckerberg has acknowledged could take years to bear fruit.
Long-term investors must understand why Reality Labs has become so important, so here is what it could mean for your investment thesis and why Zuckerberg will probably keep spending that money.
It's about that fruit logo in Cupertino
Reality Labs, Meta's metaverse segment, gets most of the headlines, but the company's social media apps like Facebook, Instagram, and WhatsApp built Meta into the juggernaut it is today. Collectively, these apps have 2.93 billion daily active users, and 3.71 billion if you go by monthly active users. In other words, nearly half of the world's population uses one of Meta's apps at least once per month.
Meta advertises to this massive audience, which is how the company generated the vast majority of its $118 billion trailing 12-month revenue. But Meta's dominant platforms have a severe weakness: Apps live on devices, potentially putting device manufacturers like Apple between Meta and its users. It's like social media apps represent individual stores within a shopping mall, but Apple owns the mall itself, so it can make the rules for the stores and people that visit it.
If you're Meta, you can't refuse Apple's rules. Apple has roughly 1.8 billion active devices worldwide, a massive chunk of your user base. Apple began giving users the ability to deny apps like Meta's access to user data, which makes it much harder to track and target them with the appropriate ads. Meta estimated in February that the changes on Apple devices would cost it an estimated $10 billion in lost revenue in 2022.
Race to the future
So instead of letting Apple walk all over Meta, it seems that Mark Zuckerberg has decided that Meta will build its ecosystem (the shopping mall in the above example) so that it can operate freely and without the problems that a company like Apple is causing.
There are similarities if you consider the playbook Apple used. Apple developed a device that consumers loved (the iPhone) and grew to dominate that market. The hardware is ultimately a mousetrap to get you into Apple's iOS ecosystem, where you subscribe to services, buy apps, and generally play within Apple's rules.
People and technology evolve, though, and Meta hopes the smartphone will someday become antiquated. Zuckerberg seems to believe that augmented and virtual reality is the future, and that's why Meta's pushed so hard into the space, from its Ray-Ban story glasses to the Oculus Quest headsets.
Meta's in the phase where it creates a device that it hopes will capture an enormous market share. And just like the App store, the software ecosystem Meta builds around its hardware will be the crown jewel of the business model.
It's a tremendous bet by Meta, arguably the largest in corporate history. The company has maintained that it will spend tens of billions of dollars to see this through. It could be because Meta knows the long-term stakes, and it doesn't want to let Apple have the next big thing and end up in the same position again.
Will it work?
That's the billion-dollar question. If you're asking whether Meta can capture the AR/VR market, then it seems that's a yes. Meta has an estimated 90% market share of the world's VR headsets.
Of course, it's unknown whether the adoption of AR/VR headsets will reach the size needed to give Meta an iOS-size business, and it's still early enough that competition could emerge. Apple hasn't confirmed a headset product of its own, but CEO Tim Cook has hinted to its development.
Wall Street can quickly look at Meta's spending as a potential recession looms and hit the panic button. But Zuckerberg believes that life after smartphones is so vital to Meta's future that it must continue on. Zuckerberg has successfully created one of the world's most influential companies with bold decisions, but only time will tell whether Reality Labs will pan out too.
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. Justin Pope 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.
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Zuckerberg seems to believe that augmented and virtual reality is the future, and that's why Meta's pushed so hard into the space, from its Ray-Ban story glasses to the Oculus Quest headsets. Of course, it's unknown whether the adoption of AR/VR headsets will reach the size needed to give Meta an iOS-size business, and it's still early enough that competition could emerge. Zuckerberg has successfully created one of the world's most influential companies with bold decisions, but only time will tell whether Reality Labs will pan out too.
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Technology conglomerate Meta Platforms (NASDAQ: META) continues investing heavily in the metaverse. But doing the right thing isn't always popular, and Meta has forged on with its plans to invest tens of billions of dollars to develop its metaverse business Reality Labs, an investment that Zuckerberg has acknowledged could take years to bear fruit. 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.
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But Meta's dominant platforms have a severe weakness: Apps live on devices, potentially putting device manufacturers like Apple between Meta and its users. Race to the future So instead of letting Apple walk all over Meta, it seems that Mark Zuckerberg has decided that Meta will build its ecosystem (the shopping mall in the above example) so that it can operate freely and without the problems that a company like Apple is causing. 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.
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But doing the right thing isn't always popular, and Meta has forged on with its plans to invest tens of billions of dollars to develop its metaverse business Reality Labs, an investment that Zuckerberg has acknowledged could take years to bear fruit. 10 stocks we like better than Meta Platforms, Inc. That's right -- they think these 10 stocks are even better buys.
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18609.0
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2022-11-01 00:00:00 UTC
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Google pauses enforcing proprietary billing system in India after antitrust order
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AAPL
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https://www.nasdaq.com/articles/google-pauses-enforcing-proprietary-billing-system-in-india-after-antitrust-order
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nan
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nan
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By Aditya Kalra and Munsif Vengattil
NEW DELHI, Nov 1 (Reuters) - Alphabet Inc's GOOGL.O Google is pausing the enforcement of a policy that requires app developers in India to use its proprietary billing system for selling digital goods, following a ruling by the country's antitrust body.
Google had previously set an extended deadline of Oct. 31 for developers in India to integrate apps with its Google Play billing system, which collects a commission that ranges from 15%-30% for each sale.
The Competition Commission of India (CCI), however, ordered Google last week not to restrict app developers from using third-party billing or payment processing services in India, while fining it $113 million.
In a website update to developers on Tuesday, Google said the requirement to use its billing system still applied for users outside the country, adding it was reviewing legal options in India.
Last week, Reuters reported that Google was planning a legal challenge to block a separate CCI ruling that demanded a change in its approach to the Android operating system.
Globally, Google and Apple have faced criticism that the fees charged at their mobile app stores are needlessly high and cost developers collectively billions of dollars a year. Both have lowered fees in many circumstances and have said they are needed to fund a safe and secure mobile ecosystem.
"Today's decision helps protect our revenues. We hope that Google implements this permanently as it's not good for Indian digital startups - it amounts to digital tax for us," said Murugavel Janakiraman, the CEO of BharatMatrimony Group, which run various apps that help people find life partners.
Nearly 97% of India's 600 million smartphones run on Google's Android mobile operating system, and startups have banded together in the past to say the payment policy hurt their businesses.
Google on its part has begun to allow alternative payment systems in countries including India on a pilot basis, charging lower commissions.
(Reporting by Aditya Kalra and Munsif Vengattil in New Delhi and Praveen Paramasivam in Bengaluru; Editing by Rashmi Aich and Mark Potter)
((Praveen.Paramasivam@thomsonreuters.com; https://twitter.com/PraveenR_P ; +91 867-525-3569;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Aditya Kalra and Munsif Vengattil NEW DELHI, Nov 1 (Reuters) - Alphabet Inc's GOOGL.O Google is pausing the enforcement of a policy that requires app developers in India to use its proprietary billing system for selling digital goods, following a ruling by the country's antitrust body. Last week, Reuters reported that Google was planning a legal challenge to block a separate CCI ruling that demanded a change in its approach to the Android operating system. Globally, Google and Apple have faced criticism that the fees charged at their mobile app stores are needlessly high and cost developers collectively billions of dollars a year.
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By Aditya Kalra and Munsif Vengattil NEW DELHI, Nov 1 (Reuters) - Alphabet Inc's GOOGL.O Google is pausing the enforcement of a policy that requires app developers in India to use its proprietary billing system for selling digital goods, following a ruling by the country's antitrust body. The Competition Commission of India (CCI), however, ordered Google last week not to restrict app developers from using third-party billing or payment processing services in India, while fining it $113 million. Nearly 97% of India's 600 million smartphones run on Google's Android mobile operating system, and startups have banded together in the past to say the payment policy hurt their businesses.
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By Aditya Kalra and Munsif Vengattil NEW DELHI, Nov 1 (Reuters) - Alphabet Inc's GOOGL.O Google is pausing the enforcement of a policy that requires app developers in India to use its proprietary billing system for selling digital goods, following a ruling by the country's antitrust body. Google had previously set an extended deadline of Oct. 31 for developers in India to integrate apps with its Google Play billing system, which collects a commission that ranges from 15%-30% for each sale. The Competition Commission of India (CCI), however, ordered Google last week not to restrict app developers from using third-party billing or payment processing services in India, while fining it $113 million.
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By Aditya Kalra and Munsif Vengattil NEW DELHI, Nov 1 (Reuters) - Alphabet Inc's GOOGL.O Google is pausing the enforcement of a policy that requires app developers in India to use its proprietary billing system for selling digital goods, following a ruling by the country's antitrust body. The Competition Commission of India (CCI), however, ordered Google last week not to restrict app developers from using third-party billing or payment processing services in India, while fining it $113 million. Globally, Google and Apple have faced criticism that the fees charged at their mobile app stores are needlessly high and cost developers collectively billions of dollars a year.
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18610.0
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2022-11-01 00:00:00 UTC
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Shanghai Disney visitors told to stay home after COVID case, Foxconn ups bonuses
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AAPL
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https://www.nasdaq.com/articles/shanghai-disney-visitors-told-to-stay-home-after-covid-case-foxconn-ups-bonuses
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nan
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nan
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SHANGHAI, Nov 1 (Reuters) - Several Shanghai residents received fresh stay-at-home orders and mandatory testing notices on Tuesday as authorities raced to trace contacts linked to a COVID-positive woman whose visit to the city's Disney Resort prompted its temporary lockdown.
In the central Chinese city of Zhengzhou, meanwhile, Apple AAPL.O iPhone manufacturer Foxconn 2317.TW announced a big increase in bonuses to stem an exodus of workers rattled by coronavirus curbs at its vast facility there, as China's strict zero-COVID policy exacts a rising toll on the world's No.2 economy.
Rising unease in China's commercial hub of Shanghai comes as the country's daily local case count hit 2,719, a small figure by global standards but its highest level since Aug 17, prompting other cities such as Guangzhou and Dandong to tighten measures, although Zhengzhou unexpectedly eased its quasi-lockdown.
The Shanghai Disney Resort on Monday abruptly shut its gates, locking in all visitors at the time and only allowing them to leave, hours later, after they had tested negative for the virus.
Several city residents told Reuters they were notified on Tuesday that they or their children could not go to work or school if they had visited Disney since Thursday and were ordered to take daily tests for the next three days.
One said she was informed that her family might have to go into central quarantine.
Marvis He was among Disney visitors caught up in the resort's lockdown, having flown in from Shenzhen in hopes of enjoying the park's Halloween themed fireworks.
"I feel disappointed, we waited so long in the park ... but we didn't get to see anything and only got to get out at 10 p.m.," she told Reuters as she departed the resort.
"We were also cold and hungry," her companion added.
City authorities said the resort was shut after a 31-year-old woman, who had visited the park among other places in recent days, tested positive for the virus.
GOING IT ALONE
While much of the world has started to open up, China has vowed to stick to its zero-tolerance approach to COVID-19 with lockdowns and mass testing imposed when even a single case is found.
The policy has met with growing discontent from the public and businesses, and been blamed for contributing to weak growth.
"COVID-zero changes the calculus of doing business within China," said Michael Hart, president of the American Chamber of Commerce in China in Beijing.
"Interruption from COVID-zero does appear to be the number one concern for our members, and number two is probably the slowing economy, mostly caused by interruption from COVID-zero."
Nomura estimated lockdowns and restrictions in 28 cities last week, affecting almost 208 million people, or 8.5% of China's GDP.
Foxconn has been one of the biggest corporate names affected by a quasi-lockdown of Zhengzhou, a major logistics hub in central China.
The company put its 200,000 workers at its plant in the city under closed-loop management on Oct. 13, triggering complaints from employees about food and their treatment and prompting many to leave.
In recent days, videos appearing to show departing Foxconn workers laden with luggage and walking along village roads towards their home towns have gone viral on Chinese social media.
Reuters was not able to independently verify the footage but workers have shared similar accounts with Reuters.
A source told Reuters on Monday the production of iPhones at the plant could slump by as much as 30% next month due to the situation. Foxconn on Tuesday announced it would quadruple daily bonuses for some of the plant's workers to 400 yuan ($55) should they continue to work there through November.
Zhengzhou unexpectedly lifted its quasi-lockdown on its nearly 13 million people, even as new locally transmitted cases more than doubled on Monday from the day before.
"For over 10 days, we have persevered and fought together, fighting the disease, advancing and retreating together, and working hard together, and finally we are ushering in a large-scale restoration of normal life and production in Zhengzhou," the city's counter-epidemic task-force wrote in an online letter to residents.
The current outbreak in Zhengzhou, the capital of Henan province, flared up after the Oct. 1-7 National Day holidays, prompting local authorities to start imposing the lockdown of various districts.
($1 = 7.3123 Chinese yuan renminbi)
(Reporting by Casey Hall, Engen Tham, Winni Zhou, Brenda Goh, Ryan Woo, Wang Jing, Liz Lee and Bernard Orr; Editing by Himani Sarkar and Lincoln Feast)
((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.
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In the central Chinese city of Zhengzhou, meanwhile, Apple AAPL.O iPhone manufacturer Foxconn 2317.TW announced a big increase in bonuses to stem an exodus of workers rattled by coronavirus curbs at its vast facility there, as China's strict zero-COVID policy exacts a rising toll on the world's No.2 economy. Rising unease in China's commercial hub of Shanghai comes as the country's daily local case count hit 2,719, a small figure by global standards but its highest level since Aug 17, prompting other cities such as Guangzhou and Dandong to tighten measures, although Zhengzhou unexpectedly eased its quasi-lockdown. "For over 10 days, we have persevered and fought together, fighting the disease, advancing and retreating together, and working hard together, and finally we are ushering in a large-scale restoration of normal life and production in Zhengzhou," the city's counter-epidemic task-force wrote in an online letter to residents.
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In the central Chinese city of Zhengzhou, meanwhile, Apple AAPL.O iPhone manufacturer Foxconn 2317.TW announced a big increase in bonuses to stem an exodus of workers rattled by coronavirus curbs at its vast facility there, as China's strict zero-COVID policy exacts a rising toll on the world's No.2 economy. SHANGHAI, Nov 1 (Reuters) - Several Shanghai residents received fresh stay-at-home orders and mandatory testing notices on Tuesday as authorities raced to trace contacts linked to a COVID-positive woman whose visit to the city's Disney Resort prompted its temporary lockdown. The current outbreak in Zhengzhou, the capital of Henan province, flared up after the Oct. 1-7 National Day holidays, prompting local authorities to start imposing the lockdown of various districts.
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In the central Chinese city of Zhengzhou, meanwhile, Apple AAPL.O iPhone manufacturer Foxconn 2317.TW announced a big increase in bonuses to stem an exodus of workers rattled by coronavirus curbs at its vast facility there, as China's strict zero-COVID policy exacts a rising toll on the world's No.2 economy. SHANGHAI, Nov 1 (Reuters) - Several Shanghai residents received fresh stay-at-home orders and mandatory testing notices on Tuesday as authorities raced to trace contacts linked to a COVID-positive woman whose visit to the city's Disney Resort prompted its temporary lockdown. Rising unease in China's commercial hub of Shanghai comes as the country's daily local case count hit 2,719, a small figure by global standards but its highest level since Aug 17, prompting other cities such as Guangzhou and Dandong to tighten measures, although Zhengzhou unexpectedly eased its quasi-lockdown.
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In the central Chinese city of Zhengzhou, meanwhile, Apple AAPL.O iPhone manufacturer Foxconn 2317.TW announced a big increase in bonuses to stem an exodus of workers rattled by coronavirus curbs at its vast facility there, as China's strict zero-COVID policy exacts a rising toll on the world's No.2 economy. Several city residents told Reuters they were notified on Tuesday that they or their children could not go to work or school if they had visited Disney since Thursday and were ordered to take daily tests for the next three days. Foxconn has been one of the biggest corporate names affected by a quasi-lockdown of Zhengzhou, a major logistics hub in central China.
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18611.0
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2022-11-01 00:00:00 UTC
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Apple supplier Foxconn quadruples bonuses to staff hit by China COVID lockdown
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AAPL
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https://www.nasdaq.com/articles/apple-supplier-foxconn-quadruples-bonuses-to-staff-hit-by-china-covid-lockdown
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Adds details on Foxconn's measures at the plant
Nov 1 (Reuters) - Apple AAPL.O supplier Foxconn 2317.TWsaid on Tuesday it has quadrupled bonuses on offer for workers at its Zhengzhou plant in central China as it works to quell employee discontent at the major iPhone manufacturing site over COVID curbs.
Daily bonuses for employees, who are part of a Foxconn unit responsible for making electronics including smartphones at the site, have been raised to 400 yuan ($54.72) a day for November from previously announced bonuses of 100 yuan, according to the official WeChat account of Foxconn's Zhengzhou plant.
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 Zhengzhou plant has been rocked by discontent over stringent measures to curb the spread of COVID-19, with several workers fleeing the site over the weekend after complaining about their treatment and provisionsvia social media.
Reuters reported on Monday, citing a source, that the production of iPhones in November could slump by as much as 30% at the plant due to the situation and that Foxconn was working to boost production at another factory in Shenzhen to make up for the shortfall.
Foxconn's shares 2317.TW were down 1% on Tuesday, lagging a 0.4% rise in the broader index .TWII.
The original bonus scheme was initially outlined in an article on Monday by the government backed Henan Daily newspaper citing a senior unnamed Foxconn executive.
Foxconn's notice on Tuesday also said those who work for more than 25 days could get a maximum bonus of 5,000 yuan for the month, the company said, up from previous maximum of 1,500 yuan, as part of an effort to "gradually resume orderly production" and to "thank our fellow employees' persistence."
Those who put in their "full effort" during November, including forgoing any leave, could be paid a total of over 15,000 yuan for the month, the notice added.
A typical Foxconn worker makes between 3,000 to 4,000 yuan a month.
CLOSED LOOP TOLL
Videos circulating on social media appear to show departing Foxconn workers laden with luggage and walking along village roads towards their home towns.
The footage, which could not be independently verified, as well as accounts employees shared with Reuters have illustrated the disruptions China's zero-COVID policy are causing to both the public and businesses.
The country's zero approach towards COVID-19 requires localities to act swiftly to curb outbreaks with measures including lockdowns, but it allows factories in affected areas to stay open on condition they operate under a "closed loop" system where staff live and work on-site.
However, businesses have complained about the difficulties of the system and the toll on staff. Many people who said they were Foxconn workers turned to social media to complain about receiving insufficient food or about the uncertainty of the situation.
The senior executive cited by the Henan Daily said Foxconn started carrying out daily COVID testing for its staff at the site on Oct. 10, and three days later implemented the closed loop system by moving staff living off-site into its dormitories.
Foxconn did not immediately respond to a request for comment on the Henan Daily article. The Henan Daily is the official newspaper of Henan province, of which Zhengzhou is the capital.
Foxconn has not disclosed whether any workers at the Zhengzhou site had been diagnosed with COVID-19 but the executive told the Henan Daily that there had been no severe infections and the company had set up a team to transfer infected staff to quarantine.
(Reporting by Brenda Goh; Additional reporting by Yimou Lee in Taipei; Editing by Stephen Coates and Christian Schmollinger)
((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.
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Adds details on Foxconn's measures at the plant Nov 1 (Reuters) - Apple AAPL.O supplier Foxconn 2317.TWsaid on Tuesday it has quadrupled bonuses on offer for workers at its Zhengzhou plant in central China as it works to quell employee discontent at the major iPhone manufacturing site over COVID curbs. The Zhengzhou plant has been rocked by discontent over stringent measures to curb the spread of COVID-19, with several workers fleeing the site over the weekend after complaining about their treatment and provisionsvia social media. The original bonus scheme was initially outlined in an article on Monday by the government backed Henan Daily newspaper citing a senior unnamed Foxconn executive.
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Adds details on Foxconn's measures at the plant Nov 1 (Reuters) - Apple AAPL.O supplier Foxconn 2317.TWsaid on Tuesday it has quadrupled bonuses on offer for workers at its Zhengzhou plant in central China as it works to quell employee discontent at the major iPhone manufacturing site over COVID curbs. Daily bonuses for employees, who are part of a Foxconn unit responsible for making electronics including smartphones at the site, have been raised to 400 yuan ($54.72) a day for November from previously announced bonuses of 100 yuan, according to the official WeChat account of Foxconn's Zhengzhou plant. The senior executive cited by the Henan Daily said Foxconn started carrying out daily COVID testing for its staff at the site on Oct. 10, and three days later implemented the closed loop system by moving staff living off-site into its dormitories.
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Adds details on Foxconn's measures at the plant Nov 1 (Reuters) - Apple AAPL.O supplier Foxconn 2317.TWsaid on Tuesday it has quadrupled bonuses on offer for workers at its Zhengzhou plant in central China as it works to quell employee discontent at the major iPhone manufacturing site over COVID curbs. Daily bonuses for employees, who are part of a Foxconn unit responsible for making electronics including smartphones at the site, have been raised to 400 yuan ($54.72) a day for November from previously announced bonuses of 100 yuan, according to the official WeChat account of Foxconn's Zhengzhou plant. The senior executive cited by the Henan Daily said Foxconn started carrying out daily COVID testing for its staff at the site on Oct. 10, and three days later implemented the closed loop system by moving staff living off-site into its dormitories.
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Adds details on Foxconn's measures at the plant Nov 1 (Reuters) - Apple AAPL.O supplier Foxconn 2317.TWsaid on Tuesday it has quadrupled bonuses on offer for workers at its Zhengzhou plant in central China as it works to quell employee discontent at the major iPhone manufacturing site over COVID curbs. The senior executive cited by the Henan Daily said Foxconn started carrying out daily COVID testing for its staff at the site on Oct. 10, and three days later implemented the closed loop system by moving staff living off-site into its dormitories. The Henan Daily is the official newspaper of Henan province, of which Zhengzhou is the capital.
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18612.0
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2022-11-01 00:00:00 UTC
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Should Vanguard Russell 1000 ETF (VONE) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-russell-1000-etf-vone-be-on-your-investing-radar-4
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Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the Vanguard Russell 1000 ETF (VONE), a passively managed exchange traded fund launched on 09/22/2010.
The fund is sponsored by Vanguard. It has amassed assets over $2.92 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
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 0.08%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.59%.
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 26.20% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.43% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 25.43% of total assets under management.
Performance and Risk
VONE seeks to match the performance of the Russell 1000 Index before fees and expenses. The Russell 1000 Index measures the performance of large-capitalization stocks in the United States.
The ETF has lost about -18.99% so far this year and is down about -16.35% in the last one year (as of 11/01/2022). In the past 52-week period, it has traded between $162.86 and $219.99.
The ETF has a beta of 1.02 and standard deviation of 25.32% for the trailing three-year period, making it a medium risk choice in the space. With about 1022 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Russell 1000 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, VONE 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 $294.41 billion in assets, SPDR S&P 500 ETF has $363.98 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.
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Vanguard Russell 1000 ETF (VONE): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.43% 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 $2.92 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
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Apple Inc. (AAPL): Free Stock Analysis Report Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.43% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). You should consider the Vanguard Russell 1000 ETF (VONE), a passively managed exchange traded fund launched on 09/22/2010.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.43% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives Vanguard Russell 1000 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.43% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Sector Exposure and Top Holdings Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing.
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18613.0
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2022-10-31 00:00:00 UTC
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After Hours Most Active for Oct 31, 2022 : ACGL, AAPL, NYCB, GOOG, GOOGL, T, CSCO, VZ, CG, IBN, CMA, PFE
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-oct-31-2022-%3A-acgl-aapl-nycb-goog-googl-t-csco-vz-cg-ibn-cma
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The NASDAQ 100 After Hours Indicator is up 5.03 to 11,410.6. The total After hours volume is currently 141,673,899 shares traded.
The following are the most active stocks for the after hours session:
Arch Capital Group Ltd. (ACGL) is -0.19 at $57.31, with 37,578,308 shares traded., following a 52-week high recorded in today's regular session.
Apple Inc. (AAPL) is +0.01 at $153.35, with 4,560,938 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. The consensus EPS forecast is $2.12. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
New York Community Bancorp, Inc. (NYCB) is unchanged at $9.31, with 3,709,802 shares traded. NYCB's current last sale is 93.1% of the target price of $10.
Alphabet Inc. (GOOG) is +0.15 at $94.81, with 2,728,567 shares traded. As reported by Zacks, the current mean recommendation for GOOG is in the "buy range".
Alphabet Inc. (GOOGL) is +0.18 at $94.69, with 2,700,003 shares traded. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
AT&T Inc. (T) is unchanged at $18.23, with 2,215,202 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 81.02% of the target price of $22.5.
Cisco Systems, Inc. (CSCO) is -0.04 at $45.39, with 2,138,883 shares traded. CSCO's current last sale is 87.29% of the target price of $52.
Verizon Communications Inc. (VZ) is +0.01 at $37.38, with 2,004,623 shares traded. VZ's current last sale is 74.76% of the target price of $50.
The Carlyle Group Inc. (CG) is unchanged at $28.28, with 1,916,706 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2022. The consensus EPS forecast is $1.04. As reported by Zacks, the current mean recommendation for CG is in the "buy range".
ICICI Bank Limited (IBN) is unchanged at $22.04, with 1,910,876 shares traded. As reported by Zacks, the current mean recommendation for IBN is in the "strong buy range".
Comerica Incorporated (CMA) is unchanged at $70.50, with 1,856,297 shares traded. CMA's current last sale is 82.94% of the target price of $85.
Pfizer, Inc. (PFE) is +0.1 at $46.65, with 1,519,711 shares traded.PFE is scheduled to provide an earnings report on 11/1/2022, for the fiscal quarter ending Sep2022. The consensus earnings per share forecast is 1.47 per share, which represents a 134 percent increase over the EPS one Year Ago
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is +0.01 at $153.35, with 4,560,938 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Arch Capital Group Ltd. (ACGL) is -0.19 at $57.31, with 37,578,308 shares traded., following a 52-week high recorded in today's regular session.
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Apple Inc. (AAPL) is +0.01 at $153.35, with 4,560,938 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022.
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Apple Inc. (AAPL) is +0.01 at $153.35, with 4,560,938 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 141,673,899 shares traded.
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Apple Inc. (AAPL) is +0.01 at $153.35, with 4,560,938 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". AT&T Inc. (T) is unchanged at $18.23, with 2,215,202 shares traded.
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18614.0
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2022-10-31 00:00:00 UTC
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Foxconn raises daily bonuses for some staff at Zhengzhou plant in China
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AAPL
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https://www.nasdaq.com/articles/foxconn-raises-daily-bonuses-for-some-staff-at-zhengzhou-plant-in-china
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nan
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BEIJING, Nov 1 (Reuters) - Apple iPhone maker Foxconn 2317.TW said on Tuesday that daily bonuses for some of its staff at its Zhengzhou plant in central China had been raised to 400 yuan ($54.75) from 100 yuan.
($1 = 7.3062 Chinese yuan)
(Reporting by Ryan Woo; Editing by Jacqueline Wong)
((Ryan.Woo@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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BEIJING, Nov 1 (Reuters) - Apple iPhone maker Foxconn 2317.TW said on Tuesday that daily bonuses for some of its staff at its Zhengzhou plant in central China had been raised to 400 yuan ($54.75) from 100 yuan. ($1 = 7.3062 Chinese yuan) (Reporting by Ryan Woo; Editing by Jacqueline Wong) ((Ryan.Woo@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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BEIJING, Nov 1 (Reuters) - Apple iPhone maker Foxconn 2317.TW said on Tuesday that daily bonuses for some of its staff at its Zhengzhou plant in central China had been raised to 400 yuan ($54.75) from 100 yuan. ($1 = 7.3062 Chinese yuan) (Reporting by Ryan Woo; Editing by Jacqueline Wong) ((Ryan.Woo@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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BEIJING, Nov 1 (Reuters) - Apple iPhone maker Foxconn 2317.TW said on Tuesday that daily bonuses for some of its staff at its Zhengzhou plant in central China had been raised to 400 yuan ($54.75) from 100 yuan. ($1 = 7.3062 Chinese yuan) (Reporting by Ryan Woo; Editing by Jacqueline Wong) ((Ryan.Woo@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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BEIJING, Nov 1 (Reuters) - Apple iPhone maker Foxconn 2317.TW said on Tuesday that daily bonuses for some of its staff at its Zhengzhou plant in central China had been raised to 400 yuan ($54.75) from 100 yuan. ($1 = 7.3062 Chinese yuan) (Reporting by Ryan Woo; Editing by Jacqueline Wong) ((Ryan.Woo@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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18615.0
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2022-10-31 00:00:00 UTC
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Apple supplier Foxconn gives pay rise to staff hit by COVID lockdown - media
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AAPL
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https://www.nasdaq.com/articles/apple-supplier-foxconn-gives-pay-rise-to-staff-hit-by-covid-lockdown-media
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Nov 1 (Reuters) - Apple AAPL.O supplier Foxconn 2317.TW has increased wages and is handing bonuses to workers at its Zhengzhou plant in central China, Chinese government-backed media reported, as it works to quell employee discontent at the site over COVID curbs.
Daily wages for employees, who are part of a Foxconn unit responsible for making electronics including smartphones at the site, have been raised to 100 yuan ($13.70) between Oct. 26 to Nov. 11, the Henan Daily newspaper cited an unnamed head of the firm's integrated digital product business group unit as saying on Monday.
The company, formally Hon Hai Precision Industry Co Ltd, is also giving all employees at the site who have attended work as normal since Oct. 19 and complied with virus prevention measures a bonus of 50 yuan a day, the person said.
Foxconn did not immediately respond to a request for comment on the Henan Daily article. The Henan Daily is the official newspaper of the province of Henan, of which Zhengzhou is the capital.
Foxconn 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 Zhengzhou plant has been rocked by discontent over stringent measures to curb the spread of COVID-19, with several workers fleeing the site over the weekend.
Reuters reported on Monday, citing a source, that November production of iPhones could slump by as much as 30% at the plant due to the situation and that Foxconn was working to boost production at another factory in Shenzhen city to make up for the shortfall.
($1 = 7.3015 Chinese yuan renminbi)
(Reporting by Brenda Goh; Additional reporting by Yimou Lee in Taipei; Editing by 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.
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Nov 1 (Reuters) - Apple AAPL.O supplier Foxconn 2317.TW has increased wages and is handing bonuses to workers at its Zhengzhou plant in central China, Chinese government-backed media reported, as it works to quell employee discontent at the site over COVID curbs. The company, formally Hon Hai Precision Industry Co Ltd, is also giving all employees at the site who have attended work as normal since Oct. 19 and complied with virus prevention measures a bonus of 50 yuan a day, the person said. The Zhengzhou plant has been rocked by discontent over stringent measures to curb the spread of COVID-19, with several workers fleeing the site over the weekend.
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Nov 1 (Reuters) - Apple AAPL.O supplier Foxconn 2317.TW has increased wages and is handing bonuses to workers at its Zhengzhou plant in central China, Chinese government-backed media reported, as it works to quell employee discontent at the site over COVID curbs. Daily wages for employees, who are part of a Foxconn unit responsible for making electronics including smartphones at the site, have been raised to 100 yuan ($13.70) between Oct. 26 to Nov. 11, the Henan Daily newspaper cited an unnamed head of the firm's integrated digital product business group unit as saying on Monday. Reuters reported on Monday, citing a source, that November production of iPhones could slump by as much as 30% at the plant due to the situation and that Foxconn was working to boost production at another factory in Shenzhen city to make up for the shortfall.
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Nov 1 (Reuters) - Apple AAPL.O supplier Foxconn 2317.TW has increased wages and is handing bonuses to workers at its Zhengzhou plant in central China, Chinese government-backed media reported, as it works to quell employee discontent at the site over COVID curbs. Daily wages for employees, who are part of a Foxconn unit responsible for making electronics including smartphones at the site, have been raised to 100 yuan ($13.70) between Oct. 26 to Nov. 11, the Henan Daily newspaper cited an unnamed head of the firm's integrated digital product business group unit as saying on Monday. Reuters reported on Monday, citing a source, that November production of iPhones could slump by as much as 30% at the plant due to the situation and that Foxconn was working to boost production at another factory in Shenzhen city to make up for the shortfall.
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Nov 1 (Reuters) - Apple AAPL.O supplier Foxconn 2317.TW has increased wages and is handing bonuses to workers at its Zhengzhou plant in central China, Chinese government-backed media reported, as it works to quell employee discontent at the site over COVID curbs. The Henan Daily is the official newspaper of the province of Henan, of which Zhengzhou is the capital. Reuters reported on Monday, citing a source, that November production of iPhones could slump by as much as 30% at the plant due to the situation and that Foxconn was working to boost production at another factory in Shenzhen city to make up for the shortfall.
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18616.0
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2022-10-31 00:00:00 UTC
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Earnings Erase $350B From Big Tech: 5 ETFs With Strength
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AAPL
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https://www.nasdaq.com/articles/earnings-erase-%24350b-from-big-tech%3A-5-etfs-with-strength
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nan
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nan
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Tech titans had a dismal week, buoyed by weak earnings results and a disappointing outlook. The so-called "GAMMA" stocks — Alphabet GOOGL, Apple AAPL, Microsoft MSFT, Meta Platforms META, and Amazon AMZN — collectively shed about $350 billion in market value last week.
Amid the sell-off, a few ETFs gained handsomely last week, surviving the rout. These include Global X Blockchain ETF BKCH, VanEck Vectors Digital Transformation ETF DAPP, iShares North American Tech-Multimedia Networking ETF IGN, ARK Next Generation Internet ETF ARKW, and ARK Innovation ETF ARKK.
Earnings Impact
Microsoft and Alphabet lost about $280 billion in combined market value post their earnings results, while Meta Plarform had its worst week since the company’s IPO in 2012, plunging 24% over the past five days. Microsoft posted its weakest quarterly revenue growth in five years and issued downbeat second-quarter revenues on slowing computer sales. Google's parent company Alphabet missed both revenue and earnings estimates due to slowing ad sales growth (read: Alphabet Slips on Q3 Earnings Miss: ETFs in Focus).
The social media giant reported its second consecutive quarterly drop in revenues and provided a gloomy forecast given the broader fallout in digital advertisement. Meanwhile, Amazon’s market value sank by $170 billion, pushing its market capitalization below $1 trillion after the worst forecast for holiday-quarter growth in its history.
However, Apple bucked the trend and added $178 billion to its market value after better-than-expected fourth-quarter results. The stock was up 7.6%, leaving the iPhone maker worth $2.5 trillion in value.
Including Netflix NFLX and Tesla TSLA, the seven tech titans erased about $3 trillion in their market cap from a year-to-date-look. After two straight quarters of subscriber losses, the world's largest video streaming company returned to growth, which marks a major turnaround that has been plagued by declining growth during the past year. Tesla posted record revenues but still missed the estimates as it delivered fewer vehicles than expected (read: Tesla Revenues Miss in Q3 Earnings Put These ETFs in Focus).
Out of the seven, Apple is still the bright stock, losing a meager $35 billion, while Alphabet is the biggest laggard, shedding nearly $698 billion this year.
Global X Blockchain ETF (BKCH) – Up 14.4%
Global X Blockchain ETF seeks to invest in companies positioned to benefit from the increased adoption of blockchain technology, including companies in digital asset mining, blockchain & digital asset transactions, blockchain applications, blockchain & digital asset hardware, and blockchain & digital asset integration. Global X Blockchain ETF holds 24 stocks in its basket with a double-digit allocation to the three top firms.
Global X Blockchain ETF has gathered $69.5 million in its asset base and trades in an average daily volume of 113,000 shares. It charges 50 bps in annual fees.
VanEck Vectors Digital Transformation ETF (DAPP) – Up 11.1%
VanEck Vectors Digital Transformation ETF aims to offer exposure to companies that are at the forefront of the digital asset transformation, such as digital asset exchanges, payment gateways, digital asset mining operations, software services, equipment and technology or services to the digital asset operations, digital asset infrastructure businesses or companies facilitating commerce with the use of digital assets. VanEck Vectors Digital Transformation ETF tracks the MVIS Global Digital Assets Equity Index and holds 25 securities in its basket.
VanEck Vectors Digital Transformation ETF charges 50 bps in annual fees and trades in an average daily volume of 79,000. DAPP has accumulated $31 million in its asset base.
iShares North American Tech-Multimedia Networking ETF (IGN) – Up 9%
iShares North American Tech-Multimedia Networking ETF provides exposure to telecom equipment, data networking and wireless equipment companies by tracking the S&P North American Technology-Multimedia Networking Index. It holds 21 securities in its basket (read: Least-Hurt Top-Ranked Tech ETFs You May Consider Now).
iShares North American Tech-Multimedia Networking ETF has accumulated $109.3 million in its asset base and sees a light volume of around 11,000 shares a day. IGN charges 40 bps in annual fees and carries a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook.
ARK Next Generation Internet ETF (ARKW) – Up 7.5%
ARK Next Generation Internet ETF is an actively managed fund focusing on companies expected to benefit from the shift in technology infrastructure to the cloud, enabling mobile, new and local services. The fund holds 31 stocks in its basket, with none accounting for more than 8.2% of the assets.
ARK Next Generation Internet ETF has amassed $1.2 billion in its asset base and charges 83 bps in annual fees. It trades in an average daily volume of 891,000 shares.
ARK Innovation ETF (ARKK) – Up 7.4%
ARK Innovation ETF is an actively managed fund investing in companies that benefit from the development of new products or services, technological improvements and advancements in scientific research. In total, the fund holds 32 securities in its basket, with none accounting for more than 9.3% of the assets.
ARK Innovation ETF has gathered $7.6 billion in its asset base and charges 75 bps in fees per year from investors. It trades in a volume of 23.6 million shares per day on average.
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Apple Inc. (AAPL): Free Stock Analysis Report
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Netflix, Inc. (NFLX): Free Stock Analysis Report
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ARK Next Generation Internet ETF (ARKW): ETF Research Reports
ARK Innovation ETF (ARKK): ETF Research Reports
iShares North American TechMultimedia Networking ETF (IGN): ETF Research Reports
Global X Blockchain ETF (BKCH): ETF Research Reports
VanEck Digital Transformation ETF (DAPP): ETF Research Reports
Meta Platforms, Inc. (META): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The so-called "GAMMA" stocks — Alphabet GOOGL, Apple AAPL, Microsoft MSFT, Meta Platforms META, and Amazon AMZN — collectively shed about $350 billion in market value last week. Apple Inc. (AAPL): Free Stock Analysis Report The social media giant reported its second consecutive quarterly drop in revenues and provided a gloomy forecast given the broader fallout in digital advertisement.
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The so-called "GAMMA" stocks — Alphabet GOOGL, Apple AAPL, Microsoft MSFT, Meta Platforms META, and Amazon AMZN — collectively shed about $350 billion in market value last week. Apple Inc. (AAPL): Free Stock Analysis Report These include Global X Blockchain ETF BKCH, VanEck Vectors Digital Transformation ETF DAPP, iShares North American Tech-Multimedia Networking ETF IGN, ARK Next Generation Internet ETF ARKW, and ARK Innovation ETF ARKK.
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The so-called "GAMMA" stocks — Alphabet GOOGL, Apple AAPL, Microsoft MSFT, Meta Platforms META, and Amazon AMZN — collectively shed about $350 billion in market value last week. Apple Inc. (AAPL): Free Stock Analysis Report These include Global X Blockchain ETF BKCH, VanEck Vectors Digital Transformation ETF DAPP, iShares North American Tech-Multimedia Networking ETF IGN, ARK Next Generation Internet ETF ARKW, and ARK Innovation ETF ARKK.
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The so-called "GAMMA" stocks — Alphabet GOOGL, Apple AAPL, Microsoft MSFT, Meta Platforms META, and Amazon AMZN — collectively shed about $350 billion in market value last week. Apple Inc. (AAPL): Free Stock Analysis Report These include Global X Blockchain ETF BKCH, VanEck Vectors Digital Transformation ETF DAPP, iShares North American Tech-Multimedia Networking ETF IGN, ARK Next Generation Internet ETF ARKW, and ARK Innovation ETF ARKK.
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18617.0
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2022-10-31 00:00:00 UTC
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US STOCKS-Wall Street ends strong month on weaker note; focus on Fed meeting
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-ends-strong-month-on-weaker-note-focus-on-fed-meeting-0
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nan
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nan
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By Chuck Mikolajczak
NEW YORK, Oct 31 (Reuters) - U.S. stocks lost ground on Monday, with the major indexes closing out a strong month of gains on a weaker foot, as investor focus turned to the Federal Reserve's policy meeting this week.
The central bank is widely expected to raise interest rates by 75 basis points on Wednesday at the conclusion of its two-day policy meeting, but investors will look for any signals the Fed may be considering a deceleration in interest rate hikes in the future.
Hopes the Fed may pull back from its aggressive interest rate hike policy have lifted equities in recent weeks, with the S&P 500 notching a gain of nearly 9% over the past two weeks. The Dow booked its biggest monthly percentage gain since January 1976 and biggest October percentage gain since at least 1900.
Comments from Fed officials after the policy decision as well as labor market data later this week will help shape market expectations for future hikes starting at the December meeting.
"It is pretty much a foregone conclusion, it has been almost a 100% probability for at least three weeks now that it would be three-quarters of a point and very little chance that it is going to be more or less than that, but there is always apprehension on the part of everyone just waiting for that to be done," said Randy Frederick, managing director, trading and derivatives, Charles Schwab in Austin, Texas.
"People are going to be digesting what is said on Wednesday about what happens on Dec. 14. My hope is that would be a quarter point. In reality, it is probably going to be half a point, but even that would be a very positive sign for the market."
The Dow Jones Industrial Average .DJI fell 128.85 points, or 0.39%, to 32,732.95, the S&P 500 .SPX lost 29.08 points, or 0.75%, to 3,871.98 and the Nasdaq Composite .IXIC dropped 114.31 points, or 1.03%, to 10,988.15.
For the month, the Dow jumped 13.95%, the S&P climbed 7.99% and the Nasdaq advanced 3.9%.
Apple Inc AAPL.O lost 1.54% after a Reuters report said production of its iPhones could slump by as much as 30% next month due to tightening COVID-19 curbs in China.
Megacap growth names such as Amazon.com AMZN.O and Google-owner Alphabet GOOGL.O which have been under pressure in the rising rate environment, were also lower, down 0.94% and 1.85%, respectively.
Nearly all 11 S&P 500 sectors fell, with technology .SPLRCT and communication services .SPLRCL the worst performers with declines of more than 1%. Energy was the sole advancer ahead of remarks on oil companies by U.S. President Joe Biden later on Monday.
Energy companies such as Chevron CVX.N and Exxon Mobil XOM.N handily beaten profit estimates this quarter, benefiting from surging energy prices, in contrast to Big Tech firms that have largely disappointed investors.
With around half of the companies in the S&P 500 having reported their quarterly results so far, third-quarter earnings growth estimates stands at 4%, according to Refintiv data, slightly lower than the 4.1% last week.
Global Payments Inc GPN.N slumped 8.82% after the company forecast full-year revenue below estimates.
Volume on U.S. exchanges was 11.53 billion shares, compared with the 11.52 billion average for the full session over the last 20 trading days.
Declining issues outnumbered advancing ones on the NYSE by a 1.29-to-1 ratio; on Nasdaq, a 1.22-to-1 ratio favored decliners.
The S&P 500 posted 24 new 52-week highs and 8 new lows; the Nasdaq Composite recorded 137 new highs and 113 new lows.
(Reporting by Chuck Mikolajczak; Editing by Cynthia Osterman)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O lost 1.54% after a Reuters report said production of its iPhones could slump by as much as 30% next month due to tightening COVID-19 curbs in China. By Chuck Mikolajczak NEW YORK, Oct 31 (Reuters) - U.S. stocks lost ground on Monday, with the major indexes closing out a strong month of gains on a weaker foot, as investor focus turned to the Federal Reserve's policy meeting this week. "It is pretty much a foregone conclusion, it has been almost a 100% probability for at least three weeks now that it would be three-quarters of a point and very little chance that it is going to be more or less than that, but there is always apprehension on the part of everyone just waiting for that to be done," said Randy Frederick, managing director, trading and derivatives, Charles Schwab in Austin, Texas.
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Apple Inc AAPL.O lost 1.54% after a Reuters report said production of its iPhones could slump by as much as 30% next month due to tightening COVID-19 curbs in China. The central bank is widely expected to raise interest rates by 75 basis points on Wednesday at the conclusion of its two-day policy meeting, but investors will look for any signals the Fed may be considering a deceleration in interest rate hikes in the future. Hopes the Fed may pull back from its aggressive interest rate hike policy have lifted equities in recent weeks, with the S&P 500 notching a gain of nearly 9% over the past two weeks.
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Apple Inc AAPL.O lost 1.54% after a Reuters report said production of its iPhones could slump by as much as 30% next month due to tightening COVID-19 curbs in China. By Chuck Mikolajczak NEW YORK, Oct 31 (Reuters) - U.S. stocks lost ground on Monday, with the major indexes closing out a strong month of gains on a weaker foot, as investor focus turned to the Federal Reserve's policy meeting this week. The central bank is widely expected to raise interest rates by 75 basis points on Wednesday at the conclusion of its two-day policy meeting, but investors will look for any signals the Fed may be considering a deceleration in interest rate hikes in the future.
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Apple Inc AAPL.O lost 1.54% after a Reuters report said production of its iPhones could slump by as much as 30% next month due to tightening COVID-19 curbs in China. My hope is that would be a quarter point. For the month, the Dow jumped 13.95%, the S&P climbed 7.99% and the Nasdaq advanced 3.9%.
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18618.0
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2022-10-31 00:00:00 UTC
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Apple Provides Further Proof of Dominance in the Business World
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AAPL
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https://www.nasdaq.com/articles/apple-provides-further-proof-of-dominance-in-the-business-world
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nan
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nan
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Apple's (NASDAQ: AAPL) stock jumped on the day following its third-quarter earnings release. The company effectively grappled with macroeconomic challenges to deliver solid top-line and bottom-line growth. This video will highlight the factors that excited stock market investors about Apple stock following Q3 earnings.
Stock prices used were the afternoon prices of Oct. 29, 2022. The video was published on Oct.30, 2022.
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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.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through fool.com/parkev, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple's (NASDAQ: AAPL) stock jumped on the day following its third-quarter earnings release. The company effectively grappled with macroeconomic challenges to deliver solid top-line and bottom-line growth. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Apple's (NASDAQ: AAPL) stock jumped on the day following its third-quarter earnings release. This video will highlight the factors that excited stock market investors about Apple stock following Q3 earnings. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Apple's (NASDAQ: AAPL) stock jumped on the day following its third-quarter earnings release. This video will highlight the factors that excited stock market investors about Apple stock following Q3 earnings. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Parkev Tatevosian has positions in Apple.
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Apple's (NASDAQ: AAPL) stock jumped on the day following its third-quarter earnings release. This video will highlight the factors that excited stock market investors about Apple stock following Q3 earnings. The Motley Fool has positions in and recommends Apple.
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18619.0
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2022-10-31 00:00:00 UTC
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US STOCKS-Wall Street falls after two-week rally; eyes on Fed meeting
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-falls-after-two-week-rally-eyes-on-fed-meeting
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nan
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nan
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By Chuck Mikolajczak
NEW YORK, Oct 31 (Reuters) - U.S. stocks fell on Monday, with the major indexes poised to close out a strong month on a soft note, as investor focus turned to the Federal Reserve's policy meeting this week.
The central bank is widely expected to raise interest rates by 75 basis points on Wednesday at the conclusion of its two-day policy meeting, but investors will look for any clues the Fed may be considering a deceleration in interest rate hikes in the future.
Hopes the Fed may pull back from its aggressive interest rate hike policy have lifted equities in recent weeks, with the S&P 500 notching a gain of nearly 9% over the past two weeks. The Dow was on track for its biggest monthly percentage gain since January 1976. Comments from Fed officials after the policy decision as well as labor market data later this week will help shape market expectations for future hikes.
"Today is just a reaction to what happened last week, we had a profound move in the market last week on the upside...so it makes sense that we certainly have to back and fill today," said Eric Diton, president and managing director at The Wealth Alliance in Boca Raton, Florida.
"We will wait and see and maybe the Fed meeting will give us some direction. November is a fait accompli; 75 basis points is baked in. Their goal is not to surprise the markets.
The Dow Jones Industrial Average .DJI fell 53.61 points, or 0.16%, to 32,808.19, the S&P 500 .SPX lost 19.06 points, or 0.49%, to 3,882 and the Nasdaq Composite .IXIC dropped 81.52 points, or 0.73%, to 11,020.93.
Apple Inc AAPL.O lost 1.12% after a Reuters report said production of its iPhones could slump by as much as 30% next month due to tightening COVID-19 curbs in China.
Megacap growth names, Amazon.com AMZN.O and Google-owner Alphabet GOOGL.O, which have been under pressure in the rising rate environment, were also lower and lost 0.84% and 1.63%, respectively.
Nearly all 11 S&P 500 sectors fell, with information technology .SPLRCT and communication services .SPLRCL the worst performers with declines of more than 1%. Energy gained 1.16% ahead of remarks on oil companies by U.S. President Joe Biden later today.
Energy firms such as Chevron CVX.N and Exxon Mobil XOM.N have blown past profit estimates this quarter, benefiting from surging energy prices, in contrast to Big Tech firms that have largely disappointed investors.
With around half of the companies in the S&P 500 having reported their quarterly results so far, third-quarter earnings growth estimates stands at 4%, according to Refintiv data, slightly lower than the 4.1% last week.
Global Payments Inc GPN.N fell 7.76% after the company forecast full-year revenue below estimates.
The S&P 500 posted 22 new 52-week highs and seven new lows; the Nasdaq Composite recorded 110 new highs and 94 new lows.
(Reporting by Chuck Mikolajczak; Editing by Cynthia Osterman)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O lost 1.12% after a Reuters report said production of its iPhones could slump by as much as 30% next month due to tightening COVID-19 curbs in China. By Chuck Mikolajczak NEW YORK, Oct 31 (Reuters) - U.S. stocks fell on Monday, with the major indexes poised to close out a strong month on a soft note, as investor focus turned to the Federal Reserve's policy meeting this week. With around half of the companies in the S&P 500 having reported their quarterly results so far, third-quarter earnings growth estimates stands at 4%, according to Refintiv data, slightly lower than the 4.1% last week.
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Apple Inc AAPL.O lost 1.12% after a Reuters report said production of its iPhones could slump by as much as 30% next month due to tightening COVID-19 curbs in China. The central bank is widely expected to raise interest rates by 75 basis points on Wednesday at the conclusion of its two-day policy meeting, but investors will look for any clues the Fed may be considering a deceleration in interest rate hikes in the future. Hopes the Fed may pull back from its aggressive interest rate hike policy have lifted equities in recent weeks, with the S&P 500 notching a gain of nearly 9% over the past two weeks.
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Apple Inc AAPL.O lost 1.12% after a Reuters report said production of its iPhones could slump by as much as 30% next month due to tightening COVID-19 curbs in China. The central bank is widely expected to raise interest rates by 75 basis points on Wednesday at the conclusion of its two-day policy meeting, but investors will look for any clues the Fed may be considering a deceleration in interest rate hikes in the future. Hopes the Fed may pull back from its aggressive interest rate hike policy have lifted equities in recent weeks, with the S&P 500 notching a gain of nearly 9% over the past two weeks.
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Apple Inc AAPL.O lost 1.12% after a Reuters report said production of its iPhones could slump by as much as 30% next month due to tightening COVID-19 curbs in China. The central bank is widely expected to raise interest rates by 75 basis points on Wednesday at the conclusion of its two-day policy meeting, but investors will look for any clues the Fed may be considering a deceleration in interest rate hikes in the future. The Dow Jones Industrial Average .DJI fell 53.61 points, or 0.16%, to 32,808.19, the S&P 500 .SPX lost 19.06 points, or 0.49%, to 3,882 and the Nasdaq Composite .IXIC dropped 81.52 points, or 0.73%, to 11,020.93.
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18620.0
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2022-10-31 00:00:00 UTC
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US STOCKS-Wall St drops as focus shifts to Fed rate decision
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-drops-as-focus-shifts-to-fed-rate-decision
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nan
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nan
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By Amruta Khandekar
Oct 31 (Reuters) - U.S. stocks fell on Monday, potentially stalling a two-week rally in the S&P 500 and the Nasdaq indexes, as investors turned cautious ahead of the Federal Reserve's rate-setting meeting this week.
A policy decision from the Fed is due on Wednesday, with investors expecting a fourth straight 75-basis point interest rate hike to curb decades-high inflation.
Hopes about the central bank easing its aggressive stance on interest rate hikes had buoyed equities over the last few weeks, but communication from Fed officials after the decision as well as non-farm payrolls data this week would be key in setting expectations for future interest rates.
"If that is (Fed pivot) in fact the take away from Wednesday's meeting commentary, there would be further upside to equity markets from the rally that we had," said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.
Apple Inc AAPL.O dropped 1.4%. A Reuters report said production of its iPhones could slump by as much as 30% next month due to tightening COVID-19 curbs in China.
Shares of Amazon.com AMZN.O and Google-owner Alphabet GOOGL.O were also down 1.4% and 1.5%, respectively.
Among S&P 500 sectors, information technology .SPLRCT and communication services .SPLRCL were the lead decliners, falling 1.2% and 1.5%, respectively.
Energy stocks .SPNY reversed gains after the White House said U.S. President Joe Biden, who has expressed outrage at oil companies making record profits while Americans pay high fuel prices, will make a statement on the issue later in the day.
Energy firms such as Chevron CVX.N and Exxon Mobil XOM.N have blown past profit estimates this quarter, benefiting from surging energy prices, as opposed to Big Tech firms that have largely disappointed investors.
Meanwhile, gains in shares of health insurer UnitedHealth UNH.N and some financial companies limited declines on the Dow, which is poised to see its biggest monthly rise in over four decades depending on the day's moves.
"What you've been seeing is money has been migrating away from technology into non tech sectors that've given you better earnings in the last two weeks," James said.
With around half of the companies in the S&P 500 having reported their quarterly results so far, the third-quarter earnings growth estimate for the index has been slightly revised down to 4% from 4.1% last week, according to Refinitiv.
Meanwhile, traders' bets of a 50 basis point rate hike in December stood at 44.6%, according to CME Group's Fedwatch tool.
At 12:41 a.m. ET, the Dow Jones Industrial Average .DJI was down 129.55 points, or 0.39%, at 32,732.25, the S&P 500 .SPX was down 26.74 points, or 0.69%, at 3,874.32, and the Nasdaq Composite .IXIC was down 104.66 points, or 0.94%, at 10,997.79.
Among single stocks, TuSimple Holdings TSP.O plunged 46.8% after the trucking firm said its board terminated its chief executive officer.
Global Payments Inc GPN.Nfell 6.7% after the company forecast full-year revenue below estimates.
Declining issues outnumbered advancers for a 1.21-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.12-to-1 ratio on the Nasdaq.
The S&P index recorded 22 new 52-week highs and seven new lows, while the Nasdaq recorded 101 new highs and 79 new lows.
(Reporting by Amruta Khandekar and Sruthi Shankar in Bengaluru; Editing by Maju Samuel and Anil D'Silva)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O dropped 1.4%. By Amruta Khandekar Oct 31 (Reuters) - U.S. stocks fell on Monday, potentially stalling a two-week rally in the S&P 500 and the Nasdaq indexes, as investors turned cautious ahead of the Federal Reserve's rate-setting meeting this week. A policy decision from the Fed is due on Wednesday, with investors expecting a fourth straight 75-basis point interest rate hike to curb decades-high inflation.
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Apple Inc AAPL.O dropped 1.4%. A policy decision from the Fed is due on Wednesday, with investors expecting a fourth straight 75-basis point interest rate hike to curb decades-high inflation. Energy stocks .SPNY reversed gains after the White House said U.S. President Joe Biden, who has expressed outrage at oil companies making record profits while Americans pay high fuel prices, will make a statement on the issue later in the day.
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Apple Inc AAPL.O dropped 1.4%. By Amruta Khandekar Oct 31 (Reuters) - U.S. stocks fell on Monday, potentially stalling a two-week rally in the S&P 500 and the Nasdaq indexes, as investors turned cautious ahead of the Federal Reserve's rate-setting meeting this week. Hopes about the central bank easing its aggressive stance on interest rate hikes had buoyed equities over the last few weeks, but communication from Fed officials after the decision as well as non-farm payrolls data this week would be key in setting expectations for future interest rates.
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Apple Inc AAPL.O dropped 1.4%. A policy decision from the Fed is due on Wednesday, with investors expecting a fourth straight 75-basis point interest rate hike to curb decades-high inflation. Energy stocks .SPNY reversed gains after the White House said U.S. President Joe Biden, who has expressed outrage at oil companies making record profits while Americans pay high fuel prices, will make a statement on the issue later in the day.
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18621.0
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2022-10-31 00:00:00 UTC
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This Industry Titan Is Buying Back Its Stock Hand Over Fist. Should Investors Follow?
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AAPL
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https://www.nasdaq.com/articles/this-industry-titan-is-buying-back-its-stock-hand-over-fist.-should-investors-follow
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nan
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nan
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The words "major surgery" are frightening when thinking of our friends, loved ones, or even ourselves. Complications, long recovery times, pain, and scars are common concerns. However, robotic-assisted surgery is making giant strides in each area. According to the world-renowned Mayo Clinic, using Intuitive Surgical's (NASDAQ: ISRG) da Vinci system leads to fewer complications, less pain and blood loss, shorter hospital stays and quicker recovery, and less scarring.
In fact, after years of research, the Mayo Clinic now performs over 7,000 robotic-assisted procedures each year, ranging from hernia repair to open-heart surgery.
The Mayo Clinic is far from alone. More than 7,300 Intuitive Surgical da Vinci systems are installed worldwide, the vast majority here in the U.S. For perspective, the U.S. has nearly 6,100 hospitals. So there is a good chance you live near a surgical center using da Vinci.
What does this mean for Intuitive stock?
Increased adoption and Intuitive's stranglehold on the industry (roughly 80% market share) lead to massive profits for the company. As shown below, Intuitive's operating margins are far superior to those of other medical device manufacturers.
ISRG Operating Margin (TTM) data by YCharts.
High margins lead to lucrative cash flows, and Intuitive has built a tremendous cash hoard over the years and carries no long-term debt. Intuitive had $8.6 billion in cash and investments at the end of 2021, representing a massive 10% of the current market cap. In 2022, the company is returning some of it to shareholders through stock buybacks. More than $1.6 billion has been spent thus far, with much more in the works. Intuitive had $7.39 billion, or 9% of the market cap, in cash and investments at the end of the third quarter.
Why are share repurchases good for stockholders?
Companies return cash to shareholders mainly through dividends and buybacks. Buybacks reduce the number of available shares, increasing each share's ownership stake. Some investors prefer to collect the dividend checks, but others see inherent advantages to repurchases.
Share appreciation: With fewer shares available, earnings per share (EPS) and the stock's value generally rise.
Tax advantages: Unlike dividends, share buybacks aren't taxed at the end of the year. This allows your shares to grow tax-free until sold.
Confidence: A company buying back its stock means it sees value in the stock and trusts future results.
A little company called Apple (NASDAQ: AAPL) is known for massive repurchases, which is probably a huge reason Apple shares occupy 40% of Warren Buffett's Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) portfolio.
Is Intuitive stock a buy?
COVID-19 slowed Intuitive's growth. Hospitals switched focus to overflowing ICUs, and many non-emergency surgeries were delayed. Intuitive's results are tied to the number of procedures performed because it makes 70% of its revenue from recurring sources, such as instruments, accessories, and services. This is tough during a global pandemic, but recurring revenue is fantastic long-term. It means profits will continue once the market is saturated with da Vinci systems.
Procedures should grow substantially over the long haul because our population is aging fast. There were 49.2 million Americans 65 and older in 2016, and that number is expected to grow to 77 million in 2034 and continue to rise, according to the U.S. census. Procedures performed with da Vinci grew 20% in Q3 year over year.
The recovery from the COVID-19 slowdown is strong. The chart below shows Intuitive's annual revenue from 2019 through 2022, estimated based on the growth rate through Q3.
Data source: Intuitive Surgical. Chart and 2022 estimate by author. Estimate based on growth through Q3 2022.
The best valuation measure for Intuitive's stock may be the enterprise value-to-EBITDA (EV/EBITDA) ratio because it accounts for the company's large cash balance. The stock has recovered from its lows recently but trades under its recent historical average, as shown below.
ISRG EV to EBITDA data by YCharts.
Intuitive Surgical stock has the makings of a long-term outperformer and would be a welcome addition to many diversified portfolios. Is the stock a buy? Judging by the pace of buybacks recently, the company definitely thinks so.
10 stocks we like better than Intuitive Surgical
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 Intuitive Surgical wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Bradley Guichard has positions in Apple and Intuitive Surgical and has the following options: short December 2022 $165 calls on Apple. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and Intuitive Surgical. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A little company called Apple (NASDAQ: AAPL) is known for massive repurchases, which is probably a huge reason Apple shares occupy 40% of Warren Buffett's Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) portfolio. According to the world-renowned Mayo Clinic, using Intuitive Surgical's (NASDAQ: ISRG) da Vinci system leads to fewer complications, less pain and blood loss, shorter hospital stays and quicker recovery, and less scarring. Intuitive's results are tied to the number of procedures performed because it makes 70% of its revenue from recurring sources, such as instruments, accessories, and services.
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A little company called Apple (NASDAQ: AAPL) is known for massive repurchases, which is probably a huge reason Apple shares occupy 40% of Warren Buffett's Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) portfolio. According to the world-renowned Mayo Clinic, using Intuitive Surgical's (NASDAQ: ISRG) da Vinci system leads to fewer complications, less pain and blood loss, shorter hospital stays and quicker recovery, and less scarring. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and Intuitive Surgical.
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A little company called Apple (NASDAQ: AAPL) is known for massive repurchases, which is probably a huge reason Apple shares occupy 40% of Warren Buffett's Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) portfolio. According to the world-renowned Mayo Clinic, using Intuitive Surgical's (NASDAQ: ISRG) da Vinci system leads to fewer complications, less pain and blood loss, shorter hospital stays and quicker recovery, and less scarring. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Bradley Guichard has positions in Apple and Intuitive Surgical and has the following options: short December 2022 $165 calls on Apple.
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A little company called Apple (NASDAQ: AAPL) is known for massive repurchases, which is probably a huge reason Apple shares occupy 40% of Warren Buffett's Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) portfolio. What does this mean for Intuitive stock? Companies return cash to shareholders mainly through dividends and buybacks.
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18622.0
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2022-10-31 00:00:00 UTC
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US STOCKS-Wall St drops as megacaps weigh amid Fed rate debate
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-drops-as-megacaps-weigh-amid-fed-rate-debate
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nan
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nan
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By Amruta Khandekar
Oct 31 (Reuters) - Wall Street's main indexes fell on Monday, bogged down by a drop in shares of Apple and other megacaps, while investors braced for a hefty rate hike from the Federal Reserve this week and assessed the path of future interest rates.
The U.S. Fed is set to meet on Tuesday and Wednesday, where policymakers are expected to deliver a fourth straight 75-basis point interest rate hike to curb decades-high inflation.
Communication from Fed officials after the decision as well as well as non-farm payrolls data this week will offer further clues on whether the central bank could tone down its aggressive stance on interest rates in the future.
Apple Inc AAPL.O dropped 2.1% in early trading. A Reuters report said production of its iPhones could slump by as much as 30% next month due to tightening COVID-19 curbs in China.
Shares of other megacaps including Amazon.com AMZN.O, Google-owner Alphabet GOOGL.O, and Microsoft MSFT.O and Meta Platforms META.O were down between 0.8% and 3%.
Among sectors, information technology .SPLRCT and communication services .SPLRCL were the lead decliners, falling 1.6% and 1.9% respectively.
Hopes for a less hawkish Fed as well as better-than-expected earnings from companies outside the technology sector had led to the S&P 500 .SPX and the Nasdaq .IXIC, notching their second straight week of gains on Friday.
Both the indexes are also set to record gains in October after two straight months of declines. The Dow Jones .DJI, meanwhile, could see its biggest monthly rise in over four decades depending on the day's moves.
"You have a convergence of the labor market and the Fed together, and so it should make it a very questionable market week in terms of the direction," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
"We'll be hearing from Fed Chair Powell on Wednesday and his words probably mean more than his actions. If his tone, if his language begins to moderate somewhat, that will continue to be positive for stocks."
Traders are nearly equally split in their expectations of the Fed delivering a smaller interest rate hike at its next policy meeting, with odds of a 50 basis point rate hike in December standing at 47.9%, according to CME Group's Fedwatch tool.
Along with the Fed, U.S. mid-term elections will also set the tone for markets in November.
At 10:14 a.m. ET, the Dow Jones Industrial Average .DJI was down 184.99 points, or 0.56%, at 32,676.81, the S&P 500 .SPX was down 33.15 points, or 0.85%, at 3,867.91, and the Nasdaq Composite .IXIC was down 145.57 points, or 1.31%, at 10,956.88.
Declining issues outnumbered advancers for a 1.65-to-1 ratio on the NYSE and 1.56-to-1 ratio on the Nasdaq.
The S&P index recorded 10 new 52-week highs and five new lows, while the Nasdaq recorded 63 new highs and 47 new lows.
Among single stocks, TuSimple Holdings TSP.O plunged 45% after the trucking firm said its board terminated its chief executive officer.
(Reporting by Amruta Khandekar and Sruthi Shankar in Bengaluru; Editing by Maju Samuel)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O dropped 2.1% in early trading. The U.S. Fed is set to meet on Tuesday and Wednesday, where policymakers are expected to deliver a fourth straight 75-basis point interest rate hike to curb decades-high inflation. Communication from Fed officials after the decision as well as well as non-farm payrolls data this week will offer further clues on whether the central bank could tone down its aggressive stance on interest rates in the future.
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Apple Inc AAPL.O dropped 2.1% in early trading. The U.S. Fed is set to meet on Tuesday and Wednesday, where policymakers are expected to deliver a fourth straight 75-basis point interest rate hike to curb decades-high inflation. Traders are nearly equally split in their expectations of the Fed delivering a smaller interest rate hike at its next policy meeting, with odds of a 50 basis point rate hike in December standing at 47.9%, according to CME Group's Fedwatch tool.
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Apple Inc AAPL.O dropped 2.1% in early trading. By Amruta Khandekar Oct 31 (Reuters) - Wall Street's main indexes fell on Monday, bogged down by a drop in shares of Apple and other megacaps, while investors braced for a hefty rate hike from the Federal Reserve this week and assessed the path of future interest rates. The U.S. Fed is set to meet on Tuesday and Wednesday, where policymakers are expected to deliver a fourth straight 75-basis point interest rate hike to curb decades-high inflation.
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Apple Inc AAPL.O dropped 2.1% in early trading. By Amruta Khandekar Oct 31 (Reuters) - Wall Street's main indexes fell on Monday, bogged down by a drop in shares of Apple and other megacaps, while investors braced for a hefty rate hike from the Federal Reserve this week and assessed the path of future interest rates. The U.S. Fed is set to meet on Tuesday and Wednesday, where policymakers are expected to deliver a fourth straight 75-basis point interest rate hike to curb decades-high inflation.
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18623.0
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2022-10-31 00:00:00 UTC
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Technology Sector Update for 10/31/2022: GPN, QNGY, AAPL, XLK, SOXX
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-10-31-2022%3A-gpn-qngy-aapl-xlk-soxx
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nan
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nan
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Technology stocks were leaning lower premarket Monday. The Technology Select Sector SPDR ETF (XLK) was down 0.8% and the Semiconductor Sector Index Fund (SOXX) was recently declining by 0.8%.
Global Payments (GPN) reported Q3 adjusted earnings of $2.48 per diluted share, up from $2.18 a year earlier. Analysts polled by Capital IQ expected $2.48. Global Payments was recently slipping past 4%.
Quanergy Systems (QNGY) was retreating by more than 68% after it priced an underwritten public offering of 9.8 million units at $1.70 each for gross proceeds of about $16.7 million.
Apple's (AAPL) production of iPhones at a major plant in China could fall up to 30% in November amid COVID-19 restrictions in the country, Reuters reported, citing an unnamed person with knowledge of the matter. Apple was recently down over 1%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple's (AAPL) production of iPhones at a major plant in China could fall up to 30% in November amid COVID-19 restrictions in the country, Reuters reported, citing an unnamed person with knowledge of the matter. Technology stocks were leaning lower premarket Monday. Global Payments (GPN) reported Q3 adjusted earnings of $2.48 per diluted share, up from $2.18 a year earlier.
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Apple's (AAPL) production of iPhones at a major plant in China could fall up to 30% in November amid COVID-19 restrictions in the country, Reuters reported, citing an unnamed person with knowledge of the matter. The Technology Select Sector SPDR ETF (XLK) was down 0.8% and the Semiconductor Sector Index Fund (SOXX) was recently declining by 0.8%. Global Payments (GPN) reported Q3 adjusted earnings of $2.48 per diluted share, up from $2.18 a year earlier.
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Apple's (AAPL) production of iPhones at a major plant in China could fall up to 30% in November amid COVID-19 restrictions in the country, Reuters reported, citing an unnamed person with knowledge of the matter. The Technology Select Sector SPDR ETF (XLK) was down 0.8% and the Semiconductor Sector Index Fund (SOXX) was recently declining by 0.8%. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple's (AAPL) production of iPhones at a major plant in China could fall up to 30% in November amid COVID-19 restrictions in the country, Reuters reported, citing an unnamed person with knowledge of the matter. Technology stocks were leaning lower premarket Monday. Global Payments was recently slipping past 4%.
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18624.0
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2022-10-31 00:00:00 UTC
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Apple's Latest Price Changes Tell Investors a Lot About the Future of the Company
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AAPL
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https://www.nasdaq.com/articles/apples-latest-price-changes-tell-investors-a-lot-about-the-future-of-the-company
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nan
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nan
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The monthly cost of being a diehard Apple (NASDAQ: AAPL) fan is going up.
Apple recently announced price increases for Apple Music and Apple TV+, charging subscribers $1 or $2 more per month. Apple is pushing those price increases into the Apple One bundle as well, which also includes Apple Arcade, Apple News+, iCloud, and more.
What's not going up in price? The iPhone.
These price changes, or lack thereof, can tell investors a lot about how Apple is positioning itself for the future.
Apple is sacrificing device profits
The cost of everything has gone way up over the past year due to inflation, and the iPhone is no different. Estimates indicate the bill of material for the iPhone 14 Pro Max was 20% higher than that of the 13 Pro Max. The cost of all the components found inside that little glass rectangle totaled nearly 46% of Apple's asking price this year. That's the highest cost of material relative to its price Apple has paid for any Max model.
Instead of passing on the increased costs to consumers, Apple decided to keep the price of all its iPhone models the same. With competitors increasing prices and inflation running rampant, it means Apple made its iPhones much more attractive in terms of price.
That's a bold move for a company that generated 52% of its revenue from the iPhone over the past year. It's not just the iPhone, either. Apple notably also gave Apple TV device purchasers a price cut on its new 4K Apple TV, which now starts at just $129.
And while the new iPads have a higher starting price, Apple is keeping the old model in the lineup at its current price. That's a move the company has made with other hardware lineups, including the Mac, in order to maintain affordable pricing.
The push toward more profitable services
It was just a few years ago that Apple TV+ was seen as a clever way to incentivize new iPhone purchases. Apple launched the service with a generous 12-month trial for anyone who bought a new Apple device.
But the recent price hike indicates Apple is serious about making the streaming service a profitable endeavor. It's making major licensing deals with sports leagues and its prestige original content is starting to gain traction with a broad audience. It's also looking into adding advertising to the platform.
The margin profile on the overall services business is extremely attractive, even considering the significant losses it's likely incurring on newer efforts like Apple TV+. Apple's services gross margin over the past year was 71.7%. That's nearly twice as high as its 36.3% device gross margin.
Gross margin for the services business continues to expand, and it'll likely expand further as Apple pushes prices higher. All told, services accounted for nearly one-third of total gross profit at Apple over the past year. And services will likely account for an even greater percentage going forward as Apple aims to increase pricing.
So, keeping device prices as low as possible, even to the point of sacrificing margin on its biggest revenue source, can help drive overall sales and grow the user base of Apple device owners. With a bigger base to sell its services to, Apple can maximize its most profitable (and still increasingly profitable) segment, services.
The recent pricing decisions offer clear evidence that Apple sees services as the core profit driver going forward.
10 stocks we like better than Apple
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of September 30, 2022
Adam Levy has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The monthly cost of being a diehard Apple (NASDAQ: AAPL) fan is going up. It's making major licensing deals with sports leagues and its prestige original content is starting to gain traction with a broad audience. The margin profile on the overall services business is extremely attractive, even considering the significant losses it's likely incurring on newer efforts like Apple TV+.
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The monthly cost of being a diehard Apple (NASDAQ: AAPL) fan is going up. With competitors increasing prices and inflation running rampant, it means Apple made its iPhones much more attractive in terms of price. Apple's services gross margin over the past year was 71.7%.
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The monthly cost of being a diehard Apple (NASDAQ: AAPL) fan is going up. Apple recently announced price increases for Apple Music and Apple TV+, charging subscribers $1 or $2 more per month. Apple is pushing those price increases into the Apple One bundle as well, which also includes Apple Arcade, Apple News+, iCloud, and more.
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The monthly cost of being a diehard Apple (NASDAQ: AAPL) fan is going up. What's not going up in price? Apple is sacrificing device profits The cost of everything has gone way up over the past year due to inflation, and the iPhone is no different.
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18625.0
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2022-10-31 00:00:00 UTC
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US STOCKS-Wall Street ends strong month on weaker note; focus on Fed meeting
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-ends-strong-month-on-weaker-note-focus-on-fed-meeting
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nan
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nan
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By Chuck Mikolajczak
NEW YORK, Oct 31 (Reuters) - U.S. stocks lost ground on Monday, with the major indexes closing out a strong month of gains on a weaker foot, as investor focus turned to the Federal Reserve's policy meeting this week.
The central bank is widely expected to raise interest rates by 75 basis points on Wednesday at the conclusion of its two-day policy meeting, but investors will look for any signals the Fed may be considering a deceleration in interest rate hikes in the future.
Hopes the Fed may pull back from its aggressive interest rate hike policy have lifted equities in recent weeks, with the S&P 500 notching a gain of nearly 9% over the past two weeks. The Dow booked its biggest monthly percentage gain in decades and biggest October percentage gain since at least 1900.
Comments from Fed officials after the policy decision as well as labor market data later this week will help shape market expectations for future hikes starting at the December meeting.
"It is pretty much a foregone conclusion, it has been almost a 100% probability for at least three weeks now that it would be three-quarters of a point and very little chance that it is going to be more or less than that, but there is always apprehension on the part of everyone just waiting for that to be done," said Randy Frederick, managing director, trading and derivatives, Charles Schwab in Austin, Texas.
"People are going to be digesting what is said on Wednesday about what happens on Dec. 14. My hope is that would be a quarter point. In reality, it is probably going to be half a point, but even that would be a very positive sign for the market."
According to preliminary data, the S&P 500 .SPX lost 28.55 points, or 0.73%, to end at 3,872.51 points, while the Nasdaq Composite .IXIC lost 112.37 points, or 1.03%, to 10,990.08. The Dow Jones Industrial Average .DJI fell 121.30 points, or 0.37%, to 32,740.50.
Apple Inc AAPL.O lost ground after a Reuters report said production of its iPhones could slump by as much as 30% next month due to tightening COVID-19 curbs in China.
Megacap growth names such as Amazon.com AMZN.O and Google-owner Alphabet GOOGL.O which have been under pressure in the rising rate environment, were also lower.
Nearly all 11 S&P 500 sectors fell, with technology .SPLRCT and communication services .SPLRCL the worst performers with declines of more than 1%. Energy gained ahead of remarks on oil companies by U.S. President Joe Biden later on Monday.
Energy companies such as Chevron CVX.N and Exxon Mobil XOM.N have blown past profit estimates this quarter, benefiting from surging energy prices, in contrast to Big Tech firms that have largely disappointed investors.
With around half of the companies in the S&P 500 having reported their quarterly results so far, third-quarter earnings growth estimates stands at 4%, according to Refintiv data, slightly lower than the 4.1% last week.
Global Payments Inc GPN.N slumped after the company forecast full-year revenue below estimates.
(Reporting by Chuck Mikolajczak; Editing by Cynthia Osterman)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O lost ground after a Reuters report said production of its iPhones could slump by as much as 30% next month due to tightening COVID-19 curbs in China. By Chuck Mikolajczak NEW YORK, Oct 31 (Reuters) - U.S. stocks lost ground on Monday, with the major indexes closing out a strong month of gains on a weaker foot, as investor focus turned to the Federal Reserve's policy meeting this week. "It is pretty much a foregone conclusion, it has been almost a 100% probability for at least three weeks now that it would be three-quarters of a point and very little chance that it is going to be more or less than that, but there is always apprehension on the part of everyone just waiting for that to be done," said Randy Frederick, managing director, trading and derivatives, Charles Schwab in Austin, Texas.
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Apple Inc AAPL.O lost ground after a Reuters report said production of its iPhones could slump by as much as 30% next month due to tightening COVID-19 curbs in China. The central bank is widely expected to raise interest rates by 75 basis points on Wednesday at the conclusion of its two-day policy meeting, but investors will look for any signals the Fed may be considering a deceleration in interest rate hikes in the future. Hopes the Fed may pull back from its aggressive interest rate hike policy have lifted equities in recent weeks, with the S&P 500 notching a gain of nearly 9% over the past two weeks.
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Apple Inc AAPL.O lost ground after a Reuters report said production of its iPhones could slump by as much as 30% next month due to tightening COVID-19 curbs in China. By Chuck Mikolajczak NEW YORK, Oct 31 (Reuters) - U.S. stocks lost ground on Monday, with the major indexes closing out a strong month of gains on a weaker foot, as investor focus turned to the Federal Reserve's policy meeting this week. The central bank is widely expected to raise interest rates by 75 basis points on Wednesday at the conclusion of its two-day policy meeting, but investors will look for any signals the Fed may be considering a deceleration in interest rate hikes in the future.
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Apple Inc AAPL.O lost ground after a Reuters report said production of its iPhones could slump by as much as 30% next month due to tightening COVID-19 curbs in China. Comments from Fed officials after the policy decision as well as labor market data later this week will help shape market expectations for future hikes starting at the December meeting. With around half of the companies in the S&P 500 having reported their quarterly results so far, third-quarter earnings growth estimates stands at 4%, according to Refintiv data, slightly lower than the 4.1% last week.
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18626.0
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2022-10-31 00:00:00 UTC
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US STOCKS-Wall St set to open lower as investors await Fed signal
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-open-lower-as-investors-await-fed-signal
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nan
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nan
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By Amruta Khandekar
Oct 31 (Reuters) - Wall Street's main indexes were set to open lower on Monday, capping a month dominated by mixed earnings reports and expectations of the Federal Reserve toning down its hawkish stance on inflation.
Focus is on the U.S. central bank's monetary policy meeting on Tuesday and Wednesday, where policymakers are expected to deliver a fourth straight 75-basis point interest rate hike to curb decades-high inflation amid debate over when to downshift to smaller rate hikes.
Monthly nonfarm payrolls data, due later this week, could also offer clues on the path of interest rates.
The S&P 500 .SPX and the Nasdaq .IXIC notched their second straight week of gains on Friday, supported by better-than-expected results from companies outside the technology sector as well as hopes for a less hawkish Fed.
Both the indexes are also set to record gains in October after two straight months of declines. The Dow Jones .DJI, meanwhile, is up 14.4% so far this month and could see its biggest monthly rise in over four decades depending on the day's moves.
"You have a convergence of the labor market and the Fed together, and so it should make it a very questionable market week in terms of the direction," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
"We'll be hearing from Fed Chair Powell on Wednesday and his words probably mean more than his actions. If his tone, if his language begins to moderate somewhat, that will continue to be positive for stocks."
Traders are nearly equally split in their expectations of the Fed delivering a smaller interest rate hike at its next policy meeting, with odds of a 50 basis point rate hike in December standing at 47.9%, according to CME Group's Fedwatch tool.
At 9:01 a.m. ET, Dow e-minis 1YMcv1 were down 175 points, or 0.53%, S&P 500 e-minis EScv1 were down 23 points, or 0.59%, and Nasdaq 100 e-minis NQcv1 were down 86.75 points, or 0.75%.
With 10-year bond yields US10YT=RR rising for the second straight session, shares of megacap tech giants such as Microsoft MSFT.O, Google owner Alphabet GOOGL.O and Meta Platforms META.O that disappointed investors with their earnings reports last week, fell between 0.8% and 1% in premarket trading.
Apple Inc AAPL.O was down 1.3%. Production of Apple's iPhones could slump by as much as 30% at Foxconn's 2317.TW Zhengzhou factory due to tightening COVID-19 curbs in China, a source told Reuters.
Shares of U.S.-listed Brazilian firms such as oil major Petrobras PBR.N and iron ore miner Vale VALE.N fell 7.1% and 1.9% respectively after leftist Luiz Inacio Lula da Silva won Sunday's presidential election.
(Reporting by Amruta Khandekar in Bengaluru; Editing by Maju Samuel)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O was down 1.3%. By Amruta Khandekar Oct 31 (Reuters) - Wall Street's main indexes were set to open lower on Monday, capping a month dominated by mixed earnings reports and expectations of the Federal Reserve toning down its hawkish stance on inflation. With 10-year bond yields US10YT=RR rising for the second straight session, shares of megacap tech giants such as Microsoft MSFT.O, Google owner Alphabet GOOGL.O and Meta Platforms META.O that disappointed investors with their earnings reports last week, fell between 0.8% and 1% in premarket trading.
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Apple Inc AAPL.O was down 1.3%. Focus is on the U.S. central bank's monetary policy meeting on Tuesday and Wednesday, where policymakers are expected to deliver a fourth straight 75-basis point interest rate hike to curb decades-high inflation amid debate over when to downshift to smaller rate hikes. Traders are nearly equally split in their expectations of the Fed delivering a smaller interest rate hike at its next policy meeting, with odds of a 50 basis point rate hike in December standing at 47.9%, according to CME Group's Fedwatch tool.
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Apple Inc AAPL.O was down 1.3%. By Amruta Khandekar Oct 31 (Reuters) - Wall Street's main indexes were set to open lower on Monday, capping a month dominated by mixed earnings reports and expectations of the Federal Reserve toning down its hawkish stance on inflation. Focus is on the U.S. central bank's monetary policy meeting on Tuesday and Wednesday, where policymakers are expected to deliver a fourth straight 75-basis point interest rate hike to curb decades-high inflation amid debate over when to downshift to smaller rate hikes.
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Apple Inc AAPL.O was down 1.3%. Focus is on the U.S. central bank's monetary policy meeting on Tuesday and Wednesday, where policymakers are expected to deliver a fourth straight 75-basis point interest rate hike to curb decades-high inflation amid debate over when to downshift to smaller rate hikes. Monthly nonfarm payrolls data, due later this week, could also offer clues on the path of interest rates.
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18627.0
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2022-10-31 00:00:00 UTC
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Fearing COVID, workers flee from Foxconn's vast Chinese iPhone plant
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AAPL
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https://www.nasdaq.com/articles/fearing-covid-workers-flee-from-foxconns-vast-chinese-iphone-plant
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nan
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nan
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By Ryan Woo
BEIJING, Oct 31 (Reuters) - After enduring days of lock-in at Foxconn's vast facility in central China with 200,000 other workers, Yuan finally climbed the fences on Saturday night and escaped the complex, joining others fleeing what they feared was a widening COVID outbreak.
He walked through the night, keeping to a northerly route, towards his hometown of Hebi, every step taking him farther away from iPhone maker Foxconn's 2317.TW Zhengzhou plant, the Taiwan-based group's largest in mainland China.
"There were so many people on the road," Yuan told Reuters on Monday, declining to give his full name because of the matter's sensitivity.
Since mid-October, Foxconn has been wrestling with a COVID-19 outbreak at its facility in Zhengzhou, the capital of Henan province in central China. Workers were locked in to stop the spread of the coronavirus to the outside word. Foxconn has repeatedly refrained from disclosing the case load.
"We were shut in on Oct. 14, and we had to do endless PCR tests, and after about 10 days, we had to wear N95 masks, and were given traditional Chinese medicine," said Yuan.
Whenever a positive or suspected case was found at a production line, there would be a public broadcast, but work would continue, he told Reuters.
"People would be called away in the middle of work, and if they don't show up the next day, that would mean they had been taken away," Yuan said.
Around 20,000 workers had been put in quarantine on-site, Yuan had heard, but he could not be sure how many were infected, as management did not publicise that information.
China typically isolates vast numbers of people considered close or even potential contacts of an infected person.
The world's second-largest economy continues to wage war on COVID with disruptive lockdowns, mass testing and quarantines while many other countries have chosen to live with the disease.
For companies with massive manufacturing campuses like Foxconn, that has meant keeping thousands of workers on-site in so-called "closed-loop" systems to keep their production lines running.
"Food for tens of thousands was merely left outside (of the quarantine buildings at the plant)," said a worker surnamed Li, 21.
Li, who is still at the plant, said she was planning to quit.
In a statement on Monday, Apple AAPL.O supplier Foxconn said that reports that 20,000 staff had been diagnosed with COVID were false.
On Sunday afternoon, the company told Reuters in an emailed statement that workers were allowed to leave if they chose to.
Foxconn did not immediately respond to a Reuters request on Monday for further comment.
'NEVER GO BACK'
Disruptions from China's zero-COVID policies to commerce and industry have widened in October as cases escalated. Apart from the Foxconn lockdown, the Shanghai Disney Resort was shut from Monday to comply with counter-epidemic requirements, with visitors still inside.
For Yuan, matters came to a head when he heard that a housing complex for workers near his plant had been cordoned off by security on Friday, and that the plant itself was to go under a curfew the next day.
In a panic, Yuan decided to leave the next day, joining streams of other escaping workers. It was not immediately clear if a curfew was eventually imposed.
By Sunday morning, Yuan had hiked to the banks of the Yellow River, the northern boundary of Zhengzhou, where he was stopped 50 km (30 miles) short of Hebi by authorities from the city of Xinxiang on the other side.
"I'll never go back to Foxconn," said Yuan, who has since been transported to Hebi and put under quarantine.
"Zhengzhou has put a chill in my heart."
(Reporting by Ryan Woo; Additional reporting by Beijing newsroom and Ziyi Tang; Editing by Christian Schmollinger)
((Ryan.Woo@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In a statement on Monday, Apple AAPL.O supplier Foxconn said that reports that 20,000 staff had been diagnosed with COVID were false. By Ryan Woo BEIJING, Oct 31 (Reuters) - After enduring days of lock-in at Foxconn's vast facility in central China with 200,000 other workers, Yuan finally climbed the fences on Saturday night and escaped the complex, joining others fleeing what they feared was a widening COVID outbreak. He walked through the night, keeping to a northerly route, towards his hometown of Hebi, every step taking him farther away from iPhone maker Foxconn's 2317.TW Zhengzhou plant, the Taiwan-based group's largest in mainland China.
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In a statement on Monday, Apple AAPL.O supplier Foxconn said that reports that 20,000 staff had been diagnosed with COVID were false. By Ryan Woo BEIJING, Oct 31 (Reuters) - After enduring days of lock-in at Foxconn's vast facility in central China with 200,000 other workers, Yuan finally climbed the fences on Saturday night and escaped the complex, joining others fleeing what they feared was a widening COVID outbreak. Around 20,000 workers had been put in quarantine on-site, Yuan had heard, but he could not be sure how many were infected, as management did not publicise that information.
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In a statement on Monday, Apple AAPL.O supplier Foxconn said that reports that 20,000 staff had been diagnosed with COVID were false. By Ryan Woo BEIJING, Oct 31 (Reuters) - After enduring days of lock-in at Foxconn's vast facility in central China with 200,000 other workers, Yuan finally climbed the fences on Saturday night and escaped the complex, joining others fleeing what they feared was a widening COVID outbreak. He walked through the night, keeping to a northerly route, towards his hometown of Hebi, every step taking him farther away from iPhone maker Foxconn's 2317.TW Zhengzhou plant, the Taiwan-based group's largest in mainland China.
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In a statement on Monday, Apple AAPL.O supplier Foxconn said that reports that 20,000 staff had been diagnosed with COVID were false. "There were so many people on the road," Yuan told Reuters on Monday, declining to give his full name because of the matter's sensitivity. Whenever a positive or suspected case was found at a production line, there would be a public broadcast, but work would continue, he told Reuters.
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18628.0
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2022-10-31 00:00:00 UTC
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Should Invesco NASDAQ 100 ETF (QQQM) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-invesco-nasdaq-100-etf-qqqm-be-on-your-investing-radar-3
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nan
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nan
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Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Invesco NASDAQ 100 ETF (QQQM) is a passively managed exchange traded fund launched on 10/13/2020.
The fund is sponsored by Invesco. It has amassed assets over $5.18 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Additionally, growth stocks have a greater level of risk associated with them. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.15%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.69%.
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 50.90% of the portfolio. Telecom and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.71% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 50.9% of total assets under management.
Performance and Risk
QQQM seeks to match the performance of the NASDAQ-100 INDEX before fees and expenses. The NASDAQ-100 Index includes securities of 100 of the largest domestic and international nonfinancial companies listed on Nasdaq.
The ETF has lost about -29.60% so far this year and is down about -26.24% in the last one year (as of 10/31/2022). In the past 52-week period, it has traded between $107.28 and $166.07.
The ETF has a beta of 1.18 and standard deviation of 24.97% for the trailing three-year period. With about 104 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco NASDAQ 100 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, QQQM is a sufficient option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $69.58 billion in assets, Invesco QQQ has $153.17 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Invesco NASDAQ 100 ETF (QQQM): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.71% 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 Invesco NASDAQ 100 ETF (QQQM) is a passively managed exchange traded fund launched on 10/13/2020.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.71% 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 Invesco NASDAQ 100 ETF (QQQM) is a passively managed exchange traded fund launched on 10/13/2020.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.71% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives Invesco NASDAQ 100 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.71% 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.
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18629.0
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2022-10-31 00:00:00 UTC
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Apple Inc. (AAPL) Is a Trending Stock: Facts to Know Before Betting on It
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AAPL
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https://www.nasdaq.com/articles/apple-inc.-aapl-is-a-trending-stock%3A-facts-to-know-before-betting-on-it-2
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nan
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nan
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Apple (AAPL) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this maker of iPhones, iPads and other products have returned +12.7%, compared to the Zacks S&P 500 composite's +5% change. During this period, the Zacks Computer - Mini computers industry, which Apple falls in, has gained 4%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings Estimates
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Apple is expected to post earnings of $2.12 per share, indicating a change of +1% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.2% over the last 30 days.
The consensus earnings estimate of $6.42 for the current fiscal year indicates a year-over-year change of +5.1%. This estimate has changed -1.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $6.94 indicates a change of +8.1% from what Apple is expected to report a year ago. Over the past month, the estimate has changed +0.6%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Apple.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Apple, the consensus sales estimate of $127.68 billion for the current quarter points to a year-over-year change of +3%. The $412.57 billion and $434.37 billion estimates for the current and next fiscal years indicate changes of +4.6% and +5.3%, respectively.
Last Reported Results and Surprise History
Apple reported revenues of $90.15 billion in the last reported quarter, representing a year-over-year change of +8.1%. EPS of $1.29 for the same period compares with $1.24 a year ago.
Compared to the Zacks Consensus Estimate of $88.47 billion, the reported revenues represent a surprise of +1.9%. The EPS surprise was +2.38%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Apple is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Apple. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) has been one of the most searched-for stocks on Zacks.com lately. Apple Inc. (AAPL): Free Stock Analysis Report We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends.
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Apple (AAPL) has been one of the most searched-for stocks on Zacks.com lately. Apple Inc. (AAPL): Free Stock Analysis Report The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues.
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Apple (AAPL) has been one of the most searched-for stocks on Zacks.com lately. Apple Inc. (AAPL): Free Stock Analysis Report With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions.
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Apple (AAPL) has been one of the most searched-for stocks on Zacks.com lately. Apple Inc. (AAPL): Free Stock Analysis Report And if earnings estimates go up for a company, the fair value for its stock goes up.
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18630.0
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2022-10-31 00:00:00 UTC
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Stock Market News for Oct 31, 2022
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-oct-31-2022
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nan
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nan
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Wall Street closed sharply higher on Friday after economic data hinted at slowing inflation and impressive earnings reports from a batch of companies gave investors’ confidence a boost ahead of next week’s two-day policy meeting of the Fed. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 2.6% or 828.52 points to finish at 32,861.80 points, recording its sixth-straight day of gains and its longest daily winning streak since May.
The S&P 500 jumped 2.5% or 93.76 points to end at 3,901.06 points. Tech, communication services and utility stocks were the best performers on the index.
The Communication Services Select Sector SPDR (XLC) gained 2.5%, while the Technology Select Sector SPDR (XLK) jumped 4.4%. The Utilities Select Sector SPDR (XLU) gained 2.7%. All 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq climbed 2.9% or 309.78 points to close at 11,102.45 points.
The fear-gauge CBOE Volatility Index (VIX) was down 5.99% to 25.75. Advancers outnumbered decliners on the NYSE by a 2.87-to-1 ratio. On Nasdaq, a 2.12-to-1 ratio favored advancing issues. A total of 11.26 billion shares were traded on Friday, lower than the last 20-session average of 11.53 billion.
Investors Hopeful of Economy Rebounding
Investors got back some of the lost confidence over the week that saw markets opening at a high on Friday. Economic data released over the course of the week and on Friday hinted at inflation easing. This included readings on inflation, spending and income.
This has raised hopes among investors that the Fed, which is expected to go for a 75-basis point rate hike in its meeting next week, will ease its aggressive rate hike policy after that. The positive sentiment prevailed almost throughout the week, which helped markets on Friday.
Investors, however, have lately been dumping tech stocks, following disappointing results and weak outlooks from the likes of Microsoft Corporation MSFT, Meta Platforms, Inc. META and Apple Inc. AAPL, and shifted focus toward economically sensitive stocks that are likely to benefit once the U.S. economy manages to bounce back.
However, tech stocks performed well on Friday, driven by a broader rally. That said, on Friday the focus was on Dow, as the blue-chip index continued its solid advance so far in October. The Dow has so far gained 14.4% this month and is on track to record one of its best October performances ever and the largest monthly gain since 1976.
Although this season’s earnings have been mixed, Friday saw solid quarterly reports from a batch of companies. Chevron Corporation CVX and Exxon Mobil Corporation XOM reported impressive quarterly results.
Shares of Chevron closed 1.2% higher after the company reported adjusted third-quarter earnings per share of $5.56, beating the Zacks Consensus Estimate of $5.02 per share. Chevron has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Exxon Mobil reported third-quarter 2022 earnings of $4.45 per share, surpassing the Zacks Consensus Estimate of $3.88 per share.
Economic Data
In economic data released on Friday, the University of Michigan’s final reading on the consumer sentiment index increased to 59.9 in October from 58.6 in the month earlier.
The Bureau of Economic Analysis said that the personal consumption expenditures price (PCE) index rose 0.3% month over month in September and 6.2% year over year, the same as August. Core PCE, which excludes the volatile food and energy prices, rose 0.5% month over month in September and 5.1% year over year.
The Bureau of Economic Analysis also reported that personal income rose 0.4% in September while spending increased 0.6%, higher than the consensus estimate of 0.4%.
However, after taking inflation into account, spending increased a meager 0.3%. After deducting taxes and other expenses, disposable personal income increased 0.4% in September but remained unchanged when adjusted for inflation.
The personal saving rate, which calculates savings as a percentage of disposable income, fell to 3.1%, down from 3.4% in August.
Weekly Roundup
This was an impressive week for all three major indexes. The Dow recorded its fourth straight week of gains, while the S&P 500 and Nasdaq closed up for the second straight week. The Dow closed up 5.7% this week. The S&P 500 and Nasdaq ended the week 4% and 2.2% higher.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Chevron Corporation (CVX): Free Stock Analysis Report
Exxon Mobil Corporation (XOM): Free Stock Analysis Report
Meta Platforms, Inc. (META): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors, however, have lately been dumping tech stocks, following disappointing results and weak outlooks from the likes of Microsoft Corporation MSFT, Meta Platforms, Inc. META and Apple Inc. AAPL, and shifted focus toward economically sensitive stocks that are likely to benefit once the U.S. economy manages to bounce back. Apple Inc. (AAPL): Free Stock Analysis Report Wall Street closed sharply higher on Friday after economic data hinted at slowing inflation and impressive earnings reports from a batch of companies gave investors’ confidence a boost ahead of next week’s two-day policy meeting of the Fed.
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Investors, however, have lately been dumping tech stocks, following disappointing results and weak outlooks from the likes of Microsoft Corporation MSFT, Meta Platforms, Inc. META and Apple Inc. AAPL, and shifted focus toward economically sensitive stocks that are likely to benefit once the U.S. economy manages to bounce back. Apple Inc. (AAPL): Free Stock Analysis Report Chevron Corporation CVX and Exxon Mobil Corporation XOM reported impressive quarterly results.
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Investors, however, have lately been dumping tech stocks, following disappointing results and weak outlooks from the likes of Microsoft Corporation MSFT, Meta Platforms, Inc. META and Apple Inc. AAPL, and shifted focus toward economically sensitive stocks that are likely to benefit once the U.S. economy manages to bounce back. Apple Inc. (AAPL): Free Stock Analysis Report Wall Street closed sharply higher on Friday after economic data hinted at slowing inflation and impressive earnings reports from a batch of companies gave investors’ confidence a boost ahead of next week’s two-day policy meeting of the Fed.
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Investors, however, have lately been dumping tech stocks, following disappointing results and weak outlooks from the likes of Microsoft Corporation MSFT, Meta Platforms, Inc. META and Apple Inc. AAPL, and shifted focus toward economically sensitive stocks that are likely to benefit once the U.S. economy manages to bounce back. Apple Inc. (AAPL): Free Stock Analysis Report The Dow has so far gained 14.4% this month and is on track to record one of its best October performances ever and the largest monthly gain since 1976.
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18631.0
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2022-10-31 00:00:00 UTC
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EXCLUSIVE-Output of Apple iPhones at major China plant could fall 30% amid COVID curbs -source
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AAPL
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https://www.nasdaq.com/articles/exclusive-output-of-apple-iphones-at-major-china-plant-could-fall-30-amid-covid-curbs-0
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nan
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nan
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By Yimou Lee
TAIPEI, Oct 31 (Reuters) - Production of Apple Inc's AAPL.O iPhones could slump by as much as 30% at one of the world's biggest factories next month due to tightening COVID-19 curbs in China, a person with direct knowledge of the matter said on Monday.
Manufacturer Foxconn, formally Hon Hai Precision Industry Co Ltd 2317.TW, is working to boost production at another factory in Shenzhen city to make up for the shortfall, said the person, declining to be identified as the information was private.
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 several workers fleeing the site over the weekend.
The possible impact on production comes amid a traditionally busy time for electronics makers ahead of the year-end holiday season, which is also a prime time for vendors such as Apple.
Foxconn on Sunday said it was bringing the situation under control and would coordinate back-up production with other plants to reduce any potential impact. Its share price closed down 1.4% on Monday versus a 1.3% rise in the broader market .TWII.
Apple did not respond to a request for comment.
Foxconn is Apple's biggest iPhone maker, producing 70% of iPhone shipments globally, which in turn makes up 45% of the Taiwanese firm's revenue, analysts at Taipei-based Fubon Research said this month.
It also builds the device in India, but its Zhengzhou factory assembles the majority of its global output.
A second person familiar with the situation said many workers remained at the Zhengzhou plant and that production was continuing.
STRICT COVID-19 MEASURES
Under China's ultra-strict zero-COVID-19 policies, localities must act swiftly to quell outbreaks, with measures including full-scale lockdowns.
Factories in affected areas are often allowed to stay open on condition they operate under a "closed loop" system where staff live and work on-site. Businesses have said such arrangements pose numerous difficulties.
Foxconn on Oct. 19 banned dining at canteens at the Zhengzhou plant and required workers to eat meals in dormitories. It said production was normal.
The measures led to people who said they worked at the site venting frustration about their treatment and provisions via social media.
Scores fled the site over the weekend, with photographs and videos on social media purporting to show Foxconn staff trekking across fields in daytime and along roads at night. Reuters could not immediately verify the authenticity of the posts.
Foxconn has not disclosed whether any workers at the Zhengzhou site had been diagnosed with COVID-19. Authorities have since Oct. 19 reported 264 locally transmitted COVID-19 cases in Zhengzhou, the capital of central Henan province.
Foxconn implemented closed loop measures in March and July this year at its smaller Shenzhen factory as cases in the southern city rose.
In May, the Shanghai plant of another Apple supplier, MacBook assembler Quanta Computer Inc 2382.TW, was also hit by worker chaos after the discovery of COVID-19 cases despite a closed-loop system being put in place.
More than half of Apple's revenue is from iPhone saleshttps://tmsnrt.rs/3TSI7Tp
(Reporting by Yimou Lee; Additional reporting by Brenda Goh; Editing by Gerry Doyle and Christopher Cushing)
((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.
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By Yimou Lee TAIPEI, Oct 31 (Reuters) - Production of Apple Inc's AAPL.O iPhones could slump by as much as 30% at one of the world's biggest factories next month due to tightening COVID-19 curbs in China, a person with direct knowledge of the matter said on Monday. Manufacturer Foxconn, formally Hon Hai Precision Industry Co Ltd 2317.TW, is working to boost production at another factory in Shenzhen city to make up for the shortfall, said the person, declining to be identified as the information was private. 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 several workers fleeing the site over the weekend.
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By Yimou Lee TAIPEI, Oct 31 (Reuters) - Production of Apple Inc's AAPL.O iPhones could slump by as much as 30% at one of the world's biggest factories next month due to tightening COVID-19 curbs in China, a person with direct knowledge of the matter said on Monday. Foxconn is Apple's biggest iPhone maker, producing 70% of iPhone shipments globally, which in turn makes up 45% of the Taiwanese firm's revenue, analysts at Taipei-based Fubon Research said this month. More than half of Apple's revenue is from iPhone saleshttps://tmsnrt.rs/3TSI7Tp (Reporting by Yimou Lee; Additional reporting by Brenda Goh; Editing by Gerry Doyle and Christopher Cushing) ((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.
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By Yimou Lee TAIPEI, Oct 31 (Reuters) - Production of Apple Inc's AAPL.O iPhones could slump by as much as 30% at one of the world's biggest factories next month due to tightening COVID-19 curbs in China, a person with direct knowledge of the matter said on Monday. 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 several workers fleeing the site over the weekend. More than half of Apple's revenue is from iPhone saleshttps://tmsnrt.rs/3TSI7Tp (Reporting by Yimou Lee; Additional reporting by Brenda Goh; Editing by Gerry Doyle and Christopher Cushing) ((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.
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By Yimou Lee TAIPEI, Oct 31 (Reuters) - Production of Apple Inc's AAPL.O iPhones could slump by as much as 30% at one of the world's biggest factories next month due to tightening COVID-19 curbs in China, a person with direct knowledge of the matter said on Monday. A second person familiar with the situation said many workers remained at the Zhengzhou plant and that production was continuing. Foxconn implemented closed loop measures in March and July this year at its smaller Shenzhen factory as cases in the southern city rose.
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18632.0
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2022-10-31 00:00:00 UTC
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Take the Zacks Approach to Beat the Market: Caterpillar, Amgen, Inventiva in Focus
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AAPL
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https://www.nasdaq.com/articles/take-the-zacks-approach-to-beat-the-market%3A-caterpillar-amgen-inventiva-in-focus
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Wall Street closed last week with gains, led by positive signs from economic indicators. The tech-heavy Nasdaq, the S&P 500 and the Dow Jones Industrial Average ended the week with 2.2%, 4% and 5.7% gains, respectively.
Although treasury yields continued to rise, signals from the Fed that interest rate hikes would be slowed down from December and eventually take a pause early in 2023 drove the market. An encouraging earnings report from Apple Inc. AAPL managed to stem the rot in big-tech giants, and the sector recovered for the week.
Moreover, GDP grew modestly in the third quarter, spurring hopes that the market has already bottomed out. With the Fed already seeing results from its stringent policy tightening and intending to go slow, fears of an impending recession are getting allayed.
Regardless of market conditions, we, here at Zacks, provide investors with unbiased guidance on how to beat the market.
As usual, Zacks Research guided investors over the past three months with its time-tested methodologies. Given the prevailing market uncertainty, you may want to look at our feats to prepare better for your next action.
Here are some of our key achievements:
Inventiva, Koppers Holdings Surge Following Zacks Rank Upgrade
Shares of Inventiva S.A. IVA have gained 22.2% since it was upgraded to a Zacks Rank #2 (Buy) on August 11.
Another stock, Koppers Holdings Inc. KOP, was upgraded to a Zacks Rank #2 on August 8and has returned 5.8% since then.
Zacks Rank, our short-term rating system, has earnings estimate revisions at its core. Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
This stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally audited track record, with Zacks Rank #1 stocks generating an average annual return of +24.8% since 1988.You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>
Check Inventiva’s historical EPS and Sales here>>>
Check Koppers Holdings’ historical EPS and Sales here>>>
Image Source: Zacks Investment Research
Zacks Recommendation Upgrade Drives KnowBe4 and Custom Truck Higher
Shares of KnowBe4, Inc. KNBE and Custom Truck One Source, Inc. CTOS have gained 26.7% and 5.3% since their Zacks Recommendation was upgraded to Outperform on August 12 and August 10, respectively.
While the Zacks Rank is our short-term rating system that is most effective over the one- to three-month holding horizon, the Zacks Recommendation aims to predict performance over the next 6 to 12 months. However, just like the Zacks Rank, the foundation for the Zacks Recommendation is trends in earnings estimate revisions.
The Zacks Recommendation classifies stocks into three groups — Outperform, Neutral and Underperform. While these recommendations are determined quantitatively, our analysts have the flexibility to override them for the 1100+ stocks they closely follow based on their better judgment of factors such as valuation, industry conditions and management effectiveness than the quantitative model.
To access our research reports with Zacks Recommendations for the 1100+ stocks we cover, click here>>>
Zacks Focus List Model Portfolio Stocks Axon, Caterpillar Surge Ahead
Shares of Axon Enterprise, Inc. AXON, which belongs to the Zacks Focus List, have gained 21.8% over the past 12 weeks. The stock was added to the Focus List on June 3, 2020. Another Focus-List holding, Caterpillar Inc. CAT, which was added to the portfolio on April 18,2017, has returned 19.4% over the past three months.
The Zacks Focus List is a model portfolio of 50 hand-picked stocks that possess the right fundamental ingredients to outperform the market over the next 12 months. These 50 stocks are picked from a long list of stocks with the highest Zacks Rank.
Since its inception on February 1, 1996, the Focus List portfolio has delivered an annualized return of +12.9%.
Unlock all of our powerful research, tools and analysis, including the Focus List, Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. Gain full access now >>
Zacks ECAP Stocks Tractor Supply, AmerisourceBergen Deliver Solid Returns
Tractor Supply Company TSCO, a component of our Earnings Certain Admiral Portfolio (ECAP), jumped 18.8% over the past 12 weeks. AmerisourceBergen Corporation ABC followed Tractor Supply with 14.4% returns.
ECAP is a model portfolio of 30 concentrated, ultra-defensive, long-term Buy and Hold stocks.
With little to no turnover and annual rebalance periodicity, the ECAP seeks to minimize capital loss by holding shares of companies whose earnings streams exhibit a proven 20+ year track record of surviving recessionary periods with minimal impact on aggregate earnings growth relative to the overall S&P 500.
The ECAP and many other model portfolios are available as part of Zacks Advisor Tools, a cloud-based solution to access Zacks award-winning stock, mutual fund and ETF research. Click here to schedule a demo.
Zacks ECDP Stocks J. M. Smucker, Amgen Outperform Peers
The J. M. Smucker Company SJM, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 13.2% over the past 12 weeks. Another ECDP stock, Amgen Inc. AMGN, has climbed 10.9% over the same time frame. Of course, the inclination of investors toward quality dividend stocks to secure an income stream amid the heightened market volatility contributed to this performance.
Check J. M. Smucker’s dividend history here>>>
Check Amgen’s dividend history here>>>
With an extremely low Beta and a history of minimum earnings variability over the last 20+ years, this 25-stock portfolio helps significantly mitigate risk. The ECDP has consistently outperformed the S&P 500 Dividend Aristocrats ETF NOBL.
Click here to access this portfolio on Zacks Advisor Tools.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
Caterpillar Inc. (CAT): Free Stock Analysis Report
Amgen Inc. (AMGN): Free Stock Analysis Report
Tractor Supply Company (TSCO): Free Stock Analysis Report
AmerisourceBergen Corporation (ABC): Free Stock Analysis Report
The J. M. Smucker Company (SJM): Free Stock Analysis Report
Koppers Holdings Inc. (KOP): Free Stock Analysis Report
Axon Enterprise, Inc (AXON): Free Stock Analysis Report
ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports
Inventiva S.A. Sponsored ADR (IVA): Free Stock Analysis Report
Custom Truck One Source, Inc. (CTOS): Free Stock Analysis Report
KnowBe4, Inc. (KNBE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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An encouraging earnings report from Apple Inc. AAPL managed to stem the rot in big-tech giants, and the sector recovered for the week. Apple Inc. (AAPL): Free Stock Analysis Report Although treasury yields continued to rise, signals from the Fed that interest rate hikes would be slowed down from December and eventually take a pause early in 2023 drove the market.
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An encouraging earnings report from Apple Inc. AAPL managed to stem the rot in big-tech giants, and the sector recovered for the week. Apple Inc. (AAPL): Free Stock Analysis Report Image Source: Zacks Investment Research Zacks Recommendation Upgrade Drives KnowBe4 and Custom Truck Higher Shares of KnowBe4, Inc. KNBE and Custom Truck One Source, Inc. CTOS have gained 26.7% and 5.3% since their Zacks Recommendation was upgraded to Outperform on August 12 and August 10, respectively.
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An encouraging earnings report from Apple Inc. AAPL managed to stem the rot in big-tech giants, and the sector recovered for the week. Apple Inc. (AAPL): Free Stock Analysis Report This stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally audited track record, with Zacks Rank #1 stocks generating an average annual return of +24.8% since 1988.You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>> Check Inventiva’s historical EPS and Sales here>>> Check Koppers Holdings’ historical EPS and Sales here>>>
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An encouraging earnings report from Apple Inc. AAPL managed to stem the rot in big-tech giants, and the sector recovered for the week. Apple Inc. (AAPL): Free Stock Analysis Report Regardless of market conditions, we, here at Zacks, provide investors with unbiased guidance on how to beat the market.
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18633.0
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2022-10-31 00:00:00 UTC
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3 Dividend-Paying Tech Stocks to Buy Right Now
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AAPL
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https://www.nasdaq.com/articles/3-dividend-paying-tech-stocks-to-buy-right-now-6
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nan
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Even in a down market, investors want to make money. The bear market of 2022 brought dividends back into vogue as growth investors face off against a potential recession. Dividends provide steady income, and shareholders can also reinvest the proceeds -- capitalizing by buying shares while prices are down. This sets them up for more significant future profits.
Texas Instruments (NASDAQ: TXN) is a terrific all-weather dividend payer with a long track record of excellence. Verizon's (NYSE: VZ) yield is gigantic but comes with increased risk. Apple (NASDAQ: AAPL) has a lower dividend yield but makes up for it in stock buybacks and price appreciation, which has advantages.
Let's find out a bit more about these three dividend-paying tech stocks and why now might be a good time to buy.
1. Cash-management skills at Texas Instruments
Sometimes a company's history speaks for itself, which is the case at Texas Instruments. This semiconductor stock is a leader in the industrial and automotive sectors but also provides chips for personal electronics, communications, and others. Its 100,000 customers, and the diversity across markets, make Texas Instruments less volatile than some other chipmakers.
Texas Instruments has raised the dividend each year for the last 19 years. Even during the Great Recession, management was able to give shareholders a raise. This consistency should provide some comfort in the current economy. The dividend has grown a whopping 5,473% over that time, rising at a compound annual growth rate (CAGR) of 25%, from $0.089 per share in 2004 to $4.96 per share now.
A lucrative stock buyback program has also reduced the share count by 46% over this period. The economy may be uncertain, but demand for Texas Instruments' products appears strong. Third-quarter results show a 13% year-over-year increase in revenue, a 16% increase in operating profit, and a 19% increase in earnings per share (EPS).
The current bear market allows investors to snag a yield higher than its historical average, as shown below.
TXN Dividend Yield data by YCharts
Texas Instruments is an excellent all-purpose dividend stock with a bona fide history of rewarding shareholders.
2. Verizon is for yield buffs
Verizon stock has struggled mightily as growth has dried up like a puddle in the desert. The stock is down more than 30% year to date, which has driven the dividend yield up to more than 7%.
In the chart below, the purple line shows the share price, while the orange line depicts the monster yield. The current yield is more than 2.5% above the stock's 10-year average.
VZ data by YCharts
Investors should understand that a high yield generally means more risk. Many are concerned about the company's ability to continue supporting the dividend, which is part of why the stock price has fallen (which actually raises the yield even higher). But this is a company with real potential to generate profits and a return to growth is achievable.
There were several concerning metrics reported in the latest earnings report. In Q3, revenue was up 4% year over year to $34.2 billion, but net income of $5 billion was down 23.3% year over year. Over the first nine months of the fiscal year, free cash flow was $12.4 billion as compared to $17.3 billion over the same period last year.
The declining metrics aren't a surprise. High inflation has strapped consumers, and Verizon isn't adding customers as fast as before. But you don't usually get a 7% yield when things are great. The one bright spot is that Verizon is still managing to produce large amounts of free cash flow (even if reduced). And despite the lowered free cash flow, Verizon's payout ratio on its dividend is a very manageable 55%, which continues to leave room for the dividend to grow.
Still, Verizon's management is focusing on improving consumer results, accelerating growth in business customers, and improving its capital management. It won't be easy; however, taking a chance on this high-yielder could be worth it if they can execute.
3. Apple is a cash-flow-producing machine
It's no secret that holding company Berkshire Hathaway and its CEO Warren Buffett love Apple stock. Approximately 41% of Berkshire's portfolio of stock in 40-plus publicly traded companies and exchange-traded funds is made up of Apple stock.
The reasons are simple. Apple has:
A vast, loyal customer base and terrific products.
Increasing sales and earnings.
Tremendous cash flow from operations returned to shareholders through dividends and stock buybacks.
Apple just released its fiscal 2022 year-end earnings (for the quarter ending Sept. 24) and its results outshined other tech giants like Amazon and Alphabet. That Apple could have such consistent results quarter after quarter in a challenging economy is a testament to its management and brand.
Total sales were up 8% in fiscal 2022 to $394 billion. Even better, the company maintained its 30% operating margin despite inflation. Cash from operations ballooned from $104 billion last year to $122 billion this fiscal year, with most returned to shareholders.
Apple's dividend yield is admittedly tiny at just 0.62%. The company makes up for this with massive stock buybacks. In fiscal 2022, $89 billion worth of stock was repurchased, and $14.8 billion in dividends were paid -- a total yield of over 4% of the current market cap. Owning stock is like holding a slice of a company's pie. When the company repurchases stock, your slice gets larger and is generally worth more. Share buybacks aren't taxed yearly like dividends, so many investors prefer them and love Apple stock.
There are dividend-paying tech stocks out there
Technology stocks aren't known for their dividends. But the companies above offer a mix of consistency, yield, and growth and show that dividend investors shouldn't overlook this fertile sector.
10 stocks we like better than Texas Instruments
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 Texas Instruments 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
Bradley Guichard has positions in Apple, Texas Instruments, and Verizon Communications and has the following options: short December 2022 $160 calls on Apple. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and Texas Instruments. The Motley Fool recommends Verizon Communications and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) has a lower dividend yield but makes up for it in stock buybacks and price appreciation, which has advantages. Many are concerned about the company's ability to continue supporting the dividend, which is part of why the stock price has fallen (which actually raises the yield even higher). Apple just released its fiscal 2022 year-end earnings (for the quarter ending Sept. 24) and its results outshined other tech giants like Amazon and Alphabet.
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Apple (NASDAQ: AAPL) has a lower dividend yield but makes up for it in stock buybacks and price appreciation, which has advantages. TXN Dividend Yield data by YCharts Texas Instruments is an excellent all-purpose dividend stock with a bona fide history of rewarding shareholders. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and Texas Instruments.
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Apple (NASDAQ: AAPL) has a lower dividend yield but makes up for it in stock buybacks and price appreciation, which has advantages. TXN Dividend Yield data by YCharts Texas Instruments is an excellent all-purpose dividend stock with a bona fide history of rewarding shareholders. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Bradley Guichard has positions in Apple, Texas Instruments, and Verizon Communications and has the following options: short December 2022 $160 calls on Apple.
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Apple (NASDAQ: AAPL) has a lower dividend yield but makes up for it in stock buybacks and price appreciation, which has advantages. Tremendous cash flow from operations returned to shareholders through dividends and stock buybacks. Share buybacks aren't taxed yearly like dividends, so many investors prefer them and love Apple stock.
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18634.0
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2022-10-31 00:00:00 UTC
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Is Schwab Fundamental U.S. Broad Market Index ETF (FNDB) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-schwab-fundamental-u.s.-broad-market-index-etf-fndb-a-strong-etf-right-now-4
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Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the Schwab Fundamental U.S. Broad Market Index ETF (FNDB) is a smart beta exchange traded fund launched on 08/13/2013.
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.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
FNDB is managed by Charles Schwab, and this fund has amassed over $454.68 million, which makes it one of the larger ETFs in the Style Box - All Cap Value. Before fees and expenses, this particular fund seeks to match the performance of the Russell RAFI US Index.
The Russell RAFI US Index measures the performance of the constituent companies by fundamental overall company scores.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.25% for FNDB, making it one of the cheaper products in the space.
FNDB's 12-month trailing dividend yield is 1.98%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
FNDB's heaviest allocation is in the Information Technology sector, which is about 15.20% of the portfolio. Its Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.07% of total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT).
Its top 10 holdings account for approximately 18.09% of FNDB's total assets under management.
Performance and Risk
The ETF has lost about -8.25% so far this year and is down about -4.43% in the last one year (as of 10/31/2022). In the past 52-week period, it has traded between $47.13 and $59.23.
FNDB has a beta of 1.01 and standard deviation of 24.89% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 1709 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab Fundamental U.S. Broad Market Index ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Dimensional U.S. Targeted Value ETF (DFAT) tracks ---------------------------------------- and the iShares Core S&P U.S. Value ETF (IUSV) tracks S&P 900 Value Index. Dimensional U.S. Targeted Value ETF has $7.17 billion in assets, iShares Core S&P U.S. Value ETF has $12.17 billion. DFAT has an expense ratio of 0.29% and IUSV 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 Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
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. Broad Market Index ETF (FNDB): 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
iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports
Dimensional U.S. Targeted Value ETF (DFAT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.07% of total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.07% of total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the Schwab Fundamental U.S. Broad Market Index ETF (FNDB) is a smart beta exchange traded fund launched on 08/13/2013.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.07% of total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the Schwab Fundamental U.S. Broad Market Index ETF (FNDB) is a smart beta exchange traded fund launched on 08/13/2013.
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Apple Inc. (AAPL): Free Stock Analysis Report Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.07% of total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
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18635.0
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2022-10-31 00:00:00 UTC
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China COVID curbs hit iPhone output, shut Shanghai Disney
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AAPL
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https://www.nasdaq.com/articles/china-covid-curbs-hit-iphone-output-shut-shanghai-disney
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nan
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nan
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By Martin Quin Pollard and Bernard Orr
BEIJING, Oct 31 (Reuters) - China's COVID-19 curbs forced the closure of Disney's Shanghai resort on Monday, while production of Apple Inc iPhones at a vast contract manufacturing facility could drop by 30% next month due to coronavirus restrictions, a source told Reuters.
Rising case numbers from numerous outbreaks across China have prompted a tightening of local curbs and lockdowns, including in parts of big cities such as the southern metropolis of Guangzhou, as the economic toll of the country's zero-COVID policy mounts.
Data released on Monday showed that Chinese factory activity unexpectedly fell in October, dragged down by softening global demand and strict domestic COVID-19 curbs, which hit production, travel and shipping in the world's second-largest economy.
"With the zero-COVID policy here to stay, we think the economy will continue to struggle heading into 2023," Zichun Huang, economist at Capital Economics, said in a research note.
At this month's twice-a-decade Communist Party Congress, President Xi Jinping reiterated China's commitment to its zero-COVID policy, disappointing investors and countless Chinese frustrated by lockdowns, travel curbs and testing.
"We don't expect the zero-COVID policy to be abandoned until 2024, which means virus disruptions will keep in-person services activity subdued," said Huang from Capital Economics.
DISCONTENT
In the central city of Zhengzhou, a Foxconn plant that makes iPhones and employs about 200,000 people has been rocked by discontent over stringent measures to curb the spread of COVID-19.
A person with direct knowledge of the matter said iPhone production at the plant could drop as much as 30% in November, and that Taiwan-based Foxconn, formally Hon Hai Precision Industry Co Ltd 2317.TW, is working to boost production at a factory in Shenzhen to make up for the shortfall.
In Shanghai, the city's Disney Resort abruptly suspended operations on Monday to comply with COVID-19 prevention measures, with all visitors at the time of the announcement required to stay in the park until they return a negative test for the virus.
Videos circulating on China's Twitter-like Weibo, which could not be independently verified, showed people rushing to the park's gates, which were already locked. Videos of people fleeing malls and office buildings for fear of being locked in have become commonplace on Chinese social media this year.
New cases in mainland China hit 2,898 on Sunday, topping 2,000 for a second straight day, a tiny number by global standards.
In Guangzhou, one of China's biggest cities and an economic powerhouse, the number of new locally-transmitted cases totalled 1,110 from Oct. 24-30, up from 402 in the previous seven-day period, with the district of Haizhu, home to 1.8 million people, under lockdown.
A Guangzhou resident named Ye said he was in a suburban quarantine hotel after being told on Oct. 27 that he was deemed a close contact by virtue of walking on the same street three days earlier around the same time as someone who tested positive.
"I do not know how they calculated that. Also there is no room for you to query or dispute it. If they say that's what you are, then that's final," said Ye, an artist in his 50s.
WIDESPREAD FLARE-UPS
Over the past week, authorities have raced to get a handle on rising cases in cities across China, including Datong, Xining, Nanjing, Xian, Zhengzhou and Wuhan, forcing temporary lockdown measures.
Du Fan, 40, founder of Wuhan Small Animals Protection Association, which won praise from animal lovers during the pandemic's first lockdown in the central city in early 2020, said his residential compound had been locked down on Saturday.
"My biggest worry at the moment is that if this continues for too much longer, I'm afraid we won't be able to continue rescuing the animals, because there's no way to carry out a lot of work," he said.
In the Chinese-controlled territory of Macau, authorities reinstated curbs including locking down a major casino over the weekend after a handful of cases were detected. Macau had been COVID-free for more than three months.
However, in Beijing the Universal Resort theme park reopened on Monday after being shut last week because one visitor had tested positive for coronavirus.
Mudanjiang in Heilongjiang province, bordering North Korea, extended a lockdown of some areas, according to local media. Dandong, Suihua, Ruili - cities bordering North Korea, Russia and Myanmar respectively - are also experiencing outbreaks.
(Additional reporting by Brenda Goh, Yimou Lee and Beijing and Shanghai newsrooms; Writing by Tony Munroe Editing by Shri Navaratnam and Gareth Jones)
((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.
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Rising case numbers from numerous outbreaks across China have prompted a tightening of local curbs and lockdowns, including in parts of big cities such as the southern metropolis of Guangzhou, as the economic toll of the country's zero-COVID policy mounts. Data released on Monday showed that Chinese factory activity unexpectedly fell in October, dragged down by softening global demand and strict domestic COVID-19 curbs, which hit production, travel and shipping in the world's second-largest economy. At this month's twice-a-decade Communist Party Congress, President Xi Jinping reiterated China's commitment to its zero-COVID policy, disappointing investors and countless Chinese frustrated by lockdowns, travel curbs and testing.
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By Martin Quin Pollard and Bernard Orr BEIJING, Oct 31 (Reuters) - China's COVID-19 curbs forced the closure of Disney's Shanghai resort on Monday, while production of Apple Inc iPhones at a vast contract manufacturing facility could drop by 30% next month due to coronavirus restrictions, a source told Reuters. Data released on Monday showed that Chinese factory activity unexpectedly fell in October, dragged down by softening global demand and strict domestic COVID-19 curbs, which hit production, travel and shipping in the world's second-largest economy. In the central city of Zhengzhou, a Foxconn plant that makes iPhones and employs about 200,000 people has been rocked by discontent over stringent measures to curb the spread of COVID-19.
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By Martin Quin Pollard and Bernard Orr BEIJING, Oct 31 (Reuters) - China's COVID-19 curbs forced the closure of Disney's Shanghai resort on Monday, while production of Apple Inc iPhones at a vast contract manufacturing facility could drop by 30% next month due to coronavirus restrictions, a source told Reuters. Rising case numbers from numerous outbreaks across China have prompted a tightening of local curbs and lockdowns, including in parts of big cities such as the southern metropolis of Guangzhou, as the economic toll of the country's zero-COVID policy mounts. At this month's twice-a-decade Communist Party Congress, President Xi Jinping reiterated China's commitment to its zero-COVID policy, disappointing investors and countless Chinese frustrated by lockdowns, travel curbs and testing.
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Rising case numbers from numerous outbreaks across China have prompted a tightening of local curbs and lockdowns, including in parts of big cities such as the southern metropolis of Guangzhou, as the economic toll of the country's zero-COVID policy mounts. "With the zero-COVID policy here to stay, we think the economy will continue to struggle heading into 2023," Zichun Huang, economist at Capital Economics, said in a research note. Over the past week, authorities have raced to get a handle on rising cases in cities across China, including Datong, Xining, Nanjing, Xian, Zhengzhou and Wuhan, forcing temporary lockdown measures.
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18636.0
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2022-10-31 00:00:00 UTC
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Apple workers in Australia gear up for more strike action
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AAPL
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https://www.nasdaq.com/articles/apple-workers-in-australia-gear-up-for-more-strike-action
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nan
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nan
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By Lewis Jackson
SYDNEY, Oct 31 (Reuters) - Hundreds of Apple AAPL.O workers in Australia are set to strike again after almost two-thirds of employees rejected a pay and benefits deal, the latest escalation of a fight that has seen weeks of walkouts at stores around the country.
Results released on Monday show 68% of Apple workers rejected a workplace agreement proposed by management with 87% of Apple's almost 4,000 Australian workers participating. Apple declined to comment on the results.
Members of the Retail and Fast Food Workers Union (RAFFWU), one of three involved in negotiations and representing around 200 workers, will meet on Monday night and union representatives say more strikes will "absolutely" be discussed.
"Workers are very happy, they've been campaigning for a fair agreement for three months. Our members have been engaged in pretty serious work bans and strikes," RAFFWU secretary Josh Cullinan told Reuters by phone.
"We expect members will want to endorse a series of work stoppages."
RAFFWU workers staged a one-hour walkout on Saturday, midway through the three-day ballot. It followed a full day strike earlier in October.
Negotiations began in August when Apple proposed a new set of locked-in wage rises and conditions that unions say mean real wage cuts and poor work-life balance.
Unions want Apple to guarantee wage increases that reflect inflation - which is tracking around 7% in Australia, more than double the central bank's target range - and weekends of two consecutive days rather than being split.
Apple says its minimum pay rates are 17% above the industry minimum and that full-time workers get guaranteed weekends.
(Reporting by Lewis Jackson; Editing by Lincoln Feast)
((lewis.jackson@thomsonreuters.com; Reuters Messaging: @lewjackk))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Lewis Jackson SYDNEY, Oct 31 (Reuters) - Hundreds of Apple AAPL.O workers in Australia are set to strike again after almost two-thirds of employees rejected a pay and benefits deal, the latest escalation of a fight that has seen weeks of walkouts at stores around the country. Our members have been engaged in pretty serious work bans and strikes," RAFFWU secretary Josh Cullinan told Reuters by phone. Unions want Apple to guarantee wage increases that reflect inflation - which is tracking around 7% in Australia, more than double the central bank's target range - and weekends of two consecutive days rather than being split.
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By Lewis Jackson SYDNEY, Oct 31 (Reuters) - Hundreds of Apple AAPL.O workers in Australia are set to strike again after almost two-thirds of employees rejected a pay and benefits deal, the latest escalation of a fight that has seen weeks of walkouts at stores around the country. Results released on Monday show 68% of Apple workers rejected a workplace agreement proposed by management with 87% of Apple's almost 4,000 Australian workers participating. Members of the Retail and Fast Food Workers Union (RAFFWU), one of three involved in negotiations and representing around 200 workers, will meet on Monday night and union representatives say more strikes will "absolutely" be discussed.
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By Lewis Jackson SYDNEY, Oct 31 (Reuters) - Hundreds of Apple AAPL.O workers in Australia are set to strike again after almost two-thirds of employees rejected a pay and benefits deal, the latest escalation of a fight that has seen weeks of walkouts at stores around the country. Results released on Monday show 68% of Apple workers rejected a workplace agreement proposed by management with 87% of Apple's almost 4,000 Australian workers participating. Members of the Retail and Fast Food Workers Union (RAFFWU), one of three involved in negotiations and representing around 200 workers, will meet on Monday night and union representatives say more strikes will "absolutely" be discussed.
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By Lewis Jackson SYDNEY, Oct 31 (Reuters) - Hundreds of Apple AAPL.O workers in Australia are set to strike again after almost two-thirds of employees rejected a pay and benefits deal, the latest escalation of a fight that has seen weeks of walkouts at stores around the country. Results released on Monday show 68% of Apple workers rejected a workplace agreement proposed by management with 87% of Apple's almost 4,000 Australian workers participating. Unions want Apple to guarantee wage increases that reflect inflation - which is tracking around 7% in Australia, more than double the central bank's target range - and weekends of two consecutive days rather than being split.
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18637.0
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2022-10-31 00:00:00 UTC
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EXCLUSIVE-Foxconn COVID woes may hit up to 30% of iPhone November output from Zhengzhou plant -source
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AAPL
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https://www.nasdaq.com/articles/exclusive-foxconn-covid-woes-may-hit-up-to-30-of-iphone-november-output-from-zhengzhou
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nan
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By Yimou Lee
TAIPEI, Oct 31 (Reuters) - COVID-19 woes at Foxconn's iPhone assembly plant in China's Zhengzhou city could slash the site's November output of the Apple Inc AAPL.O device by as much as 30%, a person with direct knowledge of the matter said on Monday.
Foxconn, formally Hon Hai Precision Industry Co Ltd 2317.TW, is working to boost production at its factory in Shenzhen city to make up for the shortfall, said the person, declining to be identified as the information was private.
The 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 within the site, with several workers fleeing the facility over the weekend.
The possible impact on production comes amid a traditionally busy time for electronics makers ahead of the year-end holiday season, which is also a prime time for vendors such as Apple.
Foxconn on Sunday said the situation was being brought under control and that it would coordinate back-up production with other plants to reduce potential impact. Its share price fell 1.9% on Monday versus a 1.1% rise in the broader market .TWII.
Apple did not respond to a request for comment.
Foxconn is Apple's biggest iPhone maker, producing 70% of iPhone shipments globally which in turn makes up 45% of the Taiwanese firm's revenue, analysts at Taipei-based Fubon Research said this month.
It also builds the device in India and southern China, but its Zhengzhou factory assembles the majority of its global output.
A second person familiar with the situation said many workers remained at the Zhengzhou plant and that production was continuing.
STRICT COVID-19 MEASURES
Under China's ultra-strict zero-COVID-19 policies, localities must act swiftly to quell outbreaks, with measures including full-scale lockdowns.
Factories in affected areas are often allowed to stay open on condition they operate under a "closed loop" system where staff live and work on-site. Businesses have said such arrangements pose numerous difficulties.
Foxconn on Oct. 19 banned dining at canteens at the Zhengzhou plant and required workers to eat meals in dormitories. It said production was normal.
The measures led to people who said they worked at the site venting frustration about their treatment and provisions via social media.
Scores fled the site over the weekend, with photographs and videos on social media purporting to show Foxconn staff trekking across fields in daytime and along roads at night. Reuters could not immediately verify the authenticity of the posts.
Foxconn and local authorities have not disclosed the number of any infected workers at the site. Zhengzhou, capital of central Henan province, has since Oct. 19 reported 264 locally transmitted COVID-19 cases.
Foxconn implemented closed loop measures in March and July this year at its smaller Shenzhen factory as cases in the southern city rose.
In May, the Shanghai plant of another Apple supplier, MacBook assembler Quanta Computer Inc 2382.TW, was also hit by worker chaos after the discovery of COVID-19 cases despite a closed-loop system being put in place.
(Reporting by Yimou Lee; Additional reporting by Brenda Goh; Editing by Gerry Doyle and Christopher Cushing)
((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.
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By Yimou Lee TAIPEI, Oct 31 (Reuters) - COVID-19 woes at Foxconn's iPhone assembly plant in China's Zhengzhou city could slash the site's November output of the Apple Inc AAPL.O device by as much as 30%, a person with direct knowledge of the matter said on Monday. Foxconn, formally Hon Hai Precision Industry Co Ltd 2317.TW, is working to boost production at its factory in Shenzhen city to make up for the shortfall, said the person, declining to be identified as the information was private. The 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 within the site, with several workers fleeing the facility over the weekend.
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By Yimou Lee TAIPEI, Oct 31 (Reuters) - COVID-19 woes at Foxconn's iPhone assembly plant in China's Zhengzhou city could slash the site's November output of the Apple Inc AAPL.O device by as much as 30%, a person with direct knowledge of the matter said on Monday. Foxconn is Apple's biggest iPhone maker, producing 70% of iPhone shipments globally which in turn makes up 45% of the Taiwanese firm's revenue, analysts at Taipei-based Fubon Research said this month. It also builds the device in India and southern China, but its Zhengzhou factory assembles the majority of its global output.
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By Yimou Lee TAIPEI, Oct 31 (Reuters) - COVID-19 woes at Foxconn's iPhone assembly plant in China's Zhengzhou city could slash the site's November output of the Apple Inc AAPL.O device by as much as 30%, a person with direct knowledge of the matter said on Monday. Foxconn, formally Hon Hai Precision Industry Co Ltd 2317.TW, is working to boost production at its factory in Shenzhen city to make up for the shortfall, said the person, declining to be identified as the information was private. The 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 within the site, with several workers fleeing the facility over the weekend.
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By Yimou Lee TAIPEI, Oct 31 (Reuters) - COVID-19 woes at Foxconn's iPhone assembly plant in China's Zhengzhou city could slash the site's November output of the Apple Inc AAPL.O device by as much as 30%, a person with direct knowledge of the matter said on Monday. A second person familiar with the situation said many workers remained at the Zhengzhou plant and that production was continuing. Foxconn implemented closed loop measures in March and July this year at its smaller Shenzhen factory as cases in the southern city rose.
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18638.0
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2022-10-30 00:00:00 UTC
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EXCLUSIVE-Foxconn COVID woes may hit up to 30% of iPhone Nov shipments from Zhengzhou plant - source
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AAPL
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https://www.nasdaq.com/articles/exclusive-foxconn-covid-woes-may-hit-up-to-30-of-iphone-nov-shipments-from-zhengzhou-plant
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By Yimou Lee
TAIPEI, Oct 31 (Reuters) - Apple supplier AAPL.O Foxconn's 2317.TW COVID-19 woes at its vast iPhone manufacturing facility in China's Zhengzhou city could slash the site's November iPhone shipments by up to 30%, a source with direct knowledge of the matter said.
The source, who declined to be identified as the information was private, said Foxconn is working to boost iPhone production at its factory in the southern city of Shenzhen.
Foxconn referred Reuters to a statement it released late on Sunday, in which the company said that the situation was gradually being brought under control and that Foxconn would coordinate back-up production capacity with its other plants to reduce any potential impact.
Apple did not immediately respond to a request from Reuters for comment. Shares of Foxconn, formally called Hon Hai Precision Industry Co Ltd, dropped 1.9% on Monday morning, compared to a 1.1% rise in the broader market .TWII.
Foxconn's factory in Zhengzhou assembles the majority of the company's global iPhone output, though Apple also produces the product in southern China as well as in India.
The plant, which employs about 200,000 workers, has in recent days been rocked by worker discontent over stringent measures to curb COVID-19 within the site.
Several migrant workers fled the plant over the weekend for their hometowns, driving cities to hastily draw up plans to accommodate them.
The impact on production comes amid the traditionally busy time for electronics makers and ahead of the year-end holiday season, which is also a prime time for vendors such as Apple.
Under China's ultra-strict zero-COVID policies, localities are mandated to act swiftly to quell any outbreaks, with measures that could include full-scale lockdowns. On Oct. 19, Foxconn banned all dining-in at canteens and required workers to take their meals in their dormitories, but said that production was normal.
Photographs and videos circulating widely on Chinese social media since Saturday showed Foxconn workers trekking across fields in the day and along roads at night. Reuters could not immediately verify the authenticity of the posts.
(Reporting by Yimou Lee; Editing by Kim Coghill and Gerry Doyle)
((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.
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By Yimou Lee TAIPEI, Oct 31 (Reuters) - Apple supplier AAPL.O Foxconn's 2317.TW COVID-19 woes at its vast iPhone manufacturing facility in China's Zhengzhou city could slash the site's November iPhone shipments by up to 30%, a source with direct knowledge of the matter said. Shares of Foxconn, formally called Hon Hai Precision Industry Co Ltd, dropped 1.9% on Monday morning, compared to a 1.1% rise in the broader market .TWII. Foxconn's factory in Zhengzhou assembles the majority of the company's global iPhone output, though Apple also produces the product in southern China as well as in India.
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By Yimou Lee TAIPEI, Oct 31 (Reuters) - Apple supplier AAPL.O Foxconn's 2317.TW COVID-19 woes at its vast iPhone manufacturing facility in China's Zhengzhou city could slash the site's November iPhone shipments by up to 30%, a source with direct knowledge of the matter said. The source, who declined to be identified as the information was private, said Foxconn is working to boost iPhone production at its factory in the southern city of Shenzhen. Foxconn's factory in Zhengzhou assembles the majority of the company's global iPhone output, though Apple also produces the product in southern China as well as in India.
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By Yimou Lee TAIPEI, Oct 31 (Reuters) - Apple supplier AAPL.O Foxconn's 2317.TW COVID-19 woes at its vast iPhone manufacturing facility in China's Zhengzhou city could slash the site's November iPhone shipments by up to 30%, a source with direct knowledge of the matter said. Foxconn referred Reuters to a statement it released late on Sunday, in which the company said that the situation was gradually being brought under control and that Foxconn would coordinate back-up production capacity with its other plants to reduce any potential impact. Foxconn's factory in Zhengzhou assembles the majority of the company's global iPhone output, though Apple also produces the product in southern China as well as in India.
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By Yimou Lee TAIPEI, Oct 31 (Reuters) - Apple supplier AAPL.O Foxconn's 2317.TW COVID-19 woes at its vast iPhone manufacturing facility in China's Zhengzhou city could slash the site's November iPhone shipments by up to 30%, a source with direct knowledge of the matter said. The source, who declined to be identified as the information was private, said Foxconn is working to boost iPhone production at its factory in the southern city of Shenzhen. Foxconn referred Reuters to a statement it released late on Sunday, in which the company said that the situation was gradually being brought under control and that Foxconn would coordinate back-up production capacity with its other plants to reduce any potential impact.
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18639.0
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2022-10-30 00:00:00 UTC
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Foxconn COVID woes may hit up to 30% of iPhone Nov shipments from Zhengzhou plant - source
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AAPL
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https://www.nasdaq.com/articles/foxconn-covid-woes-may-hit-up-to-30-of-iphone-nov-shipments-from-zhengzhou-plant-source
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nan
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nan
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TAIPEI, Oct 31 (Reuters) - Apple supplier AAPL.O Foxconn's 2317.TW COVID-19 woes at its vast iPhone manufacturing facility in China's Zhengzhou city could slash the site's November iPhone shipments by up to 30%,
a source with direct knowledge of the matter said.
The source, who declined to be identified as the information was private, said Foxconn is now working to boost iPhone production at its factory in the southern city of Shenzhen.
Foxconn referred Reuters to a statement it released late on Sunday, in which the company said the situation was gradually coming under control and Foxconn would coordinate back-up production capacity with its other plants to reduce any potential impact.
Apple did not immediately respond to Reuters request for comment.
(Reporting by Yimou Lee; Editing by Kim Coghill)
((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.
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TAIPEI, Oct 31 (Reuters) - Apple supplier AAPL.O Foxconn's 2317.TW COVID-19 woes at its vast iPhone manufacturing facility in China's Zhengzhou city could slash the site's November iPhone shipments by up to 30%, a source with direct knowledge of the matter said. The source, who declined to be identified as the information was private, said Foxconn is now working to boost iPhone production at its factory in the southern city of Shenzhen. Foxconn referred Reuters to a statement it released late on Sunday, in which the company said the situation was gradually coming under control and Foxconn would coordinate back-up production capacity with its other plants to reduce any potential impact.
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TAIPEI, Oct 31 (Reuters) - Apple supplier AAPL.O Foxconn's 2317.TW COVID-19 woes at its vast iPhone manufacturing facility in China's Zhengzhou city could slash the site's November iPhone shipments by up to 30%, a source with direct knowledge of the matter said. The source, who declined to be identified as the information was private, said Foxconn is now working to boost iPhone production at its factory in the southern city of Shenzhen. (Reporting by Yimou Lee; Editing by Kim Coghill) ((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.
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TAIPEI, Oct 31 (Reuters) - Apple supplier AAPL.O Foxconn's 2317.TW COVID-19 woes at its vast iPhone manufacturing facility in China's Zhengzhou city could slash the site's November iPhone shipments by up to 30%, a source with direct knowledge of the matter said. Foxconn referred Reuters to a statement it released late on Sunday, in which the company said the situation was gradually coming under control and Foxconn would coordinate back-up production capacity with its other plants to reduce any potential impact. (Reporting by Yimou Lee; Editing by Kim Coghill) ((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.
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TAIPEI, Oct 31 (Reuters) - Apple supplier AAPL.O Foxconn's 2317.TW COVID-19 woes at its vast iPhone manufacturing facility in China's Zhengzhou city could slash the site's November iPhone shipments by up to 30%, a source with direct knowledge of the matter said. The source, who declined to be identified as the information was private, said Foxconn is now working to boost iPhone production at its factory in the southern city of Shenzhen. Foxconn referred Reuters to a statement it released late on Sunday, in which the company said the situation was gradually coming under control and Foxconn would coordinate back-up production capacity with its other plants to reduce any potential impact.
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18640.0
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2022-10-30 00:00:00 UTC
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Chinese cities brace for wave of Foxconn workers from COVID-hit Zhengzhou
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AAPL
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https://www.nasdaq.com/articles/chinese-cities-brace-for-wave-of-foxconn-workers-from-covid-hit-zhengzhou
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nan
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By Ryan Woo and Ziyi Tang
BEIJING, Oct 30 (Reuters) - Cities in central China hastily drew up plans to isolate migrant workers fleeing to their hometowns from a vast assembly facility of iPhone maker Foxconn 2317.TW in COVID-hit Zhengzhou, fearing they could trigger coronavirus outbreaks.
Zhengzhou, capital of central Henan province, reported 167 locally transmitted COVID-19 cases in the seven days to Oct. 29, up from 97 infections in the prior seven-day period.
Apple AAPL.O supplier Foxconn, based in Taiwan, currently has about 200,000 workers at its Zhengzhou complex and has not disclosed the number of infected workers, but said on Sunday that it would not stop workers from leaving.
Under China's ultra-strict zero-COVID policy, cities are mandated to act swiftly to quell any outbreaks, with measures that could include full-scale lockdowns. On Oct. 19, Foxconn banned all dine-in at canteens and required workers to take their meals in their dormitories.
"At the same time, for some employees who want to return home, the (plant) is cooperating with the government to organise personnel and vehicles to provide a point-to-point orderly return service for employees from today."
Disruptions from China's COVID policies to commerce and industry have intensified in recent weeks as cases multiplied. Shanghai Disneyland said on Saturday it would operate at reduced capacity. On Wednesday, Universal Beijing Resort was suspended after the visit of one infected individual.
"We are very aware that under the current situation, it is a protracted battle," Foxconn said.
But the situation was gradually coming under control, it said, and Foxconn would coordinate back-up production capacity with its other plants to reduce any potential impact.
Apple did not immediately reply to a Reuters request for comment on the Foxconn situation.
'I COULDN'T HELP BUT FEEL SAD'
Photographs and videos circulating on Chinese social media since Saturday showed Foxconn workers, apparently returning home, trekking across fields in the day and along roads at night. Reuters could not immediately verify the authenticity of the posts.
In a show of support, residents in the vicinity left bottled water and provisions next to roads with signs such as: "For Foxconn workers returning home", according to social media posts.
"Some people were walking amid wheat fields with their luggage, blankets and quilts," wrote a user of WeChat in a post about the social media images.
"I couldn't help but feel sad."
(Reporting by Ryan Woo and Ziyi Tang; Editing by Edmund Klamann and Nick Macfie)
((Ryan.Woo@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O supplier Foxconn, based in Taiwan, currently has about 200,000 workers at its Zhengzhou complex and has not disclosed the number of infected workers, but said on Sunday that it would not stop workers from leaving. By Ryan Woo and Ziyi Tang BEIJING, Oct 30 (Reuters) - Cities in central China hastily drew up plans to isolate migrant workers fleeing to their hometowns from a vast assembly facility of iPhone maker Foxconn 2317.TW in COVID-hit Zhengzhou, fearing they could trigger coronavirus outbreaks. Photographs and videos circulating on Chinese social media since Saturday showed Foxconn workers, apparently returning home, trekking across fields in the day and along roads at night.
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Apple AAPL.O supplier Foxconn, based in Taiwan, currently has about 200,000 workers at its Zhengzhou complex and has not disclosed the number of infected workers, but said on Sunday that it would not stop workers from leaving. By Ryan Woo and Ziyi Tang BEIJING, Oct 30 (Reuters) - Cities in central China hastily drew up plans to isolate migrant workers fleeing to their hometowns from a vast assembly facility of iPhone maker Foxconn 2317.TW in COVID-hit Zhengzhou, fearing they could trigger coronavirus outbreaks. Photographs and videos circulating on Chinese social media since Saturday showed Foxconn workers, apparently returning home, trekking across fields in the day and along roads at night.
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Apple AAPL.O supplier Foxconn, based in Taiwan, currently has about 200,000 workers at its Zhengzhou complex and has not disclosed the number of infected workers, but said on Sunday that it would not stop workers from leaving. By Ryan Woo and Ziyi Tang BEIJING, Oct 30 (Reuters) - Cities in central China hastily drew up plans to isolate migrant workers fleeing to their hometowns from a vast assembly facility of iPhone maker Foxconn 2317.TW in COVID-hit Zhengzhou, fearing they could trigger coronavirus outbreaks. Photographs and videos circulating on Chinese social media since Saturday showed Foxconn workers, apparently returning home, trekking across fields in the day and along roads at night.
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Apple AAPL.O supplier Foxconn, based in Taiwan, currently has about 200,000 workers at its Zhengzhou complex and has not disclosed the number of infected workers, but said on Sunday that it would not stop workers from leaving. By Ryan Woo and Ziyi Tang BEIJING, Oct 30 (Reuters) - Cities in central China hastily drew up plans to isolate migrant workers fleeing to their hometowns from a vast assembly facility of iPhone maker Foxconn 2317.TW in COVID-hit Zhengzhou, fearing they could trigger coronavirus outbreaks. Under China's ultra-strict zero-COVID policy, cities are mandated to act swiftly to quell any outbreaks, with measures that could include full-scale lockdowns.
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18641.0
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2022-10-29 00:00:00 UTC
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Investing in the Stock Market Could Turn Your $10,000 Into $300,000. Here's How.
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AAPL
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https://www.nasdaq.com/articles/investing-in-the-stock-market-could-turn-your-%2410000-into-%24300000.-heres-how.
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nan
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It has been a brutal year for the stock market, but downturns like the current one are often the best time to invest. In theory, because valuations are depressed, investors have the opportunity to buy shares of quality companies at a bargain and watch their positions grow.
Of course, the hard part is finding the right stocks. But a simple way to dip your toe into a volatile market in a still uncertain economy is to invest in exchange-traded funds (ETFs). ETFs allow you to invest in a broad portfolio of stocks based on an index as opposed to building your own portfolio of individual companies. It's a relatively easy way to invest without taking on excess risk, particularly for those who aren't sure where to begin.
Here's how one investment of $10,000 in a diversified ETF could grow to well over $300,000 given enough time.
A look back to 2002
We can't know for sure what the market will do over the next 10 or 20 years, but we can look back for some guidance on how things tend to play out. As the disclaimer goes, past results are no guarantee of future returns, but they can provide valuable perspective.
If you go back 20 years, the economy and markets were in a similar state as they are now. The dot-come bubble had burst in 2000, and investors were still feeling the pain with the S&P 500 down 23% in 2002, while the Nasdaq Composite was off 32% that year. Sound familiar? Also, the economy was not in a recession, but it had been for most of 2001 and was growing slowly in 2002.
In many ways, investors navigating the markets in Oct. 2002 were facing a very similar situation to what investors are grappling with in Oct. 2022. With that in mind, let's examine how much a $10,000 investment in the bear market of 20 years ago would have grown to by this time.
The 20-year performance of the Invesco QQQ
In this example, let's look at an ETF from the technology sector, the biggest loser of the dot-com bubble and this year as well. Specifically, we'll use the Invesco QQQ ETF (NASDAQ: QQQ), since it's one of the oldest technology ETFs and the largest with some $150 billion in assets.
The Invesco QQQ Trust ETF launched on March 10, 1999, and it tracks the performance of the Nasdaq 100 index, the 100 largest stocks in the Nasdaq, excluding those in the financial sector. It is heavily weighted toward technology stocks, which currently represent about 49.5% of the index. The three largest holdings are Apple, Microsoft, and Amazon.
Over the past 20 years, the QQQ has posted an average annualized return of 13% (from Oct. 25, 2002 to Oct. 25, 2022) -- including its 28% decline over the past 12 months.
If you invested $10,000 in the QQQ back on Oct. 25, 2002, you would have over $115,000 in your portfolio right now. But if you contributed an additional $100 every month to the ETF over that period, your total investment of $34,000 would be worth just under $220,000.
That may not be enough to retire on alone, but when you add in other sources of income like Social Security or contributions to an employer-sponsored retirement plan and other retirement accounts, it can be a big boost to your nest egg.
And if you have a 30-year horizon ...
It's worth pointing out how much faster your returns will further accumulate if you keep your money invested even longer. If you instead had a 30-year window to invest that $10,000 (with the monthly contribution of $100), your portfolio would grow to nearly $670,000 based on the 12.4% annual return of the Nasdaq 100 index over that period. Even with no monthly investment, it would grow to about $333,000.
As previously stated, we can't predict what the next 20 or 30 years in the market will hold, but we do know the price-to-earnings ratio of the Nasdaq 100 has come down from about 35 this time last year to 23 as of this writing -- and it's expected to fall further to 21 a year from now. Valuations are indeed lower, and growth stocks such as those in the Nasdaq 100 offer the best long-term returns. Despite the uncertainty, now is a good time to consider establishing long-term positions in quality investments like the QQQ.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In theory, because valuations are depressed, investors have the opportunity to buy shares of quality companies at a bargain and watch their positions grow. But a simple way to dip your toe into a volatile market in a still uncertain economy is to invest in exchange-traded funds (ETFs). If you instead had a 30-year window to invest that $10,000 (with the monthly contribution of $100), your portfolio would grow to nearly $670,000 based on the 12.4% annual return of the Nasdaq 100 index over that period.
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Specifically, we'll use the Invesco QQQ ETF (NASDAQ: QQQ), since it's one of the oldest technology ETFs and the largest with some $150 billion in assets. If you instead had a 30-year window to invest that $10,000 (with the monthly contribution of $100), your portfolio would grow to nearly $670,000 based on the 12.4% annual return of the Nasdaq 100 index over that period. The Motley Fool has positions in and recommends Amazon, Apple, and Microsoft.
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The Invesco QQQ Trust ETF launched on March 10, 1999, and it tracks the performance of the Nasdaq 100 index, the 100 largest stocks in the Nasdaq, excluding those in the financial sector. As previously stated, we can't predict what the next 20 or 30 years in the market will hold, but we do know the price-to-earnings ratio of the Nasdaq 100 has come down from about 35 this time last year to 23 as of this writing -- and it's expected to fall further to 21 a year from now. See the 10 stocks *Stock Advisor returns as of September 30, 2022 John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors.
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Here's how one investment of $10,000 in a diversified ETF could grow to well over $300,000 given enough time. If you go back 20 years, the economy and markets were in a similar state as they are now. The Motley Fool has positions in and recommends Amazon, Apple, and Microsoft.
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2022-10-29 00:00:00 UTC
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Company Report Roundup: Tesla, Tractor Supply, American Express, and More
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https://www.nasdaq.com/articles/company-report-roundup%3A-tesla-tractor-supply-american-express-and-more
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In this podcast, Motley Fool senior analysts Emily Flippen and Ron Gross discuss topics including:
Pinterest, Meta Platforms, and Alphabet getting dragged down by Snap's bad news
American Express shares falling despite increased full-year guidance
Boston Beer's strong third-quarter report
The latest from Microsoft, Netflix, Tesla, and Tractor Supply
They also dip into the Motley Fool Mailbag and discuss:
Medical device pure plays
Investing books they recommend
Surprising economics of pumpkin spice
The latest from McDonald's and Keurig Dr Pepper
Stocks they're more bullish on
Two stocks on their radar: ASML Holding and Blackstone
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on October 21, 2022.
Chris Hill: We've got stocks we're feeling more bullish on and investing books for your reading list. Motley Fool Money starts now.
From Fool Global headquarters, this is Motley Fool Money. It's the Motley Fool Money radio show. I'm Chris Hill. Joining me: Motley Fool Senior Analysts Emily Flippen and Ron Gross. Good to see you both.
Ron Gross: How are you doing, Chris?
Emily Flippen: Hi, Chris.
Chris Hill: We've got the latest headlines from Wall Street. We will dip into the Fool Mailbag, and as always, we've got a couple of stocks on our radar.
But we begin with a ripple effect in social media and advertising. Snap, the parent company of Snapchat, posted third-quarter results that included a slight miss on expected revenue. But the company said it expects revenue to slide further in the fourth quarter, and shares of Snap fell 30% on Friday. The ripple effect is that shares of Pinterest, Meta Platforms, and even Alphabet fell on Friday on concerns of a pullback in marketing spend.
Emily, where do you want to start?
Emily Flippen: Let's start with Snapchat's quarter. Because at face value, this quarter wasn't all that bad. They posted adjusted profitability, revenue only barely missed expectations and the daily average users actually blew it out of the water. They grew 19% in the quarter. That's what Snapchat wants investors to focus on.
However, even despite the strong performance and the platform itself, revenue growth of only 6% is a reminder about just how challenging the ad market is. In particular, how Snapchat is monetizing their users.
But I will say as much as this is an influx of the ad market and budgets being cut across the board, some of this is still Snapchat specific. Management knows that they have more than 75% of all 13- to 34-year-olds in 20 countries across the world on their platform. They say that group represents 50% of all advertising spend.
If that's the truth, which I expect it is, why are they having such a hard time monetizing those users? Because the market is there, the users are there, but their revenue growth is not. Their guidance for continued deceleration in revenue growth is indicative of that.
But to your point, Chris, it comes down to the question of, well, this ripple effect. There are times when a ripple effect makes sense, but in order to figure that out, figure out whether or not those problems are company specific or broader.
The ripple effect is happening right now because so much of the impact of the ad market is because of privacy changes that Apple instituted last year. It's made it harder for companies to justify ad spend in terms of return on investment. Those metrics they were using to justify getting that ads spend on their platform, they're just not there anymore.
But also, let's use some common sense. Snapchat is not the same as Facebook or Meta and Pinterest, this is only partially impacted by Apple's ad spend, as Snapchat has been struggling to monetize its users for a really long time now. For instance, in February 2021, before Apple made these changes, Snapchat's average revenue per user was around $3.44 per user. Snapchat or Pinterest at the same time was $4.26, Facebook was over $11, fast-forward to today, Snapchat's ARPU has fallen to $3.11 versus nearly $6 for Pinterest and still over $11 for Facebook. This is a Snapchat-specific issue.
Ron Gross: I agree with what Emily said about the ripple effect or the bleed-over to other companies. Sometimes it makes sense, but you have to be careful. I think for example if you think capex is going to slow or industrial spending is going to be weak and Caterpillar comes out and lowers its guidance, well, then you might want to take a look at Deere as well. But Cat and Deere don't have exactly the same business models by any means, so they may not be impacted in the same way. You need to understand that. The same if Macy's says the holiday season looks weak, then it will likely be weak across most retailers, but not necessarily all of them. You want to look at the dollar stores or TJX to see if you believe the same thing would happen.
I will say that truly long-term investors that invest across cycles probably can ignore a lot of this, as long as there is nothing going on that signals a permanent impairment or a paradigm shift that will impact and sink all the boats. You have to differentiate between cyclicality and permanent shifts.
Chris Hill: Emily, just to wrap up on this topic, obviously, we've been hearing for months now major consumer brands talking about pulling back on the marketing spend. That's a lever that they can control to a much greater degree. We saw that this week with Procter & Gamble, which is one of the biggest advertisers out there. Second quarter in a row, they're pulling back in terms of their spend on radio. But I look at Alphabet falling even just a little bit, and I think really? People are going to pull back on the digital spend with a company that's been doing it so long and so well as Google?
Emily Flippen: No company is insulated from a pullback in advertising spend. But the companies that will gain market share and do the best are the ones that can show that they have the best return on investment on advertising dollars. Snapchat, for a long time now, has proven that's not the case. Versus, to your point, companies like Alphabet, even companies like Meta, they have a long history of providing good returns on investments and capital that has been allocated to their advertising spend on those platforms. I don't expect for that to change.
Chris Hill: Third-quarter profits in revenue for American Express came in higher than expected. The financial service company also raised guidance for the full fiscal year, saying that consumer spending remains strong. Despite all that good stuff, Ron, shares of American Express fell 7% on Friday. What gives?
Ron Gross: It was a solid report, and it did beat expectations. But I think the sell-off is because Amex is building up their loss provisions to prepare for potential defaults in a weakening economy. That's what investors appear to be focused on.
But the quarter was very solid. Revenue was up 24%, with total volume up 19%. They added 3.3 million proprietary cards. Acquisitions of U.S. consumer platinum and consumer gold cards and business platinum cards each hit record highs. Millennials and Gen Z customers are the fastest-growing demographic; they comprised more than 60% of the acquisitions this year. But they're seeing the strength in the economy impact their business in a positive way. Demand for leisure travel has stayed resilient despite sky-high airfare prices, which if you've traveled at anytime recently, my gosh, it seems crazy.
Business travel has started to increase as people will start to move away from the 100% Zoom experience. They also saw growth in travel and entertainment and international markets. Expenses were also up as they spent on customer awards, compensation, marketing. But net income was up 3% when you boil that all down. But earnings per share was actually up 9% because there were lower shares outstanding from share buybacks. As you mentioned, they did raise full-year guidance, even in building in those bigger provisions, which are now at $778 million for the third quarter. That was higher than what analysts were expecting. That was around $600 million, the expectations, so a decent amount higher because they're concerned, and that's why the stock is selling off.
Chris Hill: Shares of Netflix up 20% this week after third-quarter profits and revenue came in higher than expected. On top of that, Emily, Netflix's new ad tier starts on November 3rd, and management is projecting a lot of optimism for their ad business.
Emily Flippen: A lot of optimism and not much else there, Chris, because they're saying they're not expecting a material contribution next quarter from the launch of their ad network here. I'd caution against too much optimism for Netflix as a result of this quarter, because the changes that management is proposing didn't show up in the financial results of this quarter. In fact, even if the ad tier, the changes they had to monetization of existing users, if those never were proposed, they would probably still have a strong quarter this quarter.
A lot of what the markets responding to here is actually a growth in the number of subscribers versus a decline in the previous two quarters. It surprised the market. I think they added nearly 2.5 million subscribers in the quarter, which is pretty significant. Most of them non-U.S. or North American customers, which are monetized at a lower rate. But it did show that there's still interest in the content that Netflix is putting out.
What I will say, though, is that growth does need to be really reaccelerated. This quarter showed a 6% increase in revenue growth. Next quarter, they're guiding for around a 1% increase in revenue growth. There's really only two things that Netflix can do to reaffirm that this company can be a growth company and its valuation can reflect that potential future.
One is to get new subscribers on the ad tier. They need to be really careful with this because they don't want existing subscribers to downgrade. That's not a good thing for Netflix. They want to get new customers at a lower price tier that they wouldn't have otherwise achieved.
The second way is through better monetization of existing users, which can be achieved through price increases but seems to be more likely to be achieved through better monetization of people using password-sharing techniques. Finding a way to get those people who aren't paying right now to pay for those services.
Both of those will take a lot of quarters to start to show up in Netflix's financial results. Until we have clarity on those initiatives, I think it's too early to be saying that this is a complete turnaround.
Chris Hill: You mentioned the revenue growth that they're projecting for the next quarter coming in at just 1% higher. This also comes at a time where the management of Netflix was very clear on the most recent call, saying, "Don't focus on our subscribers. We're not going to be providing guidance on that anymore. We want you to focus on our revenue and our profit."
Emily Flippen: Unfortunately, I don't think this is one of the things that management knows. They're probably saying, "Hey, we can't guide for subscribers" because they're aware of the fact of just how saturated they are in the market right now. If the past two quarters have taught them anything, it's that giving poor guidance for subscriber growth is going to hurt the company and its perception. They do want to focus on monetization because that's where they have a bit more control versus the net quarterly subscriber additions.
Chris Hill: Microsoft is one of the biggest companies in the world, but that doesn't mean it's immune to economic challenges. This week, the software giant started laying off some employees, though the total number is reportedly less than 1% of the overall workforce.
I know it's not a significant number, Ron, but it is a bit sobering to see such a profitable business making cuts like this.
Ron Gross: Yeah. It's a lot of people. They have over 200,000 employees, so 1% is still a fair amount of people. But you're right, a lot of people think about Microsoft as immune to economic downturns or as perhaps recession-proof, but no company is truly safe from slowdowns and weaknesses. At the time, CFO Amy Hood said they would slow the rate of hiring in addition to letting about 1% of the workforce go. They said it was part of their regular adjustment at the start of its fiscal year. That might be true. Again, as you mentioned, it is only 1%.
But Microsoft did show some weakness in its latest quarter, slowed down in the Cloud business, declining video game sales, effects of a strong dollar definitely impacted them. Then all the usual suspects, supply chain disruptions in China, effects of Russia invading Ukraine, upheaval in the digital advertising market. A lot of things that showed a little bit of a chink in the armor of Microsoft. But at the time, the company did give an upbeat guidance, saying double-digit percentage increases in operating income when you adjust for currency still was in the works. They report next week, October 25. That's going to be a really interesting report to watch out for.
Chris Hill: It seems weird to say about a company this big and this dominant, but 2023 is shaping up to be an important year for Microsoft. When you think about, as you pointed out, the Cloud revenue coming down and can they reverse that? Also, 2023 is when everyone is expecting a decision on the Activision Blizzard Acquisition and what, if anything, that does to reinvigorate Microsoft's gaming segment.
Ron Gross: Yeah. I mean, Microsoft will remain a major player in cloud behind Amazon. It's just a matter of does cloud in general of slowing growth. Certainly, it will be around for the foreseeable decades. It's just a matter of what kind of growth.
Then they are hanging their head a little bit on the revival of their video game business. It'll be interesting to see if we get any guidance on that next week. We probably, maybe we'll get a sentence or two, but I think they'll focus more on, on cloud and maybe the PC business, and then we'll see where we go from here.
Chris Hill: More earnings after the break, so stay right here. You're listening to Motley Fool Money.
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Welcome back to Motley Fool Money. Chris Hill here with Emily Flippen and Ron Gross. Shares of Tesla down a bit this week after third-quarter revenue came in lower than expected. But Elon Musk says the company has excellent demand for the fourth quarter. Emily, maybe a strong end to the fiscal year.
Emily Flippen: Yeah the quarter was bad, but management's guidance was pretty upbeat. I shouldn't say the quarter was bad. I will say, well, earnings came in at nearly half a billion less than expectations, so a pretty big miss on the top line. They still dramatically beat on the bottom line. Automotive revenue increased 55%, which more than outpaced an operating expense increase of around 30%, which contributed to earnings being pretty significant in the quarter. That alone was strong.
But to your point, Chris, management has been pretty aggressive, I think, with their targets. They continue to say that demand outstrips supply and that they're really confident that all of the production that they're putting out, even with the bottlenecks they're experiencing right now in terms of end-of-quarter deliveries, that those will ease up as the quarter goes on as we come in through the end of 2022 and that the production they're putting out today will match the demand that they're seeing in the market.
What is interesting is that Musk did make a comment on the call as is here par for the course for Elon Musk here. Yes. But his comment got a lot of markets attention. He said that he believes the market cap of Tesla will far exceed the market cap of Apple. In fact, he sees a path for it to be worth than Apple and [Saudi] Aramco, the two largest companies in the world combined. That's more than $4 trillion.
But I will say, I think it's pretty outrageous to think about that today, but a lot of things are outrageous to think about today. There's no denying that an order for Tesla to justify its current valuation, they're going to need to be one of, if not the largest automaker in the world with extremely efficient production. Every day, it seems like they're taking a step in that direction. There's a lot of untold optionality in their data services, so things like self-driving and batteries. If you're a believer in this business, I don't see this quarter as changing course for anyone.
Chris Hill: Mixed third-quarter results for Tractor Supply. Profits were higher than expected, revenue was a bit light, but Tractor Supply raised guidance for the full fiscal year, and that seemed to give the stock a little bit of a boost, Ron.
Ron Gross: Yeah, but you are completely right. A bit of a mixed quarter. Sales were up around 8% and comp-store sales are up almost 6%. Now that's down from 13% last year, but last year was quite strong, coming out of COVID. Sales were driven by comparable average ticket growth of 7%, but we saw a decline in average transaction count by about 1.3%. There's a little bit of a mix. You also had gross margins and operating margins fall a little bit on higher costs, transportation costs. They were able to offset some of that by higher prices. But they're raising compensation, hourly wages, benefits. You did see a little bit of a hit to margins. Earnings per share were helped by a lower tax rate, lower share count, which actually lead to growth of almost 8%, so not bad.
As you mentioned, management did raise guidance, mostly as a result of a recent acquisition that they completed. But they say they continued to gain market share but did delay some store openings due to some external conditions in real estate and construction industries. But overall, I think the company remains pretty solid: 18 times earnings 1.9% dividend yield.
Chris Hill: Shares of Boston Beer Company up more than 12% on Friday. The parent company of Sam Adams beer posted third-quarter profits and revenue that were higher than Wall Street was expecting, and Boston Beer also raised guidance, Emily.
Emily Flippen: It's always funny to me to think about how short our memories are. Because Boston Beer has always been a very lumpy business and it has this cycle to it. They hit on a trend, sales go crazy, and knowing that stops, the market's like, "I'm calling time of death on this business, the stock." That's what they are doing around this time last year. But when the business performance reminds investors that they still have a pulse, it's like the stock slowly gains until it hits on the next big thing, and then it goes crazy again, and we find ourselves in this repeating cycle. That's what we saw over the past year at the move to seltzer.
But I will say even though this quarter was a step in the right direction, growth was not stellar compared to years past. Depletions declined 6%, which again was better than expected, but net revenue rose only around 6% in the quarter. Gross margins have improved, so steps in the right direction. Depletion growth has been helped by brands like Twisted Tea and Hard Mountain Dew, believe it or not, making up for the declines are somewhat making it for the declines in truly. But what is important for this business is just finding out what the next best thing is, which, unfortunately, we don't know what it is today, but I'm a believer in Boston Beer, and I think they'll get there.
Chris Hill: They do have a pretty good track record in terms of their acquisitions of expanding outside of just the traditional beer category.
Emily Flippen: Interestingly enough, we cite Dogfish Head as an example of one of those good acquisitions. They didn't have to write down that acquisition a little bit in this quarter, which is not unusual for a company who makes an acquisition of that size a number of years later. But they're still seeing a decent amount of depletions growth from that brand. Not all bad from Boston Beer.
Chris Hill: Up next, we're going to dip into the Fool Mailbag, so stay right here. You're listening to Motley Fool Money.
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Chris Hill: Welcome back to Motley Fool Money. Chris Hill here with Emily Flippen and Ron Gross. Before we get to the Fool Mailbag, this week, McDonald's announced it is going to test the sale of Krispy Kreme Doughnuts at nine locations in Louisville, Kentucky. Ron, I'm intrigued by this, not because I'm a shareholder of either McDonald's or Krispy Kreme, and not just because I occasionally enjoy a Krispy Kreme doughnut. But this is not the typical test by McDonald's. When they test things, it's usually on their own, it's not that often that they're bringing in a partner like this.
Ron Gross: Yeah, and the way Krispy Kreme works is they'll deliver the doughnuts from local Krispy Kreme bakeries in the area -- and they're doing this with three flavors, by the way, original glazed chocolate ice and raspberry filled. I'm not a fan of the raspberry filled there, but do it you want; it's your business. They'll deliver them from local bakeries, which is all well and good.
They already distribute goods to lots of third-party stores that delivered fresh daily program, they call it DFD, reached more than 5,500 domestic doors in the second quarter, so that's quite a bit. But if this ends up working, I'm not convinced Krispy Kreme would be able to use their DFD system in a wide national rollout. That would add 13,000 doors overnight, more than tripling that business, for Krispy Kreme, which is awesome, but awesome could also create massive problems, and it could really break their system. We'll see how it goes, and then they'll have to plan accordingly so they don't turn a potentially great thing into a troubling one.
Chris Hill: I'm happy to hear you say that, because that was one of my reactions when I saw this story. I thought, they're going to test this, and if it works, does Krispy Kreme have the capacity to go national with McDonald's on this, or is it just going to be a regional thing?
Ron Gross: I think it would have to start out regional. If you go right to national, I think it breaks pretty quickly. Let's see if it's successful. I'm more focused on the adult happy meal right now. I don't know if you've tried it. The little figurines, Grimace. All the guys are there and girls. But don't sleep on McDonald's. It's only down 6% from their 52-week high with a 2.4% dividend yield, so not too shabby.
Chris Hill: Our email address is podcasts@fool.com. That's podcasts@fool.com. We got a question from Ronald, who writes, "I was wondering about your thoughts on medical device companies. With a global ageing population, people are going to need knees and hips replaced. During COVID, I took a look at Stryker, Medtronic, and Zimmer Biomet. I opted out of Johnson and Johnson because it's such a conglomerate and I wanted more pure plays. Are there any medical device companies that you're interested in?"
Thank you for the question, Ronald. Thank you for listening.
Some solid thinking on his part, Emily, because yeah, I mean, J&J does have that medical device division, but if you're thinking just pure play, as strong a business as J&J is, it's not the way to go.
Emily Flippen: It's the medical device and med-tech industry right now, I think it's really intriguing for exactly the reasons that Ronald mentioned. We have an aging population, an increasingly unhealthier population, unfortunately, which does open up opportunity for companies to help treat some of these chronic diseases with new medical devices.
The one that's on my radar right now is actually ResMed the ticker's RMD. For people who are familiar with this business, they help treat respiratory diseases like sleep apnea, which is the majority of their business, which is to say they sell CPAP machines. These are machines that push air through somebody's system while they're sleeping to prevent their throats from closing up.
It's actually a pretty chronic disease that relatively under-diagnosed and not just in the United States but across the world. At least if you have ResMed to believe and if they're able to extend their lead as one of the largest CPAP makers while increasing the diagnoses of sleep apnea, it's easy to see a big opportunity here for the business.
I will say, I have questions about the CPAP industry, but right now, is the first step in line for treatment of sleep apnea, the alternatives on the market right now are hard palate surgery, not a first line of defense, so they're affordable, accessible, and reimbursable by insurance.
Chris Hill: To that point, Emily, I know a couple of people who have sleep apnea have these machines. To what you were saying, the diagnosis really is the crucial part there. Is ResMed involved in helping to get people to the point where they are going in for a diagnosis? Because otherwise, you're just relying on, if you sleep in the same bed as someone else, you're relying on them.
Ron Gross: Did my wife call you, Chris?
Chris Hill: I'm not saying that, but are they involved in the diagnosis front as well?
Emily Flippen: This is a good question and one where I get a little bit questionable about the entire industry. The majority of people who are diagnosed with sleep apnea experience other symptoms, most the time, sleepiness during the day. They're not sleeping well, so they go to the doctor and they say, hey, I'm having these symptoms. What doctors will often do is identify the signs of sleep apnea and then ask that they go to a sleep clinic. This is a place where they're staying overnight and having experts watch their blood oxygen and other critical metrics over time to see if they have sleep apnea.
Now, ResMed and other CPAP producers do help fund these sleep clinics, so this is where it gets a little bit questionable, so you can say they have a hand in helping increase the number of diagnoses.
Ron Gross: I may or may not have done one of these sleep tests before, but I was able to do it at home, which was not as controlled, but it was certainly better than having to go to a clinic.
Emily Flippen: If I can expand on that, 90% of ResMed's revenue comes from CPAP machines and the things that need to be replaced in the machine like masks, filters, tubes, that sort of thing. But another 10% of their revenue actually comes from software that people in clinics will use to do remote testing of things like sleep apnea, and that's an increasing part of their business.
Chris Hill: Never ask your barber if you need a haircut. I hear what you're saying.
Emily Flippen: Exactly.
Chris Hill: Question from Cole, who writes, "Can the Motley Fool Money team recommend some investing-related books? I trust the team's preferences."
I appreciate the confidence, Cole. Thank you for that. Ron, what do you got?
Ron Gross: We could do a whole show on great investing books. I won't do that, but I will mention a bunch. I would start off with the essays of Warren Buffett. Just give yourself some grounding in the Oracle of Omaha's sage words. It's really important to go back and read what he's written over time. Then I would move on to what are called the Little Books, which are literally Little Books on a wide variety of topics. I especially like The Little Book of Common Sense Investing, The Little Book That Beats the Market, and The Little Book on Valuation.
Few more, One Up on Wall Street by Peter Lynch is a classic. It'll set you up for a lifetime investing. Intelligent Investor, a little more tricky to get through, but that's the bible for value investors, I think you should flip through that.
Finally, a plug for The Psychology of Money written by Fool contributor Morgan Housel, with the audiobook narrated by our very own Mr. Chris Hill.
Chris Hill: You didn't have to say that, but I appreciate it.
Ron Gross: But I think it's a great book.
Chris Hill: I'm going to slip you 20 bucks after the show. But yes, having read it several times myself, I agree. Emily, what do you think?
Emily Flippen: Well, I like my books big, no, I'm just joking. But the one that's been on my radar recently is Ken Fisher's of Fisher Investments, the Markets Don't Forget (But People Do), the title of one of his books. It really highlights just some of the really dangerous tendencies of retail investors to believe that this time is different. I think it's topical right now because with the global crisis, we're having crazy inflation, hiking interest rates, the pandemic. It's easy to think, well, we're not going to come out of this, or if we do come out of this, things are going to be different. This time in the market is different than all the other times in the past. That mentality can lead investors to make big mistakes, like selling when the market's down, failing to buy when the market starts increasing. It's a testament to long-term investing, so if you're feeling yourself maybe a bit more afraid because of whatever is going on around us in the world right now, I definitely recommend it.
Chris Hill: This past Monday, I had the pleasure of speaking to the Boston College Investment Club, a very impressive group of young investors. I want to say a quick thanks to the student leaders of the club, Jack, Nick, and Annabel. They were great to work with.
This was a question I got, and I mentioned The Big Short by Michael Lewis. Because the movie is great, I love the movie. Michael Lewis is such a great writer. And The Big Short, I think for investors, does such a wonderful job of illustrating both how pervasive groupthink is on Wall Street and how this interesting group of investors cut through the group thing. We're able to see the crash that was coming in the housing market.
One more question from Dana in Massachusetts who writes, "What is something you are more bullish on now than you used to be?"
Emily, I'll start with you.
Emily Flippen: Mine is actually a company and that company is Sweet Green, the ticker is SG. I talked about it on the show before, but when this company went public, I was extremely skeptical of it, bearish, I can say, on Sweet Green because I didn't believe in the concept of $15 salads and their ability to succeed and these lofty goals of having more than 1,000 stores, mainly suburban locations. I just thought, this isn't a chicken burrito, this can't succeed. And while the stock has certainly not succeeded and they've had a medley of issues since going public.
One of the things that has surprised me that I'd become increasingly bullish on is the performance of their suburban locations, stores. They're actually outperforming their urban locations at a lot of critical metrics, it really surprised me. I've clearly underestimated the health consciousness of the suburban markets, and so for that, I apologize. But I do think if they can even get to a fraction of the expansion that they're expecting they could get, we could be looking potentially, and I say this cautiously, at a tiny little Chipotle here.
Ron Gross: As someone who had Sweet Green twice this week, I would wholeheartedly agree. They put out a good product, and that's the start for any good business.
Emily Flippen: Your pocketbooks might believe, though.
Ron Gross: It's true.
Chris Hill: Ron, what about you? What's something you're more bullish on now than you used to be?
Ron Gross: I have become more bullish on financials in general and individual financials in particular. Listeners would know, in the past, I've said the only way I play financials is through ETFs, like FNCL, for example, I've mentioned that before on the show. But lately, because of rising interest rates and my desire to add some solid dividend stocks to my portfolio, I've dipped my toe into some individual stocks like JPMorgan and Blackstone. I even going to be careful because I'm not smart enough to really understand what some of those balance sheets could be hiding, especially for some of those larger banks. Community banks are a little bit easier to understand. So I'm going to be careful but I've started to widen out my desire to put individual financial stocks into my portfolio.
Chris Hill: After the break, we've got two radar stocks for your watch list and one new beverage for pouring down the drain. Stay right here. You're listening to Motley Fool Money.
[music]
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 with Emily Flippen and Ron Gross.
Ever since Starbucks introduced the pumpkin spice latte nearly 20 years ago, pumpkin spice has only grown in popularity, showing up in everything from breakfast cereal to seltzer. With increased spice comes increased prices. A pumpkin spice latte at Starbucks costs 18% more than a regular latte. But Emily, that is nothing compared to the markups that are happening at Trader Joe's, where pumpkin spice hummus costs 50% more than regular hummus, and tiny pretzels, the markup is 160%. I love Trader Joe's, but holy cow, that's borderline price gouging.
Emily Flippen: Hey, look, turkey also costs a lot more over Thanksgiving. But don't rob me of my little luxuries. Don't make me feel bad about the fact that I'm spending 50% more on pumpkin spice hummus. This is the price that we pay for the little luxuries. And this is the best part of my year. I would like to enjoy it guilt-free. I don't need to be reminded about the cost of my pocketbook, Chris. I don't appreciate this story at all.
Ron Gross: Pumpkin spice has never been something that appealed to me. I get that I'm in the minority here because it seems to be taking the world by storm each year. Starbucks sold more than 500 million pumpkin-flavored lattes since they introduced it. Yes, I'm in the minority here, but I'm still going to stick to my guns and say I just don't get it.
Chris Hill: I'm not looking to guilt-trip you for your indulgences, Emily. But to that point, this is why we see these limited-edition products. They can come in for a short amount of time. They can charge a little more, it gives a little bit of a boost. This is why we see all these tests, right?
Emily Flippen: Certainly. Look, if you can get a little extra penny out of your consumers, then you definitely should do that. I'll tell you what, consumers love it for the most part. There are pumpkin spice hauls from Trader Joe's on a pretty routine basis. It's working.
Chris Hill: When it comes to soft drink companies, the best-performing stock over the past year is not Pepsi or Coca-Cola. It's Keurig Dr Pepper. Maybe that success has led to hubris, because this week, Dr Pepper unveiled a new-limited edition soft drink: Dr Pepper Bourbon-Flavored Fansville Reserve. It is a promotion for the company's rewards program called Pepper Perks.
I get what they're doing in terms of trying to get more people into their rewards program, Ron. But I am still amazed that they decided to develop a nonalcoholic bourbon drink.
Ron Gross: "Flavor that evokes sweet, savory, and woody notes with subtle hints of cherry vanilla, chocolate, and caramel."
I don't buy it for a second. I've tasted these nonalcoholic beverages before. They just don't do it. Maybe it's OK if you mix it with Dr Pepper, which is great, and Diet Dr Pepper is great, too.
This seems to be just playful, and it will be short-lived for a small amount of people who have to log in and enrolling their Perks Program, like you said, you have to scratch it off to win a can and some prizes. It's playful, but I don't think it's going to last.
Chris Hill: Emily, if I'm a Keurig Dr Pepper shareholder, I think my question is, This is the idea that won? You had a pitch contest, you got a group of people together say, we need to limited-edition thing, and this is what they came up with?
Emily Flippen: If I'm a Keurig Dr Pepper shareholder, the bar is low for me, because here's my thought. This is, as you mentioned, a poorly veiled attempt to get people into their Pepper Perks program. Here's what I did for our listeners. I signed up for you. I'll tell you about this experience.
Because let's say that you're interested in having this Bourbon Flavor Dr Pepper of which I guess if I was given it, I would have a sip. I signed up, which by the way, I did on my computer here in the office, signed right in need my phone, email address, name put all that stuff in, and then I went in, signed off, scratched off my ticket. I didn't win.
But I was curious. What if I go by myself at Dr Pepper? Can I get some loyalty points for this? I hiked my butt down to our local 7-Eleven, purchased myself a Dr Pepper, and promptly left. Then I realized halfway on the walk back that I forgot my receipt, which I need to prove my purchase of my Dr Pepper. I went back to 7-Eleven. They kindly printed me off a copy of my receipt. I came back, I uploaded it, and I was told "Your perks points will be reviewed in the following day."
I wait for my perks point to come in. I look at what I can redeem them for. And I'll tell you what, this has to be the worst loyalty program I have ever seen. The rewards -- most of them, by the way, are completely sold out. You can't redeem for anything of any tangible value. The only thing that looked attractive was for 60 points or six Dr Peppers, you could award a $10 Uber Eats Gift Card, but you can only reward it once.
There you go. Don't waste your time.
Chris Hill: Wow.
Let's go to our man behind the glass, Dan Boyd. Dan, before we get to radar stocks, any thoughts on either of these stories?
Dan Boyd: I have a problem with Dr Pepper marketing, Chris. The whole Fansville idea where Dr Pepper's some drink you drink at a tailgate is completely ridiculous. I've been to many, many tailgates in my life, Chris, and we're not drinking soda if you understand what I'm saying.
Chris Hill: I absolutely do.
Let's get to the stocks on our radar real quick. Ron Gross, you're up first. What are you looking at this week?
Ron Gross: As I mentioned earlier, a stock I recently bought a little of is Blackstone, BX, the world's leading investment manager focusing on alternative investments like real estate, private equity, and credit and insurance products. They've got a great business model that has reliable fee revenue. They have performance-based incentives that can dramatically increase profits. They pay a regular dividend that does fluctuate year after year. They recently announced that they were going to cut it somewhat, but it still stands at a healthy 4.3%. For those that are looking to add some dividend exposure to their portfolio, one that will do well in good times and bad times, I think, I would take a look at Blackstone.
Chris Hill: Dan, question about Blackstone?
Dan Boyd: What part of this is "old-economy Ron," here? Ron, I'm confused.
Ron Gross: It's not necessarily. Its early career ran as well, being that I used to read in the hedge fund business and like these businesses quite a bit.
Chris Hill: Emily Flippen, what are you looking at this week?
Emily Flippen: I'm looking at ASML. I think expectations were incredibly low heading into their third-quarter earnings report, ASML sells these high-end lithography machines to chipmakers, and one of their largest customers is Taiwan Semi.
They actually had announced their intention to cut capital expenditures by around 10% amid awakening chip market, which lowered expectations for ASMLs guidance. But ASML not only had a stellar quarter, but it showed a growing backlog of demand, highlighting the demand for their EUV extreme ultraviolet lithography machines. Right now, ASML machines are still outstripping supply in terms of, are there some demand is outstripping supply. Management expects very little impact from the ban on China.
Chris Hill: Dan, a question about ASML?
Dan Boyd: Seems like a wonderful company that I do not understand at all.
Emily Flippen: You don't need to understand it there, Dan.
Chris Hill: What do you want to add to your watch list, Dan?
Dan Boyd: You know what? I'm going to go with ASML. I'm just sort of a deer in the headlights looking at this company.
Emily Flippen: Perfect.
Chris Hill: Emily Flippen, Ron Gross, thanks for being here. That's going to do it for this week's Motley Fool Money radio show. The show's mixed by Dan Boyd. I'm Chris Hill. We'll see you next time.
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. American Express is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase 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. Chris Hill has positions in Activision Blizzard, Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Chipotle Mexican Grill, JPMorgan Chase, Johnson & Johnson, Microsoft, PepsiCo Inc., Pinterest, Starbucks, Taiwan Semiconductor Manufacturing, and The TJX Companies. Dan Boyd has positions in Activision Blizzard, Amazon, and Chipotle Mexican Grill. Emily Flippen has positions in Pinterest. Ron Gross has positions in Amazon, Apple, Blackstone Inc., Fidelity MSCI Financials Index ETF, JPMorgan Chase, Meta Platforms, Inc., Microsoft, Starbucks, Taiwan Semiconductor Manufacturing, and The TJX Companies. The Motley Fool has positions in and recommends ASML Holding, Activision Blizzard, Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Blackstone Inc., Chipotle Mexican Grill, JPMorgan Chase, Meta Platforms, Inc., Microsoft, Netflix, Pinterest, ResMed Inc., Starbucks, Taiwan Semiconductor Manufacturing, and Tesla. The Motley Fool recommends Boston Beer, Deere & Company, Johnson & Johnson, ResMed, The TJX Companies, and Tractor Supply and recommends the following options: long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $92.50 puts on Starbucks, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In this podcast, Motley Fool senior analysts Emily Flippen and Ron Gross discuss topics including: Pinterest, Meta Platforms, and Alphabet getting dragged down by Snap's bad news American Express shares falling despite increased full-year guidance Boston Beer's strong third-quarter report The latest from Microsoft, Netflix, Tesla, and Tractor Supply They also dip into the Motley Fool Mailbag and discuss: Medical device pure plays Investing books they recommend Surprising economics of pumpkin spice The latest from McDonald's and Keurig Dr Pepper Stocks they're more bullish on Two stocks on their radar: ASML Holding and Blackstone To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. I talked about it on the show before, but when this company went public, I was extremely skeptical of it, bearish, I can say, on Sweet Green because I didn't believe in the concept of $15 salads and their ability to succeed and these lofty goals of having more than 1,000 stores, mainly suburban locations. Ron Gross has positions in Amazon, Apple, Blackstone Inc., Fidelity MSCI Financials Index ETF, JPMorgan Chase, Meta Platforms, Inc., Microsoft, Starbucks, Taiwan Semiconductor Manufacturing, and The TJX Companies.
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In this podcast, Motley Fool senior analysts Emily Flippen and Ron Gross discuss topics including: Pinterest, Meta Platforms, and Alphabet getting dragged down by Snap's bad news American Express shares falling despite increased full-year guidance Boston Beer's strong third-quarter report The latest from Microsoft, Netflix, Tesla, and Tractor Supply They also dip into the Motley Fool Mailbag and discuss: Medical device pure plays Investing books they recommend Surprising economics of pumpkin spice The latest from McDonald's and Keurig Dr Pepper Stocks they're more bullish on Two stocks on their radar: ASML Holding and Blackstone To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. The Motley Fool has positions in and recommends ASML Holding, Activision Blizzard, Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Blackstone Inc., Chipotle Mexican Grill, JPMorgan Chase, Meta Platforms, Inc., Microsoft, Netflix, Pinterest, ResMed Inc., Starbucks, Taiwan Semiconductor Manufacturing, and Tesla. The Motley Fool recommends Boston Beer, Deere & Company, Johnson & Johnson, ResMed, The TJX Companies, and Tractor Supply and recommends the following options: long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $92.50 puts on Starbucks, and short March 2023 $130 calls on Apple.
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Chris Hill here with Emily Flippen and Ron Gross. In this podcast, Motley Fool senior analysts Emily Flippen and Ron Gross discuss topics including: Pinterest, Meta Platforms, and Alphabet getting dragged down by Snap's bad news American Express shares falling despite increased full-year guidance Boston Beer's strong third-quarter report The latest from Microsoft, Netflix, Tesla, and Tractor Supply They also dip into the Motley Fool Mailbag and discuss: Medical device pure plays Investing books they recommend Surprising economics of pumpkin spice The latest from McDonald's and Keurig Dr Pepper Stocks they're more bullish on Two stocks on their radar: ASML Holding and Blackstone To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center.
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Chris Hill here with Emily Flippen and Ron Gross. Chris Hill: You didn't have to say that, but I appreciate it.
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Netflix Stops Giving Subscriber Estimates. Love It.
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https://www.nasdaq.com/articles/netflix-stops-giving-subscriber-estimates.-love-it.
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In this podcast, Motley Fool senior analyst Tim Beyers talks about Netflix topics, including:
Third-quarter profits, revenue, and subscriber growth coming in higher than expected.
Optimism around Netflix's new ad platform.
Why he believes the stock is fairly valued (with room to run).
Motley Fool analysts Nick Sciple and Jim Gillies discuss the business of World Wrestling Entertainment and how the company may be preparing itself to be acquired.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on October 19, 2022.
Chris Hill: Don't call it a comeback. Netflix has been here for years. Motley Fool Money starts now. I'm Chris Hill. Joining me today, Motley Fool Senior Analyst Tim Beyers. Thanks for being here.
Tim Beyers: Thanks for having me, Chris. Fully caffeinated, ready to go.
Chris Hill: Likewise, which is good because Netflix is on the docket. The third-quarter profits and revenue were higher than expected. They added 2.4 million net subscribers, which was more than double what they had guided for. I'm not saying they were sandbagging. Let's just politely say that they underpromised and overdelivered and shares of Netflix are up 15% this morning.
Tim Beyers: You could say they were sandbagging. You can say it. You could say let's go ahead and say it because that's a huge difference. They did say 1 million paid net adds coming in to this quarter. They end up at 2.4 million instead. Materially, all of that, Chris, comes from Asia-Pacific and EMEA. In the Asia-Pacific region, 1.4 million paid memberships, that was versus 2.2 million in last year's Q3, and 0.6 million versus 1.8 million in the year-ago quarter. But that's essentially it. Only 0.1 million, and so 100,000, paid net adds here in US and Canada, and that's a penetrated market.
We expect that this is an international story, and it's an international story that's getting more and more rich. One more point on this, Chris, before we move to the next question, this is why the foreign exchange was such a drag on results. So total revenue up six percent year-over-year in the quarter. That would have been 13 percent, if you take out the effect of foreign exchange. Our buying power overseas because of the strong dollar is good. I guess that's great if you're on vacation in Bora Bora, Chris, but neither of us is on vacation in Bora Bora.
Chris Hill: Something tells me we're going to be hearing this repeatedly throughout earnings season. Something we're not going to be hearing repeatedly from Netflix, however, is guidance on subscribers because they came out this quarter and said, "We're not going to be providing guidance on subs anymore and made it very clear we want shareholders and we want Wall Street to focus on our revenue and our profit." I get why they're doing that. For a long time, it made sense for them to stress their subscriber growth. But at this point, look, all is fair in love and business, and this is fair.
Tim Beyers: That's completely fair. I love it. I don't get anybody who sees this as a red flag. I love it because the business has changed, and the advertising component is going to be massive here, and because it's going to be massive, it makes more sense to report on revenue, like report on the subscriber additions, absolutely, and they're going to continue doing that. They're just going to keep sharing the same metrics they have always shared. They're just not going to guide to the members anymore, and here's the reason you don't do that, Chris, because once you start introducing the advertising tier, if you are going to keep guiding to memberships, you're going to have to guide to not only paid subscription net adds but also advertising, ad tier, net ads. How do you differentiate that? How do you forecast that? I think the answer is you don't know because you really can't tell.
If somebody comes in, and they're an ad tier subscriber, do you care if they're an ad tier subscriber? You could say, yes, if there is a material difference between an ad-tier subscriber and a subscription tier subscriber. There were some interesting comments during the call yesterday that I think reassures me, Chris, that the ad tier subscriber is going to be very much like the subscription tier subscriber. We can go deeper on this, but here's the headline of what they said. "We expect that the ad tier is going to be revenue-neutral or slightly accretive, both on a revenue basis and longer term on an incremental profit basis." In other words, the $6.99 add tier is going to be essentially the same in terms of revenue and profit contribution as the basic subscription tier at $9.99. So you're going to get roughly three dollars of revenue from ads, at least, initially. That's what Netflix is saying. I find that pretty reassuring, Chris.
Chris Hill: I think so. They said they're very optimistic about the ad business. You're right, it makes sense that this is one more reason to not guide for subs anymore because there's a whole piece of this that Netflix doesn't know how it's going to go. They can be optimistic, they are and they should be, but they don't know how it's going to go, and they won't know until they've got a few months under their belt of what it's like, so it all starts on Nov. 3. I also think this is just going to be fascinating to watch for Disney as well when Disney gets ready to roll out its ad-supported tier. This is one of those things where you are, depending on your level of interest, as an investor, you can start to look at things like The Wall Street Journal's daily column on marketing. We're going to start to hear things from advertisers, from media buyers, about what their experience is like on these for them, brand new platforms, what insights they get, what data analytics they get, and it's not all going to be amazing.
Tim Beyers: No, it's not all going to be amazing, and here's what's interesting. Netflix is even pre-emptive this. In fact, I think you could almost say, should we celebrate or be scared of salty Netflix because Netflix is getting salty. They did say literally in the top of the shareholder letter, this was bullet No. 5. "Our competitors are investing heavily to drive subscribers and engagement." They believe operating losses from those competitors are, you can't see me, so I'm using air quotes here, "well over 10 billion." In other words, without saying it, "Our competitors are well behind us. You think we have a premium price? Get ready. They are going to have to raise prices. They are going to make some sacrifices because we're a profitable business; they aren't. They're going to have to come to us. We don't have to go to them." Salty Netflix. I like it, Chris.
Chris Hill: I'm not a shareholder, and I absolutely love salty Netflix. All things being equal, I would always rather that companies take that tack rather than play the victim card.
Tim Beyers: Absolutely.
Chris Hill: I'm a fan of salty Netflix. Where do you think this stock is right now in terms of its attractiveness because it's up 15 percent today. Year-to-date, it is still down more than 50 percent.
Tim Beyers: It's very interesting. There are multiple ways to look at this. I don't want to call it anything more than fairly valued right now, Chris, because there are some assumptions baked in here. This is a company that does generate cash flow, but it does have significant capital investments still to make. Please don't forget that they do make $17 billion of content investments every year, and they are committing to that over the very long term. That does not go away. But they are free cash-flow generator, and I think they're in the range, at least right now, of generating a billion dollars in free cash flow in any given year, and they do see that rising over time as they get the benefits of the ad tier. If I was going to make a bet on Netflix, the thesis I would bet around here, Chris, is that Netflix has a big lead and potentially an enormous competitive advantage around global distribution.
Disney is still a company that has global distribution with global partners, and they have not decided to break the hearts of those global partners and say, look, we are going to take over the business of owning those customer relationships in Korea, China, Japan, Brazil, and so forth. They haven't taken over that yet. They've relied on those local distribution partners. In this case, those local distribution partners do dictate the advertising market in those areas. Netflix doesn't have that problem. Netflix has a global advertising platform and a global audience. So when they go out with an ad tier in November in 12 markets, they're going to be able to test advertising that is accretive to them in those markets. I think the global nature of Netflix's business, it's shocking to me that it's still underappreciated. Chris, I still think it's underappreciated. As long as that remains true, there is the possibility that this stock has a lot more.
Chris Hill: Tim Beyers, always great talking to you. Thanks for being here.
Tim Beyers: Thanks, Chris.
Chris Hill: There are thousands of publicly traded companies, but only one of them has a top 10 channel on YouTube, and that's World Wrestling Entertainment. WWE has more than 90 million subscribers on YouTube, and the company may be getting ready to be acquired. To give the smackdown on this content business, with Motley Fool Canada's Jim Gillies, here's Nick Sciple.
Nick Sciple: The S&P 500 down over 20 percent this year officially in bear market territory. It's not often you'll find a stock trading at its three-year high. In the entire history of the stock market, I don't think you'll find many businesses doing that three months after their Chairman, CEO, and controlling shareholder resigns due to a sex scandal. Nevertheless, that's the story we find ourselves in with World Wrestling Entertainment today, more commonly known as the WWE. Before we get into Vince McMahon's resignation though, let's set the stage on the WWE investment thesis. WWE has been a recommendation in Hidden Gems Canada since May 2021 and in Stock Advisor Canada since March of this year, well before this Vince McMahon investigation and resignation took place. Jim, can you give our listeners a quick overview of the investment thesis before this latest controversy?
Jim Gillies: Sure. We weren't banking on Vince McMahon exiting due to sex scandal, although those of us who follow the industry weren't entirely surprised. The basic thesis is that this is no longer a live events company, and people didn't really notice. The background, Vince McMahon came out of what was called the territory systems of the wrestling industry through the '80s and '90s. Those of you who remember terms like Hulkamania or the Attitude Era, those were different times when wrestling got hot. But throughout all of this is the overarching point through all this, Vince McMahon rolled up an industry that no one else realized that they wanted. It was always very territorial. He had a territory in the Upstate New York, he had the Carolinas, he had Florida, he had Portland, Texas, Calgary of all places, but those operate fiefdoms, and wrestlers, independent contractors would move around.
Vince McMahon rolled up, went national, has now gone international, and in the words of a colleague, a friend of ours, he took over a mountain that no one else knew they wanted. So they now have basically control of this industry for all intents and purposes. There are other competitors, but they basically, they're the big dog. Essentially what they have done as well is this is no longer a live event, so people are, "I'm not going to go to a wrestling show. It's too expensive." No, this is actually a content provider, and in a streaming world where content is king, and expensive, and going up, and Nick, you know the numbers better than I do, so I'll let you list them all. But just think about some of the deals that you've heard, Fools, for Thursday Night Football, for baseball, for various hockey or MLB or UFC rights, WWE is benefiting from that very high-inflation environment, and it looks like they're going to continue. This is like a content creator that happens to run live shows. It's not a live touring exhibit anymore.
Nick Sciple: Absolutely. Similar to other sports leagues, you think about the NFL, people go to NFL games with the main driver of NFL revenue is media rights, and that is no different for the WWE. The reason those media rights are paid such a high premium for is because these are events that audiences show up for, and the WWE audience is very large. If you look at audience measurement data by YouGov, WWE has more fans in the 18-34 demographic than the NFL, MLB, NBA, UFC, NHL, and NASCAR when you measure it across all platforms. That's not just TV. YouTube, they're the largest sports YouTube in the world with over 90 million followers, largest sports TikTok in the world. That's transitioned to really significant pay-ups for WWE rights in the past. The last time we're on SmackDown, rights were renegotiated with NBC and with Fox. We saw a 3.5x increase in rights fees. Those deals are going to come due in 2024, likely to see a big increase there as well.
Also what WWE has done over the past several years is, in the mid 2010s, WWE launched WWE Network where you could watch the traditional pay-per-view events, WrestleMania, SummerSlam, those things. In 2021, they licensed that platform to Peacock in the U.S. for a rumored billion-dollar deal over five years, and they've been running that same playbook across the world. So Peacock in the U.S., they partnered with Hotstar in Indonesia, Foxtel in Australia, really licensing this content out across the world to streamers that are looking to gain scale and capture audiences, which as we mentioned, WWE has, and we expect these rights deals to continue going up in the future as more and more folks enter the streaming competition. We've seen Amazon get involved in sports rights deals. Apple has been getting involved potentially in NFL Sunday Ticket.
This rising tide is going to lift lots of boats in these sports media landscape, including WWE. That's the thesis. With that thesis in mind, let's talk about Vince McMahon, the scandal, what's going on with the company. This summer, WWE Board of Directors initiated an investigation. That investigation uncovered $19.6 million in payments that "were not appropriately recorded as expenses between the years 2006 and 2022." In particular, the most troubling of these is about $15 million of these payments were allegedly paid to women for their silence about affairs and other misconduct. As a result of that, on July 22nd, Vince McMahon retired as Chairman and CEO of the WWE, although, he remains it's controlling shareholder. You hear that this guy who has been responsible for building the business for over 30 years, a guy who has been the creative captain of the ship, you would expect the stock to maybe be down a little bit. It's up 14 percent since that announcement. Why do you think that is, Jim?
Jim Gillies: Twofold. First, whenever we talk about Vince McMahon, I do like to share a little piece of investing trivia. WWE came public in 1999 one day away from another company called Martha Stewart Living Omnimedia. If you were to have picked on that week, if you were to pick which CEO would have served jail time, I'm willing to bet that not one person would have picked Martha Stewart. Everyone would have picked Vince McMahon because he is a bit of a controversial figure. But I think the reason why the stock has held up as well as it has is twofold. One, they actually have a pretty good bench strength. In fact, I can make the argument that the product that you see on television and, by extension, those premium live events, had gotten a little bit stale. Vince McMahon is in his late 70s.
He may not be plugged into what audiences want today, but fortunately, they have some pretty good bench strength, not the least of which includes his daughter, Stephanie McMahon, who is, I guess, current still, but that's not her main role, Chief Brand Officer. Her husband, Paul Levesque, aka Triple H, who returned to the company. He had been off for some heart-related ailments. He came back and took over as basically head of Talent Relations, Chief Content Officer, I believe his title now is, the day that Vince retired. Actually, I think they knew something was coming because, Stephanie, she had taken a bit of a sabbatical to spend more time with her family and her ailing husband, and it just happened to coincide with the scandal breaking. I think they were setting up to have them come back in, if things went the way that they turned out they have. I actually think there's a lot of bench strength here with people who understand the industry and are actually more connected with what today's audiences want. So that's Number 1.
The second thing is, I think this company is going to get bought, and so I think that there's a number of signs, and we can discuss those. But there are a number of signs saying, OK, yes, $20 million roughly in improperly recorded expenses. That is not great. But it's, frankly, not a lot for a company that did 1.23 billion dollars in revenue over the past four quarters, that has done almost 380 million in what they call OIBDA, that's operating income before depreciation and amortization, a weird version of EBITDA. It sounds bad. It is bad on an individual level, but from a business perspective, I think clearing Vince McMahon somewhat out of touch and perhaps an impediment to a sale because he, up right up to his retirement, was very hands-on by all accounts. I think this frees up the potential for a sale as well as some of the things we can talk about as well.
Nick Sciple: You talk about that venture of wrestling talent, Stephanie McMahon, Triple H, have both been in this business 25-plus years, and if you look at the ratings on, particularly, Monday Night Raw set two-year highs in August in the aftermath of McMahon leaving and Triple H taking on the creative duties at the company. Another thing also worth mentioning, so we mentioned Stephanie McMahon and Triple H, as being the wrestling side of the company, running the day-to-day operations. You also have a really strong executive in Nick Khan, who has now stepped into the co-CEO role as WWE's Chief Negotiator. Before he joined WWE, he is actually WWE's media agent helping negotiate their sports rights deals, and he's still there doing that today, helping to sign some of those deals I talked about, whether it's with Peacock or some of these international partners. You have a strong bench of wrestling talent to keep the content running and then the business folks making these deals to sell the content. Still a very strong team there. Jim, you mentioned some signs that you think that WWE might be getting ready to get acquired. What are you looking at?
Jim Gillies: First of all, there's just the general partnerships that they have. You talk about SmackDown and RAW, which are their two live programs and the ultimate Tuesday night program in NXT, which is more of the minor leagues, the junior hockey or college basketball of wrestling, if you will, where people go to learn and hone their craft. But SmackDown airs on FOX. Put that over here for now. Practically everything else, you've mentioned the Peacock network, RAW is on USA Network, NXT is on USA Network as well. There's one company that owns all of those things. That's NBC Comcast. They had a very long-term relationship with WWE. Again, as you mentioned, content is king. Streamers are looking for content and content that can't be replicated or not easily replicated, especially if live, it's not easily replicated. I think there's a lot of sense there that NBC is a natural acquirer, but it wouldn't shock me if someone like a Disney or even a wild card in Amazon were to make a bid and work this out. But there's a couple of things.
I know you've got one signal. So I'm not going to steal your signal, but I'm going to give you one. It's something that I watch for. I didn't notice this until today as we were prepping for this show, actually, but there's a filing that you'll find on the SEC websites for companies. It's an 8-K. It's basically a press release, and it's called an 8-K. But every time a company releases its earnings, they'll file an 8-K. Anytime a company releases material news, they'll file an 8-K. There are little subheadings that you can see that will talk about various things. But if it's an earnings release, it will be subheading 2.02, 9.02. There is something when it comes with call to executive movements, so a new director or an executive leaves. That subheading is a 5.02. I'm always interested to see an 8-K filed just with a 5.02. I always make a point of reading those, and I go in, I hit "Control F", and I look for change of control because it's a tell. Companies contemplate. It's not a perfect tell, but it's a tell that's been accurate more often than not, in my experience. You see a 5.02, and you go in and look at change of control provisions. Companies preparing or, at least, contemplating selling themselves want to go in and make sure their executives are well taken care of in the event of a change of control.
This happened when Oakley got bought by Luxottica, and within three months later, they got bought. This happened when Nokia bought NavTech. That was very quick, if memory serves there. This happened when Monsanto got bought by Bayer, but a year and a half before they got bought by Bayer or got announced that Bayer was buying them, they went and changed this little 5.02. It just so happens in September of this year, following the ascension of Stephanie McMahon, following ascension of Paul Levesque, aka Triple H, and Nick Khan, everybody got extraordinarily well taken care of in a change of control. Everyone got their salaries bumped because they've gone from a lower-level executive now they are co-CEOs in the case of Khan and Steph McMahon. Everyone's got real nice sweetheart packages for two years following a change of control. This is textbook for companies contemplating acquisition. They want to make sure that people, the incumbents, who are steering the ship do very well. So that's the signal that I felt going. I didn't notice that before. Very intrigued now, Nick, you get another one?
Nick Sciple: Certainly. Also in September, you saw some changes in the board of directors and some of those board members that have brought in have extensive M&A experience. Why would you want to bring in M&A expertise? Maybe you're probably looking to either sell yourself or go buy another company. Certainly next year we would expect if they follow similar patterns to what they did in the last rights renegotiation runs back down, and we'd expect those new rights deals to start coming down next summer. To the extent, a company might want to acquire the business instead of signing a new five-year rights deal, that might be a time for that to take place. But even if, what I emphasize, you don't need an acquisition to take place for this company to work. If you see another three-and-a-half X increase in RAW and SmackDown rights deals like you saw, the last cycle, then the stock is going to do very well. That's generally the thesis with the company today. Maybe to close off here, Jim, we've said that this controlling shareholder of the company has left the business, resigned. To what extent has that changed your thesis around WWE today?
Jim Gillies: The only thing it's done is that it is increased my belief that this company is going to be acquired, probably sooner rather than later. It would not shock me that Vince might want to get some of his money out, and him and the family have about, I think, it's about 87 percent voting control. He has over 80 personally. So if he decides he wants to sell, there's not a lot anyone's going to be able to do to dissuade him. But I think Vince McMahon, over his history, I followed this industry for a long time, Vince McMahon likes money. I think there's no disputing that. I think Vince McMahon will absolutely cut himself the best possible deal for him and his family and his legacy.
We know he's had little sidebars he's tried to do in the past. WWE's got a movie studio with middling success. He's tried to run a football league. He started the World Bodybuilding Federation back in the 1990s. I think he always, I think, needs to get his fingers into something. I think he's very driven. Boy, if you had a couple of billion dollars upon sale of WWE, he could have a little bit of fun in his twilight years, shall we say. With him, I think making sure his family is taken care of, which they've now done with the change of control, at least, I think Vince will be very amenable to hearing offers. They are constructing a new headquarters building right now. Once that's done, I think that will probably be hanging out, the "For Sale".
Chris Hill: As always, people on the program may have interest in the stocks they talk about. The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. I'm Chris Hill. Thanks for listening. We'll see you tomorrow.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Chris Hill has positions in Amazon, Apple, and Walt Disney. Jim Gillies has positions in Amazon, Apple, and World Wrestling Entertainment. Nick Sciple has positions in World Wrestling Entertainment. Tim Beyers has positions in Amazon, Apple, Netflix, and Walt Disney. The Motley Fool has positions in and recommends Amazon, Apple, Netflix, and Walt Disney. The Motley Fool recommends Comcast and World Wrestling Entertainment 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.
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In this podcast, Motley Fool senior analyst Tim Beyers talks about Netflix topics, including: Third-quarter profits, revenue, and subscriber growth coming in higher than expected. So Peacock in the U.S., they partnered with Hotstar in Indonesia, Foxtel in Australia, really licensing this content out across the world to streamers that are looking to gain scale and capture audiences, which as we mentioned, WWE has, and we expect these rights deals to continue going up in the future as more and more folks enter the streaming competition. He may not be plugged into what audiences want today, but fortunately, they have some pretty good bench strength, not the least of which includes his daughter, Stephanie McMahon, who is, I guess, current still, but that's not her main role, Chief Brand Officer.
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In this podcast, Motley Fool senior analyst Tim Beyers talks about Netflix topics, including: Third-quarter profits, revenue, and subscriber growth coming in higher than expected. It just so happens in September of this year, following the ascension of Stephanie McMahon, following ascension of Paul Levesque, aka Triple H, and Nick Khan, everybody got extraordinarily well taken care of in a change of control. The Motley Fool recommends Comcast and World Wrestling Entertainment and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple.
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They're just not going to guide to the members anymore, and here's the reason you don't do that, Chris, because once you start introducing the advertising tier, if you are going to keep guiding to memberships, you're going to have to guide to not only paid subscription net adds but also advertising, ad tier, net ads. Nick Sciple: You talk about that venture of wrestling talent, Stephanie McMahon, Triple H, have both been in this business 25-plus years, and if you look at the ratings on, particularly, Monday Night Raw set two-year highs in August in the aftermath of McMahon leaving and Triple H taking on the creative duties at the company. The Motley Fool recommends Comcast and World Wrestling Entertainment and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple.
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Netflix has been here for years. To give the smackdown on this content business, with Motley Fool Canada's Jim Gillies, here's Nick Sciple. Also what WWE has done over the past several years is, in the mid 2010s, WWE launched WWE Network where you could watch the traditional pay-per-view events, WrestleMania, SummerSlam, those things.
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"Rule Breaker Investing" October Mailbag: Listeners Have a Lot to Say
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In this mailbag edition of Rule Breaker Investing, we talk about investing, business, life, and death.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on Oct. 26, 2022.
David Gardner: What do great quotations, a tennis player, and horror stories have in common? Well, if you're a regular listener of Rule Breaker Investing, you already know the answer. Those were the three podcasts we shared together this month of October 2022. It's a short month. This is the fourth and final Wednesday of this month, which means it is the Rule Breaker Investing mailbag for October 2022. Let's get into it, only on Rule Breaker Investing.
Welcome back to Rule Breaker Investing I'm delighted to have you join me. Yes, at the top I mentioned it's a short month. In fact, it's a thin mailbag this month. I guess I should prompt my dear listeners, the email address of course is rbi@fool.com. In fact, I'm going to pound that one home once or twice more this week because next week, we're inviting your participation. It's going to be Mental Tips, Tricks, and Life Hacks Volume 7. I will say ahead of time, I already have a locked and loaded list. I like my tips, tricks, and life hacks next week. But one of The Motley Fool's core values is basically top it. The idea is probably anything can be improved. I'm quite sure at least one of you has at least one tip, trick, or life hack better than my list and I would love to include it on next week's show. Mental tips, tricks, and life hacks next week on Rule Breaker Investing, and again, our email address is rbi@fool.com. You can also tweet us @RBIpodcast, would love to include your best idea. Well, this week we did kick it off with the 15th in my episodic series Great Quotes. So it was Great Quotes Volume 15. Thinking back to that one, I'm just going to reshare one of them now because it keeps coming back to me and I just agree with her so much. Here we go. I think this was the first one in the episode from Wendy Kopp from her Princeton Baccalaureate speech, basically her graduation speech earlier this year. Wendy, the founder of Teach For America, said and I quote, "In this era, there's more attention than ever, especially among your generation," she said, speaking to younger people, of course, "on personal well-being and finding balance.
"What I've seen," Wendy Kopp said, "is that the highest form of well-being is the exhilaration that comes from immersing ourselves in things that matter. The path to happiness is not balanced per se, but rather congruence between the values we hold most dear and where we spend our energy." So that and more from Great Quotes Volume 15, earlier this month. Then we got to know Sem Verbeek, the Dutch professional tennis player who also happens to be a Fool and I won't even say a closet fool. He's very much an out there Fool among his tennis peers. He's known as the guy who's there to help them with their money, personal finance questions, getting started investing. Sem had a realization in his late 20s, where he is today, that not enough professional athletes, and again, often we think of them as very wealthy people. But really, if you think about the tennis tour, even the golf tour, there are a lot of people who are scrapping to make it from one week to the next. Not enough of them, he realized, understand money and investing. It was a delight to hear some of his life story, where he is now. We got some tennis tips, we got some investing tips, of course, as well. Then last week, delightful and horrific week, Robert Brokamp, longtime Motley Fool contributor, sharing seven horror stories, largely centered on people who didn't do their will or didn't do their will sufficiently. Rick Engdahl brought the requisite sound effects. It was a horrific week, and I do hope that one gets some pass-around.
Please scare your spouse or maybe your parents. Please just nudge that URL, that podcast their way because Financial Horror Stories Volume 1: Memento Mori is there ultimately to create great effects. Sometimes we need to be scared into doing the right thing and filling out our will, I know you'll get to it someday. How about today? Filling out your will can be of so much benefit to those who care about you and are connected to you going forward. A couple of hot takes from Twitter. The first one from Andy Courtwright @ACourtWR8. Looks like one of those leet-speak license plates. Well played, Andy, @ACourtWR8. "Fun?" You wrote, "Informative and interesting, yes. But fun? Thank you @RobertBrokamp for the scary stories. I think I'm set, but this episode gives me reasons to review. There goes my Saturday." Well, since we're recording the week after, I did encourage all of you to do your will today. Sounds like Andy updated his a few days ago, so some of us are really on the ball. Sorry if that cost you a portion of your weekend, Andy, but I think we're both nodding our heads that it was time well spent. Yeah, I do think it was fun. I think that was one of our more fun podcasts of the year, I hope you will agree.
One other hot take, this one not an incoming tweet, but rather just a note from a concerned fellow Fool, longtime listener and often mailbag contributor, Jason Moore, whose screen name on Twitter is @JimminyJilickrz, is going through a little bit of a tough family time. I'm not going to share that, that's his private note, but it wasn't even my initial idea to say anything here. It was another Twitter and Fool friend of yours, Jason, who said David make sure you give Jason little props. Jason, I want to give you some props. I hope the family situation that you were working through right now resolves itself well. Your family is so fortunate to have you, somebody who is so wise, so carrying and so good. So best wishes with the situation, Jason. We're all pulling for you. Fool on.
Rule Breaker mailbag item number 1. This one comes from Kerry Prep. Thank you for this, Kerry. "I'm looking to increase the number of stocks in my portfolio. I'm currently overweighted in one stock. I plan to sell about 50 percent of that stock. After I allow for capital gains tax, I will have enough to purchase an equal amount of money in 10 additional stocks, which would increase the number of stocks I own and make my portfolio more balanced. As a longtime subscriber to Stock Advisor," Kerry writes, "I've done my due diligence. I already have 15-20 stocks on my watch list. They vary in terms of industry and market cap size. I am an investor, not a trader. My investment horizon is five-plus years." Kerry goes on, "I currently see three options. One, purchase shares in all 10 stocks at the same time.
That would be fairly immediate," Kerry writes, "as I would not be looking for a pullback that might never come. Option No. 2. Over the next five months, purchase shares in two companies each month. By the end of the fifth month, I will reinvest all the money available to me based on the original sale of shares from the overweighted stock. Or finally, option No. 3, door number 3, if you will, dollar-cost average in by purchasing shares in all of the companies with 1/5 of the money available to me over the next five months." Kerry closes, "Is there another option I'm not considering that might make better use of reinvesting the money? The five-month strategy is completely arbitrary, instead of one stock each month over 10 months. I don't want to wait too long to be fully invested again." Thank you, Kerry Prep. Well, let me start my answer by saying congratulations on making a good decision. It sounds like you are overweighted in stock and while it's OK for some of us to be somewhat overweighted in some stocks, we're all different and one person's overweight is someone else's way, way too overweight. I know a lot of people who won't allow their portfolio to get overconcentrated in anything.
They sell off, often selling off some of their best stocks to keep them at lower allocations. While I don't think that's the optimal strategy if you want to maximize your profits over the long term, for a lot of people, it is optimal for them because of their mindset and they're a little bit more conservative or cautious, or they want to stay highly, highly diversified for reasons that are pertinent to them. The funny answer to your question, Kerry, is that all three of your options are excellent. Any one of those I would be fine with. In every single case, you will be fully invested within the next five months. In the first option, that's the only one that happens right away. Now, mathematics and probabilities will show that that's typically the winning answer. Because since the stock market tends to rise, and as we know, it tends to rise 9-10 percent a year, which means from one month to the next, any given month, it would typically be rising. For every month that you wait, typically, you'll be paying a little bit of an opportunity cost not investing money that's sitting outside the market that you could have put in the market. Now, the concept of a rising market has become somewhat alien to many of us over just the last 12 months. The stock market has not just been volatile; it's been very bad. I've made a big point of mentioning that I'm down about half from where I was a year ago, which doesn't feel good, and yet I felt it before and I know, with the years ahead of me, I'll feel it again because these things happen if you're playing the only game that counts, Kerry, and I know you are, the long game. Matt will suggest and probabilities will suggest that you should put all of that money in now, even though many of the last 12 months, that wouldn't have been a good move or felt very good a month later. But we're not playing the months game, we're playing the years game.
A reason not to do option No. 1 is if it just feels too all at once, too all in or all out, too binary. For a lot of people, they prefer dollar-cost averaging. Often we've said invest in thirds, you've proposed investing in fifths, and I think that's a perfectly valid approach as well. The stock market has been volatile. You would've been rewarded for putting it in piecemeal over the previous five months instead of all at once. If you want to use a rearview mirror and be a little bit more conservative, I think dollar-cost-averaging over time is just fine. Then whether you choose to put it in a couple of companies at a time and fully allocate to those companies, or if it's not too much strain and it's easy enough and you're not paying too much in costs, if you want to dollar-cost average into all 10 of them 1/5 at a time over the next five months, I think that's a very good approach as well. So the good news is I can say yes, yes, and yes to all three of your options. I don't think you need a fourth option. I think you have an excellent Foolish head on your shoulders, and I wish you the very best. I bet this works out well five-plus years from now.
Rule Breaker mailbag item No. 2. Oh my God, this one comes from Kerry Prep. Yes, I did notice, Kerry, you wrote me two notes and I figured why not put them back to back for this mailbag. Thank you for this one, and now for something completely different, Kerry. "You wrote on your most recent podcast, Memento Mori, that was last week, you spoke about Marie Kondo's principles of organizing and tidying up. Her book, of course, The Life-Changing Magic of Tidying Up, and to include mementos and memorabilia to give you and your loved ones peace of mind. It reminded me," Kerry writes, "of Margareta Magnusson's book The Gentle Art of Swedish Death Cleaning," which, I'm going to do my best here fellow Swedish dostadning, something like that. Swedish Death Cleaning, a topic I had not previously heard about. Kerry goes on, "This is where the elderly and their families in Sweden set their affairs in order by decluttering so that you not only make the later years of your life as comfortable and stress-free as possible, but your death is not a burden to those you leave behind." Kerry closes, "Between this podcast and Michael Hebb's, let's talk about death over dinner earlier this year on Rule Breaker Investing.
You certainly live up to your mission statement of making the world smarter, happier, and richer. Thank you for all you do best. Kerry Prep." Well, thank you, Kerry, for this lovely note. Well, I don't have a lot to add here other than I know some of my Swedish fellow Fools are nodding their head saying, "Yes, of course, dostadning. I'm glad that that finally showed up on this podcast. David has been talking about cleaning up, David has been talking about death, he finally got to The Gentle Art of Swedish Death Cleaning." Again, this a book I have not read, but I can already tell I would like it because what I'm hearing from you, Kerry, is that this is a book teaching the principles of leading a life of simplicity and especially the older that we get to simplify. I think that that's a little bit countercurrent. I think that's a little bit Foolish because the tendency is for us to amass things over the course of our lives and end up with more and more stuff and needing more and more closets. I think I've just described myself so far from age 0 to age 56, but somewhere between 56 and when I die, I really do intend to slim things down and simplify, not only just to reduce stress, which you've pointed out is one of the great benefits of the gentle art of cleaning in our older age, but also, of course, to make things simpler for those who would have to pick up after me.
Thanks, Kerry, for that heads-up. This podcast is always mentioning books for many different reasons. This sounds like another recommendation that I bet someone listening is going to pick up, read, and benefit from. Thank you again for that note and reference. Rule Breaker mailbag item No. 3. This one is technically a Twitter hot take, but because it has a little bit more depth to it, I thought it'd be much better to feature here. There was an exchange on Twitter just a few days ago that started with my good long-term friend and fellow Fool. She's written for the Fool for so many years, Selena Maranjian, just tweeting out a beautiful quote from Reverend Warnock, "A vote," because it's that voting time of year, "A vote is a kind of prayer about the kind of world you want to live in." Matt Rantala, @Sisu_Runner on Twitter, you pointed it my way and you compared it to my line, of course, make your portfolio reflect your best vision for our future. I appreciate you connecting those things because I think they're very close, they're very similar. A vote is a kind of prayer about the kind of world you want to live in. I'm certainly here to say, hey, everybody, get out and vote. Especially those of us who are American here in November, you have a great opportunity to strengthen our democracy and to get your vote in. Yet, since I think we all already get that for the most part, I wanted to add a little bit of a contrarian point or thought as well because that's what I do.
As a fellow Fool, if I see conventional wisdom and I have an additional insight, sometimes I want to make sure I share it. Otherwise, it might be missed. So I tweeted back out and I'll just read it right here and then briefly reflect on. I tweeted back out, and while it's probably contrary to point out, "The votes we give every single day with our consumer dollars and investing dollars so far outnumber and I think outpower the political votes we occasionally give a few times a year if that." Now, all of this matters. Every vote counts, and I love living in a democracy. There's nowhere else, no place, there's no other system I want to live under. My life has been so dramatically improved, and especially if you're American, I think yours has too, relative to so many other systems in place in the world today and throughout history. Pinch yourself, fellow Americans, and yet let me point out that every single day, not just once a year, you and I are spending dollars. That truly is a vote. Every time you spend a dollar on a particular product, you just voted for that product, for that industry, and for the company that you chose to spend it on versus its competitors. That is a powerful vote and it's being done constantly. There is a wonderful phrase called conscious consumerism, and Paul Rice, who started Fair Trade, he invented Fair Trade. A lot of us know Fair Trade coffee, for example, Paul Rice on this podcast a few years ago, broke down conscious consumerism for us.
But he just pointed out the importance of how we spend our money and where we spend our money, to whom we give our money. As I've often tried to say since it really does breathe life into the things that we vote with for our dollars and in a little way kills the things that don't get our dollars instead. While I just put that tweet out there, I thought I'd add a few more thoughts here on the podcast on this same topic. I think there are five things that I see that are more powerful when it comes to my dollar votes than my political votes. The first is, I just spoke to, it's more frequent, we're constantly doing that. The second is those votes that are dollars build our economic system. I think that they're significantly more powerful in many cases than the vote that you might cast for your local politician or even at a federal level. There's much more one-to-one between what you're doing and how the world reacts when it comes to your dollars. Of course, when I'm talking about dollars, I'm emphasizing your consumer dollars, that's something we're all spending. But to this audience, to you, my fellow Fools, so many of you are investors as well, which means you're investing dollars. What stock you choose to buy or the fund you choose not to buy, all of these things really matter, too. When you think about your consumer dollars, combined with your investing dollars, that is very powerful. A third thing I want to point out is, for me anyway, I bet for you too, how you choose to spend your money is much more intimate, and personal, and reflective of you than the political vote that you cast. You really have a way of showing who you are in all of your nuances through your credit card statement every month than with that vote for or against yes or no for this party or that party.
That feels like a dull instrument in relative terms. I hope I'm helping you see, maybe swaying you to see that the dollars that you're voting with are the most powerful votes that you can send generally day-to-day over the course of your life. A couple more things I'll point out here. There's a lot more diversity usually in how you can spend your dollars than how you can vote. Sure, I guess you could write in anyone, but most elections, at least in the US, come down to two, occasionally maybe three candidates. There's not a lot of nuance when you only have 1, 2, or 3 choices versus the many choices that we make when we spend our money. Finally, I do think ultimately it's more effective. I do feel as if when you spend your money toward a company, you are building their profit. When you ignore another company, you are hurting their profit, and their profits, their income statements, their statements of cash flow, ultimately their balance sheets, in my experience anyway, maybe not yours, but in my experience, are more sensitive. They react more and it matters more than officials that we might vote in or not to various responsibilities who may or may not fulfill the promises that they made during the campaign that often were a basis for a vote that we gave.
The effectiveness in the one-to-one direction of your dollars and the future that we're creating together, for me anyway, even in this election time of year, I'm reminded of the other 364 days each year and the power and importance of that. I hope you, as a fellow Fool and a Rule Breaker, can see that, too. Rule Breaker mailbag item No. 4. This podcast is free, first of all. We've all noticed that it's free, we are in our eighth year. Thank you, Rick Engdahl, for an eight wonderful year of partnering to offer free tips about investing, about business, and about life. This falls into the last category, their life, and it's from Jeff Krosschell and it's quick. But for at least one Fool, Jeff Krosschell, it's one that just keeps on giving. Jeff, I think you submitted this in advance of mental tips, tricks, and life hacks next week. So I won't be featuring it next week, I'm featuring it this week as a preview of what we'll be doing next week. I hope I'm not overstating. This isn't a life-changer unless it is. "David, still rocking the tip that Clark Howard gave Chris Hill on shaving razors. Wipe the razor dry with a towel when you're done to keep it sharper longer." Jeff concludes, "I use the same razor for months."
There you go, Fools. It works for people of all genders. Anybody who uses a razor for any reason, you can make them last longer. Clark Howard, of course, the longtime Georgia radio and national radio personality, full of wonderful personal finance tips and a frequent guest over the years on Motley Fool Money and other Motley Fool properties. So shout out to Clark, shout out to Chris, and thank you Jeff Krosschell for maybe changing some lives with that trick this week. It is a reminder, rbi@fool.com is the email address. We're accepting mental tips, tricks, and life hacks for the rest of this week in advance of recording next Tuesday. Rule Breaker mailbag item number 5 again of 6, as I mentioned earlier this week. "Hey, David, long time, many times," and this is from PT Lathrop and, PT, thank you. It has been a long time and you have written in many times, and I'm pleased to share this one. "It's been a while. I know how passionate," PT writes, "you are about conscious capitalism. I was hoping with the backdrop of inflation and market uncertainty, rates, inequality, etc., you might be willing to speak to money versus goods. I sadly heard an acquaintance say, 'My family needs the money,' not to downplay that reality," PT writes, "but no, knowing them, they don't.
They, like all of us, need shelter, dignity, food, sustenance, safety, a degree of comfort, electricity, healthcare. Those are all things we need. Yes, money is the mode of transaction and, of course, we all should endeavor to help our fellow humans always, especially when they need it. But I think as a larger community, we need to think about bringing abundance to all, and that means business. It's really three paragraphs for a very age-old spectrum of worldviews. I just think the solution to housing prices and accessibility, to healthcare, to education, to transportation, heating is not more money; it's more technology, more new houses, more healthcare providers, more abundance, not more money. Thank you as always, curious for your thoughts. PT Lathrop." Well, PT, I think you know that I share an abundance mindset. It's not the only way to think. I think sometimes every yin needs a yang." But for me, yes, I also favored the idea that we need more. I don't like zero-sum answers that make it sound like if one person profits, somebody else loses. That's really not true of so much of life, especially capitalism. Capitalism is often portrayed as a zero-sum winner-take-all game that creates misery and losers, and while there is misery in this world for many different reasons and some of us are winners at different points in our lives and losers, other times we're all winners and losers.
The real truth, as you look at the history of capitalism and the benefits it's given us, especially over the last three centuries, is a win-win mentality. The buyer wins buying something she really wanted, the seller wins by selling something she needed to sell, maybe, PT, to raise money for that particular reason. Transactions when they happen voluntarily, which is the vast majority of them worldwide every day, happen most of them because both sides were willing to do that, and conscious capitalism, it's ironic perhaps that I'm doing the podcast this week from Austin, Texas at the Conscious Capitalism CEO Summit, which I attend every year here in October. It's a delight to be back in Austin. It's a bit of a shorter podcast this week for that reason, but conscious capitalism and a wonderful book by Raj Sisodia and John Mackey entitled Conscious Capitalism, for anyone who's not read it, reminds us that the win-win-win is the only ethical transaction. You win, I win, and the environment wins, or the world wins, or our community wins when we can cooperate together and create wins for each other. Since I guess I'm full of book recommendations this week, why wouldn't I include another one that I haven't read, and that's the book Mindset: The New Psychology of Success, it's by Carol Dweck.
Now, many of you will have read this book even if I haven't yet, but Carol Dweck is famous for writing about the growth mindset in contrast to the fixed mindset, the subtitle of her book, how we can learn to fulfill our potential in parenting, in business, in school, in relationships. The growth mindset is very analogous to an abundance mindset. So I'm going to recommend for anybody who had not previously heard of her work or more specifically of the growth mindset in contrast to the fixed mindset, the sense of win-win-win and abundance, which supplants, in so many ways, is often superior, not always, but often superior to a fixed zero-sum trade-off mindset. That, for me, personally, has been one of the great keys to success and to happiness. I realize a lot of us have different mindsets and different orientations. I'm just sharing what's worked for me. Thank you, PT Lathrop. Good to hear from you again. Finally, Rule Breaker mailbag item number 6 this week from Matt. Matt writing in, "We know you love fast-growing Rule Breakers, but how do you think about steady Eddie blue chips? What's an example of a great blue-chip stock that appeals to you?" Well, thank you for that, Matt. Blue chips, well, let's first break down the etymology. I needed to check this one myself, but the term blue chip used to refer to more reliable companies, more reliable stocks, US-based term actually derives from the card game poker.
The simplest sets of poker chips include white, red, and blue chips with American tradition anyway, dictating that the blues are highest in value. So that's where the phrase blue chip comes from. The world I grew up in, so 30 years ago or so, people would have said IBM was a blue chip back then. That's just a quick example of a great old American company that was reliable both as a stock and by all those purchasing decisions when you were in the corporate boardroom and you've got to deliver the line, "Can't go wrong buying IBM." So the reliability of the company and the stock probably not the same today, but I sure do still celebrate finding blue chips and adding them to your portfolios. Over the many years that I helped run Stock Advisor and Rule Breakers, I made a real point, and those teams continue doing so today, giving you starter stocks, which, in many cases, for Motley Fool Stock Advisor and Motley Fool Rule Breakers, those are the blue-chipy kinds of stocks that we think new members, new investors should get started with, the more reliable ones. When I think about reliable companies today, I'll just give you three just off the top of my head that start with the letter A, how about Apple, Alphabet, and Amazon? Those three companies all have trillion-dollar-plus market caps, they all are well-known brands. While Alphabet isn't as well-known with its A brand, but of course, Google, dominates most of Alphabet when we talk about revenues and income. So all three of those are great brands. They're products that many of us services, that many of us use every day.
They have huge financial stability, big balance sheets with lots of cash. They have talented leaders with deep benches for succession of these management teams over time. While it's certainly possible, as the only constant is change, that perhaps like IBM, some of these companies might lose some of their fire over time. If you're just talking about starting a portfolio or building around a bedrock of blue chips, those three quickly come to mind. Now Motley Fool Stock Advisor is full of many others. But what I primarily wanted to do in closing was to remind us of what blue chips are and what they mean, update the phrase for 2022 in terms of the companies that I think qualify, and most of all say yes, blue chips are great investments for you and for me. They can populate your whole portfolio, if you like. You're certainly right, Matt, that I do love Rule Breakers, but Rule Breakers and Rule Breaking doesn't have a monopoly on growth. Of course, Apple, Amazon, and Alphabet, all three of those companies continue to grow really well while being blue chips. So I like blue chips that grow as opposed to blue chips that don't grow, those are out there, too. So there you go one Fool's opinion and thanks for writing in. Well, thank you for suffering this Fool gladly on our umpteenth Rule Breaker Investing mailbag. I'll be back next week with our Mental Tips, Tricks, and Life Hacks. Always fun. It's going to be Volume 7 to improve your investing, your business, and your life. Fool on.
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. David Gardner has positions in Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Twitter. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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One other hot take, this one not an incoming tweet, but rather just a note from a concerned fellow Fool, longtime listener and often mailbag contributor, Jason Moore, whose screen name on Twitter is @JimminyJilickrz, is going through a little bit of a tough family time. Kerry goes on, "This is where the elderly and their families in Sweden set their affairs in order by decluttering so that you not only make the later years of your life as comfortable and stress-free as possible, but your death is not a burden to those you leave behind." That's just a quick example of a great old American company that was reliable both as a stock and by all those purchasing decisions when you were in the corporate boardroom and you've got to deliver the line, "Can't go wrong buying IBM."
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There is a wonderful phrase called conscious consumerism, and Paul Rice, who started Fair Trade, he invented Fair Trade. Clark Howard, of course, the longtime Georgia radio and national radio personality, full of wonderful personal finance tips and a frequent guest over the years on Motley Fool Money and other Motley Fool properties. Over the many years that I helped run Stock Advisor and Rule Breakers, I made a real point, and those teams continue doing so today, giving you starter stocks, which, in many cases, for Motley Fool Stock Advisor and Motley Fool Rule Breakers, those are the blue-chipy kinds of stocks that we think new members, new investors should get started with, the more reliable ones.
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She's written for the Fool for so many years, Selena Maranjian, just tweeting out a beautiful quote from Reverend Warnock, "A vote," because it's that voting time of year, "A vote is a kind of prayer about the kind of world you want to live in." I tweeted back out, and while it's probably contrary to point out, "The votes we give every single day with our consumer dollars and investing dollars so far outnumber and I think outpower the political votes we occasionally give a few times a year if that." Over the many years that I helped run Stock Advisor and Rule Breakers, I made a real point, and those teams continue doing so today, giving you starter stocks, which, in many cases, for Motley Fool Stock Advisor and Motley Fool Rule Breakers, those are the blue-chipy kinds of stocks that we think new members, new investors should get started with, the more reliable ones.
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I think that was one of our more fun podcasts of the year, I hope you will agree. I hope you, as a fellow Fool and a Rule Breaker, can see that, too. Over the many years that I helped run Stock Advisor and Rule Breakers, I made a real point, and those teams continue doing so today, giving you starter stocks, which, in many cases, for Motley Fool Stock Advisor and Motley Fool Rule Breakers, those are the blue-chipy kinds of stocks that we think new members, new investors should get started with, the more reliable ones.
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2022-10-29 00:00:00 UTC
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What to Watch as the Big Tech Companies Report Earnings
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https://www.nasdaq.com/articles/what-to-watch-as-the-big-tech-companies-report-earnings
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In this podcast, Motley Fool analysts Dylan Lewis and Tim Beyers discuss:
Margins, pricing power, and other metrics to watch from big tech companies.
More details about Twitter's acquisition.
Why Chinese tech stocks are dropping as Xi Jingping begins his third term.
The battle of research papers is on! Motley Fool engineering manager Tim White joins Tim Beyers to discuss the simple reason why tech giants are very interested in generating images from text prompts.
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 Twitter
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Twitter wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of September 30, 2022
This video was recorded on October 24, 2022.
Dylan Lewis: We've got what to expect when the biggest companies in the economy report earnings this week. Motley Fool Money, starts now. I'm Dylan Lewis joined by Motley Fool analysts, Tim Beyers. Tim, how's the going?
Tim Beyers: It's going well. Fully caffeinated, ready to go.
Dylan Lewis: Likewise, and I'm excited to jump into it. We have really the meat of earning season. We got the banks earlier, but I think we're getting into the companies that really move the economy at least as it relates to the stock market. Big tech reporting earnings this week, Apple, Microsoft, Meta, Alphabet, Amazon, all reporting in the next few days. These are some of the biggest names in the market and they are exposed to pretty much everything that's happening in the world all the time. Tim, what are you paying attention to when these companies report earnings?
Tim Beyers: Everything. But if we have to isolate it into two big metrics, there's a couple of things. I want to see where they land in terms of margins and across the board, like their operating margins, their net income margins, are they having heavier losses or not? Are gross margins expanding or are they declining? It's not going to give us perfect insight into what the inflationary effects are, but it'll give us something. We can believe that these companies have durable pricing power, and now we're in an uncertain economic environment. Let's find out. Do they have durable pricing power and if some are better than others, why are they better than others? I personally think this is going to be a really good report for Microsoft. That would be my bet. I think it's going to be a report for Meta.
I'm really curious to see where Alphabet lands because that could be either a great report, or it could be like I would have expected that. I'm really curious to see how these play out. That's one thing. The other indicator is how do they allocate capital here? Because all of them generate quite a lot of money, quite a lot of cash flow. Do we see dividend increases? Do we see buyback plans? Do we think that you have executives and Board members who say, "hey, you know what? Our stock has been absolutely battered we are increasing our buyback plan." All of them theoretically have the right and the cash to be able to do that, so that would be very interesting. We're going looking at those two things here, Dylan. If we see some incidences of degrading pricing power, I think that'll be worrying for some people. I'm not expecting that, but I think it's something to watch.
Dylan Lewis: The strong dollar narrative has been huge in the macro picture over the last couple of months. These are companies that do a good amount of business in the United States but they are also massive mega-tech companies that are exposed to the whims of a lot of international economies.
Tim Beyers: Sure.
Dylan Lewis: Are you looking at anything in particular with respect to that international revenue coming back to the US or the impact of the strong dollar?
Tim Beyers: Not necessarily. Not independently from everything else. But, it would be really interesting to see irrespective of the currency effects, how much growth they're experiencing overseas. That's always something. Because as these companies grow, they can't just grow off of US business they have to grow by compounding their opportunity internationally. The currency effects will be real. Some of the headwinds will be significant. When we saw Netflix report for example, there were some significant headwinds that Netflix faces and that is a global company. I wouldn't be surprised if you see some of these companies report like five percent currency effects, for example, on some of their revenue growth. But I also want to see like in Latin America, in Asia, in Europe, and Middle East, how much are they growing. Are they seeing a significant slowdown? I don't expect so, but that's more interesting to me than the quality or the size of the currency effects.
Dylan Lewis: Is this more a quarter to be focusing on the key business metrics rather than just anchoring to the dollars that we're seeing coming in?
Tim Beyers: I think so. I also think we want to know what it says about the business. Like in the case of Meta, what I want to know is, how are they dealing with the advertising headwinds we know they're dealing with. The worry with Meta is we just saw some pretty terrible results from Snap. How much does that translate to Meta and how much does that translate to Alphabet. Because they're all in different ways, advertising businesses but not all advertising businesses are equal. That's what we want to see. Is there a fundamental difference between let's say social advertising, Alphabet search advertising, and Meta brand advertising. What does that look like? Are they all experiencing the same degree of economic headwinds? I think logically the answer to that is probably not. But let's find out.
Dylan Lewis: Another company with advertising exposure, Twitter. We left them out of this discussion of mega tech. They are also set to report this week as well. They did not have anearnings calllast quarter. I imagine that will be the case this time around. Tim, I think at this point, the folks who own Twitter are the folks who own Twitter, the folks that do not and are watching everything with the Musk saga are watching on the sidelines. Those camps are pretty entrenched at this point and I don't want to dive too much into the Musk saga other than to say, we have found some more details about what we're seeing with this deal, $44 billion acquisition, and how it may affect the business going forward. News reports came out this week that because of the $13 billion in debt that will likely be used to finance this deal if it goes through, Twitter could be looking at a billion dollars in annual interest payments on that debt. That is a huge spike from where they currently sit and I think something that would fundamentally change the way that this business looks.
Tim Beyers: It absolutely would. The natural question is, what does Twitter do in order to finance or account for that big of an increase in debt service. It's speculation at this point, would it go to a billion dollars in interest payments or are they going to do things differently? How this deal gets paid for and what happens to Twitter's balance sheet is a source of both interest and concern for investors. There's so much uncertainty here. I think this is the shrug emoji stock on the market right now, Dylan. I say that a little bit flippantly, but I also mean it. There's so many things that we don't know. In order for Twitter to be materially different because we're looking at a funhouse mirror right now. What we're looking at is a company that is distorted.
We're seeing a distorted vision of a business that will fundamentally change. In what ways it changes, we don't yet know under the regime to come in and change it. Are we going to operationalize for much higher growth? Are we going to operationalize for much better margins? Are we going to sharply reduce costs? Are we going to do some combination of the three? There's some material changes that need to be made in order to unlock value at Twitter. Those who own Twitter right now, let's be clear here, this is a stock that's on the Rule Breaker scorecard so I have a thesis of this as a lead advisor on Rule Breakers that there is value to be unlocked.
But I cannot tell you right now, Dylan, how that value is going to get unlocked. We haven't been given that picture yet. Those of us who are investors in Twitter and I personally don't own shares. But again, we've got it on the Rule Breaker scorecard, is we think there is a big difference between the assets that Twitter has and the value of those assets. There's probably a mismatch there. But how Twitter, as a company unlocks the value of those assets, that's an open question. We've got to get a real plan that we think is reasonable to say, "Yeah, OK. I can see how this new regime unlocks those assets."
Dylan Lewis: I think that question has played Twitter for a lot of the time that it's been a publicly traded company.
Tim Beyers: For a long time, yeah.
Dylan Lewis: I like the way that you talked about the financials piece of it and the strategy piece of it. To a large extent, one will dictate the other. If we see a massive debt load hit this company, and their current interest payments over the last 12 months were about $60 million. Going up to a billion dollars is a massive swing from that. This was, if you're looking at the GAAP numbers, already a company that was $100 million in the red over the last 12 months. That's not even looking at the cash in the outdoor. But so to say, it's not a company that has a ton of money and can easily service this debt with its current business strategy. Something is going to have to change.
Tim Beyers: No, something is going to have to give and so the news reports and admittedly, this is speculation here, Dylan. But there'll be vast cost cuts including mass layoffs. The thesis is that's going to happen. There's already been layoffs at Twitter so how much more can they cut and how lean can they run. That's one part of the potential thesis here. How lean does Twitter get as they try to unlock assets. But then the other thing you do, when you load up a balance sheet, when you dramatically increase say your debt service, or you dramatically increase the amount of equity, you sell and put on your balance sheet. You have to make up for that in some way and so you've got to grow.
You've got to grow, or you have to increase margins, or you have to lower your cost so your margins get better. Things are dramatically going to change. It does appear, Dylan, that you're going to see some combination of dramatic lay-offs, dramatic cost reductions, and then some new things designed to either juice growth or improve the top line margin, the gross margin. Whether that's via a subscription product or some more targeted ads that they can sell at higher rates. There's going to have to be both in order to do this differently. The business as it currently exists has been we got great assets. How we operationalize those is, we're going to get there someday, and now the clock is ticking to figure this out in a very sustainable way.
Dylan Lewis: Yeah, I think we're approaching someday, right?
Tim Beyers: Yes.
Dylan Lewis: I think Musk does not want to own.
Tim Beyers: Someday is now.
Dylan Lewis: That's right. Before we wrapped Tim, Chinese stocks, Alibaba, Jd.com, Tencent, Baidu are all down and down and some cases double-digits, mainly tied to Xi Jinping unprecedented third term and news of that coming out and some recent shuffling in the Chinese parties leadership. This actually came up on Saturday's show where Bill Mann and Ricky, were talking about international markets. We are now seeing the news affect the companies, and so I wanted to trace back to this a little bit because I think generally what we like to see is some path forward and some element of certainty when we're looking at companies and we're looking at the environment that they operate in. It seems to me like that is maybe cloudier than ever in the Chinese markets.
Tim Beyers: That's right. Bill is exactly, he's been right about this. I want to give Bill credit. Uncertainty is part of the reason you can get a return in the stock market. You're investing with a degree of uncertainty and so you get paid for taking that risk. Uncertainty is not a bad thing, it's a good thing. The problem is that when you have no clear way to understand how much uncertainty you're dealing with, then boy you better get paid a really big premium in order to take that risk. I don't know that we're getting that. I don't know that we're getting enough. Like are you getting compensated for taking risks investing in Chinese companies? For me, the answer is no.
For somebody else, it might be yes, but know what you're getting into here. I think this is uncharted territory, and because it's uncharted territory, the risk premium really has to be big. The way that works in investing and doing things like valuations, the discount rate or the required rate of return has to be really high. Like if this pays off, am I going to get 15, 17, 20 percent annualized returns if this pays. Well then OK, I might be willing to take that risk. But if not, then I don't know. I don't want that bad. To me, I can't properly assess how much of a premium I'm actually getting. I don't want to invest in a black box. I'm not up for it, Dylan, this is a black box. The treat inside may really be a trick that I really don't want to have anything to do with.
Dylan Lewis: You almost pre-empted my question there, Tim. I'm sure there are some listeners that are looking at, these companies were already very beaten up just on the growth prospects. The zero-COVID policy in China and lockdowns, the increased government intervention. We've been seeing an increased regulation. We've been seeing them fall even further. I am sure there are some people out there that are looking at some of these businesses and saying these valuations are starting to look more and more attractive. Is there anything that puts a business like this on your radar or is it just you're putting it in the too-hard bucket?
Tim Beyers: Well, I put it in the too-hard bucket, but things that would change it for me is some clarity on what regulatory changes are actually going to be put in place. Because for me, the black box is, we've known what we know about how Chinese regulators deal with companies. We used to have some knowns about that. Now with the third term for Xi Jinping and some promises of real crackdowns got more government control over businesses. That's now a big black box. It's an unknown.
If some of that fog gets removed, if it lifts and I know what we're dealing with in terms of a regulatory scheme for some of these Chinese companies, OK maybe, then I can look at one of them or more of them on the basis of an informed speculation because I know a little bit more about how they're going to be regulated. But I don't know that right now, and so until I do, I don't have any time. There's no chill in China right now, and so without that, sorry, I'm out.
Dylan Lewis: As we like to say, sometimes there are no called strikes in investing, right Tim?
Tim Beyers: Yes, exactly right. For me, I'm leaving the bad on the shoulder, Dylan.
Dylan Lewis: Well, Tim. Thank you so much for stepping in the batter's box with me today, always great chatting with you.
Tim Beyers: I appreciate it. Thanks, Dylan.
Dylan Lewis: One more Tim Beyers. Stick around, we've got Tim Beyers and Tim White, his co-host on this week in Tech from Motley Fool Live, our members-only live stream. They break down the artificial intelligence races between Meta and Alphabet and the simple reason they're very interested in creating images from text prompts.
Tim Beyers: There's a lot more happening in AI lately. I think some of what's happening is easily misunderstood. I think it's easy to underestimate just exactly what's happening with AI. Let's talk a little bit more about the types of AI and in particular generative AI, we've had that discussion, but let's redefine that.
Tim White: Generative AI is AI that's used to create something out of nothing or create something out of something else if you will. In the case of the AIs that are making the news lately, it's AIs that can create images from a text prompt. Both Facebook and Google, as well as a lot of other players have created these generative AIs that are creating images out of text prompts and they're using a thing called diffusion to do that. The way that it works is essentially, imagine take an image and unblur that image is where they started with.
We took a blurry image, we tried to make an unblurry version of it. We teach the AI to do that by giving it an image and then blurring it intentionally and then saying trying to get back and giving it a cookie when it does it correctly. You do that a bazillion times and eventually, it learns how to unblur images. Then you do the same thing where you say like, hey here's a prompt of a teddy bear on the moon. Eventually, you basically unblur an image that starts with noise, just like text noise, and unblurs it into that. It's very complicated, and there's all kinds of research papers that have been written on it. I think the reason it's hit the news so hard is it feels real.
A lot of AIs behind the scenes and invisible, and this very much feels like something that you can touch and you can play with and is truly amazing. Especially when it comes to images, there has been generative AI around tech for quite a while. We also have heard a lot lately about +Co-pilot, which is a generative AI that can help developers write code by analyzing all the code that has ever been written and checked into the GitHub code repository. That generative AI really allows AI to take everything it's ever known. This big data thing we've been talking about for a long time, and turn that from one type of thing and into another.
Tim Beyers: What's really interesting about it? I mean, the science-fictiony piece of this that I think is getting people excited is the next logical leap you make in your mind once you start hearing this is wow, OK, I can write a line of something, I can write a sentence and that sentence a computer will take and build something completely from scratch out of that. The point that you're making Tim is these AI models have hit so many data sets so persistently for such a long period of time in computer time that this it's hard, but they've had a lot of practice. It's not like we're just standing up something from nothing and we've hit a cliff, and now computers are brilliant enough to do this. It's been a mountain of training that's gotten us to this point.
Tim White: I think that's why many people underestimate AI and what it's capable of is the sheer amount of data that we have been able to use to train AIs. That data is like all of the text of the Internet that Google has.
Dylan Lewis: Right.
Tim White: All of the tweets that have ever been written, all of the code that has ever been checked into GitHub. All of the images that have ever been uploaded to the Internet. That includes the catalogs of every museum. All of this stuff is available out there to feed into an AI as the basis for it to create something from, which is the same way people create. We take everything we've ever been exposed to and use that to create our own new things. That said, there's a lot of ethical concerns about whether it's right to take the style of an artist and create new works without them, in their style, without paying them. I think there's some ethical concerns we still have to shake down.
But what really blows my mind about this is if you look back to where we have thought AI was going to be in the past was you ask it to do something, it does it. But what we know now is because AI is always watching, always listening, and the sheer amount of data that it can constantly be processing is way more than we ever thought, it is going to be able to push those predictions to you before you even asked them. In the old scenario of Captain Picard asking for his tea, Earl Grey, hot from the computer, the computer should know already that he wants the tea based on his.
Tim Beyers: The computer already does know, Tim.
Tim White: I think if we think about it, all of this data collected should be telling him you need some tea now to calm them down, or you should be doing this or you should be doing that, and I think we underestimate the amount of data that AI has access to and how much it can predict and create from that data.
Tim Beyers: Yeah. This is both the interesting and terrifying thing about this movement is what you've just laid out. I'll use the scary version of what you just laid out here, Tim, and here's the sense. It is the AI who is always watching. You could either be really scared by that or you might get super served by that, and honestly, it could be both. Let's talk about the so-called battle of the research papers we've been talking about here, Tim, which is Alphabet and Meta, each putting out their own research papers about what to do with the most popular form of this, which is text to image processing and what those two want to do, what they think is possible. Let's talk about why this is so interesting. I think we were talking about this yesterday. The most important reason they're interested in this is ads.
Tim White: If they can create an image that grabs your attention because it's been carefully constructed from everything it knows about you, it knows you like blue, it knows you like this car, it knows who lives in this area, it knows the weather by you is this. It can assemble those to create an image that hyper-appeals to you to click on.
Tim Beyers: This is really interesting. And so the more data that these AIs are studying and the more data about your life that you have input into the Google machine or into the Facebook feed, let's just take a very simple version of this. You search for new shoes on Google and the Google machine, to your point Tim, knows that you are a runner, knows that you like black, knows that you are a big fan of basketball, might send you a pair of black Nike running shoes. We don't know, but it may match you up and it may have a really spectacular image that is custom-made that Nike has commissioned at a higher ad rate for Google in order to present that ad specifically to you.
Tim White: Right.
Tim Beyers: This is the dream scenario.
Tim White: Deep learning AI can already do the reverse, which is it can look at an image and describe that image and put it in words. You may search for blue shoes, and it's not just looking for blue shoes on the text of the Internet. It can actually search for images that contain blue shoes that happen to match other images that are similar to images you've clicked on based on what's in those images.
Tim Beyers: The genius of this is that text-to-image processing creates a potentially much sharper ad delivered to you that hits you and hits you in the fields, we could say. Other applications here, one of the things that all of this brings up is a principal called natural language processing. I think of natural language processing as indexing here, Tim. But let's talk about what NLP actually is and how this plays into the AI models we're seeing.
Tim White: Natural language processing is a type of AI that lets you speak to or type to an AI as the way you would naturally speak, that's why it says natural language, as opposed to the way most people use Google where they just type a couple of words and hope for the best. This is you can actually type a whole sentence or speak a whole sentence to your robotic system of choice and it understands what you're saying. But vice versa, it also can generate natural language from its corpus of all the words it's ever been exposed to, and that language can be marketing copy. There's tons of websites out there that will let your AI generate marketing copy and tweets and the text that goes along with your Instagram post.
Now we can generate the image for you Instagram post and the text to go with it all from AI. Apple, I think really stepped into the arena this week. They have got a patent on the ability to take an image on your iPhone and change the pose of the person in that image. This is the kind of thing that again, these generative AIs can basically guess at what the other side of the picture might be. If your picture is one side of person's face, it can guess what the other side of that person's face might be in generate it from that. It does that based on analyzing all the image, but it can do that with language too. I had one where I'm a big DVD player and I had an AI generate a whole bunch of dungeon rooms for me.
Tim Beyers: Nice.
Tim White: It generate this entire adventure for me and it literally created the whole thing with full descriptions and full text and everything. It is amazing what these AIs can do and I think the future is going to be a lot different than we're expecting because of the amount of data these things have access to.
Tim Beyers: Yeah, I agree. I think natural language processing, just to explain what I was saying with an index here, when you have a common phrase, like an English phrase or attributes of phraseology, so you put in something or you speak something or you write something in natural language to a machine, they have associations of images and definitions and other types of attributes, maybe like a graph format. That makes these things very smart. Why that's so interesting from an AI perspective and what I love about it, Tim is that's the contextual processing that the human brain does naturally and computers do not. NLP brings a level of context that I think is fascinating, arguably a little bit terrifying, but clearly fascinating, that makes all of these additional features possible.
Dylan Lewis: That's all for Motley Fool Money today. 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 anything based solely on what you hear. I'm Dylan Lewis. Thanks for listening. See you tomorrow.
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. Dylan Lewis has positions in Alphabet (A shares), Amazon, Apple, and Tencent Holdings. Tim Beyers has positions in Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Netflix. Tim White has positions in Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., Microsoft, Netflix, and Tencent Holdings. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Baidu, JD.com, Meta Platforms, Inc., Microsoft, Netflix, Nike, Tencent Holdings, and Twitter. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In this podcast, Motley Fool analysts Dylan Lewis and Tim Beyers discuss: Margins, pricing power, and other metrics to watch from big tech companies. Those camps are pretty entrenched at this point and I don't want to dive too much into the Musk saga other than to say, we have found some more details about what we're seeing with this deal, $44 billion acquisition, and how it may affect the business going forward. 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 anything based solely on what you hear.
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In this podcast, Motley Fool analysts Dylan Lewis and Tim Beyers discuss: Margins, pricing power, and other metrics to watch from big tech companies. Tim White has positions in Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., Microsoft, Netflix, and Tencent Holdings. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Baidu, JD.com, Meta Platforms, Inc., Microsoft, Netflix, Nike, Tencent Holdings, and Twitter.
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In this podcast, Motley Fool analysts Dylan Lewis and Tim Beyers discuss: Margins, pricing power, and other metrics to watch from big tech companies. Motley Fool engineering manager Tim White joins Tim Beyers to discuss the simple reason why tech giants are very interested in generating images from text prompts. Tim White: Natural language processing is a type of AI that lets you speak to or type to an AI as the way you would naturally speak, that's why it says natural language, as opposed to the way most people use Google where they just type a couple of words and hope for the best.
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In this podcast, Motley Fool analysts Dylan Lewis and Tim Beyers discuss: Margins, pricing power, and other metrics to watch from big tech companies. Tim White: Generative AI is AI that's used to create something out of nothing or create something out of something else if you will. In the case of the AIs that are making the news lately, it's AIs that can create images from a text prompt.
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18646.0
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2022-10-29 00:00:00 UTC
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Should You Sell Your Spotify Stock Now?
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AAPL
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https://www.nasdaq.com/articles/should-you-sell-your-spotify-stock-now
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nan
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nan
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Did you hear the news? Recently, the world's leading audio-streaming business disappointed investors with a less-than-glowing quarterly earnings report. Despite already falling by more than half this year, shares of Spotify Technology (NYSE: SPOT) fell by more than 11% overnight in response to a bottom line that moved a little further away from positive territory.
Spotify shareholders have seen their investments fall a terrifying 76.3% from a peak the stock reached in early 2021. Is the company's disappointing third-quarter report a sign that it's finally time to cut and run?
Why Spotify stock tanked
Spotify's a relatively young business in a high growth phase. Investors are generally nervous about this and other growth companies these days. That's because soaring interest rates will raise their cost of capital and make positive profit margins far more difficult to achieve.
In the third quarter of 2021, Spotify reported a significant operating profit that disappeared this year. During the third quarter of 2022, Spotify reported a $228 million operating loss that was even larger than the company's operating loss in the second quarter of 2022.
Spotify is mostly a subscription business, but it does earn ad revenue from hundreds of millions of users who aren't subscribers yet. As investors have seen from digital advertising giants Meta Platforms and Alphabet, general spending on digital advertising is contracting due to fear of a recession.
Why I'm not selling
Profit margins that have moved in the wrong direction aren't particularly troubling for some important reasons. First, Spotify's enormous user base keeps growing by leaps and bounds. Total monthly active users in the third quarter rose 20% year over year to a whopping 456 million and premium subscribers rose 13% year over year to 195 million.
Over the past two years, Spotify has successfully managed 46 price increases worldwide. In the near term, investors can expect a big bump in the always-important U.S. market to help push the company toward profitability again. Spotify's biggest competitor in the music streaming space, Apple, recently raised U.S. prices by $1 for premium users. With a growing roster of exclusive podcast content that its subscribers can't access on Apple Music, Spotify will have no problem raising U.S. subscription prices by $1 per month as well.
Image source: Getty Images.
Why I'll be buying more
When Spotify went public in 2018, it told investors to expect a gross profit margin at around 30% to 35% of total revenue. The company approached this goal in 2021, but heavy investments in its future have pushed it further away this year.
SPOT Gross Profit Margin data by YCharts
Big moves like jumping into podcasting and audiobooks have dented profitability this year but this is most likely temporary. Music streaming is a generally low-margin business because artists expect to be paid every time their content is heard. Podcasters, on the other hand, gladly distribute their content for free because they can fill that content with lucrative advertisements. For this reason, Spotify believes its podcasting business has a 40% to 50% gross margin potential.
It's been just three years since Spotify began incorporating podcasts into what was just a music streaming app. It's already the No. 1 platform podcast listeners use in the U.S. and other developed markets. Its competitors haven't even begun to enter the lucrative space, which means Spotify's already excellent customer retention rate will more than likely grow stronger.
Spotify's highly successful podcast venture proves that its platform is a powerful machine capable of going after new verticals. The next vertical Spotify's aiming for is a market for audiobook delivery it estimates at around $70 billion annually. The new integration is pinching profitability at the moment but Spotify thinks its audiobook business can maintain a gross margin above 40% once it has a chance to mature.
If Spotify were still just a music streaming business, the wider-than-expected loss it reported in the third quarter would be a reason to sell and or avoid the stock altogether. A well-executed investment in podcasting and a more recent push into audiobooks, though, puts Spotify miles ahead of its nearest competitors.
It won't happen in 2022, but higher margins from podcasts and audiobooks will help this relatively well-run company post a reliable profit. Adding some beaten-down shares of Spotify to an already well-diversified portfolio looks like a sensible idea right now.
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
Suzanne Frey, an executive at Alphabet, 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. Cory Renauer has positions in Spotify Technology. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Meta Platforms, Inc., and Spotify Technology. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despite already falling by more than half this year, shares of Spotify Technology (NYSE: SPOT) fell by more than 11% overnight in response to a bottom line that moved a little further away from positive territory. With a growing roster of exclusive podcast content that its subscribers can't access on Apple Music, Spotify will have no problem raising U.S. subscription prices by $1 per month as well. Its competitors haven't even begun to enter the lucrative space, which means Spotify's already excellent customer retention rate will more than likely grow stronger.
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Total monthly active users in the third quarter rose 20% year over year to a whopping 456 million and premium subscribers rose 13% year over year to 195 million. Spotify's biggest competitor in the music streaming space, Apple, recently raised U.S. prices by $1 for premium users. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Meta Platforms, Inc., and Spotify Technology.
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Why Spotify stock tanked Spotify's a relatively young business in a high growth phase. If Spotify were still just a music streaming business, the wider-than-expected loss it reported in the third quarter would be a reason to sell and or avoid the stock altogether. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Meta Platforms, Inc., and Spotify Technology.
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Spotify's biggest competitor in the music streaming space, Apple, recently raised U.S. prices by $1 for premium users. If Spotify were still just a music streaming business, the wider-than-expected loss it reported in the third quarter would be a reason to sell and or avoid the stock altogether. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Meta Platforms, Inc., and Spotify Technology.
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18647.0
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2022-10-29 00:00:00 UTC
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What Does Apple's Controversial NFT Policy Mean for Ethereum and Solana?
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AAPL
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https://www.nasdaq.com/articles/what-does-apples-controversial-nft-policy-mean-for-ethereum-and-solana
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nan
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nan
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The good news is that Apple (NASDAQ: AAPL) is now supporting non-fungible tokens (NFTs) in its App Store. Given Apple's massive influence in the tech world, this would seem to signal the future mass-market adoption of NFTs. The bad news is that Apple's new NFT rules are potentially so restrictive and onerous that there has already been blowback in the crypto community.
Since Ethereum (CRYPTO: ETH) and Solana (CRYPTO: SOL) are the two top crypto players in the NFT world, it's clear that Apple's new NFT policies are going to have an important impact on how these two cryptos move forward. Let's take a closer look at three controversial Apple NFT rules and what they might mean for Ethereum and Solana.
1. The 30% tax
Apple's decision to take a 30% cut of all in-app NFT transactions is the one issue that is getting the most attention. Yes, you can now buy and sell NFTs within apps, but Apple will impose its standard 30% fee on all transactions. This "tax" has always been a huge source of contention in the tech world. There have been lawsuits fought over this, and even Elon Musk has weighed in on the matter. Some developers and creators see this 30% tax as potentially killing the NFT app business.
Image source: Getty Images.
Solana has already stepped forward and said it would not go along with this 30% tax. To see how this plays out in real life, let's take the example of Magic Eden, which is the top Solana NFT marketplace. Right now, you can go into the App Store and download the Magic Eden app. Once you open up Magic Eden on your iPhone, you can browse all the popular NFT collections and view all the top NFT projects. But you can't buy anything within the Magic Eden app right now. If you find an NFT you want to buy, you have to go to the Magic Eden website, where you will be charged a much more reasonable 2% transaction fee.
2. Pay with fiat, not crypto
Another very controversial issue is Apple's decision not to allow cryptocurrency as a form of payment for any NFTs. In many ways, this goes against the entire concept of NFTs. For NFT collectors, the way you have traditionally paid for NFTs is with crypto. When you go to OpenSea, which is the biggest Ethereum NFT marketplace, you see the price of NFTs quoted in ETH, not dollars. When you go to Magic Eden, you see the price of NFTs quoted in SOL, not dollars.
Nonetheless, the decision by Apple to ban crypto payments could make NFTs easier to understand for the casual user. It's not natural for most people to say something like, "I just got a bargain on my Bored Ape NFT. I only paid 75 ETH for it." As some have pointed out, Apple is just trying to simplify NFTs for the average person. You pay for your digital music in dollars, so why shouldn't you pay for your digital NFTs in dollars?
3. Ban on certain types of NFTs
Where things get particularly restrictive is when it comes to what types of NFTs people will be able to buy, sell, and trade. For now, it looks like Apple is putting a de facto ban on utility NFTs, which are NFTs that contain extra features, benefits, or perks. In very simple terms, these are NFTs that are not just pretty pictures -- they come with other bells and whistles that make them valuable. Apple has specifically included language about NFTs not being allowed to unlock other "features or functionality" in its NFT policy.
The biggest impact here could be on play-to-earn (P2E) games, which include the option to earn or acquire in-game assets while playing the game. These in-game assets are often in the form of NFTs. Since Ethereum is generally considered to be the premier blockchain for P2E gaming, this Apple policy would seem to have the greatest impact on the Ethereum NFT ecosystem.
The future of NFTs
Right now, it looks like Apple could be trying to become the leader in the mobile NFT space. If you own an NFT, Apple wants it to be on an iPhone. If you are buying NFTs in the primary market or trading NFTs in the secondary market, Apple wants you to be doing it on an iPhone. And, of course, Apple will take a nice cut of every single transaction. Genius!
Solana thinks it has a grand workaround for all of this: a new "mobile crypto" strategy that includes the first-ever crypto phone. The new Saga phone is set for release in the first quarter of 2023. While this phone was never designed to be an Apple challenger or to shake up the Apple ecosystem, it could convince developers to leave Apple for Solana and for users to make future NFT transactions via Solana. For that reason, I'm more optimistic about Solana than Ethereum when it comes to the future of NFTs.
Taking a big-picture view, Apple's formal entry into the NFT world opens up new opportunities for both Ethereum and Solana. Apple is trying to make NFTs as simple and easy to use as possible. That will grow the overall size of the NFT pie for Ethereum and Solana. It's up to these two cryptos, however, to figure out how to protect their slice of that pie if Apple ever becomes a dominant player.
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
Dominic Basulto has positions in Ethereum. The Motley Fool has positions in and recommends Apple, Ethereum, 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.
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The good news is that Apple (NASDAQ: AAPL) is now supporting non-fungible tokens (NFTs) in its App Store. Pay with fiat, not crypto Another very controversial issue is Apple's decision not to allow cryptocurrency as a form of payment for any NFTs. Nonetheless, the decision by Apple to ban crypto payments could make NFTs easier to understand for the casual user.
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The good news is that Apple (NASDAQ: AAPL) is now supporting non-fungible tokens (NFTs) in its App Store. Since Ethereum (CRYPTO: ETH) and Solana (CRYPTO: SOL) are the two top crypto players in the NFT world, it's clear that Apple's new NFT policies are going to have an important impact on how these two cryptos move forward. While this phone was never designed to be an Apple challenger or to shake up the Apple ecosystem, it could convince developers to leave Apple for Solana and for users to make future NFT transactions via Solana.
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The good news is that Apple (NASDAQ: AAPL) is now supporting non-fungible tokens (NFTs) in its App Store. Since Ethereum (CRYPTO: ETH) and Solana (CRYPTO: SOL) are the two top crypto players in the NFT world, it's clear that Apple's new NFT policies are going to have an important impact on how these two cryptos move forward. If you are buying NFTs in the primary market or trading NFTs in the secondary market, Apple wants you to be doing it on an iPhone.
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The good news is that Apple (NASDAQ: AAPL) is now supporting non-fungible tokens (NFTs) in its App Store. Since Ethereum (CRYPTO: ETH) and Solana (CRYPTO: SOL) are the two top crypto players in the NFT world, it's clear that Apple's new NFT policies are going to have an important impact on how these two cryptos move forward. While this phone was never designed to be an Apple challenger or to shake up the Apple ecosystem, it could convince developers to leave Apple for Solana and for users to make future NFT transactions via Solana.
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18648.0
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2022-10-28 00:00:00 UTC
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Amazon shares slump, Big Tech peers stay afloat
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AAPL
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https://www.nasdaq.com/articles/amazon-shares-slump-big-tech-peers-stay-afloat
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nan
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nan
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Updates shares, milestones
Oct 28 (Reuters) - Amazon.com Inc's AMZN.O shares fell about 8% on Friday after forecasting holiday-quarter sales below Wall Street estimates, while its Big Tech peers recovered from a bruising selloff this week.
The online retailer, whose market cap briefly fell below $1 trillion, was last down 8.4% at $101.66, after hitting its lowest since April 2020.
Apple Inc AAPL.O, however, shone bright amid a crowd of dimming lights in the Big Tech space, as the iPhone maker reported revenue and profit that topped analysts' estimates.
Microsoft, Alphabet and Meta gained between 1.2% and 3.1% after their shares were battered this week following gloomy outlook from the companies.
The Big Tech stocks are on track to lose more than $400 billion this week.
Many view the megacap companies as bellwethers for how corporate America is faring during a year in which inflation has soared, pushing the U.S. Federal Reserve to enact a series of jumbo-sized rate hikes that have bruised markets.
Analysts fear macroeconomic factors, including a strong dollar, will continue to hit Amazon in the near term, however, over a longer period of time, the retailer should be able to bounce back.
"Despite accelerating revenues, Amazon has been cut down to size by the market after missing expectations. Efficiency has yet to return to the e-commerce business," Ben Barringer, equity research analyst at Quilter Cheviot, said.
While the cloud services segment has been one of high and sustained growth for tech companies, indications for Amazon, Microsoft and Intel Corp INTC.O this week point to lower investments as costs rise.
Intel's shares rose about 7% after the chipmaker said its cost-reduction plan includes layoffs and is expected to lower costs by $3 billion next year.
However, analysts are cautious of how the company plans to cut costs.
Cost reductions are necessary, but Intel needs to focus on cutting spending in the right places and keep research and development investments high, Glenn O'Donnell, research director at Forrester, said.
(Reporting by Akash Sriram, Medha Singh, Sruthi Sankar and Chavi Mehta in Bengaluru; Editing by Shounak Dasgupta)
((Akash.Sriram@thomsonreuters.com; https://twitter.com/hoodieonveshti))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O, however, shone bright amid a crowd of dimming lights in the Big Tech space, as the iPhone maker reported revenue and profit that topped analysts' estimates. Many view the megacap companies as bellwethers for how corporate America is faring during a year in which inflation has soared, pushing the U.S. Federal Reserve to enact a series of jumbo-sized rate hikes that have bruised markets. While the cloud services segment has been one of high and sustained growth for tech companies, indications for Amazon, Microsoft and Intel Corp INTC.O this week point to lower investments as costs rise.
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Apple Inc AAPL.O, however, shone bright amid a crowd of dimming lights in the Big Tech space, as the iPhone maker reported revenue and profit that topped analysts' estimates. While the cloud services segment has been one of high and sustained growth for tech companies, indications for Amazon, Microsoft and Intel Corp INTC.O this week point to lower investments as costs rise. Intel's shares rose about 7% after the chipmaker said its cost-reduction plan includes layoffs and is expected to lower costs by $3 billion next year.
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Apple Inc AAPL.O, however, shone bright amid a crowd of dimming lights in the Big Tech space, as the iPhone maker reported revenue and profit that topped analysts' estimates. Updates shares, milestones Oct 28 (Reuters) - Amazon.com Inc's AMZN.O shares fell about 8% on Friday after forecasting holiday-quarter sales below Wall Street estimates, while its Big Tech peers recovered from a bruising selloff this week. While the cloud services segment has been one of high and sustained growth for tech companies, indications for Amazon, Microsoft and Intel Corp INTC.O this week point to lower investments as costs rise.
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Apple Inc AAPL.O, however, shone bright amid a crowd of dimming lights in the Big Tech space, as the iPhone maker reported revenue and profit that topped analysts' estimates. While the cloud services segment has been one of high and sustained growth for tech companies, indications for Amazon, Microsoft and Intel Corp INTC.O this week point to lower investments as costs rise. However, analysts are cautious of how the company plans to cut costs.
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18649.0
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2022-10-28 00:00:00 UTC
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Making Sense of Big Tech Earnings After Amazon and Meta Tumble
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AAPL
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https://www.nasdaq.com/articles/making-sense-of-big-tech-earnings-after-amazon-and-meta-tumble
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nan
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nan
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The earnings bombshells from Amazon AMZN and Meta META and sub-par releases from Alphabet GOOGL and Microsoft MSFT have forced us all to revisit our long-held assumptions about the sustainability of these technology leaders’ earnings power.
Apple AAPL has redeemed itself with its quarterly release, cementing its leadership credentials and its ‘Rock of Gibraltar’ status in the eyes of its legion of supporters.
Apple’s solid results aside, the questions appear to be mostly about the outlook for Amazon and Meta, as Alphabet and Microsoft’s 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 literally being taken to the woodshed following the releases.
The one thing that is becoming clear after results from these ‘Big 5 Tech Players’ is that none of these their profitability is Teflon coated and immune from cyclical forces. Apple may be looking invincible today in the afterglow of its quarterly report, but the consumer decision to purchase the company’s pricey phones and other devices will also always remain 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 -13.2% lower earnings on +6.1% higher revenues. But growth is expected to resume next year, as you can see in the chart below that shows the group’s earnings and revenue picture on an annual basis.
Image Source: Zacks Investment Research
One possible explanation for this group’s growth challenge is the all-around margin pressures, a function of their bulging payrolls, particularly for Amazon, Meta and Alphabet. 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 now.
In addition to the group’s margin challenge, there are two key 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 for the group in the last 6 years and estimates for the next two years.
Image Source: Zacks Investment Research
We have highlighted above the two years that benefited from the Covid effects. The question now is whether the +58% jump in 2021 earnings brought forward profits from 2022 only, or did it include 2023 as well?
The second factor is related to the impact of macroeconomic forces on profitability. Microsoft’s business was affected not only by the slump in PC demand, a function of post-Covid adjustments, 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 so-called enterprise spending, on top of digital advertising spending. The market was under the impression that cloud spending was effectively immune from economic forces and would not experience any cuts. The numbers from Microsoft, Amazon and Alphabet 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 defer replacing their older devices with newer ones. We are not there yet because the labor market is rock solid, but we could very well reach that stage in either of the coming two quarterly reports.
Q3 Earnings Season Scorecard
Including all of the reports through Friday, October 28th, we now have Q3 results from 263 S&P 500 members that combined account for 52.6% of the index’s total market capitalization.
We have another super busy reporting docket this week, with results from more than 1,100 companies on deck, including results from 163 S&P 500 members.
For the 263 index members that have reported results already, total earnings are down –0.6% from the same period last year on +11.3% higher revenues, with 71.9% beating EPS estimates and 63.1% beating revenue estimates.
Here is how the 2022 Q3 earnings and revenue growth rates for these 263 companies compares across different periods.
Image Source: Zacks Investment Research
Here is how the 2022 Q3 EPS and revenue beats percentages for these 263 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.
The Earnings Big Picture
To get a sense of what is currently expected, take a look at the chart below that shows current earnings and revenue growth expectations for the S&P 500 index for 2022 Q3 and the following three quarters.
Image Source: Zacks Investment Research
As you can see here, 2022 Q3 earnings are expected to be up +1% on +9.4% higher revenues.
Don’t forget that it is the strong contribution from the Energy sector that is keeping the aggregate Q3 earnings growth in positive territory. Excluding the Energy sector, Q3 earnings for the rest of the S&P 500 index would be down -6.4% from the same period last year.
As we have consistently been pointing out, estimates are coming down, both for the current period (2022 Q4) as well as full-year 2023.
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
The chart below shows the aggregate 2023 earnings estimate on an ex-Energy basis.
Image Source: Zacks Investment Research
The chart below shows the overall earnings picture on an annual basis.
Image Source: Zacks Investment Research
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>>The Earnings Picture is Good, But Not Great
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL has redeemed itself with its quarterly release, cementing its leadership credentials and its ‘Rock of Gibraltar’ status in the eyes of its legion of supporters. Apple Inc. (AAPL): Free Stock Analysis Report Apple may be looking invincible today in the afterglow of its quarterly report, but the consumer decision to purchase the company’s pricey phones and other devices will also always remain a discretionary choice and vulnerable to economic forces.
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Apple AAPL has redeemed itself with its quarterly release, cementing its leadership credentials and its ‘Rock of Gibraltar’ status in the eyes of its legion of supporters. Apple Inc. (AAPL): Free Stock Analysis Report Image Source: Zacks Investment Research The EPS and revenue beats percentages were notably on the weak side earlier in the reporting cycle.
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Apple AAPL has redeemed itself with its quarterly release, cementing its leadership credentials and its ‘Rock of Gibraltar’ status in the eyes of its legion of supporters. Apple Inc. (AAPL): Free Stock Analysis Report For the 263 index members that have reported results already, total earnings are down –0.6% from the same period last year on +11.3% higher revenues, with 71.9% beating EPS estimates and 63.1% beating revenue estimates.
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Apple Inc. (AAPL): Free Stock Analysis Report Apple AAPL has redeemed itself with its quarterly release, cementing its leadership credentials and its ‘Rock of Gibraltar’ status in the eyes of its legion of supporters. The chart below shows the aggregate dollar earnings for the group in the last 6 years and estimates for the next two years.
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18650.0
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2022-10-28 00:00:00 UTC
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Here's Why Apple Stock Soared Today
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AAPL
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https://www.nasdaq.com/articles/heres-why-apple-stock-soared-today
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nan
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nan
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What happened
Shares of Apple (NASDAQ: AAPL) jumped 7.6% on Friday after the technology titan's sales and profits exceeded investors' expectations.
So what
Apple's revenue rose 8% year over year to $90 billion in its fiscal 2022 fourth quarter ended Sept. 24. The tech leader's growth would have been even more impressive had the U.S. dollar not appreciated so sharply against many international currencies. "We would have grown in double digits without the foreign exchange headwinds," CEO Tim Cook said in an interview with CNBC.
Apple was able to generate gains in its most important business segments, even as the overall personal computer and smartphone markets experienced sharp downturns amid steep declines in consumer demand. Mac sales surged 25% to $11.5 billion. iPhone revenue increased by 10% to $42.6 billion. And Apple's high-margin services segment managed to grow by 5%, to $19.2 billion.
"The strength of our ecosystem, unmatched customer loyalty, and record sales spurred our active installed base of devices to a new all-time high," chief financial officer Luca Maestri said in a press release.
Better still, Apple's profits grew even as supply chain shortages drove up its costs. Its operating income climbed by nearly 5% to a whopping $25 billion. And its earnings per share increased by 4%, to $1.29. That was above Wall Street's projections, which had called for per-share earnings of $1.27.
"Our record September quarter results continue to demonstrate our ability to execute effectively in spite of a challenging and volatile macroeconomic backdrop," Maestri said.
Now what
Apple's solid results were praised by investors who have come to view the company's stock as a bastion in the current economic storm, which has driven sharp declines in the prices of many other tech stocks. With its defensive status now well-secured, Apple's share price could continue to rise as more investors seek shelter from the market's volatility.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of Apple (NASDAQ: AAPL) jumped 7.6% on Friday after the technology titan's sales and profits exceeded investors' expectations. Apple was able to generate gains in its most important business segments, even as the overall personal computer and smartphone markets experienced sharp downturns amid steep declines in consumer demand. "The strength of our ecosystem, unmatched customer loyalty, and record sales spurred our active installed base of devices to a new all-time high," chief financial officer Luca Maestri said in a press release.
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What happened Shares of Apple (NASDAQ: AAPL) jumped 7.6% on Friday after the technology titan's sales and profits exceeded investors' expectations. "Our record September quarter results continue to demonstrate our ability to execute effectively in spite of a challenging and volatile macroeconomic backdrop," Maestri said. With its defensive status now well-secured, Apple's share price could continue to rise as more investors seek shelter from the market's volatility.
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What happened Shares of Apple (NASDAQ: AAPL) jumped 7.6% on Friday after the technology titan's sales and profits exceeded investors' expectations. Now what Apple's solid results were praised by investors who have come to view the company's stock as a bastion in the current economic storm, which has driven sharp declines in the prices of many other tech stocks. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Joe Tenebruso has no position in any of the stocks mentioned.
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What happened Shares of Apple (NASDAQ: AAPL) jumped 7.6% on Friday after the technology titan's sales and profits exceeded investors' expectations. iPhone revenue increased by 10% to $42.6 billion. And its earnings per share increased by 4%, to $1.29.
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18651.0
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2022-10-28 00:00:00 UTC
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US STOCKS-Wall Street surges to sharply higher close ahead of Fed week
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-surges-to-sharply-higher-close-ahead-of-fed-week
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Apple rebounds, Amazon sinks after earnings reports
Data shows strong consumer spending, ebbing wage growth
Third-quarter aggregate earnings estimates raised
Dow notches best weekly percentage gain since May
Indexes jump: Dow 2.59%, S&P 2.46%, Nasdaq 2.87%
Updates with closing prices
By Stephen Culp
NEW YORK, Oct 28 (Reuters) - A robust, broad-based rally sent Wall Street to a sharply higher close on Friday as encouraging economic data and a sunnier earnings outlook fueled investor risk appetite ahead of next week's much-anticipated two-day policy meeting of the Federal Reserve.
All major U.S. indexes ended the session up about 2.5% or more, with the S&P and the Nasdaq notching their second straight weekly gains. The blue-chip Dow posted its fourth consecutive Friday-to-Friday advance and its biggest weekly percentage gain since May.
"This has been one of the best months (so far) in the history of the Dow, suggesting the bear market likely ended," said Ryan Detrick, chief market strategist at Carson Group in Omaha. "Big monthly moves historically happen at the end of bear markets."
"This is the second Friday in a row we’ve seen aggressive buying suggesting investors are growing more comfortable holding over the weekend," Detrick added.
A 7.6% rebound in Apple IncAAPL.O helped soften the blow of the 6.8% plunge for Amazon.comAMZN.O shares, in the wake of the two market leaders' results.
Solid earnings beats from ChevronCVX.N, Exxon MobilXOM.N and other companies outside the tech and tech-adjacent megacap group have brightened aggregate earnings estimates for the quarter.
Analysts now see third-quarter S&P 500 earnings growth of 4.1%, up from 2.5% on Thursday, according to Refinitiv data.
"We’ve seen some high-profile misses from significant large-cap names," Detrick said. "But under the surface many of the smaller and midsize companies have been quite impressive with their earnings results."
On the economics front, the Commerce and Labor Departments released data that showed robust consumer spending and easing wage growth, respectively.
Financial markets have now priced in an 84.5% likelihood of a fifth consecutive 75 basis point interest rate hike at the conclusion of the Fed's Nov. 1-2 policy meeting, and a 51.4% chance the central bank will decelerate to 50 basis points in December, according to CME's FedWatch tool.
"The door is cracked open on the possibility that we might see a more dovish Fed come December’s policy meeting, whereas a month ago that door was locked and slammed shut," Detrick added.
The Dow Jones Industrial Average .DJIrose 828.52 points, or 2.59%, to 32,861.8, the S&P 500 .SPXgained 93.76 points, or 2.46%, to 3,901.06 and the Nasdaq Composite .IXICadded 309.78 points, or 2.87%, to 11,102.45.
Of the 11 major sectors of the S&P 500, all but consumer discretionary stocks .SPLRCD, weighed down by Amazon shares, ended the session green. Tech shares .SPLRCT enjoyed the largest percentage gain.
Third-quarter reporting season has passed the halfway point, with 263 of the companies in the S&P 500 having reported. Of those, 73% have beaten consensus expectations, according to Refinitiv.
Intel Corp INTC.O jumped 10.7% after cutting its spending forecast, while T-Mobile US Inc's TMUS.Osubscriber forecast hike sent its shares up 7.4%.
Twitter Inc was delisted from the New York Stock Exchange, closing the book on Tesla Inc TSLA.O chief Elon Musk's $44 billion purchase of the company.
Advancing issues outnumbered declining ones on the NYSE by a 2.87-to-1 ratio; on Nasdaq, a 2.12-to-1 ratio favored advancers.
The S&P 500 posted 32 new 52-week highs and eight new lows; the Nasdaq Composite recorded 117 new highs and 115 new lows.
Volume on U.S. exchanges was 11.26 billion shares, compared with the 11.53 billion average over the last 20 trading days.
(Reporting by Stephen Culp; additional reporting by Amruta Khandekar and Shreyashi Sanyal in Bengaluru; Editing by Cynthia Osterman)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A 7.6% rebound in Apple IncAAPL.O helped soften the blow of the 6.8% plunge for Amazon.comAMZN.O shares, in the wake of the two market leaders' results. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Apple rebounds, Amazon sinks after earnings reports Data shows strong consumer spending, ebbing wage growth Third-quarter aggregate earnings estimates raised Dow notches best weekly percentage gain since May Indexes jump: Dow 2.59%, S&P 2.46%, Nasdaq 2.87% Updates with closing prices By Stephen Culp NEW YORK, Oct 28 (Reuters) - A robust, broad-based rally sent Wall Street to a sharply higher close on Friday as encouraging economic data and a sunnier earnings outlook fueled investor risk appetite ahead of next week's much-anticipated two-day policy meeting of the Federal Reserve. On the economics front, the Commerce and Labor Departments released data that showed robust consumer spending and easing wage growth, respectively.
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A 7.6% rebound in Apple IncAAPL.O helped soften the blow of the 6.8% plunge for Amazon.comAMZN.O shares, in the wake of the two market leaders' results. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Apple rebounds, Amazon sinks after earnings reports Data shows strong consumer spending, ebbing wage growth Third-quarter aggregate earnings estimates raised Dow notches best weekly percentage gain since May Indexes jump: Dow 2.59%, S&P 2.46%, Nasdaq 2.87% Updates with closing prices By Stephen Culp NEW YORK, Oct 28 (Reuters) - A robust, broad-based rally sent Wall Street to a sharply higher close on Friday as encouraging economic data and a sunnier earnings outlook fueled investor risk appetite ahead of next week's much-anticipated two-day policy meeting of the Federal Reserve. "This has been one of the best months (so far) in the history of the Dow, suggesting the bear market likely ended," said Ryan Detrick, chief market strategist at Carson Group in Omaha.
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A 7.6% rebound in Apple IncAAPL.O helped soften the blow of the 6.8% plunge for Amazon.comAMZN.O shares, in the wake of the two market leaders' results. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Apple rebounds, Amazon sinks after earnings reports Data shows strong consumer spending, ebbing wage growth Third-quarter aggregate earnings estimates raised Dow notches best weekly percentage gain since May Indexes jump: Dow 2.59%, S&P 2.46%, Nasdaq 2.87% Updates with closing prices By Stephen Culp NEW YORK, Oct 28 (Reuters) - A robust, broad-based rally sent Wall Street to a sharply higher close on Friday as encouraging economic data and a sunnier earnings outlook fueled investor risk appetite ahead of next week's much-anticipated two-day policy meeting of the Federal Reserve. "This has been one of the best months (so far) in the history of the Dow, suggesting the bear market likely ended," said Ryan Detrick, chief market strategist at Carson Group in Omaha.
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A 7.6% rebound in Apple IncAAPL.O helped soften the blow of the 6.8% plunge for Amazon.comAMZN.O shares, in the wake of the two market leaders' results. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Apple rebounds, Amazon sinks after earnings reports Data shows strong consumer spending, ebbing wage growth Third-quarter aggregate earnings estimates raised Dow notches best weekly percentage gain since May Indexes jump: Dow 2.59%, S&P 2.46%, Nasdaq 2.87% Updates with closing prices By Stephen Culp NEW YORK, Oct 28 (Reuters) - A robust, broad-based rally sent Wall Street to a sharply higher close on Friday as encouraging economic data and a sunnier earnings outlook fueled investor risk appetite ahead of next week's much-anticipated two-day policy meeting of the Federal Reserve. The blue-chip Dow posted its fourth consecutive Friday-to-Friday advance and its biggest weekly percentage gain since May.
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2022-10-28 00:00:00 UTC
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Technology Sector Update for 10/28/2022: PINS, DAIO, APPF, AAPL
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-10-28-2022%3A-pins-daio-appf-aapl
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Technology stocks still were surging late in Friday trading, with the SPDR Technology Select Sector ETF (XLK) rising 4.4% while the Philadelphia Semiconductor Index was gaining 3.7% this afternoon.
In company news, Pinterest (PINS) climbed over 13% after the visual search engine company late Thursday reported improved Q3 results compared with year-ago levels and beating analyst estimates for the three months ended Sept. 30. It also said revenue for its current Q4 ending Dec. 31 is expected to "grow (in the) mid-single digits on a year-over-year percentage basis."
Data I/O Corporation (DAIO) added over 23% after late Thursday reporting Q3 net income of $0.10 per share, improving on a break-even quarter during the same quarter last year, while revenue for the data management and security equipment company grew 7% year-over-year to $7.2 million during the three months ended Sept. 30.
AppFolio (APPF) gained nearly 14% after the cloud services company reported a surprise Q3 profit along with revenue for the September quarter also exceeding Wall Street expectations. The company also raised its 2022 revenue forecast to a new range of $462 million to $466 million compared with its prior guidance looking for $455 million to $461 million.
Apple (AAPL) was posting a 7.7% advance - underpinning large Friday gains for the Dow Industrials and S&P 500 - after reporting improved net income for its fiscal Q4 earnings, topping analyst expectations, while sales for the iPhone and iPad manufacturer increased 8% over year-ago levels to $90.15 billion and also exceeded the Capital IQ consensus expecting $88.77 billion. Sales for its flagship smartphone rose 10% year-over-year to $42.6 billion "despite significant foreign exchange headwinds," according to Apple Chief Financial Officer Luca Maestri.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) was posting a 7.7% advance - underpinning large Friday gains for the Dow Industrials and S&P 500 - after reporting improved net income for its fiscal Q4 earnings, topping analyst expectations, while sales for the iPhone and iPad manufacturer increased 8% over year-ago levels to $90.15 billion and also exceeded the Capital IQ consensus expecting $88.77 billion. AppFolio (APPF) gained nearly 14% after the cloud services company reported a surprise Q3 profit along with revenue for the September quarter also exceeding Wall Street expectations. Sales for its flagship smartphone rose 10% year-over-year to $42.6 billion "despite significant foreign exchange headwinds," according to Apple Chief Financial Officer Luca Maestri.
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Apple (AAPL) was posting a 7.7% advance - underpinning large Friday gains for the Dow Industrials and S&P 500 - after reporting improved net income for its fiscal Q4 earnings, topping analyst expectations, while sales for the iPhone and iPad manufacturer increased 8% over year-ago levels to $90.15 billion and also exceeded the Capital IQ consensus expecting $88.77 billion. In company news, Pinterest (PINS) climbed over 13% after the visual search engine company late Thursday reported improved Q3 results compared with year-ago levels and beating analyst estimates for the three months ended Sept. 30. Data I/O Corporation (DAIO) added over 23% after late Thursday reporting Q3 net income of $0.10 per share, improving on a break-even quarter during the same quarter last year, while revenue for the data management and security equipment company grew 7% year-over-year to $7.2 million during the three months ended Sept. 30.
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Apple (AAPL) was posting a 7.7% advance - underpinning large Friday gains for the Dow Industrials and S&P 500 - after reporting improved net income for its fiscal Q4 earnings, topping analyst expectations, while sales for the iPhone and iPad manufacturer increased 8% over year-ago levels to $90.15 billion and also exceeded the Capital IQ consensus expecting $88.77 billion. In company news, Pinterest (PINS) climbed over 13% after the visual search engine company late Thursday reported improved Q3 results compared with year-ago levels and beating analyst estimates for the three months ended Sept. 30. Data I/O Corporation (DAIO) added over 23% after late Thursday reporting Q3 net income of $0.10 per share, improving on a break-even quarter during the same quarter last year, while revenue for the data management and security equipment company grew 7% year-over-year to $7.2 million during the three months ended Sept. 30.
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Apple (AAPL) was posting a 7.7% advance - underpinning large Friday gains for the Dow Industrials and S&P 500 - after reporting improved net income for its fiscal Q4 earnings, topping analyst expectations, while sales for the iPhone and iPad manufacturer increased 8% over year-ago levels to $90.15 billion and also exceeded the Capital IQ consensus expecting $88.77 billion. Technology stocks still were surging late in Friday trading, with the SPDR Technology Select Sector ETF (XLK) rising 4.4% while the Philadelphia Semiconductor Index was gaining 3.7% this afternoon. Data I/O Corporation (DAIO) added over 23% after late Thursday reporting Q3 net income of $0.10 per share, improving on a break-even quarter during the same quarter last year, while revenue for the data management and security equipment company grew 7% year-over-year to $7.2 million during the three months ended Sept. 30.
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2022-10-28 00:00:00 UTC
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US STOCKS-Wall Street surges at end of volatile week ahead of Fed meeting
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-surges-at-end-of-volatile-week-ahead-of-fed-meeting
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nan
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nan
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By Stephen Culp
NEW YORK, Oct 28 (Reuters) - A robust, broad-based rally sent Wall Street to a sharply higher close on Friday as encouraging economic data and a rosier earnings outlook boosted investor risk appetite ahead of next week's much-anticipated two-day policy meeting of the Federal Reserve.
All major U.S. indexes ended the session up more than 2%, with the S&P and the Nasdaq notching their second straight weekly gains. The blue-chip Dow posted its fourth consecutive Friday-to-Friday advance and its biggest weekly percentage gain since May.
"This has been one of the best months (so far) in the history of the Dow, suggesting the bear market likely ended," said Ryan Detrick, chief market strategist at Carson Group in Omaha. "Big monthly moves historically happen at the end of bear markets."
"This is the second Friday in a row we’ve seen aggressive buying suggesting investors are growing more comfortable holding over the weekend," Detrick added.
A rebound in Apple IncAAPL.O helped soften the blow of the plunge in Amazon.comAMZN.O shares, in the wake of the two market leaders' results posted after Thursday's closing bell.
Solid earnings beats from ChevronCVX.N, Exxon MobilXOM.N and other companies outside the tech and tech-adjacent megacap group have brightened aggregate earnings estimates for the quarter.
Analysts now see third-quarter S&P 500 earnings growth of 4.1%, up from 2.5% on Thursday, according to Refinitiv data.
"We’ve seen some high-profile misses from significant large-cap names," Detrick said. "But under the surface many of the smaller and midsize companies have been quite impressive with their earnings results."
On the economics front, the Commerce and Labor Departments released data that showed robust consumer spending and easing wage growth, respectively.
Financial markets have now priced in an 84% likelihood of a fifth consecutive 75 basis point interest rate hike at the conclusion of the Fed's Nov. 1-2 policy meeting, and a 48% chance the central bank will decelerate to 50 basis points in December, according to CME's FedWatch tool.
"The door is cracked open on the possibility that we might see a more dovish Fed come December’s policy meeting, whereas a month ago that door was locked and slammed shut," Detrick added.
According to preliminary data, the S&P 500 .SPX gained 94.08 points, or 2.47%, to end at 3,901.38 points, while the Nasdaq Composite .IXIC gained 307.93 points, or 2.87%, to 11,102.34. The Dow Jones Industrial Average .DJI rose 824.54 points, or 2.57%, to 32,857.82.
Third-quarter reporting season has passed the halfway point, with 263 of the companies in the S&P 500 having reported. Of those, 73% have beaten consensus expectations, according to Refinitiv.
Intel Corp INTC.O jumped after cutting its spending forecast, while T-Mobile US Inc's TMUS.Osubscriber forecast hike sent its shares up,
Twitter Inc was delisted from the New York Stock Exchange, closing the book on Tesla Inc TSLA.O chief Elon Musk's $44 billion purchase of the company.
(Reporting by Stephen Culp; additional reporting by Amruta Khandekar and Shreyashi Sanyal in Bengaluru; Editing by Cynthia Osterman)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A rebound in Apple IncAAPL.O helped soften the blow of the plunge in Amazon.comAMZN.O shares, in the wake of the two market leaders' results posted after Thursday's closing bell. By Stephen Culp NEW YORK, Oct 28 (Reuters) - A robust, broad-based rally sent Wall Street to a sharply higher close on Friday as encouraging economic data and a rosier earnings outlook boosted investor risk appetite ahead of next week's much-anticipated two-day policy meeting of the Federal Reserve. On the economics front, the Commerce and Labor Departments released data that showed robust consumer spending and easing wage growth, respectively.
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A rebound in Apple IncAAPL.O helped soften the blow of the plunge in Amazon.comAMZN.O shares, in the wake of the two market leaders' results posted after Thursday's closing bell. "This has been one of the best months (so far) in the history of the Dow, suggesting the bear market likely ended," said Ryan Detrick, chief market strategist at Carson Group in Omaha. According to preliminary data, the S&P 500 .SPX gained 94.08 points, or 2.47%, to end at 3,901.38 points, while the Nasdaq Composite .IXIC gained 307.93 points, or 2.87%, to 11,102.34.
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A rebound in Apple IncAAPL.O helped soften the blow of the plunge in Amazon.comAMZN.O shares, in the wake of the two market leaders' results posted after Thursday's closing bell. By Stephen Culp NEW YORK, Oct 28 (Reuters) - A robust, broad-based rally sent Wall Street to a sharply higher close on Friday as encouraging economic data and a rosier earnings outlook boosted investor risk appetite ahead of next week's much-anticipated two-day policy meeting of the Federal Reserve. Financial markets have now priced in an 84% likelihood of a fifth consecutive 75 basis point interest rate hike at the conclusion of the Fed's Nov. 1-2 policy meeting, and a 48% chance the central bank will decelerate to 50 basis points in December, according to CME's FedWatch tool.
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A rebound in Apple IncAAPL.O helped soften the blow of the plunge in Amazon.comAMZN.O shares, in the wake of the two market leaders' results posted after Thursday's closing bell. Analysts now see third-quarter S&P 500 earnings growth of 4.1%, up from 2.5% on Thursday, according to Refinitiv data. According to preliminary data, the S&P 500 .SPX gained 94.08 points, or 2.47%, to end at 3,901.38 points, while the Nasdaq Composite .IXIC gained 307.93 points, or 2.87%, to 11,102.34.
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2022-10-28 00:00:00 UTC
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US STOCKS-Wall Street jumps about 2% on upbeat Apple results, hopes of slowing rate hikes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-jumps-about-2-on-upbeat-apple-results-hopes-of-slowing-rate-hikes
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By Amruta Khandekar and Shreyashi Sanyal
Oct 28 (Reuters) - Wall Street indexes jumped on Friday, buoyed by upbeat results from Apple, with investors hoping that some signs of economic weakness would lead to the U.S. Federal Reserve slowing down the pace of its interest rate hikes soon.
Data showed U.S. consumer spending rose more than expected in September, but private industry wage growth slowed considerably in the third quarter and underlying inflation still remained high.
The indicators did little to change expectations of a 75 basis point rate hike by the Fed next week, but investors are pinning their hopes on the central bank taking a less aggressive approach by delivering a 50 bps hike in December.
Meanwhile, Apple Inc AAPL.O shares jumped 8% as the iPhone maker's fourth-quarter results showed some resilience though it cautioned revenue growth could see some pressure in the December quarter.
"Investors are convinced that the Fed will say or do something that is encouraging next week," said Sam Stovall, chief investment strategist at CFRA Research in New York.
With majority of the big S&P 500 companies having already reported, investors are hopeful that the worst is now over, according to Stovall.
Apple's results were the only bright spot among megacap earnings, with other behemoths such as Microsoft Corp MSFT.O, Meta Platforms Inc META.O and Google-parent Alphabet Inc GOOGL.O disappointing investors.
Amazon.com Inc AMZN.O also forecast a slowdown in sales growth for the holiday season, sending its shares down 8.6%.
Still, shares of Microsoft and Alphabet were up about 2% each in afternoon trade, while the S&P 500 .SPX and the Nasdaq .IXIC were set to post a second straight week of gains.
The Dow Jones Industrial Average .DJI headed for its fourth consecutive week of gains.
Oil-and-gas giants Exxon Mobil Corp XOM.N and Chevron Corp CVX.Nblew past quarterly profit expectations, boosted by surging energy costs. Their shares were up 2.2% and 0.6%, respectively.
With more than half of the companies in the S&P 500 having reported, 73% of them have beaten consensus estimates. Analysts now see aggregate S&P earnings growth of 4.1%, up from 2.5% a day ago, according to Refinitiv data.
At 1:05 p.m. ET, the Dow Jones Industrial Average .DJI was up 714.44 points, or 2.23%, at 32,747.72, the S&P 500 .SPX was up 75.25 points, or 1.98%, at 3,882.55, and the Nasdaq Composite .IXIC was up 242.43 points, or 2.25%, at 11,035.10.
Intel Corp INTC.O jumped 10.0% after the chipmaker cut its capital spending forecast, while T-Mobile US Inc TMUS.O rose 6.8% after raising its annual forecast for wireless subscriber additions.
Twitter TWTR.N was delisted from the New York Stock Exchange after Tesla Inc TSLA.O chief Elon Musk completed his $44 billion acquisition of the social media company.
Advancing issues outnumbered decliners for a 2.26-to-1 ratio on the NYSE and a 1.97-to-1 ratio on the Nasdaq.
The S&P index recorded 26 new 52-week highs and eight new lows, while the Nasdaq recorded 92 new highs and 95 new lows.
(Reporting by Amruta Khandekar and Shreyashi Sanyal in Bengaluru; Additional reporting by Sruthi Shankar; Editing by Sriraj Kalluvila and Shounak Dasgupta)
((Amruta.Khandekar@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Meanwhile, Apple Inc AAPL.O shares jumped 8% as the iPhone maker's fourth-quarter results showed some resilience though it cautioned revenue growth could see some pressure in the December quarter. By Amruta Khandekar and Shreyashi Sanyal Oct 28 (Reuters) - Wall Street indexes jumped on Friday, buoyed by upbeat results from Apple, with investors hoping that some signs of economic weakness would lead to the U.S. Federal Reserve slowing down the pace of its interest rate hikes soon. Data showed U.S. consumer spending rose more than expected in September, but private industry wage growth slowed considerably in the third quarter and underlying inflation still remained high.
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Meanwhile, Apple Inc AAPL.O shares jumped 8% as the iPhone maker's fourth-quarter results showed some resilience though it cautioned revenue growth could see some pressure in the December quarter. The Dow Jones Industrial Average .DJI headed for its fourth consecutive week of gains. The S&P index recorded 26 new 52-week highs and eight new lows, while the Nasdaq recorded 92 new highs and 95 new lows.
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Meanwhile, Apple Inc AAPL.O shares jumped 8% as the iPhone maker's fourth-quarter results showed some resilience though it cautioned revenue growth could see some pressure in the December quarter. By Amruta Khandekar and Shreyashi Sanyal Oct 28 (Reuters) - Wall Street indexes jumped on Friday, buoyed by upbeat results from Apple, with investors hoping that some signs of economic weakness would lead to the U.S. Federal Reserve slowing down the pace of its interest rate hikes soon. The indicators did little to change expectations of a 75 basis point rate hike by the Fed next week, but investors are pinning their hopes on the central bank taking a less aggressive approach by delivering a 50 bps hike in December.
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Meanwhile, Apple Inc AAPL.O shares jumped 8% as the iPhone maker's fourth-quarter results showed some resilience though it cautioned revenue growth could see some pressure in the December quarter. By Amruta Khandekar and Shreyashi Sanyal Oct 28 (Reuters) - Wall Street indexes jumped on Friday, buoyed by upbeat results from Apple, with investors hoping that some signs of economic weakness would lead to the U.S. Federal Reserve slowing down the pace of its interest rate hikes soon. Data showed U.S. consumer spending rose more than expected in September, but private industry wage growth slowed considerably in the third quarter and underlying inflation still remained high.
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2022-10-28 00:00:00 UTC
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Daily Dividend Report: AAPL,BKR,ABBV,ROK,WBA
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https://www.nasdaq.com/articles/daily-dividend-report%3A-aaplbkrabbvrokwba
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Apple's board of directors has declared a cash dividend of $0.23 per share of the Company's common stock. The dividend is payable on November 10, 2022 to shareholders of record as of the close of business on November 7, 2022.
Baker Hughes announced today that the Baker Hughes Board of Directors declared an increased quarterly cash dividend of $.19 per share of Class A common stock payable on November 18, 2022, to holders of record on November 7, 2022. The dividend increase reflects a 5.5% growth rate, or $.01, over the previous quarter's dividend.
AbbVie is announcing today that its board of directors declared an increase in the company's quarterly cash dividend from $1.41 per share to $1.48 per share beginning with the dividend payable on February 15, 2023 to shareholders of record as of January 13, 2023. This reflects an increase of approximately 5.0 percent, continuing AbbVie's strong commitment to returning cash to shareholders through a growing dividend. Since the company's inception in 2013, AbbVie has increased its quarterly dividend by 270 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years.
The Board of Directors of Rockwell Automation, following its regular review, today declared a quarterly dividend of $1.18 per share on its outstanding common stock, payable Dec. 12, 2022, to shareowners of record at the close of business on Nov. 14, 2022. This increase from last quarter's dividend of $1.12 reflects continued strong operating performance and reinforces the company's commitment to returning profits to shareowners.
Walgreens Boots Alliance today announced that its board of directors has declared a quarterly dividend of 48 cents per share, unchanged from the previous quarter and an increase of 0.5 percent from the year-ago quarter. The dividend is payable on December 12, 2022 to stockholders of record on November 15, 2022. Walgreens Boots Alliance and its predecessor company, Walgreen, have paid a dividend in 360 straight quarters, more than 90 years, and have raised the dividend for 47 consecutive years.
VIDEO: Daily Dividend Report: AAPL,BKR,ABBV,ROK,WBA
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Daily Dividend Report: AAPL,BKR,ABBV,ROK,WBA The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. This reflects an increase of approximately 5.0 percent, continuing AbbVie's strong commitment to returning cash to shareholders through a growing dividend. The Board of Directors of Rockwell Automation, following its regular review, today declared a quarterly dividend of $1.18 per share on its outstanding common stock, payable Dec. 12, 2022, to shareowners of record at the close of business on Nov. 14, 2022.
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VIDEO: Daily Dividend Report: AAPL,BKR,ABBV,ROK,WBA The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Baker Hughes announced today that the Baker Hughes Board of Directors declared an increased quarterly cash dividend of $.19 per share of Class A common stock payable on November 18, 2022, to holders of record on November 7, 2022. AbbVie is announcing today that its board of directors declared an increase in the company's quarterly cash dividend from $1.41 per share to $1.48 per share beginning with the dividend payable on February 15, 2023 to shareholders of record as of January 13, 2023.
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VIDEO: Daily Dividend Report: AAPL,BKR,ABBV,ROK,WBA The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Baker Hughes announced today that the Baker Hughes Board of Directors declared an increased quarterly cash dividend of $.19 per share of Class A common stock payable on November 18, 2022, to holders of record on November 7, 2022. AbbVie is announcing today that its board of directors declared an increase in the company's quarterly cash dividend from $1.41 per share to $1.48 per share beginning with the dividend payable on February 15, 2023 to shareholders of record as of January 13, 2023.
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VIDEO: Daily Dividend Report: AAPL,BKR,ABBV,ROK,WBA The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Baker Hughes announced today that the Baker Hughes Board of Directors declared an increased quarterly cash dividend of $.19 per share of Class A common stock payable on November 18, 2022, to holders of record on November 7, 2022. AbbVie is announcing today that its board of directors declared an increase in the company's quarterly cash dividend from $1.41 per share to $1.48 per share beginning with the dividend payable on February 15, 2023 to shareholders of record as of January 13, 2023.
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Blue Chip Stocks To Invest In Right Now? 2 In Focus
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https://www.nasdaq.com/articles/blue-chip-stocks-to-invest-in-right-now-2-in-focus
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Blue chip stocks are a type of investment that refers to stocks that are from large and well-established companies. These companies have a history of riding out market fluctuations and maintaining steady growth. As a result, blue chip stocks are often considered to be a safer investment than stocks from smaller or less established companies.
For example, some of the most well-known blue chip stocks include Apple (NASDAQ: AAPL), Coca-Cola (NYSE: KO), and IBM (NYSE: IBM). While there is no guarantee that any stock will always maintain its value, blue chip stocks tend to be more stable than other types of investments. As a result, they can be a good choice for investors who are looking for long-term growth. Considering this, here are two trending blue chip stocks to watch in the stock market today.
Blue Chip Stocks To Watch Now
Nike Inc. (NYSE: NKE)
Target Corporation (NYSE: TGT)
1. Nike (NKE Stock)
Nike Inc. (NKE) is one of the most well-known sports brands in the world. In brief, Nike designs develop, and manufacture a wide range of sports equipment, including shoes, shirts, balls, and more. Nike also sponsors many professional athletes, including some of the biggest names in basketball, football, and other sports.
NKE Recent Stock News
Late last month, Nike announced its Q1 2023 financial results. Diving in, the company posted 1st quarter 2023 earnings of $0.93 per share, and revenue of $12.7 billion. This is compared with analysts’ consensus earnings estimate of $0.91 per share along with revenue of $12.3 billion for the first quarter of 2023. What’s more, the company reported a 3.6% increase in revenue on a year-over-year basis.
Meanwhile, during Nike’s conference call, the company said they now project fiscal 2023 revenue of approximately $47.18 billion to $49.75 billion. For contest, this is a lower outlook than what Nike previously announced for full-year 2023 revenue of approximately $51.38 billion.
John Donahoe, President and CEO, NIKE, Inc. “Our competitive advantages, including the strength of our brand, deep consumer connections and pipeline of innovative product, continue to prove that our strategy is working. We expect our unrelenting focus on better serving the consumer to continue to fuel growth and create value like only NIKE can.“
NKE Stock Chart
On Friday afternoon, shares of Nike stock are trading up by 2.56% at $92.85 per share.
Source: TD Ameritrade TOS
[Read More] 3 Cyber Security Stocks For Your Late-October 2022 Watchlist
2. Target Corporation (TGT Stock)
Target Corporation (TGT) is an American retail giant that offers a wide range of products, from groceries to clothing to electronics. Moreover, Target is known for its competitive prices, and its slogan “Expect More. Pay Less.” is often used to attract shoppers. Target operates more than 1,800 stores across the United States, and it also has an online presence.
TGT Recent Stock News
On Wednesday of this week, Target announced that they will be expanding their relationship with cosnsumer retail giant Apple. In detail, Target will be more than tripling its Apple at Target locations, with more than than 150 locations. Additionally, Target Circle members will now have access to a 4-month free trial of Apple Fitness+, as well as other special offers for Apple products.
Furthermore, Jill Sando, EVP and chief merchandising officer, at Target commented, “For years, Target has been a destination for Apple products. Now we are excited to deepen our collaboration with Apple so even more guests can access the exceptional Apple at Target shop-in-shop experience. Through Target Circle, our popular free-to-join loyalty program, we’re also giving our guests the opportunity to try services like Apple Fitness+ for free, and with no purchase required.“
TGT Stock Chart
During Friday’s lunch time trading session, shares of Target stock are down modestly by 0.19% on the day, trading at $166.77 a share.
Source: TD Ameritrade TOS
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For example, some of the most well-known blue chip stocks include Apple (NASDAQ: AAPL), Coca-Cola (NYSE: KO), and IBM (NYSE: IBM). John Donahoe, President and CEO, NIKE, Inc. “Our competitive advantages, including the strength of our brand, deep consumer connections and pipeline of innovative product, continue to prove that our strategy is working. TGT Recent Stock News On Wednesday of this week, Target announced that they will be expanding their relationship with cosnsumer retail giant Apple.
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For example, some of the most well-known blue chip stocks include Apple (NASDAQ: AAPL), Coca-Cola (NYSE: KO), and IBM (NYSE: IBM). Blue Chip Stocks To Watch Now Nike Inc. (NYSE: NKE) Target Corporation (NYSE: TGT) 1. Target Corporation (TGT Stock) Target Corporation (TGT) is an American retail giant that offers a wide range of products, from groceries to clothing to electronics.
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For example, some of the most well-known blue chip stocks include Apple (NASDAQ: AAPL), Coca-Cola (NYSE: KO), and IBM (NYSE: IBM). Blue Chip Stocks To Watch Now Nike Inc. (NYSE: NKE) Target Corporation (NYSE: TGT) 1. We expect our unrelenting focus on better serving the consumer to continue to fuel growth and create value like only NIKE can.“ NKE Stock Chart On Friday afternoon, shares of Nike stock are trading up by 2.56% at $92.85 per share.
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For example, some of the most well-known blue chip stocks include Apple (NASDAQ: AAPL), Coca-Cola (NYSE: KO), and IBM (NYSE: IBM). Blue Chip Stocks To Watch Now Nike Inc. (NYSE: NKE) Target Corporation (NYSE: TGT) 1. We expect our unrelenting focus on better serving the consumer to continue to fuel growth and create value like only NIKE can.“ NKE Stock Chart On Friday afternoon, shares of Nike stock are trading up by 2.56% at $92.85 per share.
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2022-10-28 00:00:00 UTC
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Stocks Still Eye Weekly Wins Despite Big Tech Bust
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AAPL
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https://www.nasdaq.com/articles/stocks-still-eye-weekly-wins-despite-big-tech-bust
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nan
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Big Tech earnings were the talk of the town this week, and determined much of Wall Street's price action. Cooling Treasury yields also influenced stocks, with the Dow Jones Industrial Average (DJI) notching its best close since Sept. 12, and stringing together five-straight wins. A better-than-expected gross domestic product (GDP) boosted the blue-chip index as well. Meanwhile, the Nasdaq Composite Index (IXIC) and S&P 500 Index (SPX) cut their three-day rallies short, after Alphabet's (GOOGL) earnings miss and Microsoft's (MSFT) sales warning.
Plenty of economic data rolled in as well. Some traders viewed a turn lower in consumer confidence for September and a sharp drop in home prices for August as a sign that the Federal Reserve could soon back off its hawkish policy. Manufacturing and services data disappointed, while unsurprising inflation and steady consumer spending data helped Wall Street brush off dismal quarterly results from Amazon.com (AMZN) on Friday. At the time of this writing, the three major benchmarks were eyeing big weekly wins.
Top Big Tech & Blue Chip Results
Tech and blue-chip stocks experienced varying levels of success in the confessional this week. As previously alluded to, MSFT forecast a drop in personal computer sales, and GOOGL was pacing for its worst day since March 2020 after a third-quarter earnings and revenue miss. AMZN hit a two-year low after predicting slowing sales over the holidays, and Meta Platforms (META) fell to its lowest level in seven years after issuing a weaker-than-expected current-quarter outlook. Apple (AAPL) managed to buck the Big Tech bust, however, after scoring a revenue record.
As far as Dow members are concerned, Caterpillar (CAT) eyed its best month since 2009, after revealing it benefitted from rising equipment and energy prices. Coca-Cola (KO) lifted its full-year profit and revenue guidance after earnings, and call traders took notice. Finally, Boeing's (BA) dismal quarterly results were made worse by the fact that the stock is running into a surefire bearish trendline.
On Analysts' Radars
Before META's post-earnings beating, BofA Global Research downgraded the equity to "neutral", calling its move to Reels on Instagram and Facebook as a "potential negative for gross margins and long-term competition." Meanwhile, Jefferies noted that Williams-Sonoma (WSM) is a "poster child" for retailers that over-earned during the pandemic.
It wasn't all doom and gloom, though -- J.P. Morgan Securities said Wolfspeed (WOLF) could jump 50% or more, and Ross Stores (ROST) was called one of the "best ways" to play the retail sector. Weber (WEBR) received a bull note as well, after BDT Capital Partners offered to buy the grill maker for about $1.8 billion.
Fed Announcement to Jumpstart November
October comes to a close next week, and November kicks off at full speed. Both the S&P U.S. manufacturing purchasing managers' index (PMI) and the Institute for Supply Management (ISM) manufacturing index are due out, in addition to the ADP employment report and nonfarm payrolls. Plus, the Federal Open Market Committee (FOMC) is set to make a big announcement. Some major reports are also on tap, with earnings results to come from Airbnb (ABNB), CVS Health (CVS), DoorDash (DASH), Dropbox (DBX), Etsy (ETSY), Eli Lilly (LLY), PayPal (PYPL), Pfizer (PFE), and Starbucks (SBUX), to name a few. A risk-on phase may be imminent, though, and now is a good time to prepare for Election Day.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) managed to buck the Big Tech bust, however, after scoring a revenue record. Some traders viewed a turn lower in consumer confidence for September and a sharp drop in home prices for August as a sign that the Federal Reserve could soon back off its hawkish policy. As previously alluded to, MSFT forecast a drop in personal computer sales, and GOOGL was pacing for its worst day since March 2020 after a third-quarter earnings and revenue miss.
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Apple (AAPL) managed to buck the Big Tech bust, however, after scoring a revenue record. Meanwhile, the Nasdaq Composite Index (IXIC) and S&P 500 Index (SPX) cut their three-day rallies short, after Alphabet's (GOOGL) earnings miss and Microsoft's (MSFT) sales warning. Manufacturing and services data disappointed, while unsurprising inflation and steady consumer spending data helped Wall Street brush off dismal quarterly results from Amazon.com (AMZN) on Friday.
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Apple (AAPL) managed to buck the Big Tech bust, however, after scoring a revenue record. Meanwhile, the Nasdaq Composite Index (IXIC) and S&P 500 Index (SPX) cut their three-day rallies short, after Alphabet's (GOOGL) earnings miss and Microsoft's (MSFT) sales warning. Manufacturing and services data disappointed, while unsurprising inflation and steady consumer spending data helped Wall Street brush off dismal quarterly results from Amazon.com (AMZN) on Friday.
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Apple (AAPL) managed to buck the Big Tech bust, however, after scoring a revenue record. Big Tech earnings were the talk of the town this week, and determined much of Wall Street's price action. Meanwhile, the Nasdaq Composite Index (IXIC) and S&P 500 Index (SPX) cut their three-day rallies short, after Alphabet's (GOOGL) earnings miss and Microsoft's (MSFT) sales warning.
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Apple (AAPL) Q4 Earnings Top Estimates, Revenues Increase Y/Y
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https://www.nasdaq.com/articles/apple-aapl-q4-earnings-top-estimates-revenues-increase-y-y
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Apple AAPL reported fourth-quarter fiscal 2022 earnings of $1.29 per share, which beat the Zacks Consensus Estimate by 2.38% and our estimate of $1.28 per share.
The reported figure increased 4% year over year.
Net sales increased 8.1% year over year to $90.15 billion, which beat the Zacks Consensus Estimate by 1.90% and our estimate of $88.22 billion. Unfavorable forex hurt revenues by more than 600 basis points (bps).
iPhone sales increased 9.7% from the year-ago quarter to $42.63 billion and accounted for 47.3% of total sales. However, the figure missed the consensus mark of $42.76 billion.
Our estimate for fiscal fourth-quarter iPhone sales was pegged at $45.30 billion.
Apple Inc. Price, Consensus and EPS Surprise
Apple Inc. price-consensus-eps-surprise-chart | Apple Inc. Quote
iPhone sales were driven by strong demand for the iPhone 13 family of devices.
Services revenues grew 5% from the year-ago quarter to $19.19 billion and accounted for 21.3% of sales. The figure lagged the Zacks Consensus Estimate by 2.76%.
Our estimate for fiscal fourth-quarter Services revenues was pegged at $19.14 billion.
Apple now has more than 900 million paid subscribers across its Services portfolio, up 40 million sequentially and 155 million year over year.
Strong Americas & Rest of Asia Pacific Sales Aid Growth
Americas sales increased 8.1% year over year to $39.81 billion and accounted for 44.2% of total sales. The figure beat the Zacks Consensus Estimate by 2.35% and our estimate of $38.14 billion.
Europe generated $22.80 billion in sales, up 9.6% on a year-over-year basis. The region accounted for 25.3% of total sales. Europe’s sales beat the consensus mark by 4.58% and our estimate of $21.20 billion.
Greater China sales increased 6.2% from the year-ago quarter to $15.47 billion, accounting for 17.2% of total sales. The figure lagged the consensus mark by 3.81% and our estimate of $16.48 billion.
Japan’s sales of $5.70 billion missed the Zacks Consensus Estimate by 8.80% and our estimate of $6.05 billion. Japan’s sales decreased 4.9% year over year, accounting for 6.3% of total sales.
Rest of the Asia Pacific generated sales of $6.37 billion, up 22.7% year over year. The region accounted for 7.1% of total sales. The figure beat the consensus mark by 6.73% and our estimate of $6.35 billion.
Top-Line Details
Product sales (78.7% of sales) increased 9% year over year to $70.96 billion. Non-iPhone revenues (iPad, Mac and Wearables) increased 8.1% on a combined basis.
iPad sales of $7.17 billion declined 13.1% year over year and accounted for 8% of total sales. The figure missed the consensus mark by 5.89% and our estimate of $7.13 billion.
Mac sales of $11.51 billion increased 25.4% from the year-ago quarter and accounted for 12.8% of total sales. The figure beat the consensus mark by 27.73% and our estimate of $8.69 billion.
Wearables, Home and Accessories sales increased 9.8% year over year to $9.65 billion and accounted for 10.7% of total sales. The figure beat the Zacks Consensus Estimate by 4.46% and our estimate of $7.96 billion.
Apple Watch’s adoption rate continues to grow rapidly. More than two-thirds of the customers who purchased the Apple Watch during the reported quarter were first-time customers.
Operating Details
Gross margin of 42.3% expanded 10 basis points (bps) on a year-over-year basis.
However, the gross margin decreased 40 bps sequentially due to unfavorable forex.
Products’ gross margin contracted 190 bps sequentially to 34.5% due to unfavorable forex and revenues mix.
Services’ gross margin was 71.5%, down 110 bps sequentially, due to a different mix and unfavorable forex.
Operating expenses rose 15.9% year over year to $13.20 billion due to higher research & development and selling, general & administrative expenses, which increased 17.1% and 14.7%, respectively.
Operating margin contracted 90 bps on a year-over-year basis to 27.6%.
Balance Sheet
As of Sep 24, 2022, cash & marketable securities were $169.11 billion compared with $179.31 billion as of Jun 25, 2022.
Term debt, as of Sep 24, 2022, was $110.09 billion, up from $108.71 billion as of Jun 25, 2022.
Apple returned $28 billion in the reported quarter through dividend payouts ($3.7 billion) and share repurchases ($25.2 billion).
Guidance
Apple did not provide revenue guidance for the first quarter of fiscal 2023.
It expects year-over-year revenue growth to decelerate during the fiscal first quarter compared with the fiscal fourth quarter due to unfavorable forex of roughly 10%.
Moreover, Mac revenues are expected to be negatively impacted by forex. Apple expects Mac revenues to decline substantially year-over-year during the December quarter.
Services revenue growth is expected to be negatively impacted by challenging macroeconomic conditions, unfavorable forex, as well as weakness in digital advertising and gaming.
Gross margin is expected between 42.5% and 43.5% in the fiscal first quarter. Operating expenses are expected between $14.7 billion and $14.9 billion.
Zacks Rank & Stocks to Consider
Currently, Apple has a Zacks Rank #3 (Hold).
Apple shares have outperformed the Zacks Computer & Technology sector year to date. While AAPL shares have lost 19.3%, the Computer & Technology sector declined 34.7%.
Airbnb ABNB, Super Micro Computer SMCI and Blackbaud BLKB are some better-ranked stocks that investors can consider in the broader sector. Super Micro sports a Zacks Rank #1 (Strong Buy), while Airbnb and Blackbaud carry a Zacks Rank #2 (Buy). All three stocks are set to report their quarterly results on Nov 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Airbnb and Blackbaud are down 32.2% and 32.8% year to date, respectively. Super Micro is up 52.5% over the same time frame.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Apple Inc. (AAPL): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL reported fourth-quarter fiscal 2022 earnings of $1.29 per share, which beat the Zacks Consensus Estimate by 2.38% and our estimate of $1.28 per share. While AAPL shares have lost 19.3%, the Computer & Technology sector declined 34.7%. Apple Inc. (AAPL): Free Stock Analysis Report
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Apple AAPL reported fourth-quarter fiscal 2022 earnings of $1.29 per share, which beat the Zacks Consensus Estimate by 2.38% and our estimate of $1.28 per share. While AAPL shares have lost 19.3%, the Computer & Technology sector declined 34.7%. Apple Inc. (AAPL): Free Stock Analysis Report
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Apple AAPL reported fourth-quarter fiscal 2022 earnings of $1.29 per share, which beat the Zacks Consensus Estimate by 2.38% and our estimate of $1.28 per share. While AAPL shares have lost 19.3%, the Computer & Technology sector declined 34.7%. Apple Inc. (AAPL): Free Stock Analysis Report
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Apple AAPL reported fourth-quarter fiscal 2022 earnings of $1.29 per share, which beat the Zacks Consensus Estimate by 2.38% and our estimate of $1.28 per share. While AAPL shares have lost 19.3%, the Computer & Technology sector declined 34.7%. Apple Inc. (AAPL): Free Stock Analysis Report
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18659.0
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2022-10-28 00:00:00 UTC
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Friday Sector Leaders: Computers, Credit Services & Lending Stocks
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AAPL
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https://www.nasdaq.com/articles/friday-sector-leaders%3A-computers-credit-services-lending-stocks
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nan
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nan
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In trading on Friday, computers shares were relative leaders, up on the day by about 2.4%. Leading the group were shares of Apple, up about 7.7% and shares of Diebold Nixdorf up about 7.7% on the day.
Also showing relative strength are credit services & lending shares, up on the day by about 2.3% as a group, led by PennyMac Financial Services, trading higher by about 13.7% and Flagstar Bancorp, trading higher by about 13.6% on Friday.
VIDEO: Friday Sector Leaders: Computers, Credit Services & Lending Stocks
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, computers shares were relative leaders, up on the day by about 2.4%. Also showing relative strength are credit services & lending shares, up on the day by about 2.3% as a group, led by PennyMac Financial Services, trading higher by about 13.7% and Flagstar Bancorp, trading higher by about 13.6% on Friday. VIDEO: Friday Sector Leaders: Computers, Credit Services & Lending Stocks The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, computers shares were relative leaders, up on the day by about 2.4%. Also showing relative strength are credit services & lending shares, up on the day by about 2.3% as a group, led by PennyMac Financial Services, trading higher by about 13.7% and Flagstar Bancorp, trading higher by about 13.6% on Friday. VIDEO: Friday Sector Leaders: Computers, Credit Services & Lending Stocks The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, computers shares were relative leaders, up on the day by about 2.4%. Also showing relative strength are credit services & lending shares, up on the day by about 2.3% as a group, led by PennyMac Financial Services, trading higher by about 13.7% and Flagstar Bancorp, trading higher by about 13.6% on Friday. VIDEO: Friday Sector Leaders: Computers, Credit Services & Lending Stocks The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, computers shares were relative leaders, up on the day by about 2.4%. Leading the group were shares of Apple, up about 7.7% and shares of Diebold Nixdorf up about 7.7% on the day. Also showing relative strength are credit services & lending shares, up on the day by about 2.3% as a group, led by PennyMac Financial Services, trading higher by about 13.7% and Flagstar Bancorp, trading higher by about 13.6% on Friday.
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18660.0
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2022-10-28 00:00:00 UTC
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Technology Sector Update for 10/28/2022: DAIO, APPF, AAPL
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-10-28-2022%3A-daio-appf-aapl
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nan
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nan
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Technology stocks were surging during Friday trading, with the SPDR Technology Select Sector ETF (XLK) rising 4.1% while the Philadelphia Semiconductor Index was gaining 3.2% this afternoon.
In company news, Data I/O Corporation (DAIO) added nearly 24% after late Thursday reporting Q3 net income of $0.10 per share, improving on a break-even quarter during the same quarter last year, while revenue for the data management and security equipment company grew 7% year-over-year to $7.2 million during the three months ended Sept. 30.
AppFolio (APPF) gained 13% after the cloud services company reported a surprise Q3 profit along with revenue for the September quarter also exceeding Wall Street expectations. The company also raised its FY22 revenue forecast to a new range of $462 million to $466 million compared with its prior guidance looking for $455 million to $461 million.
Apple (AAPL) was posting a 8.2% advance - underpinning large Friday gains for the Dow Industrials and S&P 500 - after reporting improved net income for its fiscal Q4 earnings, topping analyst expectations, while sales for the iPhone and iPad manufacturer increased 8% over year-ago levels to $90.15 billion and also exceeded the Capital IQ consensus expecting $88.77 billion. Sales for its flagship smartphone rose 10% year-over-year to $42.6 billion "despite significant foreign exchange headwinds," according to Apple Chief Financial Officer Luca Maestri.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) was posting a 8.2% advance - underpinning large Friday gains for the Dow Industrials and S&P 500 - after reporting improved net income for its fiscal Q4 earnings, topping analyst expectations, while sales for the iPhone and iPad manufacturer increased 8% over year-ago levels to $90.15 billion and also exceeded the Capital IQ consensus expecting $88.77 billion. AppFolio (APPF) gained 13% after the cloud services company reported a surprise Q3 profit along with revenue for the September quarter also exceeding Wall Street expectations. Sales for its flagship smartphone rose 10% year-over-year to $42.6 billion "despite significant foreign exchange headwinds," according to Apple Chief Financial Officer Luca Maestri.
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Apple (AAPL) was posting a 8.2% advance - underpinning large Friday gains for the Dow Industrials and S&P 500 - after reporting improved net income for its fiscal Q4 earnings, topping analyst expectations, while sales for the iPhone and iPad manufacturer increased 8% over year-ago levels to $90.15 billion and also exceeded the Capital IQ consensus expecting $88.77 billion. In company news, Data I/O Corporation (DAIO) added nearly 24% after late Thursday reporting Q3 net income of $0.10 per share, improving on a break-even quarter during the same quarter last year, while revenue for the data management and security equipment company grew 7% year-over-year to $7.2 million during the three months ended Sept. 30. AppFolio (APPF) gained 13% after the cloud services company reported a surprise Q3 profit along with revenue for the September quarter also exceeding Wall Street expectations.
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Apple (AAPL) was posting a 8.2% advance - underpinning large Friday gains for the Dow Industrials and S&P 500 - after reporting improved net income for its fiscal Q4 earnings, topping analyst expectations, while sales for the iPhone and iPad manufacturer increased 8% over year-ago levels to $90.15 billion and also exceeded the Capital IQ consensus expecting $88.77 billion. In company news, Data I/O Corporation (DAIO) added nearly 24% after late Thursday reporting Q3 net income of $0.10 per share, improving on a break-even quarter during the same quarter last year, while revenue for the data management and security equipment company grew 7% year-over-year to $7.2 million during the three months ended Sept. 30. The company also raised its FY22 revenue forecast to a new range of $462 million to $466 million compared with its prior guidance looking for $455 million to $461 million.
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Apple (AAPL) was posting a 8.2% advance - underpinning large Friday gains for the Dow Industrials and S&P 500 - after reporting improved net income for its fiscal Q4 earnings, topping analyst expectations, while sales for the iPhone and iPad manufacturer increased 8% over year-ago levels to $90.15 billion and also exceeded the Capital IQ consensus expecting $88.77 billion. Technology stocks were surging during Friday trading, with the SPDR Technology Select Sector ETF (XLK) rising 4.1% while the Philadelphia Semiconductor Index was gaining 3.2% this afternoon. In company news, Data I/O Corporation (DAIO) added nearly 24% after late Thursday reporting Q3 net income of $0.10 per share, improving on a break-even quarter during the same quarter last year, while revenue for the data management and security equipment company grew 7% year-over-year to $7.2 million during the three months ended Sept. 30.
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18661.0
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2022-10-28 00:00:00 UTC
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US STOCKS-Wall Street jumps on solid earnings, encouraging data ahead of 'Fed week'
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-jumps-on-solid-earnings-encouraging-data-ahead-of-fed-week
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Apple rebounds, Amazon sinks after earnings reports
Data shows strong consumer spending, ebbing wage growth
Third quarter aggregate earnings estimates raised
Twitter delisted as Musk purchase complete
Indexes up: Dow 2.34%, S&P 2.10%, Nasdaq 2.37%
New throughout, adds NEW YORK dateline, changes byline
By Stephen Culp
NEW YORK, Oct 28 (Reuters) - A robust, broad-based rally sent Wall Street stocks surging on Friday, as encouraging economic data and a rosier earnings outlook buoyed investor risk appetite ahead of next week's much-anticipated two-day policy meeting of the Federal Reserve.
All major U.S. indexes jumped more than 2%, with the S&P and the Nasdaq setting a course for their second straight weekly gains. The blue-chip Dow was set for its fourth consecutive Friday-to-Friday advance and its biggest weekly percentage gain since May.
A 7.8% rebound in Apple Inc AAPL.O helped soften the blow of the 8.1% plunge for Amazon.comAMZN.O shares, in the wake of the two market leaders' results posted after Thursday's closing bell.
Solid earnings beats from ChevronCVX.N and Exxon MobilXOM.N and other companies outside the tech and tech-adjacent megacap group have brightened aggregate earnings estimates for the quarter.
Analysts now see third quarter S&P 500 earnings growth of 4.1%, up from 2.5% on Thursday, according to Refinitiv data.
"In big tech, earnings have been more negative than positive, but outside of tech it's been more positively skewed in the areas that are more indicative of the Main Street economy," said Keith Buchanan, portfolio manager at GLOBALT in Atlanta. "It’s easy to miss the forest for the trees."
On the economics front, the Commerce and Labor Departments released data that showed robust consumer spending and easing wage costs, respectively.
Financial markets have now priced in an 82% likelihood of a fifth consecutive 75 basis point interest rate hike at the conclusion of the Fed's Nov. 1-2 policy meeting, and a 48% chance the central bank will decelerate to 50 basis points in December, according to CME's FedWatch tool.
"Is it déjà vu all over again? We’ve seen the stock market rally in anticipation of a Fed pivot," Buchanan added. "If (Fed Chairman Powell) doesn’t push back, he’s comfortable with the markets anticipating a pivot."
At 2:15 p.m. ET, the Dow Jones Industrial Average .DJI rose 750.93 points, or 2.34%, to 32,784.21, the S&P 500 .SPX gained 79.93 points, or 2.10%, to 3,887.23 and the Nasdaq Composite .IXIC added 255.66 points, or 2.37%, to 11,048.33.
Among the 11 major sectors of the S&P 500, tech shares .SPLRCT were enjoying the biggest percentage gains, while consumer discretionary stocks .SPLRCD, weighed down by Amazon shares, were the biggest percentage loser.
Third-quarter reporting season has passed the halfway point, with 263 of the companies in the S&P 500 having reported. Of those, 73% have beaten consensus expectations, according to Refinitiv.
Intel Corp INTC.O jumped 9.6% after cutting its spending forecast, while T-Mobile US Inc's TMUS.Osubscriber forecast hike sent its shares up 7.1%.
Twitter Inc was delisted from the New York Stock Exchange, closing the book on Tesla Inc TSLA.O chief Elon Musk's $44 billion purchase of the company.
Advancing issues outnumbered declining ones on the NYSE by a 2.30-to-1 ratio; on Nasdaq, a 1.85-to-1 ratio favored advancers.
The S&P 500 posted 27 new 52-week highs and eight new lows; the Nasdaq Composite recorded 97 new highs and 101 new lows.
(Reporting by Stephen Culp; additional reporting by Amruta Khandekar and Shreyashi Sanyal in Bengaluru; Editing by Cynthia Osterman)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A 7.8% rebound in Apple Inc AAPL.O helped soften the blow of the 8.1% plunge for Amazon.comAMZN.O shares, in the wake of the two market leaders' results posted after Thursday's closing bell. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Apple rebounds, Amazon sinks after earnings reports Data shows strong consumer spending, ebbing wage growth Third quarter aggregate earnings estimates raised Twitter delisted as Musk purchase complete Indexes up: Dow 2.34%, S&P 2.10%, Nasdaq 2.37% New throughout, adds NEW YORK dateline, changes byline By Stephen Culp NEW YORK, Oct 28 (Reuters) - A robust, broad-based rally sent Wall Street stocks surging on Friday, as encouraging economic data and a rosier earnings outlook buoyed investor risk appetite ahead of next week's much-anticipated two-day policy meeting of the Federal Reserve. On the economics front, the Commerce and Labor Departments released data that showed robust consumer spending and easing wage costs, respectively.
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A 7.8% rebound in Apple Inc AAPL.O helped soften the blow of the 8.1% plunge for Amazon.comAMZN.O shares, in the wake of the two market leaders' results posted after Thursday's closing bell. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Apple rebounds, Amazon sinks after earnings reports Data shows strong consumer spending, ebbing wage growth Third quarter aggregate earnings estimates raised Twitter delisted as Musk purchase complete Indexes up: Dow 2.34%, S&P 2.10%, Nasdaq 2.37% New throughout, adds NEW YORK dateline, changes byline By Stephen Culp NEW YORK, Oct 28 (Reuters) - A robust, broad-based rally sent Wall Street stocks surging on Friday, as encouraging economic data and a rosier earnings outlook buoyed investor risk appetite ahead of next week's much-anticipated two-day policy meeting of the Federal Reserve. We’ve seen the stock market rally in anticipation of a Fed pivot," Buchanan added.
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A 7.8% rebound in Apple Inc AAPL.O helped soften the blow of the 8.1% plunge for Amazon.comAMZN.O shares, in the wake of the two market leaders' results posted after Thursday's closing bell. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Apple rebounds, Amazon sinks after earnings reports Data shows strong consumer spending, ebbing wage growth Third quarter aggregate earnings estimates raised Twitter delisted as Musk purchase complete Indexes up: Dow 2.34%, S&P 2.10%, Nasdaq 2.37% New throughout, adds NEW YORK dateline, changes byline By Stephen Culp NEW YORK, Oct 28 (Reuters) - A robust, broad-based rally sent Wall Street stocks surging on Friday, as encouraging economic data and a rosier earnings outlook buoyed investor risk appetite ahead of next week's much-anticipated two-day policy meeting of the Federal Reserve. ET, the Dow Jones Industrial Average .DJI rose 750.93 points, or 2.34%, to 32,784.21, the S&P 500 .SPX gained 79.93 points, or 2.10%, to 3,887.23 and the Nasdaq Composite .IXIC added 255.66 points, or 2.37%, to 11,048.33.
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A 7.8% rebound in Apple Inc AAPL.O helped soften the blow of the 8.1% plunge for Amazon.comAMZN.O shares, in the wake of the two market leaders' results posted after Thursday's closing bell. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Apple rebounds, Amazon sinks after earnings reports Data shows strong consumer spending, ebbing wage growth Third quarter aggregate earnings estimates raised Twitter delisted as Musk purchase complete Indexes up: Dow 2.34%, S&P 2.10%, Nasdaq 2.37% New throughout, adds NEW YORK dateline, changes byline By Stephen Culp NEW YORK, Oct 28 (Reuters) - A robust, broad-based rally sent Wall Street stocks surging on Friday, as encouraging economic data and a rosier earnings outlook buoyed investor risk appetite ahead of next week's much-anticipated two-day policy meeting of the Federal Reserve. The blue-chip Dow was set for its fourth consecutive Friday-to-Friday advance and its biggest weekly percentage gain since May.
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18662.0
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2022-10-28 00:00:00 UTC
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Why Shares of Nvidia, AMD, and Skyworks Are Rallying Today
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AAPL
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https://www.nasdaq.com/articles/why-shares-of-nvidia-amd-and-skyworks-are-rallying-today
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nan
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nan
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What happened
Shares of Nvidia (NASDAQ: NVDA), Advanced Micro Devices (NASDAQ: AMD), and Skyworks Solutions (NASDAQ: SWKS) were all up big on Friday, rising 4.1%, 5.5%, and 4%, respectively, as of 1:54 p.m. EDT.
None of these companies have reported earnings yet, although AMD did announce worse-than-expected results in its PC division earlier this month.
The synchronous move highlighted a good day for semiconductor stocks generally. The semiconductor outperformance likely came from a combination of better-than-feared earnings from Apple (NASDAQ: AAPL) and Intel (NASDAQ: INTC) last night, as well as some better-than-feared economic data in the U.S. this morning.
So what
Last night, Apple beat analyst estimates for both revenue and earnings, and Intel delivered in-line revenue with a bottom-line beat.
Expectations were very low heading into each earnings report, since it had been well documented that both the PC and handset markets are in a sharp slowdown. Therefore, to see a result that wasn't as bad as feared is likely helping sentiment today.
Intel also said that the PC market remained difficult, and the company plans for units to be flat to slightly down next year, even with units down by the mid to high teens already in 2022. CEO Pat Gelsinger said the data center market was holding up better, although Intel was losing market share at the moment.
The 2023 outlook might perhaps indicate a bottom in PCs for some investors, because Gelsinger also said use of PCs is still above pre-pandemic levels. And that should mean a higher overall addressable market, despite the near-term correction.
And resilient data center investment bodes well for Nvidia and AMD, with AMD taking share from Intel in data center CPUs and Nvidia being the market leader in artificial intelligence focused GPUs.
Wireless chip company Skyworks is also likely benefiting from Apple's good results, as Skyworks generates just over half its revenue from the iPhone giant.
Semiconductor stocks are also very economically sensitive, and tend to respond to good or bad macroeconomic news. This morning, the Employment Cost Index released by the Bureau of Labor Statistics showed a slowing of private-sector wage growth, which was taken well by the markets.
Although the three-month seasonally adjusted rate of growth was 1.2% and the year-over-year growth was 5.2%, both figures marked a significant slowdown from June's 1.6% and 5.7% growth figures, respectively.
Wage inflation had been one of the main sources of overall core services inflation, which in turn affects the path of Fed rate increases. So these slowing numbers show that this summer's rapid rate hikes could be having their intended effect. That means the Federal Reserve might not have to go materially higher than their forecast in terms of interest rates to slow inflation to its target. That would be good news for the economy overall.
Meanwhile, consumer spending metrics from September also came in higher than expected, despite worries over inflation and a deceleration in wages. Solid consumer spending along with falling inflation would be a Goldilocks scenario (not too hot and not too cold) for the Fed and the economy.
Now what
It's quite possible that these semiconductor stocks will continue to rise, even if revenue and earnings results come in poorly over the next couple of quarters. After all, these stocks began to decline even while earnings were good earlier this year, in anticipation of a downturn brought on by inflation and the Fed's interest rate hikes.
Now that a downturn is here, especially in the PC market, investors might be sensing a bottom and looking ahead to a recovery. The lower wage-inflation figures are likely helping to spur optimism that the Fed might soon be done with its restrictive interest rate increases.
There is still a high degree of uncertainty in the outlook, since a number of factors, including geopolitical issues, could continue to throw the economy surprises. But today's data was certainly encouraging.
With shares of Nvidia and AMD down between 55% and 60% on the year, even after the recent bounce, and with Skyworks down 45%, it's no surprise to see them being bought heavily on the first signs of a potential slowdown in inflation.
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Stock Advisor returns as of October 26, 2022
Billy Duberstein has positions in Apple and has the following options: short January 2023 $210 calls on Apple. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Intel, and Nvidia. The Motley Fool recommends Skyworks Solutions and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2023 $57.50 puts on Intel, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The semiconductor outperformance likely came from a combination of better-than-feared earnings from Apple (NASDAQ: AAPL) and Intel (NASDAQ: INTC) last night, as well as some better-than-feared economic data in the U.S. this morning. This morning, the Employment Cost Index released by the Bureau of Labor Statistics showed a slowing of private-sector wage growth, which was taken well by the markets. After all, these stocks began to decline even while earnings were good earlier this year, in anticipation of a downturn brought on by inflation and the Fed's interest rate hikes.
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The semiconductor outperformance likely came from a combination of better-than-feared earnings from Apple (NASDAQ: AAPL) and Intel (NASDAQ: INTC) last night, as well as some better-than-feared economic data in the U.S. this morning. What happened Shares of Nvidia (NASDAQ: NVDA), Advanced Micro Devices (NASDAQ: AMD), and Skyworks Solutions (NASDAQ: SWKS) were all up big on Friday, rising 4.1%, 5.5%, and 4%, respectively, as of 1:54 p.m. EDT. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Intel, and Nvidia.
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The semiconductor outperformance likely came from a combination of better-than-feared earnings from Apple (NASDAQ: AAPL) and Intel (NASDAQ: INTC) last night, as well as some better-than-feared economic data in the U.S. this morning. And resilient data center investment bodes well for Nvidia and AMD, with AMD taking share from Intel in data center CPUs and Nvidia being the market leader in artificial intelligence focused GPUs. After all, these stocks began to decline even while earnings were good earlier this year, in anticipation of a downturn brought on by inflation and the Fed's interest rate hikes.
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The semiconductor outperformance likely came from a combination of better-than-feared earnings from Apple (NASDAQ: AAPL) and Intel (NASDAQ: INTC) last night, as well as some better-than-feared economic data in the U.S. this morning. What happened Shares of Nvidia (NASDAQ: NVDA), Advanced Micro Devices (NASDAQ: AMD), and Skyworks Solutions (NASDAQ: SWKS) were all up big on Friday, rising 4.1%, 5.5%, and 4%, respectively, as of 1:54 p.m. EDT. None of these companies have reported earnings yet, although AMD did announce worse-than-expected results in its PC division earlier this month.
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18663.0
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2022-10-28 00:00:00 UTC
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7 Must-See Metrics Highlight Apple's Record Fiscal Fourth Quarter
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AAPL
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https://www.nasdaq.com/articles/7-must-see-metrics-highlight-apples-record-fiscal-fourth-quarter
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nan
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nan
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Apple (NASDAQ: AAPL) bucked a trend of year-over-year earnings declines that were seen by many of its tech-giant peers recently. Despite significant foreign-exchange headwinds and an extremely tough year-ago comparison, the tech-giant's fiscal fourth-quarter revenue and earnings per share both increased year over year and beat analysts' average forecasts for the two metrics. Even more, management guided for more top-line growth in fiscal Q4.
Here are eight metrics capturing the company's strong performance in the face of a difficult macroeconomic backdrop.
1. Revenue increased 8%
Apple's top line for the period was higher than any fiscal fourth quarter in the company's history, coming in at $90.1 billion. This translated to 8% year-over-year growth and beat analysts' average forecast for revenue of $88.9 billion. The company's top-line growth was also ahead of management's expectations for the quarter, even though foreign-exchange headwinds for the period turned out to be worse than expected.
Notably, management said during the company'searnings callthat consolidated top-line year-over-year growth was in the double digits on a constant-currency basis.
2. Double-digit constant-currency growth in services
Highlighting the strength of Apple's services segment, which is arguably the company's most important long-term growth driver, management said that its growth rate was in the double digits on a constant-currency basis. This was despite some weakness in digital advertising and gaming. On a reported basis, services revenue increased 5% year over year.
Even the segment's growth on a reported basis was impressive, considering the tough year-ago comparison the company was up against. Services revenue increased 27% year over year in Apple's fourth quarter of fiscal 2021.
3. A record gross profit margin
The company's gross profit margin of more than 42% was a record for its fiscal fourth quarter. This is impressive considering how the challenging macroeconomic environment has pressured many companies' profitability recently. This led to record fiscal fourth-quarter earnings per share of $1.29, which was ahead of analysts' consensus view for $1.17.
4. 20% trailing-12-month free cash flow growth
Management pointed out the company's impressive cash flow trends, noting that its free cash flow in fiscal 2022 rose 20% year over year.
5. $550 billion of share repurchases
During the call, Apple shared a mind-boggling statistic about the success of its share-repurchase program: Since its inception in 2012, the company has repurchased $550 billion worth of stock at an average price of $47.
Management added that it plans to continue returning cash to shareholders with its growing free cash flow.
6. More growth is on the way
Regarding its fiscal first quarter, Apple said it expects more top-line growth, although at a decelerated pace. But here's the kicker: It expects this growth despite a forecast for a 10 percentage-point headwind due to foreign exchange.
7. Mac is attracting new users
Apple's Mac segment was a standout during the quarter, with sales rising 25% year over year. But the best news about Mac was how it's attracting new Mac buyers. Management said nearly half of Mac buyers were new to the product.
On a related note, management said two-thirds of people buying an Apple Watch during the quarter were buying one for the first time.
Overall, the quarter highlighted an exceptionally managed company navigating a difficult environment adeptly. The performance, which included earnings-per-share growth, was particularly notable, considering tech-giants Microsoft, Alphabet, Meta Platforms, and Amazon all saw their earnings decline over the same time frame.
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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. Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) bucked a trend of year-over-year earnings declines that were seen by many of its tech-giant peers recently. Revenue increased 8% Apple's top line for the period was higher than any fiscal fourth quarter in the company's history, coming in at $90.1 billion. Notably, management said during the company'searnings callthat consolidated top-line year-over-year growth was in the double digits on a constant-currency basis.
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Apple (NASDAQ: AAPL) bucked a trend of year-over-year earnings declines that were seen by many of its tech-giant peers recently. Despite significant foreign-exchange headwinds and an extremely tough year-ago comparison, the tech-giant's fiscal fourth-quarter revenue and earnings per share both increased year over year and beat analysts' average forecasts for the two metrics. 20% trailing-12-month free cash flow growth Management pointed out the company's impressive cash flow trends, noting that its free cash flow in fiscal 2022 rose 20% year over year.
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Apple (NASDAQ: AAPL) bucked a trend of year-over-year earnings declines that were seen by many of its tech-giant peers recently. Despite significant foreign-exchange headwinds and an extremely tough year-ago comparison, the tech-giant's fiscal fourth-quarter revenue and earnings per share both increased year over year and beat analysts' average forecasts for the two metrics. Double-digit constant-currency growth in services Highlighting the strength of Apple's services segment, which is arguably the company's most important long-term growth driver, management said that its growth rate was in the double digits on a constant-currency basis.
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Apple (NASDAQ: AAPL) bucked a trend of year-over-year earnings declines that were seen by many of its tech-giant peers recently. Despite significant foreign-exchange headwinds and an extremely tough year-ago comparison, the tech-giant's fiscal fourth-quarter revenue and earnings per share both increased year over year and beat analysts' average forecasts for the two metrics. Notably, management said during the company'searnings callthat consolidated top-line year-over-year growth was in the double digits on a constant-currency basis.
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18664.0
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2022-10-28 00:00:00 UTC
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Did Apple Just Stick a Pin in the Google-Facebook Duopoly?
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AAPL
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https://www.nasdaq.com/articles/did-apple-just-stick-a-pin-in-the-google-facebook-duopoly
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nan
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nan
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For years now, Alphabet's (NASDAQ: GOOGL) (NASDAQ: GOOG) Google and Meta Platforms' (NASDAQ: META) Facebook have reigned supreme as the leaders in digital advertising. Estimates differ, but as recently as 2017, Google and Facebook managed as much as 73% of all digital advertising in the U.S., while also capturing as much as 83% of growth in the industry. But to quote Bob Dylan, "The times, they are a-changin'," and privacy moves by Apple (NASDAQ: AAPL) last year may have changed the entire landscape.
Just this week, Alphabet and Facebook both reported third-quarter earnings, and the news was a wake-up call to investors. Alphabet's revenue grew just 6% year over year, while Meta's declined by 4%. To be clear, the vast majority of the challenges were related to foreign currency headwinds and slowing ad spend due to macroeconomic uncertainty.
Image source: Getty Images.
That said, there is additional evidence that suggests that Apple's privacy moves are siphoning away business from the walled gardens, further loosening the stranglehold that Google and Facebook once had on the digital advertising space. More on that in just a moment.
An IDFA primer
To understand the changing landscape, it's worth reviewing the move that kicked up all the fuss. The identifier for advertisers (IDFA) is a unique credential assigned to each iOS device, which allowed apps and publishers to track user activity across various mobile apps and websites. To avoid being tracked, users would choose "Limit ad tracking" in their device settings. By some accounts, fewer than 30% of users in 2020 took the time to opt out.
When Apple rolled out iOS 14 in early 2021, the company fundamentally changed how users dealt with ad tracking. In the new version, iPhone users would get a pop-up notification for each app, forcing them to choose "Ask app not to track" or "Allow," specifically requiring them to opt in for each notification. Since the update, estimates suggest that roughly 75% of users decided against sharing their data.
This makes it much tougher for companies that rely on ad tracking to target consumers. Facebook parent Meta was particularly vocal about the privacy changes, saying Apple's App Tracking Transparency feature (its official name), will cost Meta $10 billion in lost ad sales this year.
A bigger bite of the Apple
Apple is now reaping some benefits from the seeds it has sown. The share of mobile apps advertising directly on Apple's App Store grew 3.7% in the second quarter, according to a recent report by Appsumer. This boost to Apple's ad spending growth corresponds closely with declines for the duopoly. Facebook suffered a 3% decline, while Google experienced a 1.7% decline during the same period.
The data suggests that Apple is the ultimate beneficiary of its recent privacy moves. To further drive home the point, advertisers allocated roughly 15% of their ad budgets to Apple in the second quarter, up from 10% in the first quarter of 2021, just before Apple introduced the changes. At the same time, money allocated to Google fell from 35% to 34%, and Facebook's share declined from 32% to 28%.
A drop in the ocean
It's important to view these developments in a broader context. Apple pulled in roughly $4 billion in advertising revenue in 2021, which pales in comparison to Alphabet's $209 billion and Meta's $115 billion during the same period. Even Amazon made more, generating about $31 billion in ad revenue last year.
In terms of the share of wallet, or what app developers spend for online advertising, Google remains the top dog with 34%, Facebook runs a close second at 28%, and Apple rounds out the top three with 15%.
Still, this data shows the cracks in the dam, and it's easy to envision a future where Apple's ad revenue is much bigger than it is now -- at the expense of Alphabet and Meta Platforms.
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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. Danny Vena has positions in Alphabet (A shares), Amazon, Apple, and Meta Platforms, Inc. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Meta Platforms, Inc. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But to quote Bob Dylan, "The times, they are a-changin'," and privacy moves by Apple (NASDAQ: AAPL) last year may have changed the entire landscape. That said, there is additional evidence that suggests that Apple's privacy moves are siphoning away business from the walled gardens, further loosening the stranglehold that Google and Facebook once had on the digital advertising space. Still, this data shows the cracks in the dam, and it's easy to envision a future where Apple's ad revenue is much bigger than it is now -- at the expense of Alphabet and Meta Platforms.
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But to quote Bob Dylan, "The times, they are a-changin'," and privacy moves by Apple (NASDAQ: AAPL) last year may have changed the entire landscape. For years now, Alphabet's (NASDAQ: GOOGL) (NASDAQ: GOOG) Google and Meta Platforms' (NASDAQ: META) Facebook have reigned supreme as the leaders in digital advertising. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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But to quote Bob Dylan, "The times, they are a-changin'," and privacy moves by Apple (NASDAQ: AAPL) last year may have changed the entire landscape. For years now, Alphabet's (NASDAQ: GOOGL) (NASDAQ: GOOG) Google and Meta Platforms' (NASDAQ: META) Facebook have reigned supreme as the leaders in digital advertising. Facebook parent Meta was particularly vocal about the privacy changes, saying Apple's App Tracking Transparency feature (its official name), will cost Meta $10 billion in lost ad sales this year.
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But to quote Bob Dylan, "The times, they are a-changin'," and privacy moves by Apple (NASDAQ: AAPL) last year may have changed the entire landscape. For years now, Alphabet's (NASDAQ: GOOGL) (NASDAQ: GOOG) Google and Meta Platforms' (NASDAQ: META) Facebook have reigned supreme as the leaders in digital advertising. Alphabet's revenue grew just 6% year over year, while Meta's declined by 4%.
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18665.0
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2022-10-28 00:00:00 UTC
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Dow Movers: MRK, INTC
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-mrk-intc-0
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nan
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nan
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In early trading on Friday, shares of Intel topped the list of the day's best performing Dow Jones Industrial Average components, trading up 6.2%. Year to date, Intel has lost about 45.8% of its value.
And the worst performing Dow component thus far on the day is Merck, trading down 0.8%. Merck is showing a gain of 29.1% looking at the year to date performance.
Two other components making moves today are Dow, trading down 0.4%, and Apple, trading up 4.2% on the day.
VIDEO: Dow Movers: MRK, INTC
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Friday, shares of Intel topped the list of the day's best performing Dow Jones Industrial Average components, trading up 6.2%. And the worst performing Dow component thus far on the day is Merck, trading down 0.8%. Merck is showing a gain of 29.1% looking at the year to date performance.
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In early trading on Friday, shares of Intel topped the list of the day's best performing Dow Jones Industrial Average components, trading up 6.2%. Year to date, Intel has lost about 45.8% of its value. And the worst performing Dow component thus far on the day is Merck, trading down 0.8%.
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In early trading on Friday, shares of Intel topped the list of the day's best performing Dow Jones Industrial Average components, trading up 6.2%. And the worst performing Dow component thus far on the day is Merck, trading down 0.8%. Two other components making moves today are Dow, trading down 0.4%, and Apple, trading up 4.2% on the day.
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And the worst performing Dow component thus far on the day is Merck, trading down 0.8%. Merck is showing a gain of 29.1% looking at the year to date performance. VIDEO: Dow Movers: MRK, INTC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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18666.0
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2022-10-28 00:00:00 UTC
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The Good News from Apple (AAPL) is Being Overlooked
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AAPL
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https://www.nasdaq.com/articles/the-good-news-from-apple-aapl-is-being-overlooked
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nan
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nan
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I
t has been quite a week in tech: There were disappointing results from Alphabet (GOOG: GOOGL), Meta (META), and Microsoft (MSFT) that prompted double digit losses in those stocks. Elon Musk finally completed the purchase of Twitter (TWTR), with a number of senior executives immediately being let go. Then after the close yesterday, Amazon (AMZN) beat on the bottom line but missed on revenue and, more importantly, issued much weaker-than-expected Q4 guidance and its stock dropped close to fifteen percent. AMZN has regained some ground this morning, but as I write this before the open, it still looks likely to open around twelve percent lower than it closed yesterday.
Understanding Apple's Recent Results
That is a lot of headline material, so it is no great surprise that Apple's (AAPL) results, which were roughly in line with expectations and didn’t contain any gaudy or spectacularly disappointing guidance, went relatively unnoticed. However, in the context of what is happening everywhere else, the solid-looking Q3 that came out of Cupertino can be seen as extremely good.
I know that the pessimists are focusing on iPhone sales that were a little light, but is that really a surprise when the quarter included only a few days of sales of the iPhone 14, one of the most eagerly-anticipated upgrades Apple has offered for a while? Not really, especially given that the new model’s release was restricted by supply issues. The fact that despite those challenges, they reported beats on both the top and bottom lines is indicative of something important that the market seems to be overlooking right now: Apple is no longer a one-trick pony.
Apple's New Offerings
The increasing importance of revenue and profits in the high margin services business enables them to smooth out the cycle of iPhone sales as new models are anticipated and released, and in light of that, there is one thing mentioned by Tim Cook in the analyst call that has more significance than many analysts seem to allow for. That is an increase the number of what are known as “switchers,” people who switch from Android to Apple devices.
Bringing new people into the Apple ecosystem means increased recurring, high-margin revenue in the future. Consumers can be fickle, so I guess they could switch back, but one of the things that Apple has been best at over the years is retaining those customers once they make the switch, so it is fair to assume that more iPhone users will equate to more services revenue for a while to come. Given that, the good quarter in terms of Mac sales is also a positive in this earnings release if we assume that some of those are new to the Apple ecosystem.
And yet, the market was noticeably underwhelmed despite big drops in the two days leading up to the release:
Apple (AAPL) Share Price Chart
One can only assume that the weakness was in sympathy with the bad quarters from big tech and the falling stocks that accompanied them, but that makes little sense either, for a couple of reasons.
First, as I have pointed out many times in the past, Apple is no longer a tech company. They are more like the modern equivalent of Westinghouse or Maytag, a seller of “appliances” that we all feel we need to own just to function normally. Second, at least part of the weakness in mega cap tech companies like META and GOOG was down to Apple itself, which implemented new privacy policies that weakened the data collection side of these other businesses. It makes no sense to punish Apple’s stock for weakness in tech companies to which they themselves contributed.
The sympathy drop in AAPL this week already looked like a buying opportunity for those reasons. Now that they have reported beats on both revenue and EPS, even in the face of a big forex headwind that presumably won’t last forever, and the stock has barely reacted, it looks even more like one.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Understanding Apple's Recent Results That is a lot of headline material, so it is no great surprise that Apple's (AAPL) results, which were roughly in line with expectations and didn’t contain any gaudy or spectacularly disappointing guidance, went relatively unnoticed. And yet, the market was noticeably underwhelmed despite big drops in the two days leading up to the release: Apple (AAPL) Share Price Chart One can only assume that the weakness was in sympathy with the bad quarters from big tech and the falling stocks that accompanied them, but that makes little sense either, for a couple of reasons. The sympathy drop in AAPL this week already looked like a buying opportunity for those reasons.
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Understanding Apple's Recent Results That is a lot of headline material, so it is no great surprise that Apple's (AAPL) results, which were roughly in line with expectations and didn’t contain any gaudy or spectacularly disappointing guidance, went relatively unnoticed. And yet, the market was noticeably underwhelmed despite big drops in the two days leading up to the release: Apple (AAPL) Share Price Chart One can only assume that the weakness was in sympathy with the bad quarters from big tech and the falling stocks that accompanied them, but that makes little sense either, for a couple of reasons. The sympathy drop in AAPL this week already looked like a buying opportunity for those reasons.
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Understanding Apple's Recent Results That is a lot of headline material, so it is no great surprise that Apple's (AAPL) results, which were roughly in line with expectations and didn’t contain any gaudy or spectacularly disappointing guidance, went relatively unnoticed. And yet, the market was noticeably underwhelmed despite big drops in the two days leading up to the release: Apple (AAPL) Share Price Chart One can only assume that the weakness was in sympathy with the bad quarters from big tech and the falling stocks that accompanied them, but that makes little sense either, for a couple of reasons. The sympathy drop in AAPL this week already looked like a buying opportunity for those reasons.
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And yet, the market was noticeably underwhelmed despite big drops in the two days leading up to the release: Apple (AAPL) Share Price Chart One can only assume that the weakness was in sympathy with the bad quarters from big tech and the falling stocks that accompanied them, but that makes little sense either, for a couple of reasons. Understanding Apple's Recent Results That is a lot of headline material, so it is no great surprise that Apple's (AAPL) results, which were roughly in line with expectations and didn’t contain any gaudy or spectacularly disappointing guidance, went relatively unnoticed. The sympathy drop in AAPL this week already looked like a buying opportunity for those reasons.
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18667.0
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2022-10-28 00:00:00 UTC
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US STOCKS SNAPSHOT-Nasdaq opens lower as warnings from Amazon, Apple weigh
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AAPL
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https://www.nasdaq.com/articles/us-stocks-snapshot-nasdaq-opens-lower-as-warnings-from-amazon-apple-weigh
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nan
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nan
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Oct 28 (Reuters) - The Nasdaq opened lower on Friday as gloomy forecasts from megacaps Amazon and Apple outweighed data that showed U.S. consumer spending increased more than expected in September.
The Nasdaq Composite .IXIC dropped 26.47 points, or 0.25%, to 10,766.20 at the opening bell. The Dow Jones Industrial Average .DJI rose 171.03 points, or 0.53%, at the open to 32,204.31 while the S&P 500 .SPX opened higher by 0.96 points, or 0.03%, at 3,808.26.
(Reporting by Amruta Khandekar in Bengaluru; Editing by Arun Koyyur)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Oct 28 (Reuters) - The Nasdaq opened lower on Friday as gloomy forecasts from megacaps Amazon and Apple outweighed data that showed U.S. consumer spending increased more than expected in September. The Nasdaq Composite .IXIC dropped 26.47 points, or 0.25%, to 10,766.20 at the opening bell. (Reporting by Amruta Khandekar in Bengaluru; Editing by Arun Koyyur) ((Amruta.Khandekar@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Oct 28 (Reuters) - The Nasdaq opened lower on Friday as gloomy forecasts from megacaps Amazon and Apple outweighed data that showed U.S. consumer spending increased more than expected in September. The Nasdaq Composite .IXIC dropped 26.47 points, or 0.25%, to 10,766.20 at the opening bell. (Reporting by Amruta Khandekar in Bengaluru; Editing by Arun Koyyur) ((Amruta.Khandekar@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Oct 28 (Reuters) - The Nasdaq opened lower on Friday as gloomy forecasts from megacaps Amazon and Apple outweighed data that showed U.S. consumer spending increased more than expected in September. The Dow Jones Industrial Average .DJI rose 171.03 points, or 0.53%, at the open to 32,204.31 while the S&P 500 .SPX opened higher by 0.96 points, or 0.03%, at 3,808.26. (Reporting by Amruta Khandekar in Bengaluru; Editing by Arun Koyyur) ((Amruta.Khandekar@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Oct 28 (Reuters) - The Nasdaq opened lower on Friday as gloomy forecasts from megacaps Amazon and Apple outweighed data that showed U.S. consumer spending increased more than expected in September. The Nasdaq Composite .IXIC dropped 26.47 points, or 0.25%, to 10,766.20 at the opening bell. The Dow Jones Industrial Average .DJI rose 171.03 points, or 0.53%, at the open to 32,204.31 while the S&P 500 .SPX opened higher by 0.96 points, or 0.03%, at 3,808.26.
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18668.0
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2022-10-28 00:00:00 UTC
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US STOCKS-S&P 500, Nasdaq set to open lower after Amazon, Apple warnings
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-set-to-open-lower-after-amazon-apple-warnings
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nan
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nan
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By Amruta Khandekar
Oct 28 (Reuters) - The S&P 500 and the Nasdaq were set to open lower on Friday as gloomy forecasts from megacaps Amazon and Apple outweighed data that showed U.S. consumer spending increased more than expected in September.
Amazon.com Inc AMZN.O joined other Big Tech firms that have disappointed investors this week by predicting a slowdown in sales growth for the holiday season amid a hit to purchasing power of consumers. Shares tumbled 13.8% in premarket trade.
If the losses hold to the end of the session, about $155 billion was set to be wiped out from its market value.
Apple Inc AAPL.O cautioned revenue growth could see some pressure in the December quarter but shares edged 0.2% higher as the iPhone maker's fourth-quarter results showed some resilience.
Shares of other megacap tech companies such as Microsoft MSFT.O and Google-parent Alphabet GOOGL.O, which reported downbeat earnings earlier this week, were mixed.
Tech sector earnings were viewed as a major test of the strength of corporate America in the face of decades-high inflation. Their dismal results and warnings have added to fears of a looming recession from aggressive interest-rate hikes by the Federal Reserve.
Data showed underlying inflation pressures continued to bubble, even as U.S. consumer spending increased more than expected in September.
The Commerce Department's core Personal Consumption Expenditures Index, the Fed's preferred inflation measure, climbed 5.1% in September compared to an expected 5.2% rise year-on-year when stripped of volatile food and energy costs.
The report briefly assuaged worries about the pace of rate hikes, but did not change any expectations of another jumbo-sized 75 basis-point increase in November. FEDWATCH
For December, however, traders are largely expecting a 50 basis-point increase.
"If you're a Fed pivot believer, then you didn't see anything in these numbers to scare you off," said Matthew Tuttle, Chief Executive of Tuttle Capital Management in Connecticut.
"I wouldn't be shocked to see S&P 500 make a run and turn green here. I don't know if the Nasdaq can, given Amazon's weight. Bottom line is these numbers, if you're bullish, do nothing to dissuade you."
At 9:01 a.m. ET, Dow e-minis 1YMcv1 were up 49 points, or 0.15%, S&P 500 e-minis EScv1 were down 12.5 points, or 0.33%, and Nasdaq 100 e-minis NQcv1 were down 84 points, or 0.75%.
The blue-chip Dow Jones Industrial Average .DJI is up for the fourth straight week, while the tech-heavy Nasdaq .IXIC tracked weekly losses.
Intel Corp INTC.O was a bright spot, up 5.5% after the chipmaker cut its capital spending forecast, helping ease pressure on Dow futures.
T-Mobile US Inc TMUS.O rose 3.1% after the telecoms giant raised its annual forecast for wireless subscriber additions.
Twitter TWTR.N was set to be delisted from the New York Stock Exchange after Tesla TSLA.O chief Elon Musk completed his $44 billion acquisition of the social media company. Shares of Tesla were down 0.1%.
(Reporting by Amruta Khandekar and Shreyashi Sanyal in Bengaluru; Additional reporting by Medha Singh; Editing by Sriraj Kalluvila and Arun Koyyur)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O cautioned revenue growth could see some pressure in the December quarter but shares edged 0.2% higher as the iPhone maker's fourth-quarter results showed some resilience. By Amruta Khandekar Oct 28 (Reuters) - The S&P 500 and the Nasdaq were set to open lower on Friday as gloomy forecasts from megacaps Amazon and Apple outweighed data that showed U.S. consumer spending increased more than expected in September. Amazon.com Inc AMZN.O joined other Big Tech firms that have disappointed investors this week by predicting a slowdown in sales growth for the holiday season amid a hit to purchasing power of consumers.
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Apple Inc AAPL.O cautioned revenue growth could see some pressure in the December quarter but shares edged 0.2% higher as the iPhone maker's fourth-quarter results showed some resilience. By Amruta Khandekar Oct 28 (Reuters) - The S&P 500 and the Nasdaq were set to open lower on Friday as gloomy forecasts from megacaps Amazon and Apple outweighed data that showed U.S. consumer spending increased more than expected in September. Data showed underlying inflation pressures continued to bubble, even as U.S. consumer spending increased more than expected in September.
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Apple Inc AAPL.O cautioned revenue growth could see some pressure in the December quarter but shares edged 0.2% higher as the iPhone maker's fourth-quarter results showed some resilience. By Amruta Khandekar Oct 28 (Reuters) - The S&P 500 and the Nasdaq were set to open lower on Friday as gloomy forecasts from megacaps Amazon and Apple outweighed data that showed U.S. consumer spending increased more than expected in September. Data showed underlying inflation pressures continued to bubble, even as U.S. consumer spending increased more than expected in September.
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Apple Inc AAPL.O cautioned revenue growth could see some pressure in the December quarter but shares edged 0.2% higher as the iPhone maker's fourth-quarter results showed some resilience. Data showed underlying inflation pressures continued to bubble, even as U.S. consumer spending increased more than expected in September. I don't know if the Nasdaq can, given Amazon's weight.
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18669.0
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2022-10-28 00:00:00 UTC
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Pre-Market Most Active for Oct 28, 2022 : TQQQ, AMZN, SQQQ, AAPL, NIO, INTC, XPEV, CMCSA, CNX, FMS, BABA, TAL
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AAPL
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https://www.nasdaq.com/articles/pre-market-most-active-for-oct-28-2022-%3A-tqqq-amzn-sqqq-aapl-nio-intc-xpev-cmcsa-cnx-fms
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nan
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nan
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The NASDAQ 100 Pre-Market Indicator is down -99.06 to 11,092.57. The total Pre-Market volume is currently 34,979,703 shares traded.
The following are the most active stocks for the pre-market session:
ProShares UltraPro QQQ (TQQQ) is -0.7 at $19.20, with 6,781,301 shares traded. This represents a 17.65% increase from its 52 Week Low.
Amazon.com, Inc. (AMZN) is -15.76 at $95.20, with 4,552,377 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
ProShares UltraPro Short QQQ (SQQQ) is +1.98 at $57.18, with 3,024,795 shares traded. This represents a 103.13% increase from its 52 Week Low.
Apple Inc. (AAPL) is +0.2 at $145.00, with 1,321,872 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $1.49. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
NIO Inc. (NIO) is -0.51 at $9.47, with 1,239,097 shares traded. As reported by Zacks, the current mean recommendation for NIO is in the "buy range".
Intel Corporation (INTC) is +1.88 at $28.15, with 1,178,144 shares traded. INTC's current last sale is 87.97% of the target price of $32.
XPeng Inc. (XPEV) is -0.62 at $6.74, with 1,167,322 shares traded. As reported by Zacks, the current mean recommendation for XPEV is in the "buy range".
Comcast Corporation (CMCSA) is unchanged at $31.97, with 1,059,655 shares traded. CMCSA's current last sale is 71.04% of the target price of $45.
CNX Resources Corporation (CNX) is +0.07 at $16.52, with 743,860 shares traded. CNX's current last sale is 70.3% of the target price of $23.5.
Fresenius Medical Care Corporation (FMS) is -0.6 at $13.76, with 631,406 shares traded.FMS is scheduled to provide an earnings report on 11/1/2022, for the fiscal quarter ending Sep2022. The consensus earnings per share forecast is 0.37 per share, which represents a 55 percent increase over the EPS one Year Ago
Alibaba Group Holding Limited (BABA) is -2.84 at $63.00, with 486,160 shares traded. As reported by Zacks, the current mean recommendation for BABA is in the "buy range".
TAL Education Group (TAL) is +0.2 at $4.17, with 450,634 shares traded. TAL's current last sale is 85.98% of the target price of $4.85.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is +0.2 at $145.00, with 1,321,872 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 Sep 2023.
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Apple Inc. (AAPL) is +0.2 at $145.00, with 1,321,872 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
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Apple Inc. (AAPL) is +0.2 at $145.00, with 1,321,872 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 34,979,703 shares traded.
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Apple Inc. (AAPL) is +0.2 at $145.00, with 1,321,872 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Amazon.com, Inc. (AMZN) is -15.76 at $95.20, with 4,552,377 shares traded.
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18670.0
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2022-10-28 00:00:00 UTC
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US STOCKS-Futures retreat as warnings from Amazon, Apple fan recession fears
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-retreat-as-warnings-from-amazon-apple-fan-recession-fears
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nan
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nan
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By Amruta Khandekar
Oct 28 (Reuters) - U.S. stock index futures fell on Friday as gloomy forecasts from megacaps Amazon and Apple heightened fears that the Federal Reserve's aggressive interest rate hikes were finally slowing the economy and could hammer corporate earnings.
Amazon.com Inc AMZN.O joined a chorus of Big Tech firms that have disappointed investors this week by forecasting a slowdown in sales growth for the all-important holiday season and warned of a hit to consumers' purchasing power. Shares tumbled 11.9% in premarket trade.
About $134 billion was set to be wiped out from its market capitalization, if current losses hold.
Apple Inc AAPL.O cautioned revenue growth could see some pressure in the December quarter but shares edged 0.4% higher as the iPhone maker's fourth-quarter results showed some resilience.
Shares of other megacap tech companies such as Microsoft MSFT.O and Google-parent Alphabet GOOGL.O, which reported downbeat earnings earlier this week, were down 0.9% and 0.3% respectively.
"With tech performing so poorly, the message to markets is confusing many investors as the sharp slowdown in the fortunes of the tech sector contrasts with the outperformance of more traditional economic bellwethers," said Michael Hewson, chief markets analyst at CMC Markets.
Tech sector earnings were viewed as a major test of the strength of corporate America in the face of decades-high inflation. Their dismal results and warnings have fed into fears of a looming recession from aggressive monetary policy tightening by the Fed.
While another 75 basis point rate hike from the Fed next week is largely priced in, traders are now waiting for a key U.S. inflation reading due at 8:30 a.m. ET to gauge whether the central bank could dial down its aggressive approach in December.
The Commerce Department's core Personal Consumption Expenditures Index (PCE), the Fed's preferred inflation measure, is expected to have climbed 5.2% on a year-over-year basis in September when stripped of volatile food and energy costs.
At 7:39 a.m. ET, Dow e-minis 1YMcv1 were down 6 points, or 0.02%, S&P 500 e-minis EScv1 were down 17.25 points, or 0.45%, and Nasdaq 100 e-minis NQcv1 were down 94.5 points, or 0.84%.
The blue-chip Dow Jones Industrial Average .DJI is up for the fourth straight week, while the tech-heavy Nasdaq .IXIC tracked weekly losses.
Intel Corp INTC.O was a bright spot, up 7.1% after the chipmaker cut its capital spending forecast, helping easing pressure on Dow futures.
Twitter TWTR.N was set to be delisted from the New York Stock Exchange after Tesla TSLA.O chief Elon Musk completed his $44 billion acquisition of the social media company. Shares of Tesla were down 0.7%.
(Reporting by Amruta Khandekar and Shreyashi Sanyal in Bengaluru; Editing by Sriraj Kalluvila)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O cautioned revenue growth could see some pressure in the December quarter but shares edged 0.4% higher as the iPhone maker's fourth-quarter results showed some resilience. By Amruta Khandekar Oct 28 (Reuters) - U.S. stock index futures fell on Friday as gloomy forecasts from megacaps Amazon and Apple heightened fears that the Federal Reserve's aggressive interest rate hikes were finally slowing the economy and could hammer corporate earnings. Amazon.com Inc AMZN.O joined a chorus of Big Tech firms that have disappointed investors this week by forecasting a slowdown in sales growth for the all-important holiday season and warned of a hit to consumers' purchasing power.
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Apple Inc AAPL.O cautioned revenue growth could see some pressure in the December quarter but shares edged 0.4% higher as the iPhone maker's fourth-quarter results showed some resilience. By Amruta Khandekar Oct 28 (Reuters) - U.S. stock index futures fell on Friday as gloomy forecasts from megacaps Amazon and Apple heightened fears that the Federal Reserve's aggressive interest rate hikes were finally slowing the economy and could hammer corporate earnings. While another 75 basis point rate hike from the Fed next week is largely priced in, traders are now waiting for a key U.S. inflation reading due at 8:30 a.m.
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Apple Inc AAPL.O cautioned revenue growth could see some pressure in the December quarter but shares edged 0.4% higher as the iPhone maker's fourth-quarter results showed some resilience. By Amruta Khandekar Oct 28 (Reuters) - U.S. stock index futures fell on Friday as gloomy forecasts from megacaps Amazon and Apple heightened fears that the Federal Reserve's aggressive interest rate hikes were finally slowing the economy and could hammer corporate earnings. Shares of other megacap tech companies such as Microsoft MSFT.O and Google-parent Alphabet GOOGL.O, which reported downbeat earnings earlier this week, were down 0.9% and 0.3% respectively.
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Apple Inc AAPL.O cautioned revenue growth could see some pressure in the December quarter but shares edged 0.4% higher as the iPhone maker's fourth-quarter results showed some resilience. About $134 billion was set to be wiped out from its market capitalization, if current losses hold. While another 75 basis point rate hike from the Fed next week is largely priced in, traders are now waiting for a key U.S. inflation reading due at 8:30 a.m.
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18671.0
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2022-10-28 00:00:00 UTC
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Apple's Steady Results Prove Why It's the Ultimate Warren Buffett Stock
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AAPL
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https://www.nasdaq.com/articles/apples-steady-results-prove-why-its-the-ultimate-warren-buffett-stock
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With a total stake of some $133 billion, Apple (NASDAQ: AAPL) makes up some 40% of Warren Buffett's stock portfolio. Thus, how the iPhone fares from year to year matters to Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) shareholders as much as it does to Apple's. Big tech earnings have had a rough go of it for the third quarter of calendar year 2022, but Apple is doing just fine. It reported solid results in spite of mounting worry that iPhone and other consumer electronic sales were going to slide, but that didn't happen.
Apple proved once again that the typically tech-averse Buffett made the right big tech stock bet.
Not a sizzling growth story, but that's ok
Buffett and company hate flashy and trendy investments, which often steers him clear of tech stocks in general. But Apple is a giant exception to the nonagenarian's rule. Apple is tech, but it has also built an incredible empire that keeps climbing at a slower-but-steady pace -- exactly the type of investment Berkshire Hathaway prefers.
Apple just put the final wrap on its 2022 fiscal year (which corresponds to the end of the third quarter of calendar year 2022). In fiscal Q4, Apple said revenue increased 8% year-over-year to $90.1 billion. This was driven by a nearly 10% year-over-year increase in iPhone sales ($42.6 billion, or 47% of total revenue) in the quarter. Mac sales also jumped 25% year-over-year to $11.5 billion (13% of revenue) as more supply helped meet consumer demand that was being limited earlier this year and last.
Throughout September and October, media headlines racked up clicks reporting that iPhone production was getting cut. This caused worry that Apple was going to be plagued with the same smartphone and PC slowdown as other tech companies have been reporting. Suffice to say that didn't happen (though iPad sales did slip 13%, but tablets are only 8% of revenue these days).
How is the iPhone doing it?
It seems that those iPhone production cuts were simply a reduction in production output increases. iPhone demand is plenty strong right now, especially as it increases in popularity in emerging markets like India, Vietnam, Indonesia, and Mexico. As consumers in these markets accumulate wealth, it seems a shiny new Apple product is the pinnacle of attaining a slice of American affluence.
Of course, iPhone 14 prices were hiked in some markets (but not the U.S.), and that no doubt is helping keep revenues on the rise. Nevertheless, same as last quarter, CEO Tim Cook and the top team continue to report consumers are eating the premium phone prices and keep buying.
The dollar is one glaring issue to be mindful of
All was not perfect, though, and a single external factor is throttling Apple's strength: the inexorable rise of the U.S. dollar. A side-effect of the U.S. Federal Reserve's historic interest rate hikes, the dollar has strengthened against other currencies by a double-digit percentage this year. When companies like Apple make an overseas sale and then convert it back into dollars, that reduces reported growth.
Specifically, Apple CFO Luca Maestri said 8% total revenue growth would have been six percentage points higher (or 14%) in the last quarter if not for this exchange rate headwind.
King Dollar will take a bigger toll to kick off Apple's first quarter of 2023 (which ends in December 2022). Maestri said overall revenue growth will decelerate from the 8% just reported primarily because of a nearly 10 percentage point expected impact from currency exchange.
This will have an even bigger drag on operating profit. In the just reported quarter, earnings per share grew 4% year-over-year, lower than the pace revenue increased. This is because once weakened overseas currency is brought back to Apple's home in the states, it's also expensed in stronger dollars as well, causing a headwind for profit margins.
At any rate, Apple is still forecasting gradual expansion, and eventually a strong dollar will cool off -- and maybe even give back a little ground to other currencies, which would be a revenue and profit benefit to Apple. The iPhone company isn't setting the world ablaze with massive growth numbers. However, in light of the negativity out there on the state of the world economy, that's totally fine. I'm sure Buffett himself is pleased.
Apple stock trades for just shy of 24 times fiscal 2022 earnings as of this writing. If you believe Apple can keep cranking out an average high-single-digit earnings per share increase each year through the rest of the 2020s, it's a fair premium to pay for this relative "safe-haven" Buffett stock.
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Nicholas Rossolillo and his clients have positions in Apple and Berkshire Hathaway (B shares). The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With a total stake of some $133 billion, Apple (NASDAQ: AAPL) makes up some 40% of Warren Buffett's stock portfolio. Specifically, Apple CFO Luca Maestri said 8% total revenue growth would have been six percentage points higher (or 14%) in the last quarter if not for this exchange rate headwind. This is because once weakened overseas currency is brought back to Apple's home in the states, it's also expensed in stronger dollars as well, causing a headwind for profit margins.
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With a total stake of some $133 billion, Apple (NASDAQ: AAPL) makes up some 40% of Warren Buffett's stock portfolio. This was driven by a nearly 10% year-over-year increase in iPhone sales ($42.6 billion, or 47% of total revenue) in the quarter. In the just reported quarter, earnings per share grew 4% year-over-year, lower than the pace revenue increased.
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With a total stake of some $133 billion, Apple (NASDAQ: AAPL) makes up some 40% of Warren Buffett's stock portfolio. At any rate, Apple is still forecasting gradual expansion, and eventually a strong dollar will cool off -- and maybe even give back a little ground to other currencies, which would be a revenue and profit benefit to Apple. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Nicholas Rossolillo and his clients have positions in Apple and Berkshire Hathaway (B shares).
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With a total stake of some $133 billion, Apple (NASDAQ: AAPL) makes up some 40% of Warren Buffett's stock portfolio. This was driven by a nearly 10% year-over-year increase in iPhone sales ($42.6 billion, or 47% of total revenue) in the quarter. How is the iPhone doing it?
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18672.0
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2022-10-28 00:00:00 UTC
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Where Will Meta Platforms Be In 1 Year?
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AAPL
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https://www.nasdaq.com/articles/where-will-meta-platforms-be-in-1-year
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Meta Platforms' (NASDAQ: META) stock price sank 20% to its lowest levels in nearly seven years after it posted its third-quarter earnings report. The social media giant's revenue fell 4% year over year to $27.7 billion, which cleared analysts' estimates by $310 million but marked its second consecutive quarter of declining revenue. Its net income plunged 52% to $4.4 billion, or $1.64 per share, which broadly missed the consensus forecast by $0.22.
Meta's dismal results weren't surprising, since Snap (NYSE: SNAP) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) had also recently posted soft ad sales growth in their latest quarters. Meta's investments in its virtual reality (VR) devices and short video content had also been expected to squeeze its operating margins and throttle its earnings growth.
Image source: Meta Platforms.
However, Meta's steep post-earnings sell-off indicates investors aren't willing to forgive those flaws anymore. Inflation, rising interest rates, and other macro headwinds are driving investors toward more conservative investments. Can Meta impress investors again over the next 12 months, or is this stock doomed to stagnate or drop even further?
How ugly was Meta's slowdown?
Meta's growth in revenue, MAP (monthly active people) across its family of apps (Facebook, Messenger, Instagram, and WhatsApp), operating margins, and net income was strong throughout 2020 and 2021, even as the pandemic temporarily disrupted digital ad sales. But some huge cracks appeared over the past three quarters.
SEGMENT
Q3 2022
Q2 2022
Q1 2022
2021
2020
Revenue growth (YOY)
(4%)
(1%)
7%
37%
22%
Family MAP growth (YOY)
4%
4%
6%
9%
14%
Operating margin
20%
29%
31%
40%
38%
Net income growth (YOY)
(52%)
(36%)
(21%)
35%
58%
Data source: Meta Platforms. YOY = Year over year.
That slowdown occurred because its core advertising business, which generated 98% of its revenue in Q3, faces three main headwinds: Macroeconomic challenges for digital ads, competition from ByteDance's TikTok, and Apple's (NASDAQ: AAPL) privacy changes on iOS. The strengthening dollar is also reducing its overseas revenue.
To stop that bleeding, Meta has been aggressively promoting its short videos on Instagram Reels and Facebook Watch -- but that strategy has been reducing its near-term margins because short videos are more difficult to monetize than regular ads. It's also been investing in more first-party data mining solutions to counter Apple's platform changes, which primarily targeted apps that were heavily dependent on third-party data.
But as Meta ramps up its spending on short videos and first-party data, it's also burning billions of dollars to expand the Reality Labs' metaverse with new devices and software. This segment, which generated just 1% of Meta's revenue in Q3, has lost a whopping $26.3 billion over the past 33 months while generating a mere $4.9 billion in total revenue.
SEGMENT
Q3 2022
Q2 2022
Q1 2022
2021
2020
Reality Labs revenue
$285 million
$452 million
$695 million
$2.28 Billion
$1.14 Billion
Reality Labs operating income
($3.67 billion)
($2.81 billion)
($2.96 billion)
($10.19 billion)
($6.62 billion)
Data source: Meta Platforms.
That's deeply troubling since Meta's Horizon Worlds platform (for its VR users) reportedly peaked at about 300,000 active users in early 2022 -- and now only serves about 200,000 users. That's a tiny drop in the pond compared to the 3.71 billion people who access its family of apps every month.
If we exclude the Reality Labs segment from Meta's Q3 numbers, its operating margin would jump from 20% to 34%. That's why many investors have been urging Meta to downsize (or completely eliminate) this struggling division.
Will Meta get its act together over the next 12 months?
Meta expects its revenue to decline 3% to 11% year over year in the fourth quarter, which includes a seven-percentage-point drop from currency headwinds. The midpoint of that guidance implies its revenue will dip 2% for the full year, compared to analysts' expectations for a 1% decline.
Analysts expect Meta's operating margin to decline to 28% this year and slip to 27% in 2023, but those estimates could be far too optimistic in light of the company's near-term spending plans. Meta expects its total expenses to rise from $85 billion to $87 billion in 2022 to $96 billion to $101 billion in 2023. During the conference call, CFO Dave Wehner warned that the Reality Labs division's operating losses will still "grow significantly year over year" in 2023 as it rolls out its next Quest headset.
Simply put, investors should brace for sluggish revenue growth, rising expenses, and shrinking margins throughout 2023. Only two catalysts might bring the bulls back to Meta: the stabilization of its advertising business, or the complete shutdown of Reality Labs. But I don't expect either of those things to happen anytime soon.
Meta's stock might seem cheap at 11 times forward earnings right now, but it won't command a higher valuation until it resolves those pressing issues.
10 stocks we like better than Meta Platforms, Inc.
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Suzanne Frey, an executive at Alphabet, 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. Leo Sun has positions in Alphabet (A shares), Apple, and Meta Platforms, Inc. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, and Meta Platforms, Inc. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That slowdown occurred because its core advertising business, which generated 98% of its revenue in Q3, faces three main headwinds: Macroeconomic challenges for digital ads, competition from ByteDance's TikTok, and Apple's (NASDAQ: AAPL) privacy changes on iOS. Meta's growth in revenue, MAP (monthly active people) across its family of apps (Facebook, Messenger, Instagram, and WhatsApp), operating margins, and net income was strong throughout 2020 and 2021, even as the pandemic temporarily disrupted digital ad sales. But as Meta ramps up its spending on short videos and first-party data, it's also burning billions of dollars to expand the Reality Labs' metaverse with new devices and software.
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That slowdown occurred because its core advertising business, which generated 98% of its revenue in Q3, faces three main headwinds: Macroeconomic challenges for digital ads, competition from ByteDance's TikTok, and Apple's (NASDAQ: AAPL) privacy changes on iOS. Meta's growth in revenue, MAP (monthly active people) across its family of apps (Facebook, Messenger, Instagram, and WhatsApp), operating margins, and net income was strong throughout 2020 and 2021, even as the pandemic temporarily disrupted digital ad sales. 2021 2020 Revenue growth (YOY) (4%) (1%) 7% 37% 22% Family MAP growth (YOY) 4% 4% 6% 9% 14% Operating margin 20% 29% 31% 40% 38% Net income growth (YOY) (52%) (36%) (21%) 35% 58% Data source: Meta Platforms.
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That slowdown occurred because its core advertising business, which generated 98% of its revenue in Q3, faces three main headwinds: Macroeconomic challenges for digital ads, competition from ByteDance's TikTok, and Apple's (NASDAQ: AAPL) privacy changes on iOS. Meta Platforms' (NASDAQ: META) stock price sank 20% to its lowest levels in nearly seven years after it posted its third-quarter earnings report. 2021 2020 Reality Labs revenue $285 million $452 million $695 million $2.28 Billion $1.14 Billion Reality Labs operating income ($3.67 billion) ($2.81 billion) ($2.96 billion) ($10.19 billion) ($6.62 billion) Data source: Meta Platforms.
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That slowdown occurred because its core advertising business, which generated 98% of its revenue in Q3, faces three main headwinds: Macroeconomic challenges for digital ads, competition from ByteDance's TikTok, and Apple's (NASDAQ: AAPL) privacy changes on iOS. But as Meta ramps up its spending on short videos and first-party data, it's also burning billions of dollars to expand the Reality Labs' metaverse with new devices and software. 10 stocks we like better than Meta Platforms, Inc.
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18673.0
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2022-10-28 00:00:00 UTC
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US STOCKS-Futures sink as grim forecasts from Amazon, Apple fan recession fears
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-sink-as-grim-forecasts-from-amazon-apple-fan-recession-fears
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures down: Dow 0.30%, S&P 0.79%, Nasdaq 1.16%
Oct 28 (Reuters) - U.S. stock index futures tumbled on Friday as gloomy forecasts from megacaps Amazon and Apple heightened fears that the Federal Reserve's aggressive interest rate hikes were finally slowing the economy and could hammer corporate earnings.
Amazon.com Inc AMZN.O joined a chorus of Big Tech firms that have disappointed investors this week by forecasting a slowdown in sales growth for the all-important holiday season and warned of a hit to consumers' purchasing power. Shares cratered 13.6% in premarket trade.
Apple Inc AAPL.O cautioned revenue growth could see some pressure in the December quarter but shares edged 0.6% higher as the iPhone maker's fourth-quarter results showed some resilience.
Shares of other megacap tech companies such as Microsoft MSFT.O, Google-parent Alphabet GOOGL.O and Meta Platforms META.O, which reported downbeat earnings earlier this week, were down between 0.4% and 1.3%. Their shares are down between 6% and 25% for the week.
Tech sector earnings were viewed as a major test of the strength of corporate America in the face of decades-high inflation and the dismal results have fed into fears of a looming recession from aggressive monetary policy tightening by the Federal Reserve.
While another 75 basis point rate hike from the Fed next week is largely priced in, traders are now waiting for a key U.S. inflation data due at 8:30 am ET to gauge whether the central bank could ease its pace of rate hikes in December.
The report is expected to show the Personal Consumption Expenditures Index (PCE), the Fed's preferred inflation measure, climbed 5.2% on a year-over-year basis in September when stripped of volatile food and energy costs.
At 4:32 a.m. ET, Dow e-minis 1YMcv1 were down 97 points, or 0.3%, S&P 500 e-minis EScv1 were down 30 points, or 0.79%, and Nasdaq 100 e-minis NQcv1 were down 130.75 points, or 1.16%.
A report on Thursday showing a rebound in U.S. economic growth in the third quarter had helped ease slowdown fears.
Twitter TWTR.N was set to be delisted from the New York Stock Exchange, a day after Tesla TSLA.O chief Elon Musk completed his $44 billion acquisition of the social media company. Arch Capital Group ACGL.O will replace Twitter on the S&P 500 from Nov. 1.
Shares of Tesla were down 1.1% premarket.
(Reporting by Amruta Khandekar; Editing by Sriraj Kalluvila)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O cautioned revenue growth could see some pressure in the December quarter but shares edged 0.6% higher as the iPhone maker's fourth-quarter results showed some resilience. Amazon.com Inc AMZN.O joined a chorus of Big Tech firms that have disappointed investors this week by forecasting a slowdown in sales growth for the all-important holiday season and warned of a hit to consumers' purchasing power. Tech sector earnings were viewed as a major test of the strength of corporate America in the face of decades-high inflation and the dismal results have fed into fears of a looming recession from aggressive monetary policy tightening by the Federal Reserve.
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Apple Inc AAPL.O cautioned revenue growth could see some pressure in the December quarter but shares edged 0.6% higher as the iPhone maker's fourth-quarter results showed some resilience. Futures down: Dow 0.30%, S&P 0.79%, Nasdaq 1.16% Oct 28 (Reuters) - U.S. stock index futures tumbled on Friday as gloomy forecasts from megacaps Amazon and Apple heightened fears that the Federal Reserve's aggressive interest rate hikes were finally slowing the economy and could hammer corporate earnings. While another 75 basis point rate hike from the Fed next week is largely priced in, traders are now waiting for a key U.S. inflation data due at 8:30 am ET to gauge whether the central bank could ease its pace of rate hikes in December.
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Apple Inc AAPL.O cautioned revenue growth could see some pressure in the December quarter but shares edged 0.6% higher as the iPhone maker's fourth-quarter results showed some resilience. Futures down: Dow 0.30%, S&P 0.79%, Nasdaq 1.16% Oct 28 (Reuters) - U.S. stock index futures tumbled on Friday as gloomy forecasts from megacaps Amazon and Apple heightened fears that the Federal Reserve's aggressive interest rate hikes were finally slowing the economy and could hammer corporate earnings. Shares of other megacap tech companies such as Microsoft MSFT.O, Google-parent Alphabet GOOGL.O and Meta Platforms META.O, which reported downbeat earnings earlier this week, were down between 0.4% and 1.3%.
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Apple Inc AAPL.O cautioned revenue growth could see some pressure in the December quarter but shares edged 0.6% higher as the iPhone maker's fourth-quarter results showed some resilience. Futures down: Dow 0.30%, S&P 0.79%, Nasdaq 1.16% Oct 28 (Reuters) - U.S. stock index futures tumbled on Friday as gloomy forecasts from megacaps Amazon and Apple heightened fears that the Federal Reserve's aggressive interest rate hikes were finally slowing the economy and could hammer corporate earnings. Their shares are down between 6% and 25% for the week.
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18674.0
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2022-10-28 00:00:00 UTC
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European shares fall on commodity weakness, mixed earnings
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AAPL
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https://www.nasdaq.com/articles/european-shares-fall-on-commodity-weakness-mixed-earnings-0
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nan
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By Sruthi Shankar
Oct 28 (Reuters) - European shares fell on Friday, knocked by weaker commodity prices and mixed earnings reports, as investors assessed the path for monetary policy tightening amid slowing economic growth.
The pan-European STOXX 600 index .STOXX fell 0.7%, with miners .SXPP leading the losses as commodity prices dropped on worries about China's expanding COVID-19 restrictions. O/RMET/L
The benchmark index closed flat on Thursday after the European Central Bank raised interest rates as expected but said "substantial" progress had already been made in its bid to fight off a historic surge in inflation.
"The market reaction suggests that investors interpreted the change in language regarding future interest rate hikes as a dovish signal," analysts at BCA Research wrote in a note.
"Indeed, economic conditions warrant a slowdown in the pace of tightening."
Data showed France's economy eked out meagre growth in the third quarter but a sharp spike in inflation pointed to the headwinds looming in the final quarter of the year.
French blue-chip shares .FCHI slipped 0.6% after numbers also showed consumer prices in October spiralled to a record high of 7.1% year-over-year.
Another data set showed the German economy grew unexpectedly in the third quarter as Europe's largest economy staved off the threat of recession for now despite high inflation and concerns over energy supply. Germany's DAX .GDAXI slipped 0.8%.
Europe's technology stocks .SX8P fell 2.2% as a rout among Wall Street peers looked set to continue after a dire holiday-quarter forecast from Amazon.com Inc AMZN.O and a grim outlook from Apple Inc AAPL.O. .N
Nearly half of the STOXX 600 companies have reported so far, with a net 20% topping analysts' profit estimates, signalling a healthy beat, according to Morgan Stanley analysts. They, however, also pointed out that earnings revisions remain negative.
Volkswagen VOWG_p.DE dropped 2.3% after Europe's top carmaker reported third-quarter earnings behind pre-pandemic levels and said it expected deliveries to be similar to last year.
Danone DANO.PA gained 2.3% after raising its 2022 revenue growth forecast, as the French food group was able to increase prices to counter soaring costs.
Air France-KLM AIRF.PA fell 9.3% after the airline trimmed its capacity outlook for the winter.
In London, IAG ICAG.L, the owner of British Airways, slipped 1.4% as its third-quarter revenue returned to pre-pandemic levels, while Natwest Group NWG.L slumped 7.8% after the bank reported flat a quarterly profit, hit by bad loan charges from a worsening economic outlook and the cost of exiting its Irish business. ($1 = 1.0056 euros)
(Reporting by Sruthi Shankar in Bengaluru; Editing by Rashmi Aich and Savio D'Souza)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Europe's technology stocks .SX8P fell 2.2% as a rout among Wall Street peers looked set to continue after a dire holiday-quarter forecast from Amazon.com Inc AMZN.O and a grim outlook from Apple Inc AAPL.O. By Sruthi Shankar Oct 28 (Reuters) - European shares fell on Friday, knocked by weaker commodity prices and mixed earnings reports, as investors assessed the path for monetary policy tightening amid slowing economic growth. O/RMET/L The benchmark index closed flat on Thursday after the European Central Bank raised interest rates as expected but said "substantial" progress had already been made in its bid to fight off a historic surge in inflation.
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Europe's technology stocks .SX8P fell 2.2% as a rout among Wall Street peers looked set to continue after a dire holiday-quarter forecast from Amazon.com Inc AMZN.O and a grim outlook from Apple Inc AAPL.O. O/RMET/L The benchmark index closed flat on Thursday after the European Central Bank raised interest rates as expected but said "substantial" progress had already been made in its bid to fight off a historic surge in inflation. Volkswagen VOWG_p.DE dropped 2.3% after Europe's top carmaker reported third-quarter earnings behind pre-pandemic levels and said it expected deliveries to be similar to last year.
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Europe's technology stocks .SX8P fell 2.2% as a rout among Wall Street peers looked set to continue after a dire holiday-quarter forecast from Amazon.com Inc AMZN.O and a grim outlook from Apple Inc AAPL.O. By Sruthi Shankar Oct 28 (Reuters) - European shares fell on Friday, knocked by weaker commodity prices and mixed earnings reports, as investors assessed the path for monetary policy tightening amid slowing economic growth. Data showed France's economy eked out meagre growth in the third quarter but a sharp spike in inflation pointed to the headwinds looming in the final quarter of the year.
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Europe's technology stocks .SX8P fell 2.2% as a rout among Wall Street peers looked set to continue after a dire holiday-quarter forecast from Amazon.com Inc AMZN.O and a grim outlook from Apple Inc AAPL.O. By Sruthi Shankar Oct 28 (Reuters) - European shares fell on Friday, knocked by weaker commodity prices and mixed earnings reports, as investors assessed the path for monetary policy tightening amid slowing economic growth. The pan-European STOXX 600 index .STOXX fell 0.7%, with miners .SXPP leading the losses as commodity prices dropped on worries about China's expanding COVID-19 restrictions.
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2022-10-28 00:00:00 UTC
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Apple Music Just Raised Its Prices. Here's What It Means for Spotify
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AAPL
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https://www.nasdaq.com/articles/apple-music-just-raised-its-prices.-heres-what-it-means-for-spotify
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Big news hit the music streaming industry when Apple (NASDAQ: AAPL) announced this week that it is raising the price of Apple Music in the United States. Formerly, the premium music subscription was $9.99 a month, but it will increase $1 to $10.99. This comes along with price hikes across other Apple subscription services like Apple TV+.
Competing audio streaming company Spotify (NYSE: SPOT) saw its stock jump 5% on the news, likely because investors became more bullish about the Swedish upstart's competitive position in the music industry.
Here's why an Apple Music price hike should be good news for Spotify's business moving forward.
Price increases give Spotify breathing room
Apple Music's standard subscription now costs $10.99 a month. Currently, in the United States, Spotify is charging $9.99 a month, the same price it launched at over 10 years ago.
One of the bear cases on Spotify is that its main competition (Apple, Amazon, and YouTube) are just small subsidiaries of giant technology companies and that they will not care about raising prices for music streaming even if the business is losing money. This stance could inhibit Spotify from raising its prices. That seems to be changing with this recent announcement.
With inflation raging at 7% to 10% a year, there's no reason to think Spotify couldn't match Apple Music's price increase (at least in the United States) or go for an even higher monthly price in the coming years.
Outside its standard plan, Spotify has popular student and family plans. The student plan will not be affected by these developments, with both Apple Music and Spotify charging $5 a month for people with college emails.
But the Spotify family plan should look more attractive for Apple Music subscribers at just $16 a month for up to six users, only $5 more than Apple Music. This could convince people to switch as well as enable Spotify to raise the price of its family plan, which it did in 2021 with zero impact on customer churn.
Lastly, Spotify is rumored to be planning an extra-premium tier called Spotify Platinum, which it recently surveyed users about. The subscription is going to cost more per month and -- if launched -- will include better audio quality, limited advertisements on podcasts, and other features. Apple Music already offers this improved audio quality for all subscribers, so this price increase should make Spotify Platinum more competitive if/when it becomes available for purchase.
Overall, Apple Music raising prices gives Spotify breathing room that many investors didn't think it had, which should benefit the business in the future.
How Spotify could benefit financially
So we now understand that Apple Music raising prices will be good for Spotify, but let's put some numbers together and see how much of an impact it could have financially.
Spotify currently has 195 million premium subscribers. We don't know the mix of standard, student, and premium plans, but let's assume that the company has the ability to raise prices by an average of $1 a month for all of its subscribers around the globe. That would be $12 a year per subscriber, which equates to $2.34 billion in annual revenue. This is meaningful, as over the past 12 months Spotify has generated $12 billion in revenue.
Of course, Spotify won't raise prices on all its plans in all its markets tomorrow. But I think this exercise shows how easily the company could grow its revenue without adding any new subscribers due to the embedded pricing power it has at its disposal.
If you own Spotify stock, this Apple price hike should be music to your ears. With shares down 60% this year, now could be a good time to buy some shares of Spotify for your portfolio.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Brett Schafer has positions in Spotify Technology. The Motley Fool has positions in and recommends Amazon, Apple, and Spotify Technology. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Big news hit the music streaming industry when Apple (NASDAQ: AAPL) announced this week that it is raising the price of Apple Music in the United States. Competing audio streaming company Spotify (NYSE: SPOT) saw its stock jump 5% on the news, likely because investors became more bullish about the Swedish upstart's competitive position in the music industry. One of the bear cases on Spotify is that its main competition (Apple, Amazon, and YouTube) are just small subsidiaries of giant technology companies and that they will not care about raising prices for music streaming even if the business is losing money.
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Big news hit the music streaming industry when Apple (NASDAQ: AAPL) announced this week that it is raising the price of Apple Music in the United States. Here's why an Apple Music price hike should be good news for Spotify's business moving forward. Price increases give Spotify breathing room Apple Music's standard subscription now costs $10.99 a month.
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Big news hit the music streaming industry when Apple (NASDAQ: AAPL) announced this week that it is raising the price of Apple Music in the United States. With inflation raging at 7% to 10% a year, there's no reason to think Spotify couldn't match Apple Music's price increase (at least in the United States) or go for an even higher monthly price in the coming years. But the Spotify family plan should look more attractive for Apple Music subscribers at just $16 a month for up to six users, only $5 more than Apple Music.
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Big news hit the music streaming industry when Apple (NASDAQ: AAPL) announced this week that it is raising the price of Apple Music in the United States. But the Spotify family plan should look more attractive for Apple Music subscribers at just $16 a month for up to six users, only $5 more than Apple Music. That would be $12 a year per subscriber, which equates to $2.34 billion in annual revenue.
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18676.0
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2022-10-28 00:00:00 UTC
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Apple Stock: The Big Tech Winner Has an “Attractive” Risk-Reward Profile, Says Deutsche Bank
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AAPL
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https://www.nasdaq.com/articles/apple-stock%3A-the-big-tech-winner-has-an-attractive-risk-reward-profile-says-deutsche-bank
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Did Apple (AAPL) just do some flexing? While all its big tech brethren were taking massive hits in this giant-killing earnings season, Apple emerged unscathed from the carnage and delivered a healthy F4Q report, even while iPhone sales came in soft.
There were beats on both the top-and bottom-line. The company delivered record sales in the September quarter, as revenue rose by 8.1% year-over-year to reach $90.15 billion, coming in $1.38 billion above Street expectations. EPS hit $1.29, 2 cents higher than the $1.27 the analysts had predicted.
It was not all plain sailing, however; iPhone revenue increased by 9.67% from the same period last year to $42.63 billion but came in shy of the $43.21 billion estimated on Wall Street, while Services revenue also missed, climbing 4.98% higher to $19.19 billion vs. The $20.10 billion the analysts had in mind. These misses were somewhat offset but strong showings elsewhere, with Mac revenue rising by 25.39% year-over-year to $11.51 billion, some distance above the $9.36 billion predicted. And Other Products revenue came in at $9.65 billion vs. the $9.17 billion estimate, up 9.85% year-over-year
As has become customary at Apple, no official guidance was offered for FQ1 (December quarter) which normally accounts for the biggest sales season of the year. However, management said it expects year-over-year revenue won’t grow as much as the 8.1% seen during the September quarter.
Nevertheless, considering the disastrous showings on offer elsewhere, Deutsche Bank’s Sidney Ho highlights how Apple stands out from the crowd.
“AAPL has executed well in a tough environment and its earnings power seems more sustainable than large-cap tech peers,” the 5-star analyst said. “We see a slightly above-average valuation vs. peers as fair when we compare AAPL's total growth potential and earnings power with the growth expectations of the peer group. With steady gross and operating margins and a solid balance sheet, we see the potential reward from stock outperformance as skewed positively when compared with the company's risk profile.”
With a risk-reward profile which “remains attractive,” Ho reiterated a Buy rating, although taking a prudent approach, the price target is lowered from $175 to $170. There’s upside of 17% from current levels. (To watch Ho’s track record, click here)
Overall, Apple has garnered 27 reviews over the past 3 months, with 23 Buys outpacing the 4 Holds, making for a Strong Buy consensus rating. The average target stands at $183.37, suggesting shares will climb 27% higher in the year ahead. (See Apple stock forecast on TipRanks)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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“AAPL has executed well in a tough environment and its earnings power seems more sustainable than large-cap tech peers,” the 5-star analyst said. Did Apple (AAPL) just do some flexing? “We see a slightly above-average valuation vs. peers as fair when we compare AAPL's total growth potential and earnings power with the growth expectations of the peer group.
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“We see a slightly above-average valuation vs. peers as fair when we compare AAPL's total growth potential and earnings power with the growth expectations of the peer group. Did Apple (AAPL) just do some flexing? “AAPL has executed well in a tough environment and its earnings power seems more sustainable than large-cap tech peers,” the 5-star analyst said.
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Did Apple (AAPL) just do some flexing? “AAPL has executed well in a tough environment and its earnings power seems more sustainable than large-cap tech peers,” the 5-star analyst said. “We see a slightly above-average valuation vs. peers as fair when we compare AAPL's total growth potential and earnings power with the growth expectations of the peer group.
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“AAPL has executed well in a tough environment and its earnings power seems more sustainable than large-cap tech peers,” the 5-star analyst said. Did Apple (AAPL) just do some flexing? “We see a slightly above-average valuation vs. peers as fair when we compare AAPL's total growth potential and earnings power with the growth expectations of the peer group.
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18677.0
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2022-10-28 00:00:00 UTC
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With Talk of a Recession Brewing, Here's How Investors Can Prepare to Ride Out the Storm
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AAPL
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https://www.nasdaq.com/articles/with-talk-of-a-recession-brewing-heres-how-investors-can-prepare-to-ride-out-the-storm
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Nowadays, you'd be hard-pressed to find any conversation about the economy that didn't center around a looming recession. On a basic level, a recession is a large decline in economic activity that lasts for at least a few months.
Regardless of whether things happen as people expect, it's always better to be overprepared than underprepared. Here's how investors can ride out the recession storm.
Image source: Getty Images
Prioritize your emergency fund
Before you focus on investing, your priority should be to have an emergency fund. This money gives you breathing room in case an unexpected emergency occurs. It could be from a job loss, car repair, or house repair. Nobody likes unexpected expenses, but emergencies, unfortunately, happen.
You don't want to be in a position where you have to take out a loan or sell your stocks to cover an expense. Both options are expensive, whether due to the interest charged or potential tax implications.
The general rule of thumb is to have three to six months' worth of expenses saved. If you're single and only responsible for yourself, you could feel comfortable with three months. If you have a family and children, you should aim for the higher range. Given the increased uncertainty that comes with a recession, it may be better to aim for six months to a year's worth of expenses saved.
Lean on blue chip stocks
There are great stocks, and then there are blue chip stocks. These are well-established household names that have proven they can produce good long-term returns, regardless of the broader economic conditions. Take companies like Apple (NASDAQ: AAPL), Coca-Cola, and Walmart, for example. They are industry leaders with dependable business models and strong balance sheets, which are important for a company to weather bad economic storms.
Although not every blue chip stock pays a dividend, many have long histories of not only reliably paying dividends but also increasing them over time. You can't predict how a stock's price will move, but you'll know how much a dividend payout will be and when you'll get it.
All three blue chip stocks mentioned above are down (sometimes significantly) in 2022, yet all their shareholders have received dividend payouts during that time. Dividends can reward investors for being patient and holding onto a stock.
Spread out some of the risks
There's no risk-free stock investment, no matter how foolproof an investment may seem. However, investors can minimize some of this risk by relying on broad exchange-traded funds (ETFs). ETFs contain many different stocks in a single investment.
ETFs that focus on large-cap companies (those with a market cap of at least $10 billion) can be a way for investors to get the long-term stability that typically comes with larger-cap companies, while also getting the diversification that comes with broad-based ETFs. Take an ETF like the Vanguard S&P 500 ETF (NYSEMKT: VOO), for instance, which contains the 500 largest public U.S. companies spanning all major sectors.
You never want the success of your portfolio to be too reliant on too few companies at any time, but it's especially true during rough economic times.
Stay the course
If you're anxious about the economic future, it can be tempting to stop investing until there are brighter days. But this can be counterproductive to your long-term financial goals, especially if you have time and the means to keep it going. Stock prices generally drop significantly during recessions, but it can be a chance to grab some great stocks at a discount.
Investors often find that the best returns on their investments come when they buy during down periods and eventually reap the full benefits of a recovery. If you're focused on the long term -- which is a proven way to invest successfully -- you don't want to make short-term decisions that go against your best interests.
Preparing to weather a recession and take advantage of it by continuing to invest when prices are lower is one of the best things any investor can do right now.
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*Stock Advisor returns as of September 30, 2022
Stefon Walters has positions in Apple and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Apple, Vanguard S&P 500 ETF, and Walmart Inc. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Take companies like Apple (NASDAQ: AAPL), Coca-Cola, and Walmart, for example. They are industry leaders with dependable business models and strong balance sheets, which are important for a company to weather bad economic storms. Investors often find that the best returns on their investments come when they buy during down periods and eventually reap the full benefits of a recovery.
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Take companies like Apple (NASDAQ: AAPL), Coca-Cola, and Walmart, for example. Although not every blue chip stock pays a dividend, many have long histories of not only reliably paying dividends but also increasing them over time. The Motley Fool has positions in and recommends Apple, Vanguard S&P 500 ETF, and Walmart Inc.
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Take companies like Apple (NASDAQ: AAPL), Coca-Cola, and Walmart, for example. Lean on blue chip stocks There are great stocks, and then there are blue chip stocks. 10 stocks we like better than Vanguard S&P 500 ETF When our award-winning analyst team has a stock tip, it can pay to listen.
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Take companies like Apple (NASDAQ: AAPL), Coca-Cola, and Walmart, for example. ETFs contain many different stocks in a single investment. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Vanguard S&P 500 ETF wasn't one of them!
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18678.0
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2022-10-27 00:00:00 UTC
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Apple (AAPL) Q4 2022 Earnings Call Transcript
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-q4-2022-earnings-call-transcript
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Image source: The Motley Fool.
Apple (NASDAQ: AAPL)
Q4 2022 Earnings Call
Oct 27, 2022, 5:00 p.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good day, and welcome to the Apple Q4 fiscal year 2022earnings conference call For your information, today's call is being recorded. At this time, for opening remarks and introductions, I would like to turn the call over to Tejas Gala, director of investor relations and corporate finance. Please go ahead.
Tejas Gala -- Director of Investor Relations and Corporate Finance
Speaking first today is Apple's CEO, Tim Cook; and he'll be followed by CFO, Luca Maestri. After that, we'll open the call to questions from analysts. Before turning the call over to Tim, I would like to remind you that approximately once every six years, we add a week to the December quarter to realign our fiscal periods with the December calendar. So this December quarter will span 14 weeks rather than the usual 13 and will end on December 31.
Please note that some of the information you'll hear during our discussion today will consist of forward-looking statements, including, without limitation, those regarding revenue, gross margin, operating expense, other income and expense, taxes, capital allocation, and future business outlook, including the potential impact of COVID-19 on the company's business and results of operations. These statements involve risks and uncertainties that may cause actual results or trends to differ materially from our forecast. For more information, please refer to the risk factors discussed in Apple's most recently filed annual report on Form 10-K and the Form 8-K filed with the SEC today, along with the associated press release. Apple assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.
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I'd now like to turn the call over to Tim for introductory remarks.
Tim Cook -- Chief Executive Officer
Thank you, Tejas. Good afternoon, everyone, and thank you for joining the call today. Over the past year, despite a range of challenges facing the world, our teams have come together in incredible ways to drive unparalleled innovation and deliver again and again for our customers.For the September quarter, we reported record revenue of $90.1 billion, which was better than we anticipated despite stronger-than-expected foreign currency headwinds. We set an all-time revenue record for Mac and September quarter records for iPhone and wearables, home, and accessories.
Services notched a September quarter record as well with revenue of $19.2 billion and more than 900 million paid subscriptions. We reached another record on our installed base of active devices, thanks to a quarterly record of upgraders and double-digit growth in switchers on iPhone. Across nearly every geographic segment, we reached a new revenue record for the quarter. And we continue to perform incredibly well in emerging markets with very strong double-digit growth in India, Southeast Asia, and Latin America.
I'm also happy to report that during the quarter, silicon-related supply constraints were not significant. I want to acknowledge that we are still living through unprecedented times. From war in Eastern Europe to the persistence of COVID-19, from climate disasters around the world to an increasingly difficult economic environment, a lot of people and a lot of places are struggling. Through it all, we've aimed to help our customers navigate through the challenges while giving them the tools to drive progress for themselves and their communities.
At Apple, creativity and collaboration have always been at the core of who we are. That spirit of ingenuity and teamwork helped us provide our customers with incredible innovations this year and led to another yearly revenue record. In fiscal 2022, Apple achieved revenue of $394 billion, representing 8% annual growth. We set records for iPhone, Mac, wearables, home and accessories and services while growing double-digits in emerging markets and setting records in the vast majority of markets we track.
Customers are loving our iPhone 14 lineup. Loaded with camera upgrades for sharper photos, Action Mode for smoother videos and new safety features like Crash Detection and Emergency SOS via Satellite, iPhone is even more indispensable to our daily lives. iPhone 14 and iPhone 14 Plus come with a new dual-camera system, industry-leading durability, incredible power and amazing battery life. And our iPhone 14 Pro models are packed with even more groundbreaking innovations, including a new camera system as well as always-on display and the Dynamic Island, which offers a whole new way to interact with iPhone.
Just yesterday, our most advanced iPad and iPad Pro ever landed in stores. With its all-screen design, advanced cameras and faster wireless connectivity, the tenth-generation iPad looks and performs better than ever. For creatives, iPad Pro, now turbocharged by the blazingly fast M2 chip, is the perfect device to make something amazing. Our Mac customers have already been raving about the power of M2 since the arrival of our newest MacBook Air and MacBook Pro this summer.
Their incredible long battery life, stunningly rich display and lightning-fast speeds are a signature part of the Mac experience and helped drive an all-time record revenue for Mac during the September quarter. In wearables, home and accessories a wave of innovation spurred 10% year-over-year revenue growth during the September quarter. New features in Apple Watch Series 8, including temperature sensing capabilities, retrospective ovulation estimates and crash detection are helping to keep customers healthier and safer. And the updated Apple Watch SE is a great way for users to start their Apple Watch journey, delivering advanced features at a new low price.
The biggest, brightest and boldest Apple Watch ever made, Apple Watch Ultra pushes the boundaries of what a smartwatch can do. Packed with innovations like advanced navigation tools and the new Oceanic+ app, which turns it into a dive computer, Apple Watch Ultra has something for athletes and adventures on land and sea. The second generation of AirPods Pro powered by the new H2 chip are receiving rave reviews for delivering an unmatched wireless earbud audio experience, while canceling up to twice as much noise over the previous model. There's no better place to discover the rich spatial audio capabilities of AirPods Pro than Apple Music, the largest music catalog anywhere now with more than 100 million songs.
And there's no other company that fuses best-in-class hardware with cutting-edge software and services to create a truly integrated and seamless experience. With iOS 16, we're giving customers more ways to personalize their iPhones through a customizable lock screen and focus filters. New features in Messages and Mail enable users to connect and collaborate like never before. Stage Manager in iPadOS 16 and macOS Ventura, helps users stay more productive with smoother multitasking.
And watchOS 9 is empowering customers to live a healthier day through updates to the Sleep App, a new FDA-cleared AFib history feature and the new Medications app. Across our Services, we continue to see enthusiasm and strong engagement from our subscribers. Apple TV Plus hits like Severance, Bad Sisters, and Blackbird have taken center stage on screens around the world. And baseball fans were glued to their seats this season watching Friday Night Baseball.
Meanwhile, Apple TV Plus productions continue to earn accolades. At the 74th Primetime Emmy Awards in September, Apple brought home nine statues, including a second consecutive win for Best Comedy Series for Ted Lasso. And soon, we're going to give audiences an even better entertainment experience when the all-new Apple TV 4K hit stores next week. We're also bringing Fitness+ to more customers than ever by making our entire library of over 3,000 studio-style workouts and meditations available to iPhone users in 21 countries, even those without an Apple Watch.
These updates are arriving just in time for a new Artist Spotlight series with workouts featuring the music of Taylor Swift and a new workout program, Yoga for Every Runner featuring and design with one of the world's top ultramarathon athletes, Scott Jurek. While Fitness+ helps subscribers stay active, Apple Card is designed with our customers' financial health in mind. For the second year in a row, Apple Card has been ranked highest in customer satisfaction for midsized credit card issuers by J.D. Power.
And our users' favorite Apple Card benefit just got even better with the upcoming addition of a new high-yield savings account to help them save and grow their daily cash rewards. Turning to retail. Last month, our team members welcomed customers to the all-new Apple Jamsil in South Korea. And through today at Apple Creative Studios, we partnered with non-profits in cities around the world to help young diverse creatives pursue their passions and connect with local mentors.
And our retail teams have done exceptional work, helping customers explore our latest products and features. As we approach the holiday season with our product lineup set, I'd like to share my gratitude to our retail, AppleCare, and channel teams for the work they are doing to support customers. At Apple, we're proud of the ways we are able to help customers be productive, get healthy, stay safe and unlock their creative potential. We also understand we have important responsibilities to the communities we serve.
That's why we continue to invest in education, racial equity and justice and the environment. And we are making important progress toward a more inclusive and diverse workforce. Through our Community Education Initiative, we're working alongside more than 150 partners to help students around the world learn new science and technology skills. This summer, we joined with community partners to support coding academies across the United States from Code Academy in Nashville to One Summer Chicago to the Coding 5K Camp for Girls right next door in San Jose.
We've also just expanded our racial equity and justice initiative into the U.K. for the first time. Alongside the South Pink Center, we're helping aspiring creators develop their own voices and position themselves for long-lasting careers. Back in the U.S., we welcomed a new class of Black, Latino, and indigenous entrepreneurs to Apple's second Impact Accelerator.
This group of innovators is focused on using green technology to mitigate the effects of climate change and serve communities most affected by it. At Apple, we care deeply about protecting the planet for future generations. To that end, in support of our 2030 environmental goals, we have asked all of our suppliers to become carbon-neutral across their entire Apple-related footprint by the end of the decade. We are also providing them with resources based on what we learned achieving net-zero carbon in our own global operations.
Across our entire product lineup, we also continue to source more materials through recycling while taking less from the Earth. Every iPhone 14 is made with 100% recycled rare-earth elements in all magnets, including those used in MagSafe. And in a first for Apple Watch and iPad, we're using recycled gold in the plating of multiple printed circuit boards in our newest devices. While we're working to reduce the footprint of our hardware, we're making changes to our software to be more environmentally friendly with the soon-to-be released Clean Energy charging feature for iPhone.
Our 2030 goal is a reflection of our relentless focus on the future at Apple. The world continues to be unpredictable as old challenges evolve and new ones emerge. What remains constant is the ability of our teams to create great products, services and experiences while being a force for good in the world. Whatever challenges lie ahead in the new year, we're moving forward, as we always have, investing for the long-term to deliver incredible innovations for our customers like only Apple can.
And now, I'll hand it over to Luca for more details on our performance.
Luca Maestri -- Chief Financial Officer
Thank you, Tim, and good afternoon, everyone. We are very pleased to report record financial results for the September quarter that capped another record fiscal year for Apple despite a challenging and volatile macroeconomic backdrop. We reached a September quarter revenue record of $90.1 billion, up 8% year over year despite over 600 basis points of negative foreign exchange impact, with new September quarter records in the Americas, Europe, Greater China, and rest of Asia Pacific. Importantly, in constant currency, we grew nicely in each of our geographic segments, with strong double-digit growth outside the U.S.
Products revenue was $71 billion, up 9% over last year despite FX headwinds and a record for the September quarter. And it was a September quarter revenue record for iPhone and wearables, home and accessories and an all-time revenue record for Mac. Overall, our installed base of active devices continue to grow nicely. It reached an all-time high for all major product categories and geographic segments at the end of the quarter, thanks to extremely strong customer satisfaction and loyalty and a high number of customers that are new to our products.
Our Services set a September quarter revenue record of $19.2 billion, up 5% over a year ago despite over 600 basis points of negative impact from foreign exchange. We reached September quarter revenue records in the Americas, Europe, Greater China and rest of Asia Pacific and also in many services categories, including all-time revenue records for cloud services and payment services. Company gross margin was a September quarter record at 42.3%. It was down 100 basis points from last quarter due to unfavorable foreign exchange and a different mix, partially offset by leverage.
Products gross margin was 34.6%, up 10 basis points sequentially, with improved leverage and favorable mix partially offset by foreign exchange. Services gross margin was 70.5%, down 100 basis points sequentially, primarily due to foreign exchange. Net income of $20.7 billion, diluted earnings per share of $1.29 and operating cash flow of $24.1 billion were all September quarter records. Let me now get into more detail for each of our revenue categories.
iPhone revenue grew 10% year over year to a September quarter record of $42.6 billion, despite significant foreign exchange headwinds. We set September quarter records in the vast majority of markets we track, and our performance was particularly impressive in several large emerging markets, with India setting a new all-time revenue record and Thailand, Vietnam, Indonesia, and Mexico more than doubling year over year. Thanks to our strong iPhone lineup, we set a quarterly record for upgraders and grew switchers double digits. This level of sales performance, along with unmatched customer loyalty, drove the active installed base of iPhones to a new all-time high across all geographic segments.
And the latest survey of U.S. consumers from 451 Research indicates iPhone customer satisfaction of 98%. It was a great quarter for Mac. We achieved an all-time revenue record of $11.5 billion, up 25% year-over-year, despite significant FX headwinds.
There were three key items that helped drive this performance. First, we benefited from the launch of our new MacBook Air and MacBook Pro powered by the M2 chip. Second, we were able to satisfy pent-up demand that carried forward from the significant supply constraints we faced during the June quarter. Third, as our supply position improved, we were able to fill the channel.
Importantly, our investment in the category has attracted both upgraders and customers new to Mac and helped our installed base reach an all-time high. In fact, we set a quarterly record for upgraders, while nearly half of customers buying Macs during the quarter were new to the device. iPad revenue was $7.2 billion, down 13% year over year due to significant negative foreign exchange and a challenging compare due to the launch of new iPads a year ago. Despite this, the iPad installed base reached a new all-time high, thanks to incredible customer loyalty and a high number of new customers.
In fact, over half of the customers who purchased iPads during the quarter were new to the product. Wearables, home and accessories revenue was $9.7 billion, growing 10% year over year, driven by the launch of Apple Watch and new AirPods Pro. This level of safe performance along with very strong new tool rates, drove our installed base of devices in the category to a new all-time record. For instance, two-thirds of customers purchasing an Apple Watch during the quarter were new to the product.
Moving to Services, as I mentioned, we set a September quarter record in aggregate and in most geographic segments, generating $19.2 billion in revenue in spite of very large foreign exchange headwinds. It is important to remember, that we achieved double-digit constant currency growth in services on top of growing 26% during the September quarter a year ago. However, certain services were impacted by macroeconomic headwinds, including foreign exchange. Digital advertising and gaming are areas where we've seen some softness.
Throughout the quarter, we continued to observe several trends that reflect the strength of our ecosystem and our long-term opportunity in the category. First, our continued installed base growth across each geographic segment and each major product category represents a great foundation for future expansion of our ecosystem. Second, we saw increased customer engagement with our services during the quarter. Both our transacting accounts and paid accounts grew double digits year over year, each setting a new all-time record.
The percentage of accounts that pay for our services continues to increase, and we still see plenty of opportunity ahead of us. Third, paid subscriptions showed very strong growth. We now have more than 900 million paid subscriptions across the services on our platform, up more than 155 million during the last 12 months alone and double what we had just three years ago. We continue investing in new content and features, across our service offerings.
For example, we added several popular sports titles to Apple Arcade. We're also excited about our global partnership with Major League Soccer, where starting next season, fans can stream every single MLS match through the Apple TV app. This momentum helped us achieve over $78 billion in services revenue during fiscal 2022, a new record and up 14% year over year. We continue to invest confidently and believe strongly in the long-term potential of our services business, which is already the size of a Fortune 50 business on its own, and has nearly doubled during the last four years.
It was not only a record year for services but also for our entire company. During the past four quarters, we grew our business by 8% or $29 billion, reaching more than $394 billion of revenue. We grew diluted earnings per share by 9% and generated over $111 billion of free cash flow, up 20% year over year. It was also a strong year for our enterprise business, as we set new annual records for iPhone, iPad and Mac during fiscal 2022 and grew strong double-digits year over year as our devices and services continue to help more and more companies empower their employees and serve their customers.
For instance, Ford Manufacturing employees are using iPad and iPhone to help further improve the quality of its game-changing Ford F-150 Lightning electric trucks. iPhone's powerful A-series chip and advanced camera systems, along with third-party iOS apps, are enabling Ford to automate the visual quality inspection process in real-time to help address issues before they impact customers. And Cisco expanded its Macs as a choice program and is now offering it to all its employees to help attract and retain top talent. And when given this choice, employees have chosen Macs twice as often as other options.
In addition, many enterprise customers are taking advantage of the high residual value of our products and simple trade-in process to standardize the refresh cycles for their fleets of Apple devices. This allows employees to upgrade to the latest devices regularly while making it highly predictable and cost effective for the business. Let me now turn to our cash position. Our business continues to generate very strong cash flow, which enabled us to return over $29 billion to shareholders during the September quarter.
This included $3.7 billion in dividends and equivalents and $25.2 billion through open market repurchases of 160 million Apple shares. We ended the quarter with $169 billion in cash and marketable securities. We repaid $2.8 billion in maturing debt and decreased commercial paper by $1 billion while issuing $5.5 billion of new debt, leaving us with total debt of $120 billion. As a result, net cash was $49 billion at the end of the quarter as we continue to make progress toward our goal of becoming net cash neutral over time.
As we move ahead into the December quarter, I'd like to review our outlook, which includes the types of forward-looking information that Tejas referred to at the beginning of the call. Given the continued uncertainty around the world in the near term, we are not providing revenue guidance but we are sharing some directional insights based on the assumption that the macroeconomic outlook and COVID-related impacts to our business do not worsen from what we are projecting today for the current quarter. Overall, we believe total company year-over-year revenue performance will decelerate during the December quarter as compared to the September quarter for a number of reasons. First, we expect nearly 10 percentage points of negative year-over-year impact from foreign exchange.
Second, on Mac, in addition to increasing FX headwinds, we have a very challenging compare against last year, which had the benefit of the launch and associated channel fill of our newly redesigned MacBook Pro with M1. Therefore, we expect Mac revenue to decline substantially year over year during the December quarter. Specifically on services, we expect to grow but to be impacted by the macroeconomic environment increasingly affecting foreign exchange, digital advertising and gaming. We expect gross margin to be between 42.5% and 43.5%.
We expect opex to be between $14.7 billion and $14.9 billion. We expect OI&E to be around negative $300 million, excluding any potential impact from the mark-to-market of minority investments and our tax rate to be around 16.5%. Finally, today, our board of directors has declared a cash dividend of $0.23 per share of common stock, payable on November 10, 2022, to shareholders of record as of November 7, 2022. With that, let's open the call to questions.
Tejas Gala -- Director of Investor Relations and Corporate Finance
Thank you, Luca. We ask that you limit yourself to two questions. Operator, may we please have the first question?
Questions & Answers:
Operator
We'll go ahead and take our first question from Shannon Cross calling from Credit Suisse. Please go ahead.
Shannon Cross -- Credit Suisse -- Analyst
Thank you very much. It's great to talk to you on the call again. I'm wondering, can you just talk a bit about how you're thinking about this iPhone generation? On the positive side, you've raised prices. It seems to be mixing up.
On the negative side, investors are concerned about impacted demand from the higher prices, what Huawei meant to you in prior years versus what could happen now. There are just some pressures out there. So I'm curious if you can talk to what you're seeing initially in iPhone demand and how you think it will move through. With the caveat that I understand, things are pretty uncertain out there.
And then I have a follow-up. Thank you.
Tim Cook -- Chief Executive Officer
Shannon, it's Tim. Welcome back. iPhone grew 10% in the Q4 timeframe to $42.6 billion. Customer demand was strong and better than we anticipated that it would be.
And keep in mind that this is on top of a fiscal year of 2021 that had iPhone revenue grow by 39%, and so it's a tough compare as well. And so we were happy with it. In terms of the new products, the 14 and the 14 Pro and Pro Max, it's still very early. But since the beginning, we've been constrained on the 14 Pro and the 14 Pro Max and we continue to be constrained today.
And so we're working very hard to fulfill the demand. It's difficult to say what the mix will be until we can satisfy the demand because we're not able to determine the accurate mix until then. But we're working very hard to do that. We were really pleased with the broadness of the iPhone strength last quarter.
We had three of the top four smartphones in the U.S. and the U.K., the top three in Urban China, the top six in Australia, four out of the top five in Germany and the top two in Japan. And customer satisfaction for the iPhone remains very, very strong at 98%. And so we feel very good about how we performed in Q4.
And certainly, the start of this generation would suggest that we're going to be constrained for a little while on the 14 Pro and 14 Pro Max. But we're working very hard to try to remedy that.
Shannon Cross -- Credit Suisse -- Analyst
Thank you. And then, Luca, can you talk a bit about gross margin puts and takes? Just how we should think about, I mean, 10 basis points of currency this coming quarter is, I don't want to say unprecedented, but maybe it is. So I know you have hedges, but how do we think about it flowing through? And then what other -- components seem to be very favorable. But what else should we throw into the mix as we look forward?
Luca Maestri -- Chief Financial Officer
Yeah. Well, let me start with gross margin in Q4 and then I'll get to Q1. It was a September quarter record for the company. We did 42.3%, and that is in spite of, as you mentioned, very significant negative FX, for example, for Q4, on a sequential basis, FX was negative 70 basis points and on a year-over-year basis it was negative 170 basis points.
Essentially every currency around the world has weakened against the dollar. Now, we have guided Q1 to 42.5% to 43.5% in spite of the fact that we have, on a year-over-year basis, 330 basis points of negative exchange. Sequentially, it's 120 basis points unfavorable. So obviously, the strong dollar makes it difficult in a number of areas.
Obviously, our pricing in emerging markets makes it difficult, and the translation of that revenue back into dollars is affected. But on the positive side, we are seeing commodities behave fairly favorably for us. And so we believe we can offset the negative foreign exchange that we're seeing. And I think that the guidance that we provided reflects that.
It takes into account, of course, FX. It takes into account some level of inflationary pressures. But I think the outcome is, I think, is a good one.
Shannon Cross -- Credit Suisse -- Analyst
Great. Thank you very much.
Tejas Gala -- Director of Investor Relations and Corporate Finance
Thanks, Shannon. Can we have the next question, please?
Operator
Our next question is coming from Erik Woodring with Morgan Stanley. Please go ahead, sir.
Erik Woodring -- Morgan Stanley -- Analyst
Hey, guys. Thanks very much for taking my questions. I have two as well. Maybe if we could just start.
Luca, we saw quite the divergence in iPad and Mac performance this quarter. Both were relatively constrained from a supply perspective. So maybe can you just elaborate on some of the most impacted -- important factors that contributed to kind of the divergence in performance and whether after we get through the December quarter, those can reverse or normalize? And then I have a follow-up.
Tim Cook -- Chief Executive Officer
Yeah, Erik, it's Tim. I'll take your question. If you look at the Mac, the Mac, it was the best quarter we've ever had in the history of the company. It was helped by the product launch of the MacBook Air with M2.
It was helped that in the previous quarter, in the June quarter, if you remember, we lost output from the factory for a significant portion of the quarter. And so we had a backlog exiting our Q3 headed into Q4. We were able to satisfy all of that demand during Q4 and filled the channel for the Mac. And so that led to an incredible Mac quarter.
If you look at iPad, iPad had sort of the opposite happening from a launch point of view. The comp from a year ago, we launched iPads in September. We launched iPads this year in October. The other point to remember is that the iPad Pro had just launched before the quarter started in the year-ago quarter so it was our first full quarter of iPad Pro.
So it was an exceptionally strong iPad quarter a year ago, and the launches were really key to that performance. And so that's the reason iPad contracted during this quarter.
Erik Woodring -- Morgan Stanley -- Analyst
OK.That's helpful. Thank you, Tim. And then maybe, Luca, if I were just to ask you, obviously, Tejas at the beginning of the call talked about the 14-week quarter. Maybe can you just elaborate a little bit on how you think that 14-week quarter impacts different line items, whether it's products or certain segments within the product business or the services stand-alone? Just where we should see that 14-week quarter provide a bit more of a tailwind versus maybe not have an impact at all? And that's it for me.
Thanks.
Luca Maestri -- Chief Financial Officer
In general, we have a few more days in the quarter that we're going to -- are going to affect both our revenues and our costs. Not every week is equal because obviously, we have certain peaks during the course of the quarter. Think about Black Friday or the Christmas holiday. But, in general, we're adding a few days of sale and additional opex as well on the cost front.
So that's what happens to us every approximately six years as we need to align our weekly calendar to the fiscal calendar.
Erik Woodring -- Morgan Stanley -- Analyst
Super. Thanks, guys.
Tejas Gala -- Director of Investor Relations and Corporate Finance
Thanks, Erik. Can we have the next question, please?
Operator
The next question is coming from Ben Bollin calling from Cleveland Research.
Ben Bollin -- Cleveland Research -- Analyst
Good afternoon, everyone. Thank you for taking the question. Tim, I was hoping we could talk a little bit about services, pieces within the portfolio. It looks like there's been some price adjustments as of late with respect to Music, TV Plus and the One bundle.
I'm curious how you think about balancing the consumer price versus your own costs and kind of the associated follow-through. And then I have a follow-up.
Tim Cook -- Chief Executive Officer
Yes. If you look at the price increase that you referenced, Ben, on Monday of this week, we announced a price increase on Apple Music and on Apple TV Plus and then the corresponding Apple One, that is the consolidated bundle that includes both of those. There's really two different situations here. With Music, the cost of licensing increased.
And so we are paying more for music. The good thing about that is the artist will also get more money for their songs that are enjoyed on streaming. And so there's some bit of good news there, I suppose. And then on Apple TV Plus, if you look at when we first priced it, we only had a very few shows.
We were at the beginning. We are very focused on originals only, and so we had four or five shows or so in the beginning and priced it quite low. We now have a lot more content and are coming out with more each and every month. And so, we've increased the price to represent the value of the service.
And of course, Apple One is just the consolidation of those two price changes.
Ben Bollin -- Cleveland Research -- Analyst
OK. And then, another item. Any preliminary thoughts around capital intensity into fiscal 2023? Last couple of years, capex has been relatively stable. Can you talk to the big constituents of the capex figure and maybe any moving pieces and how we could think about that to 2023? Thank you.
Luca Maestri -- Chief Financial Officer
Yes, Ben. So when we look at our capex, as you correctly said, I mean, we've been fairly stable, and I think our capital intensity is really very good. We have three major buckets in capex for the company. We have certain dedicated tools for the manufacturing facilities.
We had some spend around data centers, and we have spent around our office facilities around the world. We obviously monitor all of them. There is nothing unusual that we see for the next 12 months.
Ben Bollin -- Cleveland Research -- Analyst
OK. Thanks, guys.
Tejas Gala -- Director of Investor Relations and Corporate Finance
Thanks, Ben. Can we have our next question, please?
Operator
Our next question is coming from Kyle McNealy calling from Jefferies. Please go ahead.
Kyle McNealy -- Jefferies -- Analyst
Hi. Thanks very much. Just wanted to see if you could give us a sense for what drove the Wearables result and the strength there this quarter. Was it from the maybe strong iPhone attach rates or the new products that you have available that were announced this quarter, or maybe you're still getting some benefit from customers that are more willing to come into the store now and try things on versus the pandemic when that was kind of shut down?
Tim Cook -- Chief Executive Officer
Yes. Kyle, it's Tim. If you look at Wearables, we grew 10%, which we were very happy with. If you look at the individual pieces of that, Apple Watch was a contributor.
And in particular, the new lineup was a contributor, including the Apple Watch Ultra and the Apple Watch Series 8 and the SE. The Ultra is -- was supply constrained and continues to be supply constrained during this quarter thus far. And so we're working hard to satisfy the demand bearing, get those products to customers. We also announced and launched the AirPods Pro in September.
And the reviews for the product have just been off the charts in terms of the noise cancellation features and the sound quality. We're getting great, great reviews from there. In terms of what played the other way, the headwinds, obviously, FX was a headwind that affected wearables, home, and accessories, just like it affected the rest of our products and services. And we also had effect from the business in Russia, obviously, or the impact there.
So that's sort of the pro and the con. The other thing that I should mention is that about two-thirds of the Apple Watches that we sold were to customers that had not previously owned an Apple Watch. And so we're still very much selling to new customers here, which is very, very good for the future.
Kyle McNealy -- Jefferies -- Analyst
OK. Great. One more quick one on Mac. I wanted to see if you could quantify at all how much the channel fill and how much came from satisfying back orders from the June period for Mac.
We're just trying to get a sense for where the baseline is, if there's any sense you can give us on that. What would it have grown if not for those factors? Anything you can give us would be great. Thanks.
Tim Cook -- Chief Executive Officer
Yes. I would just say that all three of the reasons that I gave were key in achieving the 25%. The M2 MacBook Air, the launch of the new product, satisfying the back orders from the previous quarter and then filling the channel, all of those were key contributors.
Kyle McNealy -- Jefferies -- Analyst
OK, Tim. Thanks.
Tejas Gala -- Director of Investor Relations and Corporate Finance
Thanks, Kyle. Can we have our next question, please?
Operator
The next question is coming from Mr. Jim Suva calling from Citigroup.
Jim Suva -- Citi -- Analyst
Thank you, and it's great to see that you talked about your suppliers going carbon-neutral, something -- a small statement I really took to heart. Thank you. My question is on the services. Could it possibly be impacted more by FX than product, meaning the Jim Suva family has Apple One and TV Plus and all that, and we pay typically on annual, but then when we go into the store to buy new Watches and iPad, the price is adjusted more quickly.
So could it be that services growth was impacted a little bit more by FX and down the road, we could see growth reaccelerate, or am I just reading too much into the FX impact that could be different from services versus product? Thank you.
Luca Maestri -- Chief Financial Officer
Jim, it's Luca. No. You're right. Obviously, the FX impact on our business depends on the geographic mix of the sales that we do.
And so yes, it can be -- services and products can have slightly different effects on foreign exchange. And so, if we look at our services business in constant currency, we would have grown double digits. And so we're very pleased with that. As I mentioned, there were some areas that we could see some softness in digital advertising.
Of course, you know that part, and gaming on the App Store was affected. But we were very happy with what we saw in terms of the behavior of our customers with the engagement with services. And I mentioned a number of things during the prepared remarks, the fact that, obviously, that installed base is growing, that's a positive and it's a great foundation for the future. We are seeing more transacting accounts and more paid accounts, they're both growing double digits.
Paid accounts are growing faster than transacting accounts, so the penetration of paid accounts is increasing. We have a great subscription business, 900 million paid subs now on the platform and growing very fast. We doubled in 3 years. So when we look at all those dynamics, that's the part that is really interesting to us because we really believe that the engine for services growth is there and foreign exchange is a temporary thing and -- but the fundamentals are very good.
Jim Suva -- Citi -- Analyst
Thank you. Congratulations for your team.
Tejas Gala -- Director of Investor Relations and Corporate Finance
Thanks, Jim. Can we have the next question, please?
Operator
The next question is coming from Amit Daryanani from Evercore. Please go ahead.
Amit Daryanani -- Evercore ISI -- Analyst
Thanks for taking my question. I have two as well. The first one really is around the iPhone trajectory. There's been a fair amount of focus in terms of what's going to happen to iPhone demand, given the macro worries.
It would be really helpful to understand though, given the strength you're seeing, where do you think channel inventory is for iPhones today versus where it would be from a historical perspective? And do you see the channel getting to an optimal level by end of December quarter? Because evenly right now given the lead time data, it looks like your revenue trajectory in iPhones is more driven by the supply you have versus demand. So any color on the channel inventory would be helpful.
Tim Cook -- Chief Executive Officer
Yes. If you look at where we ended, Amit, in the September quarter, we exited below our target inventory range on iPhone and that's -- that in and of itself is not too unusual in the quarter. We start the ramp and demand is robust and so forth. And so I wouldn't call it that abnormal from the past.
Amit Daryanani -- Evercore ISI -- Analyst
Got it. And then I guess, Tim, you folks have been talking about digital advertising a fair bit over the last few quarters, I think. Is there any metrics, any vectors you can talk about kind of to give us a sense of how big those businesses or what vectors are you focused on? And really, if you could talk about, do you think Apple can build an advertising business at scale without sacrificing consumer privacy?
Tim Cook -- Chief Executive Officer
So first and foremost, we focus on privacy and so we would not do anything that stepped away from that. We feel that privacy is a basic fundamental human right, and so that's sort of the lens that we look at it under. Our specific advertising business is not large and relative to others and so forth. But we don't release the exact numbers on it, but it's clearly not large.
Tejas Gala -- Director of Investor Relations and Corporate Finance
Thanks, Amit. Can we have the next question, please?
Operator
We'll now move on to Mr. Harsh Kumar calling from Piper Sandler. Please go ahead.
Harsh Kumar -- Piper Sandler -- Analyst
Yeah. Hey, thanks guys, First of all, fellows congratulations on stellar performance. There's a lot of large-cap companies that are getting ripped around, so we appreciate the steady cadence here. Tim, I wanted to ask you about inflation pressures and labor problems here in the U.S.
and globally. And maybe talk about what steps can Apple take to mitigate those? And maybe Luca, on that end, FX is becoming a pretty significant headwind. I was curious what -- if at all, if there's anything that can be done to mitigate that.
Tim Cook -- Chief Executive Officer
I'll let Luca talk about FX. In terms of the people piece, we're focused on taking care of our teams and offering them the best benefits and best compensation so that we can empower them to do the best work of their lives. And so that's what we're focused on in terms of our teams. In terms of inflation, there's clearly wage inflation.
There's inflation related to logistics as well. If you compare it to pre-pandemic kind of levels, that has not returned to pre-pandemic levels by any means. And there's certain silicon components that are -- have inflationary pressure as well. And so that's not an all-inclusive list of where we see it, but it gives you some ingredients of where we see inflation pressure.
And we've obviously taken that into consideration in the gross margin guidance that Luca gave earlier in the call.
Luca Maestri -- Chief Financial Officer
Yes. And on foreign exchange, you're right. I mean, it's obviously a very significant factor that is affecting our results, both revenue and gross margin. What do we do about situation like this, one where we have a very strong dollar? Of course, we hedge our exposures.
We try to hedge them in as many places as possible around the world. For example, I think we've been probably the first company that started hedging our exposure in China several years ago. There may be a few currency, small ones, where we don't hedge because the cost is prohibitive or the market is not there. But in general, we tend to hedge because it gives us significant level of margin stability.
Obviously, over time, that protection reduces because the hedges roll over and we need to buy new contracts. But that's the primary tool that we use to offset some of the FX pressure. Of course, when we launch new products, in particular, we look at the FX situation. And in some cases, for example, customers in international markets had to -- they saw some price increases when we launched the new products, which is not something that, for example, U.S.
customers have seen. And that's unfortunately the situation that we're in right now with the strong dollar. So that's the way we try to deal with that. I have to say that one of the things that we've really appreciated the most during the quarter was the fact that in spite of this very strong dollar and the difficult FX environment, we have seen very strong performance in many international markets, particularly some very large emerging markets where even in reported currencies, so in U.S.
dollars, we're seeing very strong double-digit growth in places like India, Indonesia, Mexico, Vietnam, many places where we've done incredibly well. And obviously, in local currency, those growth rates are even higher. It's important for us to look at how these markets perform in local currency because it really gives us a good sense for the customer response to our products, the engagement with our ecosystem and in general, the strength of the brand. And I have to say, in that respect, we feel very, very good about the progress that we're making in a lot of markets around the world.
Harsh Kumar -- Piper Sandler -- Analyst
Thanks, Tim and Luca. I had a follow-up. Luca, in your prepared remarks for the guidance, you mentioned that for the December quarter, you expect the performance to decelerate relative to September. So September was a year-over-year about, call it, 8%.
Should I think that, that 8% number will go down on a year-over-year basis as we look at December? Maybe you could provide some color on what you're thinking. And are we still looking -- are we looking at a positive number, or are we thinking maybe that the growth rate will be negative on a year-over-year basis?
Luca Maestri -- Chief Financial Officer
What we said is that we're going to be decelerating from September, so September was 8%, so it's going to be a lower percentage than 8%. We're not providing guidance for the reasons that we've explained. There's a lot of uncertainty there. And so we see how the quarter progresses.
Keep in mind the 10 points of exchange. Certainly, in normal times, we will be talking about very different numbers, but that's where we are right now.
Harsh Kumar -- Piper Sandler -- Analyst
Thank you, guys.
Tejas Gala -- Director of Investor Relations and Corporate Finance
Thanks, Harsh. Can we have the next question, please?
Operator
Next question is coming from Krish Sankar calling from Cowen & Company. Please go ahead.
Krish Sankar -- Cowen and Company -- Analyst
Yeah. Hi. Thanks for taking my question. I had two of them.
First one, either for Tim or Luca, on cash and capital allocation. Given there's some correction and valuation for some of the private and public companies, does it change your thought process on the time line to get to cash-neutral? In other words, would you be more aggressive with acquisitions, or you think holding on to more cash due to interest income becomes more attractive versus your prior investment goals? And then I had a quick follow-up.
Tim Cook -- Chief Executive Officer
This is Tim. In terms of acquisitions, we averaged about one per month, I believe, in across fiscal year 2022. And so we're constantly looking in the market. And what's out there.
And what things would be synergistic. And which things would provide either intellectual property or talent or preferably both that we would need. And so we're constantly looking at acquisitions of all sizes.
Luca Maestri -- Chief Financial Officer
In terms of cash deployment, obviously, we like to look at the capital return program over the long arc of time. And we have done, since the beginning of the program we've done over $550 billion of buyback at an average repurchase price of $47. So the program has been incredibly successful. We are still in a position where we have net cash.
And we said all along, we want to get to cash-neutral at some point. Our cash generation has been very, very strong over the years, particularly last year. I think I mentioned in the prepared remarks, we did $111 billion of free cash flow. That's up 20% year over year.
And so we will put that capital to use for investors.
Krish Sankar -- Cowen and Company -- Analyst
Got it. Very helpful, Tim and Luca. And then a quick follow-up for Luca on the December guidance, thanks for the color on that. I'm just kind of curious, the extra week in the quarter, is that not helping offset some of the FX, or in other words, the 10 percentage point negative impact from FX will be much higher if that's a 13-week quarter?
Luca Maestri -- Chief Financial Officer
No. I wouldn't say that because those are percentages. So yeah, no, the 10 points wouldn't be different. 13 or 14 weeks would be the same.
Krish Sankar -- Cowen and Company -- Analyst
Got it. Got it. Thanks a lot, Luca.
Tejas Gala -- Director of Investor Relations and Corporate Finance
Thank you, Krish. A replay of today's call will be available for two weeks on Apple Podcasts, as a Webcast on apple.com/investor and via telephone. The number for the telephone replay is 866-583-1035. Please enter confirmation code 7086300, followed by the pound sign.
These replays will be available by approximately 5:00 p.m. Pacific Time today. Members of the press with additional questions can contact Josh Rosenstock at 408-862-1142. Financial analysts can contact me with additional questions at 669-227-2402.
Thank you again for joining us.
Operator
[Operator signoff]
Duration: 0 minutes
Call participants:
Tejas Gala -- Director of Investor Relations and Corporate Finance
Tim Cook -- Chief Executive Officer
Luca Maestri -- Chief Financial Officer
Shannon Cross -- Credit Suisse -- Analyst
Erik Woodring -- Morgan Stanley -- Analyst
Ben Bollin -- Cleveland Research -- Analyst
Kyle McNealy -- Jefferies -- Analyst
Jim Suva -- Citi -- Analyst
Amit Daryanani -- Evercore ISI -- Analyst
Harsh Kumar -- Piper Sandler -- Analyst
Krish Sankar -- Cowen and Company -- Analyst
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Apple (NASDAQ: AAPL) Q4 2022 Earnings Call Oct 27, 2022, 5:00 p.m. Operator [Operator signoff] Duration: 0 minutes Call participants: Tejas Gala -- Director of Investor Relations and Corporate Finance Tim Cook -- Chief Executive Officer Luca Maestri -- Chief Financial Officer Shannon Cross -- Credit Suisse -- Analyst Erik Woodring -- Morgan Stanley -- Analyst Ben Bollin -- Cleveland Research -- Analyst Kyle McNealy -- Jefferies -- Analyst Jim Suva -- Citi -- Analyst Amit Daryanani -- Evercore ISI -- Analyst Harsh Kumar -- Piper Sandler -- Analyst Krish Sankar -- Cowen and Company -- Analyst More AAPL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Over the past year, despite a range of challenges facing the world, our teams have come together in incredible ways to drive unparalleled innovation and deliver again and again for our customers.For the September quarter, we reported record revenue of $90.1 billion, which was better than we anticipated despite stronger-than-expected foreign currency headwinds.
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Operator [Operator signoff] Duration: 0 minutes Call participants: Tejas Gala -- Director of Investor Relations and Corporate Finance Tim Cook -- Chief Executive Officer Luca Maestri -- Chief Financial Officer Shannon Cross -- Credit Suisse -- Analyst Erik Woodring -- Morgan Stanley -- Analyst Ben Bollin -- Cleveland Research -- Analyst Kyle McNealy -- Jefferies -- Analyst Jim Suva -- Citi -- Analyst Amit Daryanani -- Evercore ISI -- Analyst Harsh Kumar -- Piper Sandler -- Analyst Krish Sankar -- Cowen and Company -- Analyst More AAPL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Apple (NASDAQ: AAPL) Q4 2022 Earnings Call Oct 27, 2022, 5:00 p.m. Please note that some of the information you'll hear during our discussion today will consist of forward-looking statements, including, without limitation, those regarding revenue, gross margin, operating expense, other income and expense, taxes, capital allocation, and future business outlook, including the potential impact of COVID-19 on the company's business and results of operations.
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Operator [Operator signoff] Duration: 0 minutes Call participants: Tejas Gala -- Director of Investor Relations and Corporate Finance Tim Cook -- Chief Executive Officer Luca Maestri -- Chief Financial Officer Shannon Cross -- Credit Suisse -- Analyst Erik Woodring -- Morgan Stanley -- Analyst Ben Bollin -- Cleveland Research -- Analyst Kyle McNealy -- Jefferies -- Analyst Jim Suva -- Citi -- Analyst Amit Daryanani -- Evercore ISI -- Analyst Harsh Kumar -- Piper Sandler -- Analyst Krish Sankar -- Cowen and Company -- Analyst More AAPL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Apple (NASDAQ: AAPL) Q4 2022 Earnings Call Oct 27, 2022, 5:00 p.m. We reached a September quarter revenue record of $90.1 billion, up 8% year over year despite over 600 basis points of negative foreign exchange impact, with new September quarter records in the Americas, Europe, Greater China, and rest of Asia Pacific.
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Operator [Operator signoff] Duration: 0 minutes Call participants: Tejas Gala -- Director of Investor Relations and Corporate Finance Tim Cook -- Chief Executive Officer Luca Maestri -- Chief Financial Officer Shannon Cross -- Credit Suisse -- Analyst Erik Woodring -- Morgan Stanley -- Analyst Ben Bollin -- Cleveland Research -- Analyst Kyle McNealy -- Jefferies -- Analyst Jim Suva -- Citi -- Analyst Amit Daryanani -- Evercore ISI -- Analyst Harsh Kumar -- Piper Sandler -- Analyst Krish Sankar -- Cowen and Company -- Analyst More AAPL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Apple (NASDAQ: AAPL) Q4 2022 Earnings Call Oct 27, 2022, 5:00 p.m. After that, we'll open the call to questions from analysts.
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18679.0
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2022-10-27 00:00:00 UTC
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ANALYSIS-For Twitter boss Elon Musk, now comes the hard part
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AAPL
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https://www.nasdaq.com/articles/analysis-for-twitter-boss-elon-musk-now-comes-the-hard-part-0
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nan
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By Sheila Dang
Oct 27 (Reuters) - Overspending on Twitter Inc TWTR.N for $44 billion was the easy part.
Now, Tesla Inc TSLA.O Chief Executive Elon Musk must prove why he believes that Twitter is worth 10 times that amount and turn around a social media platform that he has spent months ridiculing.
Earlier this month, the outspoken billionaire said: "Myself and the other investors are obviously overpaying for Twitter right now. The long term potential for Twitter in my view is an order of magnitude greater than its current value."
Musk has provided few concrete details about his plans, and what he has shared appears far-fetched or contradictory.
Here is what lies ahead for Musk, the self-proclaimed "Chief Twit", according to current and former Twitter employees, analysts and investors who considered funding the deal.
X SUPER APP
Musk's biggest bet borrows from China's greatest hits of the 2010s. "Buying Twitter is an accelerant to creating X, the everything app," Musk tweeted earlier this month.
The idea of an everything app, also referred to as a super app, originated in Asia with companies like WeChat, which lets users not only send messages but also make payments, shop online or hail a taxi. The all-in-one service appealed to users who had fewer choices in a region where Google, Facebook and others were blocked.
Musk has told investors he plans to build one that will sell premium subscriptions to reduce reliance on ads, allow content creators to make money and enable payments, according to a source briefed on the matter.
There are no super-apps in the United States because the barrier is high and there are app choices aplenty, said Scott Galloway, co-host of tech podcast Pivot and a professor of marketing at New York University.
Apple Inc AAPL.O and Alphabet Inc's GOOGL.O Google, which control the app stores on iPhones and Android phones, see themselves as super apps and would be unlikely to allow other super apps to develop, Galloway said. Consider Apple's recent rejection of Spotify's plan to sell audiobooks as one example of barriers to entry.
Adding payments, which generally require identity verification, could complicate a service which has allowed anonymity to flourish, making Twitter a powerful tool for political activism in hostile environments, said Jason Goldman, a former Twitter board member.
"It's not possible at this point in the evolution of the mobile internet," Goldman added.
CUTTING CONTENT MODERATION
Current and former employees who spoke with Reuters said Musk's plans to lower the guard rails that are common across all social media platforms would lead to a deluge of hateful, harmful and potentially illegal content on Twitter. Already, it has struggled with identifying and removing child porn.
Members of Twitter's trust and safety team, which includes content moderators, are expected to be among Musk's deepest job cuts, employees fear.
"Imagine a world where all those people are gone," one employee said. "It's going to be a hellscape."
PREVENT ADVERTISERS FROM FLEEING
In 2019, Musk tweeted "I hate advertising."
On the eve of the deal's expected closing, he appealed directly to advertisers in an open-letter tweet: "Twitter obviously cannot become a free-for-all hellscape, where anything can be said with no consequences!... Twitter aspires to be the most respected advertising platform in the world that strengthens your brand and grows your enterprise."
Advertisers are not buying it.
They point to Musk's plan to reinstate the account of former U.S. President Donald Trump as a major impediment to spending money on Twitter. Twitter permanently suspended Trump for risk of further incitement of violence after the Jan. 6, 2021, attack on the U.S. Capitol.
Welcoming back Trump could alienate moderate and liberal-leaning users, and as a result push away major household brands who aim to market products and appeal to people across the political spectrum, said Mark DiMassimo, founder of ad agency DiMassimo Goldstein.
Until Musk finds new sources of revenue, he can't afford to trigger a backlash from a group that contributes 90% of Twitter’s revenue.
OBEYING THE LAWS
Musk has promised to preserve free speech of all kinds, but has also struck a more conciliatory tone with global leaders who aim to rein in Big Tech.
In May, Musk said in a Twitter video that he agreed with the European Union's new digital media regulation, which will force Big Tech to do more to tackle illegal content or risk fines of up to 6% of global revenue, in one of the world's most severe approaches to regulating content online.
Regulators across Asia are also toughening legal stances against social media platforms and ordering the removal of content they deem illegal, which includes speech by political dissidents.
In India, Twitter has waged a "sophisticated battle" with the government to protect free speech online, and this battle would be at risk with Musk in charge, Goldman said.
Tesla's expanding business in China, where it generated $14 billion last year, could also put Twitter at risk, Goldman, the former Twitter board member, said.
"The idea that he’s going to be the one liaising with the Chinese government and potentially turning over information on users, that’s very scary," Goldman said.
Twitter is staffed with experts who review data requests from governments, but Musk has shown his contempt of these experts, he said.
"Whether or not Trump is going to come back on, I think that's a parlor game," Goldman said. "But what's actually going to happen is a dissident's IP address will be dropped on the floor."
EXPLAINER-What is an 'everything app' and why does Elon Musk want to make one?ID:nL1N3161N0
EU industry chief Breton, Musk signal agreement on Digital Services ActID:nL2N2X12TQ
EXCLUSIVE-Twitter is losing its most active users, internal documents showID:nL1N31Q2BK
(Reporting by Sheila Dang in Dallas, aditional reporting by Hyun Joo Jin in San Francisco Editing by Kenneth Li and Matthew Lewis)
((Sheila.Dang@thomsonreuters.com; +1 646-983-0894))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O and Alphabet Inc's GOOGL.O Google, which control the app stores on iPhones and Android phones, see themselves as super apps and would be unlikely to allow other super apps to develop, Galloway said. Musk has told investors he plans to build one that will sell premium subscriptions to reduce reliance on ads, allow content creators to make money and enable payments, according to a source briefed on the matter. Current and former employees who spoke with Reuters said Musk's plans to lower the guard rails that are common across all social media platforms would lead to a deluge of hateful, harmful and potentially illegal content on Twitter.
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Apple Inc AAPL.O and Alphabet Inc's GOOGL.O Google, which control the app stores on iPhones and Android phones, see themselves as super apps and would be unlikely to allow other super apps to develop, Galloway said. "Buying Twitter is an accelerant to creating X, the everything app," Musk tweeted earlier this month. Welcoming back Trump could alienate moderate and liberal-leaning users, and as a result push away major household brands who aim to market products and appeal to people across the political spectrum, said Mark DiMassimo, founder of ad agency DiMassimo Goldstein.
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Apple Inc AAPL.O and Alphabet Inc's GOOGL.O Google, which control the app stores on iPhones and Android phones, see themselves as super apps and would be unlikely to allow other super apps to develop, Galloway said. Current and former employees who spoke with Reuters said Musk's plans to lower the guard rails that are common across all social media platforms would lead to a deluge of hateful, harmful and potentially illegal content on Twitter. In May, Musk said in a Twitter video that he agreed with the European Union's new digital media regulation, which will force Big Tech to do more to tackle illegal content or risk fines of up to 6% of global revenue, in one of the world's most severe approaches to regulating content online.
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Apple Inc AAPL.O and Alphabet Inc's GOOGL.O Google, which control the app stores on iPhones and Android phones, see themselves as super apps and would be unlikely to allow other super apps to develop, Galloway said. Current and former employees who spoke with Reuters said Musk's plans to lower the guard rails that are common across all social media platforms would lead to a deluge of hateful, harmful and potentially illegal content on Twitter. In May, Musk said in a Twitter video that he agreed with the European Union's new digital media regulation, which will force Big Tech to do more to tackle illegal content or risk fines of up to 6% of global revenue, in one of the world's most severe approaches to regulating content online.
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18680.0
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2022-10-27 00:00:00 UTC
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ANALYSIS-For Twitter boss Elon Musk, now comes the hard part
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AAPL
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https://www.nasdaq.com/articles/analysis-for-twitter-boss-elon-musk-now-comes-the-hard-part
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nan
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nan
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By Sheila Dang
Oct 27 (Reuters) - Overspending on Twitter Inc TWTR.N for $44 billion was the easy part.
Now, Telsa Inc TSLA.O Chief Executive Elon Musk must prove why he believes that Twitter is worth 10 times that amount and turn around a social media platform that he has spent months ridiculing.
Earlier this month, the outspoken billionaire said: "Myself and the other investors are obviously overpaying for Twitter right now. The long term potential for Twitter in my view is an order of magnitude greater than its current value."
Musk has provided few concrete details about his plans, and what he has shared appears far-fetched or contradictory.
Here is what lies ahead for Musk, the self-proclaimed "Chief Twit", according to current and former Twitter employees, analysts and investors who considered funding the deal.
X SUPER APP
Musk's biggest bet borrows from China's greatest hits of the 2010s. "Buying Twitter is an accelerant to creating X, the everything app," Musk tweeted earlier this month.
The idea of an everything app, also referred to as a super app, originated in Asia with companies like WeChat, which lets users not only send messages but also make payments, shop online or hail a taxi. The all-in-one service appealed to users who had fewer choices in a region where Google, Facebook and others were blocked.
Musk has told investors he plans to build one that will sell premium subscriptions to reduce reliance on ads, allow content creators to make money and enable payments, according to a source briefed on the matter.
There are no super-apps in the United States because the barrier is high and there are app choices aplenty, said Scott Galloway, co-host of tech podcast Pivot and a professor of marketing at New York University.
Apple Inc AAPL.O and Alphabet Inc's GOOGL.O Google, which control the app stores on iPhones and Android phones, see themselves as super apps and would be unlikely to allow other super apps to develop, Galloway said. Consider Apple's recent rejection of Spotify's plan to sell audiobooks as one example of barriers to entry.
"It's not possible at this point in the evolution of the mobile internet," said Jason Goldman, a former board member at Twitter.
CUTTING CONTENT MODERATION
Current and former employees who spoke with Reuters said Musk's plans to lower the guard rails that are common across all social media platforms would lead to a deluge of hateful, harmful and potentially illegal content on Twitter. Already, it has struggled with identifying and removing child porn.
Members of Twitter's trust and safety team, which includes content moderators, are expected to be among Musk's deepest job cuts, employees fear.
"Imagine a world where all those people are gone," one employee said. "It's going to be a hellscape."
PREVENT ADVERTISERS FROM FLEEING
In 2019, Musk tweeted "I hate advertising."
On the eve of the deal's expected closing, he appealed directly to advertisers in an open-letter tweet: "Twitter obviously cannot become a free-for-all hellscape, where anything can be said with no consequences!... Twitter aspires to be the most respected advertising platform in the world that strengthens your brand and grows your enterprise."
Advertisers are not buying it.
They point to Musk's plan to reinstate the account of former U.S. President Donald Trump as a major impediment to spending money on Twitter. Twitter permanently suspended Trump for risk of further incitement of violence after the Jan. 6, 2021, attack on the U.S. Capitol.
Welcoming back Trump could alienate moderate and liberal-leaning users, and as a result push away major household brands who aim to market products and appeal to people across the political spectrum, said Mark DiMassimo, founder of ad agency DiMassimo Goldstein.
OBEYING THE LAWS
Musk has promised to preserve free speech of all kinds, but has also struck a more conciliatory tone with global leaders who aim to rein in Big Tech.
In May, Musk said in a Twitter video that he agreed with the European Union's new digital media regulation, which will force Big Tech to do more to tackle illegal content or risk fines of up to 6% of global revenue, in one of the world's most severe approaches to regulating content online.
Regulators across Asia are also toughening legal stances against social media platforms and ordering the removal of content they deem illegal, which includes speech by political dissidents.
In India, Twitter has waged a "sophisticated battle" with the government to protect free speech online, and this battle would be at risk with Musk in charge, Goldman said.
Tesla's expanding business in China, where it generated $14 billion last year, could also put Twitter at risk, Goldman, the former Twitter board member, said.
"The idea that he’s going to be the one liaising with the Chinese government and potentially turning over information on users, that’s very scary," Goldman said.
Twitter is staffed with experts who review data requests from governments, but Musk has shown his contempt of these experts, he said.
"Whether or not Trump is going to come back on, I think that's a parlor game," Goldman said. "But what's actually going to happen is a dissident's IP address will be dropped on the floor."
EXPLAINER-What is an 'everything app' and why does Elon Musk want to make one?ID:nL1N3161N0
EU industry chief Breton, Musk signal agreement on Digital Services ActID:nL2N2X12TQ
EXCLUSIVE-Twitter is losing its most active users, internal documents showID:nL1N31Q2BK
(Reporting by Sheila Dang in Dallas, aditional reporting by Hyun Joo Jin in San Francisco Editing by Kenneth Li and Matthew Lewis)
((Sheila.Dang@thomsonreuters.com; +1 646-983-0894))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O and Alphabet Inc's GOOGL.O Google, which control the app stores on iPhones and Android phones, see themselves as super apps and would be unlikely to allow other super apps to develop, Galloway said. Musk has told investors he plans to build one that will sell premium subscriptions to reduce reliance on ads, allow content creators to make money and enable payments, according to a source briefed on the matter. Current and former employees who spoke with Reuters said Musk's plans to lower the guard rails that are common across all social media platforms would lead to a deluge of hateful, harmful and potentially illegal content on Twitter.
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Apple Inc AAPL.O and Alphabet Inc's GOOGL.O Google, which control the app stores on iPhones and Android phones, see themselves as super apps and would be unlikely to allow other super apps to develop, Galloway said. "Buying Twitter is an accelerant to creating X, the everything app," Musk tweeted earlier this month. Welcoming back Trump could alienate moderate and liberal-leaning users, and as a result push away major household brands who aim to market products and appeal to people across the political spectrum, said Mark DiMassimo, founder of ad agency DiMassimo Goldstein.
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Apple Inc AAPL.O and Alphabet Inc's GOOGL.O Google, which control the app stores on iPhones and Android phones, see themselves as super apps and would be unlikely to allow other super apps to develop, Galloway said. Current and former employees who spoke with Reuters said Musk's plans to lower the guard rails that are common across all social media platforms would lead to a deluge of hateful, harmful and potentially illegal content on Twitter. In May, Musk said in a Twitter video that he agreed with the European Union's new digital media regulation, which will force Big Tech to do more to tackle illegal content or risk fines of up to 6% of global revenue, in one of the world's most severe approaches to regulating content online.
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Apple Inc AAPL.O and Alphabet Inc's GOOGL.O Google, which control the app stores on iPhones and Android phones, see themselves as super apps and would be unlikely to allow other super apps to develop, Galloway said. "Buying Twitter is an accelerant to creating X, the everything app," Musk tweeted earlier this month. Current and former employees who spoke with Reuters said Musk's plans to lower the guard rails that are common across all social media platforms would lead to a deluge of hateful, harmful and potentially illegal content on Twitter.
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18681.0
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2022-10-27 00:00:00 UTC
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Good Stocks To Invest In Today? 2 S&P 500 Stocks To Watch
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AAPL
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https://www.nasdaq.com/articles/good-stocks-to-invest-in-today-2-sp-500-stocks-to-watch
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S&P 500 stocks are widely recognized as some of the best investments available. They offer a unique combination of stability and growth potential, making them an attractive choice for both long-term and short-term investors. The S&P 500 is made up of 500 large-cap stocks that are widely considered to be leaders in their respective industries. Notably, this includes companies such as Tesla Inc (NASDAQ: TSLA), Alphabet Inc. (NASDAQ: GOOGL), and Johnson & Johnson (NYSE: JNJ) to name a few.
S&P 500 stocks tend to be less volatile than smaller-cap stocks, making them a good choice for investors who are looking for stability. At the same time, S&P 500 stocks have the potential to provide significant growth, making them an ideal choice for long-term investors. Whether you’re looking for stability or growth, S&P 500 stocks offer an attractive option for anyone who is considering investing in the stock market.
S&P 500 Stocks To Watch Right Now
Apple Inc. (NASDAQ: AAPL)
Amazon.com Inc. (NASDAQ: AMZN)
1. Apple (AAPL Stock)
First, we have consumer technology giant Apple Inc. (AAPL). In short, the company designs develops and sells consumer electronics, computer software, and online services. Moreover, Apple’s hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the Apple Watch smartwatch, and the Apple TV among others.
AAPL Recent Stock News
Meanwhile, on Thursday afternoon, the company reported its fourth-quarter 2022 financial results. In the report, the company reported Q4 2022 earnings of $1.29 per share, with revenue of $90.1 billion. Meanwhile, Wall Street’s consensus estimates for the quarter were earnings of $1.26 per share and revenue of $90.0 billion. These revenue figures represent an 8.1% increase versus the same period, a year prior. Furthermore, Apple reported that it estimates Q1 2023 revenue to surpass $134 billion.
Luca Maestri, Apple’s CFO commented, “Our record September quarter results continue to demonstrate our ability to execute effectively in spite of a challenging and volatile macroeconomic backdrop. We continued to invest in our long-term growth plans, generated over $24 billion in operating cash flow, and returned over $29 billion to our shareholders during the quarter.“
AAPL Stock Chart
Shares of AAPL stock closed Thursday’s trading session down 3.05% at $144.80. Though, after the earnings report was announced, Apple stock closed Thursday’s after-hours trading session at $145.35 a share.
Source: TD Ameritrade TOS
[Read More] 3 Dow Jones Industrial Average Stocks To Watch Today
2. Amazon (AMZN Stock)
Following that, let’s take a look at Amazon.com Inc. (AMZN). To begin, Amazon.com Inc is an American multinational technology company that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence.
AMZN Recent Stock News
Also, on Thursday afternoon, Amazon announced its third-quarter 2022 financial results. Diving in, the company reported Q3 2022 earnings of $0.20 per share and revenue of $127.1 billion. For context, analysts’ estimates for the quarter were earnings of $0.22 per share and revenue of $126.4 billion. In addition, Amazon’s revenue reflects a 14.7% increase on a year-over-year basis.
Moreover, Andy Jassy, Amazon CEO commented about the quarter’s performance, “In the past four months, employees across our consumer businesses have worked relentlessly to put together compelling Prime Member Deal Events with our eighth annual Prime Day and the brand new Prime Early Access Sale in early October. The customer response to both events was quite positive, and it’s clear that particularly during these uncertain economic times, customers appreciate Amazon’s continued focus on value and convenience.”
AMZN Stock Chart
On Thursday, shares of Amazon stock closed the day down over 4% at $110.96 a share. After the company released its Q3 2022 financial results, AMZN stock dropped another 12.73% in after-hour trading on Thursday at $96.84 a share.
Source: TD Ameritrade TOS
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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S&P 500 Stocks To Watch Right Now Apple Inc. (NASDAQ: AAPL) Amazon.com Inc. (NASDAQ: AMZN) 1. Apple (AAPL Stock) First, we have consumer technology giant Apple Inc. (AAPL). AAPL Recent Stock News Meanwhile, on Thursday afternoon, the company reported its fourth-quarter 2022 financial results.
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We continued to invest in our long-term growth plans, generated over $24 billion in operating cash flow, and returned over $29 billion to our shareholders during the quarter.“ AAPL Stock Chart Shares of AAPL stock closed Thursday’s trading session down 3.05% at $144.80. S&P 500 Stocks To Watch Right Now Apple Inc. (NASDAQ: AAPL) Amazon.com Inc. (NASDAQ: AMZN) 1. Apple (AAPL Stock) First, we have consumer technology giant Apple Inc. (AAPL).
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We continued to invest in our long-term growth plans, generated over $24 billion in operating cash flow, and returned over $29 billion to our shareholders during the quarter.“ AAPL Stock Chart Shares of AAPL stock closed Thursday’s trading session down 3.05% at $144.80. S&P 500 Stocks To Watch Right Now Apple Inc. (NASDAQ: AAPL) Amazon.com Inc. (NASDAQ: AMZN) 1. Apple (AAPL Stock) First, we have consumer technology giant Apple Inc. (AAPL).
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S&P 500 Stocks To Watch Right Now Apple Inc. (NASDAQ: AAPL) Amazon.com Inc. (NASDAQ: AMZN) 1. We continued to invest in our long-term growth plans, generated over $24 billion in operating cash flow, and returned over $29 billion to our shareholders during the quarter.“ AAPL Stock Chart Shares of AAPL stock closed Thursday’s trading session down 3.05% at $144.80. Apple (AAPL Stock) First, we have consumer technology giant Apple Inc. (AAPL).
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18682.0
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2022-10-27 00:00:00 UTC
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AAPL, PINS Beat; AMZN, INTC Mixed but Down
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AAPL
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https://www.nasdaq.com/articles/aapl-pins-beat-amzn-intc-mixed-but-down
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Our recent bifurcation among major market indices was apparent once again today, with the Dow +198 points on the day, +0.62%, and the tech-heavy Nasdaq -178 points, -1.63%. The S&P 500, which includes blue-chip stocks and plenty of tech, split the difference, -0.59%. The small-cap Russell 2000 once again looked to be out of the earnings-disappointment fray, +0.11% on the day.
Apple AAPL has released its fiscal Q4 earnings results after Thursday’s close, outperforming estimates on both sales and earnings. Its $1.29 per share was 3 cents better than expected on $90.15 billion in revenues, which surpassed the $88.47 billion consensus estimate. Yet shares are trading down on the news, possibly due to disappointing iPhone 14 Pro sales relative to expectations.
While iPhone sales overall were up +10% year over year, the $42.63 billion reported was light of the estimated $43.2 billion. Supply and demand issues — which appear to be alleviated to a certain extent across the industry — are apparently still prevalent at Apple. Not only that, but Services came in below expectations as well: $19.19 billion came up short of the estimated $20.1 billion, likely due to a -2% drop in the App Store. All that said, however, gross margins at Apple slightly outpaced expectations to 42.3%.
Amazon AMZN is getting crushed in today’s after-market following its Q3 results this afternoon. While earnings of 28 cents per share beat the Zacks consensus by 5 cents — partially due to its $1.1 billion gain from its investment in Rivian RIVN — while coming up light on top-line revenues of $127.1 billion, versus $127.9 billion expected. AWS cloud services came in light of +30% for the first time in at least 6 quarters, to +28%.
But what really appears to be hammering at Amazon shares — now -18% in late trading as I type this — is the holiday quarter guidance coming in well below expectations: a range of $140-148 billion is expected for Q4, not even close to the $157 billion in the Zacks consensus. We expect the Zacks Rank for this current #3 (Hold)-rated stock to hit the skids in the coming days.
Intel INTC was mixed in its Q3 earnings report after the bell today, posting earnings of 59 cents per share easily surpassing the 34 cents expected while revenues of $15.34 billion in the quarter clearly missed the $15.49 billion analysts were looking for. Intel also lowered both next-quarter and full-year sales guidance — to a range of $14-15 billion and $63-64 billion, respectively, from a Zacks consensus of $16.5 billion and $65.7 billion, respectively. Shares are up 7% in late trading, however, perhaps on the notice that Intel will be cutting costs by $3 billion in 2023.
Pinterest PINS put up surprisingly good numbers this afternoon on both top and bottom lines: earnings of 11 cents per share more than doubled the 5 cents anticipated, on sales of $684.6 million which outpaced the Zacks consensus $665 million. Monthly and Daily Active Users (MAU, DAU) both came in higher than expected, as did Average Revenue per User (ARPU). Shares are trading up +12% in the after market, but still down more than -25% year to date.
Questions or comments about this article and/or its author? Click here>>
This Little-Known Semiconductor Stock Could Be Your Portfolio’s Hedge Against Inflation
Everyone uses semiconductors. But only a small number of people know what they are and what they do. If you use a smartphone, computer, microwave, digital camera or refrigerator (and that’s just the tip of the iceberg), you have a need for semiconductors. That’s why their importance can’t be overstated and their disruption in the supply chain has such a global effect. But every cloud has a silver lining. Shockwaves to the international supply chain from the global pandemic have unearthed a tremendous opportunity for investors. And today, Zacks' leading stock strategist is revealing the one semiconductor stock that stands to gain the most in a new FREE report. It's yours at no cost and with no obligation.
>>Yes, I Want to Help Protect My Portfolio During the Recession
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Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Intel Corporation (INTC): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Pinterest, Inc. (PINS): Free Stock Analysis Report
Rivian Automotive, Inc. (RIVN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL has released its fiscal Q4 earnings results after Thursday’s close, outperforming estimates on both sales and earnings. Apple Inc. (AAPL): Free Stock Analysis Report Yet shares are trading down on the news, possibly due to disappointing iPhone 14 Pro sales relative to expectations.
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Apple Inc. (AAPL): Free Stock Analysis Report Apple AAPL has released its fiscal Q4 earnings results after Thursday’s close, outperforming estimates on both sales and earnings. While earnings of 28 cents per share beat the Zacks consensus by 5 cents — partially due to its $1.1 billion gain from its investment in Rivian RIVN — while coming up light on top-line revenues of $127.1 billion, versus $127.9 billion expected.
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Apple AAPL has released its fiscal Q4 earnings results after Thursday’s close, outperforming estimates on both sales and earnings. Apple Inc. (AAPL): Free Stock Analysis Report While earnings of 28 cents per share beat the Zacks consensus by 5 cents — partially due to its $1.1 billion gain from its investment in Rivian RIVN — while coming up light on top-line revenues of $127.1 billion, versus $127.9 billion expected.
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Apple Inc. (AAPL): Free Stock Analysis Report Apple AAPL has released its fiscal Q4 earnings results after Thursday’s close, outperforming estimates on both sales and earnings. While earnings of 28 cents per share beat the Zacks consensus by 5 cents — partially due to its $1.1 billion gain from its investment in Rivian RIVN — while coming up light on top-line revenues of $127.1 billion, versus $127.9 billion expected.
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18683.0
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2022-10-27 00:00:00 UTC
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Apple (AAPL) Q4 Earnings and Revenues Beat Estimates
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-q4-earnings-and-revenues-beat-estimates
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Apple (AAPL) came out with quarterly earnings of $1.29 per share, beating the Zacks Consensus Estimate of $1.26 per share. This compares to earnings of $1.24 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 2.38%. A quarter ago, it was expected that this maker of iPhones, iPads and other products would post earnings of $1.14 per share when it actually produced earnings of $1.20, delivering a surprise of 5.26%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Apple, which belongs to the Zacks Computer - Mini computers industry, posted revenues of $90.15 billion for the quarter ended September 2022, surpassing the Zacks Consensus Estimate by 1.90%. This compares to year-ago revenues of $83.36 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Apple shares have lost about 15.9% since the beginning of the year versus the S&P 500's decline of -19.6%.
What's Next for Apple?
While Apple has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Apple: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $2.15 on $128.68 billion in revenues for the coming quarter and $6.50 on $412.57 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer - Mini computers is currently in the bottom 6% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, HP (HPQ), has yet to report results for the quarter ended October 2022.
This personal computer and printer maker is expected to post quarterly earnings of $0.84 per share in its upcoming report, which represents a year-over-year change of -10.6%. The consensus EPS estimate for the quarter has been revised 0.5% lower over the last 30 days to the current level.
HP's revenues are expected to be $14.7 billion, down 11.9% from the year-ago quarter.
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) came out with quarterly earnings of $1.29 per share, beating the Zacks Consensus Estimate of $1.26 per share. Apple Inc. (AAPL): Free Stock Analysis Report Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions.
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Apple (AAPL) came out with quarterly earnings of $1.29 per share, beating the Zacks Consensus Estimate of $1.26 per share. Apple Inc. (AAPL): Free Stock Analysis Report Apple, which belongs to the Zacks Computer - Mini computers industry, posted revenues of $90.15 billion for the quarter ended September 2022, surpassing the Zacks Consensus Estimate by 1.90%.
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Apple (AAPL) came out with quarterly earnings of $1.29 per share, beating the Zacks Consensus Estimate of $1.26 per share. Apple Inc. (AAPL): Free Stock Analysis Report Apple, which belongs to the Zacks Computer - Mini computers industry, posted revenues of $90.15 billion for the quarter ended September 2022, surpassing the Zacks Consensus Estimate by 1.90%.
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Apple (AAPL) came out with quarterly earnings of $1.29 per share, beating the Zacks Consensus Estimate of $1.26 per share. Apple Inc. (AAPL): Free Stock Analysis Report While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock.
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18684.0
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2022-10-27 00:00:00 UTC
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The Apple Report: Tech-Gadget Giant “Phones It In”
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AAPL
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https://www.nasdaq.com/articles/the-apple-report%3A-tech-gadget-giant-phones-it-in
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It's funny how options sellers always seem to win in the end. They bet that stocks won't move much and collect hefty premium payments when they're right - and as Apple (NASDAQ:AAPL) demonstrated unimpressive iPhone sales growth in 2022's third quarter, stock traders hesitated while option sellers laughed all the way to the bank.
As usual, overenthusiastic message-board gurus expected Apple stock to move up or down 10%, 20%, or even more after post-earnings. In reality, Apple shares declined less than a full percentage point in after-hours trading, leaving both bulls and bears disappointed.
Perhaps this isn't such terrible news, though, during a time of high inflation, supply-chain disruptions, and overarching anxiety in the financial markets. If no news is good news, then Apple actually made the grade despite short-term traders' lofty expectations.
iPhone Sales were Adequate, but Mac was on Track
It might be an exaggeration to say that Apple "phoned it in" with lackluster Q3 2022 iPhone sales totaling $42.63 billion. After all, this result represents a decent improvement over the $38.87 billion recorded in the year-earlier quarter.
However, in today's day and age, a decent result from a giant like Apple isn't good enough for a weary, anxious Wall Street. Everybody knows that the iPhone is the product that made Apple famous - or at least, that's what people under the age of 30 probably think.
If you're old enough, you might remember that Apple first made its bones on an ancient PC called the Macintosh. This business segment is now simply called "Mac," and it's not nearly as crucial to Apple's top and bottom lines as the iPhone is.
Still, it's fairly impressive that Apple managed to grow its Mac sales from $9.18 billion in 2021's third quarter to $11.51 billion in Q3 of 2022. Notably, the company managed to achieve this during a time when PC sales are supposedly slowing.
What is a Good Buy Price for AAPL Stock?
AAPL has a Strong Buy consensus rating based on 23 Buys, four Holds, and zero Sells assigned in the past three months. The average AAPL stock price target of $183.37 implies 26.48% upside potential.
Takeaway: Apple's Overall Results were Fine but Not Mind-Blowing
So far, we've painted a bad-news, good-news picture for Apple's quarterly results. When we examine the top and bottom-line growth in Apple's third-quarter report, this decent-but-not-outstanding theme seems to persist.
Here's the need-to-know data from the report. Apple's Q3 2022 revenue increased 8% year-over-year to $90.1 billion, representing a moderate beat of the analyst consensus estimate of $88.8 billion. Meanwhile, Apple's net earnings per share of $1.29 slightly outpaced Wall Street's expectation of $1.27.
Really, then, the trading community's ho-hum response makes perfect sense. It's possible that AAPL stock will make a much bigger move to the upside or downside at some point, but for the time being, it looks like thrill-seeking investors might have to wait until Apple's next earth-shaking event.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It's possible that AAPL stock will make a much bigger move to the upside or downside at some point, but for the time being, it looks like thrill-seeking investors might have to wait until Apple's next earth-shaking event. They bet that stocks won't move much and collect hefty premium payments when they're right - and as Apple (NASDAQ:AAPL) demonstrated unimpressive iPhone sales growth in 2022's third quarter, stock traders hesitated while option sellers laughed all the way to the bank. What is a Good Buy Price for AAPL Stock?
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They bet that stocks won't move much and collect hefty premium payments when they're right - and as Apple (NASDAQ:AAPL) demonstrated unimpressive iPhone sales growth in 2022's third quarter, stock traders hesitated while option sellers laughed all the way to the bank. What is a Good Buy Price for AAPL Stock? AAPL has a Strong Buy consensus rating based on 23 Buys, four Holds, and zero Sells assigned in the past three months.
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They bet that stocks won't move much and collect hefty premium payments when they're right - and as Apple (NASDAQ:AAPL) demonstrated unimpressive iPhone sales growth in 2022's third quarter, stock traders hesitated while option sellers laughed all the way to the bank. What is a Good Buy Price for AAPL Stock? AAPL has a Strong Buy consensus rating based on 23 Buys, four Holds, and zero Sells assigned in the past three months.
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They bet that stocks won't move much and collect hefty premium payments when they're right - and as Apple (NASDAQ:AAPL) demonstrated unimpressive iPhone sales growth in 2022's third quarter, stock traders hesitated while option sellers laughed all the way to the bank. What is a Good Buy Price for AAPL Stock? AAPL has a Strong Buy consensus rating based on 23 Buys, four Holds, and zero Sells assigned in the past three months.
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18685.0
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2022-10-27 00:00:00 UTC
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Apple Inc. Q4 Income Advances, Beats estimates
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AAPL
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https://www.nasdaq.com/articles/apple-inc.-q4-income-advances-beats-estimates
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nan
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(RTTNews) - Apple Inc. (AAPL) released a profit for its fourth quarter that increased from last year and beat the Street estimates.
The company's earnings totaled $20.72 billion, or $1.29 per share. This compares with $20.55 billion, or $1.24 per share, in last year's fourth quarter.
Analysts on average had expected the company to earn $1.27 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter rose 8.1% to $90.15 billion from $83.36 billion last year.
Apple Inc. earnings at a glance (GAAP) :
-Earnings (Q4): $20.72 Bln. vs. $20.55 Bln. last year. -EPS (Q4): $1.29 vs. $1.24 last year. -Analyst Estimate: $1.27 -Revenue (Q4): $90.15 Bln vs. $83.36 Bln last year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Apple Inc. (AAPL) released a profit for its fourth quarter that increased from last year and beat the Street estimates. This compares with $20.55 billion, or $1.24 per share, in last year's fourth quarter. Analysts on average had expected the company to earn $1.27 per share, according to figures compiled by Thomson Reuters.
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(RTTNews) - Apple Inc. (AAPL) released a profit for its fourth quarter that increased from last year and beat the Street estimates. The company's earnings totaled $20.72 billion, or $1.29 per share. This compares with $20.55 billion, or $1.24 per share, in last year's fourth quarter.
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(RTTNews) - Apple Inc. (AAPL) released a profit for its fourth quarter that increased from last year and beat the Street estimates. This compares with $20.55 billion, or $1.24 per share, in last year's fourth quarter. The company's revenue for the quarter rose 8.1% to $90.15 billion from $83.36 billion last year.
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(RTTNews) - Apple Inc. (AAPL) released a profit for its fourth quarter that increased from last year and beat the Street estimates. The company's earnings totaled $20.72 billion, or $1.29 per share. This compares with $20.55 billion, or $1.24 per share, in last year's fourth quarter.
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2022-10-27 00:00:00 UTC
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Apple falls short on iPhone sales, stock falls despite earnings beat
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AAPL
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https://www.nasdaq.com/articles/apple-falls-short-on-iphone-sales-stock-falls-despite-earnings-beat
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By Dawn Chmielewski and Nivedita Balu
Oct 27 (Reuters) - Apple Inc AAPL.O on Thursday reported quarterly iPhone sales that fell short of Wall Street targets, adding to investor concerns about technology companies and sending shares down 1%, despite profit and revenue beats overall.
Apple's saving grace were Mac sales of $11.5 billion, far head of analyst estimates of $9.36 billion.
Minutes before Apple reported, Amazon.com AMZN.O added to tech sector misery, predicting a holiday profit slump that sent its shares down 20%.
Apple's results showed some resilience in the face of a weak economy and strong U.S. dollar that has led to disastrous reports from many tech companies, although Apple's quarter was saved by its oldest technology, desktop computers, while its star, the iPhone, stumbled.
Overall, Apple said quarterly revenue rose 8% to $90.1 billion, above estimates of $88.9 billion, and net profit was $1.29 per share, topping with the average analyst estimate of $1.27 per share, according to Refinitiv data.
Phone sales for the company's fiscal fourth quarter rose to $42.6 billion, when Wall Street expected sales of $43.21 billion, according to Refinitiv IBES. By contrast, the overall global smartphone market dropped 9% for the just-ended quarter, its third consecutive decline of the year, according to Canalys data.
Apple Chief Financial Officer Luca Maestri said iPhone sales set a record for the September quarter, exceeding the company's forecast.
"We did better than we anticipated, in spite of the fact that foreign exchange was a significant negative for us," said Maestri.
JP Morgan analyst Samik Chatterjee had noted early lackluster demand for base models of the , but robust consumer appetite for the high-end devices, reflecting Apple's relatively affluent customer base. He warned that weaker consumer spending could impact earnings next fiscal year.
Sales of Apple's Mac computers received a boost from this summer's introduction of redesigned MacBook Air and MacBook Pro laptops. New tablets went on sale this week.
The company reported sales of iPads were $7.2 billion, compared with the average estimate of $7.94 billion.
Apple wearables such as AirPods and other accessories notched sales of $9.7 billion, slightly ahead of the Wall Street forecast of $9.2 billion.
"Similar to iPhones, we expect the macro impacts to units to creep into the higher end at some point," wrote Barclays hardware analyst Tim Long ahead of the results.
Growth in the company's services business, which has buoyed sales and profits in recent years, saw a rise to $19.2 billion in revenue, below the estimate of $20.10 billion.
In China, which has experienced a sharp economic slowdown, Apple reported fourth-quarter sales of $15.5 billion. That is a gain from the prior quarter, when Apple logged sales of $14.6 billion.
Read more:
Meta stock craters over bleak forecast and expensive metaverse bets
Alphabet's miss fans inflation fears across digital advertising
Samsung defies chip downturn with aggressive supply and capex plans
Cloud to PCs, Microsoft forecasts spook investors as economy bites
Apple offers adventure watch, satellite SOS iPhone — and steady prices
Apple dives deeper into autos with software for car dashboard
(Reporting by Dawn Chmielewski in Los Angeles and Nivedita Balu in Bengaluru; Editing by Peter Henderson and Lisa Shumaker)
((Dawn.Chmielewski@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Dawn Chmielewski and Nivedita Balu Oct 27 (Reuters) - Apple Inc AAPL.O on Thursday reported quarterly iPhone sales that fell short of Wall Street targets, adding to investor concerns about technology companies and sending shares down 1%, despite profit and revenue beats overall. "Similar to iPhones, we expect the macro impacts to units to creep into the higher end at some point," wrote Barclays hardware analyst Tim Long ahead of the results. Read more: Meta stock craters over bleak forecast and expensive metaverse bets Alphabet's miss fans inflation fears across digital advertising Samsung defies chip downturn with aggressive supply and capex plans Cloud to PCs, Microsoft forecasts spook investors as economy bites Apple offers adventure watch, satellite SOS iPhone — and steady prices Apple dives deeper into autos with software for car dashboard (Reporting by Dawn Chmielewski in Los Angeles and Nivedita Balu in Bengaluru; Editing by Peter Henderson and Lisa Shumaker) ((Dawn.Chmielewski@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Dawn Chmielewski and Nivedita Balu Oct 27 (Reuters) - Apple Inc AAPL.O on Thursday reported quarterly iPhone sales that fell short of Wall Street targets, adding to investor concerns about technology companies and sending shares down 1%, despite profit and revenue beats overall. Overall, Apple said quarterly revenue rose 8% to $90.1 billion, above estimates of $88.9 billion, and net profit was $1.29 per share, topping with the average analyst estimate of $1.27 per share, according to Refinitiv data. Phone sales for the company's fiscal fourth quarter rose to $42.6 billion, when Wall Street expected sales of $43.21 billion, according to Refinitiv IBES.
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By Dawn Chmielewski and Nivedita Balu Oct 27 (Reuters) - Apple Inc AAPL.O on Thursday reported quarterly iPhone sales that fell short of Wall Street targets, adding to investor concerns about technology companies and sending shares down 1%, despite profit and revenue beats overall. Overall, Apple said quarterly revenue rose 8% to $90.1 billion, above estimates of $88.9 billion, and net profit was $1.29 per share, topping with the average analyst estimate of $1.27 per share, according to Refinitiv data. Phone sales for the company's fiscal fourth quarter rose to $42.6 billion, when Wall Street expected sales of $43.21 billion, according to Refinitiv IBES.
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By Dawn Chmielewski and Nivedita Balu Oct 27 (Reuters) - Apple Inc AAPL.O on Thursday reported quarterly iPhone sales that fell short of Wall Street targets, adding to investor concerns about technology companies and sending shares down 1%, despite profit and revenue beats overall. Overall, Apple said quarterly revenue rose 8% to $90.1 billion, above estimates of $88.9 billion, and net profit was $1.29 per share, topping with the average analyst estimate of $1.27 per share, according to Refinitiv data. Phone sales for the company's fiscal fourth quarter rose to $42.6 billion, when Wall Street expected sales of $43.21 billion, according to Refinitiv IBES.
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2022-10-27 00:00:00 UTC
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MORNING BID-The yen also rises
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AAPL
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https://www.nasdaq.com/articles/morning-bid-the-yen-also-rises
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nan
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nan
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By Jamie McGeever
Oct 28 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever
The heat is off the Bank of Japan. A little.
The BOJ announces its policy decision on Friday against a much calmer market backdrop than only a few days ago. Economists expect no change to the bank's ultra-loose stance and an upward revision to the inflation outlook.
Other Japanese data due on Friday include inflation and unemployment, which could also drive trading sentiment in Asia.
The dollar has slumped to a three-week low against the yen and below the level that prompted the BOJ's historic yen-buying intervention on Sept. 22. Two subsequent bouts of suspected intervention appear to have done the trick, for now at least.
Not only has the BOJ been helped by a wider pullback in the dollar, as investors begin to consider a less aggressive Fed beyond next week's expected 75 bps rate hike, an easing of financial conditions has helped markets more broadly.
The Dow is up five days in a row, its best run since August, the 10-year Treasury yield is back below 4% and MSCI Asia ex-Japan is up three days in a row, its best stretch in seven weeks.
Of course, it's a bit more complicated than that. Meta Platforms Inc's META.Oshares sank 25% after its Q3 results spooked investors, hammering the tech sector. Apple AAPL.Oand Amazon AMZN.Oare up next with earnings.
There are other reasons to suspect this week's 'risk on' rally could soon fade.
While it may not be directly affecting markets on a day-to-day basis, there is still a war raging on Europe's doorstep. And after Chinese President Xi Jinping secured his third term as leader at the weekend, cities and districts across China are doubling down on COVID-19 lockdowns.
Three key developments that could provide more direction to markets on Friday:
Bank of Japan policy decision (no change expected)
U.S. PCE inflation (September)
U.S. earnings (Apple, Amazon)
Yen and BOJ interventionhttps://tmsnrt.rs/3DB8YOk
Japan 10-year yield & BOJ caphttps://tmsnrt.rs/3gNm1TM
(Reporting by Jamie McGeever in Orlando, Fla.; Editing by Josie Kao)
((jamie.mcgeever@thomsonreuters.com; +1 (407) 288-5607; Reuters Messaging: jamie.mcgeever.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.Oand Amazon AMZN.Oare up next with earnings. Other Japanese data due on Friday include inflation and unemployment, which could also drive trading sentiment in Asia. And after Chinese President Xi Jinping secured his third term as leader at the weekend, cities and districts across China are doubling down on COVID-19 lockdowns.
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Apple AAPL.Oand Amazon AMZN.Oare up next with earnings. By Jamie McGeever Oct 28 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever The heat is off the Bank of Japan. The BOJ announces its policy decision on Friday against a much calmer market backdrop than only a few days ago.
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Apple AAPL.Oand Amazon AMZN.Oare up next with earnings. By Jamie McGeever Oct 28 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever The heat is off the Bank of Japan. Not only has the BOJ been helped by a wider pullback in the dollar, as investors begin to consider a less aggressive Fed beyond next week's expected 75 bps rate hike, an easing of financial conditions has helped markets more broadly.
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Apple AAPL.Oand Amazon AMZN.Oare up next with earnings. Other Japanese data due on Friday include inflation and unemployment, which could also drive trading sentiment in Asia. Two subsequent bouts of suspected intervention appear to have done the trick, for now at least.
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After-Hours Earnings Report for October 27, 2022 : AAPL, AMZN, TMUS, INTC, GILD, VRTX, PXD, EW, LHX, RSG, DXCM, COF
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AAPL
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https://www.nasdaq.com/articles/after-hours-earnings-report-for-october-27-2022-%3A-aapl-amzn-tmus-intc-gild-vrtx-pxd-ew-lhx
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The following companies are expected to report earnings after hours on 10/27/2022. Visit our Earnings Calendar for a full list of expected earnings releases.
Apple Inc. (AAPL)is reporting for the quarter ending September 30, 2022. The computer company's consensus earnings per share forecast from the 12 analysts that follow the stock is $1.26. This value represents a 1.61% increase compared to the same quarter last year. In the past year AAPL has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for AAPL is 24.44 vs. an industry ratio of 5.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Amazon.com, Inc. (AMZN)is reporting for the quarter ending September 30, 2022. The internet company's consensus earnings per share forecast from the 10 analysts that follow the stock is $0.22. This value represents a 29.03% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for AMZN is 124.37 vs. an industry ratio of 13.20, implying that they will have a higher earnings growth than their competitors in the same industry.
T-Mobile US, Inc. (TMUS)is reporting for the quarter ending September 30, 2022. The wireless (national) company's consensus earnings per share forecast from the 11 analysts that follow the stock is $0.53. This value represents a 3.64% decrease compared to the same quarter last year. In the past year TMUS has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 248.78%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for TMUS is 71.49 vs. an industry ratio of 6.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Intel Corporation (INTC)is reporting for the quarter ending September 30, 2022. The semiconductor company's consensus earnings per share forecast from the 14 analysts that follow the stock is $0.34. This value represents a 80.12% decrease compared to the same quarter last year. INTC missed the consensus earnings per share in the 2nd calendar quarter of 2022 by -57.97%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for INTC is 12.42 vs. an industry ratio of 32.30.
Gilead Sciences, Inc. (GILD)is reporting for the quarter ending September 30, 2022. The biomedical (gene) company's consensus earnings per share forecast from the 11 analysts that follow the stock is $1.44. This value represents a 45.66% decrease compared to the same quarter last year. GILD missed the consensus earnings per share in the 4th calendar quarter of 2021 by -54.9%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for GILD is 10.83 vs. an industry ratio of 0.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Vertex Pharmaceuticals Incorporated (VRTX)is reporting for the quarter ending September 30, 2022. The biomedical (gene) company's consensus earnings per share forecast from the 10 analysts that follow the stock is $3.31. This value represents a 1.85% increase compared to the same quarter last year. VRTX missed the consensus earnings per share in the 1st calendar quarter of 2022 by -0.32%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for VRTX is 24.64 vs. an industry ratio of 0.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Pioneer Natural Resources Company (PXD)is reporting for the quarter ending September 30, 2022. The oil (us exp & production) company's consensus earnings per share forecast from the 11 analysts that follow the stock is $7.43. This value represents a 79.90% increase compared to the same quarter last year. In the past year PXD has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 6.24%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for PXD is 8.32 vs. an industry ratio of 6.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Edwards Lifesciences Corporation (EW)is reporting for the quarter ending September 30, 2022. The medical instruments company's consensus earnings per share forecast from the 12 analysts that follow the stock is $0.62. This value represents a 14.81% increase compared to the same quarter last year. EW missed the consensus earnings per share in the 4th calendar quarter of 2021 by -7.27%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for EW is 34.57 vs. an industry ratio of 31.00, implying that they will have a higher earnings growth than their competitors in the same industry.
L3Harris Technologies, Inc. (LHX)is reporting for the quarter ending September 30, 2022. The aerospace and defense company's consensus earnings per share forecast from the 8 analysts that follow the stock is $3.44. This value represents a 7.17% increase compared to the same quarter last year. In the past year LHX has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 2.22%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for LHX is 18.60 vs. an industry ratio of 4.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Republic Services, Inc. (RSG)is reporting for the quarter ending September 30, 2022. The waste removal company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.21. This value represents a 9.01% increase compared to the same quarter last year. In the past year RSG has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 11.86%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for RSG is 28.07 vs. an industry ratio of 18.50, implying that they will have a higher earnings growth than their competitors in the same industry.
DexCom, Inc. (DXCM)is reporting for the quarter ending September 30, 2022. The medical instruments company's consensus earnings per share forecast from the 10 analysts that follow the stock is $0.24. This value represents a 9.09% increase compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DXCM is 129.89 vs. an industry ratio of 31.00, implying that they will have a higher earnings growth than their competitors in the same industry.
Capital One Financial Corporation (COF)is reporting for the quarter ending September 30, 2022. The financial services company's consensus earnings per share forecast from the 11 analysts that follow the stock is $5.03. This value represents a 26.68% decrease compared to the same quarter last year. COF missed the consensus earnings per share in the 2nd calendar quarter of 2022 by -3.31%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for COF is 5.12 vs. an industry ratio of 4.50, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL)is reporting for the quarter ending September 30, 2022. In the past year AAPL has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for AAPL is 24.44 vs. an industry ratio of 5.30, implying that they will have a higher earnings growth than their competitors in the same industry.
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Zacks Investment Research reports that the 2022 Price to Earnings ratio for AAPL is 24.44 vs. an industry ratio of 5.30, implying that they will have a higher earnings growth than their competitors in the same industry. Apple Inc. (AAPL)is reporting for the quarter ending September 30, 2022. In the past year AAPL has met analyst expectations once and beat the expectations the other three quarters.
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Apple Inc. (AAPL)is reporting for the quarter ending September 30, 2022. In the past year AAPL has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for AAPL is 24.44 vs. an industry ratio of 5.30, implying that they will have a higher earnings growth than their competitors in the same industry.
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Apple Inc. (AAPL)is reporting for the quarter ending September 30, 2022. In the past year AAPL has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for AAPL is 24.44 vs. an industry ratio of 5.30, implying that they will have a higher earnings growth than their competitors in the same industry.
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18689.0
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2022-10-27 00:00:00 UTC
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EU wants 40-man antitrust team to enforce new tech rules, official says
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AAPL
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https://www.nasdaq.com/articles/eu-wants-40-man-antitrust-team-to-enforce-new-tech-rules-official-says
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nan
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nan
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By Foo Yun Chee
BRUSSELS, Oct 27 (Reuters) - EU antitrust regulators are looking to establish a 40-man team and hire a technology expert to enforce tough new rules aimed at reining in the powers of Big Tech, an EU official said on Thursday.
The rules known as the Digital Markets Act (DMA) sets out a list of do's and don'ts for Alphabet GOOGL.O unit Google, Meta META.O, Amazon AMZN.O, Apple AAPL.O, Microsoft MSFT.O and other gatekeepers which control access to their sites and the data there.
Reuters exclusively reported in July that the European Commission was considering creating a to allay concerns that it may struggle to get deep-pocketed and well-advised tech companies to comply with the new rules.
A 12-man unit headed by antitrust veteran Thomas Kramler who is currently handling the Apple and Amazon antitrust investigations and a 9-person strong taskforce will move to the new directorate, the official said.
The EU competition enforcer aims to hire 19 more people for the directorate and a chief technology officer to focus on data, the official said.
The new unit will need the green light from the college of commissioners from the 27 EU countries in the coming weeks before it can be set up.
Enforcement of the DMA will be done jointly with the Directorate-General for Communications Networks, Content and Technology which has also set up a new unit for the task.
The Commission has previously said some 80 enforcers would be needed.
(Reporting by Foo Yun Chee; editing by Grant McCool)
((foo.yunchee@thomsonreuters.com; +32 2 287 6844; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The rules known as the Digital Markets Act (DMA) sets out a list of do's and don'ts for Alphabet GOOGL.O unit Google, Meta META.O, Amazon AMZN.O, Apple AAPL.O, Microsoft MSFT.O and other gatekeepers which control access to their sites and the data there. Reuters exclusively reported in July that the European Commission was considering creating a to allay concerns that it may struggle to get deep-pocketed and well-advised tech companies to comply with the new rules. The EU competition enforcer aims to hire 19 more people for the directorate and a chief technology officer to focus on data, the official said.
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The rules known as the Digital Markets Act (DMA) sets out a list of do's and don'ts for Alphabet GOOGL.O unit Google, Meta META.O, Amazon AMZN.O, Apple AAPL.O, Microsoft MSFT.O and other gatekeepers which control access to their sites and the data there. By Foo Yun Chee BRUSSELS, Oct 27 (Reuters) - EU antitrust regulators are looking to establish a 40-man team and hire a technology expert to enforce tough new rules aimed at reining in the powers of Big Tech, an EU official said on Thursday. The EU competition enforcer aims to hire 19 more people for the directorate and a chief technology officer to focus on data, the official said.
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The rules known as the Digital Markets Act (DMA) sets out a list of do's and don'ts for Alphabet GOOGL.O unit Google, Meta META.O, Amazon AMZN.O, Apple AAPL.O, Microsoft MSFT.O and other gatekeepers which control access to their sites and the data there. By Foo Yun Chee BRUSSELS, Oct 27 (Reuters) - EU antitrust regulators are looking to establish a 40-man team and hire a technology expert to enforce tough new rules aimed at reining in the powers of Big Tech, an EU official said on Thursday. The EU competition enforcer aims to hire 19 more people for the directorate and a chief technology officer to focus on data, the official said.
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The rules known as the Digital Markets Act (DMA) sets out a list of do's and don'ts for Alphabet GOOGL.O unit Google, Meta META.O, Amazon AMZN.O, Apple AAPL.O, Microsoft MSFT.O and other gatekeepers which control access to their sites and the data there. By Foo Yun Chee BRUSSELS, Oct 27 (Reuters) - EU antitrust regulators are looking to establish a 40-man team and hire a technology expert to enforce tough new rules aimed at reining in the powers of Big Tech, an EU official said on Thursday. Reuters exclusively reported in July that the European Commission was considering creating a to allay concerns that it may struggle to get deep-pocketed and well-advised tech companies to comply with the new rules.
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18690.0
|
2022-10-27 00:00:00 UTC
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Apple (AAPL) Earnings: Previewing a Potential Options Trade
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-earnings%3A-previewing-a-potential-options-trade
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nan
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nan
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W
elcome to the ORATS earnings report where we scan for companies with upcoming earnings announcements, check out historical earnings information, and find a potential options trade.
Read on or watch the video overview here: https://youtu.be/dEO4Dzx_4oE.
Let's start by running a scan on stocks reporting earnings this week, which includes the total option volume indicator, sorted from greatest to least.
Focusing on Apple, as we click through, we see this large-cap company in the consumer electronics industry reports earnings on Thursday, October 27th, after the close.
The earnings and financials tab takes us to more detail showing the options market expecting a move of 4.7% in either direction. This move was breached in 3 out of the last 12 earnings.
During that time, the post-earnings move was outside of the implied range 3 times. In those cases, long straddles were profitable. The rest of the earnings moves likely yielded profitable short straddles. We can overlay quarterly financial data by clicking on the ratios below the earn move graph. Let's look at the PE ratio, which is the stock price divided by the trailing twelve months earnings per share.
For AAPL, the current PE ratio is 24.3, which is 12.2% under the average for the last twelve earnings observations. Returning to the overview tab, we can quickly run a scan to find the best option trades. Since earnings are right around the corner, we scan for neutral strategies, then filter the scan results by S%, or smoothed edge, by setting it between negative and positive 3%.
This helps narrow the results to trades that are fairly priced. The highest ranked trade is a LongPutCalendar with strikes at 147, expiring on Friday, December 9th and Friday, November 18th, for a debit of $1.2.
By pulling up the trade, we can see the theoretical values in more detail. The distribution edge, found by the expected value of the payoff picture on the stock's historical distribution, has an edge of 45.0%. The forecast edge, which is derived from historical volatility, has an edge of 20.8%. Lastly, the smoothed edge, which is calculated by drawing a best fit curve through the monthly implied volatilities, has an edge of -2.5%. The edge is relative to the mid-market price of the trade. Greater positive edges are a theoretical benefit to the trader. We can also look at the payoff graph. The reward to risk divides the max gain by the max loss. Here the 3.4 to 1 is the ratio of the max gain of $402 to the max loss of $-120. There are two break evens for this LongPutCalendar at 138.18 and 157.11. The total greeks and ThinkOrSwim code complete the information on the trade analysis popout.
Next, let's look at this trade in the trade builder. Over the last month, the stock price fell 1.9%, while the thirty-day implied volatility fell 1.2%. The average slope of the trendlines is negative. The heatmap on the right side of the graph is green where volatility and slope are undervalued, and red where they are overvalued. In this case, short term IV and slope are neutral, while the long term is slightly overvalued.
We can also see this trade overlaid on the monthly implied volatility graph in the chain tab. The legs for this trade are circled.
For any questions or issues with the article, please contact otto@orats.com. To subscribe to the dashboard, please visit https://orats.com/dashboard
Disclaimer:
The opinions and ideas presented herein are for informational and educational purposes only and should not be construed to represent trading or investment advice tailored to your investment objectives. You should not rely solely on any content herein and we strongly encourage you to discuss any trades or investments with your broker or investment adviser, prior to execution. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. Option trading and investing involves risk and is not suitable for all investors.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For AAPL, the current PE ratio is 24.3, which is 12.2% under the average for the last twelve earnings observations. Let's start by running a scan on stocks reporting earnings this week, which includes the total option volume indicator, sorted from greatest to least. Focusing on Apple, as we click through, we see this large-cap company in the consumer electronics industry reports earnings on Thursday, October 27th, after the close.
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For AAPL, the current PE ratio is 24.3, which is 12.2% under the average for the last twelve earnings observations. elcome to the ORATS earnings report where we scan for companies with upcoming earnings announcements, check out historical earnings information, and find a potential options trade. Let's look at the PE ratio, which is the stock price divided by the trailing twelve months earnings per share.
|
For AAPL, the current PE ratio is 24.3, which is 12.2% under the average for the last twelve earnings observations. elcome to the ORATS earnings report where we scan for companies with upcoming earnings announcements, check out historical earnings information, and find a potential options trade. Since earnings are right around the corner, we scan for neutral strategies, then filter the scan results by S%, or smoothed edge, by setting it between negative and positive 3%.
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For AAPL, the current PE ratio is 24.3, which is 12.2% under the average for the last twelve earnings observations. We can overlay quarterly financial data by clicking on the ratios below the earn move graph. Returning to the overview tab, we can quickly run a scan to find the best option trades.
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18691.0
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2022-10-27 00:00:00 UTC
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US STOCKS-S&P 500, Nasdaq end lower but the Dow jumps as earnings bifurcate
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-end-lower-but-the-dow-jumps-as-earnings-bifurcate
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nan
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nan
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By Stephen Culp
NEW YORK, Oct 27 (Reuters) - The S&P 500 and the Nasdaq posted losses on Thursday, as investors juggled solid economic data and a mixed spate of corporate earnings.
The price-weighted Dow advanced, held aloft by industrials .SPLRCI, while weakness in market-moving tech and tech-adjacent megacaps depressed the S&P 500 and Nasdaq in the wake of downbeat quarterly results and dour guidance.
"It’s very much a bifurcated market, a tale of two cities," said Tim Ghriskey, senior portfolio strategist Ingalls & Snyder in New York.
"There's lot of pressure on tech and tech-plus names, higher growth names," Ghriskey added. "On the flipside you’re seeing a lot of strength in other sectors, in particular consumer staples, energy, financials, industrials and utilities."
Meta Platforms META.O plunged after the Facebook parent followed the trend set by Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O by providing gloomy forward guidance.
But heavy equipment maker Caterpillar Inc CAT.Nreported better-than-expected quarterly profit, sending its shares jumping.
A third-quarter GDP reading showing the U.S. economy returned to growth in the July-Sept period, along with steady quarterly core inflation helped take the sting out of earnings.
Investors continue to scan the economic horizon for evidence that the barrage of aggressive interest rate hikes from the Federal Reserve, begun in March, are beginning to have the desired effect by cooling down the economy.
While a 75 basis point rate hike at the conclusion of its Nov. 1-2 policy meeting is all but assured, the likelihood of a smaller, 50 basis point hike in December was about 55%, according to CME's FedWatch tool.
"The overriding theme is really the Fed. The Fed is going to control the direction of this market over the coming months," Ghriskey added.
Third-quarter reporting season forges ahead at full speed, with 227 of the companies in the S&P 500 having reported. Of those, 74% have beaten consensus estimates.
Analysts now see aggregate S&P earnings growth of 2.5%, down from 4.5% at the beginning of October.
"In general we’ve seen earnings come in at or slightly above expectations," Ghriskey said. "But those expectations have been lowered throughout the quarter."
McDonalds Corp MCD.N advanced after the fast food chain beat quarterly same-store sales estimates.
Southwest Airlines Co LUV.N quarterly profit topped consensus estimates, sending the carrier's stock higher.
Amazon.com AMZN.O and Apple Inc AAPL.O are due to report shortly.
GDPhttps://tmsnrt.rs/3FmFWDa
(Reporting by Stephen Culp; Additional reporting by Amruta Khandekar and Shreyashi Sanyal in Bengaluru; Editing by Cynthia Osterman)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Amazon.com AMZN.O and Apple Inc AAPL.O are due to report shortly. By Stephen Culp NEW YORK, Oct 27 (Reuters) - The S&P 500 and the Nasdaq posted losses on Thursday, as investors juggled solid economic data and a mixed spate of corporate earnings. The price-weighted Dow advanced, held aloft by industrials .SPLRCI, while weakness in market-moving tech and tech-adjacent megacaps depressed the S&P 500 and Nasdaq in the wake of downbeat quarterly results and dour guidance.
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Amazon.com AMZN.O and Apple Inc AAPL.O are due to report shortly. "There's lot of pressure on tech and tech-plus names, higher growth names," Ghriskey added. While a 75 basis point rate hike at the conclusion of its Nov. 1-2 policy meeting is all but assured, the likelihood of a smaller, 50 basis point hike in December was about 55%, according to CME's FedWatch tool.
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Amazon.com AMZN.O and Apple Inc AAPL.O are due to report shortly. The price-weighted Dow advanced, held aloft by industrials .SPLRCI, while weakness in market-moving tech and tech-adjacent megacaps depressed the S&P 500 and Nasdaq in the wake of downbeat quarterly results and dour guidance. A third-quarter GDP reading showing the U.S. economy returned to growth in the July-Sept period, along with steady quarterly core inflation helped take the sting out of earnings.
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Amazon.com AMZN.O and Apple Inc AAPL.O are due to report shortly. The Fed is going to control the direction of this market over the coming months," Ghriskey added. Of those, 74% have beaten consensus estimates.
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18692.0
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2022-10-27 00:00:00 UTC
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After Hours Most Active for Oct 27, 2022 : AMZN, AAPL, SNAP, TQQQ, SQQQ, TWTR, ATUS, QQQ, INTC, PINS, WFC, C
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-oct-27-2022-%3A-amzn-aapl-snap-tqqq-sqqq-twtr-atus-qqq-intc-pins
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -166.52 to 11,025.11. The total After hours volume is currently 112,655,031 shares traded.
The following are the most active stocks for the after hours session:
Amazon.com, Inc. (AMZN) is -21.46 at $89.50, with 16,657,310 shares traded. Smarter Analyst Reports: Amazon Faces $1.28B Fine in Italy — Report
Apple Inc. (AAPL) is -3.11 at $141.69, with 7,983,336 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2022. The consensus EPS forecast is $1.26. Smarter Analyst Reports: Microsoft’s $16B Nuance Communication Acquisition Nears EU Approval – Report
Snap Inc. (SNAP) is -0.24 at $9.32, with 6,600,594 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 $-0.08. SNAP's current last sale is 93.2% of the target price of $10.
ProShares UltraPro QQQ (TQQQ) is -1.24 at $18.66, with 6,184,504 shares traded. This represents a 14.34% increase from its 52 Week Low.
ProShares UltraPro Short QQQ (SQQQ) is +3.44 at $58.64, with 5,080,954 shares traded. This represents a 108.31% increase from its 52 Week Low.
Twitter, Inc. (TWTR) is +0.12 at $53.82, with 4,697,129 shares traded. TWTR's current last sale is 109.84% of the target price of $49.
Altice USA, Inc. (ATUS) is -0.01 at $6.49, with 4,052,183 shares traded.ATUS is scheduled to provide an earnings report on 11/2/2022, for the fiscal quarter ending Sep2022. The consensus earnings per share forecast is 0.34 per share, which represents a 58 percent increase over the EPS one Year Ago
Invesco QQQ Trust, Series 1 (QQQ) is -5.67 at $267.20, with 3,893,258 shares traded. This represents a 5.09% increase from its 52 Week Low.
Intel Corporation (INTC) is +1.95 at $28.22, with 3,543,753 shares traded. Smarter Analyst Reports: Intel Plans Mobileye Public Listing – Report
Pinterest, Inc. (PINS) is +2.81 at $24.70, with 3,427,808 shares traded. PINS's current last sale is 91.48% of the target price of $27.
Wells Fargo & Company (WFC) is unchanged at $45.65, with 3,051,120 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. The consensus EPS forecast is $1.27. As reported by Zacks, the current mean recommendation for WFC is in the "buy range".
Citigroup Inc. (C) is -0.29 at $45.15, with 2,174,351 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 $1.38. C's current last sale is 77.18% of the target price of $58.5.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -3.11 at $141.69, with 7,983,336 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2022. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022.
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Apple Inc. (AAPL) is -3.11 at $141.69, with 7,983,336 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022.
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Apple Inc. (AAPL) is -3.11 at $141.69, with 7,983,336 shares traded. Snap Inc. (SNAP) is -0.24 at $9.32, with 6,600,594 shares traded. Altice USA, Inc. (ATUS) is -0.01 at $6.49, with 4,052,183 shares traded.ATUS is scheduled to provide an earnings report on 11/2/2022, for the fiscal quarter ending Sep2022.
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Apple Inc. (AAPL) is -3.11 at $141.69, with 7,983,336 shares traded. Amazon.com, Inc. (AMZN) is -21.46 at $89.50, with 16,657,310 shares traded. As reported by Zacks, the current mean recommendation for WFC is in the "buy range".
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18693.0
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2022-10-27 00:00:00 UTC
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How Midterms Could Impact Your ETF Portfolio
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AAPL
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https://www.nasdaq.com/articles/how-midterms-could-impact-your-etf-portfolio
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nan
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nan
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(0:45) - Should Investors Chase The Market Rally?
(4:30) - What Impact Will The Mid-term Elections Have On The Stock Market?
(8:40) - Will The Energy Policies Open Up Investment Oppurtunites?
(13:35) - Can We Expect The Defense Spending To Increase After Elections?
(17:00) - Investing Around Tax Policies: RWR & SPYD
(23:30) - ETF Fund Flows: What Are The Current Investment Trends?
Podcast@Zacks.com
In this episode of ETF Spotlight, I speak with Matthew Bartolini, Head of SPDR Americas Research at State Street Global Advisors, about midterm elections and their likely impact on key policy issues.
Stocks have generally had positive returns in the year following midterm elections. Per WSJ, the S&P 500 index has risen in the one-year period following every midterm election since 1942. Could this time be different?
Recent polls suggest that a split Congress is the most likely outcome, with Republicans winning the House and Democrats retaining the Senate. Stocks generally do well during periods of gridlock.
The SPDR S&P Kensho Clean Power ETF CNRG, which provides a modified equal weighted exposure to firms associated with clean power generation, could benefit if Democrats retain control of Congress.
A Republican-controlled Congress could boost traditional energy ETFs like the Energy Select Sector SPDR ETF XLE and the SPDR S&P Oil & Gas Exploration & Production ETF XOP. Exxon Mobil XOM and Chevron CVX are among the top holdings in these funds.
If Republicans win the House and Senate, large technology and semiconductor companies with substatial international exposure, like Apple AAPL and NVIDIA NVDA could benefit. Take a look at the SPDR S&P Semiconductor ETF XSD and the SPDR NYSE Technology ETF XNTK.
The SPDR Portfolio S&P 500 High Dividend ETF SPYD is worth a look If Democrats retain control of Congress as companies may prioritize returning cash to investors via dividends.
Increasing defense spending is one of the few areas that the two parties agree on. Bipartisan support for further infrastructure spending is also likely.
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Apple Inc. (AAPL): Free Stock Analysis Report
Chevron Corporation (CVX): Free Stock Analysis Report
Exxon Mobil Corporation (XOM): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Energy Select Sector SPDR ETF (XLE): ETF Research Reports
SPDR S&P Oil & Gas Exploration & Production ETF (XOP): ETF Research Reports
SPDR Portfolio S&P 500 High Dividend ETF (SPYD): ETF Research Reports
SPDR S&P Semiconductor ETF (XSD): ETF Research Reports
SPDR NYSE Technology ETF (XNTK): ETF Research Reports
SPDR S&P Kensho Clean Power ETF (CNRG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If Republicans win the House and Senate, large technology and semiconductor companies with substatial international exposure, like Apple AAPL and NVIDIA NVDA could benefit. Apple Inc. (AAPL): Free Stock Analysis Report Podcast@Zacks.com In this episode of ETF Spotlight, I speak with Matthew Bartolini, Head of SPDR Americas Research at State Street Global Advisors, about midterm elections and their likely impact on key policy issues.
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If Republicans win the House and Senate, large technology and semiconductor companies with substatial international exposure, like Apple AAPL and NVIDIA NVDA could benefit. Apple Inc. (AAPL): Free Stock Analysis Report A Republican-controlled Congress could boost traditional energy ETFs like the Energy Select Sector SPDR ETF XLE and the SPDR S&P Oil & Gas Exploration & Production ETF XOP.
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If Republicans win the House and Senate, large technology and semiconductor companies with substatial international exposure, like Apple AAPL and NVIDIA NVDA could benefit. Apple Inc. (AAPL): Free Stock Analysis Report A Republican-controlled Congress could boost traditional energy ETFs like the Energy Select Sector SPDR ETF XLE and the SPDR S&P Oil & Gas Exploration & Production ETF XOP.
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If Republicans win the House and Senate, large technology and semiconductor companies with substatial international exposure, like Apple AAPL and NVIDIA NVDA could benefit. Apple Inc. (AAPL): Free Stock Analysis Report Podcast@Zacks.com In this episode of ETF Spotlight, I speak with Matthew Bartolini, Head of SPDR Americas Research at State Street Global Advisors, about midterm elections and their likely impact on key policy issues.
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18694.0
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2022-10-27 00:00:00 UTC
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US STOCKS-S&P 500, Nasdaq slide, but Dow ends higher on mixed earnings picture
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-slide-but-dow-ends-higher-on-mixed-earnings-picture
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nan
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nan
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(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)
*
Amazon, Apple shares drop after earnings
*
Caterpillar, McDonald's gain on earnings beats
*
U.S. economic growth rebounds in Q3
*
Meta plunges on weak forecast
*
Dow up 0.61%, Nasdaq down 1.63%, S&P down 0.61%
(Updates with closing prices, Amazon, Apple results)
By Stephen Culp
NEW YORK, Oct 27 (Reuters) - The S&P 500 and the Nasdaq
posted losses on Thursday, as investors contended with solid
economic data and a mixed bag of corporate earnings.
The price-weighted Dow advanced, held aloft by industrials
<.SPLRCI>, while weakness in market-moving tech and
tech-adjacent megacaps depressed the S&P 500 and Nasdaq in the
wake of downbeat quarterly results and dour guidance.
"It’s very much a bifurcated market, a tale of two cities,"
said Tim Ghriskey, senior portfolio strategist Ingalls & Snyder
in New York.
"There's lot of pressure on tech and tech-plus names, higher
growth names," Ghriskey added. "On the flipside you’re seeing a
lot of strength in other sectors, in particular consumer
staples, energy, financials, industrials and utilities."
Meta Platforms plunged 24.6% after the Facebook
parent followed the trend set by Microsoft Corp and
Alphabet Inc by providing gloomy forward guidance.
But heavy equipment maker Caterpillar Inc reported
better-than-expected quarterly profit, sending its shares
jumping 7.7% and providing the most muscle to the Dow's advance.
A third-quarter GDP reading showing the U.S. economy
returned to growth in the July-Sept period, along with steady
quarterly core inflation helped take the sting out of earnings.
Investors continue to scan the economic horizon for evidence
that the barrage of aggressive interest rate hikes from the
Federal Reserve, begun in March, are beginning to have the
desired effect by cooling down the economy.
While a 75 basis point rate hike at the conclusion of its
Nov. 1-2 policy meeting is all but assured, the likelihood of a
smaller, 50 basis point hike in December was 55%, according to
CME's FedWatch tool.
"The overriding theme is really the Fed. The Fed is going to
control the direction of this market over the coming months,"
Ghriskey added.
The Dow Jones Industrial Average <.DJI> rose 194.17 points,
or 0.61%, to 32,033.28, the S&P 500 <.SPX> lost 23.3 points, or
0.61%, to 3,807.3 and the Nasdaq Composite <.IXIC> dropped
178.32 points, or 1.63%, to 10,792.68.
Among the 11 major sectors of the S&P 500, industrials had
the biggest percentage gain, with communication services
<.SPLRCL>, weighed by Meta, down the most.
Third-quarter reporting season forges ahead at full speed,
with 227 of the companies in the S&P 500 having reported. Of
those, 74% have beaten consensus estimates.
Analysts now see aggregate S&P earnings growth of 2.5%, down
from 4.5% at the beginning of October.
"In general we’ve seen earnings come in at or slightly above
expectations," Ghriskey said. "But those expectations have been
lowered throughout the quarter."
McDonald's Corp gained 3.3% after the fast food
chain beat quarterly same-store sales estimates.
Shares of Southwest Airlines Co rose 2.7% after
the carrier's quarterly profit topped consensus estimates.
Shares of Amazon.com dropped more than 19% in
post-market trading after the company provided a disappointing
sales forecast.
Shares of Apple Inc slid more than 5% in
after-hours trading after the gadget maker beat revenue and
profit estimates, but reported light iPhone sales.
Intel Corp rose as much 7% before paring gains post
market, even after cutting its annual revenue forecast.
Advancing issues outnumbered declining ones on the NYSE by a
1.18-to-1 ratio; on Nasdaq, a 1.10-to-1 ratio favored decliners.
The S&P 500 posted 23 new 52-week highs and 12 new lows; the
Nasdaq Composite recorded 93 new highs and 119 new lows.
Volume on U.S. exchanges was 11.36 billion shares, compared
with the 11.59 billion average over the last 20 trading days.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
GDP https://tmsnrt.rs/3FmFWDa
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Stephen Culp; Additional reporting by Amruta
Khandekar and Shreyashi Sanyal in Bengaluru; Editing by Cynthia
Osterman)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
Keywords: USA STOCKS/ (UPDATE 7, GRAPHIC)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(Updates with closing prices, Amazon, Apple results) By Stephen Culp NEW YORK, Oct 27 (Reuters) - The S&P 500 and the Nasdaq posted losses on Thursday, as investors contended with solid economic data and a mixed bag of corporate earnings. The price-weighted Dow advanced, held aloft by industrials <.SPLRCI>, while weakness in market-moving tech and tech-adjacent megacaps depressed the S&P 500 and Nasdaq in the wake of downbeat quarterly results and dour guidance. Investors continue to scan the economic horizon for evidence that the barrage of aggressive interest rate hikes from the Federal Reserve, begun in March, are beginning to have the desired effect by cooling down the economy.
|
* Amazon, Apple shares drop after earnings (Updates with closing prices, Amazon, Apple results) By Stephen Culp NEW YORK, Oct 27 (Reuters) - The S&P 500 and the Nasdaq posted losses on Thursday, as investors contended with solid economic data and a mixed bag of corporate earnings. Shares of Apple Inc slid more than 5% in after-hours trading after the gadget maker beat revenue and profit estimates, but reported light iPhone sales.
|
(Updates with closing prices, Amazon, Apple results) By Stephen Culp NEW YORK, Oct 27 (Reuters) - The S&P 500 and the Nasdaq posted losses on Thursday, as investors contended with solid economic data and a mixed bag of corporate earnings. But heavy equipment maker Caterpillar Inc reported better-than-expected quarterly profit, sending its shares jumping 7.7% and providing the most muscle to the Dow's advance. The Dow Jones Industrial Average <.DJI> rose 194.17 points, or 0.61%, to 32,033.28, the S&P 500 <.SPX> lost 23.3 points, or 0.61%, to 3,807.3 and the Nasdaq Composite <.IXIC> dropped 178.32 points, or 1.63%, to 10,792.68.
|
* Meta plunges on weak forecast The Fed is going to control the direction of this market over the coming months," Ghriskey added. Shares of Amazon.com dropped more than 19% in post-market trading after the company provided a disappointing sales forecast.
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18695.0
|
2022-10-27 00:00:00 UTC
|
POLL-Taiwan Q3 GDP seen growing 3.2%, struggling against trade headwinds
|
AAPL
|
https://www.nasdaq.com/articles/poll-taiwan-q3-gdp-seen-growing-3.2-struggling-against-trade-headwinds
|
nan
|
nan
|
For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWGDPP%3DECI
Preliminary Q3 GDP seen at +3.2% y/y (prior qtr +3.05%)
Data due Friday, Oct 28, after 4 p.m. (0800 GMT)
TAIPEI, Oct 27 (Reuters) - Taiwan's economy likely expanded slightly faster in the third quarter compared to the prior quarter but at an anaemic pace due to increased global economic headwinds denting demand for technology which is a key export, a Reuters poll showed.
Gross domestic product (GDP) likely grew 3.2% in July-September versus a year earlier, the poll of 20 economists shows, after it expanded 3.05% year-on-year in the second quarter.
Policymakers have said they expect full-year 2022 growth of less than 4%, downgrading it from previous forecasts of more than 4% and slower than the 6.45% logged for 2021. That was the fastest rate in over a decade since it expanded 10.25% in 2010.
Economists' forecasts for preliminary GDP data due on Friday varied widely from growth of 1.8% to as high as 4.4%.
Demand for Taiwanese goods has been hit by COVID-19 lockdowns in China, as well as soaring global inflation and tightening monetary policy.
Woods Chen, head of macroeconomics at Yuanta Securities Investment Consulting in Taipei, said domestic demand was "not bad" due to Taiwan gradually undoing COVID-19 controls, but the problem was with exports.
"Our estimate is quite low, and of course that's because of negative growth in exports," he said, pointing to September's exports which fell an on-year 5.3%, the first contraction in more than two years.
As a key hub in the global technology supply chain for giants such as Apple Inc AAPL.O, Taiwan's economy had been outperforming many of its regional peers.
A global shortage of semiconductors has swelled order books for Taiwanese chipmakers such as Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, TSM.N.
TSMC reported an 80% surge in third-quarter profit, the strongest growth in two years.
The economy in China, Taiwan's largest trading partner, expanded 3.9% in the third quarter year-on-year, faster than expected and quickening from the 0.4% pace in the second quarter.
Taiwan's preliminary figures will be released in a statement with minimal commentary. Revised figures will be released a few weeks later, with more details and forward-looking forecasts.
(Poll compiled by Devayani Sathyan and Carol Lee; Reporting by Jeanny Kao and Ben Blanchard)
((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.
|
As a key hub in the global technology supply chain for giants such as Apple Inc AAPL.O, Taiwan's economy had been outperforming many of its regional peers. Gross domestic product (GDP) likely grew 3.2% in July-September versus a year earlier, the poll of 20 economists shows, after it expanded 3.05% year-on-year in the second quarter. Woods Chen, head of macroeconomics at Yuanta Securities Investment Consulting in Taipei, said domestic demand was "not bad" due to Taiwan gradually undoing COVID-19 controls, but the problem was with exports.
|
As a key hub in the global technology supply chain for giants such as Apple Inc AAPL.O, Taiwan's economy had been outperforming many of its regional peers. For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWGDPP%3DECI Preliminary Q3 GDP seen at +3.2% y/y (prior qtr +3.05%) Data due Friday, Oct 28, after 4 p.m. (0800 GMT) TAIPEI, Oct 27 (Reuters) - Taiwan's economy likely expanded slightly faster in the third quarter compared to the prior quarter but at an anaemic pace due to increased global economic headwinds denting demand for technology which is a key export, a Reuters poll showed. Economists' forecasts for preliminary GDP data due on Friday varied widely from growth of 1.8% to as high as 4.4%.
|
As a key hub in the global technology supply chain for giants such as Apple Inc AAPL.O, Taiwan's economy had been outperforming many of its regional peers. For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWGDPP%3DECI Preliminary Q3 GDP seen at +3.2% y/y (prior qtr +3.05%) Data due Friday, Oct 28, after 4 p.m. (0800 GMT) TAIPEI, Oct 27 (Reuters) - Taiwan's economy likely expanded slightly faster in the third quarter compared to the prior quarter but at an anaemic pace due to increased global economic headwinds denting demand for technology which is a key export, a Reuters poll showed. Gross domestic product (GDP) likely grew 3.2% in July-September versus a year earlier, the poll of 20 economists shows, after it expanded 3.05% year-on-year in the second quarter.
|
As a key hub in the global technology supply chain for giants such as Apple Inc AAPL.O, Taiwan's economy had been outperforming many of its regional peers. For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWGDPP%3DECI Preliminary Q3 GDP seen at +3.2% y/y (prior qtr +3.05%) Data due Friday, Oct 28, after 4 p.m. (0800 GMT) TAIPEI, Oct 27 (Reuters) - Taiwan's economy likely expanded slightly faster in the third quarter compared to the prior quarter but at an anaemic pace due to increased global economic headwinds denting demand for technology which is a key export, a Reuters poll showed. Gross domestic product (GDP) likely grew 3.2% in July-September versus a year earlier, the poll of 20 economists shows, after it expanded 3.05% year-on-year in the second quarter.
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18696.0
|
2022-10-27 00:00:00 UTC
|
MORNING BID-Meta averse, ECB decides and CS slides
|
AAPL
|
https://www.nasdaq.com/articles/morning-bid-meta-averse-ecb-decides-and-cs-slides
|
nan
|
nan
|
A look at the day ahead in U.S. and global markets from Mike Dolan.
Meta added a deep pothole to an already bumpy U.S. earnings season - another obstacle to a market pumped-up by bets of some central bank relief on the horizon as G7 economies slow.
The Facebook parent's shares META.O plunged almost 20% after the bell on Wednesday after the firm forecast a weak holiday quarter and higher costs next year, while investors grew skeptical of its pricey metaverse bets.
With Apple AAPL.O and Amazon AMZO.O reporting later on Thursday, sentiment toward tech giants remains on edge. Beyond the interest rate cheer at the banks and energy crunch windfalls for Big Oil, other real sector readouts weren't much better than the tech world and Boeing BA.N stock fell almost 10% on Wednesday after its profit miss too.
But the big digital damage has cut across this month's powerful market rally, an updraft based largely on the slightly vague hopes that the U.S. Federal Reserve may next week signal yet another jumbo 75 basis point interest rate rise could be the last of such magnitude in this cycle.
The Bank of Canada certainly added fuel to that fire on Wednesday with a smaller-than-expected half-point rate hike and said it was getting closer to the end of its historic tightening campaign as the economy is set to stall next year.
The European Central Bank is the latest of the G7 to decide on policy on Thursday, with markets assuming its lagged tightening cycle will - unlike the Canadians - see it deliver the expected 75 bps and detail some further adjustments and rowback to more extraordinary easing measures.
The euro stalled and euro government bond yields edged higher in advance.
The vigil partly also reversed this week's eye-catching recoil in U.S. Treasury yields .MIWD00000PUS and the U.S. dollar - both of which perked up ahead of the ECB decision and the release of third-quarter U.S. gross domestic product data. U.S. GDP is expected to show a hefty 2.4% growth rebound following first half contractions.
But after two-week, trough-to-peak bounce of almost 10%, global stock indices .MIWD00000PUS struggled to make much headway for the second session on Thursday. Asia bourses were mixed, Europe in the red and U.S. futures up marginally.
The mood wasn't helped much by Switzerland's ailing Credit Suisse CSGN.S. CS shares plunged 15% after it revealed a long-awaited restructuring plan that raises 4 billion Swiss francs in stock sales, slashes thousands of jobs and spins off its investment bank to stanch a string of heavy losses.
Better news emerged in dealmaking, with Twitter shares TWTR.N up 1% after reports banks have started to send $13 billion in cash backing Elon Musk's takeover of Twitter in a sign that the deal is on track to close by the end of the week.
Key developments that should provide more direction to U.S. markets later on Thursday:
* European Central Bank policy decision and press briefing; Bank of Japan begins two day policy meeting
* U.S. Q3 GDP, Sept durable goods orders, Kansas City Fed Oct manufacturing index
* U.S. Treasury auctions 7-year notes
* U.S. Corporate Earnings: Apple, Amazon, Intel, Eastman Chemical, Caterpillar, Honeywell, Mastercard, Merck, McDonalds, Keurig Dr Pepper, Comcast, American Electrical Power, Western Digital, AO Smith, Textron, Teleflex, International Paper, Xcel Energy, Borgwarner, Stanley Black & Decker, Allegion, Northrop Grumman, S&P Global, Principal Financial, Capital One, Verisign, Fiserv, Baxter, Weyerhauser, Mohawk Industries, Southwest Airlines, Altria, Hartford Financial, Monolithic Power, Vertex Pharma, Gilead Sciences, Bio Rad Labs, Republic Services, Arthur J Gallagher, Resmed, Edwards Lifesciences, Camden Property, VICI, LKQ, Wills Towers Watson, Southern, American Tower, CBRE, Linde, Dexcom
Apple fares better than other high-growth tech stocks Apple fares better than other high-growth tech stockshttps://tmsnrt.rs/3FjAOQg
Central banks ramp up fight against inflationhttps://tmsnrt.rs/3W8OJPo
(By Mike Dolan Twitter: @reutersMikeD)
((mike.dolan@thomsonreuters.com; +44 207 542 8488; Reuters Messaging: mike.dolan.reuters.com@thomsonreuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
With Apple AAPL.O and Amazon AMZO.O reporting later on Thursday, sentiment toward tech giants remains on edge. But the big digital damage has cut across this month's powerful market rally, an updraft based largely on the slightly vague hopes that the U.S. Federal Reserve may next week signal yet another jumbo 75 basis point interest rate rise could be the last of such magnitude in this cycle. The European Central Bank is the latest of the G7 to decide on policy on Thursday, with markets assuming its lagged tightening cycle will - unlike the Canadians - see it deliver the expected 75 bps and detail some further adjustments and rowback to more extraordinary easing measures.
|
With Apple AAPL.O and Amazon AMZO.O reporting later on Thursday, sentiment toward tech giants remains on edge. A look at the day ahead in U.S. and global markets from Mike Dolan. The euro stalled and euro government bond yields edged higher in advance.
|
With Apple AAPL.O and Amazon AMZO.O reporting later on Thursday, sentiment toward tech giants remains on edge. Beyond the interest rate cheer at the banks and energy crunch windfalls for Big Oil, other real sector readouts weren't much better than the tech world and Boeing BA.N stock fell almost 10% on Wednesday after its profit miss too. The European Central Bank is the latest of the G7 to decide on policy on Thursday, with markets assuming its lagged tightening cycle will - unlike the Canadians - see it deliver the expected 75 bps and detail some further adjustments and rowback to more extraordinary easing measures.
|
With Apple AAPL.O and Amazon AMZO.O reporting later on Thursday, sentiment toward tech giants remains on edge. Meta added a deep pothole to an already bumpy U.S. earnings season - another obstacle to a market pumped-up by bets of some central bank relief on the horizon as G7 economies slow. The Facebook parent's shares META.O plunged almost 20% after the bell on Wednesday after the firm forecast a weak holiday quarter and higher costs next year, while investors grew skeptical of its pricey metaverse bets.
|
18697.0
|
2022-10-27 00:00:00 UTC
|
Apple (AAPL) Q4 2022 Earnings: What to Expect
|
AAPL
|
https://www.nasdaq.com/articles/apple-aapl-q4-2022-earnings%3A-what-to-expect
|
nan
|
nan
|
W
hat do the iPhone production reports mean for Apple (AAPL) stock in the near term and long term? Can Apple ever return to its glory days of high growth? These are some of the questions investors are asking lately, sparked by reports of production cutbacks the company has made on the iPhone 14 smartphones.
These answers will be more clear when the company reports fourth quarter fiscal 2022 earnings results after the closing bell Thursday. Supply chain disruptions and rising inflation have been among the many events that have pressured the company's revenue and profits. Operating headwinds have also been compounded by uncertainty related to global growth slowdown. These factors resulted in Apple’s iPhone revenues to increase just 3% in Q3, while overall revenue rose just 2%.
Meanwhile, Apple stock has held up better than the S&P 500, down just 19% year to date, compared to 23% decline for the S&P 500, suggesting the company is doing a solid job navigating the various headwinds that have impacted its business. Last week the company reportedly cut production of its iPhone 14 Plus model. According to The Information, Apple was said to be reevaluating demand for the product, of which two of its iPhone 14 Plus suppliers cut their production by 70% and 90% respectively.
It remains to be seen whether if there are any significant revenue impacts for this quarter or for the holiday quarter. But this wouldn’t be the first time Apple has adjusted production on any of its products to pair with demand. Last week, Loup Ventures analyst Gene Munster noted that lead times for iPhones are actually running higher than normal for this stage in the product cycle. As such, Munster concluded that Apple’s business "continues to do well" despite the macro pressures. Investors are hoping for more clarity and conviction on the bullish thesis on Thursday.
In the three months that ended September, Wall Street expect the Cupertino, Calif.-based tech giant to earn $1.27 per share on revenue of $88.9 billion. This compares to the year-ago quarter when earnings came to $1.24 per share on revenue of $83.36 billion. For the full year, earnings are expected to rise 8.7% year over year to $6.10 per share, while full-year revenue of $392.75 billion will rise 7.4% year over year.
There’s an overall sense on the market that consumer hardware spending intentions have begun to deteriorate. During the Q3 conference call with analysts, Apple management said that they had not seen any economic pressures on consumer demand for the iPhone. Investors will nonetheless be watching closely to see whether (or how) inflation might have impacted spending on Apple’s pricey hardware. The company’s guidance for the holiday season will also be gauge on the consumer sentiment.
According to analysts at Morgan Stanley, citing channel checks, devices such as iPads and Macs should perform pretty well during the quarter. That’s important given that Mac revenue was down 10% in Q3, while iPad revenue decreased 2%. Apple’s Services business, which includes, among others, subscriptions, Apple Music, iCloud, payment fees, and revenue from the iPhone App Store, now accounts for some 30% of total revenue, and produces higher profit margins. That business is expected to offset weakness in hardware.
In the third quarter, Services revenue rose 12% in Q3 to $19.6 billion, thanks to a surge in subscribers which reached 860 million, up from 825 million in Q2. The results helped the company earn an adjusted EPS of $1.20 for the Q3, beating the $1.16 per share analysts were looking for. Investors on Thursday will look for Apple to improve on each of these metrics. The trajectory of services growth, in particular, and the gross margin guidance will be key drivers for how the stock responds immediately after the report.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
hat do the iPhone production reports mean for Apple (AAPL) stock in the near term and long term? Meanwhile, Apple stock has held up better than the S&P 500, down just 19% year to date, compared to 23% decline for the S&P 500, suggesting the company is doing a solid job navigating the various headwinds that have impacted its business. Last week, Loup Ventures analyst Gene Munster noted that lead times for iPhones are actually running higher than normal for this stage in the product cycle.
|
hat do the iPhone production reports mean for Apple (AAPL) stock in the near term and long term? These answers will be more clear when the company reports fourth quarter fiscal 2022 earnings results after the closing bell Thursday. Last week the company reportedly cut production of its iPhone 14 Plus model.
|
hat do the iPhone production reports mean for Apple (AAPL) stock in the near term and long term? These factors resulted in Apple’s iPhone revenues to increase just 3% in Q3, while overall revenue rose just 2%. For the full year, earnings are expected to rise 8.7% year over year to $6.10 per share, while full-year revenue of $392.75 billion will rise 7.4% year over year.
|
hat do the iPhone production reports mean for Apple (AAPL) stock in the near term and long term? It remains to be seen whether if there are any significant revenue impacts for this quarter or for the holiday quarter. But this wouldn’t be the first time Apple has adjusted production on any of its products to pair with demand.
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18698.0
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2022-10-27 00:00:00 UTC
|
IYW, SCHQ: Big ETF Inflows
|
AAPL
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https://www.nasdaq.com/articles/iyw-schq%3A-big-etf-inflows
|
nan
|
nan
|
Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares U.S. Technology ETF, which added 21,250,000 units, or a 25.9% increase week over week. Among the largest underlying components of IYW, in morning trading today Apple is down about 1.1%, and Microsoft is lower by about 0.6%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the SCHQ ETF, which added 950,000 units, for a 38.8% increase in outstanding units.
VIDEO: IYW, SCHQ: Big ETF Inflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Among the largest underlying components of IYW, in morning trading today Apple is down about 1.1%, and Microsoft is lower by about 0.6%. And on a percentage change basis, the ETF with the biggest increase in inflows was the SCHQ ETF, which added 950,000 units, for a 38.8% increase in outstanding units. VIDEO: IYW, SCHQ: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares U.S. Technology ETF, which added 21,250,000 units, or a 25.9% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the SCHQ ETF, which added 950,000 units, for a 38.8% increase in outstanding units. VIDEO: IYW, SCHQ: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares U.S. Technology ETF, which added 21,250,000 units, or a 25.9% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the SCHQ ETF, which added 950,000 units, for a 38.8% increase in outstanding units. VIDEO: IYW, SCHQ: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares U.S. Technology ETF, which added 21,250,000 units, or a 25.9% increase week over week. Among the largest underlying components of IYW, in morning trading today Apple is down about 1.1%, and Microsoft is lower by about 0.6%. And on a percentage change basis, the ETF with the biggest increase in inflows was the SCHQ ETF, which added 950,000 units, for a 38.8% increase in outstanding units.
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18699.0
|
2022-10-27 00:00:00 UTC
|
Dow Movers: AAPL, CAT
|
AAPL
|
https://www.nasdaq.com/articles/dow-movers%3A-aapl-cat
|
nan
|
nan
|
In early trading on Thursday, shares of Caterpillar topped the list of the day's best performing Dow Jones Industrial Average components, trading up 7.1%. Year to date, Caterpillar registers a 2.1% gain.
And the worst performing Dow component thus far on the day is Apple, trading down 1.5%. Apple is lower by about 17.2% looking at the year to date performance.
Two other components making moves today are Microsoft, trading down 0.9%, and Boeing, trading up 4.8% on the day.
VIDEO: Dow Movers: AAPL, CAT
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
VIDEO: Dow Movers: AAPL, CAT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Thursday, shares of Caterpillar topped the list of the day's best performing Dow Jones Industrial Average components, trading up 7.1%. And the worst performing Dow component thus far on the day is Apple, trading down 1.5%.
|
VIDEO: Dow Movers: AAPL, CAT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Thursday, shares of Caterpillar topped the list of the day's best performing Dow Jones Industrial Average components, trading up 7.1%. Year to date, Caterpillar registers a 2.1% gain.
|
VIDEO: Dow Movers: AAPL, CAT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Thursday, shares of Caterpillar topped the list of the day's best performing Dow Jones Industrial Average components, trading up 7.1%. And the worst performing Dow component thus far on the day is Apple, trading down 1.5%.
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VIDEO: Dow Movers: AAPL, CAT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Dow component thus far on the day is Apple, trading down 1.5%. Apple is lower by about 17.2% looking at the year to date performance.
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