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18700.0
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2022-10-27 00:00:00 UTC
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Google Play in EU antitrust sights as Android fine appeal pending
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AAPL
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https://www.nasdaq.com/articles/google-play-in-eu-antitrust-sights-as-android-fine-appeal-pending
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nan
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By Foo Yun Chee
BRUSSELS, Oct 27 (Reuters) - European anti-trust regulators are investigating Alphabet GOOGL.O unit Google's Google Play Store, the company said in a regulatory filing, a move that could expose the U.S. tech giant to another billion-euro fine.
Over the last decade, Google has incurred 8.25 billion euros ($8.24 billion) in EU antitrust fines following three investigations into its business practices.
"In May 2022, the EC (European Commission) and the CMA (Britain's Competition and Markets Authority) each opened a formal investigation into Google Play's business practices," Google said in a quarterly earnings filing dated Oct. 25.
The European Union antitrust watchdog did not immediately respond to a request for comment.
EU antitrust regulators are investigating whether Google's threat to remove apps from its Play Store if app developers use other payment options instead of its own billing system has hurt the developers, two people familiar with the matter told Reuters in August.
Fees charged by Google and Apple AAPL.O at their mobile app stores have drawn criticism from developers who say they are excessive.
Separately, Google said on Thursday it will appeal its record 4.1-billion-euro ($4.10 billion) EU antitrust fine at Europe's top court after a lower tribunal threw out its challenge last month.
The Luxembourg-based General Court broadly backed the Commission's 2018 decision but pruned the fine to 4.125 billion euros from 4.34 billion euros.
Judges agreed with the European Union competition watchdog that Google had imposed unlawful restrictions on manufacturers of Android mobile devices and mobile network operators to consolidate the dominant position of its search engine.
"We are preparing our appeal. The deadline for the court is Dec. 1," a Google spokesperson said.
The company can only appeal on matters of law to the Luxembourg-based Court of Justice of the European Union.
The bloc is boosting its antitrust power with new landmark tech rules curbing online gatekeepers, companies which control access to their platforms and data there, with which the companies will have to comply in the first quarter of 2024.
($1 = 0.9990 euros)
(Reporting by Foo Yun Chee Editing by Tomasz Janowski and Barbara Lewis)
((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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Fees charged by Google and Apple AAPL.O at their mobile app stores have drawn criticism from developers who say they are excessive. By Foo Yun Chee BRUSSELS, Oct 27 (Reuters) - European anti-trust regulators are investigating Alphabet GOOGL.O unit Google's Google Play Store, the company said in a regulatory filing, a move that could expose the U.S. tech giant to another billion-euro fine. Separately, Google said on Thursday it will appeal its record 4.1-billion-euro ($4.10 billion) EU antitrust fine at Europe's top court after a lower tribunal threw out its challenge last month.
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Fees charged by Google and Apple AAPL.O at their mobile app stores have drawn criticism from developers who say they are excessive. By Foo Yun Chee BRUSSELS, Oct 27 (Reuters) - European anti-trust regulators are investigating Alphabet GOOGL.O unit Google's Google Play Store, the company said in a regulatory filing, a move that could expose the U.S. tech giant to another billion-euro fine. Over the last decade, Google has incurred 8.25 billion euros ($8.24 billion) in EU antitrust fines following three investigations into its business practices.
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Fees charged by Google and Apple AAPL.O at their mobile app stores have drawn criticism from developers who say they are excessive. By Foo Yun Chee BRUSSELS, Oct 27 (Reuters) - European anti-trust regulators are investigating Alphabet GOOGL.O unit Google's Google Play Store, the company said in a regulatory filing, a move that could expose the U.S. tech giant to another billion-euro fine. "In May 2022, the EC (European Commission) and the CMA (Britain's Competition and Markets Authority) each opened a formal investigation into Google Play's business practices," Google said in a quarterly earnings filing dated Oct. 25.
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Fees charged by Google and Apple AAPL.O at their mobile app stores have drawn criticism from developers who say they are excessive. By Foo Yun Chee BRUSSELS, Oct 27 (Reuters) - European anti-trust regulators are investigating Alphabet GOOGL.O unit Google's Google Play Store, the company said in a regulatory filing, a move that could expose the U.S. tech giant to another billion-euro fine. Over the last decade, Google has incurred 8.25 billion euros ($8.24 billion) in EU antitrust fines following three investigations into its business practices.
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18701.0
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2022-10-27 00:00:00 UTC
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US STOCKS-Dow, S&P 500 eye higher open after GDP data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-dow-sp-500-eye-higher-open-after-gdp-data
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nan
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nan
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By Amruta Khandekar and Shreyashi Sanyal
Oct 27 (Reuters) - The Dow and the S&P 500 were set to open higher on Thursday after data showed U.S. economic growth rebounded in the third quarter, keeping at bay worries about an imminent recession fueled by aggressive monetary policy tightening.
The U.S. Commerce Department said gross domestic product increased at a 2.6% annualized rate last quarter, above expectations of a 2.4% rise, in its advance GDP estimate.
The report showed an end to two straight quarterly decreases in output, which had raised concerns that the U.S. economy was in recession. The core PCE price index, a key inflation metric, rose in line with expectations and showed a decline from the second quarter.
"What we're seeing is an economy that has snapped back from two quarters of negative GDP, and it's probably opened the debate as to whether or not the economy was in recession in the first two quarters of the year," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
"It raises the possibility of one more rate hike in December and then a pause."
Meanwhile, Facebook-parent Meta Platforms Inc META.O fell 22.7% in premarket trading, as it posted a drop in third-quarter profit and forecast a weak holiday quarter.
Analysts have set the bar low for the third-quarter reporting season, with aggregate S&P 500 profit growth now seen at 2.3% year-on-year, compared with 4.5% at the start of the month, according to Refinitiv data.
Data scheduled for Friday is expected show the Fed's preferred measure of inflation continued to run at roughly three times the U.S. central bank's annual target last month.
Futures 1YMcv1 tracking the blue-chip Dow rose amid a handful of positive earnings reports.
Caterpillar Inc CAT.N jumped 4.9% after the heavy-equipment maker posted a rise in third-quarter profit, while McDonald's Corp MCD.N added 2.5% on beating quarterly comparable sales estimates.
Merck & Co Inc MRK.N rose 1.6%, while Honeywell International Inc HON.O climbed 4.4% as both companies reported better-than-expected third-quarter earnings.
Shares of Amazon.com Inc AMZN.O were down 1.7%, while Apple Inc AAPL.O fell 0.5%. Both the companies are due to report results later on Thursday.
At 8:59 a.m. ET, Dow e-minis 1YMcv1 were up 334 points, or 1.05%, S&P 500 e-minis EScv1 were up 14.25 points, or 0.37%, and Nasdaq 100 e-minis NQcv1 were down 11.75 points, or 0.1%.
(Reporting by Amruta Khandekar and Shreyashi Sanyal in Bengaluru; Additional reporting by Stephen Culp; Editing by 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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Shares of Amazon.com Inc AMZN.O were down 1.7%, while Apple Inc AAPL.O fell 0.5%. By Amruta Khandekar and Shreyashi Sanyal Oct 27 (Reuters) - The Dow and the S&P 500 were set to open higher on Thursday after data showed U.S. economic growth rebounded in the third quarter, keeping at bay worries about an imminent recession fueled by aggressive monetary policy tightening. Analysts have set the bar low for the third-quarter reporting season, with aggregate S&P 500 profit growth now seen at 2.3% year-on-year, compared with 4.5% at the start of the month, according to Refinitiv data.
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Shares of Amazon.com Inc AMZN.O were down 1.7%, while Apple Inc AAPL.O fell 0.5%. By Amruta Khandekar and Shreyashi Sanyal Oct 27 (Reuters) - The Dow and the S&P 500 were set to open higher on Thursday after data showed U.S. economic growth rebounded in the third quarter, keeping at bay worries about an imminent recession fueled by aggressive monetary policy tightening. The U.S. Commerce Department said gross domestic product increased at a 2.6% annualized rate last quarter, above expectations of a 2.4% rise, in its advance GDP estimate.
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Shares of Amazon.com Inc AMZN.O were down 1.7%, while Apple Inc AAPL.O fell 0.5%. By Amruta Khandekar and Shreyashi Sanyal Oct 27 (Reuters) - The Dow and the S&P 500 were set to open higher on Thursday after data showed U.S. economic growth rebounded in the third quarter, keeping at bay worries about an imminent recession fueled by aggressive monetary policy tightening. "What we're seeing is an economy that has snapped back from two quarters of negative GDP, and it's probably opened the debate as to whether or not the economy was in recession in the first two quarters of the year," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
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Shares of Amazon.com Inc AMZN.O were down 1.7%, while Apple Inc AAPL.O fell 0.5%. The report showed an end to two straight quarterly decreases in output, which had raised concerns that the U.S. economy was in recession. Caterpillar Inc CAT.N jumped 4.9% after the heavy-equipment maker posted a rise in third-quarter profit, while McDonald's Corp MCD.N added 2.5% on beating quarterly comparable sales estimates.
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18702.0
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2022-10-27 00:00:00 UTC
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Jamie Dimon Says the U.S. Economy May Be Headed for a Recession -- Here Are 2 Top Index Funds to Buy Now and Hold Forever
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AAPL
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https://www.nasdaq.com/articles/jamie-dimon-says-the-u.s.-economy-may-be-headed-for-a-recession-here-are-2-top-index-funds
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JPMorgan Chase has flourished since Jamie Dimon became CEO in 2006. The company survived the financial crisis of 2008 and has gone on to become the largest bank in the world by market capitalization. Not surprisingly, Dimon has earned a reputation as a fount of financial wisdom, which makes his recent warning all the more concerning.
Earlier this month, Dimon told CNBC that serious economic headwinds -- high inflation, rising interest rates, and Russia's war in Ukraine -- would probably "put the U.S. in some kind of recession six to nine months from now." He also noted the global economy would likely suffer the same fate.
Those concerns have already hit the stock market hard. The S&P 500 delivered its worst first half since 1970 this year, and the broad-based index is currently about 20% off its high.
Dimon's comments may have investors even more rattled than before, but here are two smart index funds to buy and hold through any economic downturn.
Vanguard S&P 500 ETF: A good option for risk-tolerant investors
The Vanguard S&P 500 ETF (NYSEMKT: VOO) tracks the performance of the S&P 500, which itself comprises about 500 of the largest U.S. companies. The Vanguard ETF represents a blend of value stocks and growth stocks that span all 11 market sectors, though certain sectors are weighted more heavily, meaning they have a greater impact on the ETF's performance.
Here are the top five sectors by weight:
Information Technology: 26.4%
Health Care: 15.1%
Consumer Discretionary: 11.7%
Financials: 10.9%
Consumer Staples: 8.1%
Here are the top five holdings by weight:
Apple: 6.9%
Microsoft: 5.7%
Alphabet: 3.6%
Amazon: 3.3%
Tesla: 2.3%
Over the past decade, the Vanguard S&P 500 ETF generated a total return of 226%, or 12.5% per year. At that pace, $400 invested on a monthly basis would be worth $92,000 in a decade, and it would be worth almost $1.4 million in three decades.
The Vanguard S&P 500 ETF is a particularly attractive investment option right now for a few reasons: First, it allows investors to build a diversified portfolio of large-cap stocks without doing much work. Second, the benchmark (i.e. the S&P 500) has weathered many bear markets and recessions in the past, and it has always recovered. Third, the rolling 20-year return of the S&P 500 has been positive for the last 103 periods, according to Crestmont Research. That means investors can sleep soundly knowing a positive return is all but guaranteed with a long enough holding period.
Here's the big picture: The S&P 500 could fall much farther in the coming months, especially if the U.S. economy does indeed wind up in a recession. But historical data suggest bear markets are an excellent time to buy stocks. Additionally, the Vanguard S&P 500 ETF bears an expense ratio of just 0.03%, meaning the annual fee is just $3 on a $10,000 portfolio. That makes the ETF a good option for risk-tolerant investors.
Vanguard S&P 500 Value ETF: A good option for risk-averse investors
The Vanguard S&P 500 Value ETF (NYSEMKT: VOOV) tracks the performance of value stocks in the S&P 500, as measured by three factors: price-to-book ratio, price-to-sales ratio, and price-to-earnings ratio. This Vanguard ETF includes 449 stocks that span all 11 market sectors.
Here are the top five sectors by weight:
Health Care: 17.8%
Financials: 14.9%
Industrials: 12%
Consumer Staples: 11.6%
Information Technology: 10.9%
Here are the top five holdings by weight:
Berkshire Hathaway: 3.1%
Johnson & Johnson: 2.8%
ExxonMobil: 2.3%
Procter & Gamble: 1.9%
UnitedHealth Group: 1.8%
Due to its composition, the Vanguard S&P 500 Value ETF tends to be slightly less volatile than the broad market, as evidenced by its three-year beta of 0.89. In other words, the Vanguard ETF tends to fall less dramatically (and rise less dramatically) than the S&P 500. For example, the Vanguard ETF is currently 11% off its high, but the S&P 500 has dropped almost 20%.
Of course, lower risk also means lower reward. The Vanguard S&P 500 Value ETF generated a total return of 168% over the last decade, underperforming the S&P 500 by a wide margin.
Here's the big picture: In the event of a recession, the Vanguard S&P 500 Value ETF may be more stable than the broader S&P 500, simply because value stocks tend to be less volatile than growth stocks. That makes the Vanguard S&P 500 Value ETF a good option for risk-averse investors that still want exposure to the U.S. stock market. Additionally, the Vanguard ETF bears a relatively low expense ratio of 0.1%, meaning the fee is just $10 per year on a $10,000 portfolio.
10 stocks we like better than Vanguard S&P 500 ETF
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Trevor Jennewine has positions in Amazon, Tesla, and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), JPMorgan Chase, Microsoft, Tesla, and Vanguard S&P 500 ETF. The Motley Fool recommends Johnson & Johnson and UnitedHealth Group 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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The Vanguard S&P 500 ETF is a particularly attractive investment option right now for a few reasons: First, it allows investors to build a diversified portfolio of large-cap stocks without doing much work. Here are the top five sectors by weight: Health Care: 17.8% Financials: 14.9% Industrials: 12% Consumer Staples: 11.6% Information Technology: 10.9% Here are the top five holdings by weight: Berkshire Hathaway: 3.1% Johnson & Johnson: 2.8% ExxonMobil: 2.3% Procter & Gamble: 1.9% UnitedHealth Group: 1.8% Due to its composition, the Vanguard S&P 500 Value ETF tends to be slightly less volatile than the broad market, as evidenced by its three-year beta of 0.89. 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 are the top five sectors by weight: Information Technology: 26.4% Health Care: 15.1% Consumer Discretionary: 11.7% Financials: 10.9% Consumer Staples: 8.1% Here are the top five holdings by weight: Apple: 6.9% Microsoft: 5.7% Alphabet: 3.6% Amazon: 3.3% Tesla: 2.3% Over the past decade, the Vanguard S&P 500 ETF generated a total return of 226%, or 12.5% per year. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), JPMorgan Chase, Microsoft, Tesla, and Vanguard S&P 500 ETF. The Motley Fool recommends Johnson & Johnson and UnitedHealth Group and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple.
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Vanguard S&P 500 ETF: A good option for risk-tolerant investors The Vanguard S&P 500 ETF (NYSEMKT: VOO) tracks the performance of the S&P 500, which itself comprises about 500 of the largest U.S. companies. The Vanguard ETF represents a blend of value stocks and growth stocks that span all 11 market sectors, though certain sectors are weighted more heavily, meaning they have a greater impact on the ETF's performance. Vanguard S&P 500 Value ETF: A good option for risk-averse investors The Vanguard S&P 500 Value ETF (NYSEMKT: VOOV) tracks the performance of value stocks in the S&P 500, as measured by three factors: price-to-book ratio, price-to-sales ratio, and price-to-earnings ratio.
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Here's the big picture: The S&P 500 could fall much farther in the coming months, especially if the U.S. economy does indeed wind up in a recession. That's right -- they think these 10 stocks are even better buys. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), JPMorgan Chase, Microsoft, Tesla, and Vanguard S&P 500 ETF.
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18703.0
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2022-10-27 00:00:00 UTC
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US STOCKS-Dow jumps on earnings boost; Meta weighs on Nasdaq
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AAPL
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https://www.nasdaq.com/articles/us-stocks-dow-jumps-on-earnings-boost-meta-weighs-on-nasdaq
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nan
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nan
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By Amruta Khandekar and Shreyashi Sanyal
Oct 27 (Reuters) - The blue-chip Dow rose on Thursday following a slew of upbeat earnings reports and data that showed U.S. economic growth rebounded in the third quarter, while the Nasdaq was pressured by a drop in Meta shares.
Caterpillar Inc CAT.N jumped 9.2%, boosting the Dow Jones Industrial Average .DJI, as the heavy-equipment maker posted a rise in third-quarter profit, while McDonald's Corp MCD.N added 3.6% on beating quarterly comparable sales estimates.
Merck & Co Inc MRK.N rose 2.4% and Honeywell International Inc HON.O climbed 4.2% as both the companies reported better-than-expected third-quarter earnings.
Meanwhile, Facebook-parent Meta Platforms Inc META.O slumped 21.1%, putting it on course to lose nearly $82 billion in market value, as it posted a drop in third-quarter profit and forecast a weak holiday quarter.
The S&P 500 communication services sector .SPLRCL tumbled 2.1% and was the sole decliner among the 11 major benchmark sector indexes.
Shares of Amazon.com Inc AMZN.O were down 1.6%, while Apple Inc AAPL.O also fell 1.0%. Both the companies are due to report results later on Thursday.
Analysts have set the bar low for the third-quarter reporting season, with aggregate S&P 500 profit growth now seen at 2.3% year-on-year, compared with 4.5% at the start of the month, according to Refinitiv data.
All the three main indexes had opened higher after data showed U.S. gross domestic product increased at a 2.6% annualized rate last quarter, ending two straight quarterly decreases in output that had raised concerns that the economy was in recession.
The U.S. Federal Reserve is set to increase interest rates by 75 basis points in an upcoming meeting next week, with traders betting on a 50 basis point raise in December. FEDWATCH
"For the first time in months, the stock market has a real two-way risk," said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, NC.
"Since February the stock market has headed mostly down as investors priced in a new world of much higher interest rates, but we are now in a situation where stocks have priced in a mild recession."
Data scheduled for Friday is expected show the Fed's preferred measure of inflation continued to run at roughly three times the U.S. central bank's annual target last month.
At 10:24 a.m. ET, the Dow Jones Industrial Average .DJI was up 487.07 points, or 1.53%, at 32,326.18, the S&P 500 .SPX was up 21.18 points, or 0.55%, at 3,851.78, and the Nasdaq Composite .IXIC was down 8.49 points, or 0.08%, at 10,962.50.
Advancing issues outnumbered decliners for a 2.64-to-1 ratio on the NYSE and a 1.81-to-1 ratio on the Nasdaq.
The S&P index recorded 21 new 52-week highs and six new lows, while the Nasdaq recorded 48 new highs and 42 new lows.
(Reporting by Amruta Khandekar and Shreyashi Sanyal in Bengaluru; Editing by 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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Shares of Amazon.com Inc AMZN.O were down 1.6%, while Apple Inc AAPL.O also fell 1.0%. By Amruta Khandekar and Shreyashi Sanyal Oct 27 (Reuters) - The blue-chip Dow rose on Thursday following a slew of upbeat earnings reports and data that showed U.S. economic growth rebounded in the third quarter, while the Nasdaq was pressured by a drop in Meta shares. Caterpillar Inc CAT.N jumped 9.2%, boosting the Dow Jones Industrial Average .DJI, as the heavy-equipment maker posted a rise in third-quarter profit, while McDonald's Corp MCD.N added 3.6% on beating quarterly comparable sales estimates.
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Shares of Amazon.com Inc AMZN.O were down 1.6%, while Apple Inc AAPL.O also fell 1.0%. Caterpillar Inc CAT.N jumped 9.2%, boosting the Dow Jones Industrial Average .DJI, as the heavy-equipment maker posted a rise in third-quarter profit, while McDonald's Corp MCD.N added 3.6% on beating quarterly comparable sales estimates. All the three main indexes had opened higher after data showed U.S. gross domestic product increased at a 2.6% annualized rate last quarter, ending two straight quarterly decreases in output that had raised concerns that the economy was in recession.
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Shares of Amazon.com Inc AMZN.O were down 1.6%, while Apple Inc AAPL.O also fell 1.0%. By Amruta Khandekar and Shreyashi Sanyal Oct 27 (Reuters) - The blue-chip Dow rose on Thursday following a slew of upbeat earnings reports and data that showed U.S. economic growth rebounded in the third quarter, while the Nasdaq was pressured by a drop in Meta shares. Analysts have set the bar low for the third-quarter reporting season, with aggregate S&P 500 profit growth now seen at 2.3% year-on-year, compared with 4.5% at the start of the month, according to Refinitiv data.
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Shares of Amazon.com Inc AMZN.O were down 1.6%, while Apple Inc AAPL.O also fell 1.0%. By Amruta Khandekar and Shreyashi Sanyal Oct 27 (Reuters) - The blue-chip Dow rose on Thursday following a slew of upbeat earnings reports and data that showed U.S. economic growth rebounded in the third quarter, while the Nasdaq was pressured by a drop in Meta shares. Caterpillar Inc CAT.N jumped 9.2%, boosting the Dow Jones Industrial Average .DJI, as the heavy-equipment maker posted a rise in third-quarter profit, while McDonald's Corp MCD.N added 3.6% on beating quarterly comparable sales estimates.
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18704.0
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2022-10-27 00:00:00 UTC
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US STOCKS-Nasdaq futures fall as Meta plummets on dismal outlook
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-futures-fall-as-meta-plummets-on-dismal-outlook
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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
Meta falls on weak holiday-quarter forecast
Q3 GDP advance data expected at 8:30 a.m. ET
Caterpillar, McDonald's gain after results
ECB decision in focus
Futures: Nasdaq down 0.52%, Dow up 0.65%, S&P flat
Updates prices throughout, adds comment
By Amruta Khandekar
Oct 27 (Reuters) - Nasdaq 100 futures dropped on Thursday as a bleak forecast by Meta fanned worries of a slowdown in earnings, while hopes that the U.S. Federal Reserve will slow the pace of rate hikes limited declines.
Facebook-parent Meta Platforms Inc META.O fell 21.7% in premarket trading, set to wipe off about $75 billion from its market value, as it posted a drop in third-quarter profit and forecast a weak holiday quarter.
Gloomy earnings and warnings by growth companies, including Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O, spurred concerns about rising interest rates slowing down economic growth and led the S&P 500 .SPX and the Nasdaq .IXIC to snap a three-day gaining streak on Wednesday.
"So far Meta is just the latest big tech company to disappoint. After a steady start to the U.S. third-quarter earnings season, things are starting to look a lot less rosy," Laith Khalaf, head of investment analysis at AJ Bell, said.
Analysts have set the bar low for the third-quarter reporting season, with aggregate S&P 500 profit growth now seen at 2.3% year-on-year, compared with 4.5% at the start of the month, according to Refinitiv data.
The weak corporate reports, along with a slew of data suggesting a softening economy have also driven up hopes that the Fed could take a less aggressive approach at its December policy meeting.
Bank of Canada announced a smaller-than-expected rate hike on Wednesday, with investor focus on a decision from the European Central Bank later on Thursday.
Futures 1YMcv1 tracking the blue-chip Dow rose amid a handful of positive earnings reports.
Caterpillar Inc CAT.N jumped 4.2% after the heavy-equipment maker posted a rise in third-quarter profit, while McDonald's Corp MCD.N added 2.9% on beating quarterly comparable sales estimates.
Merck & Co Inc MRK.N rose 2.5%, while Honeywell International Inc HON.O climbed 5.2% as both companies reported better-than-expected third-quarter earnings.
Results from Amazon.com Inc AMZN.O and Apple Inc AAPL.O are expected later in the day, as well as advance U.S. gross domestic product data for the third quarter which will offer further clues on the outlook for monetary policy tightening.
The U.S. Commerce Department's report due at 8:30 a.m. ET is expected to show GDP growth likely rebounded at a 2.4% annualized rate last quarter after two straight quarterly declines.
At 7:15 a.m. ET, Dow e-minis 1YMcv1 were up 208 points, or 0.65%, S&P 500 e-minis EScv1 were up 0.75 points, or 0.02%, and Nasdaq 100 e-minis NQcv1 were down 59.25 points, or 0.52%.
Twitter Inc TWTR.N rose 1.1% a day after billionaire Elon Musk said he paid a visit to the social media company's headquarters ahead of a court-ordered deadline to close his $44 billion takeover deal.
(Reporting by Amruta Khandekar and Shreyashi Sanyal in Bengaluru; Editing by 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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Results from Amazon.com Inc AMZN.O and Apple Inc AAPL.O are expected later in the day, as well as advance U.S. gross domestic product data for the third quarter which will offer further clues on the outlook for monetary policy tightening. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Meta falls on weak holiday-quarter forecast Q3 GDP advance data expected at 8:30 a.m. Facebook-parent Meta Platforms Inc META.O fell 21.7% in premarket trading, set to wipe off about $75 billion from its market value, as it posted a drop in third-quarter profit and forecast a weak holiday quarter.
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Results from Amazon.com Inc AMZN.O and Apple Inc AAPL.O are expected later in the day, as well as advance U.S. gross domestic product data for the third quarter which will offer further clues on the outlook for monetary policy tightening. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Meta falls on weak holiday-quarter forecast Q3 GDP advance data expected at 8:30 a.m. ET Caterpillar, McDonald's gain after results ECB decision in focus Futures: Nasdaq down 0.52%, Dow up 0.65%, S&P flat Updates prices throughout, adds comment By Amruta Khandekar Oct 27 (Reuters) - Nasdaq 100 futures dropped on Thursday as a bleak forecast by Meta fanned worries of a slowdown in earnings, while hopes that the U.S. Federal Reserve will slow the pace of rate hikes limited declines.
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Results from Amazon.com Inc AMZN.O and Apple Inc AAPL.O are expected later in the day, as well as advance U.S. gross domestic product data for the third quarter which will offer further clues on the outlook for monetary policy tightening. ET Caterpillar, McDonald's gain after results ECB decision in focus Futures: Nasdaq down 0.52%, Dow up 0.65%, S&P flat Updates prices throughout, adds comment By Amruta Khandekar Oct 27 (Reuters) - Nasdaq 100 futures dropped on Thursday as a bleak forecast by Meta fanned worries of a slowdown in earnings, while hopes that the U.S. Federal Reserve will slow the pace of rate hikes limited declines. Gloomy earnings and warnings by growth companies, including Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O, spurred concerns about rising interest rates slowing down economic growth and led the S&P 500 .SPX and the Nasdaq .IXIC to snap a three-day gaining streak on Wednesday.
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Results from Amazon.com Inc AMZN.O and Apple Inc AAPL.O are expected later in the day, as well as advance U.S. gross domestic product data for the third quarter which will offer further clues on the outlook for monetary policy tightening. ET Caterpillar, McDonald's gain after results ECB decision in focus Futures: Nasdaq down 0.52%, Dow up 0.65%, S&P flat Updates prices throughout, adds comment By Amruta Khandekar Oct 27 (Reuters) - Nasdaq 100 futures dropped on Thursday as a bleak forecast by Meta fanned worries of a slowdown in earnings, while hopes that the U.S. Federal Reserve will slow the pace of rate hikes limited declines. Analysts have set the bar low for the third-quarter reporting season, with aggregate S&P 500 profit growth now seen at 2.3% year-on-year, compared with 4.5% at the start of the month, according to Refinitiv data.
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18705.0
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2022-10-27 00:00:00 UTC
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US STOCKS-Futures climb on easing rate hike bets, Meta plunges on dismal outlook
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-climb-on-easing-rate-hike-bets-meta-plunges-on-dismal-outlook
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Futures up: Dow 0.50%, S&P 0.32%, Nasdaq 0.02%
Oct 27 (Reuters) - U.S. stock index futures edged up on Thursday on growing hopes that the Federal Reserve may slow the pace of its interest rate hikes to tame inflation, while shares of Meta Platforms plunged following a bleak forecast.
Facebook-parent Meta META.O posted a drop in third-quarter profit and forecast a weak holiday quarter with significantly higher costs next year, sending its shares down 19.7% in premarket trade and wiping about $67 billion off its market value.
The downbeat outlook comes on the heels of weak earnings from Google-parent Alphabet and Microsoft, which added to recent economic data hinting at a softening economy and raised hopes that the Federal Reserve could be less aggressive at its policy meeting in December.
The Bank of Canada announced a smaller-than-expected rate hike on Wednesday, with investor focus on a decision from the European Central Bank later in the day.
Results from Amazon.com Inc AMZN.O and Apple Inc AAPL.O are expected later in the day, as well as U.S. gross domestic product data for the third quarter which will offer further clues on the outlook for monetary policy tightening.
The Commerce Department's report due at 8:30 a.m. ET is expected to show GDP growth likely rebounded at a 2.4% annualized rate last quarter after two straight quarterly declines.
At 4:56 a.m. ET, Dow e-minis 1YMcv1 were up 160 points, or 0.5%, S&P 500 e-minis EScv1 were up 12.25 points, or 0.32%, and Nasdaq 100 e-minis NQcv1 were up 1.75 points, or 0.02%.
Twitter Inc TWTR.N rose 1.1% premarket, a day after billionaire Elon Musk said he paid a visit to the social media company's headquarters ahead of a court-ordered deadline to close his $44 billion takeover deal.
Ford Motor Co F.N fell 1.3% after the automaker reported a net loss in the third quarter.
(Reporting by Amruta Khandekar; Editing by 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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Results from Amazon.com Inc AMZN.O and Apple Inc AAPL.O are expected later in the day, as well as U.S. gross domestic product data for the third quarter which will offer further clues on the outlook for monetary policy tightening. Facebook-parent Meta META.O posted a drop in third-quarter profit and forecast a weak holiday quarter with significantly higher costs next year, sending its shares down 19.7% in premarket trade and wiping about $67 billion off its market value. The downbeat outlook comes on the heels of weak earnings from Google-parent Alphabet and Microsoft, which added to recent economic data hinting at a softening economy and raised hopes that the Federal Reserve could be less aggressive at its policy meeting in December.
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Results from Amazon.com Inc AMZN.O and Apple Inc AAPL.O are expected later in the day, as well as U.S. gross domestic product data for the third quarter which will offer further clues on the outlook for monetary policy tightening. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Futures up: Dow 0.50%, S&P 0.32%, Nasdaq 0.02% Oct 27 (Reuters) - U.S. stock index futures edged up on Thursday on growing hopes that the Federal Reserve may slow the pace of its interest rate hikes to tame inflation, while shares of Meta Platforms plunged following a bleak forecast. The Bank of Canada announced a smaller-than-expected rate hike on Wednesday, with investor focus on a decision from the European Central Bank later in the day.
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Results from Amazon.com Inc AMZN.O and Apple Inc AAPL.O are expected later in the day, as well as U.S. gross domestic product data for the third quarter which will offer further clues on the outlook for monetary policy tightening. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Futures up: Dow 0.50%, S&P 0.32%, Nasdaq 0.02% Oct 27 (Reuters) - U.S. stock index futures edged up on Thursday on growing hopes that the Federal Reserve may slow the pace of its interest rate hikes to tame inflation, while shares of Meta Platforms plunged following a bleak forecast. Facebook-parent Meta META.O posted a drop in third-quarter profit and forecast a weak holiday quarter with significantly higher costs next year, sending its shares down 19.7% in premarket trade and wiping about $67 billion off its market value.
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Results from Amazon.com Inc AMZN.O and Apple Inc AAPL.O are expected later in the day, as well as U.S. gross domestic product data for the third quarter which will offer further clues on the outlook for monetary policy tightening. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Futures up: Dow 0.50%, S&P 0.32%, Nasdaq 0.02% Oct 27 (Reuters) - U.S. stock index futures edged up on Thursday on growing hopes that the Federal Reserve may slow the pace of its interest rate hikes to tame inflation, while shares of Meta Platforms plunged following a bleak forecast. Facebook-parent Meta META.O posted a drop in third-quarter profit and forecast a weak holiday quarter with significantly higher costs next year, sending its shares down 19.7% in premarket trade and wiping about $67 billion off its market value.
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18706.0
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2022-10-27 00:00:00 UTC
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Should You Invest in the First Trust Indxx NextG ETF (NXTG)?
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AAPL
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https://www.nasdaq.com/articles/should-you-invest-in-the-first-trust-indxx-nextg-etf-nxtg-2
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nan
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Designed to provide broad exposure to the Technology - Telecom segment of the equity market, the First Trust Indxx NextG ETF (NXTG) is a passively managed exchange traded fund launched on 02/17/2011.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Technology - Telecom is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 5, placing it in top 31%.
Index Details
The fund is sponsored by First Trust Advisors. It has amassed assets over $480.46 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Telecom segment of the equity market. NXTG seeks to match the performance of the INDXX 5G & NEXTG THEMATIC INDEX before fees and expenses.
The Indxx 5G & NextG Thematic Index tracks the performance of companies engaged in the smartphone segment of the telecom and technology sectors.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.70%, making it one of the more expensive products in the space.
It has a 12-month trailing dividend yield of 3.51%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Arista Networks, Inc. (ANET) accounts for about 1.66% of total assets, followed by Apple Inc. (AAPL) and Ciena Corporation (CIEN).
The top 10 holdings account for about 14.53% of total assets under management.
Performance and Risk
Year-to-date, the First Trust Indxx NextG ETF has lost about -29.46% so far, and is down about -22.86% over the last 12 months (as of 10/27/2022). NXTG has traded between $54.30 and $83.17 in this past 52-week period.
The ETF has a beta of 0.85 and standard deviation of 23.57% for the trailing three-year period. With about 102 holdings, it effectively diversifies company-specific risk.
Alternatives
First Trust Indxx NextG ETF sports a Zacks ETF Rank of 4 (Sell), which is based on expected asset class return, expense ratio, and momentum, among other factors. NXTG, then, is not a great choice for investors seeking exposure to the Technology ETFs segment of the market. However, there are better ETFs in the space to consider.
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First Trust Indxx NextG ETF (NXTG): ETF Research Reports
Apple Inc. (AAPL): Free Stock Analysis Report
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Arista Networks, Inc. (ANET): 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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Looking at individual holdings, Arista Networks, Inc. (ANET) accounts for about 1.66% of total assets, followed by Apple Inc. (AAPL) and Ciena Corporation (CIEN). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Technology - Telecom segment of the equity market, the First Trust Indxx NextG ETF (NXTG) is a passively managed exchange traded fund launched on 02/17/2011.
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Looking at individual holdings, Arista Networks, Inc. (ANET) accounts for about 1.66% of total assets, followed by Apple Inc. (AAPL) and Ciena Corporation (CIEN). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Technology - Telecom segment of the equity market, the First Trust Indxx NextG ETF (NXTG) is a passively managed exchange traded fund launched on 02/17/2011.
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Looking at individual holdings, Arista Networks, Inc. (ANET) accounts for about 1.66% of total assets, followed by Apple Inc. (AAPL) and Ciena Corporation (CIEN). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Technology - Telecom segment of the equity market, the First Trust Indxx NextG ETF (NXTG) is a passively managed exchange traded fund launched on 02/17/2011.
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Looking at individual holdings, Arista Networks, Inc. (ANET) accounts for about 1.66% of total assets, followed by Apple Inc. (AAPL) and Ciena Corporation (CIEN). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Technology - Telecom segment of the equity market, the First Trust Indxx NextG ETF (NXTG) is a passively managed exchange traded fund launched on 02/17/2011.
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18707.0
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2022-10-27 00:00:00 UTC
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GLOBAL MARKETS-Asia shares rise on hopes of rate hike slowdown, ECB in focus
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AAPL
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https://www.nasdaq.com/articles/global-markets-asia-shares-rise-on-hopes-of-rate-hike-slowdown-ecb-in-focus
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By Ankur Banerjee
SINGAPORE, Oct 27 (Reuters) - Asian equities gained for a third straight day on Thursday, on growing hopes that major central banks could start slowing the pace of interest rate hikes, with the European Central Bank's meeting later in the day in focus for further clues.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUSrallied 1.24% and a rebounding Hong Kong again led gains.
There were, however, some signs of flagging momentum and European futures indicated stocks were set to decline ahead of the ECB's rate decision, with markets expecting a 75 basis-point rate hike.
Eurostoxx 50 futures STXEc1 were down 0.28%, while German DAX futures FDXc1 fell 0.20% and FTSE futures FFIc1were 0.23% lower. U.S. futures ESc1 rose 0.7%.
The impending ECB decision comes after the Bank of Canada on Wednesday surprised markets when it announced a smaller-than-expected rate rise, weeks after Australia's central bank made a similar move.
All of this has increased speculation that the Federal Reserve may soon slow its aggressive policy tightening, blunting the dollar's rally and pushing Treasury yields lower.
"The pivot story from the United States is really beginning to look more plausible," said ING's regional head of research Robert Carnell, adding this was driven in part by the move from Bank of Canada.
The market is looking for guidance on the pivot story, Carnell added. "Has the dollar had its day? ... We won't know that until the FOMC meeting."
The Fed is expected to raise interest rates by 75 basis points again next week although there is some anticipation it will slow the pace of tightening and hike by a half point in December. FEDWATCH
Carnell said the Fed's forward guidance next week will be incredibly important, pointing out that there has been a slight softening of the stance from the central bank on its tightening policy.
ROLLING RECESSIONS
In Asia, Australia's resources-heavy share index .AXJO advanced 0.5%, while Japan's Nikkei .N225 was down 0.3%.
China's stock market .SSEC edged lower as bleak industrial profit figure and widening COVID-19 outbreaks weighed on sentiment. Hong Kong's Hang Seng .HSI added 2%, but had come down from the day's highs as bargain hunters' enthusiasm ebbs.
Chinese stocks have had a turbulent week, headlined by Monday's brutal sell-off as global investors dumped Chinese assets, worried that President Xi Jinping's new leadership team would put ideology before the economy.
In the currency markets, the euro EUR=EBS is above $1 for the first time in five weeks and last bought $1.1008. The greenback was on the back foot against most other major currencies, and especially on the yen, with dollar/yen down 0.9% to 145.15.
The greenback's retreat has come in tandem with a bond rally and lifted commodity prices. Spot gold XAU= was flirting with two-week high it touched on Wednesday.
Oil prices were firm, and held overnight gains, with Brent crude futures LCOc1 at $95.78 a barrel.
The principal challenge for central banks across the globe is to devise a path of policy that extinguishes inflation, but must also consider the implications for growth and employment, Citi strategists said in a note.
At the country level, Citi expects a series of "rolling recessions" with downturns appearing in the euro area and UK late this year and in the United States in mid-2023.
Earnings reports from Facebook parent Meta Platforms IncMETA.O on Wednesday and Samsung Electronics Co Ltd 005930.KS are starting to show signs that the slowdown has arrived.
Quarterly reports from Amazon AMZN.O and Apple AAPL.O due on Thursday will provide further detail on how companies are faring and framing their outlooks.
Embattled Credit Suisse CSGN.S on Thursday also outlined a long-awaited overhaul that will raise capital and separate out its investment bank, along with a $4 billion loss.
World FX rates YTDhttp://tmsnrt.rs/2egbfVh
Global asset performancehttp://tmsnrt.rs/2yaDPgn
Asian stock marketshttps://tmsnrt.rs/2zpUAr4
(Reporting by Ankur Banerjee; Editing by Simon Cameron-Moore and Ana Nicolaci da Costa)
((ankur.banerjee@thomsonreuters.com;; Mobile - +65 9121 9485; Twitter: @AnkurBanerjee17;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Quarterly reports from Amazon AMZN.O and Apple AAPL.O due on Thursday will provide further detail on how companies are faring and framing their outlooks. "The pivot story from the United States is really beginning to look more plausible," said ING's regional head of research Robert Carnell, adding this was driven in part by the move from Bank of Canada. FEDWATCH Carnell said the Fed's forward guidance next week will be incredibly important, pointing out that there has been a slight softening of the stance from the central bank on its tightening policy.
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Quarterly reports from Amazon AMZN.O and Apple AAPL.O due on Thursday will provide further detail on how companies are faring and framing their outlooks. By Ankur Banerjee SINGAPORE, Oct 27 (Reuters) - Asian equities gained for a third straight day on Thursday, on growing hopes that major central banks could start slowing the pace of interest rate hikes, with the European Central Bank's meeting later in the day in focus for further clues. There were, however, some signs of flagging momentum and European futures indicated stocks were set to decline ahead of the ECB's rate decision, with markets expecting a 75 basis-point rate hike.
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Quarterly reports from Amazon AMZN.O and Apple AAPL.O due on Thursday will provide further detail on how companies are faring and framing their outlooks. By Ankur Banerjee SINGAPORE, Oct 27 (Reuters) - Asian equities gained for a third straight day on Thursday, on growing hopes that major central banks could start slowing the pace of interest rate hikes, with the European Central Bank's meeting later in the day in focus for further clues. There were, however, some signs of flagging momentum and European futures indicated stocks were set to decline ahead of the ECB's rate decision, with markets expecting a 75 basis-point rate hike.
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Quarterly reports from Amazon AMZN.O and Apple AAPL.O due on Thursday will provide further detail on how companies are faring and framing their outlooks. There were, however, some signs of flagging momentum and European futures indicated stocks were set to decline ahead of the ECB's rate decision, with markets expecting a 75 basis-point rate hike. "Has the dollar had its day?
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18708.0
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2022-10-27 00:00:00 UTC
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Is This Your Last Chance to Buy Spotify Under $100?
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AAPL
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https://www.nasdaq.com/articles/is-this-your-last-chance-to-buy-spotify-under-%24100
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nan
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nan
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Spotify Technology (NYSE: SPOT) stock has closed in the triple digits at the end of 50 of its first 52 months as a public company. Barring a Halloween miracle, this month will be the third time that shares of the global streaming music leader break below $100.
These are tricky times for the platform. Competition is intense. Ad-supported companies are stumbling, and a wobbly economy doesn't bode well for Spotify's more lucrative premium service. The stock took a 13% hit on Wednesday following disappointing quarterly results that confirmed the headwinds that the industry is facing.
What if Spotify isn't just fading out slowly like so many musical tracks over the years? What if the catalysts are there to boost margins, catapult the platform into sustainable profitability, and essentially turn this beat around? Let's see why Spotify may not be trading in the double digits for long.
Image source: Getty Images.
Pump up the volume
Spotify hit the market in early 2018 at a reference price of $132. It's technically a broken initial public offering (IPO) at this point despite reaching record audiences. There were 456 million monthly active users at the end of the third quarter, a 20% increase over the past year. The 23 million net additions it experienced over the last three months is a new third-quarter record for Spotify.
There are two ways to consume the streaming audio platform. You can pay a monthly subscription for ad-free music listening, and 40% of those 456 million accounts are doing exactly that. You can also stream the service for free, putting up with audio ads along the way. The rub with the latter is that ad revenue is just 13% of Spotify's revenue despite being the only way it monetizes 60% of its audience. With the ad market taking a cue from the economy's recessionary tremors, marketers aren't going to be ramping up their advertising budgets anytime soon.
It gets worse. Ad-supported users are growing faster, up 24% over the past year compared to a 13% increase in paying listeners. If the global economy keeps sliding you can expect more premium accounts to shift over to the less profitable ad-supported audience base.
Investors don't like the trend, but there's more at play here. Premium streaming prices are on the rise. Over the past few days alone, rivals Apple and Alphabet's YouTube announced increases for their streaming music services. Spotify in the U.S. has held firm -- at $9.99 a month for the basic plan for more than a decade -- but it now has the flexibility to follow its smaller rivals higher.
Spotify isn't dead, even though its stock is hitting all-time lows this month. It may not be profitable on a reported basis, but it has rattled off 10 consecutive quarters of positive free cash flow. Its decision to beef up its podcasts in recent years -- despite courting controversy for some of the platform's more extreme personalities -- will pay off over time. There are now millions of podcasts available on Spotify, including some that are exclusive to the platform. The boost in spoken word content that is now extending to audiobooks will help set Spotify apart from its rivals when it comes to exclusive programming. Podcasts are also an easier sell to advertisers given the defined and captive audiences.
This is still a leader among music stocks. It has a strong dynamic founder CEO, a beloved product, and a cash-rich balance sheet that should weather the upcoming storm. Fade-outs can also fade back in, and Spotify might not be trading below $100 for long for patient investors if it's able to get back on track.
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. Rick Munarriz 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), 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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Spotify Technology (NYSE: SPOT) stock has closed in the triple digits at the end of 50 of its first 52 months as a public company. Spotify in the U.S. has held firm -- at $9.99 a month for the basic plan for more than a decade -- but it now has the flexibility to follow its smaller rivals higher. It has a strong dynamic founder CEO, a beloved product, and a cash-rich balance sheet that should weather the upcoming storm.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), 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.
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Spotify isn't dead, even though its stock is hitting all-time lows this month. 10 stocks we like better than Spotify Technology When our award-winning analyst team has a stock tip, it can pay to listen. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, and Spotify Technology.
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You can also stream the service for free, putting up with audio ads along the way. There are now millions of podcasts available on Spotify, including some that are exclusive to the platform. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, and Spotify Technology.
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18709.0
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2022-10-27 00:00:00 UTC
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Apple Q4 22 Earnings Conference Call AT 5:00 PM ET
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AAPL
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https://www.nasdaq.com/articles/apple-q4-22-earnings-conference-call-at-5%3A00-pm-et
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nan
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(RTTNews) - Apple Inc. (AAPL) will host a conference call at 5:00 PM ET on October 27, 2022, to discuss Q4 22 earnings results.
To access the live webcast, log on to https://investor.apple.com/investor-relations/default.aspx
The views and 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) will host a conference call at 5:00 PM ET on October 27, 2022, to discuss Q4 22 earnings results. To access the live webcast, log on to https://investor.apple.com/investor-relations/default.aspx The views and 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) will host a conference call at 5:00 PM ET on October 27, 2022, to discuss Q4 22 earnings results. To access the live webcast, log on to https://investor.apple.com/investor-relations/default.aspx The views and 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) will host a conference call at 5:00 PM ET on October 27, 2022, to discuss Q4 22 earnings results. To access the live webcast, log on to https://investor.apple.com/investor-relations/default.aspx The views and 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) will host a conference call at 5:00 PM ET on October 27, 2022, to discuss Q4 22 earnings results. To access the live webcast, log on to https://investor.apple.com/investor-relations/default.aspx The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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18710.0
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2022-10-27 00:00:00 UTC
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2 Cryptocurrencies That Are Down More Than 70% and Ready to Pop
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AAPL
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https://www.nasdaq.com/articles/2-cryptocurrencies-that-are-down-more-than-70-and-ready-to-pop
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nan
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Today's economic woes have pushed investors toward the safest of assets, and that's resulted in massive declines for cryptocurrencies. Industry market value has dropped to about $1 trillion from $3 trillion late last year.
At the same time, many crypto players remain just as promising as they were a year ago. That means now may be a good time to get in on some of these exciting long-term stories.
Which players are worth considering? There are plenty of options among the thousands of cryptocurrencies out there. But let's consider two players that have lost more than 70% this year -- and may be ready to pop.
1. Solana
Solana (CRYPTO: SOL) is a cryptocurrency and a blockchain and is known for its transaction speed. At the moment, Solana processes more than 4,200 transactions per second. But Solana's architecture allows it to potentially process 65,000 transactions per second.
The cryptocurrency already has become popular in the world of non-fungible tokens (NFTs). Over the past 30 days, Solana was the second-biggest blockchain by NFT sales volume, according to CryptoSlam.
Solana has big plans to grow in the area of payments and lead development of mobile crypto. Earlier this year, it launched Solana Pay. This is a payment framework built on Solana. It allows a business and its customers to avoid intermediaries, and that means fees are a fraction of a cent. A month after the Solana Pay launch, about 600 merchants already came onboard.
Of course, Solana Pay is still far from overtaking well-known payment systems like Visa or Paypal. But this could be its first step into a big business down the road.
As for mobile, Solana says it will begin selling its own Saga mobile phone next year. The phone's functionality will be linked to the Solana blockchain, and that will make it easy to do things like manage digital assets right there on the phone.
Solana has already made a building framework available to developers. This means they're already creating experiences designed specifically for use on the Saga.
Will Saga become as popular as Apple's iPhone? This may seem impossible right now, but the Saga may not have to equal the iPhone in popularity to become a successful product. It's surely a point to watch.
Solana has dropped 82% so far this year. Its ventures into payment and mobile are new -- and represent risk. But if Solana makes some progress in these areas and manages its main challenge of network stability, this crypto clearly could pop.
2. Cardano
Cardano (CRYPTO: ADA) has slipped 70% this year. These declines aren't a reflection of the news from this cryptocurrency and blockchain, as Cardano reached an important milestone recently and is heading for others.
The cryptocurrency completed the Vasil hard fork last month. This update is meant to improve scalability and strengthen Cardano as a platform for decentralized applications (dApps). This is positive because it should encourage more and more developers to build on Cardano, and that's likely to draw more users, too.
But there's even more ahead. Recently, Cardano's hydra scaling solution completed a demo on decentralized exchange SundaeSwap. Cardano hasn't yet set a launch date for hydra, and it may be quite a while before it happens. But the solution clearly is something that could transform the cryptocurrency.
Hydra allows some transactions to take place off chain, increasing transaction speed and reducing congestion on the main network. Each hydra "head" demonstrated the ability to process as many as 1,000 transactions per second in the earliest simulations.
There's a reason Cardano takes a while before launching updates. The blockchain uses a peer-review system for every change before it's applied, and that slows things down. But it also may prevent technical glitches down the road. So, yes, Cardano users and investors must be patient right now -- but this patience could pay off big time.
Another catalyst may be the launch of the Lace wallet. Cardano founder Charles Hoskinson says Lace was designed with the idea of bringing 1 billion users to the platform. The wallet is meant to serve as "one platform for your Web3 life," according to Cardano.
Like Solana, Cardano has slipped along with most other assets viewed as risky. It has fallen so much that it could pop on any good news.
What does this mean for investors? Should you buy these cryptocurrencies? Solana and Cardano make great buys right now for investors with a tolerance for risk -- and a long-term outlook. Both of these players may have what it takes to play a significant role in the cryptocurrency world over time.
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Adria Cimino has positions in PayPal Holdings. The Motley Fool has positions in and recommends Apple, Cardano, PayPal Holdings, Solana, and Visa. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Today's economic woes have pushed investors toward the safest of assets, and that's resulted in massive declines for cryptocurrencies. These declines aren't a reflection of the news from this cryptocurrency and blockchain, as Cardano reached an important milestone recently and is heading for others. Cardano founder Charles Hoskinson says Lace was designed with the idea of bringing 1 billion users to the platform.
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Recently, Cardano's hydra scaling solution completed a demo on decentralized exchange SundaeSwap. The Motley Fool has positions in and recommends Apple, Cardano, PayPal Holdings, Solana, and Visa. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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Solana Solana (CRYPTO: SOL) is a cryptocurrency and a blockchain and is known for its transaction speed. Solana and Cardano make great buys right now for investors with a tolerance for risk -- and a long-term outlook. The Motley Fool has positions in and recommends Apple, Cardano, PayPal Holdings, Solana, and Visa.
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Solana Solana (CRYPTO: SOL) is a cryptocurrency and a blockchain and is known for its transaction speed. Solana has big plans to grow in the area of payments and lead development of mobile crypto. Should you buy these cryptocurrencies?
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2022-10-27 00:00:00 UTC
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US STOCKS-Dow jumps on earnings boost, Meta drags Nasdaq lower
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https://www.nasdaq.com/articles/us-stocks-dow-jumps-on-earnings-boost-meta-drags-nasdaq-lower
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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
Caterpillar, McDonald's shares boost Dow
U.S. economic growth rebounds in Q3
Meta falls on weak holiday-quarter forecast
Apple, Amazon set to report results after market close
Dow up 1.01%, Nasdaq down 1.14%, S&P down 0.21%
Updates prices, adds comment
By Amruta Khandekar and Shreyashi Sanyal
Oct 27 (Reuters) - The Dow jumped on Thursday after a slew of upbeat earnings reports and data showing a rebound in economic growth eased some nerves about a recession, while the Nasdaq was pressured by a slump in Meta shares.
Gains in McDonald's and Caterpillar lifted the price-weighted Dow Jones Industrial Average .DJI, in which the share value of a stock is proportional to its influence on the index as opposed to the market capitalization-weighted S&P 500 .SPX.
Caterpillar Inc CAT.N jumped 8.2% on posting a rise in third-quarter profit, while McDonald's Corp MCD.N added 3.1% on beating quarterly comparable sales estimates.
Merck & Co Inc MRK.N rose 2.1% and Honeywell International Inc HON.O climbed 4.4% as both the companies reported better-than-expected quarterly earnings.
Facebook-parent Meta Platforms Inc META.O slumped 22.1%, putting it on course to lose about $77 billion in market value, as it reported a drop in third-quarter profit and forecast a weak holiday quarter.
The S&P 500 communication services sector .SPLRCL tumbled 3.1% and was the biggest loser on the index.
The U.S. Commerce Department's advance third-quarter gross domestic product report showed GDP increased at a 2.6% annualized rate last quarter, ending two straight quarterly decreases in output.
The GDP report followed a string of recent data showing shrinking business activity and a fall in consumer sentiment, that had boosted hopes that the Federal Reserve's aggressive rate hikes were beginning to slow the economy and the central bank could soon tone down its hawkish stance.
"For every kind of (report) you put in the column and say the Fed has more room to raise rates, there's enough on the other side to show that the Fed probably needs to slow down," said Ken Mahoney, chief executive officer of Mahoney Asset Management in Montvale, New Jersey.
"The 2.6% headline number today was a relief to a lot of investors to say, maybe there is a chance of a soft landing."
The Fed is set to increase interest rates by 75 basis points in an upcoming meeting next week, with traders betting on a 50 basis point raise in December. FEDWATCH
Data scheduled for Friday is expected show the Fed's preferred measure of inflation continued to run at roughly three times the U.S. central bank's annual target last month.
Shares of Amazon.com Inc AMZN.O were down 4.0%, while Apple Inc AAPL.O fell 2.8% ahead of results later on Thursday.
At 12:55 p.m. ET, the Dow Jones Industrial Average .DJI was up 322.17 points, or 1.01%, at 32,161.28, the S&P 500 .SPX was down 7.91 points, or 0.21%, at 3,822.69, and the Nasdaq Composite .IXIC was down 124.88 points, or 1.14%, at 10,846.11.
Advancing issues outnumbered decliners for a 1.99-to-1 ratio on the NYSE and a 1.42-to-1 ratio on the Nasdaq.
The S&P index recorded 23 new 52-week highs and six new lows, while the Nasdaq recorded 62 new highs and 76 new lows.
(Reporting by Amruta Khandekar and Shreyashi Sanyal in Bengaluru; Editing by 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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Shares of Amazon.com Inc AMZN.O were down 4.0%, while Apple Inc AAPL.O fell 2.8% ahead of results later on Thursday. Gains in McDonald's and Caterpillar lifted the price-weighted Dow Jones Industrial Average .DJI, in which the share value of a stock is proportional to its influence on the index as opposed to the market capitalization-weighted S&P 500 .SPX. The GDP report followed a string of recent data showing shrinking business activity and a fall in consumer sentiment, that had boosted hopes that the Federal Reserve's aggressive rate hikes were beginning to slow the economy and the central bank could soon tone down its hawkish stance.
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Shares of Amazon.com Inc AMZN.O were down 4.0%, while Apple Inc AAPL.O fell 2.8% ahead of results later on Thursday. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Caterpillar, McDonald's shares boost Dow U.S. economic growth rebounds in Q3 Meta falls on weak holiday-quarter forecast Apple, Amazon set to report results after market close Dow up 1.01%, Nasdaq down 1.14%, S&P down 0.21% Updates prices, adds comment By Amruta Khandekar and Shreyashi Sanyal Oct 27 (Reuters) - The Dow jumped on Thursday after a slew of upbeat earnings reports and data showing a rebound in economic growth eased some nerves about a recession, while the Nasdaq was pressured by a slump in Meta shares. The U.S. Commerce Department's advance third-quarter gross domestic product report showed GDP increased at a 2.6% annualized rate last quarter, ending two straight quarterly decreases in output.
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Shares of Amazon.com Inc AMZN.O were down 4.0%, while Apple Inc AAPL.O fell 2.8% ahead of results later on Thursday. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Caterpillar, McDonald's shares boost Dow U.S. economic growth rebounds in Q3 Meta falls on weak holiday-quarter forecast Apple, Amazon set to report results after market close Dow up 1.01%, Nasdaq down 1.14%, S&P down 0.21% Updates prices, adds comment By Amruta Khandekar and Shreyashi Sanyal Oct 27 (Reuters) - The Dow jumped on Thursday after a slew of upbeat earnings reports and data showing a rebound in economic growth eased some nerves about a recession, while the Nasdaq was pressured by a slump in Meta shares. The U.S. Commerce Department's advance third-quarter gross domestic product report showed GDP increased at a 2.6% annualized rate last quarter, ending two straight quarterly decreases in output.
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Shares of Amazon.com Inc AMZN.O were down 4.0%, while Apple Inc AAPL.O fell 2.8% ahead of results later on Thursday. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Caterpillar, McDonald's shares boost Dow U.S. economic growth rebounds in Q3 Meta falls on weak holiday-quarter forecast Apple, Amazon set to report results after market close Dow up 1.01%, Nasdaq down 1.14%, S&P down 0.21% Updates prices, adds comment By Amruta Khandekar and Shreyashi Sanyal Oct 27 (Reuters) - The Dow jumped on Thursday after a slew of upbeat earnings reports and data showing a rebound in economic growth eased some nerves about a recession, while the Nasdaq was pressured by a slump in Meta shares. Facebook-parent Meta Platforms Inc META.O slumped 22.1%, putting it on course to lose about $77 billion in market value, as it reported a drop in third-quarter profit and forecast a weak holiday quarter.
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2022-10-26 00:00:00 UTC
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US STOCKS-Nasdaq falls as weak Big Tech earnings fan growth concerns; Visa buoys Dow
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https://www.nasdaq.com/articles/us-stocks-nasdaq-falls-as-weak-big-tech-earnings-fan-growth-concerns-visa-buoys-dow
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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.
Microsoft drops on dour forecast
Alphabet warns of slowing ad spend
Shares of ad-dependent social media firms fall
Visa gains on Q4 profit beat as payment volumes surge
Indexes: Dow up 0.39%, S&P down 0.36%, Nasdaq down 1.34%
Updates to market open
By Amruta Khandekar and Shreyashi Sanyal
Oct 26 (Reuters) - The Nasdaq index fell on Wednesday as disappointing results and warnings from Microsoft and Alphabet sparked losses in megacap companies and raised fears of slowing economic growth, while an upbeat earnings report from Visa kept the Dow afloat.
Microsoft Corp MSFT.O posted its lowest sales growth in five years and forecast second-quarter revenue below Wall Street estimates, while Alphabet GOOGL.O reported downbeat ad sales and warned of a slowdown in advertising spending.
Shares of both companies fell about 7.5% each, dragging down Amazon.com AMZN.O and Apple AAPL.O, which are scheduled to report results later this week. They were down 4.0% and 1.3%, respectively.
"Microsoft results point to this idea that corporate IT budgets are coming under pressure and Alphabet missing estimates speaks to perhaps a consumer that is potentially running out of steam and both point to a slowing economy," said Josh Wein, portfolio manager at Hennessy Funds.
Shares of ad revenue dependent social media firms Meta Platforms META.O fell 3.4%, while Pinterest PINS.N dropped 1%.
U.S.-listed shares of Spotify Technology SPOT.N lost 7.0% as margins came under pressure from a slowdown in ad growth, while Texas Instruments TXN.O fell 3.9% after the chipmaker gave a bleak fourth-quarter outlook on lower demand.
The extensive weakness in the tech sector comes despite a drop in the benchmark 10-year Treasury yield US10YT=RR, which fell for the second straight day on rising bets over a slowdown in the pace of interest-rate hikes. US/
Expectations of a less-hawkish Federal Reserve have helped Wall Street's main indexes notch three straight sessions of gains, but downbeat earnings and forecasts suggested the Fed's rapid interest rate hikes are slowing the economy.
The U.S. central bank is expected to deliver its fourth 75 basis-point hike in its Nov. 1-2 policy meeting against the backdrop of recent data pointing to economic softness.
"I don't see this Fed as one that's going to look at one data point and say we're getting close to the end, so 75 bps is probably baked in for December," Wein said.
Analysts have set the bar low for third-quarter reporting season, with aggregate S&P 500 earnings growth seen at 3.3% year-on-year, down from 4.5% at the start of the month, according to Refinitiv data.
At 10:01 a.m. ET, the Dow Jones Industrial Average .DJI was up 124.32 points, or 0.39%, at 31,961.06, the S&P 500 .SPX was down 13.71 points, or 0.36%, at 3,845.40, and the Nasdaq Composite .IXIC was down 149.98 points, or 1.34%, at 11,049.14.
Visa Inc V.N jumped 5%, boosting the Dow, after the payments processor topped quarterly profit estimates on strong travel demand.
Boeing Co BA.N reversed early losses and was last up 1.3%. Its chief executive officer said he is confident that the planemaker will get an extension from U.S. Congress of a key deadline to get the MAX 7 and MAX 10 certified.
Advancing issues outnumbered decliners by a 2.05-to-1 ratio on the NYSE and by a 1.87-to-1 ratio on the Nasdaq.
The S&P index recorded 19 new 52-week highs and two new lows, while the Nasdaq recorded 45 new highs and 24 new lows.
(Reporting by Amruta Khandekar and Shreyashi Sanyal in Bengaluru; Editing by Saumyadeb Chakrabarty, Arun Koyyur and 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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Shares of both companies fell about 7.5% each, dragging down Amazon.com AMZN.O and Apple AAPL.O, which are scheduled to report results later this week. Microsoft drops on dour forecast Alphabet warns of slowing ad spend Shares of ad-dependent social media firms fall Visa gains on Q4 profit beat as payment volumes surge Indexes: Dow up 0.39%, S&P down 0.36%, Nasdaq down 1.34% Updates to market open By Amruta Khandekar and Shreyashi Sanyal Oct 26 (Reuters) - The Nasdaq index fell on Wednesday as disappointing results and warnings from Microsoft and Alphabet sparked losses in megacap companies and raised fears of slowing economic growth, while an upbeat earnings report from Visa kept the Dow afloat. U.S.-listed shares of Spotify Technology SPOT.N lost 7.0% as margins came under pressure from a slowdown in ad growth, while Texas Instruments TXN.O fell 3.9% after the chipmaker gave a bleak fourth-quarter outlook on lower demand.
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Shares of both companies fell about 7.5% each, dragging down Amazon.com AMZN.O and Apple AAPL.O, which are scheduled to report results later this week. Microsoft drops on dour forecast Alphabet warns of slowing ad spend Shares of ad-dependent social media firms fall Visa gains on Q4 profit beat as payment volumes surge Indexes: Dow up 0.39%, S&P down 0.36%, Nasdaq down 1.34% Updates to market open By Amruta Khandekar and Shreyashi Sanyal Oct 26 (Reuters) - The Nasdaq index fell on Wednesday as disappointing results and warnings from Microsoft and Alphabet sparked losses in megacap companies and raised fears of slowing economic growth, while an upbeat earnings report from Visa kept the Dow afloat. Microsoft Corp MSFT.O posted its lowest sales growth in five years and forecast second-quarter revenue below Wall Street estimates, while Alphabet GOOGL.O reported downbeat ad sales and warned of a slowdown in advertising spending.
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Shares of both companies fell about 7.5% each, dragging down Amazon.com AMZN.O and Apple AAPL.O, which are scheduled to report results later this week. Microsoft drops on dour forecast Alphabet warns of slowing ad spend Shares of ad-dependent social media firms fall Visa gains on Q4 profit beat as payment volumes surge Indexes: Dow up 0.39%, S&P down 0.36%, Nasdaq down 1.34% Updates to market open By Amruta Khandekar and Shreyashi Sanyal Oct 26 (Reuters) - The Nasdaq index fell on Wednesday as disappointing results and warnings from Microsoft and Alphabet sparked losses in megacap companies and raised fears of slowing economic growth, while an upbeat earnings report from Visa kept the Dow afloat. Microsoft Corp MSFT.O posted its lowest sales growth in five years and forecast second-quarter revenue below Wall Street estimates, while Alphabet GOOGL.O reported downbeat ad sales and warned of a slowdown in advertising spending.
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Shares of both companies fell about 7.5% each, dragging down Amazon.com AMZN.O and Apple AAPL.O, which are scheduled to report results later this week. Microsoft drops on dour forecast Alphabet warns of slowing ad spend Shares of ad-dependent social media firms fall Visa gains on Q4 profit beat as payment volumes surge Indexes: Dow up 0.39%, S&P down 0.36%, Nasdaq down 1.34% Updates to market open By Amruta Khandekar and Shreyashi Sanyal Oct 26 (Reuters) - The Nasdaq index fell on Wednesday as disappointing results and warnings from Microsoft and Alphabet sparked losses in megacap companies and raised fears of slowing economic growth, while an upbeat earnings report from Visa kept the Dow afloat. "Microsoft results point to this idea that corporate IT budgets are coming under pressure and Alphabet missing estimates speaks to perhaps a consumer that is potentially running out of steam and both point to a slowing economy," said Josh Wein, portfolio manager at Hennessy Funds.
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18713.0
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2022-10-26 00:00:00 UTC
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SONY Gears Up to Report Q2 Earnings: Here's What to Expect
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https://www.nasdaq.com/articles/sony-gears-up-to-report-q2-earnings%3A-heres-what-to-expect
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Sony Group Corporation SONY is scheduled to report second-quarter fiscal 2022 results on Nov 1.
The Zacks Consensus Estimate for earnings is pegged at $1.10 per share, indicating a decrease of 29% on a year-over-year basis. The consensus mark for revenues stands at $21.17 billion, suggesting a decline of 1.7% from the prior-year quarter’s levels.
The company surpassed the Zacks Consensus Estimate in three of the last four quarters and missed the same in the remaining quarter. It has a trailing four-quarter earnings surprise of 12.2%, on average. In the past year, shares of the company have lost 40.6% of their value compared with the industry’s decline of 40.3%.
Image Source: Zacks Investment Research
Factors to Note
The Japan-based company is likely to have gained from momentum seen in the Music and Pictures segments.
The Music segment is likely to have benefited from a rise in sales of recorded music and increased revenues from paid subscription streaming. Higher revenues for live performances and merchandise sales in recorded music may have favored the top line. However, a decrease in sales in the anime business may have acted as a headwind.
The Pictures segment is likely to have benefited from a rise in sales for media networks resulting from the Crunchyroll acquisition and television productions. Increased series deliveries in television productions, higher television licensing and home entertainment revenues are also likely to have acted as tailwinds
However, weakness in Game & Network Services continues to be a concern. The segment is grappling with a decline in sales of non-first-party titles, including add-on content and weak sales of first-party titles. In the first quarter of fiscal 2022, the segment’s sales were down 2% year over year to ¥604.1 billion.
The segment’s revenues are likely to have been affected by lower software sales. Operating income for the segment is likely to have been affected by a decrease in software sales and higher expenses associated with the acquisition of Bungie. Nonetheless, the company continues to expect 18-million-unit sales for its PlayStation 5 for fiscal 2022.
Also, protracted supply chain troubles along with uncertainty prevailing over global macroeconomic conditions and inflationary pressure may have weighed on the to-be-reported quarter’s performance.
Sales of televisions and cameras are likely to have been affected by rising inflation, geopolitical turmoil in Europe and the reimposition of lockdowns in China. This may affect the Electronics Products & Solutions segment in the to-be-reported quarter.
Recent Developments
In October, SONY announced that it had established its earlier announced joint venture with Honda Motor Co., Ltd — Sony Honda Mobility Inc. Both the companies had signed a joint venture agreement to establish Sony Honda Mobility to build high-value-added electric vehicles (EVs) in June 2022. Through Sony Honda Mobility, SONY is looking to deliver EVs to North America at the beginning of spring 2026. The cars will be delivered in Japan in the second half of 2026. The mobility venture will be taking pre-orders for the first product in the first half of 2025, with sales to be executed before the end of 2025.
In August, SONY announced an agreement to acquire Savage Game Studios for an undisclosed amount to further bolster its mobile gaming efforts. Post the acquisition, Savage Studios will join the newly created PlayStation Studios’ mobile division. This division is involved in the development of high-quality, unique mobile games that adhere to PlayStation Studios' high standards while offering customers new gaming experiences.
In August, SONY announced that it is raising the price of its PS5 console in select markets across Europe, the Middle East, Africa, Asia-Pacific, Latin America and Canada. The current increase in price is due to a steep rise in inflation and the depreciation of the yen against the dollar. Further, the rise in global costs and semiconductor shortages may have hampered production.
Sony Corporation Price and EPS Surprise
Sony Corporation price-eps-surprise | Sony Corporation Quote
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Sony this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Sony has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks you may consider, as our model shows that these have the right combination of elements to beat on earnings this season.
Stellar Bancorp STEL has an Earnings ESP of +14.34% and currently has a Zacks Rank #2. Stellar Bancorp is scheduled to report earnings on Oct 28. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Stellar Bancorp’s to-be-reported quarter’s earnings and revenues is pegged at 88 cents per share and $56.4 million, respectively. Shares of STEL have gained 9.8% in the past year.
Fortinet FTNT has an Earnings ESP of +0.92% and presently carries a Zacks Rank #2. Fortinet is slated to release quarterly numbers on Nov 2.
The Zacks Consensus Estimate for Fortinet’s to-be-reported quarter’s earnings and revenues is pegged at 27 cents per share and $1.12 billion, respectively. Shares of FTNT have lost 12.9% in the past year.
Apple AAPL has an Earnings ESP of +0.89% and currently carries a Zacks Rank #3. Apple is scheduled to report earnings on Oct 27.
The Zacks Consensus Estimate for Apple’s to-be-reported quarter’s earnings and revenues is pegged at $1.26 per share and $88.5 billion, respectively. Apple surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 5.7%. Shares of AAPL have gained 2.4% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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
Fortinet, Inc. (FTNT): Free Stock Analysis Report
Stellar Bancorp, Inc. (STEL): Free Stock Analysis Report
Sony Corporation (SONY): 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 an Earnings ESP of +0.89% and currently carries a Zacks Rank #3. Shares of AAPL have gained 2.4% in the past year. Apple Inc. (AAPL): Free Stock Analysis Report
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Apple AAPL has an Earnings ESP of +0.89% and currently carries a Zacks Rank #3. Shares of AAPL have gained 2.4% in the past year. Apple Inc. (AAPL): Free Stock Analysis Report
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Apple AAPL has an Earnings ESP of +0.89% and currently carries a Zacks Rank #3. Shares of AAPL have gained 2.4% in the past year. Apple Inc. (AAPL): Free Stock Analysis Report
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Apple AAPL has an Earnings ESP of +0.89% and currently carries a Zacks Rank #3. Shares of AAPL have gained 2.4% in the past year. Apple Inc. (AAPL): Free Stock Analysis Report
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18714.0
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2022-10-26 00:00:00 UTC
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US STOCKS-S&P, Nasdaq pulled lower as tech earnings misses fuel slowdown fears
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https://www.nasdaq.com/articles/us-stocks-sp-nasdaq-pulled-lower-as-tech-earnings-misses-fuel-slowdown-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.
Microsoft, Alphabet drops on slowdown fears
Bank of Canada announces smaller-than-expected 50 bps hike
Boeing earnings miss sends shares falling
Visa gains on Q4 profit beat as payment volumes surge
Indexes: Dow up 0.50%, S&P off 0.16%, Nasdaq down 1.30%
New throughout; adds NEW YORK dateline, changes byline
By Stephen Culp
NEW YORK, Oct 26 (Reuters) - Wall Street wavered on Wednesday, poised to snap a three-day rally as dour earnings guidance added to mounting fears of a global economic slowdown.
But those fears, along with a smaller-than-expected interest rate hike from the Bank of Canada, continued to feed hopes that the Fed might consider easing the size of its rate hikes after its Nov. 1-2 policy meeting.
"Central banks are starting to blink," said Paul Kim, Chief Executive Officer at Simplify ETFs in New York. "It’s part of the larger trend and supports the (Fed) 'pivot' narrative."
The S&P 500 and the Nasdaq were last in negative territory, dragged lower by market-leading tech and tech-adjacent companies following results from Microsoft MSFT.O and Alphabet GOOGL.O.
Microsoft and Alphabet shares were last down 6.0% and 8.0%, respectively.
Those gloomy reports brought worries over an impending global economic downturn from simmer to boil, and spread to other high profile megacaps, two of which - Apple Inc AAPL.O and Meta Platforms META.O - are expected to post results after the closing bell.
Sales of newly constructed U.S. homes plunged in September while mortgage rates hit their highest level in more than two decades, adding to the growing pile of data suggesting a softening economic landscape.
At 2:13 p.m. (1813 GMT), the Dow Jones Industrial Average .DJI rose 160.68 points, or 0.5%, to 31,997.42, the S&P 500 .SPX lost 6.06 points, or 0.16%, to 3,853.05 and the Nasdaq Composite .IXIC dropped 145.97 points, or 1.3%, to 11,053.15.
Among the 11 major sectors of the S&P 500, communications services .SPLRCL and tech .SPLRCT were suffering the largest percentage losses.
Third quarter earnings season has shifted into high gear, with 170 of the companies in the S&P 500 having reported. Of those, 75% have delivered consensus-beating results, according to Refinitiv.
But they have a low bar to clear. Analysts now see aggregate S&P 500 earnings growth of 2.3%, down from 4.5% at the beginning of the month, per Refinitiv.
Among the initial takeaways so far this earnings season, Kim said "two themes are emerging: labor costs and dollar strength."
"Dollar strength is a headwinds for larger companies with international revenues," Kim added.
Boeing Co BA.Nreported a deeper than expected third quarter loss, sending its shares sliding 7.9%.
On the plus side, Visa Inc V.N rose 4.7% in the wake of the consumer credit company's profit beat.
Advancing issues outnumbered declining ones on the NYSE by a 2.97-to-1 ratio; on Nasdaq, a 2.20-to-1 ratio favored advancers.
The S&P 500 posted 25 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 87 new highs and 54 new lows.
GRAPHIC-Central banks ramp up fight against inflationhttps://tmsnrt.rs/3Fk71qW
(Reporting by Stephen Culp; Additional reporting by Amruta Khandekar and Shreyashi Sanyal in Bengaluru; editing by Grant McCool)
((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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Those gloomy reports brought worries over an impending global economic downturn from simmer to boil, and spread to other high profile megacaps, two of which - Apple Inc AAPL.O and Meta Platforms META.O - are expected to post results after the closing bell. Microsoft, Alphabet drops on slowdown fears Bank of Canada announces smaller-than-expected 50 bps hike Boeing earnings miss sends shares falling Visa gains on Q4 profit beat as payment volumes surge Indexes: Dow up 0.50%, S&P off 0.16%, Nasdaq down 1.30% New throughout; adds NEW YORK dateline, changes byline By Stephen Culp NEW YORK, Oct 26 (Reuters) - Wall Street wavered on Wednesday, poised to snap a three-day rally as dour earnings guidance added to mounting fears of a global economic slowdown. Sales of newly constructed U.S. homes plunged in September while mortgage rates hit their highest level in more than two decades, adding to the growing pile of data suggesting a softening economic landscape.
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Those gloomy reports brought worries over an impending global economic downturn from simmer to boil, and spread to other high profile megacaps, two of which - Apple Inc AAPL.O and Meta Platforms META.O - are expected to post results after the closing bell. Microsoft, Alphabet drops on slowdown fears Bank of Canada announces smaller-than-expected 50 bps hike Boeing earnings miss sends shares falling Visa gains on Q4 profit beat as payment volumes surge Indexes: Dow up 0.50%, S&P off 0.16%, Nasdaq down 1.30% New throughout; adds NEW YORK dateline, changes byline By Stephen Culp NEW YORK, Oct 26 (Reuters) - Wall Street wavered on Wednesday, poised to snap a three-day rally as dour earnings guidance added to mounting fears of a global economic slowdown. At 2:13 p.m. (1813 GMT), the Dow Jones Industrial Average .DJI rose 160.68 points, or 0.5%, to 31,997.42, the S&P 500 .SPX lost 6.06 points, or 0.16%, to 3,853.05 and the Nasdaq Composite .IXIC dropped 145.97 points, or 1.3%, to 11,053.15.
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Those gloomy reports brought worries over an impending global economic downturn from simmer to boil, and spread to other high profile megacaps, two of which - Apple Inc AAPL.O and Meta Platforms META.O - are expected to post results after the closing bell. Microsoft, Alphabet drops on slowdown fears Bank of Canada announces smaller-than-expected 50 bps hike Boeing earnings miss sends shares falling Visa gains on Q4 profit beat as payment volumes surge Indexes: Dow up 0.50%, S&P off 0.16%, Nasdaq down 1.30% New throughout; adds NEW YORK dateline, changes byline By Stephen Culp NEW YORK, Oct 26 (Reuters) - Wall Street wavered on Wednesday, poised to snap a three-day rally as dour earnings guidance added to mounting fears of a global economic slowdown. The S&P 500 posted 25 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 87 new highs and 54 new lows.
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Those gloomy reports brought worries over an impending global economic downturn from simmer to boil, and spread to other high profile megacaps, two of which - Apple Inc AAPL.O and Meta Platforms META.O - are expected to post results after the closing bell. Microsoft, Alphabet drops on slowdown fears Bank of Canada announces smaller-than-expected 50 bps hike Boeing earnings miss sends shares falling Visa gains on Q4 profit beat as payment volumes surge Indexes: Dow up 0.50%, S&P off 0.16%, Nasdaq down 1.30% New throughout; adds NEW YORK dateline, changes byline By Stephen Culp NEW YORK, Oct 26 (Reuters) - Wall Street wavered on Wednesday, poised to snap a three-day rally as dour earnings guidance added to mounting fears of a global economic slowdown. Third quarter earnings season has shifted into high gear, with 170 of the companies in the S&P 500 having reported.
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18715.0
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2022-10-26 00:00:00 UTC
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US STOCKS-S&P 500 ends lower, snapping rally on mounting slowdown fears
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-ends-lower-snapping-rally-on-mounting-slowdown-fears
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nan
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nan
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By Stephen Culp
NEW YORK, Oct 26 (Reuters) - The S&P 500 ended a three-day winning streak on Wednesday as dour earnings guidance added to mounting fears of a global economic slowdown.
But those fears, along with a smaller-than-expected interest rate hike from the Bank of Canada, continued to feed hopes that the Fed might consider easing the size of its rate hikes after its Nov. 1-2 policy meeting.
"Today the market is catching up with the move upward over the last week or so," said Matthew Keator, managing partner in the Keator Group, a wealth management firm in Lenox, Massachusetts. "There are still two Fed meetings ahead of us this year."
Paul Kim, Chief Executive Officer at Simplify ETFs in New York, agrees.
"Central banks are starting to blink," Kim said. "It’s part of the larger trend and supports the pivot narrative."
The S&P 500 and the Nasdaq ended in negative territory, dragged lower by market-leading tech and tech-adjacent companies following results from Microsoft MSFT.O and Alphabet GOOGL.O.
Those gloomy reports brought worries over an impending global economic downturn from simmer to boil, and spread to other high profile megacaps, two of which - Apple Inc AAPL.O and Meta Platforms META.O - are expected to post results shortly.
Sales of newly constructed U.S. homes plunged in September while mortgage rates hit their highest level in more than two decades, adding to the growing pile of data suggesting a softening economic landscape.
According to preliminary data, the S&P 500 .SPX lost 28.89 points, or 0.75%, to end at 3,830.22 points, while the Nasdaq Composite .IXIC lost 229.67 points, or 2.05%, to 10,969.45. The Dow Jones Industrial Average .DJI rose 3.49 points, or 0.01%, to 31,840.23.
Third quarter earnings season has shifted into high gear, with 170 of the companies in the S&P 500 having reported. Of those, 75% have delivered consensus-beating results, according to Refinitiv.
But they have a low bar to clear. Analysts see aggregate S&P 500 earnings growth of 2.3%, down from 4.5% at the beginning of the month, per Refinitiv.
Boeing Co BA.Nreported a deeper than expected third quarter loss, sending its shares sliding.
On the plus side, Visa Inc V.N advanced in the wake of the consumer credit company's profit beat.
GRAPHIC-Central banks ramp up fight against inflationhttps://tmsnrt.rs/3Fk71qW
(Reporting by Stephen Culp; Additional reporting by Amruta Khandekar and Shreyashi Sanyal in Bengaluru; editing by Grant McCool)
((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.
|
Those gloomy reports brought worries over an impending global economic downturn from simmer to boil, and spread to other high profile megacaps, two of which - Apple Inc AAPL.O and Meta Platforms META.O - are expected to post results shortly. By Stephen Culp NEW YORK, Oct 26 (Reuters) - The S&P 500 ended a three-day winning streak on Wednesday as dour earnings guidance added to mounting fears of a global economic slowdown. Sales of newly constructed U.S. homes plunged in September while mortgage rates hit their highest level in more than two decades, adding to the growing pile of data suggesting a softening economic landscape.
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Those gloomy reports brought worries over an impending global economic downturn from simmer to boil, and spread to other high profile megacaps, two of which - Apple Inc AAPL.O and Meta Platforms META.O - are expected to post results shortly. By Stephen Culp NEW YORK, Oct 26 (Reuters) - The S&P 500 ended a three-day winning streak on Wednesday as dour earnings guidance added to mounting fears of a global economic slowdown. According to preliminary data, the S&P 500 .SPX lost 28.89 points, or 0.75%, to end at 3,830.22 points, while the Nasdaq Composite .IXIC lost 229.67 points, or 2.05%, to 10,969.45.
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Those gloomy reports brought worries over an impending global economic downturn from simmer to boil, and spread to other high profile megacaps, two of which - Apple Inc AAPL.O and Meta Platforms META.O - are expected to post results shortly. But those fears, along with a smaller-than-expected interest rate hike from the Bank of Canada, continued to feed hopes that the Fed might consider easing the size of its rate hikes after its Nov. 1-2 policy meeting. According to preliminary data, the S&P 500 .SPX lost 28.89 points, or 0.75%, to end at 3,830.22 points, while the Nasdaq Composite .IXIC lost 229.67 points, or 2.05%, to 10,969.45.
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Those gloomy reports brought worries over an impending global economic downturn from simmer to boil, and spread to other high profile megacaps, two of which - Apple Inc AAPL.O and Meta Platforms META.O - are expected to post results shortly. By Stephen Culp NEW YORK, Oct 26 (Reuters) - The S&P 500 ended a three-day winning streak on Wednesday as dour earnings guidance added to mounting fears of a global economic slowdown. But those fears, along with a smaller-than-expected interest rate hike from the Bank of Canada, continued to feed hopes that the Fed might consider easing the size of its rate hikes after its Nov. 1-2 policy meeting.
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18716.0
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2022-10-26 00:00:00 UTC
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US STOCKS-S&P 500 ends lower, snapping rally on mounting slowdown fears
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-ends-lower-snapping-rally-on-mounting-slowdown-fears-0
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nan
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nan
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By Stephen Culp
NEW YORK, Oct 26 (Reuters) - The S&P 500 ended a three-day winning streak on Wednesday, closing in negative territory as gloomy earnings guidance added to growing fears of a global economic slowdown.
But those fears, along with a smaller-than-expected interest rate hike from the Bank of Canada, continued to feed hopes that the Fed might consider easing the size of its rate hikes after its Nov. 1-2 policy meeting.
"Today the market is catching up with the move upward over the last week or so," said Matthew Keator, managing partner in the Keator Group, a wealth management firm in Lenox, Massachusetts. "There are still two Fed meetings ahead of us this year."
Paul Kim, Chief Executive Officer at Simplify ETFs in New York, agrees.
"Central banks are starting to blink," Kim said. "It’s part of the larger trend and supports the pivot narrative."
The S&P 500 and the Nasdaq ended in negative territory, dragged lower by market-leading tech and tech-adjacent companies following results from Microsoft MSFT.O and Alphabet GOOGL.O. The blue-chip Dow eked out a nominal gain.
Microsoft and Alphabet shares tanked, falling 7.7% and 9.1%, respectively.
Those downbeat reports brought worries over an impending global economic downturn from simmer to boil, and spread to other high profile megacaps.
Sales of newly constructed U.S. homes plunged in September while mortgage rates hit their highest level in more than two decades, adding to the growing pile of data suggesting a softening economic landscape.
The Dow Jones Industrial Average .DJI rose 2.37 points, or 0.01%, to 31,839.11, the S&P 500 .SPX lost 28.51 points, or 0.74%, to 3,830.6 and the Nasdaq Composite .IXIC dropped 228.12 points, or 2.04%, to 10,970.99.
Third quarter earnings season has shifted into high gear, with 170 of the companies in the S&P 500 having reported. Of those, 75% have delivered consensus-beating results, according to Refinitiv.
But they have a low bar to clear. Analysts see aggregate S&P 500 earnings growth of 2.3%, down from 4.5% at the beginning of the month, per Refinitiv.
Boeing Co BA.Nreported a deeper than expected third quarter loss, sending its shares sliding 8.8%.
On the plus side, Visa Inc V.N rose 4.6% in the wake of the consumer credit company's profit beat.
Facebook parent Meta Inc META.O shares fell more than 12% in after-hours trading after posting results.
Advancing issues outnumbered declining ones on the NYSE by a 1.71-to-1 ratio; on Nasdaq, a 1.41-to-1 ratio favored advancers.
The S&P 500 posted 25 new 52-week highs and 3 new lows; the Nasdaq Composite recorded 113 new highs and 77 new lows.
Volume on U.S. exchanges was 12.26 billion shares, compared with the 11.60 billion average for the full session over the last 20 trading days.
GRAPHIC-Central banks ramp up fight against inflationhttps://tmsnrt.rs/3Fk71qW
(Reporting by Stephen Culp; Additional reporting by Amruta Khandekar and Shreyashi Sanyal in Bengaluru; editing by Grant McCool)
((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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By Stephen Culp NEW YORK, Oct 26 (Reuters) - The S&P 500 ended a three-day winning streak on Wednesday, closing in negative territory as gloomy earnings guidance added to growing fears of a global economic slowdown. Those downbeat reports brought worries over an impending global economic downturn from simmer to boil, and spread to other high profile megacaps. Sales of newly constructed U.S. homes plunged in September while mortgage rates hit their highest level in more than two decades, adding to the growing pile of data suggesting a softening economic landscape.
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By Stephen Culp NEW YORK, Oct 26 (Reuters) - The S&P 500 ended a three-day winning streak on Wednesday, closing in negative territory as gloomy earnings guidance added to growing fears of a global economic slowdown. The S&P 500 and the Nasdaq ended in negative territory, dragged lower by market-leading tech and tech-adjacent companies following results from Microsoft MSFT.O and Alphabet GOOGL.O. The S&P 500 posted 25 new 52-week highs and 3 new lows; the Nasdaq Composite recorded 113 new highs and 77 new lows.
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By Stephen Culp NEW YORK, Oct 26 (Reuters) - The S&P 500 ended a three-day winning streak on Wednesday, closing in negative territory as gloomy earnings guidance added to growing fears of a global economic slowdown. The S&P 500 posted 25 new 52-week highs and 3 new lows; the Nasdaq Composite recorded 113 new highs and 77 new lows. GRAPHIC-Central banks ramp up fight against inflationhttps://tmsnrt.rs/3Fk71qW (Reporting by Stephen Culp; Additional reporting by Amruta Khandekar and Shreyashi Sanyal in Bengaluru; editing by Grant McCool) ((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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Third quarter earnings season has shifted into high gear, with 170 of the companies in the S&P 500 having reported. Of those, 75% have delivered consensus-beating results, according to Refinitiv. The S&P 500 posted 25 new 52-week highs and 3 new lows; the Nasdaq Composite recorded 113 new highs and 77 new lows.
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18717.0
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2022-10-26 00:00:00 UTC
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Meta Platforms beats estimates for quarterly revenue
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AAPL
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https://www.nasdaq.com/articles/meta-platforms-beats-estimates-for-quarterly-revenue-0
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nan
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nan
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adds forecast, net income
Oct 26 (Reuters) - Facebook-parent Meta Platforms Inc META.O beat estimates for quarterly revenue on Wednesday as its dominance of the online ad market helped it attract a steady stream of business from recession-wary companies looking to reach a wider audience.
Revenue in the third quarter fell for a second straight time to $27.71 billion from $29.01 billion.
Analysts on average expected revenue of $27.38 billion, according to Refinitiv data.
The company forecast fourth-quarter revenue between $30 billion and $32.50 billion, compared with estimates of $32.20 billion, according to Refinitiv data.
Net income fell to $4.40 billion, or $1.64 per share, from $9.19 billion, or $3.22 per share, a year earlier.
(Reporting by Chavi Mehta in Bengaluru; Editing by Anil D'Silva)
((Chavi.Mehta@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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adds forecast, net income Oct 26 (Reuters) - Facebook-parent Meta Platforms Inc META.O beat estimates for quarterly revenue on Wednesday as its dominance of the online ad market helped it attract a steady stream of business from recession-wary companies looking to reach a wider audience. Analysts on average expected revenue of $27.38 billion, according to Refinitiv data. (Reporting by Chavi Mehta in Bengaluru; Editing by Anil D'Silva) ((Chavi.Mehta@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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adds forecast, net income Oct 26 (Reuters) - Facebook-parent Meta Platforms Inc META.O beat estimates for quarterly revenue on Wednesday as its dominance of the online ad market helped it attract a steady stream of business from recession-wary companies looking to reach a wider audience. The company forecast fourth-quarter revenue between $30 billion and $32.50 billion, compared with estimates of $32.20 billion, according to Refinitiv data. Net income fell to $4.40 billion, or $1.64 per share, from $9.19 billion, or $3.22 per share, a year earlier.
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The company forecast fourth-quarter revenue between $30 billion and $32.50 billion, compared with estimates of $32.20 billion, according to Refinitiv data. Net income fell to $4.40 billion, or $1.64 per share, from $9.19 billion, or $3.22 per share, a year earlier. (Reporting by Chavi Mehta in Bengaluru; Editing by Anil D'Silva) ((Chavi.Mehta@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Revenue in the third quarter fell for a second straight time to $27.71 billion from $29.01 billion. The company forecast fourth-quarter revenue between $30 billion and $32.50 billion, compared with estimates of $32.20 billion, according to Refinitiv data. Net income fell to $4.40 billion, or $1.64 per share, from $9.19 billion, or $3.22 per share, a year earlier.
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18718.0
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2022-10-26 00:00:00 UTC
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After Hours Most Active for Oct 26, 2022 : META, SNAP, TQQQ, AAPL, QQQ, WFC, F, SQQQ, RTO, BP, FDX, AMZN
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-oct-26-2022-%3A-meta-snap-tqqq-aapl-qqq-wfc-f-sqqq-rto-bp-fdx
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -8.93 to 11,396.97. The total After hours volume is currently 87,396,454 shares traded.
The following are the most active stocks for the after hours session:
Meta Platforms, Inc. (META) is -15.12 at $114.70, with 14,035,386 shares traded. As reported by Zacks, the current mean recommendation for META is in the "buy range".
Snap Inc. (SNAP) is -0.18 at $9.40, with 11,374,521 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 94% of the target price of $10.
ProShares UltraPro QQQ (TQQQ) is -0.01 at $21.05, with 4,452,443 shares traded. This represents a 28.98% increase from its 52 Week Low.
Apple Inc. (AAPL) is -0.04 at $149.31, with 3,155,265 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. AAPL is scheduled to provide an earnings report on 10/27/2022, for the fiscal quarter ending Sep2022. The consensus earnings per share forecast is 1.26 per share, which represents a 124 percent increase over the EPS one Year Ago
Invesco QQQ Trust, Series 1 (QQQ) is -0.01 at $277.92, with 3,104,171 shares traded. This represents a 9.31% increase from its 52 Week Low.
Wells Fargo & Company (WFC) is unchanged at $45.70, with 2,639,996 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 $1.28. As reported by Zacks, the current mean recommendation for WFC is in the "buy range".
Ford Motor Company (F) is -0.23 at $12.59, with 2,603,895 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 $0.57. Smarter Analyst Reports: Friday’s Pre-Market: Here’s What You Need to Know Before the Market Opens
ProShares UltraPro Short QQQ (SQQQ) is +0.01 at $52.33, with 2,295,496 shares traded. This represents a 85.9% increase from its 52 Week Low.
Rentokil Initial plc (RTO) is unchanged at $31.37, with 2,177,428 shares traded., following a 52-week high recorded in today's regular session.
BP p.l.c. (BP) is unchanged at $32.31, with 2,152,811 shares traded.BP is scheduled to provide an earnings report on 11/1/2022, for the fiscal quarter ending Sep2022. The consensus earnings per share forecast is 1.94 per share, which represents a 99 percent increase over the EPS one Year Ago
FedEx Corporation (FDX) is -2.16 at $155.80, with 2,027,967 shares traded. FDX's current last sale is 79.69% of the target price of $195.5.
Amazon.com, Inc. (AMZN) is -0.41 at $115.25, with 1,854,999 shares traded.AMZN is scheduled to provide an earnings report on 10/27/2022, for the fiscal quarter ending Sep2022. The consensus earnings per share forecast is 0.22 per share, which represents a 31 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 -0.04 at $149.31, with 3,155,265 shares traded. AAPL is scheduled to provide an earnings report on 10/27/2022, for the fiscal quarter ending Sep2022. Rentokil Initial plc (RTO) is unchanged at $31.37, with 2,177,428 shares traded., following a 52-week high recorded in today's regular session.
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Apple Inc. (AAPL) is -0.04 at $149.31, with 3,155,265 shares traded. AAPL is scheduled to provide an earnings report on 10/27/2022, for the fiscal quarter ending Sep2022. The consensus earnings per share forecast is 1.26 per share, which represents a 124 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.04 at $149.31, with 3,155,265 shares traded. AAPL is scheduled to provide an earnings report on 10/27/2022, for the fiscal quarter ending Sep2022. The consensus earnings per share forecast is 1.26 per share, which represents a 124 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.04 at $149.31, with 3,155,265 shares traded. AAPL is scheduled to provide an earnings report on 10/27/2022, for the fiscal quarter ending Sep2022. 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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18719.0
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2022-10-26 00:00:00 UTC
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Will iPhone Revenue Boost Apple (AAPL) Stock?
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AAPL
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https://www.nasdaq.com/articles/will-iphone-revenue-boost-apple-aapl-stock
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nan
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nan
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All eyes are on Apple AAPL as it is set to report its fiscal fourth quarter earnings Thursday, October 27. Diversity and expansion in its paid services have helped boost the company’s top and bottom lines as AAPL stock has outperformed the Nasdaq this year. AAPL has also outperformed the broader market.
Similar to other big tech giants like Alphabet GOOGL and Amazon AMZN, Apple has continued to innovate. Apple’s iCloud services, App store, Apple Music, Apple Pay, digital content, and licensing have expanded the company’s revenue streams.
Image Source: Zacks Investment Research
Despite the expansion, Apple’s business is still centered around its flagship iPhone. While diversification among its businesses has been rewarding, going into its fiscal Q4 earnings a strong boost from its iPhone revenue could help the stock go higher.
This will be especially true amid much uncertainty in the market and treacherous operating environments for technology companies. The ability to show an increase in iPhone revenue will surely be noted by Wall Street and get investors optimistic about the stock because sales for many products are declining amid such a high inflationary environment.
Image Source: Zacks Investment Research
iPhone revenue deserves some of the credit for AAPL outperforming the Nasdaq this year as many technology stocks have suffered. From the chart above we can see that the sales surprises for the iPhone have decreased but have still been positive despite the economy.
iPhone revenue has been up in the last two quarters, giving AAPL stock some assistance in its last two earnings beats. This also helped the stock stay afloat during the second quarter as inflation concerns continued.
Last quarter, iPhone revenue was $40.6 billion, up 3%. Investors will hope this continues, with the Zacks Estimate for iPhone revenue during the current quarter at $42.7 billion and nearly half of the company's total revenue. This would also be a 10% increase and should give the company’s fiscal Q4 earnings a nice boost.
Fiscal Q4 Outlook
The Zacks Consensus Estimate for Apple’s fiscal Q4 earnings is $1.26 a share, which would represent a 1% increase from Q4 2021. Sales for Q4 are expected to be up 6% at $88.47 billion. Earnings estimates for the period have gone down from $1.31 at the beginning of the quarter but have started to rise again over the last week.
Year over year, AAPL earnings are expected to rise 9% in 2022 and another 6% in FY23 at $6.50 per share. Top line growth is also expected, with sales set to be up 7% this year and another 5% in FY23 to $412.57 billion.
Performance & Valuation
Apple is down -15% YTD to outperform the S&P 500’s -19% and the Nasdaq’s -28%. Even better, over the last decade, AAPL is up +631% to crush the benchmark and the Nasdaq.
Image Source: Zacks Investment Research
AAPL has a P/E of 23.4X. This is well above the industry average of 6.7X. However, Wall Street has historically been willing to pay a premium for Apple stock for its growth prospects, innovation, and industry dominance. AAPL trades at a discount to its decade-high of 38.6X and is slightly above the median of 15.5X. And AAPL’s price per share might be attractive to some considering the stock is two years removed from a 4-1 split in 2020, trading at around $150 a share.
Image Source: Zacks Investment Research
Bottom Line
iPhone revenue could play a huge role in AAPL posting another earnings beat amid economic uncertainty. Revenue from the iPhone has traditionally been the company’s bread and butter and showing strength in this segment could be a catalyst for Apple stock and boost investor optimism.
AAPL currently lands a Zacks Rank #3 (Hold). Investors may want to consider companies with good cash flow and stronger balance sheets to support themselves during economic downturns. Apple fits this bill and does offer an annualized dividend yield of 0.60% at $0.92 per share. And the average Zacks Price target offers 21% upside from current levels.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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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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Image Source: Zacks Investment Research iPhone revenue deserves some of the credit for AAPL outperforming the Nasdaq this year as many technology stocks have suffered. Image Source: Zacks Investment Research Bottom Line iPhone revenue could play a huge role in AAPL posting another earnings beat amid economic uncertainty. All eyes are on Apple AAPL as it is set to report its fiscal fourth quarter earnings Thursday, October 27.
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Diversity and expansion in its paid services have helped boost the company’s top and bottom lines as AAPL stock has outperformed the Nasdaq this year. Image Source: Zacks Investment Research iPhone revenue deserves some of the credit for AAPL outperforming the Nasdaq this year as many technology stocks have suffered. Image Source: Zacks Investment Research Bottom Line iPhone revenue could play a huge role in AAPL posting another earnings beat amid economic uncertainty.
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Image Source: Zacks Investment Research iPhone revenue deserves some of the credit for AAPL outperforming the Nasdaq this year as many technology stocks have suffered. iPhone revenue has been up in the last two quarters, giving AAPL stock some assistance in its last two earnings beats. Image Source: Zacks Investment Research Bottom Line iPhone revenue could play a huge role in AAPL posting another earnings beat amid economic uncertainty.
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Diversity and expansion in its paid services have helped boost the company’s top and bottom lines as AAPL stock has outperformed the Nasdaq this year. Image Source: Zacks Investment Research iPhone revenue deserves some of the credit for AAPL outperforming the Nasdaq this year as many technology stocks have suffered. All eyes are on Apple AAPL as it is set to report its fiscal fourth quarter earnings Thursday, October 27.
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18720.0
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2022-10-26 00:00:00 UTC
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IVV, AAPL, MSFT, GOOG: Large Inflows Detected at ETF
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AAPL
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https://www.nasdaq.com/articles/ivv-aapl-msft-goog%3A-large-inflows-detected-at-etf
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $1.6 billion dollar inflow -- that's a 0.5% increase week over week in outstanding units (from 751,800,000 to 755,900,000). Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is off about 1.1%, Microsoft Corporation (Symbol: MSFT) is down about 6.9%, and Alphabet Inc (Symbol: GOOG) is lower by about 7.5%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average:
Looking at the chart above, IVV's low point in its 52 week range is $349.53 per share, with $482.07 as the 52 week high point — that compares with a last trade of $386.25. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Free Report: Top 8%+ Dividends (paid monthly)
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is off about 1.1%, Microsoft Corporation (Symbol: MSFT) is down about 6.9%, and Alphabet Inc (Symbol: GOOG) is lower by about 7.5%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $349.53 per share, with $482.07 as the 52 week high point — that compares with a last trade of $386.25. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is off about 1.1%, Microsoft Corporation (Symbol: MSFT) is down about 6.9%, and Alphabet Inc (Symbol: GOOG) is lower by about 7.5%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $349.53 per share, with $482.07 as the 52 week high point — that compares with a last trade of $386.25. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is off about 1.1%, Microsoft Corporation (Symbol: MSFT) is down about 6.9%, and Alphabet Inc (Symbol: GOOG) is lower by about 7.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $1.6 billion dollar inflow -- that's a 0.5% increase week over week in outstanding units (from 751,800,000 to 755,900,000). For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $349.53 per share, with $482.07 as the 52 week high point — that compares with a last trade of $386.25.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is off about 1.1%, Microsoft Corporation (Symbol: MSFT) is down about 6.9%, and Alphabet Inc (Symbol: GOOG) is lower by about 7.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $1.6 billion dollar inflow -- that's a 0.5% increase week over week in outstanding units (from 751,800,000 to 755,900,000). For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $349.53 per share, with $482.07 as the 52 week high point — that compares with a last trade of $386.25.
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18721.0
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2022-10-26 00:00:00 UTC
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Meta Platforms beats estimates for quarterly revenue
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AAPL
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https://www.nasdaq.com/articles/meta-platforms-beats-estimates-for-quarterly-revenue
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nan
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nan
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Oct 26 (Reuters) - Facebook-parent Meta Platforms Inc META.O beat estimates for quarterly revenue on Wednesday as its dominance of the online ad market helped it attract a steady stream of business from recession-wary companies looking to reach a wider audience.
Revenue in the third quarter fell for a second straight time to $27.71 billion from $29.01 billion.
Analysts on average expected revenue of $27.38 billion, according to Refinitiv data.
(Reporting by Chavi Mehta in Bengaluru; Editing by Anil D'Silva)
((Chavi.Mehta@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Oct 26 (Reuters) - Facebook-parent Meta Platforms Inc META.O beat estimates for quarterly revenue on Wednesday as its dominance of the online ad market helped it attract a steady stream of business from recession-wary companies looking to reach a wider audience. Analysts on average expected revenue of $27.38 billion, according to Refinitiv data. (Reporting by Chavi Mehta in Bengaluru; Editing by Anil D'Silva) ((Chavi.Mehta@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Oct 26 (Reuters) - Facebook-parent Meta Platforms Inc META.O beat estimates for quarterly revenue on Wednesday as its dominance of the online ad market helped it attract a steady stream of business from recession-wary companies looking to reach a wider audience. Revenue in the third quarter fell for a second straight time to $27.71 billion from $29.01 billion. Analysts on average expected revenue of $27.38 billion, according to Refinitiv data.
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Oct 26 (Reuters) - Facebook-parent Meta Platforms Inc META.O beat estimates for quarterly revenue on Wednesday as its dominance of the online ad market helped it attract a steady stream of business from recession-wary companies looking to reach a wider audience. Revenue in the third quarter fell for a second straight time to $27.71 billion from $29.01 billion. (Reporting by Chavi Mehta in Bengaluru; Editing by Anil D'Silva) ((Chavi.Mehta@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Oct 26 (Reuters) - Facebook-parent Meta Platforms Inc META.O beat estimates for quarterly revenue on Wednesday as its dominance of the online ad market helped it attract a steady stream of business from recession-wary companies looking to reach a wider audience. Revenue in the third quarter fell for a second straight time to $27.71 billion from $29.01 billion. Analysts on average expected revenue of $27.38 billion, according to Refinitiv data.
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18722.0
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2022-10-26 00:00:00 UTC
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Big Tech tumbles as results set off alarm bells
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AAPL
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https://www.nasdaq.com/articles/big-tech-tumbles-as-results-set-off-alarm-bells
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nan
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nan
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Adds analyst comments, background; updates share movement
Oct 26 (Reuters) - Gloomy results from Alphabet and Microsoft stoked fears of a global economic downturn and derailed an earnings-led surge in stock markets on Wednesday, while setting the tone for results from other megacap technology giants.
The Nasdaq .IXIC tumbled nearly 2% as the results underscored the fallout of strong dollar and weak demand on the tech sector against the backdrop of high inflation and rising borrowing costs.
Shares of the Google-parent GOOGL.O and Microsoft MSFT.O fell about 8% in early trading. Meta Platforms Inc META.O, which will report after markets close, was down 4%, while Amazon.com Inc AMZN.O lost 4% and Apple Inc AAPL.O 1% in the run-up to their results on Thursday.
Heavyweights Netflix NFLX.O, Meta, Amazon, Microsoft, Alphabet and Apple have already lost a combined market value of more than $2.5 trillion so far this year and were set to shed another $330 billion on Wednesday.
"The results of the big technology firms were seen as a key determining factor in market sentiment going into the U.S. third quarter reporting season and both Microsoft and Alphabet have given investors reason to worry," said Laith Khalaf, head of investment analysis at AJ Bell.
Alphabet missed Wall Street's target for revenue growth in the third quarter as ad sales remained weak, while inflation and a strong dollar led Microsoft to report its slowest topline growth in five years.
At least 21 analysts cut their price target on Alphabet, lowering it by as much as $36, while 17 of them brought down their targets on Microsoft.
With analysts predicting a pullback in budgets for advertising due to rising prices, investors fear that Meta's business too could come under pressure as it revenue relies heavily on ads.
"Investors will be bracing for Meta's results with some trepidation, with a common thought being that if Google's struggling, the rest of the tech pack faces a marathon climb," said Sophie Lund-Yates, an analyst at Hargreaves Lansdown.
For Meta, Google Search's soft results are worrisome while YouTube and Snap weakness suggest that macro and ad targeting challenges continued in the third quarter, JMP Securities analyst Andrew Boone wrote.
Meanwhile, a slowdown in growth at Azure, Microsoft's cloud platform and one of its most successful businesses, raised worries around Amazon's cloud business.
While most Big Tech stocks have edged higher in the past few weeks, overall it has been a bleak year for the sector that has lost roughly 15% to 60% of their value.
Wednesday's selloff also hit Europe's tech index .SX8P, falling 2.3% to lead sectoral losses in the region.
Microsoft, Alphabet revenues grow slower as recession fears loomhttps://tmsnrt.rs/3zkK4A2
(Reporting by Yuvraj Malik, Akash Sriram and Nivedita Balu in Bengaluru; Editing by Saumyadeb Chakrabarty and Arun Koyyur)
((yuvraj.malik@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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Meta Platforms Inc META.O, which will report after markets close, was down 4%, while Amazon.com Inc AMZN.O lost 4% and Apple Inc AAPL.O 1% in the run-up to their results on Thursday. "The results of the big technology firms were seen as a key determining factor in market sentiment going into the U.S. third quarter reporting season and both Microsoft and Alphabet have given investors reason to worry," said Laith Khalaf, head of investment analysis at AJ Bell. "Investors will be bracing for Meta's results with some trepidation, with a common thought being that if Google's struggling, the rest of the tech pack faces a marathon climb," said Sophie Lund-Yates, an analyst at Hargreaves Lansdown.
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Meta Platforms Inc META.O, which will report after markets close, was down 4%, while Amazon.com Inc AMZN.O lost 4% and Apple Inc AAPL.O 1% in the run-up to their results on Thursday. Heavyweights Netflix NFLX.O, Meta, Amazon, Microsoft, Alphabet and Apple have already lost a combined market value of more than $2.5 trillion so far this year and were set to shed another $330 billion on Wednesday. Alphabet missed Wall Street's target for revenue growth in the third quarter as ad sales remained weak, while inflation and a strong dollar led Microsoft to report its slowest topline growth in five years.
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Meta Platforms Inc META.O, which will report after markets close, was down 4%, while Amazon.com Inc AMZN.O lost 4% and Apple Inc AAPL.O 1% in the run-up to their results on Thursday. Adds analyst comments, background; updates share movement Oct 26 (Reuters) - Gloomy results from Alphabet and Microsoft stoked fears of a global economic downturn and derailed an earnings-led surge in stock markets on Wednesday, while setting the tone for results from other megacap technology giants. "The results of the big technology firms were seen as a key determining factor in market sentiment going into the U.S. third quarter reporting season and both Microsoft and Alphabet have given investors reason to worry," said Laith Khalaf, head of investment analysis at AJ Bell.
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Meta Platforms Inc META.O, which will report after markets close, was down 4%, while Amazon.com Inc AMZN.O lost 4% and Apple Inc AAPL.O 1% in the run-up to their results on Thursday. Heavyweights Netflix NFLX.O, Meta, Amazon, Microsoft, Alphabet and Apple have already lost a combined market value of more than $2.5 trillion so far this year and were set to shed another $330 billion on Wednesday. Alphabet missed Wall Street's target for revenue growth in the third quarter as ad sales remained weak, while inflation and a strong dollar led Microsoft to report its slowest topline growth in five years.
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18723.0
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2022-10-26 00:00:00 UTC
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PREVIEW-Apple's holiday quarter may face pressure from inflation, weak China demand
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AAPL
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https://www.nasdaq.com/articles/preview-apples-holiday-quarter-may-face-pressure-from-inflation-weak-china-demand
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nan
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nan
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By Nivedita Balu and Aditya Soni
Oct 24 (Reuters) - Apple Inc's AAPL.O earnings report on Thursday may show the best quarterly sales growth for iPhones this year but it could still foreshadow a difficult holiday period as China demand slows and inflation hits multi-decade highs.
Analysts expect iPhone sales to rise 11% in the fiscal fourth quarter ended September, according to Refinitiv, thanks to consumers upgrading to the company's premium-priced Pro phones. However, growth is estimated to slow to just 2% in the crucial holiday quarter.
The early days of the iPhone 14 product cycle have indicated lackluster demand for base models and strong appetite for the high-end variants, Synovus Trust's Dan Morgan said.
Morgan added that he expected "the weaker consumer spending environment to impact the earnings trajectory".
The latest earnings season has shown that even global tech giants, including Google-parent Alphabet Inc GOOGL.O, are not immune to macroeconomic pressures as a strong dollar becomes a drag on their growth and businesses pull back on spending .
Analysts believe Apple's move to leave prices unchanged on its latest Pro models is driving strong demand. The models are also aimed at affluent shoppers who are less vulnerable to inflation.
"The iPhone 14 Pro series boasts improved specifications yet unit prices are the same as last year's models, making pre-orders for the Pro series highly popular," market research firm TrendForce said.
CONTEXT
Analysts are expecting Apple to provide "guidelines" or an indication of how iPhone 14 is selling rather than a financial forecast.
The holiday quarter is typically Apple's biggest and accounts for about 30% of its annual revenue, since it launches iPhones and Macbooks ahead of the shopping season.
Macbook sales are expected to fall 5% in the holiday quarter, after a likely rise of about 2% in the September-ended quarter.
"We worry that Apple may have been a COVID beneficiary, amid work/learn from home and strong consumer spending, which could reverse, particularly as consumers' spending priorities change and rising rates potentially pressure demand," Bernstein analyst Toni Sacconaghi said.
Focus will be on Apple's services business, where revenue is set to rise 10% in the fourth quarter, as the company looks to dial up its streaming service. While Apple TV has generated critically acclaimed hits, it lacks the viewership of rival platforms such as Netflix Inc NFLX.O.
FUNDAMENTALS
* Q4 revenue is expected to grow 6.7% to $88.9 billion; Q1 revenue expected to grow 3.6% to $128.38 billion, the slowest growth rate for the holiday quarter since the pandemic
* Analysts predict Q4 profit of $1.27 per share
WALL STREET SENTIMENT
* Of 43 analysts covering the stock, 37 rate it "buy" or higher, 5 "hold" and 1 "sell"
* The stock is down about 16% this year but has still outperformed others in the trillion-dollar club as well as those in FAANG.
iPhone sales will likely stagnate amid inflation worrieshttps://tmsnrt.rs/3W2k5XH
Apple fares better than other high-growth tech stocks Apple fares better than other high-growth tech stockshttps://tmsnrt.rs/3FjAOQg
(Reporting by Nivedita Balu in Bengaluru; Editing by Anil D'Silva)
((Nivedita.Balu@thomsonreuters.com; Twitter: @niveditabalu;))
The views and 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 Nivedita Balu and Aditya Soni Oct 24 (Reuters) - Apple Inc's AAPL.O earnings report on Thursday may show the best quarterly sales growth for iPhones this year but it could still foreshadow a difficult holiday period as China demand slows and inflation hits multi-decade highs. The early days of the iPhone 14 product cycle have indicated lackluster demand for base models and strong appetite for the high-end variants, Synovus Trust's Dan Morgan said. The latest earnings season has shown that even global tech giants, including Google-parent Alphabet Inc GOOGL.O, are not immune to macroeconomic pressures as a strong dollar becomes a drag on their growth and businesses pull back on spending .
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By Nivedita Balu and Aditya Soni Oct 24 (Reuters) - Apple Inc's AAPL.O earnings report on Thursday may show the best quarterly sales growth for iPhones this year but it could still foreshadow a difficult holiday period as China demand slows and inflation hits multi-decade highs. Analysts expect iPhone sales to rise 11% in the fiscal fourth quarter ended September, according to Refinitiv, thanks to consumers upgrading to the company's premium-priced Pro phones. * Q4 revenue is expected to grow 6.7% to $88.9 billion; Q1 revenue expected to grow 3.6% to $128.38 billion, the slowest growth rate for the holiday quarter since the pandemic * Analysts predict Q4 profit of $1.27 per share
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By Nivedita Balu and Aditya Soni Oct 24 (Reuters) - Apple Inc's AAPL.O earnings report on Thursday may show the best quarterly sales growth for iPhones this year but it could still foreshadow a difficult holiday period as China demand slows and inflation hits multi-decade highs. * Q4 revenue is expected to grow 6.7% to $88.9 billion; Q1 revenue expected to grow 3.6% to $128.38 billion, the slowest growth rate for the holiday quarter since the pandemic * Analysts predict Q4 profit of $1.27 per share iPhone sales will likely stagnate amid inflation worrieshttps://tmsnrt.rs/3W2k5XH Apple fares better than other high-growth tech stocks Apple fares better than other high-growth tech stockshttps://tmsnrt.rs/3FjAOQg (Reporting by Nivedita Balu in Bengaluru; Editing by Anil D'Silva) ((Nivedita.Balu@thomsonreuters.com; Twitter: @niveditabalu;)) The views and 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 Nivedita Balu and Aditya Soni Oct 24 (Reuters) - Apple Inc's AAPL.O earnings report on Thursday may show the best quarterly sales growth for iPhones this year but it could still foreshadow a difficult holiday period as China demand slows and inflation hits multi-decade highs. Analysts believe Apple's move to leave prices unchanged on its latest Pro models is driving strong demand. Macbook sales are expected to fall 5% in the holiday quarter, after a likely rise of about 2% in the September-ended quarter.
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18724.0
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2022-10-26 00:00:00 UTC
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Should Franklin U.S. Large Cap Multifactor Index ETF (FLQL) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-franklin-u.s.-large-cap-multifactor-index-etf-flql-be-on-your-investing-radar-0
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nan
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nan
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If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Franklin U.S. Large Cap Multifactor Index ETF (FLQL), a passively managed exchange traded fund launched on 04/26/2017.
The fund is sponsored by Franklin Templeton Investments. It has amassed assets over $935.88 million, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.15%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 2.11%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 28.90% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.55% of total assets, followed by Microsoft Corp (MSFT) and Exxon Mobil Corp (XOM).
The top 10 holdings account for about 23.75% of total assets under management.
Performance and Risk
FLQL seeks to match the performance of the LibertyQ US Large Cap Equity Index before fees and expenses. The LibertyQ US Large Cap Equity Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the Russell 1000 Index over the long term by applying a multi-factor selection process, which is designed to select equity securities from the Russell 1000 Index that have favorable exposure to four investment style factors quality, value, momentum and low volatility.
The ETF has lost about -14.03% so far this year and is down about -8.83% in the last one year (as of 10/26/2022). In the past 52-week period, it has traded between $36.61 and $47.20.
The ETF has a beta of 0.91 and standard deviation of 23.16% for the trailing three-year period. With about 218 holdings, it effectively diversifies company-specific risk.
Alternatives
Franklin U.S. Large Cap Multifactor Index ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, FLQL is a great option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
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 $291.86 billion in assets, SPDR S&P 500 ETF has $359.17 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Franklin U.S. Large Cap Multifactor Index ETF (FLQL): 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
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 6.55% of total assets, followed by Microsoft Corp (MSFT) and Exxon Mobil Corp (XOM). Apple Inc. (AAPL): Free Stock Analysis Report It has amassed assets over $935.88 million, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.55% of total assets, followed by Microsoft Corp (MSFT) and Exxon Mobil Corp (XOM). Apple Inc. (AAPL): Free Stock Analysis Report If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Franklin U.S. Large Cap Multifactor Index ETF (FLQL), a passively managed exchange traded fund launched on 04/26/2017.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.55% of total assets, followed by Microsoft Corp (MSFT) and Exxon Mobil Corp (XOM). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives Franklin U.S. Large Cap Multifactor Index ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Apple Inc. (AAPL): Free Stock Analysis Report Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.55% of total assets, followed by Microsoft Corp (MSFT) and Exxon Mobil Corp (XOM). Because of this, FLQL is a great option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market.
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18725.0
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2022-10-26 00:00:00 UTC
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Will Slowing Services Growth Hurt Apple's (AAPL) Q4 Earnings?
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AAPL
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https://www.nasdaq.com/articles/will-slowing-services-growth-hurt-apples-aapl-q4-earnings
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nan
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nan
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Apple’s AAPL fourth-quarter fiscal 2022 results, to be reported on Oct 27, are expected to reflect the impacts of the sluggishness in the Services business.
The segment, which includes revenues from the App Store, Apple Music, iCloud, Apple Arcade, Apple TV+, Apple News+ and Apple Card, accounted for 23.6% of sales in third-quarter fiscal 2022.
Although Apple’s business primarily runs around its flagship iPhone, the Services portfolio has emerged as the company’s new cash cow.
Apple currently has more than 860 million paid subscribers across its Services portfolio. The App Store has been continuing to draw the attention of prominent developers from around the world, helping the company offer appealing apps to drive the App Store traffic, thereby expanding the subscriber base.
Apple expects Services revenues to be lower than that reported in the June-end quarter due to challenging macroeconomic conditions and unfavorable forex. Services revenues grew 12.1% year over year to $19.60 billion in the fiscal third quarter.
Apple Inc. Revenue (TTM)
Apple Inc. revenue-ttm | Apple Inc. Quote
Click here to know how Apple’s overall fiscal fourth-quarter results are likely to be.
Apple’s Non-iPhone Portfolio to Boost Revenues
Apple’s non-iPhone portfolio, which comprises Mac, iPad and Wearables, is expected to have aided its top-line growth in the fiscal fourth quarter.
This Zacks Rank #3 (Hold) company’s Mac is expected to have continued to win market share. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Per Gartner’s latest report, 68 million PCs were shipped in the third quarter (September-end) of 2022, down 19.5% from the year-ago period. Lenovo LNVGY, HP HPQ and Dell Technologies DELL witnessed 15.3%, 27.9% and 21.1% declines, respectively. Apple witnessed a 15.6% decline, much better than HP and Dell’s figures.
Overall, Lenovo remained the top vendor, with a market share of 25.2%. HP holds the second spot, with a market share of 18.7% in worldwide PC shipments. Dell’s market share was 17.7% in third-quarter 2022.
While Lenovo gained market share, both HP and Dell lost. Then again, Apple’s market share grew from 8.1% to 8.5%.
Apple made available the M2-supported MacBook Air in the fiscal fourth quarter. The 13-inch MacBook Pro was launched in the fiscal third quarter.
In the to-be-reported quarter, Apple expanded its self-service repair program for MacBook Air and MacBook Pro notebooks with the M1 family of chips.
The Zacks Consensus Estimate for Mac revenues for the fiscal fourth quarter is pegged at $9.01 billion, implying a 1.8% decline from the figure reported in the year-ago quarter.
Apple has also been riding on its strong market share in the wearables space. The company’s endeavor to add healthcare features to its smartwatch has been a game changer for the device, which faces significant competition from the likes of Google, Xiaomi, Samsung Electronics and Huawei Technologies.
The consensus estimate for Wearables, Home and Accessories revenues is pegged at $9.24 billion, indicating 5.2% growth from the figure reported in the year-ago quarter.
However, iPad sales are expected to decline in the to-be-reported quarter. The Zacks Consensus Estimate for the same is pegged at $7.62 billion, suggesting a 7.6% decline from the figure reported in the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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
HP Inc. (HPQ): Free Stock Analysis Report
Dell Technologies Inc. (DELL): Free Stock Analysis Report
Lenovo Group Ltd. (LNVGY): 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’s AAPL fourth-quarter fiscal 2022 results, to be reported on Oct 27, are expected to reflect the impacts of the sluggishness in the Services business. Apple Inc. (AAPL): Free Stock Analysis Report Apple expects Services revenues to be lower than that reported in the June-end quarter due to challenging macroeconomic conditions and unfavorable forex.
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Apple’s AAPL fourth-quarter fiscal 2022 results, to be reported on Oct 27, are expected to reflect the impacts of the sluggishness in the Services business. Apple Inc. (AAPL): Free Stock Analysis Report Lenovo LNVGY, HP HPQ and Dell Technologies DELL witnessed 15.3%, 27.9% and 21.1% declines, respectively.
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Apple’s AAPL fourth-quarter fiscal 2022 results, to be reported on Oct 27, are expected to reflect the impacts of the sluggishness in the Services business. Apple Inc. (AAPL): Free Stock Analysis Report The segment, which includes revenues from the App Store, Apple Music, iCloud, Apple Arcade, Apple TV+, Apple News+ and Apple Card, accounted for 23.6% of sales in third-quarter fiscal 2022.
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Apple’s AAPL fourth-quarter fiscal 2022 results, to be reported on Oct 27, are expected to reflect the impacts of the sluggishness in the Services business. Apple Inc. (AAPL): Free Stock Analysis Report Apple’s Non-iPhone Portfolio to Boost Revenues Apple’s non-iPhone portfolio, which comprises Mac, iPad and Wearables, is expected to have aided its top-line growth in the fiscal fourth quarter.
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18726.0
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2022-10-26 00:00:00 UTC
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Is iShares U.S. Equity Factor ETF (LRGF) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-ishares-u.s.-equity-factor-etf-lrgf-a-strong-etf-right-now-1
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nan
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nan
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A smart beta exchange traded fund, the iShares U.S. Equity Factor ETF (LRGF) debuted on 04/28/2015, and offers broad exposure to the Style Box - All Cap Value category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
LRGF is managed by Blackrock, and this fund has amassed over $1.08 billion, which makes it one of the largest ETFs in the Style Box - All Cap Value. This particular fund seeks to match the performance of the MSCI USA Diversified Multiple-Factor Index before fees and expenses.
The STOXX U.S. Equity Factor Index composes of U.S. large and mid-capitalization stocks that have favourable exposure to target style factors subject to constraints.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.08%, making it one of the least expensive products in the space.
The fund has a 12-month trailing dividend yield of 1.75%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Representing 27.80% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Healthcare and Financials round out the top three.
Taking into account individual holdings, Apple Inc (AAPL) accounts for about 6.62% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
LRGF's top 10 holdings account for about 23.12% of its total assets under management.
Performance and Risk
Year-to-date, the iShares U.S. Equity Factor ETF has lost about -15.06% so far, and is down about -11.22% over the last 12 months (as of 10/26/2022). LRGF has traded between $36.22 and $46.80 in this past 52-week period.
The fund has a beta of 0.97 and standard deviation of 25.13% for the trailing three-year period, which makes LRGF a medium risk choice in this particular space. With about 311 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares U.S. Equity Factor ETF is an excellent option for investors seeking to outperform the Style Box - All Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
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 $7.10 billion in assets, iShares Core S&P U.S. Value ETF has $11.77 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.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares U.S. Equity Factor ETF (LRGF): 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
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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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 6.62% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report A smart beta exchange traded fund, the iShares U.S. Equity Factor ETF (LRGF) debuted on 04/28/2015, and offers broad exposure to the Style Box - All Cap Value category of the market.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 6.62% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report A smart beta exchange traded fund, the iShares U.S. Equity Factor ETF (LRGF) debuted on 04/28/2015, and offers broad exposure to the Style Box - All Cap Value category of the market.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 6.62% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report A smart beta exchange traded fund, the iShares U.S. Equity Factor ETF (LRGF) debuted on 04/28/2015, and offers broad exposure to the Style Box - All Cap Value category of the market.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 6.62% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report A smart beta exchange traded fund, the iShares U.S. Equity Factor ETF (LRGF) debuted on 04/28/2015, and offers broad exposure to the Style Box - All Cap Value category of the market.
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18727.0
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2022-10-26 00:00:00 UTC
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Target Expands Collaboration With Apple To Triple Apple At Target Locations
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AAPL
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https://www.nasdaq.com/articles/target-expands-collaboration-with-apple-to-triple-apple-at-target-locations
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nan
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(RTTNews) - Target Corp. (TGT) announced Wednesday an expanded collaboration with Apple, Inc. (AAPL), more than tripling its Apple at Target locations to 150, giving even more guests a one-stop-shop for Apple products and accessories just in time for the holidays.
Members of Target Circle, the retailer's free-to-join loyalty program, now have access to a four-month free trial of Apple Fitness+ with no purchase required, the best Fitness+ offer available through a retailer.
Target also will have special holiday offers on select Apple Services such as Apple Music, Apple Arcade, Apple News+, and iCloud+, with some including up to five months free, available through Target Circle.
A full list of Apple at Target locations is available by visiting Target.com/store-locator and filtering for Apple at Target.
Guests also can shop the entire Apple at Target assortment on Target.com and via the Target app, where they will find product videos and comparisons. As always, guests can enjoy 5% off all Apple purchases and free shipping on orders of $35 or more when using their Target RedCard.
Customers can also take advantage of fast and free Order Pickup and Drive Up orders in as soon as two hours with no minimum purchase. For extra convenience, guests can use Same-Day Delivery with Shipt to receive orders at their doorstep in as soon as one hour, with no membership fee required.
The views and 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) - Target Corp. (TGT) announced Wednesday an expanded collaboration with Apple, Inc. (AAPL), more than tripling its Apple at Target locations to 150, giving even more guests a one-stop-shop for Apple products and accessories just in time for the holidays. Members of Target Circle, the retailer's free-to-join loyalty program, now have access to a four-month free trial of Apple Fitness+ with no purchase required, the best Fitness+ offer available through a retailer. As always, guests can enjoy 5% off all Apple purchases and free shipping on orders of $35 or more when using their Target RedCard.
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(RTTNews) - Target Corp. (TGT) announced Wednesday an expanded collaboration with Apple, Inc. (AAPL), more than tripling its Apple at Target locations to 150, giving even more guests a one-stop-shop for Apple products and accessories just in time for the holidays. Members of Target Circle, the retailer's free-to-join loyalty program, now have access to a four-month free trial of Apple Fitness+ with no purchase required, the best Fitness+ offer available through a retailer. Target also will have special holiday offers on select Apple Services such as Apple Music, Apple Arcade, Apple News+, and iCloud+, with some including up to five months free, available through Target Circle.
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(RTTNews) - Target Corp. (TGT) announced Wednesday an expanded collaboration with Apple, Inc. (AAPL), more than tripling its Apple at Target locations to 150, giving even more guests a one-stop-shop for Apple products and accessories just in time for the holidays. Target also will have special holiday offers on select Apple Services such as Apple Music, Apple Arcade, Apple News+, and iCloud+, with some including up to five months free, available through Target Circle. A full list of Apple at Target locations is available by visiting Target.com/store-locator and filtering for Apple at Target.
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(RTTNews) - Target Corp. (TGT) announced Wednesday an expanded collaboration with Apple, Inc. (AAPL), more than tripling its Apple at Target locations to 150, giving even more guests a one-stop-shop for Apple products and accessories just in time for the holidays. Members of Target Circle, the retailer's free-to-join loyalty program, now have access to a four-month free trial of Apple Fitness+ with no purchase required, the best Fitness+ offer available through a retailer. Customers can also take advantage of fast and free Order Pickup and Drive Up orders in as soon as two hours with no minimum purchase.
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18728.0
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2022-10-26 00:00:00 UTC
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Can Higher Revenues Aid Monolithic Power (MPWR) Q3 Earnings?
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AAPL
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https://www.nasdaq.com/articles/can-higher-revenues-aid-monolithic-power-mpwr-q3-earnings
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nan
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nan
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Monolithic Power Systems, Inc. MPWR is scheduled to report third-quarter 2022 results on Oct 27, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 8.4%. It pulled off a trailing four-quarter earnings surprise of 8%, on average.
The Kirkland, WA-based company is expected to have recorded year-over-year higher revenues, driven by solid demand across the automotive, industrial, computing and storage and communications markets. It is a leading provider of high-performance, semiconductor-based power electronics solutions.
Factors at Play
During the third quarter, Monolithic Power continued to invest in markets like industrial, server and communications that have strong growth potential over the long term. The ongoing adoption of cloud computing is driving demand for servers, which bodes well for the company’s power management solutions. This is likely to have translated into incremental revenues in the quarter.
Management has stated that the company is winning increasing dollar content in the automotive market. Moreover, its deep-rooted partnerships with leading auto suppliers will likely boost the top line. Monolithic has a strong growth opportunity due to its robust product portfolio that targets In-Car connectivity and infotainment, advanced driver assistance system and rapid adoption of LED lighting in cars and vehicles. Apart from automotive, continued investments in markets like industrial, server and communications will likely be reflected in the upcoming results.
For the September quarter, the Zacks Consensus Estimate for revenues is pegged at $490 million, which indicates growth from the year-ago quarter’s reported figure of $324 million. The consensus estimate for adjusted earnings per share is pegged at $3.49, suggesting an increase from $2.06 reported in the prior year.
Earnings Whispers
Our proven model does not predict an earnings beat for Monolithic Power this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at $3.49. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Monolithic Power Systems, Inc. Price and EPS Surprise
Monolithic Power Systems, Inc. price-eps-surprise | Monolithic Power Systems, Inc. Quote
Zacks Rank: Monolithic Power currently has a Zacks Rank #3.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Arista Networks, Inc. ANET is set to release quarterly numbers on Oct 31. It has an Earnings ESP of +1.27% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Cogent Communications Holdings, Inc. CCOI is +34.78% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Nov 3.
The Earnings ESP for Apple Inc. AAPL is +0.89% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Oct 27.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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
Monolithic Power Systems, Inc. (MPWR): Free Stock Analysis Report
Arista Networks, Inc. (ANET): Free Stock Analysis Report
Cogent Communications Holdings, Inc. (CCOI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Earnings ESP for Apple Inc. AAPL is +0.89% and it carries a Zacks Rank of 3. Apple Inc. (AAPL): Free Stock Analysis Report The Kirkland, WA-based company is expected to have recorded year-over-year higher revenues, driven by solid demand across the automotive, industrial, computing and storage and communications markets.
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The Earnings ESP for Apple Inc. AAPL is +0.89% and it carries a Zacks Rank of 3. Apple Inc. (AAPL): Free Stock Analysis Report Factors at Play During the third quarter, Monolithic Power continued to invest in markets like industrial, server and communications that have strong growth potential over the long term.
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The Earnings ESP for Apple Inc. AAPL is +0.89% and it carries a Zacks Rank of 3. Apple Inc. (AAPL): Free Stock Analysis Report The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
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The Earnings ESP for Apple Inc. AAPL is +0.89% and it carries a Zacks Rank of 3. Apple Inc. (AAPL): Free Stock Analysis Report Apart from automotive, continued investments in markets like industrial, server and communications will likely be reflected in the upcoming results.
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18729.0
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2022-10-26 00:00:00 UTC
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US STOCKS-Nasdaq futures fall 1% as tech earnings spark slowdown fears
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-futures-fall-1-as-tech-earnings-spark-slowdown-fears
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures down: Dow 0.04%, S&P 0.63%, Nasdaq 1.44%
Oct 26 (Reuters) - Nasdaq futures fell more than 1% on Wednesday, after disappointing results from technology giants Microsoft and Alphabet sparked losses in other megacap companies and raised fears of slowing economic growth.
Microsoft Corp MSFT.O posted its lowest sales growth in five years and forecast second-quarter revenue below Wall Street estimates, while Google-parent Alphabet GOOGL.O posted downbeat ad sales and cautioned of a slowdown in advertising spending.
Shares of the companies sank 5.7% and 6.0%, respectively, in premarket trading, while those of Amazon.com AMZN.O and Apple AAPL.O, which are scheduled to report results this week, fell 3.7% and 0.6%.
The downbeat results follow Snap Inc's SNAP.N warning last week on slowing ad demand and a string of mixed earnings reports that have fed into worries that decades-high inflation and aggressive interest rate hikes to quell it are taking a toll on the economy.
Wall Street's three main indexes, however, posted gains for the past three days, fueled by hopes that the Federal Reserve could soon slow down the pace of its monetary policy tightening.
At 4:13 a.m. ET, Dow e-minis 1YMcv1 were down 13 points, or 0.04%, S&P 500 e-minis EScv1 were down 24.25 points, or 0.63%, and Nasdaq 100 e-minis NQcv1 were down 169 points, or 1.44%.
(Reporting by Amruta Khandekar in Bengaluru; Editing by Saumyadeb Chakrabarty)
((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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Shares of the companies sank 5.7% and 6.0%, respectively, in premarket trading, while those of Amazon.com AMZN.O and Apple AAPL.O, which are scheduled to report results this week, fell 3.7% and 0.6%. The downbeat results follow Snap Inc's SNAP.N warning last week on slowing ad demand and a string of mixed earnings reports that have fed into worries that decades-high inflation and aggressive interest rate hikes to quell it are taking a toll on the economy. Wall Street's three main indexes, however, posted gains for the past three days, fueled by hopes that the Federal Reserve could soon slow down the pace of its monetary policy tightening.
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Shares of the companies sank 5.7% and 6.0%, respectively, in premarket trading, while those of Amazon.com AMZN.O and Apple AAPL.O, which are scheduled to report results this week, fell 3.7% and 0.6%. Futures down: Dow 0.04%, S&P 0.63%, Nasdaq 1.44% Oct 26 (Reuters) - Nasdaq futures fell more than 1% on Wednesday, after disappointing results from technology giants Microsoft and Alphabet sparked losses in other megacap companies and raised fears of slowing economic growth. Microsoft Corp MSFT.O posted its lowest sales growth in five years and forecast second-quarter revenue below Wall Street estimates, while Google-parent Alphabet GOOGL.O posted downbeat ad sales and cautioned of a slowdown in advertising spending.
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Shares of the companies sank 5.7% and 6.0%, respectively, in premarket trading, while those of Amazon.com AMZN.O and Apple AAPL.O, which are scheduled to report results this week, fell 3.7% and 0.6%. Futures down: Dow 0.04%, S&P 0.63%, Nasdaq 1.44% Oct 26 (Reuters) - Nasdaq futures fell more than 1% on Wednesday, after disappointing results from technology giants Microsoft and Alphabet sparked losses in other megacap companies and raised fears of slowing economic growth. Microsoft Corp MSFT.O posted its lowest sales growth in five years and forecast second-quarter revenue below Wall Street estimates, while Google-parent Alphabet GOOGL.O posted downbeat ad sales and cautioned of a slowdown in advertising spending.
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Shares of the companies sank 5.7% and 6.0%, respectively, in premarket trading, while those of Amazon.com AMZN.O and Apple AAPL.O, which are scheduled to report results this week, fell 3.7% and 0.6%. 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 0.04%, S&P 0.63%, Nasdaq 1.44% Oct 26 (Reuters) - Nasdaq futures fell more than 1% on Wednesday, after disappointing results from technology giants Microsoft and Alphabet sparked losses in other megacap companies and raised fears of slowing economic growth.
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18730.0
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2022-10-26 00:00:00 UTC
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Should John Hancock Multifactor Large Cap ETF (JHML) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-john-hancock-multifactor-large-cap-etf-jhml-be-on-your-investing-radar-4
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nan
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nan
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Launched on 09/28/2015, the John Hancock Multifactor Large Cap ETF (JHML) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by John Hancock. It has amassed assets over $707.78 million, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.29%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.29%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 22.70% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 3.97% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 16.6% of total assets under management.
Performance and Risk
JHML seeks to match the performance of the John Hancock Dimensional Large Cap Index before fees and expenses. The John Hancock Dimensional Large Cap Index comprises of a subset of securities in the U.S. Universe issued by companies whose market capitalizations are larger than that of the 801st largest U.S. company.
The ETF has lost about -17.49% so far this year and is down about -14.34% in the last one year (as of 10/26/2022). In the past 52-week period, it has traded between $45.43 and $59.70.
The ETF has a beta of 1.01 and standard deviation of 24.78% for the trailing three-year period, making it a medium risk choice in the space. With about 780 holdings, it effectively diversifies company-specific risk.
Alternatives
John Hancock Multifactor Large Cap 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, JHML is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $291.86 billion in assets, SPDR S&P 500 ETF has $359.17 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
John Hancock Multifactor Large Cap ETF (JHML): 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, Microsoft Corp (MSFT) accounts for about 3.97% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report It has amassed assets over $707.78 million, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 3.97% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 09/28/2015, the John Hancock Multifactor Large Cap ETF (JHML) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 3.97% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives John Hancock Multifactor Large Cap 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, Microsoft Corp (MSFT) accounts for about 3.97% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 09/28/2015, the John Hancock Multifactor Large Cap ETF (JHML) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
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18731.0
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2022-10-26 00:00:00 UTC
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LG Display posts bigger-than-expected Q3 loss on sluggish device sales
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AAPL
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https://www.nasdaq.com/articles/lg-display-posts-bigger-than-expected-q3-loss-on-sluggish-device-sales
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nan
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nan
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By Joyce Lee and Heekyong Yang
SEOUL, Oct 26 (Reuters) - South Korean flat-screen maker LG Display Co Ltd 034220.KS posted its second consecutive quarterly loss and cut its investment budget, as soaring inflation and a gloomy economic outlook dealt a further blow to demand for TVs and smartphones.
Tech gadget makers made large cuts to inventory and consumer sentiment in Europe - a key sales region for organic light-emitting diode (OLED) TVs - worsened rapidly due to the Russia-Ukraine war and energy crunch, the company said.
The Apple Inc AAPL.O supplier posted an operating loss of 759 billion won ($532.31 million) for the September quarter, compared to a profit of 529 billion won a year earlier.
It missed an average forecast of a 474 billion won loss from 12 analysts polled by Refinitiv SmartEstimate.
Revenue fell 6% to 6.8 trillion won, LG Display said in a regulatory filing. It plans to cut its 2022 investment budget by more than 1 trillion won and flexibly operate its OLED production lines to match demand.
Sluggish demand for liquid crystal display (LCD) and OLED panels, which dragged down shipments during the third quarter, is expected to continue until the second half of next year for some panels, the company said.
Prices of 55-inch LCD panels for TV sets fell 13% in the third quarter from the preceding quarter, according to data from TrendForce's WitsView.
LCD panel prices stabilised in October thanks to production adjustment by panel makers, but LG Display is expected to extend losses into the current quarter because of weak demand, said Jeff Kim, an analyst at KB Securities.
The company said in July it would halt LCD TV production in South Korea by next year.
"Under the conservative stance that poor management performance may be prolonged...we will accelerate our exit from the LCD TV sector," said LG Display Chief Financial Officer Sunghyun Kim told analysts on Wednesday, without providing an updated timeline.
In third quarter, the company derived around 9% of its revenue from LCD TVs, a spokesperson said.
LG Display has been in the red since the second quarter, when it logged its first quarterly operating loss in two years as a pandemic-driven demand boom for home entertainment devices ended abruptly amid rising inflation and interest rates.
Shares in LG Display closed down 1.1% after the earnings result while the wider market .KS11 rose 0.7%.
($1 = 1,425.8500 won)
(Reporting by Joyce Lee & Heekyong Yang; Editing by Jacqueline Wong, Clarence Fernandez and Jamie Freed)
((joyce.lee@tr.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Apple Inc AAPL.O supplier posted an operating loss of 759 billion won ($532.31 million) for the September quarter, compared to a profit of 529 billion won a year earlier. By Joyce Lee and Heekyong Yang SEOUL, Oct 26 (Reuters) - South Korean flat-screen maker LG Display Co Ltd 034220.KS posted its second consecutive quarterly loss and cut its investment budget, as soaring inflation and a gloomy economic outlook dealt a further blow to demand for TVs and smartphones. Tech gadget makers made large cuts to inventory and consumer sentiment in Europe - a key sales region for organic light-emitting diode (OLED) TVs - worsened rapidly due to the Russia-Ukraine war and energy crunch, the company said.
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The Apple Inc AAPL.O supplier posted an operating loss of 759 billion won ($532.31 million) for the September quarter, compared to a profit of 529 billion won a year earlier. By Joyce Lee and Heekyong Yang SEOUL, Oct 26 (Reuters) - South Korean flat-screen maker LG Display Co Ltd 034220.KS posted its second consecutive quarterly loss and cut its investment budget, as soaring inflation and a gloomy economic outlook dealt a further blow to demand for TVs and smartphones. Revenue fell 6% to 6.8 trillion won, LG Display said in a regulatory filing.
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The Apple Inc AAPL.O supplier posted an operating loss of 759 billion won ($532.31 million) for the September quarter, compared to a profit of 529 billion won a year earlier. By Joyce Lee and Heekyong Yang SEOUL, Oct 26 (Reuters) - South Korean flat-screen maker LG Display Co Ltd 034220.KS posted its second consecutive quarterly loss and cut its investment budget, as soaring inflation and a gloomy economic outlook dealt a further blow to demand for TVs and smartphones. LCD panel prices stabilised in October thanks to production adjustment by panel makers, but LG Display is expected to extend losses into the current quarter because of weak demand, said Jeff Kim, an analyst at KB Securities.
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The Apple Inc AAPL.O supplier posted an operating loss of 759 billion won ($532.31 million) for the September quarter, compared to a profit of 529 billion won a year earlier. By Joyce Lee and Heekyong Yang SEOUL, Oct 26 (Reuters) - South Korean flat-screen maker LG Display Co Ltd 034220.KS posted its second consecutive quarterly loss and cut its investment budget, as soaring inflation and a gloomy economic outlook dealt a further blow to demand for TVs and smartphones. Revenue fell 6% to 6.8 trillion won, LG Display said in a regulatory filing.
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18732.0
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2022-10-26 00:00:00 UTC
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Big Tech tumbles as results sound alarm bells
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AAPL
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https://www.nasdaq.com/articles/big-tech-tumbles-as-results-sound-alarm-bells
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nan
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nan
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Oct 26 (Reuters) - Grim results from Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O stoked fears of a global economic downturn and slammed the brakes on a fragile recovery in stock markets ahead of earnings from other tech megacaps.
Shares of the Google-parent and Microsoft fell about 6% in premarket trading. Meta Platforms Inc META.O, which is scheduled to report after markets close on Wednesday, was trading 4% lower.
Amazon.com Inc AMZN.O and Apple Inc AAPL.O, both due to report on Thursday, were down about 4% and 1%, respectively.
Nasdaq futures tumbled 1% after hitting a near three-week high on Tuesday as the latest results underlined the challenges faced by the broader tech sector - from high inflation and fast rising interest rates to waning demand and a towering dollar.
While most Big Tech stocks have edged higher in the past few weeks, overall it has been a bleak year for the sector. Netflix, Meta, Amazon, Microsoft, Alphabet and Apple have already lost a combined $2.5 trillion in market value so far this year.
"The results of the big technology firms were seen as a key determining factor in market sentiment going into the U.S. third quarter reporting season and both Microsoft and Alphabet have given investors reason to worry," said Laith Khalaf, AJ Bell's head of investment analysis.
Alphabet missed Wall Street's target for revenue growth in the third quarter as ad sales remained weak, while inflation and a strong dollar led Microsoft to report its slowest topline growth in five years.
Nearly a dozen analysts cut their price target on Alphabet, slashing it by as much as $30, while six analysts lowered their targets on Microsoft.
Like Google, Meta depends on ads for a majority of its revenue and analysts are forecasting a pullback in budgets for advertising as decades-high inflation pinches purses.
"Investors will be bracing for Meta's results with some trepidation, with a common thought being that if Google's struggling, the rest of the tech pack faces a marathon climb," said Sophie Lund-Yates, an analyst at Hargreaves Lansdown.
More worrisome was that growth at Azure, Microsoft's cloud platform and one of its most successful business lines, is slowing, a caution for Amazon's cloud business.
Shares of Spotify Technology SPOT.N also dropped after the company flagged pressure from falling ad sales on Tuesday.
Europe's tech index .SX8P fell 1.5% to lead sectoral losses in the region.
(Reporting by Yuvraj Malik and Akash Sriram in Bengaluru; Editing by Saumyadeb Chakrabarty)
((yuvraj.malik@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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Amazon.com Inc AMZN.O and Apple Inc AAPL.O, both due to report on Thursday, were down about 4% and 1%, respectively. Oct 26 (Reuters) - Grim results from Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O stoked fears of a global economic downturn and slammed the brakes on a fragile recovery in stock markets ahead of earnings from other tech megacaps. "The results of the big technology firms were seen as a key determining factor in market sentiment going into the U.S. third quarter reporting season and both Microsoft and Alphabet have given investors reason to worry," said Laith Khalaf, AJ Bell's head of investment analysis.
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Amazon.com Inc AMZN.O and Apple Inc AAPL.O, both due to report on Thursday, were down about 4% and 1%, respectively. Nasdaq futures tumbled 1% after hitting a near three-week high on Tuesday as the latest results underlined the challenges faced by the broader tech sector - from high inflation and fast rising interest rates to waning demand and a towering dollar. Netflix, Meta, Amazon, Microsoft, Alphabet and Apple have already lost a combined $2.5 trillion in market value so far this year.
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Amazon.com Inc AMZN.O and Apple Inc AAPL.O, both due to report on Thursday, were down about 4% and 1%, respectively. Oct 26 (Reuters) - Grim results from Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O stoked fears of a global economic downturn and slammed the brakes on a fragile recovery in stock markets ahead of earnings from other tech megacaps. "The results of the big technology firms were seen as a key determining factor in market sentiment going into the U.S. third quarter reporting season and both Microsoft and Alphabet have given investors reason to worry," said Laith Khalaf, AJ Bell's head of investment analysis.
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Amazon.com Inc AMZN.O and Apple Inc AAPL.O, both due to report on Thursday, were down about 4% and 1%, respectively. Shares of the Google-parent and Microsoft fell about 6% in premarket trading. Netflix, Meta, Amazon, Microsoft, Alphabet and Apple have already lost a combined $2.5 trillion in market value so far this year.
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18733.0
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2022-10-26 00:00:00 UTC
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US STOCKS-Nasdaq futures drop over 1% as weak tech earnings fan slowdown fears
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-futures-drop-over-1-as-weak-tech-earnings-fan-slowdown-fears
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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.
Microsoft drops on dour forecast
Alphabet warns of slowing ad spend
Shares of ad-dependent social media firms fall
Visa gains on Q4 profit beat as payment volumes surge
Futures down: Nasdaq 1.59%, Dow 0.12%, S&P 0.70%
Updates prices throughout, adds comments
By Amruta Khandekar
Oct 26 (Reuters) - Futures tied to the tech-heavy Nasdaq index fell more than 1% on Wednesday as disappointing results and warnings from Microsoft and Alphabet sparked losses among megacap companies and raised fears of slowing economic growth.
Microsoft Corp MSFT.O posted its lowest sales growth in five years and forecast second-quarter revenue below Wall Street estimates, while Alphabet GOOGL.O reported downbeat ad sales and warned of a slowdown in advertising spending.
Shares of both companies fell around 6% each in premarket trading and weighed on Amazon.com AMZN.O and Apple AAPL.O, which are scheduled to report results later this week. They were down 3.7% and 0.9%, respectively.
"The results of the big technology firms were seen as a key determining factor in market sentiment going into the U.S. third quarter reporting season and both Microsoft and Alphabet have given investors reason to worry," said Laith Khalaf, head of investment analysis at AJ Bell.
Shares of Meta Platforms META.O fell 3.9% and Pinterest PINS.N 4.1% as they rely on ad revenue. U.S.-listed shares of Spotify Technology SPOT.N dropped 5.7%, as margins came under pressure from a slowdown in ad growth.
The extensive weakness in the tech sector comes despite a drop in the benchmark 10-year Treasury yield US10YT=RR, which fell for the second straight day on rising bets over a slowdown in the pace of interest-rate hikes. US/
Expectations of a less-hawkish Federal Reserve have helped Wall Street's main indexes notch three straight sessions of gains, but downbeat earnings and forecasts suggested that the Fed's rapid interest rate hikes are slowing the economy.
The U.S. central bank is expected to deliver its fourth 75 basis-point hike in its Nov. 1-2 policy meeting against the backdrop of recent data pointing to economic softness.
Analysts have set the bar low for third-quarter reporting season, with aggregate S&P 500 earnings growth seen at 3.3% year-on-year, down from 4.5% at the start of the month, according to Refinitiv data.
At 6:36 a.m. ET, Dow e-minis 1YMcv1 were down 37 points, or 0.12%, S&P 500 e-minis EScv1 were down 27 points, or 0.7%, and Nasdaq 100 e-minis NQcv1 were down 186 points, or 1.59%.
A bright spot was Visa Inc V.N, whose shares rose 1.3% after the payments processor topped quarterly profit estimates on strong travel demand.
(Reporting by Amruta Khandekar and Shreyashi Sanyal in Bengaluru; Editing by Saumyadeb Chakrabarty 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.
|
Shares of both companies fell around 6% each in premarket trading and weighed on Amazon.com AMZN.O and Apple AAPL.O, which are scheduled to report results later this week. Microsoft drops on dour forecast Alphabet warns of slowing ad spend Shares of ad-dependent social media firms fall Visa gains on Q4 profit beat as payment volumes surge Futures down: Nasdaq 1.59%, Dow 0.12%, S&P 0.70% Updates prices throughout, adds comments By Amruta Khandekar Oct 26 (Reuters) - Futures tied to the tech-heavy Nasdaq index fell more than 1% on Wednesday as disappointing results and warnings from Microsoft and Alphabet sparked losses among megacap companies and raised fears of slowing economic growth. "The results of the big technology firms were seen as a key determining factor in market sentiment going into the U.S. third quarter reporting season and both Microsoft and Alphabet have given investors reason to worry," said Laith Khalaf, head of investment analysis at AJ Bell.
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Shares of both companies fell around 6% each in premarket trading and weighed on Amazon.com AMZN.O and Apple AAPL.O, which are scheduled to report results later this week. Microsoft drops on dour forecast Alphabet warns of slowing ad spend Shares of ad-dependent social media firms fall Visa gains on Q4 profit beat as payment volumes surge Futures down: Nasdaq 1.59%, Dow 0.12%, S&P 0.70% Updates prices throughout, adds comments By Amruta Khandekar Oct 26 (Reuters) - Futures tied to the tech-heavy Nasdaq index fell more than 1% on Wednesday as disappointing results and warnings from Microsoft and Alphabet sparked losses among megacap companies and raised fears of slowing economic growth. Microsoft Corp MSFT.O posted its lowest sales growth in five years and forecast second-quarter revenue below Wall Street estimates, while Alphabet GOOGL.O reported downbeat ad sales and warned of a slowdown in advertising spending.
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Shares of both companies fell around 6% each in premarket trading and weighed on Amazon.com AMZN.O and Apple AAPL.O, which are scheduled to report results later this week. Microsoft drops on dour forecast Alphabet warns of slowing ad spend Shares of ad-dependent social media firms fall Visa gains on Q4 profit beat as payment volumes surge Futures down: Nasdaq 1.59%, Dow 0.12%, S&P 0.70% Updates prices throughout, adds comments By Amruta Khandekar Oct 26 (Reuters) - Futures tied to the tech-heavy Nasdaq index fell more than 1% on Wednesday as disappointing results and warnings from Microsoft and Alphabet sparked losses among megacap companies and raised fears of slowing economic growth. Microsoft Corp MSFT.O posted its lowest sales growth in five years and forecast second-quarter revenue below Wall Street estimates, while Alphabet GOOGL.O reported downbeat ad sales and warned of a slowdown in advertising spending.
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Shares of both companies fell around 6% each in premarket trading and weighed on Amazon.com AMZN.O and Apple AAPL.O, which are scheduled to report results later this week. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Microsoft Corp MSFT.O posted its lowest sales growth in five years and forecast second-quarter revenue below Wall Street estimates, while Alphabet GOOGL.O reported downbeat ad sales and warned of a slowdown in advertising spending.
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18734.0
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2022-10-26 00:00:00 UTC
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Apple’s (NASDAQ:AAPL) Q4 Preview: Revenues to Hit Estimates, Says Analyst
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AAPL
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https://www.nasdaq.com/articles/apples-nasdaq%3Aaapl-q4-preview%3A-revenues-to-hit-estimates-says-analyst
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nan
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nan
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Apple (NASDAQ:AAPL) will announce its Q4 financials after the market closes on October 27. Despite multiple revenue headwinds (including adverse currency movement and an economic slowdown), Wedbush analyst Daniel Ives expects Apple to meet the analysts’ revenue estimate for Q4.
Ives believes Apple will be “able to hit the Street’s $89 billion top-line estimate with stronger ASPs [average selling prices] from iPhone 14 the hero of the day that could lead to a modest revenue upside.”
During the Q3 conference call, Apple’s management stated that the year-over-year revenue growth rate would improve in Q4 compared to Q3 (it recorded a 2% year-over-year growth in its top line). This guidance included 600 basis points of negative impact from currency headwinds.
Further, the analyst expects Apple to beat the margins and earnings estimates in Q4 because of tight expense management and a better price mix. Notably, Wall Street expects Apple to post earnings of $1.27 a share in Q4 compared to $1.24 in the prior year.
While Ives is bullish about Apple and expects the company to surpass the Street’s expectations, a higher-than-expected currency headwind, a weak economy, and inflationary pressure on consumer spending could take a toll on Apple’s financials and stock price.
Investors would do well to follow Ives, who has an average return of 17.32% success rate on his AAPL ratings. Check out his AAPL track record here:
What is the Price Target for Apple?
Apple stock’s average price target of $181.68 on TipRanks, implies 19.3% upside potential. Moreover, AAPL stock has 23 Buy, four Hold, and one Sell recommendations for a Strong Buy consensus rating.
It’s worth mentioning that retail investors holding portfolios on TipRanks have bought AAPL stock ahead of earnings. TipRanks’ data shows that 1.6% of these investors have bought Apple stock in one month. Moreover, AAPL stock carries an Outperform Smart Score of nine on 10.
Concluding Remarks
The weakening of the economy, currency headwinds, and pressure on consumer spending pose challenges for Apple. However, its solid product demand, growing services revenue, and cost control measures will likely support its revenue and earnings.
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 worth mentioning that retail investors holding portfolios on TipRanks have bought AAPL stock ahead of earnings. Apple (NASDAQ:AAPL) will announce its Q4 financials after the market closes on October 27. Investors would do well to follow Ives, who has an average return of 17.32% success rate on his AAPL ratings.
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It’s worth mentioning that retail investors holding portfolios on TipRanks have bought AAPL stock ahead of earnings. Apple (NASDAQ:AAPL) will announce its Q4 financials after the market closes on October 27. Investors would do well to follow Ives, who has an average return of 17.32% success rate on his AAPL ratings.
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Apple (NASDAQ:AAPL) will announce its Q4 financials after the market closes on October 27. Investors would do well to follow Ives, who has an average return of 17.32% success rate on his AAPL ratings. Check out his AAPL track record here: What is the Price Target for Apple?
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Apple (NASDAQ:AAPL) will announce its Q4 financials after the market closes on October 27. Investors would do well to follow Ives, who has an average return of 17.32% success rate on his AAPL ratings. Check out his AAPL track record here: What is the Price Target for Apple?
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18735.0
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2022-10-26 00:00:00 UTC
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Is a Surprise Coming for Apple (AAPL) This Earnings Season?
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AAPL
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https://www.nasdaq.com/articles/is-a-surprise-coming-for-apple-aapl-this-earnings-season-1
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nan
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nan
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Investors are always looking for stocks that are poised to beat at earnings season and Apple Inc. AAPL may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because Apple is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for AAPL in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at $1.27 per share for AAPL, compared to a broader Zacks Consensus Estimate of $1.26 per share. This suggests that analysts have very recently bumped up their estimates for AAPL, giving the stock a Zacks Earnings ESP of +0.89% heading into earnings season.
Apple Inc. Price and EPS Surprise
Apple Inc. price-eps-surprise | Apple Inc. Quote
Why is this Important?
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).
Given that AAPL has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Clearly, recent earnings estimate revisions suggest that good things are ahead for Apple, and that a beat might be in the cards for the upcoming report.
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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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After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for AAPL in this report. Given that AAPL has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. Investors are always looking for stocks that are poised to beat at earnings season and Apple Inc. AAPL may be one such company.
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This suggests that analysts have very recently bumped up their estimates for AAPL, giving the stock a Zacks Earnings ESP of +0.89% heading into earnings season. Investors are always looking for stocks that are poised to beat at earnings season and Apple Inc. AAPL may be one such company. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for AAPL in this report.
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This suggests that analysts have very recently bumped up their estimates for AAPL, giving the stock a Zacks Earnings ESP of +0.89% heading into earnings season. Given that AAPL has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. Investors are always looking for stocks that are poised to beat at earnings season and Apple Inc. AAPL may be one such company.
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Given that AAPL has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. Investors are always looking for stocks that are poised to beat at earnings season and Apple Inc. AAPL may be one such company. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for AAPL in this report.
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18736.0
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2022-10-25 00:00:00 UTC
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Why Is Everyone Talking About Apple?
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AAPL
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https://www.nasdaq.com/articles/why-is-everyone-talking-about-apple-0
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nan
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nan
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Apple's (NASDAQ: AAPL) stock has fallen about 10% since mid-September. The leading causes for the dip have been numerous reports that sales for its base-model iPhone 14 and 14 Plus have been underwhelming and an overall slowdown of consumer demand in the tech market.
As the highest-valued company in the world, with a market cap of $2.37 trillion, Apple is one of the world's most scrutinized companies. The last two months have been no different as analysts pick apart the company's September iPhone launch and its 2022 iPad lineup unveiling in mid-October.
Understanding the strategy behind Apple's recently announced products can be a great way to predict how far your investment will go. So, here's why Apple's new products have been making headlines.
A confusing iPad launch
On Oct. 18, Apple unveiled its 2022 iPad refresh by introducing a newly designed base iPad and upgraded iPad Pros. Time will tell how the new Apple tablets fare with consumers, but the media has been quick to criticize the devices. Bloomberg has called the new iPad lineup "perplexing," while Techradar said its "software and now hardware is a mess."
The primary reason for the confusion lies in upgrades to the entry-level iPads, but not the Pro versions. The base iPads received a redesign with new colors, relocation of the front-facing camera to the landscape's edge, and a revamped Magic Keyboard accessory. Meanwhile, the 2022 iPad Pro models received the smallest update in their history. They were bumped up to the M2 chip, making them 15% faster than their predecessors, along with other minor performance upgrades.
However, the higher-cost versions didn't receive the same optimal camera relocation or the redesigned Magic Keyboard. The Pro models didn't even receive the customary camera or display improvements that consumers have come to expect year to year. As a result, Apple has given consumers little reason to upgrade to the 2022 iPad Pro and created confusion by omitting features given to the base iPad.
Moreover, despite the base iPad's more enticing improvements, it has not been left unscathed by criticism. The tablet has undergone a significant redesign, including its charging port going from lightning to the market-preferred USB-C. However, it is still only compatible with the 2015 Apple Pencil accessory that charges via lightning rather than the redesigned 2018 version that charges magnetically along the side of higher-tiered iPads. As a result, users need to use an adapter to charge their Apple Pencil with the new base iPad.
iPhone 14 Plus is a bust
In addition to a confusing iPad lineup, Apple has reportedly faced dismal demand for its iPhone 14 Plus, which hit stores on Oct. 7. The base-model iPhone was announced on Sept. 7, along with two new Pro models and a standard-sized base model. Apple had high hopes for the larger iPhone 14 as it signified a shakeup in the lineup. There hasn't been a Plus-sized base model since 2017's iPhone 8 Plus, as the larger iPhones have been exclusively Pro versions.
However, the rising cost of living and a difficult price point led Apple to halt production of the iPhone 14 Plus on Oct. 18 to reassess demand. According to The Information, two of the company's suppliers are lowering output by 70% and 90%.
The iPhone 14 Plus is at a logical price point in the lineup, coming in at $899, while the smaller iPhone 14 is $799 and the Pro models are $999 and $1099, respectively. However, looking at Verizon plans, the 14 Plus is priced at $24.99/month, while the 14 Pro Max is $30.55/month, and the 13 Pro Max is $10/month. Since many Americans will likely procure their new iPhones through a carrier plan, there is little reason to get the Plus.
Consumers wanting the biggest iPhone can get the 14 Pro Max with all of the new features for an extra $5.56 a month, or those with older phones can get the 13 Pro Max, which is 60% cheaper than the 14 Plus and has more features.
Should you buy Apple stock?
Troubled iPhone sales are worrying, as the popular devices have made up 40% to 70% of Apple's revenue for the last decade. In fact, its iPhone sales comprised 49% of Apple's revenue reported for the most recent quarter of 2022.
With these details in mind, it's certainly possible that the tech company may be heading toward a weak quarter. Even so, Apple likely won't stay down for long. After all, Apple is home to some of the world's most innovative and popular products. This unique strength helped grow Apple stock 270% over the past five years despite a pandemic and the reduced demand for iPhones in 2022.
The company reported $20.79 billion in free cash flow in its latest quarter, which suggests it is fully equipped to overcome a year of weak iPhone sales. Ultimately, Apple stock remains an excellent investment for the long term.
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Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends Verizon Communications and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and 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 has fallen about 10% since mid-September. The base iPads received a redesign with new colors, relocation of the front-facing camera to the landscape's edge, and a revamped Magic Keyboard accessory. However, the rising cost of living and a difficult price point led Apple to halt production of the iPhone 14 Plus on Oct. 18 to reassess demand.
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Apple's (NASDAQ: AAPL) stock has fallen about 10% since mid-September. The last two months have been no different as analysts pick apart the company's September iPhone launch and its 2022 iPad lineup unveiling in mid-October. As a result, Apple has given consumers little reason to upgrade to the 2022 iPad Pro and created confusion by omitting features given to the base iPad.
|
Apple's (NASDAQ: AAPL) stock has fallen about 10% since mid-September. A confusing iPad launch On Oct. 18, Apple unveiled its 2022 iPad refresh by introducing a newly designed base iPad and upgraded iPad Pros. As a result, Apple has given consumers little reason to upgrade to the 2022 iPad Pro and created confusion by omitting features given to the base iPad.
|
Apple's (NASDAQ: AAPL) stock has fallen about 10% since mid-September. The Pro models didn't even receive the customary camera or display improvements that consumers have come to expect year to year. As a result, Apple has given consumers little reason to upgrade to the 2022 iPad Pro and created confusion by omitting features given to the base iPad.
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18737.0
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2022-10-25 00:00:00 UTC
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Don't Overlook Service Revenues in Apple's Q4
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AAPL
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https://www.nasdaq.com/articles/dont-overlook-service-revenues-in-apples-q4
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nan
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nan
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Apple AAPL, a behemoth in the market, is on deck to unveil quarterly earnings on October 27th, after the market close.
Revenue from the company’s services will be a closely watched metric, as the company has witnessed strong growth in the area.
Let’s take a deeper dive into what to expect.
Service Revenues
Of course, Apple’s business is primarily run around its flagship iPhone. However, the company’s services have also been a nice contributor to the top-line.
Some of Apple’s services include Apple Music, Apple TV+, Apple Arcade, iCloud+, Apple News+, Apple Podcasts, and Apple Fitness+.
In its latest quarter, the segment raked in $19.6 billion, falling short of the Zacks Consensus Estimate by a marginal 0.7% but reflecting a 12% Y/Y uptick.
In addition, Apple reported having more than 860 million paid subscribers across its services at the end of the quarter, up 35 million sequentially and 160 million Y/Y, owing to the strong performance of Apple TV+ and Apple Arcade.
Now, for the upcoming quarter, the Zacks Consensus Estimate for the segment sits at $19.7 billion, indicating a marginal sequential uptick and a 7.6% Y/Y increase.
Share Performance & Valuation
Year-to-date, Apple shares have held up relatively well, down 14% vs. the general market’s decline of roughly 20%.
Image Source: Zacks Investment Research
The relative strength shows that market participants have respected Apple shares much higher than most, undoubtedly a positive in a historically-volatile 2022.
AAPL’s valuation multiples have pulled back by a fair margin; the company’s 22.9X forward earnings multiple is just a tick below its five-year median and nowhere near 2021 highs of 35.6X.
The company carries a Value Style Score of a C.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have primarily been bullish regarding their earnings outlook, with three positive earnings estimate revisions hitting the tape over the last several months. The Zacks Consensus EPS Estimate of $1.26 suggests Y/Y earnings growth of a modest 1.6%.
Image Source: Zacks Investment Research
Apple’s top-line looks to improve as well; the Zacks Consensus Sales Estimate of $88.5 billion suggests revenue growth of 6% from year-ago quarterly sales of $83.4 billion.
Bottom Line
Revenue from the company’s services will be a closely monitored metric in theearnings call as Apple has witnessed strong growth across the area.
Further, the growth within its services portfolio can help offset the company’s dependence on its flagship product, the iPhone.
Currently, the Zacks Consensus Estimate suggests Y/Y revenue growth in the area and a marginal sequential uptick.
In its latest quarter, the company’s subscriber base for its services grew notably, and it looks to continue that trend.
The tech titan has an impressive earnings track record, exceeding revenue and earnings estimates in nine of its last ten quarters. Just in its latest print, Apple AAPL registered a 5.3% EPS beat and a 1.2% revenue beat.
Just Released: Zacks Unveils the Top 5 EV Stocks for 2022
For several months now, electric vehicles have been disrupting the $82 billion automotive industry. And that disruption is only getting bigger thanks to sky-high gas prices. Even titans in the financial industry including George Soros, Jeff Bezos, and Ray Dalio have invested in this unstoppable wave. You don't want to be sitting on your hands while EV stocks break out and climb to new highs. In a new free report, Zacks is revealing the top 5 EV stocks for investors. Next year, don't look back on today wishing you had taken advantage of this opportunity.
>>Send me my free report revealing the top 5 EV stocks
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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, a behemoth in the market, is on deck to unveil quarterly earnings on October 27th, after the market close. AAPL’s valuation multiples have pulled back by a fair margin; the company’s 22.9X forward earnings multiple is just a tick below its five-year median and nowhere near 2021 highs of 35.6X. Just in its latest print, Apple AAPL registered a 5.3% EPS beat and a 1.2% revenue beat.
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Apple AAPL, a behemoth in the market, is on deck to unveil quarterly earnings on October 27th, after the market close. AAPL’s valuation multiples have pulled back by a fair margin; the company’s 22.9X forward earnings multiple is just a tick below its five-year median and nowhere near 2021 highs of 35.6X. Just in its latest print, Apple AAPL registered a 5.3% EPS beat and a 1.2% revenue beat.
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Apple AAPL, a behemoth in the market, is on deck to unveil quarterly earnings on October 27th, after the market close. AAPL’s valuation multiples have pulled back by a fair margin; the company’s 22.9X forward earnings multiple is just a tick below its five-year median and nowhere near 2021 highs of 35.6X. Just in its latest print, Apple AAPL registered a 5.3% EPS beat and a 1.2% revenue beat.
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Apple Inc. (AAPL): Free Stock Analysis Report Apple AAPL, a behemoth in the market, is on deck to unveil quarterly earnings on October 27th, after the market close. AAPL’s valuation multiples have pulled back by a fair margin; the company’s 22.9X forward earnings multiple is just a tick below its five-year median and nowhere near 2021 highs of 35.6X.
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18738.0
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2022-10-25 00:00:00 UTC
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Poor report cards at U.S. companies fan recession fears
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AAPL
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https://www.nasdaq.com/articles/poor-report-cards-at-u.s.-companies-fan-recession-fears
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nan
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nan
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By Eva Mathews, Chavi Mehta and Jane Lanhee Lee
Oct 25 (Reuters) - U.S. companies from tech giants Alphabet GOOGL.O and Microsoft MSFT.O to GE GE.N and toymaker Mattel MAT.O on Tuesday reported big slowdowns in growth or warned things were going to get worse, fanning recession fears and driving down stocks.
The rash of disappointing results points to a host of problems plaguing the American economy. A strong dollar has hurt the overseas profits of large firms, while soaring inflation has prompted interest rate hikes and companies to raise product prices, even as consumers have been forced to cut spending.
U.S. consumer confidence ebbed in October, data showed Tuesday, after two straight monthly increases amid heightened inflation concerns and worries of a possible recession next year.
After years of turbo-charged growth, Microsoft posted its slowest rise in sales in five years and Google parent Alphabet grew just 6% last quarter at its slowest pace since September 2013 barring a small quarterly decline in 2020.
Google, which many had expected to be more resilient because of its status as the world's largest digital advertising platform by market share, shocked the market with weaker-than-estimated advertising revenue as customers in the insurance, mortgages and cryptocurrencies industries tightened their ad budgets.
"Despite being seen as one of the most insulated companies in the advertising space relative to peers, Google's poor quarter is the latest sign that worsening fundamentals and a tough macroeconomic environment are prompting advertisers to cut back on spending," said Jesse Cohen, senior analyst at Investing.com.
Google's results bode ill for Facebook parent Meta Platforms META.O, which is especially reliant on advertising and reports results on Wednesday. Last week, its smaller rival Snap IncSNAP.N forecast no revenue growth for the holiday quarter, setting off warning bells in the social media industry.
Alphabet said it plans to cut hiring by more than half.
Conglomerate GE, which is in the process of breaking up into three companies, said it will reduce global headcount by a fifth at its onshore wind unit, which has been battling higher raw material costs due to inflation and supply-chain pressures.
Shares in Alphabet slumped 7% in trading after the bell. Microsoft fell 2% and chipmaker Texas InstrumentsTXN.O, which forecast quarterly revenue and profit below estimates, was down 5%. Shares in SpotifySPOT.N, which also warned on slow advertising growth, slid 4%. Meta shares fell 4%.
A lack of demand for personal computers and laptops was evident in Microsoft's past quarter as its Windows business slumped 15%, a sharp turnaround after months of pandemic-fueled sales thanks to people working and studying from home.
Texas Instruments (TI) echoed the sentiment, backing up similar predictions from fellow chipmakers Samsung Electronics Co Ltd 005930.KS and Advanced Micro Devices Inc AMD.O earlier this month.
"During the quarter we experienced expected weakness in personal electronics and expanding weakness across industrial," said TI boss Rich Templeton. The company like other chipmakers has to contend with gadget makers cutting orders to clear stockpiles of chips after the pandemic-led boost in demand quickly flipped to a slump in a matter of weeks.
Weak demand for consumer electronics has also been flagged by Apple AAPL.O iPhone assembler Foxconn 2317.TW as China's economy has slowed dramatically on COVID-19 related curbs.
Mattel, which is very susceptible to discretionary spending cuts, lowered its profit forecast for the year and said it would ramp up promotions heading into the busy holiday season to encourage inflation-hit shoppers to buy its Barbie dolls.
Earlier on Tuesday, post-it maker 3M Co MMM.N said it expected weak consumer spending to continue into the upcoming holiday season and cut its full-year forecasts.
Still, there were bright spots in the report cards.
Chipotle Mexican Grill Inc CMG.N reported quarterly sales and profits that topped the Street as wealthier customers chowed down on their burritos despite higher prices even as lower-income consumers ate there less often.
Coca-Cola Co KO.N, a favorite in a slowdown, joined rival PepsiCo Inc PEP.O in lifting its annual forecasts, as customers bought their sugary sodas despite multiple rounds of price hikes.
(Reporting by Chavi Mehta, Tiyashi Datta, Eva Mathews, Uday Sampath Kumar, Granth Vanaik, Deborah Mary Sophia, Aditya Soni, Mehr Bedi, Kannaki Deka and Abhijith Ganapavaramin in Bengaluru, Jane Lanhee Lee in Oakland, Sheila Dang in Dallas, Hilary Russ in New York and Rajesh Kumar Singh in Chicago; Writing by Sayantani Ghosh; Editing by Richard Pullin)
((sayantani.ghosh@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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Weak demand for consumer electronics has also been flagged by Apple AAPL.O iPhone assembler Foxconn 2317.TW as China's economy has slowed dramatically on COVID-19 related curbs. By Eva Mathews, Chavi Mehta and Jane Lanhee Lee Oct 25 (Reuters) - U.S. companies from tech giants Alphabet GOOGL.O and Microsoft MSFT.O to GE GE.N and toymaker Mattel MAT.O on Tuesday reported big slowdowns in growth or warned things were going to get worse, fanning recession fears and driving down stocks. A lack of demand for personal computers and laptops was evident in Microsoft's past quarter as its Windows business slumped 15%, a sharp turnaround after months of pandemic-fueled sales thanks to people working and studying from home.
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Weak demand for consumer electronics has also been flagged by Apple AAPL.O iPhone assembler Foxconn 2317.TW as China's economy has slowed dramatically on COVID-19 related curbs. By Eva Mathews, Chavi Mehta and Jane Lanhee Lee Oct 25 (Reuters) - U.S. companies from tech giants Alphabet GOOGL.O and Microsoft MSFT.O to GE GE.N and toymaker Mattel MAT.O on Tuesday reported big slowdowns in growth or warned things were going to get worse, fanning recession fears and driving down stocks. After years of turbo-charged growth, Microsoft posted its slowest rise in sales in five years and Google parent Alphabet grew just 6% last quarter at its slowest pace since September 2013 barring a small quarterly decline in 2020.
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Weak demand for consumer electronics has also been flagged by Apple AAPL.O iPhone assembler Foxconn 2317.TW as China's economy has slowed dramatically on COVID-19 related curbs. By Eva Mathews, Chavi Mehta and Jane Lanhee Lee Oct 25 (Reuters) - U.S. companies from tech giants Alphabet GOOGL.O and Microsoft MSFT.O to GE GE.N and toymaker Mattel MAT.O on Tuesday reported big slowdowns in growth or warned things were going to get worse, fanning recession fears and driving down stocks. After years of turbo-charged growth, Microsoft posted its slowest rise in sales in five years and Google parent Alphabet grew just 6% last quarter at its slowest pace since September 2013 barring a small quarterly decline in 2020.
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Weak demand for consumer electronics has also been flagged by Apple AAPL.O iPhone assembler Foxconn 2317.TW as China's economy has slowed dramatically on COVID-19 related curbs. Google's results bode ill for Facebook parent Meta Platforms META.O, which is especially reliant on advertising and reports results on Wednesday. Shares in Alphabet slumped 7% in trading after the bell.
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18739.0
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2022-10-25 00:00:00 UTC
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Top 10 Wide-Moat Stocks to Buy Now
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AAPL
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https://www.nasdaq.com/articles/top-10-wide-moat-stocks-to-buy-now
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nan
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nan
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Historically, a moat protected medieval castles from enemy invasion. The term economic moat was made popular by Warren Buffett, and it refers to the competitive advantages a business has to protect its future long-term profitability.
The video below teaches you the definition of an economic moat and covers the top 10 wide-moat stocks to buy now.
*Stock prices used in the below video were during the trading day of October 25, 2022. The video was published on October 25, 2022.
10 stocks we like better than Microsoft
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 Microsoft 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. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Eric Cuka has positions in Alphabet (A shares), Amazon, Apple, CrowdStrike Holdings, Inc., Etsy, Lam Research, MercadoLibre, Microsoft, Nike, Nvidia, Palantir Technologies Inc., Salesforce, Inc., ServiceNow, Inc., Tesla, and Walt Disney. The Motley Fool has positions in and recommends ASML Holding, Adobe Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Autodesk, CrowdStrike Holdings, Inc., Etsy, Intuitive Surgical, Lam Research, MercadoLibre, Microsoft, Nike, Nvidia, Palantir Technologies Inc., Salesforce, Inc., ServiceNow, Inc., Tesla, Veeva Systems, Walmart Inc., and Walt Disney. The Motley Fool recommends Guidewire Software, SAP SE, and eBay and recommends the following options: long January 2024 $145 calls on Walt Disney, long January 2024 $420 calls on Adobe Inc., long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, short January 2024 $430 calls on Adobe Inc., short March 2023 $130 calls on Apple, and short October 2022 $50 calls on eBay. The Motley Fool has a disclosure policy. Eric Cuka is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The term economic moat was made popular by Warren Buffett, and it refers to the competitive advantages a business has to protect its future long-term profitability. Eric Cuka has positions in Alphabet (A shares), Amazon, Apple, CrowdStrike Holdings, Inc., Etsy, Lam Research, MercadoLibre, Microsoft, Nike, Nvidia, Palantir Technologies Inc., Salesforce, Inc., ServiceNow, Inc., Tesla, and Walt Disney. The Motley Fool has positions in and recommends ASML Holding, Adobe Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Autodesk, CrowdStrike Holdings, Inc., Etsy, Intuitive Surgical, Lam Research, MercadoLibre, Microsoft, Nike, Nvidia, Palantir Technologies Inc., Salesforce, Inc., ServiceNow, Inc., Tesla, Veeva Systems, Walmart Inc., and Walt Disney.
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Eric Cuka has positions in Alphabet (A shares), Amazon, Apple, CrowdStrike Holdings, Inc., Etsy, Lam Research, MercadoLibre, Microsoft, Nike, Nvidia, Palantir Technologies Inc., Salesforce, Inc., ServiceNow, Inc., Tesla, and Walt Disney. The Motley Fool has positions in and recommends ASML Holding, Adobe Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Autodesk, CrowdStrike Holdings, Inc., Etsy, Intuitive Surgical, Lam Research, MercadoLibre, Microsoft, Nike, Nvidia, Palantir Technologies Inc., Salesforce, Inc., ServiceNow, Inc., Tesla, Veeva Systems, Walmart Inc., and Walt Disney. The Motley Fool recommends Guidewire Software, SAP SE, and eBay and recommends the following options: long January 2024 $145 calls on Walt Disney, long January 2024 $420 calls on Adobe Inc., long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, short January 2024 $430 calls on Adobe Inc., short March 2023 $130 calls on Apple, and short October 2022 $50 calls on eBay.
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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. The Motley Fool has positions in and recommends ASML Holding, Adobe Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Autodesk, CrowdStrike Holdings, Inc., Etsy, Intuitive Surgical, Lam Research, MercadoLibre, Microsoft, Nike, Nvidia, Palantir Technologies Inc., Salesforce, Inc., ServiceNow, Inc., Tesla, Veeva Systems, Walmart Inc., and Walt Disney. The Motley Fool recommends Guidewire Software, SAP SE, and eBay and recommends the following options: long January 2024 $145 calls on Walt Disney, long January 2024 $420 calls on Adobe Inc., long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, short January 2024 $430 calls on Adobe Inc., short March 2023 $130 calls on Apple, and short October 2022 $50 calls on eBay.
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The video below teaches you the definition of an economic moat and covers the top 10 wide-moat stocks to buy now. That's right -- they think these 10 stocks are even better buys. Eric Cuka has positions in Alphabet (A shares), Amazon, Apple, CrowdStrike Holdings, Inc., Etsy, Lam Research, MercadoLibre, Microsoft, Nike, Nvidia, Palantir Technologies Inc., Salesforce, Inc., ServiceNow, Inc., Tesla, and Walt Disney.
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18740.0
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2022-10-25 00:00:00 UTC
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Will Lower Ad Revenues Hurt Meta Platforms (META) Q3 Earnings?
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AAPL
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https://www.nasdaq.com/articles/will-lower-ad-revenues-hurt-meta-platforms-meta-q3-earnings
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nan
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nan
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Meta Platforms META has entered the worst economic downturn in the company’s history, which has affected the company’s advertising business in third-quarter 2022, set to report on Oct 26.
In the second quarter of 2022, advertising revenues (99.2% of Family of Apps revenues) decreased 1.5% year over year to $28.15 billion and accounted for 97.7% of revenues.
The Russia-Ukraine war has heightened the impact of inflation that has reduced advertising demand both within Europe and outside the region. This, in turn, might have hampered Meta’s advertising revenues in the third quarter of 2022.
Click here to know how Meta’s overall third-quarter performance is likely to be.
Meta Platforms, Inc. Price and EPS Surprise
Meta Platforms, Inc. price-eps-surprise | Meta Platforms, Inc. Quote
Ad-Targeting Headwinds to Hurt Top-Line Growth
Ad targeting-related headwinds are expected to have affected the ad-revenue growth rate in the to-be-reported quarter. It is worth mentioning that changes made by Apple AAPL and Google in their mobile operating systems and browser platforms have limited Meta’s ability to track the user-activity trend.
Apple’s iOS changes have made ad targeting difficult, which has increased the cost of driving outcomes. Measuring these outcomes has also become difficult. Meta expects these factors to hurt advertising growth in the third quarter and 2022.
Further impacting Meta’s top line is slowing global Monthly Active Users (MAU). In the second quarter, the firm reported roughly 3.65 billion people used at least one of their family of apps — Facebook, Instagram, Messenger and WhatsApp. For the third quarter of 2022, the Zacks Consensus Estimate for Meta's MAU worldwide is pegged at 2.97 billion.
However, Europe DAUs and MAUs are expected to have declined in the third quarter due to the loss of users in Russia following the government’s banning of Facebook and Instagram in the country. For the third quarter, the Zacks Consensus Estimate for Meta’s MAU and DAU in Europe is pegged at 412 million MAU and 305 million DAU.
The declining ad revenues have affected Meta’s strategy to fund reality labs business segment growth with the capital generated from the advertisement business. As a result, it slowed down its investments in certain Reality Labs projects costing a lot of capital and were responsible for creating the metaverse. Meta currently carries Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the second quarter of 2022, Reality Labs revenues (1.6% of total revenues) increased 48.2% year over year to $452 million. The company has been diversifying its investments in developing certain AI infrastructure, which will drive revenue growth across ad business and the metaverse in the long run. This is expected to have aided in reducing operating expenses and might have favored the bottom-line growth in the third quarter. For the third quarter, the Zacks Consensus Estimate for revenues of reality labs business segment is pegged at $411 million.
Meta Investing in AI to Boost Top Line
Despite the company facing issues in Europe, Instagram’s growing popularity in international markets, particularly in Asia, has been helping Meta expand its user base. Much of it can be attributed to the growing popularity of short-form videos — Reels on Instagram. Reels make up 20% of the time people spend on Instagram. This new feature has been attracting Gen-Z to the platform amid competition from Snap’s Snapchat, Twitter and TikTok.
In order to increase revenues in the third quarter, Meta has been growing video monetization, especially in short-form videos like Reels, evolving their ad systems to do more with less data that will aid in reducing legal woes, which have been costing the company huge amounts of capital, and investing heavily in Artificial Intelligence (AI) and Machine Learning (ML) to support the ads infrastructure.
One of the most important factors contributing to Meta’s AI technology growth is its partnerships with PyTorch foundation co-founders NVIDIA NVDA and Advanced Micro Devices AMD to develop and architect the required networking system and AI models for the metaverse.
AMD has collaborated with META as an ecosystem partner to build a Metaverse-ready radio access unit (RAN). AMD’s radio chip Xilinx Zynq UltraScale RFSoC will be utilized to develop multiple Evenstar radio units (RU) to expand 4G/5G mobile network infrastructure, which is crucial for the metaverse.
Meta has collaborated with NVIDIA to build an AI research supercomputer, which is helping META AI researchers to build different AI models crucial for building the metaverse.
AI and ML are likely to help the company provide privacy-enhancing technologies and drive ad ranking and measurement capabilities.
Just Released: Zacks Unveils the Top 5 EV Stocks for 2022
For several months now, electric vehicles have been disrupting the $82 billion automotive industry. And that disruption is only getting bigger thanks to sky-high gas prices. Even titans in the financial industry including George Soros, Jeff Bezos, and Ray Dalio have invested in this unstoppable wave. You don't want to be sitting on your hands while EV stocks break out and climb to new highs. In a new free report, Zacks is revealing the top 5 EV stocks for investors. Next year, don't look back on today wishing you had taken advantage of this opportunity.
>>Send me my free report revealing the top 5 EV stocks
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Meta Platforms, Inc. (META): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It is worth mentioning that changes made by Apple AAPL and Google in their mobile operating systems and browser platforms have limited Meta’s ability to track the user-activity trend. Apple Inc. (AAPL): Free Stock Analysis Report However, Europe DAUs and MAUs are expected to have declined in the third quarter due to the loss of users in Russia following the government’s banning of Facebook and Instagram in the country.
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It is worth mentioning that changes made by Apple AAPL and Google in their mobile operating systems and browser platforms have limited Meta’s ability to track the user-activity trend. Apple Inc. (AAPL): Free Stock Analysis Report For the third quarter, the Zacks Consensus Estimate for Meta’s MAU and DAU in Europe is pegged at 412 million MAU and 305 million DAU.
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It is worth mentioning that changes made by Apple AAPL and Google in their mobile operating systems and browser platforms have limited Meta’s ability to track the user-activity trend. Apple Inc. (AAPL): Free Stock Analysis Report Meta Platforms, Inc. Price and EPS Surprise Meta Platforms, Inc. price-eps-surprise | Meta Platforms, Inc. Quote Ad-Targeting Headwinds to Hurt Top-Line Growth Ad targeting-related headwinds are expected to have affected the ad-revenue growth rate in the to-be-reported quarter.
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It is worth mentioning that changes made by Apple AAPL and Google in their mobile operating systems and browser platforms have limited Meta’s ability to track the user-activity trend. Apple Inc. (AAPL): Free Stock Analysis Report The declining ad revenues have affected Meta’s strategy to fund reality labs business segment growth with the capital generated from the advertisement business.
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18741.0
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2022-10-25 00:00:00 UTC
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US STOCKS-Nasdaq leads Wall St higher on hopes of less-hawkish Federal Reserve
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-leads-wall-st-higher-on-hopes-of-less-hawkish-federal-reserve
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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.
Earnings from Microsoft, Alphabet awaited
U.S. consumer confidence falls in October
Coca-Cola jumps after raising annual outlook
3M falls due to FY forecast on dollar impact
Indexes up: Dow 0.82%, S&P 1.27%, Nasdaq 1.88%
Adds comments, updates prices to early afternoon
By Amruta Khandekar and Shreyashi Sanyal
Oct 25 (Reuters) - The Nasdaq led Wall Street's main indexes higher on Tuesday, as U.S. Treasury yields dropped amid growing bets of a let up in the pace of interest-rate hikes on more signs of a cooling economy.
Home prices dropped sharply in August, while consumer confidence fell in October, coming on the back of a contraction in U.S. business activity, suggesting that the Federal Reserve's aggressive policy to tame inflation is beginning to take root.
The tech-heavy Nasdaq .IXIC jumped more than 2% in the session as the 10-year Treasury yield US10YT=RR hit the day's low of 4.05% before bouncing slightly. US/
"We know we're going to get a three-quarter point hike (in November), but there's a possibility that that'll be only a half a point when we get to December," said Randy Frederick, managing director, trading and derivatives at Charles Schwab in Austin.
"There has been quite a bit of discussion from Fed members that the Fed may completely pause at that point going into next year, which may be a little optimistic."
Meanwhile, investors are focusing on earnings from megacap tech companies, including Microsoft MSFT.O and Google-owner Alphabet GOOGL.O, for clues on how corporate America is holding up in the face of inflation and rising interest rates.
Shares of Microsoft and Alphabet, which will report results after market close, were up 0.8% each, while Apple AAPL.O and Amazon.com AMZN.O also rose ahead of quarterly earnings later this week.
The earnings season has been better than expected, with nearly three quarters of the 129 companies in the S&P 500 exceeding profit estimates, according to Refinitiv data.
Among the Dow components, Coca-Cola Co KO.N rose 1.3% after the company raised its annual revenue and profit forecasts, banking on steady demand amid price increases.
3M MMM.N, on the other hand, fell 0.4% as it cut its full-year revenue and profit forecasts due to a stronger dollar.
General Motors GM.N jumped 4% after reaffirming its full-year outlook. Raytheon Technologies Corp RTX.N fell 1.8% as the aerospace supplier trimmed its sales outlook, while United Parcel Service Inc UPS.N added 1.3% on stronger-than-expected adjusted profit.
The three main stock indexes are set to rise for the third straight session, with the benchmark S&P 500 .SPX up more than 7% from its recent closing low hit on Oct. 12.
At 12:42 p.m. ET, the Dow Jones Industrial Average .DJI was up 258.86 points, or 0.82%, at 31,758.48, the S&P 500 .SPX was up 48.21 points, or 1.27%, at 3,845.55, and the Nasdaq Composite .IXIC was up 206.02 points, or 1.88%, at 11,158.63.
Advancing issues outnumbered decliners by a 5.56-to-1 ratio on the NYSE and by a 4.32-to-1 ratio on the Nasdaq.
The S&P index recorded 12 new 52-week highs and one new low, while the Nasdaq recorded 61 new highs and 101 new lows.
(Reporting by Amruta Khandekar and Shreyashi Sanyal in Bengaluru; Editing by Maju Samuel 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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Shares of Microsoft and Alphabet, which will report results after market close, were up 0.8% each, while Apple AAPL.O and Amazon.com AMZN.O also rose ahead of quarterly earnings later this week. Earnings from Microsoft, Alphabet awaited U.S. consumer confidence falls in October Coca-Cola jumps after raising annual outlook 3M falls due to FY forecast on dollar impact Indexes up: Dow 0.82%, S&P 1.27%, Nasdaq 1.88% Adds comments, updates prices to early afternoon By Amruta Khandekar and Shreyashi Sanyal Oct 25 (Reuters) - The Nasdaq led Wall Street's main indexes higher on Tuesday, as U.S. Treasury yields dropped amid growing bets of a let up in the pace of interest-rate hikes on more signs of a cooling economy. Home prices dropped sharply in August, while consumer confidence fell in October, coming on the back of a contraction in U.S. business activity, suggesting that the Federal Reserve's aggressive policy to tame inflation is beginning to take root.
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Shares of Microsoft and Alphabet, which will report results after market close, were up 0.8% each, while Apple AAPL.O and Amazon.com AMZN.O also rose ahead of quarterly earnings later this week. Earnings from Microsoft, Alphabet awaited U.S. consumer confidence falls in October Coca-Cola jumps after raising annual outlook 3M falls due to FY forecast on dollar impact Indexes up: Dow 0.82%, S&P 1.27%, Nasdaq 1.88% Adds comments, updates prices to early afternoon By Amruta Khandekar and Shreyashi Sanyal Oct 25 (Reuters) - The Nasdaq led Wall Street's main indexes higher on Tuesday, as U.S. Treasury yields dropped amid growing bets of a let up in the pace of interest-rate hikes on more signs of a cooling economy. Among the Dow components, Coca-Cola Co KO.N rose 1.3% after the company raised its annual revenue and profit forecasts, banking on steady demand amid price increases.
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Shares of Microsoft and Alphabet, which will report results after market close, were up 0.8% each, while Apple AAPL.O and Amazon.com AMZN.O also rose ahead of quarterly earnings later this week. Earnings from Microsoft, Alphabet awaited U.S. consumer confidence falls in October Coca-Cola jumps after raising annual outlook 3M falls due to FY forecast on dollar impact Indexes up: Dow 0.82%, S&P 1.27%, Nasdaq 1.88% Adds comments, updates prices to early afternoon By Amruta Khandekar and Shreyashi Sanyal Oct 25 (Reuters) - The Nasdaq led Wall Street's main indexes higher on Tuesday, as U.S. Treasury yields dropped amid growing bets of a let up in the pace of interest-rate hikes on more signs of a cooling economy. ET, the Dow Jones Industrial Average .DJI was up 258.86 points, or 0.82%, at 31,758.48, the S&P 500 .SPX was up 48.21 points, or 1.27%, at 3,845.55, and the Nasdaq Composite .IXIC was up 206.02 points, or 1.88%, at 11,158.63.
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Shares of Microsoft and Alphabet, which will report results after market close, were up 0.8% each, while Apple AAPL.O and Amazon.com AMZN.O also rose ahead of quarterly earnings later this week. Earnings from Microsoft, Alphabet awaited U.S. consumer confidence falls in October Coca-Cola jumps after raising annual outlook 3M falls due to FY forecast on dollar impact Indexes up: Dow 0.82%, S&P 1.27%, Nasdaq 1.88% Adds comments, updates prices to early afternoon By Amruta Khandekar and Shreyashi Sanyal Oct 25 (Reuters) - The Nasdaq led Wall Street's main indexes higher on Tuesday, as U.S. Treasury yields dropped amid growing bets of a let up in the pace of interest-rate hikes on more signs of a cooling economy. ET, the Dow Jones Industrial Average .DJI was up 258.86 points, or 0.82%, at 31,758.48, the S&P 500 .SPX was up 48.21 points, or 1.27%, at 3,845.55, and the Nasdaq Composite .IXIC was up 206.02 points, or 1.88%, at 11,158.63.
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18742.0
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2022-10-25 00:00:00 UTC
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Apple's iPhone Revenue Set to Be Key in Q4 Earnings
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AAPL
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https://www.nasdaq.com/articles/apples-iphone-revenue-set-to-be-key-in-q4-earnings
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nan
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nan
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Apple AAPL, a behemoth in the market, is on deck to unveil quarterly earnings on October 27th, after the market close.
Revenue from the company’s flagship product, the iPhone, will be a closely watched metric and a focal point of the entire release.
Let’s take a deeper dive into what to expect.
iPhone Revenue
In its latest print, the company’s iPhone revenue grew 2.8% Y/Y to $40.7 billion on the back of solid demand for the iPhone 13, accounting for roughly 49% of AAPL’s total sales in the quarter.
Further, the reported figure easily beat the Zacks Consensus Estimate of $38.9 billion by 4.4%, representing the fifth positive surprise out of the last six, undoubtedly a major highlight.
Image Source: Zacks Investment Research
For the upcoming print, the Zacks Consensus Estimate for iPhone revenue sits at $42.8 billion, indicating an improvement of 10% from year-ago iPhone revenue of $38.9 billion.
Still, it’s worth noting that the company has decided to pull back production of its newest iPhone 14 models owing to demand that has failed to show.
Share Performance & Valuation
Year-to-date, Apple shares have held up relatively well, down 14% vs. the general market’s decline of roughly 20%.
Image Source: Zacks Investment Research
The relative strength shows that market participants have respected Apple shares much higher than most, undoubtedly a positive in a historically-volatile 2022.
AAPL’s valuation multiples have pulled back by a fair margin; the company’s 22.9X forward earnings multiple is just a tick below its five-year median and nowhere near 2021 highs of 35.6X.
The company carries a Value Style Score of a C.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have primarily been bullish regarding their earnings outlook, with three positive earnings estimate revisions hitting the tape over the last several months. The Zacks Consensus EPS Estimate of $1.26 suggests Y/Y earnings growth of a modest 1.6%.
Image Source: Zacks Investment Research
Apple’s top-line looks to improve as well; the Zacks Consensus Sales Estimate of $88.5 billion suggests revenue growth of 6% from year-ago quarterly sales of $83.4 billion.
Bottom Line
Revenue from the company’s flagship product, the iPhone, will be a closely monitored metric in the earnings call.
As it stands, the Zacks Consensus Estimate suggests solid Y/Y revenue growth for the legendary product, and Apple has positively surprised on this metric consistently as of late.
Of course, the lower-than-expected demand for the iPhone 14 product family causing AAPL to pull back production is something that can’t be ignored.
The tech titan has an impressive earnings track record, exceeding revenue and earnings estimates in nine of its last ten quarters. Just in its latest print, Apple AAPL registered a 5.3% EPS beat and a 1.2% revenue beat.
Just Released: Zacks Unveils the Top 5 EV Stocks for 2022
For several months now, electric vehicles have been disrupting the $82 billion automotive industry. And that disruption is only getting bigger thanks to sky-high gas prices. Even titans in the financial industry including George Soros, Jeff Bezos, and Ray Dalio have invested in this unstoppable wave. You don't want to be sitting on your hands while EV stocks break out and climb to new highs. In a new free report, Zacks is revealing the top 5 EV stocks for investors. Next year, don't look back on today wishing you had taken advantage of this opportunity.
>>Send me my free report revealing the top 5 EV stocks
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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, a behemoth in the market, is on deck to unveil quarterly earnings on October 27th, after the market close. iPhone Revenue In its latest print, the company’s iPhone revenue grew 2.8% Y/Y to $40.7 billion on the back of solid demand for the iPhone 13, accounting for roughly 49% of AAPL’s total sales in the quarter. AAPL’s valuation multiples have pulled back by a fair margin; the company’s 22.9X forward earnings multiple is just a tick below its five-year median and nowhere near 2021 highs of 35.6X.
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Apple AAPL, a behemoth in the market, is on deck to unveil quarterly earnings on October 27th, after the market close. iPhone Revenue In its latest print, the company’s iPhone revenue grew 2.8% Y/Y to $40.7 billion on the back of solid demand for the iPhone 13, accounting for roughly 49% of AAPL’s total sales in the quarter. AAPL’s valuation multiples have pulled back by a fair margin; the company’s 22.9X forward earnings multiple is just a tick below its five-year median and nowhere near 2021 highs of 35.6X.
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iPhone Revenue In its latest print, the company’s iPhone revenue grew 2.8% Y/Y to $40.7 billion on the back of solid demand for the iPhone 13, accounting for roughly 49% of AAPL’s total sales in the quarter. Apple AAPL, a behemoth in the market, is on deck to unveil quarterly earnings on October 27th, after the market close. AAPL’s valuation multiples have pulled back by a fair margin; the company’s 22.9X forward earnings multiple is just a tick below its five-year median and nowhere near 2021 highs of 35.6X.
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Apple Inc. (AAPL): Free Stock Analysis Report Apple AAPL, a behemoth in the market, is on deck to unveil quarterly earnings on October 27th, after the market close. iPhone Revenue In its latest print, the company’s iPhone revenue grew 2.8% Y/Y to $40.7 billion on the back of solid demand for the iPhone 13, accounting for roughly 49% of AAPL’s total sales in the quarter.
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18743.0
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2022-10-25 00:00:00 UTC
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US STOCKS-Nasdaq leads Wall Street higher as investors brace for megacap earnings
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-leads-wall-street-higher-as-investors-brace-for-megacap-earnings
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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.
Earnings from Microsoft, Alphabet awaited
Coca-Cola jumps on raising annual outlook
3M falls on cutting FY forecast on dollar impact
GM shares up as profit beats estimates
Indexes up: Dow 0.44%, S&P 0.93%, Nasdaq 1.56%
Updates to market open
By Amruta Khandekar and Shreyashi Sanyal
Oct 25 (Reuters) - Wall Street's main indexes rose for the third straight session on Tuesday, led by the Nasdaq, as a fall in U.S. Treasury yields lifted megacap growth companies including Microsoft and Alphabet ahead of their earnings reports later in the day.
Shares of Microsoft MSFT.O and Google-owner Alphabet GOOGL.O were up 0.6% and 1.2% respectively, while Apple AAPL.O and Amazon.com AMZN.O also rose ahead of reporting quarterly earnings this week.
Earnings from the companies will offer a glimpse into how corporate America is holding up in the face of decades-high inflation and tighter financial conditions.
"There is a positive view (on technology earnings)," said Giuseppe Sette, president of AI investment platform Toggle. "In a way, their ability to play through an inflationary cycle is strong, especially because tech has always had a very flexible ability to adjust prices."
The tech-heavy Nasdaq .IXIC jumped against a drop in the 10-year Treasury yield US10YT=RR which touched a session low of 4.06% from 4.23% on Monday. US/
The earnings season has been better than expected, with nearly three quarters of the 129 companies in the S&P 500 having beaten estimates, according to Refinitiv data.
Among Dow components, Coca-Cola Co KO.N rose 0.7% after the company raised its annual revenue and profit forecasts, banking on steady demand amid price increases.
3M MMM.N, on the other hand, fell 0.8% as it cut its full-year revenue and profit forecasts due to a stronger dollar.
Meanwhile, General Motors GM.N added 2.8% after reaffirming its full-year outlook.
Raytheon Technologies Corp RTX.N fell 2.1% after the aerospace supplier trimmed its 2022 sales outlook, while United Parcel Service Inc UPS.N added 3.0% on posting a stronger-than-expected quarterly adjusted profit.
While earnings reports are expected to influence trading decisions this week, U.S. stock markets rose in the past two sessions after signs of economic softness suggested the effects of the Federal Reserve's policy aimed at curbing decades-high inflation were taking root.
Markets are still pricing in a fourth straight 75 basis point rate hike from the Fed on Nov. 2, but as a survey showed U.S. consumer confidence ebbed in October amid rising concerns about inflation and a possible recession next year, bets of another jumbo-sized raise in December eased. FEDWATCH
Toggle's Sette noted that it is not yet a done deal that investors are shifting towards a more dovish Fed. However, "it's quite possible that we see a classic Fed error."
At 10:18 a.m. ET, the Dow Jones Industrial Average .DJI was up 138.99 points, or 0.44%, at 31,638.61, the S&P 500 .SPX was up 35.21 points, or 0.93%, at 3,832.55, and the Nasdaq Composite .IXIC was up 170.87 points, or 1.56%, at 11,123.48.
Advancing issues outnumbered decliners by a 5.16-to-1 ratio on the NYSE and by a 4.03-to-1 ratio on the Nasdaq.
The S&P index recorded 10 new 52-week highs and one new low, while the Nasdaq recorded 41 new highs and 76 new lows.
(Reporting by Amruta Khandekar and Shreyashi Sanyal 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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Shares of Microsoft MSFT.O and Google-owner Alphabet GOOGL.O were up 0.6% and 1.2% respectively, while Apple AAPL.O and Amazon.com AMZN.O also rose ahead of reporting quarterly earnings this week. Earnings from Microsoft, Alphabet awaited Coca-Cola jumps on raising annual outlook 3M falls on cutting FY forecast on dollar impact GM shares up as profit beats estimates Indexes up: Dow 0.44%, S&P 0.93%, Nasdaq 1.56% Updates to market open By Amruta Khandekar and Shreyashi Sanyal Oct 25 (Reuters) - Wall Street's main indexes rose for the third straight session on Tuesday, led by the Nasdaq, as a fall in U.S. Treasury yields lifted megacap growth companies including Microsoft and Alphabet ahead of their earnings reports later in the day. While earnings reports are expected to influence trading decisions this week, U.S. stock markets rose in the past two sessions after signs of economic softness suggested the effects of the Federal Reserve's policy aimed at curbing decades-high inflation were taking root.
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Shares of Microsoft MSFT.O and Google-owner Alphabet GOOGL.O were up 0.6% and 1.2% respectively, while Apple AAPL.O and Amazon.com AMZN.O also rose ahead of reporting quarterly earnings this week. Earnings from Microsoft, Alphabet awaited Coca-Cola jumps on raising annual outlook 3M falls on cutting FY forecast on dollar impact GM shares up as profit beats estimates Indexes up: Dow 0.44%, S&P 0.93%, Nasdaq 1.56% Updates to market open By Amruta Khandekar and Shreyashi Sanyal Oct 25 (Reuters) - Wall Street's main indexes rose for the third straight session on Tuesday, led by the Nasdaq, as a fall in U.S. Treasury yields lifted megacap growth companies including Microsoft and Alphabet ahead of their earnings reports later in the day. Among Dow components, Coca-Cola Co KO.N rose 0.7% after the company raised its annual revenue and profit forecasts, banking on steady demand amid price increases.
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Shares of Microsoft MSFT.O and Google-owner Alphabet GOOGL.O were up 0.6% and 1.2% respectively, while Apple AAPL.O and Amazon.com AMZN.O also rose ahead of reporting quarterly earnings this week. Earnings from Microsoft, Alphabet awaited Coca-Cola jumps on raising annual outlook 3M falls on cutting FY forecast on dollar impact GM shares up as profit beats estimates Indexes up: Dow 0.44%, S&P 0.93%, Nasdaq 1.56% Updates to market open By Amruta Khandekar and Shreyashi Sanyal Oct 25 (Reuters) - Wall Street's main indexes rose for the third straight session on Tuesday, led by the Nasdaq, as a fall in U.S. Treasury yields lifted megacap growth companies including Microsoft and Alphabet ahead of their earnings reports later in the day. While earnings reports are expected to influence trading decisions this week, U.S. stock markets rose in the past two sessions after signs of economic softness suggested the effects of the Federal Reserve's policy aimed at curbing decades-high inflation were taking root.
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Shares of Microsoft MSFT.O and Google-owner Alphabet GOOGL.O were up 0.6% and 1.2% respectively, while Apple AAPL.O and Amazon.com AMZN.O also rose ahead of reporting quarterly earnings this week. Earnings from Microsoft, Alphabet awaited Coca-Cola jumps on raising annual outlook 3M falls on cutting FY forecast on dollar impact GM shares up as profit beats estimates Indexes up: Dow 0.44%, S&P 0.93%, Nasdaq 1.56% Updates to market open By Amruta Khandekar and Shreyashi Sanyal Oct 25 (Reuters) - Wall Street's main indexes rose for the third straight session on Tuesday, led by the Nasdaq, as a fall in U.S. Treasury yields lifted megacap growth companies including Microsoft and Alphabet ahead of their earnings reports later in the day. 3M MMM.N, on the other hand, fell 0.8% as it cut its full-year revenue and profit forecasts due to a stronger dollar.
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18744.0
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2022-10-25 00:00:00 UTC
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Will Top-Line Contraction Dent Intel (INTC) Q3 Earnings?
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AAPL
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https://www.nasdaq.com/articles/will-top-line-contraction-dent-intel-intc-q3-earnings
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nan
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nan
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Intel Corporation INTC is scheduled to report third-quarter 2022 results on Oct 27 after the closing bell. In the last reported quarter, the company delivered an earnings surprise of a negative 58%. It pulled off a trailing four-quarter earnings surprise of 6.5%, on average.
The Santa Clara, CA-based semiconductor company is expected to have recorded year-over-year lower revenues due to a fall in sales in the Client Computing Group and Datacenter and AI Group.
Factors at Play
In the third quarter, Intel launched the first set of open-source AI reference kits that make AI more accessible to organizations in on-prem, cloud and edge environments. The kits enable data scientists and developers to deploy AI faster and more easily across healthcare, manufacturing, retail and other industries with higher accuracy for improved performance at lower cost of implementation. This is likely to get reflected in the upcoming results.
During the to-be-reported quarter, MediaTek inked an agreement with Intel to manufacture chips using Intel Foundry Services’ advanced process technologies. Leveraging Intel process technologies that are optimized for high performance and low power consumption, MediaTek aims to manufacture multiple chips for a range of smart edge devices. This is likely to have generated incremental revenues in the quarter.
However, dwindling PC sales, supply chain adversities and an uncertain macroeconomic environment remain an overhang on the company’s top-line performance. To improve the sagging chip sales, the company unveiled the 13th-Generation Intel Core Processor. The top-of-the-line version of the chip, the Core i9-13900K, is reportedly the fastest desktop processor (with a top speed of 5.8Ghz) with 24 processing cores that are broken down into eight performance cores and 16 efficiency cores. Leveraging Intel 7 process and x86 performance hybrid architecture, the chip enables up to 15% better single-threaded performance and up to 41% better multi-threaded performance per company standards.
Intel is witnessing intensifying competition in the server, storage and networking markets. The Advanced RISC Machines is posing a challenge in the fast-growing micro-server segment, and its designs have been adopted by several competitors. Delay in 7nm process-based chips is also a major concern. The consensus estimate for Client Computing Group stands at $8,082 million, which indicates a decline from $9,664 million reported a year ago, while that for Datacenter and AI Group is $5,084 million, down from $6,496 million.
For the September quarter, the Zacks Consensus Estimate for total revenues is pegged at $15,491 million, which indicates a decline from the year-ago quarter’s reported figure of $19,192 million. The consensus estimate for adjusted earnings per share stands at 34 cents, suggesting a sharp decline from $1.71 reported in the prior year.
Earnings Whispers
Our proven model does not predict an earnings beat for Intel this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -2.21%, with the former pegged at 33 cents and the latter at 34 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Intel Corporation Price and EPS Surprise
Intel Corporation price-eps-surprise | Intel Corporation Quote
Zacks Rank: Intel currently has a Zacks Rank #5 (Strong Sell).
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Arista Networks, Inc. ANET is set to release quarterly numbers on Oct 31. It has an Earnings ESP of +1.27% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for NETGEAR, Inc. NTGR is +8.00% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Oct 26.
The Earnings ESP for Apple Inc. AAPL is +0.89% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Oct 27.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Just Released: Zacks Unveils the Top 5 EV Stocks for 2022
For several months now, electric vehicles have been disrupting the $82 billion automotive industry. And that disruption is only getting bigger thanks to sky-high gas prices. Even titans in the financial industry including George Soros, Jeff Bezos, and Ray Dalio have invested in this unstoppable wave. You don't want to be sitting on your hands while EV stocks break out and climb to new highs. In a new free report, Zacks is revealing the top 5 EV stocks for investors. Next year, don't look back on today wishing you had taken advantage of this opportunity.
>>Send me my free report revealing the top 5 EV stocks
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Intel Corporation (INTC): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
NETGEAR, Inc. (NTGR): Free Stock Analysis Report
Arista Networks, Inc. (ANET): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Earnings ESP for Apple Inc. AAPL is +0.89% and it carries a Zacks Rank of 3. Apple Inc. (AAPL): Free Stock Analysis Report The kits enable data scientists and developers to deploy AI faster and more easily across healthcare, manufacturing, retail and other industries with higher accuracy for improved performance at lower cost of implementation.
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The Earnings ESP for Apple Inc. AAPL is +0.89% and it carries a Zacks Rank of 3. Apple Inc. (AAPL): Free Stock Analysis Report Intel Corporation Price and EPS Surprise Intel Corporation price-eps-surprise | Intel Corporation Quote Zacks Rank: Intel currently has a Zacks Rank #5 (Strong Sell).
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The Earnings ESP for Apple Inc. AAPL is +0.89% and it carries a Zacks Rank of 3. Apple Inc. (AAPL): Free Stock Analysis Report For the September quarter, the Zacks Consensus Estimate for total revenues is pegged at $15,491 million, which indicates a decline from the year-ago quarter’s reported figure of $19,192 million.
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The Earnings ESP for Apple Inc. AAPL is +0.89% and it carries a Zacks Rank of 3. Apple Inc. (AAPL): Free Stock Analysis Report Leveraging Intel 7 process and x86 performance hybrid architecture, the chip enables up to 15% better single-threaded performance and up to 41% better multi-threaded performance per company standards.
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18745.0
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2022-10-25 00:00:00 UTC
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ESGU, KALL: Big ETF Outflows
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AAPL
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https://www.nasdaq.com/articles/esgu-kall%3A-big-etf-outflows
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nan
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nan
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares ESG Aware MSCI USA ETF, where 13,450,000 units were destroyed, or a 5.3% decrease week over week. Among the largest underlying components of ESGU, in morning trading today Apple is up about 1.1%, and Microsoft is up by about 0.6%.
And on a percentage change basis, the ETF with the biggest outflow was the KALL ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior.
VIDEO: ESGU, KALL: Big ETF Outflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of ESGU, in morning trading today Apple is up about 1.1%, and Microsoft is up by about 0.6%. And on a percentage change basis, the ETF with the biggest outflow was the KALL ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. VIDEO: ESGU, KALL: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares ESG Aware MSCI USA ETF, where 13,450,000 units were destroyed, or a 5.3% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the KALL ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. VIDEO: ESGU, KALL: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares ESG Aware MSCI USA ETF, where 13,450,000 units were destroyed, or a 5.3% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the KALL ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. VIDEO: ESGU, KALL: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares ESG Aware MSCI USA ETF, where 13,450,000 units were destroyed, or a 5.3% decrease week over week. Among the largest underlying components of ESGU, in morning trading today Apple is up about 1.1%, and Microsoft is up by about 0.6%. And on a percentage change basis, the ETF with the biggest outflow was the KALL ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior.
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18746.0
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2022-10-25 00:00:00 UTC
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Will Higher Revenues Benefit T-Mobile (TMUS) Q3 Earnings?
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AAPL
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https://www.nasdaq.com/articles/will-higher-revenues-benefit-t-mobile-tmus-q3-earnings
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nan
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nan
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T-Mobile US, Inc. TMUS is scheduled to report third-quarter 2022 results on Oct 27 after the closing bell. In the last reported quarter, the company delivered a stellar earnings surprise of 248.8%. It pulled off a trailing four-quarter earnings surprise of 219.3%, on average.
The Bellevue, WA-based wireless service provider is expected to have recorded year-over-year higher revenues, driven by strong performance across its wireless businesses.
Factors at Play
In the third quarter, T-Mobile augmented its 5G footprint in the country by introducing 5G Home Internet services in states like Colorado, Iowa, Kansas, Missouri, Oklahoma, Maryland, Connecticut, Massachusetts, New Jersey, New York and Pennsylvania. The company has more than 1.5 million Home Internet customers, positioning itself as the fastest-growing broadband provider for the third quarter in a row. With the expansion, more than 40 million households are eligible for 5G Home Internet.
The Home Internet service offers fast, affordable home broadband connectivity through a 5G Gateway device and is accessible by all the devices in the home. It neither has any data caps nor charges any equipment fee for the Gateway device and is priced at a flat rate of $50 per month with AutoPay. Customers can even avail the service at $30 per month with Magenta MAX, T-Mobile’s most popular phone plan. It also requires no annual service contract and does not have any early termination fees for discontinuation of service.
In third-quarter 2022, the company, in association with Meta Platforms, Inc., offered Canva Pro free to all eligible small business customers. It also rolled out $200 of free advertising to entice customers. T-Mobile launched new Magenta for Business plans, along with Microsoft 365, at no additional cost on up to two lines per account. New or existing customers of Magenta for Business, Business Unlimited Ultimate+ and Business Unlimited Advanced plan with three lines or more will be provided with greater value from their business plans comprising Scam Shield Premium, Microsoft 365, Mobile hotspot data, six months of Canva Pro and $200 in Facebook or Instagram advertising credits. Such lucrative phone plans are likely to have generated healthy revenues in the quarter.
During the quarter, T-Mobile collaborated with SpaceX to bring Coverage Above and Beyond, which is a spectacular new plan designed to bring cell phone connectivity everywhere. T-Mobile, through its best-in-class wireless networks, is working to provide absolute coverage in all places of the United States, including remote locations where traditional cell signals fail to operate. This is likely to be reflected in the upcoming results.
For the September quarter, the Zacks Consensus Estimate for total revenues is pegged at $20,076 million, which indicates growth from the year-ago quarter’s reported figure of $19,600 million. The consensus estimate for adjusted earnings per share stands at 54 cents, suggesting a marginal decline from 55 cents reported in the prior year.
Earnings Whispers
Our proven model does not predict an earnings beat for T-Mobile this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -3.95%, with the former pegged at 58 cents and the latter at 60 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
TMobile US, Inc. Price and EPS Surprise
TMobile US, Inc. price-eps-surprise | TMobile US, Inc. Quote
Zacks Rank: T-Mobile currently has a Zacks Rank #2.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Arista Networks, Inc. ANET is set to release quarterly numbers on Oct 31. It has an Earnings ESP of +1.27% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for NETGEAR, Inc. NTGR is +8.00% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Oct 26.
The Earnings ESP for Apple Inc. AAPL is +0.89% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Oct 27.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Just Released: Zacks Unveils the Top 5 EV Stocks for 2022
For several months now, electric vehicles have been disrupting the $82 billion automotive industry. And that disruption is only getting bigger thanks to sky-high gas prices. Even titans in the financial industry including George Soros, Jeff Bezos, and Ray Dalio have invested in this unstoppable wave. You don't want to be sitting on your hands while EV stocks break out and climb to new highs. In a new free report, Zacks is revealing the top 5 EV stocks for investors. Next year, don't look back on today wishing you had taken advantage of this opportunity.
>>Send me my free report revealing the top 5 EV stocks
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
NETGEAR, Inc. (NTGR): Free Stock Analysis Report
TMobile US, Inc. (TMUS): Free Stock Analysis Report
Arista Networks, Inc. (ANET): 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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The Earnings ESP for Apple Inc. AAPL is +0.89% and it carries a Zacks Rank of 3. Apple Inc. (AAPL): Free Stock Analysis Report Factors at Play In the third quarter, T-Mobile augmented its 5G footprint in the country by introducing 5G Home Internet services in states like Colorado, Iowa, Kansas, Missouri, Oklahoma, Maryland, Connecticut, Massachusetts, New Jersey, New York and Pennsylvania.
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The Earnings ESP for Apple Inc. AAPL is +0.89% and it carries a Zacks Rank of 3. Apple Inc. (AAPL): Free Stock Analysis Report The Home Internet service offers fast, affordable home broadband connectivity through a 5G Gateway device and is accessible by all the devices in the home.
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The Earnings ESP for Apple Inc. AAPL is +0.89% and it carries a Zacks Rank of 3. Apple Inc. (AAPL): Free Stock Analysis Report New or existing customers of Magenta for Business, Business Unlimited Ultimate+ and Business Unlimited Advanced plan with three lines or more will be provided with greater value from their business plans comprising Scam Shield Premium, Microsoft 365, Mobile hotspot data, six months of Canva Pro and $200 in Facebook or Instagram advertising credits.
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The Earnings ESP for Apple Inc. AAPL is +0.89% and it carries a Zacks Rank of 3. Apple Inc. (AAPL): Free Stock Analysis Report Customers can even avail the service at $30 per month with Magenta MAX, T-Mobile’s most popular phone plan.
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18747.0
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2022-10-25 00:00:00 UTC
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Why Earnings from General Motors (GM) and Coca-Cola (KO) Have Changed the Overall Outlook for Stocks
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AAPL
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https://www.nasdaq.com/articles/why-earnings-from-general-motors-gm-and-coca-cola-ko-have-changed-the-overall-outlook-for
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T
his earnings season was always going to be a bit weird, because traders and investors are filtering everything through a forward-looking lens. They don’t much care about the meat of most earnings reports -- the results achieved by the company over the third quarter -- but instead are focused on guidance and are looking for answers in a couple of specific areas. They want to know whether a company expects to see a weaker economic environment going forward, and if there are still supply chain issues that restrict their ability to meet demand.
The market’s reactions to earnings reports have been largely based on those two things. That focus has led to many cases where a stock has moved in the opposite direction to what might seem logical based on EPS or revenue numbers. That happens every quarter to some extent because forward guidance always matters, but it has happened more this quarter where it seems to be the only thing that matters.
The good news is that as earnings season has progressed, stocks have formed a bottom and then rallied quite strongly. Indicating that the positives from a forward-looking perspective have outweighed the negatives.
That was certainly true of two big names that reported this morning. Both Coca-Cola (KO) and GM (GM) reported bottom line beats, although GM did miss on revenue. More importantly, though, both mentioned strong Q3 demand and said they expected that to continue. There was talk in both cases of forex headwinds and input price volatility that made forecasting tricky, but neither company saw any signs of consumer weakness ahead. In fact, in a letter to shareholders, GM CEO Mary Barra said “demand continues to be strong for GM products,” while Coca-Cola was optimistic enough to raise their full-year outlook despite those headwinds.
That contrasts with comments by some more tech-oriented companies that have so far reported, particularly those reliant on online advertising revenue, where a significant slowdown is expected. However, a strong outlook from consumer-driven companies at both the high and low end of the purchase price scale suggests that that is not about consumer weakness, current or anticipated, but more of an adjustment in advertising spend. So, what might have caused that?
The changes in Apple's (AAPL) privacy policies are having more of an impact than anticipated, but could it also be that what we are seeing is a bubble in the digital ad space deflating? It sure looks like it, and if that is true, it is actually good news. It means that the weakness we have seen is both temporary and limited in scope, both of which make it more likely that the worst of the selloff in stocks is over. Social media companies and the like will adjust to the new environment before too long, and if consumer demand proves to be as resilient as both Coca-Cola and GM believe it will, advertising spending overall will increase. The digital slice of the pie may have shrunk, but the pie as a whole will grow.
In a more general sense, business to business sales look so far to have been a little weak last quarter, which has also weighed on some stocks. However, that was based on anticipation of consumer weakness, and if none is evident or expected in the reports of big, global brands, business activity will strengthen over the next few quarters. There could even be in a mini boom if there is pent-up demand.
The outlook a couple of weeks ago, when earnings season started, was not great. The Fed and other central banks were hiking rates and businesses were cutting back in expectation of that having a negative impact on the consumer. There were legitimate fears that the Fed may have already gone too far and that they would cause a painful recession if they kept tightening into a weakening economy. That is still a danger in the future, but reports and commentary such as seen this morning from Coca-Cola and GM indicate that we aren’t there yet, so there is hope.
The views and 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 changes in Apple's (AAPL) privacy policies are having more of an impact than anticipated, but could it also be that what we are seeing is a bubble in the digital ad space deflating? They don’t much care about the meat of most earnings reports -- the results achieved by the company over the third quarter -- but instead are focused on guidance and are looking for answers in a couple of specific areas. There was talk in both cases of forex headwinds and input price volatility that made forecasting tricky, but neither company saw any signs of consumer weakness ahead.
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The changes in Apple's (AAPL) privacy policies are having more of an impact than anticipated, but could it also be that what we are seeing is a bubble in the digital ad space deflating? The good news is that as earnings season has progressed, stocks have formed a bottom and then rallied quite strongly. Both Coca-Cola (KO) and GM (GM) reported bottom line beats, although GM did miss on revenue.
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The changes in Apple's (AAPL) privacy policies are having more of an impact than anticipated, but could it also be that what we are seeing is a bubble in the digital ad space deflating? Both Coca-Cola (KO) and GM (GM) reported bottom line beats, although GM did miss on revenue. In fact, in a letter to shareholders, GM CEO Mary Barra said “demand continues to be strong for GM products,” while Coca-Cola was optimistic enough to raise their full-year outlook despite those headwinds.
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The changes in Apple's (AAPL) privacy policies are having more of an impact than anticipated, but could it also be that what we are seeing is a bubble in the digital ad space deflating? Social media companies and the like will adjust to the new environment before too long, and if consumer demand proves to be as resilient as both Coca-Cola and GM believe it will, advertising spending overall will increase. In a more general sense, business to business sales look so far to have been a little weak last quarter, which has also weighed on some stocks.
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18748.0
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2022-10-25 00:00:00 UTC
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What's in Store for Western Digital (WDC) in Q1 Earnings?
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AAPL
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https://www.nasdaq.com/articles/whats-in-store-for-western-digital-wdc-in-q1-earnings
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Western Digital (WDC) is scheduled to report first-quarter fiscal 2023 results on Oct 27.
For the to-be-reported quarter, the company projects non-GAAP earnings in the range of 35-65 cents. The Zacks Consensus Estimate for earnings is pegged at 49 cents per share, suggesting a decrease of 80.3% from the year-ago quarter’s levels.
Western Digital expects non-GAAP revenues between $3.6 billion and $3.8 billion. The Zacks Consensus Estimate for revenues is currently pegged at $3.63 billion, indicating a decline of 28.1% from the prior-year quarter’s reported figure.
Western Digital Corporation Price and EPS Surprise
Western Digital Corporation price-eps-surprise | Western Digital Corporation Quote
The company surpassed the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of 5.5%, on average. In the past year, shares of WDC have lost 38.6% of their value against the industry’s decline of 29.4%.
Image Source: Zacks Investment Research
Factors to Note Ahead of Q1 Release
Western Digital’s fiscal first-quarter performance is likely to have been driven by the company’s robust product portfolio, especially new product ramps in HDD and flash, amid investments in digital transformation by business enterprises. Strong cloud data center demand is expected to have acted as a tailwind.
The company’s energy-assisted drives (18 and 20 terabytes) and the company’s second-generation NVMe enterprise SSDs have been witnessing strong demand from cloud providers and big enterprise OEMs. The company’s innovations in OptiNAND and SMR to drive its capacity enterprise business are expected to have benefited its performance. The company’s WD Black product line is expected to have witnessed incremental adoption as gamers move toward more customized gaming solutions.
Coming to the product group, the Zacks Consensus Estimate for Flash revenues is pegged at $1.631 billion. Amid the macroeconomic weakness and customers right-sizing their inventory, Flash revenues are likely to have gained from higher demand for second-generation NVMe enterprise SSDs and the ramp-up of new 5G phones incorporating the company’s latest BiCS5 flash solutions.
The Zacks Consensus Estimate for fiscal first-quarter hard disk drive (HDD) revenues is pegged at $1.961 billion. HDD revenues are expected to have been negatively impacted by declines in consumer and client segments.
Weakness in macroeconomic conditions, persistent supply chain troubles and component shortages witnessed globally are likely to have affected the company’s performance in the quarter to be reported. Also, a broad-based decline in retail products across HDD and Flash business is expected to have been a headwind.
Moreover, declining trends witnessed in PC shipments in the third quarter of the calendar year 2022 are likely to have negatively impacted HDD sales in the company’s performance in the quarter under review.
Higher costs associated with ramping up next-generation energy-assisted hard drives and increasing supply chain-related expenses amid stiff competition in the disk drive market might have dented fiscal first-quarter profits.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Western Digital this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Western Digital has an Earnings ESP of 0.00% and presently carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks you may consider as our model shows that these have the right combination of elements to beat on earnings this season.
Stellar Bancorp STEL has an Earnings ESP of +14.34% and currently has a Zacks Rank #2. Stellar Bancorp is scheduled to report earnings on Oct 28. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Stellar Bancorp’s to-be-reported quarter’s earnings and revenues is pegged at 88 cents per share and $56.4 million, respectively. Shares of STEL gained 5.2% in the past year
NETGEAR NTGR has an Earnings ESP of +8.00% and presently carries a Zacks Rank #3. NETGEAR is slated to release quarterly numbers on Oct 26.
The Zacks Consensus Estimate for NTGR’s to-be-reported quarter’s earnings and revenues is pegged at 8 cents per share and $242.8 billion, respectively. Shares of NTGR have lost 33.9% in the past year.
Apple AAPL has an Earnings ESP of +0.89% and currently sports a Zacks Rank #3. Apple is scheduled to report earnings on Oct 27.
The Zacks Consensus Estimate for Apple’s to-be-reported quarter’s earnings and revenues is pegged at $1.26 per share and $88.5 billion, respectively. Apple surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 5.7%. Shares of AAPL have gained 0.2% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Just Released: Zacks Unveils the Top 5 EV Stocks for 2022
For several months now, electric vehicles have been disrupting the $82 billion automotive industry. And that disruption is only getting bigger thanks to sky-high gas prices. Even titans in the financial industry including George Soros, Jeff Bezos, and Ray Dalio have invested in this unstoppable wave. You don't want to be sitting on your hands while EV stocks break out and climb to new highs. In a new free report, Zacks is revealing the top 5 EV stocks for investors. Next year, don't look back on today wishing you had taken advantage of this opportunity.
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Apple Inc. (AAPL): Free Stock Analysis Report
Western Digital Corporation (WDC): Free Stock Analysis Report
NETGEAR, Inc. (NTGR): Free Stock Analysis Report
Stellar Bancorp, Inc. (STEL): 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 an Earnings ESP of +0.89% and currently sports a Zacks Rank #3. Shares of AAPL have gained 0.2% in the past year. Apple Inc. (AAPL): Free Stock Analysis Report
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Apple AAPL has an Earnings ESP of +0.89% and currently sports a Zacks Rank #3. Shares of AAPL have gained 0.2% in the past year. Apple Inc. (AAPL): Free Stock Analysis Report
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Apple AAPL has an Earnings ESP of +0.89% and currently sports a Zacks Rank #3. Shares of AAPL have gained 0.2% in the past year. Apple Inc. (AAPL): Free Stock Analysis Report
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Apple AAPL has an Earnings ESP of +0.89% and currently sports a Zacks Rank #3. Shares of AAPL have gained 0.2% in the past year. Apple Inc. (AAPL): Free Stock Analysis Report
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18749.0
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2022-10-25 00:00:00 UTC
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This Growth Stock Is Down 90%, but Is It a Buy Now?
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AAPL
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https://www.nasdaq.com/articles/this-growth-stock-is-down-90-but-is-it-a-buy-now
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nan
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It's no secret the U.S. economy is going through a challenging period at the moment. High inflation has prompted the Federal Reserve to aggressively hike interest rates, often 75 basis points at a time, triple the more typical 25-basis-point move.
Inflation and interest rate hikes have put pressure on consumers' spending power, in turn forcing companies to cut their marketing budgets as they prepare to earn lesser returns on their investments. That's bad news for a company like Snap (NYSE: SNAP), the parent of social media platform Snapchat, because it's reliant on advertising dollars.
Snap stock fell a whopping 28% last Friday after the company reported its third-quarter financial results. The stock has now declined 90% since hitting its all-time high price of $83.11 in 2021. But there were some positive takeaways from the report. So has the pessimism gone too far and made Snap an attractive buy?
Snapchat's user base is still growing
And the growth is global. The third quarter saw an increase in daily active users (DAU) across every region the company tracks: North America, Europe, and the rest of the world. Overall, the global figure rose 19% year over year to 363 million, which could have positive implications for Snap's ability to recapture the attention of advertisers once the economy recovers.
Remarkably, Snap says it reaches 75% of people aged 13 to 34 years old across 20 different countries, and that makes the platform desirable for companies trying to engage with a young audience. Plus it's building new tools to help advertisers meet those users on their level, including augmented reality (AR) Lenses, which are already delivering major results.
A retailer recently used AR to enable Snapchatters to explore different types of outdoor furniture, and it resulted in a whopping 14-fold increase in the vendor's return on advertising spending. Similarly, a major clothing retailer drew 11 million impressions in the third quarter with its Lens, which allows consumers to try on clothes virtually using AR.
While such innovation is almost certainly part of advertising's future, Snap continues to struggle with new privacy rules instated by Apple last year that prevent Snap and other app creators from tracking their users across the internet. It has led to a drop in monetization with Snap's average revenue per user dipping 11% year over year to $3.11 in the third quarter.
But as time goes on, Snap's ad strategy might become less about targeting and more about engaging users who are proactively seeking AR-powered shopping experiences on the platform. It's because currently, Snap's monetization isn't driven by users interacting with their friends' content but comes instead from users watching content from creators and partners who have the power to influence consumer spending decisions.
Less revenue per user means slowing revenue growth
Despite Snap's average revenue per user declining, its increase in user base overall was enough to boost its third-quarter revenue a modest 6% year over year. But the company's quarterly results have been anything but linear recently.
Snap also refrained from offering revenue guidance for the current fourth quarter, so investors will have to make predictions with one hand tied behind their backs in what's arguably the most important period of the year. Holidays like Thanksgiving and Christmas tend to see an uptick in marketing spending as companies fight for consumers' dollars. And if there's one thing investors don't like, it's uncertainty, so the lack of guidance is one reason Snap stock was punished so heavily last week.
Slowing revenue growth also has other implications. A company like Snap thrives on constant innovation, but when there's less money coming in, it has to choose between spending less and sustaining large losses. Since the beginning of 2022, Snap has incurred a net loss of more than $1.1 billion.
Snap might still be a long-term buy
Despite the swathes of red ink for Snap this year, it's making moves now to cut costs and run a leaner business. In August, the company slashed 20% of its workforce, or around 1,300 staff, and it also shuttered some of its expensive, underperforming business ventures like the Pixy drone.
Plus Snap has more than $4.4 billion in cash, equivalents, and marketable securities on its balance sheet, so it has plenty of runway to continue investing in the business while operating at a loss. However, in this environment, investors might continue to punish Snap stock if the business doesn't begin to show consistent profitability on a generally accepted accounting principles (GAAP) basis.
But so long as the user base continues to expand and the company finds success in new ad experiences with tools like AR, there might be value in the stock over the long term. Since it's trading at a price-to-sales ratio of just 2.9 right now, close to its cheapest valuation since becoming a public company, this might be the time for investors to make a bet -- but perhaps a small one.
10 stocks we like better than Snap Inc.
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Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Inflation and interest rate hikes have put pressure on consumers' spending power, in turn forcing companies to cut their marketing budgets as they prepare to earn lesser returns on their investments. Snap also refrained from offering revenue guidance for the current fourth quarter, so investors will have to make predictions with one hand tied behind their backs in what's arguably the most important period of the year. However, in this environment, investors might continue to punish Snap stock if the business doesn't begin to show consistent profitability on a generally accepted accounting principles (GAAP) basis.
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Less revenue per user means slowing revenue growth Despite Snap's average revenue per user declining, its increase in user base overall was enough to boost its third-quarter revenue a modest 6% year over year. However, in this environment, investors might continue to punish Snap stock if the business doesn't begin to show consistent profitability on a generally accepted accounting principles (GAAP) basis. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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While such innovation is almost certainly part of advertising's future, Snap continues to struggle with new privacy rules instated by Apple last year that prevent Snap and other app creators from tracking their users across the internet. Less revenue per user means slowing revenue growth Despite Snap's average revenue per user declining, its increase in user base overall was enough to boost its third-quarter revenue a modest 6% year over year. Snap might still be a long-term buy Despite the swathes of red ink for Snap this year, it's making moves now to cut costs and run a leaner business.
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Inflation and interest rate hikes have put pressure on consumers' spending power, in turn forcing companies to cut their marketing budgets as they prepare to earn lesser returns on their investments. Since the beginning of 2022, Snap has incurred a net loss of more than $1.1 billion. 10 stocks we like better than Snap Inc.
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18750.0
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2022-10-25 00:00:00 UTC
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US STOCKS-Nasdaq leads Wall Street higher as investors brace for megacap earnings
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-leads-wall-street-higher-as-investors-brace-for-megacap-earnings-0
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By Amruta Khandekar and Shreyashi Sanyal
Oct 25 (Reuters) - Wall Street's main indexes rose for the third straight session on Tuesday, led by the Nasdaq, as a fall in U.S. Treasury yields lifted megacap growth companies including Microsoft and Alphabet ahead of their earnings reports later in the day.
Shares of Microsoft MSFT.O and Google-owner Alphabet GOOGL.O were up 0.6% and 1.2% respectively, while Apple AAPL.O and Amazon.com AMZN.O also rose ahead of reporting quarterly earnings this week.
Earnings from the companies will offer a glimpse into how corporate America is holding up in the face of decades-high inflation and tighter financial conditions.
"There is a positive view (on technology earnings)," said Giuseppe Sette, president of AI investment platform Toggle. "In a way, their ability to play through an inflationary cycle is strong, especially because tech has always had a very flexible ability to adjust prices."
The tech-heavy Nasdaq .IXIC jumped against a drop in the 10-year Treasury yield US10YT=RR which touched a session low of 4.06% from 4.23% on Monday. US/
The earnings season has been better than expected, with nearly three quarters of the 129 companies in the S&P 500 having beaten estimates, according to Refinitiv data.
Among Dow components, Coca-Cola Co KO.N rose 0.7% after the company raised its annual revenue and profit forecasts, banking on steady demand amid price increases.
3M MMM.N, on the other hand, fell 0.8% as it cut its full-year revenue and profit forecasts due to a stronger dollar.
Meanwhile, General Motors GM.N added 2.8% after reaffirming its full-year outlook.
Raytheon Technologies Corp RTX.N fell 2.1% after the aerospace supplier trimmed its 2022 sales outlook, while United Parcel Service Inc UPS.N added 3.0% on posting a stronger-than-expected quarterly adjusted profit.
While earnings reports are expected to influence trading decisions this week, U.S. stock markets rose in the past two sessions after signs of economic softness suggested the effects of the Federal Reserve's policy aimed at curbing decades-high inflation were taking root.
Markets are still pricing in a fourth straight 75 basis point rate hike from the Fed on Nov. 2, but as a survey showed U.S. consumer confidence ebbed in October amid rising concerns about inflation and a possible recession next year, bets of another jumbo-sized raise in December eased. FEDWATCH
Toggle's Sette noted that it is not yet a done deal that investors are shifting towards a more dovish Fed. However, "it's quite possible that we see a classic Fed error."
At 10:18 a.m. ET, the Dow Jones Industrial Average .DJI was up 138.99 points, or 0.44%, at 31,638.61, the S&P 500 .SPX was up 35.21 points, or 0.93%, at 3,832.55, and the Nasdaq Composite .IXIC was up 170.87 points, or 1.56%, at 11,123.48.
Advancing issues outnumbered decliners by a 5.16-to-1 ratio on the NYSE and by a 4.03-to-1 ratio on the Nasdaq.
The S&P index recorded 10 new 52-week highs and one new low, while the Nasdaq recorded 41 new highs and 76 new lows.
(Reporting by Amruta Khandekar and Shreyashi Sanyal 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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Shares of Microsoft MSFT.O and Google-owner Alphabet GOOGL.O were up 0.6% and 1.2% respectively, while Apple AAPL.O and Amazon.com AMZN.O also rose ahead of reporting quarterly earnings this week. By Amruta Khandekar and Shreyashi Sanyal Oct 25 (Reuters) - Wall Street's main indexes rose for the third straight session on Tuesday, led by the Nasdaq, as a fall in U.S. Treasury yields lifted megacap growth companies including Microsoft and Alphabet ahead of their earnings reports later in the day. While earnings reports are expected to influence trading decisions this week, U.S. stock markets rose in the past two sessions after signs of economic softness suggested the effects of the Federal Reserve's policy aimed at curbing decades-high inflation were taking root.
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Shares of Microsoft MSFT.O and Google-owner Alphabet GOOGL.O were up 0.6% and 1.2% respectively, while Apple AAPL.O and Amazon.com AMZN.O also rose ahead of reporting quarterly earnings this week. By Amruta Khandekar and Shreyashi Sanyal Oct 25 (Reuters) - Wall Street's main indexes rose for the third straight session on Tuesday, led by the Nasdaq, as a fall in U.S. Treasury yields lifted megacap growth companies including Microsoft and Alphabet ahead of their earnings reports later in the day. The S&P index recorded 10 new 52-week highs and one new low, while the Nasdaq recorded 41 new highs and 76 new lows.
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Shares of Microsoft MSFT.O and Google-owner Alphabet GOOGL.O were up 0.6% and 1.2% respectively, while Apple AAPL.O and Amazon.com AMZN.O also rose ahead of reporting quarterly earnings this week. By Amruta Khandekar and Shreyashi Sanyal Oct 25 (Reuters) - Wall Street's main indexes rose for the third straight session on Tuesday, led by the Nasdaq, as a fall in U.S. Treasury yields lifted megacap growth companies including Microsoft and Alphabet ahead of their earnings reports later in the day. While earnings reports are expected to influence trading decisions this week, U.S. stock markets rose in the past two sessions after signs of economic softness suggested the effects of the Federal Reserve's policy aimed at curbing decades-high inflation were taking root.
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Shares of Microsoft MSFT.O and Google-owner Alphabet GOOGL.O were up 0.6% and 1.2% respectively, while Apple AAPL.O and Amazon.com AMZN.O also rose ahead of reporting quarterly earnings this week. By Amruta Khandekar and Shreyashi Sanyal Oct 25 (Reuters) - Wall Street's main indexes rose for the third straight session on Tuesday, led by the Nasdaq, as a fall in U.S. Treasury yields lifted megacap growth companies including Microsoft and Alphabet ahead of their earnings reports later in the day. 3M MMM.N, on the other hand, fell 0.8% as it cut its full-year revenue and profit forecasts due to a stronger dollar.
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18751.0
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2022-10-25 00:00:00 UTC
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The Zacks Analyst Blog Highlights Apple, Netflix, Disney and Amazon
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AAPL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-apple-netflix-disney-and-amazon
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For Immediate Release
Chicago, IL – October 25, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple AAPL, Netflix NFLX, Disney DIS and Amazon AMZN.
Here are highlights from Monday’s Analyst Blog:
What's in the Cards When Apple (AAPL) Reports Q4 Earnings?
Apple is set to report fourth-quarter fiscal 2022 results on Oct 27.
Apple expects year-over-year revenue growth to accelerate in the fiscal fourth quarter compared with the third quarter (the June-end quarter) despite approximately 600 basis points of unfavorable year-over-year impact from forex.
The Zacks Consensus Estimate for revenues is currently pegged at $88.47 billion, indicating growth of 6.13% from the year-ago quarter's reported figure.
The consensus mark for earnings is currently pegged at $1.26 per share, up by a penny over the past 30 days and indicating a 1.61% increase from the figure reported in the year-ago quarter.
Apple's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and came in line with the remaining one, the earnings surprise being 5.67%, on average.
Let's see how things have shaped up for the upcoming announcement.
Steady iPhone 13 Demand to Drive Y/Y Sales Growth
Apple's fortunes are heavily reliant on iPhone, which is by far its biggest revenue contributor. The device accounted for 49% of net sales in the last reported quarter, wherein sales increased 2.8% year over year to $40.67 billion. Our iPhone sales estimate stands at $45.30 billion.
Apple is expected to have benefited from steady demand for the 5G-enabled iPhone 13, despite silicon shortages. The company anticipates supply constraints to be lower in the fiscal fourth quarter than that in the third quarter.
Per the latest Canalys report on worldwide smartphone shipments, Apple expanded its market share to 18% in third-quarter 2022, trailing Samsung's 22%.
The Zacks Consensus Estimate for iPhone sales currently stands at $42.76 billion, indicating 10% growth from the year-ago quarter's reported figure.
Services Growth to Slow Down in Q4
Apple expects Services revenue growth to be lower than the June-end quarter due to challenging macroeconomic conditions and unfavorable forex. In the fiscal third quarter, Services revenues grew 12.1% from the year-ago quarter to $19.60 billion and accounted for 23.6% of sales.
Nevertheless, an expanding paid subscriber base has been a key catalyst for the Services business, which is riding on the increasing popularity of the App Store.
Apple currently has more than 860 million paid subscribers across its Services portfolio. App Store continues to grab the attention of prominent developers from around the world, helping the company to offer exciting new apps that drive traffic.
Services like Apple TV+, Apple Arcade, Apple News+, Apple Card, Apple Fitness+ and Apple One bundle are expected to have contributed to overall growth.
Apple TV+ has been gaining recognition due to award-winning shows despite strong competition from Netflix, as well as services from Disney and Amazon.
Per a report by JustWatch, cited by 9TO5Mac, Netflix remains the leader with 27.3% market share, followed by Amazon prime video and Disney+, with 24.3% and 18.2% market share, respectively.
Meanwhile, Apple TV+ has surpassed 6%global marketshare, up from 5.6% reported in March. It is now chasing HBO Max, which has a market share of 7% (unchanged from March).
Apple has been keeping no stone unturned to make TV+ service a success. At a much affordable price of $4.99, Apple TV+ has been benefiting from quality content with its strong portfolio of original shows and movies.
Our estimate for fiscal fourth-quarter Services net sales is pegged at $19.14 billion. The consensus mark for the same is currently pegged at 19.73 billion.
Wearables' Growth to Remain Strong
Apple has been dominating the wearables market, thanks to the strong adoption of the Apple Watch.
This Zacks Rank #3 (Hold) company's Fitness+ subscription service, built on Apple Watch, has been a game changer. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Notably, Fitness+ tracks health- and workout-related data from Apple Watch that users can view on their iPhones, iPads or Apple TVs.
The addition of healthcare features has been another game changer for Apple Watch. The Series 7 model offers a Blood Oxygen app, ECG app, high and low heart rate notifications, irregular heart rhythm notifications, and fall detection.
Apple Watch's adoption rate has been growing rapidly. More than two-thirds of customers, who purchased it in third-quarter fiscal 2022, were first-time customers.
The Zacks Consensus Estimate for Wearables, Home and Accessories revenues is pegged at $9.24 billion for fourth-quarter fiscal 2022, indicating growth of 5.2% from the figure reported in the year-ago quarter. Our estimate for Wearables, Home and Accessories revenues stands at $7.96 billion.
Key Quarterly Highlights
In the to-be-reported quarter, Apple unveiled four iPhone models — iPhone 14, iPhone 14 Plus, iPhone 14 Pro and iPhone 14 Pro Max — at its product launch event.
Apple also launched the next-gen Airpods Pro, the Apple Watch Series 8, the new Apple Watch SE, Apple Watch Ultra and updates to Fitness+ at the event.
On Sep 13, Apple announced that the Apple TV+ show, Ted Lasso, won an Emmy for Outstanding Comedy Series. Jason Sudeikis also won an Emmy for Lead Actor.
At this year's Emmy, Netflix won 26 awards but trailed HBO Max, which won 38. Apple TV+ won seven awards, whereas Disney+ and Amazon Prime Video won six each.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Just Released: Zacks Unveils the Top 5 EV Stocks for 2022
For several months now, electric vehicles have been disrupting the $82 billion automotive industry. And that disruption is only getting bigger thanks to sky-high gas prices. Even titans in the financial industry including George Soros, Jeff Bezos, and Ray Dalio have invested in this unstoppable wave. You don't want to be sitting on your hands while EV stocks break out and climb to new highs. In a new free report, Zacks is revealing the top 5 EV stocks for investors. Next year, don't look back on today wishing you had taken advantage of this opportunity.
>>Send me my free report revealing the top 5 EV stocks
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Netflix, Inc. (NFLX): Free Stock Analysis Report
The Walt Disney Company (DIS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include: Apple AAPL, Netflix NFLX, Disney DIS and Amazon AMZN. Here are highlights from Monday’s Analyst Blog: What's in the Cards When Apple (AAPL) Reports Q4 Earnings? Apple Inc. (AAPL): Free Stock Analysis Report
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Stocks recently featured in the blog include: Apple AAPL, Netflix NFLX, Disney DIS and Amazon AMZN. Here are highlights from Monday’s Analyst Blog: What's in the Cards When Apple (AAPL) Reports Q4 Earnings? Apple Inc. (AAPL): Free Stock Analysis Report
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Stocks recently featured in the blog include: Apple AAPL, Netflix NFLX, Disney DIS and Amazon AMZN. Here are highlights from Monday’s Analyst Blog: What's in the Cards When Apple (AAPL) Reports Q4 Earnings? Apple Inc. (AAPL): Free Stock Analysis Report
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Stocks recently featured in the blog include: Apple AAPL, Netflix NFLX, Disney DIS and Amazon AMZN. Here are highlights from Monday’s Analyst Blog: What's in the Cards When Apple (AAPL) Reports Q4 Earnings? Apple Inc. (AAPL): Free Stock Analysis Report
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18752.0
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2022-10-25 00:00:00 UTC
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Apple Q4 Preview: Another EPS Beat Inbound?
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AAPL
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https://www.nasdaq.com/articles/apple-q4-preview%3A-another-eps-beat-inbound
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nan
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nan
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The Zacks Computer and Technology Sector has tumbled in 2022 amid a hawkish pivot from the Federal Reserve, down more than 30% and widely underperforming the general market.
Image Source: Zacks Investment Research
A behemoth in the sector, Apple AAPL, is on deck to unveil quarterly earnings on October 27th, after the market close.
Currently, the legendary tech titan carries a Zacks Rank #3 (Hold) paired with an overall VGM Score of a B.
How does everything else stack up heading into the print? Let’s take a closer look.
Share Performance & Valuation
Year-to-date, Apple shares have held up relatively well, down 14% vs. the general market’s decline of roughly 20%.
Image Source: Zacks Investment Research
Over the last three months, Apple shares have continued to display relative strength, up a marginal 0.4% and outperforming the general market once again.
Image Source: Zacks Investment Research
The relative strength shows that market participants have respected Apple shares much higher than most, undoubtedly a positive in a historically-volatile 2022.
AAPL’s valuation multiples have pulled back by a fair margin; the company’s 22.9X forward earnings multiple is just a tick below its five-year median and nowhere near 2021 highs of 35.6X.
The company carries a Value Style Score of a C.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have primarily been bullish regarding their earnings outlook, with three positive earnings estimate revisions hitting the tape over the last several months. The Zacks Consensus EPS Estimate of $1.26 suggests Y/Y earnings growth of a modest 1.6%.
Image Source: Zacks Investment Research
Apple’s top-line looks to improve as well; the Zacks Consensus Sales Estimate of $88.5 billion suggests revenue growth of 6% from year-ago quarterly sales of $83.4 billion.
Quarterly Performance & Market Reactions
The tech titan has an impressive earnings track record, exceeding revenue and earnings estimates in nine of its last ten quarters. Just in its latest print, Apple registered a 5.3% EPS beat and a 1.2% revenue beat.
Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Further, the market has liked what it’s seen from the company as of late, with shares moving upward following each of its last four quarterly prints.
Putting Everything Together
Apple shares have been relatively strong in 2022, outperforming the general market across several timeframes and indicating that buyers have defended the stock higher than others.
Valuation multiples have fallen extensively amid the adverse price action in 2022, with the company’s shares now trading just below their five-year median forward earnings multiple.
Analysts have primarily been bullish in their earnings outlook, with estimates suggesting Y/Y upticks in revenue and earnings.
The company has been the definition of consistency within its quarterly results, and the market has liked what it’s seen from the quarterly releases as of late.
Heading into the print, Apple AAPL carries a Zacks Rank #3 (Hold) paired with an Earnings ESP Score of 0.9%.
Just Released: Zacks Unveils the Top 5 EV Stocks for 2022
For several months now, electric vehicles have been disrupting the $82 billion automotive industry. And that disruption is only getting bigger thanks to sky-high gas prices. Even titans in the financial industry including George Soros, Jeff Bezos, and Ray Dalio have invested in this unstoppable wave. You don't want to be sitting on your hands while EV stocks break out and climb to new highs. In a new free report, Zacks is revealing the top 5 EV stocks for investors. Next year, don't look back on today wishing you had taken advantage of this opportunity.
>>Send me my free report revealing the top 5 EV stocks
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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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Image Source: Zacks Investment Research A behemoth in the sector, Apple AAPL, is on deck to unveil quarterly earnings on October 27th, after the market close. AAPL’s valuation multiples have pulled back by a fair margin; the company’s 22.9X forward earnings multiple is just a tick below its five-year median and nowhere near 2021 highs of 35.6X. Heading into the print, Apple AAPL carries a Zacks Rank #3 (Hold) paired with an Earnings ESP Score of 0.9%.
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Heading into the print, Apple AAPL carries a Zacks Rank #3 (Hold) paired with an Earnings ESP Score of 0.9%. Image Source: Zacks Investment Research A behemoth in the sector, Apple AAPL, is on deck to unveil quarterly earnings on October 27th, after the market close. AAPL’s valuation multiples have pulled back by a fair margin; the company’s 22.9X forward earnings multiple is just a tick below its five-year median and nowhere near 2021 highs of 35.6X.
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Image Source: Zacks Investment Research A behemoth in the sector, Apple AAPL, is on deck to unveil quarterly earnings on October 27th, after the market close. AAPL’s valuation multiples have pulled back by a fair margin; the company’s 22.9X forward earnings multiple is just a tick below its five-year median and nowhere near 2021 highs of 35.6X. Heading into the print, Apple AAPL carries a Zacks Rank #3 (Hold) paired with an Earnings ESP Score of 0.9%.
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Image Source: Zacks Investment Research A behemoth in the sector, Apple AAPL, is on deck to unveil quarterly earnings on October 27th, after the market close. AAPL’s valuation multiples have pulled back by a fair margin; the company’s 22.9X forward earnings multiple is just a tick below its five-year median and nowhere near 2021 highs of 35.6X. Heading into the print, Apple AAPL carries a Zacks Rank #3 (Hold) paired with an Earnings ESP Score of 0.9%.
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18753.0
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2022-10-25 00:00:00 UTC
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European stocks rise as earnings offset economic gloom
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AAPL
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https://www.nasdaq.com/articles/european-stocks-rise-as-earnings-offset-economic-gloom
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nan
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nan
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By Sruthi Shankar
Oct 25 (Reuters) - European stocks rose on Tuesday after a slew of better-than-expected earnings reports helped offset worries about fast rising interest rates and a slowing euro zone economy.
The pan-European STOXX 600 index .STOXX rose 0.3%, with financial services .SXFP and technology .SX8P stocks countering losses in chemical firms .SX4P.
Boosting financial stocks, UBS UBSG.S climbed 5.6% after the Swiss bank beat market expectations for quarterly profit due to a rise in new money inflows.
SAP SAPG.DE gained 4.1% after the German business software maker reported faster-than-expected revenue growth for the third quarter, while Logitech International LOGN.S rose 6.4% after the computer peripherals maker reaffirmed its full-year forecast.
Overall, the quarterly updates helped lift sentiment despite lingering worries about a European recession as consumers and businesses buckle under pressure from surging inflation and higher borrowing costs to tame it.
Earnings from tech giants Microsoft Corp MSFT.O, Google-owner Alphabet Inc GOOGL.Oand Apple Inc AAPL.O will set the tone on Wall Street this week.
"Our focus is on the forward outlook for Q4 and 2023 EPS, which has now started to fall, even though we believe it still to be at optimistic levels and thus subject to further cuts as companies report," said Leonardo Pellandini, equity strategist at Julius Baer.
"We reiterate our defensive positioning for the time being given the imminent slowdown in macroeconomic momentum."
Of the 20% of STOXX 600 companies that have reported third-quarter results so far, 55% have beat analysts' profit estimates, as per Refinitiv IBES data. In a typical quarter, 53% top estimates.
While European corporate earnings are expected to grow 28.4% in the third quarter, it is seen up 18.2% in the fourth quarter and just 3.1% in the first quarter of 2023.
The European Central Bank (ECB) is widely expected to deliver a second straight 75 basis point rate hike this week, but a recent report suggesting the U.S. Federal Reserve might slow its pace of rate hikes has raised hopes of a pivot from the ECB too.
Among decliners, German chemicals maker Covestro 1COV.DE fell 2.8% after it cut its 2022 earnings outlook for the third time this year, blaming high gas and raw material prices amid the deepening European energy crisis.
German sportswear maker Adidas ADSGn.DE dropped 3.1% after Morgan Stanley downgraded its stock to "underweight" from "equal weight". Separately, Bloomberg reported the company is set to cut ties with American rapper Kanye West amid controversies.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Shailesh Kuber and Saumyadeb Chakrabarty)
((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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Earnings from tech giants Microsoft Corp MSFT.O, Google-owner Alphabet Inc GOOGL.Oand Apple Inc AAPL.O will set the tone on Wall Street this week. By Sruthi Shankar Oct 25 (Reuters) - European stocks rose on Tuesday after a slew of better-than-expected earnings reports helped offset worries about fast rising interest rates and a slowing euro zone economy. Overall, the quarterly updates helped lift sentiment despite lingering worries about a European recession as consumers and businesses buckle under pressure from surging inflation and higher borrowing costs to tame it.
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Earnings from tech giants Microsoft Corp MSFT.O, Google-owner Alphabet Inc GOOGL.Oand Apple Inc AAPL.O will set the tone on Wall Street this week. By Sruthi Shankar Oct 25 (Reuters) - European stocks rose on Tuesday after a slew of better-than-expected earnings reports helped offset worries about fast rising interest rates and a slowing euro zone economy. Boosting financial stocks, UBS UBSG.S climbed 5.6% after the Swiss bank beat market expectations for quarterly profit due to a rise in new money inflows.
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Earnings from tech giants Microsoft Corp MSFT.O, Google-owner Alphabet Inc GOOGL.Oand Apple Inc AAPL.O will set the tone on Wall Street this week. By Sruthi Shankar Oct 25 (Reuters) - European stocks rose on Tuesday after a slew of better-than-expected earnings reports helped offset worries about fast rising interest rates and a slowing euro zone economy. SAP SAPG.DE gained 4.1% after the German business software maker reported faster-than-expected revenue growth for the third quarter, while Logitech International LOGN.S rose 6.4% after the computer peripherals maker reaffirmed its full-year forecast.
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Earnings from tech giants Microsoft Corp MSFT.O, Google-owner Alphabet Inc GOOGL.Oand Apple Inc AAPL.O will set the tone on Wall Street this week. By Sruthi Shankar Oct 25 (Reuters) - European stocks rose on Tuesday after a slew of better-than-expected earnings reports helped offset worries about fast rising interest rates and a slowing euro zone economy. The pan-European STOXX 600 index .STOXX rose 0.3%, with financial services .SXFP and technology .SX8P stocks countering losses in chemical firms .SX4P.
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2022-10-25 00:00:00 UTC
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The Zacks Analyst Blog Highlights Microsoft, Alphabet, Apple and Amazon.
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AAPL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-microsoft-alphabet-apple-and-amazon.
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nan
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nan
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For Immediate Release
Chicago, IL – October 25, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Microsoft MSFT, Alphabet GOOGL, Apple AAPL and Amazon AMZN.
Here are highlights from Monday’s Analyst Blog:
Major Earnings Reports Flood In: Global Week Ahead
In the Global Week Ahead, the USA enters the heart of Q3 earnings season.
Most shares will likely follow the trading action of the major mega-cap tech stocks.
(1) Microsoft is set to report first-quarter fiscal 2023 results after market close (AMC) on Tuesday, Oct 25th.
The Zacks Consensus Estimate for revenues is pegged at $49.58 billion, indicating growth of +9.41% from the figure reported in the year-ago quarter.
The consensus mark for earnings has declined -0.4% to $2.30 per share over the past 30 days, suggesting +1.32% growth from the figure reported in the year-ago quarter.
Microsoft's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing in one, with an average quarterly EPS surprise of +4.53%.
(2) Alphabet reports AMC on Tuesday Oct. 25th too.
(3)Both Apple and Amazon report AMC on Thursday, Oct. 27th.
In Europe, major companies are reporting market-shaping results, as well.
What of political and macro events?
Reuters says the breathtaking pace of political events inside Britain keeps traders on their toes, while Japan is back on a Yen and JGB bond market intervention watch.
On Thursday, expect the European Central Bank (ECB) to deliver another 75-bps policy rate hike.
On Friday, the Bank of Japan (BoJ) meets.
Next are Reuters' five world market themes, reordered for equity traders.
(1) Over the Next 2 Weeks, More than 300 S&P500 Companies Report
More than 300 S&P500 companies are due to report results over the next two weeks as the U.S. third-quarter earnings season heats up.
Reports from companies such as Goldman Sachs, Lockheed Martin, Bank of America and Netflix have heartened investors in those firms' shares.
Still, overall S&P500 earnings growth is only expected to have climbed +3% year-on-year, according to Refinitiv I/B/E/S. That would be the worst performance in two years, and is down from an expectation of +4.5% at the start of October.
Faltering profit growth would remove a key pillar that has helped shelter U.S. stock markets from more severe declines.
Among companies due to report in the coming week are the four largest in the U.S. by market value: Apple, Microsoft, Alphabet and Amazon.
(2) Europe's Earnings Show Strain of Energy, Supply Chain Issues
It's a different story in Europe, where soaring costs of energy, raw materials, labor and credit and tangled supply chains are chipping away at earnings expectations.
Nonetheless, a different lockdown sequencing and favorable currency effects mean companies listed on the pan-European STOXX 600 regional index are expected to report a rise of about 28.4% in earnings in the third quarter, according to Refinitiv I/B/E/S.
Nonetheless, that's down from an expected 32% jump pre-reporting season and a whopping 60% growth in Q3 2021.
So far results have been mixed: Telecom equipment makers Nokia and Ericsson missed analysts' expectations, but on a brighter note Birkin bag maker Hermes saw a sharp rise in sales growth, and the world's second-biggest spirits group Pernod Ricard beat expectations.
(3) Look for the ECB to Deliver Another 75 bps Hike
The European Central Bank (ECB) is widely expected to deliver its second supersized 75 basis-point rate hike on Thursday. Joining the global rate-hike party late, the ECB has delivered 125 bps worth of rises in two meetings in its fastest pace of policy tightening on record.
With Euro-area inflation at almost 10% versus an ECB target of 2%, there's little appetite to slow down now, even if recession risks are rising.
In fact, expect ECB Chief Christine Lagarde to face plenty of questions about when the central bank will start scaling back its bondholdings in the next tightening phase. Policymakers are also believed to be closing in on a deal to change the rules governing loans to banks that have benefited from a sudden jump in rates.
(4) Bank of Japan (BoJ) Meets Friday
The Bank of Japan meets on Oct. 28 and is expected to continue running against the grain of global central banks by sticking to its extraordinary levels of stimulus — even as its policy exacerbates a politically unpopular plunge in the yen to a 32-year low beyond 150 per dollar.
The BOJ has conducted emergency bond buying for two days running to keep a lid on yields, showing its commitment to easing.
In Australia, the monetary policy outlook is much murkier. The Reserve Bank's decision in October to slow the pace of rate hikes reverberated in global markets, leading some to say the peak of policy tightening worldwide might be reached soon.
Recent data has backed the case for a slower pace of hikes with Australian employment numbers posting a disappointingly small rise in September. That put the spotlight on quarterly inflation data due on Wednesday that could help determine the next policy move.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Just Released: Zacks Unveils the Top 5 EV Stocks for 2022
For several months now, electric vehicles have been disrupting the $82 billion automotive industry. And that disruption is only getting bigger thanks to sky-high gas prices. Even titans in the financial industry including George Soros, Jeff Bezos, and Ray Dalio have invested in this unstoppable wave. You don't want to be sitting on your hands while EV stocks break out and climb to new highs. In a new free report, Zacks is revealing the top 5 EV stocks for investors. Next year, don't look back on today wishing you had taken advantage of this opportunity.
>>Send me my free report revealing the top 5 EV stocks
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include: Microsoft MSFT, Alphabet GOOGL, Apple AAPL and Amazon AMZN. Apple Inc. (AAPL): Free Stock Analysis Report Reuters says the breathtaking pace of political events inside Britain keeps traders on their toes, while Japan is back on a Yen and JGB bond market intervention watch.
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Stocks recently featured in the blog include: Microsoft MSFT, Alphabet GOOGL, Apple AAPL and Amazon AMZN. Apple Inc. (AAPL): Free Stock Analysis Report Here are highlights from Monday’s Analyst Blog: Major Earnings Reports Flood In: Global Week Ahead In the Global Week Ahead, the USA enters the heart of Q3 earnings season.
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Stocks recently featured in the blog include: Microsoft MSFT, Alphabet GOOGL, Apple AAPL and Amazon AMZN. Apple Inc. (AAPL): Free Stock Analysis Report (1) Over the Next 2 Weeks, More than 300 S&P500 Companies Report More than 300 S&P500 companies are due to report results over the next two weeks as the U.S. third-quarter earnings season heats up.
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Stocks recently featured in the blog include: Microsoft MSFT, Alphabet GOOGL, Apple AAPL and Amazon AMZN. Apple Inc. (AAPL): Free Stock Analysis Report In Europe, major companies are reporting market-shaping results, as well.
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2022-10-25 00:00:00 UTC
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Is Snap Stock a Buy Now?
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AAPL
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https://www.nasdaq.com/articles/is-snap-stock-a-buy-now-2
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nan
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nan
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Snap (NYSE: SNAP) stock plunged 27% during after hours trading on Oct. 20 following the release of its third-quarter earnings report. The social media company's revenue rose 6% year over year to $1.13 billion, missing analysts' estimates by $10 million. Its net loss widened from $72 million to $360 million, while its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) plunged 58% to $73 million. But on a non-GAAP basis, earnings of $0.08 per share still beat the consensus forecast.
Investors had already been bracing for a rough report following Snap's dismal second-quarter release in July, but the latest news seemed to extinguish any hopes for a near-term recovery. Should investors shun Snap stock at these depressed levels, or should they take the contrarian view?
Image source: Getty Images.
What happened to Snap?
Snap's daily active users (DAUs) grew 19% year over year to 363 million in the third quarter. However, that growth was largely offset by an 11% decline in its average revenue per user (ARPU). Besides ongoing headwinds for the ad market, stiff competition from rivals like TikTok, and Apple's privacy-oriented changes for its iOS, stronger growth in the company's "Rest of World" segment put pressure on ARPU since it still contributes much lower revenue per user than the more saturated North American and European markets.
PERIOD
Q3 2022
Q2 2022
Q1 2022
Q4 2021
Q3 2021
DAU Growth (YOY)
19%
18%
18%
20%
23%
ARPU Growth (YOY)
(11%)
(4%)
17%
18%
28%
Revenue Growth (YOY)
6%
13%
38%
42%
57%
Data source: Snap. YOY = Year-over-year.
The slowdown over the past year indicates Snap overestimated its own growth potential when management boldly told investors in Feb. 2021 the company could grow its annual revenue by 50% or more for "multiple years."
As Snap's revenue growth cools off, its operating and adjusted EBITDA margins have collapsed. The latter improved sequentially in the third quarter after Snap laid off 20% of its workforce and scrapped several of its non-core projects, but it still seems highly unlikely operating margins will approach breakeven levels anytime soon.
PERIOD
Q3 2022
Q2 2022
Q1 2022
Q4 2021
Q3 2021
Operating Margin
(39%)
(36%)
(26%)
(2%)
(17%)
Adjusted EBITDA Margin
6%
1%
6%
25%
16%
Data source: Snap.
Snap ended the third quarter with $4.43 billion in cash and marketable securities, so it still has the resources to sustain a turnaround. However, with $3.74 billion in convertible senior notes on the balance sheet as well, the company has only so much room to raise fresh funds at reasonable rates if its liquidity dries up.
That's why it was baffling when Snap authorized a $500 million stock buyback for the next 12 months. Management likely wants to capitalize on the low stock price to offset the dilution from stock-based compensation (30% of third-quarter revenue), but it's still a bad look for a company that lost $1.14 billion in the first nine months of 2022 and just laid off a fifth of its staff.
What are Snap's plans for the future?
Snap stopped providing guidance earlier this year, but CEO Evan Spiegel claimed the company could eventually reaccelerate and diversify its long-term revenue growth by investing in new augmented-reality (AR) features. However, TikTok and Instagram have launched similar AR features.
TikTok also continues to pull users away from Snapchat and Instagram. In its semi-annual "Taking Stock with Teens" surveys, Piper Sandler found TikTok overtook Snapchat as the top social media platform for U.S. teens for the first time this spring, and that lead continued to widen in the fall.
Snap believes Spotlight, the short video platform it launched in late 2020, can fortify its defenses against TikTok and Instagram Reels. It pointed out that its users spent 55% more time year-over-year watching Spotlight content during the third quarter, but that still represented a deceleration from its 59% growth in the second quarter and didn't meaningfully boost its ARPU. That's not too surprising since Meta previously warned the expansion of its short video ecosystem through Instagram Reels and Facebook Watch would curb its near-term growth in ad revenue.
On the bright side, Snap continues to gain more DAUs even as its ARPU growth dries up. Therefore, revenue growth could recover quickly once macroeconomic headwinds wane, and it fully overcomes Apple's iOS changes.
Is Snap too cheap to ignore?
Analysts believe Snap's revenue will increase about 12% to $4.63 billion this year and maintain that pace in 2023. Adjusted EBITDA should decline 44% to $346 million this year before doubling to $675 million in 2023. Based on that outlook, the stock looks cheap at 2.5 times sales and 19 times adjusted EBITDA for 2023.
However, we shouldn't put too much faith in those estimates as a recession looms on the horizon. Investors should keep a close eye on Snap, but they shouldn't buy in until the company exhibits clearer signs of a long-term turnaround.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Leo Sun has positions in Apple and Meta Platforms, Inc. The Motley Fool has positions in and recommends Apple and Meta Platforms, Inc. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Management likely wants to capitalize on the low stock price to offset the dilution from stock-based compensation (30% of third-quarter revenue), but it's still a bad look for a company that lost $1.14 billion in the first nine months of 2022 and just laid off a fifth of its staff. Snap stopped providing guidance earlier this year, but CEO Evan Spiegel claimed the company could eventually reaccelerate and diversify its long-term revenue growth by investing in new augmented-reality (AR) features. That's not too surprising since Meta previously warned the expansion of its short video ecosystem through Instagram Reels and Facebook Watch would curb its near-term growth in ad revenue.
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The social media company's revenue rose 6% year over year to $1.13 billion, missing analysts' estimates by $10 million. DAU Growth (YOY) 19% 18% 18% 20% 23% ARPU Growth (YOY) (11%) (4%) 17% 18% 28% Revenue Growth (YOY) 6% 13% 38% 42% 57% Data source: Snap. Operating Margin (39%) (36%) (26%) (2%) (17%) Adjusted EBITDA Margin 6% 1% 6% 25% 16% Data source: Snap.
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Snap (NYSE: SNAP) stock plunged 27% during after hours trading on Oct. 20 following the release of its third-quarter earnings report. DAU Growth (YOY) 19% 18% 18% 20% 23% ARPU Growth (YOY) (11%) (4%) 17% 18% 28% Revenue Growth (YOY) 6% 13% 38% 42% 57% Data source: Snap. The slowdown over the past year indicates Snap overestimated its own growth potential when management boldly told investors in Feb. 2021 the company could grow its annual revenue by 50% or more for "multiple years."
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The social media company's revenue rose 6% year over year to $1.13 billion, missing analysts' estimates by $10 million. Operating Margin (39%) (36%) (26%) (2%) (17%) Adjusted EBITDA Margin 6% 1% 6% 25% 16% Data source: Snap. 10 stocks we like better than Snap Inc.
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18756.0
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2022-10-25 00:00:00 UTC
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Pre-Market Most Active for Oct 25, 2022 : TQQQ, TSHA, SQQQ, CSX, PINS, EBAY, AAPL, NIO, M, BABA, SNAP, GM
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AAPL
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https://www.nasdaq.com/articles/pre-market-most-active-for-oct-25-2022-%3A-tqqq-tsha-sqqq-csx-pins-ebay-aapl-nio-m-baba-snap
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The NASDAQ 100 Pre-Market Indicator is down -13.41 to 11,416.85. The total Pre-Market volume is currently 37,795,200 shares traded.
The following are the most active stocks for the pre-market session:
ProShares UltraPro QQQ (TQQQ) is -0.08 at $21.19, with 6,058,215 shares traded. This represents a 29.84% increase from its 52 Week Low.
Taysha Gene Therapies, Inc. (TSHA) is +0.6 at $2.11, with 4,154,941 shares traded. TSHA's current last sale is 7.67% of the target price of $27.5.
ProShares UltraPro Short QQQ (SQQQ) is +0.17 at $52.41, with 2,285,638 shares traded. This represents a 86.18% increase from its 52 Week Low.
CSX Corporation (CSX) is -0.09 at $28.07, with 1,690,226 shares traded. CSX's current last sale is 85.06% of the target price of $33.
Pinterest, Inc. (PINS) is -0.08 at $21.90, with 1,401,677 shares traded.PINS is scheduled to provide an earnings report on 10/27/2022, for the fiscal quarter ending Sep2022. The consensus earnings per share forecast is -0.13 per share, which represents a 14 percent increase over the EPS one Year Ago
eBay Inc. (EBAY) is -0.13 at $38.55, with 1,345,254 shares traded. EBAY's current last sale is 75.59% of the target price of $51.
Apple Inc. (AAPL) is -0.45 at $149.00, with 1,126,441 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. AAPL is scheduled to provide an earnings report on 10/27/2022, for the fiscal quarter ending Sep2022. The consensus earnings per share forecast is 1.26 per share, which represents a 124 percent increase over the EPS one Year Ago
NIO Inc. (NIO) is +0.16 at $9.61, with 937,212 shares traded., following a 52-week high recorded in prior regular session.
Macy's Inc (M) is -0.03 at $19.87, with 756,913 shares traded. M's current last sale is 79.48% of the target price of $25.
Alibaba Group Holding Limited (BABA) is +1.01 at $64.16, with 715,002 shares traded., following a 52-week high recorded in prior regular session.
Snap Inc. (SNAP) is -0.1 at $8.21, with 673,087 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 $-0.06. SNAP's current last sale is 68.41% of the target price of $12.001.
General Motors Company (GM) is +0.93 at $36.65, with 631,006 shares traded. Smarter Analyst Reports: Monday’s Pre-Market: Here’s What You Need to Know Before the Market Opens
The views and 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 -0.45 at $149.00, with 1,126,441 shares traded. AAPL is scheduled to provide an earnings report on 10/27/2022, for the fiscal quarter ending Sep2022. Pinterest, Inc. (PINS) is -0.08 at $21.90, with 1,401,677 shares traded.PINS is scheduled to provide an earnings report on 10/27/2022, for the fiscal quarter ending Sep2022.
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Apple Inc. (AAPL) is -0.45 at $149.00, with 1,126,441 shares traded. AAPL is scheduled to provide an earnings report on 10/27/2022, for the fiscal quarter ending Sep2022. Pinterest, Inc. (PINS) is -0.08 at $21.90, with 1,401,677 shares traded.PINS is scheduled to provide an earnings report on 10/27/2022, for the fiscal quarter ending Sep2022.
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Apple Inc. (AAPL) is -0.45 at $149.00, with 1,126,441 shares traded. AAPL is scheduled to provide an earnings report on 10/27/2022, for the fiscal quarter ending Sep2022. The consensus earnings per share forecast is -0.13 per share, which represents a 14 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.45 at $149.00, with 1,126,441 shares traded. AAPL is scheduled to provide an earnings report on 10/27/2022, for the fiscal quarter ending Sep2022. TSHA's current last sale is 7.67% of the target price of $27.5.
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18757.0
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2022-10-25 00:00:00 UTC
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Apple is cutting back production of iPhone 14 Plus due to weak demand - TrendForce
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AAPL
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https://www.nasdaq.com/articles/apple-is-cutting-back-production-of-iphone-14-plus-due-to-weak-demand-trendforce-0
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Adds background, market share
Oct 25 (Reuters) - Apple Inc AAPL.O is cutting back production of iPhone 14 Plus and is increasing the output of the more expensive iPhone 14 Pro due to lukewarm demand for the mid-range model, market research firm TrendForce said Tuesday.
The share of more expensive iPhone 14 Pro series has increased to 60% of the total output from the initially planned 50%, and it could rise to 65% in the future, the report said.
Apple did not immediately respond to a Reuters' request for comment.
Apple's focus on high-end models may help it counter the softness in smartphone sales. In the thick of the chip crisis, Apple's Pro and Pro Max premium tier of devices, which have been strong sellers, helped the company push margins higher.
The TrendForce report said that rising U.S. interest rates could crimp consumer spending, undermining the demand for iPhones in the first quarter of 2023. This could lead to a 14% year-on-year drop in production to 52 million units.
Analysts have in the past said iPhone 14's Pro and Pro Max versions were selling at a brisk pace, although demand for the base model, typically Apple's best seller, has been underwhelming.
Apple was the only vendor in the top five to register a growth in shipments in the third quarter, improving its share of the global smartphone market to 18% from 15% a year ago, according to research firm Canalys. The increase in share came as the overall smartphone market shrank 9%, Canalys said.
Last month, the company said it would manufacture its latest iPhone 14 in India, as the tech giant moves some of its production away from China to hedge risks arising from the growing tensions between Washington and Beijing.
TrendForce estimates the share of Apple's output from India to exceed 5% in 2023 and increase over the years.
(Reporting by Shivani Tanna and Yuvraj Malik in Bengaluru; Editing by Dhanya Ann Thoppil)
((ShivaniJayesh.Tanna@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds background, market share Oct 25 (Reuters) - Apple Inc AAPL.O is cutting back production of iPhone 14 Plus and is increasing the output of the more expensive iPhone 14 Pro due to lukewarm demand for the mid-range model, market research firm TrendForce said Tuesday. The share of more expensive iPhone 14 Pro series has increased to 60% of the total output from the initially planned 50%, and it could rise to 65% in the future, the report said. Apple was the only vendor in the top five to register a growth in shipments in the third quarter, improving its share of the global smartphone market to 18% from 15% a year ago, according to research firm Canalys.
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Adds background, market share Oct 25 (Reuters) - Apple Inc AAPL.O is cutting back production of iPhone 14 Plus and is increasing the output of the more expensive iPhone 14 Pro due to lukewarm demand for the mid-range model, market research firm TrendForce said Tuesday. In the thick of the chip crisis, Apple's Pro and Pro Max premium tier of devices, which have been strong sellers, helped the company push margins higher. Apple was the only vendor in the top five to register a growth in shipments in the third quarter, improving its share of the global smartphone market to 18% from 15% a year ago, according to research firm Canalys.
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Adds background, market share Oct 25 (Reuters) - Apple Inc AAPL.O is cutting back production of iPhone 14 Plus and is increasing the output of the more expensive iPhone 14 Pro due to lukewarm demand for the mid-range model, market research firm TrendForce said Tuesday. The share of more expensive iPhone 14 Pro series has increased to 60% of the total output from the initially planned 50%, and it could rise to 65% in the future, the report said. Analysts have in the past said iPhone 14's Pro and Pro Max versions were selling at a brisk pace, although demand for the base model, typically Apple's best seller, has been underwhelming.
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Adds background, market share Oct 25 (Reuters) - Apple Inc AAPL.O is cutting back production of iPhone 14 Plus and is increasing the output of the more expensive iPhone 14 Pro due to lukewarm demand for the mid-range model, market research firm TrendForce said Tuesday. The share of more expensive iPhone 14 Pro series has increased to 60% of the total output from the initially planned 50%, and it could rise to 65% in the future, the report said. TrendForce estimates the share of Apple's output from India to exceed 5% in 2023 and increase over the years.
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18758.0
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2022-10-25 00:00:00 UTC
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Solana Might Be Down 85%, But It Has a Jaw-Dropping Strategy to Bounce Back in 2023
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AAPL
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https://www.nasdaq.com/articles/solana-might-be-down-85-but-it-has-a-jaw-dropping-strategy-to-bounce-back-in-2023
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Solana (CRYPTO: SOL) may be down, but it's not out. For the year, Solana has fallen almost 85%, and recent network outages have many users concerned about the crypto's future. But Solana has a crazy, jaw-dropping strategy for the year ahead that could reverse its fortunes immediately.
At this year's big Tech Crunch Disrupt event in San Francisco, Solana doubled down on its mobile crypto strategy. This strategy includes the release of a full software mobile stack (SMS) for developers to make mobile apps and games, as well as the official launch of the Saga crypto phone in 2023's first quarter. Solana calls the crypto phone a "moonshot," but if your crypto is headed to the moon, isn't that exactly what you want to hear?
Just how crazy of an idea is a crypto phone?
Solana thinks this new phone could change everything. As Solana sees it, the future of crypto is mobile. As a result, the Saga is going to be optimized for all the decentralized apps and games on the Solana blockchain. Quite simply, Solana says the new phone will make everything that you love about crypto easier and more seamless. Solana Mobile will be "a premium mobile experience that enables you to trade tokens while waiting in line for coffee, mint NFTs on your morning commute..."
Image source: Getty Images.
If that sounds crazy, well, there are rivals working on much the same idea. Solana originally launched its concept in June, and Polygon (CRYPTO: MATIC) followed in July with a crypto phone concept of its own. In addition, tech company HTC has experimented with smartphones offering some crypto features. One feature that customers apparently want is a way to put a cold storage crypto wallet on a mobile phone.
There are obviously going to be hurdles to mass-scale adoption. Solana Labs co-founder Anatoly Yakovenko is projecting a $1,000 price tag for the phone and admits that there might only be enough initial demand for 25,000 to 50,000 units. By way of comparison, Apple (NASDAQ: AAPL) shipped 240 million iPhones in 2021. So, at the outset, this is not going to be some kind of money-making project. But it could lead to much broader, wide-scale adoption for Solana, as well as the attraction of more developers to the Solana ecosystem.
The new Web3 paradigm
What Solana has in mind is a new paradigm for crypto. You may have heard of Web3 by now, and this crypto phone is being positioned as part of the new Web3 paradigm. The Web2 paradigm was a centralized model in which a few Big Tech companies controlled everything (and made a lot of money doing so). In contrast, the Web3 paradigm is a decentralized model in which users and creators control everything. That's why the allure of Web3 is so great for many crypto enthusiasts: It's all about giving power back to the people. If you're a typical user or creator, this is wonderful. If you're an executive at a Big Tech company, it's time to start worrying.
For example, one bone of contention in the mobile world is how much of their profits app developers need to give tech companies. Instead of collecting 100% of their profits from in-app transactions, they must first give a 30% cut to Apple, for example. In May 2022, the ever-controversial Elon Musk weighed in on the matter via Twitter, calling this a "30% tax on the Internet." When you put it that way, it certainly suggests that some app developers might want to move to Solana if that "tax" can be lowered or even eliminated because most people don't enjoy paying taxes.
Does Solana deserve an innovation premium?
Solana has established itself as a leader in the blockchain industry thanks to the release of new innovations such as Solana Pay and Solana Mobile this year. The big question investors need to be asking themselves is whether Solana now deserves an innovation premium. Solana is down almost 85% for the year, which seems to suggest that this crypto has been dramatically oversold. By way of comparison, Ethereum (CRYPTO: ETH) is down about 65% for the year.
Taking crypto mobile is a really, really big idea. Most people are probably happy with their new Google Pixel or Apple iPhone, and it will be hard convincing them that they need another phone. That might be why Solana released the SMS in June: It is a way of ensuring that there are new apps and games ready to go once the Saga phone becomes available in Q1 2023.
Yes, this is a big, moonshot-type of bet for Solana. It could go disastrously wrong, but Solana's founding team seems confident that it is the type of high-risk bet that is worth taking. I can't wait to see where Solana is taking mobile crypto. And I also can't wait to see how quickly Solana might rebound next year. Getting Solana at a beaten-down valuation now seems like too much of a bargain to pass up. For that reason, I am bullish on Solana heading into 2023.
10 stocks we like better than Solana
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Solana wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of September 30, 2022
Dominic Basulto has positions in Ethereum and Polygon. The Motley Fool has positions in and recommends Apple, Ethereum, Polygon, 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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By way of comparison, Apple (NASDAQ: AAPL) shipped 240 million iPhones in 2021. At this year's big Tech Crunch Disrupt event in San Francisco, Solana doubled down on its mobile crypto strategy. Solana Labs co-founder Anatoly Yakovenko is projecting a $1,000 price tag for the phone and admits that there might only be enough initial demand for 25,000 to 50,000 units.
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By way of comparison, Apple (NASDAQ: AAPL) shipped 240 million iPhones in 2021. This strategy includes the release of a full software mobile stack (SMS) for developers to make mobile apps and games, as well as the official launch of the Saga crypto phone in 2023's first quarter. For example, one bone of contention in the mobile world is how much of their profits app developers need to give tech companies.
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By way of comparison, Apple (NASDAQ: AAPL) shipped 240 million iPhones in 2021. Solana calls the crypto phone a "moonshot," but if your crypto is headed to the moon, isn't that exactly what you want to hear? Solana originally launched its concept in June, and Polygon (CRYPTO: MATIC) followed in July with a crypto phone concept of its own.
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By way of comparison, Apple (NASDAQ: AAPL) shipped 240 million iPhones in 2021. This strategy includes the release of a full software mobile stack (SMS) for developers to make mobile apps and games, as well as the official launch of the Saga crypto phone in 2023's first quarter. Just how crazy of an idea is a crypto phone?
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18759.0
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2022-10-25 00:00:00 UTC
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Apple announces new clean energy investments, asks suppliers to decarbonize
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AAPL
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https://www.nasdaq.com/articles/apple-announces-new-clean-energy-investments-asks-suppliers-to-decarbonize
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Oct 25 (Reuters) - Apple Inc AAPL.O said on Tuesday it would make fresh investments to set up solar and wind projects in Europe and called on its suppliers to decarbonize operations related to the production of iPhones and other products.
The company in 2020 had pledged to remove carbon emissions from its entire business, including products and its sprawling supply chain - which spans from Vietnam to Brazil - by 2030.
The iPhone maker will now require its supply partners to report on progress on carbon neutrality goals, specifically Scope 1 and Scope 2 emissions reductions, related to the production of Apple products and will audit their progress annually.
More than 200 suppliers, representing 70% of Apple's direct manufacturing spending and including Corning Inc GLW.N, Nitto Denko Corp 6988.T, SK Hynix Inc 000660.KS, STMicroelectronics STM.BN, TSMC 2330.TW and Yuto, have committed to using clean power such as wind or solar for all Apple production, Apple said.
Apple had previously asked suppliers to commit to 100% renewable energy for Apple's production.
"We're determined to be a ripple in the pond that creates a bigger change," Chief Executive Officer Tim Cook said. Apple has been carbon neutral for its global corporate operations since 2020.
Apple said the European investments are part of a strategy to address about 22% of its carbon footprint coming from the electricity customers use to charge their devices.
With the construction of new projects in Europe, the company is aiming to power all Apple devices on the continent with low-carbon electricity, it said.
In total, the planned investments will add 3,000 gigawatt hours per year of new renewable energy on the grid, Apple said.
(Reporting by Nivedita Balu in Bengaluru; Editing by Savio D'Souza)
((Nivedita.Balu@thomsonreuters.com; Twitter: @niveditabalu;))
The views and 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 25 (Reuters) - Apple Inc AAPL.O said on Tuesday it would make fresh investments to set up solar and wind projects in Europe and called on its suppliers to decarbonize operations related to the production of iPhones and other products. The company in 2020 had pledged to remove carbon emissions from its entire business, including products and its sprawling supply chain - which spans from Vietnam to Brazil - by 2030. Apple said the European investments are part of a strategy to address about 22% of its carbon footprint coming from the electricity customers use to charge their devices.
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Oct 25 (Reuters) - Apple Inc AAPL.O said on Tuesday it would make fresh investments to set up solar and wind projects in Europe and called on its suppliers to decarbonize operations related to the production of iPhones and other products. The iPhone maker will now require its supply partners to report on progress on carbon neutrality goals, specifically Scope 1 and Scope 2 emissions reductions, related to the production of Apple products and will audit their progress annually. More than 200 suppliers, representing 70% of Apple's direct manufacturing spending and including Corning Inc GLW.N, Nitto Denko Corp 6988.T, SK Hynix Inc 000660.KS, STMicroelectronics STM.BN, TSMC 2330.TW and Yuto, have committed to using clean power such as wind or solar for all Apple production, Apple said.
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Oct 25 (Reuters) - Apple Inc AAPL.O said on Tuesday it would make fresh investments to set up solar and wind projects in Europe and called on its suppliers to decarbonize operations related to the production of iPhones and other products. The iPhone maker will now require its supply partners to report on progress on carbon neutrality goals, specifically Scope 1 and Scope 2 emissions reductions, related to the production of Apple products and will audit their progress annually. More than 200 suppliers, representing 70% of Apple's direct manufacturing spending and including Corning Inc GLW.N, Nitto Denko Corp 6988.T, SK Hynix Inc 000660.KS, STMicroelectronics STM.BN, TSMC 2330.TW and Yuto, have committed to using clean power such as wind or solar for all Apple production, Apple said.
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Oct 25 (Reuters) - Apple Inc AAPL.O said on Tuesday it would make fresh investments to set up solar and wind projects in Europe and called on its suppliers to decarbonize operations related to the production of iPhones and other products. The iPhone maker will now require its supply partners to report on progress on carbon neutrality goals, specifically Scope 1 and Scope 2 emissions reductions, related to the production of Apple products and will audit their progress annually. Apple had previously asked suppliers to commit to 100% renewable energy for Apple's production.
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18760.0
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2022-10-25 00:00:00 UTC
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Is Franklin U.S. Large Cap Multifactor Index ETF (FLQL) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-franklin-u.s.-large-cap-multifactor-index-etf-flql-a-strong-etf-right-now-0
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Launched on 04/26/2017, the Franklin U.S. Large Cap Multifactor Index ETF (FLQL) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Blend category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is managed by Franklin Templeton Investments, and has been able to amass over $927.72 million, which makes it one of the larger ETFs in the Style Box - Large Cap Blend. This particular fund, before fees and expenses, seeks to match the performance of the LibertyQ US Large Cap Equity Index.
The LibertyQ US Large Cap Equity Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the Russell 1000 Index over the long term by applying a multi-factor selection process, which is designed to select equity securities from the Russell 1000 Index that have favorable exposure to four investment style factors quality, value, momentum and low volatility.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for FLQL are 0.15%, which makes it one of the cheaper products in the space.
The fund has a 12-month trailing dividend yield of 2.13%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 28.90% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.55% of total assets, followed by Microsoft Corp (MSFT) and Exxon Mobil Corp (XOM).
FLQL's top 10 holdings account for about 23.75% of its total assets under management.
Performance and Risk
So far this year, FLQL has lost about -14.95%, and is down about -9.58% in the last one year (as of 10/25/2022). During this past 52-week period, the fund has traded between $36.61 and $47.20.
FLQL has a beta of 0.91 and standard deviation of 23.15% for the trailing three-year period. With about 218 holdings, it effectively diversifies company-specific risk.
Alternatives
Franklin U.S. Large Cap Multifactor Index ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. There are other ETFs in the space which investors could consider as well.
IShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the SPDR S&P 500 ETF (SPY) tracks S&P 500 Index. IShares Core S&P 500 ETF has $286.46 billion in assets, SPDR S&P 500 ETF has $353.55 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Franklin U.S. Large Cap Multifactor Index ETF (FLQL): 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
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 6.55% of total assets, followed by Microsoft Corp (MSFT) and Exxon Mobil Corp (XOM). Apple Inc. (AAPL): Free Stock Analysis Report However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.55% of total assets, followed by Microsoft Corp (MSFT) and Exxon Mobil Corp (XOM). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 04/26/2017, the Franklin U.S. Large Cap Multifactor Index ETF (FLQL) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Blend category of the market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.55% of total assets, followed by Microsoft Corp (MSFT) and Exxon Mobil Corp (XOM). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 04/26/2017, the Franklin U.S. Large Cap Multifactor Index ETF (FLQL) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Blend category of the market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.55% of total assets, followed by Microsoft Corp (MSFT) and Exxon Mobil Corp (XOM). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 04/26/2017, the Franklin U.S. Large Cap Multifactor Index ETF (FLQL) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Blend category of the market.
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18761.0
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2022-10-25 00:00:00 UTC
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GLOBAL MARKETS-Asia stocks struggle as Xi's leadership team spooks markets
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AAPL
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https://www.nasdaq.com/articles/global-markets-asia-stocks-struggle-as-xis-leadership-team-spooks-markets
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nan
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nan
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By Anshuman Daga
SINGAPORE, Oct 25 (Reuters) - Asian equities wallowed around lows hit early in the pandemic on Tuesday, while China's yuan slumped to a nearly 15-year trough as investors were rattled by President Xi Jinping's growing power.
U.S. ESc1 and European futures STXEc1 were flat as investors awaited corporate earnings from heavyweights including Alphabet GOOGL.O and Microsoft MSFT.O.
MSCI's broadest index of Asia-Pacific shares .MIAP00000PUS fell to the lowest since April 2020 before an attempted rebound in beaten-down Hong Kong tech shares dragged it back to flat.
The Hang Seng Tech index .HSTECH was up 3% in the afternoon, but after falling nearly 10% on Monday and being down almost 50% this year it was cold comfort for investors.
"A short-term technical rebound is the main factor for today's rise," said Kenny Ng, a strategist at China Everbright Securities in Hong Kong. "(The) cumulative decline of Hong Kong stocks is deep."
Japan's Nikkei .N225 rose 1%. .T
Elsewhere the dollar was a fraction weaker - with the euro firm ahead of an expected European Central Bank rate hike later this week - and sterling finding some support from a hope that incoming Prime Minister Rishi Sunak brings stability. FRX/
Gilts had jumped on Monday after Sunak cruised to victory in the Conservative Party leadership race. He will become Britain's first prime minister of colour on Tuesday and challenges lie ahead for its youngest leader in modern times.
"While the premium associated with September's reckless fiscal policy actions may have been removed, that does not take us back to a neutral view on sterling," said RBC Capital Markets' chief currency strategist Adam Cole.
"The UK's structural imbalances existed before those policy changes and they are still a longer-term concern."
Sterling GBP=D3 was last up 0.2% to $1.1302. The euro EUR=EBS held at $0.9875, and after two days of being whacked lower by probable intervention the dollar was steady at 148.92 Japanese yen JPY=EBS - not far below Friday's highs.
Treasuries were broadly steady with the benchmark yield on 10-year U.S. government debt US10YT=RR at 4.2047%. The Fed Funds rate is expected to peak at 4.50%-4.75% or higher in Q1 2023, according to 49 of 80 economists in a Reuters poll.
CHINA FLIGHT
Chinese markets remained volatile and jittery following Monday's withering selloff in Hong Kong. Xi Jinping's has raised worries that China will increasingly prioritise the state at the cost of the private sector.
China's yuan CNY=CFXS fell about 0.6% to 7.3090 on Tuesday and mainland stocks struggled to hold steady. The Hang Seng .HSI was last 0.1% lower and there are signs that weakness in the yuan and China's outlook are rippling across Asia.EMRG/FRX
"Conflict between Beijing's security and economic (growth) objectives have been rendered starker," said Vishnu Varathan, head of economics at Mizuho Bank in Singapore.
"A clean sweep of the Politburo Standing Committee by Xi loyalists, and a conspicuous absence of technocrats likely to be more focussed on firing up the economy, suggests that economic revival policies may be subordinated."
South Korea's won KRW=KFTC hit a 13-year low on Tuesday. Indonesia's hitherto resilient rupiah IDR=ID has hit the skids and even the second 100 basis point rate hike in a month is struggling to contain a slide in the Vietnamese dong VND=VN.
Later in the day tech giants Microsoft and Alphabet report results along with some bellwether firms such as General Motors GM.N, UPS UPS.N, General Electric GE.N and Coca-Cola KO.N.
The European Central Bank meets this week and is widely expected to raise rates by 75 basis points. 0#ECBWATCH
In commodities markets, gold prices XAU= were flat at $1,648 per ounce, while benchmark Brent LCOc1 crude futures were steady at $93.20 per barrel.
Global assetshttp://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging marketshttp://tmsnrt.rs/2ihRugV
MSCI All Country World Index Market Caphttp://tmsnrt.rs/2EmTD6j
(Reporting by Anshuman Daga. Editing by Gerry Doyle and Christian Schmollingr)
((anshuman.daga@tr.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 Anshuman Daga SINGAPORE, Oct 25 (Reuters) - Asian equities wallowed around lows hit early in the pandemic on Tuesday, while China's yuan slumped to a nearly 15-year trough as investors were rattled by President Xi Jinping's growing power. .T Elsewhere the dollar was a fraction weaker - with the euro firm ahead of an expected European Central Bank rate hike later this week - and sterling finding some support from a hope that incoming Prime Minister Rishi Sunak brings stability. "A clean sweep of the Politburo Standing Committee by Xi loyalists, and a conspicuous absence of technocrats likely to be more focussed on firing up the economy, suggests that economic revival policies may be subordinated."
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.T Elsewhere the dollar was a fraction weaker - with the euro firm ahead of an expected European Central Bank rate hike later this week - and sterling finding some support from a hope that incoming Prime Minister Rishi Sunak brings stability. The European Central Bank meets this week and is widely expected to raise rates by 75 basis points. Global assetshttp://tmsnrt.rs/2jvdmXl Global currencies vs. dollar http://tmsnrt.rs/2egbfVh Emerging marketshttp://tmsnrt.rs/2ihRugV MSCI All Country World Index Market Caphttp://tmsnrt.rs/2EmTD6j (Reporting by Anshuman Daga.
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By Anshuman Daga SINGAPORE, Oct 25 (Reuters) - Asian equities wallowed around lows hit early in the pandemic on Tuesday, while China's yuan slumped to a nearly 15-year trough as investors were rattled by President Xi Jinping's growing power. MSCI's broadest index of Asia-Pacific shares .MIAP00000PUS fell to the lowest since April 2020 before an attempted rebound in beaten-down Hong Kong tech shares dragged it back to flat. .T Elsewhere the dollar was a fraction weaker - with the euro firm ahead of an expected European Central Bank rate hike later this week - and sterling finding some support from a hope that incoming Prime Minister Rishi Sunak brings stability.
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By Anshuman Daga SINGAPORE, Oct 25 (Reuters) - Asian equities wallowed around lows hit early in the pandemic on Tuesday, while China's yuan slumped to a nearly 15-year trough as investors were rattled by President Xi Jinping's growing power. "(The) cumulative decline of Hong Kong stocks is deep." The European Central Bank meets this week and is widely expected to raise rates by 75 basis points.
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18762.0
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2022-10-25 00:00:00 UTC
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Is WisdomTree U.S. LargeCap ETF (EPS) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-wisdomtree-u.s.-largecap-etf-eps-a-strong-etf-right-now-3
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nan
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Launched on 02/23/2007, the WisdomTree U.S. LargeCap ETF (EPS) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Managed by Wisdomtree, EPS has amassed assets over $596.84 million, making it one of the average sized ETFs in the Style Box - Large Cap Value. This particular fund, before fees and expenses, seeks to match the performance of the WisdomTree U.S. Earnings 500 Index.
The WisdomTree U.S. LargeCap Index is a fundamentally weighted index that measures the performance of earnings-generating companies within the large-capitalization segment of the U.S. Stock Market.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.08% for this ETF, which makes it one of the least expensive products in the space.
EPS's 12-month trailing dividend yield is 1.97%.
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.
For EPS, it has heaviest allocation in the Information Technology sector --about 22.90% of the portfolio --while Financials and Healthcare round out the top three.
Taking into account individual holdings, Apple Inc (AAPL) accounts for about 6.55% of the fund's total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT).
Its top 10 holdings account for approximately 28.07% of EPS's total assets under management.
Performance and Risk
Year-to-date, the WisdomTree U.S. LargeCap ETF has lost about -18.04% so far, and is down about -13.59% over the last 12 months (as of 10/25/2022). EPS has traded between $38.39 and $50.92 in this past 52-week period.
The ETF has a beta of 1 and standard deviation of 24.47% for the trailing three-year period, making it a medium risk choice in the space. With about 502 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. LargeCap ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $50.69 billion in assets, Vanguard Value ETF has $97.32 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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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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WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 6.55% of the fund's total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 02/23/2007, the WisdomTree U.S. LargeCap ETF (EPS) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 6.55% of the fund's total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 02/23/2007, the WisdomTree U.S. LargeCap ETF (EPS) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 6.55% of the fund's total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 6.55% of the fund's total assets, followed by Alphabet Inc-Cl A (GOOGL) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 02/23/2007, the WisdomTree U.S. LargeCap ETF (EPS) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.
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18763.0
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2022-10-25 00:00:00 UTC
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Stock Market News for Oct 25, 2022
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-oct-25-2022
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nan
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nan
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Wall Street closed higher on Monday, buoyed by the prevailing sentiment that the Fed is looking to slow down its policy tightening. A major economic report showed a contraction in business activity, underscoring the notion that the Fed moves have worked and that it would pause to take stock. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 1.3% or 417.06 points to close at 31,499.62 points. Twenty-six components of the 30-stock index ended in the green, three ended in the red, while one remained unchanged.
The S&P 500 gained 1.2% or 44.59 points to finish at 3,797.34 points. Nine out of the 11 broad sectors of the benchmark index closed in the green. The Health Care Select Sector SPDR (XLV), the Consumer Staples Select Sector SPDR (XLP) and the Technology Select Sector SPDR (XLK) advanced 1.9%, 1.8% and 1.4%, respectively, while the Materials Select Sector SPDR (XLB) lost 0.6%.
The tech-heavy Nasdaq gained 0.9% or 92.90 points to end at 10,952.61 points led by large-cap tech stocks.
The fear-gauge CBOE Volatility Index (VIX) increased 0.5% to 29.85. A total of 11.8 billion shares were traded on Monday, higher than the last 20-session average of 11.6 billion. Advancers outnumbered decliners on the NYSE by a 1.36-to-1 ratio. On Nasdaq, a 1.03-to-1 ratio favored advancing issues.
Market Upbeat As Fed Officials Signal Policy Debate
The report from the Wall Street Journal and various comments coming in from important Fed officials like Christopher Waller and Mary Daly late last week suggested that the decision on interest rate hike in November would go down on expected lines. However, starting December, the Fed would be debating whether to continue with its stringent tightening of monetary policy to tackle inflation.
There is an overarching feeling that if the current steep rate of hikes is continued, the U.S. economy would land in a recession. Officials seem inclined to debate it out in the Fed December meeting. There is talk that the rate of hikes might come down from the December meet and that a total pause might be taken early next year as the Fed would like to take stock of what its policy tightening has achieved before taking the decision to push forward.
S&P Global said on Monday that its Manufacturing and Services PMI Index fell to 47.3 this month from a reading of 49.5 in September. This implied that business activity had contracted for the fourth straight month in October. The major reason cited for the fall in the report was the weakening of client demand, a direct fallout of the pressing interest rate hikes implemented by the central bank. Grim as it may be, the report brought some cheer to investors as it indicated that the Fed’s endeavor to slow the economy down was taking shape, and it might now be pushed into going slow on the steep rate of hikes lest it went overboard.
The U.S. 10-year treasury yield, however, increased on the manufacturing and services report showing that business had contracted. The benchmark yield added 3 bps to close the day at 4.248% after having fallen earlier in the session. Yields and prices are inversely related in the bond market.
Sectors that made most of the market doing well on rising confidence in the Fed’s policies going forward were Healthcare and Technology. Technology also did well with investors remaining upbeat about this being a big-tech earnings week.
Consequently, shares of Apple Inc. AAPL and NVIDIA Corporation NVDA rose 1.5% and 1.1%, respectively. Both carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Consequently, shares of Apple Inc. AAPL and NVIDIA Corporation NVDA rose 1.5% and 1.1%, respectively. Apple Inc. (AAPL): Free Stock Analysis Report A major economic report showed a contraction in business activity, underscoring the notion that the Fed moves have worked and that it would pause to take stock.
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Apple Inc. (AAPL): Free Stock Analysis Report Consequently, shares of Apple Inc. AAPL and NVIDIA Corporation NVDA rose 1.5% and 1.1%, respectively. In a new free report, Zacks is revealing the top 5 EV stocks for investors.
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Consequently, shares of Apple Inc. AAPL and NVIDIA Corporation NVDA rose 1.5% and 1.1%, respectively. Apple Inc. (AAPL): Free Stock Analysis Report The Health Care Select Sector SPDR (XLV), the Consumer Staples Select Sector SPDR (XLP) and the Technology Select Sector SPDR (XLK) advanced 1.9%, 1.8% and 1.4%, respectively, while the Materials Select Sector SPDR (XLB) lost 0.6%.
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Consequently, shares of Apple Inc. AAPL and NVIDIA Corporation NVDA rose 1.5% and 1.1%, respectively. Apple Inc. (AAPL): Free Stock Analysis Report Nine out of the 11 broad sectors of the benchmark index closed in the green.
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18764.0
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2022-10-25 00:00:00 UTC
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Nasdaq Bear Market: 2 Warren Buffett Stocks to Buy Hand Over Fist
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AAPL
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https://www.nasdaq.com/articles/nasdaq-bear-market%3A-2-warren-buffett-stocks-to-buy-hand-over-fist
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nan
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nan
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The Nasdaq Composite index has shed close to a third of its value so far in 2022 amid the broader stock market sell-off -- and it looks like things are going to get worse following the latest economic data; core inflation in the U.S. rose to a 40-year high in September. So another big rate hike may be in the cards from the Federal Reserve, which has adopted a hawkish approach to stifle the surging inflation.
This doesn't bode well for the stock market in general -- and growth stocks in particular. That's because higher interest rates lead to higher borrowing costs, affecting the bottom line. Consider tech giants like Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN). Apple is the largest holding in Warren Buffett's Berkshire Hathaway portfolio, comprising nearly 41%, while Amazon is a much smaller constituent, accounting for 0.4%.
While Apple stock is down 20% in 2022, Amazon has dropped close to 31%. And they could head even lower in the near term if persistent inflationary conditions weaken consumer spending during the critical holiday shopping period. But savvy investors would do well to focus on the bigger picture and consider accumulating these stocks from Warren Buffett's portfolio while they are on their way down. Let's see why.
1. Apple
Apple stock has been in the news of late for the wrong reasons. The smartphone giant has reportedly slashed orders for the iPhone 14 models on account of weak demand. That's not so surprising as the smartphone market has been in bad shape this year with shipments declining amid rising inflation.
The smartphone weakness is bad news for Apple as the iPhone is its largest source of revenue, producing nearly half of the company's sales in the third quarter of fiscal 2022. But investors shouldn't lose sight of the bigger picture as Apple is dominating a fast-growing smartphone niche -- 5G devices. Strategy Analytics estimates that Apple controlled 31% of the 5G smartphone market in 2021. Its shipments were more than those of the next two vendors combined.
2022 has been a bad year for 5G smartphones thanks to the overall weakness in the market. Apple component supplier Qorvo has reduced its 5G smartphone shipment forecast for 2022 to a range of 650 million to 675 million units, down from the earlier estimate of 750 million units.
But with the growing deployment of 5G networks across the globe, annual sales of 5G smartphones are expected to hit 1.41 billion units by 2026 and account for 75% of the overall market. If Apple commands even a quarter of the 5G smartphone market after four years, its annual shipments could exceed 350 million units. That would be a big bump over its 2022 smartphone shipment forecast of 220 million units.
More importantly, Apple is pulling the right strings to ensure that it remains a dominant force in the 5G smartphone market. The company is successfully penetrating nascent but potentially lucrative markets such as India, a country that could add billions of dollars to its revenue in the long run.
Concurrently, Apple is building a sustainable revenue stream with its services business, which continues to grow at a nice pace thanks to the huge installed base of the company's devices. The services business generated $19.6 billion in revenue in the fiscal third quarter, up 12% over the prior-year period. And the segment accounts for 23% of the company's total revenue, so it should move the needle in a bigger way for the company as the installed base of Apple's devices grows thanks to catalysts such as 5G.
With Apple stock trading at 23 times trailing earnings, which is a sharp discount to the company's 2021 average of 31, it may be a good idea to buy this Warren Buffett favorite before its fortunes start turning around.
2. Amazon
Amazon has also seen a sharp decline in its shares -- down 31% decline in 2022. Some investors may fear that slower growth in online shopping this holiday season could weigh on Amazon, but analysts are upbeat about the company's long-term prospects. The company's earnings are expected to clock a compound annual growth rate of 33% for the next five years since it stands to win big from lucrative markets such as e-commerce and cloud computing.
The global e-commerce market, for instance, is expected to be worth $5.4 trillion by 2026, compared to $3.3 trillion at present, as per Morgan Stanley. The investment bank estimates that the online channel will account for 27% of all retail sales by 2026, compared to 22% now. This presents a secular growth opportunity for Amazon with its market share in lucrative e-commerce markets on the rise.
In the U.S., for example, Amazon had 50% share of the gross merchandise volume (GMV) in the online retail space, up from 34% in 2016. Meanwhile, the company is making solid progress in emerging markets such as India, where e-commerce is taking off. It reportedly controls over 30% of the Indian e-commerce market, which is expected to grow at an annual pace of 20% through 2025.
Similarly, demand for cloud computing is going to be another key catalyst for Amazon given its solid share of this market and the secular growth opportunity. With a market share of 34%, Amazon Web Services (AWS) is the leading player in the $200 billion cloud business. It is estimated that the global cloud computing market could exceed $1.5 trillion in revenue by the end of the decade, opening another great opportunity for Amazon to clock outstanding growth in the long run.
In all, this Warren Buffett holding could come out of its slump and soar. Meanwhie, the stock's price-to-sales ratio is down to 2.4, and the forward price-to-earnings multiple sits at 47. That's a sharp discount to its five-year average sales multiple of 3.9 and forward earnings multiple of 76. So investors looking to add an e-commerce stock to their portfolios may want to buy it while it is available at an attractive valuation.
10 stocks we like better than Apple
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*Stock Advisor returns as of September 30, 2022
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), and Qorvo. 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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Consider tech giants like Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN). The Nasdaq Composite index has shed close to a third of its value so far in 2022 amid the broader stock market sell-off -- and it looks like things are going to get worse following the latest economic data; core inflation in the U.S. rose to a 40-year high in September. With Apple stock trading at 23 times trailing earnings, which is a sharp discount to the company's 2021 average of 31, it may be a good idea to buy this Warren Buffett favorite before its fortunes start turning around.
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Consider tech giants like Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN). This presents a secular growth opportunity for Amazon with its market share in lucrative e-commerce markets on the rise. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), and Qorvo.
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Consider tech giants like Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN). This presents a secular growth opportunity for Amazon with its market share in lucrative e-commerce markets on the rise. 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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Consider tech giants like Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN). If Apple commands even a quarter of the 5G smartphone market after four years, its annual shipments could exceed 350 million units. This presents a secular growth opportunity for Amazon with its market share in lucrative e-commerce markets on the rise.
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18765.0
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2022-10-25 00:00:00 UTC
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Adidas plans to end Kanye West partnership over 'offensive behaviour' - Bloomberg News
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AAPL
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https://www.nasdaq.com/articles/adidas-plans-to-end-kanye-west-partnership-over-offensive-behaviour-bloomberg-news
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nan
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nan
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Fixes typo in paragraph 5
Oct 25 (Reuters) - German sporting goods maker Adidas AG ADSGn.DE plans to end its partnership with American rapper Kanye West, following a rash of offensive behaviour from the performer and designer, Bloomberg News said on Tuesday, citing people familiar with the matter.
Adidas may announce the move as early as Tuesday, the report added, saying the rapper, who now goes by the name Ye, has made controversial statements, including anti-Semitic social media posts, in recent weeks. Adidas did not immediately respond to a Reuters' request for comment. Ye could not immediately be reached.
Adidas on Oct. 6 said it was reviewing its business partnership with the rapper and fashion designer.
The following weekend, the rapper had his Twitter and Instagram accounts restricted, with the social media platforms saying they removed his posts that online users condemned as anti-Semitic.
West, who has been partnering with Adidas since 2013 had been publicly critical of Adidas and its CEO, adding that the sporting goods maker were copying his ideas, CNBC had earlier reported.
In September, Ye terminated his partnership with apparel retailer Gap Inc GPS.N.
Ye recently has agreed to buy Parler, the social media platform popular among U.S. conservatives.
(Reporting by Mrinmay Dey in Bengaluru; Editing by Andrew Heavens and Tomasz Janowski)
((Mrinmay.Dey@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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Fixes typo in paragraph 5 Oct 25 (Reuters) - German sporting goods maker Adidas AG ADSGn.DE plans to end its partnership with American rapper Kanye West, following a rash of offensive behaviour from the performer and designer, Bloomberg News said on Tuesday, citing people familiar with the matter. Adidas may announce the move as early as Tuesday, the report added, saying the rapper, who now goes by the name Ye, has made controversial statements, including anti-Semitic social media posts, in recent weeks. The following weekend, the rapper had his Twitter and Instagram accounts restricted, with the social media platforms saying they removed his posts that online users condemned as anti-Semitic.
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Fixes typo in paragraph 5 Oct 25 (Reuters) - German sporting goods maker Adidas AG ADSGn.DE plans to end its partnership with American rapper Kanye West, following a rash of offensive behaviour from the performer and designer, Bloomberg News said on Tuesday, citing people familiar with the matter. Adidas may announce the move as early as Tuesday, the report added, saying the rapper, who now goes by the name Ye, has made controversial statements, including anti-Semitic social media posts, in recent weeks. The following weekend, the rapper had his Twitter and Instagram accounts restricted, with the social media platforms saying they removed his posts that online users condemned as anti-Semitic.
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Fixes typo in paragraph 5 Oct 25 (Reuters) - German sporting goods maker Adidas AG ADSGn.DE plans to end its partnership with American rapper Kanye West, following a rash of offensive behaviour from the performer and designer, Bloomberg News said on Tuesday, citing people familiar with the matter. Adidas may announce the move as early as Tuesday, the report added, saying the rapper, who now goes by the name Ye, has made controversial statements, including anti-Semitic social media posts, in recent weeks. West, who has been partnering with Adidas since 2013 had been publicly critical of Adidas and its CEO, adding that the sporting goods maker were copying his ideas, CNBC had earlier reported.
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Fixes typo in paragraph 5 Oct 25 (Reuters) - German sporting goods maker Adidas AG ADSGn.DE plans to end its partnership with American rapper Kanye West, following a rash of offensive behaviour from the performer and designer, Bloomberg News said on Tuesday, citing people familiar with the matter. Adidas may announce the move as early as Tuesday, the report added, saying the rapper, who now goes by the name Ye, has made controversial statements, including anti-Semitic social media posts, in recent weeks. Adidas did not immediately respond to a Reuters' request for comment.
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18766.0
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2022-10-25 00:00:00 UTC
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Apple is cutting back production of iPhone 14 Plus due to weak demand - TrendForce
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AAPL
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https://www.nasdaq.com/articles/apple-is-cutting-back-production-of-iphone-14-plus-due-to-weak-demand-trendforce
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Oct 25 (Reuters) - Apple Inc AAPL.O is cutting back production of iPhone 14 Plus and is increasing the output of the more expensive iPhone 14 Pro due to lukewarm demand, market research firm TrendForce said Tuesday.
The share of more expensive iPhone 14 Pro series has increased to 60% of the total output from the initially planned 50%, and it could rise to 65% in the future, the report said.
Apple did not immediately respond to a Reuters' request for comment.
The report also said that rising U.S. interest rates could crimp consumer spending, undermining the demand for iPhones in the first quarter of 2023. This could lead to a 14% year-on-year drop in production to 52 million units.
Analysts have in the past said iPhone 14's Pro and Pro Max versions were selling at a brisk pace, although demand for the base model, typically Apple's best seller, has been underwhelming.
Last month, the company said it would manufacture its latest iPhone 14 in India, as the tech giant moves some of its production away from China to hedge risks arising from the growing tensions between Washington and Beijing.
TrendForce estimates the share of Apple's output from India to exceed 5% in 2023 and increase over the years.
(Reporting by Shivani Tanna in Bengaluru; Editing by Dhanya Ann Thoppil)
((ShivaniJayesh.Tanna@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Oct 25 (Reuters) - Apple Inc AAPL.O is cutting back production of iPhone 14 Plus and is increasing the output of the more expensive iPhone 14 Pro due to lukewarm demand, market research firm TrendForce said Tuesday. The share of more expensive iPhone 14 Pro series has increased to 60% of the total output from the initially planned 50%, and it could rise to 65% in the future, the report said. The report also said that rising U.S. interest rates could crimp consumer spending, undermining the demand for iPhones in the first quarter of 2023.
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Oct 25 (Reuters) - Apple Inc AAPL.O is cutting back production of iPhone 14 Plus and is increasing the output of the more expensive iPhone 14 Pro due to lukewarm demand, market research firm TrendForce said Tuesday. The share of more expensive iPhone 14 Pro series has increased to 60% of the total output from the initially planned 50%, and it could rise to 65% in the future, the report said. TrendForce estimates the share of Apple's output from India to exceed 5% in 2023 and increase over the years.
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Oct 25 (Reuters) - Apple Inc AAPL.O is cutting back production of iPhone 14 Plus and is increasing the output of the more expensive iPhone 14 Pro due to lukewarm demand, market research firm TrendForce said Tuesday. The share of more expensive iPhone 14 Pro series has increased to 60% of the total output from the initially planned 50%, and it could rise to 65% in the future, the report said. Analysts have in the past said iPhone 14's Pro and Pro Max versions were selling at a brisk pace, although demand for the base model, typically Apple's best seller, has been underwhelming.
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Oct 25 (Reuters) - Apple Inc AAPL.O is cutting back production of iPhone 14 Plus and is increasing the output of the more expensive iPhone 14 Pro due to lukewarm demand, market research firm TrendForce said Tuesday. The share of more expensive iPhone 14 Pro series has increased to 60% of the total output from the initially planned 50%, and it could rise to 65% in the future, the report said. Apple did not immediately respond to a Reuters' request for comment.
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18767.0
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2022-10-24 00:00:00 UTC
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Alphabet, Microsoft, Meta Platforms, Apple and Amazon are part of Zacks Earnings Preview
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AAPL
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https://www.nasdaq.com/articles/alphabet-microsoft-meta-platforms-apple-and-amazon-are-part-of-zacks-earnings-preview
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For Immediate Release
Chicago, IL – October 24, 2022 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Alphabet GOOGL, Microsoft MSFT, Meta Platforms META, Apple AAPL and Amazon AMZN.
Here's What to Expect from Big Tech Earnings
The quarterly report fromSnap Inc. last week forced us once again to look for clues to help determine the outlook for digital advertising spending in the current uncertain macroeconomic environment. The rude shock from the Instagram rival puts the spotlight on other Tech leaders that are on deck to report September-quarter results this week.
Reporting this week are the 'Big 5 Tech players' – Alphabet and Microsoft after the market's close on Tuesday (10/25), Instagram parent Meta Platforms after the close on Wednesday (7/26), Apple and Amazon after the close on Thursday (7/27).
Estimates for these companies came down in the wake of Snap's Q2 disappointment and their own June-quarter results. One takeaway from the last round of earnings releases from these digital advertising platforms was that advertising customers don't see Snap, Meta and Alphabet exactly the same way.
There are other factors at play here on top of the softening macro backdrop, including the impact of changes to Apple's operating system (iOS), that suggest we should be careful in using the Snap disappointment as a read-through to these other digital platforms.
Spending by businesses under the advertisement category is not the only spending category that is exposed to negative macroeconomic developments. Tech giants like Microsoft, Alphabet and Amazon (through its Amazon Web Services or AWS arm) receive a ton of money from other companies for software and services. It is reasonable to expect those receipts to take a hit as customers get cautious in the face of macroeconomic challenges.
We will see what we hear from these companies in their Q3 releases, but historically software spending doesn't get cut to the same extent as ad spending. Microsoft, Amazon (AWS) and Alphabet are the leaders in the cloud computing space.
Revenue growth is expected to remain strong, with cost pressures weighing on earnings expectations. Needless to add that these Tech leaders are faced with compressed margins.
Whether the growth trend for these companies is decelerating or not is a function of your holding horizon. These companies are impressive growth engines in the long run, even if those estimates for 2023 and 2024 come down in the days ahead.
Ad spending may be coming down as this week's reports from Meta and Alphabet will reconfirm, but no one is suggesting that they are expected to lose share to your local newspaper's classified section.
As the macroeconomic clouds clear, as they eventually will, these digital platforms will be there to recapture those spending dollars.
Beyond the Big 5 Tech players, total Q3 earnings for the Technology sector as a whole are expected to be down -14.1% from the same period last year on +1.8% higher revenues.
This big picture view of the 'Big 5' players as well as the sector as a whole shows a decelerating growth trend. That said, unlike this 'quarterly view', the annual picture shows a lot more stability.
Q3 Earnings Season Scorecard
Including all of the results through Friday, October 21st, we now have Q3 results from 99 S&P 500 members that combined account for 23.6% of the index's total market capitalization.
We get into the heart of the reporting cycle this week, with results from more than 650 companies due out, including results from 160 S&P 500 members. In addition to the aforementioned 'Big 5' Tech players, this week's line-up has representation from practically every sector.
For the 99 index members that have reported results already, total earnings are down -4% from the same period last year on +7.3% higher revenues, with 76.8% beating EPS estimates and 64.6% beating revenue estimates.
The EPS and revenue beats percentages were notably on the weak side earlier in the reporting cycle. But they are very much within the historical range by now.
The Earnings Big Picture
2022 Q3 earnings are expected to be up +0.9% on +9.1% 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 -5.7% 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.
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>> Breaking Down the Rough Start to Q3 Earnings Season
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
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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This week’s list includes Alphabet GOOGL, Microsoft MSFT, Meta Platforms META, Apple AAPL and Amazon AMZN. Apple Inc. (AAPL): Free Stock Analysis Report Here's What to Expect from Big Tech Earnings The quarterly report fromSnap Inc. last week forced us once again to look for clues to help determine the outlook for digital advertising spending in the current uncertain macroeconomic environment.
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This week’s list includes Alphabet GOOGL, Microsoft MSFT, Meta Platforms META, Apple AAPL and Amazon AMZN. Apple Inc. (AAPL): Free Stock Analysis Report Reporting this week are the 'Big 5 Tech players' – Alphabet and Microsoft after the market's close on Tuesday (10/25), Instagram parent Meta Platforms after the close on Wednesday (7/26), Apple and Amazon after the close on Thursday (7/27).
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This week’s list includes Alphabet GOOGL, Microsoft MSFT, Meta Platforms META, Apple AAPL and Amazon AMZN. Apple Inc. (AAPL): Free Stock Analysis Report Here's What to Expect from Big Tech Earnings The quarterly report fromSnap Inc. last week forced us once again to look for clues to help determine the outlook for digital advertising spending in the current uncertain macroeconomic environment.
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This week’s list includes Alphabet GOOGL, Microsoft MSFT, Meta Platforms META, Apple AAPL and Amazon AMZN. Apple Inc. (AAPL): Free Stock Analysis Report This big picture view of the 'Big 5' players as well as the sector as a whole shows a decelerating growth trend.
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18768.0
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2022-10-24 00:00:00 UTC
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Big-Tech Earnings Week Commences
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AAPL
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https://www.nasdaq.com/articles/big-tech-earnings-week-commences
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We have another big week in store for the major market indices, when the stocks formerly known as FANG (or at least some of them) report earnings results: Alphabet GOOGL on Tuesday, Meta META Wednesday and both Apple AAPL and Amazon AMZN Thursday. In economic data, home prices, durable goods sales, Q3 GDP and a new September PCE report all await us.
Today, we start a little slowly, however: after the open we S&P PMI Manufacturing and Services results for October, expected to tick in different directions: Manufacturing is expected to come down 20 basis points (bps) to 51.8, while Services is anticipated to move equally the opposite direction to 49.7. For earnings, though the major Wall Street banks have all reported, Discover Financial Services DFS is expected to report Q3 earnings after today’s close.
Pre-markets are up again, after a third-straight up-week on the Dow (the first such streak since last year). The blue-chip index is currently +184 points, while the S&P 500 and Nasdaq are registering gains of +16 and +10 points, respectively. Investors are once again trying the game the Fed’s pullback of its current string of 75-bps rate hikes: assuming the November result is already baked in the cake, there is now speculation the Fed will only hike 50 bps or fewer in the Fed’s December meeting.
Not all stocks are doing great this morning, however: many of the biggest Chinese stocks are down — Pinduoduo PDD is -17% at this hour, while Alibaba BABA is -11%. There are no news reports out of China speculating this sell-off has to do with President Xi securing his third term in office (making him the most substantial Chinese leader since Mao Zedong); perhaps these two things happening the same day is a coincidence.
Finally, this morning we see an announcement that Chancellor of the Exchequer Rishi Sunak will become the next Prime Minister of the UK, replacing fellow Tory conservative Liz Truss after a record-shattering 44 days in office. Sunak, who had also served as PM Boris Johnson’s Treasury chief, would be the first-ever Hindu prime minister of the UK. As with Truss before him, Sunak will have historically large problems regarding Britain’s economy and lots of criticism awaiting his decisions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Discover Financial Services (DFS): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Alibaba Group Holding Limited (BABA): Free Stock Analysis Report
Pinduoduo Inc. Sponsored ADR (PDD): 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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We have another big week in store for the major market indices, when the stocks formerly known as FANG (or at least some of them) report earnings results: Alphabet GOOGL on Tuesday, Meta META Wednesday and both Apple AAPL and Amazon AMZN Thursday. Apple Inc. (AAPL): Free Stock Analysis Report In economic data, home prices, durable goods sales, Q3 GDP and a new September PCE report all await us.
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Apple Inc. (AAPL): Free Stock Analysis Report We have another big week in store for the major market indices, when the stocks formerly known as FANG (or at least some of them) report earnings results: Alphabet GOOGL on Tuesday, Meta META Wednesday and both Apple AAPL and Amazon AMZN Thursday. For earnings, though the major Wall Street banks have all reported, Discover Financial Services DFS is expected to report Q3 earnings after today’s close.
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We have another big week in store for the major market indices, when the stocks formerly known as FANG (or at least some of them) report earnings results: Alphabet GOOGL on Tuesday, Meta META Wednesday and both Apple AAPL and Amazon AMZN Thursday. Apple Inc. (AAPL): Free Stock Analysis Report Amazon.com, Inc. (AMZN): Free Stock Analysis Report
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We have another big week in store for the major market indices, when the stocks formerly known as FANG (or at least some of them) report earnings results: Alphabet GOOGL on Tuesday, Meta META Wednesday and both Apple AAPL and Amazon AMZN Thursday. Apple Inc. (AAPL): Free Stock Analysis Report Finally, this morning we see an announcement that Chancellor of the Exchequer Rishi Sunak will become the next Prime Minister of the UK, replacing fellow Tory conservative Liz Truss after a record-shattering 44 days in office.
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18769.0
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2022-10-24 00:00:00 UTC
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GLOBAL MARKETS-Asian stocks ease to 2-1/2-year lows, pound lifted by Sunak's victory
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AAPL
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https://www.nasdaq.com/articles/global-markets-asian-stocks-ease-to-2-1-2-year-lows-pound-lifted-by-sunaks-victory
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By Anshuman Daga
SINGAPORE, Oct 25 (Reuters) - Asian equities fell to new 2-1/2-year lows on Tuesday as early gains inspired by a rally on Wall Street on hopes the Federal Reserve could be nearing the end of aggressive rate increases were offset by weakness in Chinese shares and the yuan.
The U.S. dollar eased against major peers, while the sterling took aim at this month's highs after Rishi Sunak was set to become Britain's next prime minister, seeking to restore stability to a country reeling from years of political and economic turmoil.
Sterling GBP=D3 strengthened 0.3% to $1.13170, heading toward the high this month of $1.1493 from Oct. 5. USD/
Equities were mixed in Asia, with Japan's .N225 advancing 0.7% and South Korea .KS11 rising 0.3% but Taiwan .TWII was down 0.7% and Hong Kong .HSI shed 0.6%.
MSCI's broadest index of Asia-Pacific shares .MIAP00000PUS lost 0.4% to 428.2 after dipping to 427.4 , the lowest since April 2020.
ING economists noted widespread weakness in the Purchasing Managers' Index (PMI) published on Monday across the developed markets. But they said that "perhaps the sharp decline in the U.S. service sector PMI is a silver lining in this bad news if it means slower Fed hikes and perhaps a lower peak Fed funds rate?"
"This could be one reason that equity markets are finding some support," they added.
The Asian benchmark is nursing losses of nearly 32% so far this year, weighed by big falls in Hong Kong shares while emerging markets such as India .BSESN and Indonesia .JKSE have gained on improving growth prospects.
However, Chinese stocks fell further on Tuesday after Xi Jinping's raised worries that a more powerful Party leadership will increasingly prioritise the state at the cost of the private sector.
The mainland Chinese benchmark index .CSI300 shed 0.6 and the offshore yuan CNH=D3 tumbled to yet another record low against the dollar, weakening to as much as 7.3650 per dollar.
Sentiment had already been affected by delayed data on gross domestic product (GDP) showing the Chinese economy grew 3.9% in the third quarter, beating forecasts of 3.5%, but retail sales disappointed with a meagre rise of 2.5%.
China's onshore yuan CNY=CFXS slid to a near 15-year low, after the central bank set the lowest mid-point since 2008 following Monday's sell-off in Chinese assets.CNY/
On Monday, U.S. shares extended last week's rally and European shares climbed s signs of a cooling U.S. economy stoked hopes that the Federal Reserve will slow its pace of rate hikes.
The Dow Jones Industrial Average .DJI rose 1.34%, the S&P 500 .SPX gained 1.19% and the Nasdaq Composite .IXIC added 0.86%.
U.S. business activity contracted for a fourth straight month in October, suggesting the Fed's barrage of steep interest rate increases is having the desired effect.
Markets are still priced for a rate rise of 75 basis points next month, but have scaled back bets on a matching move in December.
The funds rate was expected to peak at 4.50%-4.75% or higher in Q1 2023, according to 49 of 80 economists in a Reuters poll.
The European Central Bank meets this week and is widely expected to raise rates by 75 basis points. 0#ECBWATCH
In commodities markets, gold prices XAU= rose 0.1% to $1,650.6 per ounce, while benchmark Brent LCOc1 crude futures were steady at $93.2 per barrel.
Global assetshttp://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging marketshttp://tmsnrt.rs/2ihRugV
MSCI All Country World Index Market Caphttp://tmsnrt.rs/2EmTD6j
(Reporting by Anshuman Daga. Editing by Gerry Doyle)
((anshuman.daga@tr.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 Anshuman Daga SINGAPORE, Oct 25 (Reuters) - Asian equities fell to new 2-1/2-year lows on Tuesday as early gains inspired by a rally on Wall Street on hopes the Federal Reserve could be nearing the end of aggressive rate increases were offset by weakness in Chinese shares and the yuan. The U.S. dollar eased against major peers, while the sterling took aim at this month's highs after Rishi Sunak was set to become Britain's next prime minister, seeking to restore stability to a country reeling from years of political and economic turmoil. The Asian benchmark is nursing losses of nearly 32% so far this year, weighed by big falls in Hong Kong shares while emerging markets such as India .BSESN and Indonesia .JKSE have gained on improving growth prospects.
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China's onshore yuan CNY=CFXS slid to a near 15-year low, after the central bank set the lowest mid-point since 2008 following Monday's sell-off in Chinese assets.CNY/ On Monday, U.S. shares extended last week's rally and European shares climbed s signs of a cooling U.S. economy stoked hopes that the Federal Reserve will slow its pace of rate hikes. The European Central Bank meets this week and is widely expected to raise rates by 75 basis points. Global assetshttp://tmsnrt.rs/2jvdmXl Global currencies vs. dollar http://tmsnrt.rs/2egbfVh Emerging marketshttp://tmsnrt.rs/2ihRugV MSCI All Country World Index Market Caphttp://tmsnrt.rs/2EmTD6j (Reporting by Anshuman Daga.
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By Anshuman Daga SINGAPORE, Oct 25 (Reuters) - Asian equities fell to new 2-1/2-year lows on Tuesday as early gains inspired by a rally on Wall Street on hopes the Federal Reserve could be nearing the end of aggressive rate increases were offset by weakness in Chinese shares and the yuan. The Asian benchmark is nursing losses of nearly 32% so far this year, weighed by big falls in Hong Kong shares while emerging markets such as India .BSESN and Indonesia .JKSE have gained on improving growth prospects. China's onshore yuan CNY=CFXS slid to a near 15-year low, after the central bank set the lowest mid-point since 2008 following Monday's sell-off in Chinese assets.CNY/ On Monday, U.S. shares extended last week's rally and European shares climbed s signs of a cooling U.S. economy stoked hopes that the Federal Reserve will slow its pace of rate hikes.
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But they said that "perhaps the sharp decline in the U.S. service sector PMI is a silver lining in this bad news if it means slower Fed hikes and perhaps a lower peak Fed funds rate?" China's onshore yuan CNY=CFXS slid to a near 15-year low, after the central bank set the lowest mid-point since 2008 following Monday's sell-off in Chinese assets.CNY/ On Monday, U.S. shares extended last week's rally and European shares climbed s signs of a cooling U.S. economy stoked hopes that the Federal Reserve will slow its pace of rate hikes. The European Central Bank meets this week and is widely expected to raise rates by 75 basis points.
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18770.0
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2022-10-24 00:00:00 UTC
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Markets Up Big from a Month Ago, Earnings On Deck
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AAPL
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https://www.nasdaq.com/articles/markets-up-big-from-a-month-ago-earnings-on-deck
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Markets performed well to start another week — our heaviest for earnings reports so far this quarter — which is getting off to a slow start. While we await earnings from Alphabet GOOGL, Microsoft MSFT, Apple AAPL and Amazon AMZN in coming days, we’re seeing a few key names just trickle in here and there.
The Dow closed +417 points on the day, +1.34%. The blue-chip index is now up +7.65% over the past month — even more off its September 30 low. The S&P 500 wasn’t too shabby today, either: +1.19% (+3.81% in the past month), while the Nasdaq grew +0.86% — +1.39% since this time a month ago, though +630 points higher than its mid-October low. The small-cap Russell 2000 headed +0.35% north on the day, a very respectable +5.59% for the month.
Apple’s coming earnings print should be interesting; just today (in Q4), the company announced price hikes for Apple Music and Apple TV+. This follows a price hike for the new 14-model iPhones recently. Is the world’s biggest gadget-maker in danger of putting up less than impressive numbers this quarter? With difficulties in its China market and in-store sales down in the last-reported quarter, it would count as a possibility, although Apple is a very reliable earnings-beater.
Earlier today, we saw new data from PMI Manufacturing and Services — both of which not only came in light of expectations, but beneath the 50-level between growth and contraction. Manufacturing for October reached 49.9, off the 51.8 expected and the unrevised 52.0 reported last month. It’s the first time Manufacturing has been below 50 since the pandemic, which is the only ever sub-50 read going back to 2013.
Services only came in at 46.6, well off the 49.7 expected and downwardly revised 49.3 a month ago. Weak client demand, and — in what may be a first in this cycle’s employment data — employment down for the first time since June 2020 are the key findings here. Companies apparently are not as often re-hiring employees who leave their positions. But this is the weakest business level we’ve seen since September 2020.
The Fed wants to see a plurality of these sorts of economic data before amending its current interest rate hike trend. We frankly haven’t seen enough data pointing directly to labor market weakness ahead of next Wednesday’s latest interest rate hike to expect anything other than a 75 basis-point (bps) raise, to 3.75-4.00%. The markets priced this in — and then some — over the last 2-3 weeks, depending on the index, but do not look ready to revisit these lows anytime soon.
One possible scenario that might freak out markets in the next couple weeks looks from here to be merely a matter of bad timing: if the Fed, on November 2nd, hikes 75 bps as expected — and then jobs numbers two days later show a big leg down (say, sub-100K after posting 263K last month) — this could press the nagging fear that the Fed is going to tighten too far too fast, and they won’t see what they broke until it’s too late.
But even if all these predictions somehow come to bear, any shakiness the markets would feel on such a notion would be easily quelled by subsequent dovish language from the Fed. They would hint at a slow-down or a stoppage, though probably not a pivot, and before you know it the markets would be back at the races.
Questions or comments about this article and/or its author? Click here>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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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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While we await earnings from Alphabet GOOGL, Microsoft MSFT, Apple AAPL and Amazon AMZN in coming days, we’re seeing a few key names just trickle in here and there. Apple Inc. (AAPL): Free Stock Analysis Report We frankly haven’t seen enough data pointing directly to labor market weakness ahead of next Wednesday’s latest interest rate hike to expect anything other than a 75 basis-point (bps) raise, to 3.75-4.00%.
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While we await earnings from Alphabet GOOGL, Microsoft MSFT, Apple AAPL and Amazon AMZN in coming days, we’re seeing a few key names just trickle in here and there. Apple Inc. (AAPL): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report
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While we await earnings from Alphabet GOOGL, Microsoft MSFT, Apple AAPL and Amazon AMZN in coming days, we’re seeing a few key names just trickle in here and there. Apple Inc. (AAPL): Free Stock Analysis Report Apple’s coming earnings print should be interesting; just today (in Q4), the company announced price hikes for Apple Music and Apple TV+.
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While we await earnings from Alphabet GOOGL, Microsoft MSFT, Apple AAPL and Amazon AMZN in coming days, we’re seeing a few key names just trickle in here and there. Apple Inc. (AAPL): Free Stock Analysis Report Apple’s coming earnings print should be interesting; just today (in Q4), the company announced price hikes for Apple Music and Apple TV+.
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18771.0
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2022-10-24 00:00:00 UTC
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GLOBAL MARKETS-U.S., European shares climb on hopes Fed will slow rate hike pace
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AAPL
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https://www.nasdaq.com/articles/global-markets-u.s.-european-shares-climb-on-hopes-fed-will-slow-rate-hike-pace
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By Chris Prentice and Amanda Cooper
WASHINGTON/LONDON, Oct 24 (Reuters) - U.S. shares extended last week's rally and European shares climbed on Monday as signs of a cooling U.S. economy stoked hopes that the Federal Reserve will slow its pace of rate hikes.
The Dow Jones Industrial Average .DJI rose 1.34%, the S&P 500 .SPX gained 1.19% and the Nasdaq Composite .IXIC added 0.86%.
The tech-heavy Nasdaq recovered after taking a hit from tumbling Tesla Inc TSLA.O shares and as traders awaited earnings in the coming days from Apple AAPL.O, Google parent Alphabet GOOGL.O and Amazon.com AMZN.O.
U.S. business activity contracted for a fourth straight month in October, suggesting the Fed's barrage of steep interest rate hikes is having the desired effect, raising hopes that the central bank could begin slowing the pace of increases to the Fed funds target rate.
"Investors are getting more confident that inflation is going to come down and that the Fed might be quick to pause," said Edward Moya, senior market analyst at OANDA in New York. "The flash PMIs (purchasing managers index data) showed significant weakness across both the service and manufacturing parts of the economy, which is good news for investors expecting the Fed to pause early next year."
The dollar weathered another suspected Japanese intervention to rise against the yen, advancing to 149.70 yen JPY=EBS in early trade before retreating. Japan likely spent a record 5.4 trillion-5.5 trillion yen ($36.16 billion-$36.83 billion) in its yen-buying intervention last Friday, according to estimates by Tokyo money market brokerage firms. Japanese authorities did not confirm whether or not there had been intervention.
Sterling seesawed in volatile trade on news that Boris Johnson had dropped out of the running for British prime minister. Finance minister Rishi Sunak will become Britain's next prime minister after he won the race to lead the Conservative Party, which could reduce some of the political uncertainty hanging over the pound.
Europe's STOXX 600 index .STOXX finished up 1.4% at its highest level in nearly a week, with utilities .SX6P, media .SXMP and travel and leisure .SXTP sectors leading the gains. .EU
Markets are still priced for a rate rise of 75 basis points next month, but have scaled back bets on a matching move in December. The peak for rates has also edged down to around 4.87%, from above 5% early last week. FEDWATCH
Fed officials indicated that the pace of tightening would be at the heart of any policy debate at November's meeting.
Chinese blue chips .CSI300 slid almost 3%, while Hong Kong shares fell 6.4%, their biggest one-day drop since the financial crisis. The offshore yuan hit another record low against the dollar CNH=D3 after Xi Jinping secured a precedent-breaking third leadership term, picking a top governing body stacked with loyalists. Xi is likely to stick to his zero-COVID policy that is damaging growth, analysts say.
Delayed data on gross domestic product (GDP) showed the Chinese economy grew 3.9% in the third quarter, above forecasts for 3.5%, but retail sales disappointed, with a rise of 2.5%.
Investors will get a look at U.S. GDP on Thursday and core inflation measures a day later. The economy is forecast to have grown an annualized 2.1% in the third quarter.
The European Central Bank meets this week and is widely expected to raise rates by 75 bps. 0#ECBWATCH
The euro last traded at $0.98640 EUR=EBS, having briefly been as high as $0.9899 early in the session.
The Bank of Canada is also expected to tighten by 75 bps at its meeting this week.
In treasury markets, traders shrugged off the slowdown in business activity data, staying concerned that the Fed would maintain its ultra-hawkish stance on fighting inflation. Yields climbed.US/
U.S. 10-year Treasury yields last traded at 4.2508% US10YT=RR, off a 15-year peak of 4.337% on Friday.
In commodities, gold prices were under pressure from a firm dollar and the elevated U.S. bond yields. U.S. gold futures GOL/
Brent crude futures LCOc1 settled at $93.26 a barrel, down 0.3% and U.S. West Texas Intermediate crude CLc1 finished down 0.6% at $84.58 data on lackluster demand from China and a stronger U.S. dollar. O/R
Asia stock marketshttps://tmsnrt.rs/2zpUAr4
Asia-Pacific valuationshttps://tmsnrt.rs/2Dr2BQA
(Reporting by Chris Prentice in Washington and Amanda Cooper in London Additional reporting by Amruta Khandekar, Devik Jain, and Wayne Cole Editing by Nick Macfie, Will Dunham and Matthew Lewis)
((christine.prentice@thomsonreuters.com; +1 (202) 843-6464;))
The views and 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 tech-heavy Nasdaq recovered after taking a hit from tumbling Tesla Inc TSLA.O shares and as traders awaited earnings in the coming days from Apple AAPL.O, Google parent Alphabet GOOGL.O and Amazon.com AMZN.O. "The flash PMIs (purchasing managers index data) showed significant weakness across both the service and manufacturing parts of the economy, which is good news for investors expecting the Fed to pause early next year." The offshore yuan hit another record low against the dollar CNH=D3 after Xi Jinping secured a precedent-breaking third leadership term, picking a top governing body stacked with loyalists.
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The tech-heavy Nasdaq recovered after taking a hit from tumbling Tesla Inc TSLA.O shares and as traders awaited earnings in the coming days from Apple AAPL.O, Google parent Alphabet GOOGL.O and Amazon.com AMZN.O. By Chris Prentice and Amanda Cooper WASHINGTON/LONDON, Oct 24 (Reuters) - U.S. shares extended last week's rally and European shares climbed on Monday as signs of a cooling U.S. economy stoked hopes that the Federal Reserve will slow its pace of rate hikes. "The flash PMIs (purchasing managers index data) showed significant weakness across both the service and manufacturing parts of the economy, which is good news for investors expecting the Fed to pause early next year."
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The tech-heavy Nasdaq recovered after taking a hit from tumbling Tesla Inc TSLA.O shares and as traders awaited earnings in the coming days from Apple AAPL.O, Google parent Alphabet GOOGL.O and Amazon.com AMZN.O. By Chris Prentice and Amanda Cooper WASHINGTON/LONDON, Oct 24 (Reuters) - U.S. shares extended last week's rally and European shares climbed on Monday as signs of a cooling U.S. economy stoked hopes that the Federal Reserve will slow its pace of rate hikes. U.S. business activity contracted for a fourth straight month in October, suggesting the Fed's barrage of steep interest rate hikes is having the desired effect, raising hopes that the central bank could begin slowing the pace of increases to the Fed funds target rate.
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The tech-heavy Nasdaq recovered after taking a hit from tumbling Tesla Inc TSLA.O shares and as traders awaited earnings in the coming days from Apple AAPL.O, Google parent Alphabet GOOGL.O and Amazon.com AMZN.O. "Investors are getting more confident that inflation is going to come down and that the Fed might be quick to pause," said Edward Moya, senior market analyst at OANDA in New York. The dollar weathered another suspected Japanese intervention to rise against the yen, advancing to 149.70 yen JPY=EBS in early trade before retreating.
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18772.0
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2022-10-24 00:00:00 UTC
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US STOCKS-Wall St closes sharply higher on hopes of abating Fed
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-closes-sharply-higher-on-hopes-of-abating-fed
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nan
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nan
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By Stephen Culp
NEW YORK, Oct 24 (Reuters) - U.S. stocks advanced on Monday, extending last week's gains as signs of economic softness suggested the effects of the Fed's aggressive policy aimed at cooling the economy, thereby curbing decades-high inflation, are beginning to take root.
A report from S&P Global showed a contraction in business activity this month, offering a hint that the Federal Reserve's barrage of steep interest rate hikes are having their desired effect, raising hopes that the central bank could begin slowing the pace of increases to the Fed funds target rate.
The Dow Jones Industrial Average .DJI rose 417.06 points, or 1.34%, to 31,499.62, the S&P 500 .SPX gained 44.59 points, or 1.19%, to 3,797.34 and the Nasdaq Composite .IXIC added 92.90 points, or 0.86%, to 10,952.61.
Among the 11 major sectors in the S&P 500, nine closed green, with healthcare .SPXHC enjoying the largest percentage gain. Materials .SPLRCM and real estate .SPLRCR ended the session in negative territory.
Tesla Inc TSLA.O shares slid 1.5% after the electric automaker cut prices for its Model 3 and Model Y cars by as much as 9% in China, signaling softening demand in the world's largest auto market.
U.S.-listed shares of Chinese companies such as Pinduoduo PDD.O, JD.com JD.O and Baidu Inc BIDU.O plunged between 12% and 25% as President Xi Jinping introduced the new Politburo Standing Committee stacked with loyalists.
Third quarter earnings season shifts into overdrive this week. So far, nearly one-fifth of the companies in the S&P 500 have reported. Of those, 74.7% have delivered consensus-beating results, according to Refinitiv data.
Analysts expect S&P 500 earnings growth of 3.0%, on aggregate, down from 4.5% at the beginning of the month, per Refinitiv.
Results from a slew of heavy-hitting tech and tech-adjacent companies are likely to dominate the earnings chatter this week.
Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O following on Tuesday. On Wednesday, Apple Inc AAPL.O and Meta Platforms Inc META.O step up to the plate, with Amazon.com AMZN.O wrapping up the FAANGs on Thursday.
High-rolling industrials are also expected to post earnings this week, including United Parcel Service UPS.N, Boeing Co BA.N, Ford Motor Co F.N, 3M Co MMM.N, General Motors Co GM.N, Chevron CVX.N and Exxon Mobil XOM.N.
The S&P 500 posted 21 new 52-week highs and 4 new lows; the Nasdaq Composite recorded 73 new highs and 331 new lows.
Volume on U.S. exchanges was 11.80 billion shares, compared with the 11.56 billion average for the full session over the last 20 trading days.
(Reporting by Stephen Culp; Additional reporting by Bansari Mayur Kamdar and Amruta Khandekar in Bengaluru; editing by Grant McCool)
((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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On Wednesday, Apple Inc AAPL.O and Meta Platforms Inc META.O step up to the plate, with Amazon.com AMZN.O wrapping up the FAANGs on Thursday. By Stephen Culp NEW YORK, Oct 24 (Reuters) - U.S. stocks advanced on Monday, extending last week's gains as signs of economic softness suggested the effects of the Fed's aggressive policy aimed at cooling the economy, thereby curbing decades-high inflation, are beginning to take root. A report from S&P Global showed a contraction in business activity this month, offering a hint that the Federal Reserve's barrage of steep interest rate hikes are having their desired effect, raising hopes that the central bank could begin slowing the pace of increases to the Fed funds target rate.
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On Wednesday, Apple Inc AAPL.O and Meta Platforms Inc META.O step up to the plate, with Amazon.com AMZN.O wrapping up the FAANGs on Thursday. High-rolling industrials are also expected to post earnings this week, including United Parcel Service UPS.N, Boeing Co BA.N, Ford Motor Co F.N, 3M Co MMM.N, General Motors Co GM.N, Chevron CVX.N and Exxon Mobil XOM.N. The S&P 500 posted 21 new 52-week highs and 4 new lows; the Nasdaq Composite recorded 73 new highs and 331 new lows.
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On Wednesday, Apple Inc AAPL.O and Meta Platforms Inc META.O step up to the plate, with Amazon.com AMZN.O wrapping up the FAANGs on Thursday. By Stephen Culp NEW YORK, Oct 24 (Reuters) - U.S. stocks advanced on Monday, extending last week's gains as signs of economic softness suggested the effects of the Fed's aggressive policy aimed at cooling the economy, thereby curbing decades-high inflation, are beginning to take root. A report from S&P Global showed a contraction in business activity this month, offering a hint that the Federal Reserve's barrage of steep interest rate hikes are having their desired effect, raising hopes that the central bank could begin slowing the pace of increases to the Fed funds target rate.
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On Wednesday, Apple Inc AAPL.O and Meta Platforms Inc META.O step up to the plate, with Amazon.com AMZN.O wrapping up the FAANGs on Thursday. So far, nearly one-fifth of the companies in the S&P 500 have reported. Of those, 74.7% have delivered consensus-beating results, according to Refinitiv data.
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18773.0
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2022-10-24 00:00:00 UTC
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After Hours Most Active for Oct 24, 2022 : PFE, PM, IXUS, QQQ, AIV, CSCO, ESTC, SNAP, BSX, AAPL, INTC, AMZN
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-oct-24-2022-%3A-pfe-pm-ixus-qqq-aiv-csco-estc-snap-bsx-aapl-intc
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The NASDAQ 100 After Hours Indicator is down -24.66 to 11,405.6. The total After hours volume is currently 73,794,432 shares traded.
The following are the most active stocks for the after hours session:
Pfizer, Inc. (PFE) is -0.0799 at $45.46, with 6,210,069 shares traded. As reported by Zacks, the current mean recommendation for PFE is in the "buy range".
Philip Morris International Inc (PM) is +0.8441 at $88.03, with 4,205,464 shares traded. As reported by Zacks, the current mean recommendation for PM is in the "buy range".
iShares Core MSCI Total International Stock ETF (IXUS) is +0.03 at $51.87, with 3,474,018 shares traded. This represents a 4.96% increase from its 52 Week Low.
Invesco QQQ Trust, Series 1 (QQQ) is -0.11 at $278.34, with 2,110,193 shares traded. This represents a 9.47% increase from its 52 Week Low.
Apartment Investment and Management Company (AIV) is +0.04 at $7.60, with 2,056,598 shares traded.
Cisco Systems, Inc. (CSCO) is +0.01 at $43.55, with 1,898,353 shares traded. CSCO's current last sale is 83.75% of the target price of $52.
Elastic N.V. (ESTC) is unchanged at $63.58, with 1,856,645 shares traded. As reported by Zacks, the current mean recommendation for ESTC is in the "buy range".
Snap Inc. (SNAP) is -0.09 at $8.22, with 1,835,770 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 $-0.06. SNAP's current last sale is 63.23% of the target price of $13.
Boston Scientific Corporation (BSX) is unchanged at $40.98, with 1,797,359 shares traded.BSX is scheduled to provide an earnings report on 10/26/2022, for the fiscal quarter ending Sep2022. The consensus earnings per share forecast is 0.44 per share, which represents a 41 percent increase over the EPS one Year Ago
Apple Inc. (AAPL) is -0.02 at $149.43, with 1,787,770 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. AAPL is scheduled to provide an earnings report on 10/27/2022, for the fiscal quarter ending Sep2022. The consensus earnings per share forecast is 1.26 per share, which represents a 124 percent increase over the EPS one Year Ago
Intel Corporation (INTC) is +0.02 at $27.20, with 1,517,750 shares traded.INTC is scheduled to provide an earnings report on 10/27/2022, for the fiscal quarter ending Sep2022. The consensus earnings per share forecast is 0.34 per share, which represents a 171 percent increase over the EPS one Year Ago
Amazon.com, Inc. (AMZN) is -1.08 at $118.74, with 1,431,305 shares traded.AMZN is scheduled to provide an earnings report on 10/27/2022, for the fiscal quarter ending Sep2022. The consensus earnings per share forecast is 0.23 per share, which represents a 31 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 -0.02 at $149.43, with 1,787,770 shares traded. AAPL is scheduled to provide an earnings report on 10/27/2022, for the fiscal quarter ending Sep2022. iShares Core MSCI Total International Stock ETF (IXUS) is +0.03 at $51.87, with 3,474,018 shares traded.
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Apple Inc. (AAPL) is -0.02 at $149.43, with 1,787,770 shares traded. AAPL is scheduled to provide an earnings report on 10/27/2022, for the fiscal quarter ending Sep2022. The consensus earnings per share forecast is 0.44 per share, which represents a 41 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.02 at $149.43, with 1,787,770 shares traded. AAPL is scheduled to provide an earnings report on 10/27/2022, for the fiscal quarter ending Sep2022. The consensus earnings per share forecast is 0.44 per share, which represents a 41 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.02 at $149.43, with 1,787,770 shares traded. AAPL is scheduled to provide an earnings report on 10/27/2022, for the fiscal quarter ending Sep2022. As reported by Zacks, the current mean recommendation for PFE is in the "buy range".
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18774.0
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2022-10-24 00:00:00 UTC
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Stocks Extend Rally Ahead of Big Tech Earnings
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AAPL
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https://www.nasdaq.com/articles/stocks-extend-rally-ahead-of-big-tech-earnings
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nan
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nan
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Stocks kicked off the last week of October with sizable gains. The Dow added over 400 points and settled at its highest level since Sept. 12. The S&P 500 and Nasdaq finished comfortably higher as well, the latter brushing off a rise in Treasury yields, despite disappointing manufacturing and services data.
Investors are closely monitoring the earnings confessional, with Big Tech behemoths such as Apple (AAPL), Amazon.com (AMZN), and Microsoft (MSFT) on the docket later this week.
Continue reading for more on today's market, including:
This semiconductor stock may benefit from an EV boom.
How United Parcel Service stock fared before earnings.
Plus, two chip stocks to watch, and a warning for Williams-Sonoma stock.
The Dow Jones Average (DJI - 31,499.62) added 417.1 points, or 1.3% for the day. Amgen (AMGN) led the gainers, adding 3.7%, while Nike (NKE) paced the laggards with a 0.6% loss.
The S&P 500 Index (SPX - 3,797.34) rose 44.6 points, or 1.2% for the day. Meanwhile, the Nasdaq Composite (IXIC - 10,952.61) gained 92.9 points, or 0.9% for the session.
Lastly, the Cboe Volatility Index (VIX - 29.85) rose 0.2 point, or 0.5% for the session.
5 Things to Know Today
Two Chinese intelligence officers have been criminally charged with attempting to obstruct the prosecution of Huawei, per Attorney General Merrick Garland. (CNBC)
Apple (AAPL) is joining streaming giant Netflix (NFLX) in hiking subscription prices, with both Apple TV+ and Apple Music seeing increases. (MarketWatch)
Qualcomm stock is one to own in a post-smartphone world.
Advanced Micro Devices stock has been popular with options traders.
Analyst: Deteriorating demand will weigh on Williams-Sonoma stock.
There were no notable earnings reports today.
Oil Prices Slip on Chinese Import Data
Oil prices settled lower on Monday, as investors worried about energy demand on the heels of China's import data release, and conclusion of the country's Communist party’s national congress. November-dated crude fell 47 cents, or 0.6%, to finish at $84.58 per barrel.
Gold prices edged lower as well, though cooler yields capped the yellow metal's losses. Traders are now looking ahead a gross domestic product (GDP) update for the U.S., as well as the personal consumption expenditures (PCE) index. December-dated gold dropped $2.20, or 0.1%, to close at $1,654.10 an ounce.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors are closely monitoring the earnings confessional, with Big Tech behemoths such as Apple (AAPL), Amazon.com (AMZN), and Microsoft (MSFT) on the docket later this week. (CNBC) Apple (AAPL) is joining streaming giant Netflix (NFLX) in hiking subscription prices, with both Apple TV+ and Apple Music seeing increases. 5 Things to Know Today Two Chinese intelligence officers have been criminally charged with attempting to obstruct the prosecution of Huawei, per Attorney General Merrick Garland.
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Investors are closely monitoring the earnings confessional, with Big Tech behemoths such as Apple (AAPL), Amazon.com (AMZN), and Microsoft (MSFT) on the docket later this week. (CNBC) Apple (AAPL) is joining streaming giant Netflix (NFLX) in hiking subscription prices, with both Apple TV+ and Apple Music seeing increases. The Dow added over 400 points and settled at its highest level since Sept. 12.
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(CNBC) Apple (AAPL) is joining streaming giant Netflix (NFLX) in hiking subscription prices, with both Apple TV+ and Apple Music seeing increases. Investors are closely monitoring the earnings confessional, with Big Tech behemoths such as Apple (AAPL), Amazon.com (AMZN), and Microsoft (MSFT) on the docket later this week. Plus, two chip stocks to watch, and a warning for Williams-Sonoma stock.
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Investors are closely monitoring the earnings confessional, with Big Tech behemoths such as Apple (AAPL), Amazon.com (AMZN), and Microsoft (MSFT) on the docket later this week. (CNBC) Apple (AAPL) is joining streaming giant Netflix (NFLX) in hiking subscription prices, with both Apple TV+ and Apple Music seeing increases. How United Parcel Service stock fared before earnings.
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18775.0
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2022-10-24 00:00:00 UTC
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US STOCKS-Wall St closes up on hopes of abating Fed
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-closes-up-on-hopes-of-abating-fed
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nan
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nan
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By Stephen Culp
NEW YORK, Oct 24 (Reuters) - U.S. stocks closed higher on Monday, extending last week's advances as signs of economic softness suggested the effects of the Fed's aggressive policy aimed at cooling the economy, thereby curbing decades-high inflation, are beginning to take root.
A report from S&P Global showed a contraction in business activity this month, offering a hint that the Federal Reserve's barrage of steep interest rate hikes are having their desired effect, raising hopes that the central bank could begin slowing the pace of increases to the Fed funds target rate.
According to preliminary data, the S&P 500 .SPX gained 45.94 points, or 1.22%, to end at 3,798.69 points, while the Nasdaq Composite .IXIC gained 94.83 points, or 0.87%, to 10,954.55. The Dow Jones Industrial Average .DJI rose 421.31 points, or 1.36%, to 31,503.87.
Among the 11 major sectors in the S&P 500, healthcare .SPXHC was enjoying the largest percentage gain.
Tesla Inc TSLA.O shares slid after the electric automaker cut prices for its Model 3 and Model Y cars by as much as 9% in China, signaling softening demand in the world's largest auto market.
U.S.-listed shares of Chinese companies such as Pinduoduo PDD.O, JD.com JD.O and Baidu Inc BIDU.O plunged as President Xi Jinping introduced the new Politburo Standing Committee stacked with loyalists.
Third quarter earnings season shifts into overdrive this week. So far, nearly one-fifth of the companies in the S&P 500 have reported. Of those, 74.7% have delivered consensus-beating results, according to Refinitiv data.
Analysts expect S&P 500 earnings growth of 3.0%, on aggregate, down from 4.5% at the beginning of the month, per Refinitiv.
Results from a slew of heavy-hitting tech and tech-adjacent companies are likely to dominate the earnings chatter this week.
Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O following on Tuesday. On Wednesday, Apple Inc AAPL.O and Meta Platforms Inc META.O step up to the plate, with Amazon.com AMZN.O wrapping up the FAANGs on Thursday.
High-rolling industrials are also expected to post earnings this week, including United Parcel Service UPS.N, Boeing Co BA.N, Ford Motor Co F.N, 3M Co MMM.N, General Motors Co GM.N, Chevron CVX.N and Exxon Mobil XOM.N.
Twitter Inc TWTR.K results are expected shortly.
(Reporting by Stephen Culp; Additional reporting by Bansari Mayur Kamdar and Amruta Khandekar in Bengaluru; editing by Grant McCool)
((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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On Wednesday, Apple Inc AAPL.O and Meta Platforms Inc META.O step up to the plate, with Amazon.com AMZN.O wrapping up the FAANGs on Thursday. By Stephen Culp NEW YORK, Oct 24 (Reuters) - U.S. stocks closed higher on Monday, extending last week's advances as signs of economic softness suggested the effects of the Fed's aggressive policy aimed at cooling the economy, thereby curbing decades-high inflation, are beginning to take root. A report from S&P Global showed a contraction in business activity this month, offering a hint that the Federal Reserve's barrage of steep interest rate hikes are having their desired effect, raising hopes that the central bank could begin slowing the pace of increases to the Fed funds target rate.
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On Wednesday, Apple Inc AAPL.O and Meta Platforms Inc META.O step up to the plate, with Amazon.com AMZN.O wrapping up the FAANGs on Thursday. By Stephen Culp NEW YORK, Oct 24 (Reuters) - U.S. stocks closed higher on Monday, extending last week's advances as signs of economic softness suggested the effects of the Fed's aggressive policy aimed at cooling the economy, thereby curbing decades-high inflation, are beginning to take root. According to preliminary data, the S&P 500 .SPX gained 45.94 points, or 1.22%, to end at 3,798.69 points, while the Nasdaq Composite .IXIC gained 94.83 points, or 0.87%, to 10,954.55.
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On Wednesday, Apple Inc AAPL.O and Meta Platforms Inc META.O step up to the plate, with Amazon.com AMZN.O wrapping up the FAANGs on Thursday. A report from S&P Global showed a contraction in business activity this month, offering a hint that the Federal Reserve's barrage of steep interest rate hikes are having their desired effect, raising hopes that the central bank could begin slowing the pace of increases to the Fed funds target rate. According to preliminary data, the S&P 500 .SPX gained 45.94 points, or 1.22%, to end at 3,798.69 points, while the Nasdaq Composite .IXIC gained 94.83 points, or 0.87%, to 10,954.55.
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On Wednesday, Apple Inc AAPL.O and Meta Platforms Inc META.O step up to the plate, with Amazon.com AMZN.O wrapping up the FAANGs on Thursday. According to preliminary data, the S&P 500 .SPX gained 45.94 points, or 1.22%, to end at 3,798.69 points, while the Nasdaq Composite .IXIC gained 94.83 points, or 0.87%, to 10,954.55. So far, nearly one-fifth of the companies in the S&P 500 have reported.
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18776.0
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2022-10-24 00:00:00 UTC
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US STOCKS-Wall St rises as data hints at Fed policy progress
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-rises-as-data-hints-at-fed-policy-progress
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nan
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nan
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By Stephen Culp
NEW YORK, Oct 24 (Reuters) - Wall Street advanced on Monday, building on last week's gains as signs of economic weakness suggested the effects of the Fed's aggressive policy aimed at cooling the economy, thereby curbing decades-high inflation, are beginning to be felt.
All three major U.S. stock indexes were higher at the top of a week jam-packed with high profile corporate earnings and crucial economic data.
A report from S&P Global showed a contraction in business activity this month, offering a hint that the Federal Reserve's barrage of steep interest rate hikes are having their desired effect, raising hopes that the central bank could begin slowing the pace of increases to the Fed funds target rate.
"We’re getting some follow-through from what we saw last week, this idea that while the Fed might not be pivoting, perhaps the cadence could be slowing in terms of rate hikes," said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana. "There seems to be some idea that the rate environment is not going to be as aggressive as we move into next year.
"That idea seems to be causing investors to put money back into the market," Carlson added.
The Dow Jones Industrial Average .DJI rose 374.23 points, or 1.2%, to 31,456.79, the S&P 500 .SPX gained 34.73 points, or 0.93%, to 3,787.48 and the Nasdaq Composite .IXIC added 40.21 points, or 0.37%, to 10,899.92.
Tesla Inc TSLA.O dropped 3.4% after the electric automaker cut prices for its Model 3 and Model Y cars by as much as 9% in China, signaling softening demand in the world's largest auto market.
U.S.-listed shares of Chinese companies such as Pinduoduo PDD.O, JD.com JD.O and Baidu Inc BIDU.O slid between 14% and 26% as President Xi Jinping introduced the new Politburo Standing Committee stacked with loyalists.
Third quarter earnings season shifts into overdrive this week. So far, nearly one-fifth of the companies in the S&P 500 have reported. Of those, 74.7% have delivered consensus-beating results, according to Refinitiv data.
Analysts expect S&P 500 earnings growth of 3.0%, on aggregate, down from 4.5% at the beginning of the month, per Refinitiv.
Results from a slew of heavy-hitting tech and tech-adjacent companies are likely to dominate the earnings chatter this week.
Twitter Inc TWTR.K kicks things off on Monday, with Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O following on Tuesday. On Wednesday, Apple Inc AAPL.O and Meta Platforms Inc META.O step up to the plate, with Amazon.com AMZN.O wrapping up the FAANGs on Thursday.
High-rolling industrials are also expected to post earnings this week, including United Parcel Service UPS.N, Boeing Co BA.N, Ford Motor Co F.N, 3M Co MMM.N, General Motors Co GM.N, Chevron CVX.N and Exxon Mobil XOM.N.
Advancing issues outnumbered declining ones on the NYSE by a 1.20-to-1 ratio; on Nasdaq, a 1.13-to-1 ratio favored decliners.
The S&P 500 posted 21 new 52-week highs and 4 new lows; the Nasdaq Composite recorded 58 new highs and 297 new lows.
(Reporting by Stephen Culp; Additional reporting by Bansari Mayur Kamdar and Amruta Khandekar in Bengaluru; editing by Grant McCool)
((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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On Wednesday, Apple Inc AAPL.O and Meta Platforms Inc META.O step up to the plate, with Amazon.com AMZN.O wrapping up the FAANGs on Thursday. By Stephen Culp NEW YORK, Oct 24 (Reuters) - Wall Street advanced on Monday, building on last week's gains as signs of economic weakness suggested the effects of the Fed's aggressive policy aimed at cooling the economy, thereby curbing decades-high inflation, are beginning to be felt. "We’re getting some follow-through from what we saw last week, this idea that while the Fed might not be pivoting, perhaps the cadence could be slowing in terms of rate hikes," said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana.
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On Wednesday, Apple Inc AAPL.O and Meta Platforms Inc META.O step up to the plate, with Amazon.com AMZN.O wrapping up the FAANGs on Thursday. By Stephen Culp NEW YORK, Oct 24 (Reuters) - Wall Street advanced on Monday, building on last week's gains as signs of economic weakness suggested the effects of the Fed's aggressive policy aimed at cooling the economy, thereby curbing decades-high inflation, are beginning to be felt. The Dow Jones Industrial Average .DJI rose 374.23 points, or 1.2%, to 31,456.79, the S&P 500 .SPX gained 34.73 points, or 0.93%, to 3,787.48 and the Nasdaq Composite .IXIC added 40.21 points, or 0.37%, to 10,899.92.
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On Wednesday, Apple Inc AAPL.O and Meta Platforms Inc META.O step up to the plate, with Amazon.com AMZN.O wrapping up the FAANGs on Thursday. By Stephen Culp NEW YORK, Oct 24 (Reuters) - Wall Street advanced on Monday, building on last week's gains as signs of economic weakness suggested the effects of the Fed's aggressive policy aimed at cooling the economy, thereby curbing decades-high inflation, are beginning to be felt. A report from S&P Global showed a contraction in business activity this month, offering a hint that the Federal Reserve's barrage of steep interest rate hikes are having their desired effect, raising hopes that the central bank could begin slowing the pace of increases to the Fed funds target rate.
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On Wednesday, Apple Inc AAPL.O and Meta Platforms Inc META.O step up to the plate, with Amazon.com AMZN.O wrapping up the FAANGs on Thursday. "We’re getting some follow-through from what we saw last week, this idea that while the Fed might not be pivoting, perhaps the cadence could be slowing in terms of rate hikes," said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana. So far, nearly one-fifth of the companies in the S&P 500 have reported.
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18777.0
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2022-10-24 00:00:00 UTC
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Microsoft powers up search for Chinese gaming hits in race against Sony
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AAPL
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https://www.nasdaq.com/articles/microsoft-powers-up-search-for-chinese-gaming-hits-in-race-against-sony
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nan
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nan
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By Josh Ye
HONG KONG, Oct 25 (Reuters) - Microsoft Corp MSFT.O is stocking up on Chinese video game content to emulate Sony Group Corp's 6758.T success with "Genshin Impact", sources said, solidifying China's transition from a land only of players to a hub of blockbuster developers.
The U.S. software giant and Japan's vanguard of technology have for some years been offering big money to small developers to nurture programmes and licence titles, but the impact of "Genshin Impact" has added a sense of urgency, sources said.
The action role-playing game from budding Shanghai studio miHoYo has generated billions of dollars since its release two years ago, and raised the bar in multi-player, cross-platform games - the type sources said Microsoft and Sony seek in China for their Game Pass and PlayStation Plus subscription services.
Growing Western interest in Chinese games reflects a maturing of China's game development industry, analysts said. Chinese games are now on a par with big-budget Western games, said Daniel Ahmad, senior analyst at researcher Niko Partners.
"Chinese game developers are trying to standardise their development tools, create advanced production processes, invest in really large-scale teams," Ahmad said. "Ultimately, that helps provide them with the competitive edge to reach a broad audience both in terms of geography and platforms."
Microsoft has been building a team to scout for Chinese games, two industry sources said. The Xbox maker mainly filled its subscription roster with big-brand titles but is now wooing even independent studios with big-money offers, they said.
At the same time, filings showed Microsoft is expanding its subscription service to personal computers and handheld devices, increasing the appeal of Chinese developers such as miHoYo which have developed a reputation for multi-player, cross-platform compatibility - with "Genshin Impact" being a prime example.
One executive, whose studio signed a licensing deal with Microsoft three years ago to feature its game on Game Pass, said the U.S. firm recently offered a licensing deal many times bigger for a sequel.
"We are not signing it yet because we think that when we fully complete our game, it will get an even better offer," the executive said.
Illustrating the money involved, filings showed Microsoft paid $2.5 million to feature action game "ARK: Survival Evolved" on Game Pass and $2.3 million for sequel ARK 2 - both from U.S. developer Studio Wildcard, owned by China's Snail Games.
An executive at another developer, Recreate Games in Shanghai, said his company signed a deal with Microsoft last year for its upcoming multi-player title "Party Animals" to launch exclusively on Xbox.
"Xbox contacted many projects in China and these projects primarily focus on developing console and PC games," said Chief Executive Luo Zixiong.
Microsoft did not respond to emailed requests for comment.
PLAYING CATCH-UP
Microsoft was slower off the mark in China compared with Sony. The Japanese firm launched gaming accelerator programme "China Hero Project" in 2017 aimed at helping Chinese developers publish games on its PlayStation. It has supported 17 titles of which seven have reached the market.
"We've been quiet for the past two years. But the programme is still very much humming along," Kuangyi Zhou, former manager of the China Hero Project, told Reuters in April. "We are proud of all the games which have successfully emerged from the programme... There is no doubt that a new batch will be coming."
In 2019, Sony partnered miHoYo, a little-known studio which was developing "Genshin Impact". The game - a global hit when it was released a year later - is available for personal computers and handheld devices, but the console version is exclusively on PlayStation.
Microsoft regretted missing out on "Genshin Impact", two people familiar with the matter said. It spoke to miHoYo early in the game's development but did not reach a deal, one of them said. The other person said the experience is the driving force behind Microsoft's more active pursuit of Chinese developers.
"Picking up 'Genshin Impact' made Sony a lot of money," the second person said, declining to be identified because the information was not public.
There is no public data on console revenue from "Genshin Impact", but data from Sensor Tower put the figure at $3 billion for mobile devices as of May.
MARKET EVOLUTION
For much of the 21st century, Chinese gamers mostly played imported titles as home-grown games were viewed as being poorer in production value. Even Chinese gaming leader Tencent Holdings Ltd 0700.HK started out publishing foreign games at home.
As the market grew into the world's largest, local studios increasingly invested in developing better-quality games. The trend accelerated with regulatory restrictions on new games and limits on the number of imports, and benefited from the return of engineers who had worked at top-tier studios such as Ubisoft Entertainment SA UBIP.PA and Activision Blizzard Inc ATVI.O.
Gaming executives now point to "Genshin Impact" as a global industry milestone, lauding its production value and seamless cross-platform game play. Apple Inc AAPL.O even used the game to demonstrate the power of its premium devices including the new iPad Air equipped with its latest M1 processor chip.
Another milestone was 2021's "Naraka: Bladepoint" from NetEase Inc 9999.HK, China's second-largest games firm. While most Chinese titles are free to play and profit from in-game sales, "Naraka: Bladepoint" sold over 10 million copies despite its $20 price, reflecting confidence in its production value.
The game caught the attention of both Microsoft and Sony, two sources told Reuters. One of them said NetEase prioritised Microsoft which made the game a Game Pass exclusive in June.
(Reporting by Josh Ye; Editing by Christopher Cushing)
((Josh.Ye@thomsonreuters.com.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O even used the game to demonstrate the power of its premium devices including the new iPad Air equipped with its latest M1 processor chip. An executive at another developer, Recreate Games in Shanghai, said his company signed a deal with Microsoft last year for its upcoming multi-player title "Party Animals" to launch exclusively on Xbox. The trend accelerated with regulatory restrictions on new games and limits on the number of imports, and benefited from the return of engineers who had worked at top-tier studios such as Ubisoft Entertainment SA UBIP.PA and Activision Blizzard Inc ATVI.O.
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Apple Inc AAPL.O even used the game to demonstrate the power of its premium devices including the new iPad Air equipped with its latest M1 processor chip. At the same time, filings showed Microsoft is expanding its subscription service to personal computers and handheld devices, increasing the appeal of Chinese developers such as miHoYo which have developed a reputation for multi-player, cross-platform compatibility - with "Genshin Impact" being a prime example. Illustrating the money involved, filings showed Microsoft paid $2.5 million to feature action game "ARK: Survival Evolved" on Game Pass and $2.3 million for sequel ARK 2 - both from U.S. developer Studio Wildcard, owned by China's Snail Games.
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Apple Inc AAPL.O even used the game to demonstrate the power of its premium devices including the new iPad Air equipped with its latest M1 processor chip. The action role-playing game from budding Shanghai studio miHoYo has generated billions of dollars since its release two years ago, and raised the bar in multi-player, cross-platform games - the type sources said Microsoft and Sony seek in China for their Game Pass and PlayStation Plus subscription services. Illustrating the money involved, filings showed Microsoft paid $2.5 million to feature action game "ARK: Survival Evolved" on Game Pass and $2.3 million for sequel ARK 2 - both from U.S. developer Studio Wildcard, owned by China's Snail Games.
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Apple Inc AAPL.O even used the game to demonstrate the power of its premium devices including the new iPad Air equipped with its latest M1 processor chip. The Japanese firm launched gaming accelerator programme "China Hero Project" in 2017 aimed at helping Chinese developers publish games on its PlayStation. In 2019, Sony partnered miHoYo, a little-known studio which was developing "Genshin Impact".
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18778.0
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2022-10-24 00:00:00 UTC
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US STOCKS-Wall Street mixed after weak business data; Tesla drags Nasdaq
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-mixed-after-weak-business-data-tesla-drags-nasdaq
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nan
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nan
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By Amruta Khandekar and Devik Jain
Oct 24 (Reuters) - U.S. stock indexes were mixed in morning trading on Monday, with the tech-heavy Nasdaq hit by a slide in Tesla and other megacap stocks while signs of a cooling U.S. economy raised hopes that the Federal Reserve will eventually slow its pace of rate hikes.
Tesla Inc TSLA.O dropped nearly 7% after it cut starter prices for its Model 3 and Model Y cars by as much as 9% in China, indicating signs of softening demand in the world's largest auto market.
Other megacap shares, including those of Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O, also dropped ahead of their earnings later this week.
U.S. business activity contracted for a fourth straight month in October, a survey showed, in the latest evidence of an economy softening in the face of high inflation and rising interest rates.
Wall Street's main indexes rallied on Friday after a report said the U.S. central bank will likely debate on a smaller interest rate hike in December.
"We think that the Fed meeting (in November) could be a positive inflection because it will indicate at least some members are re-thinking their ultra-hawkish stance," said Jay Hatfield, chief executive officer, Infrastructure Capital Management.
U.S. Treasury yields slipped after the report, coming off a 15-year high of 4.34% hit on Friday.
The benchmark S&P 500 .SPX is up about 5% from its Oct. 12 closing low for the year. Despite the recent rebound, the index is down 21% so far in 2022, on track for its biggest decline since 2008.
The indexes notched their biggest weekly percentage gains in four months on Friday, also supported by better-than-expected earnings reports.
Apart from Google-parent Alphabet and Amazon.com, Microsoft Corp MSFT.O and Apple Inc AAPL.O too report later this week.
The earnings reports from the four biggest U.S. companies by market capitalization could test a nascent rally on Wall Street as stocks claw their way back from the latest lows.
"I think the bar for success for mega cap companies is relatively low. Therefore, the reaction function to the actual earnings will likely be positive," said Art Hogan, chief market strategist at B. Riley Wealth in New York.
"The reporting season really gives investors the opportunity to shift their focus on the actual earnings power of corporate America, and I think that's why we're popping a little bit."
Of the 99 companies in the S&P 500 that reported third-quarter earnings through Friday, 74.7% had beat analysts' expectations, according to Refinitiv IBES estimates. The long-term average is 66.2%.
At 10:28 a.m. ET, the Dow Jones Industrial Average .DJI was up 141.93 points, or 0.46%, at 31,224.49, the S&P 500 .SPX was down 3.47 points, or 0.09%, at 3,749.28, and the Nasdaq Composite .IXIC was down 129.16 points, or 1.19%, at 10,730.56.
U.S.-listed shares of Chinese companies such as Pinduoduo PDD.O, JD.com JD.O and Baidu Inc BIDU.O fell between 18% and 30% as President Xi Jinping's new leadership team heightened fears that growth will be sacrificed for ideology-driven policies.
Declining issues outnumbered advancers for a 1.46-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.99-to-1 ratio on the Nasdaq.
The S&P index recorded 20 new 52-week highs and 4 new lows, while the Nasdaq recorded 42 new highs and 204 new lows.
(Reporting by Bansari Mayur Kamdar and Amruta Khandekar in Bengaluru; Editing by Sriraj Kalluvila)
((BansariMayur.Kamdar@thomsonreuters.com; Twitter: @BansariKamdar))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apart from Google-parent Alphabet and Amazon.com, Microsoft Corp MSFT.O and Apple Inc AAPL.O too report later this week. U.S. business activity contracted for a fourth straight month in October, a survey showed, in the latest evidence of an economy softening in the face of high inflation and rising interest rates. "We think that the Fed meeting (in November) could be a positive inflection because it will indicate at least some members are re-thinking their ultra-hawkish stance," said Jay Hatfield, chief executive officer, Infrastructure Capital Management.
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Apart from Google-parent Alphabet and Amazon.com, Microsoft Corp MSFT.O and Apple Inc AAPL.O too report later this week. Wall Street's main indexes rallied on Friday after a report said the U.S. central bank will likely debate on a smaller interest rate hike in December. The earnings reports from the four biggest U.S. companies by market capitalization could test a nascent rally on Wall Street as stocks claw their way back from the latest lows.
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Apart from Google-parent Alphabet and Amazon.com, Microsoft Corp MSFT.O and Apple Inc AAPL.O too report later this week. By Amruta Khandekar and Devik Jain Oct 24 (Reuters) - U.S. stock indexes were mixed in morning trading on Monday, with the tech-heavy Nasdaq hit by a slide in Tesla and other megacap stocks while signs of a cooling U.S. economy raised hopes that the Federal Reserve will eventually slow its pace of rate hikes. The earnings reports from the four biggest U.S. companies by market capitalization could test a nascent rally on Wall Street as stocks claw their way back from the latest lows.
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Apart from Google-parent Alphabet and Amazon.com, Microsoft Corp MSFT.O and Apple Inc AAPL.O too report later this week. The indexes notched their biggest weekly percentage gains in four months on Friday, also supported by better-than-expected earnings reports. The earnings reports from the four biggest U.S. companies by market capitalization could test a nascent rally on Wall Street as stocks claw their way back from the latest lows.
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18779.0
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2022-10-24 00:00:00 UTC
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Is iShares MSCI ACWI Low Carbon Target ETF (CRBN) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-ishares-msci-acwi-low-carbon-target-etf-crbn-a-strong-etf-right-now-4
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nan
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nan
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The iShares MSCI ACWI Low Carbon Target ETF (CRBN) made its debut on 12/08/2014, and is a smart beta exchange traded fund that provides broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
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
Because the fund has amassed over $790.44 million, this makes it one of the larger ETFs in the World ETFs. CRBN is managed by Blackrock. CRBN seeks to match the performance of the MSCI ACWI Low Carbon Target Index before fees and expenses.
The MSCI ACWI Low Carbon Target Index is designed to address two dimensions of carbon exposure ? carbon emissions and potential carbon emissions from fossil fuel reserves.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.20% for this ETF, which makes it one of the least expensive products in the space.
It's 12-month trailing dividend yield comes in at 2.31%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.60% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
Performance and Risk
Year-to-date, the iShares MSCI ACWI Low Carbon Target ETF has lost about -23.74% so far, and is down about -21.83% over the last 12 months (as of 10/24/2022). CRBN has traded between $126.30 and $176.38 in this past 52-week period.
The ETF has a beta of 0.94 and standard deviation of 22.93% for the trailing three-year period, making it a low risk choice in the space. With about 1298 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares MSCI ACWI Low Carbon Target ETF is a reasonable option for investors seeking to outperform the World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares ESG Aware MSCI EAFE ETF (ESGD) tracks MSCI EAFE ESG Focus Index and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. IShares ESG Aware MSCI EAFE ETF has $5.97 billion in assets, iShares ESG Aware MSCI USA ETF has $21.01 billion. ESGD has an expense ratio of 0.20% and ESGU charges 0.15%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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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iShares MSCI ACWI Low Carbon Target ETF (CRBN): 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
iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports
iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.60% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
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When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.60% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report IShares ESG Aware MSCI EAFE ETF (ESGD) tracks MSCI EAFE ESG Focus Index and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index.
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When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.60% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report The iShares MSCI ACWI Low Carbon Target ETF (CRBN) made its debut on 12/08/2014, and is a smart beta exchange traded fund that provides broad exposure to the World ETFs category of the market.
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When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.60% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report The iShares MSCI ACWI Low Carbon Target ETF (CRBN) made its debut on 12/08/2014, and is a smart beta exchange traded fund that provides broad exposure to the World ETFs category of the market.
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18780.0
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2022-10-24 00:00:00 UTC
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Apple (AAPL) to Report Q4 Earnings: What's in the Offing?
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-to-report-q4-earnings%3A-whats-in-the-offing
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nan
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nan
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Apple AAPL is set to report fourth-quarter fiscal 2022 results on Oct 27.
Apple expects year-over-year revenue growth to accelerate in the fiscal fourth quarter compared with the third quarter (the June-end quarter) despite approximately 600 basis points of unfavorable year-over-year impact from forex.
The Zacks Consensus Estimate for revenues is currently pegged at $88.47 billion, indicating growth of 6.13% from the year-ago quarter’s reported figure.
The consensus mark for earnings is currently pegged at $1.26 per share, up by a penny over the past 30 days and indicating a 1.61% increase from the figure reported in the year-ago quarter.
Apple’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and came in line with the remaining one, the earnings surprise being 5.67%, on average.
Apple Inc. Price and EPS Surprise
Apple Inc. price-eps-surprise | Apple Inc. Quote
Let’s see how things have shaped up for the upcoming announcement.
Steady iPhone 13 Demand to Drive Y/Y Sales Growth
Apple’s fortunes are heavily reliant on iPhone, which is by far its biggest revenue contributor. The device accounted for 49% of net sales in the last reported quarter, wherein sales increased 2.8% year over year to $40.67 billion. Our iPhone sales estimate stands at $45.30 billion.
Apple is expected to have benefited from steady demand for the 5G-enabled iPhone 13, despite silicon shortages. The company anticipates supply constraints to be lower in the fiscal fourth quarter than that in the third quarter.
Per the latest Canalys report on worldwide smartphone shipments, Apple expanded its market share to 18% in third-quarter 2022, trailing Samsung’s 22%.
The Zacks Consensus Estimate for iPhone sales currently stands at $42.76 billion, indicating 10% growth from the year-ago quarter’s reported figure.
Services Growth to Slow Down in Q4
Apple expects Services revenue growth to be lower than the June-end quarter due to challenging macroeconomic conditions and unfavorable forex. In the fiscal third quarter, Services revenues grew 12.1% from the year-ago quarter to $19.60 billion and accounted for 23.6% of sales.
Nevertheless, an expanding paid subscriber base has been a key catalyst for the Services business, which is riding on the increasing popularity of the App Store.
Apple currently has more than 860 million paid subscribers across its Services portfolio. App Store continues to grab the attention of prominent developers from around the world, helping the company to offer exciting new apps that drive traffic.
Services like Apple TV+, Apple Arcade, Apple News+, Apple Card, Apple Fitness+ and Apple One bundle are expected to have contributed to overall growth.
Apple TV+ has been gaining recognition due to award-winning shows despite strong competition from Netflix NFLX, as well as services from Disney DIS and Amazon AMZN.
Per a report by JustWatch, cited by 9TO5Mac, Netflix remains the leader with 27.3% market share, followed by Amazon prime video and Disney+, with 24.3% and 18.2% market share, respectively.
Meanwhile, Apple TV+ has surpassed 6%global marketshare, up from 5.6% reported in March. It is now chasing HBO Max, which has a market share of 7% (unchanged from March).
Apple has been keeping no stone unturned to make TV+ service a success. At a much affordable price of $4.99, Apple TV+ has been benefiting from quality content with its strong portfolio of original shows and movies.
Our estimate for fiscal fourth-quarter Services net sales is pegged at $19.14 billion. The consensus mark for the same is currently pegged at 19.73 billion.
Wearables’ Growth to Remain Strong
Apple has been dominating the wearables market, thanks to the strong adoption of the Apple Watch.
This Zacks Rank #3 (Hold) company’s Fitness+ subscription service, built on Apple Watch, has been a game changer. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, Fitness+ tracks health- and workout-related data from Apple Watch that users can view on their iPhones, iPads or Apple TVs.
The addition of healthcare features has been another game changer for Apple Watch. The Series 7 model offers a Blood Oxygen app, ECG app, high and low heart rate notifications, irregular heart rhythm notifications, and fall detection.
Apple Watch’s adoption rate has been growing rapidly. More than two-thirds of customers, who purchased it in third-quarter fiscal 2022, were first-time customers.
The Zacks Consensus Estimate for Wearables, Home and Accessories revenues is pegged at $9.24 billion for fourth-quarter fiscal 2022, indicating growth of 5.2% from the figure reported in the year-ago quarter. Our estimate for Wearables, Home and Accessories revenues stands at $7.96 billion.
Key Quarterly Highlights
In the to-be-reported quarter, Apple unveiled four iPhone models — iPhone 14, iPhone 14 Plus, iPhone 14 Pro and iPhone 14 Pro Max — at its product launch event.
Apple also launched the next-gen Airpods Pro, the Apple Watch Series 8, the new Apple Watch SE, Apple Watch Ultra and updates to Fitness+ at the event.
On Sep 13, Apple announced that the Apple TV+ show, Ted Lasso, won an Emmy for Outstanding Comedy Series. Jason Sudeikis also won an Emmy for Lead Actor.
At this year’s Emmy, Netflix won 26 awards but trailed HBO Max, which won 38. Apple TV+ won seven awards, whereas Disney+ and Amazon Prime Video won six each.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Netflix, Inc. (NFLX): Free Stock Analysis Report
The Walt Disney Company (DIS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL is set to report fourth-quarter fiscal 2022 results on Oct 27. Apple Inc. (AAPL): Free Stock Analysis Report The consensus mark for earnings is currently pegged at $1.26 per share, up by a penny over the past 30 days and indicating a 1.61% increase from the figure reported in the year-ago quarter.
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Apple AAPL is set to report fourth-quarter fiscal 2022 results on Oct 27. Apple Inc. (AAPL): Free Stock Analysis Report The Zacks Consensus Estimate for iPhone sales currently stands at $42.76 billion, indicating 10% growth from the year-ago quarter’s reported figure.
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Apple AAPL is set to report fourth-quarter fiscal 2022 results on Oct 27. Apple Inc. (AAPL): Free Stock Analysis Report Services like Apple TV+, Apple Arcade, Apple News+, Apple Card, Apple Fitness+ and Apple One bundle are expected to have contributed to overall growth.
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Apple AAPL is set to report fourth-quarter fiscal 2022 results on Oct 27. Apple Inc. (AAPL): Free Stock Analysis Report Services like Apple TV+, Apple Arcade, Apple News+, Apple Card, Apple Fitness+ and Apple One bundle are expected to have contributed to overall growth.
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18781.0
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2022-10-24 00:00:00 UTC
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US STOCKS-Wall Street set to open higher as bond yields retreat
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-set-to-open-higher-as-bond-yields-retreat
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nan
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nan
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By Amruta Khandekar
Oct 24 (Reuters) - U.S. stocks were set to open higher on Monday as Treasury yields eased on hopes of a less aggressive Federal Reserve, while investors braced for a busy week of earnings dominated by Big Tech companies.
Wall Street's three main indexes rallied on Friday after a report said the U.S. central bank will likely debate on a smaller interest rate hike in December, spurring expectations that it may be poised to dial down its ultra-hawkish stance on fighting surging inflation.
U.S. Treasury yields slipped following the report. The 10-year yield US10YT=RR was last seen at 4.17% after hitting a 15-year high at 4.34% on Friday. US/
The indexes notched their biggest weekly percentage gains in four months on Friday, also supported by better-than-expected earnings reports.
Google-parent Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O will report on Tuesday, followed by Apple Inc AAPL.O and Amazon.com Inc AMZN.O on Thursday.
The earnings reports from the four biggest U.S. companies by market capitalization could test a nascent rally on Wall Street as stocks claw their way back from the latest lows.
"I think the bar for success for mega cap companies is relatively low. Therefore, the reaction function to the actual earnings will likely be positive," said Art Hogan, chief market strategist at B. Riley Wealth in New York.
"The reporting season really gives investors the opportunity to shift their focus on the actual earnings power of corporate America, and I think that's why we're popping a little bit."
Of the 99 companies in the S&P 500 that reported third-quarter earnings through Friday, 74.7% had beat analysts' expectations, according to Refinitiv IBES estimates. The long-term average is 66.2%.
The benchmark S&P 500 .SPX is up nearly 5% from its Oct. 12 closing low for the year. Despite the recent rebound, the index is down 21% so far in 2022, on track for its biggest decline since 2008.
Meanwhile, U.S.-listed shares of Chinese companies such as Alibaba Group Holding Ltd BABA.N and Baidu Inc BIDU.O fell about 12% each in premarket trading as President Xi Jinping's new leadership team heightened fears that growth will be sacrificed for ideology-driven policies.
Tesla TSLA.O fell 2.9% after the electric-car maker cut starter prices for its Model 3 and Model Y cars by as much as 9% in China, reversing a trend of increases across the industry amid signs of softening demand in the world's largest auto market.
At 8:27 a.m. ET, Dow e-minis 1YMcv1 were up 144 points, or 0.46%, S&P 500 e-minis EScv1 were up 14.75 points, or 0.39%, and Nasdaq 100 e-minis NQcv1 were up 13.25 points, or 0.12%.
Investors will be watching S&P Global's flash survey on U.S. business activity in October, due at 9:45 a.m. ET, for clues on the health of the U.S. economy amid rapidly rising interest rates.
Medtronic Plc MDT.N rose 1.9% after the medical device maker said it would spin off its patient monitoring and respiratory interventions businesses into a new company.
(Reporting by Bansari Mayur Kamdar and Amruta Khandekar in Bengaluru; Editing by Sriraj Kalluvila)
((BansariMayur.Kamdar@thomsonreuters.com; Twitter: @BansariKamdar))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Google-parent Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O will report on Tuesday, followed by Apple Inc AAPL.O and Amazon.com Inc AMZN.O on Thursday. By Amruta Khandekar Oct 24 (Reuters) - U.S. stocks were set to open higher on Monday as Treasury yields eased on hopes of a less aggressive Federal Reserve, while investors braced for a busy week of earnings dominated by Big Tech companies. Wall Street's three main indexes rallied on Friday after a report said the U.S. central bank will likely debate on a smaller interest rate hike in December, spurring expectations that it may be poised to dial down its ultra-hawkish stance on fighting surging inflation.
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Google-parent Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O will report on Tuesday, followed by Apple Inc AAPL.O and Amazon.com Inc AMZN.O on Thursday. Wall Street's three main indexes rallied on Friday after a report said the U.S. central bank will likely debate on a smaller interest rate hike in December, spurring expectations that it may be poised to dial down its ultra-hawkish stance on fighting surging inflation. The earnings reports from the four biggest U.S. companies by market capitalization could test a nascent rally on Wall Street as stocks claw their way back from the latest lows.
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Google-parent Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O will report on Tuesday, followed by Apple Inc AAPL.O and Amazon.com Inc AMZN.O on Thursday. By Amruta Khandekar Oct 24 (Reuters) - U.S. stocks were set to open higher on Monday as Treasury yields eased on hopes of a less aggressive Federal Reserve, while investors braced for a busy week of earnings dominated by Big Tech companies. Wall Street's three main indexes rallied on Friday after a report said the U.S. central bank will likely debate on a smaller interest rate hike in December, spurring expectations that it may be poised to dial down its ultra-hawkish stance on fighting surging inflation.
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Google-parent Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O will report on Tuesday, followed by Apple Inc AAPL.O and Amazon.com Inc AMZN.O on Thursday. Wall Street's three main indexes rallied on Friday after a report said the U.S. central bank will likely debate on a smaller interest rate hike in December, spurring expectations that it may be poised to dial down its ultra-hawkish stance on fighting surging inflation. U.S. Treasury yields slipped following the report.
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18782.0
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2022-10-24 00:00:00 UTC
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US STOCKS-Futures reverse losses as bond yields retreat
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-reverse-losses-as-bond-yields-retreat
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nan
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nan
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By Amruta Khandekar
Oct 24 (Reuters) - U.S. stock index futures reversed losses on Monday as Treasury yields eased on hopes of a less aggressive Federal Reserve, while investors braced for a busy week of earnings dominated by Big Tech companies.
Wall Street's main indexes rallied on Friday after a report said the U.S. central bank will likely debate on a smaller interest rate hike in December, spurring expectations that it may be poised to dial down its ultra-hawkish stance on fighting inflation.
U.S. Treasury yields slipped following the report, with the 10-year yield US10YT=RR last seen at 4.16% after hitting 2007 highs at 4.34% on Friday. US/
All the three major indexes notched their biggest weekly percentage gains in four months on Friday, also supported by better-than-expected earnings reports.
Of the 99 companies in the S&P 500 that reported third-quarter earnings through Friday, 74.7% had beat analysts' expectations, according to Refinitiv IBES estimates. The long-term average is 66.2%.
Google-parent Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O will report on Tuesday, followed by Apple Inc AAPL.O and Amazon.com Inc AMZN.O on Thursday.
The earnings reports from the four biggest U.S. companies by market capitalization could test a nascent rally on Wall Street as stocks claw their way back from the latest lows.
The benchmark S&P 500 .SPX is up nearly 5% from its Oct. 12 closing low for the year. Despite the recent rebound, the index is down 21% so far in 2022, on track for its biggest decline since 2008.
Meanwhile, U.S.-listed shares of Chinese companies such as Alibaba Group Holding Ltd BABA.N and Baidu Inc BIDU.O suffered sharp losses in premarket trading, down more than 12% each, as President Xi Jinping's new leadership team heightened fears that growth will be sacrificed for ideology-driven policies.
Tesla TSLA.O fell 2.4% after the electric-car maker cut starter prices for its Model 3 and Model Y cars by as much as 9% in China, reversing a trend of increases across the industry amid signs of softening demand in the world's largest auto market.
At 7:17 a.m. ET, Dow e-minis 1YMcv1 were up 122 points, or 0.39%, S&P 500 e-minis EScv1 were up 13 points, or 0.35%, and Nasdaq 100 e-minis NQcv1 were up 20.25 points, or 0.18%.
Investors will be watching S&P Global's flash survey on U.S. business activity in October, due at 9:45 a.m. ET, for clues on the health of the U.S. economy amid rapidly rising interest rates.
(Reporting by Bansari Mayur Kamdar and Amruta Khandekar in Bengaluru; Editing by Sriraj Kalluvila)
((BansariMayur.Kamdar@thomsonreuters.com; Twitter: @BansariKamdar))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Google-parent Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O will report on Tuesday, followed by Apple Inc AAPL.O and Amazon.com Inc AMZN.O on Thursday. By Amruta Khandekar Oct 24 (Reuters) - U.S. stock index futures reversed losses on Monday as Treasury yields eased on hopes of a less aggressive Federal Reserve, while investors braced for a busy week of earnings dominated by Big Tech companies. Wall Street's main indexes rallied on Friday after a report said the U.S. central bank will likely debate on a smaller interest rate hike in December, spurring expectations that it may be poised to dial down its ultra-hawkish stance on fighting inflation.
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Google-parent Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O will report on Tuesday, followed by Apple Inc AAPL.O and Amazon.com Inc AMZN.O on Thursday. By Amruta Khandekar Oct 24 (Reuters) - U.S. stock index futures reversed losses on Monday as Treasury yields eased on hopes of a less aggressive Federal Reserve, while investors braced for a busy week of earnings dominated by Big Tech companies. Wall Street's main indexes rallied on Friday after a report said the U.S. central bank will likely debate on a smaller interest rate hike in December, spurring expectations that it may be poised to dial down its ultra-hawkish stance on fighting inflation.
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Google-parent Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O will report on Tuesday, followed by Apple Inc AAPL.O and Amazon.com Inc AMZN.O on Thursday. By Amruta Khandekar Oct 24 (Reuters) - U.S. stock index futures reversed losses on Monday as Treasury yields eased on hopes of a less aggressive Federal Reserve, while investors braced for a busy week of earnings dominated by Big Tech companies. Wall Street's main indexes rallied on Friday after a report said the U.S. central bank will likely debate on a smaller interest rate hike in December, spurring expectations that it may be poised to dial down its ultra-hawkish stance on fighting inflation.
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Google-parent Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O will report on Tuesday, followed by Apple Inc AAPL.O and Amazon.com Inc AMZN.O on Thursday. By Amruta Khandekar Oct 24 (Reuters) - U.S. stock index futures reversed losses on Monday as Treasury yields eased on hopes of a less aggressive Federal Reserve, while investors braced for a busy week of earnings dominated by Big Tech companies. Wall Street's main indexes rallied on Friday after a report said the U.S. central bank will likely debate on a smaller interest rate hike in December, spurring expectations that it may be poised to dial down its ultra-hawkish stance on fighting inflation.
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18783.0
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2022-10-24 00:00:00 UTC
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Will Higher Revenues Benefit Corning (GLW) Q3 Earnings?
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AAPL
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https://www.nasdaq.com/articles/will-higher-revenues-benefit-corning-glw-q3-earnings
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nan
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nan
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Corning Incorporated, Inc. GLW is scheduled to report third-quarter 2022 results on Oct 25, before the market opens. In the last reported quarter, the company delivered an earnings surprise of 1.8%. It pulled off a trailing four-quarter earnings surprise of 3.6%, on average.
The New York-based communications components provider is expected to have recorded year-over-year higher revenues, driven by healthy sales of fiber-optic solutions.
Factors at Play
During the third quarter, Corning expanded its optical cable manufacturing capacity by setting up a new production facility in Gilbert, AZ. It also opened a new production facility in Mszczonów, Poland. As optical networks are more efficient and most existing networks are copper-based, the demand for optical solutions is solid, and the investments are likely to help meet the increasing demand for high-speed connectivity via large-scale production of low-cost optical fibers. These are likely to get reflected in the upcoming results.
In the to-be-reported quarter, Corning announced it will receive $103.8 million in additional funding from the U.S. Department of Health and Human Services’ Biomedical Advanced Research and Development Authority for its planned manufacturing expansion of advanced, high-quality pharmaceutical glass tubing and vials. This is likely to have benefited the Life Sciences segment revenues in the quarter. The consensus estimate for Life Sciences stands at $323 million, which implies an increase from $305 million reported a year ago.
For the September quarter, the Zacks Consensus Estimate for total revenues is pegged at $3,667 million, which indicates growth from the year-ago quarter’s reported figure of $3,639 million. The consensus estimate for adjusted earnings per share is pegged at 51 cents, suggesting a decline from the prior-year reported earnings of 56 cents.
Earnings Whispers
Our proven model does not predict an earnings beat for Corning this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -0.98%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Corning Incorporated Price and EPS Surprise
Corning Incorporated price-eps-surprise | Corning Incorporated Quote
Zacks Rank: Corning currently has a Zacks Rank #3.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Sensata Technologies Holding plc ST is set to release quarterly numbers on Oct 25. It has an Earnings ESP of +2.92% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for NETGEAR, Inc. NTGR is +8.00% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Oct 26.
The Earnings ESP for Apple Inc. AAPL is +0.86% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Oct 27.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
Sensata Technologies Holding N.V. (ST): Free Stock Analysis Report
Corning Incorporated (GLW): Free Stock Analysis Report
NETGEAR, Inc. (NTGR): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Earnings ESP for Apple Inc. AAPL is +0.86% and it carries a Zacks Rank of 3. Apple Inc. (AAPL): Free Stock Analysis Report The New York-based communications components provider is expected to have recorded year-over-year higher revenues, driven by healthy sales of fiber-optic solutions.
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The Earnings ESP for Apple Inc. AAPL is +0.86% and it carries a Zacks Rank of 3. Apple Inc. (AAPL): Free Stock Analysis Report Corning Incorporated Price and EPS Surprise Corning Incorporated price-eps-surprise | Corning Incorporated Quote Zacks Rank: Corning currently has a Zacks Rank #3.
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The Earnings ESP for Apple Inc. AAPL is +0.86% and it carries a Zacks Rank of 3. Apple Inc. (AAPL): Free Stock Analysis Report The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
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The Earnings ESP for Apple Inc. AAPL is +0.86% and it carries a Zacks Rank of 3. Apple Inc. (AAPL): Free Stock Analysis Report For the September quarter, the Zacks Consensus Estimate for total revenues is pegged at $3,667 million, which indicates growth from the year-ago quarter’s reported figure of $3,639 million.
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18784.0
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2022-10-24 00:00:00 UTC
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Can Top-Line Improvement Aid Juniper (JNPR) Q3 Earnings?
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AAPL
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https://www.nasdaq.com/articles/can-top-line-improvement-aid-juniper-jnpr-q3-earnings
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nan
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nan
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Juniper Networks, Inc. JNPR is scheduled to report third-quarter 2022 results on Oct 25, after the market closes. In the last reported quarter, the company missed adjusted earnings by 3 cents. The Sunnyvale, CA-based network solutions provider is expected to have recorded year-over-year higher revenues, driven by healthy demand trends.
Factors at Play
In the to-be-reported quarter, Juniper is expected to have benefited from the launch of Network as a Service (NaaS) enhancements to its leading AIOps platform that facilitate the deployment and management of wired, wireless and secure SD-WAN network services via Juniper MSP and reseller partners. The combination of microservices cloud, open APIs and Mist AI with new NaaS capabilities is likely to bring more flexibility, agility and insight to Juniper partners. This is likely to be reflected in the upcoming results.
During the quarter, the company inked an agreement with Tata Play Fiber for an undisclosed amount to augment the latter’s network capabilities to cater to the exponential growth in customers and related data demands. The improvement in infrastructure facilities is expected to reduce the complexity of the network while increasing operational flexibility and efficiency with a better economy of scale. In addition, Tata Play Fiber is likely to leverage Juniper's Broadband Network Gateway subscriber management solution to simplify the delivery of bundled services. This is likely to have generated incremental revenues in the quarter.
The company was also selected to facilitate the digital transformation initiative of the Royal Society for Prevention of Cruelty to Animals, New South Wales (“RSPCA NSW”). Juniper’s AI-driven wired and wireless portfolio, which includes the deployment of a range of networking solutions, has enabled RSPCA NSW to provide a strong digital experience for its prospective pet parents and staff. This is likely to have aided top-line growth in the quarter.
For the September quarter, the Zacks Consensus Estimate for total revenues is pegged at $1,351 million, which indicates growth from the year-ago quarter’s reported figure of $1,189 million. The consensus estimate for adjusted earnings per share stands at 50 cents, suggesting growth from 46 cents reported in the prior year.
Earnings Whispers
Our proven model predicts an earnings beat for Juniper this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is perfectly the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +3.54%, with the former pegged at 52 cents and the latter at 50 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Juniper Networks, Inc. Price and EPS Surprise
Juniper Networks, Inc. price-eps-surprise | Juniper Networks, Inc. Quote
Zacks Rank: Juniper currently has a Zacks Rank #3.
Other Stocks to Consider
Here are some other companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Sensata Technologies Holding plc ST is set to release quarterly numbers on Oct 25. It has an Earnings ESP of +2.92% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for NETGEAR, Inc. NTGR is +8.00% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Oct 26.
The Earnings ESP for Apple Inc. AAPL is +0.86% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Oct 27.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
Juniper Networks, Inc. (JNPR): Free Stock Analysis Report
Sensata Technologies Holding N.V. (ST): Free Stock Analysis Report
NETGEAR, Inc. (NTGR): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Earnings ESP for Apple Inc. AAPL is +0.86% and it carries a Zacks Rank of 3. Apple Inc. (AAPL): Free Stock Analysis Report During the quarter, the company inked an agreement with Tata Play Fiber for an undisclosed amount to augment the latter’s network capabilities to cater to the exponential growth in customers and related data demands.
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The Earnings ESP for Apple Inc. AAPL is +0.86% and it carries a Zacks Rank of 3. Apple Inc. (AAPL): Free Stock Analysis Report The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
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The Earnings ESP for Apple Inc. AAPL is +0.86% and it carries a Zacks Rank of 3. Apple Inc. (AAPL): Free Stock Analysis Report The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
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The Earnings ESP for Apple Inc. AAPL is +0.86% and it carries a Zacks Rank of 3. Apple Inc. (AAPL): Free Stock Analysis Report For the September quarter, the Zacks Consensus Estimate for total revenues is pegged at $1,351 million, which indicates growth from the year-ago quarter’s reported figure of $1,189 million.
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18785.0
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2022-10-24 00:00:00 UTC
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GLOBAL MARKETS-Dollar shakes off suspected Japan intervention; stocks brace for earnings
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AAPL
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https://www.nasdaq.com/articles/global-markets-dollar-shakes-off-suspected-japan-intervention-stocks-brace-for-earnings
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nan
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nan
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By Amanda Cooper
LONDON, Oct 24 (Reuters) - The dollar weathered another suspected blast of Japanese intervention to rise against the yen on Monday, while European markets got a lift from hopes that U.S. interest rates could rise more slowly than previously thought.
The dollar roared to 149.70 yen JPY=EBS in early trade before hastily retreating to 145.28 in a matter of minutes in what traders and analysts said appeared to be at the hands of the Bank of Japan. It was last down almost 1% at 149.24.
Japan likely spent a record 5.4 trillion-5.5 trillion yen ($36.16 billion-$36.83 billion) in its yen-buying intervention last Friday, according to estimates by Tokyo money market brokerage firms. Japanese authorities did not confirm whether or not there had been intervention.
Any action to support the yen runs counter to the BOJ's commitment to controlling Japanese government borrowing costs and could increase the pressure on it to step back on yield curve control at its policy meeting this week.
Sterling, meanwhile, see-sawed in volatile trade on news Boris Johnson had dropped out of the running for British prime minister.
Former finance minister Rishi Sunak, who is the market's preferred candidate, has emerged as the front-runner for the job, which could reduce some of the political uncertainty hanging over the pound.
The news initially saw sterling GBP=D3 jump almost a cent to $1.1402, but it could not hold and was last trading at $1.1328 as investors waited for more clarity. The leadership could potentially be settled later in the day if Sunak becomes the only candidate to secure the minimum number of MPs' votes required to progress.
"The day-to-day is tricky. My favourite expression on all of it this morning is this is a time to be a poker player, not a chess player. It's all about positioning and sentiment and understanding who you're playing against," Societe Generale strategist Kit Juckes said.
Equities mostly extended the bounce that began late in New York on Friday on talk the Federal Reserve was debating when to slow the pace of hikes and might signal a step back at its November meeting.
Markets are still priced for a rise of 75 basis points next month, but have scaled back bets on a matching move in December. The peak for rates has also edged down to around 4.87%, from above 5% early last week. FEDWATCH
Fed officials, including San Francisco Fed President Mary Daly and St Louis chief James Bullard, indicated that the pace of tightening would be at the heart of any policy debate at November's meeting.
ECB, BoC SET TO HIKE
"What this means for the markets is that the rates and FX markets could now become more sensitive to incoming economic data and any evidence of financial market stress," MUFG head of research Derek Halpenny said.
The picture on the stock market was more mixed. European indices rose, ahead of an earnings-heavy week, with the STOXX 600 up 0.7% on the day, while emerging equities took a battering, largely due to a hefty sell-off in China.
Chinese blue chips .CSI300 slid almost 3%, while Hong Kong shares fell 6.4%, their biggest one-day drop since the financial crisis. The offshore yuan hit another record low against the dollar CNH=D3 after Xi Jinping secured a precedent-breaking third leadership term, picking a top governing body stacked with loyalists. Xi is likely to stick to his zero-COVID policy that is damaging growth, analysts say.
Delayed data on gross domestic product (GDP) showed the Chinese economy grew 3.9% in the third quarter, above forecasts for 3.5%, but retail sales disappointed, with a rise of 2.5%.
Investors will get a look at U.S. GDP on Thursday and core inflation measures a day later. The economy is forecast to have grown an annualised 2.1% in the third quarter.
Sentiment will also be tested by some major earnings with Apple AAPL.O, Microsoft MSFT.O, Google-parent Alphabet GOOGL.O and Amazon AMZN.O all reporting.
The European Central Bank meets this week and is widely expected to raise rates by 75 bps. 0#ECBWATCH
The euro fell 0.4% to $0.9824EUR=EBS, having briefly been as high as $0.9899 early in the session.
The Bank of Canada is also expected to tighten by 75 bps at its meeting this week.
The possibility of a slowdown in U.S. rate increases helped bonds pare some of their recent heavy losses, with U.S. 10-year Treasury yields easing to 4.16% US10YT=RR compared to a 15-year peak of 4.337% on Friday. US/
Oil fell after soft data on Chinese demand. Brent LCOc1dropped 0.7% to $92.83 a barrel, while U.S. crude CLc1lost 1.1% to trade at $84.14. O/R
Asia stock marketshttps://tmsnrt.rs/2zpUAr4
Asia-Pacific valuationshttps://tmsnrt.rs/2Dr2BQA
(Reporting by Wayne Cole; Editing by Jacqueline Wong, Christopher Cushing, Susan Fenton and Nick Macfie)
((Wayne.Cole@thomsonreuters.com; 612 9171 7144; Reuters Messaging: wayne.cole.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Sentiment will also be tested by some major earnings with Apple AAPL.O, Microsoft MSFT.O, Google-parent Alphabet GOOGL.O and Amazon AMZN.O all reporting. Japan likely spent a record 5.4 trillion-5.5 trillion yen ($36.16 billion-$36.83 billion) in its yen-buying intervention last Friday, according to estimates by Tokyo money market brokerage firms. Equities mostly extended the bounce that began late in New York on Friday on talk the Federal Reserve was debating when to slow the pace of hikes and might signal a step back at its November meeting.
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Sentiment will also be tested by some major earnings with Apple AAPL.O, Microsoft MSFT.O, Google-parent Alphabet GOOGL.O and Amazon AMZN.O all reporting. Any action to support the yen runs counter to the BOJ's commitment to controlling Japanese government borrowing costs and could increase the pressure on it to step back on yield curve control at its policy meeting this week. FEDWATCH Fed officials, including San Francisco Fed President Mary Daly and St Louis chief James Bullard, indicated that the pace of tightening would be at the heart of any policy debate at November's meeting.
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Sentiment will also be tested by some major earnings with Apple AAPL.O, Microsoft MSFT.O, Google-parent Alphabet GOOGL.O and Amazon AMZN.O all reporting. By Amanda Cooper LONDON, Oct 24 (Reuters) - The dollar weathered another suspected blast of Japanese intervention to rise against the yen on Monday, while European markets got a lift from hopes that U.S. interest rates could rise more slowly than previously thought. Any action to support the yen runs counter to the BOJ's commitment to controlling Japanese government borrowing costs and could increase the pressure on it to step back on yield curve control at its policy meeting this week.
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Sentiment will also be tested by some major earnings with Apple AAPL.O, Microsoft MSFT.O, Google-parent Alphabet GOOGL.O and Amazon AMZN.O all reporting. The news initially saw sterling GBP=D3 jump almost a cent to $1.1402, but it could not hold and was last trading at $1.1328 as investors waited for more clarity. The peak for rates has also edged down to around 4.87%, from above 5% early last week.
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18786.0
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2022-10-24 00:00:00 UTC
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US STOCKS-Futures slide as China worries sour global mood
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-slide-as-china-worries-sour-global-mood
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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 0.63%, S&P 0.70%, Nasdaq 0.84%
Oct 24 (Reuters) - U.S. stock index futures fell on Monday, as worries about China's economy dented sentiment globally after sharp gains on Wall Street last week driven by better-than-expected earnings and hopes of a less aggressive Federal Reserve.
U.S.-listed shares of Chinese companies such as Alibaba Group Holding Ltd BABA.N and Baidu Inc BIDU.O led the losses in early premarket trading, down 12.5% and 11.7%, respectively, as President Xi Jinping's new leadership team heightened fears that growth will be sacrificed for ideology-driven policies.
Meanwhile, delayed data on gross domestic product showed the Chinese economy grew a better-than-expected 3.9% in the third quarter, but retail sales disappointed with a meager rise of 2.5%.
Tesla TSLA.O fell 3.5% after the electric-car maker cut starter prices for its Model 3 and Model Y cars by as much as 9% in China, reversing a trend of increases across the industry amid signs of softening demand in the world's largest auto market.
Wall Street jumped on Friday after a report said the Fed will likely debate on a smaller interest rate hike in December, raising hopes the central bank may be poised to adopt a less aggressive policy stance.
All the three major indexes notched their biggest weekly percentage gains in four months last week, supported by better-than-feared third-quarter earnings so far.
Of the 99 companies in the S&P 500 that have reported quarterly earnings as of Friday, 74.7% beat analysts' expectations, according to Refinitiv estimates. The long-term average is 66.2%.
Focus now shifts to reports this week from big tech and growth companies. Google-parent Alphabet Inc GOOGL.O will report on Tuesday, followed by Facebook-parent Meta Platforms Inc META.O on Wednesday and Apple Inc AAPL.O and Amazon.com Inc AMZN.O on Thursday.
At 4:43 a.m. ET, Dow e-minis 1YMcv1 were down 197 points, or 0.63%, S&P 500 e-minis EScv1 were down 26.5 points, or 0.7%, and Nasdaq 100 e-minis NQcv1 were down 95 points, or 0.84%.
Investors were waiting for S&P Global's flash survey on manufacturing and services sector activity in October for clues on the health of the U.S. economy amid rapidly rising interest rates.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Sriraj Kalluvila)
((BansariMayur.Kamdar@thomsonreuters.com; Twitter: @BansariKamdar))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Google-parent Alphabet Inc GOOGL.O will report on Tuesday, followed by Facebook-parent Meta Platforms Inc META.O on Wednesday and Apple Inc AAPL.O and Amazon.com Inc AMZN.O on Thursday. U.S.-listed shares of Chinese companies such as Alibaba Group Holding Ltd BABA.N and Baidu Inc BIDU.O led the losses in early premarket trading, down 12.5% and 11.7%, respectively, as President Xi Jinping's new leadership team heightened fears that growth will be sacrificed for ideology-driven policies. Wall Street jumped on Friday after a report said the Fed will likely debate on a smaller interest rate hike in December, raising hopes the central bank may be poised to adopt a less aggressive policy stance.
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Google-parent Alphabet Inc GOOGL.O will report on Tuesday, followed by Facebook-parent Meta Platforms Inc META.O on Wednesday and Apple Inc AAPL.O and Amazon.com Inc AMZN.O on Thursday. Futures down: Dow 0.63%, S&P 0.70%, Nasdaq 0.84% Oct 24 (Reuters) - U.S. stock index futures fell on Monday, as worries about China's economy dented sentiment globally after sharp gains on Wall Street last week driven by better-than-expected earnings and hopes of a less aggressive Federal Reserve. ET, Dow e-minis 1YMcv1 were down 197 points, or 0.63%, S&P 500 e-minis EScv1 were down 26.5 points, or 0.7%, and Nasdaq 100 e-minis NQcv1 were down 95 points, or 0.84%.
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Google-parent Alphabet Inc GOOGL.O will report on Tuesday, followed by Facebook-parent Meta Platforms Inc META.O on Wednesday and Apple Inc AAPL.O and Amazon.com Inc AMZN.O on Thursday. Futures down: Dow 0.63%, S&P 0.70%, Nasdaq 0.84% Oct 24 (Reuters) - U.S. stock index futures fell on Monday, as worries about China's economy dented sentiment globally after sharp gains on Wall Street last week driven by better-than-expected earnings and hopes of a less aggressive Federal Reserve. Wall Street jumped on Friday after a report said the Fed will likely debate on a smaller interest rate hike in December, raising hopes the central bank may be poised to adopt a less aggressive policy stance.
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Google-parent Alphabet Inc GOOGL.O will report on Tuesday, followed by Facebook-parent Meta Platforms Inc META.O on Wednesday and Apple Inc AAPL.O and Amazon.com Inc AMZN.O on Thursday. 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 0.63%, S&P 0.70%, Nasdaq 0.84% Oct 24 (Reuters) - U.S. stock index futures fell on Monday, as worries about China's economy dented sentiment globally after sharp gains on Wall Street last week driven by better-than-expected earnings and hopes of a less aggressive Federal Reserve.
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18787.0
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2022-10-24 00:00:00 UTC
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GLOBAL MARKETS-Dollar shrugs off suspected yen intervention, Europe clings to Fed hopes
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https://www.nasdaq.com/articles/global-markets-dollar-shrugs-off-suspected-yen-intervention-europe-clings-to-fed-hopes
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By Wayne Cole and Amanda Cooper
LONDON/SYDNEY, Oct 24 (Reuters) - The dollar weathered another suspected blast of Japanese intervention to rise against the yen on Monday, while European markets got a lift from hopes that U.S. interest rates could rise more slowly than previously thought.
The dollar roared to 149.70 yen JPY=EBS in early trade before hastily retreating to 145.28 in a matter of minutes in what traders and analysts said appeared to be at the hands of the Bank of Japan. It was last down almost 1% at 149.24.
The Financial Times reported the BOJ may have sold at least $30 billion on Friday to try to protect the yen from yet more weakness, which has sharply lifted the cost of Japan's imports, particularly for resources.
Japanese authorities again declined to confirm whether they had intervened, but the price action suggested they had.
Any action to support the yen runs counter to the BOJ's commitment to controlling Japanese government borrowing costs and could increase the pressure on it to step back on yield curve control at its policy meeting this week.
Sterling, meanwhile, see-sawed in volatile trade on news Boris Johnson had dropped out of the running for British prime minister.
Former finance minister Rishi Sunak, who is the market's preferred candidate, has emerged as the front-runner for the job, which could reduce some of the political uncertainty hanging over the pound.
The news initially saw sterling GBP=D3 jump almost a cent to $1.1402, but it could not hold and was last trading at $1.1328 as investors waited for more clarity on the contest. The leadership could potentially be settled later on Monday if Sunak becomes the only candidate to secure the minimum number of MPs' votes required to progress.
"The day-to-day is tricky. My favourite expression on all of it this morning is this is a time to be a poker player, not a chess player. It's all about positioning and sentiment and understanding who you're playing against," Societe Generale strategist Kit Juckes said.
Equities mostly extended the bounce that began late in New York on Friday on talk the Federal Reserve was debating when to slow the pace of hikes and might signal a step back at its November meeting.
Markets are still priced for a rise of 75 basis points next month, but have scaled back bets on a matching move in December. The peak for rates has also edged down to around 4.87%, from above 5% early last week. FEDWATCH
ECB, BoC SET TO HIKE
Stocks in Europe opened on an upbeat note, with the STOXX 600 up 0.7% on the day, ahead of a week of packed earnings, as 118 companies, including big guns like HSBC HSBA.L, Unilever ULVR.L and TotalEnergies TTEF.PA are set to report.
Chinese blue chips .CSI300 slid almost 3%, while the offshore yuan hit another record low against the dollar CNH=D3 after Xi Jinping secured a precedent-breaking third leadership term, picking a top governing body stacked with loyalists. Xi is likely to stick to his zero-COVID policy that is damaging growth, analysts say.
Delayed data on gross domestic product(GDP) showed the Chinese economy grew 3.9% in the third quarter, above forecasts for 3.5%, but retail sales disappointed, with a rise of 2.5%.
Markets now await figures on U.S. GDP due on Thursday and core inflation measures the day after. The economy is forecast to have grown an annualised 2.1% in the third quarter, while the Atlanta Fed GDP Now indicator rose to 2.9% in the latest week, from 2.8%.
Sentiment will also be tested by some major earnings with Apple AAPL.O, Microsoft MSFT.O, Google-parent Alphabet GOOGL.O and Amazon AMZN.O all reporting.
The European Central Bank meets this week and is widely expected to raise its rates by 75 basis points, though it is less clear whether it will signal a further such move in December. 0#ECBWATCH
"Although we do not expect any 'dovish' policy signal, we maintain a bias towards a lower rate path than currently priced by markets," said analysts at NatWest Markets in a note.
"We forecast +50bp in December and +25bp in early 2023 to a 2.25% peak," they added. "There is more uncertainty around QT (quantitative tightening), where beginning sales in Q1 2023 could well be announced."
The euro was off a fraction at $0.9835 EUR=EBS, having briefly been as high as $0.9899 early in the session.
The Bank of Canada is also expected to tighten by 75 basis pointsat its meeting this week.
The possibility of a slowdown in U.S. rate increases helped bonds pare some of their recent heavy losses, with U.S. 10-year Treasury yields easing to 4.16% US10YT=RR compared to a 15-year peak of 4.337% on Friday. US/
In commodity markets, gold was sidelined at $1,654 an ounce XAU=. GOL/
Oil prices surrendered early gains following soft data on Chinese demand. Brent LCOc1 retreated 42 cents to $93.08 a barrel, while U.S. crude CLc1 fell 41 cents to $84.64. O/R
Asia stock marketshttps://tmsnrt.rs/2zpUAr4
Asia-Pacific valuationshttps://tmsnrt.rs/2Dr2BQA
(Reporting by Wayne Cole; Editing by Jacqueline Wong, Christopher Cushing and Susan Fenton)
((Wayne.Cole@thomsonreuters.com; 612 9171 7144; Reuters Messaging: wayne.cole.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Sentiment will also be tested by some major earnings with Apple AAPL.O, Microsoft MSFT.O, Google-parent Alphabet GOOGL.O and Amazon AMZN.O all reporting. The Financial Times reported the BOJ may have sold at least $30 billion on Friday to try to protect the yen from yet more weakness, which has sharply lifted the cost of Japan's imports, particularly for resources. Equities mostly extended the bounce that began late in New York on Friday on talk the Federal Reserve was debating when to slow the pace of hikes and might signal a step back at its November meeting.
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Sentiment will also be tested by some major earnings with Apple AAPL.O, Microsoft MSFT.O, Google-parent Alphabet GOOGL.O and Amazon AMZN.O all reporting. By Wayne Cole and Amanda Cooper LONDON/SYDNEY, Oct 24 (Reuters) - The dollar weathered another suspected blast of Japanese intervention to rise against the yen on Monday, while European markets got a lift from hopes that U.S. interest rates could rise more slowly than previously thought. Any action to support the yen runs counter to the BOJ's commitment to controlling Japanese government borrowing costs and could increase the pressure on it to step back on yield curve control at its policy meeting this week.
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Sentiment will also be tested by some major earnings with Apple AAPL.O, Microsoft MSFT.O, Google-parent Alphabet GOOGL.O and Amazon AMZN.O all reporting. By Wayne Cole and Amanda Cooper LONDON/SYDNEY, Oct 24 (Reuters) - The dollar weathered another suspected blast of Japanese intervention to rise against the yen on Monday, while European markets got a lift from hopes that U.S. interest rates could rise more slowly than previously thought. Any action to support the yen runs counter to the BOJ's commitment to controlling Japanese government borrowing costs and could increase the pressure on it to step back on yield curve control at its policy meeting this week.
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Sentiment will also be tested by some major earnings with Apple AAPL.O, Microsoft MSFT.O, Google-parent Alphabet GOOGL.O and Amazon AMZN.O all reporting. Any action to support the yen runs counter to the BOJ's commitment to controlling Japanese government borrowing costs and could increase the pressure on it to step back on yield curve control at its policy meeting this week. The news initially saw sterling GBP=D3 jump almost a cent to $1.1402, but it could not hold and was last trading at $1.1328 as investors waited for more clarity on the contest.
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18788.0
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2022-10-24 00:00:00 UTC
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GLOBAL MARKETS-Dollar shakes off suspected Japan intervention; stocks brace for earnings
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https://www.nasdaq.com/articles/global-markets-dollar-shakes-off-suspected-japan-intervention-stocks-brace-for-earnings-0
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By Chris Prentice and Amanda Cooper
WASHINGTON/LONDON, Oct 24 (Reuters) - U.S. shares were mixed on Monday as European markets were lifted by hopes that U.S. interest rates could rise more slowly than previously thought and the dollar weathered another suspected Japanese intervention to rise against the yen.
The Dow Jones Industrial Average .DJI rose 133.17 points, or 0.43%, to 31,215.73, the S&P 500 .SPX lost 3.69 points, or 0.10%, to 3,749.06 and the Nasdaq Composite .IXIC dropped 125.83 points, or 1.16%, to 10,733.88 by 10:22 a.m.
The dollar advanced to 149.70 yen JPY=EBS in early trade before hastily retreating to 145.28 in a matter of minutes in what traders and analysts said appeared to be at the hands of the Bank of Japan. It was last at 149.030.
Japan likely spent a record 5.4 trillion-5.5 trillion yen ($36.16 billion-$36.83 billion) in its yen-buying intervention last Friday, according to estimates by Tokyo money market brokerage firms. Japanese authorities did not confirm whether or not there had been intervention.
Any action to support the yen runs counter to the BOJ's commitment to controlling Japanese government borrowing costs and could increase the pressure on it to step back on yield curve control at its policy meeting this week.
Sterling, meanwhile, see-sawed in volatile trade on news Boris Johnson had dropped out of the running for British prime minister.
Former finance minister Rishi Sunak will become Britain's next prime minister after he won the race to lead the Conservative Party, which could reduce some of the political uncertainty hanging over the pound.
Sterling GBP=D3 was last trading at $1.12935.
"The day-to-day is tricky. My favourite expression on all of it this morning is this is a time to be a poker player, not a chess player. It's all about positioning and sentiment and understanding who you're playing against," Societe Generale strategist Kit Juckes said.
Equities mostly extended the bounce that began late in New York on Friday on talk the Federal Reserve was debating when to slow the pace of hikes and might signal a step back at its November meeting.
Markets are still priced for a rise of 75 basis points next month, but have scaled back bets on a matching move in December. The peak for rates has also edged down to around 4.87%, from above 5% early last week. FEDWATCH
Fed officials, including San Francisco Fed President Mary Daly and St Louis chief James Bullard, indicated that the pace of tightening would be at the heart of any policy debate at November's meeting.
ECB, BoC SET TO HIKE
"What this means for the markets is that the rates and FX markets could now become more sensitive to incoming economic data and any evidence of financial market stress," MUFG head of research Derek Halpenny said.
The picture on the stock market was more mixed. European indices rose, ahead of an earnings-heavy week, with the STOXX 600 .STOXX up 1.31% on the day, while emerging equities took a battering, largely due to a hefty sell-off in China.
Chinese blue chips .CSI300 slid almost 3%, while Hong Kong shares fell 6.4%, their biggest one-day drop since the financial crisis. The offshore yuan hit another record low against the dollar CNH=D3 after Xi Jinping secured a precedent-breaking third leadership term, picking a top governing body stacked with loyalists. Xi is likely to stick to his zero-COVID policy that is damaging growth, analysts say.
Delayed data on gross domestic product (GDP) showed the Chinese economy grew 3.9% in the third quarter, above forecasts for 3.5%, but retail sales disappointed, with a rise of 2.5%.
Investors will get a look at U.S. GDP on Thursday and core inflation measures a day later. The economy is forecast to have grown an annualised 2.1% in the third quarter.
Sentiment will also be tested by some major earnings with Apple AAPL.O, Microsoft MSFT.O, Google-parent Alphabet GOOGL.O and Amazon AMZN.O all reporting.
The European Central Bank meets this week and is widely expected to raise rates by 75 bps. 0#ECBWATCH
The euro last traded at $0.98855 EUR=EBS, having briefly been as high as $0.9899 early in the session.
The Bank of Canada is also expected to tighten by 75 bps at its meeting this week.
The possibility of a slowdown in U.S. rate increases helped bonds pare some of their recent heavy losses. U.S. 10-year Treasury yields traded at 4.2656% US10YT=RR compared to a 15-year peak of 4.337% on Friday. US/
Brent LCOc1 regained some ground, up 0.06% after falling dropped 0.7% after soft data on Chinese demand. U.S. crude CLc1 lost 0.07%. O/R
Asia stock marketshttps://tmsnrt.rs/2zpUAr4
Asia-Pacific valuationshttps://tmsnrt.rs/2Dr2BQA
(Reporting by Wayne Cole; Editing by Jacqueline Wong, Christopher Cushing, Susan Fenton and Nick Macfie)
((christine.prentice@thomsonreuters.com; +1 (202) 843-6464;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Sentiment will also be tested by some major earnings with Apple AAPL.O, Microsoft MSFT.O, Google-parent Alphabet GOOGL.O and Amazon AMZN.O all reporting. Japan likely spent a record 5.4 trillion-5.5 trillion yen ($36.16 billion-$36.83 billion) in its yen-buying intervention last Friday, according to estimates by Tokyo money market brokerage firms. Equities mostly extended the bounce that began late in New York on Friday on talk the Federal Reserve was debating when to slow the pace of hikes and might signal a step back at its November meeting.
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Sentiment will also be tested by some major earnings with Apple AAPL.O, Microsoft MSFT.O, Google-parent Alphabet GOOGL.O and Amazon AMZN.O all reporting. Any action to support the yen runs counter to the BOJ's commitment to controlling Japanese government borrowing costs and could increase the pressure on it to step back on yield curve control at its policy meeting this week. FEDWATCH Fed officials, including San Francisco Fed President Mary Daly and St Louis chief James Bullard, indicated that the pace of tightening would be at the heart of any policy debate at November's meeting.
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Sentiment will also be tested by some major earnings with Apple AAPL.O, Microsoft MSFT.O, Google-parent Alphabet GOOGL.O and Amazon AMZN.O all reporting. By Chris Prentice and Amanda Cooper WASHINGTON/LONDON, Oct 24 (Reuters) - U.S. shares were mixed on Monday as European markets were lifted by hopes that U.S. interest rates could rise more slowly than previously thought and the dollar weathered another suspected Japanese intervention to rise against the yen. Any action to support the yen runs counter to the BOJ's commitment to controlling Japanese government borrowing costs and could increase the pressure on it to step back on yield curve control at its policy meeting this week.
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Sentiment will also be tested by some major earnings with Apple AAPL.O, Microsoft MSFT.O, Google-parent Alphabet GOOGL.O and Amazon AMZN.O all reporting. By Chris Prentice and Amanda Cooper WASHINGTON/LONDON, Oct 24 (Reuters) - U.S. shares were mixed on Monday as European markets were lifted by hopes that U.S. interest rates could rise more slowly than previously thought and the dollar weathered another suspected Japanese intervention to rise against the yen. Sterling GBP=D3 was last trading at $1.12935.
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2022-10-24 00:00:00 UTC
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Wolfspeed (WOLF) to Report Q1 Earnings: What's in the Cards?
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https://www.nasdaq.com/articles/wolfspeed-wolf-to-report-q1-earnings%3A-whats-in-the-cards
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Wolfspeed WOLF is set to report first-quarter fiscal 2023 results on Oct 26.
Wolfspeed expects the first-quarter fiscal 2023 loss between 2 cents and 8 cents per share. Revenues are anticipated to be $232.5-$247.5 million.
The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $239.76 million, implying growth of 53.10% from the figure reported in the year-ago quarter.
The consensus mark for loss has stayed at 5 cents per share over the past 30 days. Wolfspeed had reported a loss of 21 cents per share in the year-ago quarter.
Wolfspeed’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, the average surprise being 30.65%.
Wolfspeed Price and EPS Surprise
Wolfspeed price-eps-surprise | Wolfspeed Quote
Let’s see how things have shaped up for the upcoming announcement:
Factors to Consider
Wolfspeed has been benefiting from the increasing use of silicon carbide substrates in high-voltage applications. The momentum is expected to have continued in the fiscal first quarter, driven by design wins in the automotive, industrial and energy end markets.
Wolfspeed’s top-line growth is expected to have benefited from strong power devices.
Although the gross margin is expected to have improved due to continued improvements in power device execution, Wolfspeed expects the non-GAAP gross margin between 35.5% and 37.5%, whereas it reported 34% in the year-ago quarter.
However, start-up costs related to the newly opened Mohawk Valley fab are expected to have affected the quarterly bottom line. Wolfspeed expects the fiscal first-quarter non-GAAP operating loss between $2 million and $10 million. WOLF had reported an operating loss of $33.4 million in the year-ago quarter.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Although Wolfspeed currently sports a Zacks Rank #1, its Earnings ESP stands at 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Airbnb ABNB has an Earnings ESP of +9.59% and has a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Airbnb shares are down 27.9% year to date. ABNB is set to report its third-quarter 2022 results on Nov 1.
ZoomInfo ZI has an Earnings ESP of +1.27% and a Zacks Rank #2.
ZoomInfo shares have declined 30.1% on a year-to-date basis. ZI is set to report its third-quarter 2022 results on Nov 1.
Apple AAPL has an Earnings ESP of +0.89% and a Zacks Rank #3.
Apple shares are down 17.1% year to date. AAPL is set to report its fourth-quarter fiscal 2022 results on Oct 27.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
Wolfspeed (WOLF): Free Stock Analysis Report
ZoomInfo Technologies Inc. (ZI): Free Stock Analysis Report
Airbnb, Inc. (ABNB): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL has an Earnings ESP of +0.89% and a Zacks Rank #3. AAPL is set to report its fourth-quarter fiscal 2022 results on Oct 27. Apple Inc. (AAPL): Free Stock Analysis Report
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Apple AAPL has an Earnings ESP of +0.89% and a Zacks Rank #3. AAPL is set to report its fourth-quarter fiscal 2022 results on Oct 27. Apple Inc. (AAPL): Free Stock Analysis Report
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Apple AAPL has an Earnings ESP of +0.89% and a Zacks Rank #3. AAPL is set to report its fourth-quarter fiscal 2022 results on Oct 27. Apple Inc. (AAPL): Free Stock Analysis Report
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Apple AAPL has an Earnings ESP of +0.89% and a Zacks Rank #3. AAPL is set to report its fourth-quarter fiscal 2022 results on Oct 27. Apple Inc. (AAPL): Free Stock Analysis Report
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18790.0
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2022-10-23 00:00:00 UTC
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Wall St Week Ahead-Megacap earnings to test fledgling U.S. stock rebound
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AAPL
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https://www.nasdaq.com/articles/wall-st-week-ahead-megacap-earnings-to-test-fledgling-u.s.-stock-rebound-0
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nan
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nan
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By Lewis Krauskopf
NEW YORK, Oct 21 (Reuters) - Earnings reports from the four biggest U.S. companies by market capitalization in the coming week may test a nascent rally that has seen stocks claw their way back from yet another low.
Apple AAPL.O, Microsoft MSFT.O, Google-parent Alphabet GOOGL.O and Amazon AMZN.O account for a combined 20% of the weight of the S&P 500 .SPX and more than a third of the Nasdaq Composite .IXIC.
Investors view the growth giants as bellwethers for how corporate America is faring during a year in which inflation has soared, pushing the Federal Reserve to quickly enact a series of jumbo-sized rate hikes that bruised markets and raised fears a recession may be coming.
“If these megacaps can’t do well, then the question is: who can do well?” said Yung-Yu Ma, chief investment strategist at BMO Wealth Management.
The S&P 500 is up nearly 5% from its Oct 12 closing low for the year after posting its biggest weekly gain since late June. Even with stocks' latest rebound, the index has dropped 21% so far in 2022, on track for its biggest decline since 2008.
Resilient corporate profits have been one bright spot this year, though doubts are growing over how sustainable they will be. With the bulk of S&P 500 companies still to report, third-quarter profits are estimated to have climbed 3.1% versus the year-ago period, which would be the weakest performance in two years, according to Refinitiv IBES, while earnings growth expectations for 2023 have fallen to 7.2% from 7.8% on Oct 1.
Next week's reports from the four megacaps may show whether companies with dominant positions can post solid performance despite worries of a potential economic downturn.
Because of their heavy weightings, "if those stocks don’t get it done, that puts pressure on the indices to continue to go down," said Chuck Carlson, chief executive officer at Horizon Investment Services.
Microsoft and Alphabet are due to report on Tuesday, with Amazon and Apple set for Thursday.
Apple shares are the only ones of the megacaps that have outperformed the broader market this year. Shares of the iPhone maker, which account for a 7% weight in S&P 500, are down about 17% in 2022; Microsoft and Amazon are each off roughly 28%, Alphabet is down 30%.
Despite those steep losses, investors have maintained exposure to the megacap stocks. Actively managed U.S. mutual and exchange-traded funds held 11.41% of their portfolios in those four stocks combined as of the most recently available data, versus 11.44% at the end of 2021, according to Morningstar Direct.
Investors have been drawn to the large companies broadly because of their financial strength and competitive advantages that, in theory, will drive profits even during uncertain economic times.
Still, only Apple has topped analyst estimates for earnings and revenue in both of their most recent quarterly reports, according to Refinitiv data.
"The bar is higher for Apple because it has outperformed and because you haven’t seen the earnings blink yet,” said Walter Todd, chief investment officer at Greenwood Capital.
Questions loom over the other companies' key market areas, including personal computers for Microsoft, advertising spending for Alphabet and consumer strength for Amazon.
All three rely on cloud computing businesses, which will be in focus next week, according to Charlie Ryan, partner and portfolio manager at Evercore Wealth Management.
“Cloud would be the pillar that one would put their hopes on when they report,” Ryan said. “It has been continued strength for quite some time now and any deviation from that would be a concern.”
Meanwhile, soaring U.S. bond yields are pressuring valuations and complicating the picture for tech and other growth stocks, whose expected future earnings are discounted steeply by higher yields. Yields continued to rise this week, with the yield on the benchmark 10-year Treasury note hitting a fresh 14-year high.
All four stocks command higher valuations than the S&P 500, which trades at nearly 16 times forward earnings estimates. The P/Es for Apple and Microsoft are both about 22 times, Alphabet trades at 17.5 times, while Amazon sits at 60 times, according to Refinitiv Datastream.
“Those stocks have typically sold at earnings multiples that are on the higher side,” said Carlson, of Horizon Investment Services.“How they are going to continue to perform from here gives some insight into what investors are ultimately willing to pay for growth stocks.”
Megacaps market values vs stock markethttps://tmsnrt.rs/3F3AMMm
Megacaps vs the U.S. stock markethttps://tmsnrt.rs/3VFVKqq
(Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and David Gregorio)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O, Microsoft MSFT.O, Google-parent Alphabet GOOGL.O and Amazon AMZN.O account for a combined 20% of the weight of the S&P 500 .SPX and more than a third of the Nasdaq Composite .IXIC. By Lewis Krauskopf NEW YORK, Oct 21 (Reuters) - Earnings reports from the four biggest U.S. companies by market capitalization in the coming week may test a nascent rally that has seen stocks claw their way back from yet another low. Investors view the growth giants as bellwethers for how corporate America is faring during a year in which inflation has soared, pushing the Federal Reserve to quickly enact a series of jumbo-sized rate hikes that bruised markets and raised fears a recession may be coming.
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Apple AAPL.O, Microsoft MSFT.O, Google-parent Alphabet GOOGL.O and Amazon AMZN.O account for a combined 20% of the weight of the S&P 500 .SPX and more than a third of the Nasdaq Composite .IXIC. By Lewis Krauskopf NEW YORK, Oct 21 (Reuters) - Earnings reports from the four biggest U.S. companies by market capitalization in the coming week may test a nascent rally that has seen stocks claw their way back from yet another low. The P/Es for Apple and Microsoft are both about 22 times, Alphabet trades at 17.5 times, while Amazon sits at 60 times, according to Refinitiv Datastream.
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Apple AAPL.O, Microsoft MSFT.O, Google-parent Alphabet GOOGL.O and Amazon AMZN.O account for a combined 20% of the weight of the S&P 500 .SPX and more than a third of the Nasdaq Composite .IXIC. By Lewis Krauskopf NEW YORK, Oct 21 (Reuters) - Earnings reports from the four biggest U.S. companies by market capitalization in the coming week may test a nascent rally that has seen stocks claw their way back from yet another low. “It has been continued strength for quite some time now and any deviation from that would be a concern.” Meanwhile, soaring U.S. bond yields are pressuring valuations and complicating the picture for tech and other growth stocks, whose expected future earnings are discounted steeply by higher yields.
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Apple AAPL.O, Microsoft MSFT.O, Google-parent Alphabet GOOGL.O and Amazon AMZN.O account for a combined 20% of the weight of the S&P 500 .SPX and more than a third of the Nasdaq Composite .IXIC. Still, only Apple has topped analyst estimates for earnings and revenue in both of their most recent quarterly reports, according to Refinitiv data. The P/Es for Apple and Microsoft are both about 22 times, Alphabet trades at 17.5 times, while Amazon sits at 60 times, according to Refinitiv Datastream.
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18791.0
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2022-10-23 00:00:00 UTC
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GLOBAL MARKETS-Dollar weathers suspected yen intervention, China data mixed
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AAPL
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https://www.nasdaq.com/articles/global-markets-dollar-weathers-suspected-yen-intervention-china-data-mixed
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nan
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nan
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By Wayne Cole
SYDNEY, Oct 24 (Reuters) - The U.S. dollar weathered another suspected blast of Japanese intervention to push higher on the yen on Monday, while most share markets rallied on just the hint of an eventual slowdown in U.S. rate hikes.
The dollar started in a bullish mood with an early rush to 149.70 yen JPY=EBS, before taking a sudden spill as far as 145.28 in a matter of minutes. Yet speculators seemed undaunted and took the dollar back up to 148.90 in choppy trading.
The Financial Times reported the Bank of Japan may have sold at least $30 billion on Friday in an effort to restrain the yen's weakness, which has sharply lifted the cost of imports, particularly for resources.
Japanese authorities again declined to confirm whether they had intervened, but the price action strongly suggested they had.
Any action to support the yen sits at odds with the Bank of Japan's super-easy policies and will intensify pressure for it to step back on yield curve control at its policy meeting this week.
Also moving was sterling, which see-sawed on news Boris Johnson had dropped out of running for British prime minister.
That increased the chance that former finance minister, and the market's preferred candidate, Rishi Sunak would win power and reduce the political uncertainty hanging over the pound, at least for a little while.
The news initially saw sterling GBP=D3 jump almost a cent to $1.1402, and it was last trading up 0.3% at $1.1332 as investors waited for more clarity on the contest.
Equities extended the bounce that began late in New York on Friday on talk the Federal Reserve was debating when to slow the pace of hikes and might signal a step back at its November meeting.
Markets are still priced for a rise of 75 basis points next month, but have scaled back bets on a matching move in December. The peak for rates has also edged down to around 4.87%, from above 5.0% early last week. FEDWATCH
ECB, BoC SET TO HIKE
Just the chance of a less aggressive Fed helped S&P 500 futures ESc1 add 0.5% in Asia, while Nasdaq futures NQc1 rose 0.6%. EUROSTOXX 50 futures STXEc1 jumped 1.2%, while FTSE futures FFIc1 added 0.5%.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS held steady, while Japan's Nikkei .N225 gained 1.4% and South Korea .KS11 1.6%.
Chinese blue chips .CSI300 slipped 0.8% as the yuan continued its decline and Xi Jinping secured a precedent-breaking third leadership term, picking a top governing body stacked with loyalists.
Delayed data on gross domestic product (GDP) showed the Chinese economy grew 3.9% in the third quarter, beating forecasts of 3.5%, but retail sales disappointed with a meagre rise of 2.5%.
Markets are now awaiting figures on U.S. GDP due Thursday and core inflation measures the day after. The economy is forecast to have grown an annualised 2.1% in the third quarter, while the Atlanta Fed's GDP Now estimate is up at 2.9%.
Sentiment will also be tested by some major earnings with Apple AAPL.O, Microsoft MSFT.O, Google-parent Alphabet GOOGL.O and Amazon AMZN.O all reporting.
The European Central Bank meets this week and is widely expected to raise its rates by 75 basis points, though it is less clear whether it will signal a further such move in December. 0#ECBWATCH
"Although we do not expect any 'dovish' policy signal, we maintain a bias towards a lower rate path than currently priced by markets," said analysts at NatWest Markets in a note.
"We forecast +50bp in December and +25bp in early 2023 to a 2.25% peak," they added "There is more uncertainty around QT, where beginning sales in Q1 2023 could well be announced."
The euro was off a fraction at $0.9836 EUR=EBS, having briefly been as high as $0.9899 early in the session.
The Bank of Canada is also expected to tighten by 75 basis points at its meeting this week.
The possibility of a slowdown in U.S. rate increases helped bonds pare some of their recent heavy losses, with U.S. 10-year Treasury yields at 4.19% US10YT=RR compared to a 15-year peak of 4.337% on Friday. US/
In commodity markets, gold was sidelined at $1,654 an ounce XAU=. GOL/
Oil prices were inching higher with Brent LCOc1 up 69 cents to $94.19 a barrel, while U.S. crude CLc1 rose 68 cents to $85.73.O/R
Asia stock marketshttps://tmsnrt.rs/2zpUAr4
Asia-Pacific valuationshttps://tmsnrt.rs/2Dr2BQA
(Reporting by Wayne Cole; Editing by Jacqueline Wong)
((Wayne.Cole@thomsonreuters.com; 612 9171 7144; Reuters Messaging: wayne.cole.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Sentiment will also be tested by some major earnings with Apple AAPL.O, Microsoft MSFT.O, Google-parent Alphabet GOOGL.O and Amazon AMZN.O all reporting. By Wayne Cole SYDNEY, Oct 24 (Reuters) - The U.S. dollar weathered another suspected blast of Japanese intervention to push higher on the yen on Monday, while most share markets rallied on just the hint of an eventual slowdown in U.S. rate hikes. Equities extended the bounce that began late in New York on Friday on talk the Federal Reserve was debating when to slow the pace of hikes and might signal a step back at its November meeting.
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Sentiment will also be tested by some major earnings with Apple AAPL.O, Microsoft MSFT.O, Google-parent Alphabet GOOGL.O and Amazon AMZN.O all reporting. FEDWATCH ECB, BoC SET TO HIKE Just the chance of a less aggressive Fed helped S&P 500 futures ESc1 add 0.5% in Asia, while Nasdaq futures NQc1 rose 0.6%. The European Central Bank meets this week and is widely expected to raise its rates by 75 basis points, though it is less clear whether it will signal a further such move in December.
|
Sentiment will also be tested by some major earnings with Apple AAPL.O, Microsoft MSFT.O, Google-parent Alphabet GOOGL.O and Amazon AMZN.O all reporting. By Wayne Cole SYDNEY, Oct 24 (Reuters) - The U.S. dollar weathered another suspected blast of Japanese intervention to push higher on the yen on Monday, while most share markets rallied on just the hint of an eventual slowdown in U.S. rate hikes. Any action to support the yen sits at odds with the Bank of Japan's super-easy policies and will intensify pressure for it to step back on yield curve control at its policy meeting this week.
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Sentiment will also be tested by some major earnings with Apple AAPL.O, Microsoft MSFT.O, Google-parent Alphabet GOOGL.O and Amazon AMZN.O all reporting. The news initially saw sterling GBP=D3 jump almost a cent to $1.1402, and it was last trading up 0.3% at $1.1332 as investors waited for more clarity on the contest. The peak for rates has also edged down to around 4.87%, from above 5.0% early last week.
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18792.0
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2022-10-23 00:00:00 UTC
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GLOBAL MARKETS-Dollar see saws on suspected yen intervention, shares rally
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AAPL
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https://www.nasdaq.com/articles/global-markets-dollar-see-saws-on-suspected-yen-intervention-shares-rally
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nan
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nan
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By Wayne Cole
SYDNEY, (Reuters) - The U.S. dollar went on a rollercoaster ride versus the yen on Monday as markets suspected more intervention from Japanese authorities, while Asian shares rallied on just the hint of an eventual slowdown in U.S. rate hikes.
The dollar had started in a bullish mood with an early rush up to 149.70 yen JPY=EBS, only to retreat as far as 145.28 in a matter of minutes. The dollar was last up 0.5% at 148.36 amid some wild swings.
The Financial Times reported the Bank of Japan may have sold at least $30 billion on Friday in an effort to restrain the yen's weakness, which has sharply lifted the cost of imports, particularly for resources.
Japanese authorities again declined to confirm whether they had intervened, but the price action strongly suggested they had.
Also moving was sterling, which see-sawed on news Boris Johnson had dropped out of running for British prime minister.
That increased the chance that former finance minister, and the market's preferred candidate, Rishi Sunak would win power and reduce the political uncertainty hanging over the pound, at least for a little while.
The news initially saw sterling GBP=D3 jump almost a cent to $1.1402, and to was last trading up 0.2% at $1.1328 as investors waited for more clarity on the contest.
Equities extended the bounce that began late in New York on Friday on talk the Federal Reserve was debating when to slow the pace of hikes and might signal a step back at its November meeting.
Markets are still priced for a rise of 75 basis points next month, but have scaled back bets on a matching move in December. The peak for rates has also edged down to around 4.87%, from above 5.0% early last week. FEDWATCH
Just the chance of a less aggressive Fed helped S&P 500 futures ESc1 add 0.6% in Asia, while Nasdaq futures NQc1 rose 0.8%.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS firmed 0.7%, while Japan's Nikkei .N225 gained 1.2% and South Korea .KS11 1.5%.
Markets are now watching data on U.S. gross domestic product due Thursday and core inflation measures the day after. The economy is forecast to have grown an annualised 2.1% in the third quarter, while the Atlanta Fed's GDP Now estimate is up at 2.9%.
Sentiment will also be tested by some major earnings with Apple AAPL.O, Microsoft MSFT.O, Google-parent Alphabet GOOGL.O and Amazon AMZN.O all reporting.
The European Central Bank meets this week and is widely expected to raise its rates by 75 basis points, though it is less clear whether it will signal a further such move in December. 0#ECBWATCH
"Although we do not expect any 'dovish' policy signal, we maintain a bias towards a lower rate path than currently priced by markets," said analysts at NatWest Markets in a note.
"We forecast +50bp in December and +25bp in early 2023 to a 2.25% peak," they added "There is more uncertainty around QT, where beginning sales in Q1 2023 could well be announced."
The euro was flat at $0.9849 EUR=EBS, having briefly been as high as $0.9899 early in the session.
The possibility of a slowdown in U.S. increases also helped bonds pare some of their recent heavy losses, with U.S. 10-year Treasury yields at 4.21% US10YT=RR compared to a 15-year peak of 4.337% on Friday. US/
Gold was another beneficiary, edging up 0.2% to $1,660 an ounce XAU=. GOL/
Likewise, oil prices were inching higher with Brent LCOc1 up 27 cents to $93.77 a barrel, while U.S. crude CLc1 rose 34 cents to $85.39.O/R
Asia stock marketshttps://tmsnrt.rs/2zpUAr4
Asia-Pacific valuationshttps://tmsnrt.rs/2Dr2BQA
(Reporting by Wayne Cole;)
((Wayne.Cole@thomsonreuters.com; 612 9171 7144; Reuters Messaging: wayne.cole.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Sentiment will also be tested by some major earnings with Apple AAPL.O, Microsoft MSFT.O, Google-parent Alphabet GOOGL.O and Amazon AMZN.O all reporting. By Wayne Cole SYDNEY, (Reuters) - The U.S. dollar went on a rollercoaster ride versus the yen on Monday as markets suspected more intervention from Japanese authorities, while Asian shares rallied on just the hint of an eventual slowdown in U.S. rate hikes. The Financial Times reported the Bank of Japan may have sold at least $30 billion on Friday in an effort to restrain the yen's weakness, which has sharply lifted the cost of imports, particularly for resources.
|
Sentiment will also be tested by some major earnings with Apple AAPL.O, Microsoft MSFT.O, Google-parent Alphabet GOOGL.O and Amazon AMZN.O all reporting. FEDWATCH Just the chance of a less aggressive Fed helped S&P 500 futures ESc1 add 0.6% in Asia, while Nasdaq futures NQc1 rose 0.8%. The European Central Bank meets this week and is widely expected to raise its rates by 75 basis points, though it is less clear whether it will signal a further such move in December.
|
Sentiment will also be tested by some major earnings with Apple AAPL.O, Microsoft MSFT.O, Google-parent Alphabet GOOGL.O and Amazon AMZN.O all reporting. By Wayne Cole SYDNEY, (Reuters) - The U.S. dollar went on a rollercoaster ride versus the yen on Monday as markets suspected more intervention from Japanese authorities, while Asian shares rallied on just the hint of an eventual slowdown in U.S. rate hikes. 0#ECBWATCH "Although we do not expect any 'dovish' policy signal, we maintain a bias towards a lower rate path than currently priced by markets," said analysts at NatWest Markets in a note.
|
Sentiment will also be tested by some major earnings with Apple AAPL.O, Microsoft MSFT.O, Google-parent Alphabet GOOGL.O and Amazon AMZN.O all reporting. By Wayne Cole SYDNEY, (Reuters) - The U.S. dollar went on a rollercoaster ride versus the yen on Monday as markets suspected more intervention from Japanese authorities, while Asian shares rallied on just the hint of an eventual slowdown in U.S. rate hikes. The peak for rates has also edged down to around 4.87%, from above 5.0% early last week.
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18793.0
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2022-10-23 00:00:00 UTC
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Weekly Preview: Earnings To Watch (AAPL, AMZN, GOOG, META, MSFT) - Week of October 23
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AAPL
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https://www.nasdaq.com/articles/weekly-preview%3A-earnings-to-watch-aapl-amzn-goog-meta-msft-week-of-october-23
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nan
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nan
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H
as all of the bad news been priced into the market? Have stocks finally reached bottom, again? Stocks closed out Friday on a strong note, booking strong gains for the day and for the week, suggesting that “yes” might be the answer for both of the questions. The trading action this past week was spurred by, among other things, investor optimism that the Federal Reserve would be less hawkish after its November meeting.
Friday’s activity, following last week’s yearly lows, showed not only an aggressive return to risk assets, but also to the high-growth names which were beaten up amid recession fears. This week's continued resurgence has investors seemingly more confident in the upcoming earnings results, particularly in tech stocks. All eleven S&P sectors finished the day in positive territory. Of the roughly 21% of S&P 500 companies have reported earnings so far, almost three-quarters have beaten analyst expectations, marking a strong start to the third quarter earnings season.
The Dow Jones Industrial Average jumped Friday, rising up 748.97 points, or 2.47%, to end Friday's session at 31,082.56. Among the Dow’s notable gainers were Apple (AAPL), Salesforce (CRM), Microsoft (MSFT) and Walt Disney (DIS). The S&P 500 added 86.97 points, or 2.37%, finishing at 3,752.75, while the tech-heavy Nasdaq Composite gained 244.87 points, or 2.31%, to close at 10,859.72. The Nasdaq was powered by, among others, the 8% rise in shares of Netflix (NFLX) and an 3.45% gain in Tesla (TSLA).
Compounded by Friday’s rally, all three major averages ended with strong weekly gains. Leading the way was the tech-heavy Nasdaq Composite which closed out the week with a gain of 5.2% higher. The Dow Jones Industrial Average added 4.8% for the week, while the S&P 500 rose 4.9%. The main question heading into the week is whether this recent rally will continue, particularly as Big Tech comes into focus with Apple (AAPL), Amazon (AMZN) and Microsoft (MSFT) slated to announce their results?
While it’s still early in the earnings reporting cycle, the guidance they provide for the current quarter and beyond will reveal their level of confident and ability to navigate inflationary headwinds. Here are the names to keep an eye on for this week.
Alphabet (GOOG , GOOGL) - Reports after the close, Tuesday, Oct. 25
Wall Street expects Alphabet to earn $1.26 per share on revenue of $70.68 billion. This compares to the year-ago quarter when earnings came to $1.40 per share on revenue of $65.12 billion.
What to watch: Shares of the Google and YouTube parent have fallen 31% year to date, underperforming the 23% decline in the S&P 500 index. The stock has fallen 13% and 24% in the respective three months and six months, while only slightly outperforming the losses in the tech-heavy Nasdaq Composite during that span. Amid various macroeconomic concerns such as rising inflation, the tech conglomerate has suffered a slowdown in digital advertising. This is likely to persist given the recent drop in Snap (SNAP) which recently released results of a brutal third quarter that missed Street's estimates. That said, execution hasn’t been an issue for Google. In the last two years, the company’s quarterly reports have beaten revenue estimates for eight consecutive times, while missing on profit estimates just once in that span. For this quarter, however, the Street forecasts a 9% year-over-year drop in EPS, while revenue is estimated to grow at about 8.5% compared to the same quarter in 2021. Digital advertising, which includes YouTube ads, Search ads and Network ads, remains the company's major revenue and profitability driver. Google's advertising business grew 12% last quarter to $56.3 billion, but advertising is expected to see some weakness. On Tuesday, assuming prolonged slowing trends in the digital ad business, investors will look to see if Google’s cloud business, which currently accounts for less than 10% of Google's total revenues, can be a strong offsetting factor.
Microsoft (MSFT) - Reports after the close, Tuesday, Oct. 25
Wall Street expects Microsoft to earn $2.31 per share on revenue of $49.73 billion. This compares to the year-ago quarter when earning were $2.27 per share on $45.32 billion in revenue.
What to watch: The market continues to remains broadly bullish on Microsoft, particularly for this quarter ahead of its fiscal 2023 Q1 earnings report. The company’s fast-growing Azure cloud platform and the Intelligent Cloud business are cornerstones of what is expected to be another banner year. Microsoft forecasted a revenue range of $20.3 billion to $20.6 billion in Intelligent Cloud revenues in the first fiscal quarter. Of that total, the mid-point assumes 20% year-over-year growth, compared to revenues of $17 billion in the year-earlier period. Just as impressive, Azure and cloud services grew revenues 40% year over year in the last-reported quarter. Likewise, investors expect Azure to have sustained strong growth in the just-ended quarter. That’s not the same for the PC business, however, which has experienced some weakness. Tech research firm Gartner estimates PC shipments to have declined roughly 20% in this third quarter, which could pressure Microsoft’s Personal Computing business and possibly its Windows revenues, which declined 2% year-over-year in the last quarter due to inflationary pressures, supply chain challenges, and a slowing PC market. Nevertheless, these headwinds aside, Microsoft still has plenty of growth runway ahead from these well-established trends. On Tuesday, the company’s guidance will gauge how confident management feels about its growth potential and the company’s ability to navigate through these challenges.
Meta Platforms (META) - Reports after the close, Wednesday, Oct. 26
Wall Street expects Meta to earn $1.89 per share on revenue of $27.41 billion. This compares to the year-ago quarter when earnings came to $3.22 per share on revenue of $29.01 billion.
What to watch: Amid the recent tech selloff, Meta shares have been punished, falling 35% and 58% in the respective six months and nine months. Down 61% year to date and 62% over the past year, it would seem the market no longer believes in the company’s growth capabilities. Slowing user growth and advertising growth at its core Facebook and Instagram products have scared investors away. As we discussed above with Snap's earnings, the market is bracing for another tough quarter from Meta’s digital ad business. But even amid inflationary cost pressures and struggles with daily active users, Meta can still beat profit expectations which are low. Heading into the quarter, Meta stock was listed among Citigroup's top picks in the Internet space. Analysts Ronald Josey said Meta presented a "compelling" risk/reward opportunity at current levels. Josey who has a Buy rating on the stock with a $222 price target price, implying 67% upside, says Q3 expectations are "relatively muted given industry chatter around engagement, social media competition, and monetization.” In other words, Meta should easily beat the Street estimate. The company on Wednesday will nonetheless need to show improvements in its Reality Labs, demonstrating that the business can emerge as Meta’s profit center that it is expected to become.
Apple (AAPL) - Reports after the close, Thursday, Oct. 27
Wall Street expects Apple 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.
What to watch: Apple shares have not performed as well as investors would have liked, but the company is doing a solid job navigating through the various headwinds that have impacted its business. Supply chain disruptions and rising inflation have been among the things that have pressured the company's revenue and profits. Last week the company reportedly cut production of its iPhone 14 Plus model less than two weeks after it debuted on October 7 at a price of $899. However, 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 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. It's worth noting that the iPhone 14 Pro and iPhone 14 Pro Max are not subjected to production cuts. Both models currently have long wait times, suggesting strong 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 macro pressures. While 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, there is still plenty of value in this quality name. Investors are hoping for more clarity and conviction on the bullish thesis on Thursday.
Amazon (AMZN) - Reports after the close, Thursday, Oct. 27
Wall Street expects Amazon to earn 22 cents per share on revenue of $127.57 billion. This compares to the year-ago quarter when earnings came to 31 cents per share on revenue of $110.81 billion.
What to watch: Amazon’s decelerated profit growth has been one the key reasons for the stock’s struggles so far this year. The company’s investments its workforce, along with research and development, has taken a sizable portion of what would have otherwise fallen to its operating income bucket. These expenses, along with the recent expansion of its data centers and logistics capabilities, have hurt its bottom line, culminating in a Q1 reported loss of $3.8 billion. Not only was this its first quarterly loss in seven years, its operating income fell from $8.9 billion to $3.7 billion, while its operating margin dropped by 5% to 3.2%. In response, Amazon stock has gotten punished, falling some 45% from its 52-week high of $188 (split adjusted). But fast forward two quarters later, investors expect a different story. Shares have risen close to 10% over the past week because investors are anticipating the company’s aggressive spending to eventually bear fruit. Not only will these investments help widen Amazon’s competitive moat, but Amazon is poised to deliver strong returns on these investments, while delivering sustained cash flow generation. On Thursday beyond a top- and bottom line beat, investors will want strong profit guidance to support the long-term return on investment thesis.
The views and 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 main question heading into the week is whether this recent rally will continue, particularly as Big Tech comes into focus with Apple (AAPL), Amazon (AMZN) and Microsoft (MSFT) slated to announce their results? Among the Dow’s notable gainers were Apple (AAPL), Salesforce (CRM), Microsoft (MSFT) and Walt Disney (DIS). Apple (AAPL) - Reports after the close, Thursday, Oct. 27 Wall Street expects Apple to earn $1.27 per share on revenue of $88.9 billion.
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Among the Dow’s notable gainers were Apple (AAPL), Salesforce (CRM), Microsoft (MSFT) and Walt Disney (DIS). The main question heading into the week is whether this recent rally will continue, particularly as Big Tech comes into focus with Apple (AAPL), Amazon (AMZN) and Microsoft (MSFT) slated to announce their results? Apple (AAPL) - Reports after the close, Thursday, Oct. 27 Wall Street expects Apple to earn $1.27 per share on revenue of $88.9 billion.
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Apple (AAPL) - Reports after the close, Thursday, Oct. 27 Wall Street expects Apple to earn $1.27 per share on revenue of $88.9 billion. Among the Dow’s notable gainers were Apple (AAPL), Salesforce (CRM), Microsoft (MSFT) and Walt Disney (DIS). The main question heading into the week is whether this recent rally will continue, particularly as Big Tech comes into focus with Apple (AAPL), Amazon (AMZN) and Microsoft (MSFT) slated to announce their results?
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Apple (AAPL) - Reports after the close, Thursday, Oct. 27 Wall Street expects Apple to earn $1.27 per share on revenue of $88.9 billion. Among the Dow’s notable gainers were Apple (AAPL), Salesforce (CRM), Microsoft (MSFT) and Walt Disney (DIS). The main question heading into the week is whether this recent rally will continue, particularly as Big Tech comes into focus with Apple (AAPL), Amazon (AMZN) and Microsoft (MSFT) slated to announce their results?
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18794.0
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2022-10-23 00:00:00 UTC
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Snap's Stock Crashes as Apple's Policy Changes Crimp Advertiser Demand
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AAPL
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https://www.nasdaq.com/articles/snaps-stock-crashes-as-apples-policy-changes-crimp-advertiser-demand
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Snap's (NYSE: SNAP) stock crashed more than 20% on the day following its earnings announcement. The social media company is grappling with policy changes by Apple (NASDAQ: AAPL) that make it harder for it to sell targeted advertising.
Stock prices used were the afternoon prices of Oct. 20, 2022. The video was published on Oct. 22, 2022.
10 stocks we like better than Snap Inc.
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*Stock Advisor returns as of September 30, 2022
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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The social media company is grappling with policy changes by Apple (NASDAQ: AAPL) that make it harder for it to sell targeted advertising. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services.
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The social media company is grappling with policy changes by Apple (NASDAQ: AAPL) that make it harder for it to sell targeted advertising. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Apple.
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The social media company is grappling with policy changes by Apple (NASDAQ: AAPL) that make it harder for it to sell targeted advertising. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Parkev Tatevosian has positions in Apple.
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The social media company is grappling with policy changes by Apple (NASDAQ: AAPL) that make it harder for it to sell targeted advertising. 10 stocks we like better than Snap Inc. The Motley Fool has positions in and recommends Apple.
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18795.0
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2022-10-22 00:00:00 UTC
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Dividend Stocks That Do More Than Just Boost Their Payout
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AAPL
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https://www.nasdaq.com/articles/dividend-stocks-that-do-more-than-just-boost-their-payout
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In this podcast, Motley Fool producer Ricky Mulvey caught up with Motley Fool analysts Matt Argersinger and Anthony Schiavone to discuss:
Surprising companies that have beaten the market over a 10-year period.
The Dividend Knights stock screen.
Listener questions about dividend stocks.
One interesting income opportunity.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Walmart
When our award-winning analyst team has an investing tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Walmart wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
Stock Advisor returns as of 2/14/21
This video was recorded on October 15, 2022.
Matt Argersinger: I'm really excited. I see a ton of opportunities and I look at this short-term volatility we're seeing and this myopic behavior of moving away from these really high-quality companies into Treasury bonds, so to speak, or looking for yields elsewhere, or just into cash, really. I think that's going to be a big mistake in the long run.
Chris Hill: I'm Chris Hill and that's Motley Fool senior analyst, Matt Argersinger. If you're an investor who's in it for the long haul, now could be a great time to look for opportunities. Ricky Mulvey caught up with Matt and Anthony Schiavone for a conversation about a brand-new category of investing royalty, the Dividend Knights. They dig into a few surprising stocks that have crushed the market and a lot more.
Ricky Mulvey: We spoke about a quarter ago. Stock market hasn't done so hot since then, but how have the dividend payers been holding up in comparison to the broad S&P 500 in this tough year?
Anthony Schiavone: Well, yeah, it has been a tough few months and the dividend payers have not held up as well as I would've thought. In this market, in this bear market, I guess, it's essentially everything has really been hit hard. That's especially been the case for real estate investment trusts. We've talked to REITs before and generally in a downturn like this, where there's a lot of volatility, dividend payers, REITs will hold up a lot better, but I don't think that's the case this time if you look at just how they performed and probably it has a lot to do with the fact that unlike previous downturns, this downturn is really driven by higher interest rates.
Matt Argersinger: Yeah, the Fed raised interest rates. How does that affect the dividend payers? Because the immediate part of my brain would think that investors would want a dividend-paying stock, cost of capital goes up higher, which makes paying money out to shareholders directly a more attractive opportunity.
Anthony Schiavone: I would believe that as well. I think what's happening though is the rates have come up so much so fast that if you're an investor you're looking at a dividend-paying company or REIT that was yielding 3%, 4%, and all of a sudden, I can get that in a risk-free Treasury yield or Treasury bond, I should say. That subtly feels a lot better and I'm worried there's a recession, I'm worried about more volatility in the market, I'm worried about any kind of geopolitical thing that might blow things up. All of a sudden I'm getting pretty decent yield in Treasuries, why take the added risk of going into equities? I think that's part of the story, but I do think it's really a short-term story.
I think, and I'm sure Anthony would agree that, the valuations we're seeing in the market today with a lot of dividend companies and REITs are just the best we've seen in many years. I'm really excited. I see a ton of opportunities and I look at this short-term volatility we're seeing and this myopic behavior of moving away from these really high-quality companies into Treasury bonds, so to speak, or looking for yields elsewhere or just into cash really, I think that's going to be a big mistake in the long run.
Ricky Mulvey: More broadly, is now the time? As dividend investors, are you looking for the companies that are already paying a high yield? Maybe their stock got hit and you think they can continue to pay that high yield? Or is now when you're looking at companies with more room for dividend growth?
Matt Argersinger: You always get this yield versus growth. The question of yield versus growth, do I go for the high-yielding dividend company? Or do I go for the dividend company that's growing? Maybe it doesn't have as high a yield, but it's able to grow their dividend at a faster rate over time. It all really comes down to time horizon. Anthony and I have done some research that really shows that dividend growth companies tend to be the ones that outperform over long periods of time. You can see that if you run through a quick hypothetical example. Let's say you had one stock that was yielding 4%, and you think, "Okay, the share price is going to grow 6%. It's yielding 4%. I'm getting roughly a 10% total return. Or I have stock B here, which is same share price, let's say. Its dividend yield is only 2%, but it can grow its share price at 7%.
How does that work out over time? By the way, the stock B can grow its dividend at 12%. Stock A, the high-yield is only going to grow at dividend 4%. Those are really two realistic scenarios you can find in the market. What's interesting, after five years, the high-yielding dividend payer is outperforming also paying you more dividends. At the 10-year mark, those two scenarios are equivalent, stock A and stock B. They both returned about the same, they're both yielding about the same. Even though stock B of course started with that really low dividend yield at the 15-year mark, stock B, the low dividend yield is clearly outperforming, paying you more dividends. Then at the 20-year mark is when things really work out. Not only is stock B vastly outperforming stock A, its dividend yield or its dividend payout per year is almost three times that of stock A. Again, to mention your time horizon, but the longer you can invest, dividend growth is where you want to be.
Ricky Mulvey: Long time, look for the dividend growers. That makes sense. This is one of those times where I wish that we could just broadcast that chart onto your phone, or maybe not car screen if you're driving right now, but this is one of the limits of audio podcasting definitely come to bear. Let's talk about labels because the dividend companies share their labels. You got your achievers, you've got your aristocrats, you got your champions, you got your kings. We can walk through what those mean. The achievers, that's 10 years of raises, the aristocrats 25-plus years of dividend raises and in the S&P 500. Then your kings have raised dividends for 50-plus years, which is a long time. You guys have a brand new jam, Anthony and Matt. But before we dive into your new flavor that have beaten the market, is there a particular screen that you guys like to use?
Matt Argersinger: Yeah, I'd love to get Ant's thoughts as well on that. But well, I tend to think, I love the list, by the way, I love the aristocrats, I love the kings. I'm so interested in these remarkable companies that just can pay a dividend and increase their dividend for so many consecutive years, it's remarkable. But I think what's missing from a lot of those lists is that, I love getting dividends. I love seeing companies grow their dividends. But what I want to see are these companies beating the S&P 500? Are they beating the overall market? Are they generating a total return that's outperforming the market? Because, of course, as an investor, I always have a choice of investing in a very cheap index fund. That is one particular thing that I screen for, company is paying dividend, great. They're growing that dividend, great. They have low payout ratio, great. But have they beaten the market? Is the management team running that company allocating capital well and outperforming the broader market? I think that's really important.
Anthony Schiavone: As far as my screening process goes, I tend to keep my screens fairly simple. I look for companies with a strong history of earnings-per-share growth, dividend-per-share growth. Sometimes I'll also screen for dividend payout ratio. That's typically less than 60% because I think that leaves more room for dividend growth in the future. Then from there, I like to take more of a qualitative approach and look for companies that have some recurring revenue model. Because my thought is that consistent revenue generation will lead to consistent dividend growth. Then finally, I look to see how the businesses have performed during prior economic downturns, just to get a sense of how resilient and cyclical the company is. That's the quick screen that I do.
Ricky Mulvey: Matt to your earlier point that the previous screens, none of them look for market beaters. It's not just have you paid a dividend, but can you increase it by one penny? That's the only thing that it looks for and that doesn't necessarily matter to investors if you're not beating the market in a meaningful way.
Matt Argersinger: Absolutely right. I think a lot of the aristocrats, although there are wonderful companies, a lot of them love to just hold onto that status and so you'll find and this always drives Anthony and me crazy is you'll find a company that exactly raises their dividend by a penny. Because, of course, that counts as an increase, so it keeps their dividend increase streak alive and keeps them in those aristocrat or king rankings.
Ricky Mulvey: Let's talk about the new screen. You guys ready to get into the Dividend Knights?
Matt Argersinger: Let's do it.
Ricky Mulvey: This is a screen that you set up, so I'm not taking any thunder on this. How do you screen to find the Dividend Knights?
Matt Argersinger: It really goes back to what I was talking about earlier about beating the market. We have these dividend achievers out there in these dividend aristocrats. But I wanted to find companies that paid a dividend for 10 consecutive years, that have grown the dividend, but not just grown it by 1%, 2%, or 5%. I want companies that have grown their dividend by more than 10% annually over the last 10 years and it's kind of like the rule of 10. All these things are 10-year increments. I want them to have beaten the market, beaten the S&P 500 total return over the last 10 years.
You paid the dividend for 10 consecutive years. You've grown that dividend by more than 10% annually over 10 years, and you've beaten the S&P 500's total return for last 10 years. I threw in a few other factors just to control for quality. I wanted each company to have at least $1 billion in annual revenue, had to be traded on a major U.S. exchange. We're not dealing with a lot of international companies or pink sheet companies and the P/E ratio had to be less than 30 for companies on this list. Just to control for quality.
Ricky Mulvey: You run the screen and then most of what you get when you're looking at the list is just, honest, a bunch of boring companies. You got Nike, Microsoft, Kroger, Allstate.
Anthony Schiavone: There you go.
Ricky Mulvey: Are you still listening?
Matt Argersinger: Hopefully, we didn't lose any listeners. But it does. It returns about 133 companies. A lot of companies, they're very much like the ones you mentioned. UPS is another one that's on the list. Just really companies we all know that are fairly boring. That we see almost every day in life. You've got companies like Microsoft that you mentioned. Starbucks is on there, Target, Vail Resorts, JPMorgan. These might be boring and steady companies, but they've delivered an average annual return of 17.6% over the last 10 years. That crushes the overall market. The S&P 500 over last 10 years is up less than 12% annually. These might be fairly obvious companies, but they've done extraordinarily well for investors.
Ricky Mulvey: Each of you picked one obvious Dividend Knight to spotlight. Actually, let's shake it up a little bit, Anthony, you want to go first?
Anthony Schiavone: Yeah. The one that was obvious to me was Union Pacific. This is a company that has paid a dividend for, listen to this, 123 consecutive years. Since the 1800, this company has paid annual dividend every single year. Just think about all the challenges that the railroad industry has faced over those years, including strict regulatory hurdles and disruptive forces like the creation of the interstate highway system, also with the rise of airfreight, as well. But over that time, Union Pacific has still been able to raise that dividend.
I think one of the main reasons why it's a Dividend Knight is that they essentially own a duopoly with BNSF Railroad for the western half in United States and that the barriers to entry in this industry are just massive. I think that creates a strong economic moat where they can really focus on improving efficiency, reducing costs, and that ultimately improves profitability. The management team has done a great job returning that capital to shareholders through dividend increases as well as share repurchases. This one wasn't very surprising to me at all.
Ricky Mulvey: You're really throwing it back when Dwight Eisenhower's interstate highway plan is your disruptor.
Matt Argersinger: I just want to say Union Pacific, it's amazing. Over the last 10 years, they've returned over 15% to shareholders. They've grown their dividend by almost 16% annually. A company that's over 120 years old, to be able to put up that kind of growth is so impressive. My obvious one, and it's what we've talked about before on the show, The Home Depot. I think a lot of us say, The Home Depot has been a very successful company, it's grown, it's delivered a heck of a return to investors, almost 20% annually over the last 10 years. But I don't think a lot of investors know or appreciate that it's grown its dividend and it's paid a dividend for decades, but just in the last 10 years, it's grown its dividend by almost 21% annually.
If you look at all these companies in aggregate, on average, they've delivered a total return of 17.6% for the last 10 years. On average, they've grown their dividend by 17.4%. So the total return is really highly correlated to the rate at which these companies have grown their dividend. You see that up and down. Again, we talked earlier about dividend growth. That really is one of the key factors. If you're looking to beat the market over time, how fast can this company grow its dividend? If you have a good idea of that, if it's, say, double-digits, it's highly likely that stock is going to return double-digits as well.
Ricky Mulvey: Not every single company on the Dividend Knights list is as obvious as let's say Microsoft or Union Pacific. There were a couple of extraordinarily surprising companies to me on that, one of which was Primerica, lets get 50 of your closest friends and family together to sell some life insurance. Market beater and it pays a dividend. Then when you get home or if you're able to right now, imagine what you think the stock chart for Dillard's would look like and then pull up DDS. Because that has been an absolute market crusher, that also pays a dividend. Then Activision Blizzard, which tech video game company, I wouldn't have assumed that it paid a dividend. Any of those surprises that you want to talk about are particularly highlight?
Matt Argersinger: I think Dillard's is definitely a surprise to me. I would never have imagined a department store. I think a mall-based department store would show up on a Dividend Knights list for the screen that we just did over the last 10 years. But yeah, its total return is over 15%. It's grown its dividend annually by almost 16%. I can't explain it other than the fact that maybe its geographic thing. A lot of other department stores are located in the South and Midwest, hasn't been maybe as affected as the online shopping and e-commerce tailwinds that we've seen over the last 10 years. Maybe they just done a great job of managing the store and the experience there. I'm fascinated by it.
Ricky Mulvey: Sometimes on Motley Fool Money, it's OK to say, "I don't know." I could make up some reasons. When I looked at their income statements, looks like they've done a better job at keeping like SG&A costs down compared to some of their peers like Macy's. They own a lot of their stores, which was good going into the pandemic. They're fending off. It looks like they fended off some short squeezes that can help with stock price, too, but it's one that absolutely befuddles me. I listed some surprising ones there. Anyone that you want to particularly put the spotlight on for the Dividend Knights?
Anthony Schiavone: Yes. One that jumped off the page to me was Vail Resorts. They're the largest owner of ski resorts in North America. I was surprised to see this one on the list because they actually suspended their dividend during the pandemic, since resorts were forced to close. However, they still made a dividend payment in 2020 prior to COVID, and they've raised it since then. That's why they still made the Dividend Knights list. I'm glad they did because they've been such a great dividend payer prior to the pandemic. I believe they've grown their dividend at an annualized rate of 26%, which is very impressive. The fact that they had to suspend their dividend wasn't necessarily management's fault. There's there's nothing they can do about that. I like the fact that they're included on here. If you look at any type of dividend growth list, they're probably not going to show up because they suspended that dividend. But I think they definitely deserve to be on dividend growth list.
Matt Argersinger: That is the beauty of Dividend Knights of our approach versus the Dividend Achievers or Dividend Aristocrats is because there are some great companies that just for whatever reason, because they're being conservative or they're worried about capital allocation, they might temporarily suspend their dividend or cut their dividend. If you do that, automatically, you're right off all those other lists. But you can still be on Dividend Knights because the growth of your dividend, even if you cut it a bit, might still be over 10%. Even if it's flat or you cut it, and so it's still makes our list, which I think is the powerful thing. I don't care if accompany cut its dividend, but it's still grown its dividend by 10% annually over the last 10 years. I'm still very interested.
Ricky Mulvey: Let's talk a little bit about rates. Because when you're screening for price earnings, that unfortunately leaves a lot of reeds out of the equation. First of all, Matt, how dare you? Second of all, what do you get when you run a funds from operation, which is the preferred metric for reeds versus that price to earnings screen.
Matt Argersinger: This was surprising. Seventy-two companies made the initial screen, but only six REITs, believe it or not, six REITs have both beaten the market and raised the dividend by an annual rate of 10% over the last 10 years. It's a really exclusive list. The list is American Tower, CubeSmart, Equity Lifestyle Properties, Extra Space Storage, Life Storage, and Prologis. It's like industrial self-storage dominated REITs right here. That make our Dividend Knights list. But I was surprised it was so few.
Ricky Mulvey: Podcasts at fool.com is the email for the show. We appreciate your questions. Been getting some questions about dividends in particular, so I thought I'd run it by you. This one comes from Jason in Great Britain. He asks, I was wondering if you could talk about Yara International. I was put onto this by a friend in the agricultural sector, it's got a great dividend yield of 8.25% and with fertilizer in high demand and the stock beaten down is now a good time to open a position.
Matt Argersinger: Yeah, thanks, Jason, I took a quick look at this one. It's an interesting company. It's got a good history. I think it's based in Norway. What I worry about is, it's had a really big surge recently in both its profits and its margins. I suspect that's obviously because of higher fertilizer prices, higher commodity prices, greater agricultural demand, especially in places like Europe right now where there's a lot of supply constraints. Typically accompany like Yara will tie its earnings to dividends. What's happening recently as earnings have surged and so has its dividend and therefore you could this really great dividend yield. But I could see that dividend coming down as commodity prices reverse, their earnings come down. It might be a great company, I would just not rely on that dividend yield you're seeing to make a judgment on whether or not to invest in the company because it's likely that the earnings are a bit inflated right now.
Ricky Mulvey: Next question comes from Lau Chu. I've always lean toward value overgrowth and pick stocks with a low debt-to-equity ratio. For this reason, I've stayed away from Home Depot with a ratio of 319. Do you think Home Depot's debt load could impact its ability to pay a dividend in the future? Is it's still a quality company?
Matt Argersinger: It's a great question, Lau Chu. Home Depot's debt-to-equity ratio is a bit misleading right now. The company has been aggressively buying back it's shares, which reduces shareholders equity and tends to inflate that debt-to-equity ratio. If you want to look at a better balance sheet measure, I would look to debt to EBITDA or essentially you're looking at debt to the company's pre-tax operating earnings. If you do that, you get a multiple of 1.7 right now. That's only slightly higher than the multiple HD had five years ago. From an operating basis, I wouldn't get worried at all about their balance sheet, and yes, as you know, we've talked about Home Depot, we talked about early in the show. I think it's a really well-managed company. It's got a low dividend payout ratio, which can help it absorb any shocks in earnings if we do hit into recession.
Ricky Mulvey: Last question comes from Sandra in Georgia. Are there any non-dividend paying companies that are mature enough that you think they should start paying one soon?
Anthony Schiavone: Yeah, so I'm going to cheat a little bit here, but I'm going to go with Walt Disney. The company suspended its dividend at the beginning of the pandemic, mostly due to the uncertainty in the economy and the fact that their theme parks are closed. Since then, businesses picked up pretty steadily, but management's been more focused on reinvesting earnings back into the business to help grow Disney Plus and some of their other growth initiatives. If I'm not mistaken, I think Disney is one of only three companies in the Dow Jones Industrial Average who doesn't pay a dividend. Management has said that dividends remain a part of their capital allocation strategy. Once we see some more normalization in the economy and that uncertainty fizzles out, we might see a dividend reinstatement from Disney.
Ricky Mulvey: Sounds like the theme parks are all the way back. We'll see if they get one for the dividend. Matt, what you got?
Matt Argersinger: Disney is a great one. I would go with Alphabet, Google. Than one always comes to mind to me is one that I think will start paying a dividend pretty soon. I think it's going to follow in the steps of Apple, Microsoft, and some of the other big tech companies. The business is just so reliably great now from enough, from a cash flow perspective, and I wonder at some point they're going to say, you know what, we invest a lot of capital into these far-flung ventures. Lot of them don't work out, some have, but we're producing a lot of excess cash flow. Let's start returning some of that to shareholders. I want to say within the next three years, Alphabet starts paying a dividend.
Ricky Mulvey: We'll check up on it. Let's wrap it up. On The Dividend Show on Motley Fool Live, you guys always like to highlight an interesting income opportunity. What do you have for the listeners of Motley Fool Money?
Anthony Schiavone: Well, there have been so many interesting discoveries with this new Dividend Knights list that we're putting together, for example, there's a company called Pool Corporation, P-O-O-L, and that's the ticker as well. As you might guess, they specialize in pool equipment, pool maintenance, landscape products around your pool. It's been a monster performer. It's up 24% annually. Since 2012, it's raised its dividend annually by more than 20%. I'm just fascinated by the business, it seems so simple. Sometimes it goes to show, we spent a lot of time as investors looking for complex companies or companies that are growing at x rates and disrupting other industries. Here's this simple company that just specializes in pool equipment and it's been a monster. If you put $10,000 in the pool ten years ago, you'd have almost $100,000 right now. That's beautiful to me.
Ricky Mulvey: We've got pool companies. We got Dillard's, we got Primerica, we got Kroger, we got Home Depot. That has been The Dividend Show. Anthony Schiavone, Matt Argersinger, thank you so much for your time.
Anthony Schiavone: Thanks, Ricky.
Matt Argersinger: Thank you.
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.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Anthony Schiavone has positions in Vail Resorts. Chris Hill has positions in Activision Blizzard, Alphabet (A shares), Alphabet (C shares), American Tower, Apple, Home Depot, JPMorgan Chase, Microsoft, Nike, Starbucks, Target, and Walt Disney. Matthew Argersinger has positions in Activision Blizzard, Alphabet (C shares), American Tower, Home Depot, Life Storage Inc, Nike, Starbucks, Vail Resorts, and Walt Disney and has the following options: short December 2022 $100 puts on Alphabet (A shares), short December 2022 $195 puts on American Tower, short January 2023 $95 puts on Prologis, short November 2022 $105 puts on Walt Disney, and short November 2022 $130 calls on Walt Disney. Ricky Mulvey has positions in Home Depot and Walt Disney. The Motley Fool has positions in and recommends Activision Blizzard, Alphabet (A shares), Alphabet (C shares), American Tower, Apple, Home Depot, JPMorgan Chase, Microsoft, Nike, Prologis, Starbucks, Target, Union Pacific, Vail Resorts, and Walt Disney. The Motley Fool recommends Life Storage Inc and Pool 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, short March 2023 $130 calls on Apple, and short October 2022 $85 calls on Starbucks. 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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Because the immediate part of my brain would think that investors would want a dividend-paying stock, cost of capital goes up higher, which makes paying money out to shareholders directly a more attractive opportunity. Just think about all the challenges that the railroad industry has faced over those years, including strict regulatory hurdles and disruptive forces like the creation of the interstate highway system, also with the rise of airfreight, as well. I think one of the main reasons why it's a Dividend Knight is that they essentially own a duopoly with BNSF Railroad for the western half in United States and that the barriers to entry in this industry are just massive.
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Matthew Argersinger has positions in Activision Blizzard, Alphabet (C shares), American Tower, Home Depot, Life Storage Inc, Nike, Starbucks, Vail Resorts, and Walt Disney and has the following options: short December 2022 $100 puts on Alphabet (A shares), short December 2022 $195 puts on American Tower, short January 2023 $95 puts on Prologis, short November 2022 $105 puts on Walt Disney, and short November 2022 $130 calls on Walt Disney. The Motley Fool has positions in and recommends Activision Blizzard, Alphabet (A shares), Alphabet (C shares), American Tower, Apple, Home Depot, JPMorgan Chase, Microsoft, Nike, Prologis, Starbucks, Target, Union Pacific, Vail Resorts, and Walt Disney. The Motley Fool recommends Life Storage Inc and Pool 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, short March 2023 $130 calls on Apple, and short October 2022 $85 calls on Starbucks.
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Even though stock B of course started with that really low dividend yield at the 15-year mark, stock B, the low dividend yield is clearly outperforming, paying you more dividends. But I don't think a lot of investors know or appreciate that it's grown its dividend and it's paid a dividend for decades, but just in the last 10 years, it's grown its dividend by almost 21% annually. Matt Argersinger: That is the beauty of Dividend Knights of our approach versus the Dividend Achievers or Dividend Aristocrats is because there are some great companies that just for whatever reason, because they're being conservative or they're worried about capital allocation, they might temporarily suspend their dividend or cut their dividend.
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Matt Argersinger: That is the beauty of Dividend Knights of our approach versus the Dividend Achievers or Dividend Aristocrats is because there are some great companies that just for whatever reason, because they're being conservative or they're worried about capital allocation, they might temporarily suspend their dividend or cut their dividend. We'll see if they get one for the dividend. The Motley Fool has positions in and recommends Activision Blizzard, Alphabet (A shares), Alphabet (C shares), American Tower, Apple, Home Depot, JPMorgan Chase, Microsoft, Nike, Prologis, Starbucks, Target, Union Pacific, Vail Resorts, and Walt Disney.
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18796.0
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2022-10-22 00:00:00 UTC
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This Dow Jones Stock Is a No-Brainer for Dividend Growth
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AAPL
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https://www.nasdaq.com/articles/this-dow-jones-stock-is-a-no-brainer-for-dividend-growth-2
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nan
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nan
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The Dow Jones Industrial Average has been the standard for blue chip stocks for decades, and while it's lost some sway in the market, the components are still some of the best businesses in the world.
As we search for blue chips that still have growth ahead, one Dow Jones Industrial Average stock sticks out to me. Apple (NASDAQ: AAPL) generates more cash than it knows what to do with, and it has the potential to pay a higher dividend for the foreseeable future.
Apple's earnings machine
You can see below just how big Apple's business has become. The company generated over $100 billion in free cash flow over the last year and there's no indication that's going to slow down anytime soon.
AAPL Revenue (TTM) data by YCharts
Apple has arguably the best product of all time in the iPhone, a growing services business, and improving personal computers and accessories. The combination is an extremely sticky set of products for users.
Apple's fortress balance sheet
Apple's business is strong and it could pay a huge dividend, but before we talk about what it could pay out, we need to look at the balance sheet. You can see below that the company has a large amount of debt, primarily because of earnings overseas that it would need to pay taxes on to bring to the U.S., but it still has about $60 billion in net cash.
AAPL Cash and Short Term Investments (Quarterly) data by YCharts
From this balance sheet strength, Apple could pay out a majority of its cash generated as a dividend and maintain a fortress balance sheet. But it only pays about 15% of earnings as a dividend, as you can see from the payout ration below.
AAPL Dividends Paid (TTM) data by YCharts
Instead of paying a dividend, Apple buys back shares with most of its cash. This has the benefit of reducing shares outstanding, which increases earnings per share even if earnings themselves don't grow.
Apple's dividend potential
If you want a growing dividend stock, you need a company that's growing free cash flow and/or has room to grow the dividend within existing cash flow. Apple has both.
Apple could increase its dividend from a 0.7% yield today to over 3% and still not have a payout ratio of 100%. It could also continue to grow free cash flow at a steady rate and there would be a growing amount of excess cash for shareholders because of continued buybacks.
I think we will look back on Apple as an incredible dividend stock a decade from now because it has a business that generates an incredible amount of cash. That's the foundation from which dividends are built, and this small dividend yield could be a big dividend yield with a few years of dividend growth.
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
Travis Hoium 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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AAPL Revenue (TTM) data by YCharts Apple has arguably the best product of all time in the iPhone, a growing services business, and improving personal computers and accessories. Apple (NASDAQ: AAPL) generates more cash than it knows what to do with, and it has the potential to pay a higher dividend for the foreseeable future. AAPL Cash and Short Term Investments (Quarterly) data by YCharts From this balance sheet strength, Apple could pay out a majority of its cash generated as a dividend and maintain a fortress balance sheet.
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AAPL Dividends Paid (TTM) data by YCharts Instead of paying a dividend, Apple buys back shares with most of its cash. Apple (NASDAQ: AAPL) generates more cash than it knows what to do with, and it has the potential to pay a higher dividend for the foreseeable future. AAPL Revenue (TTM) data by YCharts Apple has arguably the best product of all time in the iPhone, a growing services business, and improving personal computers and accessories.
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AAPL Cash and Short Term Investments (Quarterly) data by YCharts From this balance sheet strength, Apple could pay out a majority of its cash generated as a dividend and maintain a fortress balance sheet. Apple (NASDAQ: AAPL) generates more cash than it knows what to do with, and it has the potential to pay a higher dividend for the foreseeable future. AAPL Revenue (TTM) data by YCharts Apple has arguably the best product of all time in the iPhone, a growing services business, and improving personal computers and accessories.
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AAPL Dividends Paid (TTM) data by YCharts Instead of paying a dividend, Apple buys back shares with most of its cash. Apple (NASDAQ: AAPL) generates more cash than it knows what to do with, and it has the potential to pay a higher dividend for the foreseeable future. AAPL Revenue (TTM) data by YCharts Apple has arguably the best product of all time in the iPhone, a growing services business, and improving personal computers and accessories.
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18797.0
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2022-10-21 00:00:00 UTC
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Why Snap Stock Got Crushed Early Friday
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AAPL
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https://www.nasdaq.com/articles/why-snap-stock-got-crushed-early-friday
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nan
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nan
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What happened
Shares of Snap (NYSE: SNAP) cratered on Friday, falling as much as 32.1%. At 11:00 a.m. ET, the stock was still down 31.4%.
The catalyst that sent the social media company plummeting was disappointing results caused by a slump in its ad tech business.
So what
For the third quarter, the Snapchat parent reported revenue of $1.1 billion, up 6% year over year, while its net loss of $360 million plunged 400%. This resulted in a loss of share of $0.22, far worse than its loss of $0.05 in the prior-year quarter. This also marked the slowest quarterly sales growth in the company's history.
To give these numbers context, analysts' consensus estimates were calling for revenue of $1.1 billion and a loss per share of $0.24.
Management preferred to focus on the silver lining of its cloudy results, reporting that its daily active users (DAUs) of 363 million climbed 19% year over year. Unfortunately, average revenue per user (ARPU) of $3.11 declined 11%.
Snap also announced that its board of directors had authorized a buyback program, with plans to repurchase as much as $500 million of its stock over the coming 12 months.
CEO Evan Spiegel said the company's user growth "continues to expand our long-term opportunity as we navigate this volatile macroeconomic environment."
Now what
Further stoking investor fears, the company cited the "uncertainties related to the operating environment" in justifying its decision to forego providing financial guidance for the upcoming quarter.
Following the results, analysts scrambled to adjust their models to address the deteriorating situation. As a result of the flood of outlook adjustments, three of Wall Street's finest issued downgrades, while more than a dozen slashed their price targets.
MKM Partners analyst Rohit Kulkarni seemed to capture the prevailing concerns, calling the results "disappointing," while saying he overestimated Snap's resilience and ability to navigate the macro headwinds and Apple's (NASDAQ: AAPL) privacy changes, which have made it more difficult for apps to effectively target advertising.
Given the economic uncertainty and the industry-specific difficulties the company has yet to circumnavigate, investors would do well to take a pass on Snap stock, at least until there is some evidence it can mount a turnaround.
10 stocks we like better than Snap 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 Snap 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
Danny Vena 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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MKM Partners analyst Rohit Kulkarni seemed to capture the prevailing concerns, calling the results "disappointing," while saying he overestimated Snap's resilience and ability to navigate the macro headwinds and Apple's (NASDAQ: AAPL) privacy changes, which have made it more difficult for apps to effectively target advertising. CEO Evan Spiegel said the company's user growth "continues to expand our long-term opportunity as we navigate this volatile macroeconomic environment." Now what Further stoking investor fears, the company cited the "uncertainties related to the operating environment" in justifying its decision to forego providing financial guidance for the upcoming quarter.
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MKM Partners analyst Rohit Kulkarni seemed to capture the prevailing concerns, calling the results "disappointing," while saying he overestimated Snap's resilience and ability to navigate the macro headwinds and Apple's (NASDAQ: AAPL) privacy changes, which have made it more difficult for apps to effectively target advertising. So what For the third quarter, the Snapchat parent reported revenue of $1.1 billion, up 6% year over year, while its net loss of $360 million plunged 400%. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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MKM Partners analyst Rohit Kulkarni seemed to capture the prevailing concerns, calling the results "disappointing," while saying he overestimated Snap's resilience and ability to navigate the macro headwinds and Apple's (NASDAQ: AAPL) privacy changes, which have made it more difficult for apps to effectively target advertising. 10 stocks we like better than Snap Inc. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Danny Vena has positions in Apple.
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MKM Partners analyst Rohit Kulkarni seemed to capture the prevailing concerns, calling the results "disappointing," while saying he overestimated Snap's resilience and ability to navigate the macro headwinds and Apple's (NASDAQ: AAPL) privacy changes, which have made it more difficult for apps to effectively target advertising. ET, the stock was still down 31.4%. 10 stocks we like better than Snap Inc.
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18798.0
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2022-10-21 00:00:00 UTC
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First Leg of Earnings Season Going Better Than Expected
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AAPL
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https://www.nasdaq.com/articles/first-leg-of-earnings-season-going-better-than-expected
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nan
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nan
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With the “first leg” of Q3 earnings season in the books, results have been generally better than expected. This is off bleak expectations, however — many analysts were expecting dire misses and guidance that hasn’t materialized (aside from companies like Snap SNAP which reported yesterday and looks to open down almost another -30%).
That said, keep in mind the early part of earnings season includes some of Wall Street’s biggest banks and the largest U.S.-based airlines — both of whom have benefited from current economic conditions: the big banks from higher interest rates and airlines from spiked airfare prices (and giant year-over-year comps). Beyond these segments of the overall economy, we begin to look at some of the more troubled industries, like Big Tech.
Next week alone brings us earnings releases from Microsoft MSFT, Alphabet GOOGL, Apple AAPL and Amazon AMZN — all of whom are down -20% to -32% year to date. It’s likely too late to salvage any gains for calendar 2022 for any of these “FAANG” stocks, and it remains to be seen if Q3 will provide the remedy for corporate profits going forward — or if there will be something to look forward to in their guidance. In any case, these stocks are still very widely owned, and their earnings reports will be rightly followed very closely.
American Express AXP reported Q3 earnings ahead of Friday’s open, posting mild beats on both top and bottom lines above Zacks consensus: earnings of $2.47 per share outpaced expectations by 5 cents on revenues of $13.56 billion, ahead of the estimated $13.51 billion. Full-year guidance remained relatively in-line with former projections, as its Chairman and CEO said “Demand for travel is exceeding expectations.” However, $800 million in loan loss provisions caught investors off guard, and shares are down -4.5% in early trading.
Verizon VZ is also down more than -4% this morning on earnings and sales beats in its Q3 print: earnings of $1.32 per share surpassed the Zacks consensus by 4 cents (though still down from $1.41 per share a year ago), on +4% gains in revenues to $34.2 billion in the quarter. But a -23% drop in net income to $5 billion and a loss of -189K subscribers put a damper on this morning’s earnings report.
The Hague, Netherlands-based oilfield services major Schlumberger SLB put up solid outperformance on both top and bottom lines this morning, with earnings of 63 cents per share easily taking out the 55-cent estimate on $7.48 billion in quarterly sales surging past the $7.14 billion expected. This marks the fourth-straight positive earnings surprise for the Zacks Rank #2 (Buy)-rated company, which trades +2.2% higher in today’s pre-market.
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Microsoft Corporation (MSFT): Free Stock Analysis Report
Schlumberger Limited (SLB): Free Stock Analysis Report
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Next week alone brings us earnings releases from Microsoft MSFT, Alphabet GOOGL, Apple AAPL and Amazon AMZN — all of whom are down -20% to -32% year to date. Apple Inc. (AAPL): Free Stock Analysis Report Full-year guidance remained relatively in-line with former projections, as its Chairman and CEO said “Demand for travel is exceeding expectations.” However, $800 million in loan loss provisions caught investors off guard, and shares are down -4.5% in early trading.
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Next week alone brings us earnings releases from Microsoft MSFT, Alphabet GOOGL, Apple AAPL and Amazon AMZN — all of whom are down -20% to -32% year to date. Apple Inc. (AAPL): Free Stock Analysis Report American Express AXP reported Q3 earnings ahead of Friday’s open, posting mild beats on both top and bottom lines above Zacks consensus: earnings of $2.47 per share outpaced expectations by 5 cents on revenues of $13.56 billion, ahead of the estimated $13.51 billion.
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Next week alone brings us earnings releases from Microsoft MSFT, Alphabet GOOGL, Apple AAPL and Amazon AMZN — all of whom are down -20% to -32% year to date. Apple Inc. (AAPL): Free Stock Analysis Report American Express AXP reported Q3 earnings ahead of Friday’s open, posting mild beats on both top and bottom lines above Zacks consensus: earnings of $2.47 per share outpaced expectations by 5 cents on revenues of $13.56 billion, ahead of the estimated $13.51 billion.
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Next week alone brings us earnings releases from Microsoft MSFT, Alphabet GOOGL, Apple AAPL and Amazon AMZN — all of whom are down -20% to -32% year to date. Apple Inc. (AAPL): Free Stock Analysis Report This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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18799.0
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2022-10-21 00:00:00 UTC
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US STOCKS-Wall Street ends higher as hopes for less aggressive Fed grow
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-ends-higher-as-hopes-for-less-aggressive-fed-grow-0
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nan
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nan
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By Chuck Mikolajczak
NEW YORK, Oct 21 (Reuters) - U.S. stocks surged to close out the trading week on Friday after a report said the U.S. Federal Reserve will likely debate on a smaller interest rate hike in December, raising hopes the central bank may be poised to adopt a less aggressive policy stance.
Some Fed officials have begun sounding out their desire to slow down the pace of increases soon, according to a Wall Street Journal report, and how to signal plans to approve a smaller increase in December.
San Francisco Federal Reserve President Mary Daly echoed that sentiment and said it's time to start talking about slowing the pace of the hikes in borrowing costs and doing so should avoid sending the economy into an "unforced downturn" by hiking interest rates too sharply.
In addition, Chicago Federal Reserve Bank President Charles Evans reiterated his stance the Fed should get policy to "a bit above" 4.5% by early next year and then hold it there.
Analysts widely expect the Fed to hike rates by 75 basis points for a fourth straight meeting in November. Equities have been under pressure this year as the central bank has embarked on an aggressive rate hike path as it attempts to reign in stubbornly high inflation, increasing worries of a policy error that will send the economy into a recession.
"You had the (report) and then you had some confirmation that 75 seems to be pretty baked in for November here but perhaps there is room to slow and extend... rather than front-load so high and then have to peel off, you kind of ease to your 4.75% or 5% peak," said Tom Hainlin, senior investment strategist at U.S. Bank Wealth Management in Minneapolis, Minnesota.
"Then maybe just hold there for a while so you are getting a little bit of relief."
The Dow Jones Industrial Average .DJI rose 748.97 points, or 2.47%, to 31,082.56, the S&P 500 .SPX gained 86.97 points, or 2.37%, to 3,752.75 and the Nasdaq Composite .IXIC added 244.87 points, or 2.31%, to 10,859.72.
For the week, the S&P 500 climbed 4.74%, the Dow gained 4.89% and the Nasdaq rose 5.22%. Each of the three major indexes notched their biggest weekly percentage gains in four months.
The report helped stocks recover from early losses as Snap IncSNAP.N plunged 28.08% after posting its slowest quarterly revenue growth in five years as advertisers cut spending due to inflation and geopolitical woes.
That weighed on other companies that rely heavily on ad revenue such as Meta Platforms Inc META.O, down 1.16% and Pinterest PINS.N, off 6.40%.
Also falling after reporting quarterly earnings were American Express AXP.N, which lost 1.67% and Verizon Communications VZ.N, down 4.46%.
American Express said it built bigger provisions to prepare for potential defaults as an economic downturn looms while Verizon's profit slid 23% and the carrier missed estimates for wireless subscriber additions.
Next week will bring earnings from names such as Twitter TWTR.N, Microsoft Corp MSFT.O, Alphabet GOOGL.O and Apple Inc AAPL.O.
Despite the recent batch of disappointing results, third-quarter earnings season has so far has been better-than-feared, with growth expectations for S&P 500 companies at 3.1%, according to Refinitiv data, up from 2.8% earlier in the week but still well below the 11.1% forecast at the start of July.
Schlumberger SLB.N shot up 10.33% to help to lift the S&P 500 energy sector .SPNY 2.76% after reporting a quarterly profit above expectations.
Volume on U.S. exchanges was 12.15 billion shares, compared with the 11.57 billion average for the full session over the last 20 trading days.
Advancing issues outnumbered declining ones on the NYSE by a 2.59-to-1 ratio; on Nasdaq, a 2.03-to-1 ratio favored advancers.
The S&P 500 posted 9 new 52-week highs and 32 new lows; the Nasdaq Composite recorded 60 new highs and 322 new lows.
(Reporting by Chuck Mikolajczak; Editing by Aurora Ellis)
((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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Next week will bring earnings from names such as Twitter TWTR.N, Microsoft Corp MSFT.O, Alphabet GOOGL.O and Apple Inc AAPL.O. By Chuck Mikolajczak NEW YORK, Oct 21 (Reuters) - U.S. stocks surged to close out the trading week on Friday after a report said the U.S. Federal Reserve will likely debate on a smaller interest rate hike in December, raising hopes the central bank may be poised to adopt a less aggressive policy stance. Equities have been under pressure this year as the central bank has embarked on an aggressive rate hike path as it attempts to reign in stubbornly high inflation, increasing worries of a policy error that will send the economy into a recession.
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Next week will bring earnings from names such as Twitter TWTR.N, Microsoft Corp MSFT.O, Alphabet GOOGL.O and Apple Inc AAPL.O. By Chuck Mikolajczak NEW YORK, Oct 21 (Reuters) - U.S. stocks surged to close out the trading week on Friday after a report said the U.S. Federal Reserve will likely debate on a smaller interest rate hike in December, raising hopes the central bank may be poised to adopt a less aggressive policy stance. In addition, Chicago Federal Reserve Bank President Charles Evans reiterated his stance the Fed should get policy to "a bit above" 4.5% by early next year and then hold it there.
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Next week will bring earnings from names such as Twitter TWTR.N, Microsoft Corp MSFT.O, Alphabet GOOGL.O and Apple Inc AAPL.O. By Chuck Mikolajczak NEW YORK, Oct 21 (Reuters) - U.S. stocks surged to close out the trading week on Friday after a report said the U.S. Federal Reserve will likely debate on a smaller interest rate hike in December, raising hopes the central bank may be poised to adopt a less aggressive policy stance. San Francisco Federal Reserve President Mary Daly echoed that sentiment and said it's time to start talking about slowing the pace of the hikes in borrowing costs and doing so should avoid sending the economy into an "unforced downturn" by hiking interest rates too sharply.
|
Next week will bring earnings from names such as Twitter TWTR.N, Microsoft Corp MSFT.O, Alphabet GOOGL.O and Apple Inc AAPL.O. In addition, Chicago Federal Reserve Bank President Charles Evans reiterated his stance the Fed should get policy to "a bit above" 4.5% by early next year and then hold it there. The Dow Jones Industrial Average .DJI rose 748.97 points, or 2.47%, to 31,082.56, the S&P 500 .SPX gained 86.97 points, or 2.37%, to 3,752.75 and the Nasdaq Composite .IXIC added 244.87 points, or 2.31%, to 10,859.72.
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