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18800.0
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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
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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."
According to preliminary data, the S&P 500 .SPX gained 86.97 points, or 2.37%, to end at 3,752.75 points, while the Nasdaq Composite .IXIC gained 245.12 points, or 2.31%, to 10,859.96. The Dow Jones Industrial Average .DJI rose 760.36 points, or 2.51%, to 31,093.95.
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 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 and Pinterest PINS.N, which both declined.
Also falling after reporting quarterly earnings were American Express AXP.N and Verizon Communications VZ.N.
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 to help to lift the S&P 500 energy sector .SPNY after reporting a quarterly profit above expectations.
(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.
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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. 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. According to preliminary data, the S&P 500 .SPX gained 86.97 points, or 2.37%, to end at 3,752.75 points, while the Nasdaq Composite .IXIC gained 245.12 points, or 2.31%, to 10,859.96.
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18801.0
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2022-10-21 00:00:00 UTC
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US STOCKS-Wall Street rallies on hopes of less aggressive Fed
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-rallies-on-hopes-of-less-aggressive-fed
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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 jumped 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 ready 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 the Wall Street Journal, 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.
"It has an outsized influence because it is so anxious at the moment, the market is attaching itself to any headline that it sees, positive or negative, and then it will react in such a way," said Ken Polcari, managing partner at Kace Capital Advisors in Boca Raton, Florida.
Daly's statement on the possible slowdown is being interpreted as a positive headline, so the market is taking off, he added.
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.
The Dow Jones Industrial Average .DJI rose 646.73 points, or 2.13%, to 30,980.32, the S&P 500 .SPX gained 74.27 points, or 2.03%, to 3,740.05 and the Nasdaq Composite .IXIC added 198.82 points, or 1.87%, to 10,813.66.
Each of the three major indexes were on track for their biggest weekly percentage gains in four months.
The news helped stocks recover from early losses as Snap IncSNAP.N plunged 30.07% 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 1.22%, and Pinterest PINS.N, off 7.42%.
Also falling after reporting quarterly earnings were American Express AXP.N, which fell 2.88% and Verizon Communications VZ.N, down 4.58%
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 10.51%, helping to lift the S&P 500 energy sector .SPNY 2.71%, on reporting a quarterly profit above expectations.
Advancing issues outnumbered declining ones on the NYSE by a 2.37-to-1 ratio; on Nasdaq, a 1.84-to-1 ratio favored advancers.
The S&P 500 posted 8 new 52-week highs and 32 new lows; the Nasdaq Composite recorded 36 new highs and 285 new lows.
(Reporting by Shreyashi Sanyal and Ankika Biswas in Bengaluru; Additional reporting by Bansari Mayur Kamdar; Editing by Anil D'Silva, Arun Koyyur, Shounak Dasgupta and Aurora Ellis)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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 jumped 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 ready 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 jumped 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 ready to adopt a less aggressive policy stance. The Dow Jones Industrial Average .DJI rose 646.73 points, or 2.13%, to 30,980.32, the S&P 500 .SPX gained 74.27 points, or 2.03%, to 3,740.05 and the Nasdaq Composite .IXIC added 198.82 points, or 1.87%, to 10,813.66.
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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. 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. Also falling after reporting quarterly earnings were American Express AXP.N, which fell 2.88% and Verizon Communications VZ.N, down 4.58% 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.
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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. Some Fed officials have begun sounding out their desire to slow down the pace of increases soon, according to the Wall Street Journal, and how to signal plans to approve a smaller increase in December. "It has an outsized influence because it is so anxious at the moment, the market is attaching itself to any headline that it sees, positive or negative, and then it will react in such a way," said Ken Polcari, managing partner at Kace Capital Advisors in Boca Raton, Florida.
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18802.0
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2022-10-21 00:00:00 UTC
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Here's What to Expect from Big Tech Earnings
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AAPL
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https://www.nasdaq.com/articles/heres-what-to-expect-from-big-tech-earnings
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nan
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nan
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The quarterly report from Snap SNAP 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 GOOGL and Microsoft MSFT after the market’s close on Tuesday (10/25), Instagram parent Meta Platforms META after the close on Wednesday (7/26), Apple AAPL and Amazon AMZN 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.
The chart below shows the year-to-date stock market performance of the Zacks Technology sector (the red line; down -38.8%), the S&P 500 index (down -22.7%), Apple (blue line; down -12.9%), Alphabet (orange line; down -25.3%), Meta (green line; down -49.6%), and Snap (purple line; down – 78.3%).
Image Source: Zacks Investment Research
I deliberately kept out Apple, Microsoft and Amazon from the chart to reduce clutter in the visual, but those stocks are down -18.9%, -29.9%, and -30.6%, respectively. As we can intuitively appreciate, these three Tech leaders aren’t as exposed to the ongoing softening trend in digital advertising spending as Snap, Meta and Alphabet.
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.
Take a look at the chart below that shows current consensus expectations for this group for the current and coming periods in the context of what they were able to achieve in the preceding period.
We have highlighted the expected -11.7% earnings decline on +9.2% higher revenues for this group of 5 Tech leaders in 2022 Q2.
Image Source: Zacks Investment Research
As you can see here 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.
The chart below shows the group’s earnings and revenue growth on an annual basis.
Image Source: Zacks Investment Research
Look at the chart and note the growth trend from 2022 to 2023. In other words, 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.
The chart below shows the sector’s Q3 earnings and revenue growth expectations in the context of where growth has been in recent quarters and what is expected in the coming four periods.
Image Source: Zacks Investment Research
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, as the chart below highlights.
Image Source: Zacks Investment Research
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.
Here is how the 2022 Q3 earnings and revenue growth rates for these 99 companies compares across different periods.
Image Source: Zacks Investment Research
Here is how the 2022 Q3 EPS and revenue beats percentages for these 99 companies compare across different periods.
Image Source: Zacks Investment Research
The EPS and revenue beats percentages were notably on the weak side earlier in the reporting cycle. But as you can see above, they are very much within the historical range by now.
The Earnings Big Picture
To get a sense of what is currently expected, take a look at the chart below that shows current earnings and revenue growth expectations for the S&P 500 index for 2022 Q3 and the following three quarters.
Image Source: Zacks Investment Research
As you can see here, 2022 Q3 earnings are expected to be up +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.
The charts below show how earnings growth expectations for 2022 Q4 have evolved in recent weeks. The left-hand side chart shows S&P 500 earnings growth expectations in the aggregate, while the left-hand side chart shows the same data on an ex-Energy basis.
Image Source: Zacks Investment Research
The chart below shows the aggregate 2023 earnings estimate on an ex-Energy basis.
Image Source: Zacks Investment Research
The chart below shows the overall earnings picture on an annual basis.
Image Source: Zacks Investment Research
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>>Breaking Down the Rough Start to Q3 Earnings Season
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
Snap Inc. (SNAP): Free Stock Analysis Report
Meta Platforms, Inc. (META): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Reporting this week are the ‘Big 5 Tech players’ - Alphabet GOOGL and Microsoft MSFT after the market’s close on Tuesday (10/25), Instagram parent Meta Platforms META after the close on Wednesday (7/26), Apple AAPL and Amazon AMZN after the close on Thursday (7/27). Apple Inc. (AAPL): Free Stock Analysis Report 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.
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Reporting this week are the ‘Big 5 Tech players’ - Alphabet GOOGL and Microsoft MSFT after the market’s close on Tuesday (10/25), Instagram parent Meta Platforms META after the close on Wednesday (7/26), Apple AAPL and Amazon AMZN after the close on Thursday (7/27). Apple Inc. (AAPL): Free Stock Analysis Report The left-hand side chart shows S&P 500 earnings growth expectations in the aggregate, while the left-hand side chart shows the same data on an ex-Energy basis.
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Reporting this week are the ‘Big 5 Tech players’ - Alphabet GOOGL and Microsoft MSFT after the market’s close on Tuesday (10/25), Instagram parent Meta Platforms META after the close on Wednesday (7/26), Apple AAPL and Amazon AMZN after the close on Thursday (7/27). Apple Inc. (AAPL): Free Stock Analysis Report The chart below shows the sector’s Q3 earnings and revenue growth expectations in the context of where growth has been in recent quarters and what is expected in the coming four periods.
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Reporting this week are the ‘Big 5 Tech players’ - Alphabet GOOGL and Microsoft MSFT after the market’s close on Tuesday (10/25), Instagram parent Meta Platforms META after the close on Wednesday (7/26), Apple AAPL and Amazon AMZN after the close on Thursday (7/27). Apple Inc. (AAPL): Free Stock Analysis Report The chart below shows the sector’s Q3 earnings and revenue growth expectations in the context of where growth has been in recent quarters and what is expected in the coming four periods.
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18803.0
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2022-10-21 00:00:00 UTC
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Notable Friday Option Activity: ORCL, COST, AAPL
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AAPL
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https://www.nasdaq.com/articles/notable-friday-option-activity%3A-orcl-cost-aapl
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Oracle Corp (Symbol: ORCL), where a total of 86,930 contracts have traded so far, representing approximately 8.7 million underlying shares. That amounts to about 97.8% of ORCL's average daily trading volume over the past month of 8.9 million shares. Especially high volume was seen for the $71 strike call option expiring October 21, 2022, with 13,779 contracts trading so far today, representing approximately 1.4 million underlying shares of ORCL. Below is a chart showing ORCL's trailing twelve month trading history, with the $71 strike highlighted in orange:
Costco Wholesale Corp (Symbol: COST) options are showing a volume of 23,172 contracts thus far today. That number of contracts represents approximately 2.3 million underlying shares, working out to a sizeable 96% of COST's average daily trading volume over the past month, of 2.4 million shares. Particularly high volume was seen for the $440 strike put option expiring October 28, 2022, with 1,719 contracts trading so far today, representing approximately 171,900 underlying shares of COST. Below is a chart showing COST's trailing twelve month trading history, with the $440 strike highlighted in orange:
And Apple Inc (Symbol: AAPL) options are showing a volume of 771,737 contracts thus far today. That number of contracts represents approximately 77.2 million underlying shares, working out to a sizeable 83.7% of AAPL's average daily trading volume over the past month, of 92.2 million shares. Especially high volume was seen for the $145 strike put option expiring October 21, 2022, with 65,601 contracts trading so far today, representing approximately 6.6 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $145 strike highlighted in orange:
For the various different available expirations for ORCL options, COST options, or AAPL options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $145 strike put option expiring October 21, 2022, with 65,601 contracts trading so far today, representing approximately 6.6 million underlying shares of AAPL. Below is a chart showing COST's trailing twelve month trading history, with the $440 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 771,737 contracts thus far today. That number of contracts represents approximately 77.2 million underlying shares, working out to a sizeable 83.7% of AAPL's average daily trading volume over the past month, of 92.2 million shares.
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That number of contracts represents approximately 77.2 million underlying shares, working out to a sizeable 83.7% of AAPL's average daily trading volume over the past month, of 92.2 million shares. Below is a chart showing COST's trailing twelve month trading history, with the $440 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 771,737 contracts thus far today. Especially high volume was seen for the $145 strike put option expiring October 21, 2022, with 65,601 contracts trading so far today, representing approximately 6.6 million underlying shares of AAPL.
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Especially high volume was seen for the $145 strike put option expiring October 21, 2022, with 65,601 contracts trading so far today, representing approximately 6.6 million underlying shares of AAPL. Below is a chart showing COST's trailing twelve month trading history, with the $440 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 771,737 contracts thus far today. That number of contracts represents approximately 77.2 million underlying shares, working out to a sizeable 83.7% of AAPL's average daily trading volume over the past month, of 92.2 million shares.
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That number of contracts represents approximately 77.2 million underlying shares, working out to a sizeable 83.7% of AAPL's average daily trading volume over the past month, of 92.2 million shares. Especially high volume was seen for the $145 strike put option expiring October 21, 2022, with 65,601 contracts trading so far today, representing approximately 6.6 million underlying shares of AAPL. Below is a chart showing COST's trailing twelve month trading history, with the $440 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 771,737 contracts thus far today.
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18804.0
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2022-10-21 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
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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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18805.0
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2022-10-21 00:00:00 UTC
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Apple's industrial design head Hankey to leave - Bloomberg News
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AAPL
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https://www.nasdaq.com/articles/apples-industrial-design-head-hankey-to-leave-bloomberg-news
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nan
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Oct 21 (Reuters) - Apple Inc's AAPL.O vice president for industrial design, Evans Hankey, is leaving the company, Bloomberg News reported on Friday, citing people with knowledge of the matter.
Hankey's departure was announced inside the Cupertino, California-based firm this week, with Hankey telling colleagues that she will remain at Apple for the next six months, according to the report, which added that a replacement has not been named so far. (https://bloom.bg/3gtu7k9)
She took over the role in 2019 after famed Apple designer Jony Ive moved out. Apple launched iPhone 12 through iPhone 14 models and M1 MacBooks while Hankey headed industrial design.
Apple did not immediately respond to a Reuters request for comment.
Hankey's exit comes as Apple pushes forward on work on new devices, including mixed reality headsets, and potentially an electric car that is expected to be produced many years down the line.
(Reporting by Yuvraj Malik in Bengaluru; Editing by Maju Samuel)
((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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Oct 21 (Reuters) - Apple Inc's AAPL.O vice president for industrial design, Evans Hankey, is leaving the company, Bloomberg News reported on Friday, citing people with knowledge of the matter. (https://bloom.bg/3gtu7k9) She took over the role in 2019 after famed Apple designer Jony Ive moved out. Hankey's exit comes as Apple pushes forward on work on new devices, including mixed reality headsets, and potentially an electric car that is expected to be produced many years down the line.
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Oct 21 (Reuters) - Apple Inc's AAPL.O vice president for industrial design, Evans Hankey, is leaving the company, Bloomberg News reported on Friday, citing people with knowledge of the matter. (https://bloom.bg/3gtu7k9) She took over the role in 2019 after famed Apple designer Jony Ive moved out. Apple launched iPhone 12 through iPhone 14 models and M1 MacBooks while Hankey headed industrial design.
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Oct 21 (Reuters) - Apple Inc's AAPL.O vice president for industrial design, Evans Hankey, is leaving the company, Bloomberg News reported on Friday, citing people with knowledge of the matter. Hankey's departure was announced inside the Cupertino, California-based firm this week, with Hankey telling colleagues that she will remain at Apple for the next six months, according to the report, which added that a replacement has not been named so far. Apple launched iPhone 12 through iPhone 14 models and M1 MacBooks while Hankey headed industrial design.
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Oct 21 (Reuters) - Apple Inc's AAPL.O vice president for industrial design, Evans Hankey, is leaving the company, Bloomberg News reported on Friday, citing people with knowledge of the matter. Hankey's departure was announced inside the Cupertino, California-based firm this week, with Hankey telling colleagues that she will remain at Apple for the next six months, according to the report, which added that a replacement has not been named so far. (https://bloom.bg/3gtu7k9) She took over the role in 2019 after famed Apple designer Jony Ive moved out.
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18806.0
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2022-10-21 00:00:00 UTC
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PDBC, DYNF: Big ETF Outflows
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AAPL
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https://www.nasdaq.com/articles/pdbc-dynf%3A-big-etf-outflows
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC), where 5,000,000 units were destroyed, or a 1.1% decrease week over week.
And on a percentage change basis, the ETF with the biggest outflow was the BlackRock U.S. Equity Factor Rotation ETF (DYNF), which lost 725,000 of its units, representing a 32.2% decline in outstanding units compared to the week prior. Among the largest underlying components of DYNF, in morning trading today Apple (AAPL) is up about 0.8%, and Microsoft Corporation (MSFT) is higher by about 0.3%.
VIDEO: PDBC, DYNF: 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 DYNF, in morning trading today Apple (AAPL) is up about 0.8%, and Microsoft Corporation (MSFT) is higher by about 0.3%. Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC), where 5,000,000 units were destroyed, or a 1.1% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the BlackRock U.S. Equity Factor Rotation ETF (DYNF), which lost 725,000 of its units, representing a 32.2% decline in outstanding units compared to the week prior.
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Among the largest underlying components of DYNF, in morning trading today Apple (AAPL) is up about 0.8%, and Microsoft Corporation (MSFT) is higher by about 0.3%. Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC), where 5,000,000 units were destroyed, or a 1.1% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the BlackRock U.S. Equity Factor Rotation ETF (DYNF), which lost 725,000 of its units, representing a 32.2% decline in outstanding units compared to the week prior.
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Among the largest underlying components of DYNF, in morning trading today Apple (AAPL) is up about 0.8%, and Microsoft Corporation (MSFT) is higher by about 0.3%. Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC), where 5,000,000 units were destroyed, or a 1.1% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the BlackRock U.S. Equity Factor Rotation ETF (DYNF), which lost 725,000 of its units, representing a 32.2% decline in outstanding units compared to the week prior.
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Among the largest underlying components of DYNF, in morning trading today Apple (AAPL) is up about 0.8%, and Microsoft Corporation (MSFT) is higher by about 0.3%. Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC), where 5,000,000 units were destroyed, or a 1.1% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the BlackRock U.S. Equity Factor Rotation ETF (DYNF), which lost 725,000 of its units, representing a 32.2% decline in outstanding units compared to the week prior.
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18807.0
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2022-10-21 00:00:00 UTC
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What Lies Ahead for Big Tech ETFs in Q3 Earnings?
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https://www.nasdaq.com/articles/what-lies-ahead-for-big-tech-etfs-in-q3-earnings
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nan
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nan
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We are in the peak of the third-quarter earnings season and tech giants are in the spotlight next week. The five biggest tech players — Apple AAPL, Amazon AMZN, Meta Platforms META, Alphabet GOOGL and Microsoft MSFT — are set to report.
These five companies currently account for about 23% of the total market capitalization of the S&P 500 Index. Most of these are expected to report slowing profit and revenue growth, or even year-over-year declines, for the three months ending in September, according to the analyst estimates.
The technology sector, which was hit the hardest by soaring yields and a hawkish Fed, has shown some strength lately. However, their earnings are expected to take a hit from the strength in the U.S. dollar, which is currently trading at its highest level in two decades (read: Dollar at 20-Year High: ETFs to Gain & Lose).
Both Microsoft and Alphabet are scheduled to release their earnings on Oct 25, while Meta Platforms and Apple will report on Oct 26 and Oct 27, respectively. Amazon is also slated to report on Oct 27.
Microsoft
Microsoft has a Zacks Rank #4 (Sell) and an Earnings ESP of -0.65%. According to our methodology, 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Zacks Consensus Estimate indicates substantial earnings growth of 1.3% and revenue growth of 9.4% from the year-ago quarter. Microsoft’s earnings track is impressive, with the last four-quarter earnings surprise being 4.53%, on average. However, the stock witnessed negative earnings estimate revision of a penny for the to-be-reported quarter over the past 30 days. Analysts decreasing estimates right before earnings — with the most up-to-date information possible — is not a good indicator for the stock. Microsoft belongs to a top-ranked Zacks industry (top 33%) and has lost about 12% over the past three months (see: all the Technology ETFs here).
Alphabet
Alphabet has a Zacks Rank #3 and an Earnings ESP of -2.07%. It saw no earnings estimate revision over the past seven days for the to-be-reported quarter. The company’s earnings surprise track over the past four quarters is good, with the beat being 6.77%, on average. Earnings are expected to decline 10.7%, while revenues are expected to grow 8.8% from the year-ago quarter. Alphabet falls under a top-ranked Zacks industry (top 20%). The Internet behemoth has shed about 12% in the past three months (read: Apple ETFs in Focus Post iPhone 14 Launch).
Meta Platforms
Meta Platforms has a Zacks Rank #4 and an Earnings ESP of -3.21%. The social media giant saw a negative earnings estimate revision of couple of cents for the to-be-reported quarter over the past seven days. The current Zacks Consensus Estimate for the yet-to-be reported quarter indicates a substantial year-over-year earnings decline of 43.5%. Revenues are expected to decrease 5.4%. Meta Platforms delivered an earnings surprise of 0.80%, on average, in the last four quarters. The stock belongs to a top-ranked Zacks industry (top 27%). Shares of META have lost about 21% in the past three months.
Apple
Apple has a Zacks Rank #3 and an Earnings ESP of +0.79%. The stock saw positive earnings estimate revision over the past 30 days for fourth-quarter fiscal 2022, and its earnings surprise history is strong. It delivered an earnings surprise of 5.67%, on average, over the past four quarters. Apple is expected to report a modest earnings growth of 1.6% from the year-ago quarter and revenues are expected to increase 6.1% year over year. It belongs to a bottom-ranked Zacks industry (bottom 6%). The stock has declined 8% in the past three-month timeframe.
Amazon
Amazon has a Zacks Rank #4 and an Earnings ESP of -27.66%. The stock saw a positive earnings estimate revision of a penny over the past 30 days for the third quarter. The Zacks Consensus Estimate represents a substantial year-over-year earnings decline of 22.6% and revenue growth of 15.6%. Amazon’s earnings surprise history is impressive, with an average beat of 124.7% for the last four quarters. The stock falls under a top-ranked Zacks industry (top 20%). The online e-commerce behemoth has witnessed a share price fall of 5% in the past three months.
ETFs to Tap
Given this, investors may want to play these stocks with the help of ETFs. Below, we have highlighted six ETFs having the largest exposure to these tech giants.
MicroSectors FANG+ ETN FNGS: This ETN is linked to the performance of the NYSE FANG+ Index, which is equal-dollar weighted and designed to provide exposure to a group of highly traded growth stocks of next-generation technology and tech-enabled companies. The note accounts for a 10% share in each of the FAANG stocks and has a Zacks ETF Rank #3 (read: Netflix Returns to Growth, Shares Spike: ETFs to Tap).
Blue Chip Growth ETF TCHP: This fund focuses on companies with leading market positions, seasoned management and strong financial fundamentals. It accounts for a combined 46.6% in the five firms.
Vanguard Mega Cap Growth ETF MGK: This ETF offers exposure to the largest growth stocks in the U.S. market and has a Zacks ETF Rank #3. The five firms account for a combined 42.9% share in the basket.
iShares Evolved U.S. Technology ETF IETC: This fund employs data science techniques to identify companies with exposure to the technology sector. The five firms account for a combined 42.9% share in the basket.
Invesco QQQ QQQ: This ETF focuses on 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization. This fund makes up for 37.3% share in the in-focus firms and has a Zacks ETF Rank #3 with a Medium risk outlook.
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
Invesco QQQ (QQQ): ETF Research Reports
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports
iShares Evolved U.S. Technology ETF (IETC): ETF Research Reports
MicroSectors FANG ETN (FNGS): ETF Research Reports
T. Rowe Price Blue Chip Growth ETF (TCHP): ETF Research Reports
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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The five biggest tech players — Apple AAPL, Amazon AMZN, Meta Platforms META, Alphabet GOOGL and Microsoft MSFT — are set to report. Apple Inc. (AAPL): Free Stock Analysis Report Most of these are expected to report slowing profit and revenue growth, or even year-over-year declines, for the three months ending in September, according to the analyst estimates.
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The five biggest tech players — Apple AAPL, Amazon AMZN, Meta Platforms META, Alphabet GOOGL and Microsoft MSFT — are set to report. Apple Inc. (AAPL): Free Stock Analysis Report Vanguard Mega Cap Growth ETF MGK: This ETF offers exposure to the largest growth stocks in the U.S. market and has a Zacks ETF Rank #3.
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The five biggest tech players — Apple AAPL, Amazon AMZN, Meta Platforms META, Alphabet GOOGL and Microsoft MSFT — are set to report. Apple Inc. (AAPL): Free Stock Analysis Report The stock saw positive earnings estimate revision over the past 30 days for fourth-quarter fiscal 2022, and its earnings surprise history is strong.
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The five biggest tech players — Apple AAPL, Amazon AMZN, Meta Platforms META, Alphabet GOOGL and Microsoft MSFT — are set to report. Apple Inc. (AAPL): Free Stock Analysis Report The note accounts for a 10% share in each of the FAANG stocks and has a Zacks ETF Rank #3 (read: Netflix Returns to Growth, Shares Spike: ETFs to Tap).
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2022-10-21 00:00:00 UTC
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Q3 Earnings Decent So Far; Big Tech Next: AAPL, MSFT, GOOGL, etc.
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https://www.nasdaq.com/articles/q3-earnings-decent-so-far-big-tech-next%3A-aapl-msft-googl-etc.
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Friday, October 21, 2022
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.
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.
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
Schlumberger Limited (SLB): Free Stock Analysis Report
Verizon Communications Inc. (VZ): Free Stock Analysis Report
American Express Company (AXP): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Snap Inc. (SNAP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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 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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2022-10-21 00:00:00 UTC
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Amphenol (APH) to Report Q3 Earnings: What's in the Cards?
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AAPL
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https://www.nasdaq.com/articles/amphenol-aph-to-report-q3-earnings%3A-whats-in-the-cards
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Amphenol APH is set to report its third-quarter 2022 results on Oct 26.
Amphenol expects third-quarter 2022 earnings between 73 cents and 75 cents per share, indicating 12-15% year-over-year growth. Revenues are anticipated to be in the range of $3.040-$3.100 billion, indicating 8-10% year-over-year growth.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $3.08 billion, implying growth of 9.44% from the figure reported in the year-ago quarter.
The consensus mark for earnings has stayed at 75 cents per share over the past 30 days, suggesting 15.38% growth from the figure reported in the year-ago quarter. Our figure of 74 cents implies 14.4% year-over-year growth.
Amphenol’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, the average surprise being 9.02%.
Amphenol Corporation Price and EPS Surprise
Amphenol Corporation price-eps-surprise | Amphenol Corporation Quote
Let’s see how things have shaped up for the upcoming announcement:
Factors to Consider
Amphenol’s diversified business model lowers the risks posed by the volatility of individual end markets and geographies. Contributions from the acquisitions of NPI Solutions, MTS Sensors, Halo, Positronic, El-Cab, Unlimited Services, Cablecon and Euromicron are expected to aid its third-quarter results.
Military market sales are expected to have increased sequentially due to the addition of MTS sensors to the product offerings, as well as the strong demand for interconnect and sensor products.
However, commercial aerospace market revenues are expected to decline on a sequential basis but increase on a year-over-year basis. Strong demand for the interconnect and sensor technology is expected to have benefited top-line growth in the to-be-reported quarter.
Industrial end-market sales are expected to have witnessed steady growth in the to-be-reported quarter.
Automotive sales are also expected to decline slightly on a sequential basis, due to supply chain constraints.
Amphenol’s third-quarter 2022 top line is expected to have suffered from supply chain disruptions and inflationary pressures, as well as lingering impacts of the pandemic.
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.
Amphenol has an Earnings ESP of -0.48% and 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 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:
Perion Network PERI has an Earnings ESP of +10.58% and sports a Zacks Rank #1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Perion shares are down 3.1% year to date. PERI is set to report its third-quarter 2022 results on Nov 9.
ZoomInfo ZI has an Earnings ESP of +1.27% and a Zacks Rank #2.
ZoomInfo shares have declined 30% 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 +0.79% and a Zacks Rank #3.
Apple shares are down 19.2% 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
Amphenol Corporation (APH): Free Stock Analysis Report
Perion Network Ltd (PERI): Free Stock Analysis Report
ZoomInfo Technologies Inc. (ZI): 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 +0.79% 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 +0.79% 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 +0.79% 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 +0.79% 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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18810.0
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2022-10-21 00:00:00 UTC
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Meta Platforms (META) to Report Q3 Earnings: What to Expect
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AAPL
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https://www.nasdaq.com/articles/meta-platforms-meta-to-report-q3-earnings%3A-what-to-expect
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nan
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nan
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Meta Platforms META is set to report third-quarter 2022 results on Oct 26.
Meta expects total revenues between $26 billion and $28.5 billion for the quarter.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $27.44 billion, indicating a decrease of 5.41% from the year-ago quarter’s reported figure.
The consensus mark for earnings stands at $1.82 per share, which has remained unchanged over the past 30 days, suggesting a decline of 43.48% from the figure reported in the year-ago quarter.
The company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, the average surprise being 0.80%.
Let’s see how things have shaped up for the upcoming announcement.
Meta Platforms, Inc. Price and EPS Surprise
Meta Platforms, Inc. price-eps-surprise | Meta Platforms, Inc. Quote
Factors to Note
Meta’s third-quarter top line is expected to have been affected by geopolitical tensions like the Russia-Ukraine war, which reduced its monthly active users across its family of apps, namely Facebook and Instagram.
Rising inflation is likely to have negatively impacted the ad spending budgets of enterprises, which might have weighed on the ad revenues of Meta in the to-be-reported quarter.
In the second quarter of 2022, Meta’s ad revenues represented 99.2% of total revenues and were used to fund the company’s Reality Labs initiatives, which may have taken a severe hit in the to-be-reported quarter.
Meta’s ad revenue business is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes.
Apple’s iOS changes have made ad targeting difficult, which has increased the cost of driving outcomes. Measuring these outcomes is tough, and Meta expects these factors to hurt advertising growth in the third quarter of 2022.
Meta’s advertisement revenues decreased 1.5% year over year to $28.15 billion and accounted for 99.2% of second-quarter revenues. The declining revenue trend is expected to have continued in the third quarter.
In the third quarter of 2022, Meta expects a 6% headwind in foreign currency exchange rates, which reflects volatility in the market.
As a result, Meta slowed down its investments in certain Reality Labs projects responsible for creating the metaverse. These projects were costing the company a lot of capital as revenues from its primary source have been decreasing.
Meta, which currently carries Zacks Rank #4 (Sell), is banking its future on building the metaverse, which is a shared virtual 3D world, or multiverse. It is created by the use of virtual and augmented reality.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Also, intensifying competition from the likes of Snap SNAP and Twitter TWTR is another major headwind that is expected to have affected the third quarter’s revenue growth.
Snap is benefiting from improving user engagement, particularly in the 13-34-year-old demography, which is expanding its advertiser base. SNAP is also giving competition to META in the metaverse space. It collaborated with Vogue to feature a virtual try-on experience of select pieces from Balenciaga, Dior and Gucci, which will be available for snapchatters, globally.
Even as Meta is investing aggressively in building the metaverse, Twitter surpassed it as the first social media giant to enter the non-fungible token marketplace by launching a tool to showcase and sell NFTs on its platform.
However, Meta has been diversifying the 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.
Key Q3 Developments
In the third quarter, Meta announced the launch of new features to drive user growth in its family of apps - Facebook and Instagram. Meta’s new features will allow both Facebook and Instagram users to switch between the two social media profiles through the same Accounts Center, and people can view their Facebook and Instagram profiles in one place.
To deal with rising security concerns, Meta has also concentrated on developing its privacy and security factors. In addition to its two-factor notification, which will still apply to the new updates, users will be updated if new Instagram and Facebook accounts are created using their existing accounts.
Meta’s legal woes are still consistent as the company was slapped with a €405 million fine by Ireland’s data regulators for violating the European Union’s General Data Protection Regulation and failing to protect children’s information.
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
Twitter, Inc. (TWTR): Free Stock Analysis Report
Snap Inc. (SNAP): Free Stock Analysis Report
Meta Platforms, Inc. (META): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Meta’s ad revenue business is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Apple Inc. (AAPL): Free Stock Analysis Report The consensus mark for earnings stands at $1.82 per share, which has remained unchanged over the past 30 days, suggesting a decline of 43.48% from the figure reported in the year-ago quarter.
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Meta’s ad revenue business is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Apple Inc. (AAPL): Free Stock Analysis Report Key Q3 Developments In the third quarter, Meta announced the launch of new features to drive user growth in its family of apps - Facebook and Instagram.
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Meta’s ad revenue business is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Apple Inc. (AAPL): Free Stock Analysis Report Meta Platforms, Inc. Price and EPS Surprise Meta Platforms, Inc. price-eps-surprise | Meta Platforms, Inc. Quote Factors to Note Meta’s third-quarter top line is expected to have been affected by geopolitical tensions like the Russia-Ukraine war, which reduced its monthly active users across its family of apps, namely Facebook and Instagram.
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Meta’s ad revenue business is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Apple Inc. (AAPL): Free Stock Analysis Report Meta expects total revenues between $26 billion and $28.5 billion for the quarter.
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18811.0
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2022-10-21 00:00:00 UTC
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Burned by Tech Stocks? Try These 3 ETFs Instead
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AAPL
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https://www.nasdaq.com/articles/burned-by-tech-stocks-try-these-3-etfs-instead-2
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nan
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Have you ever found yourself holding the wrong technology stock at the wrong time, and ending up taking a big loss as a result? If so, you're not alone. Many of these companies' stories are intoxicating, but their fiscal realities don't always justify the bullish buzz.
There's a good alternative for anyone looking to avoid making this same mistake twice. Exchange-traded funds, or ETFs, offer their owners built-in diversification that makes them much less volatile. Here's a closer look at three of these smart alternatives to erratic tech stocks.
Invesco S&P 500 High Dividend Low Volatility ETF
The name says it all. Built to mirror the S&P 500 Low Volatility High Dividend Index, the Invesco S&P 500 High Dividend Low Volatility ETF (NYSEMKT: SPHD) holds fifty S&P 500 stocks with a history of high dividend yields and -- you got it -- low volatility.
But it's not an arbitrary collection of tickers. Every few months, Standard & Poor's identifies the S&P 500's 75 highest-yielding names first, and from that pool selects the 50 tickers with the least volatility for the prior 12 months. Unsurprisingly, these stocks tend to be in businesses that are relatively predictable... predictable enough to support above-average dividend payments.
The ETF's current dividend yield stands at 4.75%, and its average daily net movement compared to the market -- a measure called beta -- is only about 90% of the S&P 500's net movement on any given day.
That's a seemingly small difference, but that small difference makes the fund much easier to own through turbulent times. This is of course when you should be most committed to your long-term plan.
Do know that this fund historically underperforms the broad market; that's the trade-off for sleeping well at night. For many investors, though, the trade-off is worth it.
Vanguard Information Technology ETF
While you may have been burned by tech stocks in the past, that doesn't necessarily mean you should give up on them entirely. You may just need to change your tack. Rather than trying to perfectly time your trades of individual technology stocks, simply step into the entire sector and stick with it for the long haul.
Enter the Vanguard Information Technology ETF (NYSEMKT: VGT).
Vanguard's flagship technology index fund reflects the performance of the MSCI U.S. Information Technology Index, consisting of around 370 different tech names. Apple, Microsoft, and Nvidia rank as its biggest holdings. This exchange-traded fund isn't meant to offer speculation on some of the market's most popular technology stocks, though -- quite the opposite, actually. This fund provides long-term exposure to the tech sector in its entirety.
And that's no small matter.
See, when you own individual technology stocks, it's tempting to shop around for the best exit prices, or hold out for better entry prices. It's this line of thinking, however, that often causes investors to end up burning themselves. That's because timing the market is tough to do, and it's even tougher with ever-volatile tech stocks.
When you enter a trade planning on holding onto it even if things turn temporarily sour, you're more likely to actually stick with it when it's performing poorly because you want to be holding onto this basket of stocks when they recover. To this end, know that the Vanguard Information Technology ETF has outperformed the overall market for nearly any meaningful timeframe.
iShares Core Aggressive Allocation ETF
Finally, if a tech-based ETF is still a little too much like the picks that ended up denting your portfolio, there's another fund that fits the bill without crimping your potential for capital appreciation. That's the iShares Core Aggressive Allocation ETF (NYSEMKT: AOA).
The iShares Core Aggressive Allocation ETF is a so-called "fund of funds," meaning its underlying holdings are other exchange-traded funds. Those funds hold equities, of course, so the iShares Core Aggressive Allocation ETF is ultimately exposure to the stock market. It's just a round-about way of getting it.
The value-add comes in the allocation. The iShares company has figured out the optimal mix of stocks broken down by market cap, style, and even region to maximize returns and minimize risk. The thing is, the approach isn't a mere marketing gimmick. It works!
Data from Morningstar says this exchange-traded fund is outperforming the average fund from this category as well as its benchmark index for the past three, five, and 10-year stretches. That's one of the reasons Morningstar's given the ETF a five-star rating.
Even more amazing is how such a strong performance is paired with relatively modest volatility.
Whereas market-beating results typically require taking above-average risks and stomaching above-average volatility, this ETF's long-term beta score is a mere 78%. In other words, while it may only participate in about three-fourths of the broad market's gains, it also only mirrors about three-fourths of the market's daily losses.
Given its market-beating performance though, somehow the iShares Core Aggressive Allocation ETF seems to be plugged into more of the stock market's gains and sidesteps much of the broad market's weakness.
10 stocks we like better than Invesco S&P 500 High Dividend Low Volatility ETF
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now… and Invesco S&P 500 High Dividend Low Volatility ETF 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
James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. 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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Vanguard Information Technology ETF While you may have been burned by tech stocks in the past, that doesn't necessarily mean you should give up on them entirely. Rather than trying to perfectly time your trades of individual technology stocks, simply step into the entire sector and stick with it for the long haul. The iShares company has figured out the optimal mix of stocks broken down by market cap, style, and even region to maximize returns and minimize risk.
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Built to mirror the S&P 500 Low Volatility High Dividend Index, the Invesco S&P 500 High Dividend Low Volatility ETF (NYSEMKT: SPHD) holds fifty S&P 500 stocks with a history of high dividend yields and -- you got it -- low volatility. Vanguard's flagship technology index fund reflects the performance of the MSCI U.S. Information Technology Index, consisting of around 370 different tech names. Whereas market-beating results typically require taking above-average risks and stomaching above-average volatility, this ETF's long-term beta score is a mere 78%.
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Built to mirror the S&P 500 Low Volatility High Dividend Index, the Invesco S&P 500 High Dividend Low Volatility ETF (NYSEMKT: SPHD) holds fifty S&P 500 stocks with a history of high dividend yields and -- you got it -- low volatility. Those funds hold equities, of course, so the iShares Core Aggressive Allocation ETF is ultimately exposure to the stock market. Given its market-beating performance though, somehow the iShares Core Aggressive Allocation ETF seems to be plugged into more of the stock market's gains and sidesteps much of the broad market's weakness.
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Vanguard Information Technology ETF While you may have been burned by tech stocks in the past, that doesn't necessarily mean you should give up on them entirely. The iShares Core Aggressive Allocation ETF is a so-called "fund of funds," meaning its underlying holdings are other exchange-traded funds. * They just revealed what they believe are the ten best stocks for investors to buy right now… and Invesco S&P 500 High Dividend Low Volatility ETF wasn't one of them!
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18812.0
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2022-10-21 00:00:00 UTC
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US STOCKS-Nasdaq futures slide 1% as Snap's ad warning spurs social media selloff
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-futures-slide-1-as-snaps-ad-warning-spurs-social-media-selloff
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nan
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By Shreyashi Sanyal and Ankika Biswas
Oct 21 (Reuters) - Nasdaq futures tumbled over 1% on Friday as Snap Inc's forecast of no revenue growth in the lucrative holiday quarter sparked a selloff in social media companies, with galloping U.S. Treasury yields adding to the losses.
The owner of photo messaging app Snapchat SNAP.N lost more than a quarter of its market value in premarket trading after it posted its slowest quarterly revenue growth in five years as advertisers cut spending due to inflation and geopolitical woes.
Other companies that rely heavily on ad revenue including Alphabet Inc GOOGL.O, Twitter Inc TWTR.N, Meta Platforms Inc META.O and Pinterest Inc PINS.N fell between 1.9% and 8%.
"It's not uncommon for companies to cut back on advertising spending during concerns of an economic slowdown," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.
"Right now you don't want to be in a Snap or a Meta, and it's probably going to transfer over to Alphabet."
The slide in mega-cap growth stocks also comes as the benchmark 10-year U.S. Treasury yield US10YT=RR hit 15-year highs on expectations of aggressive rate hikes by the U.S. Federal Reserve.
Markets are widely expecting a fourth 75-basis-point hike at the central bank's November meeting.
Shares of Microsoft Corp MSFT.O, Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Tesla Inc TSLA.O were all down about 1% each.
"What you're really seeing is a market that's paying a little bit more attention to the yield on Treasuries and that's giving investors a little bit more of a concern," Pavlik said.
At 8:10 a.m. ET, Dow e-minis 1YMcv1 were down 180 points, or 0.59%, S&P 500 e-minis EScv1 were down 24.5 points, or 0.67%, and Nasdaq 100 e-minis NQcv1 were down 114.5 points, or 1.03%.
In the previous session, U.S. stocks ended lower after comments from Philadelphia Fed President Patrick Harker added to jitters over the central bank's rate-hiking spree and its impact on the economy.
Third-quarter reporting season so far has been better-than-feared, prompting analysts to nudge up their earnings expectations for S&P 500 companies to a 3.1% increase from 2.8% earlier in the week, according to Refinitiv data.
It is still well below the 11.1% rise that was forecast at the start of July.
Thanks to the earnings-driven gains from earlier this week, all the three main indexes are set for their best week in six.
Among Dow .DJI components, Verizon Communications Inc VZ.N shed 2.3% as its profit slid 23% and the carrier missed estimates for wireless subscriber additions.
American Express AXP.N said its third-quarter profit had modestly improved, however shares of the company were down 5.2%. Shares of Visa Inc V.N fell 1.2%.
In a bright spot, top oilfield services provider Schlumberger Ltd SLB.N rose 1.8% after it reported quarterly profit above expectations amid a surge in oil and gas prices.
(Reporting by Shreyashi Sanyal and Ankika Biswas in Bengaluru; Additional reporting by Medha Singh and Devik Jain; Editing by Anil D'Silva and Arun Koyyur)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Microsoft Corp MSFT.O, Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Tesla Inc TSLA.O were all down about 1% each. By Shreyashi Sanyal and Ankika Biswas Oct 21 (Reuters) - Nasdaq futures tumbled over 1% on Friday as Snap Inc's forecast of no revenue growth in the lucrative holiday quarter sparked a selloff in social media companies, with galloping U.S. Treasury yields adding to the losses. "It's not uncommon for companies to cut back on advertising spending during concerns of an economic slowdown," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.
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Shares of Microsoft Corp MSFT.O, Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Tesla Inc TSLA.O were all down about 1% each. ET, Dow e-minis 1YMcv1 were down 180 points, or 0.59%, S&P 500 e-minis EScv1 were down 24.5 points, or 0.67%, and Nasdaq 100 e-minis NQcv1 were down 114.5 points, or 1.03%. In a bright spot, top oilfield services provider Schlumberger Ltd SLB.N rose 1.8% after it reported quarterly profit above expectations amid a surge in oil and gas prices.
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Shares of Microsoft Corp MSFT.O, Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Tesla Inc TSLA.O were all down about 1% each. By Shreyashi Sanyal and Ankika Biswas Oct 21 (Reuters) - Nasdaq futures tumbled over 1% on Friday as Snap Inc's forecast of no revenue growth in the lucrative holiday quarter sparked a selloff in social media companies, with galloping U.S. Treasury yields adding to the losses. The owner of photo messaging app Snapchat SNAP.N lost more than a quarter of its market value in premarket trading after it posted its slowest quarterly revenue growth in five years as advertisers cut spending due to inflation and geopolitical woes.
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Shares of Microsoft Corp MSFT.O, Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Tesla Inc TSLA.O were all down about 1% each. "It's not uncommon for companies to cut back on advertising spending during concerns of an economic slowdown," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut. Markets are widely expecting a fourth 75-basis-point hike at the central bank's November meeting.
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18813.0
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2022-10-21 00:00:00 UTC
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Want to Get Richer? 3 Top Stocks to Buy Now and Hold Forever
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AAPL
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https://www.nasdaq.com/articles/want-to-get-richer-3-top-stocks-to-buy-now-and-hold-forever-3
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nan
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nan
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There are some stocks that should form the backbone of any strong portfolio, stocks that you buy and hold until retirement or forever. Even during uncertain times, these stocks are good buys that, over the very long term, should outperform the rest of the market.
Apple (NASDAQ: AAPL), Advanced Micro Devices (NASDAQ: AMD), and Microsoft (NASDAQ: MSFT) are three such stocks. Companies that you can be confident will weather any market conditions and come out ahead over time. Let's find out a bit more about them.
1. Apple
Apple is one of the most dependable companies on the planet. It may not be the first to launch a product, but when it does, you can be sure that Apple's version will be a hit. Historically, the two biggest examples of Apple's success in defining a category of products were the iPhone and iPad. Smartphones and tablets are part of everyday life in 2022, but neither category would be where it is today without the immense input of Apple.
In recent years, the company continued this success with other categories, such as the Apple Watch and the exceedingly successful AirPod lineup. Smartwatches and wireless headphones are now dominated by Apple, with the Apple Watch making up 30.1% of the smartwatch market last year and its wireless headphones business comprising AirPods and Beats accounting for nearly 50% of the U.S. market.
Looking ahead, Apple will reportedly release its long-awaited Augmented Reality headset next year. The company's AR headset is another opportunity for Apple to dominate an entirely new category of products. According to Grand View Research, the AR market was worth over $25 billion last year, and analysts expect it to grow by nearly 41% annually from 2022 to 2030. Apple is in a prime position to drive that growth.
With its track record, there's no reason to doubt that Apple will be able to pull off its trademark product consistency and success going forward and, therefore, no reason to worry about holding onto Apple stock forever.
2. Advanced Micro Devices
Advanced Micro Devices stock has soared since it successfully launched its Ryzen CPU platform in 2017, going from under $2 a share in 2015 to $158 in 2021. Prior to the release of Ryzen, the company was struggling to compete with Intel in the consumer processor market. However, after nearly five years of Ryzen processors, AMD hit a record-high market share for its CPUs, with AMD processors making up 25.6% of the overall market at the end of 2021. The figure beat its previous record of 25.3% market share set in 2006.
Moreover, AMD has had Intel on the back foot for the past few years. Intel had been content to milk its market-leading position while AMD struggled, with Intel releasing minor processor upgrades and speed bumps. To the point where Apple, Intel's biggest single customer, dropped the company altogether in 2020, opting to make its own chips for its Mac lineup of desktop and laptop computers.
Meanwhile, AMD started releasing increasingly impressive products that helped it recapture market share from Intel and lock in a dedicated following of tech enthusiasts. Its decision to support the AM4 motherboard socket for multiple generations of processors meant consumers could upgrade their CPUs without the costly addition of a new motherboard, earning the company much-needed consumer loyalty and helping to grow its market share.
AMD has a bright future with the recent release of its new generation of processors, along with the first new CPU socket since 2016 and its upcoming launch of the Radeon 7000 series of graphics cards. With a current share price of $57 and a target price of just under $97, there's plenty of growth in the company to hold its stock for the very long term.
3. Microsoft
Microsoft maintained its dominance over the consumer PC market despite threats from other operating systems, as Alphabet's Chrome OS and Mac OS have slowly chipped away at the company's market share. Although Windows's market share fell from 85.4% in 2019 to 80.5% in 2020, the combined strength of Apple and Alphabet isn't enough to make a real dent in the commanding lead Microsoft enjoys in the PC space.
Microsoft leveraged its share of the PC market by growing its Xbox brand, investing in related services such as LinkedIn, and venturing into developing its own hardware with the Surface line that just celebrated its 10th anniversary. Today's Microsoft is a diversified powerhouse that succeeds more often than it fails.
Looking ahead, Microsoft is at the forefront of gaming. The company also leveraged its Xbox brand into creating the successful Xbox Game Pass service and rolling that into Xbox Cloud Gaming. Now that Alphabet has thrown in the cloud gaming towel, Microsoft is the biggest player in the cloud gaming space, which brings games to players anywhere with internet access. Much like Netflix brought movie streaming to the world, Microsoft is delivering game streaming, which could be the future of the $195 billion gaming market.
10 stocks we like better than Apple
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 30, 2022
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet (A shares), Alphabet (C shares), Apple, Intel, Microsoft, and Netflix. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2023 $57.50 puts on Intel, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL), Advanced Micro Devices (NASDAQ: AMD), and Microsoft (NASDAQ: MSFT) are three such stocks. To the point where Apple, Intel's biggest single customer, dropped the company altogether in 2020, opting to make its own chips for its Mac lineup of desktop and laptop computers. Although Windows's market share fell from 85.4% in 2019 to 80.5% in 2020, the combined strength of Apple and Alphabet isn't enough to make a real dent in the commanding lead Microsoft enjoys in the PC space.
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Apple (NASDAQ: AAPL), Advanced Micro Devices (NASDAQ: AMD), and Microsoft (NASDAQ: MSFT) are three such stocks. Smartwatches and wireless headphones are now dominated by Apple, with the Apple Watch making up 30.1% of the smartwatch market last year and its wireless headphones business comprising AirPods and Beats accounting for nearly 50% of the U.S. market. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet (A shares), Alphabet (C shares), Apple, Intel, Microsoft, and Netflix.
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Apple (NASDAQ: AAPL), Advanced Micro Devices (NASDAQ: AMD), and Microsoft (NASDAQ: MSFT) are three such stocks. Smartwatches and wireless headphones are now dominated by Apple, with the Apple Watch making up 30.1% of the smartwatch market last year and its wireless headphones business comprising AirPods and Beats accounting for nearly 50% of the U.S. market. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet (A shares), Alphabet (C shares), Apple, Intel, Microsoft, and Netflix.
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Apple (NASDAQ: AAPL), Advanced Micro Devices (NASDAQ: AMD), and Microsoft (NASDAQ: MSFT) are three such stocks. The company's AR headset is another opportunity for Apple to dominate an entirely new category of products. That's right -- they think these 10 stocks are even better buys.
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18814.0
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2022-10-21 00:00:00 UTC
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Zuckerberg's Metaverse Bet Is More Than Experimental - It's Key to Meta's Survival
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AAPL
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https://www.nasdaq.com/articles/zuckerbergs-metaverse-bet-is-more-than-experimental-its-key-to-metas-survival
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nan
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Pretty much everything about Meta Platforms (NASDAQ: META) and CEO Mark Zuckerberg is divisive these days. So it comes as no surprise that the company's new premium virtual reality (VR) headset, Meta Quest Pro, was received with disdain by many in the media. Hating on VR, the metaverse, and the company's attempt to build a 3D app future is an easy way to get clicks -- especially from those who are unsure of what the metaverse even is in the first place.
But that's really a shame, because Zuckerberg isn't pursuing the metaverse just for kicks. Rather, Meta is building a new computing hardware platform to ensure the company's survival.
The problem with the software-based business model
Meta's social media empire makes money from ads, but at its core, these are still software businesses. Software is asset-light and highly profitable, but it isn't particularly sticky. Alphabet's Google Search is a notable exception, because cataloging the internet itself is an incredibly expensive task. Nevertheless, Google benefits from a special relationship with Apple through which the iPhone peddler accepts billions of dollars a year from Google to remain the default internet search browser on the iOS ecosystem.
Facebook and Instagram would probably love to have that type of ally, but they don't -- and they're paying for it dearly this year. Second quarter revenue fell 1% year-over-year to $28.8 million, and diluted earnings per share plunged to $2.46, down 32% from the year-ago period. Apple's tracking transparency changes, which forces iOS apps to ask users for permission before tracking their activity, are lowering ad value on Meta's social media apps.
And then there's TikTok, that new and shiny social media platform sopping up young consumers' time. TikTok embodies the challenge of software companies: They're easy to ditch for the latest trend. After all, the very thing that makes a software business appealing (low upfront costs, high profit) also attracts competition.
But there's a solid way to fight the fickle nature of software consumers: Add a layer of hardware to the mix.
Software and hardware is a much stickier duo than software and advertising. Think of Apple and Microsoft and the success each has had since the introduction of the personal computer. The downside to hardware is that sales are cyclical, with growth tied to new devices and features. Intermittent slumps can be brutal, marked by falling sales and periods of thin profit margins.
But if a company can pair sticky-but-cyclical hardware with good software, it has the foundation of a more durable business model that can last for many decades.
This is exactly what Meta is trying to accomplish with its metaverse bet.
Meta secures strategic partners
When unveiling the Quest Pro VR headset, Meta wasn't alone. Zuckerberg was joined by none other than Microsoft CEO Satya Nadella to announce that Microsoft Teams and Office 365 will be available on the Quest Pro. Aspects of the cloud computing service Microsoft Azure will also enable businesses to integrate device management and security with Quest Pro. And, the companies are looking to bring Xbox's cloud-based gaming service to the VR headset.
Oh, and there was another big cameo: Accenture (NYSE: ACN) CEO Julie Sweet. The IT consulting company is teaming up with Meta and Microsoft to further promote the benefits of VR in the workplace. Accenture said it has given 60,000 Quest 2 devices -- the predecessor to the newer Quest Pro -- to its own employees in the last year alone. As a sales and training specialist, Accenture could go a long way toward promoting and then selling VR headsets.
What do all of these partnerships mean? Meta isn't simply trying to build the metaverse. It's predicting that a new computing platform will take centerstage. PCs redefined technology in the 1980s, laptops did that again in the 1990s, smartphones went mainstream in the early aughts, and cloud computing turned access to software on its head in the 2010s. Zuckerberg believes that VR headsets, as the primary device used to interact with the metaverse, will be just as -- if not more -- transformative as other era-defining hardware.
Will VR take over the world? No. But could it augment how we work and play? Absolutely. Zuckerberg envisions a couple billion people using Meta's metaverse products in a decade, with each user spending an average of a couple hundred dollars a year. Other analysts predict the metaverse's total addressable market will be between $8 and $13 trillion by 2030, with an estimated 5 billion total users.
Meta is already running up against walls as an advertising-based software business. As the mixed-reality revolution unfolds, Meta needs a new outlet. Preferably, that outlet will be one in which it can exert some control -- without getting shut out by computing hardware competitors like apple.
What of those who say that Zuckerberg's bet on the metaverse and VR is money poorly spent? Time will tell. Bear in mind, though, that while $10.2 billion in operating losses last year on Reality Labs -- the segment that houses Quest Pro and other VR bets -- sounds like a massive number, Meta is not in trouble. Even in fiscal 2021, the company generated $46.6 billion in operating profit -- and that's after spending heavily on Reality Labs.
Zuckerberg and company want to build something new, sure. But as time drags on, Meta really needs its own computing device ecosystem to circumvent its reliance on Apple and other hardware companies. Investors may be getting impatient, but the message from the get-go was that the metaverse would take time to build. There is unlikely to be some singular lightning rod moment that flips Meta's VR from money-losing investment to highly profitable business segment. That's simply not how new technology works. Nevertheless, this is a necessary exercise for Meta. If that's not to your liking, this is probably not the stock you're looking for.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Nicholas Rossolillo and his clients have positions in Alphabet (C shares), Apple, and Meta Platforms, Inc. The Motley Fool has positions in and recommends Accenture, Alphabet (A shares), Alphabet (C shares), Apple, Meta Platforms, Inc., and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aspects of the cloud computing service Microsoft Azure will also enable businesses to integrate device management and security with Quest Pro. PCs redefined technology in the 1980s, laptops did that again in the 1990s, smartphones went mainstream in the early aughts, and cloud computing turned access to software on its head in the 2010s. Bear in mind, though, that while $10.2 billion in operating losses last year on Reality Labs -- the segment that houses Quest Pro and other VR bets -- sounds like a massive number, Meta is not in trouble.
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The problem with the software-based business model Meta's social media empire makes money from ads, but at its core, these are still software businesses. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Accenture, Alphabet (A shares), Alphabet (C shares), Apple, Meta Platforms, Inc., and Microsoft.
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Meta secures strategic partners When unveiling the Quest Pro VR headset, Meta wasn't alone. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Accenture, Alphabet (A shares), Alphabet (C shares), Apple, Meta Platforms, Inc., and Microsoft.
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Meta isn't simply trying to build the metaverse. 10 stocks we like better than Meta Platforms, Inc. The Motley Fool has positions in and recommends Accenture, Alphabet (A shares), Alphabet (C shares), Apple, Meta Platforms, Inc., and Microsoft.
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18815.0
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2022-10-21 00:00:00 UTC
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77% of Warren Buffett's $313 Billion Portfolio Is Invested in These 6 Stocks
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AAPL
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https://www.nasdaq.com/articles/77-of-warren-buffetts-%24313-billion-portfolio-is-invested-in-these-6-stocks
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Few high-profile money managers have a nose for making money quite like Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett. In the 57 years since taking the reins, the Oracle of Omaha, as he's come to be known, has led his company's Class A shares (BRK.A) to a jaw-dropping average annual return of 20.1%.
Buffett's willingness to stick with his investments for many years (if not decades) and his love of dividend stocks are two reasons he's been such a successful investor. But a key ingredient to Buffett's success that's often overlooked is his portfolio concentration.
The Oracle of Omaha believes diversification is "protection against ignorance." In other words, buying a boatload of stocks makes sense only if you don't know what you're doing, according to Buffett. Although Berkshire Hathaway's $313 billion investment portfolio has stakes in around four dozen securities, more than $241 billion of invested assets -- 77% of total portfolio value -- is tied up in just six stocks.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
1. Apple: 40.5% of invested assets
Warren Buffett's love for portfolio concentration is readily on display with his company's position in Apple (NASDAQ: AAPL). The tech stock makes up an astounding 40.5% ($126.6 billion) of invested assets and has been labeled by the Oracle of Omaha as one of Berkshire Hathaway's "four giants."
There is a long list of reasons for Buffett and his investment team to have such strong convictions in Apple. This includes having a well-known brand, an exceptionally loyal customer base, and a product and service lineup driven by innovation. For instance, introducing 5G-capable iPhones has helped Apple maintain approximately half of the U.S. smartphone market share.
Apple's evolution has also seen it become a force in the subscription services space. This ongoing transformation to a platform-based operating model should accelerate its organic growth rate, boost its operating margin, and minimize the revenue fluctuations associated with physical product replacement cycles.
As one final note, Apple's capital return program is unmatched. It pays out nearly $14.8 billion in dividends annually and has repurchased roughly $520 billion of its own common stock since the beginning of 2013.
Rising interest rates are a tailwind for banks with outstanding variable-rate loans. Effective Federal Funds Rate data by YCharts.
2. Bank of America: 10.5% of invested assets
Though Apple is Berkshire Hathaway's largest holding by a significant amount, bank stocks will forever be Warren Buffett's favorite industry. The $32.7 billion invested in money-center giant Bank of America (NYSE: BAC) is no surprise at all.
The beauty of bank stocks is their cyclical ties. Even though recessions are an inevitable part of the economic cycle, they're usually short-lived. By comparison, periods of economic expansion almost always last for years. Banks benefit from disproportionately long periods of expansion by growing their loans and deposits. It's a simple numbers game that favors patient investors like Buffett.
On a more company-specific level, Bank of America is the most interest-sensitive of the big banks. When the interest rate yield curve shifts, no bank sees its net interest income rise or fall more than BofA. With the Federal Reserve aggressively raising interest rates to tame historically high inflation, Bank of America can expect billions of dollars in added net interest income on its outstanding variable-rate loans.
BofA has a sizable capital return program as well. During bull markets, it's not uncommon for the company to return in excess of $20 billion to shareholders annually via dividends and buybacks.
3. Chevron: 8.4% of invested assets
Integrated oil and gas company Chevron (NYSE: CVX) is Berkshire Hathaway's third-largest holding ($26.2 billion of invested assets) and a relatively newer addition to the portfolio.
Betting big on energy isn't something Warren Buffett is known for. However, certain factors do suggest that energy commodity prices could remain elevated for years to come. Russia's invasions of Ukraine, coupled with global energy majors' significant reduction in capital investment during the COVID-19 pandemic, will make it difficult to quickly boost the global supply of crude oil and natural gas.
Another selling point for Chevron is its operating structure. Being "integrated" means Chevron controls upstream (drilling and exploration), midstream (transmission pipeline), and downstream (chemical plants and refineries) assets. While drilling brings home the juiciest operating margin, the company's midstream assets can generate highly predictable cash flow. Meanwhile, downstream assets benefit from lower input costs when crude falls. In short, downstream assets act as a hedge against falling prices.
You shouldn't be shocked to learn that Chevron is also quite generous with its capital return program. Chevron has raised its base annual payout for 35 consecutive years, and the company may repurchase up to $15 billion of its shares this year.
Image source: Coca-Cola.
4. Coca-Cola: 7% of invested assets
Beverage behemoth Coca-Cola (NYSE: KO) is Warren Buffett's longest-tenured holding (34 years), as well as Berkshire's fourth-largest position by market value ($22 billion).
Strong branding plays a key role in Coke's long-term outperformance. Few companies on the planet can cross generational gaps with ease and connect with consumers. Coca-Cola can do this by utilizing social media and well-known ambassadors to reach younger consumers while leaning on its holiday tie-ins to connect with more mature audiences.
Coca-Cola's geographic diversity is another reason for its bubbling success. With the exception of Cuba, North Korea, and Russia (the latter is due to its invasion of Ukraine), Coke has operations in every country worldwide. It holds about a 20% share of the cold beverage market in developed countries, which produce predictable cash flow, and a 10% share of the cold beverage space in faster-growing emerging markets.
Coca-Cola is a big-time dividend payer, too, with a 60-year streak of increasing its base annual payout. More importantly, Berkshire is netting an amazing 54% yield on Coca-Cola relative to its initial cost basis of about $3.25 per share.
5. American Express: 6.6% of invested assets
Have I mentioned Warren Buffett likes financial stocks? Second only to Coca-Cola in a continuous holding period is financial services company American Express (NYSE: AXP). AmEx, as it's better known, has been a Berkshire Hathaway staple for the past 29 years.
Similar to Bank of America, AmEx benefits from long periods of economic expansion. Specifically, it's able to "double dip." In addition to collecting payment processing fees from merchants, it acts as a lender via credit cards. Lengthy bull markets give AmEx an opportunity to generate interest income and fees.
Buffett should also be happy with AmEx's ability to attract affluent clientele. High-earning individuals are less likely to alter their spending habits or fail to meet their repayment obligations during minor domestic or global economic hiccups. These well-to-do customers help AmEx navigate downturns better than most lenders.
Further, American Express is an income powerhouse -- at least to Berkshire Hathaway. Thanks to a low cost basis of $8.49 per AmEx share, Buffett's company is netting a 24.5% annual yield on cost!
6. Occidental Petroleum: 4.1% of invested assets
Lastly, Buffett's company has almost $13 billion invested in integrated oil and gas stock Occidental Petroleum (NYSE: OXY). Note this $13 billion doesn't include the $10 billion in Occidental preferred stock Berkshire Hathaway purchased in 2019.
Among these six top holdings, Occidental is the newest and, arguably, the position Buffett has built up most aggressively this year. Pardon the pun, but the catalysts fueling Chevron are the same for Occidental Petroleum. As long as the global energy supply chain remains broken or constrained, demand should provide a healthy floor beneath the price of crude oil and natural gas.
Though it's an integrated provider like Chevron, even more of Occidental's sales are skewed toward its drilling and exploration operations. If oil and natural gas prices remain well above average, Occidental Petroleum has a chance to benefit even more than Chevron.
To keep with the theme, there's a handsome capital return in store for Berkshire Hathaway. Though Occidental's 0.8% dividend yield is nothing to write home about, Berkshire is generating an 8% annual yield on its $10 billion preferred stock position. Altogether, Buffett's company should collect $901 million in dividend income from Occidental Petroleum over the next 12 months.
10 stocks we like better than Apple
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American Express and Bank of America are advertising partners of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and 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: 40.5% of invested assets Warren Buffett's love for portfolio concentration is readily on display with his company's position in Apple (NASDAQ: AAPL). Coca-Cola can do this by utilizing social media and well-known ambassadors to reach younger consumers while leaning on its holiday tie-ins to connect with more mature audiences. High-earning individuals are less likely to alter their spending habits or fail to meet their repayment obligations during minor domestic or global economic hiccups.
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Apple: 40.5% of invested assets Warren Buffett's love for portfolio concentration is readily on display with his company's position in Apple (NASDAQ: AAPL). Chevron: 8.4% of invested assets Integrated oil and gas company Chevron (NYSE: CVX) is Berkshire Hathaway's third-largest holding ($26.2 billion of invested assets) and a relatively newer addition to the portfolio. Occidental Petroleum: 4.1% of invested assets Lastly, Buffett's company has almost $13 billion invested in integrated oil and gas stock Occidental Petroleum (NYSE: OXY).
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Apple: 40.5% of invested assets Warren Buffett's love for portfolio concentration is readily on display with his company's position in Apple (NASDAQ: AAPL). Bank of America: 10.5% of invested assets Though Apple is Berkshire Hathaway's largest holding by a significant amount, bank stocks will forever be Warren Buffett's favorite industry. Chevron: 8.4% of invested assets Integrated oil and gas company Chevron (NYSE: CVX) is Berkshire Hathaway's third-largest holding ($26.2 billion of invested assets) and a relatively newer addition to the portfolio.
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Apple: 40.5% of invested assets Warren Buffett's love for portfolio concentration is readily on display with his company's position in Apple (NASDAQ: AAPL). Coca-Cola: 7% of invested assets Beverage behemoth Coca-Cola (NYSE: KO) is Warren Buffett's longest-tenured holding (34 years), as well as Berkshire's fourth-largest position by market value ($22 billion). Occidental Petroleum: 4.1% of invested assets Lastly, Buffett's company has almost $13 billion invested in integrated oil and gas stock Occidental Petroleum (NYSE: OXY).
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18816.0
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2022-10-21 00:00:00 UTC
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2 Reasons to Buy Apple Stock, and 1 Reason to Sell
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AAPL
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https://www.nasdaq.com/articles/2-reasons-to-buy-apple-stock-and-1-reason-to-sell
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nan
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Apple's (NASDAQ: AAPL) brand power and robust sales of iPhones and Macs have provided a cushion under the stock in a volatile year for the markets. Year to date, shares of Apple have fallen 19%, which is slightly better than the S&P 500 index decline of 22.5% at the time of writing. As investors well know, many growth-oriented tech stocks have fallen much harder.
With high inflation causing increasing uncertainty about the direction of the economy and the stock market, investors are probably wondering whether they should buy or sell Apple right now.
While there are good reasons to believe Apple can continue to outperform the market in this environment, the company doesn't necessarily make affordable products, which could be a problem if the economy slows further in 2023.
Let's first review two reasons to be bullish on Apple before considering why you still might want to avoid the stock.
Gaining market share
The markets Apple competes in are highly competitive. There are many vendors for smartphones, PCs, and tablets, and these devices were in high demand during the pandemic with more people working from home. This makes Apple's recent share gain in smartphones all the more impressive.
Samsung is the top smartphone manufacturer, with 21.8% market share in the second quarter. Apple is second with 15.6%, but both companies have gained share over the last year at the expense of the rest of the market. Apple's share was up from 14.2% in the same quarter of 2021.
Apple is also gaining share with the Mac. In the third quarter, Mac overtook Dell for the top spot in the U.S. market for personal computers with a 28.8% share. This important gain comes as Apple is enjoying strong demand for its new Mac lineup powered by its proprietary M1 processors, recently moving into the M2 generation.
Clearly, these market share gains reflect a strong brand but also a superior supply chain during a time of shortages across the semiconductor industry. CEO Tim Cook's experience as Apple's Chief Operating Officer under Steve Jobs shouldn't be overlooked.
Demand for iPhone 14 Pro Max
Apple set a record for iPhone revenue in the fiscal third quarter ending in June, and analysts expect another relatively strong quarter of sales in the next quarter. The consensus analyst estimate is calling for total revenue to grow 6.6% year over year, but one analyst believes Apple will report even better numbers.
The new iPhone 14 Pro Max, which sells at the premium price of $1,099, has experienced stronger demand than Apple expected. The company has reportedly cut production of the cheaper iPhone 14 Plus, as more customers opt for the top-shelf model. Morgan Stanley analyst Erik Woodring believes Apple will report a better-than-expected quarter due to sales of iPhone, iPad, and Mac remaining stable amid a challenging economic environment. Woodring sees Apple reporting revenue about 3% above the $88.9 billion consensus revenue estimate for the September-ending quarter.
iPhone risks and premium valuation
One uncertainty for Apple looking ahead to 2023 is a lengthening replacement cycle for iPhone. Some users upgrade about every three to four years, according to some estimates. Since the iPhone still makes up about half of total revenue, this could present a problem for Apple's growth if consumers start to hold back on upgrading to new iPhones in a recession.
This presents a near-term downside risk to the stock price that investors have to decide if they are willing to accept in order to achieve long-term gain. The stock trades at a forward price-to-earnings (P/E) ratio of 22, which is a premium to the S&P 500's forward P/E of 17. One weak quarter would likely send the stock down from these valuation levels.
Apple generated over $100 billion in free cash flow over the last year and has nearly as much in net cash sitting in the bank. It's a financial fortress that can navigate difficult waters in the economy. But if you are looking for undervalued stocks with low downside risk in the near term, Apple doesn't fit those criteria.
With the stock trading at a premium valuation, I would be cautious about buying Apple shares in an era of inflation at 40-year records.
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
John Ballard 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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Apple's (NASDAQ: AAPL) brand power and robust sales of iPhones and Macs have provided a cushion under the stock in a volatile year for the markets. While there are good reasons to believe Apple can continue to outperform the market in this environment, the company doesn't necessarily make affordable products, which could be a problem if the economy slows further in 2023. Morgan Stanley analyst Erik Woodring believes Apple will report a better-than-expected quarter due to sales of iPhone, iPad, and Mac remaining stable amid a challenging economic environment.
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Apple's (NASDAQ: AAPL) brand power and robust sales of iPhones and Macs have provided a cushion under the stock in a volatile year for the markets. This makes Apple's recent share gain in smartphones all the more impressive. Demand for iPhone 14 Pro Max Apple set a record for iPhone revenue in the fiscal third quarter ending in June, and analysts expect another relatively strong quarter of sales in the next quarter.
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Apple's (NASDAQ: AAPL) brand power and robust sales of iPhones and Macs have provided a cushion under the stock in a volatile year for the markets. With high inflation causing increasing uncertainty about the direction of the economy and the stock market, investors are probably wondering whether they should buy or sell Apple right now. Demand for iPhone 14 Pro Max Apple set a record for iPhone revenue in the fiscal third quarter ending in June, and analysts expect another relatively strong quarter of sales in the next quarter.
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Apple's (NASDAQ: AAPL) brand power and robust sales of iPhones and Macs have provided a cushion under the stock in a volatile year for the markets. Apple is second with 15.6%, but both companies have gained share over the last year at the expense of the rest of the market. Apple's share was up from 14.2% in the same quarter of 2021.
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18817.0
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2022-10-20 00:00:00 UTC
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Apple (AAPL) Earnings Expected to Grow: Should You Buy?
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-earnings-expected-to-grow%3A-should-you-buy
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Apple (AAPL) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2022. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on October 27, 2022, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on theearnings call it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This maker of iPhones, iPads and other products is expected to post quarterly earnings of $1.26 per share in its upcoming report, which represents a year-over-year change of +1.6%.
Revenues are expected to be $88.43 billion, up 6.1% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 1.2% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Apple?
For Apple, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.79%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Apple will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Apple would post earnings of $1.14 per share when it actually produced earnings of $1.20, delivering a surprise of +5.26%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Apple appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
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
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 expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2022. Apple Inc. (AAPL): Free Stock Analysis Report This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
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Apple (AAPL) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2022. Apple Inc. (AAPL): Free Stock Analysis Report This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
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Apple (AAPL) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2022. Apple Inc. (AAPL): Free Stock Analysis Report The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate.
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Apple (AAPL) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2022. Apple Inc. (AAPL): Free Stock Analysis Report The earnings report, which is expected to be released on October 27, 2022, might help the stock move higher if these key numbers are better than expectations.
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18818.0
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2022-10-20 00:00:00 UTC
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Foxconn says production normal at iPhone plant in China despite COVID curbs
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AAPL
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https://www.nasdaq.com/articles/foxconn-says-production-normal-at-iphone-plant-in-china-despite-covid-curbs
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nan
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nan
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Recasts to cite Foxconn notice and response, adds COVID details
Oct 21 (Reuters) - Taiwan electronics manufacturer Foxconn 2317.TWsaid on Friday production at its largest iPhone factory remains normal, despite tightening COVID-19 restrictions at the plant in the Chinese city of Zhengzhou this week.
The Zhengzhou campus, which assembles Apple Inc's AAPL.O iPhone and has about 300,000 workers, banned all dining in and required workers to take their meals back to their dormitories beginning on Wednesday, a notice posted on the factory's official WeChat account showed.
"Zhengzhou (plant) still maintains normal production and has little impact(from the situation)," Foxconn told Reuters.
The new measures followZhengzhou's latest outbreak recording a total of 196 cases since Oct. 8, and come as Foxconn's factory is ramping up production of the latest iPhone 14 models.
Apple did not immediately respond to a Reuters request for comment.
(Reporting by Beijing newsroom and Juby Babu in Bengaluru; Editing by Jacqueline Wong and Kim Coghill)
((Juby.Babu@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Zhengzhou campus, which assembles Apple Inc's AAPL.O iPhone and has about 300,000 workers, banned all dining in and required workers to take their meals back to their dormitories beginning on Wednesday, a notice posted on the factory's official WeChat account showed. Recasts to cite Foxconn notice and response, adds COVID details Oct 21 (Reuters) - Taiwan electronics manufacturer Foxconn 2317.TWsaid on Friday production at its largest iPhone factory remains normal, despite tightening COVID-19 restrictions at the plant in the Chinese city of Zhengzhou this week. "Zhengzhou (plant) still maintains normal production and has little impact(from the situation)," Foxconn told Reuters.
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The Zhengzhou campus, which assembles Apple Inc's AAPL.O iPhone and has about 300,000 workers, banned all dining in and required workers to take their meals back to their dormitories beginning on Wednesday, a notice posted on the factory's official WeChat account showed. Recasts to cite Foxconn notice and response, adds COVID details Oct 21 (Reuters) - Taiwan electronics manufacturer Foxconn 2317.TWsaid on Friday production at its largest iPhone factory remains normal, despite tightening COVID-19 restrictions at the plant in the Chinese city of Zhengzhou this week. "Zhengzhou (plant) still maintains normal production and has little impact(from the situation)," Foxconn told Reuters.
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The Zhengzhou campus, which assembles Apple Inc's AAPL.O iPhone and has about 300,000 workers, banned all dining in and required workers to take their meals back to their dormitories beginning on Wednesday, a notice posted on the factory's official WeChat account showed. Recasts to cite Foxconn notice and response, adds COVID details Oct 21 (Reuters) - Taiwan electronics manufacturer Foxconn 2317.TWsaid on Friday production at its largest iPhone factory remains normal, despite tightening COVID-19 restrictions at the plant in the Chinese city of Zhengzhou this week. (Reporting by Beijing newsroom and Juby Babu in Bengaluru; Editing by Jacqueline Wong and Kim Coghill) ((Juby.Babu@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Zhengzhou campus, which assembles Apple Inc's AAPL.O iPhone and has about 300,000 workers, banned all dining in and required workers to take their meals back to their dormitories beginning on Wednesday, a notice posted on the factory's official WeChat account showed. Recasts to cite Foxconn notice and response, adds COVID details Oct 21 (Reuters) - Taiwan electronics manufacturer Foxconn 2317.TWsaid on Friday production at its largest iPhone factory remains normal, despite tightening COVID-19 restrictions at the plant in the Chinese city of Zhengzhou this week. "Zhengzhou (plant) still maintains normal production and has little impact(from the situation)," Foxconn told Reuters.
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18819.0
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2022-10-20 00:00:00 UTC
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How Critical Is This Earnings Season?
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AAPL
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https://www.nasdaq.com/articles/how-critical-is-this-earnings-season
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nan
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nan
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The earnings picture has been weighed down by headwinds like inflation, supply-chain bottlenecks and macroeconomic uncertainty over the last few quarters and these factors are very much at play in the ongoing Q3 earnings season as well.
Over the last few weeks, many in the market feared a major reset in the earnings outlook as a result of this earnings season, with companies across the board guiding lower in response to the afforementioned headwinds.
We are not seeing that in the earnings reports that have come out already.
Including all of this morning’s releases, we now have Q3 results for 88 S&P 500 members or 17.6% of the index’s total membership. Total earnings for these companies are down -4.2% from the same period last year on +7.4% higher revenues, with 77.3% beating EPS estimates and 64.8% beating revenue estimates.
The earnings and revenue growth for this group of 88 index members is about in-line with what we saw from this group of companies in the first half of the year.
The comparison charts below put the EPS and revenue beats % for these 88 index members in a historical context.
Image Source: Zacks Investment Research
Contrary to pre-season fears of this earnings season prompting a lower reset for expectations, the tone and substance of management guidance has been good enough; not great, but not bad either.
We have had some companies guide lower, but the trend has hardly been widespread, at least at this stage. In fact, a number of the big banks like Bank of America BAC and JPMorgan JPM provided reassuring commentary about what they see in the current period.
Estimates have been coming down already, both for 2022 Q4 and full-year 2023, and the trend will likely continue in the coming days as we enter the heart of the Q3 earnings season. As we have been pointing out all along, the narrative that estimates are out of line with the economic ground reality is erroneous as it doesn’t account for unusual profitability drivers of the Energy sector. Excluding the Energy sector, 2023 estimates have come down more than -7% since peaking in April.
For more details about the Q3 earnings season and the overall earnings picture, please check out our weekly Earnings Trends report >>>>> Earnings Picture is Good Enough, So Far
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
Bank of America Corporation (BAC): Free Stock Analysis Report
JPMorgan Chase & Co. (JPM): Free Stock Analysis 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 Inc. (AAPL): Free Stock Analysis Report Image Source: Zacks Investment Research Contrary to pre-season fears of this earnings season prompting a lower reset for expectations, the tone and substance of management guidance has been good enough; not great, but not bad either. As we have been pointing out all along, the narrative that estimates are out of line with the economic ground reality is erroneous as it doesn’t account for unusual profitability drivers of the Energy sector.
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Apple Inc. (AAPL): Free Stock Analysis Report Total earnings for these companies are down -4.2% from the same period last year on +7.4% higher revenues, with 77.3% beating EPS estimates and 64.8% beating revenue estimates. For more details about the Q3 earnings season and the overall earnings picture, please check out our weekly Earnings Trends report >>>>> Earnings Picture is Good Enough, So Far
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Apple Inc. (AAPL): Free Stock Analysis Report Over the last few weeks, many in the market feared a major reset in the earnings outlook as a result of this earnings season, with companies across the board guiding lower in response to the afforementioned headwinds. Total earnings for these companies are down -4.2% from the same period last year on +7.4% higher revenues, with 77.3% beating EPS estimates and 64.8% beating revenue estimates.
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Apple Inc. (AAPL): Free Stock Analysis Report Over the last few weeks, many in the market feared a major reset in the earnings outlook as a result of this earnings season, with companies across the board guiding lower in response to the afforementioned headwinds. Want the latest recommendations from Zacks Investment Research?
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18820.0
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2022-10-20 00:00:00 UTC
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After Hours Most Active for Oct 20, 2022 : SNAP, ATUS, IMUX, ADT, DDL, AUY, IHS, ESGU, TQQQ, AAPL, MQ, QQQ
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-oct-20-2022-%3A-snap-atus-imux-adt-ddl-auy-ihs-esgu-tqqq-aapl-mq
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -39.82 to 11,006.89. The total After hours volume is currently 64,735,427 shares traded.
The following are the most active stocks for the after hours session:
Snap Inc. (SNAP) is -2.71 at $8.08, with 22,826,472 shares traded. Smarter Analyst Reports: Snap Plunges 22% After-Hours on Disappointing Q3 Results
Altice USA, Inc. (ATUS) is unchanged at $5.63, with 9,514,687 shares traded. ATUS's current last sale is 46.92% of the target price of $12.
Immunic, Inc. (IMUX) is -6.73 at $2.47, with 3,844,453 shares traded. As reported by Zacks, the current mean recommendation for IMUX is in the "strong buy range".
ADT Inc. (ADT) is unchanged at $8.55, with 3,651,213 shares traded. ADT's current last sale is 85.5% of the target price of $10.
Dingdong (Cayman) Limited (DDL) is +0.01 at $3.52, with 3,000,284 shares traded. As reported by Zacks, the current mean recommendation for DDL is in the "buy range".
Yamana Gold Inc. (AUY) is unchanged at $4.39, with 2,063,072 shares traded.AUY is scheduled to provide an earnings report on 10/27/2022, for the fiscal quarter ending Sep2022. The consensus earnings per share forecast is 0.05 per share, which represents a 7 percent increase over the EPS one Year Ago
IHS Holding Limited (IHS) is unchanged at $5.14, with 1,988,306 shares traded. As reported by Zacks, the current mean recommendation for IHS is in the "buy range".
iShares ESG Aware MSCI USA ETF (ESGU) is +0.0556 at $81.09, with 1,726,681 shares traded. This represents a 4.92% increase from its 52 Week Low.
ProShares UltraPro QQQ (TQQQ) is -0.16 at $19.05, with 1,708,216 shares traded. This represents a 16.73% increase from its 52 Week Low.
Apple Inc. (AAPL) is -0.17 at $143.22, with 1,702,335 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2022. The consensus EPS forecast is $1.26. 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
Marqeta, Inc. (MQ) is unchanged at $7.26, with 1,619,915 shares traded. MQ's current last sale is 60.5% of the target price of $12.
Invesco QQQ Trust, Series 1 (QQQ) is -0.8 at $268.31, with 1,468,361 shares traded. This represents a 5.53% increase from its 52 Week Low.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.17 at $143.22, with 1,702,335 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 IMUX is in the "strong buy range".
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Apple Inc. (AAPL) is -0.17 at $143.22, with 1,702,335 shares traded. AAPL is scheduled to provide an earnings report on 10/27/2022, for the fiscal quarter ending Sep2022. Yamana Gold Inc. (AUY) is unchanged at $4.39, with 2,063,072 shares traded.AUY 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 -0.17 at $143.22, with 1,702,335 shares traded. AAPL is scheduled to provide an earnings report on 10/27/2022, for the fiscal quarter ending Sep2022. ADT Inc. (ADT) is unchanged at $8.55, with 3,651,213 shares traded.
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Apple Inc. (AAPL) is -0.17 at $143.22, with 1,702,335 shares traded. AAPL is scheduled to provide an earnings report on 10/27/2022, for the fiscal quarter ending Sep2022. The NASDAQ 100 After Hours Indicator is down -39.82 to 11,006.89.
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18821.0
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2022-10-20 00:00:00 UTC
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Microsoft (MSFT) to Report Q1 Earnings: What's in the Cards?
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AAPL
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https://www.nasdaq.com/articles/microsoft-msft-to-report-q1-earnings%3A-whats-in-the-cards
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nan
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nan
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Microsoft MSFT is set to report first-quarter fiscal 2023 results on Oct 25.
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, the average surprise being 4.53%.
Let’s see how things have shaped up for the upcoming announcement:
Microsoft Corporation Price and EPS Surprise
Microsoft Corporation price-eps-surprise | Microsoft Corporation Quote
Teams Momentum to Aid Growth
Continued strength in its cloud computing platform, Azure, is expected to have positively impacted Microsoft’s fiscal first-quarter numbers. Azure has been witnessing rapid adoption owing to the accelerated digital transformation by business enterprises globally. Microsoft’s industry-specific cloud offering is also driving adoption.
Intelligent Cloud revenues are anticipated between $20.3 billion and $20.6 billion in the fiscal first quarter. Azure's revenue growth is likely to have been aided by continued strength in consumption-based services.
The Zacks Consensus Estimate for Intelligent Cloud revenues is currently pegged at $20.4 billion, indicating 20.3% growth from the figure reported in the year-ago quarter.
The momentum witnessed for Teams, Microsoft’s workspace communication offering, might have acted as a tailwind. Teams’ user growth is expected to have been driven by the continuation of remote work and mainstream adoption of the hybrid/flexible work model.
The introductions of Teams Rooms, Mesh for Teams and Teams Essentials are noteworthy developments. More than 60% of the Fortune 500 have chosen Teams Rooms to connect employees across the hybrid workplace so far in 2022.
Teams’ expanding customer base and features have been actually helping Microsoft win share in the enterprise communication market against Zoom ZM. Shares of Microsoft have plunged 58.5% year to date against Zoom’s decline of 29.7%.
Revenues from Enterprise customers grew 31% year over year and represented 52% of total revenues, up from 45% in fourth-quarter fiscal 2022. The number of Enterprise customers grew 24% year over year to more than 198,900.
Strong adoption of Dynamics 365 is expected to have driven top-line growth in the to-be-reported quarter. Microsoft expects revenue growth for Dynamics to be in the mid-to-high teens range, driven by strength in Dynamics 365, including continued momentum in PowerApps.
PC Shipment Decline Likely to Hurt Top Line
Revenues from Windows are likely to have been driven by steady traction seen in Windows Commercial products and cloud services growth amid weak PC demand.
The decline seen in personal computer (PC) shipments in the first half of 2022, after two consecutive years of strong year-over-year growth, aggravated in the calendar third quarter, according to the latest data compiled by market research firm, Gartner.
Among big PC vendors, Dell Technologies DELL, Apple AAPL and Lenovo registered a decrease in shipments.
Dell Technologies’ PC volumes plunged 21.1% to 12.02 million units, while Apple registered a 15.6% year-over-year decline in shipments to 5.8 million units.
Continued weakness in the PC market demand and advertising spend is expected to have adversely impacted Windows OEM, Surface, LinkedIn, and search and news advertising revenues.
This Zacks Rank #4 (Sell) company expects Surface revenues to decline in the lower single-digit range.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In Windows commercial products and cloud services, customer demand for Microsoft 365 and advanced security solutions is expected to drive growth in the high single digits. The consensus mark for revenues from Windows stands at $5.36 billion.
In More Personal Computing, Microsoft expects revenues to grow between 1% and 4% in constant currency (cc) or $13 billion to $13.4 billion. The company expects overall Windows OEM revenues to decline in the high single digits.
The Zacks Consensus Estimate for More Personal Computing revenues is currently pegged at $13.12 billion, indicating a 1.4% decline from the figure reported in the year-ago quarter.
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
Microsoft Corporation (MSFT): Free Stock Analysis Report
Dell Technologies Inc. (DELL): Free Stock Analysis Report
Zoom Video Communications, Inc. (ZM): 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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Among big PC vendors, Dell Technologies DELL, Apple AAPL and Lenovo registered a decrease in shipments. Apple Inc. (AAPL): Free Stock Analysis Report Teams’ expanding customer base and features have been actually helping Microsoft win share in the enterprise communication market against Zoom ZM.
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Among big PC vendors, Dell Technologies DELL, Apple AAPL and Lenovo registered a decrease in shipments. Apple Inc. (AAPL): Free Stock Analysis Report Let’s see how things have shaped up for the upcoming announcement: Microsoft Corporation Price and EPS Surprise Microsoft Corporation price-eps-surprise | Microsoft Corporation Quote Teams Momentum to Aid Growth Continued strength in its cloud computing platform, Azure, is expected to have positively impacted Microsoft’s fiscal first-quarter numbers.
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Among big PC vendors, Dell Technologies DELL, Apple AAPL and Lenovo registered a decrease in shipments. Apple Inc. (AAPL): Free Stock Analysis Report Let’s see how things have shaped up for the upcoming announcement: Microsoft Corporation Price and EPS Surprise Microsoft Corporation price-eps-surprise | Microsoft Corporation Quote Teams Momentum to Aid Growth Continued strength in its cloud computing platform, Azure, is expected to have positively impacted Microsoft’s fiscal first-quarter numbers.
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Among big PC vendors, Dell Technologies DELL, Apple AAPL and Lenovo registered a decrease in shipments. Apple Inc. (AAPL): Free Stock Analysis Report 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.
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18822.0
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2022-10-20 00:00:00 UTC
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Apple Reports After the Close on 10/27 -- Options Contracts Expire the Next Day
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AAPL
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https://www.nasdaq.com/articles/apple-reports-after-the-close-on-10-27-options-contracts-expire-the-next-day
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nan
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nan
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According to NextEarningsDate.com, the Apple (NASD: AAPL) AAPL next earnings date is projected to be 10/27 after the close, with earnings estimates of $1.26/share on $88.74 Billion of revenue. Looking back, the recent Apple earnings history looks like this:
PERIOD EARNINGS DATE EARNINGS
Q3 2022 7/28/2022 1.200
Q2 2022 4/28/2022 1.520
Q1 2022 1/27/2022 2.100
Q4 2021 10/28/2021 1.240
Q3 2021 7/27/2021 1.300
The company has an impressive long-term earnings per share chart:
And with equally impressive revenue growth:
But earnings reports can often uniquely bring abrupt volatility to a stock, in either direction, as investors digest the fundamental details. And that volatility can be a stock options trader's dream come true — so such traders will be interested to know that Apple has options available that expire October 28th.
Visit StockOptionsChannel.com to investigate the AAPL options chain on either the puts side or the call side, for further ideas.
Apple's current dividend yield is 0.64%, with the following Apple Dividend History. Also, dividend investors should check out the following ideas for Top Dividends and Monthly Dividend Paying Stocks.
Also see:
Dividend History
Funds Holding PGLC
MMP Dividend History
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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According to NextEarningsDate.com, the Apple (NASD: AAPL) AAPL next earnings date is projected to be 10/27 after the close, with earnings estimates of $1.26/share on $88.74 Billion of revenue. Visit StockOptionsChannel.com to investigate the AAPL options chain on either the puts side or the call side, for further ideas. The company has an impressive long-term earnings per share chart: And with equally impressive revenue growth: But earnings reports can often uniquely bring abrupt volatility to a stock, in either direction, as investors digest the fundamental details.
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According to NextEarningsDate.com, the Apple (NASD: AAPL) AAPL next earnings date is projected to be 10/27 after the close, with earnings estimates of $1.26/share on $88.74 Billion of revenue. Visit StockOptionsChannel.com to investigate the AAPL options chain on either the puts side or the call side, for further ideas. Looking back, the recent Apple earnings history looks like this:
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According to NextEarningsDate.com, the Apple (NASD: AAPL) AAPL next earnings date is projected to be 10/27 after the close, with earnings estimates of $1.26/share on $88.74 Billion of revenue. Visit StockOptionsChannel.com to investigate the AAPL options chain on either the puts side or the call side, for further ideas. Apple's current dividend yield is 0.64%, with the following Apple Dividend History.
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According to NextEarningsDate.com, the Apple (NASD: AAPL) AAPL next earnings date is projected to be 10/27 after the close, with earnings estimates of $1.26/share on $88.74 Billion of revenue. Visit StockOptionsChannel.com to investigate the AAPL options chain on either the puts side or the call side, for further ideas. And that volatility can be a stock options trader's dream come true — so such traders will be interested to know that Apple has options available that expire October 28th.
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18823.0
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2022-10-20 00:00:00 UTC
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Meta Platforms (META) Banks on AI to Boost Growth Prospects
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AAPL
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https://www.nasdaq.com/articles/meta-platforms-meta-banks-on-ai-to-boost-growth-prospects
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nan
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nan
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Meta Platforms META is investing heavily in developing AI, which is supporting the build-up of the metaverse. AI will also help Meta drive revenue growth in its ad business, which is facing the worst downturn in the company’s history.
The ad revenue business is still Meta's primary income source. However, it is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes.
Apple’s iOS changes have made ad targeting difficult, which has increased the cost of driving outcomes. Measuring these outcomes is tough, and Meta expects these factors to hurt advertising growth in the fourth quarter of 2022.
Meta is also suffering from geopolitical tensions like the Russia-Ukraine war, which reduced its monthly active users across its family of apps, namely Facebook and Instagram. Also, rising inflation weakened digital advertising revenues.
The Zacks Rank #5 (Strong Sell) stock has tumbled 60.4% in the year-to-date period compared with the Zacks Internet – Software industry’s decline of 56.1%.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Meta Platforms, Inc. Price and Consensus
Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote
Meta is banking its future on building the metaverse, which is a shared virtual 3D world, or multiverse, and provides more immersive ways to interact and collaborate, bringing globalization to a whole new level. It is created by the use of virtual and augmented reality.
However, Meta’s financial plans to generate sufficient operating income from its Family of Apps business segment to fund the growth of its Reality Labs responsible for building the metaverse have taken a major hit. The company has been recently closing various long-term projects, which are burning a lot of cash.
In September, Meta announced that it discontinued its cryptocurrency wallet pilot project — Novi. This is a major setback for the company in developing the metaverse as an independent commercial platform as both the crypto and NFT markets crashed.
Although Meta’s short-term revenue growth looks bleak, the company is confident about its long-term prospects. It believes its investments in AI will help address the issues faced in its ad revenue business and solve the problems for building the metaverse.
Meta Banking on AI to Build Metaverse
Meta is investing in AI with the belief that it will generate positive ROI for the business as it helps address the newest trends in the social media market and decrease its security threats, which have impacted it for long.
The company’s investment in AI will help users navigate its different platforms seamlessly and more securely. It expects these features to boost its user growth and drive ad revenues, which will help fund metaverse growth.
Also, Meta is hell-bent on turning metaverse into its primary source of income. Per Bloomberg, the metaverse market will grow to about $140 billion by 2025. This will provide new revenue-generating opportunities for Meta, which is looking to invest $10 billion in the next 10 years to help in building the metaverse.
However, in order to make metaverse a reality, significant advancements are required in network latency, symmetrical bandwidth and overall speed of networks. The transition to the Metaverse is a collective effort, and Meta has been collaborating with fellow PyTorch foundation co-founders Microsoft MSFT and Advanced Micro Devices AMD to develop and architect the required networking system and AI models for the metaverse.
Microsoft is bringing new work and productivity tools to Meta Quest Pro and Meta Quest 2 next year. These include apps like Microsoft Windows 365 and Microsoft Teams and the ability to join a Teams meeting from inside Meta Horizons Workrooms, which will help create a seamless working experience in the metaverse.
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.
To build the metaverse, major breakthroughs need to be made in AI. Meta recently built the first speech-to-speech translation system for Hokkien, an oral language in China. This AI model can be used for other languages and will help in bridging the language barrier in the metaverse. This AI model is an expansion of Meta’s previous model that can translate 200 different languages and improve the quality of translations across its various technologies.
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
Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Meta Platforms, Inc. (META): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, it is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Apple Inc. (AAPL): Free Stock Analysis Report Meta is also suffering from geopolitical tensions like the Russia-Ukraine war, which reduced its monthly active users across its family of apps, namely Facebook and Instagram.
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However, it is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Apple Inc. (AAPL): Free Stock Analysis Report The transition to the Metaverse is a collective effort, and Meta has been collaborating with fellow PyTorch foundation co-founders Microsoft MSFT and Advanced Micro Devices AMD to develop and architect the required networking system and AI models for the metaverse.
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However, it is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Apple Inc. (AAPL): Free Stock Analysis Report Meta Platforms, Inc. Price and Consensus Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote Meta is banking its future on building the metaverse, which is a shared virtual 3D world, or multiverse, and provides more immersive ways to interact and collaborate, bringing globalization to a whole new level.
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However, it is facing declining growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Apple Inc. (AAPL): Free Stock Analysis Report It expects these features to boost its user growth and drive ad revenues, which will help fund metaverse growth.
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18824.0
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2022-10-20 00:00:00 UTC
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MSCI Scheduled to Report Q3 Earnings: What's in the Cards?
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AAPL
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https://www.nasdaq.com/articles/msci-scheduled-to-report-q3-earnings%3A-whats-in-the-cards
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MSCI MSCI is set to report its third-quarter 2022 results on Oct 25.
The Zacks Consensus Estimate for third-quarter earnings has been steady at $2.79 per share over the past 30 days, suggesting 10.28% growth from the figure reported in the year-ago quarter.
The consensus mark for revenues is pegged at $564.96 million, indicating an increase of 9.26% from the year-ago quarter.
Notably, the company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the earnings surprise being 4.30%, on average.
MSCI Inc Price and EPS Surprise
MSCI Inc price-eps-surprise | MSCI Inc Quote
Let’s see how things are shaping up for the upcoming announcement.
Factors to Note
MSCI’s third-quarter 2022 results are expected to benefit from the increasing uptake of climate and ESG solutions in the investment process.
Expanding usage of ESG tools bodes well for MSCI. The retention rate for ESG and Climate tools was 97.3% in the second quarter of 2022, reflecting strong demand for the company’s solutions.
In second-quarter 2022, new client relationships formed roughly 50% of new subscription sales in the ESG and Climate ratings and research segment.
MSCI’s expanding portfolio of ESG and Climate tools has been noteworthy. The company’s latest Net Zero tracker illustrates how listed companies align with different temperature rise scenarios. The availability of new equity factor models, including the first models to offer sustainability, crowding and machine learning factors, has been a key catalyst. The sustainability factor includes both ESG and carbon efficiency components, which are expected to aid demand for MSCI’s solutions.
Partnership with Snowflake boosts MSCI’s distribution capabilities of these factor models. The company has also collaborated with MarketAxess Holdings to offer innovative portfolio analytics solutions and co-branded Fixed Income Indexes.
Moreover, MSCI’s focus on expanding into new areas like Wealth Management, Insurers, Derivatives, case funds, broker-dealers and ESG & Climate is expected to have driven growth in its customer base in the to-be-reported quarter.
However, turbulent equity markets are expected to negatively impact revenues generated from asset-based fees in the to-be-reported quarter. Moreover, unfavorable forex has also been a concern.
What Our Model Says
Per the Zacks model, 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. But that’s not the case here.
MSCI has an Earnings ESP of -1.29% and a Zacks Rank #4 (Sell). 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:
Perion Network PERI has an Earnings ESP of +10.58% and sports a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Perion shares are up 0.7% year to date. PERI is set to report its third-quarter 2022 results on Nov 9.
ZoomInfo ZI has an Earnings ESP of +1.27% and a Zacks Rank #2.
ZoomInfo shares have declined 36.5% 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 +0.79% and a Zacks Rank #3.
Apple shares are down 3.7% 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"
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
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Apple Inc. (AAPL): Free Stock Analysis Report
MSCI Inc (MSCI): Free Stock Analysis Report
Perion Network Ltd (PERI): Free Stock Analysis Report
ZoomInfo Technologies Inc. (ZI): 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 +0.79% 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 Inc. (AAPL): Free Stock Analysis Report Apple AAPL has an Earnings ESP of +0.79% and a Zacks Rank #3. AAPL is set to report its fourth-quarter fiscal 2022 results on Oct 27.
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Apple AAPL has an Earnings ESP of +0.79% 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 +0.79% 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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18825.0
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2022-10-20 00:00:00 UTC
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Amazon faces $1 bln lawsuit in UK for 'favouring its own products'
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AAPL
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https://www.nasdaq.com/articles/amazon-faces-%241-bln-lawsuit-in-uk-for-favouring-its-own-products
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nan
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Consumer rights advocate bringing case for customers
Amazon says collective action is 'without merit'
Case focuses on marketplace's 'Buy Box' feature
LONDON, Oct 20 (Reuters) - Amazon.com Inc AMZN.O is facing a lawsuit in Britain for damages of up to 900 million pounds ($1 billion) over allegations the online marketplace abused its dominant position by favouring its own products, lawyers said.
Consumer rights advocate Julie Hunter plans to bring the collective action on behalf of British consumers who have made purchases on Amazon since October 2016, lawyers representing her said.
The proposed case - which Amazon said was "without merit" - would be the latest mass action against a tech giant to be filed at London’s Competition Appeal Tribunal (CAT).
Law firm Hausfeld, which represents Hunter, said on Thursday that Amazon has breached competition law by using “a secretive and self-favouring algorithm” to promote its own products through the “Buy Box” feature on its website.
Hunter said in a statement: “Far from being a recommendation based on price or quality, the Buy Box favours products sold by Amazon itself, or by retailers who pay Amazon for handling their logistics. Other sellers, however good their offers might be, are effectively shut out.”
An Amazon spokesperson said in a statement: “This claim is without merit and we’re confident that will become clear through the legal process.”
The lawsuit is expected to be filed at the CAT by the end of this month and will have to be certified by the tribunal before it can proceed.
It is being brought on an “opt-out” basis, meaning that any potential claimants will be included in the claim unless they choose to opt out.
The case follows the announcement by Britain’s antitrust watchdog in July that it is investigating Amazon over suspected breaches of competition law, including how it selects which products are placed within the “Buy Box” feature.
Amazon has faced similar probes elsewhere, recently making an offer to the European Commission to avert possible hefty EU antitrust fines.
The platform has also declined to describe its product-search system to an Australian competition regulator which has heard complaints of large marketplace platforms giving preference to in-house wares.
The CAT authorised an estimated 920 milion-pound ($1.1 billion) damages claim against Google GOOGL.O in July and approved another case worth up to 1.7 billion pounds against Apple AAPL.O in May.
The tribunal is also due to decide in January whether to give the go-ahead to a claim valued at up to 2.2 billion pounds against Meta Platforms META.O, the owner of Facebook and Instagram, over alleged anti-competitive behaviour.
Google and Apple deny the allegations against them, according to court filings, and Meta did not immediately respond to a Reuters request for comment.
(Reporting by Sam Tobin; Editing by Andrew Heavens)
((Sam.Tobin@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The CAT authorised an estimated 920 milion-pound ($1.1 billion) damages claim against Google GOOGL.O in July and approved another case worth up to 1.7 billion pounds against Apple AAPL.O in May. Other sellers, however good their offers might be, are effectively shut out.” An Amazon spokesperson said in a statement: “This claim is without merit and we’re confident that will become clear through the legal process.” The lawsuit is expected to be filed at the CAT by the end of this month and will have to be certified by the tribunal before it can proceed. The case follows the announcement by Britain’s antitrust watchdog in July that it is investigating Amazon over suspected breaches of competition law, including how it selects which products are placed within the “Buy Box” feature.
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The CAT authorised an estimated 920 milion-pound ($1.1 billion) damages claim against Google GOOGL.O in July and approved another case worth up to 1.7 billion pounds against Apple AAPL.O in May. Consumer rights advocate bringing case for customers Amazon says collective action is 'without merit' Case focuses on marketplace's 'Buy Box' feature LONDON, Oct 20 (Reuters) - Amazon.com Inc AMZN.O is facing a lawsuit in Britain for damages of up to 900 million pounds ($1 billion) over allegations the online marketplace abused its dominant position by favouring its own products, lawyers said. Consumer rights advocate Julie Hunter plans to bring the collective action on behalf of British consumers who have made purchases on Amazon since October 2016, lawyers representing her said.
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The CAT authorised an estimated 920 milion-pound ($1.1 billion) damages claim against Google GOOGL.O in July and approved another case worth up to 1.7 billion pounds against Apple AAPL.O in May. Consumer rights advocate bringing case for customers Amazon says collective action is 'without merit' Case focuses on marketplace's 'Buy Box' feature LONDON, Oct 20 (Reuters) - Amazon.com Inc AMZN.O is facing a lawsuit in Britain for damages of up to 900 million pounds ($1 billion) over allegations the online marketplace abused its dominant position by favouring its own products, lawyers said. Law firm Hausfeld, which represents Hunter, said on Thursday that Amazon has breached competition law by using “a secretive and self-favouring algorithm” to promote its own products through the “Buy Box” feature on its website.
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The CAT authorised an estimated 920 milion-pound ($1.1 billion) damages claim against Google GOOGL.O in July and approved another case worth up to 1.7 billion pounds against Apple AAPL.O in May. Consumer rights advocate bringing case for customers Amazon says collective action is 'without merit' Case focuses on marketplace's 'Buy Box' feature LONDON, Oct 20 (Reuters) - Amazon.com Inc AMZN.O is facing a lawsuit in Britain for damages of up to 900 million pounds ($1 billion) over allegations the online marketplace abused its dominant position by favouring its own products, lawyers said. Law firm Hausfeld, which represents Hunter, said on Thursday that Amazon has breached competition law by using “a secretive and self-favouring algorithm” to promote its own products through the “Buy Box” feature on its website.
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18826.0
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2022-10-20 00:00:00 UTC
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Is Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) a Strong ETF Right Now?
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https://www.nasdaq.com/articles/is-goldman-sachs-activebeta-world-low-vol-plus-equity-etf-glov-a-strong-etf-right-now
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A smart beta exchange traded fund, the Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) debuted on 03/15/2022, and offers broad exposure to the Broad Developed World ETFs category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
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
The fund is managed by Goldman Sachs Funds. GLOV has been able to amass assets over $528.21 million, making it one of the average sized ETFs in the Broad Developed World ETFs. Before fees and expenses, this particular fund seeks to match the performance of the GOLDMAN SACHS ACTBT WORLD LW VL PL EQ ID.
The Goldman Sachs ActiveBeta World Low Vol Plus Equity Index delivers exposure to large and mid-capitalization equity securities of developed market issuers, including the United States.
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 0.25% for this ETF, which makes it one of the cheaper products in the space.
The fund has a 12-month trailing dividend yield of 1.30%.
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.
Taking into account individual holdings, Apple Inc (AAPL) accounts for about 2.95% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY).
The top 10 holdings account for about 14.13% of total assets under management.
Performance and Risk
Year-to-date, the Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF has lost about -13.98% so far. GLOV has traded between $34.82 and $42.88 in this past 52-week period.
With about 389 holdings, it effectively diversifies company-specific risk.
Alternatives
Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF is a reasonable option for investors seeking to outperform the Broad Developed World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares MSCI ACWI ETF (ACWI) tracks MSCI All Country World Index and the Vanguard Total World Stock ETF (VT) tracks FTSE Global All Cap Index. IShares MSCI ACWI ETF has $14.67 billion in assets, Vanguard Total World Stock ETF has $20.88 billion. ACWI has an expense ratio of 0.32% and VT charges 0.07%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Broad Developed 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.
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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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Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
O'Reilly Automotive, Inc. (ORLY): Free Stock Analysis Report
iShares MSCI ACWI ETF (ACWI): ETF Research Reports
Vanguard Total World Stock ETF (VT): 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 2.95% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY). Apple Inc. (AAPL): Free Stock Analysis Report There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 2.95% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY). Apple Inc. (AAPL): Free Stock Analysis Report A smart beta exchange traded fund, the Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) debuted on 03/15/2022, and offers broad exposure to the Broad Developed World ETFs category of the market.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 2.95% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY). Apple Inc. (AAPL): Free Stock Analysis Report A smart beta exchange traded fund, the Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) debuted on 03/15/2022, and offers broad exposure to the Broad Developed World ETFs category of the market.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 2.95% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY). Apple Inc. (AAPL): Free Stock Analysis Report A smart beta exchange traded fund, the Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) debuted on 03/15/2022, and offers broad exposure to the Broad Developed World ETFs category of the market.
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18827.0
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2022-10-20 00:00:00 UTC
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My Top 2 Dividend Stocks to Buy Now
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https://www.nasdaq.com/articles/my-top-2-dividend-stocks-to-buy-now-2
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Investors flock toward dividend stocks for good reason. These investments offer an income cushion during bear markets like the one we're currently experiencing. Dividend payers also tend to be more stable in times of volatility, when compared to more growth-focused stocks.
With that in mind, let's look at two attractive dividend stocks that deserve a spot on your watch list. Read on for some good reasons to buy stock in PepsiCo (NASDAQ: PEP) and Apple (NASDAQ: AAPL) today.
1. PepsiCo
PepsiCo's latest earnings report confirms that the company is operating at the top of its game. Organic sales shot higher by 16% year over year in the quarter that ended in early September. And, unlike some peers like McCormick, Pepsi achieved that growth through a mix of rising prices and increased volumes.
The company's third-quarter results represented accelerating growth, too, in both sales and earnings. "We are very pleased with our results," CEO Ramon Laguarta said in a press release, "as our global business momentum remains strong."
PepsiCo is winning market share in attractive niches including snack foods and energy drinks. Its global portfolio is providing valuable diversification, and management just raised the 2022 growth outlook.
All these wins are reflected in Pepsi's gushing cash flow, with operating cash sitting at a healthy $6.3 billion through the first three quarters of 2022. Success here is allowing the company to return roughly $8 billion to shareholders this year, mainly through a dividend payment that has been steadily rising on an annual basis for over 50 years.
2. Apple
Compared to PepsiCo, Apple is relatively new to the dividend party. But it makes up for that shorter track record by putting a long list of unique assets into an income investor's portfolio.
The tech giant has one of the most valuable brands in the world, for example. It trounces consumer tech rivals when it comes to profit margin and customer satisfaction, too, helping explain why famed investor Warren Buffett is such a fan of the stock. And Apple's financial strength is unmatched, with $79 billion in profit over the last nine months compared to $74 billion in the year-ago period.
Sure, Apple's business would be sensitive to a recession. That risk is a key reason the stock price is down over 20% so far in 2022. However, savvy investors can seek to capitalize on the sour mood on Wall Street today with an eye toward Apple's long-term outlook. The company has a clear path toward rising profitability as it sells more services. And its diverse lineup of consumer tech products should help it maintain momentum through a consumer spending pullback.
Apple's dividend likely isn't the main reason an investor would buy this stock. It yields only 0.6% today, after all, compared to PepsiCo's 2.6% yield. Still, combined with its exciting growth outlook and gushing cash flow, that dividend is a solid bonus for owning the stock.
Reinvest the dividends, meanwhile, and you'll get a chance to automatically accumulate more shares during bear markets like this, amplifying positive returns once investors' attitudes turn bullish again.
10 stocks we like better than PepsiCo Inc.
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Demitri Kalogeropoulos has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends McCormick 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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Read on for some good reasons to buy stock in PepsiCo (NASDAQ: PEP) and Apple (NASDAQ: AAPL) today. It trounces consumer tech rivals when it comes to profit margin and customer satisfaction, too, helping explain why famed investor Warren Buffett is such a fan of the stock. However, savvy investors can seek to capitalize on the sour mood on Wall Street today with an eye toward Apple's long-term outlook.
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Read on for some good reasons to buy stock in PepsiCo (NASDAQ: PEP) and Apple (NASDAQ: AAPL) today. All these wins are reflected in Pepsi's gushing cash flow, with operating cash sitting at a healthy $6.3 billion through the first three quarters of 2022. The Motley Fool recommends McCormick and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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Read on for some good reasons to buy stock in PepsiCo (NASDAQ: PEP) and Apple (NASDAQ: AAPL) today. Apple's dividend likely isn't the main reason an investor would buy this stock. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Demitri Kalogeropoulos has positions in Apple.
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Read on for some good reasons to buy stock in PepsiCo (NASDAQ: PEP) and Apple (NASDAQ: AAPL) today. Apple Compared to PepsiCo, Apple is relatively new to the dividend party. 10 stocks we like better than PepsiCo Inc.
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18828.0
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2022-10-20 00:00:00 UTC
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Taiwan Sept export orders contract, but strong electronics sales reported
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https://www.nasdaq.com/articles/taiwan-sept-export-orders-contract-but-strong-electronics-sales-reported
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Recasts, updates throughout
Sept export orders -3.1% y/y vs -5.5% poll forecast
Export orders from China -27.9% y/y vs -25.5% in Aug
Ministry sees Oct orders between -1% and -3.6% y/y
Year-end holiday season helps outlook
TAIPEI, Oct 20 (Reuters) - Taiwan's export orders contracted slightly though at a less severe rate than expected in September, coming off a high base and supported by strong sales of new consumer electronics products like iPhones.
The government said momentum for the rest of the year would be helped by the year-end holiday season in Europe and the United States, traditionally the high point for export orders. But it highlighted uncertainties like global inflation, the war in Ukraine and China's lockdowns to contain COVID-19.
Export orders, a bellwether for global technology demand, shrank 3.1% in September from a year earlier to $60.93 billion, the Ministry of Economic Affairs said on Thursday, though still the second-highest figure on record for the month. Analysts had expected a drop of 5.5%.
September's fall followed a 2% annual expansion in August.
Orders for telecommunications products rose 5% in September from a year ago due mostly to smartphone orders for "international brands", the ministry said. Apple Inc AAPL.O, which many Taiwanese firms make components for, put its latest iPhones on sale last month.
Orders for electronic products jumped 6%, driven by demand for high-end computing, automobiles and stockpiling for new consumer electronics, the ministry said.
Orders for telecommunications products and electronics including chips both hit record highs for the month.
A trend of working and studying from home that started during the COVID-19 pandemic has fuelled a growth in orders for Taiwanese electronics for more than two years. More recently, a global semiconductor shortage has also filled Taiwanese chipmakers' order books.
The ministry said it expected this month's export orders to be between 1% and 3.6% lower than those of October 2021.
Taiwanese companies such as Taiwan Semiconductor Manufacturing Co Ltd 2330.TWTSM.N are major suppliers to Apple, Qualcomm Inc QCOM.O and other global tech firms.
Taiwan's September orders from China plummeted 27.9% from a year earlier, compared with an annual fall of 25.5% in August. Month-on-month orders from China edged up 3.8%.
Taiwan's orders from the United States rose 2.8% from a year earlier, a slower pace compared with the previous month's 7.5% rise, but still hitting an all-time high for the month.
Export orders from Europe rose 9.6% to a new high, versus an annual rise of 14.6% in August. Orders from Japan expanded 5%.
(Reporting by Liang-sa Loh, Yimou Lee and Ben Blanchard; Editing by Tom Hogue)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O, which many Taiwanese firms make components for, put its latest iPhones on sale last month. The government said momentum for the rest of the year would be helped by the year-end holiday season in Europe and the United States, traditionally the high point for export orders. Export orders, a bellwether for global technology demand, shrank 3.1% in September from a year earlier to $60.93 billion, the Ministry of Economic Affairs said on Thursday, though still the second-highest figure on record for the month.
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Apple Inc AAPL.O, which many Taiwanese firms make components for, put its latest iPhones on sale last month. Recasts, updates throughout Sept export orders -3.1% y/y vs -5.5% poll forecast Export orders from China -27.9% y/y vs -25.5% in Aug Ministry sees Oct orders between -1% and -3.6% y/y Year-end holiday season helps outlook TAIPEI, Oct 20 (Reuters) - Taiwan's export orders contracted slightly though at a less severe rate than expected in September, coming off a high base and supported by strong sales of new consumer electronics products like iPhones. Taiwan's September orders from China plummeted 27.9% from a year earlier, compared with an annual fall of 25.5% in August.
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Apple Inc AAPL.O, which many Taiwanese firms make components for, put its latest iPhones on sale last month. Recasts, updates throughout Sept export orders -3.1% y/y vs -5.5% poll forecast Export orders from China -27.9% y/y vs -25.5% in Aug Ministry sees Oct orders between -1% and -3.6% y/y Year-end holiday season helps outlook TAIPEI, Oct 20 (Reuters) - Taiwan's export orders contracted slightly though at a less severe rate than expected in September, coming off a high base and supported by strong sales of new consumer electronics products like iPhones. Export orders, a bellwether for global technology demand, shrank 3.1% in September from a year earlier to $60.93 billion, the Ministry of Economic Affairs said on Thursday, though still the second-highest figure on record for the month.
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Apple Inc AAPL.O, which many Taiwanese firms make components for, put its latest iPhones on sale last month. Orders for telecommunications products and electronics including chips both hit record highs for the month. Taiwanese companies such as Taiwan Semiconductor Manufacturing Co Ltd 2330.TWTSM.N are major suppliers to Apple, Qualcomm Inc QCOM.O and other global tech firms.
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18829.0
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2022-10-20 00:00:00 UTC
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Nokia, Ericsson slump as patent fights hit margins
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AAPL
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https://www.nasdaq.com/articles/nokia-ericsson-slump-as-patent-fights-hit-margins
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By Supantha Mukherjee and Stine Jacobsen
STOCKHOLM/COPENHAGEN, Oct 20 (Reuters) - Telecom equipment makers Nokia NOKIA.HE and Ericsson ERICb.ST were among the worst performers in Europe on Thursday, bruised by ongoing patent battles which cut profit margins and offset strong demand for 5G equipment.
While the revenue of both companies beat expectations thanks to the rollout of 5G, delayed royalty payments meant their core profit missed analysts' expectations.
Shares in Ericsson slumped 12% and were the worst performers in the STOXX 600 .STOXX while Nokia shares fell almost 5% to be among the worst.
As the early stages of a rollout of large projects like 5G tend to have lower margins, telecom companies depend on their high-margin patent royalty business to boost profits. Companies such as Ericsson charge $2.50 to $5 for every 5G handset they sell and come under pressure when negotiating new contracts.
Ericsson's quarterly royalty revenue fell 1.1 billion Swedish crowns ($98.24 million) as it battled companies such as Apple AAPL.O over patents. Nokia's patent revenue was down by 62 million euros ($60.67 million), mainly due to a dispute with Oppo and Vivo.
Nokia's gross margin fell to 40.1% from 40.7%, a tad better than Ericsson's fall to 41.4% from 44%.
"We are very confident about our portfolio of patents and we are in no rush to strike a deal ... we are going to make sure we get a good mutually beneficial deal," Ericsson CFO Carl Mellander said in an interview.
However, when an agreement is reached, all the pending royalties are paid in a lump sum.
While the companies continue to benefit from higher spending on 5G equipment, they both warned of cooling down of their main market, North America.
"The North American market has grown very fast this year and it's prudent to expect some kind of normalization of the market," Nokia Chief Executive Pekka Lundmark said in an interview.
"But it's too early to give detailed estimates because the operators have not yet announced their capex plans for next year," he said.
The companies are expecting other countries, such as India to be a major driver for growth in 2023.
India's Bharti Airtel BRTI.NS and Reliance Jio RELI.NS launched 5G services in the world's second most populous country earlier this month and has picked Nokia and Ericsson as equipment suppliers.
Analysts at Jefferies said the decline of high-margin markets like the U.S. and growth of low-margin markets like India would increase margin pressures in 2023.
Both companies have been trying to cut costs by spending on research amid chip shortages and supply chain disruptions due to the Russia-Ukraine war and chip shortages.
They plan to exit Russia by the end of the year.
Apart from the broad challenges, Ericsson has also been facing investigations over bribery in Iraq and investor ire over improper disclosure.
The company is being investigated by the U.S. Department of Justice (DOJ) and Securities and Exchange Commission (SEC) over its past conduct in Iraq. It had said it was engaging with both agencies and the outcome could not be assessed yet.
($1 = 11.1970 Swedish crowns)
($1 = 1.0219 euros)
(Reporting by Supantha Mukherjee in Stockholm;Editing by Elaine Hardcastle)
((supantha.mukherjee@thomsonreuters.com; +46 70 721 1004; Reuters Messaging: supantha.mukherjee.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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Ericsson's quarterly royalty revenue fell 1.1 billion Swedish crowns ($98.24 million) as it battled companies such as Apple AAPL.O over patents. As the early stages of a rollout of large projects like 5G tend to have lower margins, telecom companies depend on their high-margin patent royalty business to boost profits. India's Bharti Airtel BRTI.NS and Reliance Jio RELI.NS launched 5G services in the world's second most populous country earlier this month and has picked Nokia and Ericsson as equipment suppliers.
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Ericsson's quarterly royalty revenue fell 1.1 billion Swedish crowns ($98.24 million) as it battled companies such as Apple AAPL.O over patents. By Supantha Mukherjee and Stine Jacobsen STOCKHOLM/COPENHAGEN, Oct 20 (Reuters) - Telecom equipment makers Nokia NOKIA.HE and Ericsson ERICb.ST were among the worst performers in Europe on Thursday, bruised by ongoing patent battles which cut profit margins and offset strong demand for 5G equipment. Nokia's patent revenue was down by 62 million euros ($60.67 million), mainly due to a dispute with Oppo and Vivo.
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Ericsson's quarterly royalty revenue fell 1.1 billion Swedish crowns ($98.24 million) as it battled companies such as Apple AAPL.O over patents. By Supantha Mukherjee and Stine Jacobsen STOCKHOLM/COPENHAGEN, Oct 20 (Reuters) - Telecom equipment makers Nokia NOKIA.HE and Ericsson ERICb.ST were among the worst performers in Europe on Thursday, bruised by ongoing patent battles which cut profit margins and offset strong demand for 5G equipment. As the early stages of a rollout of large projects like 5G tend to have lower margins, telecom companies depend on their high-margin patent royalty business to boost profits.
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Ericsson's quarterly royalty revenue fell 1.1 billion Swedish crowns ($98.24 million) as it battled companies such as Apple AAPL.O over patents. The companies are expecting other countries, such as India to be a major driver for growth in 2023. Analysts at Jefferies said the decline of high-margin markets like the U.S. and growth of low-margin markets like India would increase margin pressures in 2023.
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2022-10-20 00:00:00 UTC
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Thursday's ETF with Unusual Volume: FTHI
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https://www.nasdaq.com/articles/thursdays-etf-with-unusual-volume%3A-fthi
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The First Trust BuyWrite Income ETF (FTHI) is seeing unusually high volume in afternoon trading Thursday, with over 1.2 million shares traded versus three month average volume of about 77,000. Shares of FTHI were off about 0.4% on the day.
Components of that ETF with the highest volume on Thursday were Advanced Micro Devices (AMD), trading off about 1.2% with over 72.8 million shares changing hands so far this session, and Apple (AAPL), up about 0.1% on volume of over 58.0 million shares. Netflix (NFLX) is the component faring the best Thursday, up by about 13.1% on the day, while Abbott Laboratories (ABT) is lagging other components of the First Trust BuyWrite Income ETF, trading lower by about 6.5%.
VIDEO: Thursday's ETF with Unusual Volume: FTHI
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Components of that ETF with the highest volume on Thursday were Advanced Micro Devices (AMD), trading off about 1.2% with over 72.8 million shares changing hands so far this session, and Apple (AAPL), up about 0.1% on volume of over 58.0 million shares. The First Trust BuyWrite Income ETF (FTHI) is seeing unusually high volume in afternoon trading Thursday, with over 1.2 million shares traded versus three month average volume of about 77,000. Netflix (NFLX) is the component faring the best Thursday, up by about 13.1% on the day, while Abbott Laboratories (ABT) is lagging other components of the First Trust BuyWrite Income ETF, trading lower by about 6.5%.
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Components of that ETF with the highest volume on Thursday were Advanced Micro Devices (AMD), trading off about 1.2% with over 72.8 million shares changing hands so far this session, and Apple (AAPL), up about 0.1% on volume of over 58.0 million shares. The First Trust BuyWrite Income ETF (FTHI) is seeing unusually high volume in afternoon trading Thursday, with over 1.2 million shares traded versus three month average volume of about 77,000. Netflix (NFLX) is the component faring the best Thursday, up by about 13.1% on the day, while Abbott Laboratories (ABT) is lagging other components of the First Trust BuyWrite Income ETF, trading lower by about 6.5%.
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Components of that ETF with the highest volume on Thursday were Advanced Micro Devices (AMD), trading off about 1.2% with over 72.8 million shares changing hands so far this session, and Apple (AAPL), up about 0.1% on volume of over 58.0 million shares. The First Trust BuyWrite Income ETF (FTHI) is seeing unusually high volume in afternoon trading Thursday, with over 1.2 million shares traded versus three month average volume of about 77,000. Netflix (NFLX) is the component faring the best Thursday, up by about 13.1% on the day, while Abbott Laboratories (ABT) is lagging other components of the First Trust BuyWrite Income ETF, trading lower by about 6.5%.
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Components of that ETF with the highest volume on Thursday were Advanced Micro Devices (AMD), trading off about 1.2% with over 72.8 million shares changing hands so far this session, and Apple (AAPL), up about 0.1% on volume of over 58.0 million shares. The First Trust BuyWrite Income ETF (FTHI) is seeing unusually high volume in afternoon trading Thursday, with over 1.2 million shares traded versus three month average volume of about 77,000. Netflix (NFLX) is the component faring the best Thursday, up by about 13.1% on the day, while Abbott Laboratories (ABT) is lagging other components of the First Trust BuyWrite Income ETF, trading lower by about 6.5%.
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2022-10-19 00:00:00 UTC
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US STOCKS-Wall St struggles to gain as soaring Treasury yields hurt earnings confidence
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https://www.nasdaq.com/articles/us-stocks-wall-st-struggles-to-gain-as-soaring-treasury-yields-hurt-earnings-confidence
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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.
U.S. 10-year Treasury yield at highest since July 2008
Netflix jumps after reversing customer losses
Tesla third quarter earnings awaited
Procter & Gamble up on Q1 revenue, profit beat
Indexes: Dow up 0.21%, S&P down 0.10%, Nasdaq down 0.10%
Updates prices to open
By Ankika Biswas and Shreyashi Sanyal
Oct 19 (Reuters) - Wall Street's main indexes struggled for direction on Wednesday as a surge in Treasury yields to 14-year highs on expectations of bigger interest rate hikes dampened budding optimism from a bright start to the earnings season.
The yield on the benchmark 10-year Treasury note US10YT=RRclimbed to its highest levels since July 2008 in a steep selloff in U.S. government bonds, with a weak U.S. housing report failing to deter investors from selling bonds.
Housing starts, a measure of new residential constructions, dropped 8.1% in September in the latest sign of the economy losing steam, taking a hit from the Federal Reserve aggressive monetary policy tightening.
The PHLX Housing Index .HGX fell 3.4%, adding more pain to stock markets attempting to break out of months of declines, with the three main indexes remaining deep in bear market territory.
While some gauges of the equity market's health showed that the latest rally may be the start of a sustained move higher, many investors are awaiting signs of cooling inflation, which is way above the Federal Reserve's target.
The U.S. central bank is likely to raise rates by 75-basis points for the fourth straight time this year in November.
"We probably just saw a bear market bounce and it is going to be in this kind of environment where the market's going to face volatility until the Fed feels comfortable enough to slow their pace of rate hikes," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.
"That probably won't be coming until we start to see some weakness in the labor market, which is helping fuel inflation pressures."
Analysts have cut their third-quarter profit growth expectations for S&P 500 companies to just 2.8%, from an 11.1% increase forecast at the start of July, according to Refinitiv data.
At 10:41 a.m. ET the Dow Jones Industrial Average .DJI was up 63.29 points, or 0.21%, at 30,587.09, the S&P 500 .SPX was down 3.85 points, or 0.10%, at 3,716.13 and the Nasdaq Composite .IXIC was down 11.31 points, or 0.10%, at 10,761.10.
Netflix NFLX.O jumped 14.8% after it attracted 2.4 million new subscribers worldwide in the third quarter, more than double the consensus forecast, and guided for 4.5 million additions by year end.
Dow components Procter & Gamble CoPG.N and Travelers Companies IncTRV.N rose 3.4% and 2.6%, respectively, after the companies posted better-than expected quarterly profit.
Growth stocks including Amazon.com AMZN.O, Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O fell between 0.52% and 1.38%.
Tesla Inc TSLA.O added 0.15% ahead of its earnings after the bell, with focus on any weakness in demand that is starting to weigh on the auto industry.
Apple Inc AAPL.O is cutting production of iPhone 14 Plus within weeks of starting shipments. Shares of the company reversed early declines to edge 0.32% higher.
Declining issues outnumbered advancers for a 2.56-to-1 ratio on the NYSE and for a 1.92-to-1 ratio on the Nasdaq.
The S&P index recorded two new 52-week highs and five new lows, while the Nasdaq recorded 18 new highs and 100 new lows.
(Reporting by Ankika Biswas and Shreyashi Sanyal in Bengaluru; Editing by Sriraj Kalluvila and Arun Koyyur)
((Ankika.Biswas@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O is cutting production of iPhone 14 Plus within weeks of starting shipments. U.S. 10-year Treasury yield at highest since July 2008 Netflix jumps after reversing customer losses Tesla third quarter earnings awaited Procter & Gamble up on Q1 revenue, profit beat Indexes: Dow up 0.21%, S&P down 0.10%, Nasdaq down 0.10% Updates prices to open By Ankika Biswas and Shreyashi Sanyal Oct 19 (Reuters) - Wall Street's main indexes struggled for direction on Wednesday as a surge in Treasury yields to 14-year highs on expectations of bigger interest rate hikes dampened budding optimism from a bright start to the earnings season. Housing starts, a measure of new residential constructions, dropped 8.1% in September in the latest sign of the economy losing steam, taking a hit from the Federal Reserve aggressive monetary policy tightening.
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Apple Inc AAPL.O is cutting production of iPhone 14 Plus within weeks of starting shipments. U.S. 10-year Treasury yield at highest since July 2008 Netflix jumps after reversing customer losses Tesla third quarter earnings awaited Procter & Gamble up on Q1 revenue, profit beat Indexes: Dow up 0.21%, S&P down 0.10%, Nasdaq down 0.10% Updates prices to open By Ankika Biswas and Shreyashi Sanyal Oct 19 (Reuters) - Wall Street's main indexes struggled for direction on Wednesday as a surge in Treasury yields to 14-year highs on expectations of bigger interest rate hikes dampened budding optimism from a bright start to the earnings season. The PHLX Housing Index .HGX fell 3.4%, adding more pain to stock markets attempting to break out of months of declines, with the three main indexes remaining deep in bear market territory.
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Apple Inc AAPL.O is cutting production of iPhone 14 Plus within weeks of starting shipments. U.S. 10-year Treasury yield at highest since July 2008 Netflix jumps after reversing customer losses Tesla third quarter earnings awaited Procter & Gamble up on Q1 revenue, profit beat Indexes: Dow up 0.21%, S&P down 0.10%, Nasdaq down 0.10% Updates prices to open By Ankika Biswas and Shreyashi Sanyal Oct 19 (Reuters) - Wall Street's main indexes struggled for direction on Wednesday as a surge in Treasury yields to 14-year highs on expectations of bigger interest rate hikes dampened budding optimism from a bright start to the earnings season. The PHLX Housing Index .HGX fell 3.4%, adding more pain to stock markets attempting to break out of months of declines, with the three main indexes remaining deep in bear market territory.
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Apple Inc AAPL.O is cutting production of iPhone 14 Plus within weeks of starting shipments. U.S. 10-year Treasury yield at highest since July 2008 Netflix jumps after reversing customer losses Tesla third quarter earnings awaited Procter & Gamble up on Q1 revenue, profit beat Indexes: Dow up 0.21%, S&P down 0.10%, Nasdaq down 0.10% Updates prices to open By Ankika Biswas and Shreyashi Sanyal Oct 19 (Reuters) - Wall Street's main indexes struggled for direction on Wednesday as a surge in Treasury yields to 14-year highs on expectations of bigger interest rate hikes dampened budding optimism from a bright start to the earnings season. While some gauges of the equity market's health showed that the latest rally may be the start of a sustained move higher, many investors are awaiting signs of cooling inflation, which is way above the Federal Reserve's target.
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2022-10-19 00:00:00 UTC
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SNAP Earnings Preview: Can the Social Media Stock Finally Rebound?
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https://www.nasdaq.com/articles/snap-earnings-preview%3A-can-the-social-media-stock-finally-rebound
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Trading 86% off its highs, Snap SNAP will be on many investors’ radars when it reports its Q3 earnings on October 20. SNAP will be the first social media stock to report followed by Twitter TWTR, Meta Platforms META, and Pinterest PINS. SNAP’s release will also give insight into the effects of Apple’s AAPL privacy changes which wiped out $300 billion in market value from social media platforms.
SNAP has been on a roller coaster ride over the last year after the intriguing social media stock reached a 52-week high of $78.18 last October. Fast forward a year later and the stock trades around $11 per share. Snap’s third quarter earnings report will be critical for the stock considering it lost most of its value after its last two quarterly reports.
Image Source: Zacks Investment Research
After a prior string of earnings beats showed the company could be profitable investors and Wall Street became very optimistic about Snap’s growth. However, SNAP’s recent earnings reports revealed the headwind most social media platforms are facing with slowing ad revenue.
Guidance & DAUs
After a second quarter earnings miss on both its top and bottom line, the company failed to offer any guidance or outlook for the current quarter. Snap’s reason for not providing guidance was that forward-looking visibility remained challenging. This led to a further selloff in the stock after Q2 earnings were drained by rising operating costs and slowing advertising revenue. Outside of a challenging economy for marketers to spend on ad revenue, SNAP revealed the slowing demand for its online ad platform was also attributed to rising competition from TikTok.
Despite not offering any guidance for the third quarter SNAP’s Daily Active Users (DAUs) were up 18% year over year during Q2 at 347 million. DAUs increased sequentially and year over year in North America, Europe, and the rest of the world.
Rising DAUs could still attract major marketers to SNAP’s online ad platform. This could start to increase its growth outlook again once economic conditions stabilize for its advertisers. SNAP’’s revenue almost all relies upon advertising revenue.
Outlook
The Zacks Consensus Estimate for SNAP’s Q3 earnings is a loss of -$0.01 per share, down from $0.17 per share in Q3 2021. Sales for Q3 are expected to be up 5% at $1.13 billion. This reflects that operating costs affected the company’s bottom line during the quarter rather than slowing ad revenue. Earnings estimates for the period have gone down from $0.03 at the beginning of the quarter but started to rise from -$0.02 30 days ago.
Year over year, SNAP earnings are expected to decline -90%, but its FY23 earnings are set to climb an impressive 486% at $0.30 per share. Solid top line growth is expected, with FY22 sales projected to climb 14% and another 15% in FY23 to $5.41 billion.
It is important to note that annual estimates for this year and FY23 are down from the beginning of the quarter as well. However, estimates have started to rise again over the last 30 days.
Investors will hope SNAP can restart its prior trend of beating earning expectations which also saw its quarterly earnings in the black. Wall Street also wants to make sure the company can offer at least some guidance for Q4 and FY23.
Performance
SNAP is down -76% year to date to underperform the S&P 500’s -22%. However, this is not a drastic distance from the Internet Software Markets -56% YTD decline. Since going public in 2017, SNAP is now down -30% to underperform the benchmark’s +48% but outperform the Internet Software Markets -48%.
Image Source: Zacks Investment Research
Despite SNAP’s decline over the last five years after its IPO, the stock has shown its potential which is illustrated in the prolonged higher peaks between FY19 and FY21. At current levels, investors aren’t paying as high a premium anymore for what is still the somewhat beginning stages of the company and stock.
Valuation
SNAP currently trades 34% below its IPO price and 53% lower than its first closing price of $24.48. The first day of trading illustrated investors’ enthusiasm for SNAP shares with most willing to pay a premium for the stock. Snap currently has a forward P/E of 196.2X which is much higher than the industry average of 43X.
Bottom Line
Snap currently lands a Zacks Rank #2 (Buy) in correlation with its earnings estimate revisions rising again. The stock trades well below its IPO price and could give investors a chance to get in on a stock that Wall Street was recently happy paying a premium for.
If Snap beats earnings expectations and more importantly offers some type of guidance the stock could rebound. Despite many social media platforms experiencing lower ad revenue, their advertisers should start to adapt to the current market environment. SNAP’s Internet-Software Industry is currently in the top 31% of over 250 Zacks Industries and the Average Zacks Price Target suggests 34% upside from current levels.
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Snap Inc. (SNAP): Free Stock Analysis Report
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Twitter, Inc. (TWTR): 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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SNAP’s release will also give insight into the effects of Apple’s AAPL privacy changes which wiped out $300 billion in market value from social media platforms. Apple Inc. (AAPL): Free Stock Analysis Report Image Source: Zacks Investment Research After a prior string of earnings beats showed the company could be profitable investors and Wall Street became very optimistic about Snap’s growth.
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SNAP’s release will also give insight into the effects of Apple’s AAPL privacy changes which wiped out $300 billion in market value from social media platforms. Apple Inc. (AAPL): Free Stock Analysis Report SNAP will be the first social media stock to report followed by Twitter TWTR, Meta Platforms META, and Pinterest PINS.
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SNAP’s release will also give insight into the effects of Apple’s AAPL privacy changes which wiped out $300 billion in market value from social media platforms. Apple Inc. (AAPL): Free Stock Analysis Report Trading 86% off its highs, Snap SNAP will be on many investors’ radars when it reports its Q3 earnings on October 20.
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SNAP’s release will also give insight into the effects of Apple’s AAPL privacy changes which wiped out $300 billion in market value from social media platforms. Apple Inc. (AAPL): Free Stock Analysis Report However, SNAP’s recent earnings reports revealed the headwind most social media platforms are facing with slowing ad revenue.
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2022-10-19 00:00:00 UTC
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Tesla’s Apple-sized goals have cash risks
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https://www.nasdaq.com/articles/teslas-apple-sized-goals-have-cash-risks
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Reuters
Reuters
NEW YORK (Reuters Breakingviews) - Shares of electric-vehicle leader Tesla, after sliding 45% this year, look reasonably priced — if promises of iPhone-like industry dominance come true. A wrinkle in this quarter’s results, though, points to potentially flagging demand. Returning cash to shareholders only works if the Austin, Texas-based company's Apple-sized dreams become reality. On Wednesday, Tesla reported third-quarter revenue of over $21 billion, up 56% year-over-year. Even after hiking prices, it delivered 42% more cars to customers. Boss Elon Musk says the carmaker can grow that number at the rate of 50% annually until hitting 20 million in 2030. After last quarter’s supply-chain-driven slowdown threatened progress, it is almost back on track. Tesla’s 17% operating margin beats the gas-guzzler businesses of rivals Ford Motor and General Motors — whose EVs are less profitable still. As a result, its cars resemble Apple’s iPhone. Per Counterpoint Research, the Cupertino-based company accounts for an overwhelming majority of smartphone industry profits; Tesla can make the same claim for the EV industry. The market seems to be trusting that, like Apple, Tesla can beat its doubters, maintain profitability, and at least come close to its 2030 goal. Assume it does so, and that revenue per car comes in at around $45,000 while operating margins at its core operations hold at 15%. Put the resulting operating income on Ford’s multiple, discount it back at a rate of 10%, and the company’s shares should be worth $249, just above Wednesday's closing price of $222. In that sense, Tesla’s $700 billion valuation is reasonable. But there are wrinkles. The company delivered 6% fewer cars than it made this quarter, the widest gap ever in absolute terms, which it blames on shipping woes. The worry is the gap instead indicates flagging demand growth. Apple faced a similarly tense moment of shrinking profits and growth in 2013. Investors like David Einhorn and Carl Icahn demanded it use its cash pile to buy back sagging shares, and that bet paid off. With its stock price declining, it would make sense for Tesla to feel the same pressures to pull that lever now. But Apple started 2013 with $137 billion in cash and marketable securities; Tesla has $21 billion. It also has significant cash demands. Capital expenditures this year should equal about 34% of that pile, versus 6% at Apple. Musk has shown that he deserves the benefit of the doubt when it comes to manufacturing cars. When it comes to paying dividends, though, tossing back cash to shareholders is a risk.
Follow @JMAGuilford on Twitter
CONTEXT NEWS
Electric-vehicle manufacturer Tesla said that it made over $21.4 billion in revenue for the third quarter of 2022, up 56% from last year but slightly below analyst expectations of $21.9 billion.
Tesla delivered 343,830 cars in the quarter, up 42% year-over-year but 6% below the number of cars it manufactured.
(Editing by Lauren Silva Laughlin and Sharon Lam)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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NEW YORK (Reuters Breakingviews) - Shares of electric-vehicle leader Tesla, after sliding 45% this year, look reasonably priced — if promises of iPhone-like industry dominance come true. Put the resulting operating income on Ford’s multiple, discount it back at a rate of 10%, and the company’s shares should be worth $249, just above Wednesday's closing price of $222. Investors like David Einhorn and Carl Icahn demanded it use its cash pile to buy back sagging shares, and that bet paid off.
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Tesla’s 17% operating margin beats the gas-guzzler businesses of rivals Ford Motor and General Motors — whose EVs are less profitable still. Electric-vehicle manufacturer Tesla said that it made over $21.4 billion in revenue for the third quarter of 2022, up 56% from last year but slightly below analyst expectations of $21.9 billion. Tesla delivered 343,830 cars in the quarter, up 42% year-over-year but 6% below the number of cars it manufactured.
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But Apple started 2013 with $137 billion in cash and marketable securities; Tesla has $21 billion. Electric-vehicle manufacturer Tesla said that it made over $21.4 billion in revenue for the third quarter of 2022, up 56% from last year but slightly below analyst expectations of $21.9 billion. Tesla delivered 343,830 cars in the quarter, up 42% year-over-year but 6% below the number of cars it manufactured.
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A wrinkle in this quarter’s results, though, points to potentially flagging demand. It also has significant cash demands. Tesla delivered 343,830 cars in the quarter, up 42% year-over-year but 6% below the number of cars it manufactured.
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2022-10-19 00:00:00 UTC
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PREVIEW-Digital ad market shows 'signs of life' but economy clouds 2023 outlook
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https://www.nasdaq.com/articles/preview-digital-ad-market-shows-signs-of-life-but-economy-clouds-2023-outlook
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By Sheila Dang and Katie Paul
Oct 19 (Reuters) - When Snap Inc SNAP.N kicks off the third-quarter earnings season for tech and social media companies on Thursday, investors are expecting modest revenue growth across most of the sector as results will be compared with a difficult 2021 when Apple Inc AAPL.O privacy changes began to upend the advertising industry.
But a possible recession next year makes forecasting 2023 financials a guess at best, say some analysts, while investors are wary of reading too deeply into "signs of life" like ad spending around the fall shopping season as indicators of future performance.
The challenging outlook follows a period in which record-high inflation and global geopolitical uncertainty from the war in Ukraine and U.S.-China tensions have led companies to slash marketing budgets. This has hurt tech platforms that earn the bulk of revenue by selling digital ads and has led to cost-cutting to preserve profitability.
"Overall, we believe the online ad environment remains choppy, with continued volatility week by week," JP Morgan analysts wrote in a note to clients on Oct. 4.
Tech companies have taken steps to prepare for the worst through cost cuts, halting hiring, reining in employee perks and focusing on profitable projects. That has helped reassure Wall Street in the short term, some analysts said.
On Thursday, Snap is expected to report 6% growth in revenue to $1.13 billion, according to IBES data from Refinitiv. This would represent the slowest-ever quarterly revenue growth for Snap as a public company.
The Snapchat owner is often the first to report quarterly earnings and serves as a bellwether for the social media sector. Snap shares are down 77% so far this year.
The company announced in August that it would lay off 20% of its staff and cut money-losing projects, blaming a deteriorating economy.
Alphabet Inc's GOOGL.O Google, the world's largest digital ad platform by market share, has fared relatively well due to the necessity of Google Search ads for brands.
Its wealth of data for advertising and reliance on search-based ads have shielded the company from the impact of privacy changes that Apple introduced last year on iPhones, which made it more difficult for platforms and brands to collect user data for personalized ads.
Wall Street is expecting Alphabet to report the highest growth of the Big Tech companies with an increase of 7.5% in ad revenue compared with last year.
CHALLENGES AHEAD
Meta Platforms Inc META.O has been hurt by those changes, on the other hand, and investors will be scrutinizing the company's results for evidence of improving user engagement with Facebook and Instagram and more brands buying adds on newer features like TikTok competitor Reels, said analysts.
Analysts on average expect Meta to report a 4.5% decline in ad revenue, which would be the company's second straight quarter of decline, according to Refinitiv data.
Shares of Meta are down 60% so far this year, hurt by fierce competition from short-form video app TikTok, and by its own expensive investment in building the metaverse and ads that are now less effective due to Apple's privacy changes.
"The company now known as Meta is a far cry from Facebook one year ago," said Debra Williamson, principal analyst at research firm Insider Intelligence. "After a dismal earnings report in Q2, we aren't expecting Q3 to be any better. It's very possible it will be much worse."
Ads from large retailers promoting back-to-school and fall shopping are expected to help lead to growth at digital pinboard platform Pinterest Inc PINS.N, said analysts at Bernstein in a note on Monday. Wall Street is expecting revenue to grow 5% from the prior-year quarter.
However, some advertisers are shifting ad dollars to larger platforms that are used by more people and which have been proven to deliver sales results, said Credit Suisse analysts, which poses a risk to Pinterest's revenue in the fourth quarter and next year.
Twitter Inc TWTR.N, which is working to close a deal to be acquired by billionaire Elon Musk, has not yet announced a date to report third-quarter earnings.
Twitter's results are unlikely to affect its share price, which is trading on the likelihood of the Musk deal closing. But the third-quarter results could be hurt by marketers spending less on "brand ads" that build name recognition, which constitutes most of Twitter's business, said Bernstein analysts.
Snap and Meta have become more known for so-called performance ads, which are used to drive sales or website visits.
FACTBOX-How Apple's privacy changes are affecting companies
(Reporting by Sheila Dang in Dallas and Katie Paul in Palo Alto, Calif. Editing by Matthew Lewis)
((Sheila.Dang@thomsonreuters.com; +1 646-983-0894))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Sheila Dang and Katie Paul Oct 19 (Reuters) - When Snap Inc SNAP.N kicks off the third-quarter earnings season for tech and social media companies on Thursday, investors are expecting modest revenue growth across most of the sector as results will be compared with a difficult 2021 when Apple Inc AAPL.O privacy changes began to upend the advertising industry. Meta Platforms Inc META.O has been hurt by those changes, on the other hand, and investors will be scrutinizing the company's results for evidence of improving user engagement with Facebook and Instagram and more brands buying adds on newer features like TikTok competitor Reels, said analysts. However, some advertisers are shifting ad dollars to larger platforms that are used by more people and which have been proven to deliver sales results, said Credit Suisse analysts, which poses a risk to Pinterest's revenue in the fourth quarter and next year.
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By Sheila Dang and Katie Paul Oct 19 (Reuters) - When Snap Inc SNAP.N kicks off the third-quarter earnings season for tech and social media companies on Thursday, investors are expecting modest revenue growth across most of the sector as results will be compared with a difficult 2021 when Apple Inc AAPL.O privacy changes began to upend the advertising industry. But the third-quarter results could be hurt by marketers spending less on "brand ads" that build name recognition, which constitutes most of Twitter's business, said Bernstein analysts. FACTBOX-How Apple's privacy changes are affecting companies (Reporting by Sheila Dang in Dallas and Katie Paul in Palo Alto, Calif.
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By Sheila Dang and Katie Paul Oct 19 (Reuters) - When Snap Inc SNAP.N kicks off the third-quarter earnings season for tech and social media companies on Thursday, investors are expecting modest revenue growth across most of the sector as results will be compared with a difficult 2021 when Apple Inc AAPL.O privacy changes began to upend the advertising industry. Wall Street is expecting Alphabet to report the highest growth of the Big Tech companies with an increase of 7.5% in ad revenue compared with last year. Analysts on average expect Meta to report a 4.5% decline in ad revenue, which would be the company's second straight quarter of decline, according to Refinitiv data.
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By Sheila Dang and Katie Paul Oct 19 (Reuters) - When Snap Inc SNAP.N kicks off the third-quarter earnings season for tech and social media companies on Thursday, investors are expecting modest revenue growth across most of the sector as results will be compared with a difficult 2021 when Apple Inc AAPL.O privacy changes began to upend the advertising industry. Snap shares are down 77% so far this year. But the third-quarter results could be hurt by marketers spending less on "brand ads" that build name recognition, which constitutes most of Twitter's business, said Bernstein analysts.
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18835.0
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2022-10-19 00:00:00 UTC
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Netflix (NFLX) Q3 Earnings Beat, User Gain Higher Than Expected
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AAPL
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https://www.nasdaq.com/articles/netflix-nflx-q3-earnings-beat-user-gain-higher-than-expected
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Netflix NFLX reported third-quarter 2022 earnings of $3.20 per share, beating the Zacks Consensus Estimate by 46.92% and the company’s guidance of $2.14 per share. However, the figure decreased 2.8% year over year.
Revenues of $7.93 billion increased 5.9% year over year and beat the consensus mark by 1%. The average revenues per membership increased 1% year over year on a reported basis and 8% on a foreign-exchange neutral basis.
The streaming giant gained 2.41 million paid subscribers globally, higher than its estimate of gaining one million users. Netflix had added 4.38 million paid subscribers in the year-ago quarter.
At the end of the third quarter, Netflix had 223.09 million paid subscribers globally, up 4.5% year over year and better than our estimate of 221.67 million.
Netflix benefited from strength in its content portfolio amid stiff competition. Hits like Monster: The Jeffrey Dahmer Story, Stranger Things season 4, Extraordinary Attorney Woo, The Gray Man and Purple Hearts helped Netflix to win subscribers.
Netflix, Inc. Price, Consensus and EPS Surprise
Netflix, Inc. price-consensus-eps-surprise-chart | Netflix, Inc. Quote
Although Netflix is suffering from growing competition from services provided by Amazon AMZN, Disney DIS and Apple AAPL, the company continued to witness strong engagement in the reported quarter.
In the United States, Netflix accounts for 7.6% of TV time, which is 2.6 times of Amazon and 1.4 times of services provided by Disney (Disney + Hulu + Hulu Live). In the United Kingdom, Netflix accounts for 8.2% of video viewing, which is 2.3 times of Amazon and 2.7 times of Disney+.
Shares of this Zacks Rank #3 (Hold) company were up almost 14% in after-hours trading following the announcement of the better-than-expected results. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the year-to-date period, Netflix’s shares have underperformed Apple, Disney and Amazon. While Netflix shares declined 60%, Apple, Disney and Amazon lost 18.7%, 36.4% and 30.2%, respectively.
Segmental Revenue Details
The United States and Canada (“UCAN") reported revenues of $3.60 billion, which rose 10.6% year over year and accounted for 45.4% of total revenues. ARPU grew 12% from the year-ago quarter on a foreign-exchange neutral basis.
The paid subscriber base for UCAN decreased 0.9% from the year-ago quarter to 73.39 million, which was better than our estimate of 71.78 million. The company gained 0.10 million paid subscribers compared with the year-ago quarter’s gain of 0.07 million.
Europe, Middle East & Africa (“EMEA”) reported revenues of $2.38 billion, which declined 2.3% year over year and accounted for 30% of total revenues. ARPU grew 7% from the year-ago quarter on a foreign-exchange neutral basis.
The paid subscriber base for EMEA increased 4.3% from the year-ago quarter to 73.53 million, which was better than our estimate of 71.97 million. The company gained 0.57 million paid subscribers compared with the year-ago quarter’s net addition of 1.80 million.
Latin America’s (LATAM) revenues of $1.02 billion increased 11.9% year over year, contributing 12.9% of total revenues. ARPU grew 16% from the year-ago quarter on a foreign-exchange neutral basis.
The paid subscriber base for LATAM rose 2.4% from the year-ago quarter to 39.94 million but was lower than our estimate of 40.12 million. The company gained 0.31 million paid subscribers compared with the year-ago quarter’s net addition of 0.33 million.
Asia Pacific’s (“APAC”) revenues of $889 million increased 6.6% year over year and accounted for 11.2% of total revenues. ARPU decreased 3% year over year on a foreign-exchange neutral basis.
The paid subscriber base for APAC jumped 20.6% from the year-ago quarter to 36.23 million but lower than our estimate of 37.79 million. The company added 1.43 million paid subscribers in the quarter, down 34.3% year over year.
Operating Details
Marketing expenses decreased 10.7% year over year to $568 million. As a percentage of revenues, marketing expenses decreased 130 basis points (bps) to 7.2%.
Operating income decreased 12.7% year over year to $1.53 billion. Operating margin contracted 410 bps on a year-over-year basis to 19.3%.
Balance Sheet & Free Cash Flow
Netflix had $6.11 billion of cash and cash equivalents as of Sep 30, 2022 compared with $5.82 billion as of Jun 30, 2022.
Long-term debt was $13.9 billion as of Sep 30, 2022 compared with $14.2 billion as of Jun 30, 2022.
Streaming content obligations were $21.57 billion as of Sep 30, 2022 compared with $22.37 billion as of Jun 30, 2022.
Netflix reported a free cash flow of $471.9 million compared with a free cash flow of $106.3 million in the previous quarter.
Guidance
For the fourth quarter of 2022, Netflix forecasts earnings of 36 cents per share, indicating an almost 73% decline from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for the same is pegged at $1.12 per share, currently higher than the company’s expectation, but down 15.79% from the figure reported in the year-ago quarter.
Total revenues are anticipated to be $7.776 billion, suggesting growth of 0.9% year over year. The consensus mark for revenues stands at $7.95 billion, higher than the company’s expectation and indicating 3.19% growth from the figure reported in the year-ago quarter.
Netflix expects to gain 4.5 million paid subscribers in fourth-quarter 2022 compared with the year-ago quarter’s addition of 8.28 million.
Netflix expects to end the fourth quarter of 2022 with 227.59 million paid subscribers globally, indicating growth of 2.6% from the year-ago quarter.
The operating margin is projected at 4.2% compared with the 8.2% reported in the year-ago quarter.
Unfavorable forex, due to the strengthening of the U.S. dollar, is now expected to hurt Netflix’s full-year 2022 revenues and operating income by roughly $1 billion and $0.8 billion, respectively.
Netflix continues to expect a free cash flow of more than $1 billion for the full year 2022 (plus or minus a few hundred million dollars).
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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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Netflix, Inc. Price, Consensus and EPS Surprise Netflix, Inc. price-consensus-eps-surprise-chart | Netflix, Inc. Quote Although Netflix is suffering from growing competition from services provided by Amazon AMZN, Disney DIS and Apple AAPL, the company continued to witness strong engagement in the reported quarter. Apple Inc. (AAPL): Free Stock Analysis Report Hits like Monster: The Jeffrey Dahmer Story, Stranger Things season 4, Extraordinary Attorney Woo, The Gray Man and Purple Hearts helped Netflix to win subscribers.
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Netflix, Inc. Price, Consensus and EPS Surprise Netflix, Inc. price-consensus-eps-surprise-chart | Netflix, Inc. Quote Although Netflix is suffering from growing competition from services provided by Amazon AMZN, Disney DIS and Apple AAPL, the company continued to witness strong engagement in the reported quarter. Apple Inc. (AAPL): Free Stock Analysis Report In the United States, Netflix accounts for 7.6% of TV time, which is 2.6 times of Amazon and 1.4 times of services provided by Disney (Disney + Hulu + Hulu Live).
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Netflix, Inc. Price, Consensus and EPS Surprise Netflix, Inc. price-consensus-eps-surprise-chart | Netflix, Inc. Quote Although Netflix is suffering from growing competition from services provided by Amazon AMZN, Disney DIS and Apple AAPL, the company continued to witness strong engagement in the reported quarter. Apple Inc. (AAPL): Free Stock Analysis Report At the end of the third quarter, Netflix had 223.09 million paid subscribers globally, up 4.5% year over year and better than our estimate of 221.67 million.
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Netflix, Inc. Price, Consensus and EPS Surprise Netflix, Inc. price-consensus-eps-surprise-chart | Netflix, Inc. Quote Although Netflix is suffering from growing competition from services provided by Amazon AMZN, Disney DIS and Apple AAPL, the company continued to witness strong engagement in the reported quarter. Apple Inc. (AAPL): Free Stock Analysis Report At the end of the third quarter, Netflix had 223.09 million paid subscribers globally, up 4.5% year over year and better than our estimate of 221.67 million.
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2022-10-19 00:00:00 UTC
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Apple (AAPL) Expands Portfolio With Redesigned & Next-Gen iPads
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https://www.nasdaq.com/articles/apple-aapl-expands-portfolio-with-redesigned-next-gen-ipads
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Apple AAPL is expanding its product lineup with the introduction of a redesigned iPad and next-gen iPad Pro.
The redesigned iPad features a large 10.9-inch Liquid Retina display and is powered by an A14 Bionic chip that is 5 times faster than the best-selling Android tablet and 3 times fasters than the iPad (7th generation).
The device offers an Ultra-Wide 12MP front camera located along the landscape edge of the iPad and an updated 12MP back camera to capture sharp, vivid photos and 4K video. The latest iPad comprises a USB-C port that supports a wide range of accessories. It also supports Wi-Fi 6 and 5G.
The new iPad will be available beginning Oct 26 at stores and will cost $449 for the Wi-Fi model and $599 for the Wi-Fi plus cellular model.
Apple also introduced iPadOS 16, which offers new features in Messages like editing or recovering recently deleted messages, and marking conversations as unread. It introduces Freeform, a new productivity app and a host of other features.
Apple Inc. Price and Consensus
Apple Inc. price-consensus-chart | Apple Inc. Quote
Meanwhile, the next-gen iPad Pro is powered by the M2 chip and features a next-level Apple Pencil hover experience. Other features include fastest Wi-Fi connections with support for Wi-Fi 6E and Wi-Fi plus Cellular models supporting 5G.
M2, which is 15% faster than M1, features an 8-core CPU and a 10-core GPU, which delivers up to 35% faster graphics performance for the most demanding users. The 16-core Neural engine, along with this combination, can process 15.8 trillion operations per second, 40% more than the M1, making the iPad Pro even more powerful in handling machine learning tasks.
Prospects Suffer Due to Lower iPhone Demand
Apple’s prospects are expected to suffer from lower demand for iPhone. Reportedly, the company has asked its suppliers to reduce production by roughly six million units in the second half of this year.
Apple now targets to ship approximately 90 million iPhones during this period, unchanged year over year and on par with its original expectation. The company had expected to ship roughly 220 million iPhones in 2022, similar to 2021.
Apple has been struggling in 2022, primarily due to supply-chain disruptions, industry-wide silicon shortage, unfavorable forex and the Russia-Ukraine conflict.
The near-term outlook is not enthusiastic, given the headwinds. Apple did not provide revenue guidance for third-quarter fiscal 2022. Apple expects COVID-induced supply chain disruptions and the industry-wide silicon shortage to hurt its top line by $4-$8 billion. Unfavorable forex is also expected to hurt revenues by 300 basis points (bps).
Moreover, the absence of revenues from Russia is expected to hurt the top line by 150 bps. Apple paused all sales in Russia during the fiscal second quarter (March quarter).
Overall, on a year-to-date basis, Apple shares have declined 18.7%, while the Zacks Computer & Technology sector declined 35.6% over the same time frame.
Zacks Rank & Upcoming Earnings to Watch
Apple, which currently has a Zacks Rank #3 (Hold), is set to report its fourth-quarter fiscal 2022 results on Oct 27.
Some better-ranked stocks from the broader sector are F5 FFIV, National Instruments NATI and Simulations SLP, all three sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
F5 is set to report its fourth-quarter fiscal 2022 results on Oct 25. The company’s shares have declined 41% in the year-to-date period. The Zacks Consensus Estimate for FFIV’s fiscal 2022 earnings has been unchanged over the past 30 days to $10.13 per share.
National Instruments is scheduled to report its third-quarter 2022 results on Oct 27. NATI shares have declined 9.8% in the year-to-date period. The Zacks Consensus Estimate for NATI’s 2022 earnings has been steady over the past 30 days at $2.07 per share.
Simulations is scheduled to report its fourth-quarter fiscal 2022 results on Oct 26. SLP shares have increased 2% in the year-to-date period. The Zacks Consensus Estimate for SLP’s fiscal 2022 earnings has been steady over the past 30 days at 9 cents per share.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
F5, Inc. (FFIV): Free Stock Analysis Report
Simulations Plus, Inc. (SLP): Free Stock Analysis Report
National Instruments Corporation (NATI): 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 expanding its product lineup with the introduction of a redesigned iPad and next-gen iPad Pro. Apple Inc. (AAPL): Free Stock Analysis Report The 16-core Neural engine, along with this combination, can process 15.8 trillion operations per second, 40% more than the M1, making the iPad Pro even more powerful in handling machine learning tasks.
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Apple AAPL is expanding its product lineup with the introduction of a redesigned iPad and next-gen iPad Pro. Apple Inc. (AAPL): Free Stock Analysis Report Apple Inc. Price and Consensus Apple Inc. price-consensus-chart | Apple Inc. Quote Meanwhile, the next-gen iPad Pro is powered by the M2 chip and features a next-level Apple Pencil hover experience.
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Apple Inc. (AAPL): Free Stock Analysis Report Apple AAPL is expanding its product lineup with the introduction of a redesigned iPad and next-gen iPad Pro. Apple Inc. Price and Consensus Apple Inc. price-consensus-chart | Apple Inc. Quote Meanwhile, the next-gen iPad Pro is powered by the M2 chip and features a next-level Apple Pencil hover experience.
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Apple AAPL is expanding its product lineup with the introduction of a redesigned iPad and next-gen iPad Pro. Apple Inc. (AAPL): Free Stock Analysis Report Apple now targets to ship approximately 90 million iPhones during this period, unchanged year over year and on par with its original expectation.
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2022-10-19 00:00:00 UTC
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Taiwan-China, U.S.-China tensions 'serious' challenge for chip industry, TSMC says
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AAPL
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https://www.nasdaq.com/articles/taiwan-china-u.s.-china-tensions-serious-challenge-for-chip-industry-tsmc-says
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nan
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By Sarah Wu
HSINCHU, Taiwan, Oct 19 (Reuters) - Rising Taiwan-China and U.S.-China tensions have brought "more serious" challenges for the semiconductor industry, the chairman of Taiwanese chipmaker TSMC 2330.TW said on Wednesday.
Taiwan is a major producer of chips used in everything from cars, smartphones to data centres and fighter jets, while Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N is the world's largest contract chipmaker and Asia's most valuable listed firm.
While the chips sector is already bracing for waning demand as red-hot inflation squeezes spending, Taiwan faces a tougher situation - sandwiched between its largest export market China and its main international backer and arms supplier, the United States - especially as Beijing steps up military pressure to force Taipei to accept Chinese sovereignty claims.
Speaking at the Taiwan Semiconductor Industry Association's annual convention, TSMC Chairman Mark Liu said: "The U.S.-China trade conflict and the escalation of cross-Strait tensions have brought more serious challenges to all industries, including the semiconductor industry."
In recent years, China's government has "never stopped promoting its domestic semiconductor industry", including chip design, manufacturing, and packaging, he added.
The United States has also passed its CHIPS Act to vigorously support local research and development and manufacturing, Liu said.
Liu said he looked forward to Taiwan's industry, government and academia developing "more concrete, constructive measures" on industrial policies related to innovation, research, talent education and retention "to maintain Taiwan's most critical semiconductor industry advantages".
He noted that this year the "industry value" of Taiwan's chip sector is expected to have risen one-fifth compared with 2021, even with the impact of Sino-U.S. trade friction and geopolitical problems.
The new rules require U.S. companies to cease supplying Chinese chipmakers with equipment to make relatively advanced chips, though Washington has granted some non-Chinese companies operating in China one-year licenses.
TSMC, which makes most of its chips in Taiwan, last week cut its annual investment budget by at least 10% for 2022 and struck a more cautious note than usual on upcoming demand.
TSMC's dominance in making some of the world's most advanced chips for high-end customers such as Apple Inc AAPL.O and Qualcomm Inc QCOM.O has shielded it in recent quarters from the downturn flagged by chipmakers including Micron Technology Inc MU.O.
(Reporting by Sarah Wu; Writing by Ben Blanchard; Editing by Himani Sarkar)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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TSMC's dominance in making some of the world's most advanced chips for high-end customers such as Apple Inc AAPL.O and Qualcomm Inc QCOM.O has shielded it in recent quarters from the downturn flagged by chipmakers including Micron Technology Inc MU.O. By Sarah Wu HSINCHU, Taiwan, Oct 19 (Reuters) - Rising Taiwan-China and U.S.-China tensions have brought "more serious" challenges for the semiconductor industry, the chairman of Taiwanese chipmaker TSMC 2330.TW said on Wednesday. While the chips sector is already bracing for waning demand as red-hot inflation squeezes spending, Taiwan faces a tougher situation - sandwiched between its largest export market China and its main international backer and arms supplier, the United States - especially as Beijing steps up military pressure to force Taipei to accept Chinese sovereignty claims.
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TSMC's dominance in making some of the world's most advanced chips for high-end customers such as Apple Inc AAPL.O and Qualcomm Inc QCOM.O has shielded it in recent quarters from the downturn flagged by chipmakers including Micron Technology Inc MU.O. Taiwan is a major producer of chips used in everything from cars, smartphones to data centres and fighter jets, while Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N is the world's largest contract chipmaker and Asia's most valuable listed firm. Speaking at the Taiwan Semiconductor Industry Association's annual convention, TSMC Chairman Mark Liu said: "The U.S.-China trade conflict and the escalation of cross-Strait tensions have brought more serious challenges to all industries, including the semiconductor industry."
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TSMC's dominance in making some of the world's most advanced chips for high-end customers such as Apple Inc AAPL.O and Qualcomm Inc QCOM.O has shielded it in recent quarters from the downturn flagged by chipmakers including Micron Technology Inc MU.O. Taiwan is a major producer of chips used in everything from cars, smartphones to data centres and fighter jets, while Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N is the world's largest contract chipmaker and Asia's most valuable listed firm. Speaking at the Taiwan Semiconductor Industry Association's annual convention, TSMC Chairman Mark Liu said: "The U.S.-China trade conflict and the escalation of cross-Strait tensions have brought more serious challenges to all industries, including the semiconductor industry."
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TSMC's dominance in making some of the world's most advanced chips for high-end customers such as Apple Inc AAPL.O and Qualcomm Inc QCOM.O has shielded it in recent quarters from the downturn flagged by chipmakers including Micron Technology Inc MU.O. Taiwan is a major producer of chips used in everything from cars, smartphones to data centres and fighter jets, while Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N is the world's largest contract chipmaker and Asia's most valuable listed firm. Speaking at the Taiwan Semiconductor Industry Association's annual convention, TSMC Chairman Mark Liu said: "The U.S.-China trade conflict and the escalation of cross-Strait tensions have brought more serious challenges to all industries, including the semiconductor industry."
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2022-10-19 00:00:00 UTC
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Zacks Industry Outlook Highlights Apple and 3D Systems
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AAPL
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https://www.nasdaq.com/articles/zacks-industry-outlook-highlights-apple-and-3d-systems
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For Immediate Release
Chicago, IL – October 19, 2022 – Today, Zacks Equity Research discusses Apple AAPL and 3D Systems DDD.
Industry: Computer & Mini-Computer
Link: https://www.zacks.com/commentary/1992661/2-stocks-to-watch-from-the-challenging-computer-industry
The Zacks Computer – Mini Computers industry is suffering from massive supply-chain and logistical issues, along with several pandemic-related and geopolitical challenges, including the ongoing Russia-Ukraine war. The declining demand for PCs has become another concern for industry participants.
Nevertheless, strong demand for high-end laptops and smartphones, particularly the availability of 5G-supported iPhones, has been a key catalyst. The growing adoption of tablets like the iPad among enterprises bodes well for Apple. The launch of foldable, and AI and ML-infused smartphones, tablets, wearables and hearables is another major growth driver for the industry participants. Robust demand for production printers, materials and software bodes well for 3-D printing solutions provider 3D Systems.
Industry Description
The Zacks Computer – Mini Computers industry comprises companies that offer smartphones, desktops, laptops, printers, wearables and 3-D printers. Such devices are based either on iOS, MacOS, iPadOS, WatchOS, Microsoft Windows, or Google Chrome and Android operating systems. They predominantly use processors from Apple, Intel, AMD, Qualcomm, NVIDIA and Samsung.
Expanding screen size, better display and enhanced storage capabilities have been the key catalysts driving the rapid proliferation of smartphones. This has been well-supported by faster mobile processors. Laptops, both consumer and commercial, benefit from faster processors, sleek designs and expanded storage facilities. The addition of healthcare features has been driving the demand for wearables.
3 Mini Computer Industry Trends to Watch
Bring Your Own Device (BYOD) Aids Momentum: The industry is benefiting from the rapid adoption of BYOD in workplaces. Enterprises practicing BYOD allow employees to use their personal devices, including mobiles, laptops and tablets, for work purposes. BYOD helps connect remote workers and desk-bound employees, thereby improving process management and workflow. BYOD has proved more productive as it lowers training time. Moreover, the coronavirus-induced remote working and online learning models bode well for industry participants as demand is expected to increase for desktops and laptops.
Impressive Formfactor Drives Demand: Expanding screen size, better display and enhanced storage capabilities have been the key catalysts driving the rapid proliferation of smartphones and tablets. This has been well-supported by faster mobile processors from the likes of Qualcomm (Snapdragon-branded), NVIDIA (Tegra X1), Apple (A16 Bionic) and Samsung (Exynos 9609). Improved Internet penetration and speed, along with the evolution of mobile apps, have made smartphones indispensable for consumers. Improved graphics quality is making smartphones suitable for playing games like PUBG and Fortnite. This is expected to boost the demand for high-end smartphones and open up significant opportunities for device makers.
PCs Face Extinction Risk: Personal computers (desktops and laptops), be it Windows or Apple’s MacOS-based, have been facing the risk of extinction due to the rapid proliferation of smartphones and tablets. Stiff competition from smartphones has compelled global PC makers to not only upgrade hardware frequently but also add apps and cloud-based services to attract consumers. Nevertheless, the emergence of 5G, AI, machine learning and foldable computers is likely to be the key catalyst in expanding the total addressable market of PCs.
Zacks Industry Rank Indicates Dim Prospects
The Zacks Computer – Mini Computers industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #240, which places it in the bottom 4% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bearish near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
The industry’s position in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are pessimistic about this group’s earnings growth potential. Since Mar 31, 2022, the Zacks Consensus Estimate for this industry’s 2022 earnings has moved down 1.4%.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Outperforms Sector and S&P 500
The Zacks Computer – Mini Computers industry has outperformed the broader Zacks Computer and Technology sector as well as the S&P 500 index over the past year.
The industry has dropped 5.3% over this period compared with the S&P 500’s decline of 21.3% and the broader sector’s fall of 37.3%.
Industry's Current Valuation
On the basis of forward 12-month P/E, which is a commonly used multiple for valuing computer stocks, we see that the industry is currently trading at 20.7X compared with the S&P 500’s 15.5X and the sector’s 20.14X.
Over the last five years, the industry has traded as high as 32.32X, as low as 11.49X and at the median of 20.77X.
2 Computer Stocks to Watch Right Now
Apple: This Zacks Rank #3 (Hold) company is benefiting from the continued momentum in the Services segment, driven by App Store, Cloud Services, Music, advertising and AppleCare. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Apple’s near-term prospects are driven by the launch of the latest iPhone models, with iPhone 14 Pro witnessing strong demand. Apple TV+ is gaining recognition due to award-winning shows. This bodes well for the Services segment.
Apple currently has more than 860 million paid subscribers across its Services portfolio. The App Store continues to draw the attention of prominent developers worldwide, helping it offer appealing new apps that drive App Store traffic. A growing number of AI-infused apps will attract more subscribers to the App Store.
The Zacks Consensus Estimate for fiscal 2022 earnings has been unchanged at $6.11 per share over the past 30 days. The stock has lost 22% year to date.
3D Systems: This Zacks Rank #3 company is benefiting from strategic initiatives like the improvement of existing 3D printers, expanding partner base and enhancing productivity to drive growth.
3D Systems has implemented organizational changes to improve execution and increased investments as it shifts to a worldwide go-to-market structure. DDD plans to drive further reductions in the cost of sales from supply-chain betterment initiatives and manufacturing improvements in order to drive margins.
The Zacks Consensus Estimate for fiscal 2022 loss has widened by a penny to 26 cents per share over the past 30 days. Shares of 3D Systems have declined 63.1% year to date.
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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/performance for information about the performance numbers displayed in this press release.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For Immediate Release Chicago, IL – October 19, 2022 – Today, Zacks Equity Research discusses Apple AAPL and 3D Systems DDD. Apple Inc. (AAPL): Free Stock Analysis Report Stiff competition from smartphones has compelled global PC makers to not only upgrade hardware frequently but also add apps and cloud-based services to attract consumers.
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For Immediate Release Chicago, IL – October 19, 2022 – Today, Zacks Equity Research discusses Apple AAPL and 3D Systems DDD. Apple Inc. (AAPL): Free Stock Analysis Report Industry Description The Zacks Computer – Mini Computers industry comprises companies that offer smartphones, desktops, laptops, printers, wearables and 3-D printers.
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For Immediate Release Chicago, IL – October 19, 2022 – Today, Zacks Equity Research discusses Apple AAPL and 3D Systems DDD. Apple Inc. (AAPL): Free Stock Analysis Report Industry Description The Zacks Computer – Mini Computers industry comprises companies that offer smartphones, desktops, laptops, printers, wearables and 3-D printers.
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For Immediate Release Chicago, IL – October 19, 2022 – Today, Zacks Equity Research discusses Apple AAPL and 3D Systems DDD. Apple Inc. (AAPL): Free Stock Analysis Report Impressive Formfactor Drives Demand: Expanding screen size, better display and enhanced storage capabilities have been the key catalysts driving the rapid proliferation of smartphones and tablets.
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18839.0
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2022-10-19 00:00:00 UTC
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Investor group, unions push Hyundai to address child labor at U.S. suppliers
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AAPL
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https://www.nasdaq.com/articles/investor-group-unions-push-hyundai-to-address-child-labor-at-u.s.-suppliers
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nan
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nan
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By Mica Rosenberg and Kristina Cooke
NEW YORK/SAN FRANCISCO, Oct 19 (Reuters) - A group that works with union pension funds is pressing Hyundai Motor Co 005380.KS to respond to reports of child labor at U.S. parts suppliers, warning of potential reputational damage to the Korean automaker.
SOC Investment Group, which works with union pension funds that have more than $250 billion in assets, sent a sharply worded letter on Wednesday to company chairman Euisun Chung, saying investors were concerned in the wake of a July investigation by Reuters that found child labor at a Hyundai subsidiary in Alabama. In addition, the letter cited a recent federal and state investigation into children working at another Hyundai supplier in the state.
"Child labor and poor workplace health and safety have regulatory and legal repercussions for Hyundai in the U.S. and can cause reputational damage across the globe," said the letter from the group, which advises on corporate accountability issues.
The letter urged Hyundai's board of directors to oversee the company's response and called for several actions including an independent assessment of human and labor rights risks in the supply chain with publicly released results and ongoing monitoring.
Reuters first documented child labor practices at Hyundai-owned SMART Alabama LLC earlier this year. Then in August, authorities found children as young as 13 working at Alexander City, Alabama-based SL Alabama, a Korean-operated parts supplier and unit of Korea's SL Corp 005850.KS, and the company entered in to a settlement with the U.S. Department of Labor.
Hyundai spokesperson Ira Gabriel said the company appreciated the federal settlement reached between the U.S. Department of Labor and SL Alabama, and noted that the supplier changed its leadership and introduced additional screening of its labor practices. Gabriel also said SMART Alabama severed all ties with a third-party staffing company.
"Hyundai will continue to closely review the labor operations of its suppliers to ensure full compliance with all local, state and federal laws," Gabriel said in an email.
SOC's letter to the company comes after a public rebuke last week from leaders of the United Autoworkers union (UAW) and a September letter to the company from more than two dozen local and national advocacy groups and unions calling for an end to child labor practices.
The Washington, D.C.-based SOC, which said the funds it works with hold an estimated 27,000 shares in Hyundai, has taken a more activist approach to call out worker mistreatment and other social issues, including pressing major companies like Apple Inc AAPL.O and Tesla Inc TSLA.O to make corporate changes, said Dieter Waizenegger, the group's executive director.
"In the U.S. system, oftentimes the monetary risk for labor rights violations is relatively small so it might be seen as a cost of doing business," Waizenegger said. "I think investors like us need to step out and say, 'the value of the fines is not capturing your risk even remotely. Your product might be tinged for a long time.'"
EXCLUSIVE-Hyundai subsidiary has used child labor at Alabama factory
(Reporting by Mica Rosenberg in New York and Kristina Cooke in San Francisco Additional reporting by Joshua Schneyer in New York Editing by Matthew Lewis)
((Kristina.Cooke@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Washington, D.C.-based SOC, which said the funds it works with hold an estimated 27,000 shares in Hyundai, has taken a more activist approach to call out worker mistreatment and other social issues, including pressing major companies like Apple Inc AAPL.O and Tesla Inc TSLA.O to make corporate changes, said Dieter Waizenegger, the group's executive director. By Mica Rosenberg and Kristina Cooke NEW YORK/SAN FRANCISCO, Oct 19 (Reuters) - A group that works with union pension funds is pressing Hyundai Motor Co 005380.KS to respond to reports of child labor at U.S. parts suppliers, warning of potential reputational damage to the Korean automaker. SOC Investment Group, which works with union pension funds that have more than $250 billion in assets, sent a sharply worded letter on Wednesday to company chairman Euisun Chung, saying investors were concerned in the wake of a July investigation by Reuters that found child labor at a Hyundai subsidiary in Alabama.
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The Washington, D.C.-based SOC, which said the funds it works with hold an estimated 27,000 shares in Hyundai, has taken a more activist approach to call out worker mistreatment and other social issues, including pressing major companies like Apple Inc AAPL.O and Tesla Inc TSLA.O to make corporate changes, said Dieter Waizenegger, the group's executive director. By Mica Rosenberg and Kristina Cooke NEW YORK/SAN FRANCISCO, Oct 19 (Reuters) - A group that works with union pension funds is pressing Hyundai Motor Co 005380.KS to respond to reports of child labor at U.S. parts suppliers, warning of potential reputational damage to the Korean automaker. In addition, the letter cited a recent federal and state investigation into children working at another Hyundai supplier in the state.
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The Washington, D.C.-based SOC, which said the funds it works with hold an estimated 27,000 shares in Hyundai, has taken a more activist approach to call out worker mistreatment and other social issues, including pressing major companies like Apple Inc AAPL.O and Tesla Inc TSLA.O to make corporate changes, said Dieter Waizenegger, the group's executive director. SOC Investment Group, which works with union pension funds that have more than $250 billion in assets, sent a sharply worded letter on Wednesday to company chairman Euisun Chung, saying investors were concerned in the wake of a July investigation by Reuters that found child labor at a Hyundai subsidiary in Alabama. Hyundai spokesperson Ira Gabriel said the company appreciated the federal settlement reached between the U.S. Department of Labor and SL Alabama, and noted that the supplier changed its leadership and introduced additional screening of its labor practices.
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The Washington, D.C.-based SOC, which said the funds it works with hold an estimated 27,000 shares in Hyundai, has taken a more activist approach to call out worker mistreatment and other social issues, including pressing major companies like Apple Inc AAPL.O and Tesla Inc TSLA.O to make corporate changes, said Dieter Waizenegger, the group's executive director. By Mica Rosenberg and Kristina Cooke NEW YORK/SAN FRANCISCO, Oct 19 (Reuters) - A group that works with union pension funds is pressing Hyundai Motor Co 005380.KS to respond to reports of child labor at U.S. parts suppliers, warning of potential reputational damage to the Korean automaker. In addition, the letter cited a recent federal and state investigation into children working at another Hyundai supplier in the state.
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18840.0
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2022-10-19 00:00:00 UTC
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Taiwan and U.S. tensions with China pose 'serious' challenges for chip industry - TSMC
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AAPL
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https://www.nasdaq.com/articles/taiwan-and-u.s.-tensions-with-china-pose-serious-challenges-for-chip-industry-tsmc
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nan
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nan
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By Sarah Wu
HSINCHU, Taiwan, Oct 19 (Reuters) - Rising Taiwan-China and U.S.-China tensions have brought "more serious" challenges for the semiconductor industry, the chairman of Taiwanese chipmaker TSMC 2330.TW said on Wednesday.
Taiwan is a major producer of chips used in everything from cars and smartphones to data centres and fighter jets, and Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N is the world's largest contract chipmaker and Asia's most valuable listed firm.
While the chips sector is already bracing for waning demand as red-hot inflation squeezes spending, Taiwan faces a tougher situation - sandwiched between its largest export market China and its main international backer and arms supplier, the United States - especially as Beijing steps up military pressure to force Taipei to accept Chinese sovereignty claims.
Speaking at the Taiwan Semiconductor Industry Association's annual convention, TSMC Chairman Mark Liu said: "The U.S.-China trade conflict and the escalation of cross-Strait tensions have brought more serious challenges to all industries, including the semiconductor industry."
In recent years, China's government has "never stopped promoting its domestic semiconductor industry", including chip design, manufacturing, and packaging, he said.
The United States has also passed its CHIPS Act to vigorously support local research and development and manufacturing, Liu said.
Liu said he looked forward to Taiwan's industry, government and academia developing "more concrete, constructive measures" on industrial policies related to innovation, research, talent education and retention "to maintain Taiwan's most critical semiconductor industry advantages".
He noted that this year the "industry value" of Taiwan's chip sector is expected to have risen one-fifth compared with 2021, even with the impact of Sino-U.S. trade friction and geopolitical problems.
The new rules require U.S. companies to cease supplying Chinese chipmakers with equipment to make relatively advanced chips, though Washington has granted some non-Chinese companies operating in China one-year licenses."
"The difficulty this time will be a very big challenge," Nicky Lu, chairman of Taiwan chip design firm Etron Technology Inc 5351.TWO, told reporters ahead of the event. "No one will escape the impact."
Frank Huang, chairman of Powerchip Semiconductor Manufacturing Corp 6770.TWO, said the sector was caught in a difficult situation.
"We do business on both sides of the Strait. So we can't listen to the U.S. and not do any business with mainland China. Then what would everyone eat?" Huang said. "Our industry's position is to maintain our competitiveness."
TSMC, which makes most of its chips in Taiwan, last week cut its annual investment budget by at least 10% for 2022 and struck a more cautious note than usual on upcoming demand.
TSMC's dominance in making some of the world's most advanced chips for high-end customers such as Apple Inc AAPL.O and Qualcomm Inc QCOM.O has shielded it in recent quarters from the downturn flagged by chipmakers including Micron Technology Inc MU.O.
(Reporting by Sarah Wu; Writing by Ben Blanchard; Editing by Himani Sarkar & Simon Cameron-Moore)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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TSMC's dominance in making some of the world's most advanced chips for high-end customers such as Apple Inc AAPL.O and Qualcomm Inc QCOM.O has shielded it in recent quarters from the downturn flagged by chipmakers including Micron Technology Inc MU.O. By Sarah Wu HSINCHU, Taiwan, Oct 19 (Reuters) - Rising Taiwan-China and U.S.-China tensions have brought "more serious" challenges for the semiconductor industry, the chairman of Taiwanese chipmaker TSMC 2330.TW said on Wednesday. While the chips sector is already bracing for waning demand as red-hot inflation squeezes spending, Taiwan faces a tougher situation - sandwiched between its largest export market China and its main international backer and arms supplier, the United States - especially as Beijing steps up military pressure to force Taipei to accept Chinese sovereignty claims.
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TSMC's dominance in making some of the world's most advanced chips for high-end customers such as Apple Inc AAPL.O and Qualcomm Inc QCOM.O has shielded it in recent quarters from the downturn flagged by chipmakers including Micron Technology Inc MU.O. Speaking at the Taiwan Semiconductor Industry Association's annual convention, TSMC Chairman Mark Liu said: "The U.S.-China trade conflict and the escalation of cross-Strait tensions have brought more serious challenges to all industries, including the semiconductor industry." In recent years, China's government has "never stopped promoting its domestic semiconductor industry", including chip design, manufacturing, and packaging, he said.
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TSMC's dominance in making some of the world's most advanced chips for high-end customers such as Apple Inc AAPL.O and Qualcomm Inc QCOM.O has shielded it in recent quarters from the downturn flagged by chipmakers including Micron Technology Inc MU.O. Taiwan is a major producer of chips used in everything from cars and smartphones to data centres and fighter jets, and Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N is the world's largest contract chipmaker and Asia's most valuable listed firm. Speaking at the Taiwan Semiconductor Industry Association's annual convention, TSMC Chairman Mark Liu said: "The U.S.-China trade conflict and the escalation of cross-Strait tensions have brought more serious challenges to all industries, including the semiconductor industry."
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TSMC's dominance in making some of the world's most advanced chips for high-end customers such as Apple Inc AAPL.O and Qualcomm Inc QCOM.O has shielded it in recent quarters from the downturn flagged by chipmakers including Micron Technology Inc MU.O. Speaking at the Taiwan Semiconductor Industry Association's annual convention, TSMC Chairman Mark Liu said: "The U.S.-China trade conflict and the escalation of cross-Strait tensions have brought more serious challenges to all industries, including the semiconductor industry." In recent years, China's government has "never stopped promoting its domestic semiconductor industry", including chip design, manufacturing, and packaging, he said.
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18841.0
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2022-10-19 00:00:00 UTC
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1 Growth Stock Set to Soar 1,000%, According to Cathie Wood
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AAPL
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https://www.nasdaq.com/articles/1-growth-stock-set-to-soar-1000-according-to-cathie-wood
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nan
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After a stellar 2020, Cathie Wood's ARK Invest hasn't done so hot. Shares of the staple ARK Innovation ETF (NYSEMKT: ARKK) are down almost 77% from their all-time highs.
While the firm's results might be changing, its investment strategy isn't. ARK Invest continues to buy innovative growth stocks, and it has become increasingly optimistic about Roku (NASDAQ: ROKU). The streaming platform is ARK's third-largest position across all its ETFs as of this writing.
Why, you might ask? Cathie Wood and ARK Invest have a very optimistic price target on the company of $605 by 2026, which implies a 1,050% return from the stock's current price of roughly $52.60. But is this price target within reach for Roku?
Image source: Getty Images.
Wood might be overly optimistic...
Many growth investors investing in riskier companies are trying to beat the performance of the S&P 500 index, which has returned roughly 11.9% annually since 1957. However, when investors try to "beat the market," many of them anticipate earning only a few more percentage points annually. Therefore, Wood's price target of $605 on Roku might be too outlandish.
This price target reflects more than 1,000% price appreciation over only four years, implying a compound annual growth rate topping 84%. In other words, Wood hopes Roku's share price will jump 84% every year (on average) for the next four years.
While beating the market has been done before, that price target projects some extremely rare price appreciation. For comparison, Apple has seen returns of roughly 518% over the past decade. While that has handily beaten the market, that's only half of what Wood expects for Roku (over an even shorter period).
This isn't to mention the headwinds facing Roku over the coming year or two. With the challenging economy in the U.S. right now, Roku has two issues on its hands.
First, consumers are less likely to spend on discretionary goods like televisions right now. Second, the challenging macro environment is causing businesses to pull back ad spending, where Roku makes a lot of its money. Because of this, Roku softened its Q3 revenue guidance, and it now foresees just a 3% year-over-year revenue expansion for the quarter.
Not only that, but Roku's profits fell drastically over the past few quarters. At the beginning of 2022, Roku's trailing-12-month free cash flow was almost $200 million, which has since fallen to a burn of $5 million. The same goes for trailing-12-month net income.
But she might be on to something
While Cathie's price target might be overshooting, there are still reasons to be optimistic about Roku over the long haul. Streaming is picking up drastically, recently overtaking cable TV in terms of usage. According to The Trade Desk, connected TV streaming reached 109 million households in the U.S. in 2021, far higher than the 68.5 million cable subscriptions in the U.S. over the same period.
Streaming might be on the rise, but advertisers haven't made the shift yet. Advertisers are predicted to spend just 22% of U.S. TV ad budgets on streaming in 2022, while U.S. consumers ages 18 to 49 spent 50% of TV time streaming in the second quarter of 2022. These figures will likely converge over the long haul as advertisers realize the benefits of advertising on streaming platforms.
Considering Roku is the leading streaming platform in the U.S., Canada, and Mexico, with over 63 million active accounts, the company looks best positioned to capitalize on this massive opportunity.
Does the reward equal the risk?
Roku might not be considered a safe stock, but the potential reward for owning the company for the long haul seems to outweigh the risks. Yes, the short term could be painful for Roku as advertisers pull back ad spending and consumers purchase fewer TVs. However, the future is moving toward streaming. As long as Roku remains the leader in this space as streaming picks up, Roku could reap significant benefits over the long haul.
Additionally, if you're willing to own this stock in a diversified portfolio, you can buy shares now at historically cheap prices. At 2.4 times sales, Roku has not traded around this valuation since coming public in 2017.
With an attractive long-term opportunity ahead and the brand name and scale to benefit, Roku could be a winner, although maybe not as big a winner as Cathie Wood projects.
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Jamie Louko has positions in Apple, Roku, and The Trade Desk. The Motley Fool has positions in and recommends Apple, Roku, and The Trade Desk. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Second, the challenging macro environment is causing businesses to pull back ad spending, where Roku makes a lot of its money. Considering Roku is the leading streaming platform in the U.S., Canada, and Mexico, with over 63 million active accounts, the company looks best positioned to capitalize on this massive opportunity. Yes, the short term could be painful for Roku as advertisers pull back ad spending and consumers purchase fewer TVs.
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Cathie Wood and ARK Invest have a very optimistic price target on the company of $605 by 2026, which implies a 1,050% return from the stock's current price of roughly $52.60. Yes, the short term could be painful for Roku as advertisers pull back ad spending and consumers purchase fewer TVs. 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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ARK Invest continues to buy innovative growth stocks, and it has become increasingly optimistic about Roku (NASDAQ: ROKU). Cathie Wood and ARK Invest have a very optimistic price target on the company of $605 by 2026, which implies a 1,050% return from the stock's current price of roughly $52.60. As long as Roku remains the leader in this space as streaming picks up, Roku could reap significant benefits over the long haul.
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After a stellar 2020, Cathie Wood's ARK Invest hasn't done so hot. Cathie Wood and ARK Invest have a very optimistic price target on the company of $605 by 2026, which implies a 1,050% return from the stock's current price of roughly $52.60. Advertisers are predicted to spend just 22% of U.S. TV ad budgets on streaming in 2022, while U.S. consumers ages 18 to 49 spent 50% of TV time streaming in the second quarter of 2022.
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18842.0
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2022-10-19 00:00:00 UTC
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US STOCKS-Wall St set to open lower as soaring Treasury yields dampen Netflix-led gains
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-open-lower-as-soaring-treasury-yields-dampen-netflix-led-gains
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nan
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nan
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By Ankika Biswas and Shreyashi Sanyal
Oct 19 (Reuters) - Wall Street's main indexes were set to fall at the open on Wednesday as Treasury yields surged to 14-year highs amid rising interest rates, denting gains powered by streaming giant Netflix after it reversed customer losses.
The yield on the benchmark 10-year Treasury note US10YT=RRclimbed to its highest levels since July 2008 in a steep selloff in U.S. government bonds, which picked up pace after data showed an 8.1% slide in housing starts in September.
A drop in the measure of new residential constructions, a key economic indicator, is another sign of the economy losing steam and could worsen the pain for stock markets attempting to break out of months of declines.
The three main stock indexes have notched two straight sessions of gains on solid quarterly results from big U.S. banks, but they are still deep in bear market territory.
While some gauges of the equity market's health showed that the latest rally may be the start of a sustained move higher, many investors are awaiting signs of cooling inflation.
With inflation way above the Federal Reserve's target, the U.S. central bank is likely to raise rates by 75-basis points for the fourth straight time in November.
"We probably just saw a bear market bounce and it is going to be in this kind of environment where the market's going to face volatility until the Fed feels comfortable enough to slow their pace of rate hikes," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.
"That probably won't be coming until we start to see some weakness in the labor market, which is helping fuel inflation pressures."
Analysts have cut their third-quarter profit expectations for S&P 500 companies to just 2.8%, from an 11.1% increase forecast at the start of July, according to Refinitiv data.
Apple Inc AAPL.O fell 1.3% in premarket trading after a report of iPhone 14 Plus production cut within weeks of starting shipments.
Other growth stocks including Tesla Inc TSLA.O, Amazon.com AMZN.O, Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O fell between 0.1% and 0.2%.
Netflix NFLX.O jumped 11.3% after it attracted 2.4 million new subscribers worldwide in the third quarter, more than double the consensus forecast, and guided for 4.5 million additions by year end.
Netflix's subscriber turnaround also lifted stocks of rival streaming companies. Warner Bros Discovery WBD.O, Walt Disney DIS.N and Roku ROKU.O gained between 1.1% and 1.5%.
At 8:27 a.m. ET, Dow e-minis 1YMcv1 were down 134 points, or 0.44%, S&P 500 e-minis EScv1 were down 21 points, or 0.56%, and Nasdaq 100 e-minis NQcv1 were down 57.25 points, or 0.51%.
United Airlines Holdings Inc UAL.O jumped 5.8% as the U.S. carrier posted its strongest quarterly earnings in three years.
(Reporting by Ankika Biswas and Shreyashi Sanyal in Bengaluru; Editing by Sriraj Kalluvila and Arun Koyyur)
((Ankika.Biswas@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O fell 1.3% in premarket trading after a report of iPhone 14 Plus production cut within weeks of starting shipments. By Ankika Biswas and Shreyashi Sanyal Oct 19 (Reuters) - Wall Street's main indexes were set to fall at the open on Wednesday as Treasury yields surged to 14-year highs amid rising interest rates, denting gains powered by streaming giant Netflix after it reversed customer losses. The yield on the benchmark 10-year Treasury note US10YT=RRclimbed to its highest levels since July 2008 in a steep selloff in U.S. government bonds, which picked up pace after data showed an 8.1% slide in housing starts in September.
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Apple Inc AAPL.O fell 1.3% in premarket trading after a report of iPhone 14 Plus production cut within weeks of starting shipments. By Ankika Biswas and Shreyashi Sanyal Oct 19 (Reuters) - Wall Street's main indexes were set to fall at the open on Wednesday as Treasury yields surged to 14-year highs amid rising interest rates, denting gains powered by streaming giant Netflix after it reversed customer losses. The three main stock indexes have notched two straight sessions of gains on solid quarterly results from big U.S. banks, but they are still deep in bear market territory.
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Apple Inc AAPL.O fell 1.3% in premarket trading after a report of iPhone 14 Plus production cut within weeks of starting shipments. By Ankika Biswas and Shreyashi Sanyal Oct 19 (Reuters) - Wall Street's main indexes were set to fall at the open on Wednesday as Treasury yields surged to 14-year highs amid rising interest rates, denting gains powered by streaming giant Netflix after it reversed customer losses. The three main stock indexes have notched two straight sessions of gains on solid quarterly results from big U.S. banks, but they are still deep in bear market territory.
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Apple Inc AAPL.O fell 1.3% in premarket trading after a report of iPhone 14 Plus production cut within weeks of starting shipments. By Ankika Biswas and Shreyashi Sanyal Oct 19 (Reuters) - Wall Street's main indexes were set to fall at the open on Wednesday as Treasury yields surged to 14-year highs amid rising interest rates, denting gains powered by streaming giant Netflix after it reversed customer losses. With inflation way above the Federal Reserve's target, the U.S. central bank is likely to raise rates by 75-basis points for the fourth straight time in November.
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18843.0
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2022-10-18 00:00:00 UTC
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Notable ETF Inflow Detected - VOO, AAPL, MSFT, GOOG
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AAPL
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https://www.nasdaq.com/articles/notable-etf-inflow-detected-voo-aapl-msft-goog
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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 Vanguard S&P 500 ETF (Symbol: VOO) where we have detected an approximate $3.5 billion dollar inflow -- that's a 1.4% increase week over week in outstanding units (from 725,989,116 to 736,293,384). Among the largest underlying components of VOO, in trading today Apple Inc (Symbol: AAPL) is up about 2%, Microsoft Corporation (Symbol: MSFT) is up about 1%, and Alphabet Inc (Symbol: GOOG) is higher by about 1.3%. For a complete list of holdings, visit the VOO Holdings page » The chart below shows the one year price performance of VOO, versus its 200 day moving average:
Looking at the chart above, VOO's low point in its 52 week range is $319.87 per share, with $441.26 as the 52 week high point — that compares with a last trade of $341.76. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and 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 VOO, in trading today Apple Inc (Symbol: AAPL) is up about 2%, Microsoft Corporation (Symbol: MSFT) is up about 1%, and Alphabet Inc (Symbol: GOOG) is higher by about 1.3%. For a complete list of holdings, visit the VOO Holdings page » The chart below shows the one year price performance of VOO, versus its 200 day moving average: Looking at the chart above, VOO's low point in its 52 week range is $319.87 per share, with $441.26 as the 52 week high point — that compares with a last trade of $341.76. 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 VOO, in trading today Apple Inc (Symbol: AAPL) is up about 2%, Microsoft Corporation (Symbol: MSFT) is up about 1%, and Alphabet Inc (Symbol: GOOG) is higher by about 1.3%. For a complete list of holdings, visit the VOO Holdings page » The chart below shows the one year price performance of VOO, versus its 200 day moving average: Looking at the chart above, VOO's low point in its 52 week range is $319.87 per share, with $441.26 as the 52 week high point — that compares with a last trade of $341.76. 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 VOO, in trading today Apple Inc (Symbol: AAPL) is up about 2%, Microsoft Corporation (Symbol: MSFT) is up about 1%, and Alphabet Inc (Symbol: GOOG) is higher by about 1.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard S&P 500 ETF (Symbol: VOO) where we have detected an approximate $3.5 billion dollar inflow -- that's a 1.4% increase week over week in outstanding units (from 725,989,116 to 736,293,384). For a complete list of holdings, visit the VOO Holdings page » The chart below shows the one year price performance of VOO, versus its 200 day moving average: Looking at the chart above, VOO's low point in its 52 week range is $319.87 per share, with $441.26 as the 52 week high point — that compares with a last trade of $341.76.
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Among the largest underlying components of VOO, in trading today Apple Inc (Symbol: AAPL) is up about 2%, Microsoft Corporation (Symbol: MSFT) is up about 1%, and Alphabet Inc (Symbol: GOOG) is higher by about 1.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard S&P 500 ETF (Symbol: VOO) where we have detected an approximate $3.5 billion dollar inflow -- that's a 1.4% increase week over week in outstanding units (from 725,989,116 to 736,293,384). For a complete list of holdings, visit the VOO Holdings page » The chart below shows the one year price performance of VOO, versus its 200 day moving average: Looking at the chart above, VOO's low point in its 52 week range is $319.87 per share, with $441.26 as the 52 week high point — that compares with a last trade of $341.76.
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18844.0
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2022-10-18 00:00:00 UTC
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US STOCKS-Wall St up as Goldman results keep optimism alive, rising yields cap gains
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-up-as-goldman-results-keep-optimism-alive-rising-yields-cap-gains
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nan
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nan
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By Ankika Biswas and Shreyashi Sanyal
Oct 18 (Reuters) - U.S. stock indexes rose on Tuesday as strong results from Goldman Sachs calmed worries of a substantial hit to profit from rising interest rates, but a rise in government bond yields pushed megacap growth stocks lower.
Goldman Sachs Group Inc GS.N gained 2.5% after reporting a smaller-than-expected drop in quarterly profit due to a slowdown in investment banking, which was cushioned by a boost in net interest income.
The investment bank, which is reorganizing its business into three units, wrapped up earnings from big U.S. banks on a largely positive note, even though several lenders raised the loan loss provisions in anticipation of troubled times ahead.
"The markets are breathing a sigh of relief that earnings are coming in better than expected, particularly the banks and the financials, which have been very strong, especially versus expectations," said David Sadkin, president at Bel Air Investment Advisors.
"But the Fed is still hiking, we're still in the tightening cycle. If I had to guess, this is more of a short-term bear market rally, and we'll see more volatility in the weeks ahead."
The benchmark 10-year Treasury note US10YT=RR reversed early declines to rise for the fourth straight day, while big technology and growth names like Apple Inc AAPL.O, Amazon.com AMZN.O and Nvidia Corp NVDA.O cut back gains. US/
Microsoft Corp MSFT.O, however, gained 0.2% after a report it was laying off under 1,000 employees this week, becoming the latest U.S. technology company to cut jobs or slow hiring amid a global economic slowdown.
Over the last two months, all the three major U.S. stock indexes have lost more than 12% as investors worry that the U.S. Federal Reserve's war on inflation may hobble the economy.
Analysts now expect profit for S&P 500 companies to have risen just 2.8% from a year ago, much lower than an 11.1% increase expected at the start of July, according to Refinitiv data.
Meanwhile, a report said ratings agency Fitch has slashed U.S. growth forecasts for this year and next and was set to warn that the Fed's interest rate hikes and inflation will drive the economy into a 1990-style recession.
While economic indicators point to a likely recession, latest data showed U.S. factory output rose in September, indicating that the manufacturing sector remains on reasonable footing despite rising interest rates.
At 12:11 p.m. ET, the Dow Jones Industrial Average .DJI was up 268.46 points, or 0.89%, at 30,454.28, the S&P 500 .SPX was up 35.15 points, or 0.96%, at 3,713.10 and the Nasdaq Composite .IXIC was up 96.01 points, or 0.90%, at 10,771.81.
Netflix NFLX.O slid 1.7% ahead of its earnings report after markets close, with all eyes on the video-streaming company's subscriber growth, which is seen falling in the third quarter.
Salesforce Inc CRM.N jumped 4.52% after a media report that activist investor Starboard Value LP has picked up stake in the enterprise software firm.
Advancing issues outnumbered decliners by a 2.70-to-1 ratio on the NYSE and by a 2.05-to-1 ratio on the Nasdaq.
The S&P index recorded three new 52-week highs and two new lows, while the Nasdaq recorded 58 new highs and 66 new lows.
(Reporting by Ankika Biswas and Shreyashi Sanyal in Bengaluru; Additional reporting by Susan Mathew and Bansari Mayur Kamdar; Editing by Anil D'Silva, Maju Samuel and Arun Koyyur)
((Ankika.Biswas@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The benchmark 10-year Treasury note US10YT=RR reversed early declines to rise for the fourth straight day, while big technology and growth names like Apple Inc AAPL.O, Amazon.com AMZN.O and Nvidia Corp NVDA.O cut back gains. Goldman Sachs Group Inc GS.N gained 2.5% after reporting a smaller-than-expected drop in quarterly profit due to a slowdown in investment banking, which was cushioned by a boost in net interest income. US/ Microsoft Corp MSFT.O, however, gained 0.2% after a report it was laying off under 1,000 employees this week, becoming the latest U.S. technology company to cut jobs or slow hiring amid a global economic slowdown.
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The benchmark 10-year Treasury note US10YT=RR reversed early declines to rise for the fourth straight day, while big technology and growth names like Apple Inc AAPL.O, Amazon.com AMZN.O and Nvidia Corp NVDA.O cut back gains. By Ankika Biswas and Shreyashi Sanyal Oct 18 (Reuters) - U.S. stock indexes rose on Tuesday as strong results from Goldman Sachs calmed worries of a substantial hit to profit from rising interest rates, but a rise in government bond yields pushed megacap growth stocks lower. Meanwhile, a report said ratings agency Fitch has slashed U.S. growth forecasts for this year and next and was set to warn that the Fed's interest rate hikes and inflation will drive the economy into a 1990-style recession.
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The benchmark 10-year Treasury note US10YT=RR reversed early declines to rise for the fourth straight day, while big technology and growth names like Apple Inc AAPL.O, Amazon.com AMZN.O and Nvidia Corp NVDA.O cut back gains. By Ankika Biswas and Shreyashi Sanyal Oct 18 (Reuters) - U.S. stock indexes rose on Tuesday as strong results from Goldman Sachs calmed worries of a substantial hit to profit from rising interest rates, but a rise in government bond yields pushed megacap growth stocks lower. Meanwhile, a report said ratings agency Fitch has slashed U.S. growth forecasts for this year and next and was set to warn that the Fed's interest rate hikes and inflation will drive the economy into a 1990-style recession.
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The benchmark 10-year Treasury note US10YT=RR reversed early declines to rise for the fourth straight day, while big technology and growth names like Apple Inc AAPL.O, Amazon.com AMZN.O and Nvidia Corp NVDA.O cut back gains. By Ankika Biswas and Shreyashi Sanyal Oct 18 (Reuters) - U.S. stock indexes rose on Tuesday as strong results from Goldman Sachs calmed worries of a substantial hit to profit from rising interest rates, but a rise in government bond yields pushed megacap growth stocks lower. "The markets are breathing a sigh of relief that earnings are coming in better than expected, particularly the banks and the financials, which have been very strong, especially versus expectations," said David Sadkin, president at Bel Air Investment Advisors.
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18845.0
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2022-10-18 00:00:00 UTC
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POLL-Taiwan Sept export orders likely contracted
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AAPL
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https://www.nasdaq.com/articles/poll-taiwan-sept-export-orders-likely-contracted
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nan
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nan
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*
For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWEXOR%3DECI
*
Orders median forecast -5.5% y/y (prior month +2%)
*
Data due Thursday, Oct. 20, 4:00 p.m. (0800 GMT)
TAIPEI, Oct 19 (Reuters) - Taiwan's export orders likely contracted in September as global demand for technology cools, a Reuters poll showed on Wednesday.
The median forecast from a poll of 15 economists was for export orders to fall 5.5% from a year earlier. Forecasts ranged from an expansion of 0.7% to a contraction of 10%.
The island's export orders, a bellwether of global technology demand, unexpectedly expanded in August on strong demand for technology and more consumer electronics product launches such as iPhones even as the island's largest market China faced continued headwinds.
The government has predicted last month's orders to be between 7% and 9.4% lower than those of September 2021, though that will also be off a high base.
Taiwan's export orders are a leading indicator of demand for hi-tech gadgets and Asian exports, and typically lead actual exports by two to three months.
The island's manufacturers, including the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd , are a key part of the global supply chain for technology giants including Apple Inc .
The data for September will be released on Thursday. (Poll compiled by Anant Chandak and Carol Lee; Reporting by Ben Blanchard; Editing by Sherry Jacob-Phillips) ((ben.blanchard@thomsonreuters.com;)) Keywords: TAIWAN ECONOMY/ORDERS (POLL)
The views and 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 median forecast from a poll of 15 economists was for export orders to fall 5.5% from a year earlier. The island's export orders, a bellwether of global technology demand, unexpectedly expanded in August on strong demand for technology and more consumer electronics product launches such as iPhones even as the island's largest market China faced continued headwinds. (Poll compiled by Anant Chandak and Carol Lee; Reporting by Ben Blanchard; Editing by Sherry Jacob-Phillips) ((ben.blanchard@thomsonreuters.com;)) Keywords: TAIWAN ECONOMY/ORDERS (POLL) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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* For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWEXOR%3DECI * Orders median forecast -5.5% y/y (prior month +2%) * Data due Thursday, Oct. 20, 4:00 p.m. (0800 GMT) TAIPEI, Oct 19 (Reuters) - Taiwan's export orders likely contracted in September as global demand for technology cools, a Reuters poll showed on Wednesday. The island's export orders, a bellwether of global technology demand, unexpectedly expanded in August on strong demand for technology and more consumer electronics product launches such as iPhones even as the island's largest market China faced continued headwinds. The island's manufacturers, including the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd , are a key part of the global supply chain for technology giants including Apple Inc .
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* For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWEXOR%3DECI * Orders median forecast -5.5% y/y (prior month +2%) * Data due Thursday, Oct. 20, 4:00 p.m. (0800 GMT) TAIPEI, Oct 19 (Reuters) - Taiwan's export orders likely contracted in September as global demand for technology cools, a Reuters poll showed on Wednesday. The island's export orders, a bellwether of global technology demand, unexpectedly expanded in August on strong demand for technology and more consumer electronics product launches such as iPhones even as the island's largest market China faced continued headwinds. Taiwan's export orders are a leading indicator of demand for hi-tech gadgets and Asian exports, and typically lead actual exports by two to three months.
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* For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWEXOR%3DECI * Orders median forecast -5.5% y/y (prior month +2%) * Data due Thursday, Oct. 20, 4:00 p.m. (0800 GMT) TAIPEI, Oct 19 (Reuters) - Taiwan's export orders likely contracted in September as global demand for technology cools, a Reuters poll showed on Wednesday. Forecasts ranged from an expansion of 0.7% to a contraction of 10%. The island's export orders, a bellwether of global technology demand, unexpectedly expanded in August on strong demand for technology and more consumer electronics product launches such as iPhones even as the island's largest market China faced continued headwinds.
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18846.0
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2022-10-18 00:00:00 UTC
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Apple (AAPL) Gains But Lags Market: What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-gains-but-lags-market%3A-what-you-should-know-3
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nan
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nan
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Apple (AAPL) closed at $143.75 in the latest trading session, marking a +0.94% move from the prior day. This move lagged the S&P 500's daily gain of 1.14%. Elsewhere, the Dow gained 1.12%, while the tech-heavy Nasdaq lost 0.02%.
Investors will be hoping for strength from Apple as it approaches its next earnings release, which is expected to be October 27, 2022. The company is expected to report EPS of $1.26, up 1.61% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $88.26 billion, up 5.88% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Apple. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Apple is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Apple currently has a Forward P/E ratio of 21.91. Its industry sports an average Forward P/E of 6.29, so we one might conclude that Apple is trading at a premium comparatively.
It is also worth noting that AAPL currently has a PEG ratio of 1.75. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. AAPL's industry had an average PEG ratio of 2.03 as of yesterday's close.
The Computer - Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 238, which puts it in the bottom 6% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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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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Apple (AAPL) closed at $143.75 in the latest trading session, marking a +0.94% move from the prior day. It is also worth noting that AAPL currently has a PEG ratio of 1.75. AAPL's industry had an average PEG ratio of 2.03 as of yesterday's close.
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Apple (AAPL) closed at $143.75 in the latest trading session, marking a +0.94% move from the prior day. It is also worth noting that AAPL currently has a PEG ratio of 1.75. AAPL's industry had an average PEG ratio of 2.03 as of yesterday's close.
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Apple (AAPL) closed at $143.75 in the latest trading session, marking a +0.94% move from the prior day. It is also worth noting that AAPL currently has a PEG ratio of 1.75. AAPL's industry had an average PEG ratio of 2.03 as of yesterday's close.
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Apple (AAPL) closed at $143.75 in the latest trading session, marking a +0.94% move from the prior day. It is also worth noting that AAPL currently has a PEG ratio of 1.75. AAPL's industry had an average PEG ratio of 2.03 as of yesterday's close.
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18847.0
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2022-10-18 00:00:00 UTC
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Mexican opposition lawmaker says he was target of Pegasus spyware
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AAPL
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https://www.nasdaq.com/articles/mexican-opposition-lawmaker-says-he-was-target-of-pegasus-spyware
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nan
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nan
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By Daina Beth Solomon
MEXICO CITY, Oct 17 (Reuters) - Mexican opposition congressman Agustin Basave Alanis said on Tuesday his phone was infected by Pegasus, the fourth alleged case of the controversial spyware being deployed under President Andres Manuel Lopez Obrador, who had vowed to stop using it.
Federal lawmaker Basave from the center-left Citizens' Movement in the wealthy northern city of Monterrey said an analysis from leading cyber watchdog Citizen Lab found Pegasus on his phone in September 2021.
Basave's allegation comes after a report this month from Mexican digital rights group R3D showed that phones belonging to two journalists and an activist were infected between 2019 and 2021.
Lopez Obrador, who took office in late 2018, denied spying on opponents or journalists when asked recently about the three cases. He added the military did conduct intelligence work, but that this was "not spying."
His office did not immediately reply to a request for comment about Basave.
Pegasus belongs to Israeli spyware firm NSO Group, which typically only sells the software to governments or law enforcement.
"This is a very powerful tool ... a violation of my most personal spaces and communications," Basave told Reuters.
The son of a noted opposition politician of the same name, Basave is close to Monterrey Mayor Luis Donaldo Colosio, whose father, an icon of the long-ruling Institutional Revolutionary Party (PRI), was assassinated in 1994.
Colosio has also been deemed a potential contender for the presidency after Lopez Obrador's term ends in 2024.
Basave added that he hoped an investigation would show who was responsible and prevent further hacks.
"My concern is around the impunity and the conditions to get away with something like this," he said.
When asked about Basave's case, NSO Group said Citizen Lab investigations are not able to differentiate between NSO tools and other cyber intelligence software.
Citizen Lab said it rejects that assertion.
(Reporting by Daina Beth Solomon; Editing by David Gregorio)
((daina.solomon@thomsonreuters.com; +52 55 5282 7150;))
The views and 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 Daina Beth Solomon MEXICO CITY, Oct 17 (Reuters) - Mexican opposition congressman Agustin Basave Alanis said on Tuesday his phone was infected by Pegasus, the fourth alleged case of the controversial spyware being deployed under President Andres Manuel Lopez Obrador, who had vowed to stop using it. Basave's allegation comes after a report this month from Mexican digital rights group R3D showed that phones belonging to two journalists and an activist were infected between 2019 and 2021. The son of a noted opposition politician of the same name, Basave is close to Monterrey Mayor Luis Donaldo Colosio, whose father, an icon of the long-ruling Institutional Revolutionary Party (PRI), was assassinated in 1994.
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By Daina Beth Solomon MEXICO CITY, Oct 17 (Reuters) - Mexican opposition congressman Agustin Basave Alanis said on Tuesday his phone was infected by Pegasus, the fourth alleged case of the controversial spyware being deployed under President Andres Manuel Lopez Obrador, who had vowed to stop using it. Basave's allegation comes after a report this month from Mexican digital rights group R3D showed that phones belonging to two journalists and an activist were infected between 2019 and 2021. When asked about Basave's case, NSO Group said Citizen Lab investigations are not able to differentiate between NSO tools and other cyber intelligence software.
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By Daina Beth Solomon MEXICO CITY, Oct 17 (Reuters) - Mexican opposition congressman Agustin Basave Alanis said on Tuesday his phone was infected by Pegasus, the fourth alleged case of the controversial spyware being deployed under President Andres Manuel Lopez Obrador, who had vowed to stop using it. Federal lawmaker Basave from the center-left Citizens' Movement in the wealthy northern city of Monterrey said an analysis from leading cyber watchdog Citizen Lab found Pegasus on his phone in September 2021. When asked about Basave's case, NSO Group said Citizen Lab investigations are not able to differentiate between NSO tools and other cyber intelligence software.
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Lopez Obrador, who took office in late 2018, denied spying on opponents or journalists when asked recently about the three cases. He added the military did conduct intelligence work, but that this was "not spying." When asked about Basave's case, NSO Group said Citizen Lab investigations are not able to differentiate between NSO tools and other cyber intelligence software.
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18848.0
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2022-10-18 00:00:00 UTC
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US STOCKS-Goldman, Lockheed results buoy Wall Street
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AAPL
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https://www.nasdaq.com/articles/us-stocks-goldman-lockheed-results-buoy-wall-street
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nan
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nan
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By Chuck Mikolajczak
NEW YORK, Oct 18 (Reuters) - U.S. stocks closed higher for a second straight day on Tuesday as solid quarterly results from Goldman Sachs and Lockheed Martin lessened worries of a weak earnings season.
Goldman Sachs Group Inc GS.N gained after reporting a smaller-than-expected drop in quarterly profit as a boost in net interest income cushioned the blow from a slowdown in investment banking.
The investment bank, which is reorganizing its business into three units, largely closed out earnings from major financial firms on a largely positive note, even though several lenders raised the loan loss provisions in anticipation of troubled times ahead.
Lockheed Martin LMT.N shot up after the weapons maker posted stronger-than-expected quarterly revenue and maintained its 2022 revenue view. The gains helped lift the S&P industrials index .SPLRCI as the best performing of the 11 major sectors.
"The banks were good... we’ll see if some of the other ones, more of the consumer sensitive ones, can they pass through their cost increases, have they stopped passing them though, but yeah people are hoping for better," said Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey.
"We need to see more of the earnings data, we need to see more of the data that will knock down inflation and then you can maybe get your rally going, until then I think everybody would say treat all rallies as suspect."
Analysts now expect quarterly earnings growth for S&P 500 companies of just 2.8% from a year ago, much lower than an 11.1% increase expected at the start of July, according to Refinitiv data.
According to preliminary data, the S&P 500 .SPX gained 43.85 points, or 1.19%, to end at 3,721.80 points, while the Nasdaq Composite .IXIC gained 98.89 points, or 0.93%, to 10,774.69. The Dow Jones Industrial Average .DJI rose 358.44 points, or 1.19%, to 30,544.26.
Also providing a boost was a rise in Salesforce Inc CRM.N shares after a media report that activist investor Starboard Value LP has picked up stake in the enterprise software firm.
Stocks briefly pared gains late in the session after a report that Apple AAPL.O was cutting production of its iPhone 14 Plus just weeks after starting shipments.
Signs the U.S. Federal Reserve's aggressive rate hike path may be starting to crimp the labor market were beginning to appear. Microsoft Corp MSFT.O, was little changed after a report it was laying off under 1,000 employees this week, becoming the latest U.S. technology company to cut jobs or slow hiring amid a global economic slowdown.
The Fed's path has left many investors worried it could tilt the economy into a recession by making a policy mistake and raising rates too much. Fed officials have largely been in sync in comments about the need for the central bank to tamp down inflation.
A report said ratings agency Fitch has slashed U.S. growth forecasts for this year and next and was set to warn that the Fed's interest rate hikes and inflation will drive the economy into a 1990-style recession.
But economic data on Tuesday indicated the manufacturing sector remains on reasonable footing despite the Fed's efforts, although they appear to be sharply weighing on the housing market.
Netflix NFLX.O lost ground ahead of its earnings report after the market close, with all eyes on the video-streaming company's subscriber growth, which is seen falling in the third quarter.
(Reporting by Chuck Mikolajczak; Editing by David Gregorio)
((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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Stocks briefly pared gains late in the session after a report that Apple AAPL.O was cutting production of its iPhone 14 Plus just weeks after starting shipments. By Chuck Mikolajczak NEW YORK, Oct 18 (Reuters) - U.S. stocks closed higher for a second straight day on Tuesday as solid quarterly results from Goldman Sachs and Lockheed Martin lessened worries of a weak earnings season. Goldman Sachs Group Inc GS.N gained after reporting a smaller-than-expected drop in quarterly profit as a boost in net interest income cushioned the blow from a slowdown in investment banking.
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Stocks briefly pared gains late in the session after a report that Apple AAPL.O was cutting production of its iPhone 14 Plus just weeks after starting shipments. By Chuck Mikolajczak NEW YORK, Oct 18 (Reuters) - U.S. stocks closed higher for a second straight day on Tuesday as solid quarterly results from Goldman Sachs and Lockheed Martin lessened worries of a weak earnings season. The investment bank, which is reorganizing its business into three units, largely closed out earnings from major financial firms on a largely positive note, even though several lenders raised the loan loss provisions in anticipation of troubled times ahead.
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Stocks briefly pared gains late in the session after a report that Apple AAPL.O was cutting production of its iPhone 14 Plus just weeks after starting shipments. Goldman Sachs Group Inc GS.N gained after reporting a smaller-than-expected drop in quarterly profit as a boost in net interest income cushioned the blow from a slowdown in investment banking. According to preliminary data, the S&P 500 .SPX gained 43.85 points, or 1.19%, to end at 3,721.80 points, while the Nasdaq Composite .IXIC gained 98.89 points, or 0.93%, to 10,774.69.
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Stocks briefly pared gains late in the session after a report that Apple AAPL.O was cutting production of its iPhone 14 Plus just weeks after starting shipments. By Chuck Mikolajczak NEW YORK, Oct 18 (Reuters) - U.S. stocks closed higher for a second straight day on Tuesday as solid quarterly results from Goldman Sachs and Lockheed Martin lessened worries of a weak earnings season. The investment bank, which is reorganizing its business into three units, largely closed out earnings from major financial firms on a largely positive note, even though several lenders raised the loan loss provisions in anticipation of troubled times ahead.
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18849.0
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2022-10-18 00:00:00 UTC
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Apple Unveils New IPad Pros, IPad And Apple TV 4K
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AAPL
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https://www.nasdaq.com/articles/apple-unveils-new-ipad-pros-ipad-and-apple-tv-4k
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(RTTNews) - Tech giant Apple Inc. (AAPL) on Tuesday unveiled new versions of its iPad Pros, a new redesigned iPad and an updated version of the Apple TV 4K.
The new updated versions of the iPad Pro 12.9" and iPad Pro 11" models are powered by Apple's latest M2 processor. The new models also boast a hover feature on the Apple Pencil, improved connectivity, and updated camera features.
The new iPad Pro is available to order starting today, and in stores beginning Wednesday, October 26. The 11-inch iPad Pro starts at $799 for the Wi-Fi model and $999 for the Wi-Fi + Cellular model; the 12.9-inch iPad Pro starts at $1,099 for the Wi-Fi model, and $1,299 for the Wi-Fi + Cellular model.
"The next-generation iPad Pro pushes the boundaries of what's possible on iPad, bringing even more versatility, power, and portability to the ultimate iPad experience," said Greg Joswiak, Apple's senior vice president of Worldwide Marketing. "Powered by the M2 chip, the new iPad Pro features incredible performance and the most advanced technologies, including a next-level Apple Pencil hover experience, ProRes video capture, superfast wireless connectivity, and powerful iPadOS 16 features. There's nothing else like it."
Meanwhile, the new redesigned iPad is thinner, with flat sides and sports a bigger 10.9-inch 2360x1640px IPS LCD with 500 nits. The 10th gen iPad runs on the A14 Bionic chip with a 6-core CPU, 4-core GPU, and a 16-core Neural Engine.
The tablet is available in Silver, Blue, Pink, and Yellow, and in 64GB and 256GB trim, with Wi-Fi model starting at $449 and Wi-Fi + Cellular models starting at $599. The new iPad is available to order starting today, with availability in stores beginning Wednesday, October 26.
Apple also launched the next generation Apple TV 4K, which is driven by the A15 Bionic chip. The new Apple TV 4K is available in two configurations: Apple TV 4K (Wi-Fi), which offers 64GB of storage; and Apple TV 4K (Wi-Fi + Ethernet), which offers support for Gigabit Ethernet for fast networking and streaming, Thread mesh networking protocol to connect even more smart home accessories, and twice the storage for apps and games (128GB).
Customers can order the new Apple TV 4K with Siri Remote today at a new starting price of $129, with availability beginning Friday, November 4.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Tech giant Apple Inc. (AAPL) on Tuesday unveiled new versions of its iPad Pros, a new redesigned iPad and an updated version of the Apple TV 4K. The new iPad Pro is available to order starting today, and in stores beginning Wednesday, October 26. Meanwhile, the new redesigned iPad is thinner, with flat sides and sports a bigger 10.9-inch 2360x1640px IPS LCD with 500 nits.
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(RTTNews) - Tech giant Apple Inc. (AAPL) on Tuesday unveiled new versions of its iPad Pros, a new redesigned iPad and an updated version of the Apple TV 4K. The new iPad Pro is available to order starting today, and in stores beginning Wednesday, October 26. The 11-inch iPad Pro starts at $799 for the Wi-Fi model and $999 for the Wi-Fi + Cellular model; the 12.9-inch iPad Pro starts at $1,099 for the Wi-Fi model, and $1,299 for the Wi-Fi + Cellular model.
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(RTTNews) - Tech giant Apple Inc. (AAPL) on Tuesday unveiled new versions of its iPad Pros, a new redesigned iPad and an updated version of the Apple TV 4K. The new updated versions of the iPad Pro 12.9" and iPad Pro 11" models are powered by Apple's latest M2 processor. The 11-inch iPad Pro starts at $799 for the Wi-Fi model and $999 for the Wi-Fi + Cellular model; the 12.9-inch iPad Pro starts at $1,099 for the Wi-Fi model, and $1,299 for the Wi-Fi + Cellular model.
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(RTTNews) - Tech giant Apple Inc. (AAPL) on Tuesday unveiled new versions of its iPad Pros, a new redesigned iPad and an updated version of the Apple TV 4K. The new updated versions of the iPad Pro 12.9" and iPad Pro 11" models are powered by Apple's latest M2 processor. The new iPad Pro is available to order starting today, and in stores beginning Wednesday, October 26.
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18850.0
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2022-10-18 00:00:00 UTC
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Apple cuts production of iPhone 14 Plus - the Information
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AAPL
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https://www.nasdaq.com/articles/apple-cuts-production-of-iphone-14-plus-the-information-0
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nan
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Adds background, details
Oct 18 (Reuters) - Apple Inc AAPL.O is cutting production of iPhone 14 Plus within weeks of starting shipments as it re-evaluates demand for the mid-range model, the Information reported on Tuesday, citing two people involved in the company's supply chain.
The Cupertino, California-based company told at least one manufacturer in China to immediately halt production of iPhone 14 Plus components, according to the report.
Apple did not immediately respond to a Reuters request for comment.
The iPhone 14 Plus, part of a announced on Sept. 7, is positioned as a cheaper alternative to its more expensive iPhone Pro models but is equipped with a large screen. The phone started being shipped to customers on Oct. 7.
(Reporting by Yuvraj Malik in Bengaluru; Editing by Vinay Dwivedi)
((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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Adds background, details Oct 18 (Reuters) - Apple Inc AAPL.O is cutting production of iPhone 14 Plus within weeks of starting shipments as it re-evaluates demand for the mid-range model, the Information reported on Tuesday, citing two people involved in the company's supply chain. The Cupertino, California-based company told at least one manufacturer in China to immediately halt production of iPhone 14 Plus components, according to the report. (Reporting by Yuvraj Malik in Bengaluru; Editing by Vinay Dwivedi) ((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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Adds background, details Oct 18 (Reuters) - Apple Inc AAPL.O is cutting production of iPhone 14 Plus within weeks of starting shipments as it re-evaluates demand for the mid-range model, the Information reported on Tuesday, citing two people involved in the company's supply chain. The Cupertino, California-based company told at least one manufacturer in China to immediately halt production of iPhone 14 Plus components, according to the report. The iPhone 14 Plus, part of a announced on Sept. 7, is positioned as a cheaper alternative to its more expensive iPhone Pro models but is equipped with a large screen.
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Adds background, details Oct 18 (Reuters) - Apple Inc AAPL.O is cutting production of iPhone 14 Plus within weeks of starting shipments as it re-evaluates demand for the mid-range model, the Information reported on Tuesday, citing two people involved in the company's supply chain. The Cupertino, California-based company told at least one manufacturer in China to immediately halt production of iPhone 14 Plus components, according to the report. (Reporting by Yuvraj Malik in Bengaluru; Editing by Vinay Dwivedi) ((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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Adds background, details Oct 18 (Reuters) - Apple Inc AAPL.O is cutting production of iPhone 14 Plus within weeks of starting shipments as it re-evaluates demand for the mid-range model, the Information reported on Tuesday, citing two people involved in the company's supply chain. The Cupertino, California-based company told at least one manufacturer in China to immediately halt production of iPhone 14 Plus components, according to the report. Apple did not immediately respond to a Reuters request for comment.
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18851.0
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2022-10-18 00:00:00 UTC
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EXPLAINER-Parler: what is the social media app Kanye West is buying?
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https://www.nasdaq.com/articles/explainer-parler%3A-what-is-the-social-media-app-kanye-west-is-buying
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By Josie Kao
Oct 18 (Reuters) - U.S. rapper Kanye West, who now goes by Ye, has agreed in principle to buy social media platform Parler, which is popular among U.S. conservatives, the app's parent company said on Monday.
Ye's offer comes after the artist was locked out of his Twitter TWTR.N and Instagram accounts this month for making posts that online users condemned as anti-Semitic.
Here is what you need to know about the social media platform.
WHAT IS PARLER?
Parler was founded in 2018 as a self-styled free speech platform. Its hands-off approach to content moderation has made it popular among U.S. conservatives who disagree with content limits on social media sites like Facebook and Twitter.
However, Parler's less stringent rules have gotten it into trouble with tech giants. After the Jan. 6, 2021, attack on the U.S. Capitol by supporters of former President Donald Trump, Apple Inc.AAPL.O and Alphabet's Google GOOGL.Otook Parler off their app stores, saying the company had not taken adequate measures to prevent posts inciting violence. Amazon.com Inc AMZN.Nalso temporarily stopped hosting the platform, effectively taking it offline.
Apple and Google have both allowed Parler back on their platforms after the app undertook content moderation measures, including features to block abusive users and remove content that could incite violence.
WHY IS KANYE WEST BUYING PARLER?
Ye's offer to buy Parler comes in response to his suspension from larger platforms. He believes Parler is a place for people like him who cannot express themselves on other sites, Ye told Bloomberg.
"In a world where conservative opinions are considered to be controversial we have to make sure we have the right to freely express ourselves," said Ye in a statement.
Ye's move comes as others includingTrump and Tesla TSLA.O CEO Elon Musk have turned to social media ownership to combat censorship on prominent social media networks. Musk is in negotiations to buy Twitter and Trump started his own network called Truth Social.
WHO OWNS PARLER?
Parler is owned by Parlement Technologies Inc, created last month as part of a larger overhaul to focus on customers who risk being pushed off the internet.
Parlement's CEO is George Farmer, an active financial supporter of Britain's Brexit Party. Farmer is also married to Candace Owens, a prominent conservative commentator and Trump ally.
WHAT IS PARLER WORTH AND WHEN WILL THE DEAL CLOSE?
Parler did not give a deal value, but the Nashville-based company has raised about $56 million to date. It expects the deal to close during the fourth quarter of 2022.
Farmer declined to comment on whether the deal includes a break-up fee if either party terminates it.
(Reporting by Josie Kao; Editing by Lisa Shumaker)
((Josie.Kao@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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After the Jan. 6, 2021, attack on the U.S. Capitol by supporters of former President Donald Trump, Apple Inc.AAPL.O and Alphabet's Google GOOGL.Otook Parler off their app stores, saying the company had not taken adequate measures to prevent posts inciting violence. By Josie Kao Oct 18 (Reuters) - U.S. rapper Kanye West, who now goes by Ye, has agreed in principle to buy social media platform Parler, which is popular among U.S. conservatives, the app's parent company said on Monday. Ye's offer comes after the artist was locked out of his Twitter TWTR.N and Instagram accounts this month for making posts that online users condemned as anti-Semitic.
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After the Jan. 6, 2021, attack on the U.S. Capitol by supporters of former President Donald Trump, Apple Inc.AAPL.O and Alphabet's Google GOOGL.Otook Parler off their app stores, saying the company had not taken adequate measures to prevent posts inciting violence. By Josie Kao Oct 18 (Reuters) - U.S. rapper Kanye West, who now goes by Ye, has agreed in principle to buy social media platform Parler, which is popular among U.S. conservatives, the app's parent company said on Monday. Apple and Google have both allowed Parler back on their platforms after the app undertook content moderation measures, including features to block abusive users and remove content that could incite violence.
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After the Jan. 6, 2021, attack on the U.S. Capitol by supporters of former President Donald Trump, Apple Inc.AAPL.O and Alphabet's Google GOOGL.Otook Parler off their app stores, saying the company had not taken adequate measures to prevent posts inciting violence. By Josie Kao Oct 18 (Reuters) - U.S. rapper Kanye West, who now goes by Ye, has agreed in principle to buy social media platform Parler, which is popular among U.S. conservatives, the app's parent company said on Monday. Apple and Google have both allowed Parler back on their platforms after the app undertook content moderation measures, including features to block abusive users and remove content that could incite violence.
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After the Jan. 6, 2021, attack on the U.S. Capitol by supporters of former President Donald Trump, Apple Inc.AAPL.O and Alphabet's Google GOOGL.Otook Parler off their app stores, saying the company had not taken adequate measures to prevent posts inciting violence. Here is what you need to know about the social media platform. Ye's offer to buy Parler comes in response to his suspension from larger platforms.
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18852.0
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2022-10-18 00:00:00 UTC
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Diving into the FAANG Stock Earnings Charts
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AAPL
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https://www.nasdaq.com/articles/diving-into-the-faang-stock-earnings-charts
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Earnings season picks up this week with over 300 companies expected to report earnings.
Included in that group are many of the big regional banks, the first of the FAANG stocks with Netflix, big growth favorite Tesla, and a bunch of other companies that could tell us a lot about the consumer and a possible recession.
But the FAANG stocks are really in the spotlight this earnings season. It’s the first time where all 5 of the stocks are going into their earnings reports down more than double digits for the year.
The bloom is off the rose.
But with expectations so low, can this earnings report be a catalyst for the shares?
What to Watch with the FAANG Stock Earnings Charts
1. Netflix NFLX
Netflix has beaten 4 quarters in a row. But Netflix has never been about a beat or an earnings miss. It’s about subscribers and those have been falling the last few quarters.
It’s not a surprise, then, that Netflix shares are down 62% year-to-date.
Earnings are expected to fall 11% this year even as the company is about to roll out an ad supported subscription option.
Netflix is now trading with a forward P/E of 23. Is Netflix a deal?
2. Meta Platforms META
Meta Platforms has missed 2 out of the last 4 quarters and has issued earnings warnings already earlier this year.
Meta Platforms is among the worst performers of the FAANG stocks, with shares down 62% year-to-date. It shouldn’t be a surprise as earnings are expected to fall 30% this year.
Meta Platforms is now cheap, with a forward P/E of just 13.3.
Is Meta Platforms a value stock or a trap?
3. Apple AAPL
Apple is still perfect. It hasn’t missed on earnings in 5 years which is impressive given the coronavirus pandemic in 2020. Many companies lost their perfect record during that time.
Apple was the place to hide out in for most of this year but shares have now weakened again and are down 22% year-to-date.
But Apple still isn’t cheap, with a forward P/E of 21.3.
Does Apple need to fall further before the market ultimately finds a bottom?
4. Amazon AMZN
Amazon has missed big in the last 2 quarters. It also has frozen new corporate hiring, which is another sign that the company is struggling in this higher inflationary environment.
Shares are down 35% year-to-date but they’re not cheap on a P/E basis. Amazon has a forward P/E of 570 because earnings are expected to fall off a cliff. The Zacks Consensus Estimate is calling for just $0.19 for 2022 compared with $3.24 the company made last year.
Does Amazon have more room to fall?
5. Alphabet GOOGL
Alphabet has missed two quarters in a row after beating 7 quarters prior to that. In the past, however, Alphabet hasn’t really had a great earnings surprise track record so the misses are not surprising.
Alphabet earnings are expected to fall 7% in 2022 and shares have lost 33% year-to-date.
Is it cheap? Alphabet now trades with a forward P/E of 18.5.
But Alphabet is the leader in online advertising and that usually gets hit first in a recession.
Should Alphabet be on your short list?
[In full disclosure, Tracey owns shares of AMZN and GOOGL in her own personal portfolio.]
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
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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Apple AAPL Apple is still perfect. Apple Inc. (AAPL): Free Stock Analysis Report Earnings are expected to fall 11% this year even as the company is about to roll out an ad supported subscription option.
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Apple Inc. (AAPL): Free Stock Analysis Report Apple AAPL Apple is still perfect. Netflix, Inc. (NFLX): Free Stock Analysis Report
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Apple AAPL Apple is still perfect. Apple Inc. (AAPL): Free Stock Analysis Report Meta Platforms META Meta Platforms has missed 2 out of the last 4 quarters and has issued earnings warnings already earlier this year.
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Apple AAPL Apple is still perfect. Apple Inc. (AAPL): Free Stock Analysis Report Alphabet earnings are expected to fall 7% in 2022 and shares have lost 33% year-to-date.
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18853.0
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2022-10-18 00:00:00 UTC
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Apple cuts production of iPhone 14 Plus - the Information
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AAPL
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https://www.nasdaq.com/articles/apple-cuts-production-of-iphone-14-plus-the-information
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nan
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nan
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Oct 18 (Reuters) - Apple Inc AAPL.O is cutting production of iPhone 14 Plus, the Information reported on Tuesday, citing two people involved in the company’s supply chain.
Apple did not immediately respond to a Reuters request for comment.
(Reporting by Yuvraj Malik in Bengaluru; Editing by Vinay Dwivedi)
((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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Oct 18 (Reuters) - Apple Inc AAPL.O is cutting production of iPhone 14 Plus, the Information reported on Tuesday, citing two people involved in the company’s supply chain. Apple did not immediately respond to a Reuters request for comment. (Reporting by Yuvraj Malik in Bengaluru; Editing by Vinay Dwivedi) ((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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Oct 18 (Reuters) - Apple Inc AAPL.O is cutting production of iPhone 14 Plus, the Information reported on Tuesday, citing two people involved in the company’s supply chain. Apple did not immediately respond to a Reuters request for comment. (Reporting by Yuvraj Malik in Bengaluru; Editing by Vinay Dwivedi) ((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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Oct 18 (Reuters) - Apple Inc AAPL.O is cutting production of iPhone 14 Plus, the Information reported on Tuesday, citing two people involved in the company’s supply chain. Apple did not immediately respond to a Reuters request for comment. (Reporting by Yuvraj Malik in Bengaluru; Editing by Vinay Dwivedi) ((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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Oct 18 (Reuters) - Apple Inc AAPL.O is cutting production of iPhone 14 Plus, the Information reported on Tuesday, citing two people involved in the company’s supply chain. Apple did not immediately respond to a Reuters request for comment. (Reporting by Yuvraj Malik in Bengaluru; Editing by Vinay Dwivedi) ((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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2022-10-18 00:00:00 UTC
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Will Top-Line Contraction Dent AT&T's (T) Earnings in Q3?
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https://www.nasdaq.com/articles/will-top-line-contraction-dent-atts-t-earnings-in-q3
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AT&T Inc. T is scheduled to report third-quarter 2022 results, before the opening bell, on Oct 20. In the last reported quarter, adjusted earnings beat the Zacks Consensus Estimate by 5 cents. In the third quarter, the company is likely to have recorded lower revenues year over year despite improving market conditions due to continued infrastructure investments for 5G rollout across the country, spin-off and divestment of businesses.
Factors at Play
In the third quarter, AT&T continued to expand its 5G network infrastructure and launched 5G+ service in select areas. The company’s 5G network currently covers more than 281 million users across the country, and its 5G+ network is available in parts of 45 cities. AT&T has deployed the C-Band spectrum in a phased manner to further expand its 5G+ coverage. It is benefiting from lower levels of wireless churn due to seamless access to 5G technology on its unlimited wireless plans for consumers and businesses and the growing adoption of Unlimited Elite wireless plans. Such initiatives are likely to get reflected in the upcoming results.
During the to-be-reported quarter, AT&T augmented its critical communications network by expanding 5G on FirstNet, boosting dedicated in-building connectivity and enhancing 9-1-1 resiliency across Tennessee with FirstNet as a wireless backup. This is expected to boost connectivity for public safety on FirstNet with high-quality Band 14 spectrum and AT&T commercial LTE network. This is likely to have translated into higher revenues for the company.
During the third quarter, AT&T continued with its aggressive fiber build-out initiatives as it aims to connect 3.5-4 million additional locations with fiber each year to significantly increase its existing fiber footprint to more than 30 million locations by the end of 2025. The company expects that 75% of its network footprint will be either served by fiber or 5G, which will likely halve its legacy copper services exposure. These simplification initiatives are likely to have driven additional cost savings while creating new revenue opportunities.
However, adverse foreign currency translations and high operating costs for 5G deployments and fiber expansion are likely to have led to soft margins in the quarter. The infrastructure investments are expected to have weighed on the margins. Moreover, the divestment of Xandr and the WarnerMedia spin-off are likely to have resulted in top-line contraction on a year-over-year basis. However, this will likely enable the carrier to focus on its core businesses.
The Zacks Consensus Estimate for total revenues of the company stands at $29,816 million, indicating a decline from $39,922 million reported in the prior-year quarter. The consensus mark for earnings is currently pegged at 61 cents per share. It had reported earnings of 87 cents per share in the year-earlier quarter.
Earnings Whispers
Our proven model predicts an earnings beat for AT&T for the third quarter. 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 +2.70%, with the former pegged at 65 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.
AT&T Inc. Price and EPS Surprise
AT&T Inc. price-eps-surprise | AT&T Inc. Quote
Zacks Rank: AT&T 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 too have the right combination of elements to post an earnings beat this season:
Verizon Communications Inc. VZ is set to release quarterly numbers on Oct 21. It has an Earnings ESP of +0.26% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for T-Mobile US, Inc. TMUS is +8.18% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Oct 27.
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.
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
AT&T Inc. (T): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Verizon Communications Inc. (VZ): Free Stock Analysis Report
TMobile US, Inc. (TMUS): 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 However, adverse foreign currency translations and high operating costs for 5G deployments and fiber expansion are likely to have led to soft margins in the quarter.
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Apple Inc. (AAPL): Free Stock Analysis Report The Earnings ESP for Apple Inc. AAPL is +0.86% and it carries a Zacks Rank of 3. During the third quarter, AT&T continued with its aggressive fiber build-out initiatives as it aims to connect 3.5-4 million additional locations with fiber each year to significantly increase its existing fiber footprint to more than 30 million locations by the end of 2025.
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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 In the last reported quarter, adjusted earnings beat the Zacks Consensus Estimate by 5 cents.
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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 In the last reported quarter, adjusted earnings beat the Zacks Consensus Estimate by 5 cents.
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2022-10-18 00:00:00 UTC
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US STOCKS-Wall St set to jump at open as Goldman, J&J results lift earnings mood
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-jump-at-open-as-goldman-jj-results-lift-earnings-mood
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By Ankika Biswas and Shreyashi Sanyal
Oct 18 (Reuters) - U.S. stock index futures jumped on Tuesday as strong earnings from Goldman Sachs and Johnson & Johnson lifted hopes that upbeat corporate reports could soothe market worries of a potential recession due to rising inflation and interest rates.
Goldman Sachs Group Inc GS.N gained 2.7% in premarket trading after reporting a better-than-expected quarterly profit as rising borrowing costs boosted net interest income, cushioning the blow from a slowdown in investment banking.
With this, Goldman Sachs wraps up earnings reports from big U.S. banks this quarter on a largely positive note. The investment bank also said it was reorganizing its business into three units.
Johnson & Johnson JNJ.N rose 2.0% after the healthcare conglomerate beat Wall Street expectations for third-quarter sales and profit, helped by strong demand for its cancer drug.
"The earnings season offers investors the opportunity to focus more on the actual earnings power of corporate America, and less on the machinations of the backward-looking economic data stream," said Art Hogan, chief market strategist at B. Riley Wealth.
"A better-than-feared earnings season may well be the catalyst the market needs to see a break in the steady grind lower."
All three of the major U.S. benchmark stock indexes have marked losses of more than 12% over the last two months as investors worry that the U.S. Federal Reserve's war on inflation may hobble the economy.
Analysts now expect profit for S&P 500 companies to have risen just 3% from a year ago, much lower than an 11.1% increase expected at the start of July, according to Refinitiv data.
Major mega-cap technology and other growth names like Apple Inc AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O and Nvidia Corp NVDA.O were up between 1.9% and 3.2%, keeping with declines in the benchmark 10-year Treasury note US10YT=RR. US/
Microsoft Corp MSFT.O gained 2.3% after a report that it was laying off under 1,000 employees this week, becoming the latest U.S. technology company to cut jobs or slow hiring amid a global economic slowdown.
The reversal of parts of a controversial UK fiscal plan that had roiled bond markets also aided sentiment.
Meanwhile, a report said ratings agency Fitch has slashed U.S. growth forecasts for this year and next and was set to warn that the Fed's interest rate hikes and inflation will drive the economy into a 1990-style recession.
Toymaker Hasbro Inc HAS.Ofell 1.3% upon posting a 28% fall in quarterly profit, highlighting that inflation-hit consumers were further discouraged by price hikes.
(Reporting by Ankika Biswas and Shreyashi Sanyal in Bengaluru; Additional reporting by Susan Mathew and Bansari Mayur Kamdar; Editing by Anil D'Silva, Arun Koyyur and Maju Samuel)
((Ankika.Biswas@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Major mega-cap technology and other growth names like Apple Inc AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O and Nvidia Corp NVDA.O were up between 1.9% and 3.2%, keeping with declines in the benchmark 10-year Treasury note US10YT=RR. Goldman Sachs Group Inc GS.N gained 2.7% in premarket trading after reporting a better-than-expected quarterly profit as rising borrowing costs boosted net interest income, cushioning the blow from a slowdown in investment banking. All three of the major U.S. benchmark stock indexes have marked losses of more than 12% over the last two months as investors worry that the U.S. Federal Reserve's war on inflation may hobble the economy.
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Major mega-cap technology and other growth names like Apple Inc AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O and Nvidia Corp NVDA.O were up between 1.9% and 3.2%, keeping with declines in the benchmark 10-year Treasury note US10YT=RR. By Ankika Biswas and Shreyashi Sanyal Oct 18 (Reuters) - U.S. stock index futures jumped on Tuesday as strong earnings from Goldman Sachs and Johnson & Johnson lifted hopes that upbeat corporate reports could soothe market worries of a potential recession due to rising inflation and interest rates. With this, Goldman Sachs wraps up earnings reports from big U.S. banks this quarter on a largely positive note.
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Major mega-cap technology and other growth names like Apple Inc AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O and Nvidia Corp NVDA.O were up between 1.9% and 3.2%, keeping with declines in the benchmark 10-year Treasury note US10YT=RR. By Ankika Biswas and Shreyashi Sanyal Oct 18 (Reuters) - U.S. stock index futures jumped on Tuesday as strong earnings from Goldman Sachs and Johnson & Johnson lifted hopes that upbeat corporate reports could soothe market worries of a potential recession due to rising inflation and interest rates. Goldman Sachs Group Inc GS.N gained 2.7% in premarket trading after reporting a better-than-expected quarterly profit as rising borrowing costs boosted net interest income, cushioning the blow from a slowdown in investment banking.
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Major mega-cap technology and other growth names like Apple Inc AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O and Nvidia Corp NVDA.O were up between 1.9% and 3.2%, keeping with declines in the benchmark 10-year Treasury note US10YT=RR. By Ankika Biswas and Shreyashi Sanyal Oct 18 (Reuters) - U.S. stock index futures jumped on Tuesday as strong earnings from Goldman Sachs and Johnson & Johnson lifted hopes that upbeat corporate reports could soothe market worries of a potential recession due to rising inflation and interest rates. Goldman Sachs Group Inc GS.N gained 2.7% in premarket trading after reporting a better-than-expected quarterly profit as rising borrowing costs boosted net interest income, cushioning the blow from a slowdown in investment banking.
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18856.0
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2022-10-18 00:00:00 UTC
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Why Microsoft Is Down 29% This Year
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AAPL
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https://www.nasdaq.com/articles/why-microsoft-is-down-29-this-year
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Microsoft (NASDAQ: MSFT) has grown exponentially in its 47 years of business. Despite a recent market downturn, the company's stock has grown over 200% in the last five years, thanks to the potency of brands such as Xbox, Windows, Azure, and Office. These brands' success and market share will likely help the company continue growing for years to come.
However, Microsoft's stock has fallen 29% since January, along with a long list of other tech stocks. Investors who haven't been able to stay up to date on recent market trends might be perplexed as to why a dominant company like Microsoft has suffered such steep declines in 2022. Let's find out.
A beaten-down market
Microsoft has been among the many tech stocks hit by rising inflation and slowing consumer demand in 2022. Even though the company has suffered a 29% decline over the year in its share price, other companies have suffered more. For instance, PC component leaders AMD (NASDAQ: AMD) and Nvidia have seen their stocks fall about 60% in the same period.
While consumer demand has fallen across various industries as the cost of living continues to rise, the PC market has been one of the hardest hit. According to Gartner, PC shipments fell 19.5% in the third quarter of 2022, with the overall market declining by 17.3%.
Most recently, on Oct. 7, Microsoft's stock dipped 4.5% after AMD pre-announced plummeting PC sales for its September quarter. AMD projected revenue of $5.6 billion vs. analysts' expectations of $6.7 billion, as its client chip sales were down 53% quarter over quarter. The sharp decline for AMD led Microsoft investors to doubt the Windows company's PC-related business.
Microsoft's PC business is reported under its more personal computing segment, which made up 30% of revenue in the company's fiscal year 2022, which ended June 30. While Microsoft's prominence in the PC market has triggered investor concern in 2022, its diversified revenue suggests the company will be better off than other companies in weathering market declines.
Is Microsoft stock a buy?
In fiscal year 2022, Microsoft's best-performing segments were its productivity and business processes segment (which include Office and LinkedIn) and intelligent cloud (revenue from Azure). The former made up 31.9% of Microsoft's revenue in 2022 and saw a rise of 18% year over year, while the latter was responsible for 37.9% of revenue and rose 25%.
Even the company's more personal computing segment isn't a total black cloud on the overall business. In addition to Windows and PC revenue, it includes earnings from Microsoft's Xbox consoles and services, which grew 16% throughout the year. The company may be most known for its influential role in the PC market, but its business has expanded to include far more lucrative markets over the years.
The cloud market alone was worth $206.5 billion as of Q2 2022, with Microsoft's Azure having the second biggest market share at 21%. According to Grand View Research, the market will grow at a rate of 15.7% from 2022 to 2030. Moreover, Microsoft's segment growth of 25% since 2021 proves the lucrative prospects of its operations in this industry.
Additionally, Microsoft's trailing free cash flow as of June 30 stood at $65.2 billion, matching Alphabet's result within a rounding error but trailing Apple's $107.6 billion. The Windows company will likely see some form of decline in the next year as fears of a recession grow. However, its varied businesses and free cash flow suggest the company is strong enough to overcome it.
Microsoft's decrease of 29% in its share price in 2022 makes it an absolute bargain, considering its long-term prospects. With the company's substantial market share in promising industries and the funds to carry it through sustained market downturns, an investment in Microsoft is a no-brainer.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet (A shares), Alphabet (C shares), Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despite a recent market downturn, the company's stock has grown over 200% in the last five years, thanks to the potency of brands such as Xbox, Windows, Azure, and Office. Investors who haven't been able to stay up to date on recent market trends might be perplexed as to why a dominant company like Microsoft has suffered such steep declines in 2022. Microsoft's PC business is reported under its more personal computing segment, which made up 30% of revenue in the company's fiscal year 2022, which ended June 30.
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Additionally, Microsoft's trailing free cash flow as of June 30 stood at $65.2 billion, matching Alphabet's result within a rounding error but trailing Apple's $107.6 billion. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet (A shares), Alphabet (C shares), Apple, Microsoft, and Nvidia. 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 Microsoft's prominence in the PC market has triggered investor concern in 2022, its diversified revenue suggests the company will be better off than other companies in weathering market declines. The company may be most known for its influential role in the PC market, but its business has expanded to include far more lucrative markets over the years. With the company's substantial market share in promising industries and the funds to carry it through sustained market downturns, an investment in Microsoft is a no-brainer.
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While Microsoft's prominence in the PC market has triggered investor concern in 2022, its diversified revenue suggests the company will be better off than other companies in weathering market declines. The company may be most known for its influential role in the PC market, but its business has expanded to include far more lucrative markets over the years. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet (A shares), Alphabet (C shares), Apple, Microsoft, and Nvidia.
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18857.0
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2022-10-18 00:00:00 UTC
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Pre-Market Most Active for Oct 18, 2022 : TQQQ, SQQQ, AKUS, TSLA, QQQ, FUBO, CCL, NIO, AAPL, XPEV, HLN, APE
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AAPL
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https://www.nasdaq.com/articles/pre-market-most-active-for-oct-18-2022-%3A-tqqq-sqqq-akus-tsla-qqq-fubo-ccl-nio-aapl-xpev
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The NASDAQ 100 Pre-Market Indicator is up 250.63 to 11,313.16. The total Pre-Market volume is currently 54,182,581 shares traded.
The following are the most active stocks for the pre-market session:
ProShares UltraPro QQQ (TQQQ) is +1.31 at $20.61, with 14,286,436 shares traded. This represents a 26.29% increase from its 52 Week Low.
ProShares UltraPro Short QQQ (SQQQ) is -3.93 at $54.07, with 5,749,464 shares traded. This represents a 92.08% increase from its 52 Week Low.
Akouos, Inc. (AKUS) is +6.08 at $13.09, with 2,836,794 shares traded. As reported in the last short interest update the days to cover for AKUS is 15.256637; this calculation is based on the average trading volume of the stock.
Tesla, Inc. (TSLA) is +8.64 at $227.99, with 1,779,501 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 $1.1. TSLA is scheduled to provide an earnings report on 10/19/2022, for the fiscal quarter ending Sep2022. The consensus earnings per share forecast is 0.87 per share, which represents a 48 percent increase over the EPS one Year Ago
Invesco QQQ Trust, Series 1 (QQQ) is +5.99 at $275.34, with 1,723,014 shares traded. This represents a 8.29% increase from its 52 Week Low.
fuboTV Inc. (FUBO) is +0.59 at $4.64, with 1,124,675 shares traded. FUBO's current last sale is 77.33% of the target price of $6.
Carnival Corporation (CCL) is +0.35 at $7.62, with 930,291 shares traded. CCL's current last sale is 82.38% of the target price of $9.25.
NIO Inc. (NIO) is +0.59 at $12.80, with 887,386 shares traded. As reported by Zacks, the current mean recommendation for NIO is in the "buy range".
Apple Inc. (AAPL) is +2.5 at $144.91, with 722,181 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
XPeng Inc. (XPEV) is +0.39 at $9.01, with 563,049 shares traded. As reported by Zacks, the current mean recommendation for XPEV is in the "buy range".
Haleon plc (HLN) is unchanged at $6.06, with 500,917 shares traded.
AMC Entertainment Holdings, Inc. (APE) is +0.19 at $2.09, with 483,989 shares traded.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is +2.5 at $144.91, with 722,181 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported in the last short interest update the days to cover for AKUS is 15.256637; this calculation is based on the average trading volume of the stock.
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Apple Inc. (AAPL) is +2.5 at $144.91, with 722,181 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 54,182,581 shares traded.
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Apple Inc. (AAPL) is +2.5 at $144.91, with 722,181 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 54,182,581 shares traded.
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Apple Inc. (AAPL) is +2.5 at $144.91, with 722,181 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported in the last short interest update the days to cover for AKUS is 15.256637; this calculation is based on the average trading volume of the stock.
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18858.0
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2022-10-18 00:00:00 UTC
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The Zacks Analyst Blog Highlights Apple, Abbott Laboratories, International Business Machines, Estee Lauder and Progressive
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AAPL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-apple-abbott-laboratories-international-business
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nan
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For Immediate Release
Chicago, IL – October 18, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple Inc. AAPL, Abbott Laboratories ABT, International Business Machines Corp. IBM, The Estée Lauder Companies Inc. EL, and The Progressive Corporation PGR.
Here are highlights from Monday’s Analyst Blog:
Q3 Earnings Scorecard and Analyst Reports for Apple, Abbott, IBM and Others
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time update on the ongoing Q3 earnings season and new research reports on 16 major stocks, including Apple Inc., Abbott Laboratories and International Business Machines Corp. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Q3 Earnings Season Scorecard
Including this morning's results, we now havre Q3 results from 38 S&P 500 members that combined account for 10.7% of the index's total market capitalization. Total earnings for these 38 index members are down -4.7% from the same period last year on +9.4% higher revenues, with 76.3% beating EPS estimates and 57.9% beating revenue estimates.
For the Finance sector which has an outisize weightage in the results at this stage, we now have results from 32.3% of the sector's market capitalization in the S&P 500 index. Total Q3 earnings for these banks and brokers are down -12.3% from the same period last year on +5.2% higher revenues, with 91.7% beating EPS estimates and 66.7% beating revenue estimates. The proportion of these banks that have been beaten both EPS and revenue estimates is 66.7%.
This is a better showing from these Finance sector companeis relative to what we have seen from the group in other recent periods. The 'blended' 66.7% beats % for this group of Finance sector companies compares to a low of 33.7%, high of 83.3% and average of 58.3% over the preceding 20 quarters (5 years).
In other words, the Finance sector has given a better-than-expected start to this earnigns season.
Today's Featured Research Reports
Apple shares have declined -3.3% over the past year against the S&P 500 index's -21.2% and decline and the -37.3% pullback in the Zacks Tech sector.
While there are undoubtedly some challenges for Apple on the near-term horizon as a result of the evolving uncertain macro backdrop, it should continue to benefit from continued momentum in the Services and robust performance from iPhone, Mac, Wearables and an expanding App Store ecosystem.
The latest iPhone 14 models are witnessing high pre-order which is expected to drive top-line growth. We expect Apple’s fiscal 2022 revenues to increase 7.3% year over year with Services growing 14.1%..
On the flip side, Apple has a growing exposure to the uncertain Chinese market. The company’s services revenue growth is expected to be lower than the June quarter due to challenging macroeconomic conditions and unfavorable forex.
Also, Apple did not provide revenue guidance for the fourth quarter of fiscal 2022. Apple expects year-over-year revenue growth to accelerate during the fiscal fourth quarter on a sequential basis, despite approximately 600 basis points of unfavorable year-over-year impact from forex.
(You can read the full research report on Apple here >>>)
Abbott Laboratories shares have declined -11.7% over the past year against the Zacks Medical - Products industry’s decline of -49.2%. The company’s total worldwide Nutrition and Pediatric Nutrition sales continued to be hampered due to the negative repercussions of a voluntary recall of certain powder formulae produced at one of Abbott's U.S. plants. Decline in organic sales in the Neuromodulation and Vascular businesses in the second quarter also raise apprehension.
However, Abbott exited the second quarter of 2022 with better-than-expected earnings and revenues. The top line benefitted from robust organic sales growth across core operating segments, barring Nutrition.
The Diabetes Care business continued to benefit from the growing sales of sensor-based continuous glucose monitoring system, FreeStyle Libre. We are particularly upbeat about the receipt of FDA clearance for the company’s FreeStyle Libre 3 system in May 2022.
(You can read the full research report on Abbott Laboratories here >>>)
IBM shares have declined -13.7% over the past year against the Zacks Computer - Integrated Systems industry’s decline of -21.0%. The company is facing stiff competition in the cloud computing market from the likes of Amazon Web Services and Microsoft Azure. Higher debt levels amid extensive restructuring activities pose a concern for the company.
High integration risk from continuous acquisition spree is another headwind. Muted cash flow outlook for 2022 due to the impact of dollar strength and winding down of business operations in Russia remain another downside for IBM. However, synergies from the Red Hat buyout are bolstering its competitive position in the hybrid cloud market.
IBM’s growth is expected to be driven primarily by analytics, cloud computing, and security in the long haul. A combination of a better business mix, improving operating leverage through productivity gains and increased investment in growth opportunities will likely drive profitability.
(You can read the full research report on IBM here >>>)
Other noteworthy reports we are featuring today include The Estée Lauder Companies Inc., and The Progressive Corporation.
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Media Contact
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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/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
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Abbott Laboratories (ABT): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
International Business Machines Corporation (IBM): Free Stock Analysis Report
The Estee Lauder Companies Inc. (EL): Free Stock Analysis Report
The Progressive Corporation (PGR): 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 Inc. AAPL, Abbott Laboratories ABT, International Business Machines Corp. IBM, The Estée Lauder Companies Inc. EL, and The Progressive Corporation PGR. Apple Inc. (AAPL): Free Stock Analysis Report Muted cash flow outlook for 2022 due to the impact of dollar strength and winding down of business operations in Russia remain another downside for IBM.
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Stocks recently featured in the blog include: Apple Inc. AAPL, Abbott Laboratories ABT, International Business Machines Corp. IBM, The Estée Lauder Companies Inc. EL, and The Progressive Corporation PGR. Apple Inc. (AAPL): Free Stock Analysis Report (You can read the full research report on Apple here >>>) Abbott Laboratories shares have declined -11.7% over the past year against the Zacks Medical - Products industry’s decline of -49.2%.
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Stocks recently featured in the blog include: Apple Inc. AAPL, Abbott Laboratories ABT, International Business Machines Corp. IBM, The Estée Lauder Companies Inc. EL, and The Progressive Corporation PGR. Apple Inc. (AAPL): Free Stock Analysis Report Here are highlights from Monday’s Analyst Blog: Q3 Earnings Scorecard and Analyst Reports for Apple, Abbott, IBM and Others The Zacks Research Daily presents the best research output of our analyst team.
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Stocks recently featured in the blog include: Apple Inc. AAPL, Abbott Laboratories ABT, International Business Machines Corp. IBM, The Estée Lauder Companies Inc. EL, and The Progressive Corporation PGR. Apple Inc. (AAPL): Free Stock Analysis Report The Diabetes Care business continued to benefit from the growing sales of sensor-based continuous glucose monitoring system, FreeStyle Libre.
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18859.0
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2022-10-18 00:00:00 UTC
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US STOCKS-Futures firmly up as J&J results boost earnings optimism
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-firmly-up-as-jj-results-boost-earnings-optimism
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nan
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By Ankika Biswas and Susan Mathew
Oct 18 (Reuters) - U.S. stock index futures jumped on Tuesday, with strong quarterly sales from Johnson & Johnson lifting hopes that upbeat corporate reports could soothe markets worries of a potential recession due to rising inflation and interest rates.
Johnson & Johnson JNJ.N rose 1.5% in premarket trading after the healthcare conglomerate beat Wall Street expectations for third-quarter sales, helped by strong demand for its cancer drug Darzalex and Crohn's disease drug Stelara.
Goldman Sachs Group Inc GS.N gained 0.9%, while Netflix NFLX.O added 1.6% ahead of earnings later in the day.
Big U.S. banks kicked off the quarterly reporting season on a largely positive note, with Bank of America's BAC.N results leading a rally in stocks on Monday.
The reversal of parts of a controversial UK fiscal plan that had roiled bond markets also aided sentiment.
"Initial Q3 company reports have been positive, and you've had some stabilization in the United Kingdom with its government. That and generally oversold conditions have been the real driver of equities in the last few days," said Patrick Armstrong, chief investment officer at Plurimi Wealth.
Analysts now expect profit for S&P 500 companies to have risen just 3% from a year ago, much lower than an 11.1% increase expected at the start of July, according to Refinitiv data.
Meanwhile, a report said ratings agency Fitch has slashed U.S. growth forecasts for this year and next and was set to warn that the Fed's interest rate hikes and inflation will drive the economy into a 1990-style recession.
All three of the major U.S. benchmark stock indexes have marked losses of more than 12% over the last two months as investors worry that the U.S. Federal Reserve's war on inflation may hobble the economy.
At 7:00 a.m. ET, Dow e-minis 1YMcv1 were up 340 points, or 1.12%, S&P 500 e-minis EScv1 were up 50.25 points, or 1.36%, and Nasdaq 100 e-minis NQcv1 were up 179.75 points, or 1.62%.
Microsoft Corp MSFT.O gained 1.6% after a report that it was laying off under 1,000 employees this week, becoming the latest U.S. technology company to cut jobs or slow hiring amid a global economic slowdown.
Major mega-cap technology and other growth names like Apple Inc AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O and Nvidia Corp NVDA.O were up between 1.4% and 2.1%.
Industrial production for September due before market open, which is seen rising 0.1% compared to a 0.3% fall in the prior month, will also be on the watch-list.
Investors will also keenly listen to comments from Federal Reserve's Atlanta President Raphael Bostic and Minneapolis President Neel Kashkari for any dissent on the rapid rate hike narrative.
(Reporting by Ankika Biswas and Susan Mathew in Bengaluru; Editing by Anil D'Silva and Arun Koyyur)
((Ankika.Biswas@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Major mega-cap technology and other growth names like Apple Inc AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O and Nvidia Corp NVDA.O were up between 1.4% and 2.1%. That and generally oversold conditions have been the real driver of equities in the last few days," said Patrick Armstrong, chief investment officer at Plurimi Wealth. All three of the major U.S. benchmark stock indexes have marked losses of more than 12% over the last two months as investors worry that the U.S. Federal Reserve's war on inflation may hobble the economy.
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Major mega-cap technology and other growth names like Apple Inc AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O and Nvidia Corp NVDA.O were up between 1.4% and 2.1%. By Ankika Biswas and Susan Mathew Oct 18 (Reuters) - U.S. stock index futures jumped on Tuesday, with strong quarterly sales from Johnson & Johnson lifting hopes that upbeat corporate reports could soothe markets worries of a potential recession due to rising inflation and interest rates. All three of the major U.S. benchmark stock indexes have marked losses of more than 12% over the last two months as investors worry that the U.S. Federal Reserve's war on inflation may hobble the economy.
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Major mega-cap technology and other growth names like Apple Inc AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O and Nvidia Corp NVDA.O were up between 1.4% and 2.1%. By Ankika Biswas and Susan Mathew Oct 18 (Reuters) - U.S. stock index futures jumped on Tuesday, with strong quarterly sales from Johnson & Johnson lifting hopes that upbeat corporate reports could soothe markets worries of a potential recession due to rising inflation and interest rates. Meanwhile, a report said ratings agency Fitch has slashed U.S. growth forecasts for this year and next and was set to warn that the Fed's interest rate hikes and inflation will drive the economy into a 1990-style recession.
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Major mega-cap technology and other growth names like Apple Inc AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O and Nvidia Corp NVDA.O were up between 1.4% and 2.1%. By Ankika Biswas and Susan Mathew Oct 18 (Reuters) - U.S. stock index futures jumped on Tuesday, with strong quarterly sales from Johnson & Johnson lifting hopes that upbeat corporate reports could soothe markets worries of a potential recession due to rising inflation and interest rates. Goldman Sachs Group Inc GS.N gained 0.9%, while Netflix NFLX.O added 1.6% ahead of earnings later in the day.
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18860.0
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2022-10-18 00:00:00 UTC
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US STOCKS-Futures extend rally on earnings optimism
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-extend-rally-on-earnings-optimism
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nan
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nan
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By Ankika Biswas and Susan Mathew
Oct 18 (Reuters) - U.S. stock index futures were firmly in positive territory on Tuesday on rising hopes that upbeat corporate earnings would help eclipse the current economic gloom, with a fiscal policy reversal in Britain also boosting risk appetite.
Big U.S. banks have kicked off the quarterly earnings season on a largely positive note, with Bank of America's BAC.N results underpinning a rally in stocks on Monday.
The reversal of parts of a controversial UK fiscal plan that had roiled bond markets also aided sentiment.
"Initial Q3 company reports have been positive, and you've had some stabilization in the United Kingdom with its government so I think that and generally oversold conditions have been the real driver of equities last few days," said Patrick Armstrong, chief investment officer at Plurimi Wealth.
All three of the major U.S. benchmark stock indexes have marked losses of more than 12% over the last two months as investors worry that the U.S. Federal Reserve's war on inflation may hobble the economy.
Goldman Sachs Group Inc GS.N, Johnson & Johnson JNJ.N and Netflix NFLX.O are among the big-ticket earnings scheduled later in the day, with their shares up between 0.5% and 1.2% in premarket trading..N
"Earnings for Q3 generally will be strong. Companies are well trained to guide analysts to earnings estimates that they could meet and beat," Armstrong said.
At 05:05 a.m. ET, Dow e-minis 1YMcv1 were up 269 points, or 0.89%, S&P 500 e-minis EScv1 were up 40.25 points, or 1.09%, and Nasdaq 100 e-minis NQcv1 were up 142.5 points, or 1.28%.
Microsoft Corp MSFT.O gained 1.3% after a report that it was laying off under 1,000 employees this week, becoming the latest U.S. technology company to cut jobs or slow hiring amid a global economic slowdown.
Major mega-cap technology and other growth names like Apple Inc AAPL.O, Meta Platforms MET.O, Amazon.com AMZN.O and Nvidia Corp NVDA.O were up between 1.2% and 1.7%.
Analysts now expect profit for S&P 500 companies to have risen just 3% from a year ago, much lower than an 11.1% increase expected at the start of July, according to Refinitiv IBES data.
Industrial production for September due before market open, which is seen rising 0.1% compared to a 0.3% fall in the prior month, will also be on the watch-list.
(Reporting by Ankika Biswas and Susan Mathew in Bengaluru; Editing by Anil D'Silva)
((Ankika.Biswas@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Major mega-cap technology and other growth names like Apple Inc AAPL.O, Meta Platforms MET.O, Amazon.com AMZN.O and Nvidia Corp NVDA.O were up between 1.2% and 1.7%. By Ankika Biswas and Susan Mathew Oct 18 (Reuters) - U.S. stock index futures were firmly in positive territory on Tuesday on rising hopes that upbeat corporate earnings would help eclipse the current economic gloom, with a fiscal policy reversal in Britain also boosting risk appetite. "Initial Q3 company reports have been positive, and you've had some stabilization in the United Kingdom with its government so I think that and generally oversold conditions have been the real driver of equities last few days," said Patrick Armstrong, chief investment officer at Plurimi Wealth.
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Major mega-cap technology and other growth names like Apple Inc AAPL.O, Meta Platforms MET.O, Amazon.com AMZN.O and Nvidia Corp NVDA.O were up between 1.2% and 1.7%. By Ankika Biswas and Susan Mathew Oct 18 (Reuters) - U.S. stock index futures were firmly in positive territory on Tuesday on rising hopes that upbeat corporate earnings would help eclipse the current economic gloom, with a fiscal policy reversal in Britain also boosting risk appetite. ET, Dow e-minis 1YMcv1 were up 269 points, or 0.89%, S&P 500 e-minis EScv1 were up 40.25 points, or 1.09%, and Nasdaq 100 e-minis NQcv1 were up 142.5 points, or 1.28%.
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Major mega-cap technology and other growth names like Apple Inc AAPL.O, Meta Platforms MET.O, Amazon.com AMZN.O and Nvidia Corp NVDA.O were up between 1.2% and 1.7%. By Ankika Biswas and Susan Mathew Oct 18 (Reuters) - U.S. stock index futures were firmly in positive territory on Tuesday on rising hopes that upbeat corporate earnings would help eclipse the current economic gloom, with a fiscal policy reversal in Britain also boosting risk appetite. "Initial Q3 company reports have been positive, and you've had some stabilization in the United Kingdom with its government so I think that and generally oversold conditions have been the real driver of equities last few days," said Patrick Armstrong, chief investment officer at Plurimi Wealth.
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Major mega-cap technology and other growth names like Apple Inc AAPL.O, Meta Platforms MET.O, Amazon.com AMZN.O and Nvidia Corp NVDA.O were up between 1.2% and 1.7%. By Ankika Biswas and Susan Mathew Oct 18 (Reuters) - U.S. stock index futures were firmly in positive territory on Tuesday on rising hopes that upbeat corporate earnings would help eclipse the current economic gloom, with a fiscal policy reversal in Britain also boosting risk appetite. Big U.S. banks have kicked off the quarterly earnings season on a largely positive note, with Bank of America's BAC.N results underpinning a rally in stocks on Monday.
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18861.0
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2022-10-18 00:00:00 UTC
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Apple Is Using Streaming to Unlock Another Growing Business
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AAPL
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https://www.nasdaq.com/articles/apple-is-using-streaming-to-unlock-another-growing-business
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When Apple (NASDAQ: AAPL) launched Apple TV+ nearly three years ago, it offered a year of the streaming service as a free add-on for any device purchasers. Still priced at $4.99 per month, profits don't appear to be at the top of Apple's priorities for the business.
Despite its massive investments in content, Apple TV+ might take the role of supporting actor for Apple. It's helped sell new devices and Apple One subscription bundles. The next supporting role for Apple TV+ may be in its growing advertising business.
Advertising coming to Apple TV+
Following in the footsteps of practically every other popular streaming service, Apple is exploring the potential for advertising within Apple TV+. The company has held talks with several media agencies, according to a report from Digiday. An ad-supported tier of Apple TV+ could launch as soon as early 2023.
Apple would likely shift the pricing of Apple TV+ higher if and when it introduces advertising. It's one of the few streaming services that hasn't raised prices in recent years despite its improving content catalog. It could keep its $4.99 per month price tag for subscribers willing to watch ads, and charge slightly more for those that want to avoid them.
Advertising would play well with Apple's interest in sports rights. It currently has deals with Major League Baseball and Major League Soccer, and it's in talks with the NFL. It presently shows ads during MLB games, but those ads are sold by the league, not Apple. But sports come with natural ad breaks and lots of live viewers, making them a great source of ad inventory for media agencies.
Advertising and a price hike would make Apple TV+ more profitable (or less unprofitable), but the infrastructure and relationships it could build to bring advertising to Apple TV+ could support a much larger business.
The goal is $10 billion
Earlier this year, Apple's VP of advertising, Todd Teresi, said his goal is to generate $10 billion in annual ad revenue for the company. Current estimates put that number at about $4 billion.
Among the things Teresi and his team are working on is an advertising technology called a demand-side platform, or DSP. A DSP would allow advertisers to automate their ad purchases across Apple's inventory, which includes advertisements in the App Store, News, and Stock apps. It may soon expand its advertising product to Maps, too.
Apple reportedly wants to use the DSP for Apple TV+ ad sales as well. And it'll need to build out a sales team to work with the big branded advertisers that would be most interested in connected-TV ad products. As such, the company could push more advertisers to use the DSP, increasing overall demand for its ad inventory, and move pricing higher for its ads across the ecosystem.
Again, Apple TV+ may be able to drive more revenue indirectly than it does directly by proving an essential part of Apple's ecosystem. In this case, it just so happens to be on the business-to-business-facing side.
Where investors will see the impact of Apple TV+
If Apple builds the ad technology and sales team to start selling ads in Apple TV+, investors will notice it in the company's services segment. Both revenue and margin ought to increase.
The rise in revenue stems from higher revenue per subscriber at Apple TV+ on top of the increase in overall ad sales. Apple will show an improvement in margin because it's growing revenue per subscriber without necessarily increasing its expenses for Apple TV+. Moreover, the advertising business likely carries very high gross margin relative to other Apple services.
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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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When Apple (NASDAQ: AAPL) launched Apple TV+ nearly three years ago, it offered a year of the streaming service as a free add-on for any device purchasers. It's one of the few streaming services that hasn't raised prices in recent years despite its improving content catalog. Among the things Teresi and his team are working on is an advertising technology called a demand-side platform, or DSP.
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When Apple (NASDAQ: AAPL) launched Apple TV+ nearly three years ago, it offered a year of the streaming service as a free add-on for any device purchasers. The goal is $10 billion Earlier this year, Apple's VP of advertising, Todd Teresi, said his goal is to generate $10 billion in annual ad revenue for the company. Where investors will see the impact of Apple TV+ If Apple builds the ad technology and sales team to start selling ads in Apple TV+, investors will notice it in the company's services segment.
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When Apple (NASDAQ: AAPL) launched Apple TV+ nearly three years ago, it offered a year of the streaming service as a free add-on for any device purchasers. Advertising coming to Apple TV+ Following in the footsteps of practically every other popular streaming service, Apple is exploring the potential for advertising within Apple TV+. Advertising and a price hike would make Apple TV+ more profitable (or less unprofitable), but the infrastructure and relationships it could build to bring advertising to Apple TV+ could support a much larger business.
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When Apple (NASDAQ: AAPL) launched Apple TV+ nearly three years ago, it offered a year of the streaming service as a free add-on for any device purchasers. Apple reportedly wants to use the DSP for Apple TV+ ad sales as well. As such, the company could push more advertisers to use the DSP, increasing overall demand for its ad inventory, and move pricing higher for its ads across the ecosystem.
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18862.0
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2022-10-18 00:00:00 UTC
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PREVIEW-Goldman to merge investment banking, trading as Marcus takes backseat
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AAPL
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https://www.nasdaq.com/articles/preview-goldman-to-merge-investment-banking-trading-as-marcus-takes-backseat
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By Saeed Azhar and Lananh Nguyen
NEW YORK, Oct 18 (Reuters) - Goldman Sachs Group Inc GS.N is expected to announce a major reorganization of its business lines on Tuesday, combining its trading and investment-banking divisions while likely sidelining its loss-making consumer unit.
Observers are questioning the rationale of the expected move, but say it could streamline the storied Wall Street firm. Experts were also puzzled about the future of Marcus, Goldman's digital consumer bank, for which Chief Executive Officer David Solomon had big ambitions to tap into Main Street customers.
"They've definitely innovated with Marcus... But the reality is, what's the cost of money that they're bringing in?" said Chris Marinac, Director of Research at Janney Montgomery Scott.
Goldman had to invest significantly to build the Marcus business and was offering savers a far higher rate of return to park money with them compared with retail rivals.
The group's reorganization sees its investment banking and trading businesses merged into a single unit, two people familiar with the matter told Reuters. Marcus will be absorbed into the bank's asset management and wealth unit, the sources said, confirming an earlier Wall Street Journal report.
The plans are expected to be announced on Tuesday alongside Goldman's third quarter earnings, which are forecast to show a sharp drop in net profit as dealmaking slowed.
It is the biggest shakeup since the company's investor day in early 2020 when it outlined plans for four core units: investment banking, global markets, consumer and wealth management and asset management.
A spokesperson for Goldman Sachs declined to comment.
The reshuffle comes as the Wall Street titan seeks to boost its income from fee-based businesses.
"This may be a way to put Marcus to the back burner as a way to de-emphasize its importance as an investment opportunity," said Mike Mayo, a banking analyst at Wells Fargo.
Goldman is refocusing on its core business, said Marinac of Janney Montgomery Scott.
"They're excellent at trading, excellent (at) investment banking," said Marinac. "And even though those businesses may not be necessarily the best this quarter, they're still good business. Long term, this is a winning company, so you can't knock them at all."
Still, some observers said the logic behind the expected changes remains unclear.
Since becoming CEO in 2018, Solomon has sought to expand Goldman's footprint in retail banking.
But the consumer banking unit that launched in 2016 has struggled to gain traction and suffered from delays. Marcus has yet to launch a checking account that was scheduled for this year.
Internally, the bank forecast that Marcus' losses would accelerate to more than $1.2 billion in 2022, for cumulative losses of more than $4 billion, Bloomberg reported. Goldman declined to comment on the loss.
Solomon has said the business could generate revenue of over $4 billion by end of 2024, while it posted a net revenue of $1.49 billion in 2021. The unit had $100 billion in deposits and serves 14 million customers.
Marcus offers digital banking products such as loans, savings and certificates of deposit. It also provides credit cards via a partnership with Apple Inc AAPL.O.
The combined investment banking and trading group will be overseen by Dan Dees and Jim Esposito, who are currently global co-heads of Goldman's investment banking division, and Ashok Varadhan, now co-head of its global markets division, according to Bloomberg.
Marc Nachmann, the current global co-head of global markets, will move to help run the combined asset- and wealth-management arm, the report said.
The overhaul follows a round of global job cuts in September that could have impacted hundreds of bankers.
"This is a way for Goldman Sachs to keep its management team on its toes and to reinforce the intensity that defines Goldman," Mayo said.
(Reporting by Saeed Azhar, Lananh Nguyen and Davide Barbuscia in New York and Pamela Barbaglia in London; Editing by Megan Davies and Sam Holmes)
((Saeed.Azhar@thomsonreuters.com; +1 347 908-6341; Reuters Messaging: saeed.azhar.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It also provides credit cards via a partnership with Apple Inc AAPL.O. By Saeed Azhar and Lananh Nguyen NEW YORK, Oct 18 (Reuters) - Goldman Sachs Group Inc GS.N is expected to announce a major reorganization of its business lines on Tuesday, combining its trading and investment-banking divisions while likely sidelining its loss-making consumer unit. Experts were also puzzled about the future of Marcus, Goldman's digital consumer bank, for which Chief Executive Officer David Solomon had big ambitions to tap into Main Street customers.
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It also provides credit cards via a partnership with Apple Inc AAPL.O. By Saeed Azhar and Lananh Nguyen NEW YORK, Oct 18 (Reuters) - Goldman Sachs Group Inc GS.N is expected to announce a major reorganization of its business lines on Tuesday, combining its trading and investment-banking divisions while likely sidelining its loss-making consumer unit. It is the biggest shakeup since the company's investor day in early 2020 when it outlined plans for four core units: investment banking, global markets, consumer and wealth management and asset management.
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It also provides credit cards via a partnership with Apple Inc AAPL.O. By Saeed Azhar and Lananh Nguyen NEW YORK, Oct 18 (Reuters) - Goldman Sachs Group Inc GS.N is expected to announce a major reorganization of its business lines on Tuesday, combining its trading and investment-banking divisions while likely sidelining its loss-making consumer unit. It is the biggest shakeup since the company's investor day in early 2020 when it outlined plans for four core units: investment banking, global markets, consumer and wealth management and asset management.
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It also provides credit cards via a partnership with Apple Inc AAPL.O. By Saeed Azhar and Lananh Nguyen NEW YORK, Oct 18 (Reuters) - Goldman Sachs Group Inc GS.N is expected to announce a major reorganization of its business lines on Tuesday, combining its trading and investment-banking divisions while likely sidelining its loss-making consumer unit. Goldman had to invest significantly to build the Marcus business and was offering savers a far higher rate of return to park money with them compared with retail rivals.
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18863.0
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2022-10-18 00:00:00 UTC
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US STOCKS-Wall St climbs as Goldman winds up big bank earnings on upbeat note
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-climbs-as-goldman-winds-up-big-bank-earnings-on-upbeat-note
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By Ankika Biswas and Shreyashi Sanyal
Oct 18 (Reuters) - Wall Street's main indexes jumped on Tuesday as strong earnings from Goldman Sachs ignited hopes that upbeat corporate reports could help soothe market worries of a potential recession due to rising inflation and interest rates.
Goldman Sachs Group Inc GS.N jumped 4.58% after reporting a smaller-than-expected drop in quarterly profit due to a slowdown in investment banking, which was cushioned by a boost in net interest income.
"It looks like rising borrowing costs, which are boosting net interest income, are working as a sort of parachute for the banks, while the slowing economy is still robust to handle the pain," said Guido Petrelli, founder and chief executive officer of Merlin Investor.
The investment bank, which is reorganizing its business into three units, wrapped up earnings from big U.S. banks on a largely positive note, even though several lenders raised the loan loss provisions in anticipation of troubled times ahead.
"The main focus was to what extent a drop would have taken place to understand if the Fed's attempt for a soft landing is something that can be actually managed, or if we are just about to enter a deep and unstoppable recession," Petrelli said.
Over the last two months, all the three major U.S. stock indexes have lost more than 12% as investors worry that the U.S. Federal Reserve's war on inflation may hobble the economy.
Johnson & Johnson JNJ.N shares reversed course to dip 0.29% after the healthcare conglomerate said it may have to cut jobs in anticipation of an economic slowdown.
While economic indicators continue to point to a likely recession, latest data showed U.S. factory output rose in September, indicating that the manufacturing sector remains on reasonable footing despite rising interest rates.
Analysts now expect profit for S&P 500 companies to have risen just 2.8% from a year ago, much lower than an 11.1% increase expected at the start of July, according to Refinitiv data.
Meanwhile, a report said ratings agency Fitch has slashed U.S. growth forecasts for this year and next and was set to warn that the Fed's interest rate hikes and inflation will drive the economy into a 1990-style recession.
At 10:01 a.m. ET, the Dow Jones Industrial Average .DJI was up 539.37 points, or 1.79%, at 30,725.19, the S&P 500 .SPX was up 66.76 points, or 1.82%, at 3,744.71, and the Nasdaq Composite .IXIC was up 203.62 points, or 1.91%, at 10,879.42.
All the 11 major S&P 500 sector indexes rose, with cyclical financials .SPSY and materials .SPLRCM rising 2% each. The S&P 500 banks index .SPXBK was up 2.81%.
The Nasdaq .IXIC led gains as megacap technology and other growth names like Apple Inc AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O and Nvidia Corp NVDA.O rose between 2.30% and 1.99%, keeping with declines in the benchmark 10-year Treasury note US10YT=RR. US/
Microsoft Corp MSFT.O gained 0.97% after a report it was laying off under 1,000 employees this week, becoming the latest U.S. technology company to cut jobs or slow hiring amid a global economic slowdown.
Netflix NFLX.O added 0.68% ahead of its earnings report after markets close.
Advancing issues outnumbered decliners by a 8.42-to-1 ratio on the NYSE and by a 5.40-to-1 ratio on the Nasdaq.
The S&P index recorded three new 52-week highs and one new low, while the Nasdaq recorded 45 new highs and 24 new lows.
(Reporting by Ankika Biswas and Shreyashi Sanyal in Bengaluru; Additional reporting by Susan Mathew and Bansari Mayur Kamdar; Editing by Anil D'Silva, Maju Samuel and Arun Koyyur)
((Ankika.Biswas@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Nasdaq .IXIC led gains as megacap technology and other growth names like Apple Inc AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O and Nvidia Corp NVDA.O rose between 2.30% and 1.99%, keeping with declines in the benchmark 10-year Treasury note US10YT=RR. By Ankika Biswas and Shreyashi Sanyal Oct 18 (Reuters) - Wall Street's main indexes jumped on Tuesday as strong earnings from Goldman Sachs ignited hopes that upbeat corporate reports could help soothe market worries of a potential recession due to rising inflation and interest rates. Goldman Sachs Group Inc GS.N jumped 4.58% after reporting a smaller-than-expected drop in quarterly profit due to a slowdown in investment banking, which was cushioned by a boost in net interest income.
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The Nasdaq .IXIC led gains as megacap technology and other growth names like Apple Inc AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O and Nvidia Corp NVDA.O rose between 2.30% and 1.99%, keeping with declines in the benchmark 10-year Treasury note US10YT=RR. By Ankika Biswas and Shreyashi Sanyal Oct 18 (Reuters) - Wall Street's main indexes jumped on Tuesday as strong earnings from Goldman Sachs ignited hopes that upbeat corporate reports could help soothe market worries of a potential recession due to rising inflation and interest rates. Goldman Sachs Group Inc GS.N jumped 4.58% after reporting a smaller-than-expected drop in quarterly profit due to a slowdown in investment banking, which was cushioned by a boost in net interest income.
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The Nasdaq .IXIC led gains as megacap technology and other growth names like Apple Inc AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O and Nvidia Corp NVDA.O rose between 2.30% and 1.99%, keeping with declines in the benchmark 10-year Treasury note US10YT=RR. By Ankika Biswas and Shreyashi Sanyal Oct 18 (Reuters) - Wall Street's main indexes jumped on Tuesday as strong earnings from Goldman Sachs ignited hopes that upbeat corporate reports could help soothe market worries of a potential recession due to rising inflation and interest rates. While economic indicators continue to point to a likely recession, latest data showed U.S. factory output rose in September, indicating that the manufacturing sector remains on reasonable footing despite rising interest rates.
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The Nasdaq .IXIC led gains as megacap technology and other growth names like Apple Inc AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O and Nvidia Corp NVDA.O rose between 2.30% and 1.99%, keeping with declines in the benchmark 10-year Treasury note US10YT=RR. By Ankika Biswas and Shreyashi Sanyal Oct 18 (Reuters) - Wall Street's main indexes jumped on Tuesday as strong earnings from Goldman Sachs ignited hopes that upbeat corporate reports could help soothe market worries of a potential recession due to rising inflation and interest rates. The S&P 500 banks index .SPXBK was up 2.81%.
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2022-10-18 00:00:00 UTC
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What Are The Best Stocks To Invest In? 3 Growth Stocks For Your List
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https://www.nasdaq.com/articles/what-are-the-best-stocks-to-invest-in-3-growth-stocks-for-your-list
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Growth stocks are a type of equity investment that refers to stocks of companies that are projected to experience high rates of growth. Growth stocks typically have a higher price-to-earnings (P/E) ratio than the market average, as investors are willing to pay more for shares in a company with strong growth prospects.
While growth stocks can offer the potential for large returns, they also tend to be more volatile than other types of stocks and may be more vulnerable to economic downturns. As a result, investors should carefully research any growth stock before making an investment.
Growth Stocks vs Value Stocks
When it comes to stock investing, there are two main camps: growth investors and value investors. Growth investors focus on stocks that have the potential for high capital appreciation, while value investors seek out stocks that they believe are underpriced relative to their intrinsic value. Both approaches can be successful, but they tend to produce different results over time.
Growth stocks tend to outperform during bull markets, while value stocks have a tendency to fare better during periods of market uncertainty. As a result, savvy investors typically maintain a portfolio that includes both growth and value stocks in order to maximize returns and minimize risk. With this in mind, let’s dive into three top growth stocks to watch in the stock market this week.
Growth Stocks To Invest In [Or Avoid] Right Now
Amazon.com Inc. (NASDAQ: AMZN)
American Airlines Group Inc. (NASDAQ: AAL)
Netflix Inc. (NASDAQ: NFLX)
1. Amazon (AMZN Stock)
Leading off today, Amazon.com, Inc. (AMZN) is an American multinational technology company. In detail, the company focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. Moreover, Amazon is considered one of the Big Four tech companies, alongside Google (NASDAQ: GOOGL), Apple (NASDAQ: AAPL), and Meta Platforms (NASDAQ: META). For a sense of scale, Amazon is the world’s largest online retailer, as well as a leading provider of cloud computing services.
AMZN Recent Stock News
Last week, Amazon announced it will be releasing its third-quarter 2022 financial results on Thursday, October 27, 2022, after the close of the U.S. market. While we wait, let’s take a look back at how Amazon did in the 2nd quarter of 2022. Back in July, the company reported second-quarter 2022 earnings of $0.10 per share on revenue of $121.1 billion.
What’s more, in the news release, the company also said it expects upbeat guidance for Q3 2022. Specifically, Amazon said that it is estimating third quarter 2022 revenue to come in between $125 billion to $130 billion.
AMZN Stock Chart
So far in 2022, shares of Amazon have dropped over 33%. Meanwhile, on Tuesday early morning AMZN stock is up over 4% pre-market at $119.05 per share.
Source: TD Ameritrade TOS
[Read More] 3 Fertilizer Stocks To Watch In The Stock Market Today
2. American Airlines (AAL Stock)
Next, American Airlines Group Inc. (AAL) is one of the largest airlines in the world, with a fleet of over 900 aircraft. For a sense of scale, the company operates an average of 6,700 flights daily to more than 350 destinations across 50 countries.
AAL Recent Stock News
Earlier this month, American Airlines Group announced it will report its 3rd quarter 2022 financial results on Thursday, October 20, 2022. In other news, just last week the company also announced it has made an equity investment in the green hydrogen company Universal Hydrogen Co.
In detail, Universal Hydrogen Co is building a green hydrogen distribution and logistics network for the aviation industry. As a result, this investment endorses American Airlines’ mission to shrink greenhouse gas (GHG) emissions by 2035 and achieve net zero GHG by 2050.
Furthermore, American’s Chief Financial Officer Derek Kerr commented, “This technology has the potential to be a game-changer on the industry’s path to zero-emission flight. As the world’s largest airline, American has a responsibility to exercise leadership in making aviation sustainable. Our investment in Universal Hydrogen represents a vote of confidence for green hydrogen as a key element of a sustainable future for our industry.“
AAL Stock Chart
Meanwhile, during Tuesday morning’s trading action, shares of AAL are up over 4% at $13.79 a share.
Source: TD Ameritrade TOS
[Read More] Best Lithium Battery Stocks To Buy Now? 4 To Know
3. Netflix (NFLX Stock)
Last but least, we have streaming giant Netflix Inc. (NFLX). For starters, Netflix is a subscription-based streaming service that offers online streaming from a library of films and television series. This includes those produced in-house. Moreover, Netflix has over 222 million paid subscribers throughout 190 countries worldwide. Additionally, the company continues to invest heavily in original content. Also, they are now one of the largest producers of original programming.
NFLX Recent Stock News
In recent news, Netflix is set to announce its third-quarter 2022 financial results and business outlook today, Tuesday, October 18, 2022, after the close of the U.S. Market. For a refresher, in the second quarter of 2022 NFLX reported earnings of $3.20 a share, along with revenue of $7.97 billion.
NFLX Stock Chart
Continuing on, over the last 5 trading days, shares of NFLX stock have begun to rebound 14.67%. Aside from that, on Tuesday morning, Netflix stock is up another 1.21% at $248.08 per share.
Source: TD Ameritrade TOS
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Moreover, Amazon is considered one of the Big Four tech companies, alongside Google (NASDAQ: GOOGL), Apple (NASDAQ: AAPL), and Meta Platforms (NASDAQ: META). AMZN Recent Stock News Last week, Amazon announced it will be releasing its third-quarter 2022 financial results on Thursday, October 27, 2022, after the close of the U.S. market. AAL Recent Stock News Earlier this month, American Airlines Group announced it will report its 3rd quarter 2022 financial results on Thursday, October 20, 2022.
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Moreover, Amazon is considered one of the Big Four tech companies, alongside Google (NASDAQ: GOOGL), Apple (NASDAQ: AAPL), and Meta Platforms (NASDAQ: META). Growth Stocks To Invest In [Or Avoid] Right Now Amazon.com Inc. (NASDAQ: AMZN) American Airlines Group Inc. (NASDAQ: AAL) Netflix Inc. (NASDAQ: NFLX) 1. AAL Recent Stock News Earlier this month, American Airlines Group announced it will report its 3rd quarter 2022 financial results on Thursday, October 20, 2022.
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Moreover, Amazon is considered one of the Big Four tech companies, alongside Google (NASDAQ: GOOGL), Apple (NASDAQ: AAPL), and Meta Platforms (NASDAQ: META). Growth stocks are a type of equity investment that refers to stocks of companies that are projected to experience high rates of growth. Growth Stocks vs Value Stocks When it comes to stock investing, there are two main camps: growth investors and value investors.
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Moreover, Amazon is considered one of the Big Four tech companies, alongside Google (NASDAQ: GOOGL), Apple (NASDAQ: AAPL), and Meta Platforms (NASDAQ: META). Growth Stocks To Invest In [Or Avoid] Right Now Amazon.com Inc. (NASDAQ: AMZN) American Airlines Group Inc. (NASDAQ: AAL) Netflix Inc. (NASDAQ: NFLX) 1. For a sense of scale, Amazon is the world’s largest online retailer, as well as a leading provider of cloud computing services.
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18865.0
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2022-10-17 00:00:00 UTC
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US STOCKS-Wall Street jumps after BofA results, UK reversal
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-jumps-after-bofa-results-uk-reversal
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By Chuck Mikolajczak
Oct 17 (Reuters) - U.S. stocks rallied on Monday after Britain reversed course on an economic plan, while Bank of America was the latest financial company to post solid quarterly results, which boosted optimism about the corporate earnings season.
Britain named Jeremy Hunt finance minister, and he immediately dispelled many of Prime Minister Liz Truss' fiscal measures, which had unnerved markets in recent weeks.
"The UK completely backing off this plan and presumably, they kind of put this Jeremy Hunt in as an adult," said Stephen Massocca, senior vice president at Wedbush Securities in San Francisco.
"Whatever they did over there, this Jeremy Hunt guy, he saved the day."
Bank of America Corp BAC.N surged 6.09% as the lender's was buoyed by rising interest rates in the quarter, even though it added $378 million to its loan-loss reserves to buttress against a softening economy.
Fellow financial Bank of NY Mellon Corp BK.N also benefited from higher interest rates, and its shares climbed 5.23%.
Overall, higher rates boosted interest incomes for lenders in the third quarter, giving investors hope the current earnings season will be better-than-feared. The earnings growth estimate for the quarter is 3%, according to Refinitiv data, down from 4.5% at the start of the month and 11.1% on July 1.
The S&P 500 banks index .SPXBK was up 3.50%. All the 11 S&P 500 sector indexes were higher with technology .SPLRCT, communication services .SPLRCL and consumer discretionary .SPLRCD gaining between 3% and 4%.
The Dow Jones Industrial Average .DJI rose 578.17 points, or 1.95%, to 30,213, the S&P 500 .SPX gained 98.9 points, or 2.76%, to 3,681.97 and the Nasdaq Composite .IXIC added 364.16 points, or 3.53%, to 10,685.55.
U.S. equities remain mired in a bear market, after struggling through September, historically a tough month. Analysts said stock prices may keep climbing, pointing to better stock valuations entering what is traditionally a stronger period for stocks. Aggressive Federal Reserve interest rate hikes could be a stumbling block though.
"A big part of this rally is sort of the massive undervaluation that took place when the Fed started raising rates that is kind of unwinding, which makes me think what kind of legs does this rally really have and can the market really take off and perform wonderfully if the Fed is continuing to be in tightening mode," said Massocca.
Data on manufacturing in the New York region was weaker than expected, adding fuel to expectations a pivot by the Fed may be on the horizon.
Shares of Goldman Sachs GS.N, which will post results on Tuesday, were up 1.97%, following reports of a plan to combine its investment banking and trading businesses.
Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O moved higher as the benchmark 10-year yield US10YT=RRfell for the first time in three days following the UK reversal.
The S&P 500 Growth index .IGX gained 3.57%,
Tesla Inc TSLA.O, Netflix NFLX.O and Johnson & Johnson JNJ.N are also expected to report results later in the week.
Advancing issues outnumbered declining ones on the NYSE by a 5.57-to-1 ratio; on Nasdaq, a 3.14-to-1 ratio favored advancers.
The S&P 500 posted no new 52-week highs and 2 new lows; the Nasdaq Composite recorded 65 new highs and 122 new lows.
(Reporting by Chuck Mikolajczak; Editing by David Gregorio)
((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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Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O moved higher as the benchmark 10-year yield US10YT=RRfell for the first time in three days following the UK reversal. By Chuck Mikolajczak Oct 17 (Reuters) - U.S. stocks rallied on Monday after Britain reversed course on an economic plan, while Bank of America was the latest financial company to post solid quarterly results, which boosted optimism about the corporate earnings season. "The UK completely backing off this plan and presumably, they kind of put this Jeremy Hunt in as an adult," said Stephen Massocca, senior vice president at Wedbush Securities in San Francisco.
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Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O moved higher as the benchmark 10-year yield US10YT=RRfell for the first time in three days following the UK reversal. Fellow financial Bank of NY Mellon Corp BK.N also benefited from higher interest rates, and its shares climbed 5.23%. The Dow Jones Industrial Average .DJI rose 578.17 points, or 1.95%, to 30,213, the S&P 500 .SPX gained 98.9 points, or 2.76%, to 3,681.97 and the Nasdaq Composite .IXIC added 364.16 points, or 3.53%, to 10,685.55.
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Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O moved higher as the benchmark 10-year yield US10YT=RRfell for the first time in three days following the UK reversal. By Chuck Mikolajczak Oct 17 (Reuters) - U.S. stocks rallied on Monday after Britain reversed course on an economic plan, while Bank of America was the latest financial company to post solid quarterly results, which boosted optimism about the corporate earnings season. Bank of America Corp BAC.N surged 6.09% as the lender's was buoyed by rising interest rates in the quarter, even though it added $378 million to its loan-loss reserves to buttress against a softening economy.
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Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O moved higher as the benchmark 10-year yield US10YT=RRfell for the first time in three days following the UK reversal. "The UK completely backing off this plan and presumably, they kind of put this Jeremy Hunt in as an adult," said Stephen Massocca, senior vice president at Wedbush Securities in San Francisco. Overall, higher rates boosted interest incomes for lenders in the third quarter, giving investors hope the current earnings season will be better-than-feared.
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18866.0
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2022-10-17 00:00:00 UTC
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US STOCKS-Wall Street jumps as BofA results spark rally
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-jumps-as-bofa-results-spark-rally
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By Ankika Biswas and Shreyashi Sanyal
Oct 17 (Reuters) - Wall Street's main indexes jumped on Monday as Bank of America led a rally among lenders after reporting a smaller-than-expected drop in profit, with its new loans benefiting from higher borrowing costs.
Bank of America Corp BAC.N jumped 5.17% as the lender's net interest income surged in its third quarter, even though it added $378 million to its loan-loss reserves.
"Bank earnings have generally been good. Markets are loving Bank of America's earnings, but how you interpret that toward the rest of earnings season can be a little tricky, and how you interpret that vis-à-vis the health of the consumer," said Steve Sosnick, chief strategist at Interactive Brokers.
Bank of NY Mellon Corp BK.N also benefited from higher interest rates, sending its shares up 4.48%.
Overall, higher rates boosted interest incomes for lenders in the third quarter, but turbulent markets choked off dealmaking and banks set aside more funds to brace for an economic slowdown.
The S&P 500 banks index .SPXBK was up 3.43%. All the 11 S&P 500 sector indexes were higher with technology .SPLRCT, communication services .SPLRCL and consumer discretionary .SPLRCD gaining between 3% and 4%.
Wall Street is deep in bear market territory, with economic indicators pointing to little signs of decades-high inflation cooling, but some analysts noted that stocks at such depressed levels could pave the way for short-term rallies.
"It's more just short-term technicals where you've got people overextended on the downside," said Jonathan Waite, fund manager at Frost Investment Advisors.
Some traders pointed to seasonality factors also in play during October, which has historically seen stocks climb heading into the end of the year.
Shares of Goldman Sachs GS.N, which will post results on Tuesday, were up 1.96%, following reports of a plan to combine its investment banking and trading businesses.
Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O added between 2.5% and 7.6% as the benchmark 10-year yield US10YT=RR fell for the first time in three days. US/
Yields tracked moves in the UK bond market, after new Finance Minister Jeremy Hunt reversed most of Prime Minister Liz Truss's economic growth plan. US/
The S&P 500 Growth index .IGX gained 3.3%.
Tesla Inc TSLA.O, Netflix NFLX.O and Johnson & Johnson JNJ.N are also expected to report results later in the week.
Analysts now expect profit for S&P 500 companies to have risen just 3% from a year ago, much lower than an 11.1% increase expected at the start of July, according to Refinitiv data.
At 12:26 p.m. ET, the Dow Jones Industrial Average .DJI was up 532.47 points, or 1.80%, at 30,167.30, the S&P 500 .SPX was up 93.95 points, or 2.62%, at 3,677.02, and the Nasdaq Composite .IXIC was up 341.11 points, or 3.30%, at 10,662.50.
Advancing issues outnumbered decliners by a 7.45-to-1 ratio on the NYSE and by a 3.82-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week high and two new lows, while the Nasdaq recorded 58 new highs and 94 new lows.
(Reporting by Ankika Biswas and Shreyashi Sanyal in Bengaluru; Additional reporting by Susan Mathew; Editing by Saumyadeb Chakrabarty and Arun Koyyur)
((Ankika.Biswas@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O added between 2.5% and 7.6% as the benchmark 10-year yield US10YT=RR fell for the first time in three days. By Ankika Biswas and Shreyashi Sanyal Oct 17 (Reuters) - Wall Street's main indexes jumped on Monday as Bank of America led a rally among lenders after reporting a smaller-than-expected drop in profit, with its new loans benefiting from higher borrowing costs. Overall, higher rates boosted interest incomes for lenders in the third quarter, but turbulent markets choked off dealmaking and banks set aside more funds to brace for an economic slowdown.
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Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O added between 2.5% and 7.6% as the benchmark 10-year yield US10YT=RR fell for the first time in three days. By Ankika Biswas and Shreyashi Sanyal Oct 17 (Reuters) - Wall Street's main indexes jumped on Monday as Bank of America led a rally among lenders after reporting a smaller-than-expected drop in profit, with its new loans benefiting from higher borrowing costs. Bank of America Corp BAC.N jumped 5.17% as the lender's net interest income surged in its third quarter, even though it added $378 million to its loan-loss reserves.
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Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O added between 2.5% and 7.6% as the benchmark 10-year yield US10YT=RR fell for the first time in three days. By Ankika Biswas and Shreyashi Sanyal Oct 17 (Reuters) - Wall Street's main indexes jumped on Monday as Bank of America led a rally among lenders after reporting a smaller-than-expected drop in profit, with its new loans benefiting from higher borrowing costs. Markets are loving Bank of America's earnings, but how you interpret that toward the rest of earnings season can be a little tricky, and how you interpret that vis-à-vis the health of the consumer," said Steve Sosnick, chief strategist at Interactive Brokers.
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Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O added between 2.5% and 7.6% as the benchmark 10-year yield US10YT=RR fell for the first time in three days. By Ankika Biswas and Shreyashi Sanyal Oct 17 (Reuters) - Wall Street's main indexes jumped on Monday as Bank of America led a rally among lenders after reporting a smaller-than-expected drop in profit, with its new loans benefiting from higher borrowing costs. The S&P 500 banks index .SPXBK was up 3.43%.
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18867.0
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2022-10-17 00:00:00 UTC
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Charter's (CHTR) Spectrum Expands Operations in Loudon County
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AAPL
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https://www.nasdaq.com/articles/charters-chtr-spectrum-expands-operations-in-loudon-county
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Charter Communications’ CHTR Spectrum has been awarded a Tennessee Emergency Broadband Fund – American Rescue Plan (TEB-ARP) grant of over $2.9 million. According to the grant, the company would deliver gigabit high-speed internet access to nearly 1,000 homes and small businesses in Loudon County, Tennessee.
Along with the state grant, Spectrum is investing $2.2 million in funding, bringing the total project investment to $5.2 million.
The current grant provided is the latest among the six awarded to Spectrum to expand fiber-optic broadband infrastructure to areas in the state lacking high-speed connections. These grants will help Spectrum provide its services to an additional 6,200 homes and small businesses in 6 counties across Tennessee.
Spectrum currently serves 524,000 customers in Tennessee. Spectrum is looking to expand its current customer base as it has started constructing a fiber-optic network, bringing its services to more than 4700 homes and small businesses in Wexford County, Michigan.
Spectrum is delivering its TV services across Wisconsin with more than 200 HD channels and access to 85,000 on-demand movies and shows. Viewers can stream content across platforms like Kindle Fire, Samsung Smart TVs and Apple’s AAPL Apple TV and Spectrum Originals using the Spectrum TV App.
Spectrum recently unveiled Spectrum Internet, Mobile, TV and Voice services to more than 540 homes and small businesses in the Northwoods regions of Arbor Vitae, Woodruff, Three Lakes and the Town of Piehl, WI.
Charter Communications, Inc. Price and Consensus
Charter Communications, Inc. price-consensus-chart | Charter Communications, Inc. Quote
Spectrum Expands Operations in Rural Areas to Boost Prospects
Charter’s shares have lost 50.4% in the year-to-date period compared with the Zacks Cable Television industry’s decline of 44.3%.
CHTR experienced slow top-line growth in the second quarter of 2022. It reported revenues of $13.598 billion, which increased 6.2% on a year-over-year basis.
Growth slowed down due to lower new activation of Internet users. CHTR had 30.253 million Internet customers in the second quarter of 2022, up 2.1% year over year. Charter lost 21K Internet customers in the last reported quarter.
Also, CHTR lost 226,000 video customers in the second quarter, with the market being mostly saturated. The space is dominated by big streaming service providers like Netflix NFLX and Amazon Prime Video, heightening Charter’s competition to grab a decent market share.
Netflix has been aggressively building its original content portfolio and is still enjoying its leading position in the streaming industry. It is the most prominent competitor of CHTR in the video-streaming space.
CHTR has collaborated with Comcast CMCSA to develop and offer a new streaming platform on various branded 4K streaming devices and smart TVs. The joint venture will provide CHTR with Comcast’s Flex and hardware, helping it attract new customers to counter competition.
As viewers stream from other platforms on the Spectrum TV app, CHTR will benefit from its strategic offering of Apple TV services to its customers.
Apple TV+ has recently broken records with 52 Emmy Award nominations across 13 titles and has boosted its total number of Emmy Award nominations by more than 40% year over year in under three years since its global launch.
The availability of Apple TV and other streaming platforms on its TV app will help Charter ward off competition from Netflix and Amazon. As of Jun 30, 2022, CHTR had 32.124 million total customer relationships, up 1.1% year over year.
Charter’s recent strategy to expand operations at Loudon County highlights its strategy to invest $5 billion in constructing a fiber-optic network buildout. This will help provide broadband access to approximately 1 million customer locations across 24 states in the coming years. This, in turn, is expected to expand this Zacks Rank #3 (Hold) company’s customer base extensively. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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
Comcast Corporation (CMCSA): Free Stock Analysis Report
Netflix, Inc. (NFLX): Free Stock Analysis Report
Charter Communications, Inc. (CHTR): 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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Viewers can stream content across platforms like Kindle Fire, Samsung Smart TVs and Apple’s AAPL Apple TV and Spectrum Originals using the Spectrum TV App. Apple Inc. (AAPL): Free Stock Analysis Report The current grant provided is the latest among the six awarded to Spectrum to expand fiber-optic broadband infrastructure to areas in the state lacking high-speed connections.
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Viewers can stream content across platforms like Kindle Fire, Samsung Smart TVs and Apple’s AAPL Apple TV and Spectrum Originals using the Spectrum TV App. Apple Inc. (AAPL): Free Stock Analysis Report According to the grant, the company would deliver gigabit high-speed internet access to nearly 1,000 homes and small businesses in Loudon County, Tennessee.
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Viewers can stream content across platforms like Kindle Fire, Samsung Smart TVs and Apple’s AAPL Apple TV and Spectrum Originals using the Spectrum TV App. Apple Inc. (AAPL): Free Stock Analysis Report Charter Communications, Inc. Price and Consensus Charter Communications, Inc. price-consensus-chart | Charter Communications, Inc. Quote Spectrum Expands Operations in Rural Areas to Boost Prospects Charter’s shares have lost 50.4% in the year-to-date period compared with the Zacks Cable Television industry’s decline of 44.3%.
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Viewers can stream content across platforms like Kindle Fire, Samsung Smart TVs and Apple’s AAPL Apple TV and Spectrum Originals using the Spectrum TV App. Apple Inc. (AAPL): Free Stock Analysis Report According to the grant, the company would deliver gigabit high-speed internet access to nearly 1,000 homes and small businesses in Loudon County, Tennessee.
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18868.0
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2022-10-17 00:00:00 UTC
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Q3 Earnings Scorecard and Analyst Reports for Apple, Abbott, IBM & Others
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AAPL
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https://www.nasdaq.com/articles/q3-earnings-scorecard-and-analyst-reports-for-apple-abbott-ibm-others
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Monday, October 17, 2022
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time update on the ongoing Q3 earnings season and new research reports on 16 major stocks, including Apple Inc. (AAPL), Abbott Laboratories (ABT) and International Business Machines Corporation (IBM). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Q3 Earnings Season Scorecard
Including this morning's results, we now havre Q3 results from 38 S&P 500 members that combined account for 10.7% of the index's total market capitalization. Total earnings for these 38 index members are down -4.7% from the same period last year on +9.4% higher revenues, with 76.3% beating EPS estimates and 57.9% beating revenue estimates.
For the Finance sector which has an outisize weightage in the results at this stage, we now have results from 32.3% of the sector's market capitalization in the S&P 500 index. Total Q3 earnings for these banks and brokers are down -12.3% from the same period last year on +5.2% higher revenues, with 91.7% beating EPS estimates and 66.7% beating revenue estimates. The proportion of these banks that have been beaten both EPS and revenue estimates is 66.7%.
This is a better showing from these Finance sector companeis relative to what we have seen from the group in other recent periods. The 'blended' 66.7% beats % for this group of Finance sector companies compares to a low of 33.7%, high of 83.3% and average of 58.3% over the preceding 20 quarters (5 years).
In other words, the Finance sector has given a better-than-expected start to this earnigns season.
Today's Featured Research Reports
Apple shares have declined -3.3% over the past year against the S&P 500 index's -21.2% and decline and the -37.3% pullback in the Zacks Tech sector.
While there are undoubtedly some challenges for Apple on the near-term horizon as a result of the evolving uncertain macro backdrop, it should continue to benefit from continued momentum in the Services and robust performance from iPhone, Mac, Wearables and an expanding App Store ecosystem.
The latest iPhone 14 models are witnessing high pre-order which is expected to drive top-line growth. We expect Apple’s fiscal 2022 revenues to increase 7.3% year over year with Services growing 14.1%..
On the flip side, Apple has a growing exposure to the uncertain Chinese market. The company’s services revenue growth is expected to be lower than the June quarter due to challenging macroeconomic conditions and unfavorable forex.
Also, Apple did not provide revenue guidance for the fourth quarter of fiscal 2022. Apple expects year-over-year revenue growth to accelerate during the fiscal fourth quarter on a sequential basis, despite approximately 600 basis points of unfavorable year-over-year impact from forex.
(You can read the full research report on Apple here >>>)
Abbott Laboratories shares have declined -11.7% over the past year against the Zacks Medical - Products industry’s decline of -49.2%. The company’s total worldwide Nutrition and Pediatric Nutrition sales continued to be hampered due to the negative repercussions of a voluntary recall of certain powder formulae produced at one of Abbott's U.S. plants. Decline in organic sales in the Neuromodulation and Vascular businesses in the second quarter also raise apprehension.
However, Abbott exited the second quarter of 2022 with better-than-expected earnings and revenues. The top line benefitted from robust organic sales growth across core operating segments, barring Nutrition.
The Diabetes Care business continued to benefit from the growing sales of sensor-based continuous glucose monitoring system, FreeStyle Libre. We are particularly upbeat about the receipt of FDA clearance for the company’s FreeStyle Libre 3 system in May 2022.
(You can read the full research report on Abbott Laboratories here >>>)
IBM shares have declined -13.7% over the past year against the Zacks Computer - Integrated Systems industry’s decline of -21.0%. The company is facing stiff competition in the cloud computing market from the likes of Amazon Web Services and Microsoft Azure. Higher debt levels amid extensive restructuring activities pose a concern for the company.
High integration risk from continuous acquisition spree is another headwind. Muted cash flow outlook for 2022 due to the impact of dollar strength and winding down of business operations in Russia remain another downside for IBM. However, synergies from the Red Hat buyout are bolstering its competitive position in the hybrid cloud market.
IBM’s growth is expected to be driven primarily by analytics, cloud computing, and security in the long haul. A combination of a better business mix, improving operating leverage through productivity gains and increased investment in growth opportunities will likely drive profitability.
(You can read the full research report on IBM here >>>)
Other noteworthy reports we are featuring today include Equinor ASA (EQNR), The Estée Lauder Companies Inc. (EL), and The Progressive Corporation (PGR).
Sheraz Mian
Director of Research
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Robust Portfolio, Services Strength to Benefit Apple (AAPL)
Abbott (ABT) Thrives on Procedure Volume Gain, iCGM Launch
IBM Rides on Solid Business Mix, Healthy Productivity Gains
Featured Reports
The Estee Lauder Companies (EL) Benefits From Online Business
Per the Zacks analyst, The Estee Lauder Companies is gaining on solid online sales. For fiscal 2022, online channel grew mid single-digits organically fueled by double-digit growth in Asia-Pacific.
Progressive's (PGR) Solid Policies in Force Aid, Cat Loss Ail
Per the Zacks analyst, Progressive is set to grow on, solid policies in force, competitive rates and leadership position. However, cat loss exposure inducing underwriting volatility ails.
McKesson's (MCK) Deals Buoys Optimism Amid Sluggish Market
Per the Zacks analyst, McKesson has been pursuing acquisitions and divestures to drive growth for its pharmaceutical distribution business, a targeted market that has sluggish growth rate.
Strength in Electrification Segment Aids ABB Amid High Costs
Per the Zacks analyst, strength in ABB's Electrification segment owing to strong customer activity should drive its growth. However, high operating costs remain a concern.
Fidelity National (FIS) Solid on Top-Line Growth, Buyouts
Per the Zacks analyst, strong performance of the company's Merchant Solutions segment is driving revenues. Acquisitions continue to boost its presence across several regions.
Beer Business to Boost Constellation Brands' (STZ) Feat
Per the Zacks analyst, Constellation Brands is gaining from strength in beer business on solid demand, particularly in Modelo Especial and Corona Extra. This led to beer sales growth of 15% in Q2.
Solid Investments Aid DTE Energy (DTE), Weak Solvency Woes
Per the Zacks analyst, DTE Energy's investment in infrastructure and expansion projects tend to boost its long-term growth prospects. However, its weak solvency position remains a bottleneck.
New Upgrades
Equinor (EQNR) to Benefit From Rising Clean Energy Demand
The Zacks analyst is impressed by Equinor's massive investments in renewable projects, comprising solar and wind energy. With this, the company can capitalize on the rising clean energy demand.
H&R Block (HRB) Benefits From Block Horizons 2025 Strategy
Per the Zacks analyst, Block Horizons strategy is expected to help H&R Block deliver sustainable revenues, operating profit growth, improve return on investments and maintain solid liquidity.
Sports Betting Expansion to Boost Boyd Gaming (BYD) Prospects
Per the Zacks analyst, Boyd Gaming is likely to benefit from its interactive gaming platform, FanDuel partnership and expansion initiatives. Also, focus on streamlining of cost structure bodes well.
New Downgrades
Sarepta's (SRPT) Overdependence on DMD Drugs a Woe
Though Sarepta Therapeutics has a strong commercial portfolio of drugs targeting DMD indication, the Zacks Analyst is concerned about the company's dependence on a single target market for revenues.n
Low Stream Volumes & Metal Prices to Hurt Royal Gold (RGLD)
The Zacks analyst is concerned that the Royal Gold's results will bear the brunt of lower stream segment sales and the recent downtrend in gold, copper and silver prices.
Challenging Market, Rising Expenses Hurt Franklin (BEN)
Per the Zacks analyst, challenging operating backdrop and geopolitical concerns might affect assets under management (AUM) for Franklin. Rising costs are likely to impede the bottom line.
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
Abbott Laboratories (ABT): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
International Business Machines Corporation (IBM): Free Stock Analysis Report
The Estee Lauder Companies Inc. (EL): Free Stock Analysis Report
The Progressive Corporation (PGR): Free Stock Analysis Report
Equinor ASA (EQNR): 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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Today's Research Daily features a real-time update on the ongoing Q3 earnings season and new research reports on 16 major stocks, including Apple Inc. (AAPL), Abbott Laboratories (ABT) and International Business Machines Corporation (IBM). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Abbott (ABT) Thrives on Procedure Volume Gain, iCGM Launch IBM Rides on Solid Business Mix, Healthy Productivity Gains Featured Reports The Estee Lauder Companies (EL) Benefits From Online Business Per the Zacks analyst, The Estee Lauder Companies is gaining on solid online sales. Apple Inc. (AAPL): Free Stock Analysis Report
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Abbott (ABT) Thrives on Procedure Volume Gain, iCGM Launch IBM Rides on Solid Business Mix, Healthy Productivity Gains Featured Reports The Estee Lauder Companies (EL) Benefits From Online Business Per the Zacks analyst, The Estee Lauder Companies is gaining on solid online sales. Today's Research Daily features a real-time update on the ongoing Q3 earnings season and new research reports on 16 major stocks, including Apple Inc. (AAPL), Abbott Laboratories (ABT) and International Business Machines Corporation (IBM). Apple Inc. (AAPL): Free Stock Analysis Report
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Today's Research Daily features a real-time update on the ongoing Q3 earnings season and new research reports on 16 major stocks, including Apple Inc. (AAPL), Abbott Laboratories (ABT) and International Business Machines Corporation (IBM). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Abbott (ABT) Thrives on Procedure Volume Gain, iCGM Launch IBM Rides on Solid Business Mix, Healthy Productivity Gains Featured Reports The Estee Lauder Companies (EL) Benefits From Online Business Per the Zacks analyst, The Estee Lauder Companies is gaining on solid online sales. Apple Inc. (AAPL): Free Stock Analysis Report
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Abbott (ABT) Thrives on Procedure Volume Gain, iCGM Launch IBM Rides on Solid Business Mix, Healthy Productivity Gains Featured Reports The Estee Lauder Companies (EL) Benefits From Online Business Per the Zacks analyst, The Estee Lauder Companies is gaining on solid online sales. Today's Research Daily features a real-time update on the ongoing Q3 earnings season and new research reports on 16 major stocks, including Apple Inc. (AAPL), Abbott Laboratories (ABT) and International Business Machines Corporation (IBM). Apple Inc. (AAPL): Free Stock Analysis Report
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18869.0
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2022-10-17 00:00:00 UTC
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Are You a Growth Investor? This 1 Stock Could Be the Perfect Pick
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AAPL
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https://www.nasdaq.com/articles/are-you-a-growth-investor-this-1-stock-could-be-the-perfect-pick-138
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nan
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nan
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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores?
The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value Score
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth Score
While good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum Score
Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM Score
What if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank
The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Apple (AAPL)
Apple’s business primarily runs around its flagship iPhone. However, the Services portfolio that includes revenues from cloud services, App store, Apple Music, AppleCare, Apple Pay, and licensing and other services now became the cash cow.
AAPL is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. AAPL has a Growth Style Score of A, forecasting year-over-year earnings growth of 8.9% for the current fiscal year.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2022. The Zacks Consensus Estimate has increased $0.01 to $6.11 per share. AAPL boasts an average earnings surprise of 5.7%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, AAPL should be on investors' short list.
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
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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Stock to Watch: Apple (AAPL) Apple’s business primarily runs around its flagship iPhone. AAPL is a #3 (Hold) on the Zacks Rank, with a VGM Score of B. Additionally, the company could be a top pick for growth investors. AAPL has a Growth Style Score of A, forecasting year-over-year earnings growth of 8.9% for the current fiscal year.
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Stock to Watch: Apple (AAPL) Apple’s business primarily runs around its flagship iPhone. AAPL is a #3 (Hold) on the Zacks Rank, with a VGM Score of B. Additionally, the company could be a top pick for growth investors. AAPL has a Growth Style Score of A, forecasting year-over-year earnings growth of 8.9% for the current fiscal year.
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Stock to Watch: Apple (AAPL) Apple’s business primarily runs around its flagship iPhone. AAPL is a #3 (Hold) on the Zacks Rank, with a VGM Score of B. Additionally, the company could be a top pick for growth investors. AAPL has a Growth Style Score of A, forecasting year-over-year earnings growth of 8.9% for the current fiscal year.
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Stock to Watch: Apple (AAPL) Apple’s business primarily runs around its flagship iPhone. AAPL is a #3 (Hold) on the Zacks Rank, with a VGM Score of B. Additionally, the company could be a top pick for growth investors. AAPL has a Growth Style Score of A, forecasting year-over-year earnings growth of 8.9% for the current fiscal year.
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18870.0
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2022-10-17 00:00:00 UTC
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US STOCKS-Wall Street surges as BofA gains on earnings beat
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-surges-as-bofa-gains-on-earnings-beat
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nan
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nan
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By Ankika Biswas
Oct 17 (Reuters) - Wall Street's main indexes jumped on Monday as Bank of America led gains among lenders after reporting better-than-expected results that were underpinned by the Federal Reserve's rapid rate hikes.
Bank of America Corp BAC.N rose 4.53% as the lender benefited from higher net interest income in its third quarter, even though it added $378 million to its loan-loss reserves.
"BAC benefited from a higher interest rate environment in both the yields on the newly issued loans and the growth of the number of depositors," said Siddharth Singhai, chief investment officer of New York-based investment firm Ironhold Capital.
"This is a direct result of higher interest rates offered by the banks looking very attractive compared to other risk assets. Lending will slow down quite a bit over the upcoming quarters, so a better reserve ratio would buttress them from a huge drop in demand."
Bank of NY Mellon Corp BK.N also benefited from higher rates, sending its shares up 5.64%.
Overall, higher rates boosted interest incomes for lenders in the third quarter but turbulent markets choked off dealmaking and banks set aside more funds to brace for an economic slowdown.
The S&P 500 banks index .SPXBK was up 3.14%. All the 11 S&P 500 sector indexes were higher with technology .SPLRCT, communication services .SPLRCL and consumer discretionary .SPLRCD leading with near 3% gains each.
Shares of Goldman Sachs GS.N, which will post results on Tuesday, were up 2.23%, following reports of a plan to combine its investment banking and trading businesses.
Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O added about 3% and 4% each as the yield on U.S. 10-year bonds US10YT=RR retreated from multi-year highs. US/
Tesla Inc TSLA.O, Netflix NFLX.O and Johnson & Johnson JNJ.N are also expected to report results later in the week.
Analysts now expect profit for S&P 500 companies to have risen just 3.6% from a year ago, much lower than an 11.1% increase expected at the start of July, according to Refinitiv data.
At 9:47 a.m. ET, the Dow Jones Industrial Average .DJI was up 585.88 points, or 1.98%, at 30,220.71, the S&P 500 .SPX was up 89.71 points, or 2.50%, at 3,672.78, and the Nasdaq Composite .IXIC was up 314.33 points, or 3.05%, at 10,635.72.
The S&P 500 .SPX and the Nasdaq .IXIC marked their fourth weekly loss in five on Friday, after data showed little signs that inflation was cooling, prompting traders to start pricing in the chances of a 1% hike by the Federal Reserve in its November rate-setting meeting.
Fox News parent Fox Corp FOXA.O slipped 6.31% after Rupert Murdoch started a process that could reunite his media empire, News Corp NWSA.O and Fox disclosed on Friday, a decade after the companies split. Shares of News Corp gained 5.4%.
Advancing issues outnumbered decliners by a 13.90-to-1 ratio on the NYSE and by a 5.82-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week high and two new lows, while the Nasdaq recorded 46 new highs and 46 new lows.
(Reporting by Ankika Biswas and Shreyashi Sanyal in Bengaluru; Additional reporting by Bansari Mayur Kamdar; Editing by Saumyadeb Chakrabarty and Arun Koyyur)
((Ankika.Biswas@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O added about 3% and 4% each as the yield on U.S. 10-year bonds US10YT=RR retreated from multi-year highs. By Ankika Biswas Oct 17 (Reuters) - Wall Street's main indexes jumped on Monday as Bank of America led gains among lenders after reporting better-than-expected results that were underpinned by the Federal Reserve's rapid rate hikes. Overall, higher rates boosted interest incomes for lenders in the third quarter but turbulent markets choked off dealmaking and banks set aside more funds to brace for an economic slowdown.
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Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O added about 3% and 4% each as the yield on U.S. 10-year bonds US10YT=RR retreated from multi-year highs. By Ankika Biswas Oct 17 (Reuters) - Wall Street's main indexes jumped on Monday as Bank of America led gains among lenders after reporting better-than-expected results that were underpinned by the Federal Reserve's rapid rate hikes. Bank of America Corp BAC.N rose 4.53% as the lender benefited from higher net interest income in its third quarter, even though it added $378 million to its loan-loss reserves.
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Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O added about 3% and 4% each as the yield on U.S. 10-year bonds US10YT=RR retreated from multi-year highs. By Ankika Biswas Oct 17 (Reuters) - Wall Street's main indexes jumped on Monday as Bank of America led gains among lenders after reporting better-than-expected results that were underpinned by the Federal Reserve's rapid rate hikes. Bank of America Corp BAC.N rose 4.53% as the lender benefited from higher net interest income in its third quarter, even though it added $378 million to its loan-loss reserves.
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Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O added about 3% and 4% each as the yield on U.S. 10-year bonds US10YT=RR retreated from multi-year highs. Bank of NY Mellon Corp BK.N also benefited from higher rates, sending its shares up 5.64%. The S&P 500 banks index .SPXBK was up 3.14%.
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18871.0
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2022-10-17 00:00:00 UTC
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US STOCKS-Wall Street rallies after BofA results, UK reversal
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-rallies-after-bofa-results-uk-reversal
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nan
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nan
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By Chuck Mikolajczak
NEW YORK, Oct 17 (Reuters) - U.S. stocks kicked off the trading week on Monday with a rally after Britain reversed course on an economic plan, while Bank of America was the latest financial company to post solid quarterly results, which lifted optimism about the corporate earnings season.
Britain named Jeremy Hunt finance minister, and he immediately dispelled many of Prime Minister Liz Truss' fiscal measures, which had unnerved markets in recent weeks.
Bank of America Corp BAC.N shares surged as the lender's was buoyed by rising interest rates in the quarter, even though it added $378 million to its loan-loss reserves to buttress against a softening economy.
Fellow financial Bank of NY Mellon Corp BK.N also benefited from higher interest rates, and its shares also climbed.
Overall, higher rates boosted interest incomes for lenders in the third quarter, giving investors hope the current earnings season will be able to hurdle a lowered bar of expectations. The earnings growth estimate for the quarter is 3%, according to Refinitiv data, down from 4.5% at the start of the month and 11.1% on July 1.
"In a fragile market like this, any type of good news in the margin can go a long way," said Emily Roland, co-chief investment strategist at John Hancock Investment Management in Boston.
"There is better sentiment around what is happening in the UK, financials earnings are being supported by a number of factors, better net interest margins are one key element, higher rates are going to be good for the banks so Q3 earnings maybe are looking a little less bad than feared, I would put it, maybe not necessarily better than feared."
The S&P 500 banks index .SPXBK was up more than 3%, while each of the 11 major S&P 500 sector were higher.
According to preliminary data, the S&P 500 .SPX gained 95.33 points, or 2.66%, to end at 3,678.40 points, while the Nasdaq Composite .IXIC gained 355.42 points, or 3.44%, to 10,676.81. The Dow Jones Industrial Average .DJI rose 566.35 points, or 1.91%, to 30,201.18.
U.S. equities remain mired in a bear market, after struggling through September, historically a tough month. Analysts said to better stock valuations entering what is traditionally a stronger period for stocks were also supporting Monday's rally. Aggressive Federal Reserve interest rate hikes could be a stumbling block though.
"Right now the Fed owns the market, Fed policy is the key driver, they are implementing the most aggressive tightening in the shortest amount of time that we have seen in our generation and it is important to remember that Fed policy, it works with a lag," said Roland.
Data on manufacturing in the New York region was weaker than expected, adding fuel to expectations a pivot by the Fed may be on the horizon.
Shares of Goldman Sachs GS.N, which will post results on Tuesday, also advanced following reports of a plan to combine its investment banking and trading businesses.
Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O all rallied, helping to lift the S&P 500 growth index .IGX by more than 3%.
Tesla Inc TSLA.O, Netflix NFLX.O and Johnson & Johnson JNJ.N are also expected to report results later in the week.
S&P 500 forward PEhttps://tmsnrt.rs/3s4Mpeq
(Reporting by Chuck Mikolajczak; Editing by David Gregorio)
((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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Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O all rallied, helping to lift the S&P 500 growth index .IGX by more than 3%. By Chuck Mikolajczak NEW YORK, Oct 17 (Reuters) - U.S. stocks kicked off the trading week on Monday with a rally after Britain reversed course on an economic plan, while Bank of America was the latest financial company to post solid quarterly results, which lifted optimism about the corporate earnings season. Bank of America Corp BAC.N shares surged as the lender's was buoyed by rising interest rates in the quarter, even though it added $378 million to its loan-loss reserves to buttress against a softening economy.
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Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O all rallied, helping to lift the S&P 500 growth index .IGX by more than 3%. By Chuck Mikolajczak NEW YORK, Oct 17 (Reuters) - U.S. stocks kicked off the trading week on Monday with a rally after Britain reversed course on an economic plan, while Bank of America was the latest financial company to post solid quarterly results, which lifted optimism about the corporate earnings season. Fellow financial Bank of NY Mellon Corp BK.N also benefited from higher interest rates, and its shares also climbed.
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Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O all rallied, helping to lift the S&P 500 growth index .IGX by more than 3%. By Chuck Mikolajczak NEW YORK, Oct 17 (Reuters) - U.S. stocks kicked off the trading week on Monday with a rally after Britain reversed course on an economic plan, while Bank of America was the latest financial company to post solid quarterly results, which lifted optimism about the corporate earnings season. Bank of America Corp BAC.N shares surged as the lender's was buoyed by rising interest rates in the quarter, even though it added $378 million to its loan-loss reserves to buttress against a softening economy.
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Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O all rallied, helping to lift the S&P 500 growth index .IGX by more than 3%. Bank of America Corp BAC.N shares surged as the lender's was buoyed by rising interest rates in the quarter, even though it added $378 million to its loan-loss reserves to buttress against a softening economy. Shares of Goldman Sachs GS.N, which will post results on Tuesday, also advanced following reports of a plan to combine its investment banking and trading businesses.
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18872.0
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2022-10-17 00:00:00 UTC
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US STOCKS-Wall Street rallies after BofA results, UK reversal
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-rallies-after-bofa-results-uk-reversal-0
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nan
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nan
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By Chuck Mikolajczak
NEW YORK, Oct 17 (Reuters) - U.S. stocks kicked off the trading week on Monday with a rally after Britain reversed course on an economic plan, while Bank of America was the latest financial company to post solid quarterly results, which lifted optimism about the corporate earnings season.
Britain named Jeremy Hunt finance minister, and he immediately dispelled many of Prime Minister Liz Truss' fiscal measures, which had unnerved markets in recent weeks.
Bank of America Corp BAC.N shares surged 6.06% as the lender's was buoyed by rising interest rates in the quarter, even though it added $378 million to its loan-loss reserves to buttress against a softening economy.
Fellow financial Bank of NY Mellon Corp BK.N also benefited from higher interest rates, and its shares climbed 5.08%.
Overall, higher rates boosted interest incomes for lenders in the third quarter, giving investors hope the current earnings season will be able to hurdle a lowered bar of expectations. The earnings growth estimate for the quarter is 3%, according to Refinitiv data, down from 4.5% at the start of the month and 11.1% on July 1.
"In a fragile market like this, any type of good news in the margin can go a long way," said Emily Roland, co-chief investment strategist at John Hancock Investment Management in Boston.
"There is better sentiment around what is happening in the UK, financials earnings are being supported by a number of factors, better net interest margins are one key element, higher rates are going to be good for the banks so Q3 earnings maybe are looking a little less bad than feared, I would put it, maybe not necessarily better than feared."
The S&P 500 banks index .SPXBK was up 3.48%, while each of the 11 major S&P 500 sector were higher.
The Dow Jones Industrial Average .DJI rose 550.99 points, or 1.86%, to 30,185.82, the S&P 500 .SPX gained 94.88 points, or 2.65%, to 3,677.95 and the Nasdaq Composite .IXIC added 354.41 points, or 3.43%, to 10,675.80.
U.S. equities remain mired in a bear market, after struggling through September, historically a tough month. Analysts said to better stock valuations entering what is traditionally a stronger period for stocks were also supporting Monday's rally. Aggressive Federal Reserve interest rate hikes could be a stumbling block though.
"Right now the Fed owns the market, Fed policy is the key driver, they are implementing the most aggressive tightening in the shortest amount of time that we have seen in our generation and it is important to remember that Fed policy, it works with a lag," said Roland.
Data on manufacturing in the New York region was weaker than expected, adding fuel to expectations a pivot by the Fed may be on the horizon.
Shares of Goldman Sachs GS.N, which will post results on Tuesday, advanced 2.24% following reports of a plan to combine its investment banking and trading businesses.
Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O all rallied, helping to lift the S&P 500 growth index .IGX by 3.42%, its biggest daily percentage jump since July 27.
Tesla Inc TSLA.O, Netflix NFLX.O and Johnson & Johnson JNJ.N are among companies expected to report results later in the week.
Volume on U.S. exchanges was 10.65 billion shares, compared with the 11.52 billion average for the full session over the last 20 trading days.
Advancing issues outnumbered declining ones on the NYSE by a 4.79-to-1 ratio; on Nasdaq, a 2.98-to-1 ratio favored advancers.
The S&P 500 posted no new 52-week highs and 2 new lows; the Nasdaq Composite recorded 83 new highs and 146 new lows.
S&P 500 forward PEhttps://tmsnrt.rs/3s4Mpeq
(Reporting by Chuck Mikolajczak; Editing by David Gregorio)
((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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Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O all rallied, helping to lift the S&P 500 growth index .IGX by 3.42%, its biggest daily percentage jump since July 27. By Chuck Mikolajczak NEW YORK, Oct 17 (Reuters) - U.S. stocks kicked off the trading week on Monday with a rally after Britain reversed course on an economic plan, while Bank of America was the latest financial company to post solid quarterly results, which lifted optimism about the corporate earnings season. Bank of America Corp BAC.N shares surged 6.06% as the lender's was buoyed by rising interest rates in the quarter, even though it added $378 million to its loan-loss reserves to buttress against a softening economy.
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Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O all rallied, helping to lift the S&P 500 growth index .IGX by 3.42%, its biggest daily percentage jump since July 27. By Chuck Mikolajczak NEW YORK, Oct 17 (Reuters) - U.S. stocks kicked off the trading week on Monday with a rally after Britain reversed course on an economic plan, while Bank of America was the latest financial company to post solid quarterly results, which lifted optimism about the corporate earnings season. The Dow Jones Industrial Average .DJI rose 550.99 points, or 1.86%, to 30,185.82, the S&P 500 .SPX gained 94.88 points, or 2.65%, to 3,677.95 and the Nasdaq Composite .IXIC added 354.41 points, or 3.43%, to 10,675.80.
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Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O all rallied, helping to lift the S&P 500 growth index .IGX by 3.42%, its biggest daily percentage jump since July 27. By Chuck Mikolajczak NEW YORK, Oct 17 (Reuters) - U.S. stocks kicked off the trading week on Monday with a rally after Britain reversed course on an economic plan, while Bank of America was the latest financial company to post solid quarterly results, which lifted optimism about the corporate earnings season. Bank of America Corp BAC.N shares surged 6.06% as the lender's was buoyed by rising interest rates in the quarter, even though it added $378 million to its loan-loss reserves to buttress against a softening economy.
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Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O all rallied, helping to lift the S&P 500 growth index .IGX by 3.42%, its biggest daily percentage jump since July 27. Bank of America Corp BAC.N shares surged 6.06% as the lender's was buoyed by rising interest rates in the quarter, even though it added $378 million to its loan-loss reserves to buttress against a softening economy. Shares of Goldman Sachs GS.N, which will post results on Tuesday, advanced 2.24% following reports of a plan to combine its investment banking and trading businesses.
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18873.0
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2022-10-17 00:00:00 UTC
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Taiwan's Foxconn says wants its customers to sell a lot of EVs
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AAPL
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https://www.nasdaq.com/articles/taiwans-foxconn-says-wants-its-customers-to-sell-a-lot-of-evs
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nan
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nan
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TAIPEI, Oct 18 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, said on Tuesday it was not in the business of selling its own electric vehicle brand but wanted its customers to sell a lot of EVs.
Chairman Liu Young-way said at the company's annual Tech Day that from design to build, the company has the capability in EVs and its global footprint gave it a "huge advantage" to meet the EV industry's demands.
Foxconn has ambitious plans with EVs to diversify away from its role of building consumer electronics for Apple Inc AAPL.O and other tech firms.
(Reporting by Sarah Wu; Writing by Ben Blanchard; Editing by Muralikumar Anantharaman)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Foxconn has ambitious plans with EVs to diversify away from its role of building consumer electronics for Apple Inc AAPL.O and other tech firms. TAIPEI, Oct 18 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, said on Tuesday it was not in the business of selling its own electric vehicle brand but wanted its customers to sell a lot of EVs. Chairman Liu Young-way said at the company's annual Tech Day that from design to build, the company has the capability in EVs and its global footprint gave it a "huge advantage" to meet the EV industry's demands.
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Foxconn has ambitious plans with EVs to diversify away from its role of building consumer electronics for Apple Inc AAPL.O and other tech firms. Chairman Liu Young-way said at the company's annual Tech Day that from design to build, the company has the capability in EVs and its global footprint gave it a "huge advantage" to meet the EV industry's demands. (Reporting by Sarah Wu; Writing by Ben Blanchard; Editing by Muralikumar Anantharaman) ((ben.blanchard@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Foxconn has ambitious plans with EVs to diversify away from its role of building consumer electronics for Apple Inc AAPL.O and other tech firms. TAIPEI, Oct 18 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, said on Tuesday it was not in the business of selling its own electric vehicle brand but wanted its customers to sell a lot of EVs. Chairman Liu Young-way said at the company's annual Tech Day that from design to build, the company has the capability in EVs and its global footprint gave it a "huge advantage" to meet the EV industry's demands.
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Foxconn has ambitious plans with EVs to diversify away from its role of building consumer electronics for Apple Inc AAPL.O and other tech firms. TAIPEI, Oct 18 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, said on Tuesday it was not in the business of selling its own electric vehicle brand but wanted its customers to sell a lot of EVs. Chairman Liu Young-way said at the company's annual Tech Day that from design to build, the company has the capability in EVs and its global footprint gave it a "huge advantage" to meet the EV industry's demands.
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18874.0
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2022-10-17 00:00:00 UTC
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Taiwan's Foxconn says it wants customers to sell 'a lot' of EVs
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AAPL
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https://www.nasdaq.com/articles/taiwans-foxconn-says-it-wants-customers-to-sell-a-lot-of-evs
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nan
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nan
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Recasts, adds quotes, details
TAIPEI, Oct 18 (Reuters) - Foxconn, the world's largest contract electronics maker, said on Tuesday it was not in the business of selling its own electric vehicle (EV) brand but wanted its customers to sell EVs in large numbers by opening up the "closed loop" of auto manufacturing.
The ambition lines up with Taiwan-based Foxconn's 2317.TW plans to ramp up EV business to help diversify away from its role of assembling consumer gadgets like iPhones for Apple Inc AAPL.O and other tech firms.
Speaking at the company's annual Tech Day, Chairman Liu Young-way said that along with an industry alliance known as the Mobility in Harmony platform, Foxconn was "opening up the closed-loop nature of traditional automaking" to halve design times and slash development costs by a third.
"Foxconn is not in the business of selling its own EV brand. But, yes, we want our customers to sell a lot of EVs," Liu said in pre-recorded remarks.
The company has expanded into areas including EVs and semiconductors in recent years, announcing deals with U.S. startup Fisker Inc FSR.N and Indian conglomerate Vedanta Ltd VDAN.NS.
Pre-orders for the Luxgen n7 EV, built by Foxtron, a joint venture between Foxconn and Taiwanese car maker Yulon Motor Co Ltd 2201.TW, hit 15,000 in less than two days, he added.
"Despite the challenges of conflict in Europe and COVID globally, Foxconn has maintained our EV strategy," Liu said.
"Supply chain resilience has always been Foxconn's DNA. Our global footprint in 24 countries gives us a huge advantage to meet EV industry demands."
(Reporting by Sarah Wu; Writing by Ben Blanchard; Editing by Muralikumar Anantharaman and Kenneth Maxwell)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The ambition lines up with Taiwan-based Foxconn's 2317.TW plans to ramp up EV business to help diversify away from its role of assembling consumer gadgets like iPhones for Apple Inc AAPL.O and other tech firms. Speaking at the company's annual Tech Day, Chairman Liu Young-way said that along with an industry alliance known as the Mobility in Harmony platform, Foxconn was "opening up the closed-loop nature of traditional automaking" to halve design times and slash development costs by a third. Pre-orders for the Luxgen n7 EV, built by Foxtron, a joint venture between Foxconn and Taiwanese car maker Yulon Motor Co Ltd 2201.TW, hit 15,000 in less than two days, he added.
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The ambition lines up with Taiwan-based Foxconn's 2317.TW plans to ramp up EV business to help diversify away from its role of assembling consumer gadgets like iPhones for Apple Inc AAPL.O and other tech firms. Recasts, adds quotes, details TAIPEI, Oct 18 (Reuters) - Foxconn, the world's largest contract electronics maker, said on Tuesday it was not in the business of selling its own electric vehicle (EV) brand but wanted its customers to sell EVs in large numbers by opening up the "closed loop" of auto manufacturing. Speaking at the company's annual Tech Day, Chairman Liu Young-way said that along with an industry alliance known as the Mobility in Harmony platform, Foxconn was "opening up the closed-loop nature of traditional automaking" to halve design times and slash development costs by a third.
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The ambition lines up with Taiwan-based Foxconn's 2317.TW plans to ramp up EV business to help diversify away from its role of assembling consumer gadgets like iPhones for Apple Inc AAPL.O and other tech firms. Recasts, adds quotes, details TAIPEI, Oct 18 (Reuters) - Foxconn, the world's largest contract electronics maker, said on Tuesday it was not in the business of selling its own electric vehicle (EV) brand but wanted its customers to sell EVs in large numbers by opening up the "closed loop" of auto manufacturing. Speaking at the company's annual Tech Day, Chairman Liu Young-way said that along with an industry alliance known as the Mobility in Harmony platform, Foxconn was "opening up the closed-loop nature of traditional automaking" to halve design times and slash development costs by a third.
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The ambition lines up with Taiwan-based Foxconn's 2317.TW plans to ramp up EV business to help diversify away from its role of assembling consumer gadgets like iPhones for Apple Inc AAPL.O and other tech firms. Recasts, adds quotes, details TAIPEI, Oct 18 (Reuters) - Foxconn, the world's largest contract electronics maker, said on Tuesday it was not in the business of selling its own electric vehicle (EV) brand but wanted its customers to sell EVs in large numbers by opening up the "closed loop" of auto manufacturing. Speaking at the company's annual Tech Day, Chairman Liu Young-way said that along with an industry alliance known as the Mobility in Harmony platform, Foxconn was "opening up the closed-loop nature of traditional automaking" to halve design times and slash development costs by a third.
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2022-10-17 00:00:00 UTC
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US STOCKS-Wall Street jumps as solid BofA results spark rally
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https://www.nasdaq.com/articles/us-stocks-wall-street-jumps-as-solid-bofa-results-spark-rally
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By Ankika Biswas and Shreyashi Sanyal
Oct 17 (Reuters) - Wall Street's main indexes jumped on Monday as Bank of America led gains among lenders after reporting better-than-expected results that were underpinned by the Federal Reserve's rapid rate hikes.
Bank of America Corp BAC.N rose 6.2% as the lender benefited from higher net interest income in its third quarter, even though it added $378 million to its loan-loss reserves.
"BAC benefited from a higher interest rate environment in both the yields on the newly issued loans and the growth of the number of depositors," said Siddharth Singhai, chief investment officer of New York-based investment firm Ironhold Capital.
"This is a direct result of higher interest rates offered by the banks looking very attractive compared to other risk assets. Lending will slow down quite a bit over the upcoming quarters, so a better reserve ratio would buttress them from a huge drop in demand."
Bank of NY Mellon Corp BK.N also benefited from higher rates, sending its shares up 6.1%.
Overall, higher rates boosted interest incomes for lenders in the third quarter but turbulent markets choked off dealmaking and banks set aside more funds to brace for an economic slowdown.
The S&P 500 banks index .SPXBK was up 3.8%. All the 11 S&P 500 sector indexes were higher with technology .SPLRCT, communication services .SPLRCL and consumer discretionary .SPLRCD leading with near 3% gains each.
Wall Street is deep in bear market territory, with economic indicators pointing to little signs of decades-high inflation cooling, but some analysts noted that stocks at such depressed levels could pave the way for short-term rallies.
"It's more just short-term technicals where you've got people overextended on the downside," said Jonathan Waite, fund manager at Frost Investment Advisors.
Traders are pricing in a small chance of a 1% hike by the Fed in its November meeting. FEDWATCH
Shares of Goldman Sachs GS.N, which will post results on Tuesday, were up 2.7%, following reports of a plan to combine its investment banking and trading businesses.
Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O added between 3% and 4% as the yield on U.S. 10-year bonds US10YT=RR retreated from multi-year highs. US/
Tesla Inc TSLA.O, Netflix NFLX.O and Johnson & Johnson JNJ.N are also expected to report results later in the week.
Analysts now expect profit for S&P 500 companies to have risen just 3% from a year ago, much lower than an 11.1% increase expected at the start of July, according to Refinitiv data.
At 10:22 a.m. ET the Dow Jones Industrial Average .DJI was up 606.69 points, or 2.05%, at 30,241.52, the S&P 500 .SPX was up 102.14 points, or 2.85%, at 3,685.21 and the Nasdaq Composite .IXIC was up 347.40 points, or 3.37%, at 10,668.79.
Advancing issues outnumbered decliners by a 11.76-to-1 ratio on the NYSE and by a 5.26-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week high and two new lows, while the Nasdaq recorded 51 new highs and 59 new lows.
(Reporting by Ankika Biswas and Shreyashi Sanyal in Bengaluru; Additional reporting by Bansari Mayur Kamdar; Editing by Saumyadeb Chakrabarty and Arun Koyyur)
((Ankika.Biswas@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O added between 3% and 4% as the yield on U.S. 10-year bonds US10YT=RR retreated from multi-year highs. By Ankika Biswas and Shreyashi Sanyal Oct 17 (Reuters) - Wall Street's main indexes jumped on Monday as Bank of America led gains among lenders after reporting better-than-expected results that were underpinned by the Federal Reserve's rapid rate hikes. Overall, higher rates boosted interest incomes for lenders in the third quarter but turbulent markets choked off dealmaking and banks set aside more funds to brace for an economic slowdown.
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Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O added between 3% and 4% as the yield on U.S. 10-year bonds US10YT=RR retreated from multi-year highs. By Ankika Biswas and Shreyashi Sanyal Oct 17 (Reuters) - Wall Street's main indexes jumped on Monday as Bank of America led gains among lenders after reporting better-than-expected results that were underpinned by the Federal Reserve's rapid rate hikes. Bank of America Corp BAC.N rose 6.2% as the lender benefited from higher net interest income in its third quarter, even though it added $378 million to its loan-loss reserves.
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Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O added between 3% and 4% as the yield on U.S. 10-year bonds US10YT=RR retreated from multi-year highs. By Ankika Biswas and Shreyashi Sanyal Oct 17 (Reuters) - Wall Street's main indexes jumped on Monday as Bank of America led gains among lenders after reporting better-than-expected results that were underpinned by the Federal Reserve's rapid rate hikes. "BAC benefited from a higher interest rate environment in both the yields on the newly issued loans and the growth of the number of depositors," said Siddharth Singhai, chief investment officer of New York-based investment firm Ironhold Capital.
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Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O added between 3% and 4% as the yield on U.S. 10-year bonds US10YT=RR retreated from multi-year highs. Bank of America Corp BAC.N rose 6.2% as the lender benefited from higher net interest income in its third quarter, even though it added $378 million to its loan-loss reserves. Bank of NY Mellon Corp BK.N also benefited from higher rates, sending its shares up 6.1%.
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18876.0
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2022-10-17 00:00:00 UTC
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Should First Trust Rising Dividend Achievers ETF (RDVY) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-first-trust-rising-dividend-achievers-etf-rdvy-be-on-your-investing-radar-4
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Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the First Trust Rising Dividend Achievers ETF (RDVY) is a passively managed exchange traded fund launched on 01/07/2014.
The fund is sponsored by First Trust Advisors. It has amassed assets over $7.41 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Large cap companies typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
Costs
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 0.50%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.92%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 36.50% of the portfolio. Information Technology and Healthcare round out the top three.
Looking at individual holdings, Williams-Sonoma, Inc. (WSM) accounts for about 2.46% of total assets, followed by Jefferies Financial Group Inc. (JEF) and Apple Inc. (AAPL).
The top 10 holdings account for about 22.08% of total assets under management.
Performance and Risk
RDVY seeks to match the performance of the NASDAQ US Rising Dividend Achievers Index before fees and expenses. The NASDAQ US Rising Dividend Achievers Index is designed to provide access to a diversified portfolio of companies with a history of paying dividends.
The ETF has lost about -22.69% so far this year and is down about -18.06% in the last one year (as of 10/17/2022). In the past 52-week period, it has traded between $38.88 and $52.79.
The ETF has a beta of 1.12 and standard deviation of 29.08% for the trailing three-year period, making it a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.
Alternatives
First Trust Rising Dividend Achievers 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, RDVY is a great option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $48.17 billion in assets, Vanguard Value ETF has $91.54 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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First Trust Rising Dividend Achievers ETF (RDVY): ETF Research Reports
Apple Inc. (AAPL): Free Stock Analysis Report
Jefferies Financial Group Inc. (JEF): Free Stock Analysis Report
WilliamsSonoma, Inc. (WSM): Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Williams-Sonoma, Inc. (WSM) accounts for about 2.46% of total assets, followed by Jefferies Financial Group Inc. (JEF) and Apple Inc. (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the First Trust Rising Dividend Achievers ETF (RDVY) is a passively managed exchange traded fund launched on 01/07/2014.
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Looking at individual holdings, Williams-Sonoma, Inc. (WSM) accounts for about 2.46% of total assets, followed by Jefferies Financial Group Inc. (JEF) and Apple Inc. (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the First Trust Rising Dividend Achievers ETF (RDVY) is a passively managed exchange traded fund launched on 01/07/2014.
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Looking at individual holdings, Williams-Sonoma, Inc. (WSM) accounts for about 2.46% of total assets, followed by Jefferies Financial Group Inc. (JEF) and Apple Inc. (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives First Trust Rising Dividend Achievers 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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Looking at individual holdings, Williams-Sonoma, Inc. (WSM) accounts for about 2.46% of total assets, followed by Jefferies Financial Group Inc. (JEF) and Apple Inc. (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the First Trust Rising Dividend Achievers ETF (RDVY) is a passively managed exchange traded fund launched on 01/07/2014.
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2022-10-17 00:00:00 UTC
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Alphabet (GOOGL) Enhances YouTube With Homescreen Widgets
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https://www.nasdaq.com/articles/alphabet-googl-enhances-youtube-with-homescreen-widgets
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Alphabet’s GOOGL division Google is leaving no stone unturned to add features to its online video-streaming service, YouTube.
According to 9TO5Google, Google added homescreen widgets to YouTube for iPhone and iPad users.
The widgets include Quick Actions, Search YouTube, Home, Shorts, Subscriptions and Search.
Quick Actions lets users quickly search and browse YouTube. The Search YouTube permits users to immediately use the keyboard or microphone, while the Search widget also allows users to search anything on YouTube swiftly. Users can click on Home, Shorts and Subscriptions to quickly open the respective feeds.
With the introduction of recent widgets, Google aims to provide an enhanced YouTube browsing experience to iPhone and iPad users. This is likely to boost the adoption rate of YouTube.
This is expected to aid the performance of Google Services segment which contributes the most to Alphabet’s top line.
The Google services generated revenues of $62.8 billion, accounting for 90.2% of the total second-quarter revenues. Revenues increased 10.1% from the prior year quarter’s level.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Growing YouTube Initiatives
Apart from the recent move, Alphabet introduced handles for YouTube channels to support creators in establishing their distinct presence and brand on YouTube.
Alphabet is further gearing up for bringing a redesigned YouTube video screen to aid users with an improved video-streaming experience.
GOOGL announced two updates on its YouTube Partner Program to let users easily join YouTube and make money from the platform, mainly from YouTube Shorts. Alphabet also introduced a Creator Music catalog for adding tracks to videos.
With consistent efforts, Alphabet positioned itself well to rapidly penetrate the booming global video-streaming market.
Per a Precedence Research report, the underlined market is expected to reach $1.7 trillion by 2030, seeing a CAGR of 18.5% between 2022 and 2030.
The market is likely to witness a CAGR of 21.3% during the same forecast period according to a Grand View Research report.
We believe Alphabet’s growing prospects in this potential market is likely to aid it in winning investors’ confidence in the near term.
Shares of GOOGL have been down 33.4% in the year-to-date period, outperforming the Computer and Technology sector’s decline of 38.3%.
Competitive Scenario
Given the upbeat scenario, apart from Alphabet, other major companies, including Apple AAPL, Amazon AMZN and Netflix NFLX, are making strong efforts to expand their presence in the video-streaming space.
Apple, which has lost 22.1% in the year-to-date period, is continuously witnessing solid momentum across its video-streaming platform, Apple TV. Apple’s growing interest in sports streaming remains a major positive. Recently, AAPL signed a multi-year agreement with Nike to create and produce sports movies. Further, its growing original and regional content portfolio is helping it expand its user base.
Amazon is gaining traction among customers on the back of its video on-demand service, Prime Video. Prime Video offers movies, TV series and exclusive Amazon Originals, keeping users glued to its platform. Shares of Amazon have been down 35.8% in the year-to-date period.
Netflix is riding on its diversified content portfolio, attributable to heavy investments in the production and distribution of localized and foreign-language content. Recently, NFLX expanded its partnership with Dark Horse Entertainment. Per the terms of the deal, Dark Horse will continue to give Netflix a first look at its IP for both film and TV. Netflix has lost 61.8% year to date.
Nevertheless, Alphabet’s growing efforts toward video-streaming are expected to continue helping it gain a competitive edge against aforesaid peers.
Currently, Alphabet carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Netflix, Inc. (NFLX): 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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Competitive Scenario Given the upbeat scenario, apart from Alphabet, other major companies, including Apple AAPL, Amazon AMZN and Netflix NFLX, are making strong efforts to expand their presence in the video-streaming space. Recently, AAPL signed a multi-year agreement with Nike to create and produce sports movies. Apple Inc. (AAPL): Free Stock Analysis Report
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Competitive Scenario Given the upbeat scenario, apart from Alphabet, other major companies, including Apple AAPL, Amazon AMZN and Netflix NFLX, are making strong efforts to expand their presence in the video-streaming space. Apple Inc. (AAPL): Free Stock Analysis Report Recently, AAPL signed a multi-year agreement with Nike to create and produce sports movies.
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Competitive Scenario Given the upbeat scenario, apart from Alphabet, other major companies, including Apple AAPL, Amazon AMZN and Netflix NFLX, are making strong efforts to expand their presence in the video-streaming space. Recently, AAPL signed a multi-year agreement with Nike to create and produce sports movies. Apple Inc. (AAPL): Free Stock Analysis Report
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Competitive Scenario Given the upbeat scenario, apart from Alphabet, other major companies, including Apple AAPL, Amazon AMZN and Netflix NFLX, are making strong efforts to expand their presence in the video-streaming space. Recently, AAPL signed a multi-year agreement with Nike to create and produce sports movies. Apple Inc. (AAPL): Free Stock Analysis Report
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2022-10-17 00:00:00 UTC
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India's Reliance Jio selects Nokia as equipment provider in 5G push
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https://www.nasdaq.com/articles/indias-reliance-jio-selects-nokia-as-equipment-provider-in-5g-push
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BENGALURU, Oct 17 (Reuters) - Indian telecom service provider Reliance Jio has chosen Nokia NOKIA.HE as a major supplier, the Finnish telecom equipment maker said on Monday, as India's biggest mobile carrier gears up to expand next-generation wireless services across the country.
Nokia will supply Reliance Jio, which has more than 420 million customers, with 5G radio access network (RAN) equipment in a multi-year deal, the company said in a statement.
"Nokia will supply equipment from its AirScale portfolio, including base stations, high-capacity 5G Massive MIMO antennas, and Remote Radio Heads to support different spectrum bands, and self-organizing network software," it said.
5G data speeds in India are expected to be about 10 times faster than those of 4G, with the network seen as vital for emerging technologies like self-driving cars and artificial intelligence.
Reliance RELI.NS snapped up airwaves worth $11 billion in a $19 billion 5G spectrum auction in August and had launched 5G services in select cities. It is also working with Alphabet Inc's GOOGL.O Google to launch a budget 5G smartphone.
As India's telecom service providers roll out 5G services, the government is also pushing top mobile phone manufacturers, like Apple Inc AAPL.O, Samsung 005930.KS and others, to prioritise rolling out software upgrades to support 5G, amid concerns that many of their models are not ready for the high-speed service.
The Reliance-Nokia deal comes at a time when some governments, including India, have either banned or discouraged the use of China's Huawei in national networks.
"Jio is committed to continuously investing in the latest network technologies to enhance the experience of all of its customers," Akash Ambani, chairman of Reliance Jio, said.
Meanwhile, Reliance Jio is planning to raise an additional $1.5 billion via external commercial borrowings to fund its 5G capital expenditure plans, the Economic Times newspaper reported, citing sources.
(Reporting by Nallur Sethuraman in Bengaluru; Editing by Savio D'Souza)
((Sethuraman.NR@thomsonreuters.com; (+91 8061822737); Reuters Messaging: nallur.sethuraman.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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As India's telecom service providers roll out 5G services, the government is also pushing top mobile phone manufacturers, like Apple Inc AAPL.O, Samsung 005930.KS and others, to prioritise rolling out software upgrades to support 5G, amid concerns that many of their models are not ready for the high-speed service. Nokia will supply Reliance Jio, which has more than 420 million customers, with 5G radio access network (RAN) equipment in a multi-year deal, the company said in a statement. "Nokia will supply equipment from its AirScale portfolio, including base stations, high-capacity 5G Massive MIMO antennas, and Remote Radio Heads to support different spectrum bands, and self-organizing network software," it said.
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As India's telecom service providers roll out 5G services, the government is also pushing top mobile phone manufacturers, like Apple Inc AAPL.O, Samsung 005930.KS and others, to prioritise rolling out software upgrades to support 5G, amid concerns that many of their models are not ready for the high-speed service. BENGALURU, Oct 17 (Reuters) - Indian telecom service provider Reliance Jio has chosen Nokia NOKIA.HE as a major supplier, the Finnish telecom equipment maker said on Monday, as India's biggest mobile carrier gears up to expand next-generation wireless services across the country. Nokia will supply Reliance Jio, which has more than 420 million customers, with 5G radio access network (RAN) equipment in a multi-year deal, the company said in a statement.
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As India's telecom service providers roll out 5G services, the government is also pushing top mobile phone manufacturers, like Apple Inc AAPL.O, Samsung 005930.KS and others, to prioritise rolling out software upgrades to support 5G, amid concerns that many of their models are not ready for the high-speed service. BENGALURU, Oct 17 (Reuters) - Indian telecom service provider Reliance Jio has chosen Nokia NOKIA.HE as a major supplier, the Finnish telecom equipment maker said on Monday, as India's biggest mobile carrier gears up to expand next-generation wireless services across the country. Nokia will supply Reliance Jio, which has more than 420 million customers, with 5G radio access network (RAN) equipment in a multi-year deal, the company said in a statement.
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As India's telecom service providers roll out 5G services, the government is also pushing top mobile phone manufacturers, like Apple Inc AAPL.O, Samsung 005930.KS and others, to prioritise rolling out software upgrades to support 5G, amid concerns that many of their models are not ready for the high-speed service. BENGALURU, Oct 17 (Reuters) - Indian telecom service provider Reliance Jio has chosen Nokia NOKIA.HE as a major supplier, the Finnish telecom equipment maker said on Monday, as India's biggest mobile carrier gears up to expand next-generation wireless services across the country. Nokia will supply Reliance Jio, which has more than 420 million customers, with 5G radio access network (RAN) equipment in a multi-year deal, the company said in a statement.
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2022-10-17 00:00:00 UTC
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US STOCKS-Wall St futures higher with focus on earnings
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https://www.nasdaq.com/articles/us-stocks-wall-st-futures-higher-with-focus-on-earnings
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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: Dow 0.78%, S&P 0.93%, Nasdaq 1.12%
Oct 17 (Reuters) - U.S. stock index futures were higher on Monday, after a roller-coaster week, as investors focused on the third-quarter earnings season to assess the impact of decades-high inflation and rising interest rates on corporate profit.
Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O, and Tesla Inc TSLA.O added over 1% each as the yield on U.S. 10-year bonds US10YT=RR dipped from Friday's levels. US/
Major U.S. banks JPMorgan Chase & Co JPM.N, Morgan Stanley MS.N, Citigroup Inc C.N and Wells Fargo & Co WFC.N reported a slide in net income on Friday after turbulent markets choked off investment banking activity and lenders set aside more funds to cover losses from borrowers who fall behind on payments.
Investors will closely monitor the earnings of Bank of America Corp and Bank of New York Mellon Corp BK.N due later in the day. Tesla Inc TSLA.O, Netflix NFLX.O and Johnson & Johnson JNJ.N are also expected to report their results later in the week.
Analysts now expect profit for S&P 500 companies to have risen just 3.6% from a year ago, much lower than an 11.1% increase expected at the start of July, according to Refinitiv IBES data.
At 04:56 a.m. ET, Dow e-minis 1YMcv1 were up 231 points, or 0.78%, S&P 500 e-minis EScv1 were up 33.5 points, or 0.93%, and Nasdaq 100 e-minis NQcv1 were up 120.75 points, or 1.12%.
Goldman Sachs GS.N edged higher in premarket trading following reports of a likely major reorganization under which its investment banking and trading businesses will be combined, while consumer banking will be absorbed by its wealth unit.
The S&P 500 .SPX and Nasdaq Composite .IXIC marked their fourth weekly loss in five on Friday, after data showed little signs that inflation was cooling, prompting traders to start pricing in the possibility of a full percentage point hike from the Federal Reserve at its November rate-setting meeting.
Volatility also stemmed from UK's political turmoil, following the ousting of Finance Minister Kwasi Kwarteng. Investors now await another test for gilts from a new tax proposal due later in the day from Kwarteng's successor Jeremy Hunt.
(Reporting by Ankika Biswas in Bengaluru; Editing by Anil D'Silva)
((Ankika.Biswas@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O, and Tesla Inc TSLA.O added over 1% each as the yield on U.S. 10-year bonds US10YT=RR dipped from Friday's levels. The S&P 500 .SPX and Nasdaq Composite .IXIC marked their fourth weekly loss in five on Friday, after data showed little signs that inflation was cooling, prompting traders to start pricing in the possibility of a full percentage point hike from the Federal Reserve at its November rate-setting meeting. Investors now await another test for gilts from a new tax proposal due later in the day from Kwarteng's successor Jeremy Hunt.
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Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O, and Tesla Inc TSLA.O added over 1% each as the yield on U.S. 10-year bonds US10YT=RR dipped from Friday's levels. Futures: Dow 0.78%, S&P 0.93%, Nasdaq 1.12% Oct 17 (Reuters) - U.S. stock index futures were higher on Monday, after a roller-coaster week, as investors focused on the third-quarter earnings season to assess the impact of decades-high inflation and rising interest rates on corporate profit. Tesla Inc TSLA.O, Netflix NFLX.O and Johnson & Johnson JNJ.N are also expected to report their results later in the week.
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Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O, and Tesla Inc TSLA.O added over 1% each as the yield on U.S. 10-year bonds US10YT=RR dipped from Friday's levels. Futures: Dow 0.78%, S&P 0.93%, Nasdaq 1.12% Oct 17 (Reuters) - U.S. stock index futures were higher on Monday, after a roller-coaster week, as investors focused on the third-quarter earnings season to assess the impact of decades-high inflation and rising interest rates on corporate profit. US/ Major U.S. banks JPMorgan Chase & Co JPM.N, Morgan Stanley MS.N, Citigroup Inc C.N and Wells Fargo & Co WFC.N reported a slide in net income on Friday after turbulent markets choked off investment banking activity and lenders set aside more funds to cover losses from borrowers who fall behind on payments.
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Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O, and Tesla Inc TSLA.O added over 1% each as the yield on U.S. 10-year bonds US10YT=RR dipped from Friday's levels. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Investors will closely monitor the earnings of Bank of America Corp and Bank of New York Mellon Corp BK.N due later in the day.
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18880.0
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2022-10-17 00:00:00 UTC
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Here's the FAANG Stock Wall Street Thinks Will Soar the Most Over the Next 12 Months
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AAPL
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https://www.nasdaq.com/articles/heres-the-faang-stock-wall-street-thinks-will-soar-the-most-over-the-next-12-months
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nan
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nan
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It's been a rough year for many of the highest-flying stocks of the recent past. The list even includes quite a few of the biggest and most well-known names in the stock market.
All of the FAANG stocks have dropped significantly so far in 2022. But don't write them off yet. Analysts expect that four of the five stocks in the group will deliver strong gains in the not-too-distant future. Here's the FAANG stock that Wall Street thinks will soar the most over the next 12 months.
Eliminating the contenders
The five FAANG stocks are:
Facebook, which is now Meta Platforms (NASDAQ: META)
Amazon (NASDAQ: AMZN)
Apple (NASDAQ: AAPL)
Netflix (NASDAQ: NFLX)
Google, which is now Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL)
We can quickly scratch one of these stocks from the list of potentially big winners. The consensus Wall Street 12-month price target for Netflix is only 5% above the current share price.
Sure, there are plenty of investors who think that the TV streaming stock could be on the verge of a massive spike. However, even with Netflix's share price down more than 60% year to date, that sentiment apparently isn't shared uniformly across the analyst community.
Wall Street does appear to expect a strong performance over the next 12 months for Apple. The average analyst price target reflects an upside potential of nearly 31%. That's only enough to rank Apple in fourth place among the FAANG stocks for which Wall Street is most bullish, though.
Analysts continue to like Alphabet and Amazon as well. The consensus 12-month price targets for the two stocks are 45% and 54% above the current share prices, respectively.
Crowning the (potential) champion
The process of logical elimination allows us to crown Meta Platforms as the champion of Wall Street among the FAANG stocks. The average analyst 12-month price target for Meta reflects an upside potential of nearly 72%.
What do analysts like about this stock? A couple of things especially stand out.
First, Meta is currently the most beaten-down of the group this year (although it's running neck-and-neck with Netflix for the dubious distinction). Shares of the social media giant and metaverse pioneer have plunged more than 60%.
Second, Meta's valuation metrics look more attractive overall than the other FAANG stocks. Its shares trade at only 10.7 times expected earnings. This number is well below the forward earnings multiples of the other stocks. Meta's price-to-earnings-to-growth (PEG) ratio is around 1.5. That's second only to Alphabet's PEG ratio of 1.2.
Is Wall Street right?
We'll have to wait a while to find out whether or not Wall Street's optimism about Meta is warranted. The company certainly faces significant challenges.
Apple's privacy update for iOS continues to negatively affect Meta's advertising business. TikTok appears to be winning some teens away from Instagram. Meanwhile, Meta is investing billions of dollars each year in a metaverse bet that may or may not pay off.
However, some analysts see better days ahead. Oppenheimer's Jason Helfstein recently pointed out that Apple's forthcoming update of its ad software could provide a big tailwind for Meta. Apple is adding back some features that it previously took away.
Another analyst, Ronald Josey with Citigroup, likes the prospects for Reels -- a short-form video feature available on Facebook and Instagram. Meta Platforms CEO Mark Zuckerberg stated in the company's Q2 conference call that user engagement with Reels continues to increase sharply.
The biggest wild card for Meta is whether or not the metaverse takes off as the company expects it will. There's some reason for skepticism right now, especially considering that Meta's own employees don't seem all that excited about the metaverse.
But Meta just picked up a major vote of confidence in its metaverse vision from Microsoft. The software giant plans to integrate its workplace apps with Meta's Quest devices.
It's going to take more than 12 months to find out whether Meta's huge bet on the metaverse was a mistake or a brilliant move. If it's the latter, this FAANG stock will soar a lot more than what Wall Street is predicting for the near term.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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. Keith Speights has positions in Alphabet (A shares), Amazon, Apple, Meta Platforms, Inc., and Microsoft. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., Microsoft, and Netflix. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Eliminating the contenders The five FAANG stocks are: Facebook, which is now Meta Platforms (NASDAQ: META) Amazon (NASDAQ: AMZN) Apple (NASDAQ: AAPL) Netflix (NASDAQ: NFLX) Google, which is now Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) We can quickly scratch one of these stocks from the list of potentially big winners. Oppenheimer's Jason Helfstein recently pointed out that Apple's forthcoming update of its ad software could provide a big tailwind for Meta. Another analyst, Ronald Josey with Citigroup, likes the prospects for Reels -- a short-form video feature available on Facebook and Instagram.
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Eliminating the contenders The five FAANG stocks are: Facebook, which is now Meta Platforms (NASDAQ: META) Amazon (NASDAQ: AMZN) Apple (NASDAQ: AAPL) Netflix (NASDAQ: NFLX) Google, which is now Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) We can quickly scratch one of these stocks from the list of potentially big winners. The average analyst 12-month price target for Meta reflects an upside potential of nearly 72%. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., Microsoft, and Netflix.
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Eliminating the contenders The five FAANG stocks are: Facebook, which is now Meta Platforms (NASDAQ: META) Amazon (NASDAQ: AMZN) Apple (NASDAQ: AAPL) Netflix (NASDAQ: NFLX) Google, which is now Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) We can quickly scratch one of these stocks from the list of potentially big winners. Crowning the (potential) champion The process of logical elimination allows us to crown Meta Platforms as the champion of Wall Street among the FAANG stocks. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., Microsoft, and Netflix.
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Eliminating the contenders The five FAANG stocks are: Facebook, which is now Meta Platforms (NASDAQ: META) Amazon (NASDAQ: AMZN) Apple (NASDAQ: AAPL) Netflix (NASDAQ: NFLX) Google, which is now Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) We can quickly scratch one of these stocks from the list of potentially big winners. Analysts continue to like Alphabet and Amazon as well. What do analysts like about this stock?
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18881.0
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2022-10-17 00:00:00 UTC
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Apple freezes plans to use China's YMTC chips - Nikkei
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AAPL
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https://www.nasdaq.com/articles/apple-freezes-plans-to-use-chinas-ymtc-chips-nikkei
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nan
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nan
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Adds details from report, background
Oct 17 (Reuters) - U.S. tech giant Apple Inc AAPL.O has put on hold plans to use memory chips from China's Yangtze Memory Technologies Co (YMTC) in its products, after Washington imposed tighter export controls against Chinese technology companies, the Nikkei reported on Monday.
Apple had originally planned to start using state-funded YMTC's NAND flash memory chips as early as this year, Nikkei said, citing people familiar with the matter.The chips were initially planned to be used only for iPhones sold in the Chinese market.
It was considering eventually purchasing up to 40% of the chips needed for all iPhones from YMTC, the newspaper said.
The United States last week added China's top memory chipmaker YMTC and 30 other Chinese entities to a list of companies that U.S. officials have been unable to inspect, ratcheting up tensions with Beijing, starting a 60 day-clock that could trigger much tougher penalties.
YMTC is also being investigated by the U.S. Commerce Department over whether it violated Washington's export controls by selling chips to blacklisted Chinese telecommunications company Huawei Technologies Co Ltd.
Biden administration's sweeping set of export controls on China is a bid to slow Beijing's technological and military advances by cutting the country's supplies off from certain semiconductor chips made anywhere in the world with U.S. equipment.
Apple did not immediately respond to Reuters' request for comment, while YMTC declined to comment.
(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Savio D'Souza and Dhanya Ann Thoppil)
((JaiveerSingh.Shekhawat@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 details from report, background Oct 17 (Reuters) - U.S. tech giant Apple Inc AAPL.O has put on hold plans to use memory chips from China's Yangtze Memory Technologies Co (YMTC) in its products, after Washington imposed tighter export controls against Chinese technology companies, the Nikkei reported on Monday. The United States last week added China's top memory chipmaker YMTC and 30 other Chinese entities to a list of companies that U.S. officials have been unable to inspect, ratcheting up tensions with Beijing, starting a 60 day-clock that could trigger much tougher penalties. YMTC is also being investigated by the U.S. Commerce Department over whether it violated Washington's export controls by selling chips to blacklisted Chinese telecommunications company Huawei Technologies Co Ltd. Biden administration's sweeping set of export controls on China is a bid to slow Beijing's technological and military advances by cutting the country's supplies off from certain semiconductor chips made anywhere in the world with U.S. equipment.
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Adds details from report, background Oct 17 (Reuters) - U.S. tech giant Apple Inc AAPL.O has put on hold plans to use memory chips from China's Yangtze Memory Technologies Co (YMTC) in its products, after Washington imposed tighter export controls against Chinese technology companies, the Nikkei reported on Monday. Apple had originally planned to start using state-funded YMTC's NAND flash memory chips as early as this year, Nikkei said, citing people familiar with the matter.The chips were initially planned to be used only for iPhones sold in the Chinese market. YMTC is also being investigated by the U.S. Commerce Department over whether it violated Washington's export controls by selling chips to blacklisted Chinese telecommunications company Huawei Technologies Co Ltd. Biden administration's sweeping set of export controls on China is a bid to slow Beijing's technological and military advances by cutting the country's supplies off from certain semiconductor chips made anywhere in the world with U.S. equipment.
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Adds details from report, background Oct 17 (Reuters) - U.S. tech giant Apple Inc AAPL.O has put on hold plans to use memory chips from China's Yangtze Memory Technologies Co (YMTC) in its products, after Washington imposed tighter export controls against Chinese technology companies, the Nikkei reported on Monday. Apple had originally planned to start using state-funded YMTC's NAND flash memory chips as early as this year, Nikkei said, citing people familiar with the matter.The chips were initially planned to be used only for iPhones sold in the Chinese market. YMTC is also being investigated by the U.S. Commerce Department over whether it violated Washington's export controls by selling chips to blacklisted Chinese telecommunications company Huawei Technologies Co Ltd. Biden administration's sweeping set of export controls on China is a bid to slow Beijing's technological and military advances by cutting the country's supplies off from certain semiconductor chips made anywhere in the world with U.S. equipment.
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Adds details from report, background Oct 17 (Reuters) - U.S. tech giant Apple Inc AAPL.O has put on hold plans to use memory chips from China's Yangtze Memory Technologies Co (YMTC) in its products, after Washington imposed tighter export controls against Chinese technology companies, the Nikkei reported on Monday. It was considering eventually purchasing up to 40% of the chips needed for all iPhones from YMTC, the newspaper said. The United States last week added China's top memory chipmaker YMTC and 30 other Chinese entities to a list of companies that U.S. officials have been unable to inspect, ratcheting up tensions with Beijing, starting a 60 day-clock that could trigger much tougher penalties.
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18882.0
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2022-10-17 00:00:00 UTC
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Stock Market News for Oct 17, 2022
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-oct-17-2022
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nan
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nan
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U.S. stocks ended lower on Friday to close a volatile trading week as inflation expectations escalated, while investors digested a batch of quarterly reports as the earnings season got underway. All three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) declined 1.3% or 403.89 points to finish at 29,634.83 points, after rising as much as 390 points at its trading high.
The S&P 500 slipped 2.4% or 86.84 points to end at 3,583.07 points. Energy, consumer discretionary, materials and tech stocks were the biggest losers.
The Energy Select Sector SPDR (XLE) and the Consumer Discretionary Select Sector SPDR (XLY) each lost 3.7%. The Materials Select Sector SPDR (XLB) fell 3.4%, while the Technology Select Sector SPDR (XLK) declined 2.8%. All the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq fell 3.1% or 327.76 points to close at 10,321.39 points, recording its lowest closing value since Jul 2, 2020
The fear-gauge CBOE Volatility Index (VIX) was up 0.25% to 32.02. Decliners outnumbered advancers on the NYSE by a 4.20-to-1 ratio. On Nasdaq, a 2.87-to-1 ratio favored declining issues. A total of 10.88 billion shares were traded on Friday, lower than the last 20-session average of 11.48 billion.
Inflation Expectations Grow Unsettling Markets
Wall Street gave up early gains on Friday to fall to session lows after a consumer sentiment survey from the University of Michigan showed that inflation expectations over the next year rose to 5.1% from September’s one-year low of 4.7%. The survey also showed that inflation expectations over the next five years climbed to 2.9% from 2.7% in September.
The Fed is likely to closely watch this index. Inflation worries have already been worrying investors although markets made a dramatic turnaround on Thursday. The positive sentiment helped markets open in the green on Friday. However, fresh data from the University of Michigan once again dented investors’ confidence, leading markets to give way to losses in the latter half of Friday’s trading session.
Fed’s stance to aggressively hike interest rates to combat surging inflation has already been taking a toll on markets. Investors are now reeling under fears of the economy slipping into a deep recession owing to this. Friday’s data on expectations for inflation saw the tech-heavy Nasdaq leading the declines. Growth companies are the most sensitive to interest rate hikes and big tech companies ended up as one of the major losers on Friday.
Shares of Meta Platforms, Inc. META fell 2.7%, while Apple Inc. AAPL declined 3.2%. Apple has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Other big tech stocks also declined on Friday as bond yields rose. The 10-year Treasury yield crossed more than 4% for the second time in two days, as investors weighed on expectations for inflation making a steep rise. Shares of Salesforce, Inc. CRM and Microsoft Corporation MSFT declined 2.2% and 2.4%, respectively.
Also, stocks took a beating on Friday after the consumer-price index report on Thursday showed that inflation came in hotter than expected in September. Stocks initially took a hit on Thursday but made a historic comeback after investors shrugged off worries of the Fed continuing with its aggressive interest rate hike policy.
Earnings Season Gets Underway
The third-quarter earnings season also got underway this week. A batch of big banks reported quarterly results on Friday. Although several of them reported impressive quarterly results, investors’ sentiment remained low.
Shares of U.S. Bancorp USB jumped 3.4% after it reported quarterly earnings of $1.18 per share, surpassing the Zacks Consensus Estimate of $1.17 per share.
Economic Data
In other major economic data released on Friday, retail sales came in flat in September, down from a revised 0.4% rise in August, the Commerce Department said. Excluding auto and fuel sales, retail sales increased 0.3%.
Weekly Roundup
It was a volatile week of trading that saw stocks making wild moves, particularly on Thursday. For the week, the Dow ended 1.2% higher. However, the S&P 500 and Nasdaq ended the week down 1.6% and 3.1%, respectively.
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
Microsoft Corporation (MSFT): Free Stock Analysis Report
Salesforce Inc. (CRM): Free Stock Analysis Report
U.S. Bancorp (USB): 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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Shares of Meta Platforms, Inc. META fell 2.7%, while Apple Inc. AAPL declined 3.2%. Apple Inc. (AAPL): Free Stock Analysis Report U.S. stocks ended lower on Friday to close a volatile trading week as inflation expectations escalated, while investors digested a batch of quarterly reports as the earnings season got underway.
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Shares of Meta Platforms, Inc. META fell 2.7%, while Apple Inc. AAPL declined 3.2%. Apple Inc. (AAPL): Free Stock Analysis Report U.S. stocks ended lower on Friday to close a volatile trading week as inflation expectations escalated, while investors digested a batch of quarterly reports as the earnings season got underway.
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Shares of Meta Platforms, Inc. META fell 2.7%, while Apple Inc. AAPL declined 3.2%. Apple Inc. (AAPL): Free Stock Analysis Report U.S. stocks ended lower on Friday to close a volatile trading week as inflation expectations escalated, while investors digested a batch of quarterly reports as the earnings season got underway.
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Shares of Meta Platforms, Inc. META fell 2.7%, while Apple Inc. AAPL declined 3.2%. Apple Inc. (AAPL): Free Stock Analysis Report U.S. stocks ended lower on Friday to close a volatile trading week as inflation expectations escalated, while investors digested a batch of quarterly reports as the earnings season got underway.
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18883.0
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2022-10-17 00:00:00 UTC
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Should Schwab 1000 Index ETF (SCHK) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-schwab-1000-index-etf-schk-be-on-your-investing-radar-4
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nan
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nan
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Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the Schwab 1000 Index ETF (SCHK), a passively managed exchange traded fund launched on 10/11/2017.
The fund is sponsored by Charles Schwab. It has amassed assets over $2.09 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.05%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.67%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 26.40% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.57% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 25.33% of total assets under management.
Performance and Risk
SCHK seeks to match the performance of the Schwab 1000 Index before fees and expenses. The Schwab 1000 Index is a float-adjusted market capitalization weighted index that includes the 1,000 largest stocks of publicly traded companies in the United States, with size being determined by market capitalization. The index is designed to be a measure of the performance of large- and mid-cap U.S. stocks.
The ETF has lost about -25.13% so far this year and is down about -19.94% in the last one year (as of 10/17/2022). In the past 52-week period, it has traded between $34.56 and $46.85.
The ETF has a beta of 1.02 and standard deviation of 24.57% for the trailing three-year period. With about 989 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab 1000 Index 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, SCHK is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $270.02 billion in assets, SPDR S&P 500 ETF has $327.85 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
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Schwab 1000 Index ETF (SCHK): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.57% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report It has amassed assets over $2.09 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.57% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report You should consider the Schwab 1000 Index ETF (SCHK), a passively managed exchange traded fund launched on 10/11/2017.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.57% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives Schwab 1000 Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.57% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report You should consider the Schwab 1000 Index ETF (SCHK), a passively managed exchange traded fund launched on 10/11/2017.
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18884.0
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2022-10-17 00:00:00 UTC
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2 Stocks to Watch From the Challenging Computer Industry
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AAPL
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https://www.nasdaq.com/articles/2-stocks-to-watch-from-the-challenging-computer-industry-0
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nan
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nan
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The Zacks Computer – Mini Computers industry is suffering from massive supply-chain and logistical issues, along with several pandemic-related and geopolitical challenges, including the ongoing Russia-Ukraine war. The declining demand for PCs has become another concern for industry participants. Nevertheless, strong demand for high-end laptops and smartphones, particularly the availability of 5G-supported iPhones, has been a key catalyst. The growing adoption of tablets like the iPad among enterprises bodes well for Apple AAPL. The launch of foldable, and AI and ML-infused smartphones, tablets, wearables and hearables is another major growth driver for the industry participants. Robust demand for production printers, materials and software bodes well for 3-D printing solutions provider 3D Systems DDD.
Industry Description
The Zacks Computer – Mini Computers industry comprises companies that offer smartphones, desktops, laptops, printers, wearables and 3-D printers. Such devices are based either on iOS, MacOS, iPadOS, WatchOS, Microsoft Windows, or Google Chrome and Android operating systems. They predominantly use processors from Apple, Intel, AMD, Qualcomm, NVIDIA and Samsung. Expanding screen size, better display and enhanced storage capabilities have been the key catalysts driving the rapid proliferation of smartphones. This has been well-supported by faster mobile processors. Laptops, both consumer and commercial, benefit from faster processors, sleek designs and expanded storage facilities. The addition of healthcare features has been driving the demand for wearables.
3 Mini Computer Industry Trends to Watch
Bring Your Own Device (BYOD) Aids Momentum: The industry is benefiting from the rapid adoption of BYOD in workplaces. Enterprises practicing BYOD allow employees to use their personal devices, including mobiles, laptops and tablets, for work purposes. BYOD helps connect remote workers and desk-bound employees, thereby improving process management and workflow. BYOD has proved more productive as it lowers training time. Moreover, the coronavirus-induced remote working and online learning models bode well for industry participants as demand is expected to increase for desktops and laptops.
Impressive Formfactor Drives Demand: Expanding screen size, better display and enhanced storage capabilities have been the key catalysts driving the rapid proliferation of smartphones and tablets. This has been well-supported by faster mobile processors from the likes of Qualcomm (Snapdragon-branded), NVIDIA (Tegra X1), Apple (A16 Bionic) and Samsung (Exynos 9609). Improved Internet penetration and speed, along with the evolution of mobile apps, have made smartphones indispensable for consumers. Improved graphics quality is making smartphones suitable for playing games like PUBG and Fortnite. This is expected to boost the demand for high-end smartphones and open up significant opportunities for device makers.
PCs Face Extinction Risk: Personal computers (desktops and laptops), be it Windows or Apple’s MacOS-based, have been facing the risk of extinction due to the rapid proliferation of smartphones and tablets. Stiff competition from smartphones has compelled global PC makers to not only upgrade hardware frequently but also add apps and cloud-based services to attract consumers. Nevertheless, the emergence of 5G, AI, machine learning and foldable computers is likely to be the key catalyst in expanding the total addressable market of PCs.
Zacks Industry Rank Indicates Dim Prospects
The Zacks Computer – Mini Computers industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #240, which places it in the bottom 4% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bearish near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
The industry’s position in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are pessimistic about this group’s earnings growth potential. Since Mar 31, 2022, the Zacks Consensus Estimate for this industry’s 2022 earnings has moved down 1.4%.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Outperforms Sector and S&P 500
The Zacks Computer – Mini Computers industry has outperformed the broader Zacks Computer and Technology sector as well as the S&P 500 index over the past year.
The industry has dropped 5.3% over this period compared with the S&P 500’s decline of 21.3% and the broader sector’s fall of 37.3%.
One-Year Price Performance
Industry's Current Valuation
On the basis of forward 12-month P/E, which is a commonly used multiple for valuing computer stocks, we see that the industry is currently trading at 20.7X compared with the S&P 500’s 15.5X and the sector’s 20.14X.
Over the last five years, the industry has traded as high as 32.32X, as low as 11.49X and at the median of 20.77X, as the chart below shows.
Forward 12-Month Price-to-Earnings (P/E) Ratio
2 Computer Stocks to Watch Right Now
Apple: This Zacks Rank #3 (Hold) company is benefiting from the continued momentum in the Services segment, driven by App Store, Cloud Services, Music, advertising and AppleCare. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Apple’s near-term prospects are driven by the launch of the latest iPhone models, with iPhone 14 Pro witnessing strong demand. Apple TV+ is gaining recognition due to award-winning shows. This bodes well for the Services segment.
Apple currently has more than 860 million paid subscribers across its Services portfolio. The App Store continues to draw the attention of prominent developers worldwide, helping it offer appealing new apps that drive App Store traffic. A growing number of AI-infused apps will attract more subscribers to the App Store.
The Zacks Consensus Estimate for fiscal 2022 earnings has been unchanged at $6.11 per share over the past 30 days. The stock has lost 22% year to date.
Price and Consensus: AAPL
3D Systems: This Zacks Rank #3 company is benefiting from strategic initiatives like the improvement of existing 3D printers, expanding partner base and enhancing productivity to drive growth.
3D Systems has implemented organizational changes to improve execution and increased investments as it shifts to a worldwide go-to-market structure. DDD plans to drive further reductions in the cost of sales from supply-chain betterment initiatives and manufacturing improvements in order to drive margins.
The Zacks Consensus Estimate for fiscal 2022 loss has widened by a penny to 26 cents per share over the past 30 days. Shares of 3D Systems have declined 63.1% year to date.
Price and Consensus: DDD
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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Apple Inc. (AAPL): Free Stock Analysis Report
3D Systems Corporation (DDD): 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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Price and Consensus: AAPL 3D Systems: This Zacks Rank #3 company is benefiting from strategic initiatives like the improvement of existing 3D printers, expanding partner base and enhancing productivity to drive growth. The growing adoption of tablets like the iPad among enterprises bodes well for Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report
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Price and Consensus: AAPL 3D Systems: This Zacks Rank #3 company is benefiting from strategic initiatives like the improvement of existing 3D printers, expanding partner base and enhancing productivity to drive growth. The growing adoption of tablets like the iPad among enterprises bodes well for Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report
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The growing adoption of tablets like the iPad among enterprises bodes well for Apple AAPL. Price and Consensus: AAPL 3D Systems: This Zacks Rank #3 company is benefiting from strategic initiatives like the improvement of existing 3D printers, expanding partner base and enhancing productivity to drive growth. Apple Inc. (AAPL): Free Stock Analysis Report
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Price and Consensus: AAPL 3D Systems: This Zacks Rank #3 company is benefiting from strategic initiatives like the improvement of existing 3D printers, expanding partner base and enhancing productivity to drive growth. The growing adoption of tablets like the iPad among enterprises bodes well for Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report
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18885.0
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2022-10-17 00:00:00 UTC
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Mercedes-Benz Adds Apple Music With Spatial Audio
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AAPL
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https://www.nasdaq.com/articles/mercedes-benz-adds-apple-music-with-spatial-audio
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(RTTNews) - Apple Inc. and German auto major Mercedes-Benz entered into a partnership to use Apple Music's premium immersive Spatial Audio in select vehicles.
Mercedes-Benz vehicles will be the first-ever non-Apple devices to feature immersive Spatial Audio with Dolby Atmos, the company noted. It comes fully integrated through the MBUX infotainment system.
Apple's superior, multidimensional soundscape is powered by the Burmester high-end 4D sound system.
The Spatial Audio system includes 31 speakers, including six 3D speakers that emit their sound from above, four near-ear speakers in the front seats, and an 18.5-liter subwoofer. There are also eight sound transducers, two amplifiers, and 1,750 watts of power.
Spatial Audio with support for Dolby Atmos is now available for customers worldwide as a native experience in Mercedes-Benz vehicles for the first time. The system will be available in Mercedes-Maybach models, the EQS and EQS SUV, as well as the EQE and the S-Class, offering studio-quality sound for in-car entertainment.
The limited edition Mercedes-Maybach by Virgil Abloh released to consumers last month was one of the first cars in the world to have Apple's superior, multidimensional soundscape. It was also the first model in the Mercedes-Benz lineup with the system.
The technology will be rolled out to other models soon.
Mercedes-Benz drivers who already subscribed to Apple Music gain immediate access to vast number of songs and albums available in Spatial Audio. Apple Music also offers curated Spatial Audio playlists.
In addition, subscribers can access Apple Music's entire catalog of 100 million songs, thousands of editorially curated playlists, daily selections, and more.
Oliver Schusser, Apple's vice president of Apple Music and Beats, said, "Spatial Audio is revolutionizing the way artists create and fans listen to music, and it's an experience that is impossible to explain in words; you have to hear it for yourself to appreciate it. Together with Mercedes-Benz, we now have even more opportunities to bring wholly immersive music to our subscribers all over the world."
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Mercedes-Benz vehicles will be the first-ever non-Apple devices to feature immersive Spatial Audio with Dolby Atmos, the company noted. The limited edition Mercedes-Maybach by Virgil Abloh released to consumers last month was one of the first cars in the world to have Apple's superior, multidimensional soundscape. In addition, subscribers can access Apple Music's entire catalog of 100 million songs, thousands of editorially curated playlists, daily selections, and more.
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(RTTNews) - Apple Inc. and German auto major Mercedes-Benz entered into a partnership to use Apple Music's premium immersive Spatial Audio in select vehicles. The Spatial Audio system includes 31 speakers, including six 3D speakers that emit their sound from above, four near-ear speakers in the front seats, and an 18.5-liter subwoofer. Apple Music also offers curated Spatial Audio playlists.
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(RTTNews) - Apple Inc. and German auto major Mercedes-Benz entered into a partnership to use Apple Music's premium immersive Spatial Audio in select vehicles. Mercedes-Benz drivers who already subscribed to Apple Music gain immediate access to vast number of songs and albums available in Spatial Audio. Oliver Schusser, Apple's vice president of Apple Music and Beats, said, "Spatial Audio is revolutionizing the way artists create and fans listen to music, and it's an experience that is impossible to explain in words; you have to hear it for yourself to appreciate it.
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(RTTNews) - Apple Inc. and German auto major Mercedes-Benz entered into a partnership to use Apple Music's premium immersive Spatial Audio in select vehicles. Apple's superior, multidimensional soundscape is powered by the Burmester high-end 4D sound system. Apple Music also offers curated Spatial Audio playlists.
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2022-10-17 00:00:00 UTC
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Is Invesco Dynamic Large Cap Growth ETF (PWB) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-invesco-dynamic-large-cap-growth-etf-pwb-a-strong-etf-right-now-3
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Launched on 03/03/2005, the Invesco Dynamic Large Cap Growth ETF (PWB) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Growth 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.
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.
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.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $505.78 million, this makes it one of the average sized ETFs in the Style Box - Large Cap Growth. PWB is managed by Invesco. This particular fund, before fees and expenses, seeks to match the performance of the Dynamic Large Cap Growth Intellidex Index.
The Dynamic Large Cap Growth Intellidex Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure.
Cost & Other Expenses
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.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.56%.
It has a 12-month trailing dividend yield of 0.13%.
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.
This ETF has heaviest allocation in the Information Technology sector - about 48.80% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Taking into account individual holdings, Tesla Inc (TSLA) accounts for about 4.25% of the fund's total assets, followed by Costco Wholesale Corp (COST) and Apple Inc (AAPL).
PWB's top 10 holdings account for about 35.17% of its total assets under management.
Performance and Risk
The ETF has lost about -30.31% so far this year and is down about -25.33% in the last one year (as of 10/17/2022). In the past 52-week period, it has traded between $56.26 and $82.12.
The fund has a beta of 1 and standard deviation of 27.57% for the trailing three-year period, which makes PWB a medium risk choice in this particular space. With about 51 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Dynamic Large Cap Growth ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
Vanguard Growth ETF (VUG) tracks CRSP U.S. Large Cap Growth Index and the Invesco QQQ (QQQ) tracks NASDAQ-100 Index. Vanguard Growth ETF has $64.66 billion in assets, Invesco QQQ has $143.47 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
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 Growth.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Invesco Dynamic Large Cap Growth ETF (PWB): ETF Research Reports
Apple Inc. (AAPL): Free Stock Analysis Report
Costco Wholesale Corporation (COST): Free Stock Analysis Report
Tesla, Inc. (TSLA): Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taking into account individual holdings, Tesla Inc (TSLA) accounts for about 4.25% of the fund's total assets, followed by Costco Wholesale Corp (COST) and Apple Inc (AAPL). 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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Taking into account individual holdings, Tesla Inc (TSLA) accounts for about 4.25% of the fund's total assets, followed by Costco Wholesale Corp (COST) and Apple Inc (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 03/03/2005, the Invesco Dynamic Large Cap Growth ETF (PWB) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Growth category of the market.
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Taking into account individual holdings, Tesla Inc (TSLA) accounts for about 4.25% of the fund's total assets, followed by Costco Wholesale Corp (COST) and Apple Inc (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 03/03/2005, the Invesco Dynamic Large Cap Growth ETF (PWB) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Growth category of the market.
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Taking into account individual holdings, Tesla Inc (TSLA) accounts for about 4.25% of the fund's total assets, followed by Costco Wholesale Corp (COST) and Apple Inc (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 03/03/2005, the Invesco Dynamic Large Cap Growth ETF (PWB) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Growth category of the market.
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18887.0
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2022-10-17 00:00:00 UTC
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US STOCKS-Wall Street set to open higher as BofA rises on earnings beat
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-set-to-open-higher-as-bofa-rises-on-earnings-beat
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By Ankika Biswas
Oct 17 (Reuters) - U.S. stock indexes were set to rise on Monday as Bank of America led gains among lenders after better-than-expected results that were underpinned by the Federal Reserve's rapid rate hikes.
Bank of America Corp BAC.N rose 2.8% in premarket trading as the lender benefited from higher net interest income in its third quarter, even though it added $378 million to its loan-loss reserves.
"BAC benefited from a higher interest rate environment in both the yields on the newly issued loans and just the growth of the number of depositors," said Siddharth Singhai, chief investment officer of New York-based investment firm Ironhold Capital.
"This is a direct result of higher interest rates offered by the banks looking very attractive compared to other risk assets. Lending will slow down quite a bit over the upcoming quarters, so a better reserve ratio would buttress them from a huge drop in demand."
Bank of NY Mellon Corp BK.Nalso benefited from higher rates, sending its shares up 4.7%.
Overall, higher rates boosted interest incomes for lenders in the third quarter but turbulent markets choked off dealmaking and banks set aside more funds to brace for an economic slowdown.
Shares of Goldman Sachs GS.N, which will post results on Tuesday, were up 1.5%, following reports of a plan to combine its investment banking and trading businesses.
Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O added over 1% each as the yield on U.S. 10-year bonds US10YT=RR retreated from multi-year highs. US/
Tesla Inc TSLA.O, Netflix NFLX.O and Johnson & Johnson JNJ.N are also expected to report results later in the week.
Analysts now expect profit for S&P 500 companies to have risen just 3.6% from a year ago, much lower than an 11.1% increase expected at the start of July, according to Refinitiv data.
At 8:33 a.m. ET, Dow e-minis 1YMcv1 were up 311 points, or 1.05%, S&P 500 e-minis EScv1 were up 47 points, or 1.31%, and Nasdaq 100 e-minis NQcv1 were up 177.5 points, or 1.65%.
The S&P 500 .SPX and the Nasdaq .IXIC marked their fourth weekly loss in five on Friday, after data showed little signs that inflation was cooling, prompting traders to start pricing in the possibility of a 1% hike by the Federal Reserve at its November rate-setting meeting.
Fox News parent Fox Corp FOXA.O slipped 5.6% after Rupert Murdoch started a process that could reunite his media empire, News Corp NWSA.O and Fox disclosed on Friday, a decade after the companies split. Shares of News Corp gained 5.4%.
(Reporting by Ankika Biswas and Shreyashi Sanyal in Bengaluru; Additional reporting by Bansari Mayur Kamdar; Editing by Anil D'Silva, Arun Koyyur and Saumyadeb Chakrabarty)
((Ankika.Biswas@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O added over 1% each as the yield on U.S. 10-year bonds US10YT=RR retreated from multi-year highs. By Ankika Biswas Oct 17 (Reuters) - U.S. stock indexes were set to rise on Monday as Bank of America led gains among lenders after better-than-expected results that were underpinned by the Federal Reserve's rapid rate hikes. Overall, higher rates boosted interest incomes for lenders in the third quarter but turbulent markets choked off dealmaking and banks set aside more funds to brace for an economic slowdown.
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Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O added over 1% each as the yield on U.S. 10-year bonds US10YT=RR retreated from multi-year highs. By Ankika Biswas Oct 17 (Reuters) - U.S. stock indexes were set to rise on Monday as Bank of America led gains among lenders after better-than-expected results that were underpinned by the Federal Reserve's rapid rate hikes. Bank of America Corp BAC.N rose 2.8% in premarket trading as the lender benefited from higher net interest income in its third quarter, even though it added $378 million to its loan-loss reserves.
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Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O added over 1% each as the yield on U.S. 10-year bonds US10YT=RR retreated from multi-year highs. By Ankika Biswas Oct 17 (Reuters) - U.S. stock indexes were set to rise on Monday as Bank of America led gains among lenders after better-than-expected results that were underpinned by the Federal Reserve's rapid rate hikes. Bank of America Corp BAC.N rose 2.8% in premarket trading as the lender benefited from higher net interest income in its third quarter, even though it added $378 million to its loan-loss reserves.
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Major megacap growth stocks like Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com AMZN.O and Tesla Inc TSLA.O added over 1% each as the yield on U.S. 10-year bonds US10YT=RR retreated from multi-year highs. Bank of NY Mellon Corp BK.Nalso benefited from higher rates, sending its shares up 4.7%. Overall, higher rates boosted interest incomes for lenders in the third quarter but turbulent markets choked off dealmaking and banks set aside more funds to brace for an economic slowdown.
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18888.0
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2022-10-16 00:00:00 UTC
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Why Occidental Petroleum Could Be Warren Buffett's Next Apple
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AAPL
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https://www.nasdaq.com/articles/why-occidental-petroleum-could-be-warren-buffetts-next-apple
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At 92 and 86 years of age, respectively, Warren Buffett and Carl Icahn are two of the greatest living investors -- and both are still at it!
In fact, these two seniors have been quite active this year, especially around oil giant Occidental Petroleum (NYSE: OXY). After Russia's invasion of Ukraine, Icahn sold his stake in the company, which he had held since 2019. On the flip side, Warren Buffett has been buying Occidental shares hand over fist throughout the year, scooping up over 20% of the American oil driller.
So which famous investor is right? Well, Buffett buying from Icahn has actually happened once before, with a small company you may have heard of called Apple (NASDAQ: AAPL).
Judging from that experience, Buffett could do very, very well with Occidental.
Apple's buyback is a result of Icahn activism
Carl Icahn is what is known as an activist investor. Activists buy shares in a company that is valued cheaply, due to something the investor perceives as a mistake or flaw. An activist usually purchases a meaningful position, then privately and publicly advocates for changes to unlock value.
Icahn took his first position in Apple in late 2013, when Apple was trading rather cheaply and had a ton of cash on its balance sheet. In January 2014, Icahn wrote a letter to the board and met with CEO Tim Cook, advocating that Apple begin returning that cash to shareholders in the form of share repurchases.
Buying back stock at a low valuation can add a lot of value to shareholders, but Apple had hoarded cash even as its iPhone sales grew massively in the early 2010s. That caution stemmed from Apple's more tumultuous past, when it nearly went bankrupt in the late 1990s.
Apple had already begun paying a small dividend, but did eventually implement a large buyback, as Icahn requested, in 2014 and 2015. In 2015, Apple also had a particularly good sales year, a result of its high growth in China. That year also included the introduction of the Apple Watch.
Yet after a boom in 2015, 2016 saw a slowdown, with the volatile China market giving back some its big 2015 gains. Icahn dumped his Apple stake, saying he was "worried about China." But he had already made a $2 billion profit on a $3.2 billion investment.
Buffett swoops in
Of course, that very downturn was when Warren Buffett began buying Apple for Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) portfolio. As Buffett watchers know by now, Buffett made even bigger gains than Icahn. Over the five years though 2021, Buffett's investment in Apple went up more than fivefold, and became Buffett's greatest investment in terms of overall dollar returns.
Buffett likely identified Apple not only as a cheap stock amid the pessimism of 2016, but also as a powerful brand with huge customer loyalty. With the smartphone becoming such an important part of people's lives, it was also becoming "expensive real estate." At that time, Apple was also extending its brand to services, charging fees to third-party apps for access to that real estate.
Buffett probably liked the recurring nature of Apple's service and app store fees that it could extract from both iPhone owners and businesses looking to gain access to those masses of affluent consumers.
When you combine that with Apple's newfound improved capital allocation to shareholders, the investment seems like a no-brainer in retrospect.
So while Icahn saw a good but flawed business he could improve and then exit for a quick profit, Buffett likely saw a now-flawlessly run business (after Icahn's fixes) that he could own for the long haul.
Image source: Getty Images.
Is the same thing happening with Occidental?
Turning to Occidental, Icahn bought shares in the company after its expensive $38 billion acquisition of Anadarko Petroleum back in May 2019. Shares plunged, as investors believed Occidental paid too much in a bidding war.
Icahn bought shares, accused management of making a terrible acquisition, and advocated firing CEO Vicki Hollub while demanding seats on the board of directors. When oil prices plunged in March of 2020 as COVID-19 spread, Icahn increased his stake and therefore his heft in the company.
Eventually, Icahn struck a deal, allowing him to put two of his deputies and another hand-picked executive on the board, while also bringing in former CEO Stephen Chazen to become executive chairman. The new board also formed a committee that would oversee any acquisitions, putting a check on Gollub's power, while also exploring a sale of the company to another oil major.
Eventually, the oil market recovered strongly from the pandemic downturn, as demand normalized after a year of big industry supply cuts. When Russia invaded Ukraine, oil spiked, as did Occidental's stock, and Icahn exited the investment with a handsome $1 billion in profits, along with another $500 million gain in Occidental warrants.
Once again, Buffett thinks longer term
While Buffett hasn't spoken much publicly this year on his Occidental buys, he likely has a bullish view of the oil market for the long term, while also appreciating Occidental specifically. Berkshire had already invested in Occidental in 2019 in the form of preferred stock to finance the Anadarko deal, but that was a safer fixed-income investment, albeit with warrants. So Buffett likely got to know management well during that time.
Yet no oil company can do really well without the price of oil and natural gas cooperating, and Buffett probably sees higher prices for longer in the oil market. That's likely for a number of reasons, including years of underinvestment in oil and gas exploration, U.S. shale companies consolidating and controlling their supply growth, and Russia's weaponizing of global energy markets.
In other words, Buffett is betting on a change from low to high oil prices, not dissimilar to the smartphone transitioning from mere gadget to an indispensable part of our daily lives.
Both approaches can win, but nonprofessionals can only play one
As you can see, both investors have different approaches. Icahn identifies cheap companies, then uses his financial heft and reputation to advocate for changes. After such changes are made and the investment improves, he usually exits, using the relatively quick profits to go on to the next special situation.
In contrast, Buffett tries to find quality stocks trading at cheap prices that he can hold for the long term, allowing the miracle of compounding to do its work.
While only institutional investors or incredibly wealthy individuals like Icahn can buy enough stock in a company to be an activist, any investor can attempt Buffett's more Foolish approach of long-term investing in excellent companies. Fortunately for us, that approach also tends to yield even more long-term profits, if done correctly.
But excellent companies don't often go on sale. It's interesting that in the situations of both Apple and Occidental, Icahn was able to improve capital allocation at an otherwise well-run business. Icahn even praised Occidental's land inventory and management's operational capabilities, even while advocating for changes.
Those changes likely made Buffett more comfortable in the compounding ability of each stock, and he probably identified these improvements as more permanent before the market did.
So why doesn't Icahn hold on to his "fixed companies" for the long term, as Buffett does? Icahn appears to idealize the strategy of activism and improving companies, almost irrespective of profit. In order to continue launching new campaigns, Icahn needs to continue recycling his older bets in order to bid for new targets. So Icahn exiting a stock might not mean he feels the stock is now a bad investment, it's just that his work is now done.
We'll see how Occidental fares in the future, but since buying a "fixed up" Apple worked out so well for Buffett last time, you have to like his odds with Occidental -- as long as the thesis of higher oil prices for a longer time proves true.
10 stocks we like better than Occidental Petroleum
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*Stock Advisor returns as of September 30, 2022
Billy Duberstein has positions in Apple and Berkshire Hathaway (B shares) and has the following options: short January 2023 $210 calls on Apple. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Well, Buffett buying from Icahn has actually happened once before, with a small company you may have heard of called Apple (NASDAQ: AAPL). In January 2014, Icahn wrote a letter to the board and met with CEO Tim Cook, advocating that Apple begin returning that cash to shareholders in the form of share repurchases. That's likely for a number of reasons, including years of underinvestment in oil and gas exploration, U.S. shale companies consolidating and controlling their supply growth, and Russia's weaponizing of global energy markets.
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Well, Buffett buying from Icahn has actually happened once before, with a small company you may have heard of called Apple (NASDAQ: AAPL). Buffett swoops in Of course, that very downturn was when Warren Buffett began buying Apple for Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) portfolio. Turning to Occidental, Icahn bought shares in the company after its expensive $38 billion acquisition of Anadarko Petroleum back in May 2019.
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Well, Buffett buying from Icahn has actually happened once before, with a small company you may have heard of called Apple (NASDAQ: AAPL). Once again, Buffett thinks longer term While Buffett hasn't spoken much publicly this year on his Occidental buys, he likely has a bullish view of the oil market for the long term, while also appreciating Occidental specifically. While only institutional investors or incredibly wealthy individuals like Icahn can buy enough stock in a company to be an activist, any investor can attempt Buffett's more Foolish approach of long-term investing in excellent companies.
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Well, Buffett buying from Icahn has actually happened once before, with a small company you may have heard of called Apple (NASDAQ: AAPL). Turning to Occidental, Icahn bought shares in the company after its expensive $38 billion acquisition of Anadarko Petroleum back in May 2019. Once again, Buffett thinks longer term While Buffett hasn't spoken much publicly this year on his Occidental buys, he likely has a bullish view of the oil market for the long term, while also appreciating Occidental specifically.
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18889.0
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2022-10-16 00:00:00 UTC
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$5,000 Invested in These Growth Stocks Could Make You Rich Over the Next 10 Years
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https://www.nasdaq.com/articles/%245000-invested-in-these-growth-stocks-could-make-you-rich-over-the-next-10-years
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The new inflation numbers that just dropped certainly have the markets worried about the depth of the recession we could be facing. With the S&P 500 index firmly in bear market territory, down 25% year-to-date, investors are rightly nervous about what it means for stocks.
Yet, history shows that bull markets always follow these corrections. And whereas bear markets are measured in months, bull markets are measured in years. That means sharp downturns are actually the best time to buy stocks for the long-term returns generated for your portfolio.
Image source: Getty Images.
As Warren Buffett once said, be fearful when others are greedy, and greedy when others are fearful. As long as investors have an appropriate investment horizon -- 10 years is usually good -- they should not fear bear markets, but look forward to them eagerly as a chance to buy good companies at discounted prices.
If you have $5,000 available, the following two growth stocks are excellent companies to own for years to come.
Apple
Apple (NASDAQ: AAPL) stock is down 22% in 2022 as investors worry about the economy's impact on consumer spending habits. It's estimated that App Store sales fell 5% in September, their biggest decline ever, and they are down 2% for the quarter. While that creates near-term headwinds, there is still strong demand for higher-priced iPhone 14 models, and a Piper Sandler survey of teens says Apple's share of the smartphone market remains near record highs.
One short-term catalyst is Apple's $90 million stock buyback program, which should help support any earnings weakness. And over the long haul Apple continues striving to introduce new products, such as virtual reality headsets and the long-awaited Apple Car, which it would like to bring to market by 2025.
While some services like the App Store may see lower revenue in the coming quarters, others like iCloud, AppleCare, and even music ought to keep growing. Product sales are stable too, and because Apple has been able to keep its premium pricing intact as demand maintains its upward trajectory, the macroeconomic pressures on the company won't be as great as they will be on its lower-end rivals.
Investors might also take comfort in knowing that buying Apple stock at these prices means they will be buying the tech giant at prices cheaper than Warren Buffett got when he made the company 41% of Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) portfolio.
Costco
Another stock buffeted by consumer spending worries is Costco (NASDAQ: COST), whose stock is down 18% this year, and fell again last month despite reporting financial results that beat Wall Street expectations.
Inflation is taking its toll, with September's numbers coming in hotter than expected. Particularly in the pocketbook items that matter most to consumers -- food and fuel -- inflation is even higher than the headline print. Utility gas is up 33% over last year, eggs are 30% higher, gas prices are up 18%, chicken 17%, coffee and milk 15% higher, and so on.
Costco has chosen not to raise its membership fees at this time, much to the consternation of some, but that is actually helping drive shoppers to its warehouse clubs and helping to grow sales by double-digit rates. Comparable store sales growth dipped to 8.5% in September, the first time in 28 months they were below 10% (they were still up over 11% in the U.S.). It proves bulk buying of goods is a smart choice in this high-cost period, even if it doesn't fully insulate the retailer from the ravages of inflation. Gross margins, for example, were 10.5%, down from 11.1%, in fiscal 2021.
However, memberships remain a source of strength for Costco, and consumers are still flocking to the warehouse club. It ended its fiscal fourth quarter last month with 118.9 million cardholders, of which 53.1 million were household members, up 6.5% from last year.
While the economy can always get worse, Costco's results show the soundness and stability of its business model. It should carry the retailer through the tough times, which makes its stock a solid choice for an investor willing to buy and hold for the long haul.
10 stocks we like better than Apple
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*Stock Advisor returns as of September 30, 2022
Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and Costco Wholesale. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) stock is down 22% in 2022 as investors worry about the economy's impact on consumer spending habits. While that creates near-term headwinds, there is still strong demand for higher-priced iPhone 14 models, and a Piper Sandler survey of teens says Apple's share of the smartphone market remains near record highs. Product sales are stable too, and because Apple has been able to keep its premium pricing intact as demand maintains its upward trajectory, the macroeconomic pressures on the company won't be as great as they will be on its lower-end rivals.
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Apple Apple (NASDAQ: AAPL) stock is down 22% in 2022 as investors worry about the economy's impact on consumer spending habits. And whereas bear markets are measured in months, bull markets are measured in years. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and Costco Wholesale.
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Apple Apple (NASDAQ: AAPL) stock is down 22% in 2022 as investors worry about the economy's impact on consumer spending habits. Investors might also take comfort in knowing that buying Apple stock at these prices means they will be buying the tech giant at prices cheaper than Warren Buffett got when he made the company 41% of Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) portfolio. Costco Another stock buffeted by consumer spending worries is Costco (NASDAQ: COST), whose stock is down 18% this year, and fell again last month despite reporting financial results that beat Wall Street expectations.
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Apple Apple (NASDAQ: AAPL) stock is down 22% in 2022 as investors worry about the economy's impact on consumer spending habits. As long as investors have an appropriate investment horizon -- 10 years is usually good -- they should not fear bear markets, but look forward to them eagerly as a chance to buy good companies at discounted prices. That's right -- they think these 10 stocks are even better buys.
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18890.0
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2022-10-16 00:00:00 UTC
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5 Stocks That Turned a $10,000 Investment Into $1 Million
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https://www.nasdaq.com/articles/5-stocks-that-turned-a-%2410000-investment-into-%241-million
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If there were a reliable way to predict which growth stocks are on their way to hundredfold returns, we'd all be millionaires already. Most of our portfolios are considerably less than $1 million because there just isn't a discernable combination of factors that allows us to predict monster-sized gains with complete accuracy.
Picking stocks that can win big over the long run will never be an exact science. That said, there are some important lessons all of us can learn from millionaire-maker stocks like these.
COMPANY (SYMBOL) IPO YEAR TOTAL RETURN SINCE IPO RECENT VALUE OF $10,000 INVESTED
Amazon (NASDAQ: AMZN) 1997 115,200% $11.5 million
Nvidia (NASDAQ: NVDA) 1999 30,440% $2.8 million
Apple (NASDAQ: AAPL) 1980 138,200% $13.83 million
Netflix (NASDAQ: NFLX) 2002 18,360% $1.8 million
Microsoft (NASDAQ: MSFT) 1986 369,800% $37.0 million
Data source: YCharts.
None of us are going to hit a bulls-eye every time, but we can improve our aim by learning some of the important lessons these stocks have taught us through the years.
Don't get rattled
The first and perhaps most important lesson we can learn from these millionaire-maker stocks is just how disastrous knee-jerk reactions to market meltdowns can be to your portfolio's long-term performance. For example, the biggest performer on this list, Microsoft, fell by more than half during the dot-com crash of 2000.
Microsoft had it easy compared to Amazon. Back in the early 2000s, shares of the e-commerce giant were beaten down more than 90% from the peak they reached in 1999.
There's an old saying that goes, "Nobody ever went broke taking a profit." This may be true, but investors who took a small profit on these stocks a couple of decades ago missed out on truly life-changing gains.
Image source: Getty Images.
How to stay confident
Saying you're going to hold a stock for the long run is easy when it's on the rise, but how do you avoid panic-selling when a stock tanks? With the benchmark S&P 500 index down 24.9% this year, discerning which businesses are likely to survive difficult conditions and thrive over the long run is more important than ever.
The best way to remain confident about the stocks in your portfolio is by choosing ones with durable competitive advantages. For example, Microsoft's dominance in the personal computer market during the 1990s led to a network effect that remains unshakable to this day.
Amazon's enormous fulfillment network has some excess capacity now. Its market-leading size, though, gives the company an advantage over would-be competitors such as Shopify. It's going to be a long time before anyone can match the speed and reliability Amazon's customers and its merchant partners have come to expect.
Apple's ubiquitous devices give the company a network effect that it's leveraging to diversify its revenue stream. Only a handful of companies in the U.S. have the means to launch a successful streaming service. Apple doesn't share subscriber numbers, but JustWatch measured a 6% share for Apple TV+ during the second quarter.
Stocks to buy now?
Netflix is far and away the smallest of these companies, with a market capitalization of $95.7 billion. From this starting point, the company needs to grow to more than $9 trillion in order to turn a $10,000 investment into $1 million. Unfortunately, the rapid proliferation of streaming services is making it hard to grow at all. With this in mind, this probably isn't the best time to buy Netflix stock.
With a market capitalization that has already swelled past $2.2 trillion, it's hard to imagine a $10,000 investment in Apple turning into $1 million. If you're looking for a stock that can beat the performance of the overall market over the long term, though, this looks like a smart one to buy now.
10 stocks we like better than Amazon
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Amazon wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 30, 2022
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Microsoft, Netflix, and Nvidia. 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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Amazon (NASDAQ: AMZN) 1997 115,200% $11.5 million Nvidia (NASDAQ: NVDA) 1999 30,440% $2.8 million Apple (NASDAQ: AAPL) 1980 138,200% $13.83 million Netflix (NASDAQ: NFLX) 2002 18,360% $1.8 million Microsoft (NASDAQ: MSFT) 1986 369,800% $37.0 million Data source: YCharts. Most of our portfolios are considerably less than $1 million because there just isn't a discernable combination of factors that allows us to predict monster-sized gains with complete accuracy. Don't get rattled The first and perhaps most important lesson we can learn from these millionaire-maker stocks is just how disastrous knee-jerk reactions to market meltdowns can be to your portfolio's long-term performance.
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Amazon (NASDAQ: AMZN) 1997 115,200% $11.5 million Nvidia (NASDAQ: NVDA) 1999 30,440% $2.8 million Apple (NASDAQ: AAPL) 1980 138,200% $13.83 million Netflix (NASDAQ: NFLX) 2002 18,360% $1.8 million Microsoft (NASDAQ: MSFT) 1986 369,800% $37.0 million Data source: YCharts. The Motley Fool has positions in and recommends Amazon, Apple, Microsoft, Netflix, and Nvidia. 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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Amazon (NASDAQ: AMZN) 1997 115,200% $11.5 million Nvidia (NASDAQ: NVDA) 1999 30,440% $2.8 million Apple (NASDAQ: AAPL) 1980 138,200% $13.83 million Netflix (NASDAQ: NFLX) 2002 18,360% $1.8 million Microsoft (NASDAQ: MSFT) 1986 369,800% $37.0 million Data source: YCharts. How to stay confident Saying you're going to hold a stock for the long run is easy when it's on the rise, but how do you avoid panic-selling when a stock tanks? 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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Amazon (NASDAQ: AMZN) 1997 115,200% $11.5 million Nvidia (NASDAQ: NVDA) 1999 30,440% $2.8 million Apple (NASDAQ: AAPL) 1980 138,200% $13.83 million Netflix (NASDAQ: NFLX) 2002 18,360% $1.8 million Microsoft (NASDAQ: MSFT) 1986 369,800% $37.0 million Data source: YCharts. With this in mind, this probably isn't the best time to buy Netflix stock. If you're looking for a stock that can beat the performance of the overall market over the long term, though, this looks like a smart one to buy now.
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18891.0
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2022-10-16 00:00:00 UTC
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I've Already Made 158% on Bitcoin. Here's Why I Keep Holding.
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https://www.nasdaq.com/articles/ive-already-made-158-on-bitcoin.-heres-why-i-keep-holding.
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I first purchased Bitcoin (CRYPTO: BTC) on April 24, 2020, when the price of one token was roughly $7,509. This means that my position has generated a return of 158% (as of Oct. 13) in about 2 1/2 years. That's impressive any way you look at it, and that figure has far outpaced popular stocks like Apple and Costco Wholesale.
Even with such an outstanding investment gain, especially when compared to the S&P 500's total return of 34% during the same period, I have no intention of selling my Bitcoin holdings anytime soon. Here's why.
Not a good time for risky assets
After hitting an all-time high of nearly $69,000 per token last November, Bitcoin has fallen 72% (as of this writing). This has followed the general negative trajectory of the overall stock market as well.
Inflation started to surge more than a year ago, and it hasn't abated. This has forced the Federal Reserve to hike interest rates to slow down rising prices across the U.S. economy. Investors have soured on risky assets in favor of safer ones, and this shift has hurt Bitcoin and the cryptocurrency market as a whole.
Tightening liquidity, coupled with a softening economic environment, might pave the way for a recession in the near future. Consequently, this could mean even more downward pressure on Bitcoin in the foreseeable future.
Maybe I would've looked smart in hindsight had I exited my Bitcoin position at its peak in November last year, but it's difficult to correctly time the market on a consistent basis or call the exact top. And sitting on a paper gain of 158% right now might encourage one to sell and take the profits. But this is not my approach.
Keep a long-term mindset
Despite its price decline, Bitcoin has still generated an incredible return of nearly 14,000% since the spring of 2013. And to be clear, I remain extremely bullish on the world's most valuable cryptocurrency over the next decade. This is why I remain a holder.
Bitcoin is being viewed by a growing number of market participants as a legitimate store of value, the equivalent of digital gold. But Bitcoin is more divisible, useful, and portable than gold. And these key characteristics could propel the cryptocurrency's current market cap of $371 billion, bringing it closer to the $12.5 trillion total value of gold worldwide. Supporting my argument here is the younger generations' increasing familiarity with and appreciation of all things digital, a trend that will only strengthen.
Large corporations, like Block and MicroStrategy, have allocated portions of their balance sheets to Bitcoin. And big-time institutional investors are getting in, too. Ark Invest, the investment firm headed by Cathie Wood, is extremely bullish on Bitcoin. Additionally, Coinbase recently signed a partnership with BlackRock giving the massive asset manager's clients easy access to Bitcoin. Rising investor demand, especially for a digitally scarce asset like Bitcoin, helps to support a higher price over time.
I know the path to greater Bitcoin adoption will be full of extreme volatility, just as it has been in the past. But as long as I maintain a very long-term time horizon, as I do with my entire portfolio, then I have no doubt that I'll be able to maintain my conviction and remain a Bitcoin holder.
10 stocks we like better than Bitcoin
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 Bitcoin 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
Neil Patel has positions in Apple, Bitcoin, Block, Inc., and Coinbase Global, Inc. The Motley Fool has positions in and recommends Apple, Bitcoin, Block, Inc., Coinbase Global, Inc., and Costco Wholesale. 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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Maybe I would've looked smart in hindsight had I exited my Bitcoin position at its peak in November last year, but it's difficult to correctly time the market on a consistent basis or call the exact top. And these key characteristics could propel the cryptocurrency's current market cap of $371 billion, bringing it closer to the $12.5 trillion total value of gold worldwide. Additionally, Coinbase recently signed a partnership with BlackRock giving the massive asset manager's clients easy access to Bitcoin.
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See the 10 stocks *Stock Advisor returns as of September 30, 2022 Neil Patel has positions in Apple, Bitcoin, Block, Inc., and Coinbase Global, Inc. The Motley Fool has positions in and recommends Apple, Bitcoin, Block, Inc., Coinbase Global, Inc., and Costco Wholesale. 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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Rising investor demand, especially for a digitally scarce asset like Bitcoin, helps to support a higher price over time. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Neil Patel has positions in Apple, Bitcoin, Block, Inc., and Coinbase Global, Inc. The Motley Fool has positions in and recommends Apple, Bitcoin, Block, Inc., Coinbase Global, Inc., and Costco Wholesale.
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This means that my position has generated a return of 158% (as of Oct. 13) in about 2 1/2 years. Rising investor demand, especially for a digitally scarce asset like Bitcoin, helps to support a higher price over time. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Neil Patel has positions in Apple, Bitcoin, Block, Inc., and Coinbase Global, Inc.
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18892.0
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2022-10-15 00:00:00 UTC
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Apple Workers In Oklahoma City Win Union Election To Join CWA
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https://www.nasdaq.com/articles/apple-workers-in-oklahoma-city-win-union-election-to-join-cwa
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(RTTNews) - The Communications Workers of America or CWA said that a majority of retail workers at the Penn Square Apple store in Oklahoma City won their union election and will be represented by the CWA.
The Apple workers, known as Apple Retail Workers/CWA, are the second group of Apple retail workers to win union representation in the US. Apple Retail Union/CWA will represent Apple salespeople, genius admins, technicians, creatives, and operations specialists.
Apple retail workers in Atlanta filed for a union election in April 2022, becoming the first group of Apple workers in the U.S. to seek formal recognition.
CWA said that last week, the National Labor Relations Board or NLRB formally issued a complaint on the unfair labor practice charges brought by CWA against Apple for multiple federal labor law violations.
CWA noted that Apple Retail Union/CWA is waiting to hear from the NLRB on several unresolved unfair labor practice charges which accused the company of violating the National Labor Relations Act by requiring workers to listen to anti-union propaganda during mandatory meetings in Atlanta, as well as interrogating and threatening to withhold benefits from Penn Square Apple workers weeks before the union election.
The views and 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) - The Communications Workers of America or CWA said that a majority of retail workers at the Penn Square Apple store in Oklahoma City won their union election and will be represented by the CWA. Apple retail workers in Atlanta filed for a union election in April 2022, becoming the first group of Apple workers in the U.S. to seek formal recognition. CWA noted that Apple Retail Union/CWA is waiting to hear from the NLRB on several unresolved unfair labor practice charges which accused the company of violating the National Labor Relations Act by requiring workers to listen to anti-union propaganda during mandatory meetings in Atlanta, as well as interrogating and threatening to withhold benefits from Penn Square Apple workers weeks before the union election.
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The Apple workers, known as Apple Retail Workers/CWA, are the second group of Apple retail workers to win union representation in the US. CWA said that last week, the National Labor Relations Board or NLRB formally issued a complaint on the unfair labor practice charges brought by CWA against Apple for multiple federal labor law violations. CWA noted that Apple Retail Union/CWA is waiting to hear from the NLRB on several unresolved unfair labor practice charges which accused the company of violating the National Labor Relations Act by requiring workers to listen to anti-union propaganda during mandatory meetings in Atlanta, as well as interrogating and threatening to withhold benefits from Penn Square Apple workers weeks before the union election.
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The Apple workers, known as Apple Retail Workers/CWA, are the second group of Apple retail workers to win union representation in the US. CWA noted that Apple Retail Union/CWA is waiting to hear from the NLRB on several unresolved unfair labor practice charges which accused the company of violating the National Labor Relations Act by requiring workers to listen to anti-union propaganda during mandatory meetings in Atlanta, as well as interrogating and threatening to withhold benefits from Penn Square Apple workers weeks before the union election. The views and 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 workers, known as Apple Retail Workers/CWA, are the second group of Apple retail workers to win union representation in the US. Apple Retail Union/CWA will represent Apple salespeople, genius admins, technicians, creatives, and operations specialists. CWA noted that Apple Retail Union/CWA is waiting to hear from the NLRB on several unresolved unfair labor practice charges which accused the company of violating the National Labor Relations Act by requiring workers to listen to anti-union propaganda during mandatory meetings in Atlanta, as well as interrogating and threatening to withhold benefits from Penn Square Apple workers weeks before the union election.
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18893.0
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2022-10-15 00:00:00 UTC
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Market News From AMD, McCormick, Peloton, and More
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https://www.nasdaq.com/articles/market-news-from-amd-mccormick-peloton-and-more
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In this podcast, Motley Fool senior analysts Andy Cross and Jason Moser discuss:
AMD warning about lower revenue.
Constellation Brands posting a loss in the second quarter.
Apple looking to boost production in India.
Macy's gaining inventory insights from its own credit card data.
The latest from McCormick, Peloton, and more.
Malcolm Ethridge, host of The Tech Money Podcast, weighs in on prospects for more interest rate hikes, expectations for earnings season, why he's watching seasonal hiring, and the S&P 600.
Jason and Andy discuss the possibility of DraftKings signing an exclusive partnership with ESPN and share two stocks on their radar: Alphabet and Dream Finders Homes.
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 07, 2022.
Chris Hill: We've got the latest jobs report, retail, semiconductors, consumer goods, and breaking news in the world of sports business, Motley Fool money starts now.
... I'm Chris Hill, joining me in studio Motley Fool Senior Analysts, Jason Moser and Andy Cross. Good to see you both gentlemen.
Jason Moser: Hey, Chris.
Andy Cross: Hey, Chris.
Chris Hill: We've got the latest headlines from Wall Street. Malcolm Ethridge from the Tech Money Podcast is our guest, and as always, we've got a couple of stocks on our radar.
But we begin with the big macro. The U.S. economy added 263,000 jobs in September. It was the lowest monthly number of jobs added this year but still good enough to send the unemployment rate down to 3.5%. Markets were down on Friday, but, Andy, still positive for the week.
Andy Cross: Well, it's still a very tight labor market, obviously, Chris, with demand outstripping supply. That's showing up a little bit in wage growth. Wages were up 5%, a little bit lower than what they were last month. But still, I think that continues to give ammunition to the Federal Reserve.
This is the last job report they will have before they make their next announcement in early November. We still have an important inflation number to come out still. But more ammunition for them to continue to increase rates, and some of the stock movements we saw earlier this week after a very difficult September and third quarter was because of some of the excitement around the Fed not being quite as aggressive, or else they might not be so aggressive soon, and they might be able to either pause or, in fact, maybe even think about lowering rates. Now, the Federal Reserve has said no, we're not doing right here, we are sticking with our plan.
But this job report continued to show the strength in the job market, 263,000 jobs created on nonfarm payrolls, Chris, as you mentioned, versus 255 first of the estimate. That's down from 420,000 average per month for the entire year and down for August and July. We are seeing this slowing in that job growth, but still, it's pretty robust. Unemployment, as you mentioned, fell, at 3.5% versus 3.67%. We still have almost 6 million unemployed people and 10.1 million job openings in the month of August from that jobs report. Again down from July but again, it still shows this healthy labor market, healthy wage market.
We saw growth across lots of different industries, leisure and hospitality up more than 80,000. Healthcare up more than 60,000, now back to February 2020 levels. So the employment market continues to look good. That's showing the increase in wages, and that continues to show me that the Federal Reserve will stick with their plan of raising interest rates, the federal funds rates more than 75 basis points in November.
Chris Hill: Let's go to some company news shares of AMD fell more than 10% on Friday after the semiconductor company warned third-quarter revenue will be more than a billion dollars lower than originally expected. AMD says the PC market is weaker than they expected, and the announcements surprise some on Wall Street. Jason, were you surprised?
Jason Moser: No, I wasn't. I think anybody who has been paying attention would probably expect something like this. It was maybe a month ago or so where Nvidia did the same thing. We saw them preannounce, guide down, talk about challenges in the industry as supply chains are cramped, a lot of demand that's been pulled forward over the last couple of years has cooled off. If you remember, Nvidia, they guided down from an outlook of $8.1 billion to $6.7 billion. The magnitude is very similar. Now, Nvidia was tied to gaming, and AMD, as you mentioned, tied to PC. But nevertheless, it is an industry that right now is feeling some headwinds.
I think when you look back to mid-September, AMD had an investor presentation, management was even talking about back then that the PC market continued to track lower than they expected, they even use the word "messy." Typically they expect the second half of the year really to be more robust. We could see signs that this might have been coming down the pike here.
But regardless, it is something that is playing out here for short-term investors as opposed to long-term investors. I think it's difficult to invest in this sector because it's so cyclical, it can be so volatile. You have to endure these stretches.
I think my big question, really, and we're going to learn more about this when they announce earnings November 1st. They guided for full-year non-GAAP gross margins for around 54% a quarter ago. You got to believe that's going to change. Getting a better idea of what they see as far as the gross-margin picture for the full year. Some perspective on inventories. But the nice part, again, this is a very well-diversified business. They benefit from other markets including enterprise, gaming, the embedded market, which is something that the focus is on enterprises, both data centers. It's a nicely diversified business, but no doubt PC headwinds are going to play into this one over the next several quarters.
Chris Hill: Last month, McCormick released preliminary results for the third quarter, and this week, the spice maker issued the actual results. Andy, after we got the early release in September, not really a lot of surprises, but McCormick did indicate they expect pricing to improve in 2023.
Andy Cross: Pricing was actually mentioned 51 times on the conference call, Chris, which I think is a lot. But not unexpected. Mike Smith, the CFO, said, "We expect pricing to continue outpacing inflation into next year as we plan to fully offset inflation over time." You saw that a little bit start the pricing accelerated in the third quarter from earlier this year. Revenues were up 3.2%, the strong dollar hurt them as well. X the strong dollar revenues were up 6%, but they are up 10% on pricing, Chris, and down 2% in volume.
When you think about their consumer business, their flavor business, the pricing really matters, and they're starting to see that impact show up on, finally, into their products, into their revenues, and into their growth.
They did continue to emphasize that the next year will be a little bit tough on the sales and the earnings front. They reaffirmed that guidance of their sales to be up about 3% and operating income about 2%. EPS will be somewhere between $2.64 and $2.69. That's down from 2021 as they continue to put through some of their costs initiatives. They're going to plan to eliminate $100 million of cost going into 2023.
McCormick, you got stock at $72 down from $100, about $20 billion in market cap yield of 2%. Price to earnings and then mid-20 range, dividend growth rate of gosh, more than 9% over the last five years. I look at that and say, it's a pretty attractive price for a really good, stable business through the cycles.
Chris Hill: Constellation Brands posted a loss in the second quarter. The parent company of Corona beer and other wine and spirits brands did find with the alcohol part of the business, but constellations investment in Canopy Growth cannabis business dragged down the results and the stock, Jason.
Jason Moser: Yeah, a cannabis business you got to take the ultra-long view with that one. Constellations is interesting. It's not been the greatest investment over the last five years, total return close to 20%, but it's been a good one to own this year, a pretty defensive holding its outperformed the market even though it's down slightly.
I think, though, when you look at the merits of this business, really it boils down to the diversification in its portfolio. It's attacking this market from a number of different angles, not just beer, not just wine, but all three and they've made this move to focus more on premium in the wine and spirits division and that's paying off. The business performed really well, I think. Grew revenue 12% earnings, excluding the Canopy loss, came in at $3.33.
The beer business posted depletion growth of nearly 9%, and they continue to gain share. Remember that's brands like Modelo, Corona, Pacifico. That translated into 15% sales growth in the beer business, 25% growth in operating income. Wine and spirits treaded water for the quarter as they continue that shift to higher end, but still continuing to perform well. They witnessed a little challenge on the cost side of that business because it requires a little bit more, and it's a little bit more stretched out around the globe. As you mentioned, the Canopy side of the business, it just requires taking a much longer outlook, I guess.
They wrote down another $1.1 billion impairment there. But again, they estimate this to be a $25 billion market at the end of 2021, and it's expected to nearly double in size by 2026 as more states continue to legalize cannabis. I think if you look at the trend, it's hard to argue that that is not materializing. It's just a matter of watching the legal landscape shake out for this, and that's going to take time. When it does become a little bit more clear, it feels like Constellation is going to be in a good position to benefit. It's just a matter of hanging in there and letting it play out.
Chris Hill: Do you think there's any chance they just completely cut the Canopy Growth part of the business? Because Bill Newlands, the CEO, he was not running Constellation brands when they made that deal.
Jason Moser: It's distinctly possible. That was an acquisition they made really... I think they probably felt like it was going to materialize a little bit more quickly than it has. There has been a lot of enthusiasm and that industry that has abated since. But again, it does feel like the puck is headed in that direction. We're seeing that legal landscape change, albeit very slowly.
At this point, maybe they're feeling like, hey, you know what, we've got a strong brand in this space, we can hang on to and grow slowly ,and as it becomes more apparent the opportunities, then they'll be able to take advantage. But I guess we'll just have to wait and see.
Chris Hill: Apple may be looking for a new home for production, and one surprising retailer may have a key advantage heading into the holidays. More after the break, so stay right here. You're listening to Motley Fool Money.
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Chris Hill: Welcome back to Motley Fool Money. Chris Hill here in the studio with Andy Cross and Jason Moser.
The hits keep on coming for Peloton. The company is cutting another 12% of its workforce. CEO Barry McCarthy was hired earlier this year to turn the company around and told The Wall Street Journal in an interview this week, "There comes a point in time when we've either been successful or we have not." McCarthy indicated that point in time would be in about six months.
Andy, I got to be honest: the drama surrounding this company. I can't look away.
Andy Cross: Yeah, even this interviewing, Barry backed off a little bit of that. I liked CEO Barry McCarthy when he was at Netflix as a CFO. I think he did an admirable job there. But he certainly has some challenges ahead with Peloton. As you mentioned, Chris, this is the fourth round of cuts. That's going to leave them with about 3,800 employees, about where they were pre-COVID when the stock was at $30 and now it's at $8.
"With this announcement, the bulk of our restructuring work is complete," McCarthy said to employees. "The final building block is rightsizing our retail footprint." That will be next. Get the employee costs settled mostly and then right side the retail footprint, they'll close a bunch of stores next year.
The market cap is now $3 billion, and that's about $800,000 per employee in market cap versus employee, versus like great companies, Apple and the rest that are north of $10 million per employee. When you look at the last 12 months, they're at an operating loss of almost $1.5 billion, a massive loss in the last quarter. The number of fitness subscribers is stalled at 3.8 million. They have $1.2 million in cash on the balance sheet versus $1.5 million in long-term debt.
Really, rightsizing the storefront, rightsizing the employee base for a slowing business is what McCarthy was hired to do. He's doing it, and we'll have to see how it goes. The next thing could be a sale of that Precor business that they bought for $420 million in 2021. We will see how that plays out.
Chris Hill: One small silver lining, I think, for Peloton is the calendar shapes up nicely for them. If you just think about what is going to happen in the next six months. We're going to have the holidays, we're going to hit January when so many people naturally think in terms of their health and fitness. They have maybe the best opportunity in terms of the calendar, but I think come end of January, early February, all eyes are going to be on whether or not Peloton starts to explore strategic alternatives.
Andy Cross: I think past the holiday, they did structure a deal with Hilton to put the bikes in Hilton Hotels, and they have a new selling arrangement with Dick's Sporting Goods and Amazon. It's not like they're standing still. It's just that they're really facing the headwind that they did not have during the COVID pandemic.
Chris Hill: Multiple reports this week that Apple is moving some of its production from China to India. The company is not commenting yet, but if Apple has, in fact, started asking suppliers to make AirPods and Beats headphones in India as early as next year, Jason, that would lower the risk of the supply chain disruption that they've seen from China.
Jason Moser: Yeah, there's no question. It absolutely makes sense to diversify the supply chain. We've been talking about this risk in regard to myriad companies even before the last couple of years. Remember pre-COVID even, we were talking about supply chain risks in regard to China just because of trade issues. The companies from Home Depot to Wayfair and everywhere in between were talking about trying to figure out ways to diversify their supply chain away from China. This seems to be a very logical step. It makes a lot of sense.
At the current rate, when you look at the way things are right now, these are baby steps. Right now, you're looking at around $1.3 billion in iPhones that were exported from India. They were manufactured in India and exported last year. That's set to double this year to around $2.5 billion. To put that in terms of units, you're talking around $3 million in India versus around 230 million iPhones from China.
I'm sorry, did I say dollars in India?
Chris Hill: Yeah.
Jason Moser: Three million iPhones in India and 230 million iPhones in China. This is just one step, I think in a long, long process that will take many, many years to play out. But it does make a lot of sense. It's not about margin improvement. It's about a more reliable supply chain. I think that makes a lot of sense. You look at Apple, they've grown gross margin 5 percentage points over the last five years alone just on pricing. It's the strength of the brand and the offerings that they have, but they will be making more than just iPhones.
Like you said, Beats AirPods, this is going to be more and more products from Apple being made from India. India providing incentives for this to happen. What we will see, I'm sure, is more investment in India in the coming years and decades to build out their capacity and ability to actually manufacture that. Because I think they're going to be seen as an attractive partner for many companies beyond just Apple.
Chris Hill: Apple historically has not made a ton of acquisitions. It's worth remembering when they made the Beats acquisition, there were plenty of people scratching their heads, saying, "What are they doing? Why are they spending that money?" When you look at how the music part of their business has played out, another shrewd move.
Jason Moser: They seem to have a knack for it.
Chris Hill: We've talked recently on this show about the inventory problems facing businesses like Target and Nike, but one retailer who may be ahead of the competition is Macy's. The Wall Street Journal reported this week that Macy's credit card data from early in the year gave the company insights on shopping trends, enabling them to adjust their merchandise orders.
Andy, I got to be honest, I would not have bet on Macy's being the one to have this type of insight and adjust accordingly, but it seems like they are shaping up for a pretty good holiday season.
Andy Cross: Yeah, Chris. It's interesting, the CEO, Jeff Jeanette, said on the latest call, the improved use of data analytics enabled his leadership team really to respond quickly and adjust our inventory flow accordingly. They've implemented this Polaris strategy that allows them to really focus on inventory. Their inventory was up 7% last quarter versus the likes of 48% for Kohl's and 44% for Nike. Levi up 40%, Gap off 37%. The Macy's inventory to sales, like how much they have inventory to convert to sales is at some of their highest levels of the past decade.
This clearly is having an impact, and senior leadership started collaborating and working together, noticing the inventory management and their inventory position with all the data analytics they're starting to get from their own Macy's card, the co-branded card that their consumers use. So finance, supply chain, merchandising, planning, they all got together in January on a monthly basis and started really thinking about their inventory.
Now, they haven't been immune to it. They certainly had some stumbles, and they missed this and that, but they started to pivot back toward the back-to-work clothing spirit as opposed to the stay-at-home in the home goods. Using the data... I'm sure other companies are tied very closely to their data, but clearly, Macy's has something that's working out pretty well for them.
Chris Hill: Well, and we were talking before the show about how inventory is so difficult in retail, even under normal conditions, never mind a pandemic and global supply chain problems and all the rest.
Andy Cross: Yeah, and you're starting to see now all that work through and companies just focus, because it's pretty shocking I think and frankly maybe caught some investors a little bit by surprise on how much both the strength of the dollar as well as inflation as well as the inventory system has really caught companies behind and investors behind.
Of course, the more inventory build up, you got to pay for that inventory. Macy's, you have a stock at $17, it's less than a $5 billion market cap, has a strong yield, generates a lot of cash. The price-to-earnings ratio is in the single digits, but it seems to me to be a little bit of one of the deep value speculative plays, knowing that we're probably entering into a very tough buying environment.
Chris Hill: Jason Moser, Andy Cross, guys, we will see you later in the show.
Up next: Financial planner, Malcolm Ethridge shares why he's expecting more big rate hikes from the Fed and what it means for investors. Stay right here. This is Motley Fool Money.
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Welcome back to Motley Fool Money. I'm Chris Hill. Malcolm Ethridge is a certified financial planner, an executive with CIC Wealth, and host of the Tech Money Podcast. He joins me now. Malcolm, thanks for being here.
Malcolm Ethridge: Thanks for having me. I'm glad to be back.
Chris Hill: We are in the home stretch of 2022. As you and I are talking, the S&P 500 is down 21% year to date, the Nasdaq is down nearly 30%. I think when the history of 2022 is written for the stock market, one of the dominant storylines is going to be the Federal Reserve raising interest rates repeatedly, as they have throughout the year. They have another meeting in November and another one after that in December. You're expecting more rate hikes. Why?
Malcolm Ethridge: I'm expecting more rate hikes, for one reason, because it's literally the only card they have left to play. If you think about the handful of tools that are at the disposal of the Fed and their ability to affect our spending, basically the money supply, they don't have a ton that they can do. They've already stopped buying bonds and zapping liquidity out of the system. They've already raised interest rates to a point, which has done a good job, in my opinion, of reducing the froth that was out there. They made it more expensive to do frivolous things like do another cash-out refi for the third time in two years on my mortgage to take another $25,000 out to buy a Tesla. Or they've made it more expensive for me to go buy a car I don't necessarily need, but I want the newer model version of the car that I own.
They made it more expensive for me to borrow short term on my credit card for things that I don't necessarily need because the rate has gotten to, I don't know, 25% or something is the legal limit that they've pushed into. All of those things that really slow down and halt frivolousness -- I hate to say it that way, and it might be insulting to some people.
But for lack of a better term, and not staples; we're spending on discretionary items at that point. Those interest rate hikes have done that job to some degree. We won't know exactly how much yet, because interest for Fed policy usually takes a few months to actually work its way through the system and prove in the numbers. But I just don't think that there's anything that those rate hikes can do from this point on.
That said, I do think, because they've been so widely criticized and vilified almost by folks like Professor Siegel at Wharton, who are on TV on an every-other-day basis just lambasting, and just attacking, for lack of a better word, them in their policies and everything that they've done leading up to this. We had three rate cuts in 2019 that were unexplainable.
Mathematically, I know why they did it. It's because Powell gave into pressure from the president using his Twitter as the bully pulpit, and just decided to capitulate. But mathematically, there was no reason for those hikes, and I think this is them trying to make up for lost time and trying to make up for using words like "transient" for a year where we saw the writing on the wall. Now, they're going to overcorrect in trying to make sure that they don't miss the mark and under do it.
Chris Hill: Before we get into earnings season, which starts next week, you and I were talking during the break. The sentiment lately really has been as pessimistic as I've seen it, maybe since the Great Recession. I really think it's been more pessimistic for a longer period of time on Wall Street since late 2008, early 2009.
Malcolm Ethridge: Well, you know what my great uncle of absolutely zero relation, Warren Buffett, likes to say. It's that we should be greedy when others are fearful and fearful when others are greedy. I would say to your point, not quite. We might, in our conversation, say that we are just as pessimistic as we were in 2008, as we were in 2000, as we were in the crashes before that. But if you just take a look at the VIX, which is dubbed the Fear Index, and we look at 2008. I think the VIX got up into the '70s, if I'm not mistaken. If we look at 2020, the VIX got up into the mid-'60s. I think, '66 is where it topped out, if my memory serves correctly. Right now, the VIX is sitting just below 30.
We may be telling ourselves in conversation that we feel just as pessimistic as we did during those times because we just hate seeing it. But the reality is, we aren't halfway as pessimistic as we were on the markets at that moment in time. That may mean absolutely nothing going forward, but just from a mathematical perspective, I don't think we're there, and I don't think we're going to get there. Because if you think about what was happening, existential crisis in both of those periods, we're not there right now. We're just having an unhappy time because we're considering how good we felt the last couple of years, as far as the market was concerned. That's what we're using to anchor our comparison point.
Chris Hill: What, if anything, are you expecting out of the earning season that's going to start next week? And really kick into high gear in late October or early November.
Malcolm Ethridge: I expect it to be bad, plain and simple.
Chris Hill: Don't sugarcoat it, Malcolm. Tell me what you really think.
Malcolm Ethridge: I take the point that a lot of times folks who do what we do for a living will say about things being baked in. I generally refuse to believe that anything has ever baked into the stock market. I think that people will make knee-jerk reactions based on the news itself. There are people who will look at the rumor, buy the rumor, and sell the news. But most people will buy the rumor and buy the news or sell the rumor and sell the news. I don't see anything as being fully baked into this market.
I think what we're going to get is Q3 earnings that are bad. We expect them to be bad because like you said, pessimism is the feeling across all of Wall Street. But once we can assign math to just how bad, then folks will suddenly start to become more pessimistic and start selling again.
I think a lot of the reason for that is going to be blamed on, even if it's not true, it's going to be blamed on the currency exchange rate with our dollar index being at a 20-year-high, and being up 15 or so percent for the year. A lot of companies in the S&P 500, if not all of them, have some level of international exposure, and so them repatriating those dollars from sales they've made in those other countries against that strong dollar is going to have a serious weight on earnings.
I think that earnings season that we're two weeks out from is going to be the thing to really just crush the market and sentiment one more time. I'll be happy to be wrong, but I think that's what we're going to be looking at.
Chris Hill: To that extent, do you think that businesses that are primarily focused on the United States, should we expect more out of them? Businesses that, even if they have an international footprint, most of their money is made here in America. Is there the possibility that they surprise to the upside?
Malcolm Ethridge: Yeah. I think small caps are going to actually have their time to shine, at least over this next quarter. As folks rotate, they're trying to find a place to rotate away from large-cap multinational exposure and find a place that's less exposed to that strong dollar. Small caps, because just by nature don't have a ton of free cash to expand into multinational status, their profits are mostly going to come from here in the States. That's a way to play that without having to get out of the market completely or without having to go to cash.
Plus, if you just look at how oversold small caps are in comparison to the broader markets, the S&P 600, which I use simply because it's got a better quality mix, in my opinion, than the Russell 2000. If we just look at the S&P 600 being oversold, I think 7% or 8% more to this point, I haven't looked at this today so forgive me for being off by a few basis points. But we're more than 30 down there, and you just gave me, I think, 21 as where we are on the S&P. The difference there, I think, just tells us that we're overdue for a resurgence in the small-cap sector anyway, and I think this is how we get there.
Chris Hill: We're starting to get more color from large companies around seasonal hiring. Amazon came out earlier this week saying they're going to hire 150,000 seasonal workers. We've gotten 100,000 out of UPS and Target. Walmart, a much smaller number. But we're starting to fill in the pieces of the puzzle when it comes to holiday retail.
Is that anything you have expectations around, or are you waiting, maybe to see how Amazon's Prime event goes next week to give you a sense of what to expect? Because we're getting these competing forces, Malcolm. We're getting the surveys around consumer sentiment, which, if you take them at face value, people are concerned about inflation. They are ratcheting back their spending. And yet it also bumps up against large retailers, some of which have inventory they're looking to clear out. It's not unreasonable to expect that there're going to be some pretty big sales going into the end of this year.
Malcolm Ethridge: Well, let me say as a consumer, I am looking for those sales. I haven't quite found them yet. I heard Nike talking about an inventory glut in their last call, and it's not reflected online just yet. But as an investor, I will say I do expect the hiring numbers to be the canary in the coal mine, or the hiring expectations, I should say. Because I have started to hear that those numbers are coming in light in comparison to the last couple of years.
I think also, where I started this by saying that our access to easy money as consumers has dried up or is drying up is also what's making a difference in those retail numbers. Because if I can't pull another $25,000 out of my house, my refinancing at 3%, then Christmas isn't going to be as spectacular as it was the last couple of years.
Or if I can't use my Amex one more time to borrow, to purchase those gifts and things, again, Christmas just won't look the same. I think it definitely is going to make a difference. The fact that folks' access to that easy money is not there so much.
I do also think that retailers are already planning for this. I think not only are they hiring fewer people as far as their short-term holiday staff, they're also bringing in fewer goods, knowing that they're not going to have the same demand that they've enjoyed the last couple of years. Because I have to imagine, after two quarters of getting crushed and being surprised by inventory -- I'm doing air quotes here, but people can't quite hear me. You can't quite hear my air quotes -- but by being surprised as Doug McMillon and the CEO of Target, slips my brain for some reason.
Chris Hill: Brian Cornell.
Malcolm Ethridge: Brian Cornell. I think the third time fool me once, fool me twice. As George Bush said, "Fool me, can't get fooled again." I think, this third time, we're going to hear about them proactively controlling inventory and making sure that they're not overbuying. Even if they run out, because Black Friday is its usual Black Friday self, that's better than being stuck with inventory you can't move. I think that's already being built into their forecasting, and will be reflected in just lighter numbers from a profit perspective or from a revenue perspective, but that doesn't necessarily hurt them the same as over-inventory and having to liquidate.
Chris Hill: If you want to hear more, you can check out the Tech Money Podcast. You can find it wherever you get your podcasts. Add it to your list, give it a follow-up. Malcolm Ethridge, thank you so much for being here.
Malcolm Ethridge: Yeah. Man, always happy to sit back and talk markets with you.
Chris Hill: Coming up after the break, Jason Moser and Andy Cross are coming back. They've got a couple of stocks on their radar, so stay right here. You're listening to Motley Fool Money.
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As always, people on the program may have interest in the stocks they talk about and the Motley Fool may have formal recommendations for or against. Don't buy or sell stocks based solely on what you hear.
Welcome back to Motley Fool Money. Chris Hill here, once again in studio with Jason Moser and Andy Cross.
Before we get to the radar stocks, we have a late-breaking story. Shares of DraftKings moving higher on Friday on reports that the company is close to signing an exclusive partnership with ESPN. Terms of the deal are unknown at this point, but the partnership could be worth billions and include ESPN broadcasts being integrated with betting odds.
Jason, what do you think?
Jason Moser: I think it makes perfect sense that ESPN does not want to become a sportsbook. It's not what they do and they don't have the expertise in doing it, at least compared to the other companies in this market. I would say DraftKings needs this far more than the other way around. DraftKings' trailing 12-month revenue, $1.5 billion. Disney could pull that from under their couch cushions.
Now, ESPN's long-term strategy is direct to consumer, nonlinear. It's gonna be a slow haul to get there but it puts sports betting front and center, I think from that perspective, particularly when you consider mobile, so that makes a lot of sense.
ESPN could be seen, I think as a tremendous data and content engine as well. If you look at just some of the numbers involved here, DraftKings' average monthly unique payers, Chris, that's RP MUP. I'm not kidding. That's what it is. RT MUP is up to 1.5 million from 1.1 million a year ago. ESPN Plus just ended the quarter with 22.8 million paid subs. Then if you look at ESPN digital properties, they're bringing in around 120 million unique visitors on a monthly basis.
There's just a lot of potential, I think, here for a relationship. Again like I said, it makes sense that ESPN wouldn't want to actually be the book, because that puts a lot more risk on their table than they probably need to take.
Chris Hill: Neither company is commenting but Bob Chapek, CEO of Disney, has talked recently about the possibility of adding sports gambling to ESPN. If not DraftKings, I guess we shouldn't be surprised if someone strikes a deal with them.
Jason Moser: It's going to be something he seems like he wants to do it, just he wants to do it this way.
Chris Hill: Let's get to the stocks on our radar. Our man behind the glass, Rick Engdahl, is going to hit you with a question. Andy Cross, you're up first. What are you looking at this week?
Andy Cross: Guys, I'm looking at Dream Finders Homes, it's a $1 billion market cap, small-cap homebuilder focused in the Southeast, Colorado, Texas. It focuses on building entry-level first- and second-time buyer houses. It utilizes this asset-light model of buying lots rather than buying land, very much like another company, successful homebuilder, NVR, does. There's a significant need for new homes to accommodate the long-term demand trends. We have some estimates. We have a shortage of 4 million homes.
That's stock's at 11 down 42% market cap, like I mentioned, about a billion. They're going to probably close around 7,000 homes this year versus 4,800 homes last year. The growth is very rapid. They continue to improve their profitability now and they have a very large backlog.
Now, of course, guys, the risk with homebuilders is the recessions, rising interest rates, and then access to land to be able to build homes and in an environment of increasing regulation. That's why the stock sells at 2 times book value and a price-earnings ratio of 6 times, with earnings likely in the future going down. We're going to be challenged. That's why it's a watch list for me. I'm interested in the homebuilders because they've been so beaten up, but it's still just a watch list for me right now.
Chris Hill: And the ticker?
Andy Cross: DFH.
Chris Hill: Rick, question about Dream Finders Homes?
Rick Engdahl: Sure. As a small company building dream homes, do they have any official affiliation with Mattel?
Andy Cross: I don't think they do. Barbie is not a spokesperson, as far as I know. Patrick Zalupski, the founder and CEO, owns 65% of the company but I don't know if he's a fan of Barbie or not.
Chris Hill: I mean, it seems like an obvious celebrity endorsement opportunity right there.
Jason Moser, what are you looking at this week?
Jason Moser: Yeah. Going with Alphabet, a couple of tickers here, GOOG, that's the Class C with no vote, or you could go GOOGL, that's the Class A, that gives you a vote. Prices are pretty close together. I don't tend to pay for those votes. It doesn't matter anyway. I own the GOOG, personally.
Another strong performer. I think a business that everyone is already familiar with. The search tool alone with Google is just immensely valuable. Organizing the world's information, but it extends so far beyond that with things like Maps, Waze, entertainment, YouTube, and whatnot. This is just such a strong business from so many different directions.
I think something that is being overlooked today: Look for when its cloud services business starts hunting and operating profit. It's still losing money today. But that's by design. They are investing a ton of money in this because they see where the world is headed. Wants that happens, once that business starts turning in operating profit. That to me feels like a big tailwind that's just not fully accounted in the stock price today.
It's trading at around 20 times full-year estimates, that's around what the market is trading at today as well. This is a premium business. It deserves to trade at a premium multiple to the market. I think you take advantage of near-term pessimism in advertising today. This too shall pass. This is a stock you want to own for years.
Chris Hill: Rick, a question about Alphabet?
Rick Engdahl: If they're not inventing the metaverse or colonizing Mars, what does the world of tomorrow look like from the perspective of Alphabet?
Jason Moser: I don't know. But man, I'm going to tell you what: The metaverse is a maybe, right, social is fleeting, but like I say, Rick, search is forever.
Chris Hill: Two very different businesses. Rick, you got one you want to add to your watch list.
Rick Engdahl: Now, I guess got to add them both.
Chris Hill: Andy Cross, Jason Moser, guys. Thanks so much for being here.
Andy Cross: Thanks, Chris.
Chris Hill: That's it for this week's Motley Fool Money radio show. The show is mixed by Rick Engdahl. I'm Chris Hill. Thanks for listening. We'll see you next time.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Andy Cross has positions in Alphabet (A shares), Home Depot, Netflix, Nvidia, Target, and Tesla. Chris Hill has positions in Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Home Depot, McCormick, Nike, Nvidia, Target, and Walt Disney. Jason Moser has positions in Alphabet (C shares), Amazon, Apple, Home Depot, McCormick, Nike, Walt Disney, and Wayfair. Rick Engdahl has positions in Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Mattel, McCormick, Netflix, Nike, Nvidia, Peloton Interactive, Target, Tesla, and Walt Disney. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Constellation Brands, Dream Finders Homes, Inc., Home Depot, NVR, Netflix, Nike, Nvidia, Peloton Interactive, Target, Tesla, Walmart Inc., and Walt Disney. The Motley Fool recommends McCormick and Wayfair and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company is not commenting yet, but if Apple has, in fact, started asking suppliers to make AirPods and Beats headphones in India as early as next year, Jason, that would lower the risk of the supply chain disruption that they've seen from China. The Wall Street Journal reported this week that Macy's credit card data from early in the year gave the company insights on shopping trends, enabling them to adjust their merchandise orders. That said, I do think, because they've been so widely criticized and vilified almost by folks like Professor Siegel at Wharton, who are on TV on an every-other-day basis just lambasting, and just attacking, for lack of a better word, them in their policies and everything that they've done leading up to this.
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Rick Engdahl has positions in Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Mattel, McCormick, Netflix, Nike, Nvidia, Peloton Interactive, Target, Tesla, and Walt Disney. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Constellation Brands, Dream Finders Homes, Inc., Home Depot, NVR, Netflix, Nike, Nvidia, Peloton Interactive, Target, Tesla, Walmart Inc., and Walt Disney. The Motley Fool recommends McCormick and Wayfair and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple.
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Chris Hill: We've got the latest jobs report, retail, semiconductors, consumer goods, and breaking news in the world of sports business, Motley Fool money starts now. I'm Chris Hill, joining me in studio Motley Fool Senior Analysts, Jason Moser and Andy Cross. Chris Hill: Coming up after the break, Jason Moser and Andy Cross are coming back.
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They're going to probably close around 7,000 homes this year versus 4,800 homes last year. This is a stock you want to own for years. Chris Hill: Two very different businesses.
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2022-10-15 00:00:00 UTC
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Nasdaq Bear Market: What History Taught Investors
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https://www.nasdaq.com/articles/nasdaq-bear-market%3A-what-history-taught-investors
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In this video, Neil Rozenbaum talks about what history has taught investors who invest during bear markets, as well as show some examples such as Apple and Home Depot. These two companies have been around for a while and can serve as a good example. The Nasdaq Composite (NASDAQINDEX: ^IXIC) is down more than 20%, which puts it in the bear market territory.
For full insights, do watch the video, consider subscribing, and click the special offer link below.
*Stock prices used during the trading day of Oct. 14, 2022. The video was published on Oct. 15, 2022.
10 stocks we like better than Nasdaq Composite Index
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Nasdaq Composite Index (Price Return) wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 30, 2022
Neil Rozenbaum has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Home Depot. 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. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In this video, Neil Rozenbaum talks about what history has taught investors who invest during bear markets, as well as show some examples such as Apple and Home Depot. For full insights, do watch the video, consider subscribing, and click the special offer link below. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Nasdaq Composite Index (Price Return) wasn't one of them!
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* They just revealed what they believe are the ten best stocks for investors to buy right now... and Nasdaq Composite Index (Price Return) wasn't one of them! See the 10 stocks *Stock Advisor returns as of September 30, 2022 Neil Rozenbaum has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Home Depot.
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10 stocks we like better than Nasdaq Composite Index 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. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Neil Rozenbaum has no position in any of the stocks mentioned.
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See the 10 stocks *Stock Advisor returns as of September 30, 2022 Neil Rozenbaum has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Home Depot. The Motley Fool has a disclosure policy.
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18895.0
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2022-10-15 00:00:00 UTC
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An Investor's Look at Semiconductors
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In this podcast, Motley Fool senior analysts Jason Moser and John Rotonti dig into one of the most important industries in the world and discuss:
The semiconductor value chain.
Geopolitical risks (and opportunities) and the industry's cyclicality.
Implications of the CHIPS Act.
One critical chipmaker that's cheaper than the S&P 500.
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 Oct. 8, 2022.
John Rotonti: Ten to 15 years ago, the industry was largely driven by PC cycles and iPhone cycles, to be honest with you. But now, like we said, they go into everything. I mean, is demand for the cloud going to go away? I don't think so.
Chris Hill: I'm Chris Hill and that's Motley Fool senior analyst John Rotonti. He joined fellow analyst Jason Moser for an introduction to semiconductors. Computers, cars, and whatever you're using right now to listen to this podcast need them to function. They're an important building block for our economy. Today, John and Jason discuss companies in the semiconductor value chain, the industry's risks, and one important chipmaker that's cheaper than the S&P 500.
Jason Moser: Let's go and start from the very beginning. What are semiconductors and why are they so important to the economy now?
John Rotonti: Thanks, Jason, one of my favorite things to talk about. Semiconductors are the brains of all electronic devices. They partially or semi-conduct currents. They are largely made of silicon, which is made from sand. Like beach sand. They're varying sizes, but most of them are, you can think about the size of your thumbnail or a postage stamp. These very small devices are packed with, in some cases, tens of billions of transistors.
Jason Moser: It's a lot.
John Rotonti: Yeah. Exactly right. Especially when you're packing them onto something the size of a postage stamp. These transistors amplify currents and actually turn electrical signals on and off. You've got these electronic brains that power devices. They are in everything from the remote control on your TV to the fastest supercomputers in the world, to healthcare devices, to our military's weapons systems. They are a matter of life and death, literally when it comes to healthcare, when it comes to national security.
They are the devices that power our modern digital economy and digital world. We would not have cloud computing without semiconductors, we would not have artificial intelligence or machine learning. We would not have video gaming. We will not have the metaverse if that comes to play. All of these things, EVs, 5G, all of these modern technologies, all of these innovations are powered by semiconductors. To sum up, I would say they are the critical infrastructure and modern building block of the digital economy.
Jason Moser: Yeah, it really does feel like we're only headed more and more in that direction. Their role, it really should only grow in importance. I think when we look at this industry, I find the actual value chain in semiconductors to be very interesting. I think there's a lot that goes on behind the scenes that maybe some folks don't realize in the market that comes to mind, it reminds me a little bit of the payments industry. If you look at it on the surface, you think it's just simple. Oh, well, companies make these semiconductors and boom, and it goes into your device and consumers use them.
But then when you look at the value chain behind the scenes and all of the different participants in this market. It's worth noting because there are a lot of different ways to capitalize on this as investors, so let's talk about the main touch points of this value chain. The semiconductor. Most people are probably familiar with names like Qualcomm or Intel. Those are semiconductor companies, but there are companies even before that, that are involved in making the actual physical material. I mean, you've got everything from foundries and the equipment companies and then designers. Walk us through that value chain if you could.
John Rotonti: Yeah, Jason, the value chain is fascinating because it is so complex and technologically advanced and capital-intensive that if you look at the value chain, which we'll go through in a second. At every step of the semiconductor manufacturing value chain, these global oligopolies or duopolies or in some cases, even earned monopolies have formed. Basically, the first stage of making a semiconductor, designing a semiconductor is designing it using software. You take a company like Nvidia or Apple that wants to design their next semiconductor, they're going to use software, very likely from one or two companies because these are the two companies that do it at scale globally. It's Synopsys, and Cadence Design Systems. If you think about a blue, an architectural blueprint for your house or building. This is the architectural blueprint for a semiconductor. Just much more complicated because like we said, there are tens of billions of transistors they need to map and blueprint onto the chip.
These two companies, they are electronic design automation software companies, really they're computational design software companies. This is highly, highly complicated. This software is using a combination of matrix algebra, multivariate calculus, AI, advanced geometry, and more. This is not a software that you take an online course in Python or something you learn how to use it. This is software run by specialists, masters and Ph.D.s in this software. That's the first stage is to, is to blueprint it out using this software. Then what happens after that is that software is is printed onto a mask, and then that mask, which is just like a stencil basically, or a model. That mask is then used to print the blueprint onto a silicon wafer, which is usually 12 inches in diameter. It's a circular, thin piece of silicon that's 12 inches in diameter.
To do that, you use extreme ultraviolet light and a series of lasers and mirrors to print that blueprint onto the silicon wafer. There's only one company in the world that does that extreme ultraviolet lithography. We'll get into that in a second, but it's ASML, a Dutch company. Then from there basically there's three main steps. You deposit a bunch of chemicals onto these chips and those depositions, there's basically three primary companies that do the deposition or deposit, and that's Lam Research, Applied Materials, and Tokyo Electron. Then you etch away or carve out little holes where the transistors go. That's called etch. There's basically three companies that do that and it's the same three. It's Lam Research, Applied Materials, and Tokyo Electron. So you have two main software companies.
You've got three main semi-capital equipment companies that do the etching and the deposition. You've got one company doing the light sourcing, that's ASML. Then you have a couple of companies that, that test it after the semiconductor is made. The two big ones there are Teradyne and Advantest, which is a private company. All of this takes place in a foundry. The big foundries are the largest foundry is Taiwan Semiconductor. Samsung is another leading player. There is a major player for lagging-edge semiconductors, foundry manufacturing, and that's GlobalFoundries. Then Intel's a fourth player trying to get into third-party manufacturing. That's the semiconductor manufacturing value chain in a synopsis.
Jason Moser: Well, very well done by the way and I appreciate it because I think you showed that this industry that just seems to be so simple on the surface as consumers we buy these devices, but the behind the scenes is just so much more involved. It's always great to know that from the investing perspective, knowing that value chain I think is key for whatever industry you're focused on. Semiconductors certainly you can see is a very involved value chain as well and it seems like there's a theme there in that. This is just very highly technically skilled work.
John Rotonti: Yeah.
Jason Moser: The barriers to entry just on understanding how to do this and getting the talent to be able to do this, and getting the equipment and the software to be able to do this. It just seems like those barriers to entry are very, very high.
John Rotonti: I would agree.
Jason Moser: Yeah. So you focus your coverage specifically on foundries and semi-cap equipment companies and so I wanted to dig into those a little bit more because that's where you pay most of your attention. Who are the major competitors? We talk about them a little bit but let's dig into the major competitors in that part of the value chain and the foundries and the semi-cap equipment companies and we'll talk a little bit about their advantages and their merits as investment ideas.
John Rotonti: Starting with foundries, we mentioned Taiwan Semi and Samsung. Those are the two leading advanced, leading-edge, semiconductor third-party manufacturing foundries. There's also GlobalFoundries, Intel, maybe a few smaller players, but you can't talk about foundries without talking about Taiwan Semi. The reason is because I think it's one of the if not the most indispensable company in the world. It has 50% market share of all of the outsourced chips manufactured in the world. That's roughly three times higher than the next-largest player, which is Samsung. They have so 50% market share of all chips manufacturered, but they have 85%-90% market share of the world's most advanced chips. Because of that, it generates 90% of global contract foundry profits. It really is this earned monopoly or duopoly with Samsung right now.
It got this position by investing heavily ahead of everyone else, heavily ahead of demand, and being an early adopter of extreme ultraviolet or EUV lithography machines by ASML. Taiwan Semi owns more ASML machines than anybody else in the planet and Taiwan Semi has more experience using these extremely complex machines than anyone else in the planet. Because Taiwan Semi has 90% market share of the world's most advanced chips, it has a much, much larger library of recipes or process knowledge or process technology for manufacturing these chips. Each chip has its own recipe and each node builds off the recipe of the prior node.
With semiconductor manufacturing, Jason, scale and market share beget more scale, and more market share, and faster and better process learnings. Process knowledge is extremely capital-intensive. I think Taiwan Semi is going to spend somewhere on the order of $40 billion in capex this year or next year, 40 billion in one year. It's going to be very hard for competitors to catch up. Finally, Taiwan Semi has built up an ecosystem and works extremely closely with all of the major players in the semiconductor manufacturing supply chain that we already talked about. If you go to Taiwan and you go to their facilities, well guess what, Lam Research is located right there, Applied Materials is located right there, ASML has teams right there so they built up these ecosystems around the business.
Jason Moser: I think it's very clear the pros. I think it's very clear the competitive advantages that these businesses possess and I think that either the follow-up to that that I'd really have for you is just what do you consider the threats for businesses like these and so you talk about, are there really any threats for Taiwan Semi?
John Rotonti: I think so and that ties into the valuation right now, Jason. Taiwan Semi is at I looked yesterday, I haven't looked this morning, I know stocks are down. I think it's around 72 down from 145 stock price, so it's down 50% from its 52-week high, has 2.5% dividend yield, Jason, this company that I just explained to you, that is integral to the world is trading at a forward P/E of 12.
Jason Moser: Why?
John Rotonti: I think and just let me just put that into perspective. The S&P 500, the market is trading at about 15 or 16, so it's had a three or four turn discount to the market. I think the reason you asked the risk, I think the market is concerned that it's located in Taiwan and that China claims to control Taiwan and there's been talk and rhetoric recently that China maybe possibly could invade Taiwan. That's the risk and that's why I think there's this overhang on the stock, Jason.
Jason Moser: Yeah, the geopolitical risks. It's something always to keep in mind, obviously out of our control. Nothing we can really control, but it's always something to acknowledge. You see, obviously what's going on with Russia and Ukraine. Those are things that happen. You can't very well predict them but then it also, it goes to show even market leaders like that. There's always going to be a risk that you need to identify and that certainly seems to be very reasonable with Taiwan Semi.
John Rotonti: Even if you take China and geopolitical risk out of the equation, there are other risks. Intel is spending billions of dollars to try to catch up, billions. Competitive risk is there, technological obsolescence to an extent is there, and then semiconductors, the industry has historically been cyclical. I think it's less cyclical now than it's been in the past and we can maybe talk about that now or another time, but there is some cyclicality as well. There's a risk that you could be buying a stock at the top of a cycle, I don't think that's a risk right now. But over a long period of time there is a risk you could be buying at the top and then you have to maybe wait a couple of years for the stock price to catch up, but I think those are the big risks.
Jason Moser: I'm glad you brought up that cyclicality risk because I think that's something that definitely is worth touching on. I run a couple of services here at the Fool that focus on immersive technology, 5G, stuff like that. I've got my share of chip companies and they're your Qualcomms and your AMDs, and your Nvidias of the world. It does feel to me like the cyclicality risk isn't what it used to be. I guess that really goes back to what you were talking about at the top of the show, in that this is the lifeblood of virtually everything we do now, this technology. It's an everything that we do.
John Rotonti: Exactly right.
Jason Moser: It feels like the cyclicality now is more or less just based on where we are in the innovation cycle. But regardless, because this technology is so widespread all around the world, that cyclicality window just seems to be shrinking a bit.
John Rotonti: I think so Jason, 10-15 years ago the industry was largely driven by PC cycles and iPhone cycles, to be honest with you, but now like we said, they go into everything. Is demand for the cloud going to go away? I don't think so. Is demand for EVs and 5G going to go away? Is demand for AI and machine learning going to go away? The use cases, the end markets, the total addressable markets for semiconductors is just so much larger than it was. The other thing is that we've had a couple of major periods of consolidation across the industry. At some point in time there used to be 20-30 competitors, now you've got 3, 4, or 5 competitors. Because of that, I think the remaining competitors are much more rational in their pricing. That avoids the boom-bust pricing cycles of the past. Then if you look at the fundamentals, the last down cycle we had, I think was 2018, like real down cycle. We're in one now a little bit but if you look at the trough margins now and in 2018. The lowest the margins get at a down cycle, those are now higher than peak margins in previous cycles, Jason.
Jason Moser: Wow.
John Rotonti: The fundamentals of the industry have dramatically improved in my view.
Jason Moser: That's astounding. Another thing it's been in the headlines a lot lately, we've been talking a lot about it on the investing team, trying to get just a better idea of where we think, ultimately, how this plays out the CHIPS Act. This supply chain crunch that we've been going through, it's something that we see in virtually everyearnings callbecause this technology is in everything, so it seems like every company on the face of the Earth has exposure to this.
John Rotonti: Sure.
Jason Moser: The CHIPS Act, I wonder, do you have an opinion there? We're talking about $50-plus billion ultimately, that's going to be devoted to spark domestic semiconductor manufacturing. It feels like on the surface, that's a smart idea, diversify that supply chain a little bit, yet I can't help but wonder if maybe this isn't money that's just disappear here and there and not really have as material an impact. I wonder if you have any strong feelings one way or the other on the CHIPS Act.
John Rotonti: I don't have strong feelings on how effective it will be yet, just because it's so new but I'd like to think, Jason, that it's a good start. If we want to build a homegrown semiconductor domestic supply chain, 50 billion is not enough and we talked about Taiwan Semi is going to invest 40 billion on its own this year.
Jason Moser: Just one year.
John Rotonti: Just one company in one year, Jason. The U.S. used to manufacture a lot more of the world's chips, so it used to be 30% or 40% of the world's semiconductors were manufactured in the U.S., now it's 12% and so that's a national security risk. It really came into play during the pandemic when we had all the supply chain bottlenecks, we could really feel it tangibly, you couldn't buy it. Auto manufacturers, for example, couldn't make new cars because they couldn't get the semiconductors because nowadays cars are just chips on wheels. What happened was everyone started buying used cars and that drove up used car pricing. I think it's a good first start, I think it's going to take a decade or more if we're going to be successful and it's going to take hundreds of billions of dollars but we have to start somewhere and so I'm hopeful, Jason.
Jason Moser: Yeah. I think that's a good way, I'm hopeful. It absolutely feels like it's just a start because like you said, it requires so much investment.
John Rotonti: Yeah. One more quick thing, Jason. When it comes to manufacturing, the U.S. is at a deficit, most of the chips are manufactured in the East, that's just a fact. Two-thirds to 70% of the world's chips flow through the island of Taiwan. They're made in the East but we should also point out that the IP, Jason, exists in the West, so those two software companies, Cadence and Synopsys, those are U.S. companies.
Jason Moser: Oh, yeah.
John Rotonti: Those three large semi-cap equipment companies, Lam Research, Applied Materials, Tokyo Electron is in the East but throw in Teradyne and let's throw in KLAC, four huge semi-cap equipment companies all located in the West. Then ASML, maybe the most important of the semi-cap equipment companies, that's a European Dutch company, so a lot of the IP, the majority of the IP is in the West. There is this dichotomy of the IP versus the manufacturing, we're just trying to bring back some of that manufacturing.
Jason Moser: Yeah. That makes a lot of sense. Given that, let's wrap up the show today. You and I were reading an article the other day, from CNBC, it was just an interesting view. It struck me as the past versus the future. This was an article that dug into Intel and Nvidia. Intel is saying that Moore's law is still alive and well, Nvidia says, no longer. Really quickly, what's Moore's law and what did you think about this article?
John Rotonti: Jason, Moore's law states that the number of transistors on a chip doubles roughly every two years. If we assume the price of the chip stays the same, then the cost of that chip falls in half every two years. Basically, Moore's law says, that chip performance doubles over two years. If we look back in the 1970s, Intel was a chip leader. The chips it was putting out in the 1970s had between 2,000 and 6,000 transistors on them. Today, the Apple M1 Chip, which was pretty revolutionary, Jason, has 16 billion transistors. A chip, the Graviton2 that goes into Amazon Web Services that runs their cloud in their data centers, it has 30 billion transistors on it. The question is Jason, how many of these transistors can we continue to pack onto something the size of your thumbnail?
Jason Moser: But that's right, we run into a physics problem at some point? It's what should be a physics problem.
John Rotonti: Yeah. The edge of physics. What we do is, we do two things. One is we make 3D chips and we start building transistors on top of each other, it's like a skyscraper. Then the other thing is we use extreme ultraviolet light and these machines by ASML. The reason you have to use this extreme ultraviolet light, it's because you need extremely small wavelengths of light in order to trace the pattern of the transistors. You have to bring the transistors closer and closer together and the only way to do that is to use extremely small wavelengths of light. I think in that article, Intel was talking about getting to 100 billion transistors on a chip and we're like 50 billion today.
Once again, that's doubling from 50-100. Can we get there? I hope so because I want to see what the world looks like with 100 billion transistors on a chip. Nvidia is saying, we're up against the limits of Moore's Law and so to get around that, you're going to have to make highly specialized chips used for highly specialized devices and purposes and that's what Nvidia. Nvidia doesn't make commodity chips, Jason, Nvidia makes chips that only it can make and so who's going to be right? I really don't know but I tell you what, Nvidia is an amazing company and Intel was a company that was once amazing and it's trying to turn itself around. I think if anyone could do it, it's Pat Gelsinger, their new CEO, so it will be fun and interesting to watch.
Jason Moser: It will indeed, this is an amazing space, tremendous opportunities for investors and really appreciate you taking the time to go through it and explain it all. John, it's great talking with you today. You want to make sure before we wrap up, you're a good tweeter.
John Rotonti: Thank you, sir.
Jason Moser: You got a great educational, investing Twitter feed there. Where can people find you on Twitter?
John Rotonti: I'm on Twitter @JRogrow. @ J-R-O-G-R-O-W. Thank you for having me on the show, Jason, it's always fun.
Chris Hill: As always, people on the program may have an interest in the stocks they talk about and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. I'm Chris Hill. Thanks for listening. We'll see you tomorrow.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Chris Hill has positions in Amazon, Apple, Nvidia, and Taiwan Semiconductor Manufacturing. Jason Moser has positions in Amazon and Apple. John Rotonti has positions in Apple, Cadence Design Systems, Nvidia, Teradyne, and Twitter. The Motley Fool has positions in and recommends ASML Holding, Amazon, Apple, Applied Materials, Cadence Design Systems, Intel, Lam Research, Nvidia, Qualcomm, Synopsys, Taiwan Semiconductor Manufacturing, and Twitter. The Motley Fool recommends Teradyne and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2023 $57.50 puts on Intel, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In this podcast, Motley Fool senior analysts Jason Moser and John Rotonti dig into one of the most important industries in the world and discuss: The semiconductor value chain. Finally, Taiwan Semi has built up an ecosystem and works extremely closely with all of the major players in the semiconductor manufacturing supply chain that we already talked about. The Motley Fool has positions in and recommends ASML Holding, Amazon, Apple, Applied Materials, Cadence Design Systems, Intel, Lam Research, Nvidia, Qualcomm, Synopsys, Taiwan Semiconductor Manufacturing, and Twitter.
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John Rotonti: Those three large semi-cap equipment companies, Lam Research, Applied Materials, Tokyo Electron is in the East but throw in Teradyne and let's throw in KLAC, four huge semi-cap equipment companies all located in the West. The Motley Fool has positions in and recommends ASML Holding, Amazon, Apple, Applied Materials, Cadence Design Systems, Intel, Lam Research, Nvidia, Qualcomm, Synopsys, Taiwan Semiconductor Manufacturing, and Twitter. The Motley Fool recommends Teradyne and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2023 $57.50 puts on Intel, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple.
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In this podcast, Motley Fool senior analysts Jason Moser and John Rotonti dig into one of the most important industries in the world and discuss: The semiconductor value chain. Today, John and Jason discuss companies in the semiconductor value chain, the industry's risks, and one important chipmaker that's cheaper than the S&P 500. You take a company like Nvidia or Apple that wants to design their next semiconductor, they're going to use software, very likely from one or two companies because these are the two companies that do it at scale globally.
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In this podcast, Motley Fool senior analysts Jason Moser and John Rotonti dig into one of the most important industries in the world and discuss: The semiconductor value chain. John Rotonti: Starting with foundries, we mentioned Taiwan Semi and Samsung. John Rotonti: Just one company in one year, Jason.
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How Warren Buffett Receives a Staggering 54% Yield From This Dividend Aristocrat
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Warren Buffett isn't an income investor, but he could be. The iconic investor has led Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) to buy many dividend stocks that generate significant income. Berkshire's position in Apple alone made $785 million in dividends in 2021.
Apple is Berkshire's largest holding by far. But there are other stocks in which the conglomerate has smaller stakes that generate huge levels of income on a per-share basis. Here's how Buffett receives a staggering 54% dividend yield from one Dividend Aristocrat.
Image source: The Motley Fool.
Not a typo
The Dividend Aristocrat that I'm referring to is Coca-Cola (NYSE: KO). And no, Buffett's dividend yield mentioned isn't a typo. It truly is 54% and not 5.4%.
But isn't Coca-Cola's dividend yield only around 3.2% right now? Yes, that's its correct current yield. However, the jaw-dropping number that Buffett receives is an effective dividend yield.
What's the difference between a run-of-the-mill dividend yield and an effective dividend yield? The former is based on the current share price of a stock. The latter, though, is based on a given investor's cost basis for the stock. The cost basis is the amount paid to purchase the stock, adjusted for any stock splits.
Berkshire Hathaway's cost basis for Coca-Cola is only $3.25 per share. Buffett first invested in the soft drink giant way back in 1988.
At the time, Coke's annualized dividend payout was $0.075 a share, adjusted for stock splits. Today, the annualized dividend is $1.76. Buffett's effective dividend yield, therefore, is nearly 54.2% (annual dividends of $1.76 divided by the cost basis of $3.25.)
Two factors working to Buffett's advantage
The main reason Buffett enjoys such a colossal effective dividend yield with Coca-Cola is that he's held on to the stock. He has stated before that his favorite holding period is "forever." He's living up to this ideal with Coke, sticking with the stock for 34 years.
But time would only be on Buffett's side from an income standpoint if Coca-Cola increased its dividend during the period. The company did just that, of course, with its payout skyrocketing by a multiple of nearly 23.5.
Could Buffett have known in 1988 that Coca-Cola would increase its dividend so much? He probably wouldn't have been able to predict how much the dividend would grow. However, he almost certainly could have been able to confidently forecast that Coke would steadily increase its dividend each year.
Coca-Cola was already a Dividend Aristocrat back then. Companies that have long track records of dividend hikes usually place a high priority on keeping the streak going. Today, Coke has increased its dividend for 60 consecutive years, making it a Dividend King.
Following Buffett's example
Buffett hasn't bought Dividend Aristocrats and held them for long periods very often. Aside from Coca-Cola, Berkshire Hathaway's portfolio includes only two other Dividend Aristocrats, Johnson & Johnson and Chevron. (Buffett's "secret portfolio" -- stocks held by Berkshire subsidiary New England Asset Management and not managed by Buffett -- currently includes 31 Dividend Aristocrats.)
As mentioned earlier, Buffett isn't an income investor. His approach in this case, though, could be helpful for other investors hoping to one day retire with significant dividend income.
Any stock that's likely to significantly increase dividends should work with the strategy. Coca-Cola is certainly an outlier, but income investors could realistically achieve exceptionally high effective dividend yields over time with other stocks by following Buffett's example.
10 stocks we like better than Coca-Cola
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Keith Speights has positions in Apple and Berkshire Hathaway (B shares). The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends Johnson & Johnson and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Companies that have long track records of dividend hikes usually place a high priority on keeping the streak going. His approach in this case, though, could be helpful for other investors hoping to one day retire with significant dividend income. Coca-Cola is certainly an outlier, but income investors could realistically achieve exceptionally high effective dividend yields over time with other stocks by following Buffett's example.
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The iconic investor has led Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) to buy many dividend stocks that generate significant income. At the time, Coke's annualized dividend payout was $0.075 a share, adjusted for stock splits. The Motley Fool recommends Johnson & Johnson and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple.
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Two factors working to Buffett's advantage The main reason Buffett enjoys such a colossal effective dividend yield with Coca-Cola is that he's held on to the stock. Coca-Cola is certainly an outlier, but income investors could realistically achieve exceptionally high effective dividend yields over time with other stocks by following Buffett's example. The Motley Fool recommends Johnson & Johnson and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple.
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At the time, Coke's annualized dividend payout was $0.075 a share, adjusted for stock splits. Following Buffett's example Buffett hasn't bought Dividend Aristocrats and held them for long periods very often. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares).
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18897.0
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2022-10-14 00:00:00 UTC
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Banks Are Now as Leveraged as They Were Before the Great Recession, but Don't Panic
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AAPL
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https://www.nasdaq.com/articles/banks-are-now-as-leveraged-as-they-were-before-the-great-recession-but-dont-panic
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nan
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nan
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After the Great Recession, regulators beefed up a lot of the rules governing banks, their lending practices, and how much regulatory capital they need to hold to ensure the safety and soundness of the global financial system.
Given that it's now been several years since the implementation of all of this complex regulation, I was surprised to hear Tom Michaud, the chief executive officer of the investment bank Keefe, Bruyette & Woods, recently say on S&P Global's podcast Street Talk that many banks today are about as leveraged as they were in 2007 right before the Great Recession.
With inflation high, interest rates rising, and the economy in a fragile place right now, it might concern investors to hear such a statement. But while a highly leveraged banking system might sound worrisome, there's no need to panic just yet. Here's why.
Breaking down Michaud's comments
Specifically, Michaud said that regional and mid-cap banks are leveraged as much as they were in 2007 when you look at the ratio of tangible common equity (shareholder capital excluding preferred equity, goodwill, and other intangible assets) to total assets.
And tangible common equity has been a good indicator of safety in the past. A working paper on bank risk conducted by the consulting firm McKinsey in 2009 found that 33% of banks with a ratio of tangible common equity to risk-weighted assets of less than 5.5% experienced "distress" during the Great Recession. But it can be a double-edged sword at times because too much tangible common equity can stifle returns and lead to lower valuations. This is why bankers, regulators, and politicians are always arguing about proper bank capital levels.
Image source: Getty Images.
However, regional banks weren't the only ones that have had leverage issues recently. Large banks like JPMorgan Chase (NYSE: JPM) and Bank of America (NYSE: BAC) worried last year about falling below their regulatory leverage requirements as well.
Why has this happened? Regulatory capital requirements have become much more stringent since the Great Recession and made the banking system much safer. Interestingly, Michaud noted that just a few years ago, banks were holding the largest amount of tangible common equity in 80 years. High levels of tangible common equity give a bank a greater ability to withstand loan losses, which tend to rise in economic slowdowns.
Two big things have happened, though, rather recently. First, the Federal Reserve has rapidly raised interest rates. This helps banks in one respect because higher interest rates increase the yield banks earn on loans and securities.
But it is also a headwind because banks often invest in bonds as an alternative to making loans -- and bond values have an inverse relationship with interest rates. Rising rates have resulted in banks taking some pretty heavy paper losses on their bond holdings in recent quarters. This has eroded their tangible common equity, the numerator in a bank's leverage ratio, or how much capital they have relative to total assets.
On top of that, quantitative easing by the Fed during the pandemic has injected trillions of dollars into the banking system, leading to a flood of deposits that banks ended up investing in bonds, which significantly increased the denominator in the leverage ratio.
It's a different kind of leverage
Despite the increase in leverage, Michaud made it very clear that the banking system today is a lot different than it was in the run-up to the Great Recession -- to which I would agree.
Before the Great Recession, bank held much a higher share of their assets in loans -- and what we now know to be much riskier loans that were not underwritten well. Not only have underwriting standards improved, but the banking system is much less leveraged to loans than it was. At the end of the second quarter of the year, JPMorgan Chase only had about 44.5% of its deposits deployed into loans. At Bank of America, that number is only about 50.4%.
Today, banks have deployed a lot more of their deposits in bonds. While banks are taking paper losses right now, as those bonds eventually mature, banks should see those paper losses go away as they receive the principal. That will bleed back into their capital, boosting tangible common equity. While loan losses permanently erode capital, paper losses on bonds usually come back and end up just being accounting noise.
Furthermore, banks are likely to see some of the deposits they have added since the pandemic run off as the Fed reduces its own balance sheet through quantitative tightening, which effectively soaks up excess liquidity from the economy. That might lower leverage by reducing bank balance sheets, but also could lead to less liquidity at banks as well.
No need to panic
While the banking system has become leveraged very quickly as of late, I do not see a need to panic. The leverage today is much safer, with more bonds -- instead of loans -- swelling bank balance sheets.
Furthermore, banks now adhere to much stricter regulatory capital rules, go through regular stress testing, and have much better lending standards.
While I'll be watching deposit trends and how bond losses on paper continue to affect tangible common equity in future bank earnings reports, I still feel confident that the banking system is prepared to weather whatever storm may be headed its way.
10 stocks we like better than JPMorgan Chase
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 JPMorgan Chase wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 30, 2022
Bank of America is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Bram Berkowitz has positions in Bank of America. The Motley Fool has positions in and recommends Apple and JPMorgan Chase. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and 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 the Great Recession, regulators beefed up a lot of the rules governing banks, their lending practices, and how much regulatory capital they need to hold to ensure the safety and soundness of the global financial system. High levels of tangible common equity give a bank a greater ability to withstand loan losses, which tend to rise in economic slowdowns. Furthermore, banks are likely to see some of the deposits they have added since the pandemic run off as the Fed reduces its own balance sheet through quantitative tightening, which effectively soaks up excess liquidity from the economy.
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Rising rates have resulted in banks taking some pretty heavy paper losses on their bond holdings in recent quarters. While loan losses permanently erode capital, paper losses on bonds usually come back and end up just being accounting noise. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Bank of America is an advertising partner of The Ascent, a Motley Fool company.
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A working paper on bank risk conducted by the consulting firm McKinsey in 2009 found that 33% of banks with a ratio of tangible common equity to risk-weighted assets of less than 5.5% experienced "distress" during the Great Recession. Large banks like JPMorgan Chase (NYSE: JPM) and Bank of America (NYSE: BAC) worried last year about falling below their regulatory leverage requirements as well. While I'll be watching deposit trends and how bond losses on paper continue to affect tangible common equity in future bank earnings reports, I still feel confident that the banking system is prepared to weather whatever storm may be headed its way.
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After the Great Recession, regulators beefed up a lot of the rules governing banks, their lending practices, and how much regulatory capital they need to hold to ensure the safety and soundness of the global financial system. Rising rates have resulted in banks taking some pretty heavy paper losses on their bond holdings in recent quarters. The Motley Fool has positions in and recommends Apple and JPMorgan Chase.
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18898.0
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2022-10-14 00:00:00 UTC
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Friday's ETF with Unusual Volume: FCTR
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AAPL
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https://www.nasdaq.com/articles/fridays-etf-with-unusual-volume%3A-fctr-0
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nan
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nan
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The First Trust Lunt U.S. Factor Rotation ETF is seeing unusually high volume in afternoon trading Friday, with over 234,000 shares traded versus three month average volume of about 74,000. Shares of FCTR were off about 2.5% on the day.
Components of that ETF with the highest volume on Friday were Tesla, trading down about 5.3% with over 41.7 million shares changing hands so far this session, and Apple, down about 2.5% on volume of over 36.4 million shares. Westlake is the component faring the best Friday, higher by about 3.4% on the day, while Mosaic is lagging other components of the First Trust Lunt U.S. Factor Rotation ETF, trading lower by about 9.4%.
VIDEO: Friday's ETF with Unusual Volume: FCTR
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Factor Rotation ETF is seeing unusually high volume in afternoon trading Friday, with over 234,000 shares traded versus three month average volume of about 74,000. Components of that ETF with the highest volume on Friday were Tesla, trading down about 5.3% with over 41.7 million shares changing hands so far this session, and Apple, down about 2.5% on volume of over 36.4 million shares. VIDEO: Friday's ETF with Unusual Volume: FCTR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Factor Rotation ETF is seeing unusually high volume in afternoon trading Friday, with over 234,000 shares traded versus three month average volume of about 74,000. Factor Rotation ETF, trading lower by about 9.4%. VIDEO: Friday's ETF with Unusual Volume: FCTR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Factor Rotation ETF is seeing unusually high volume in afternoon trading Friday, with over 234,000 shares traded versus three month average volume of about 74,000. Components of that ETF with the highest volume on Friday were Tesla, trading down about 5.3% with over 41.7 million shares changing hands so far this session, and Apple, down about 2.5% on volume of over 36.4 million shares. VIDEO: Friday's ETF with Unusual Volume: FCTR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Factor Rotation ETF is seeing unusually high volume in afternoon trading Friday, with over 234,000 shares traded versus three month average volume of about 74,000. Shares of FCTR were off about 2.5% on the day. Westlake is the component faring the best Friday, higher by about 3.4% on the day, while Mosaic is lagging other components of the First Trust Lunt U.S.
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18899.0
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2022-10-14 00:00:00 UTC
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After Hours Most Active for Oct 14, 2022 : SMRT, RTO, PING, QQQ, HBAN, AAPL, AMZN, LBRT, C, VZ, INTC, TQQQ
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-oct-14-2022-%3A-smrt-rto-ping-qqq-hban-aapl-amzn-lbrt-c-vz-intc
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -1.53 to 10,690.53. The total After hours volume is currently 79,336,725 shares traded.
The following are the most active stocks for the after hours session:
SmartRent, Inc. (SMRT) is unchanged at $2.24, with 11,913,110 shares traded. As reported by Zacks, the current mean recommendation for SMRT is in the "buy range".
Rentokil Initial plc (RTO) is unchanged at $27.88, with 4,815,244 shares traded., following a 52-week high recorded in today's regular session.
Ping Identity Holding Corp. (PING) is unchanged at $28.47, with 4,681,926 shares traded. PING's current last sale is 99.89% of the target price of $28.5.
Invesco QQQ Trust, Series 1 (QQQ) is unchanged at $260.74, with 3,380,179 shares traded. This represents a 2.55% increase from its 52 Week Low.
Huntington Bancshares Incorporated (HBAN) is unchanged at $13.67, with 3,182,682 shares traded.HBAN is scheduled to provide an earnings report on 10/21/2022, for the fiscal quarter ending Sep2022. The consensus earnings per share forecast is 0.38 per share, which represents a 35 percent increase over the EPS one Year Ago
Apple Inc. (AAPL) is +0.14 at $138.52, with 3,047,565 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Amazon.com, Inc. (AMZN) is +0.04 at $106.94, with 2,690,536 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Liberty Energy Inc. (LBRT) is unchanged at $14.15, with 2,534,725 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2022. The consensus EPS forecast is $0.63. LBRT is scheduled to provide an earnings report on 10/19/2022, for the fiscal quarter ending Sep2022. The consensus earnings per share forecast is 0.63 per share, which represents a -22 percent increase over the EPS one Year Ago
Citigroup Inc. (C) is +0.11 at $43.34, with 2,253,180 shares traded. Smarter Analyst Reports: Citi Makes Cross-Currency Sweeps Available in 14 European Countries
Verizon Communications Inc. (VZ) is +0.02 at $36.40, with 2,227,394 shares traded.VZ is scheduled to provide an earnings report on 10/21/2022, for the fiscal quarter ending Sep2022. The consensus earnings per share forecast is 1.28 per share, which represents a 141 percent increase over the EPS one Year Ago
Intel Corporation (INTC) is +0.03 at $25.94, with 1,766,058 shares traded. INTC's current last sale is 73.07% of the target price of $35.5.
ProShares UltraPro QQQ (TQQQ) is +0.01 at $17.58, with 1,682,201 shares traded. This represents a 7.72% increase from its 52 Week Low.
The views and 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 +0.14 at $138.52, with 3,047,565 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Rentokil Initial plc (RTO) is unchanged at $27.88, with 4,815,244 shares traded., following a 52-week high recorded in today's regular session.
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Apple Inc. (AAPL) is +0.14 at $138.52, with 3,047,565 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The consensus earnings per share forecast is 0.38 per share, which represents a 35 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is +0.14 at $138.52, with 3,047,565 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The consensus earnings per share forecast is 0.38 per share, which represents a 35 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is +0.14 at $138.52, with 3,047,565 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". SmartRent, Inc. (SMRT) is unchanged at $2.24, with 11,913,110 shares traded.
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