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18900.0
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2022-10-14 00:00:00 UTC
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Netflix (NFLX) Gears Up for Q3 Earnings: What's in the Cards?
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AAPL
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https://www.nasdaq.com/articles/netflix-nflx-gears-up-for-q3-earnings%3A-whats-in-the-cards
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Netflix NFLX is set to report third-quarter 2022 results on Oct 18.
The company expects its third-quarter earnings to be $2.14 per share, suggesting a year-over-year decline of 20%.
The Zacks Consensus Estimate for earnings is currently pegged at $2.12 per share, unchanged over the past 30 days. The figure indicates a 33.54% decline from the year-ago quarter.
Netflix expects total revenues to increase 4.7% year over year to $7.838 billion. The consensus mark for third-quarter revenues is currently pegged at $7.85 billion, suggesting 4.91% growth from the figure reported in the year-ago quarter.
Netflix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 29.51%.
Netflix, Inc. Price and EPS Surprise
Netflix, Inc. price-eps-surprise | Netflix, Inc. Quote
Let’s see how things are shaping up for this announcement.
Factors to Consider
Netflix now expects to gain one million paid subscribers in third-quarter 2022 compared with the year-ago quarter’s addition of 4.38 million.
This Zacks Rank #3 (Hold) company expects to end the third quarter of 2022 with 221.67 million paid subscribers globally, indicating growth of 3.8% from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for paid memberships at the end of the period is pegged at 221.782 million, slightly higher than management’s expectation.
Netflix’s shares have lost 63.4% year to date, underperforming the Zacks Broadcast Radio and Television industry’s decline of 44.3%.
Netflix has been facing stiff competition in the streaming space from the likes of Disney+ by Disney DIS, HBO Max, Comcast’s CMCSA Peacock, Paramount+, and Apple TV+ by Apple AAPL.
Netflix’s closest competitor, Disney, benefits from the growing popularity of Disney+, owing to a strong content portfolio and a cheaper bundle offering.
Disney is also expanding into international markets. Disney+, as of Jul 2, 2022, had 152.1 million paid subscribers compared with 116 million as of Jul 3, 2021.
Comcast’s Peacock is well poised to grow, owing to its vast library of IP and new productions. Comcast is also planning to leverage Sky’s brand and scale to expand Peacock’s footprint internationally.
Apple’s streaming service, Apple TV+, is gaining recognition, with Ted Lasso season 2 winning an Emmy for Outstanding Comedy Series. Jason Sudeikis also won an Emmy for Lead Actor. This is expected to boost Apple TV+’s viewership.
However, courtesy of its diversified content portfolio, attributable to heavy investments in the production and distribution of localized, foreign-language content and an expanding international footprint, Netflix is still dominating the streaming market.
The Zacks Consensus Estimate for paid total streaming net membership gain is pegged at 1.090 million.
Netflix’s growing popularity in the Asia Pacific (APAC) and Latin America (LATAM) regions, thanks to its diversified content offerings in regional languages, is expected to have driven top-line growth.
The consensus mark for third-quarter 2022 APAC revenues is pegged at $900 million, indicating 7.9% growth from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for LATAM revenues is pegged at $1.002 billion, suggesting almost 9.5% growth from the figure reported in the previous quarter.
Moreover, the consensus mark for Europe, Middle East & Africa revenues is pegged at $2.39 billion, suggesting 1.7% growth from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for the United States and Canada revenues stands at $3.539 billion, indicating 8.6% growth from the figure reported in the year-ago quarter.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
Comcast Corporation (CMCSA): Free Stock Analysis Report
Netflix, Inc. (NFLX): Free Stock Analysis Report
The Walt Disney Company (DIS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Netflix has been facing stiff competition in the streaming space from the likes of Disney+ by Disney DIS, HBO Max, Comcast’s CMCSA Peacock, Paramount+, and Apple TV+ by Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report Netflix’s closest competitor, Disney, benefits from the growing popularity of Disney+, owing to a strong content portfolio and a cheaper bundle offering.
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Netflix has been facing stiff competition in the streaming space from the likes of Disney+ by Disney DIS, HBO Max, Comcast’s CMCSA Peacock, Paramount+, and Apple TV+ by Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report The consensus mark for third-quarter revenues is currently pegged at $7.85 billion, suggesting 4.91% growth from the figure reported in the year-ago quarter.
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Netflix has been facing stiff competition in the streaming space from the likes of Disney+ by Disney DIS, HBO Max, Comcast’s CMCSA Peacock, Paramount+, and Apple TV+ by Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report This Zacks Rank #3 (Hold) company expects to end the third quarter of 2022 with 221.67 million paid subscribers globally, indicating growth of 3.8% from the year-ago quarter.
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Netflix has been facing stiff competition in the streaming space from the likes of Disney+ by Disney DIS, HBO Max, Comcast’s CMCSA Peacock, Paramount+, and Apple TV+ by Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report This Zacks Rank #3 (Hold) company expects to end the third quarter of 2022 with 221.67 million paid subscribers globally, indicating growth of 3.8% from the year-ago quarter.
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18901.0
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2022-10-14 00:00:00 UTC
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ROKU Expands The Roku Channel Internationally, Grows Library
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AAPL
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https://www.nasdaq.com/articles/roku-expands-the-roku-channel-internationally-grows-library
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Roku ROKU recently announced that it has expanded the availability of the Roku Channel to Mexico. The free streaming channel available on Roku devices was made accessible to the people of Mexico on Oct 13.
For the launch, Roku is bringing in content from global partners like Sony and Lionsgate as well as from local content providers, such as Telefórmula, Canela TV, Runtime Espanol and Novelisima.
The Roku Channel’s expansion to Mexico is notable, given the service has beefed up its Spanish-language content with the launch of Espacio Latino in June this year. It features thousands of free, original and exclusive movies and TV shows in Spanish, plus popular English titles dubbed and subtitled.
This has received significant traction and expanded Roku’s user engagement, benefiting it from strong momentum in average revenue per user (ARPU). ARPU was $44.10 in the second quarter of 2022, reflecting an increase of 21% year over year, while active accounts were 63.1 million, reflecting an increase of 14% year over year.
Roku, Inc. Price and Consensus
Roku, Inc. price-consensus-chart | Roku, Inc. Quote
Recently, Roku has been focusing on expanding its portfolio on The Roku Channel and also Roku Originals.
The Roku Channel recently became the exclusive AVOD partner for the Adult Swim Festival, a three-part special featuring performances by headliners Run The Jewels, Tierra Whack and Dethklok from the live event that took place in Philadelphia in August 2022.
It previously added 14 new linear channels, of which the local news channels seemed to gain the most traction. These newly launched channels that offer a wide range of genres like Westerns, Spanish-language entertainment and true crime are expected to drive viewers’ interest and increase active accounts.
In the coming months, the company is set to introduce a content discovery experience, The Buzz, to the Roku Home Screen Menu as well as two significant updates to its What to Watch feature, Continue Watching and an expanded platform-wide Save List.
Roku is also making updates to Roku Voice, expanding Bluetooth Private Listening, easing navigation within the Live TV Channel Guide with the addition of categories, and offering more content discovery tools, among many other features.
Roku is also continuing its momentum on Roku Originals. The second season of Chrissy’s Court was the highest-rated unscripted Roku Originals launch ever and delivered four times more unique views than the first season.
The upcoming feature film, WEIRD: The Al Yankovic Story, which is scheduled to be released on Nov 4, is anticipated to attract advertisers due to the new opportunities to engage with Roku Originals.
Roku anticipates revenues in third-quarter 2022 to rise 3% year over year to $700 million.
Roku Faces Major Headwinds From Strong Competition
Despite investing in growing its library, Roku faces immense competition from existing local traditional pay TV services and products, including those provided by incumbent pay TV service providers and mobile streaming platforms.
Roku, which currently has a Zacks Rank #4 (Sell), has lost 77.2% of its share price year to date against the Zacks Consumer Discretionary Sector, which declined 42% in the same time frame.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Roku also faces stiff competition from Netflix NFLX, Disney DIS and Apple AAPL, which have extensive content portfolios and strong brand identities.
Netflix has lost 61.4% whereas Disney declined 37.6% year to date. Both Disney and Netflix are set to launch their ad-tier subscriptions for customers by the end of this year. This low-cost subscription is expected to gain traction. Netflix also won 7 Emmy Awards this year while Disney won 6.
Shares of Apple have declined 19.4% in the same period. Apple TV+ has been signing deals with the likes of Maya Rudolph's production company, Animal Pictures, along with Scott Free Productions, Appian Way, Sikelia Productions and Green Door Pictures, to name a few, to build its content portfolio.
Besides this, Roku faces challenges from the macroeconomic environment such as inflation, recessionary fear and supply chain issue. Both consumers and advertisers have significantly curtailed spending, and the company expects this threat to persist in the coming quarters as well.
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
Netflix, Inc. (NFLX): Free Stock Analysis Report
The Walt Disney Company (DIS): Free Stock Analysis Report
Roku, Inc. (ROKU): 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.
|
Roku also faces stiff competition from Netflix NFLX, Disney DIS and Apple AAPL, which have extensive content portfolios and strong brand identities. Apple Inc. (AAPL): Free Stock Analysis Report The Roku Channel recently became the exclusive AVOD partner for the Adult Swim Festival, a three-part special featuring performances by headliners Run The Jewels, Tierra Whack and Dethklok from the live event that took place in Philadelphia in August 2022.
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Roku also faces stiff competition from Netflix NFLX, Disney DIS and Apple AAPL, which have extensive content portfolios and strong brand identities. Apple Inc. (AAPL): Free Stock Analysis Report Roku Faces Major Headwinds From Strong Competition Despite investing in growing its library, Roku faces immense competition from existing local traditional pay TV services and products, including those provided by incumbent pay TV service providers and mobile streaming platforms.
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Roku also faces stiff competition from Netflix NFLX, Disney DIS and Apple AAPL, which have extensive content portfolios and strong brand identities. Apple Inc. (AAPL): Free Stock Analysis Report Roku ROKU recently announced that it has expanded the availability of the Roku Channel to Mexico.
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Roku also faces stiff competition from Netflix NFLX, Disney DIS and Apple AAPL, which have extensive content portfolios and strong brand identities. Apple Inc. (AAPL): Free Stock Analysis Report Roku ROKU recently announced that it has expanded the availability of the Roku Channel to Mexico.
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18902.0
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2022-10-14 00:00:00 UTC
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Apple workers vote to unionize second U.S. store
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AAPL
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https://www.nasdaq.com/articles/apple-workers-vote-to-unionize-second-u.s.-store
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By Doyinsola Oladipo
NEW YORK, Oct 14 (Reuters) - Apple Inc APPL.O retail workers voted to form a union at an Oklahoma location, the U.S. National Labor Relations Board (NLRB) said on Friday, making it the tech giant's second U.S. store to organize.
Employees at the Apple Penn Square store in Oklahoma City voted 56 to 32 in support of joining the Communications Workers of America Union (CWA), securing the needed majority, according to a tally by the NLRB.
The move to organize spread to new industries during the pandemic, sparked by concerns about workplace safety. Momentum has continued at companies including Amazon.com Inc AMZN.O and Starbucks Corp SBUX.O and others.
The workers, who call themselves the Penn Square Labor Alliance, sought to join the CWA to address concerns including fair compensation, career development and COVID-19 health and safety concerns.
The NLRB did not immediately respond to Reuters request for comment.
"The thing that really did it for us was seeing our peers at other Apple stores, our peers with Starbucks and other companies start to demand better for themselves," said Kevin Herrera, a part-time Apple specialist and one of the lead organizers at the Oklahoma City location.
The CWA filed in early October an unfair labor practice charge alleging that Apple managers at the Oklahoma location informed workers that support for the union was futile, threatened to withhold benefits from workers supporting the union, engaged in unlawful surveillance and interrogated workers, according to a press release from the CWA.
Apple declined to comment on the allegations.
"We believe the open, direct and collaborative relationship we have with our valued team members is the best way to provide an excellent experience for our customers, and for our teams," Apple said in a statement.
"We’re proud to provide our team members with strong compensation and exceptional benefits. Since 2018, we’ve increased our starting rates in the US by 45% and we’ve made many significant enhancements to our industry-leading benefits, including new educational and family support programs," the company added.
Apple workers near Baltimore, Maryland, voted in June to join the International Association of Machinists and Aerospace Workers.
The CWA in May withdrew an election petition on behalf of Apple workers in Atlanta, Georgia, claiming that Apple had repeatedly violated federal labor law and the rising number of COVID infections among store employees made a fair election impossible, according to the CWA.
A regional NLRB office accused Apple on Sept. 30 of illegally attempting to stymie a union campaign at a New York City retail store by interrogating workers and barring them from leaving pro-union flyers in a break room.
Some current and former Apple workers last year began criticizing the company's working conditions online, using the hashtag #AppleToo.
Apple has 272 stores in the United States, according to the company's website.
(Reporting by Doyinsola Oladipo in New York and Abinaya Vijayaraghavan and Rhea Binoy in Bengaluru; Editing by Michael Perry and William Mallard)
((Doyinsola.Oladipo@thomsonreuters.com; +18623846440;))
The views and 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 Doyinsola Oladipo NEW YORK, Oct 14 (Reuters) - Apple Inc APPL.O retail workers voted to form a union at an Oklahoma location, the U.S. National Labor Relations Board (NLRB) said on Friday, making it the tech giant's second U.S. store to organize. Employees at the Apple Penn Square store in Oklahoma City voted 56 to 32 in support of joining the Communications Workers of America Union (CWA), securing the needed majority, according to a tally by the NLRB. A regional NLRB office accused Apple on Sept. 30 of illegally attempting to stymie a union campaign at a New York City retail store by interrogating workers and barring them from leaving pro-union flyers in a break room.
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By Doyinsola Oladipo NEW YORK, Oct 14 (Reuters) - Apple Inc APPL.O retail workers voted to form a union at an Oklahoma location, the U.S. National Labor Relations Board (NLRB) said on Friday, making it the tech giant's second U.S. store to organize. Employees at the Apple Penn Square store in Oklahoma City voted 56 to 32 in support of joining the Communications Workers of America Union (CWA), securing the needed majority, according to a tally by the NLRB. The workers, who call themselves the Penn Square Labor Alliance, sought to join the CWA to address concerns including fair compensation, career development and COVID-19 health and safety concerns.
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By Doyinsola Oladipo NEW YORK, Oct 14 (Reuters) - Apple Inc APPL.O retail workers voted to form a union at an Oklahoma location, the U.S. National Labor Relations Board (NLRB) said on Friday, making it the tech giant's second U.S. store to organize. The CWA filed in early October an unfair labor practice charge alleging that Apple managers at the Oklahoma location informed workers that support for the union was futile, threatened to withhold benefits from workers supporting the union, engaged in unlawful surveillance and interrogated workers, according to a press release from the CWA. The CWA in May withdrew an election petition on behalf of Apple workers in Atlanta, Georgia, claiming that Apple had repeatedly violated federal labor law and the rising number of COVID infections among store employees made a fair election impossible, according to the CWA.
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By Doyinsola Oladipo NEW YORK, Oct 14 (Reuters) - Apple Inc APPL.O retail workers voted to form a union at an Oklahoma location, the U.S. National Labor Relations Board (NLRB) said on Friday, making it the tech giant's second U.S. store to organize. Employees at the Apple Penn Square store in Oklahoma City voted 56 to 32 in support of joining the Communications Workers of America Union (CWA), securing the needed majority, according to a tally by the NLRB. The NLRB did not immediately respond to Reuters request for comment.
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18903.0
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2022-10-14 00:00:00 UTC
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Is This Top Warren Buffett Dividend Stock a Buy Now?
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AAPL
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https://www.nasdaq.com/articles/is-this-top-warren-buffett-dividend-stock-a-buy-now
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The bulk of Warren Buffett's stock portfolio is concentrated in Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), and a handful of energy stocks, so these companies rightly get a lot of attention. But there are other noteworthy stocks in the Oracle of Omaha's portfolio. Moody's (NYSE: MCO) is one of them. It pays a dividend, but besides that, history says it might almost be about time to start buying. Here's why.
A rock-solid dividend stock, imperfections and all
Moody's is a financial data and credit rating company. Perhaps you've seen Moody's rankings on a company's bonds, helping investors assess how risky it would be to buy the debt. Or maybe you remember Moody's for its role in incorrectly assessing the risk of mortgage-backed securities leading up to the Great Recession of 2007-9. The company does much more than that, with a broad set of services that provide analytics and financial data.
But for our discussion here, know that Warren Buffett's Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) has 1.9% of its stock portfolio invested in Moody's. That represents a stake of more than 13% in the company. That position was much higher more than a decade ago , when Berkshire held upward of 20% of Moody's stock. Buffett and his company reduced its holdings in the wake of the financial crisis.
Still, Moody's remains a noteworthy Buffett stock. It pays a dividend yielding 1.2% a year. In fact, with the exception of a pause back in 2009, Moody's has been raising its dividend payout for many years. Since 2006, the quarterly dividend has been increased 1,410%. Along the way, the company has also repurchased ample amounts of its own stock in a further return of excess cash to shareholders. Over that span of time, the stock has been a market-beater when accounting for dividends paid.
Data by YCharts.
This financial data stock is deeply out of favor
Moody's long-term market outperformance includes a sharp sell-off in this stock over the past year. Moody's is down 41% from its all-time high reached in late 2021. Moody's Analytics (MA) revenue has continued to grow this year. Revenue in the first half of 2022 was up 20% to $1.37 billion (which includes a few acquisitions in the last year as the company has focused on subscription revenue streams). However, Moody's Investors Services (MIS) doesn't fare so well when economic uncertainty strikes. MIS revenue fell nearly 32% through the first half of the year to $1.53 billion as businesses tighten up their budgets in preparation for a rough road ahead.
As a result, adjusted earnings per share for full-year 2022 are expected to be in a range of $9.20 to $9.70, which would be down 24% from 2021 at the midpoint of the projection. It's also a big downward revision from the $12.40 to $12.90 the company forecasted at the start of the year. Free cash flow in the first half of 2022 was just $628 million, down 49% from last year.
So why might Moody's be a buy now? It's been through numerous recessions in its century-long existence, and once the economy starts to improve, business (and thus the stock) could take off. After the market (and Moody's stock) bottomed in the financial crisis, the shares went on to double several times over in the few years following.
Data by YCharts.
Of course, things could get much worse from here, and Moody's financials could continue to deteriorate. It's still profitable, but keep an eye on that. Free cash flow is currently more than enough to cover the dividend, but not the recent pace of share buybacks ($871 million was repurchased in the first half of 2022). The company had $1.7 billion in cash and short-term investments as of June 2022, offset by $7.2 billion in long-term debt.
As of this writing, Moody's stock trades for about 25 times full-year expected adjusted earnings per share. It isn't cheap, but add this Buffett stock to your watchlist. When the storm clouds over the economy start to clear, Moody's could rocket higher.
10 stocks we like better than Moody's
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 Moody's 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. Nicholas Rossolillo and his clients have positions in Apple and Berkshire Hathaway (B shares). The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and Moody's. 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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The bulk of Warren Buffett's stock portfolio is concentrated in Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), and a handful of energy stocks, so these companies rightly get a lot of attention. Or maybe you remember Moody's for its role in incorrectly assessing the risk of mortgage-backed securities leading up to the Great Recession of 2007-9. MIS revenue fell nearly 32% through the first half of the year to $1.53 billion as businesses tighten up their budgets in preparation for a rough road ahead.
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The bulk of Warren Buffett's stock portfolio is concentrated in Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), and a handful of energy stocks, so these companies rightly get a lot of attention. But for our discussion here, know that Warren Buffett's Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) has 1.9% of its stock portfolio invested in Moody's. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple.
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The bulk of Warren Buffett's stock portfolio is concentrated in Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), and a handful of energy stocks, so these companies rightly get a lot of attention. A rock-solid dividend stock, imperfections and all Moody's is a financial data and credit rating company. This financial data stock is deeply out of favor Moody's long-term market outperformance includes a sharp sell-off in this stock over the past year.
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The bulk of Warren Buffett's stock portfolio is concentrated in Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), and a handful of energy stocks, so these companies rightly get a lot of attention. It pays a dividend, but besides that, history says it might almost be about time to start buying. Perhaps you've seen Moody's rankings on a company's bonds, helping investors assess how risky it would be to buy the debt.
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18904.0
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2022-10-14 00:00:00 UTC
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Investing in This ETF Right Now Could Make You a Millionaire Retiree
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AAPL
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https://www.nasdaq.com/articles/investing-in-this-etf-right-now-could-make-you-a-millionaire-retiree-10
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Retiring a millionaire may seem out of reach for many investors, but it's more attainable than you might think. In fact, you don't need to be a stock market expert or have a lot of money to build wealth through investing. What you do need, though, is the right investment.
Whether you're just getting started or looking for a simple way to strengthen your retirement savings, there's one ETF that could help you become a millionaire -- with next to no effort on your part.
Making money with an S&P 500 ETF
An S&P 500 ETF is a fund that tracks the S&P 500 index, meaning it includes the same stocks as the index and aims to mirror its performance. The S&P 500 contains stocks from 500 of the largest companies in the U.S. (including behemoth corporations like Amazon, Apple, and Tesla). When you invest in this ETF, you'll own a stake in all of these stocks.
This type of investment can be a smart option for a few reasons:
It provides instant diversification: Because each ETF includes stocks from 500 companies from a wide variety of industries, you can instantly build a diversified portfolio with a single investment. This can limit your risk and better protect your savings.
It's more likely to recover from downturns: All investments can take a hit in the short term during periods of volatility. But because the S&P 500 ETF includes stocks from some of the strongest companies in the world, this investment is far more likely to recover from market slumps.
It has a long, successful track record: The S&P 500 itself has a decades-long track record of earning positive average returns. By holding this investment for the long term, it's extremely likely that you, too, will see positive returns over time.
It's a low-maintenance investment: With an S&P 500 ETF, you never need to worry about choosing individual stocks or deciding when to buy or sell. All you have to do is invest consistently and let the fund do the rest.
The S&P 500 ETF thrives during periods of uncertainty. If you're nervous about investing during a bear market, this type of investment is a safer option.
Reaching millionaire status
There are several different S&P 500 ETFs to choose from. Some of the most popular options include the Vanguard S&P 500 ETF (NYSEMKT: VOO), iShares Core S&P 500 ETF (NYSEMKT: IVV), and SPDR S&P 500 ETF Trust (NYSEMKT: SPY).
Historically, the S&P 500 has seen positive average returns of around 10% per year. This doesn't necessarily mean you'll see 10% returns each and every year. Rather, the annual highs and lows should average out to around 10% per year over time.
It's especially important, then, to maintain a long-term outlook with this type of investment. In the near term, your ETF could drop in value if stock prices fall. But over the long run, you're almost guaranteed to see positive average returns.
Those returns can add up substantially, too. Say, for example, you're aiming to save $1 million by retirement age, and you're investing in an S&P 500 ETF earning a 10% average annual return. Here's approximately how much you'd need to invest each month, depending on how many years you have left to save.
NUMBER OF YEARS AMOUNT INVESTED PER MONTH TOTAL SAVINGS
40 $200 $1.062 million
35 $325 $1.057 million
30 $525 $1.036 million
25 $850 $1.003 million
20 $1,500 $1.031 million
Source: Calculations by author via Investor.gov.
The more time you give your money to grow, the less you'll need to invest each month to reach $1 million or more in savings. If possible, then, it's best to start investing sooner rather than later.
Becoming a stock market millionaire isn't easy, but it's possible. By investing in an S&P 500 ETF and holding your investments for as long as possible, you could earn more than you might think.
10 stocks we like better than Vanguard S&P 500 ETF
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Katie Brockman has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Amazon, Apple, Tesla, and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In fact, you don't need to be a stock market expert or have a lot of money to build wealth through investing. It's a low-maintenance investment: With an S&P 500 ETF, you never need to worry about choosing individual stocks or deciding when to buy or sell. Say, for example, you're aiming to save $1 million by retirement age, and you're investing in an S&P 500 ETF earning a 10% average annual return.
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It has a long, successful track record: The S&P 500 itself has a decades-long track record of earning positive average returns. The Motley Fool has positions in and recommends Amazon, Apple, Tesla, and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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This type of investment can be a smart option for a few reasons: It provides instant diversification: Because each ETF includes stocks from 500 companies from a wide variety of industries, you can instantly build a diversified portfolio with a single investment. Say, for example, you're aiming to save $1 million by retirement age, and you're investing in an S&P 500 ETF earning a 10% average annual return. By investing in an S&P 500 ETF and holding your investments for as long as possible, you could earn more than you might think.
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What you do need, though, is the right investment. This doesn't necessarily mean you'll see 10% returns each and every year. Say, for example, you're aiming to save $1 million by retirement age, and you're investing in an S&P 500 ETF earning a 10% average annual return.
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18905.0
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2022-10-14 00:00:00 UTC
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3 Best Buffett Stocks to Buy for the Long Haul
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AAPL
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https://www.nasdaq.com/articles/3-best-buffett-stocks-to-buy-for-the-long-haul-1
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nan
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nan
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Which person comes to mind first when you hear the phrase "Invest for the long term"? I suspect for many, it's Warren Buffett. The investing icon has promoted a long-term mindset for decades. And he has practiced what he preaches.
But which of the stocks currently in Buffett's portfolio are the top choices for long-term investors? Here are my picks for the three best Buffett stocks to buy for the long haul.
1. Berkshire Hathaway
The obvious top choice, in my view, is Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). Between 1965 and 2021, Berkshire delivered an astounding compound annual growth rate of 20.1%, nearly double the return of the S&P 500. It has also beaten the S&P so far this year despite sliding somewhat. Unsurprisingly, the only stock that Buffett has bought in both of the last two bear markets is none other than Berkshire itself.
This past performance isn't my main reason for choosing Berkshire, though. Investing in it is almost like buying shares of an exchange-traded fund.
Berkshire is made up of more than 60 companies, including huge insurance, railroad, and energy businesses, plus lots of smaller units. It also holds equity stakes in nearly 50 publicly traded companies.
This significant diversification across multiple industries should make it an excellent pick over the long term. It certainly doesn't hurt that you also benefit from the experience and wisdom of two outstanding investors: Buffett and his partner, Charlie Munger.
2. Markel
Buffett has added only eight new stocks to Berkshire's portfolio this year. I agree with my Motley Fool colleague Matthew Frankel that Markel (NYSE: MKL) is the best of the bunch.
I like Markel for many of the same reasons that I like Berkshire. It has performed well over time (and is beating the S&P so far this year). It also offers diversification similar to what Berkshire does.
Like Berkshire, Markel operates multiple businesses. Its primary focus is specialty insurance. The company's Markel Ventures also owns controlling interests in 19 companies that operate in a variety of industries.
It also invests in other publicly traded companies, as Berkshire does. It has a larger and more diverse portfolio than Berkshire. However, there are quite a few common denominators between the two. Its management team also shares that same long-term mindset.
3. Apple
Apple (NASDAQ: AAPL) ranks as the biggest holding in Berkshire's portfolio by far. Buffett even refers to it as one of Berkshire's "four giants," even though the conglomerate owns less than 6% of the tech company.
If you only looked at Apple's short-term performance, you might question this pick. The stock is down around 20% year to date. But it has been a huge winner over the long term.
Buffett obviously believes that Apple will continue those winning ways. I fully agree. The company's iPhone-centric ecosystem will almost certainly expand over time.
I especially like Apple's prospects in augmented reality (AR). CEO Tim Cook recently stated in an interview with the Dutch magazine Bright, "I think AR is a profound technology that will affect everything." My hunch is that he will be proved right. And Apple should be one of the leaders in making it happen.
10 stocks we like better than Apple
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 30, 2022
Keith Speights has positions in Apple and Berkshire Hathaway (B shares). The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and Markel. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) ranks as the biggest holding in Berkshire's portfolio by far. Berkshire is made up of more than 60 companies, including huge insurance, railroad, and energy businesses, plus lots of smaller units. It certainly doesn't hurt that you also benefit from the experience and wisdom of two outstanding investors: Buffett and his partner, Charlie Munger.
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Apple Apple (NASDAQ: AAPL) ranks as the biggest holding in Berkshire's portfolio by far. Berkshire Hathaway The obvious top choice, in my view, is Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and Markel.
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Apple Apple (NASDAQ: AAPL) ranks as the biggest holding in Berkshire's portfolio by far. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Keith Speights has positions in Apple and Berkshire Hathaway (B shares). The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and Markel.
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Apple Apple (NASDAQ: AAPL) ranks as the biggest holding in Berkshire's portfolio by far. This significant diversification across multiple industries should make it an excellent pick over the long term. Markel Buffett has added only eight new stocks to Berkshire's portfolio this year.
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18906.0
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2022-10-14 00:00:00 UTC
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Company News for Oct 14, 2022
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AAPL
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https://www.nasdaq.com/articles/company-news-for-oct-14-2022
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nan
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nan
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Shares of BlackRock, Inc. BLK surged 6.6% after posting third-quarter fiscal 2022 earnings of $9.55 per share, smashing the Zacks Consensus Estimate of $7.70 per share.
Shares of The Goldman Sachs Group, Inc. GS jumped 4% as bank stocks rallied.
Taiwan Semiconductor Manufacturing Company Limited’s TSM shares rose 3.9% after posting third-quarter fiscal 2022 earnings of $1.79 per share, beating the Zacks Consensus Estimate of $1.69 per share.
Apple Inc. AAPL shares rose 3.4% on the broader tech rally.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
BlackRock, Inc. (BLK): Free Stock Analysis Report
Taiwan Semiconductor Manufacturing Company Ltd. (TSM): 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 shares rose 3.4% on the broader tech rally. Apple Inc. (AAPL): Free Stock Analysis Report Shares of The Goldman Sachs Group, Inc. GS jumped 4% as bank stocks rallied.
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Apple Inc. AAPL shares rose 3.4% on the broader tech rally. Apple Inc. (AAPL): Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Limited’s TSM shares rose 3.9% after posting third-quarter fiscal 2022 earnings of $1.79 per share, beating the Zacks Consensus Estimate of $1.69 per share.
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Apple Inc. AAPL shares rose 3.4% on the broader tech rally. Apple Inc. (AAPL): Free Stock Analysis Report Shares of BlackRock, Inc. BLK surged 6.6% after posting third-quarter fiscal 2022 earnings of $9.55 per share, smashing the Zacks Consensus Estimate of $7.70 per share.
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Apple Inc. AAPL shares rose 3.4% on the broader tech rally. Apple Inc. (AAPL): Free Stock Analysis Report This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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18907.0
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2022-10-14 00:00:00 UTC
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Microsoft Just Gave Meta Platforms a Big Vote of Confidence
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AAPL
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https://www.nasdaq.com/articles/microsoft-just-gave-meta-platforms-a-big-vote-of-confidence
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nan
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nan
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It's been a bad year for tech. Even "safe" stocks with wide moats, lots of cash, and good long-term growth prospects, such as Microsoft (NASDAQ: MSFT), are down a lot. Microsoft is down a whopping 32.5% on the year -- even more than the overall market.
If an AAA-rated company like Microsoft is down that much, you can imagine how other tech stocks have done if things haven't gone perfectly. Case in point: Meta Platforms (NASDAQ: META), which is down a stunning 62% on the year.
With Meta now trading at a bargain-basement valuation, it just got a helping hand from none other than Microsoft itself.
Metaverse spending has drawn skepticism
Meta's stunning decline shows a lack of faith from investors on Zuckerberg's metaverse vision. Meta printed $5.8 billion in operating losses in its Reality Labs segment over the first six months of 2022, with management apparently content to continue making heavy investments in pursuit of metaverse leadership. While CEO Mark Zuckerberg believes the future potential market is in the hundreds of billions of dollars per year, as of now, Meta's Reality Labs segment makes minimal revenue, compared with its overall business.
Investor impatience is also being amplified by declines in the core business across Facebook and Instagram. Last quarter, those two megaplatforms reported a slight decline in revenue, with more projected for the third quarter. A weak advertising environment, the competitive threat of Tik Tok, and currency fluctuations are all conspiring to lower revenue for the first time in these platforms' histories.
With a core business that generates profits but may not be a big growth engine going forward, it's crucial the company continues to show progress on its big metaverse bet.
Image source: Getty Images.
The Metaverse will include Windows, Teams, and other Microsoft products
On Tuesday, Meta's metaverse project got a nice jolt of confidence when Microsoft CEO Satya Nadella appeared at the Meta Connect 2022 conference. At the event, Meta showed off its latest VR headset, the Quest Pro, which will retail for $1,500, an increase from $1,100 for last-year's Quest 2. It will be available for purchase starting October 25.
The segment with Nadella highlighted how Microsoft's enterprise apps, from Teams to Office 365 to security apps, would be integrated seamlessly within Meta's Horizon virtual-office environment.
While some only think of VR as a gaming device and potentially a social platform, Meta has eyes on the enterprise space, as well. The lack of enterprise exposure is a key current weakness in Meta's business portfolio, compared with other major FAANG names. One could argue enterprise businesses are more desirable than consumer ones as they tend to be stickier, with more stable customers, due to switching costs.
There isn't a bigger enterprise-software vendor than Microsoft, so it was great to see Microsoft getting behind Meta's new virtual workspace. It may seem strange, since Meta is also developing its own virtual-collaboration software and Microsoft also has its own HoloLens VR product.
However, under Nadella, Microsoft has opened up its software to rival ecosystems, such as Apple's (NASDAQ: AAPL) iOS operating system. That was a departure from how Microsoft used to behave in the 1990s and early 2000s, when it sought to boost sales of its own Windows OS by only allowing its widely used software on Windows devices. However, opening itself up to other platforms has been a win-win for both Microsoft and Apple, and it appears Microsoft and Meta think the same will be true of the metaverse.
Can Microsoft help Meta turn things around?
Microsoft's endorsement of "office VR" likely won't help Meta's stock in the near term. More likely, the immediate movement in Meta's stock will be based on the performance of Facebook and Instagram.
On that front, Meta is investing heavily in its Reels feature, powered by a new GPU-fueled artificial-intelligence (AI) engine, to better compete with Tik Tok. The downside is that Reels doesn't monetize as well as regular newsfeed ads just yet.
On the upcoming third-quarterearnings call investors should probably be listening for how Reels are performing, as well as the state of digital ads today. That's the most important factor in Meta's current revenue and profit trajectory.
However, there may also be more color on how Meta plans to monetize the metaverse in the future. While management has alluded to the sale of VR headsets and digital goods, enterprise revenue would certainly help a lot. Perhaps management will discuss how it plans to monetize the virtual office of the future.
10 stocks we like better than Meta Platforms, Inc.
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Meta Platforms, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 30, 2022
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Billy Duberstein has positions in Apple, Meta Platforms, Inc., and Microsoft and has the following options: short January 2023 $210 calls on Apple and short October 2022 $200 puts on Microsoft. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Apple, Meta Platforms, Inc., and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, under Nadella, Microsoft has opened up its software to rival ecosystems, such as Apple's (NASDAQ: AAPL) iOS operating system. Meta printed $5.8 billion in operating losses in its Reality Labs segment over the first six months of 2022, with management apparently content to continue making heavy investments in pursuit of metaverse leadership. While CEO Mark Zuckerberg believes the future potential market is in the hundreds of billions of dollars per year, as of now, Meta's Reality Labs segment makes minimal revenue, compared with its overall business.
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However, under Nadella, Microsoft has opened up its software to rival ecosystems, such as Apple's (NASDAQ: AAPL) iOS operating system. While management has alluded to the sale of VR headsets and digital goods, enterprise revenue would certainly help a lot. The Motley Fool has positions in and recommends Apple, Meta Platforms, Inc., and Microsoft.
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However, under Nadella, Microsoft has opened up its software to rival ecosystems, such as Apple's (NASDAQ: AAPL) iOS operating system. The Metaverse will include Windows, Teams, and other Microsoft products On Tuesday, Meta's metaverse project got a nice jolt of confidence when Microsoft CEO Satya Nadella appeared at the Meta Connect 2022 conference. However, opening itself up to other platforms has been a win-win for both Microsoft and Apple, and it appears Microsoft and Meta think the same will be true of the metaverse.
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However, under Nadella, Microsoft has opened up its software to rival ecosystems, such as Apple's (NASDAQ: AAPL) iOS operating system. If an AAA-rated company like Microsoft is down that much, you can imagine how other tech stocks have done if things haven't gone perfectly. The Metaverse will include Windows, Teams, and other Microsoft products On Tuesday, Meta's metaverse project got a nice jolt of confidence when Microsoft CEO Satya Nadella appeared at the Meta Connect 2022 conference.
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18908.0
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2022-10-13 00:00:00 UTC
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Metaverse Woes: Meta Platforms Can't Even Get Its Own Employees Excited About the Metaverse
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AAPL
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https://www.nasdaq.com/articles/metaverse-woes%3A-meta-platforms-cant-even-get-its-own-employees-excited-about-the-metaverse
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nan
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nan
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Meta Platforms (NASDAQ: META) is spending $10 billion per year on building out the metaverse, but its employees aren't even spending much time with a headset on. So why would consumers adopt the metaverse in large numbers? In the video below, Travis Hoium goes through major questions about Meta's grand metaverse vision and why its money might be better used elsewhere.
*Stock prices used were the end-of-day prices of Oct. 7, 2022. The video was published on Oct. 11, 2022.
10 stocks we like better than Meta Platforms, Inc.
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Meta Platforms, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 30, 2022
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Apple and Unity Software Inc. The Motley Fool has positions in and recommends Apple, Meta Platforms, Inc., Microsoft, and Unity Software Inc. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Travis 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 the video below, Travis Hoium goes through major questions about Meta's grand metaverse vision and why its money might be better used elsewhere. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Apple, Meta Platforms, Inc., Microsoft, and Unity Software Inc.
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Meta Platforms (NASDAQ: META) is spending $10 billion per year on building out the metaverse, but its employees aren't even spending much time with a headset on. Travis Hoium has positions in Apple and Unity Software Inc. The Motley Fool has positions in and recommends Apple, Meta Platforms, Inc., Microsoft, and Unity Software Inc.
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Meta Platforms (NASDAQ: META) is spending $10 billion per year on building out the metaverse, but its employees aren't even spending much time with a headset on. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Apple, Meta Platforms, Inc., Microsoft, and Unity Software Inc.
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10 stocks we like better than Meta Platforms, Inc. Travis Hoium has positions in Apple and Unity Software Inc. His opinions remain his own and are unaffected by The Motley Fool.
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18909.0
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2022-10-13 00:00:00 UTC
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Apple Card To Allow Users Grow Daily Cash Rewards
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AAPL
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https://www.nasdaq.com/articles/apple-card-to-allow-users-grow-daily-cash-rewards
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nan
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nan
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(RTTNews) - Tech giant Apple Inc. (AAPL) Thursday announced that Apple Card users will be able to open a new "high-yield" savings account from Goldman Sachs and have their Daily Cash automatically deposited into it, with no fees, no minimum deposits, and no minimum balance requirements.
"Savings enables Apple Card users to grow their Daily Cash rewards over time, while also saving for the future," said Jennifer Bailey, Apple's vice president of Apple Pay and Apple Wallet. "Savings delivers even more value to users' favorite Apple Card benefit — Daily Cash — while offering another easy-to-use tool designed to help users lead healthier financial lives."
According to the company, Apple Card users will be able to easily set up and manage savings directly in their Apple Card in Wallet. Once users set up their Savings account, all future Daily Cash received will be automatically deposited into it, or they can choose to continue to have it added to an Apple Cash card in Wallet.
Apple Card users get 3 percent Daily Cash on Apple Card purchases made using Apple Pay with Apple and select merchants, including Uber and Uber Eats, Walgreens, Nike, Panera Bread, T-Mobile, ExxonMobil, and Ace Hardware, as well as 2 percent Daily Cash when they use Apple Pay at other merchants, and 1 percent on all other purchases.
To expand Savings even further, users can also deposit additional funds into their Savings account through a linked bank account, or from their Apple Cash balance.
The views and 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) Thursday announced that Apple Card users will be able to open a new "high-yield" savings account from Goldman Sachs and have their Daily Cash automatically deposited into it, with no fees, no minimum deposits, and no minimum balance requirements. "Savings delivers even more value to users' favorite Apple Card benefit — Daily Cash — while offering another easy-to-use tool designed to help users lead healthier financial lives." Once users set up their Savings account, all future Daily Cash received will be automatically deposited into it, or they can choose to continue to have it added to an Apple Cash card in Wallet.
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(RTTNews) - Tech giant Apple Inc. (AAPL) Thursday announced that Apple Card users will be able to open a new "high-yield" savings account from Goldman Sachs and have their Daily Cash automatically deposited into it, with no fees, no minimum deposits, and no minimum balance requirements. Once users set up their Savings account, all future Daily Cash received will be automatically deposited into it, or they can choose to continue to have it added to an Apple Cash card in Wallet. Apple Card users get 3 percent Daily Cash on Apple Card purchases made using Apple Pay with Apple and select merchants, including Uber and Uber Eats, Walgreens, Nike, Panera Bread, T-Mobile, ExxonMobil, and Ace Hardware, as well as 2 percent Daily Cash when they use Apple Pay at other merchants, and 1 percent on all other purchases.
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(RTTNews) - Tech giant Apple Inc. (AAPL) Thursday announced that Apple Card users will be able to open a new "high-yield" savings account from Goldman Sachs and have their Daily Cash automatically deposited into it, with no fees, no minimum deposits, and no minimum balance requirements. "Savings enables Apple Card users to grow their Daily Cash rewards over time, while also saving for the future," said Jennifer Bailey, Apple's vice president of Apple Pay and Apple Wallet. Apple Card users get 3 percent Daily Cash on Apple Card purchases made using Apple Pay with Apple and select merchants, including Uber and Uber Eats, Walgreens, Nike, Panera Bread, T-Mobile, ExxonMobil, and Ace Hardware, as well as 2 percent Daily Cash when they use Apple Pay at other merchants, and 1 percent on all other purchases.
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(RTTNews) - Tech giant Apple Inc. (AAPL) Thursday announced that Apple Card users will be able to open a new "high-yield" savings account from Goldman Sachs and have their Daily Cash automatically deposited into it, with no fees, no minimum deposits, and no minimum balance requirements. "Savings delivers even more value to users' favorite Apple Card benefit — Daily Cash — while offering another easy-to-use tool designed to help users lead healthier financial lives." Once users set up their Savings account, all future Daily Cash received will be automatically deposited into it, or they can choose to continue to have it added to an Apple Cash card in Wallet.
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18910.0
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2022-10-13 00:00:00 UTC
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Financial Sector Update for 10/13/2022: NVEI, NVEI.TO, GS, AAPL, PGR
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AAPL
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https://www.nasdaq.com/articles/financial-sector-update-for-10-13-2022%3A-nvei-nvei.to-gs-aapl-pgr
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nan
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nan
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Financial stocks rallied Thursday with the broader markets, with the NYSE Financial Index rising 3.4% in afternoon trading while the SPDR Financial Select Sector ETF (XLF) was ahead 4%.
The Philadelphia Housing Index was flat and the SPDR Real Estate Select Sector ETF (XLRE) was climbing 1.8%.
Bitcoin was up 0.2% to $19,159, while the yield for 10-year US Treasuries was climbing 1.3 basis points to 3.915%.
In company news, Nuvei (NVEI) rose 1.5% after Thursday announcing a new contract with Lottomatica calling on the Canadian payments-technology firm to assist the Italian sports-betting company re-platforms its digital services. Financial terms and other contract details were not disclosed.
Goldman Sachs (GS) added 4% after Apple (AAPL) Thursday said customers will soon be able to open a Goldman high-yield savings account and make automatic deposits of their cash rewards from using its Apple Cards and Apple Wallet apps.
Progressive (PGR) fell 0.2%, paring almost of a more than 9% decline earlier Thursday, after Q3 results from the home and auto insurance company trailed analyst estimates.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Goldman Sachs (GS) added 4% after Apple (AAPL) Thursday said customers will soon be able to open a Goldman high-yield savings account and make automatic deposits of their cash rewards from using its Apple Cards and Apple Wallet apps. The Philadelphia Housing Index was flat and the SPDR Real Estate Select Sector ETF (XLRE) was climbing 1.8%. In company news, Nuvei (NVEI) rose 1.5% after Thursday announcing a new contract with Lottomatica calling on the Canadian payments-technology firm to assist the Italian sports-betting company re-platforms its digital services.
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Goldman Sachs (GS) added 4% after Apple (AAPL) Thursday said customers will soon be able to open a Goldman high-yield savings account and make automatic deposits of their cash rewards from using its Apple Cards and Apple Wallet apps. Financial stocks rallied Thursday with the broader markets, with the NYSE Financial Index rising 3.4% in afternoon trading while the SPDR Financial Select Sector ETF (XLF) was ahead 4%. The Philadelphia Housing Index was flat and the SPDR Real Estate Select Sector ETF (XLRE) was climbing 1.8%.
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Goldman Sachs (GS) added 4% after Apple (AAPL) Thursday said customers will soon be able to open a Goldman high-yield savings account and make automatic deposits of their cash rewards from using its Apple Cards and Apple Wallet apps. Financial stocks rallied Thursday with the broader markets, with the NYSE Financial Index rising 3.4% in afternoon trading while the SPDR Financial Select Sector ETF (XLF) was ahead 4%. In company news, Nuvei (NVEI) rose 1.5% after Thursday announcing a new contract with Lottomatica calling on the Canadian payments-technology firm to assist the Italian sports-betting company re-platforms its digital services.
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Goldman Sachs (GS) added 4% after Apple (AAPL) Thursday said customers will soon be able to open a Goldman high-yield savings account and make automatic deposits of their cash rewards from using its Apple Cards and Apple Wallet apps. Financial stocks rallied Thursday with the broader markets, with the NYSE Financial Index rising 3.4% in afternoon trading while the SPDR Financial Select Sector ETF (XLF) was ahead 4%. Bitcoin was up 0.2% to $19,159, while the yield for 10-year US Treasuries was climbing 1.3 basis points to 3.915%.
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18911.0
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2022-10-13 00:00:00 UTC
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Noteworthy Thursday Option Activity: AAPL, DOCU, AYX
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AAPL
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-aapl-docu-ayx
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 1.5 million contracts have traded so far, representing approximately 149.4 million underlying shares. That amounts to about 152.2% of AAPL's average daily trading volume over the past month of 98.1 million shares. Particularly high volume was seen for the $135 strike put option expiring October 14, 2022, with 51,900 contracts trading so far today, representing approximately 5.2 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $135 strike highlighted in orange:
DocuSign Inc (Symbol: DOCU) options are showing a volume of 58,323 contracts thus far today. That number of contracts represents approximately 5.8 million underlying shares, working out to a sizeable 115.5% of DOCU's average daily trading volume over the past month, of 5.0 million shares. Particularly high volume was seen for the $110 strike put option expiring January 20, 2023, with 10,675 contracts trading so far today, representing approximately 1.1 million underlying shares of DOCU. Below is a chart showing DOCU's trailing twelve month trading history, with the $110 strike highlighted in orange:
And Alteryx Inc (Symbol: AYX) saw options trading volume of 7,463 contracts, representing approximately 746,300 underlying shares or approximately 106.9% of AYX's average daily trading volume over the past month, of 698,370 shares. Particularly high volume was seen for the $55 strike call option expiring November 18, 2022, with 2,837 contracts trading so far today, representing approximately 283,700 underlying shares of AYX. Below is a chart showing AYX's trailing twelve month trading history, with the $55 strike highlighted in orange:
For the various different available expirations for AAPL options, DOCU options, or AYX 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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Particularly high volume was seen for the $135 strike put option expiring October 14, 2022, with 51,900 contracts trading so far today, representing approximately 5.2 million underlying shares of AAPL. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 1.5 million contracts have traded so far, representing approximately 149.4 million underlying shares. That amounts to about 152.2% of AAPL's average daily trading volume over the past month of 98.1 million shares.
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Particularly high volume was seen for the $135 strike put option expiring October 14, 2022, with 51,900 contracts trading so far today, representing approximately 5.2 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $135 strike highlighted in orange: DocuSign Inc (Symbol: DOCU) options are showing a volume of 58,323 contracts thus far today. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 1.5 million contracts have traded so far, representing approximately 149.4 million underlying shares.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 1.5 million contracts have traded so far, representing approximately 149.4 million underlying shares. Particularly high volume was seen for the $135 strike put option expiring October 14, 2022, with 51,900 contracts trading so far today, representing approximately 5.2 million underlying shares of AAPL. That amounts to about 152.2% of AAPL's average daily trading volume over the past month of 98.1 million shares.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 1.5 million contracts have traded so far, representing approximately 149.4 million underlying shares. That amounts to about 152.2% of AAPL's average daily trading volume over the past month of 98.1 million shares. Particularly high volume was seen for the $135 strike put option expiring October 14, 2022, with 51,900 contracts trading so far today, representing approximately 5.2 million underlying shares of AAPL.
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18912.0
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2022-10-13 00:00:00 UTC
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Chipmaker TSMC's shares leap after profit beats estimates
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AAPL
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https://www.nasdaq.com/articles/chipmaker-tsmcs-shares-leap-after-profit-beats-estimates
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nan
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nan
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Adds details, analyst's comments
TAIPEI, Oct 14 (Reuters) - TSMC 2330.TW shares jumped more than 4% on Friday morning, outperforming the broader market .TWII, after the Taiwanese chipmaker announced a forecast-beating third-quarter profit, though it struck a more cautious note on upcoming demand.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, posted on Thursday an 80% on-year surge in profit for the July-September period of 2022, the strongest growth in two years.
However, the company also trimmed capital spending by at least 10% for this year. TSMC, Asia's most valuable listed company, said it was being more conservative in planning investments for 2023, but still expected "a growth year".
Analysts at Daiwa Capital Markets said investors should take advantage of the cheap stock — TSMC shares have fallen more than 30% so far this year — and noted the company had given "intact" guidance for the fourth quarter and 2023, despite cutting capex to optimise capacity amid a broad inventory correction.
"Although this correction will likely result in suboptimal loading for TSMC in 1H23, it is well in our expectation and, more importantly, we stick with our view that TSMC this time will be counter-cyclical, weathering better than peers through this correction into 2023," it said.
Morningstar said in a research note that TSMC shares were cheap on long-term computing growth, especially growth for artificial intelligence, Internet of Things, and high-performance computing "may last for decades".
Shares in TSMC's smaller Taiwanese competitor, United Microelectronics Corp 2303.TW, were also up more than 4% on Friday morning. It reports third-quarter earnings on Oct. 26.
(Reporting by Ben Blanchard; Editing by Christian Schmollinger and Uttaresh.V)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, posted on Thursday an 80% on-year surge in profit for the July-September period of 2022, the strongest growth in two years. Adds details, analyst's comments TAIPEI, Oct 14 (Reuters) - TSMC 2330.TW shares jumped more than 4% on Friday morning, outperforming the broader market .TWII, after the Taiwanese chipmaker announced a forecast-beating third-quarter profit, though it struck a more cautious note on upcoming demand. Analysts at Daiwa Capital Markets said investors should take advantage of the cheap stock — TSMC shares have fallen more than 30% so far this year — and noted the company had given "intact" guidance for the fourth quarter and 2023, despite cutting capex to optimise capacity amid a broad inventory correction.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, posted on Thursday an 80% on-year surge in profit for the July-September period of 2022, the strongest growth in two years. Adds details, analyst's comments TAIPEI, Oct 14 (Reuters) - TSMC 2330.TW shares jumped more than 4% on Friday morning, outperforming the broader market .TWII, after the Taiwanese chipmaker announced a forecast-beating third-quarter profit, though it struck a more cautious note on upcoming demand. TSMC, Asia's most valuable listed company, said it was being more conservative in planning investments for 2023, but still expected "a growth year".
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, posted on Thursday an 80% on-year surge in profit for the July-September period of 2022, the strongest growth in two years. Adds details, analyst's comments TAIPEI, Oct 14 (Reuters) - TSMC 2330.TW shares jumped more than 4% on Friday morning, outperforming the broader market .TWII, after the Taiwanese chipmaker announced a forecast-beating third-quarter profit, though it struck a more cautious note on upcoming demand. Analysts at Daiwa Capital Markets said investors should take advantage of the cheap stock — TSMC shares have fallen more than 30% so far this year — and noted the company had given "intact" guidance for the fourth quarter and 2023, despite cutting capex to optimise capacity amid a broad inventory correction.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, posted on Thursday an 80% on-year surge in profit for the July-September period of 2022, the strongest growth in two years. Adds details, analyst's comments TAIPEI, Oct 14 (Reuters) - TSMC 2330.TW shares jumped more than 4% on Friday morning, outperforming the broader market .TWII, after the Taiwanese chipmaker announced a forecast-beating third-quarter profit, though it struck a more cautious note on upcoming demand. However, the company also trimmed capital spending by at least 10% for this year.
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18913.0
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2022-10-13 00:00:00 UTC
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Financial Sector Update for 10/13/2022: BFST, NVEI, NVEI.TO, GS, AAPL, PGR
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AAPL
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https://www.nasdaq.com/articles/financial-sector-update-for-10-13-2022%3A-bfst-nvei-nvei.to-gs-aapl-pgr
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nan
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nan
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Financial stocks rallied Thursday with the broader markets, with the NYSE Financial Index rising 3.7% in afternoon trading while the SPDR Financial Select Sector ETF (XLF) was ahead 4%.
The Philadelphia Housing Index was flat and the SPDR Real Estate Select Sector ETF (XLRE) was climbing 1.8%.
Bitcoin was up 1.1% to $19,363, while the yield for 10-year US Treasuries was climbing 5.0 basis points to 3.952%.
In company news, Business First Bancshares (BFST) slid 2.1% after the bank holding company overnight announced a $50 million public offering of 2.5 million shares priced at $20 apiece, or $9% under Wednesday's closing price.
To the upside, Progressive (PGR) was 1% higher, reversing a more than 9% decline earlier Thursday that followed the home and auto insurer reporting a Q3 profit of $0.20 per share, up $0.01 per share over year-ago levels but still trailing the Capital IQ consensus looking for $1.20 per share. Net premiums written increased 4.6% to $13.02 billion, also lagging the $13.40 billion analyst mean.
Nuvei (NVEI) rose 1.4% after Thursday announcing a new contract with Lottomatica calling on the Canadian payments-technology firm to assist the Italian sports-betting company re-platforms its digital services. Financial terms and other contract details were not disclosed.
Goldman Sachs (GS) added 4% after Apple (AAPL) Thursday said customers will soon be able to open a Goldman high-yield savings account and make automatic deposits of their cash rewards from using its Apple Cards and Apple Wallet apps.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Goldman Sachs (GS) added 4% after Apple (AAPL) Thursday said customers will soon be able to open a Goldman high-yield savings account and make automatic deposits of their cash rewards from using its Apple Cards and Apple Wallet apps. The Philadelphia Housing Index was flat and the SPDR Real Estate Select Sector ETF (XLRE) was climbing 1.8%. In company news, Business First Bancshares (BFST) slid 2.1% after the bank holding company overnight announced a $50 million public offering of 2.5 million shares priced at $20 apiece, or $9% under Wednesday's closing price.
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Goldman Sachs (GS) added 4% after Apple (AAPL) Thursday said customers will soon be able to open a Goldman high-yield savings account and make automatic deposits of their cash rewards from using its Apple Cards and Apple Wallet apps. Financial stocks rallied Thursday with the broader markets, with the NYSE Financial Index rising 3.7% in afternoon trading while the SPDR Financial Select Sector ETF (XLF) was ahead 4%. The Philadelphia Housing Index was flat and the SPDR Real Estate Select Sector ETF (XLRE) was climbing 1.8%.
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Goldman Sachs (GS) added 4% after Apple (AAPL) Thursday said customers will soon be able to open a Goldman high-yield savings account and make automatic deposits of their cash rewards from using its Apple Cards and Apple Wallet apps. Financial stocks rallied Thursday with the broader markets, with the NYSE Financial Index rising 3.7% in afternoon trading while the SPDR Financial Select Sector ETF (XLF) was ahead 4%. In company news, Business First Bancshares (BFST) slid 2.1% after the bank holding company overnight announced a $50 million public offering of 2.5 million shares priced at $20 apiece, or $9% under Wednesday's closing price.
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Goldman Sachs (GS) added 4% after Apple (AAPL) Thursday said customers will soon be able to open a Goldman high-yield savings account and make automatic deposits of their cash rewards from using its Apple Cards and Apple Wallet apps. Financial stocks rallied Thursday with the broader markets, with the NYSE Financial Index rising 3.7% in afternoon trading while the SPDR Financial Select Sector ETF (XLF) was ahead 4%. Bitcoin was up 1.1% to $19,363, while the yield for 10-year US Treasuries was climbing 5.0 basis points to 3.952%.
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18914.0
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2022-10-13 00:00:00 UTC
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Netflix Earnings Preview: Can NFLX Get its Mojo Back?
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AAPL
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https://www.nasdaq.com/articles/netflix-earnings-preview%3A-can-nflx-get-its-mojo-back
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nan
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nan
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Trading 67% off its highs, Netflix NFLX is set to report Q3 earnings on 10/18/2022. The company’s earnings are always heavily covered with the stock tending to have big movements in either direction after reporting. The direction of the stock usually hinges on the company’s guidance for subscriber growth above all else.
The streaming leader’s revenue and subscriber growth are critically analyzed during earnings season, with consumers now having more options for streaming content. Apple AAPL, Amazon AMZN, and Disney DIS are all respectable competitors in the streaming market.
During Q2, Netflix expected to lose 2 million subscribers and was excited to lose far less at 970,000. The company will hope to stop the bleeding going forward. There are still growth opportunities with linear tv largely replaced by streaming.
Along with monitoring subscriber growth, investors will want to pay attention to Netflix’s guidance on its advertising initiative. Netflix recently announced it plans to officially launch a cheaper subscription service in November that will feature ads.
Some analysts believe the company could make billions from monetizing ad revenue. The potential growth in ad revenue could help NFLX get its mojo back as Wall Street and investors look for the chance to possibly get back in on Netflix stock again.
Performance
Netflix is down -61% year to date, with a large drop coming in April as investors strayed away from growth stocks. The company also announced it lost subscribers during Q1 for the first time in 10 years, adding fuel to the fire.
Despite a recent string of earnings beats, the stock has plummeted on any shaky guidance as Wall Street fears Netflix’s growth may already be behind it.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
Netflix’s growth is largely reflected in itsstellar priceperformance over the last decade. NFLX is still up a mind-blowing +2,395% over the last 10 years, crushing the benchmark and its peer groups +92%.
Wall Street was ok with paying a premium for NFLX in the past because of its pioneer-like growth prospects. Netflix was what many might consider the stock of the decade and one of the best large cap performers,
Outlook
The Zacks Consensus Estimate for NFLX’s Q3 earnings is $2.12 per share, which would represent a -33% decrease from Q3 2021. Operating and expansion costs appear to be weighing on Q3 earnings as sales are expected to be up 5% at $7.85 billion.
Earnings revisions have also trended down significantly from $2.71 at the beginning of the quarter.
Year over year, NFLX earnings are expected to decline 11% in 2022 but rise 9% in FY23 at $10.98 a share. Top line growth is expected, with FY22 sales projected to rise 6% and another 7% in FY23 to $33.89 billion.
This growth is much slower than what it was in the past and is attributed to its stalling subscriber growth. Netflix is expected to add 1 million subscribers during the third quarter compared to 4.4 million in Q3 2021.
Full-year estimate revisions have also trended down for the current year and FY23.
Valuation
Trading around $232 a share, NFLX has a P/E of 22X. NFLX trades much lower than the 65.1X it saw earlier in the year. Even better, NFLX trades far more reasonably than its 2,640.6X high over the last decade and the median of 111.9X.
Image Source: Zacks Investment Research
Bottom Line
Investors are hoping that NFLX can start to rebound after a disastrous year thus far.
Netflix currently lands a Zacks Rank #3 (Hold). It will be important to see if the optimism about the company’s potential to capitalize on ad revenue comes to fruition in its outlook. If management can pinpoint the reemergence of growth, the stock could rebound.
The average Zacks Price Target offers 19% upside from current levels and patient investors could be rewarded for holding the stock.
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
Netflix, Inc. (NFLX): Free Stock Analysis Report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
The Walt Disney Company (DIS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL, Amazon AMZN, and Disney DIS are all respectable competitors in the streaming market. Apple Inc. (AAPL): Free Stock Analysis Report Despite a recent string of earnings beats, the stock has plummeted on any shaky guidance as Wall Street fears Netflix’s growth may already be behind it.
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Apple AAPL, Amazon AMZN, and Disney DIS are all respectable competitors in the streaming market. Apple Inc. (AAPL): Free Stock Analysis Report Image Source: Zacks Investment Research Netflix’s growth is largely reflected in itsstellar priceperformance over the last decade.
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Apple AAPL, Amazon AMZN, and Disney DIS are all respectable competitors in the streaming market. Apple Inc. (AAPL): Free Stock Analysis Report The potential growth in ad revenue could help NFLX get its mojo back as Wall Street and investors look for the chance to possibly get back in on Netflix stock again.
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Apple AAPL, Amazon AMZN, and Disney DIS are all respectable competitors in the streaming market. Apple Inc. (AAPL): Free Stock Analysis Report Image Source: Zacks Investment Research Netflix’s growth is largely reflected in itsstellar priceperformance over the last decade.
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18915.0
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2022-10-13 00:00:00 UTC
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Microsoft (MSFT) Brings Apple iCloud Integration to Windows
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AAPL
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https://www.nasdaq.com/articles/microsoft-msft-brings-apple-icloud-integration-to-windows
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nan
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nan
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Microsoft MSFT recently announced new Apple AAPL integrations in Windows 11 at its annual Surface event. Through a new integration with Apple's iCloud and the Photos app in Microsoft's Windows 11, iPhone users will soon be able to access photos and videos on their Windows devices.
To enable the integration, Windows 11 users need to install iCloud from the Microsoft Store and sync it with the Photos app. This integration is currently available to Windows Insiders, with availability for all Windows 11 users beginning in November.
Previously, Windows users could download a copy of their iCloud Photos using the iCloud for Windows app. This simulates a library in the file explorer. Integration into the Photos app will provide a much richer experience, closer to the experience that Apple users enjoy with iCloud Photos on the Mac.
Microsoft has also announced Apple Music and Apple TV app availability on Xbox consoles. It is the second Apple streaming service coming to Microsoft Xbox, the first being Apple TV. Both Apple Music and Apple TV apps are also coming to Windows next year.
Microsoft, a Zacks Rank #3 (Hold) company, wrapped up its Surface event 2022 by releasing the new Surface Laptop 5, Surface Pro 9 and Surface Studio 2+. Apart from this, several new accessories and software, which included a Designed app powered by Dall-E2 were also launched. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Microsoft Corporation Price and Consensus
Microsoft Corporation price-consensus-chart | Microsoft Corporation Quote
Expanded Customer Base to Aid Top Line
The adoption of cloud computing has further been accelerated by the pandemic. Cloud-specific spending is expected to increase significantly in the near term. Per a Markets and Markets report, the global cloud computing market is expected to witness a CAGR of 16.3%, reaching $947.3 billion in 2026. These trends bode well for cloud solution providers such as Microsoft.
The company has been focusing on upgrading and innovating its cloud offerings. Microsoft’s Azure continues to draw customers.
Recently, Microsoft partnered with Cisco CSCO through which customers can join Teams meetings from Cisco hardware. Initially, six devices will be certified to work with Teams in the first half of next year, including the Cisco Room Bar (a combined speaker and webcam), the 55-inch and 75-inch versions of the Cisco Board Pro (a freestanding screen designed for video conferencing) and the Cisco Room Kit Pro.
Mercedes-Benz Group MBGAF and Microsoft announced a partnership using Microsoft Cloud for a data platform intended to improve production efficiency at over 30 passenger car plants globally. The aim is to gather data from across the production process, from components to logistics to the assembly line, to create a virtual replica that allows teams to identify potential supply chain bottlenecks more quickly.
In June, Microsoft entered into a multi-year collaboration with The Proctor & Gamble Company (P&G). As part of the deal, Microsoft will co-innovate with P&G to accelerate and expand the latter’s digital manufacturing platform.
Leveraging Microsoft Azure, AI and Internet of Things solutions, P&G will accommodate the volatility in the consumer products industry with scalable, agile and efficient solutions based on market conditions to ensure faster product delivery and customer satisfaction and improve productivity while reducing costs.
These developments are expected to drive the subscriber base, which in turn is anticipated to bolster top-line growth in the near term.
Over the past few years, Microsoft has doubled down on its cloud computing opportunity. The latest slew of partnerships is expected to strengthen its competitive position in the cloud computing market.
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
Cisco Systems, Inc. (CSCO): Free Stock Analysis Report
MercedesBenz Group AG (MBGAF): 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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Microsoft MSFT recently announced new Apple AAPL integrations in Windows 11 at its annual Surface event. Apple Inc. (AAPL): Free Stock Analysis Report The aim is to gather data from across the production process, from components to logistics to the assembly line, to create a virtual replica that allows teams to identify potential supply chain bottlenecks more quickly.
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Microsoft MSFT recently announced new Apple AAPL integrations in Windows 11 at its annual Surface event. Apple Inc. (AAPL): Free Stock Analysis Report Microsoft Corporation Price and Consensus Microsoft Corporation price-consensus-chart | Microsoft Corporation Quote Expanded Customer Base to Aid Top Line The adoption of cloud computing has further been accelerated by the pandemic.
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Microsoft MSFT recently announced new Apple AAPL integrations in Windows 11 at its annual Surface event. Apple Inc. (AAPL): Free Stock Analysis Report Through a new integration with Apple's iCloud and the Photos app in Microsoft's Windows 11, iPhone users will soon be able to access photos and videos on their Windows devices.
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Microsoft MSFT recently announced new Apple AAPL integrations in Windows 11 at its annual Surface event. Apple Inc. (AAPL): Free Stock Analysis Report This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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18916.0
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2022-10-13 00:00:00 UTC
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Microsoft (MSFT) Rolls Out New Surface Products: Key Takeaways
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AAPL
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https://www.nasdaq.com/articles/microsoft-msft-rolls-out-new-surface-products%3A-key-takeaways
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nan
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nan
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Microsoft MSFT recently unveiled a new range of Surface devices, including the new Surface tablet and laptop, along with some other updates to Windows 11, new AI platforms for creativity, and an Audio Dock that doubles as a USB-C hub.
Microsoft introduced two versions of the Surface Pro 9, one with 12th Gen Intel Core processors. The Intel-powered Surface Pro 9 comes with two USB-C ports with support for Thunderbolt 4. The other one, based on Microsoft’s SQ3 processor, has been designed in partnership with Qualcomm QCOM and brings 5G connectivity to the device. The Qualcomm version of the Surface Pro 9 comes with a 512GB SSD, whereas the Wi-Fi version comes with a 1TB SSD.
Microsoft launched the Surface Laptop 5, which provides an all-day battery life, powered by the 12th Gen Intel Core processor series. Available in 13.5 or 15-inch options, the smaller version is available in i5 or i7 variants but the 15-inch version is locked to i7. Both models are available in 8GB, 16GB or 32GB RAM and up to 1TB of storage.
Surface Studio 2+ is an all-in-one PC that can easily handle heavy workloads and is designed for those who need raw processing power and for professional artists. Powered by the 11th Gen Intel Core i7 processor and backed by NVIDIA GeForce RTX 3060 laptop version, the AIO comes with 32GB of RAM and 1TB of storage. The Surface Studio 2+ comes with three USB-C ports with thunderbolt support, two USB-A ports, one 3.5mm audio jack and a gigabit ethernet port.
Apart from the Surface devices, Microsoft introduced adaptive accessories like a customizable mouse, an adaptive hub that either connects wirelessly or via USB-C and a joystick button among many more. Microsoft also announced a new app named Designer. It is a tool for graphic designers powered by AI.
Microsoft Corporation Price and Consensus
Microsoft Corporation price-consensus-chart | Microsoft Corporation Quote
Improved Features in Surface Devices to Boost Competitive Position
Intensifying competition from lower-priced products developed by Samsung, Huawei, Lenovo LNVGY and expensive ones made by Apple AAPL will continue to impact market share, which is a major concern going forward. In the smartphone space, Surface Duo 2 faces tough competition from the likes of Samsung and LG.
Walmart is currently selling a Lenovo convertible laptop for $279 with $260 off the MSRP. The device has a Core i3 processor and 128GB of storage.
Apple is benefiting from the growing demand for the all-new Mac Studio, which is a high-performance desktop system with a reimagined compact design consuming up to 1,000 kilowatt-hours less energy than that of a high-end PC desktop over the course of 12 months. The newly released desktop helps clients render massive 3D environments and playback 18 streams of ProRes video with the M1 Ultra chip. It remains quiet even under the heaviest workloads.
Mac Studio features unified memory of up to 64 GB on M1 Max systems and up to 128 GB on M1 Ultra systems.
The upcoming holiday season as well as the continuation of work-from-home and online-learning trends may benefit Microsoft’s new Surface lineup and boost revenues from the Surface hardware business.
In fourth-quarter fiscal 2022, Surface revenues were up 10% (up 15% at cc) year over year, driven by commercial sales. We also note that Microsoft has lost 32.8% of its share price year to date compared with the Zacks Computer & Technology Sector’s decline of 37.8%.
We expect the rejuvenation of the Surface product line along with an improving Office 365 subscriber base and strong growth prospect for Azure to help this Zacks Rank #3 (Hold) company maintain its upside in the rest of 2022. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
QUALCOMM Incorporated (QCOM): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Lenovo Group Ltd. (LNVGY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Microsoft Corporation Price and Consensus Microsoft Corporation price-consensus-chart | Microsoft Corporation Quote Improved Features in Surface Devices to Boost Competitive Position Intensifying competition from lower-priced products developed by Samsung, Huawei, Lenovo LNVGY and expensive ones made by Apple AAPL will continue to impact market share, which is a major concern going forward. Apple Inc. (AAPL): Free Stock Analysis Report Surface Studio 2+ is an all-in-one PC that can easily handle heavy workloads and is designed for those who need raw processing power and for professional artists.
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Microsoft Corporation Price and Consensus Microsoft Corporation price-consensus-chart | Microsoft Corporation Quote Improved Features in Surface Devices to Boost Competitive Position Intensifying competition from lower-priced products developed by Samsung, Huawei, Lenovo LNVGY and expensive ones made by Apple AAPL will continue to impact market share, which is a major concern going forward. Apple Inc. (AAPL): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report
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Microsoft Corporation Price and Consensus Microsoft Corporation price-consensus-chart | Microsoft Corporation Quote Improved Features in Surface Devices to Boost Competitive Position Intensifying competition from lower-priced products developed by Samsung, Huawei, Lenovo LNVGY and expensive ones made by Apple AAPL will continue to impact market share, which is a major concern going forward. Apple Inc. (AAPL): Free Stock Analysis Report Microsoft MSFT recently unveiled a new range of Surface devices, including the new Surface tablet and laptop, along with some other updates to Windows 11, new AI platforms for creativity, and an Audio Dock that doubles as a USB-C hub.
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Microsoft Corporation Price and Consensus Microsoft Corporation price-consensus-chart | Microsoft Corporation Quote Improved Features in Surface Devices to Boost Competitive Position Intensifying competition from lower-priced products developed by Samsung, Huawei, Lenovo LNVGY and expensive ones made by Apple AAPL will continue to impact market share, which is a major concern going forward. Apple Inc. (AAPL): Free Stock Analysis Report Microsoft introduced two versions of the Surface Pro 9, one with 12th Gen Intel Core processors.
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18917.0
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2022-10-13 00:00:00 UTC
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Brazil court fines Apple, orders to sell iPhone with charger
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AAPL
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https://www.nasdaq.com/articles/brazil-court-fines-apple-orders-to-sell-iphone-with-charger
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nan
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nan
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SAO PAULO, Oct 13 (Reuters) - A Brazilian court on Thursday fined Apple Inc AAPL.O 100 million reais ($19 million) and ruled that battery chargers must come with new iPhones sold in the country.
The Sao Paulo state court ruled against Apple in a lawsuit, filed by the association of borrowers, consumers and taxpayers, that argued that the company commits abusive practices by selling its flagship product without a charger.
Apple said it will appeal the decision.
Previously, the tech firm argued that the practice had the purpose of reducing carbon emissions.
"It is evident that, under the justification of a 'green initiative,' the defendant imposes on the consumer a required purchase of charger adaptors that were previously supplied along with the product," said the court's decision.
($1 = 5.2622 reais)
(Reporting by Beatriz Garcia; Writing by Peter Frontini; Editing by David Gregorio)
((Peter.Siqueira@thomsonreuters.com; +55 11 56447727;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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SAO PAULO, Oct 13 (Reuters) - A Brazilian court on Thursday fined Apple Inc AAPL.O 100 million reais ($19 million) and ruled that battery chargers must come with new iPhones sold in the country. The Sao Paulo state court ruled against Apple in a lawsuit, filed by the association of borrowers, consumers and taxpayers, that argued that the company commits abusive practices by selling its flagship product without a charger. Previously, the tech firm argued that the practice had the purpose of reducing carbon emissions.
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SAO PAULO, Oct 13 (Reuters) - A Brazilian court on Thursday fined Apple Inc AAPL.O 100 million reais ($19 million) and ruled that battery chargers must come with new iPhones sold in the country. The Sao Paulo state court ruled against Apple in a lawsuit, filed by the association of borrowers, consumers and taxpayers, that argued that the company commits abusive practices by selling its flagship product without a charger. "It is evident that, under the justification of a 'green initiative,' the defendant imposes on the consumer a required purchase of charger adaptors that were previously supplied along with the product," said the court's decision.
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SAO PAULO, Oct 13 (Reuters) - A Brazilian court on Thursday fined Apple Inc AAPL.O 100 million reais ($19 million) and ruled that battery chargers must come with new iPhones sold in the country. The Sao Paulo state court ruled against Apple in a lawsuit, filed by the association of borrowers, consumers and taxpayers, that argued that the company commits abusive practices by selling its flagship product without a charger. "It is evident that, under the justification of a 'green initiative,' the defendant imposes on the consumer a required purchase of charger adaptors that were previously supplied along with the product," said the court's decision.
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SAO PAULO, Oct 13 (Reuters) - A Brazilian court on Thursday fined Apple Inc AAPL.O 100 million reais ($19 million) and ruled that battery chargers must come with new iPhones sold in the country. The Sao Paulo state court ruled against Apple in a lawsuit, filed by the association of borrowers, consumers and taxpayers, that argued that the company commits abusive practices by selling its flagship product without a charger. Apple said it will appeal the decision.
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18918.0
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2022-10-13 00:00:00 UTC
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3 Incredibly Cheap Blue Chip Stocks to Buy Right Now
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AAPL
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https://www.nasdaq.com/articles/3-incredibly-cheap-blue-chip-stocks-to-buy-right-now
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nan
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nan
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Bear markets are never fun. Good news often fails to land with investors, blue chip stocks rarely prove to be rock-solid safe havens, and important sources of passive income, such as dividends, can dry up as companies rethink their capital allocation strategies.
History has shown, however, that bear markets are some of the best times to buy equities and hold them for long periods. U.S. stocks, on balance, have rebounded after every single bear market since the infamous stock market crash of 1929.
Image source: Getty Images.
Which equities are top "buy the dip" candidates right now? While there are literally dozens of beaten-down stocks to consider, my view is that bargain hunters shouldn't overcomplicate matters. Instead of trying to swing for the fences on unproven commodities, I think the better option is to play it safe by sticking to blue chip equities that have taken a big hit from this dour market.
Keeping with this theme, I think Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and AstraZeneca (NASDAQ: AZN) are nearly guaranteed to rebound once market conditions improve. Below is a brief overview of why these blue chip stocks ought to quickly rebound once market sentiment changes for the better.
Amazon: An unbeatable ecosystem
E-commerce giant Amazon has lost a staggering 32% of its value this year. Amazon's shares have been under heavy pressure all year long over concerns that higher interest rates will lead to increased expenses and slower U.S. economic growth will curtail spending by consumers. While these macroeconomic concerns are certainly valid, this negative sentiment has arguably gone overboard.
Underscoring this point, Amazon's stock is presently trading at under two times 2023 projected sales. The online retail giant's shares haven't been this cheap since 2016. This rock-bottom valuation isn't the only reason to buy its stock, however.
Thanks to its Prime membership program, Amazon sports one of the most comprehensive custom support programs in the industry. This novel ecosystem ought to allow Amazon to steadily grow key revenue streams like subscription services, and maintain its ginormous competitive moat, for the foreseeable future.
So, once the market stabilizes, Amazon's shares should be among the first to return to form. Over the longer term, Amazon shareholders ought to be in line for market-beating returns as a result of the company's nearly impenetrable competitive position, heavy emphasis on innovation, and ongoing expansion into other high-growth areas such as healthcare.
Apple: Brand cachet galore
Like nearly all premium-laden tech stocks, Apple's shares have taken it on the chin in 2022. At the time of this writing, for instance, the iPhone maker's stock is down by a whopping 22% for the year. Bargain hunters, however, shouldn't hesitate to take advantage of this weakness.
The long and short of it is that Apple's diverse ecosystem of products, such as the iPhone, the Apple Watch, AirPods Pro, and Apple Music, is beloved by its users. As a result, the tech giant should have no trouble posting another year of positive top-line growth in 2023, despite a softer U.S. economic outlook.
What's more, Apple's deep commitment to product innovation should keep it firmly on the top shelf of tech-oriented companies over the next several decades. This double-digit decline in Apple's shares may thus represent a once-in-a-generation type of buying opportunity.
AstraZeneca: Ticking all the boxes
British and Swiss drugmaker AstraZeneca has been firing on all cylinders of late. Thanks in large part to its top-notch cancer franchise, the company substantially raised its 2022 revenue forecast earlier this year, a move that helped its stock gain a healthy 12.7% through the first seven months of the year.
Then the bottom fell out. Investors fled AstraZeneca, along with most other big pharma stocks, during the third quarter of 2022. And as things stand now, AstraZeneca's stock is currently down by a hefty 22.9% from its 52-week high.
Investors bailed on major drug manufacturing stocks like AstraZeneca in Q3 due to the passage of the Inflation Reduction Act. The big deal is that this bill will eventually cut into big pharma's pricing power for expensive branded medications. That said, Wall Street analysts think this bill will only generate a modest 3% decline in revenue for the industry's biggest names. In other words, investors probably overreacted to this news.
Why is AstraZeneca stock a table-pounding buy right now? The company has built elite franchises in both cancer care and rare diseases. What's important to understand is that these two areas are relatively immune to the drug pricing controversy in the United States. What's more, cancer and rare diseases are two of the fastest-growing therapeutic areas across the whole of healthcare. AstraZeneca is thus well positioned for growth for a long time to come.
And AstraZeneca is definitely a compelling bargain right now. Wall Street's consensus fair value estimate implies that this blue chip drug stock is currently undervalued by nearly 20%. That's unusually high upside potential for a major drug manufacturer, especially one that comes with a reliable dividend program. So if you're on the hunt for a mix of value and passive income, AstraZeneca should definitely be on your radar right now.
10 stocks we like better than Amazon
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. George Budwell has positions in AstraZeneca PLC. The Motley Fool has positions in and recommends Amazon and Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Keeping with this theme, I think Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and AstraZeneca (NASDAQ: AZN) are nearly guaranteed to rebound once market conditions improve. Good news often fails to land with investors, blue chip stocks rarely prove to be rock-solid safe havens, and important sources of passive income, such as dividends, can dry up as companies rethink their capital allocation strategies. Amazon's shares have been under heavy pressure all year long over concerns that higher interest rates will lead to increased expenses and slower U.S. economic growth will curtail spending by consumers.
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Keeping with this theme, I think Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and AstraZeneca (NASDAQ: AZN) are nearly guaranteed to rebound once market conditions improve. Good news often fails to land with investors, blue chip stocks rarely prove to be rock-solid safe havens, and important sources of passive income, such as dividends, can dry up as companies rethink their capital allocation strategies. 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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Keeping with this theme, I think Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and AstraZeneca (NASDAQ: AZN) are nearly guaranteed to rebound once market conditions improve. U.S. stocks, on balance, have rebounded after every single bear market since the infamous stock market crash of 1929. 10 stocks we like better than Amazon When our award-winning analyst team has a stock tip, it can pay to listen.
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Keeping with this theme, I think Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and AstraZeneca (NASDAQ: AZN) are nearly guaranteed to rebound once market conditions improve. U.S. stocks, on balance, have rebounded after every single bear market since the infamous stock market crash of 1929. Why is AstraZeneca stock a table-pounding buy right now?
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18919.0
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2022-10-13 00:00:00 UTC
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Why Apple Stock Is Down 23% This Year
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AAPL
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https://www.nasdaq.com/articles/why-apple-stock-is-down-23-this-year
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nan
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nan
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Investors have turned their backs on tech stocks in 2022 as increasing inflation has led to a decline in consumer spending. This has planted doubt for the financial futures of some of the world's most valuable companies.
Apple's (NASDAQ: AAPL) share price has fallen almost 23% since January, but many others have tumbled far more. For instance, PC-component leaders AMD and Nvidia have seen their stocks sink about 60% in the same period.
With steep declines in the market, tech companies faced intense scrutiny over the year. Apple is among those affected, as investors have taken out their uncertainty on the company's stock.
Declines in tech
Many tech companies suffered the misfortune of having their 2022 financials compared to those of last year, when demand in the industry hit an all-time high for multiple businesses. The COVID-19 lockdowns in 2020 and 2021 drove up sales for a variety of tech industries as consumers invested in home offices and entertainment devices by purchasing PCs, game consoles, TVs, and more. As a result, Apple's stock price reached a historic high in December 2021.
However, reopenings in 2022 have been met with increases in cost of living and interest rates, culminating in a perfect storm for the tech industry and severely reducing consumer demand. Moreover, comparisons with the overwhelming highs of the previous year have only exacerbated the declines.
Apple has fared better than most companies in 2022, but its share price still fell 14% between Sept. 12 and Oct. 11 amid concern that sales for its newest line of iPhones decreased from previous years. On Sept. 7, Apple unveiled its iPhone 14 lineup, which saw the MacBook manufacturer make a change to its smartphone strategy. The company widened the gap between its base and Pro models by adding several new features to the more costly iPhone 14s but keeping the lower-tier models largely the same as the previous year's.
The result has been record sales figures for the iPhone 14 Pro models but dismal demand for the base versions. The cost-effective models were the biggest-selling part of the iPhone lineup in previous years, leading analysts to wonder whether the Pro models can sell enough to make up for Apple selling fewer units overall. For instance, on Sept. 29, Bank of America's Wamsi Mohan downgraded his recommendation for Apple's stock from buy to neutral over weakening demand for the company's smartphones. The revision led Apple's share price to fall 5.1%.
A safe haven
Apple has been seen as a safe haven for tech investors in 2022 because of its ability to retain more of its market value than most other tech companies. September marginally spooked investors concerned that slowing consumer demand might finally be coming after the iPhone company. However, the company still makes up 41% of Warren Buffett–run holding company Berkshire Hathaway's (NYSE: BRK.A) portfolio. The prominent investor's confidence suggests Apple won't be down forever.
Moreover, although Mohan downgraded his Apple recommendation, he said on Oct. 10 that "long-term prospects remain favorable, we see incremental risk to earnings and valuation over the short term given a backdrop of declining consumer demand." Mohan confirmed his long-term confidence in Apple even while discussing slowing demand for iPads after seeing a significant boost throughout the pandemic.
Additionally, it's not all bad news for Apple. On Sept. 1, the company overtook Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Android as theiPhone operating system accounted for more than 50% of U.S. smartphones. As Counterpoint's Jeff Fieldhack points out, "Operating systems are like religions." Once users become accustomed to one, they're unlikely to switch.
The majority market share for Apple is positive, as its walled garden of products is particularly likely to bring people further into its ecosystem after they use just one device. Consequently, the more iPhones out in the wild, the more consumers will likely purchase Apple products down the road.
Apple's stock will likely sink if consumer demand has truly slowed and fears of a recession rise. However, the company continues to be an excellent long-term buy. Apple's products are some of the most popular in their respective markets and will help the company bounce back. The only question is when.
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
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. 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, Berkshire Hathaway (B shares), and Nvidia. 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's (NASDAQ: AAPL) share price has fallen almost 23% since January, but many others have tumbled far more. The COVID-19 lockdowns in 2020 and 2021 drove up sales for a variety of tech industries as consumers invested in home offices and entertainment devices by purchasing PCs, game consoles, TVs, and more. However, reopenings in 2022 have been met with increases in cost of living and interest rates, culminating in a perfect storm for the tech industry and severely reducing consumer demand.
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Apple's (NASDAQ: AAPL) share price has fallen almost 23% since January, but many others have tumbled far more. For instance, on Sept. 29, Bank of America's Wamsi Mohan downgraded his recommendation for Apple's stock from buy to neutral over weakening demand for the company's smartphones. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet (A shares), Alphabet (C shares), Apple, Berkshire Hathaway (B shares), and Nvidia.
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Apple's (NASDAQ: AAPL) share price has fallen almost 23% since January, but many others have tumbled far more. For instance, on Sept. 29, Bank of America's Wamsi Mohan downgraded his recommendation for Apple's stock from buy to neutral over weakening demand for the company's smartphones. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet (A shares), Alphabet (C shares), Apple, Berkshire Hathaway (B shares), and Nvidia.
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Apple's (NASDAQ: AAPL) share price has fallen almost 23% since January, but many others have tumbled far more. Declines in tech Many tech companies suffered the misfortune of having their 2022 financials compared to those of last year, when demand in the industry hit an all-time high for multiple businesses. That's right -- they think these 10 stocks are even better buys.
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18920.0
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2022-10-13 00:00:00 UTC
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Big Tech's hiring freeze unlocks rich talent pool for U.S. startups
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AAPL
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https://www.nasdaq.com/articles/big-techs-hiring-freeze-unlocks-rich-talent-pool-for-u.s.-startups
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nan
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nan
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By Eva Mathews and Tiyashi Datta
Oct 13 (Reuters) - Late-stage U.S. startups are scooping up talent unlocked by layoffs and hiring freezes at Big Tech, adding experienced engineers and project managers to their roster despite signs of an economic slowdown.
Companies, with steady cash flow from viable products in the market, are offering rich pay checks to lure talent that would have otherwise preferred working at big technology firms including Microsoft Corp MSFT.O and Facebook-parent Meta Platforms Inc META.O.
Stack Overflow Chief Executive Prashanth Chandrasekar said the coding platform's headcount had more than doubled this year to 540, with some of the new hires being tapped from firms such as Alphabet Inc-owned GOOGL.O Google and Apple Inc AAPL.O.
"When competitors downsize, other talented people who are employed there may consider looking elsewhere, as they may not see their company as being stable," Chandrasekar said.
Deepak Rao, CEO of X1 Card, said the credit-card startup's headcount had more than doubled to 35 in a year and more employees from larger companies would join it in the coming months.
Google, Apple, Microsoft and Meta and did not immediately respond to requests for comment.
The hiring spree comes even as startup funding is drying up in the face of decades-high inflation, a stronger dollar and massive rate hikes, which have pushed Big Tech to pull back on their spending spree.
According to GlobalData, venture capital funding raised by U.S. startups fell by nearly a third to $146.3 billion in the first eight months of 2022.
"Tech startups reliant on ongoing VC funding have cut back on hiring, but companies in the later funding stages with viable products in the market are faring much better," said Patrick McAdams, CEO of recruiting firm Andiamo.
"These companies have continued to hire strategically and are now able to take advantage of a softening tech hiring market to make key hires that were nearly impossible this time last year (when the pandemic drove up demand for tech workers)."
A survey of 581 executives, almost entirely from U.S. tech startups, showed that more than 40% of them boosted their hiring plans in the first half of 2022, according to hiring firm A.Team and startup consultant MassChallenge.
Companies are also shortening hiring times and offering higher pay packages to lock in candidates as they compete for talent in a tight labor market, recruiters said.
A greater say in decision making provided by startups has also appealed to executives such as Mansoor Basha, who joined Stagwell STGW.O, a $2.2 billion marketing firm, as technology chief in September from Accenture ACN.N.
"An opportunity to make key decisions internally was important for me," he said.
Still, some analysts warn there is only so long until startups can continue the hiring pace amid a weak economic backdrop.
"If the economy does indeed go into recession, it will only add to the pressure faced by tech firms as demand dries up," says Dante DeAntonio, director of economics research at Moody's Analytics.
Layoffs in U.S. tech sector since 2021 https://tmsnrt.rs/3dR2ZLg
Layoffs in U.S. tech sector since 2021 https://tmsnrt.rs/3dS8vgC
FACTBOX-Companies cut jobs, freeze hiring to prepare for economic slowdown
(Reporting by Eva Mathews and Tiyashi Datta in Bengaluru; Editing by Aditya Soni and Anil D'Silva)
((eva.mathews@thomsonreuters.com; tiyashi.datta@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stack Overflow Chief Executive Prashanth Chandrasekar said the coding platform's headcount had more than doubled this year to 540, with some of the new hires being tapped from firms such as Alphabet Inc-owned GOOGL.O Google and Apple Inc AAPL.O. By Eva Mathews and Tiyashi Datta Oct 13 (Reuters) - Late-stage U.S. startups are scooping up talent unlocked by layoffs and hiring freezes at Big Tech, adding experienced engineers and project managers to their roster despite signs of an economic slowdown. Companies, with steady cash flow from viable products in the market, are offering rich pay checks to lure talent that would have otherwise preferred working at big technology firms including Microsoft Corp MSFT.O and Facebook-parent Meta Platforms Inc META.O.
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Stack Overflow Chief Executive Prashanth Chandrasekar said the coding platform's headcount had more than doubled this year to 540, with some of the new hires being tapped from firms such as Alphabet Inc-owned GOOGL.O Google and Apple Inc AAPL.O. By Eva Mathews and Tiyashi Datta Oct 13 (Reuters) - Late-stage U.S. startups are scooping up talent unlocked by layoffs and hiring freezes at Big Tech, adding experienced engineers and project managers to their roster despite signs of an economic slowdown. "These companies have continued to hire strategically and are now able to take advantage of a softening tech hiring market to make key hires that were nearly impossible this time last year (when the pandemic drove up demand for tech workers)."
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Stack Overflow Chief Executive Prashanth Chandrasekar said the coding platform's headcount had more than doubled this year to 540, with some of the new hires being tapped from firms such as Alphabet Inc-owned GOOGL.O Google and Apple Inc AAPL.O. "Tech startups reliant on ongoing VC funding have cut back on hiring, but companies in the later funding stages with viable products in the market are faring much better," said Patrick McAdams, CEO of recruiting firm Andiamo. "These companies have continued to hire strategically and are now able to take advantage of a softening tech hiring market to make key hires that were nearly impossible this time last year (when the pandemic drove up demand for tech workers)."
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Stack Overflow Chief Executive Prashanth Chandrasekar said the coding platform's headcount had more than doubled this year to 540, with some of the new hires being tapped from firms such as Alphabet Inc-owned GOOGL.O Google and Apple Inc AAPL.O. Companies, with steady cash flow from viable products in the market, are offering rich pay checks to lure talent that would have otherwise preferred working at big technology firms including Microsoft Corp MSFT.O and Facebook-parent Meta Platforms Inc META.O. "Tech startups reliant on ongoing VC funding have cut back on hiring, but companies in the later funding stages with viable products in the market are faring much better," said Patrick McAdams, CEO of recruiting firm Andiamo.
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18921.0
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2022-10-13 00:00:00 UTC
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TSMC Q3 profit jumps 80%, beats market expectations
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AAPL
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https://www.nasdaq.com/articles/tsmc-q3-profit-jumps-80-beats-market-expectations
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nan
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nan
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TAIPEI, Oct 13 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted an 80% surge in third-quarter net profit on Thursday, Reuters calculations showed, buoyed by strong sales of its advanced chips despite a slowdown in the global chip industry because of economic headwinds.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw net profit for the July-September period rise to T$280.9 billion ($8.81 billion) from T$156.3 billion a year earlier.
That compared with the T$265.64 billion average of 21 analyst estimates compiled by Refinitiv.
($1 = 31.8870 Taiwan dollars)
(Reporting by Ben Blanchard and Sarah Wu; Editing by Christian Schmollinger)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw net profit for the July-September period rise to T$280.9 billion ($8.81 billion) from T$156.3 billion a year earlier. TAIPEI, Oct 13 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted an 80% surge in third-quarter net profit on Thursday, Reuters calculations showed, buoyed by strong sales of its advanced chips despite a slowdown in the global chip industry because of economic headwinds. That compared with the T$265.64 billion average of 21 analyst estimates compiled by Refinitiv.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw net profit for the July-September period rise to T$280.9 billion ($8.81 billion) from T$156.3 billion a year earlier. TAIPEI, Oct 13 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted an 80% surge in third-quarter net profit on Thursday, Reuters calculations showed, buoyed by strong sales of its advanced chips despite a slowdown in the global chip industry because of economic headwinds. ($1 = 31.8870 Taiwan dollars) (Reporting by Ben Blanchard and Sarah Wu; Editing by Christian Schmollinger) ((ben.blanchard@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw net profit for the July-September period rise to T$280.9 billion ($8.81 billion) from T$156.3 billion a year earlier. TAIPEI, Oct 13 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted an 80% surge in third-quarter net profit on Thursday, Reuters calculations showed, buoyed by strong sales of its advanced chips despite a slowdown in the global chip industry because of economic headwinds. ($1 = 31.8870 Taiwan dollars) (Reporting by Ben Blanchard and Sarah Wu; Editing by Christian Schmollinger) ((ben.blanchard@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw net profit for the July-September period rise to T$280.9 billion ($8.81 billion) from T$156.3 billion a year earlier. TAIPEI, Oct 13 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted an 80% surge in third-quarter net profit on Thursday, Reuters calculations showed, buoyed by strong sales of its advanced chips despite a slowdown in the global chip industry because of economic headwinds. That compared with the T$265.64 billion average of 21 analyst estimates compiled by Refinitiv.
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18922.0
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2022-10-13 00:00:00 UTC
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TSMC Q3 profit jumps 80%, beats market expectations
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AAPL
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https://www.nasdaq.com/articles/tsmc-q3-profit-jumps-80-beats-market-expectations-0
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nan
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nan
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Adds details from statement
TAIPEI, Oct 13 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted an 80% surge in third-quarter net profit on Thursday, boosted by strong sales of its advanced chips used in data centres and electric cars, despite a slowdown in the global chip industry due to economic headwinds.
This is the company's strongest quarterly net profit growth in two years.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, said net profit for the July-September period rose to T$280.9 billion ($8.81 billion) from T$156.3 billion a year earlier.
That compared with the T$265.64 billion average of 21 analyst estimates compiled by Refinitiv.
TSMC's business has been boosted by a global chip shortage that was sparked by pandemic-fuelled sales of smartphones and laptops. While the shortage has eased, analysts say the company's dominance in making some of the world's most advanced chips has kept its order book full.
Revenue for the quarter climbed 36% to $20.23 billion, versus TSMC's prior estimated range of $19.8 billion to $20.6 billion.
Shares in TSMC have fallen almost 36% so far this year, giving it a market value of $323.7 billion. The stock fell 0.6% on Thursday, compared with a 2.1% fall for the benchmark index .TWII.
($1 = 31.8870 Taiwan dollars)
(Reporting by Ben Blanchard and Sarah Wu; Editing by Christian Schmollinger and Edmund Klamann)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, said net profit for the July-September period rose to T$280.9 billion ($8.81 billion) from T$156.3 billion a year earlier. Adds details from statement TAIPEI, Oct 13 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted an 80% surge in third-quarter net profit on Thursday, boosted by strong sales of its advanced chips used in data centres and electric cars, despite a slowdown in the global chip industry due to economic headwinds. TSMC's business has been boosted by a global chip shortage that was sparked by pandemic-fuelled sales of smartphones and laptops.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, said net profit for the July-September period rose to T$280.9 billion ($8.81 billion) from T$156.3 billion a year earlier. Adds details from statement TAIPEI, Oct 13 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted an 80% surge in third-quarter net profit on Thursday, boosted by strong sales of its advanced chips used in data centres and electric cars, despite a slowdown in the global chip industry due to economic headwinds. This is the company's strongest quarterly net profit growth in two years.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, said net profit for the July-September period rose to T$280.9 billion ($8.81 billion) from T$156.3 billion a year earlier. Adds details from statement TAIPEI, Oct 13 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted an 80% surge in third-quarter net profit on Thursday, boosted by strong sales of its advanced chips used in data centres and electric cars, despite a slowdown in the global chip industry due to economic headwinds. Revenue for the quarter climbed 36% to $20.23 billion, versus TSMC's prior estimated range of $19.8 billion to $20.6 billion.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, said net profit for the July-September period rose to T$280.9 billion ($8.81 billion) from T$156.3 billion a year earlier. TSMC's business has been boosted by a global chip shortage that was sparked by pandemic-fuelled sales of smartphones and laptops. Revenue for the quarter climbed 36% to $20.23 billion, versus TSMC's prior estimated range of $19.8 billion to $20.6 billion.
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18923.0
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2022-10-13 00:00:00 UTC
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US STOCKS-Wall St falls as hot inflation data drives fears of big rate hike
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-falls-as-hot-inflation-data-drives-fears-of-big-rate-hike
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nan
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By Shreyashi Sanyal and Ankika Biswas
Oct 13 (Reuters) - U.S. stock indexes fell on Thursday, with the Dow and the S&P 500 near two-year lows, after a bigger-than-expected rise in consumer prices last month sparked fears of another big rate hike from the Federal Reserve when it meets in November.
The headline consumer price index gained at an annual pace of 8.2% in September, compared with an estimated 8.1% rise. The reading was lower than an 8.3% increase in August.
Core CPI, which eliminates volatile food and fuel prices, gained 6.6% last month, compared with the estimates of a 6.5% increase. The reading was much higher than a 6.3% rise in August.
"Both the headline and core CPI came in much higher than expectations, and that's disappointing," said Mace M. McCain, chief investment officer at Frost Investment Advisors.
"We would have hoped to see some moderation in inflation and we're not seeing that at this point. There's just nothing to dissuade the Fed from their path."
The inflation report follows data on Wednesday that showed U.S. producer prices increased more than expected in September, prompting Traders of U.S. interest-rate futures to price in a near 91% odds of a fourth straight 75-basis-point (bps) hike by the Fed at its meeting next month, with some also pricing in a 9% chance of a 100 bps rise. FEDWATCH
Minutes from last month's central bank meeting showed policymakers agreed they needed to maintain a more restrictive policy stance, and Fed Chair Jerome Powell vowed that they would "keep at it until we're confident the job is done."
The Fed is showing no signs of a let up in its fight against inflation, leading to immense market volatility in recent months and triggering a selloff in rate-sensitive technology shares.
Megacap growth stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O, Meta Platforms Inc META.O, Alphabet Inc GOOGL.O, Nvidia Corp NVDA.O, Tesla Inc TSLA.O, and Amazon.com AMZN.O slipped between 1.7% and 4.7% as the 10-year benchmark Treasury yield US10YT=RR touched fresh 2008 highs at 4%. US/
At 10:07 a.m. ET, the Dow Jones Industrial Average .DJI was down 183.99 points, or 0.63%, at 29,026.86, the S&P 500 .SPX was down 38.67 points, or 1.08%, at 3,538.36, and the Nasdaq Composite .IXIC was down 186.08 points, or 1.79%, at 10,231.02.
Markets briefly rose earlier in the day after a report that the British government was discussing making changes to its fiscal plan that had spooked global financial markets when it was announced last month.
Third-quarter earnings reports will also help determine the impact of higher prices on company results, with analysts now expecting profit for S&P 500 companies to have risen just 4.1% from a year ago, much lower than an 11.1% increase expected at the start of July, according to Refinitiv IBES data.
Walgreens Boots Alliance Inc WBA.O rose 3.24% following better-than-estimated fourth-quarter results.
Delta Air Lines Inc DAL.N gained 1.92% after the carrier forecast a 9% rise in fourth-quarter from the same period in 2019, helped by robust domestic and international demand.
Declining issues outnumbered advancers for a 4.89-to-1 ratio on the NYSE and for a 3.39-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week high and 170 new lows, while the Nasdaq recorded 10 new highs and 514 new lows.
(Reporting by Bansari Mayur Kamdar, Ankika Biswas and Shreyashi Sanyal in Bengaluru; Editing by Saumyadeb Chakrabarty and Anil D'Silva)
((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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Megacap growth stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O, Meta Platforms Inc META.O, Alphabet Inc GOOGL.O, Nvidia Corp NVDA.O, Tesla Inc TSLA.O, and Amazon.com AMZN.O slipped between 1.7% and 4.7% as the 10-year benchmark Treasury yield US10YT=RR touched fresh 2008 highs at 4%. By Shreyashi Sanyal and Ankika Biswas Oct 13 (Reuters) - U.S. stock indexes fell on Thursday, with the Dow and the S&P 500 near two-year lows, after a bigger-than-expected rise in consumer prices last month sparked fears of another big rate hike from the Federal Reserve when it meets in November. FEDWATCH Minutes from last month's central bank meeting showed policymakers agreed they needed to maintain a more restrictive policy stance, and Fed Chair Jerome Powell vowed that they would "keep at it until we're confident the job is done."
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Megacap growth stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O, Meta Platforms Inc META.O, Alphabet Inc GOOGL.O, Nvidia Corp NVDA.O, Tesla Inc TSLA.O, and Amazon.com AMZN.O slipped between 1.7% and 4.7% as the 10-year benchmark Treasury yield US10YT=RR touched fresh 2008 highs at 4%. By Shreyashi Sanyal and Ankika Biswas Oct 13 (Reuters) - U.S. stock indexes fell on Thursday, with the Dow and the S&P 500 near two-year lows, after a bigger-than-expected rise in consumer prices last month sparked fears of another big rate hike from the Federal Reserve when it meets in November. The headline consumer price index gained at an annual pace of 8.2% in September, compared with an estimated 8.1% rise.
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Megacap growth stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O, Meta Platforms Inc META.O, Alphabet Inc GOOGL.O, Nvidia Corp NVDA.O, Tesla Inc TSLA.O, and Amazon.com AMZN.O slipped between 1.7% and 4.7% as the 10-year benchmark Treasury yield US10YT=RR touched fresh 2008 highs at 4%. By Shreyashi Sanyal and Ankika Biswas Oct 13 (Reuters) - U.S. stock indexes fell on Thursday, with the Dow and the S&P 500 near two-year lows, after a bigger-than-expected rise in consumer prices last month sparked fears of another big rate hike from the Federal Reserve when it meets in November. The inflation report follows data on Wednesday that showed U.S. producer prices increased more than expected in September, prompting Traders of U.S. interest-rate futures to price in a near 91% odds of a fourth straight 75-basis-point (bps) hike by the Fed at its meeting next month, with some also pricing in a 9% chance of a 100 bps rise.
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Megacap growth stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O, Meta Platforms Inc META.O, Alphabet Inc GOOGL.O, Nvidia Corp NVDA.O, Tesla Inc TSLA.O, and Amazon.com AMZN.O slipped between 1.7% and 4.7% as the 10-year benchmark Treasury yield US10YT=RR touched fresh 2008 highs at 4%. By Shreyashi Sanyal and Ankika Biswas Oct 13 (Reuters) - U.S. stock indexes fell on Thursday, with the Dow and the S&P 500 near two-year lows, after a bigger-than-expected rise in consumer prices last month sparked fears of another big rate hike from the Federal Reserve when it meets in November. Core CPI, which eliminates volatile food and fuel prices, gained 6.6% last month, compared with the estimates of a 6.5% increase.
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18924.0
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2022-10-13 00:00:00 UTC
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1 Reason You Don't Want to Own PC Makers Like HP and Dell Right Now
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AAPL
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https://www.nasdaq.com/articles/1-reason-you-dont-want-to-own-pc-makers-like-hp-and-dell-right-now
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None of the major computer companies have released last quarter's earnings results yet. But they're likely to be disappointing.
That's the bigger takeaway from International Data Corp.'s most recent look at quarterly PC sales, anyway. Already slowing down from the pandemic-driven buying boom, demand for personal computers plummeted in the third quarter, boding poorly for most of the industry's upcoming earnings reports. It's the last thing the already struggling technology sector needs right now.
PC shipments are down ... again
All told, computer shipments fell 15% year over year to 74.3 million last quarter, rising just slightly from the second quarter's suppressed figure. That's not a huge mathematical stumble, but it is significant by the slow-moving PC market's standards. It's also the second consecutive quarter the industry has suffered such a slowdown.
HP (NYSE: HPQ) led the way lower, with its PC shipments down nearly 28% compared to Q3 2021's tally, although Dell Technologies (NYSE: DELL) wasn't far behind with a year-over-year decline of more than 20%. Lenovo's deliveries slipped a tad over 16%.
Data source: International Data Corporation. Chart by author.
Apple (NASDAQ: AAPL) is the one bright spot, with unit sales surging over 40% versus the third quarter of last year. IDC, however, also points out Apple's promotional efforts during Q3 may have played a key role in the company's ability to buck the bigger trend. And even so, it wasn't enough to offset the business's broad slowdown.
IDC also notes that after several quarterly increases linked to COVID-19, the average selling price for a new PC has now fallen for two quarters in a row, underscoring the fresh headwind.
Too much full-year confidence?
For better or worse, this headwind may already be factored into the upcoming quarterly earnings reports for most of these names.
Take Dell for instance. Analysts are collectively calling for more than a 13% year-over-year revenue dip for the three-month stretch ending this month, driving per-share profits down from $2.37 a year ago to $1.61 per share. HP's earnings are expected to slide from $0.94 for the comparable quarter of last year to only $0.85 per share this time around, thanks to an 11% year-over-year sales slump. That's better than Dell's by virtue of being less bad. Just bear in mind HP also operates a printing business that's considerably more consistent than its PC venture. Apple's revenue is even more diversified, with the bulk of it still consisting of sales of its popular iPhone.
Still, seeing their worst fears confirmed in writing has the potential to rattle investors, who may already be uneasy about the overall condition of the market.
Perhaps the greater concern here, however, should be the trend IDC is pointing out that isn't yet reflected in these companies' earnings outlooks. While the quarters ending this month are expected to be poor ones, that same doubt doesn't apply to the whole year.
HP's fiscal 2023 (ending in October of next year) top line is projected to be lower by only a little over 4%, and matched by a comparable contraction in earnings. Following several quarters' worth of significant sales slowdown and two consecutive quarters of lower selling prices, though, it's not inconceivable that the coming year's expectations are set to be dialed back.
Ditto for Dell. The analyst community is calling for flat sales for the fiscal year ending in January, yet is still modeling a per-share profit improvement from $6.22 last year to $6.78 this time around. A weaker-than-expected quarter -- and weaker-than-expected PC market -- could force analysts as well as investors to reel in their expectations. That, too, could prompt investors to rethink their positions in the stock.
Not even the venerable Apple is necessarily immune to the industry's struggles. While it's still predominantly an iPhone company, the personal computer market's weakness may reflect consumers' growing worries about the current condition of the economy.
Better out than in
Only time will tell just how much of a toll the fading PC market is taking on computer makers' bottom lines. But, not much more time is needed. HP will report its fiscal fourth-quarter numbers sometime in late November, while Dell will post its Q3 numbers around that same time. Apple's fourth-quarter numbers are coming near the end of this month.
Given what is known about waning PC demand from IDC's data, this is a case where it makes more sense to be out of these stocks and on the sidelines, waiting for a clear reason to get back in.
10 stocks we like better than HP
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 HP 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, Dell Technologies Inc., and HP. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) is the one bright spot, with unit sales surging over 40% versus the third quarter of last year. Already slowing down from the pandemic-driven buying boom, demand for personal computers plummeted in the third quarter, boding poorly for most of the industry's upcoming earnings reports. Analysts are collectively calling for more than a 13% year-over-year revenue dip for the three-month stretch ending this month, driving per-share profits down from $2.37 a year ago to $1.61 per share.
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Apple (NASDAQ: AAPL) is the one bright spot, with unit sales surging over 40% versus the third quarter of last year. HP (NYSE: HPQ) led the way lower, with its PC shipments down nearly 28% compared to Q3 2021's tally, although Dell Technologies (NYSE: DELL) wasn't far behind with a year-over-year decline of more than 20%. Following several quarters' worth of significant sales slowdown and two consecutive quarters of lower selling prices, though, it's not inconceivable that the coming year's expectations are set to be dialed back.
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Apple (NASDAQ: AAPL) is the one bright spot, with unit sales surging over 40% versus the third quarter of last year. PC shipments are down ... again All told, computer shipments fell 15% year over year to 74.3 million last quarter, rising just slightly from the second quarter's suppressed figure. HP (NYSE: HPQ) led the way lower, with its PC shipments down nearly 28% compared to Q3 2021's tally, although Dell Technologies (NYSE: DELL) wasn't far behind with a year-over-year decline of more than 20%.
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Apple (NASDAQ: AAPL) is the one bright spot, with unit sales surging over 40% versus the third quarter of last year. HP's earnings are expected to slide from $0.94 for the comparable quarter of last year to only $0.85 per share this time around, thanks to an 11% year-over-year sales slump. While the quarters ending this month are expected to be poor ones, that same doubt doesn't apply to the whole year.
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18925.0
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2022-10-13 00:00:00 UTC
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5 Stocks That Turned a $5,000 Investment Into $1 Million
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AAPL
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https://www.nasdaq.com/articles/5-stocks-that-turned-a-%245000-investment-into-%241-million
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Obviously, if there were a reliable formula to determine which companies would deliver 100x, 200x, or even 1,000x returns over the next few decades, we'd all be rich. Unfortunately, there's no factor, or combination of factors, that guarantees that level of performance.
However, one of the best things to do is to study some of the stocks that have already done it, and there are more than you might think. In this article, we'll take a look at five interesting examples of stocks that turned early $5,000 investments into millions of dollars, and what investors can learn from them.
5 Millionaire-maker stocks
I won't keep you in suspense. Here are five stocks that would have taken a $5,000 investment in their early days as public companies and turned it into seven-figure wealth (or more) in the years since.
COMPANY (SYMBOL)
IPO
TOTAL RETURN SINCE IPO
VALUE OF $5,000 INVESTED
NVR (NYSE: NVR)
1993
40,950%
$2.05 million
Amazon (NASDAQ: AMZN)
1997
113,900%
$5.70 million
Apple (NASDAQ: AAPL)
1980
138,600%
$6.94 million
Microsoft (NASDAQ: MSFT)
1986
367,900%
$18.4 million
Berkshire Hathaway (NYSE: BRK.A)
1964*
3,220,000%
$161.0 million
Data source: yCharts, Berkshire Hathaway shareholder letters. Berkshire has been a public company since the 1800s, but 1964 was the year Warren Buffett took over.
3 Valuable lessons to learn
As mentioned, there's no magic formula to find the next millionaire-maker stocks. But there are some extremely valuable lessons you can learn from these success stories that can put you in a position to find companies that are more likely than others to do it.
Volatility and missteps are OK
Just because a stock is volatile now doesn't mean that it doesn't have massive long-term potential. None of the stocks on the list had a straight path to strong returns. Even Berkshire has fallen by 50% or more from its previous highs a few times. Amazon once fell by 95% from its peak after the dot-com bubble burst. Even if you bought at the worst possible point before that crash (the top of the bubble), you'd be sitting on roughly a 20-bagger today.
Some of the most innovative stocks in the market have fallen by 70%, 80%, or even 90% from their peaks in 2022. But that doesn't mean they can't be long-term winners.
Leadership is a major X-factor
It's tough to overstate the value of good management. All of these businesses were led by passionate and engaged founders, and continue to be led by their longtime proteges, with the exception of Berkshire (which was technically founded in the 1800s). While most mega-cap companies are not founder led, it is definitely correlated with success when it comes to innovation and disruption, according to several studies.
Apple and Microsoft were founded and built by some of the most innovative minds in their respective industries in Steve Jobs and Bill Gates. NVR's founder pioneered an asset-light approach to homebuilding and did a great job of using this ultra-profitable business model to grow and return capital to investors. The point? Great management can make the difference between a promising idea and a life-changing investment.
Identify a competitive advantage
Finally, all of these businesses had identifiable competitive advantages during their most exciting periods of growth, and still do today. For example, Microsoft's innovative software products created a major network effect in its earlier days. Apple's ecosystem of products gives it tremendous pricing power. NVR's asset-light homebuilding model frees up more capital to reinvest in the business and also makes it easier to get through tough times. And Berkshire's willingness to invest in non-controlling stakes in businesses (its closely watched stock portfolio) gives it an advantage over other conglomerates.
Focus on finding great businesses
As a long-term investor, your goal isn't to gamble on the "next big thing." Instead, you should aim to invest in businesses that have excellent leadership, competitive advantages, and large market opportunities, and hold them for as long as management continues to execute.
10 stocks we like better than NVR
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 NVR 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. Matthew Frankel, CFP® has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), Microsoft, and NVR. 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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1993 40,950% $2.05 million Amazon (NASDAQ: AMZN) 1997 113,900% $5.70 million Apple (NASDAQ: AAPL) 1980 138,600% $6.94 million Microsoft (NASDAQ: MSFT) 1986 367,900% $18.4 million Berkshire Hathaway (NYSE: BRK.A) 1964* 3,220,000% $161.0 million Data source: yCharts, Berkshire Hathaway shareholder letters. Apple and Microsoft were founded and built by some of the most innovative minds in their respective industries in Steve Jobs and Bill Gates. NVR's founder pioneered an asset-light approach to homebuilding and did a great job of using this ultra-profitable business model to grow and return capital to investors.
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1993 40,950% $2.05 million Amazon (NASDAQ: AMZN) 1997 113,900% $5.70 million Apple (NASDAQ: AAPL) 1980 138,600% $6.94 million Microsoft (NASDAQ: MSFT) 1986 367,900% $18.4 million Berkshire Hathaway (NYSE: BRK.A) 1964* 3,220,000% $161.0 million Data source: yCharts, Berkshire Hathaway shareholder letters. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), Microsoft, and NVR. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple.
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1993 40,950% $2.05 million Amazon (NASDAQ: AMZN) 1997 113,900% $5.70 million Apple (NASDAQ: AAPL) 1980 138,600% $6.94 million Microsoft (NASDAQ: MSFT) 1986 367,900% $18.4 million Berkshire Hathaway (NYSE: BRK.A) 1964* 3,220,000% $161.0 million Data source: yCharts, Berkshire Hathaway shareholder letters. 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. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple.
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1993 40,950% $2.05 million Amazon (NASDAQ: AMZN) 1997 113,900% $5.70 million Apple (NASDAQ: AAPL) 1980 138,600% $6.94 million Microsoft (NASDAQ: MSFT) 1986 367,900% $18.4 million Berkshire Hathaway (NYSE: BRK.A) 1964* 3,220,000% $161.0 million Data source: yCharts, Berkshire Hathaway shareholder letters. For example, Microsoft's innovative software products created a major network effect in its earlier days. * They just revealed what they believe are the ten best stocks for investors to buy right now... and NVR wasn't one of them!
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18926.0
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2022-10-13 00:00:00 UTC
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The Zacks Analyst Blog Highlights NVIDIA, Alphabet, Apple, Snap and Autodesk
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AAPL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-nvidia-alphabet-apple-snap-and-autodesk
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For Immediate Release
Chicago, IL – October 13, 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: NVIDIA Corp. NVDA, Alphabet Inc. GOOGL, Apple Inc. AAPL, Snap Inc. SNAP and Autodesk Inc. ADSK.
Here are highlights from Wednesday’s Analyst Blog:
5 Stocks to Gain from the Flourishing Metaverse Space
The pandemic-led social transformation has established digitization as the new normal. The outbreak of coronavirus quickly changed the lifestyle and lookout of people. People who were not entirely used to digital platforms for doing office work (working from home), ordering food and other daily needs, transferring money and making payments are now fully tuned to these activities.
In 2020, UNCTAD reported "The global crisis brought on by the coronavirus pandemic has pushed us further into a digital world, and changes in behavior are likely to have lasting effects when the economy starts to pick up. The future will be much more digital than the past. This is going to provide a major impetus for the development of artificial intelligence, and cyberspace activities.”
Metaverse – The Latest Advent
The latest advent of the digitization space is the metaverse. In a nutshell, metaverse means a virtual world that is interactive and collaborative. The digital space is powered by the use of virtual and augmented reality.
According to a Bloomberg estimate, the market opportunity for the metaverse is expected to reach $800 billion by 2024 from $500 billion in 2020. The primary market for online game makers and gaming hardware may top $400 billion in 2024 while the remaining business will come from live entertainment and social media. Gaming, AR and VR create a $413 billion primary market for the metaverse.
According to Verified Market Research, citing a PRNewswire article, the metaverse market size, in reality, is estimated to reach $824.53 billion by 2030 from $27.21 billion in 2020. The market is expected to witness a CAGR of 39.1% from 2022 to 2030.
Stocks to Watch
We have narrowed our search to five stocks that have the potential to become major players in the metaverse space.
NVIDIA Corp. is benefiting from strong growth in GeForce desktop and notebook graphics processing units (GPU), which is boosting gaming revenues. NVDA’s state-of-the-art GPUs are likely to play an important role in metaverse development. NVIDIA’s acquisition of Mellanox is a key catalyst in this regard.
The NVIDIA Omniverse Enterprise platform is an end-to-end collaboration and simulation platform that fundamentally transforms complex design workflows in 3D space. This virtual content creation platform enables designers, creators and engineers to easily share their material in a digital space.
Zacks Rank #3 (Hold) NVDA has an estimated revenue growth rate of 2% for the current year (ending January 2023) and 14.4% for next year. The Zacks Consensus Estimate for the current year and next year earnings has improved 1.2% and 0.4%, respectively, in the past 30 days.
Alphabet Inc. has been growing rapidly in the booming cloud-computing market. GOOGL’s cloud offerings include Google Cloud Platform and Google Workspace, which are gaining momentum in the booming cloud computing market.
Further, Alphabet’s growing investments in infrastructure, security, data management, analytics and AI remain major developments in the metaverse space. GOOGL’s growing efforts toward strengthening its presence in the booming wearable space remain noteworthy.
Zacks Rank #3 Alphabet has an estimated revenue growth rate of 11.6% for the current year and 10% for the next year. The Zacks Consensus Estimate for the current year and next year’s earnings have improved 0.2% and 0.2%, respectively in the past 30 days.
Apple Inc. is encouraging developers to use artificial intelligence and machine learning in their apps. AAPL’s focus on autonomous vehicles and augmented reality/virtual reality technologies presents a growth opportunity for the long haul.
To ramp up its efforts, Apple has acquired several smaller firms with expertise in AR hardware, 3D gaming and VR software. These include SensoMotoric, Flyby Media, Emotient, TupleJump, Turi, Metaio, PrimeSense and Lattice Data Inc. In addition, AAPL’s ARKit is helping third-party developers to work on creating AR experiences for its iOS platform.
Zacks Rank #3 Apple has an estimated revenue and earnings per share growth rate of 4.5% and 6.2%, respectively, for the current year (ending September 2023). AAPL came up with earnings beat in each of the last four reported quarters.
Snap Inc. is continuing to focus on developing AR hardware through its Spectacle smart glasses. The adoption of the company’s AR lenses has been strong, particularly post the launch of Lens Studio 2. At the end of 2020, Snap launched its first-ever 5G-enabled Landmarker Lens (a new tool for overlaying AR on the world) in partnership with Verizon. The Lens uses SNAP’s augmented reality technology and Verizon’s 5G Ultra-Wideband capabilities.
The solid adoption of products like Scan and AR Bar is driving the usage of AR-based lenses, providing significant growth opportunities to SNAP. Moreover, the launch of Local Lenses, which enables shared and persistent AR experiences in much larger areas around the world, is expected to aid user engagement.
Snap added Cartoon Lens powered by real-time machine learning to its portfolio. Moreover, the launch of music Lenses in Lens Explorer and Dynamic Lenses, which allow developers to bring real-time information from their app into Snapchat Lenses, is a key catalyst.
SNAP has an estimated revenue growth rate of 13.8% for the current year and 15.7% for next year. The Zacks Consensus Estimate for current-year and next-year earnings has improved 66.7% and 20%, respectively in the past 30 days. Snap carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Autodesk Inc.‘s business transition from perpetual licenses to cloud-based subscription services is expected to benefit it in the long run. ADSK is well-positioned to capitalize on the rapid adoption of computer-aided designing and manufacturing through its comprehensive product portfolio.
Higher demand for Autodesk’s cloud-based products (BIM 360 cloud platform, Shotgun and Fusion Lifecycle), mobile products (AutoCAD 360) and design suites will drive top-line growth. ADSK is also benefiting from its investment in digital infrastructure, which includes its e-store.
Zacks Rank #3 Autodesk has an estimated revenue and earnings per share growth rate of 14.3% and 30.2%, respectively, for the current year (ending January 2023). The Zacks Consensus Estimate for the current year has improved 1.5% in the past 60 days.
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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.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Autodesk, Inc. (ADSK): Free Stock Analysis Report
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
The views and 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: NVIDIA Corp. NVDA, Alphabet Inc. GOOGL, Apple Inc. AAPL, Snap Inc. AAPL’s focus on autonomous vehicles and augmented reality/virtual reality technologies presents a growth opportunity for the long haul. In addition, AAPL’s ARKit is helping third-party developers to work on creating AR experiences for its iOS platform.
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Stocks recently featured in the blog include: NVIDIA Corp. NVDA, Alphabet Inc. GOOGL, Apple Inc. AAPL, Snap Inc. AAPL’s focus on autonomous vehicles and augmented reality/virtual reality technologies presents a growth opportunity for the long haul. In addition, AAPL’s ARKit is helping third-party developers to work on creating AR experiences for its iOS platform.
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Stocks recently featured in the blog include: NVIDIA Corp. NVDA, Alphabet Inc. GOOGL, Apple Inc. AAPL, Snap Inc. AAPL’s focus on autonomous vehicles and augmented reality/virtual reality technologies presents a growth opportunity for the long haul. In addition, AAPL’s ARKit is helping third-party developers to work on creating AR experiences for its iOS platform.
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Stocks recently featured in the blog include: NVIDIA Corp. NVDA, Alphabet Inc. GOOGL, Apple Inc. AAPL, Snap Inc. AAPL’s focus on autonomous vehicles and augmented reality/virtual reality technologies presents a growth opportunity for the long haul. In addition, AAPL’s ARKit is helping third-party developers to work on creating AR experiences for its iOS platform.
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18927.0
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2022-10-12 00:00:00 UTC
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Bear of the Day: HP (HPQ)
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AAPL
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https://www.nasdaq.com/articles/bear-of-the-day%3A-hp-hpq
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nan
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HP (HPQ) is a Zacks Rank #5 (Strong Sell) that provides personal computing and other access devices, imaging and printing products, and related technologies, solutions, and services.
The stock is trading near 2022 lows after a disappointing earnings report led analysts to slash estimates. Investors will be attracted to the dividend and valuation, but might want to stay away for now.
About the Company
HP is headquartered in Palo Alto, CA. The company founded in 1939 and was formerly known as Hewlett-Packard, until it changed its name to HP in 2015.
HP employs 51,000 people and operates through three segments: Personal Systems, Printing, and Corporate Investments.
HP is valued at $25 billion and has a Forward PE of 6. The company holds a Zacks Style Scores of “B” in Value, but “D” in Growth. The stock does have a nice dividend paying 4% at current trading levels.
Q3 Earnings
When it comes to earnings, the company does very well beating expectations. HP has not missed in over five years, but when they posted Q3 earnings the numbers came in as expected.
Revenues missed by $800M and the company cut their outlook.
HP guided Q4 in a range to $0.79-0.89m significantly lower than the $1.04 expected. The company also cut FY EPS and FCF. Operating margins were down year over year, personal systems revenue was down 3% y/y and printing revenues were down 6% y/y.
Recently, IT Gartner reported Q3 worldwide PC shipments were down 19.5% year over year. That kind of news is not what investors want to hear. Especially on top of the fact that HPQ estimates have been falling over the last two months
Estimates
Analysts look pretty bearish on future earnings for HP. Since Q3 earnings, estimates have fallen across all time frames.
For the current quarter, estimates have dropped from $1.05 to $0.84 over the last 60 days, or 20%. For next quarter, the numbers have fallen 19% over the same time frame.
Estimates are not looking great over the long-term either. For the current year, estimates have fallen 5% over the last 60 days. For next year, they have been slashed 14% over that same time frame.
Technical Take
HPQ is trading at 2022 lows, so there is not much to like about the chart. The 61.8% retracement drawn from COVID lows to 2022 highs is $23.80, so we could see some technical buying come in there.
If that were to fail, then investors are looking at the $20 level as the next area of support, followed by the COVID lows in the $15 area.
For bulls looking for a turnaround, they should eye the 21-day moving average at $26 as the first step. Then a move above the 50-day MA at $29.50 could signal some improvement. Remember, these levels will change and drift lower as price continues to trade lower.
In Summary
With inventories in the computing space becoming a larger issue, HP might continue to struggle near-term. While the dividend and valuation are attractive, investors need to understand they will likely become much more attractive when the stock drops more.
For those interested in the sector a better option might be Apple (AAPL). The stock is a Zacks Rank #3 (Hold) and is best in breed when it comes to tech.
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
HP Inc. (HPQ): 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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For those interested in the sector a better option might be Apple (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report HP (HPQ) is a Zacks Rank #5 (Strong Sell) that provides personal computing and other access devices, imaging and printing products, and related technologies, solutions, and services.
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Apple Inc. (AAPL): Free Stock Analysis Report For those interested in the sector a better option might be Apple (AAPL). The stock is trading near 2022 lows after a disappointing earnings report led analysts to slash estimates.
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For those interested in the sector a better option might be Apple (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report The stock is trading near 2022 lows after a disappointing earnings report led analysts to slash estimates.
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For those interested in the sector a better option might be Apple (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report For the current year, estimates have fallen 5% over the last 60 days.
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18928.0
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2022-10-12 00:00:00 UTC
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Apple, Samsung To Upgrade For 5G In India By December
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AAPL
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https://www.nasdaq.com/articles/apple-samsung-to-upgrade-for-5g-in-india-by-december
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nan
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(RTTNews) - Apple Inc. (AAPL) said on Thursday that it would include software upgrades to recent models, including the iPhone 14, 13, 12 and iPhone SE, as these models do not support the 5G network. The iPhone maker said in a statement, "We are working with our carrier partners in India to bring the best 5G experience to iPhone users as soon as network validation and testing for quality and performance is complete." "5G will be enabled via a software update and will start rolling out to iPhone users in December, " the company added. Prime Minister Narendra Modi launched 5G services on October 1 amid much fanfare, with leading telecom operator Reliance Jio saying it would make the service available in four cities, while rival Bharti Airtel targeted eight cities. A Samsung India spokesperson said the company would roll out updates across all its 5G devices by mid-November. The agenda includes "prioritising" the release of software upgrades for supporting the high-speed network, the notice for the closed-door meeting stated. While telecom players and smartphone makers have been holding discussions with each other, ironing out compatibility issues between the specific 5G technology of telecom companies in India and phone software is taking time, one of the industry sources said.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Apple Inc. (AAPL) said on Thursday that it would include software upgrades to recent models, including the iPhone 14, 13, 12 and iPhone SE, as these models do not support the 5G network. "5G will be enabled via a software update and will start rolling out to iPhone users in December, " the company added. Prime Minister Narendra Modi launched 5G services on October 1 amid much fanfare, with leading telecom operator Reliance Jio saying it would make the service available in four cities, while rival Bharti Airtel targeted eight cities.
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(RTTNews) - Apple Inc. (AAPL) said on Thursday that it would include software upgrades to recent models, including the iPhone 14, 13, 12 and iPhone SE, as these models do not support the 5G network. "5G will be enabled via a software update and will start rolling out to iPhone users in December, " the company added. The agenda includes "prioritising" the release of software upgrades for supporting the high-speed network, the notice for the closed-door meeting stated.
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(RTTNews) - Apple Inc. (AAPL) said on Thursday that it would include software upgrades to recent models, including the iPhone 14, 13, 12 and iPhone SE, as these models do not support the 5G network. The iPhone maker said in a statement, "We are working with our carrier partners in India to bring the best 5G experience to iPhone users as soon as network validation and testing for quality and performance is complete." While telecom players and smartphone makers have been holding discussions with each other, ironing out compatibility issues between the specific 5G technology of telecom companies in India and phone software is taking time, one of the industry sources said.
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(RTTNews) - Apple Inc. (AAPL) said on Thursday that it would include software upgrades to recent models, including the iPhone 14, 13, 12 and iPhone SE, as these models do not support the 5G network. "5G will be enabled via a software update and will start rolling out to iPhone users in December, " the company added. Prime Minister Narendra Modi launched 5G services on October 1 amid much fanfare, with leading telecom operator Reliance Jio saying it would make the service available in four cities, while rival Bharti Airtel targeted eight cities.
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18929.0
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2022-10-12 00:00:00 UTC
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After Hours Most Active for Oct 12, 2022 : RTO, TLT, PTVE, C, QQQ, SHY, CG, AAPL, JPM, NKE, PPL, BAC
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-oct-12-2022-%3A-rto-tlt-ptve-c-qqq-shy-cg-aapl-jpm-nke-ppl-bac
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The NASDAQ 100 After Hours Indicator is down -2.68 to 10,782.94. The total After hours volume is currently 68,482,688 shares traded.
The following are the most active stocks for the after hours session:
Rentokil Initial plc (RTO) is unchanged at $26.95, with 4,807,765 shares traded.
iShares 20+ Year Treasury Bond ETF (TLT) is -0.04 at $100.31, with 4,536,463 shares traded. This represents a 1.53% increase from its 52 Week Low.
Pactiv Evergreen Inc. (PTVE) is unchanged at $8.94, with 2,658,165 shares traded. PTVE's current last sale is 63.86% of the target price of $14.
Citigroup Inc. (C) is +0.04 at $40.88, with 1,843,304 shares traded.C is scheduled to provide an earnings report on 10/14/2022, for the fiscal quarter ending Sep2022. The consensus earnings per share forecast is 1.55 per share, which represents a 249 percent increase over the EPS one Year Ago
Invesco QQQ Trust, Series 1 (QQQ) is +0.35 at $263.01, with 1,754,956 shares traded. This represents a .76% increase from its 52 Week Low.
iShares 1-3 Year Treasury Bond ETF (SHY) is unchanged at $81.12, with 1,712,269 shares traded. This represents a .2% increase from its 52 Week Low.
The Carlyle Group Inc. (CG) is +0.005 at $25.78, with 1,578,593 shares traded. As reported by Zacks, the current mean recommendation for CG is in the "buy range".
Apple Inc. (AAPL) is +0.11 at $138.45, with 1,424,456 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
J P Morgan Chase & Co (JPM) is +0.1 at $103.71, with 956,040 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2022. The consensus EPS forecast is $2.98. JPM is scheduled to provide an earnings report on 10/14/2022, for the fiscal quarter ending Sep2022. The consensus earnings per share forecast is 2.98 per share, which represents a 374 percent increase over the EPS one Year Ago
Nike, Inc. (NKE) is unchanged at $88.51, with 944,056 shares traded. As reported by Zacks, the current mean recommendation for NKE is in the "buy range".
PPL Corporation (PPL) is unchanged at $23.98, with 941,421 shares traded., following a 52-week high recorded in today's regular session.
Bank of America Corporation (BAC) is +0.04 at $29.90, with 919,657 shares traded.BAC is scheduled to provide an earnings report on 10/17/2022, for the fiscal quarter ending Sep2022. The consensus earnings per share forecast is 0.79 per share, which represents a 85 percent increase over the EPS one Year Ago
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is +0.11 at $138.45, with 1,424,456 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Citigroup Inc. (C) is +0.04 at $40.88, with 1,843,304 shares traded.C is scheduled to provide an earnings report on 10/14/2022, for the fiscal quarter ending Sep2022.
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Apple Inc. (AAPL) is +0.11 at $138.45, with 1,424,456 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The consensus earnings per share forecast is 1.55 per share, which represents a 249 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is +0.11 at $138.45, with 1,424,456 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The consensus earnings per share forecast is 1.55 per share, which represents a 249 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is +0.11 at $138.45, with 1,424,456 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The consensus earnings per share forecast is 1.55 per share, which represents a 249 percent increase over the EPS one Year Ago
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18930.0
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2022-10-12 00:00:00 UTC
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ITOT, NUAG: Big ETF Outflows
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AAPL
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https://www.nasdaq.com/articles/itot-nuag%3A-big-etf-outflows
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nan
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares Core S&P Total U.S. Stock Market ETF, where 15,550,000 units were destroyed, or a 3.2% decrease week over week. Among the largest underlying components of ITOT, in morning trading today Apple is up about 0.5%, and Microsoft is relatively unchanged.
And on a percentage change basis, the ETF with the biggest outflow was the NUAG ETF, which lost 1,000,000 of its units, representing a 35.7% decline in outstanding units compared to the week prior.
VIDEO: ITOT, NUAG: 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 ITOT, in morning trading today Apple is up about 0.5%, and Microsoft is relatively unchanged. And on a percentage change basis, the ETF with the biggest outflow was the NUAG ETF, which lost 1,000,000 of its units, representing a 35.7% decline in outstanding units compared to the week prior. VIDEO: ITOT, NUAG: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares Core S&P Total U.S. Stock Market ETF, where 15,550,000 units were destroyed, or a 3.2% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the NUAG ETF, which lost 1,000,000 of its units, representing a 35.7% decline in outstanding units compared to the week prior. VIDEO: ITOT, NUAG: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares Core S&P Total U.S. Stock Market ETF, where 15,550,000 units were destroyed, or a 3.2% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the NUAG ETF, which lost 1,000,000 of its units, representing a 35.7% decline in outstanding units compared to the week prior. VIDEO: ITOT, NUAG: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares Core S&P Total U.S. Stock Market ETF, where 15,550,000 units were destroyed, or a 3.2% decrease week over week. Among the largest underlying components of ITOT, in morning trading today Apple is up about 0.5%, and Microsoft is relatively unchanged. And on a percentage change basis, the ETF with the biggest outflow was the NUAG ETF, which lost 1,000,000 of its units, representing a 35.7% decline in outstanding units compared to the week prior.
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18931.0
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2022-10-12 00:00:00 UTC
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Why Apple (AAPL) Could Beat Earnings Estimates Again
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AAPL
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https://www.nasdaq.com/articles/why-apple-aapl-could-beat-earnings-estimates-again
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nan
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nan
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Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Apple (AAPL), which belongs to the Zacks Computer - Mini computers industry.
When looking at the last two reports, this maker of iPhones, iPads and other products has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 5.78%, on average, in the last two quarters.
For the most recent quarter, Apple was expected to post earnings of $1.14 per share, but it reported $1.20 per share instead, representing a surprise of 5.26%. For the previous quarter, the consensus estimate was $1.43 per share, while it actually produced $1.52 per share, a surprise of 6.29%.
Price and EPS Surprise
For Apple, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. 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.
Apple has an Earnings ESP of +0.73% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on October 27, 2022.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
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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It is worth considering Apple (AAPL), which belongs to the Zacks Computer - Mini computers industry. Apple Inc. (AAPL): Free Stock Analysis Report When looking at the last two reports, this maker of iPhones, iPads and other products has recorded a strong streak of surpassing earnings estimates.
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It is worth considering Apple (AAPL), which belongs to the Zacks Computer - Mini computers industry. Apple Inc. (AAPL): Free Stock Analysis Report And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
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It is worth considering Apple (AAPL), which belongs to the Zacks Computer - Mini computers industry. Apple Inc. (AAPL): Free Stock Analysis Report And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
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It is worth considering Apple (AAPL), which belongs to the Zacks Computer - Mini computers industry. Apple Inc. (AAPL): Free Stock Analysis Report And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
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18932.0
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2022-10-12 00:00:00 UTC
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US STOCKS-S&P 500, Nasdaq rise after five-day selloff, rate-hike fears weigh
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-rise-after-five-day-selloff-rate-hike-fears-weigh
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
S&P 500, Nasdaq set to snap 5-day losing streak
U.S. producer prices rise more than expected in September
PepsiCo gains after lifting revenue, profit expectations
FOMC September meet minutes due later in the day
Indexes up: Dow 0.40%, S&P 0.26%, Nasdaq 0.19%
Updates prices at open, adds comments
By Shreyashi Sanyal and Ankika Biswas
Oct 12 (Reuters) - The S&P 500 and the Nasdaq bounced on Wednesday after a five-day selloff, but inflation and rate hike worries capped the gains after a higher-than-expected rise in September producer prices.
The Labor Department's producer prices index rose 8.5% in the 12 months through September, slightly higher than an estimated 8.4% rise. The reading was still lower than and 8.7% increase in August.
Persistent inflation has increased concerns about the Fed's aggressive monetary action tipping the world's largest economy into a recession.
"It's stubborn and some people are hoping that we had peak inflation and it's going to come down quickly," said Joe Saluzzi, partner at Themis Trading in Chatham, New Jersey.
"It is not going to be that way. That's what the Fed has been looking at and that's why they're raising rates the way they are. So this will take time and this is not going to be a quick thing."
Money markets are pricing in a 92% chance of another 75-basis-point hike in November. Investors will also scrutinize the Fed's September meeting minutes, due later in the day, for more clarity on the central bank's rate hike trajectory. FEDWATCH
"The thing we're looking for from the FOMC is some evidence that it is open-minded, that they will consider being a lot more flexible," said Hugh Johnson, chief economist of Hugh Johnson Economics at Albany, New York.
"The comments are going to be just as hawkish as they have been."
At 10:00 a.m. ET, the Dow Jones Industrial Average .DJI was up 117.80 points, or 0.40%, at 29,356.99, the S&P 500 .SPX was up 9.26 points, or 0.26%, at 3,598.10, and the Nasdaq Composite .IXIC was up 19.97 points, or 0.19%, at 10,446.16.
Battered megacap companies Apple Inc AAPL.O, Amazon.com AMZN.O, and Alphabet Inc GOOGL.O were up between 0.58% and 1.16%.
Chip shares including Nvidia Corp NVDA.O, Qualcomm Inc QCOM.O Micron Technology Inc MU.O, Advanced Micro Devices AMD.O and Intel Corp INTC.O were mixed.
The United States is scrambling to tackle unintended consequences of its new export curbs on China's chip industry that could inadvertently harm the semiconductor supply chain.
The Biden administration has allowed at least two non-Chinese chipmakers operating in China to receive restricted goods and services without their suppliers seeking licenses, the report said.
PepsiCo Inc PEP.O gained 3.35% after the soft-drinks maker raised its annual revenue and profit forecasts on firm demand for its sodas and snacks despite multiple price increases.
Boeing Co BA.N slipped 0.74% after Credit Suisse started its coverage on the planemaker with an "underperform" rating and Street low price target.
Investors will also monitor comments from Fed's Minneapolis President Neel Kashkari, Washington's Vice Chair for Supervision Michael Barr, and New York's Governor Michelle Bowman.
Declining issues outnumbered advancers for a 1.74-to-1 ratio on the NYSE and for a 1.47-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week high and 41 new lows, while the Nasdaq recorded 7 new highs and 201 new lows.
(Reporting by Ankika Biswas, Shreyashi Sanyal & Bansari Mayur Kamdar in Bengaluru; 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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Battered megacap companies Apple Inc AAPL.O, Amazon.com AMZN.O, and Alphabet Inc GOOGL.O were up between 0.58% and 1.16%. The United States is scrambling to tackle unintended consequences of its new export curbs on China's chip industry that could inadvertently harm the semiconductor supply chain. PepsiCo Inc PEP.O gained 3.35% after the soft-drinks maker raised its annual revenue and profit forecasts on firm demand for its sodas and snacks despite multiple price increases.
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Battered megacap companies Apple Inc AAPL.O, Amazon.com AMZN.O, and Alphabet Inc GOOGL.O were up between 0.58% and 1.16%. S&P 500, Nasdaq set to snap 5-day losing streak U.S. producer prices rise more than expected in September PepsiCo gains after lifting revenue, profit expectations FOMC September meet minutes due later in the day Indexes up: Dow 0.40%, S&P 0.26%, Nasdaq 0.19% Updates prices at open, adds comments By Shreyashi Sanyal and Ankika Biswas Oct 12 (Reuters) - The S&P 500 and the Nasdaq bounced on Wednesday after a five-day selloff, but inflation and rate hike worries capped the gains after a higher-than-expected rise in September producer prices. Investors will also scrutinize the Fed's September meeting minutes, due later in the day, for more clarity on the central bank's rate hike trajectory.
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Battered megacap companies Apple Inc AAPL.O, Amazon.com AMZN.O, and Alphabet Inc GOOGL.O were up between 0.58% and 1.16%. S&P 500, Nasdaq set to snap 5-day losing streak U.S. producer prices rise more than expected in September PepsiCo gains after lifting revenue, profit expectations FOMC September meet minutes due later in the day Indexes up: Dow 0.40%, S&P 0.26%, Nasdaq 0.19% Updates prices at open, adds comments By Shreyashi Sanyal and Ankika Biswas Oct 12 (Reuters) - The S&P 500 and the Nasdaq bounced on Wednesday after a five-day selloff, but inflation and rate hike worries capped the gains after a higher-than-expected rise in September producer prices. Investors will also scrutinize the Fed's September meeting minutes, due later in the day, for more clarity on the central bank's rate hike trajectory.
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Battered megacap companies Apple Inc AAPL.O, Amazon.com AMZN.O, and Alphabet Inc GOOGL.O were up between 0.58% and 1.16%. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. S&P 500, Nasdaq set to snap 5-day losing streak U.S. producer prices rise more than expected in September PepsiCo gains after lifting revenue, profit expectations FOMC September meet minutes due later in the day Indexes up: Dow 0.40%, S&P 0.26%, Nasdaq 0.19% Updates prices at open, adds comments By Shreyashi Sanyal and Ankika Biswas Oct 12 (Reuters) - The S&P 500 and the Nasdaq bounced on Wednesday after a five-day selloff, but inflation and rate hike worries capped the gains after a higher-than-expected rise in September producer prices.
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2022-10-12 00:00:00 UTC
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2 Warren Buffett Stocks to Buy That Could Soar 80% and 91%, According to Wall Street
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Warren Buffett held over $327 billion in equity securities through Berkshire Hathaway at the end of the second quarter, and more than half of that sum was invested in just three companies: Apple, Bank of America, and Coca-Cola, all of which have been huge winners for Buffett. But certain Wall Street analysts see a lot of upside for some of Berkshire's smaller holdings.
For instance, John Blackledge of Cowen Group has a price target of $215 per share on Amazon (NASDAQ: AMZN), which implies 91% upside from its current price. Similarly, Keith Weiss of Morgan Stanley has a price target of $274 per share on Snowflake (NYSE: SNOW), which implies 80% upside from its current price.
Of course, investors should never put too much weight on Wall Street's near-term price targets, but both of these Warren Buffett stocks are still worth buying today. Here's why.
Amazon: Retail, cloud computing, and digital advertising
High inflation has hit many retailers hard in the past year, and Amazon is no exception. The rising cost of fuel and labor, compounded by continued investments in fulfillment infrastructure, have weighed heavily on its financial performance. In fact, Amazon has now posted a GAAP loss for two consecutive quarters. But its struggles are the result of temporary macroeconomic headwinds, not a broken investment thesis. The future still looks very bright for Amazon.
Global retail e-commerce sales are expected to increase at 10% per year to reach $7.4 trillion by 2025, according to eMarketer, and Amazon is the most popular online marketplace in the world as measured by monthly visitors. That significant scale is the foundation of a powerful network effect. Specifically, sellers naturally gravitate to the most popular marketplace, and that tends to bring more buyers to the platform, creating a virtuous cycle. That should keep Amazon on the leading edge of the e-commerce industry for years to come.
Additionally, cloud computing spending is expected to grow faster than 15% per year to surpass $1.5 trillion by 2030, according to Grand View Research, and Amazon Web Services (AWS) led the cloud infrastructure space with 34% market share in the second quarter. Better yet, research company Gartner says AWS has consistently positioned itself as the innovation leader, and that attribute should keep it ahead of the competition for years to come.
Finally, global digital ad spend is expected to climb at 10% per year to reach $876 billion by 2026, according to eMarketer, and Amazon has quietly become an advertising powerhouse. In fact, it is the fourth-largest digital advertiser in the world, behind Alphabet, Meta Platforms, and Alibaba. That success stems primarily from the popularity of its online marketplace, though its streaming platform (Amazon Fire TV) has also played a role. In both cases, investors have good reason to believe Amazon will retain its strong market position, meaning the company is well-positioned to gain ground in digital advertising.
Shares currently trade at 2.4 times sales, a bargain compared to the three-year average of 3.8 times sales. Investors should jump on this opportunity and buy a few shares of this Warren Buffet stock. That said, 91% upside in the near term may be a bit optimistic, especially in the current macroeconomic environment.
Snowflake: Big data analytics
Snowflake helps businesses harness the power of big data. Its platform supports a range of workloads that would otherwise require multiple point solutions, including data ingestion, transformation, storage, and analytics. The Snowflake Data Cloud also enables customers to share data across their organizations, and it includes developer tools that simplify the building of data-intensive applications. That broad utility gives Snowflake an edge over other vendors.
Additionally, Snowflake offers industry-specific versions of its Data Cloud. For example, its Financial Services Data Cloud includes data sets and solutions tailored to financial service providers, and it has seen adoption by companies like Block and Mastercard. That portion of Snowflake's go-to-market strategy reduces friction for customers and accelerates time to value, and it has helped drive demand.
Snowflake increased its customer count 36% to 6,808 over the past year, and the average customer upped their spending by 71% during that time. In turn, revenue soared 92% to $1.6 billion, and the company generated positive free cash flow of $293 million, up from a loss of $43 million in the prior year.
Going forward, Snowflake puts its market opportunity at $248 billion by 2026, and given its strong financial track record investors have good reason to be bullish. Shares currently trade at 29.2 times sales -- not a cheap valuation by any means, but still a discount to the average of 86.6 times sales since Snowflake went public in 2020. That creates a buying opportunity for risk-tolerant investors, though I would keep your position small (no more than 2% of a portfolio) at the present time, and I certainly wouldn't count on 57% in the near term.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Bank of America is an advertising partner of The Ascent, a Motley Fool company. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Amazon, Block, Inc., and Mastercard. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), Block, Inc., Mastercard, Meta Platforms, Inc., and Snowflake Inc. The Motley Fool recommends Gartner 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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Global retail e-commerce sales are expected to increase at 10% per year to reach $7.4 trillion by 2025, according to eMarketer, and Amazon is the most popular online marketplace in the world as measured by monthly visitors. Finally, global digital ad spend is expected to climb at 10% per year to reach $876 billion by 2026, according to eMarketer, and Amazon has quietly become an advertising powerhouse. In both cases, investors have good reason to believe Amazon will retain its strong market position, meaning the company is well-positioned to gain ground in digital advertising.
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Global retail e-commerce sales are expected to increase at 10% per year to reach $7.4 trillion by 2025, according to eMarketer, and Amazon is the most popular online marketplace in the world as measured by monthly visitors. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), Block, Inc., Mastercard, Meta Platforms, Inc., and Snowflake Inc. The Motley Fool recommends Gartner 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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Additionally, cloud computing spending is expected to grow faster than 15% per year to surpass $1.5 trillion by 2030, according to Grand View Research, and Amazon Web Services (AWS) led the cloud infrastructure space with 34% market share in the second quarter. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), Block, Inc., Mastercard, Meta Platforms, Inc., and Snowflake Inc. The Motley Fool recommends Gartner 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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Of course, investors should never put too much weight on Wall Street's near-term price targets, but both of these Warren Buffett stocks are still worth buying today. Global retail e-commerce sales are expected to increase at 10% per year to reach $7.4 trillion by 2025, according to eMarketer, and Amazon is the most popular online marketplace in the world as measured by monthly visitors. Additionally, cloud computing spending is expected to grow faster than 15% per year to surpass $1.5 trillion by 2030, according to Grand View Research, and Amazon Web Services (AWS) led the cloud infrastructure space with 34% market share in the second quarter.
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2022-10-12 00:00:00 UTC
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1 Glorious Growth Stock Defying the Nasdaq Bear Market This Year
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https://www.nasdaq.com/articles/1-glorious-growth-stock-defying-the-nasdaq-bear-market-this-year
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Every stock market sector is down in 2022 except one: the energy sector. But given the shift to green power, that outperformance is unlikely to persist in the long run. It highlights how difficult it has been to find returns in this difficult economic climate, with inflation soaring and interest rates on the rise.
The Nasdaq-100 index, which represents the technology sector, is firmly in a bear market, with a decline of 33% year to date. But there are some individual tech stocks doing far better right now. That doesn't necessarily mean they're positive for 2022, but rather they're down less than the index, hinting that they could be among the best performers when the economy turns around.
Duolingo (NASDAQ: DUOL) is one of them. Its stock price has lost just 6% this year, and it's because Duolingo's business is proving resilient to the economic downturn. Here's why investors should consider adding it to their portfolio right now.
More users are paying to use Duolingo
Duolingo is a world-leading language education platform with a mobile-first approach. It has leveraged the intuitiveness of modern smartphones to turn the learning experience into a game, adding competition and even a social media aspect into the equation.
It has been downloaded over 500 million times, and as of the recent second quarter of 2022, there were 49.5 million users engaging with the platform every month. That's 31% more monthly active users than at the same time last year, but the real story is the number of them paying to elevate their experience by unlocking extra features.
Duolingo now has 3.3 million paid subscribers, up 71% year over year and representing 7.2% of the total monthly active user base. As the chart below depicts, the proportion of paid users continues to grow rapidly, which is a great sign learners are finding value in the platform.
The company only began to monetize with subscriptions in 2018, but it has already become the highest-grossing mobile application in the education category across both the Apple App Store, and Alphabet's Play Store.
Duolingo operates in an enormous market
Despite its success so far, Duolingo might have only scratched the surface of its total opportunity. The company estimates there are 1.8 billion people learning a foreign language around the world, and by 2025, the annual value of that market could top $47 billion. Digital language education is also becoming more popular than traditional methods -- and growing at more than twice the rate -- so Duolingo is perfectly positioned to reap the rewards of that shift.
Much of the growth could come from emerging markets like India, where the company has previously highlighted the rapidly decreasing cost of internet access. Between 2017 and the end of this year, Duolingo estimates 500 million people in that country will have accessed the internet for the very first time, opening the door for them to more easily learn global languages like English.
In the second quarter, Duolingo also noted its app was reinstated in China after being removed last year as part of a broad-based ban of foreign platforms. This is another huge market, and it already represents as much as 2% of the company's monthly active users after only going live once again in May.
Here's why that's significant
Duolingo's run of revenue growth so far has been impressive. The company generated just $70 million in 2019, and its guidance suggests that it could balloon to as much as $367 million this year, representing a compound annual increase of 73% if it hits the mark. But this might only be the beginning of Duolingo's road to capturing its $47 billion opportunity in the next few years.
More importantly, in the nearer term, Duolingo has raised that 2022 forecast not once but twice. At the end of 2021, it guided for $342 million in 2022 revenue and then upped that figure to $358 million in the first quarter.
The point is, Duolingo's increasingly optimistic outlook is in stark contrast to the rest of the technology sector, which has been slashing numbers since the beginning of the year. It's a key reason Duolingo stock has lost just 6% in 2022 compared to the Nasdaq-100's loss of 33%. That's why investors might find comfort in buying in now, especially if the broader market begins to recover.
10 stocks we like better than Duolingo, Inc.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It has leveraged the intuitiveness of modern smartphones to turn the learning experience into a game, adding competition and even a social media aspect into the equation. That's 31% more monthly active users than at the same time last year, but the real story is the number of them paying to elevate their experience by unlocking extra features. Between 2017 and the end of this year, Duolingo estimates 500 million people in that country will have accessed the internet for the very first time, opening the door for them to more easily learn global languages like English.
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Duolingo now has 3.3 million paid subscribers, up 71% year over year and representing 7.2% of the total monthly active user base. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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More users are paying to use Duolingo Duolingo is a world-leading language education platform with a mobile-first approach. Duolingo now has 3.3 million paid subscribers, up 71% year over year and representing 7.2% of the total monthly active user base. 10 stocks we like better than Duolingo, Inc.
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It has been downloaded over 500 million times, and as of the recent second quarter of 2022, there were 49.5 million users engaging with the platform every month. Duolingo now has 3.3 million paid subscribers, up 71% year over year and representing 7.2% of the total monthly active user base. 10 stocks we like better than Duolingo, Inc.
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2022-10-12 00:00:00 UTC
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Sirius XM (SIRI) to Open a Broadcast Center in Miami in 2023
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Sirius XM SIRI recently announced that it will be opening a state-of-the-art broadcast center, which will be a 50-seat performance space in Miami in 2023.
The facility will bring several artist-first radio and recording studios, in addition to office space, and feature a world-class performance space for special events, such as the Small Stage Series.
The studios will be a destination for both major stars and emerging personalities to connect with listeners and will be utilized by the company's entire slate of audio entertainment brands including SiriusXM, Pandora and Stitcher.
Miami is a vibrant center for music, art, entertainment and sports, and the SiriusXM studios will be a mecca for talent on promotional tours in the area, helping the company gain traction with existing and new customers.
Partnerships & Additional Channels Aid the Growth of Sirius XM
Along with expanding its studio presence, Sirius XM has also been successfully extending its partnerships with multiple companies.
It inked a long-term agreement with Toyota Motors, which started with 2020 models and extends till 2028. The extended partnership was primarily due to increased demand for Sirius XM’s services from Toyota’s dealers and customers. This would also let Sirius XM benefit from the expansion of 360L with General Motors, which is expected to be rolled out by the year-end.
Its new and used car penetration rates grew to 84% and 51% year over year, respectively and the enabled fleet is now approximately 145 million cars.
In second-quarter fiscal 2022, Sirius XM entered new sign-ups on key connected TV platforms, including Amazon Fire android TV, LG and Roku. It also closed an agreement with Comcast, its first broadband TV provider, which includes launching a fully integrated SiriusXM audio experience to millions of Comcast customers on the Xfinity platform, which is also expected to support video later this year.
Sirius XM Holdings Inc. Price and Consensus
Sirius XM Holdings Inc. price-consensus-chart | Sirius XM Holdings Inc. Quote
The streaming division of Sirius XM has also been performing well as the company has been adding new channels for music, sports and entertainment.
The company also created top-up channels for Black Music Appreciation Month to celebrate the music of black artists such as Whitney Houston, Tupac, Biggie and Prince. Such unique content contributed to a 41% year-over-year increase in on-demand music listening in the SXM app.
This year also awaits Tonight's Moneskin, small-stage series event and Pearl Jam with the Apollo, which shall be providing exclusive experience to subscribers.
Sirius XM has introduced two exclusive sports channels, SiriusXM Big Ten Radio and SiriusXM Big 12 Radio, which will provide in-depth access and extensive live-game coverage. Additionally, Sirius XM is expected to add 100 streaming channels to its app.
What's in Store for Sirius XM in the Rest of 2022?
Sirius XM currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company’s margins are under pressure as increasing Original Equipment Manufacturer (“OEM”) installations and higher OEM hardware subsidy rates are resulting in higher subscriber acquisition costs. The growing music licensing costs are another headwind.
Sirius XM’s revenues have a high dependence on the auto industry as it provides radio service to it. A slowdown in the sales of new or used cars can affect the company’s growth.
Sirius XM’s shares have declined 6% year to date compared with the Zacks Consumer Discretionary Sector, which declined 41.6%. Sirius is also facing stiff competition from Apple AAPL, Spotify SPOT and Amazon AMZN.
Apple’s shares have declined 21.7% year to date. Apple continues to bolster its presence in the music streaming space, backed by acquisitions of Shazam and Asaii. The company recently got into the Augmented Reality (“AR”) market, differentiating its music service offerings and AR initiatives.
Spotify’s shares have lost 64.9% year to date. Spotify’s partnerships with Samsung and Google are expected to boost its subscriber base. Its solid focus on the personalization of playlists enhances the music experience for users.
Amazon’s shares have declined 32.7% in the same time frame. Amazon is gaining strong momentum in the music streaming market as its premium music subscription service, Amazon Music Unlimited, allows music lovers to listen to any song anytime and anywhere on all types of devices, including smartphones, tablets, PC/Mac, Fire TV and Alexa-enabled devices like Amazon Echo.
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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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Sirius is also facing stiff competition from Apple AAPL, Spotify SPOT and Amazon AMZN. Apple Inc. (AAPL): Free Stock Analysis Report The studios will be a destination for both major stars and emerging personalities to connect with listeners and will be utilized by the company's entire slate of audio entertainment brands including SiriusXM, Pandora and Stitcher.
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Sirius is also facing stiff competition from Apple AAPL, Spotify SPOT and Amazon AMZN. Apple Inc. (AAPL): Free Stock Analysis Report Sirius XM Holdings Inc. Price and Consensus Sirius XM Holdings Inc. price-consensus-chart | Sirius XM Holdings Inc. Quote The streaming division of Sirius XM has also been performing well as the company has been adding new channels for music, sports and entertainment.
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Sirius is also facing stiff competition from Apple AAPL, Spotify SPOT and Amazon AMZN. Apple Inc. (AAPL): Free Stock Analysis Report Partnerships & Additional Channels Aid the Growth of Sirius XM Along with expanding its studio presence, Sirius XM has also been successfully extending its partnerships with multiple companies.
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Sirius is also facing stiff competition from Apple AAPL, Spotify SPOT and Amazon AMZN. Apple Inc. (AAPL): Free Stock Analysis Report Partnerships & Additional Channels Aid the Growth of Sirius XM Along with expanding its studio presence, Sirius XM has also been successfully extending its partnerships with multiple companies.
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2022-10-12 00:00:00 UTC
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US STOCKS-Wall St futures pare gains as inflation data cements rate hike bets
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https://www.nasdaq.com/articles/us-stocks-wall-st-futures-pare-gains-as-inflation-data-cements-rate-hike-bets
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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. producer prices rise more than expected in September
PepsiCo gains on lifting revenue, profit expectations
Chipmakers up, U.S. scrambles to tackle export curb effects
FOMC September meet minutes awaited
Futures up: Dow 0.16%, S&P 0.28%, Nasdaq 0.38%
Adds comments, updates prices throughout
By Shreyashi Sanyal and Bansari Mayur Kamdar
Oct 12 (Reuters) - U.S. stock index futures pared gains on Wednesday after data showed producer prices increased more than expected in September, in another hot inflation reading that boosted bets of more jumbo-sized interest rate hikes by the Federal Reserve.
The Labor Department's producer prices index rose 8.5% in the 12 months through September, slightly higher than an estimated 8.4% rise. The reading was still lower than and 8.7% increase in August.
"It's stubborn and some people are hoping that we had peak inflation and it's going to come down quickly," said Joe Saluzzi, partner at Themis Trading in Chatham, New Jersey.
"It is not going to be that way. That's what the Fed has been looking at and that's why they're raising rates the way they are. So this will take time and this is not going to be a quick thing."
Persistent inflation has sparked worries about the Fed's aggressive monetary action tipping the world's largest economy into a recession. Money markets are pricing in a 92% chance of another 75-basis-point hike in November. FEDWATCH
Still, Wall Street's main indexes eyed a bounce following five straight days of declines in the Nasdaq .IXIC and the benchmark S&P 500 .SPX as recent economic data nearly sealed a case for a fourth consecutive 75-basis-point hike by the Fed.
Battered megacap companies Microsoft Corp MSFT.O, Tesla Inc TSLA.O, Alphabet Inc GOOGL.O, Apple Inc AAPL.O and Meta Platforms Inc META.O rose between 0.2% and 0.6% in premarket trading.
Beaten-down chip shares including Nvidia Corp NVDA.O, Qualcomm Inc QCOM.O Micron Technology Inc MU.O, Advanced Micro Devices AMD.O and Intel Corp INTC.O also rose between 0.2% and 1%.
The United States is scrambling to tackle unintended consequences of its new export curbs on China's chip industry that could inadvertently harm the semiconductor supply chain.
A Reuters report showed the Biden administration has allowed at least two non-Chinese chipmakers operating in China to receive restricted goods and services without their suppliers seeking licenses, the report said.
At 8:51 a.m. ET, Dow e-minis 1YMcv1 were up 46 points, or 0.16%, S&P 500 e-minis EScv1 were up 10.25 points, or 0.28%, and Nasdaq 100 e-minis NQcv1 were up 41.25 points, or 0.38%.
PepsiCo Inc PEP.O gained 2.6% up after the soft-drinks maker raised its annual revenue and profit forecasts on firm demand for its sodas and snacks despite multiple price increases amid rising costs.
Investors will also monitor comments from Fed's Minneapolis President Neel Kashkari, Washington's Vice Chair for Supervision Michael Barr, and New York's Governor Michelle Bowman.
(Reporting by Ankika Biswas, Shreyashi Sanyal & Bansari Mayur Kamdar in Bengaluru; 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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Battered megacap companies Microsoft Corp MSFT.O, Tesla Inc TSLA.O, Alphabet Inc GOOGL.O, Apple Inc AAPL.O and Meta Platforms Inc META.O rose between 0.2% and 0.6% in premarket trading. FEDWATCH Still, Wall Street's main indexes eyed a bounce following five straight days of declines in the Nasdaq .IXIC and the benchmark S&P 500 .SPX as recent economic data nearly sealed a case for a fourth consecutive 75-basis-point hike by the Fed. PepsiCo Inc PEP.O gained 2.6% up after the soft-drinks maker raised its annual revenue and profit forecasts on firm demand for its sodas and snacks despite multiple price increases amid rising costs.
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Battered megacap companies Microsoft Corp MSFT.O, Tesla Inc TSLA.O, Alphabet Inc GOOGL.O, Apple Inc AAPL.O and Meta Platforms Inc META.O rose between 0.2% and 0.6% in premarket trading. U.S. producer prices rise more than expected in September PepsiCo gains on lifting revenue, profit expectations Chipmakers up, U.S. scrambles to tackle export curb effects FOMC September meet minutes awaited Futures up: Dow 0.16%, S&P 0.28%, Nasdaq 0.38% Adds comments, updates prices throughout By Shreyashi Sanyal and Bansari Mayur Kamdar Oct 12 (Reuters) - U.S. stock index futures pared gains on Wednesday after data showed producer prices increased more than expected in September, in another hot inflation reading that boosted bets of more jumbo-sized interest rate hikes by the Federal Reserve. The Labor Department's producer prices index rose 8.5% in the 12 months through September, slightly higher than an estimated 8.4% rise.
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Battered megacap companies Microsoft Corp MSFT.O, Tesla Inc TSLA.O, Alphabet Inc GOOGL.O, Apple Inc AAPL.O and Meta Platforms Inc META.O rose between 0.2% and 0.6% in premarket trading. U.S. producer prices rise more than expected in September PepsiCo gains on lifting revenue, profit expectations Chipmakers up, U.S. scrambles to tackle export curb effects FOMC September meet minutes awaited Futures up: Dow 0.16%, S&P 0.28%, Nasdaq 0.38% Adds comments, updates prices throughout By Shreyashi Sanyal and Bansari Mayur Kamdar Oct 12 (Reuters) - U.S. stock index futures pared gains on Wednesday after data showed producer prices increased more than expected in September, in another hot inflation reading that boosted bets of more jumbo-sized interest rate hikes by the Federal Reserve. FEDWATCH Still, Wall Street's main indexes eyed a bounce following five straight days of declines in the Nasdaq .IXIC and the benchmark S&P 500 .SPX as recent economic data nearly sealed a case for a fourth consecutive 75-basis-point hike by the Fed.
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Battered megacap companies Microsoft Corp MSFT.O, Tesla Inc TSLA.O, Alphabet Inc GOOGL.O, Apple Inc AAPL.O and Meta Platforms Inc META.O rose between 0.2% and 0.6% in premarket trading. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. U.S. producer prices rise more than expected in September PepsiCo gains on lifting revenue, profit expectations Chipmakers up, U.S. scrambles to tackle export curb effects FOMC September meet minutes awaited Futures up: Dow 0.16%, S&P 0.28%, Nasdaq 0.38% Adds comments, updates prices throughout By Shreyashi Sanyal and Bansari Mayur Kamdar Oct 12 (Reuters) - U.S. stock index futures pared gains on Wednesday after data showed producer prices increased more than expected in September, in another hot inflation reading that boosted bets of more jumbo-sized interest rate hikes by the Federal Reserve.
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18937.0
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2022-10-12 00:00:00 UTC
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The Zacks Analyst Blog Highlights HP, Dell, Apple and Lenovo
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AAPL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-hp-dell-apple-and-lenovo
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nan
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For Immediate Release
Chicago, IL – October 12, 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: HP Inc. HPQ, Dell Technologies DELL, Apple AAPL and Lenovo LNVGY.
Here are highlights from Tuesday’s Analyst Blog:
PC Shipments Decline in Q3 on Lower Demand, Economic Woes
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 third quarter, according to the latest data compiled by market research firm, Gartner.
Per the preliminary data released by Gartner, PC shipments in the September quarter plunged 19.5% year over year to 68 million units. The independent research firm claims the decline to be the sharpest since it has been tracking the PC market since the mid-1990s.
Why Did PC Shipments Fall in Q3?
Gartner opines that the year-over-year decline was mainly due to weakening consumer demand for PCs, supply-chain issues and high inventory levels. Softening IT spending amid the ongoing economic and geopolitical uncertainties resulted in a decline in demand for PCs.
Computer - Mini computers Industry 5YR % Return
In 2020 and 2021, PC manufacturers had benefited from increased demand amid the pandemic-induced remote-working and online-learning wave. The pandemic necessitated the use of PC systems, be it for remote work, web-based learning, video conferencing, video gaming, social media, consumer entertainment and streaming or online shopping.
However, the recent back-to-back three quarters of declining PC shipments depict an end of the demand boom for the industry. We believe that consumers have become more cautious about their spending due to inflationary pressure and fears of a possible recession.
The drastic decline in PC shipments was also due to a steep downturn in Chromebook demand as the reopening of schools and colleges across the majority parts of the world weakened the necessity for education on PCs. Gartner noted that despite massive promotions and price drops, back-to-school sales were disappointing as many consumers had purchased new PCs in the last two years.
Gartner in its report pointed out that though supply-chain challenges have eased somewhat, higher inventory level has become a major issue due to softened demand for consumer as well as commercial PCs.
Additionally, Gartner pointed out that several PC manufacturers’ decision to halt business operations in Russia due to its attack on Ukraine severely affected PC shipment volumes in the quarter.
Vendor-Wise PC Shipments
Gartner revealed that all vendors registered steep year-over-year declines in their PC sales volumes. Per the data compiled by Gartner, HP Inc. registered the highest fall of 27.9% to 12.71 million units, followed by Acer’s 25.6% to $4.49 million PCs.
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. Lenovo shipments contracted 15.3% to 17.11 million, while Asus witnessed a 7.5% decline to 5.56 million units.
Per Gartner, Lenovo continues to hold the top spot in the vendor list, followed by HP and Dell, with a market share of 25.2%, 18.7% and 17.7%, respectively. Apple, ASUS and Acer ended the July-September quarter with a market share of 8.5%, 8.2% and 6.6%, respectively.
Among the leading vendors, Apple carries a Zacks Rank #3 (Hold), while Dell has a Zacks Rank #4 (Sell). HP and Lenovo each carry a Zacks Rank #5 (Strong Sell). Shares of AAPL, DELL, HPQ and Lenovo have plunged 20.9%, 38.6%, 33.7% and 40.2%, respectively, year to date.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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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.
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.
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Apple Inc. (AAPL): Free Stock Analysis Report
HP Inc. (HPQ): Free Stock Analysis Report
Dell Technologies Inc. (DELL): Free Stock Analysis Report
Lenovo Group Ltd. (LNVGY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include: HP Inc. HPQ, Dell Technologies DELL, Apple AAPL and Lenovo LNVGY. Shares of AAPL, DELL, HPQ and Lenovo have plunged 20.9%, 38.6%, 33.7% and 40.2%, respectively, year to date. Apple Inc. (AAPL): Free Stock Analysis Report
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Stocks recently featured in the blog include: HP Inc. HPQ, Dell Technologies DELL, Apple AAPL and Lenovo LNVGY. Shares of AAPL, DELL, HPQ and Lenovo have plunged 20.9%, 38.6%, 33.7% and 40.2%, respectively, year to date. Apple Inc. (AAPL): Free Stock Analysis Report
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Stocks recently featured in the blog include: HP Inc. HPQ, Dell Technologies DELL, Apple AAPL and Lenovo LNVGY. Shares of AAPL, DELL, HPQ and Lenovo have plunged 20.9%, 38.6%, 33.7% and 40.2%, respectively, year to date. Apple Inc. (AAPL): Free Stock Analysis Report
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Stocks recently featured in the blog include: HP Inc. HPQ, Dell Technologies DELL, Apple AAPL and Lenovo LNVGY. Shares of AAPL, DELL, HPQ and Lenovo have plunged 20.9%, 38.6%, 33.7% and 40.2%, respectively, year to date. Apple Inc. (AAPL): Free Stock Analysis Report
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18938.0
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2022-10-12 00:00:00 UTC
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US STOCKS-Wall St futures rise ahead of inflation data, Fed minutes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-futures-rise-ahead-of-inflation-data-fed-minutes
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nan
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nan
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By Bansari Mayur Kamdar and Ankika Biswas
Oct 12 (Reuters) - U.S. stock index futures rose on Wednesday, led by technology and growth shares, ahead of data on a key inflation indicator and minutes from the Federal Reserve's September meeting.
The bounce follows five straight days of declines in the Nasdaq .IXIC and the benchmark S&P 500 .SPX as recent economic data nearly sealed a case for a fourth consecutive 75-basis-point hike by the Fed.
The Labor Department's producer prices index data due at 8:30 a.m. ET is expected to have risen 8.4% in the 12 months through September, after advancing 8.7% in August.
Stubborn inflation has sparked worries about the Fed's aggressive monetary action tipping the world's largest economy into a recession.
Battered megacap companies Microsoft Corp MSFT.O, Tesla Inc TSLA.O, Alphabet Inc GOOGL.O, Apple Inc AAPL.O and Meta Platforms Inc META.O rose between 0.6% and 0.7% in premarket trading.
Beaten-down chip shares including Nvidia Corp NVDA.O, Qualcomm Inc QCOM.O Micron Technology Inc MU.O, Advanced Micro Devices AMD.O and Intel Corp INTC.O also rose between 0.9% and 1%.
A Reuters report showed the United States is scrambling to tackle unintended consequences of its new export curbs on China's chip industry that could inadvertently harm the semiconductor supply chain.
The Biden administration has allowed at least two non-Chinese chipmakers operating in China to receive restricted goods and services without their suppliers seeking licenses, the report said.
At 6:57 a.m. ET, Dow e-minis 1YMcv1 were up 118 points, or 0.4%, S&P 500 e-minis EScv1 were up 20.5 points, or 0.57%, and Nasdaq 100 e-minis NQcv1 were up 85.25 points, or 0.79%.
PepsiCo Inc PEP.O inched 1.5% up after the soft-drinks maker raised its annual revenue and profit forecasts on firm demand for its sodas and snacks despite multiple price increases amid rising costs.
Investors will also monitor comments from Fed's Minneapolis President Neel Kashkari, Washington's Vice Chair for Supervision Michael Barr, and New York's Governor Michelle Bowman.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva and Arun Koyyur)
((BansariMayur.Kamdar@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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Battered megacap companies Microsoft Corp MSFT.O, Tesla Inc TSLA.O, Alphabet Inc GOOGL.O, Apple Inc AAPL.O and Meta Platforms Inc META.O rose between 0.6% and 0.7% in premarket trading. By Bansari Mayur Kamdar and Ankika Biswas Oct 12 (Reuters) - U.S. stock index futures rose on Wednesday, led by technology and growth shares, ahead of data on a key inflation indicator and minutes from the Federal Reserve's September meeting. A Reuters report showed the United States is scrambling to tackle unintended consequences of its new export curbs on China's chip industry that could inadvertently harm the semiconductor supply chain.
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Battered megacap companies Microsoft Corp MSFT.O, Tesla Inc TSLA.O, Alphabet Inc GOOGL.O, Apple Inc AAPL.O and Meta Platforms Inc META.O rose between 0.6% and 0.7% in premarket trading. By Bansari Mayur Kamdar and Ankika Biswas Oct 12 (Reuters) - U.S. stock index futures rose on Wednesday, led by technology and growth shares, ahead of data on a key inflation indicator and minutes from the Federal Reserve's September meeting. The Labor Department's producer prices index data due at 8:30 a.m.
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Battered megacap companies Microsoft Corp MSFT.O, Tesla Inc TSLA.O, Alphabet Inc GOOGL.O, Apple Inc AAPL.O and Meta Platforms Inc META.O rose between 0.6% and 0.7% in premarket trading. By Bansari Mayur Kamdar and Ankika Biswas Oct 12 (Reuters) - U.S. stock index futures rose on Wednesday, led by technology and growth shares, ahead of data on a key inflation indicator and minutes from the Federal Reserve's September meeting. Beaten-down chip shares including Nvidia Corp NVDA.O, Qualcomm Inc QCOM.O Micron Technology Inc MU.O, Advanced Micro Devices AMD.O and Intel Corp INTC.O also rose between 0.9% and 1%.
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Battered megacap companies Microsoft Corp MSFT.O, Tesla Inc TSLA.O, Alphabet Inc GOOGL.O, Apple Inc AAPL.O and Meta Platforms Inc META.O rose between 0.6% and 0.7% in premarket trading. By Bansari Mayur Kamdar and Ankika Biswas Oct 12 (Reuters) - U.S. stock index futures rose on Wednesday, led by technology and growth shares, ahead of data on a key inflation indicator and minutes from the Federal Reserve's September meeting. The bounce follows five straight days of declines in the Nasdaq .IXIC and the benchmark S&P 500 .SPX as recent economic data nearly sealed a case for a fourth consecutive 75-basis-point hike by the Fed.
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18939.0
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2022-10-12 00:00:00 UTC
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3 Top Metaverse Stocks to Buy in October
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AAPL
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https://www.nasdaq.com/articles/3-top-metaverse-stocks-to-buy-in-october
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nan
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nan
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"The metaverse" is a phrase often used but not readily understood. To date, the best metaverse definition I've heard is from Nvidia (NASDAQ: NVDA) CEO Jensen Huang, who simply calls it the "3D internet."
Viewed in this way, the metaverse is already here and doing some interesting things for a few techy consumers and for many businesses too. With the stock market in turmoil and creating stock buying opportunities, this next iteration of the internet is worth investing in right now. Three top "metaverse" stocks worth a look in October are Nvidia, Meta Platforms (NASDAQ: META), and Qualcomm (NASDAQ: QCOM). Here's why.
1. Nvidia: Not the only company betting big on the metaverse
Meta isn't the only company betting on immersive 3D experiences. While it hasn't gone as far as changing its name, Nvidia did name its new flagship software platform Omniverse, indicating it believes there will be many "metaverses" it plans to enable and support.
What's this business of more than one metaverse, when most investors are still unsure of what the metaverse is in the first place? As mentioned above, Nvidia's top brass simply sees the metaverse as a 3D version of the internet, a more immersive version of the websites, apps, and other services we already use every day. Thus, the metaverse will mean different things for different companies depending on what it is they do. It could be a video game, it could be a retailer app that lets you visualize a product in your home before you buy, or it could be a virtual rendition of a building an engineering team is designing. The sky's the limit.
Of course, not all of Nvidia's metaverse products are firing on all cylinders right now. Video game sales were down 33% year over year last quarter. But data center (where much of the metaverse will be built and deployed) sales were up 61%. Automotive (which more and more is becoming an autonomous vehicle segment) was up 45% and is well on its way to becoming a $1 billion-a-year business for Nvidia.
Nvidia stock is trading down some 65% from all-time highs, reflecting extreme pessimism right now as the company deals with a slowdown in consumer spending, an oversupply of gaming chips, and a new round of the U.S.-China trade war. But if you're looking for a great ultra-long-term stock to buy, Nvidia is a top choice.
2. Meta: Unloved and forgotten despite having lots of good things going for it
I understand why Meta (Facebook, Instagram, and WhatsApp) has been discarded by so many investors this year. A confluence of negative developments has been steadily building for years, and has been brought to bear against the company. The catalyst was Apple's (NASDAQ: AAPL) recent application tracking transparency changes to its operating systems, which reduces the value of digital ads for Meta and other software developers because it's much harder to target ads toward individual users.
As a result, the company is facing its first-ever revenue decline this year if things don't improve -- which it appears they may not with the global economy weakening in recent months. Meta's total sales were up just 2.7% in the first half of this year, which includes a 1% year-over-year drop in Q2 2022.
But there's still a lot to like about Meta. The company is still wildly profitable, with operating profit margins coming in at 29% in Q2. Meta had over $40 billion in cash and short-term investments at the end of June, and zero debt. And monthly active users are still remarkably increasing (up 4% last quarter to 3.65 billion).
That last point is notable. With literally billions of people interacting via a Meta app every month, the company's metaverse ambitions don't seem so farfetched. People love Meta products, and making the apps more immersive (i.e. the metaverse) could only increase their value over time. The "Reality Labs" segment (home of the Meta Quest virtual reality headset and app ecosystem) is a drain on the bottom line right now. But the $1.15 billion in sales Reality Labs hauled in the first half of 2022 (a 37% year-over-year increase) is impressive.
I wouldn't bet on Mark Zuckerberg being a one-hit wonder, especially not with the resources and customer depth Meta has. At just nine (nine!) times enterprise value to free cash flow, this company is practically being left for dead. I'm a buyer in the month of October.
3. Qualcomm: Mobile chips are key to the metaverse
Last November at an investor meeting, Qualcomm CEO Cristiano Amon said that the Oculus Quest 2 virtual reality headset (now the Meta Quest 2) had already sold 10 million units. That figure is based on Qualcomm's chip shipments, which power Meta's VR hardware. A year later, we don't know exactly how many Quest 2s have been sold, but some estimates point to upwards of 15 million. Not bad for an early foray into 3D immersive gaming and social experiences. And all indications are that a successor to Quest 2 is forthcoming.
This underscores the work Qualcomm is doing, and how it will play a big role in the development of the metaverse. Sure, mobile gaming and productivity hardware like VR as well as augmented reality (AR) gear could be big. Qualcomm's energy-efficient and powerful chips are ideal for this type of application, just as they've been for smartphones.
But Qualcomm is expanding its reach into other areas as the lines between the real and virtual worlds blur. One big area to watch is the company's IoT (internet of things) segment, which hauled in $1.83 billion in sales last quarter. That represented a 31% year-over-year increase. IoT encompasses consumer products like laptops, wearables, and consumer electronics, as well as energy, smart manufacturing, and smart city products. Given that the metaverse will mean different things for different companies and organizations, all of this new hardware could eventually play into the future of the 3D internet.
Like other tech stocks, Qualcomm has been blasted this year, down 38% from its all-time high. Shares now trade for 20 times enterprise value to free cash flow, a metric slightly elevated by the fact Qualcomm has been investing lots of money into research and development. This is still very much a growth company, and it could be a top bet on the development of the metaverse. Now looks like a timely opportunity to buy to me.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Nicholas Rossolillo and his clients have positions in Apple, Meta Platforms, Inc., Nvidia, and Qualcomm. The Motley Fool has positions in and recommends Apple, Meta Platforms, Inc., Nvidia, and Qualcomm. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The catalyst was Apple's (NASDAQ: AAPL) recent application tracking transparency changes to its operating systems, which reduces the value of digital ads for Meta and other software developers because it's much harder to target ads toward individual users. It could be a video game, it could be a retailer app that lets you visualize a product in your home before you buy, or it could be a virtual rendition of a building an engineering team is designing. As a result, the company is facing its first-ever revenue decline this year if things don't improve -- which it appears they may not with the global economy weakening in recent months.
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The catalyst was Apple's (NASDAQ: AAPL) recent application tracking transparency changes to its operating systems, which reduces the value of digital ads for Meta and other software developers because it's much harder to target ads toward individual users. Three top "metaverse" stocks worth a look in October are Nvidia, Meta Platforms (NASDAQ: META), and Qualcomm (NASDAQ: QCOM). The "Reality Labs" segment (home of the Meta Quest virtual reality headset and app ecosystem) is a drain on the bottom line right now.
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The catalyst was Apple's (NASDAQ: AAPL) recent application tracking transparency changes to its operating systems, which reduces the value of digital ads for Meta and other software developers because it's much harder to target ads toward individual users. Three top "metaverse" stocks worth a look in October are Nvidia, Meta Platforms (NASDAQ: META), and Qualcomm (NASDAQ: QCOM). Nvidia: Not the only company betting big on the metaverse Meta isn't the only company betting on immersive 3D experiences.
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The catalyst was Apple's (NASDAQ: AAPL) recent application tracking transparency changes to its operating systems, which reduces the value of digital ads for Meta and other software developers because it's much harder to target ads toward individual users. Three top "metaverse" stocks worth a look in October are Nvidia, Meta Platforms (NASDAQ: META), and Qualcomm (NASDAQ: QCOM). Nvidia: Not the only company betting big on the metaverse Meta isn't the only company betting on immersive 3D experiences.
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18940.0
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2022-10-12 00:00:00 UTC
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US STOCKS-Wall St futures rise with focus on inflation data, Fed minutes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-futures-rise-with-focus-on-inflation-data-fed-minutes
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures up: Dow 0.56%, S&P 0.66%, Nasdaq 0.82%
Oct 12 (Reuters) - U.S. stock index futures rose on Wednesday, as a dip in Treasury yields helped ease pressure on tech and growth shares, with investors also eyeing key inflation data and minutes from the Federal Reserve's September meeting to gauge the rate-hike path.
The tech-heavy Nasdaq .IXIC and the S&P 500 .SPX have ended in the red for five straight sessions as a recent set of economic data pointed to more policy tightening by the U.S. Federal Reserve, fanning worries of a recession and triggering a spike in yields.
The producer price index, an important inflation gauge, is expected to have risen 8.4% in the 12 months through September, after advancing 8.7% in August, according a Reuters poll. The data is due at 8:30 am ET.
Minutes from the Federal Open Market Committee meeting, which was held last month, will be released later in the day.
Megacap companies Tesla Inc TSLA.O and Apple Inc AAPL.O added 0.8% each in premarket trading.
At 04:28 a.m. ET, Dow e-minis 1YMcv1 were up 165 points, or 0.56%, S&P 500 e-minis EScv1 were up 23.75 points, or 0.66%, and Nasdaq 100 e-minis NQcv1 were up 89.25 points, or 0.82%.
The U.S. is scrambling to tackle unintended consequences of its new export curbs on China's chip industry that could inadvertently harm the semiconductor supply chain, according to a Reuters report.
The Biden administration has allowed at least two non-Chinese chipmakers operating in China to receive restricted goods and services without their suppliers seeking licenses, the report said.
Battered chip shares such as Nvidia Corp NVDA.O, Qualcomm Inc QCOM.O Micron Technology Inc MU.O, Advanced Micro Devices AMD.O and Intel Corp INTC.O rose between 0.8% and 1.1%.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva)
((BansariMayur.Kamdar@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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Megacap companies Tesla Inc TSLA.O and Apple Inc AAPL.O added 0.8% each in premarket trading. The tech-heavy Nasdaq .IXIC and the S&P 500 .SPX have ended in the red for five straight sessions as a recent set of economic data pointed to more policy tightening by the U.S. Federal Reserve, fanning worries of a recession and triggering a spike in yields. The U.S. is scrambling to tackle unintended consequences of its new export curbs on China's chip industry that could inadvertently harm the semiconductor supply chain, according to a Reuters report.
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Megacap companies Tesla Inc TSLA.O and Apple Inc AAPL.O added 0.8% each in premarket trading. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures up: Dow 0.56%, S&P 0.66%, Nasdaq 0.82% Oct 12 (Reuters) - U.S. stock index futures rose on Wednesday, as a dip in Treasury yields helped ease pressure on tech and growth shares, with investors also eyeing key inflation data and minutes from the Federal Reserve's September meeting to gauge the rate-hike path.
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Megacap companies Tesla Inc TSLA.O and Apple Inc AAPL.O added 0.8% each in premarket trading. Futures up: Dow 0.56%, S&P 0.66%, Nasdaq 0.82% Oct 12 (Reuters) - U.S. stock index futures rose on Wednesday, as a dip in Treasury yields helped ease pressure on tech and growth shares, with investors also eyeing key inflation data and minutes from the Federal Reserve's September meeting to gauge the rate-hike path. The tech-heavy Nasdaq .IXIC and the S&P 500 .SPX have ended in the red for five straight sessions as a recent set of economic data pointed to more policy tightening by the U.S. Federal Reserve, fanning worries of a recession and triggering a spike in yields.
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Megacap companies Tesla Inc TSLA.O and Apple Inc AAPL.O added 0.8% each in premarket trading. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures up: Dow 0.56%, S&P 0.66%, Nasdaq 0.82% Oct 12 (Reuters) - U.S. stock index futures rose on Wednesday, as a dip in Treasury yields helped ease pressure on tech and growth shares, with investors also eyeing key inflation data and minutes from the Federal Reserve's September meeting to gauge the rate-hike path.
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18941.0
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2022-10-12 00:00:00 UTC
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If You Invested $10,000 In Apple for Its IPO In 1980, Here's How Much You'd Have Now
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AAPL
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https://www.nasdaq.com/articles/if-you-invested-%2410000-in-apple-for-its-ipo-in-1980-heres-how-much-youd-have-now
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nan
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nan
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There's no sugarcoating the fact that it's been a dreadful year for professional and everyday investors. Since hitting their respective all-time highs between mid-November and the first week of January, the timeless Dow Jones Industrial Average, widely followed S&P 500, and growth-driven Nasdaq Composite have plunged by as much as 22%, 26%, and 34%. This means all three major U.S. stock indexes are firmly in a bear market.
But when there's trouble on Wall Street, there's opportunity. Every double-digit percentage decline in the major indexes has eventually been cleared away by a bull market. The not-so-secret recipe needed to recoup these losses is time.
However, time can work wonders for individual stocks as well. Just ask the shareholders of the largest publicly traded company, Apple (NASDAQ: AAPL).
Image source: Apple.
$10,000 invested in Apple on its debut day would have made you rich
On Dec. 12, 1980, "some kind of fruit company," as Forrest Gump referred to it in the movie Forrest Gump, went public at $22/share. The day Apple went public, the benchmark S&P 500 closed at 129.23. Not including dividends paid, the S&P 500 has returned a cool 2,716% in this nearly 42-year stretch, or a little over 8% on an annualized basis. Not too shabby -- but a far cry from Apple's performance over the same stretch.
Since Apple's initial public offering (IPO), the company has split its shares on five occasions:
A 2-for-1 split on June 16, 1987
A 2-for-1 split on June 21, 2000
A 2-for-1 split on Feb. 28, 2005
A 7-for-1 split on June 9, 2014
A 4-for-1 split on Aug. 28, 2020
All told, Apple's IPO price of $22/share has been whittled down to a microscopic $0.09821/share following five stock splits. But what's really eye-popping is how much its original investors have made, or would have made if they held onto their shares.
If you had the luck, wherewithal, and stomach to invest $10,000 into Apple at its IPO price, you would have been able to purchase 454 shares, excluding fractional shares and commission fees. Factoring in the company's five stock splits, these 454 shares would have increased to 101,696 shares, as of today.
With Apple closing last week at $140.09, it means an initial $10,000 investment nearly 42 years ago would now be worth $14,246,593. Keep in mind that this figure doesn't take into account dividends paid. On a nominal basis, Apple's shares have gained 142,537% since their IPO, or about 18.8% on an annualized basis.
Here's how Apple made its original investors millionaires
Let's be perfectly clear: A 142,537% gain doesn't happen by accident. Apple's gains are well-deserved and come on the heels of multiple competitive advantages and ongoing catalysts.
To begin with, Apple is the most valuable brand in the world, according to a report by Kantar BrandZ. Apple's branding and products are easily recognizable, and the company's customer base is exceptionally loyal. The lines that form outside Apple's stores almost every time a new product is launched is evidence of its draw with consumers.
But even more important than having a well-recognized brand is Apple's innovation. There's no question that the iPhone is the single most important innovation to date for the company. The iPhone has allowed Apple to gobble up approximately half of all U.S. smartphone share. That's an enormous figure, especially considering that people and businesses will be upgrading their devices for years to take advantage of the 5G revolution and faster download speeds.
Interestingly, though, Apple's future isn't as reliant on physical products (iPhone, iPad, and Mac) as you might think. While not abandoning the products that endeared the company to consumers, CEO Tim Cook is overseeing an ongoing operating transformation that's focused on subscription services. Subscription revenue has the opportunity to increase Apple's organic growth rate, further boost customer loyalty, and improve the company's operating margins over time.
Furthermore, as subscription revenue grows into a larger percentage of total sales, the negative sales effect from iPhone product replacement cycles should be diminished.
Apple's success can also be attributed to a robust capital return program, which really kicked into high gear 10 years ago. In 2012, Apple began paying a regular quarterly dividend. Even though the company is yielding just 0.66%, it's doling out close to $14.8 billion each year in payouts. That's one of the largest nominal-dollar dividend payouts in the world.
Apple's board of directors also began approving hefty share buybacks in 2013. Over a nearly nine-year stretch, the company has repurchased in the neighborhood of $520 billion worth of its common stock.
Image source: Getty Images.
Can Apple withstand bear market headwinds?
Although Apple has been nothing short of spectacular for long-term investors, its performance in 2022 leaves a lot to be desired. While it is outperforming the benchmark S&P 500, shares are still off by an unsightly 21%.
Perhaps the biggest concern for Apple is that it's a cyclical company trying to row against the current. We've seen U.S. gross domestic product decline in back-to-back quarters, and historically high inflation is weighing on the spending power of low earners. Given that Apple still generates the bulk of its revenue from retail sales, the tea leaves would suggest it'll run into the same headwinds as other retailers.
For example, Apple began advancing plans in the first half of the year to expand manufacturing capacity for its next-generation iPhone. At the time, the company believed strong demand for its 5G-capable iPhone would necessitate the added production. However, Apple did a 180 and backed away from a production increase last month after this surge in iPhone demand failed to materialize. It's a somber realization that cyclical stocks are cyclical -- even the mighty Apple.
The other concern for Apple would be its valuation. With interest rates at or near historic lows for much of the past 14 years, Wall Street and investors haven't been too critical of traditional valuation metrics. But with rates now soaring and Apple's growth rate likely slowing to around 5% to 7%, a forward price-to-earnings ratio of 22 isn't as cheap you might think -- especially when the risk of reduced guidance appears to be high.
But in spite of these bear market headwinds, Apple's future is bright. The company is swimming in cash, and it generated more than $118 billion in operating cash flow over the trailing-12-month period. It's survived economic downturns before and can do so again.
While I admit to not being a fan of Apple at its current valuation given its slowing growth potential over the coming year or two, there's no reason to believe it won't generate a positive total return for its shareholders over the next five, 10, or 20 years. Though a 142,000% return over the next four decades is almost certainly out of the question, Apple should be in good hands as long as Tim Cook continues emphasizing subscription services, and the company rewards its shareholders with a healthy dose of dividends and buybacks.
10 stocks we like better than Apple
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Sean Williams 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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Just ask the shareholders of the largest publicly traded company, Apple (NASDAQ: AAPL). Since hitting their respective all-time highs between mid-November and the first week of January, the timeless Dow Jones Industrial Average, widely followed S&P 500, and growth-driven Nasdaq Composite have plunged by as much as 22%, 26%, and 34%. Subscription revenue has the opportunity to increase Apple's organic growth rate, further boost customer loyalty, and improve the company's operating margins over time.
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Just ask the shareholders of the largest publicly traded company, Apple (NASDAQ: AAPL). Since Apple's initial public offering (IPO), the company has split its shares on five occasions: A 2-for-1 split on June 16, 1987 A 2-for-1 split on June 21, 2000 A 2-for-1 split on Feb. 28, 2005 A 7-for-1 split on June 9, 2014 A 4-for-1 split on Aug. 28, 2020 All told, Apple's IPO price of $22/share has been whittled down to a microscopic $0.09821/share following five stock splits. But in spite of these bear market headwinds, Apple's future is bright.
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Just ask the shareholders of the largest publicly traded company, Apple (NASDAQ: AAPL). Since Apple's initial public offering (IPO), the company has split its shares on five occasions: A 2-for-1 split on June 16, 1987 A 2-for-1 split on June 21, 2000 A 2-for-1 split on Feb. 28, 2005 A 7-for-1 split on June 9, 2014 A 4-for-1 split on Aug. 28, 2020 All told, Apple's IPO price of $22/share has been whittled down to a microscopic $0.09821/share following five stock splits. While I admit to not being a fan of Apple at its current valuation given its slowing growth potential over the coming year or two, there's no reason to believe it won't generate a positive total return for its shareholders over the next five, 10, or 20 years.
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Just ask the shareholders of the largest publicly traded company, Apple (NASDAQ: AAPL). Factoring in the company's five stock splits, these 454 shares would have increased to 101,696 shares, as of today. In 2012, Apple began paying a regular quarterly dividend.
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18942.0
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2022-10-12 00:00:00 UTC
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Apple, Samsung to upgrade phone software in India for 5G roll out by Dec
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AAPL
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https://www.nasdaq.com/articles/apple-samsung-to-upgrade-phone-software-in-india-for-5g-roll-out-by-dec
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nan
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nan
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Adds details, background, Samsung and Google statement
NEW DELHI, Oct 12 (Reuters) - Apple Inc AAPL.O and Samsung Electronics 005930.KS will upgrade software for their 5G-enabled phones in India by December, the companies said on Wednesday, as Indian authorities press mobile phone manufacturers to adopt the high-speed network.
Apple said it would push software upgrades to recent models, including the iPhone 14, 13, 12 and iPhone SE, which, industry sources say, do not yet support the network.
"We are working with our carrier partners in India to bring the best 5G experience to iPhone users as soon as network validation and testing for quality and performance is completed," Apple said in a statement.
"5G will be enabled via a software update and will start rolling out to iPhone users in December."
Indian Prime Minister Narendra Modi launched 5G services on Oct. 1 amid much fanfare, with leading telecom operator Reliance Jio saying it would make the service available in four cities, while rival Bharti Airtel BRTI.NS targeted eight cities.
A Samsung India spokesperson said the company would roll out updates across all its 5G devices by mid-November.
Ministry of electronics and IT officials held a meeting on Wednesday dedicated to 5G adoption, which executives from Apple, Samsung, Vivo and Xiaomi, and telecom operators Reliance, Airtel and Vodafone Idea VODA.NS attended.
The agenda includes "prioritising" the release of software upgrades for supporting the high-speed network, the notice for the closed-door meeting stated.
While telecom players and smartphone makers have been holding discussions with each other, ironing out compatibility issues between the specific 5G technology of telecom companies in India and phone software is taking time, one of the industry sources said.
A Google spokesperson said on Wednesday: "Pixel 7, 7 Pro and Pixel 6a are 5G capable devices. We are actively working with the Indian carriers to enable functionality at the earliest."
(Reporting by Munsif Vengattil in New Delhi, Writing by Shivam Patel; Editing by Savio D'Souza and Tomasz Janowski)
((Shivam.Patel@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details, background, Samsung and Google statement NEW DELHI, Oct 12 (Reuters) - Apple Inc AAPL.O and Samsung Electronics 005930.KS will upgrade software for their 5G-enabled phones in India by December, the companies said on Wednesday, as Indian authorities press mobile phone manufacturers to adopt the high-speed network. "We are working with our carrier partners in India to bring the best 5G experience to iPhone users as soon as network validation and testing for quality and performance is completed," Apple said in a statement. Ministry of electronics and IT officials held a meeting on Wednesday dedicated to 5G adoption, which executives from Apple, Samsung, Vivo and Xiaomi, and telecom operators Reliance, Airtel and Vodafone Idea VODA.NS attended.
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Adds details, background, Samsung and Google statement NEW DELHI, Oct 12 (Reuters) - Apple Inc AAPL.O and Samsung Electronics 005930.KS will upgrade software for their 5G-enabled phones in India by December, the companies said on Wednesday, as Indian authorities press mobile phone manufacturers to adopt the high-speed network. Ministry of electronics and IT officials held a meeting on Wednesday dedicated to 5G adoption, which executives from Apple, Samsung, Vivo and Xiaomi, and telecom operators Reliance, Airtel and Vodafone Idea VODA.NS attended. The agenda includes "prioritising" the release of software upgrades for supporting the high-speed network, the notice for the closed-door meeting stated.
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Adds details, background, Samsung and Google statement NEW DELHI, Oct 12 (Reuters) - Apple Inc AAPL.O and Samsung Electronics 005930.KS will upgrade software for their 5G-enabled phones in India by December, the companies said on Wednesday, as Indian authorities press mobile phone manufacturers to adopt the high-speed network. Apple said it would push software upgrades to recent models, including the iPhone 14, 13, 12 and iPhone SE, which, industry sources say, do not yet support the network. While telecom players and smartphone makers have been holding discussions with each other, ironing out compatibility issues between the specific 5G technology of telecom companies in India and phone software is taking time, one of the industry sources said.
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Adds details, background, Samsung and Google statement NEW DELHI, Oct 12 (Reuters) - Apple Inc AAPL.O and Samsung Electronics 005930.KS will upgrade software for their 5G-enabled phones in India by December, the companies said on Wednesday, as Indian authorities press mobile phone manufacturers to adopt the high-speed network. Apple said it would push software upgrades to recent models, including the iPhone 14, 13, 12 and iPhone SE, which, industry sources say, do not yet support the network. "5G will be enabled via a software update and will start rolling out to iPhone users in December."
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18943.0
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2022-10-12 00:00:00 UTC
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5 Stocks to Gain From the Flourishing Metaverse Space
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AAPL
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https://www.nasdaq.com/articles/5-stocks-to-gain-from-the-flourishing-metaverse-space
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nan
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nan
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The pandemic-led social transformation has established digitization as the new normal. The outbreak of coronavirus quickly changed the lifestyle and lookout of people. People who were not entirely used to digital platforms for doing office work (working from home), ordering food and other daily needs, transferring money and making payments are now fully tuned to these activities.
In 2020, UNCTAD reported "The global crisis brought on by the coronavirus pandemic has pushed us further into a digital world, and changes in behavior are likely to have lasting effects when the economy starts to pick up. The future will be much more digital than the past. This is going to provide a major impetus for the development of artificial intelligence, and cyberspace activities.”
Metaverse – The Latest Advent
The latest advent of the digitization space is the metaverse. In a nutshell, metaverse means a virtual world that is interactive and collaborative. The digital space is powered by the use of virtual and augmented reality.
According to a Bloomberg estimate, the market opportunity for the metaverse is expected to reach $800 billion by 2024 from $500 billion in 2020. The primary market for online game makers and gaming hardware may top $400 billion in 2024 while the remaining business will come from live entertainment and social media. Gaming, AR and VR create a $413 billion primary market for the metaverse.
According to Verified Market Research, citing a PRNewswire article, the metaverse market size, in reality, is estimated to reach $824.53 billion by 2030 from $27.21 billion in 2020. The market is expected to witness a CAGR of 39.1% from 2022 to 2030.
Stocks to Watch
We have narrowed our search to five stocks that have the potential to become major players in the metaverse space.
NVIDIA Corp. NVDA is benefiting from strong growth in GeForce desktop and notebook graphics processing units (GPU), which is boosting gaming revenues. NVDA’s state-of-the-art GPUs are likely to play an important role in metaverse development. NVIDIA’s acquisition of Mellanox is a key catalyst in this regard.
The NVIDIA Omniverse Enterprise platform is an end-to-end collaboration and simulation platform that fundamentally transforms complex design workflows in 3D space. This virtual content creation platform enables designers, creators and engineers to easily share their material in a digital space.
Zacks Rank #3 (Hold) NVDA has an estimated revenue growth rate of 2% for the current year (ending January 2023) and 14.4% for next year. The Zacks Consensus Estimate for the current year and next year earnings has improved 1.2% and 0.4%, respectively, in the past 30 days.
Alphabet Inc. GOOGL has been growing rapidly in the booming cloud-computing market. GOOGL’s cloud offerings include Google Cloud Platform and Google Workspace, which are gaining momentum in the booming cloud computing market.
Further, Alphabet’s growing investments in infrastructure, security, data management, analytics and AI remain major developments in the metaverse space. GOOGL’s growing efforts toward strengthening its presence in the booming wearable space remain noteworthy.
Zacks Rank #3 Alphabet has an estimated revenue growth rate of 11.6% for the current year and 10% for the next year. The Zacks Consensus Estimate for the current year and next year’s earnings have improved 0.2% and 0.2%, respectively in the past 30 days.
Apple Inc. AAPL is encouraging developers to use artificial intelligence and machine learning in their apps. AAPL’s focus on autonomous vehicles and augmented reality/virtual reality technologies presents a growth opportunity for the long haul.
To ramp up its efforts, Apple has acquired several smaller firms with expertise in AR hardware, 3D gaming and VR software. These include SensoMotoric, Flyby Media, Emotient, TupleJump, Turi, Metaio, PrimeSense and Lattice Data Inc. In addition, AAPL’s ARKit is helping third-party developers to work on creating AR experiences for its iOS platform.
Zacks Rank #3 Apple has an estimated revenue and earnings per share growth rate of 4.5% and 6.2%, respectively, for the current year (ending September 2023). AAPL came up with earnings beat in each of the last four reported quarters.
Snap Inc. SNAP is continuing to focus on developing AR hardware through its Spectacle smart glasses. The adoption of the company’s AR lenses has been strong, particularly post the launch of Lens Studio 2. At the end of 2020, Snap launched its first-ever 5G-enabled Landmarker Lens (a new tool for overlaying AR on the world) in partnership with Verizon. The Lens uses SNAP’s augmented reality technology and Verizon’s 5G Ultra-Wideband capabilities.
The solid adoption of products like Scan and AR Bar is driving the usage of AR-based lenses, providing significant growth opportunities to SNAP. Moreover, the launch of Local Lenses, which enables shared and persistent AR experiences in much larger areas around the world, is expected to aid user engagement.
Snap added Cartoon Lens powered by real-time machine learning to its portfolio. Moreover, the launch of music Lenses in Lens Explorer and Dynamic Lenses, which allow developers to bring real-time information from their app into Snapchat Lenses, is a key catalyst.
SNAP has an estimated revenue growth rate of 13.8% for the current year and 15.7% for next year. The Zacks Consensus Estimate for current-year and next-year earnings has improved 66.7% and 20%, respectively in the past 30 days. Snap carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Autodesk Inc.‘s ADSK business transition from perpetual licenses to cloud-based subscription services is expected to benefit it in the long run. ADSK is well-positioned to capitalize on the rapid adoption of computer-aided designing and manufacturing through its comprehensive product portfolio.
Higher demand for Autodesk’s cloud-based products (BIM 360 cloud platform, Shotgun and Fusion Lifecycle), mobile products (AutoCAD 360) and design suites will drive top-line growth. ADSK is also benefiting from its investment in digital infrastructure, which includes its e-store.
Zacks Rank #3 Autodesk has an estimated revenue and earnings per share growth rate of 14.3% and 30.2%, respectively, for the current year (ending January 2023). The Zacks Consensus Estimate for the current year has improved 1.5% in the past 60 days.
The chart below shows the price performance of the five above-mentioned stocks year to date.
Image Source: Zacks Investment Research
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
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Autodesk, Inc. (ADSK): 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
The views and 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 encouraging developers to use artificial intelligence and machine learning in their apps. AAPL’s focus on autonomous vehicles and augmented reality/virtual reality technologies presents a growth opportunity for the long haul. In addition, AAPL’s ARKit is helping third-party developers to work on creating AR experiences for its iOS platform.
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Apple Inc. AAPL is encouraging developers to use artificial intelligence and machine learning in their apps. AAPL’s focus on autonomous vehicles and augmented reality/virtual reality technologies presents a growth opportunity for the long haul. In addition, AAPL’s ARKit is helping third-party developers to work on creating AR experiences for its iOS platform.
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Apple Inc. AAPL is encouraging developers to use artificial intelligence and machine learning in their apps. AAPL’s focus on autonomous vehicles and augmented reality/virtual reality technologies presents a growth opportunity for the long haul. In addition, AAPL’s ARKit is helping third-party developers to work on creating AR experiences for its iOS platform.
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Apple Inc. (AAPL): Free Stock Analysis Report Apple Inc. AAPL is encouraging developers to use artificial intelligence and machine learning in their apps. AAPL’s focus on autonomous vehicles and augmented reality/virtual reality technologies presents a growth opportunity for the long haul.
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18944.0
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2022-10-11 00:00:00 UTC
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What To Expect From Netflix's Q3 Results?
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AAPL
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https://www.nasdaq.com/articles/what-to-expect-from-netflixs-q3-results
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nan
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nan
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Netflix (NASDAQ:NFLX) is slated to report its Q3 2022 results on October 18th. We estimate that Netflix’s revenue will come in at about $7.9 billion for the quarter, marginally ahead of the consensus estimate of about $7.84 billion. This would mark year-over-year growth of about 5.5%, although it would be down from close to 16% growth in the same quarter last year. We estimate that earnings will stand at close to $2.15 per share, compared to a consensus of $2.13 per share. So what are some of the trends that are likely to drive Netflix results? See our interactive dashboard analysis on Netflix Earnings Preview for more details on how Netflix’s revenues and earnings are likely to trend for the quarter.
Netflix has guided that it could add about 1 million subscribers over the quarter, compared to a loss of 970,000 subscribers in the previous quarter, likely driven by an improving content slate that included the second batch of episodes of Stranger Things season 4. However, this would still mark a decline from the 4.4 million subscribers the company added in Q3 2021. There are multiple trends impacting Netflix, including the easing of the Covid-19-related tailwinds and mounting competition with the likes of Apple, Disney, and Paramount gaining much traction with their respective streaming products. It’s also possible that high levels of inflation are impacting subscriber growth, particularly in lower-income markets, where rising prices could be hurting discretionary spending. Foreign currency headwinds are likely to weigh on the company’s earnings, considering that Netflix derives about 60% of its revenues from overseas with the dollar rising considerably over the last year (the dollar index is up 18% over the last 12 months). Netflix margins could also see some pressure due to slower revenue growth and foreign exchange pressures. Over Q2, operating margins came in at 19.8%, down from about 25% in the year-ago quarter.
Now, despite the slowdown, we think Netflix stock remains undervalued. The stock has declined by about 62% year-to-date and trades at around levels last seen in about 2017. However, Netflix has made considerable progress since then. For example, the company has more than doubled its subscriber base since 2017, despite hiking prices four times over the period, with its churn rates remaining the lowest in the streaming business. The stock now trades at just about 20x projected consensus 2023 earnings down from levels of over 90x prior to the pandemic. Netflix is also slated to launch its new ad-supported offering in the coming months, and we believe that this could help it revive subscriber growth and improve its monetization. We remain positive on Netflix stock, with a price estimate of $317 per share, which is 40% ahead of the current market price. See our analysis Netflix Valuation: Expensive or Cheap for more details on what’s driving our price estimate for Netflix. Also, check out on the analysis of Netflix Revenue for more details on how Netflix revenues are trending.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Oct 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
NFLX Return -5% -63% 82%
S&P 500 Return 2% -24% 63%
Trefis Multi-Strategy Portfolio 3% -24% 200%
[1] Month-to-date and year-to-date as of 10/9/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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There are multiple trends impacting Netflix, including the easing of the Covid-19-related tailwinds and mounting competition with the likes of Apple, Disney, and Paramount gaining much traction with their respective streaming products. It’s also possible that high levels of inflation are impacting subscriber growth, particularly in lower-income markets, where rising prices could be hurting discretionary spending. For example, the company has more than doubled its subscriber base since 2017, despite hiking prices four times over the period, with its churn rates remaining the lowest in the streaming business.
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There are multiple trends impacting Netflix, including the easing of the Covid-19-related tailwinds and mounting competition with the likes of Apple, Disney, and Paramount gaining much traction with their respective streaming products. We remain positive on Netflix stock, with a price estimate of $317 per share, which is 40% ahead of the current market price. Total [2] NFLX Return -5% -63% 82% S&P 500 Return 2% -24% 63% Trefis Multi-Strategy Portfolio 3% -24% 200% [1] Month-to-date and year-to-date as of 10/9/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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See our interactive dashboard analysis on Netflix Earnings Preview for more details on how Netflix’s revenues and earnings are likely to trend for the quarter. Also, check out on the analysis of Netflix Revenue for more details on how Netflix revenues are trending. Total [2] NFLX Return -5% -63% 82% S&P 500 Return 2% -24% 63% Trefis Multi-Strategy Portfolio 3% -24% 200% [1] Month-to-date and year-to-date as of 10/9/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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See our interactive dashboard analysis on Netflix Earnings Preview for more details on how Netflix’s revenues and earnings are likely to trend for the quarter. We remain positive on Netflix stock, with a price estimate of $317 per share, which is 40% ahead of the current market price. Total [2] NFLX Return -5% -63% 82% S&P 500 Return 2% -24% 63% Trefis Multi-Strategy Portfolio 3% -24% 200% [1] Month-to-date and year-to-date as of 10/9/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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18945.0
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2022-10-11 00:00:00 UTC
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US STOCKS-Wall St falls on worries of lower third-quarter corporate profit; Amgen jumps
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-falls-on-worries-of-lower-third-quarter-corporate-profit-amgen-jumps
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
IMF expects U.S. growth this year to be a meager 1.6%
Megacap growth companies fall as yields rise
CBOE Volatility index hovers near two-week highs
Amgen jumps on report of Morgan Stanley upgrade
Indexes down: Dow 0.20%, S&P 0.69%, Nasdaq 0.88%
Updates prices to open
By Shreyashi Sanyal
Oct 11 (Reuters) - U.S. stocks fell on Tuesday in the run-up to third-quarter results from companies as profit expectations drop amid rising interest rates and stubborn inflation, while gains in drugmaker Amgen limited declines on the Dow.
Analysts now expect profit for S&P 500 companies to have risen 4.1% in the third quarter from a year ago, compared with an 11.1% increase expected at the start of July, according to Refinitiv data.
Big U.S. banks are set to report quarterly results on Friday that may offer insight into the health of the U.S. economy.
With recent data on labor market and inflation suggesting more big rate hikes by the U.S. Federal Reserve, Wall Street's main indexes have been on a loss-making streak in the past few sessions on fears of the economy slipping into a recession.
The International Monetary Fund cut its global growth forecast for 2023 and sees U.S. growth this year to be a meager 1.6%, a 0.7 percentage point downgrade from July, reflecting an unexpected second-quarter GDP contraction.
"If we continue to get inflation data that is not showing any signs of slowing, the Fed's not going to lay off, there's no Fed pivot coming," said Dennis Dick, founder and market structure analyst at Triple D Trading Inc.
Money markets are now pricing in a 92% chance of another 75-basis-point hike at the Fed's meeting in November. FEDWATCH.
Amid rising expectation of another big jump in borrowing costs, the yield on the benchmark 10-year U.S. Treasury note US10YT=RR hit a day's high of 4.006%, while growth stocks recorded losses. US/
Microsoft Corp MSFT.O, Twitter Inc TWTR.O, Amazon.com AMZN.O, Apple Inc AAPL.O, and Tesla Inc TSLA.O were down between 1% and 3.5%.
A consumer prices report due on Thursday will offer more clues on inflation, with focus also on minutes from the Fed's September meeting expected later in the week.
"Right now the market wants to see data, show me the numbers, show me we're getting inflation down. Until then, this market is probably stuck in this whole death by a 1,000 cuts scenario," Dick said.
The CBOE Volatility index .VIX, also known as Wall Street's fear gauge, rose to 33.57 points, up for a fourth straight session and inching closer to near two-weeks high.
At 9:40 a.m. ET, the Dow Jones Industrial Average .DJI was down 57.94 points, or 0.20%, at 29,144.94, the S&P 500 .SPX was down 24.75 points, or 0.69%, at 3,587.64 and the Nasdaq Composite .IXIC was down 92.97 points, or 0.88%, at 10,449.13.
Out of the 11 major S&P 500 sectors indexes, all but the defensive consumer staples .SPLRCS fell.
Helping stem losses on the blue-chip Dow, Amgen Inc AMGN.O shares jumped 4.9% after a report said Morgan Stanley upgraded the drugmaker's stock to "overweight" from "equal weight".
Declining issues outnumbered advancers for a 3.28-to-1 ratio on the NYSE and for a 2.36-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week high and 71 new lows, while the Nasdaq recorded 10 new highs and 250 new lows.
(Reporting by Ankika Biswas and Shreyashi Sanyal; Additional reporting by Devik Jain; 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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US/ Microsoft Corp MSFT.O, Twitter Inc TWTR.O, Amazon.com AMZN.O, Apple Inc AAPL.O, and Tesla Inc TSLA.O were down between 1% and 3.5%. IMF expects U.S. growth this year to be a meager 1.6% Megacap growth companies fall as yields rise CBOE Volatility index hovers near two-week highs Amgen jumps on report of Morgan Stanley upgrade Indexes down: Dow 0.20%, S&P 0.69%, Nasdaq 0.88% Updates prices to open By Shreyashi Sanyal Oct 11 (Reuters) - U.S. stocks fell on Tuesday in the run-up to third-quarter results from companies as profit expectations drop amid rising interest rates and stubborn inflation, while gains in drugmaker Amgen limited declines on the Dow. With recent data on labor market and inflation suggesting more big rate hikes by the U.S. Federal Reserve, Wall Street's main indexes have been on a loss-making streak in the past few sessions on fears of the economy slipping into a recession.
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US/ Microsoft Corp MSFT.O, Twitter Inc TWTR.O, Amazon.com AMZN.O, Apple Inc AAPL.O, and Tesla Inc TSLA.O were down between 1% and 3.5%. IMF expects U.S. growth this year to be a meager 1.6% Megacap growth companies fall as yields rise CBOE Volatility index hovers near two-week highs Amgen jumps on report of Morgan Stanley upgrade Indexes down: Dow 0.20%, S&P 0.69%, Nasdaq 0.88% Updates prices to open By Shreyashi Sanyal Oct 11 (Reuters) - U.S. stocks fell on Tuesday in the run-up to third-quarter results from companies as profit expectations drop amid rising interest rates and stubborn inflation, while gains in drugmaker Amgen limited declines on the Dow. The CBOE Volatility index .VIX, also known as Wall Street's fear gauge, rose to 33.57 points, up for a fourth straight session and inching closer to near two-weeks high.
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US/ Microsoft Corp MSFT.O, Twitter Inc TWTR.O, Amazon.com AMZN.O, Apple Inc AAPL.O, and Tesla Inc TSLA.O were down between 1% and 3.5%. IMF expects U.S. growth this year to be a meager 1.6% Megacap growth companies fall as yields rise CBOE Volatility index hovers near two-week highs Amgen jumps on report of Morgan Stanley upgrade Indexes down: Dow 0.20%, S&P 0.69%, Nasdaq 0.88% Updates prices to open By Shreyashi Sanyal Oct 11 (Reuters) - U.S. stocks fell on Tuesday in the run-up to third-quarter results from companies as profit expectations drop amid rising interest rates and stubborn inflation, while gains in drugmaker Amgen limited declines on the Dow. With recent data on labor market and inflation suggesting more big rate hikes by the U.S. Federal Reserve, Wall Street's main indexes have been on a loss-making streak in the past few sessions on fears of the economy slipping into a recession.
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US/ Microsoft Corp MSFT.O, Twitter Inc TWTR.O, Amazon.com AMZN.O, Apple Inc AAPL.O, and Tesla Inc TSLA.O were down between 1% and 3.5%. IMF expects U.S. growth this year to be a meager 1.6% Megacap growth companies fall as yields rise CBOE Volatility index hovers near two-week highs Amgen jumps on report of Morgan Stanley upgrade Indexes down: Dow 0.20%, S&P 0.69%, Nasdaq 0.88% Updates prices to open By Shreyashi Sanyal Oct 11 (Reuters) - U.S. stocks fell on Tuesday in the run-up to third-quarter results from companies as profit expectations drop amid rising interest rates and stubborn inflation, while gains in drugmaker Amgen limited declines on the Dow. "If we continue to get inflation data that is not showing any signs of slowing, the Fed's not going to lay off, there's no Fed pivot coming," said Dennis Dick, founder and market structure analyst at Triple D Trading Inc. Money markets are now pricing in a 92% chance of another 75-basis-point hike at the Fed's meeting in November.
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18946.0
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2022-10-11 00:00:00 UTC
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Apple (AAPL) Dips More Than Broader Markets: What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-dips-more-than-broader-markets%3A-what-you-should-know-3
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nan
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nan
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In the latest trading session, Apple (AAPL) closed at $138.98, marking a -1.03% move from the previous day. This change lagged the S&P 500's daily loss of 0.65%. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq gained 0.07%.
Heading into today, shares of the maker of iPhones, iPads and other products had lost 14.08% over the past month, lagging the Computer and Technology sector's loss of 13.29% and the S&P 500's loss of 11.07% in that time.
Wall Street will be looking for positivity from Apple as it approaches its next earnings report date. This is expected to be October 27, 2022. In that report, analysts expect Apple to post earnings of $1.25 per share. This would mark year-over-year growth of 0.81%. Our most recent consensus estimate is calling for quarterly revenue of $88.06 billion, up 5.64% from the year-ago period.
Any recent changes to analyst estimates for Apple should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.26% lower. Apple is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Apple is holding a Forward P/E ratio of 21.66. This represents a premium compared to its industry's average Forward P/E of 6.12.
Also, we should mention that AAPL has a PEG ratio of 1.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Computer - Mini computers stocks are, on average, holding a PEG ratio of 1.99 based on yesterday's closing prices.
The Computer - Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 242, which puts it in the bottom 4% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the latest trading session, Apple (AAPL) closed at $138.98, marking a -1.03% move from the previous day. Also, we should mention that AAPL has a PEG ratio of 1.73. To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com.
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In the latest trading session, Apple (AAPL) closed at $138.98, marking a -1.03% move from the previous day. Also, we should mention that AAPL has a PEG ratio of 1.73. To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com.
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In the latest trading session, Apple (AAPL) closed at $138.98, marking a -1.03% move from the previous day. Also, we should mention that AAPL has a PEG ratio of 1.73. To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com.
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Apple Inc. (AAPL): Free Stock Analysis Report In the latest trading session, Apple (AAPL) closed at $138.98, marking a -1.03% move from the previous day. Also, we should mention that AAPL has a PEG ratio of 1.73.
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18947.0
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2022-10-11 00:00:00 UTC
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How Micron Sidestepped the Tech Wreck on Tuesday and Gained 4.5%
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AAPL
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https://www.nasdaq.com/articles/how-micron-sidestepped-the-tech-wreck-on-tuesday-and-gained-4.5
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nan
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nan
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What happened
Shares of Micron Technology (NASDAQ: MU) were up 4.5% on Tuesday even as the Nasdaq Composite was down 1.1% at the same time and the iShares Semiconductor ETF (NASDAQ: SOXX) was down an even steeper 2.8%.
Investors seem to be buying Micron and selling other semiconductor stocks as they try to sort out the winners and losers in last Friday's new rules from the administration, which aims to clamp down on sales of advanced semiconductors and semiconductor equipment to China.
So what
Although there were some restrictions on chip and equipment sales to China before, last Friday's new rules brought with them the most sweeping restrictions yet. Now, every semiconductor equipment sale to foundries within China will be restricted, with a presumption of denial unless a special license is given by the administration.
Most notably for Micron, the new restrictions don't just harm equipment sales for advanced logic and artificial intelligence chips, as we saw with the August restrictions on Nvidia (NASDAQ: NVDA), but they now extend to Chinese advanced memory companies. The most notable of the upstart China memory names is Yangtze Memory Technologies Co. (YMTC), which is currently producing advanced NAND flash.
Not only that, but even sales of equipment to non-Chinese companies with fabs (microchip fabrication plants) in China, including South Korean memory company and Micron competitor SK Hynix, will have equipment sales restricted until a license can be obtained.
I would bet that sales of equipment to non-Chinese fabs within China will probably get a license eventually, but since Micron doesn't have any leading-edge memory fabs in China, it stands to benefit as competitors are potentially cut off from leading-edge equipment.
Notably, it has been rumored that Apple (NASDAQ: AAPL) recently sought to procure advanced memory chips from YMTC, most likely for iPhone and/or Mac sales in China; however, that move came under criticism from American legislators earlier this summer.
Now what
It's unclear exactly how much of its competition is shut out from cutting-edge, American-made semi-cap equipment, but Micron investors will be glad to take today's win. It has been a rough year for Micron investors, as a series of dismal recent earnings reports have sent the stock down 42% on the year.
On the bright side, that's actually a bit better than some other high-profile names in the semiconductor space. With this summer's passage of the CHIPS Act, and with Micron being the only U.S. producer of dynamic random-access memory (DRAM) chips and one of two U.S. producers of NAND flash, these new rules of the road could benefit Micron -- potentially a lot -- going forward.
We are in a pretty nasty memory downturn right now as evidenced by the massive drop in revenue and earnings Micron forecast on its Sept. 29 earnings release; however, once the next upcycle starts, Micron will likely be in a stronger competitive position.
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Billy Duberstein has positions in Apple and Micron Technology and has the following options: short January 2023 $160 calls on Micron Technology and short January 2023 $210 calls on Apple. The Motley Fool has positions in and recommends Apple 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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Notably, it has been rumored that Apple (NASDAQ: AAPL) recently sought to procure advanced memory chips from YMTC, most likely for iPhone and/or Mac sales in China; however, that move came under criticism from American legislators earlier this summer. Now, every semiconductor equipment sale to foundries within China will be restricted, with a presumption of denial unless a special license is given by the administration. Now what It's unclear exactly how much of its competition is shut out from cutting-edge, American-made semi-cap equipment, but Micron investors will be glad to take today's win.
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Notably, it has been rumored that Apple (NASDAQ: AAPL) recently sought to procure advanced memory chips from YMTC, most likely for iPhone and/or Mac sales in China; however, that move came under criticism from American legislators earlier this summer. The most notable of the upstart China memory names is Yangtze Memory Technologies Co. (YMTC), which is currently producing advanced NAND flash. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Billy Duberstein has positions in Apple and Micron Technology and has the following options: short January 2023 $160 calls on Micron Technology and short January 2023 $210 calls on Apple.
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Notably, it has been rumored that Apple (NASDAQ: AAPL) recently sought to procure advanced memory chips from YMTC, most likely for iPhone and/or Mac sales in China; however, that move came under criticism from American legislators earlier this summer. Investors seem to be buying Micron and selling other semiconductor stocks as they try to sort out the winners and losers in last Friday's new rules from the administration, which aims to clamp down on sales of advanced semiconductors and semiconductor equipment to China. Most notably for Micron, the new restrictions don't just harm equipment sales for advanced logic and artificial intelligence chips, as we saw with the August restrictions on Nvidia (NASDAQ: NVDA), but they now extend to Chinese advanced memory companies.
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Notably, it has been rumored that Apple (NASDAQ: AAPL) recently sought to procure advanced memory chips from YMTC, most likely for iPhone and/or Mac sales in China; however, that move came under criticism from American legislators earlier this summer. Most notably for Micron, the new restrictions don't just harm equipment sales for advanced logic and artificial intelligence chips, as we saw with the August restrictions on Nvidia (NASDAQ: NVDA), but they now extend to Chinese advanced memory companies. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Micron Technology wasn't one of them!
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18948.0
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2022-10-11 00:00:00 UTC
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EU regulators group against big tech paying for telco infrastructure
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AAPL
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https://www.nasdaq.com/articles/eu-regulators-group-against-big-tech-paying-for-telco-infrastructure
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nan
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nan
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Updates with details, background, telecoms industry reaction
AMSTERDAM, Oct 11 (Reuters) - A group of European telecom regulators does not support the idea of having big tech firms such as Google and Netflix paying for telecommunications infrastructure, it said in initial findings published on Tuesday.
The findings by the Body of European Regulators for Electronic Communications (BEREC) come as the European Commission is debating whether internet platforms should be obliged to fund digital infrastructure such as 5G telecoms networks, given they make heavy use of it.
"BEREC has found no evidence that such (a direct compensation) method is justified given the current state of the market," the BEREC conclusions said.
The telecommunications industry has argued Google, Netflix, Meta, Amazon, Microsoft and Apple should pay for a "fair share" of telecom infrastructure as their services make up more than half of internet traffic.
However, digital rights groups fear that if the big tech firms fund infrastructure, they will also strike deals with telecom firms to give their own traffic preferential treatment, undermining the principle of net neutrality.
In a reaction to the BEREC findings, telecom lobby group ETNO - the European Telecommunications Network Operators, which represents Deutsche Telekom, Orange Group, Telefonica and others - rejected the BEREC findings as outdated and said it would submit new evidence to the Commission to support its position.
BEREC's findings said the internet had proved resilient to changing traffic patterns in the past and following ETNO's proposals "could be of significant harm".
EU industry chief Thierry Breton has said the European Union will review the matter early in 2023.
(Reporting by Toby Sterling; Editing by Frank Jack Daniel and Mark Potter)
((toby.sterling@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 telecommunications industry has argued Google, Netflix, Meta, Amazon, Microsoft and Apple should pay for a "fair share" of telecom infrastructure as their services make up more than half of internet traffic. In a reaction to the BEREC findings, telecom lobby group ETNO - the European Telecommunications Network Operators, which represents Deutsche Telekom, Orange Group, Telefonica and others - rejected the BEREC findings as outdated and said it would submit new evidence to the Commission to support its position. BEREC's findings said the internet had proved resilient to changing traffic patterns in the past and following ETNO's proposals "could be of significant harm".
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Updates with details, background, telecoms industry reaction AMSTERDAM, Oct 11 (Reuters) - A group of European telecom regulators does not support the idea of having big tech firms such as Google and Netflix paying for telecommunications infrastructure, it said in initial findings published on Tuesday. However, digital rights groups fear that if the big tech firms fund infrastructure, they will also strike deals with telecom firms to give their own traffic preferential treatment, undermining the principle of net neutrality. In a reaction to the BEREC findings, telecom lobby group ETNO - the European Telecommunications Network Operators, which represents Deutsche Telekom, Orange Group, Telefonica and others - rejected the BEREC findings as outdated and said it would submit new evidence to the Commission to support its position.
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Updates with details, background, telecoms industry reaction AMSTERDAM, Oct 11 (Reuters) - A group of European telecom regulators does not support the idea of having big tech firms such as Google and Netflix paying for telecommunications infrastructure, it said in initial findings published on Tuesday. The findings by the Body of European Regulators for Electronic Communications (BEREC) come as the European Commission is debating whether internet platforms should be obliged to fund digital infrastructure such as 5G telecoms networks, given they make heavy use of it. In a reaction to the BEREC findings, telecom lobby group ETNO - the European Telecommunications Network Operators, which represents Deutsche Telekom, Orange Group, Telefonica and others - rejected the BEREC findings as outdated and said it would submit new evidence to the Commission to support its position.
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Updates with details, background, telecoms industry reaction AMSTERDAM, Oct 11 (Reuters) - A group of European telecom regulators does not support the idea of having big tech firms such as Google and Netflix paying for telecommunications infrastructure, it said in initial findings published on Tuesday. "BEREC has found no evidence that such (a direct compensation) method is justified given the current state of the market," the BEREC conclusions said. In a reaction to the BEREC findings, telecom lobby group ETNO - the European Telecommunications Network Operators, which represents Deutsche Telekom, Orange Group, Telefonica and others - rejected the BEREC findings as outdated and said it would submit new evidence to the Commission to support its position.
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18949.0
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2022-10-11 00:00:00 UTC
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Charter's (CHTR) Spectrum Expands Footprint in Wexford County
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AAPL
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https://www.nasdaq.com/articles/charters-chtr-spectrum-expands-footprint-in-wexford-county
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nan
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nan
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Charter Communications’ CHTR Spectrum recently announced that it has begun constructing a fiber-optic network, which will bring its services to more than 4700 homes and small businesses in Wexford County, MI.
Spectrum is offering its Internet gig services throughout the buildout area. For rural households, it is offering Internet services with a download speed of 1 Gbps, while for small and medium-sized businesses, the company is providing Internet connectivity services with download speeds of 300 Mbps, 600 Mbps and 1 Gbps.
Charter is also offering its Spectrum mobile services to customers using its Internet services along with phone services through Spectrum Voice. This will provide unlimited calling in the United States, Canada, Puerto Rico and Mexico with up to 28 popular calling features, including Call Guard, which helps block unwanted automated calls.
Additionally, 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 other platforms like Kindle Fire, Samsung Smart TVs and Apple’s (AAPL) Apple TV and Spectrum Originals using the Spectrum TV App.
Spectrum also 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.
Spectrum Expanding Footprint Across U.S. to Aid Top Line
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.
CHTR’s shares have lost 29.7% in the year-to-date period compared with the Zacks Cable Television industry’s decline of 24.5%.
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, which are heightening the competition for Charter to grab a decent market share.
Netflix has been spending aggressively on building its original content portfolio, and the company 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 Wexford 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.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
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 other 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’ CHTR Spectrum recently announced that it has begun constructing a fiber-optic network, which will bring its services to more than 4700 homes and small businesses in Wexford County, MI.
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Viewers can stream content across other 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 For rural households, it is offering Internet services with a download speed of 1 Gbps, while for small and medium-sized businesses, the company is providing Internet connectivity services with download speeds of 300 Mbps, 600 Mbps and 1 Gbps.
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Viewers can stream content across other 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 is also offering its Spectrum mobile services to customers using its Internet services along with phone services through Spectrum Voice.
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Viewers can stream content across other 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 is also offering its Spectrum mobile services to customers using its Internet services along with phone services through Spectrum Voice.
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18950.0
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2022-10-11 00:00:00 UTC
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PC Shipments Decline in Q3 on Lower Demand, Macroeconomic Woes
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AAPL
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https://www.nasdaq.com/articles/pc-shipments-decline-in-q3-on-lower-demand-macroeconomic-woes
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nan
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nan
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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 third quarter, according to the latest data compiled by market research firm, Gartner.
Per the preliminary data released by Gartner, PC shipments in the September quarter plunged 19.5% year over year to 68 million units. The independent research firm claims the decline to be the sharpest since it has been tracking the PC market since the mid-1990s.
Why Did PC Shipments Fall in Q3?
Gartner opines that the year-over-year decline was mainly due to weakening consumer demand for PCs, supply-chain issues and high inventory levels. Softening IT spending amid the ongoing economic and geopolitical uncertainties resulted in a decline in demand for PCs.
Computer - Mini computers Industry 5YR % Return
Computer - Mini computers Industry 5YR % Return
In 2020 and 2021, PC manufacturers had benefited from increased demand amid the pandemic-induced remote-working and online-learning wave. The pandemic necessitated the use of PC systems, be it for remote work, web-based learning, video conferencing, video gaming, social media, consumer entertainment and streaming or online shopping.
However, the recent back-to-back three quarters of declining PC shipments depict an end of the demand boom for the industry. We believe that consumers have become more cautious about their spending due to inflationary pressure and fears of a possible recession.
The drastic decline in PC shipments was also due to a steep downturn in Chromebook demand as the reopening of schools and colleges across the majority parts of the world weakened the necessity for education on PCs. Gartner noted that despite massive promotions and price drops, back-to-school sales were disappointing as many consumers had purchased new PCs in the last two years.
Gartner in its report pointed out that though supply-chain challenges have eased somewhat, higher inventory level has become a major issue due to softened demand for consumer as well as commercial PCs.
Additionally, Gartner pointed out that several PC manufacturers’ decision to halt business operations in Russia due to its attack on Ukraine severely affected PC shipment volumes in the quarter.
Vendor-Wise PC Shipments
Gartner revealed that all vendors registered steep year-over-year declines in their PC sales volumes. Per the data compiled by Gartner, HP Inc. HPQ registered the highest fall of 27.9% to 12.71 million units, followed by Acer’s 25.6% to $4.49 million PCs.
Dell Technologies’ DELL PC volumes plunged 21.1% to 12.02 million units, while Apple AAPL registered a 15.6% year-over-year decline in shipments to 5.8 million units. Lenovo LNVGY shipments contracted 15.3% to 17.11 million, while Asus witnessed a 7.5% decline to 5.56 million units.
Per Gartner, Lenovo continues to hold the top spot in the vendor list, followed by HP and Dell, with a market share of 25.2%, 18.7% and 17.7%, respectively. Apple, ASUS and Acer ended the July-September quarter with a market share of 8.5%, 8.2% and 6.6%, respectively.
Among the leading vendors, Apple carries a Zacks Rank #3 (Hold), while Dell has a Zacks Rank #4 (Sell). HP and Lenovo each carry a Zacks Rank #5 (Strong Sell). Shares of AAPL, DELL, HPQ and Lenovo have plunged 20.9%, 38.6%, 33.7% and 40.2%, respectively, year to date.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
HP Inc. (HPQ): Free Stock Analysis Report
Dell Technologies Inc. (DELL): Free Stock Analysis Report
Lenovo Group Ltd. (LNVGY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Dell Technologies’ DELL PC volumes plunged 21.1% to 12.02 million units, while Apple AAPL registered a 15.6% year-over-year decline in shipments to 5.8 million units. Shares of AAPL, DELL, HPQ and Lenovo have plunged 20.9%, 38.6%, 33.7% and 40.2%, respectively, year to date. Apple Inc. (AAPL): Free Stock Analysis Report
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Dell Technologies’ DELL PC volumes plunged 21.1% to 12.02 million units, while Apple AAPL registered a 15.6% year-over-year decline in shipments to 5.8 million units. Shares of AAPL, DELL, HPQ and Lenovo have plunged 20.9%, 38.6%, 33.7% and 40.2%, respectively, year to date. Apple Inc. (AAPL): Free Stock Analysis Report
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Dell Technologies’ DELL PC volumes plunged 21.1% to 12.02 million units, while Apple AAPL registered a 15.6% year-over-year decline in shipments to 5.8 million units. Shares of AAPL, DELL, HPQ and Lenovo have plunged 20.9%, 38.6%, 33.7% and 40.2%, respectively, year to date. Apple Inc. (AAPL): Free Stock Analysis Report
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Dell Technologies’ DELL PC volumes plunged 21.1% to 12.02 million units, while Apple AAPL registered a 15.6% year-over-year decline in shipments to 5.8 million units. Shares of AAPL, DELL, HPQ and Lenovo have plunged 20.9%, 38.6%, 33.7% and 40.2%, respectively, year to date. Apple Inc. (AAPL): Free Stock Analysis Report
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18951.0
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2022-10-11 00:00:00 UTC
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US STOCKS-Wall St set for muted open as economic worries curb risk appetite
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-for-muted-open-as-economic-worries-curb-risk-appetite
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By Ankika Biswas and Shreyashi Sanyal
Oct 11 (Reuters) - U.S. stock indexes were set for a subdued open on Tuesday as investors assessed the economic impact of aggressive rate hikes, escalating Russia-Ukraine war and China ramping up COVID-19 measures.
The three main indexes have been on a loss-making streak in the past few sessions as recent data continues to point to more policy tightening by the U.S. Federal Reserve that could tip the economy into a recession.
Most rate-sensitive growth stocks such as Microsoft Corp MSFT.O, Twitter Inc TWTR.O, Amazon.com AMZN.O, Apple Inc AAPL.O, and Tesla Inc TSLA.O were down between 0.1% and 0.2% in premarket trading.
The yield on the benchmark 10-year U.S. Treasury note US10YT=RR was up on Tuesday, hitting a day's high of 4.006%. US/
With recent economic indicators signaling persistent inflation going forward, money markets are pricing in a 92% chance of another 75-basis-point hike at the Fed's meeting in November. FEDWATCH
A consumer prices report due on Thursday will offer some clues on inflation, with focus also on minutes from the Fed's September meeting expected later in the week.
"If we continue to get inflation data that is not showing any signs of slowing, the Fed's not going to lay off, there's no Fed pivot coming," said Dennis Dick, founder and market structure analyst at Triple D Trading Inc.
"Right now the market wants to see data, show me the numbers, show me we're getting inflation down. Until then, this market is probably stuck in this whole death by a 1,000 cuts scenario."
Belarus said on Tuesday that its forces had grouped with Russian troops on its borders as a defensive measure, further aggravating a spiraling war.
Shanghai and other big Chinese cities have ramped up COVID-19 testing amid a rise in infections, with some local authorities hastily closing schools, entertainment venues and tourist spots.
Major U.S. banks are set to report third-quarter results on Friday that may offer insight into the health of the U.S. economy.
Estimates for the earnings season have been revised downwards in recent weeks. Analysts now expect year-over-year profit for S&P 500 companies to have risen 4.1% in the quarter, compared with an increase of 11.1% expected at the beginning of July, according to IBES data from Refinitiv.
The CBOE Volatility index .VIX, also known as Wall Street's fear gauge, rose to 33.57 points, up for a fourth straight session and inching closer to near two-weeks high.
At 08:26 a.m. ET, Dow e-minis 1YMcv1 were up 6 points, or 0.02%, S&P 500 e-minis EScv1 were down 2.25 points, or 0.06%, and Nasdaq 100 e-minis NQcv1 were down 10.25 points, or 0.09%.
Amgen Inc AMGN.O shares jumped nearly 3% after a report said Morgan Stanley upgraded the drugmaker's stock to "overweight" from "equal weight".
The Nasdaq Composite index .IXIC closed at its lowest level since July 2020 on Monday, while the Philadelphia SE Semiconductor index .SOX slumped to an almost two-year low after the United States announced restrictions aimed at hobbling China's semiconductor industry.
(Reporting by Ankika Biswas and Shreyashi Sanyal; Additional reporting by Devik Jain 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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Most rate-sensitive growth stocks such as Microsoft Corp MSFT.O, Twitter Inc TWTR.O, Amazon.com AMZN.O, Apple Inc AAPL.O, and Tesla Inc TSLA.O were down between 0.1% and 0.2% in premarket trading. By Ankika Biswas and Shreyashi Sanyal Oct 11 (Reuters) - U.S. stock indexes were set for a subdued open on Tuesday as investors assessed the economic impact of aggressive rate hikes, escalating Russia-Ukraine war and China ramping up COVID-19 measures. The three main indexes have been on a loss-making streak in the past few sessions as recent data continues to point to more policy tightening by the U.S. Federal Reserve that could tip the economy into a recession.
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Most rate-sensitive growth stocks such as Microsoft Corp MSFT.O, Twitter Inc TWTR.O, Amazon.com AMZN.O, Apple Inc AAPL.O, and Tesla Inc TSLA.O were down between 0.1% and 0.2% in premarket trading. By Ankika Biswas and Shreyashi Sanyal Oct 11 (Reuters) - U.S. stock indexes were set for a subdued open on Tuesday as investors assessed the economic impact of aggressive rate hikes, escalating Russia-Ukraine war and China ramping up COVID-19 measures. The three main indexes have been on a loss-making streak in the past few sessions as recent data continues to point to more policy tightening by the U.S. Federal Reserve that could tip the economy into a recession.
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Most rate-sensitive growth stocks such as Microsoft Corp MSFT.O, Twitter Inc TWTR.O, Amazon.com AMZN.O, Apple Inc AAPL.O, and Tesla Inc TSLA.O were down between 0.1% and 0.2% in premarket trading. By Ankika Biswas and Shreyashi Sanyal Oct 11 (Reuters) - U.S. stock indexes were set for a subdued open on Tuesday as investors assessed the economic impact of aggressive rate hikes, escalating Russia-Ukraine war and China ramping up COVID-19 measures. "If we continue to get inflation data that is not showing any signs of slowing, the Fed's not going to lay off, there's no Fed pivot coming," said Dennis Dick, founder and market structure analyst at Triple D Trading Inc. "Right now the market wants to see data, show me the numbers, show me we're getting inflation down.
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Most rate-sensitive growth stocks such as Microsoft Corp MSFT.O, Twitter Inc TWTR.O, Amazon.com AMZN.O, Apple Inc AAPL.O, and Tesla Inc TSLA.O were down between 0.1% and 0.2% in premarket trading. By Ankika Biswas and Shreyashi Sanyal Oct 11 (Reuters) - U.S. stock indexes were set for a subdued open on Tuesday as investors assessed the economic impact of aggressive rate hikes, escalating Russia-Ukraine war and China ramping up COVID-19 measures. The three main indexes have been on a loss-making streak in the past few sessions as recent data continues to point to more policy tightening by the U.S. Federal Reserve that could tip the economy into a recession.
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18952.0
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2022-10-11 00:00:00 UTC
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Apple Inc. (AAPL) is Attracting Investor Attention: Here is What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-inc.-aapl-is-attracting-investor-attention%3A-here-is-what-you-should-know-1
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this maker of iPhones, iPads and other products have returned -14.1%, compared to the Zacks S&P 500 composite's -11.1% change. During this period, the Zacks Computer - Mini computers industry, which Apple falls in, has lost 10.8%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Apple is expected to post earnings of $1.25 per share for the current quarter, representing a year-over-year change of +0.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.2%.
For the current fiscal year, the consensus earnings estimate of $6.10 points to a change of +8.7% from the prior year. Over the last 30 days, this estimate has changed -0.3%.
For the next fiscal year, the consensus earnings estimate of $6.48 indicates a change of +6.2% from what Apple is expected to report a year ago. Over the past month, the estimate has changed -0.3%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Apple.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Apple, the consensus sales estimate for the current quarter of $88.06 billion indicates a year-over-year change of +5.6%. For the current and next fiscal years, $392.24 billion and $411.42 billion estimates indicate +7.2% and +4.9% changes, respectively.
Last Reported Results and Surprise History
Apple reported revenues of $82.96 billion in the last reported quarter, representing a year-over-year change of +1.9%. EPS of $1.20 for the same period compares with $1.30 a year ago.
Compared to the Zacks Consensus Estimate of $81.99 billion, the reported revenues represent a surprise of +1.19%. The EPS surprise was +5.26%.
Over the last four quarters, Apple surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Apple is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Apple. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Apple Inc. (AAPL): Free Stock Analysis Report We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends.
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Apple Inc. (AAPL): Free Stock Analysis Report The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues.
|
Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Apple Inc. (AAPL): Free Stock Analysis Report With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions.
|
Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Apple Inc. (AAPL): Free Stock Analysis Report Revisions to Earnings Estimates Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else.
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18953.0
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2022-10-11 00:00:00 UTC
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The Non-Apple PC Market Has Fallen Below Pre-Pandemic Levels
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AAPL
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https://www.nasdaq.com/articles/the-non-apple-pc-market-has-fallen-below-pre-pandemic-levels
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nan
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nan
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Global sales of personal computers tumbled by 15% year over year in the third quarter, according to a report from market intelligence firm IDC. There was a sliver of good news in that report -- PC sales remained above their pre-pandemic levels as the industry shipped 74.3 million units in Q3, up from 70.4 million units in Q3 2019.
The bad news for any company involved in the manufacture or sale of Windows PCs is that a strong performance from Apple (NASDAQ: AAPL) prettied up the numbers quite a bit. Apple was the only top 5 PC provider to grow its shipments in Q3, when it shipped just over 10 million Macs, up 40% year over year.
Trouble in the land of Windows PCs
If you back Apple out of the picture, the PC market is shipping fewer units than it did before the pandemic. Unit shipments of non-Apple PCs totaled 64.2 million in Q3, down from 65.4 million in Q3 2019.
The underlying trends that drove PC sales dramatically higher during the first two years of the pandemic haven't really changed much. Many people are still working from home, and remote and hybrid work scenarios appear to be here to stay as employees continue to resist being forced back into the office.
But it's becoming clear that a big chunk of those sales earlier came from demand getting pulled forward. People who, absent the pandemic, might have waited a couple of years to upgrade their laptops found themselves using those devices every day and decided to upgrade sooner. PCs flew off the shelves. But now, there are far fewer people in such pressing need of upgrades.
The combination of pulled-forward demand and a difficult macroeconomic picture has resulted in a steep decline in PC sales. Excluding Apple, PC sales fell by 20% year over year in the third quarter.
This is bad news for HP
By 2019, the PC market had been in a slow decline for many years. The pandemic boosted the fortunes of the industry, but that boost has now faded away.
HP (NYSE: HP) is one of the biggest PC vendors. Not only did its PC sales rise during the pandemic, but profits from its PC segment ballooned as well. HP's personal systems segment generated $43.4 billion of revenue in 2021, with an adjusted operating margin of 7.2%.
That level of profitability was far higher than is typical for HP. The segment managed an adjusted operating margin of just 4.9% in 2019, and that was a significant improvement over the previous year. And remember, the PC market was stable back then. It's not right now.
I warned about the risk to HP's PC profits earlier this year. Profitability started to contract in HP's fiscal third quarter, which ended July 31. The segment's adjusted operating margin dipped to 6.9%, down 1.5 percentage points from the prior-year period. Given the historical profitability of HP's PC business, that decline was probably just the beginning.
HP stock is still trading above pre-pandemic levels, and while it looks cheap, it probably isn't. Adjusted net income reached $3.79 per share in fiscal 2021, putting its trailing price-to-earnings ratio at just 6.6. But a big chunk of the company's profits is tied to PCs, and those earnings have the potential to decline significantly. The rest of its profits come from the printing business, which likely won't fare well in a recession.
Where HP's bottom line will settle depends on the severity of the PC downturn. With non-Apple PC sales rapidly deteriorating, the rest of 2022 and 2023 likely won't be kind to HP's PC business.
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Timothy Green 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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The bad news for any company involved in the manufacture or sale of Windows PCs is that a strong performance from Apple (NASDAQ: AAPL) prettied up the numbers quite a bit. Trouble in the land of Windows PCs If you back Apple out of the picture, the PC market is shipping fewer units than it did before the pandemic. The underlying trends that drove PC sales dramatically higher during the first two years of the pandemic haven't really changed much.
|
The bad news for any company involved in the manufacture or sale of Windows PCs is that a strong performance from Apple (NASDAQ: AAPL) prettied up the numbers quite a bit. There was a sliver of good news in that report -- PC sales remained above their pre-pandemic levels as the industry shipped 74.3 million units in Q3, up from 70.4 million units in Q3 2019. Trouble in the land of Windows PCs If you back Apple out of the picture, the PC market is shipping fewer units than it did before the pandemic.
|
The bad news for any company involved in the manufacture or sale of Windows PCs is that a strong performance from Apple (NASDAQ: AAPL) prettied up the numbers quite a bit. Excluding Apple, PC sales fell by 20% year over year in the third quarter. Not only did its PC sales rise during the pandemic, but profits from its PC segment ballooned as well.
|
The bad news for any company involved in the manufacture or sale of Windows PCs is that a strong performance from Apple (NASDAQ: AAPL) prettied up the numbers quite a bit. Trouble in the land of Windows PCs If you back Apple out of the picture, the PC market is shipping fewer units than it did before the pandemic. This is bad news for HP By 2019, the PC market had been in a slow decline for many years.
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18954.0
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2022-10-11 00:00:00 UTC
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US STOCKS-Futures slide over rising economic worries; tech stocks fall
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-slide-over-rising-economic-worries-tech-stocks-fall
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nan
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nan
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By Ankika Biswas
Oct 11 (Reuters) - U.S. stock index futures fell on Tuesday, with technology shares leading the selloff, as worries over the impact of aggressive rate hikes, escalating Russia-Ukraine war and China ramping up COVID-19 measures darkened the economic outlook.
Markets have struggled to maintain the momentum of a brief rally early last week as a clutch of recent data continues to point to more policy tightening by the U.S. Federal Reserve that could tip the economy into a recession.
Most rate-sensitive growth stocks such as Microsoft Corp MSFT.O, Twitter Inc TWTR.O, Amazon.com AMZN.O, Apple Inc AAPL.O, and Tesla Inc TSLA.O were down between 0.7% and 1.3% in premarket trading.
The yield on the benchmark 10-year U.S. Treasury note US10YT=RR was up on Tuesday, hitting a day's high of 4.006%.
With recent economic indicators signaling persistent inflation going forward, money markets are pricing in a 92% chance of another 75-basis-point hike at the Fed's meeting in November. FEDWATCH
A consumer prices report due on Thursday will provide some clarity on inflation, while minutes from the Fed's September meeting is also expected later in the week.
Belarus said on Tuesday that its forces had grouped with Russian troops on its borders as a defensive measure, further aggravating a spiraling war.
Shanghai and other big Chinese cities have ramped up COVID-19 testing amid a rise in infections, with some local authorities hastily closing schools, entertainment venues and tourist spots.
The CBOE volatility index .VIX, also known as Wall Street's fear gauge, rose to 33.57 points, up for a fourth straight session and inching closer to near two-weeks high.
At 6:09 a.m. ET, Dow e-minis 1YMcv1 were down 269 points, or 0.92%, S&P 500 e-minis EScv1 were down 36.75 points, or 1.01%, and Nasdaq 100 e-minis NQcv1 were down 111.75 points, or 1.02%.
(Reporting by Ankika Biswas; 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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Most rate-sensitive growth stocks such as Microsoft Corp MSFT.O, Twitter Inc TWTR.O, Amazon.com AMZN.O, Apple Inc AAPL.O, and Tesla Inc TSLA.O were down between 0.7% and 1.3% in premarket trading. By Ankika Biswas Oct 11 (Reuters) - U.S. stock index futures fell on Tuesday, with technology shares leading the selloff, as worries over the impact of aggressive rate hikes, escalating Russia-Ukraine war and China ramping up COVID-19 measures darkened the economic outlook. Markets have struggled to maintain the momentum of a brief rally early last week as a clutch of recent data continues to point to more policy tightening by the U.S. Federal Reserve that could tip the economy into a recession.
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Most rate-sensitive growth stocks such as Microsoft Corp MSFT.O, Twitter Inc TWTR.O, Amazon.com AMZN.O, Apple Inc AAPL.O, and Tesla Inc TSLA.O were down between 0.7% and 1.3% in premarket trading. By Ankika Biswas Oct 11 (Reuters) - U.S. stock index futures fell on Tuesday, with technology shares leading the selloff, as worries over the impact of aggressive rate hikes, escalating Russia-Ukraine war and China ramping up COVID-19 measures darkened the economic outlook. ET, Dow e-minis 1YMcv1 were down 269 points, or 0.92%, S&P 500 e-minis EScv1 were down 36.75 points, or 1.01%, and Nasdaq 100 e-minis NQcv1 were down 111.75 points, or 1.02%.
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Most rate-sensitive growth stocks such as Microsoft Corp MSFT.O, Twitter Inc TWTR.O, Amazon.com AMZN.O, Apple Inc AAPL.O, and Tesla Inc TSLA.O were down between 0.7% and 1.3% in premarket trading. By Ankika Biswas Oct 11 (Reuters) - U.S. stock index futures fell on Tuesday, with technology shares leading the selloff, as worries over the impact of aggressive rate hikes, escalating Russia-Ukraine war and China ramping up COVID-19 measures darkened the economic outlook. ET, Dow e-minis 1YMcv1 were down 269 points, or 0.92%, S&P 500 e-minis EScv1 were down 36.75 points, or 1.01%, and Nasdaq 100 e-minis NQcv1 were down 111.75 points, or 1.02%.
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Most rate-sensitive growth stocks such as Microsoft Corp MSFT.O, Twitter Inc TWTR.O, Amazon.com AMZN.O, Apple Inc AAPL.O, and Tesla Inc TSLA.O were down between 0.7% and 1.3% in premarket trading. By Ankika Biswas Oct 11 (Reuters) - U.S. stock index futures fell on Tuesday, with technology shares leading the selloff, as worries over the impact of aggressive rate hikes, escalating Russia-Ukraine war and China ramping up COVID-19 measures darkened the economic outlook. Markets have struggled to maintain the momentum of a brief rally early last week as a clutch of recent data continues to point to more policy tightening by the U.S. Federal Reserve that could tip the economy into a recession.
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18955.0
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2022-10-11 00:00:00 UTC
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Got $100? Buy These 2 Beaten-Down Stocks Before They Go on a Bull Run
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AAPL
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https://www.nasdaq.com/articles/got-%24100-buy-these-2-beaten-down-stocks-before-they-go-on-a-bull-run
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nan
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nan
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September was brutal for the markets as more worrying economic news, including a hawkish Federal Reserve raising interest rates to get a handle on inflation, was processed by investors.
The S&P 500, the Dow Jones Industrial Average, and the Nasdaq Composite are all in bear market territory, trading down over 20% from their highs. Many individual stocks are trading down even worse. The brutal sell-off weighed heavily on tech stocks like Roblox (NYSE: RBLX) and Skyworks Solutions (NASDAQ: SWKS). Roblox stock has lost two-thirds of its value so far in 2022. Apple (NASDAQ: AAPL) supplier Skyworks, meanwhile, saw its stock price drop 44% this year.
Investors who think it might be time to dip their toes back in the market with small-scale buys -- let's say $100 -- should take a closer look at Roblox and Skyworks. These two stocks are sitting on solid catalysts that could help them regain their mojo. Let me explain.
1. Roblox
Roblox stock is trading at the lower end of its 52-week range at around $35 a share. The company's online platform enables creators and developers to create, publish, and operate 3D virtual experiences that might include games, concerts, or virtual reality (VR) stores. The platform could be a big long-term beneficiary of the growing adoption of the metaverse.
Roblox operates an online gaming platform that it monetizes with a virtual currency known as Robux. Users can buy Robux and spend it on in-game items such as their virtual avatars or upgrades. The company is now expanding its expertise to other areas in a bid to tap the metaverse, and the good part is that it is already gaining traction while doing so.
The likes of Walmart, Spotify, Paramount Global's MTV, Tommy Hilfiger, and Kering's Gucci are some of the names that have opted for Roblox's platform for their metaverse presence, having built their 3D digital experiences with the company's help.
Investors should note that 3D is going to form the backbone of the metaverse. Avatars of people from across the globe are going to interact with one another in 3D worlds in the metaverse.
So the demand for the virtual experiences that Roblox provides should take off in the long run. More importantly, the company is focused on maximizing its opportunities within the metaverse by finding more ways of generating revenue. For instance, the company plans to sell virtual real estate (billboards, for example) that will allow advertisers to showcase their products or services.
The metaverse is expected to grow at an annual rate of 47% through 2029, which means Roblox is on track to take advantage of a terrific growth opportunity. But the company has run into short-term troubles this year as spending on its virtual currency has dropped following a year of rapid growth in 2021. The good news is that the latest metrics show that the platform continues to attract new users and drive incremental spending even in an inflationary environment.
For August 2022, Roblox saw a 24% year-over-year increase in daily active users to nearly 60 million. The company's bookings, which refers to the money collected from sales of its virtual currency, increased 6% year over year to a midpoint of $235 million. Roblox engaged users for 4.7 billion hours during the month, an increase of 18% over August 2021.
As the metaverse gains traction and the demand for Roblox's services increases, it won't be surprising to see these metrics head higher. Analysts, for instance, are already anticipating solid revenue growth from the company for the next couple of years.
RBLX revenue estimates for current fiscal year. Data by YCharts.
So investors considering the metaverse and having $100 to spare might buy a couple of shares of Roblox and hold on to them for the long run given its impressive prospects.
2. Skyworks Solutions
If investors aren't convinced about Roblox while it tries to make the most of a nascent opportunity, they may want to spend their $100 on a share of Skyworks Solutions. The chipmaker's stock costs around $87, and it could go lower following reports that its largest customer, Apple, could be scaling back the production of its latest iPhones.
Apple is reportedly going to cut iPhone 14 production by 6 million units this quarter. The news sent Skyworks stock tumbling because the chipmaker got 59% of its revenue from supplying chips to Apple last fiscal year. But it may be a good idea to take advantage of the slide in the stock since it now trades at less than 11 times trailing earnings and 7.3 times forward earnings.
And the reported drop in Apple's production might not be as big a deal for the company as investors think right now. That's because Skyworks may have gained content in the iPhone 14 lineup over last year's models, and that could help it ward off any potential weakness arising from a drop in volumes.
According to a teardown of the iPhone 14 Pro Max by the website iFixit, Skyworks could be supplying the antenna switch and the power amplifier module to Apple this time in addition to the two front-end modules that it was supplying last time. So Skyworks could be generating more revenue per iPhone this time.
Also, Apple reportedly produced 80 million iPhone 13 units in 2021 after cutting its production estimate due to a supply crunch, which means the 2022 estimate will still be an improvement from last year.
All this indicates that Skyworks could spring a surprise and deliver stronger-than-expected results in November. As such, it won't be surprising to see this semiconductor stock close the year on a high and head higher in 2023 and beyond, especially considering that it is sitting on additional catalysts such as the Internet of Things and wireless connectivity infrastructure that form a part of its fast-growing broad market segment.
10 stocks we like better than Roblox Corporation
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Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Roblox Corporation, Spotify Technology, and Walmart Inc. The Motley Fool recommends Skyworks Solutions and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) supplier Skyworks, meanwhile, saw its stock price drop 44% this year. September was brutal for the markets as more worrying economic news, including a hawkish Federal Reserve raising interest rates to get a handle on inflation, was processed by investors. The likes of Walmart, Spotify, Paramount Global's MTV, Tommy Hilfiger, and Kering's Gucci are some of the names that have opted for Roblox's platform for their metaverse presence, having built their 3D digital experiences with the company's help.
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Apple (NASDAQ: AAPL) supplier Skyworks, meanwhile, saw its stock price drop 44% this year. As the metaverse gains traction and the demand for Roblox's services increases, it won't be surprising to see these metrics head higher. The Motley Fool has positions in and recommends Apple, Roblox Corporation, Spotify Technology, and Walmart Inc.
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Apple (NASDAQ: AAPL) supplier Skyworks, meanwhile, saw its stock price drop 44% this year. Roblox Roblox stock is trading at the lower end of its 52-week range at around $35 a share. Skyworks Solutions If investors aren't convinced about Roblox while it tries to make the most of a nascent opportunity, they may want to spend their $100 on a share of Skyworks Solutions.
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Apple (NASDAQ: AAPL) supplier Skyworks, meanwhile, saw its stock price drop 44% this year. Users can buy Robux and spend it on in-game items such as their virtual avatars or upgrades. Analysts, for instance, are already anticipating solid revenue growth from the company for the next couple of years.
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18956.0
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2022-10-11 00:00:00 UTC
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India to press Apple, Samsung for faster 5G software upgrades in phones
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https://www.nasdaq.com/articles/india-to-press-apple-samsung-for-faster-5g-software-upgrades-in-phones-0
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By Aditya Kalra and Munsif Vengattil
NEW DELHI, Oct 11 (Reuters) - India's government will push Apple, Samsung and other mobile phone manufacturers to prioritise rolling out software upgrades to support 5G in the country, amid concerns that many of their models are not ready for the recently launched high-speed service.
Prime Minister Narendra Modi launched 5G services on Oct. 1 amid much fanfare, with leading telecom operator Reliance RELI.NS Jio saying it would make the service available in four cities and rival Bharti Airtel BRTI.NS in eight. Both companies said the service would be expanded next year.
But Apple's iPhone models, including the latest iPhone 14, and many of Samsung's premier phones do not have software compatible for supporting 5G in India, according to three industry sources and Airtel's website.
Concerned by this, top bureaucrats from India's telecoms and IT departments will chair a meeting on Wednesday for early 5G adoption, asking smartphone executives from foreign companies Apple, Samsung, Vivo and Xiaomi, as well as domestic telecom operators Reliance, Airtel and Vodafone Idea VODA.NS to be present, according to a government document seen by Reuters.
The agenda includes holding talks "to prioritise" and release software upgrades for supporting the high-speed network, the notice for the closed-door meeting stated.
Apple Inc AAPL.O, Samsung Electronics 005930.KS, Vivo, Xiaomi Corp 1810.HK, as well as the three domestic telecom operators, did not immediately respond to a request for comment. The government's IT and telecom departments also did not respond.
India has said that launch of 5G in the world's biggest mobile market - after China - will bring high-speed internet to consumers, with simultaneous socio-economic benefits in sectors like agriculture and health.
In August, Jio, India's biggest mobile carrier with more than 420 million customers, snapped up airwaves worth $11 billion in a $19 billion 5G spectrum auction. Airtel spent more than $5 billion, while Vodafone doled out above $2 billion.
While telecom players and smartphone companies have been holding discussions with each other, ironing out compatibility issues between the specific 5G technology of telecom companies in India and phone software is taking time, one of the industry sources said.
Airtel's website on Tuesday showed "Apple yet to update software" for all of Apple iPhones' 12 to 14 models under its 5G compatible section. For Samsung too, many models were not ready, Airtel stated, while more than three dozen models of China's Xiaomi and Vivo were shown as ready for use with its 5G service.
"Apple has been taking a lot of time. Airtel has been concerned about this as many of their premium clients are on Apple devices," said a second industry source with direct knowledge of the situation, who added Apple and Airtel have been holding talks.
A third source with direct knowledge of the issue said Apple was in the process of testing and validating different 5G offerings from network providers in India.
Lack of 5G software upgrades has already irked users.
On Sunday, the CEO of SoftBank-backed Indian digital payments firm Paytm PAYT.NS, Vijay Shekhar Sharma, tagged Airtel in a tweet to say he bought a Google Pixel 6a phone only to use 5G, but it was not showing the network as an option in New Delhi. Later, he asked Google for a software upgrade in a tweet.
In response, a Twitter user, Mudit Mathur, posted screenshots showing his exchanges with Google Support team that told him the company was working with Indian telecom carriers to turn on 5G functionality on its phones "as soon as possible", targeting a December timeline.
Google did not respond to a request for comment.
(Reporting by Aditya Kalra in New Delhi; Editing by Raju Gopalakrishnan & Simon Cameron-Moore)
((aditya.kalra@tr.com; Twitter @adityakalra;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O, Samsung Electronics 005930.KS, Vivo, Xiaomi Corp 1810.HK, as well as the three domestic telecom operators, did not immediately respond to a request for comment. By Aditya Kalra and Munsif Vengattil NEW DELHI, Oct 11 (Reuters) - India's government will push Apple, Samsung and other mobile phone manufacturers to prioritise rolling out software upgrades to support 5G in the country, amid concerns that many of their models are not ready for the recently launched high-speed service. On Sunday, the CEO of SoftBank-backed Indian digital payments firm Paytm PAYT.NS, Vijay Shekhar Sharma, tagged Airtel in a tweet to say he bought a Google Pixel 6a phone only to use 5G, but it was not showing the network as an option in New Delhi.
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Apple Inc AAPL.O, Samsung Electronics 005930.KS, Vivo, Xiaomi Corp 1810.HK, as well as the three domestic telecom operators, did not immediately respond to a request for comment. By Aditya Kalra and Munsif Vengattil NEW DELHI, Oct 11 (Reuters) - India's government will push Apple, Samsung and other mobile phone manufacturers to prioritise rolling out software upgrades to support 5G in the country, amid concerns that many of their models are not ready for the recently launched high-speed service. But Apple's iPhone models, including the latest iPhone 14, and many of Samsung's premier phones do not have software compatible for supporting 5G in India, according to three industry sources and Airtel's website.
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Apple Inc AAPL.O, Samsung Electronics 005930.KS, Vivo, Xiaomi Corp 1810.HK, as well as the three domestic telecom operators, did not immediately respond to a request for comment. By Aditya Kalra and Munsif Vengattil NEW DELHI, Oct 11 (Reuters) - India's government will push Apple, Samsung and other mobile phone manufacturers to prioritise rolling out software upgrades to support 5G in the country, amid concerns that many of their models are not ready for the recently launched high-speed service. But Apple's iPhone models, including the latest iPhone 14, and many of Samsung's premier phones do not have software compatible for supporting 5G in India, according to three industry sources and Airtel's website.
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Apple Inc AAPL.O, Samsung Electronics 005930.KS, Vivo, Xiaomi Corp 1810.HK, as well as the three domestic telecom operators, did not immediately respond to a request for comment. By Aditya Kalra and Munsif Vengattil NEW DELHI, Oct 11 (Reuters) - India's government will push Apple, Samsung and other mobile phone manufacturers to prioritise rolling out software upgrades to support 5G in the country, amid concerns that many of their models are not ready for the recently launched high-speed service. Concerned by this, top bureaucrats from India's telecoms and IT departments will chair a meeting on Wednesday for early 5G adoption, asking smartphone executives from foreign companies Apple, Samsung, Vivo and Xiaomi, as well as domestic telecom operators Reliance, Airtel and Vodafone Idea VODA.NS to be present, according to a government document seen by Reuters.
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18957.0
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2022-10-11 00:00:00 UTC
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3 Tech Stocks With More Potential Than Any Cryptocurrency
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https://www.nasdaq.com/articles/3-tech-stocks-with-more-potential-than-any-cryptocurrency-0
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While companies' share prices fluctuate according to the financial performance of the business, cryptocurrencies have no underlying assets. As a result, the value of cryptocurrencies often rises and falls based on investors' speculation. In 2022 alone, the S&P Cryptocurrency Top 10 Equal Weight Index has tumbled 70.5% since January.
The crypto market's value has plummeted as the war in Ukraine and rises in inflation and interest rates have bled into the already volatile industry. Moreover, in June, major U.S. cryptocurrency lending company Celsius Network froze withdrawals and transfers because of "extreme" conditions, which sent the crypto market's value falling below $1 trillion.
Investing in cryptocurrencies is tricky, as there are not many concrete reasons for their fluctuation in value. Consequently, investing in a company with a history of innovation and well-performing products is a more reliable way to let your money work for you. Here are three tech stocks with more potential than any cryptocurrency.
1. Advanced Micro Devices
Along with Nvidia, Advanced Micro Devices (NASDAQ: AMD) played a critical role in the development of the cryptocurrency market with its graphics processing units (GPUs). Up until September, GPUs were a crucial component in mining the cryptocurrency Ethereum.
However, on Sept. 15, the cryptocurrency switched from a proof-of-work to a proof-of-stake model, which rendered GPUs unnecessary in the production of Ethereum and made mining crypto unprofitable. The result led to a decline in demand for GPUs, a market in which AMD boasts the second-largest market share at 20% as of the second quarter of 2022.
AMD profited off of the rise of cryptocurrency for several years, as under the proof-of-work model, an increase in the value of Ethereum would often boost GPU sales. However, AMD continues to be a company worth an investment despite its lack of involvement in the crypto market. Its exit from the unpredictable market may even offer the company more reliable growth.
Although the company's stock has fallen 59% since January alongside declines in the PC market, AMD's revenue reflects a strong business. The chipmaker's revenue rose 70% year over year to $12.4 billion in the first two quarters of the year, and it expects a 29% increase in year-over-year revenue in the third quarter of 2022.
Additionally, AMD has a varied business that works within the PC industry but also provides processing and graphics components for Microsoft's Xbox and Sony's PlayStation game consoles. The success of these consoles led AMD to report a 70% increase in year-over-year revenue in the second quarter of 2022, with its gaming segment boosting the figure with a rise of 32%.
As an innovative company with business in multiple aspects of the gaming industry, AMD is a far more reliable investment for the long term than cryptocurrency.
2. Apple
While the value of Bitcoin has risen 218% in the last five years, Apple's (NASDAQ: AAPL) share price has increased 259% in the same period despite steep declines in the tech industry throughout 2022. Looking at the past 12 months, Bitcoin's value has plummeted 64.8% while Apple's stock has fallen 1.2%. Apple's strong business has encouraged investors' confidence despite the Nasdaq-100 Technology Sector Index's decline of 34% since last year.
As one of the most innovative companies in the world, Apple is likely to continue seeing gains for many years. The company has a knack for reinventing technology and boosting it into mainstream use. For instance, devices such as smartphones, tablets, Bluetooth headphones, and smartwatches became widely used once Apple launched its own versions.
Moreover, on Sept. 5, Apple won the long-fought war with Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Android when its iPhone OS became the dominant smartphone operating system in the U.S. The iPhone manufacturer now operates over 50% of the country's smartphones. Its dominance in the market, coupled with its walled garden that manages to encourage consumers to creep further into its ecosystem with just one product, is likely to continue offering gains for years to come.
3. Alphabet
Alphabet is easily one of the fastest-growing companies in the world, making its stock a more reliable option than any cryptocurrency. The company offers investors the security of potent brands such as Android, Chrome, YouTube, and Google, each having a substantial market share in their related industries.
The success of these brands has turned Alphabet into a digital advertising titan, with the company retaining a majority market share since at least 2016 and responsible for a 28% share in 2022.
Investors have recently grown concerned that rises in inflation may cause companies to rein in their advertising budgets and therefore hamper Alphabet's revenue. However, one of the company's most significant vehicles for ads, YouTube, has seen immense growth. The video platform boasts 2.6 billion monthly users, leading its ad revenue to increase 25% from 2020 to 2021 and 9.2% in the first two quarters of 2022.
Furthermore, U.S. digital ad spending is expected to rise 31% from $239.89 billion in 2022 to $315.52 billion in 2025, according to Insider Intelligence. As a result, Alphabet may see marginal declines in the immediate future, but it is an excellent investment for those in it for the long haul.
10 stocks we like better than Advanced Micro Devices
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now… and Advanced Micro Devices wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 30, 2022
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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Apple While the value of Bitcoin has risen 218% in the last five years, Apple's (NASDAQ: AAPL) share price has increased 259% in the same period despite steep declines in the tech industry throughout 2022. Moreover, in June, major U.S. cryptocurrency lending company Celsius Network froze withdrawals and transfers because of "extreme" conditions, which sent the crypto market's value falling below $1 trillion. Additionally, AMD has a varied business that works within the PC industry but also provides processing and graphics components for Microsoft's Xbox and Sony's PlayStation game consoles.
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Apple While the value of Bitcoin has risen 218% in the last five years, Apple's (NASDAQ: AAPL) share price has increased 259% in the same period despite steep declines in the tech industry throughout 2022. Advanced Micro Devices Along with Nvidia, Advanced Micro Devices (NASDAQ: AMD) played a critical role in the development of the cryptocurrency market with its graphics processing units (GPUs). Although the company's stock has fallen 59% since January alongside declines in the PC market, AMD's revenue reflects a strong business.
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Apple While the value of Bitcoin has risen 218% in the last five years, Apple's (NASDAQ: AAPL) share price has increased 259% in the same period despite steep declines in the tech industry throughout 2022. Advanced Micro Devices Along with Nvidia, Advanced Micro Devices (NASDAQ: AMD) played a critical role in the development of the cryptocurrency market with its graphics processing units (GPUs). Although the company's stock has fallen 59% since January alongside declines in the PC market, AMD's revenue reflects a strong business.
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Apple While the value of Bitcoin has risen 218% in the last five years, Apple's (NASDAQ: AAPL) share price has increased 259% in the same period despite steep declines in the tech industry throughout 2022. The result led to a decline in demand for GPUs, a market in which AMD boasts the second-largest market share at 20% as of the second quarter of 2022. As an innovative company with business in multiple aspects of the gaming industry, AMD is a far more reliable investment for the long term than cryptocurrency.
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18958.0
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2022-10-10 00:00:00 UTC
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US STOCKS-Nasdaq falls as U.S. export controls on China weigh on chip stocks
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-falls-as-u.s.-export-controls-on-china-weigh-on-chip-stocks
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By Shreyashi Sanyal and Bansari Mayur Kamdar
Oct 10 (Reuters) - The Nasdaq hit a two-year low on Monday as chipmakers bore the brunt of U.S. efforts to hobble China's semiconductor industry, while investors treaded carefully ahead of the start of the earnings season.
The Philadelphia SE Semiconductor index .SOX was down 2.7%, after the Biden administration published a sweeping set of export controls on Friday, including a measure to cut China off from certain semiconductor chips made anywhere in the world with U.S. equipment.
Some of the index's biggest components including Nvidia Corp NVDA.O, Qualcomm Inc QCOM.O, Micron Technology Inc MU.O and Advanced Micro Devices AMD.O fell between 1.3% and 3.3% in early trading.
Major U.S. banks are set to kick off the third-quarter earnings season in earnest on Friday, amid anxiety about the impact of inflationary pressures, rising interest rates and geopolitical uncertainties on their profit.
Earnings for S&P 500 companies have now been estimated to rise 4.1% for the latest three months, down from an increase of 11.1% expected at the beginning of July, as more analysts price in a downturn next year, according to Refinitiv data.
The U.S. bond market was shut for Columbus Day holiday on Monday.
"It's one of those strange quasi-holidays where stock markets are open, but bond markets are closed. We really have little or no economic data and no real hard catalyst for the markets today," said Art Hogan, chief market strategist at B. Riley Wealth.
"Volumes will be low, stocks will likely meander and wait for some real catalyst and for everyone to be back on the playing field tomorrow."
Wall Street fell sharply on Friday following a solid jobs report for September that increased the likelihood of the U.S. Federal Reserve sticking to its aggressive interest rate hiking campaign and likely pushing the U.S. economy into a recession.
Chicago Fed President Charles Evans on Monday joined the chorus of other central bankers backing the Fed's attempt to lower inflation without a sharp rise in unemployment even as it continues raising interest rates.
"We had a pretty sharp down day on Friday and there's very little change in the picture from the Fed's perspective on inflation or how fast rates hikes might continue to occur, said Randy Frederick, managing director of trading and derivatives for the Schwab Center.
"So the volatility is going to be there until we get at least to the November 2nd (Fed) meeting and probably a week after that when the midterms arrive."
Money markets are pricing in an 89% chance of another 75 basis-point hike at the Fed's November meeting. FEDWATCH
At 9:53 a.m. ET the Dow Jones Industrial Average .DJI was up 54.93 points, or 0.19%, at 29,351.72, the S&P 500 .SPX was down 9.31 points, or 0.26%, at 3,630.35 and the Nasdaq Composite .IXIC was down 73.99 points, or 0.69%, at 10,578.41.
Tech behemoths Apple Inc AAPL.O and Microsoft Corp MSFT.O fell 0.9% and 1.5%, respectively, weighing down the S&P 500 technology sector index .SPLRCT.
Advancing issues outnumbered decliners by a 1.11-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.35-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week high and 22 new lows, while the Nasdaq recorded 33 new highs and 200 new lows.
(Reporting by Ankika Biswas and Shreyashi Sanyal in Bengaluru; Additional reporting by Bansari Mayur Kamdar; 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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Tech behemoths Apple Inc AAPL.O and Microsoft Corp MSFT.O fell 0.9% and 1.5%, respectively, weighing down the S&P 500 technology sector index .SPLRCT. By Shreyashi Sanyal and Bansari Mayur Kamdar Oct 10 (Reuters) - The Nasdaq hit a two-year low on Monday as chipmakers bore the brunt of U.S. efforts to hobble China's semiconductor industry, while investors treaded carefully ahead of the start of the earnings season. Wall Street fell sharply on Friday following a solid jobs report for September that increased the likelihood of the U.S. Federal Reserve sticking to its aggressive interest rate hiking campaign and likely pushing the U.S. economy into a recession.
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Tech behemoths Apple Inc AAPL.O and Microsoft Corp MSFT.O fell 0.9% and 1.5%, respectively, weighing down the S&P 500 technology sector index .SPLRCT. By Shreyashi Sanyal and Bansari Mayur Kamdar Oct 10 (Reuters) - The Nasdaq hit a two-year low on Monday as chipmakers bore the brunt of U.S. efforts to hobble China's semiconductor industry, while investors treaded carefully ahead of the start of the earnings season. Declining issues outnumbered advancers for a 1.35-to-1 ratio on the Nasdaq.
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Tech behemoths Apple Inc AAPL.O and Microsoft Corp MSFT.O fell 0.9% and 1.5%, respectively, weighing down the S&P 500 technology sector index .SPLRCT. By Shreyashi Sanyal and Bansari Mayur Kamdar Oct 10 (Reuters) - The Nasdaq hit a two-year low on Monday as chipmakers bore the brunt of U.S. efforts to hobble China's semiconductor industry, while investors treaded carefully ahead of the start of the earnings season. Chicago Fed President Charles Evans on Monday joined the chorus of other central bankers backing the Fed's attempt to lower inflation without a sharp rise in unemployment even as it continues raising interest rates.
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Tech behemoths Apple Inc AAPL.O and Microsoft Corp MSFT.O fell 0.9% and 1.5%, respectively, weighing down the S&P 500 technology sector index .SPLRCT. "It's one of those strange quasi-holidays where stock markets are open, but bond markets are closed. "Volumes will be low, stocks will likely meander and wait for some real catalyst and for everyone to be back on the playing field tomorrow."
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18959.0
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2022-10-10 00:00:00 UTC
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Some Apple workers in Australia vote to strike over pay, benefits
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https://www.nasdaq.com/articles/some-apple-workers-in-australia-vote-to-strike-over-pay-benefits
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By Byron Kaye
SYDNEY, Oct 11 (Reuters) - A union representing Australian employees of iPhone maker Apple Inc AAPL.O voted to strike due to lack of progress on wage negotiations, a union official said on Tuesday.
The one-hour strike planned for Oct. 18 is set to disrupt the tech company's store operations in the country and add to the pressure it is facing elsewhere on industrial relations.
The planned strike will involve about 150 of Apple's 4,000 Australian employees who are represented by the Retail and Fast Food Workers Union (RAFFWU), restricting most customer services in at least three of the company's 22 stores in the country, the union said.
The strike would be the first for Apple in Australia, according to the RAFFWU, and widens the company's global exposure to collective bargaining just as soaring cost-of-living pressures prompt U.S. employees of Apple and other large firms like Amazon.com Inc AMZN.Oto unionise.
In Australia, Apple set off a round of union talks by proposing in August a new set of locked-in wage rises and conditions. The RAFFWU and two other unions went to an industrial arbiter in September seeking more time to negotiate, which was granted, the unions and Apple have said.
"We've come to the end of that today and we still aren't anywhere near a satisfactory agreement, so last night members unanimously endorsed that path," RAFFWU federal secretary Josh Cullinan told Reuters by phone.
"When large groups of workers walk off, that will have an impact."
RAFFWU-represented workers in most Australian Apple stores would strike but the impact would be strongest in outlets with more representation, Cullinan said.
The three unions say they want Apple to guarantee wage increases that reflect inflation - which is tracking around 7% in Australia, double the central bank's target range - and weekends of two consecutive days rather than being split.
Apple says its minimum pay rates are 17% above the industry minimum and that full-time workers get guaranteed weekends.
"We are committed to providing the best possible experience (for our employees), including very strong compensation and benefits, annual stock grants and comprehensive leave policies, all of which exceed Australian industry standards," an Apple spokesperson said on Tuesday.
(Reporting by Byron Kaye; Editing by Muralikumar Anantharaman)
((byron.kaye@thomsonreuters.com; +612 9171 7541; @byronkaye;))
The views and 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 Byron Kaye SYDNEY, Oct 11 (Reuters) - A union representing Australian employees of iPhone maker Apple Inc AAPL.O voted to strike due to lack of progress on wage negotiations, a union official said on Tuesday. "We've come to the end of that today and we still aren't anywhere near a satisfactory agreement, so last night members unanimously endorsed that path," RAFFWU federal secretary Josh Cullinan told Reuters by phone. The three unions say they want Apple to guarantee wage increases that reflect inflation - which is tracking around 7% in Australia, double the central bank's target range - and weekends of two consecutive days rather than being split.
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By Byron Kaye SYDNEY, Oct 11 (Reuters) - A union representing Australian employees of iPhone maker Apple Inc AAPL.O voted to strike due to lack of progress on wage negotiations, a union official said on Tuesday. The planned strike will involve about 150 of Apple's 4,000 Australian employees who are represented by the Retail and Fast Food Workers Union (RAFFWU), restricting most customer services in at least three of the company's 22 stores in the country, the union said. RAFFWU-represented workers in most Australian Apple stores would strike but the impact would be strongest in outlets with more representation, Cullinan said.
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By Byron Kaye SYDNEY, Oct 11 (Reuters) - A union representing Australian employees of iPhone maker Apple Inc AAPL.O voted to strike due to lack of progress on wage negotiations, a union official said on Tuesday. The planned strike will involve about 150 of Apple's 4,000 Australian employees who are represented by the Retail and Fast Food Workers Union (RAFFWU), restricting most customer services in at least three of the company's 22 stores in the country, the union said. The strike would be the first for Apple in Australia, according to the RAFFWU, and widens the company's global exposure to collective bargaining just as soaring cost-of-living pressures prompt U.S. employees of Apple and other large firms like Amazon.com Inc AMZN.Oto unionise.
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By Byron Kaye SYDNEY, Oct 11 (Reuters) - A union representing Australian employees of iPhone maker Apple Inc AAPL.O voted to strike due to lack of progress on wage negotiations, a union official said on Tuesday. The one-hour strike planned for Oct. 18 is set to disrupt the tech company's store operations in the country and add to the pressure it is facing elsewhere on industrial relations. The planned strike will involve about 150 of Apple's 4,000 Australian employees who are represented by the Retail and Fast Food Workers Union (RAFFWU), restricting most customer services in at least three of the company's 22 stores in the country, the union said.
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18960.0
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2022-10-10 00:00:00 UTC
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Best Stocks To Invest In Right Now? 2 Warren Buffett Stocks To Watch
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https://www.nasdaq.com/articles/best-stocks-to-invest-in-right-now-2-warren-buffett-stocks-to-watch
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Warren Buffett is one of the most successful investors of all time, so it’s no surprise that many people are interested in the stocks that he owns. Buffett’s company, Berkshire Hathaway, currently holds stakes in a number of well-known companies, including Apple (NASDAQ: AAPL), Coca-Cola (NYSE: KO), and Bank of America (NYSE: BAC).
While Buffett doesn’t buy stocks with the intention of flipping them quickly for a profit, he does have a long-term perspective and is known for holding onto companies for years. This strategy has paid off handsomely for him over the years, and Berkshire Hathaway is now worth billions of dollars. If you’re thinking about investing in Warren Buffett stocks, it’s worth doing some research to see if they fit your own investment goals. With this in mind, here are two Warren Buffett stocks to watch in the stock market today.
Warren Buffett Stocks To Watch Right Now
The Kraft Heinz Company (NASDAQ: KHC)
Chevron Corporation (NYSE: CVX)
1. Kraft Heinz Co. (KHC Stock)
First up, Kraft Heinz Company (KHC) is one of the world’s largest food and beverage companies, with a portfolio that includes some of the most iconic and trusted brands in the industry. The company’s products are sold in nearly 200 countries and territories. Kraft Heinz’s brands include Kraft, Heinz, Oscar Mayer, Planters, Philadelphia, Kool-Aid, Lunchables, Capri Sun, Gevalia, Maxwell House, Grey Poupon, and more.
KHC Recent Stock News
In recent news, Kraft Heinz Company just last week announced the release of its third-quarter 2022 financial results on Wednesday, October 26, 2022. In the meantime, let’s take a look at how the company performed in the second quarter of 2022.
Back in July, Kraft Heinz Company reported 2nd Quarter 2022 earnings of $0.70 per share with revenue of $6.6 billion. In addition, the company reported it estimates full-year 2022 revenue of approximately $28.0 billion. What’s more just last month, KHC announced that it has reaffirmed its full-year 2022 outlook.
In the announcement, the company had this to say, “We have successfully completed two phases of our ongoing transformation – resetting our foundation and implementing our operating model,” said Patricio. “With the right people, portfolio and capabilities in place, we now look ahead to accelerating profitable growth. Achieving greatness will also include a focus on personalized marketing and a strong emphasis on innovation. I am excited about what we have accomplished so far and how it positions us for the future, but we still have work to do.“
KHC Stock Chart
During Monday’s lunchtime trading session, shares of KHC stock are up 1.70% trading at $33.59 per share.
Source: TD Ameritrade TOS
[Read More] 3 Gold Stocks For Your October 2022 Watchlist
2. Chevron Corporation (CVX Stock)
Next, Chevron Corporation (CVX) is an American multinational energy corporation. Chevron is engaged in every aspect of the oil, natural gas, and geothermal energy industries. Specifically, Chevron is one of the world’s largest oil companies, with production opportunities spanning the globe. Chevron also has a significant presence in refining, chemical manufacturing, and marketing.
CVX Recent Stock News
At the beginning of this month, Chevron announced that will report its third-quarter 2022 financial results on Friday, October 28, 2022. Let’s quickly recap how Chevron did in the second quarter of 2022.
In July, Chevron reported a beat for its second-quarter financial results for its 2nd Quarter 2022 financials results. In detail, the company reported earnings of $5.82 per share and revenue of $68.8 billion for Q2 2022. Additionally, Chevron reported a revenue increase of 83% for the second quarter versus the same period in 2021. What’s more, the company also announced its cash flow from operations for the second quarter was $13.8 billion, while generating $10.6 billion in free cash flow in the second quarter.
CVX Stock Chart
Meanwhile, during Monday’s early afternoon trading action, shares of CVX stock are trading slightly lower by 1.42% at $157.75 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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Buffett’s company, Berkshire Hathaway, currently holds stakes in a number of well-known companies, including Apple (NASDAQ: AAPL), Coca-Cola (NYSE: KO), and Bank of America (NYSE: BAC). While Buffett doesn’t buy stocks with the intention of flipping them quickly for a profit, he does have a long-term perspective and is known for holding onto companies for years. CVX Recent Stock News At the beginning of this month, Chevron announced that will report its third-quarter 2022 financial results on Friday, October 28, 2022.
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Buffett’s company, Berkshire Hathaway, currently holds stakes in a number of well-known companies, including Apple (NASDAQ: AAPL), Coca-Cola (NYSE: KO), and Bank of America (NYSE: BAC). Warren Buffett Stocks To Watch Right Now The Kraft Heinz Company (NASDAQ: KHC) Chevron Corporation (NYSE: CVX) 1. KHC Recent Stock News In recent news, Kraft Heinz Company just last week announced the release of its third-quarter 2022 financial results on Wednesday, October 26, 2022.
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Buffett’s company, Berkshire Hathaway, currently holds stakes in a number of well-known companies, including Apple (NASDAQ: AAPL), Coca-Cola (NYSE: KO), and Bank of America (NYSE: BAC). Warren Buffett Stocks To Watch Right Now The Kraft Heinz Company (NASDAQ: KHC) Chevron Corporation (NYSE: CVX) 1. Kraft Heinz Co. (KHC Stock) First up, Kraft Heinz Company (KHC) is one of the world’s largest food and beverage companies, with a portfolio that includes some of the most iconic and trusted brands in the industry.
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Buffett’s company, Berkshire Hathaway, currently holds stakes in a number of well-known companies, including Apple (NASDAQ: AAPL), Coca-Cola (NYSE: KO), and Bank of America (NYSE: BAC). Warren Buffett Stocks To Watch Right Now The Kraft Heinz Company (NASDAQ: KHC) Chevron Corporation (NYSE: CVX) 1. Back in July, Kraft Heinz Company reported 2nd Quarter 2022 earnings of $0.70 per share with revenue of $6.6 billion.
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2022-10-10 00:00:00 UTC
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Sirius XM (SIRI) Introduces Grown Folk Jamz for R&B Fans
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AAPL
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https://www.nasdaq.com/articles/sirius-xm-siri-introduces-grown-folk-jamz-for-rb-fans
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Sirius XM SIRI recently added Grown Folk Jamz to its Project Amplify to diversify its on-air programming. The station available now on SiriusXM channel 362 will feature music hits from R&B, Gospel, Old School, Hip-Hop, Smooth Jazz, Funk, Classic Soul and Love Ballads.
Grown Folk Jamz will be served by Todd “T-O” Reynolds as the program director for its SiriusXM channel while the legendary voice of Al Twitty, CEO of Urban Radio Group, will continue to provide imaging for it.
Project Amplify is a commitment Sirius XM made to the Federal Communications Commission in connection with the merger of Sirius and XM in 2008, aimed at promoting diverse viewpoints across Sirius XM’s Music and Talk channels.
This diversification of Sirius XM with Grown Folks Jamz, which has always been highly appreciated, provides a timeless blend of music to listeners and is expected to boost users of the company.
Sirius XM Expands its Channel Offerings
Sirius XM has been adding multiple channels under Project Amplify to gain traction. It recently announced the launch of Holy Culture Radio (ch. 154), a new spiritually-inspired talk and music channel. Other Project Amplify channels include HUR Voices (ch.141) and HBCU Radio (ch.142) by Howard University, Korea Today (ch. 144), BYU Radio (ch. 143), En Vivo (ch. 152) and SLAM! Radio (ch. 145).
The company is also entering partnerships. In second-quarter fiscal 2022, it closed a new agreement with Comcast, its first broadband TV provider. The agreement includes the launch of a fully integrated SiriusXM audio experience to millions of Comcast customers on the Xfinity platform, which is also expected to support video later this year.
Sirius XM Holdings Inc. Price and Consensus
Sirius XM Holdings Inc. price-consensus-chart | Sirius XM Holdings Inc. Quote
Sirius XM created top-up channels for Black Music Appreciation Month to celebrate the music of black artists such as Whitney Houston, Tupac, Biggie and Prince. It hosted a diverse roster of events including a concert cruise in New York City with Yacht rock stars, Kenny Loggins and Christopher Cross and small stage series concerts with the Grammy award-winning rapper, two Chainz in Atlanta and Def Leppard in Los Angeles.
These have helped the company to reach out and engage with new customers. Sirius XM added 23,000 net new self-pay subscribers and 54,000 paid promotional subscribers in the second-quarter fiscal 2022. The subscription revenues also grew 5% to $1.7 billion.
Sirius XM plans to deliver improved in-app personalization later this year to drive content discovery and enhance CarPlay and Android auto integration and continue to expand and innovate its product offerings. This is expected to boost its top line.
What's in Store for Sirius XM in the Rest of 2022?
Sirius XM currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company’s margins are under pressure as increasing Original Equipment Manufacturer (“OEM”) installations and higher OEM hardware subsidy rates are resulting in higher subscriber acquisition costs. The growing music licensing costs are another headwind.
Sirius XM’s revenues have a high dependence on the auto industry as it provides radio service to it. A slowdown in the sale of new or used cars can affect the company’s growth.
Sirius XM shares have declined 7.5% year to date compared with the Zacks Consumer Discretionary Sector, which declined 40.9%. Sirius is also facing stiff competition from Apple AAPL, Spotify SPOT and Alphabet GOOGL.
Apple’s shares have declined 21.1% year to date. Apple continues to bolster its presence in the music streaming space, backed by acquisitions of Shazam and Asaii. The company recently got into the Augmented Reality (“AR”) market, differentiating its music service offerings and AR initiatives.
Spotify’s shares have lost 62.4% year to date. Spotify’s partnership with Samsung and Google is expected to boost its subscriber base. Its solid focus on the personalization of playlists enhances the music experience for users.
Alphabet’s shares have declined 31.8% in the same time frame. Alphabet’s YouTube Music is enhancing its features as it recently allowed users to get an overflow menu of add to playlist, play next, and add to queue on a bottom toolbar with the addition of the multi-select feature. They will also get to see the track length on the right while checking an album or a song.
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To read this article on Zacks.com click here.
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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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Sirius is also facing stiff competition from Apple AAPL, Spotify SPOT and Alphabet GOOGL. Apple Inc. (AAPL): Free Stock Analysis Report Grown Folk Jamz will be served by Todd “T-O” Reynolds as the program director for its SiriusXM channel while the legendary voice of Al Twitty, CEO of Urban Radio Group, will continue to provide imaging for it.
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Sirius is also facing stiff competition from Apple AAPL, Spotify SPOT and Alphabet GOOGL. Apple Inc. (AAPL): Free Stock Analysis Report Sirius XM SIRI recently added Grown Folk Jamz to its Project Amplify to diversify its on-air programming.
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Sirius is also facing stiff competition from Apple AAPL, Spotify SPOT and Alphabet GOOGL. Apple Inc. (AAPL): Free Stock Analysis Report Project Amplify is a commitment Sirius XM made to the Federal Communications Commission in connection with the merger of Sirius and XM in 2008, aimed at promoting diverse viewpoints across Sirius XM’s Music and Talk channels.
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Sirius is also facing stiff competition from Apple AAPL, Spotify SPOT and Alphabet GOOGL. Apple Inc. (AAPL): Free Stock Analysis Report Sirius XM Expands its Channel Offerings Sirius XM has been adding multiple channels under Project Amplify to gain traction.
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2022-10-10 00:00:00 UTC
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Best Stock to Buy: Nvidia vs. Apple
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AAPL
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https://www.nasdaq.com/articles/best-stock-to-buy%3A-nvidia-vs.-apple
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Nvidia (NASDAQ: NVDA) and Apple (NASDAQ: AAPL) are two of the most innovative companies in the world. It's understandable that stock market investors would want to know which stock is a better buy. In this video, I will answer the question of which is a better buy.
Stock prices used were the afternoon prices of Oct. 8, 2022. The video was published on Oct. 10, 2022.
10 stocks we like better than Nvidia
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Nvidia 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
Parkev Tatevosian has positions in Apple. The Motley Fool has positions in and recommends Apple 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. Parkev Tatevosian 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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Nvidia (NASDAQ: NVDA) and Apple (NASDAQ: AAPL) are two of the most innovative companies in the world. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services.
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Nvidia (NASDAQ: NVDA) and Apple (NASDAQ: AAPL) are two of the most innovative companies in the world. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Apple and Nvidia.
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Nvidia (NASDAQ: NVDA) and Apple (NASDAQ: AAPL) are two of the most innovative companies in the world. It's understandable that stock market investors would want to know which stock is a better buy. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Parkev Tatevosian has positions in Apple.
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Nvidia (NASDAQ: NVDA) and Apple (NASDAQ: AAPL) are two of the most innovative companies in the world. It's understandable that stock market investors would want to know which stock is a better buy. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Parkev Tatevosian has positions in Apple.
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18963.0
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2022-10-10 00:00:00 UTC
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Notable ETF Inflow Detected - IVV, AAPL, MSFT, NVDA
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https://www.nasdaq.com/articles/notable-etf-inflow-detected-ivv-aapl-msft-nvda
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $637.4 million dollar inflow -- that's a 0.2% increase week over week in outstanding units (from 748,000,000 to 749,750,000). Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is trading flat, Microsoft Corporation (Symbol: MSFT) is off about 1.4%, and NVIDIA Corp (Symbol: NVDA) is lower by about 3.5%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average:
Looking at the chart above, IVV's low point in its 52 week range is $358.53 per share, with $482.07 as the 52 week high point — that compares with a last trade of $363.93. 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 IVV, in trading today Apple Inc (Symbol: AAPL) is trading flat, Microsoft Corporation (Symbol: MSFT) is off about 1.4%, and NVIDIA Corp (Symbol: NVDA) is lower by about 3.5%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $358.53 per share, with $482.07 as the 52 week high point — that compares with a last trade of $363.93. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is trading flat, Microsoft Corporation (Symbol: MSFT) is off about 1.4%, and NVIDIA Corp (Symbol: NVDA) is lower by about 3.5%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $358.53 per share, with $482.07 as the 52 week high point — that compares with a last trade of $363.93. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is trading flat, Microsoft Corporation (Symbol: MSFT) is off about 1.4%, and NVIDIA Corp (Symbol: NVDA) is lower by about 3.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $637.4 million dollar inflow -- that's a 0.2% increase week over week in outstanding units (from 748,000,000 to 749,750,000). For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $358.53 per share, with $482.07 as the 52 week high point — that compares with a last trade of $363.93.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is trading flat, Microsoft Corporation (Symbol: MSFT) is off about 1.4%, and NVIDIA Corp (Symbol: NVDA) is lower by about 3.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $637.4 million dollar inflow -- that's a 0.2% increase week over week in outstanding units (from 748,000,000 to 749,750,000). For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $358.53 per share, with $482.07 as the 52 week high point — that compares with a last trade of $363.93.
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18964.0
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2022-10-10 00:00:00 UTC
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India's IT ministry says Apple AirPods to be made in India - CNBC TV18
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AAPL
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https://www.nasdaq.com/articles/indias-it-ministry-says-apple-airpods-to-be-made-in-india-cnbc-tv18
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NEW DELHI, Oct 10 (Reuters) - Apple Inc's AAPL.O wireless earphones AirPods will be manufactured in India, television channel CNBC TV18 reported on Monday, citing the country's IT ministry.
The iPhone 14 will be manufactured by Dec. 2022 at Foxconn's facility near Chennai in southern India, CNBC TV18 added.
Apple did not immediately respond to a request for comment.
(Reporting by Tanvi Mehta; Editing by Toby Chopra)
((tanvi.mehta@thomsonreuters.com; https://twitter.com/TanviMehta710;))
The views and 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 DELHI, Oct 10 (Reuters) - Apple Inc's AAPL.O wireless earphones AirPods will be manufactured in India, television channel CNBC TV18 reported on Monday, citing the country's IT ministry. The iPhone 14 will be manufactured by Dec. 2022 at Foxconn's facility near Chennai in southern India, CNBC TV18 added. (Reporting by Tanvi Mehta; Editing by Toby Chopra) ((tanvi.mehta@thomsonreuters.com; https://twitter.com/TanviMehta710;)) The views and 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 DELHI, Oct 10 (Reuters) - Apple Inc's AAPL.O wireless earphones AirPods will be manufactured in India, television channel CNBC TV18 reported on Monday, citing the country's IT ministry. The iPhone 14 will be manufactured by Dec. 2022 at Foxconn's facility near Chennai in southern India, CNBC TV18 added. (Reporting by Tanvi Mehta; Editing by Toby Chopra) ((tanvi.mehta@thomsonreuters.com; https://twitter.com/TanviMehta710;)) The views and 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 DELHI, Oct 10 (Reuters) - Apple Inc's AAPL.O wireless earphones AirPods will be manufactured in India, television channel CNBC TV18 reported on Monday, citing the country's IT ministry. The iPhone 14 will be manufactured by Dec. 2022 at Foxconn's facility near Chennai in southern India, CNBC TV18 added. (Reporting by Tanvi Mehta; Editing by Toby Chopra) ((tanvi.mehta@thomsonreuters.com; https://twitter.com/TanviMehta710;)) The views and 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 DELHI, Oct 10 (Reuters) - Apple Inc's AAPL.O wireless earphones AirPods will be manufactured in India, television channel CNBC TV18 reported on Monday, citing the country's IT ministry. The iPhone 14 will be manufactured by Dec. 2022 at Foxconn's facility near Chennai in southern India, CNBC TV18 added. Apple did not immediately respond to a request for comment.
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18965.0
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2022-10-10 00:00:00 UTC
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US STOCKS-Futures slip on escalating Ukraine war, dip in chip stocks
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-slip-on-escalating-ukraine-war-dip-in-chip-stocks
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By Ankika Biswas
Oct 10 (Reuters) - U.S. stock index futures slipped on Monday, as an intensifying war in Ukraine and U.S. curbs on chip technology exports to China hit investors' appetite for risk assets ahead of the upcoming earnings season.
Major U.S. banks are set to kick off the earnings season this week, in what is expected to be a roller-coaster quarter for companies, which have been dealing with inflationary pressures, rising interest rates and geopolitical uncertainties.
Russia struck Ukrainian cities during rush hour on Monday morning, killing civilians and destroying infrastructure after President Vladimir Putin declared an explosion on the bridge to Crimea as a terrorist attack.
The Biden administration's move to hobble China's chip industry with sweeping new export rules hit shares of Intel Corp INTC.O, Nvidia Corp NVDA.O, Qualcomm Inc QCOM.O, Micron Technology Inc MU.O and Advanced Micro Devices AMD.O, all of which fell between 0.2% and 1.2%.
As analysts increasingly price in a downturn next year, earnings for S&P 500 companies for the third quarter have now been estimated to rise 4.1%, down from an increase of 11.1% at the beginning of July, according to Refinitiv data.
At 6:47 a.m. ET, Dow e-minis 1YMcv1 were down 54 points, or 0.18%, S&P 500 e-minis EScv1 were down 11.25 points, or 0.31%, and Nasdaq 100 e-minis NQcv1 were down 50 points, or 0.45%.
The U.S. bond market was shut on Monday on account of Columbus Day, which could lead to thin trading volumes.
Wall Street fell sharply on Friday following a solid jobs report for September that increased the likelihood of the U.S. Federal Reserve sticking to its aggressive interest rate hiking campaign and likely pushing the U.S. economy into a recession.
Money markets are pricing in an 89% chance of another 75 basis-point hike at the Fed's November meeting. FEDWATCH
As economic data continues to point to price pressures, investors will keep a close watch on comments from Fed's Chicago President Charles Evans and Vice Chair Lael Brainard.
With yields on the 10-year Treasury note US10YT=RR rising to a near two-week high, rate-sensitive technology and other growth names such as Alphabet Inc GOOGL.O, Apple Inc AAPL.O and Meta Platforms Inc META.O were in the red.
Tesla Inc TSLA.O dipped in premarket trading after RBC Capital Markets expressed concerns on overall demand, while cutting its price target and flagging potential risk to fourth-quarter deliveries in the United States.
(Reporting by Ankika Biswas; 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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With yields on the 10-year Treasury note US10YT=RR rising to a near two-week high, rate-sensitive technology and other growth names such as Alphabet Inc GOOGL.O, Apple Inc AAPL.O and Meta Platforms Inc META.O were in the red. By Ankika Biswas Oct 10 (Reuters) - U.S. stock index futures slipped on Monday, as an intensifying war in Ukraine and U.S. curbs on chip technology exports to China hit investors' appetite for risk assets ahead of the upcoming earnings season. Russia struck Ukrainian cities during rush hour on Monday morning, killing civilians and destroying infrastructure after President Vladimir Putin declared an explosion on the bridge to Crimea as a terrorist attack.
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With yields on the 10-year Treasury note US10YT=RR rising to a near two-week high, rate-sensitive technology and other growth names such as Alphabet Inc GOOGL.O, Apple Inc AAPL.O and Meta Platforms Inc META.O were in the red. By Ankika Biswas Oct 10 (Reuters) - U.S. stock index futures slipped on Monday, as an intensifying war in Ukraine and U.S. curbs on chip technology exports to China hit investors' appetite for risk assets ahead of the upcoming earnings season. Major U.S. banks are set to kick off the earnings season this week, in what is expected to be a roller-coaster quarter for companies, which have been dealing with inflationary pressures, rising interest rates and geopolitical uncertainties.
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With yields on the 10-year Treasury note US10YT=RR rising to a near two-week high, rate-sensitive technology and other growth names such as Alphabet Inc GOOGL.O, Apple Inc AAPL.O and Meta Platforms Inc META.O were in the red. By Ankika Biswas Oct 10 (Reuters) - U.S. stock index futures slipped on Monday, as an intensifying war in Ukraine and U.S. curbs on chip technology exports to China hit investors' appetite for risk assets ahead of the upcoming earnings season. As analysts increasingly price in a downturn next year, earnings for S&P 500 companies for the third quarter have now been estimated to rise 4.1%, down from an increase of 11.1% at the beginning of July, according to Refinitiv data.
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With yields on the 10-year Treasury note US10YT=RR rising to a near two-week high, rate-sensitive technology and other growth names such as Alphabet Inc GOOGL.O, Apple Inc AAPL.O and Meta Platforms Inc META.O were in the red. By Ankika Biswas Oct 10 (Reuters) - U.S. stock index futures slipped on Monday, as an intensifying war in Ukraine and U.S. curbs on chip technology exports to China hit investors' appetite for risk assets ahead of the upcoming earnings season. Major U.S. banks are set to kick off the earnings season this week, in what is expected to be a roller-coaster quarter for companies, which have been dealing with inflationary pressures, rising interest rates and geopolitical uncertainties.
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2022-10-10 00:00:00 UTC
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2 Stocks to Buy With Dividends Yielding More Than 3%
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https://www.nasdaq.com/articles/2-stocks-to-buy-with-dividends-yielding-more-than-3-3
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With interest rates and inflation running high, it's perhaps never been more important to hold stocks that pay not just dividends, but rising dividends.
Given the beating the broader semiconductor sector has taken, a great opportunity has opened up in two defensive chip names that should not only survive any downturn, but actually grow their dividends through it, leading to years of rising passive income for their investors.
Texas Instruments
Texas Instruments (NASDAQ: TXN) has some of the more compelling characteristics for the defensive dividend investor. The company designs and manufactures a large portfolio of analog and embedded chips, with a diverse customer base and structurally low manufacturing costs, ensuring high margins.
Over the past decade, TI has targeted the industrial and automotive chip sectors, given that autos and factories will become more automated and use more chips per unit each and every year. That's looking like a good bet these days, as those end markets still appear strong, even though consumer electronics markets are in decline in 2022. Since 2013, Texas Instruments' auto and industrial exposure has risen from 42% to 62% of revenue.
Texas Instruments currently yields 3.1%, but that yield has grown at a stunning 21% annualized rate from 2004 to 2021. During that time, free cash flow per share has grown 12% annually and shares outstanding were reduced 46%.
In September, TI announced another 8% dividend increase. That may seem underwhelming given its past; however, the company is embarking on a higher investment period over the next three years, which will greatly expand capacity to support a near-doubling of revenue through the end of the decade.
In any case, TI has held up relatively well this year, only down slightly, while the broader chip index is down nearly 40%. That outperformance shows the faith investors have in this blue chip company's sustainable profit growth.
Broadcom
Another defensive chip name is Broadcom (NASDAQ: AVGO), which currently yields 3.6%, and also comes with a history of dividend growth. In fact, Broadcom has increased its dividend by a whopping 43% annualized rate between 2016 and 2022, increasing the payout nearly eight and half times over.
Under CEO Hock Tan, Broadcom has grown via acquisitions, which management then folds into Broadcom's corporate infrastructure and sales force, expanding margins.
After diversifying its chip portfolio, mostly across enterprise and industrial applications, management interestingly began acquiring software companies, with the acquisitions of CA Technologies in 2018 and Symantec in 2019. Most recently, Broadcom made an offer to buy VMWare (NYSE: VMW), its biggest acquisition yet, for $61 billion in cash and stock.
The software segment brings in recurring subscription revenue, which helps even out the fluctuations in the more cyclical semiconductor segment. Since Broadcom has a lot of enterprise exposure, it can also bundle its infrastructure, security, and private cloud software with corresponding chips.
Still, even Broadcom's semiconductor portfolio appears resilient in the face of this economic slowdown. Broadcom beat revenue and earnings expectations last quarter and even saw its backlog grow to $31 billion -- nearly one year of revenue. Its semiconductor revenues grew 29% fueling overall revenue growth of 23%.
That could be because Broadcom makes a variety of chips for networking, enterprise and industrial customers, which seem to be more in-demand than consumer electronic chips today. Even though Broadcom has wireless exposure, its big client is Apple, which seems to be faring much better than other handset makers in this environment.
In any case, Broadcom management clearly knows how to target desirable markets, make acquisitions, and expand margins over time. That should fuel continued dividend growth for years to come.
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Billy Duberstein has positions in Apple, Broadcom, and Texas Instruments and has the following options: short January 2023 $210 calls on Apple. His clients may own shares of the companies mentoned. The Motley Fool has positions in and recommends Apple and Texas Instruments. The Motley Fool recommends Broadcom and VMware 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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Given the beating the broader semiconductor sector has taken, a great opportunity has opened up in two defensive chip names that should not only survive any downturn, but actually grow their dividends through it, leading to years of rising passive income for their investors. That may seem underwhelming given its past; however, the company is embarking on a higher investment period over the next three years, which will greatly expand capacity to support a near-doubling of revenue through the end of the decade. After diversifying its chip portfolio, mostly across enterprise and industrial applications, management interestingly began acquiring software companies, with the acquisitions of CA Technologies in 2018 and Symantec in 2019.
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Texas Instruments Texas Instruments (NASDAQ: TXN) has some of the more compelling characteristics for the defensive dividend investor. In any case, Broadcom management clearly knows how to target desirable markets, make acquisitions, and expand margins over time. The Motley Fool recommends Broadcom and VMware and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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Texas Instruments Texas Instruments (NASDAQ: TXN) has some of the more compelling characteristics for the defensive dividend investor. Broadcom Another defensive chip name is Broadcom (NASDAQ: AVGO), which currently yields 3.6%, and also comes with a history of dividend growth. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Billy Duberstein has positions in Apple, Broadcom, and Texas Instruments and has the following options: short January 2023 $210 calls on Apple.
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Since 2013, Texas Instruments' auto and industrial exposure has risen from 42% to 62% of revenue. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Billy Duberstein has positions in Apple, Broadcom, and Texas Instruments and has the following options: short January 2023 $210 calls on Apple. The Motley Fool has positions in and recommends Apple and Texas Instruments.
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18967.0
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2022-10-10 00:00:00 UTC
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2 High-Conviction Growth Stocks Down 51.4% and 70.9% to Buy Now and Hold Forever
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AAPL
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https://www.nasdaq.com/articles/2-high-conviction-growth-stocks-down-51.4-and-70.9-to-buy-now-and-hold-forever
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Stock markets are falling fast and nobody knows when they'll find a bottom. This summer it briefly seemed like the major market indices were on the road to recovery, but those gains were quickly wiped away.
At times like these, there's a strong temptation to remain on the sidelines until we can be sure that market bears are sound asleep in their caves. There's a big problem with this strategy, though. Nobody knows where the bottom is exactly.
Image source: Getty Images.
Instead of trying to time the market, it makes a lot more sense to consistently scoop up beaten-down shares of the best businesses you can find. These two stocks have fallen 51.4% and 70.9% from the peak prices they reached in 2021. We can't predict when their stock prices will recover, but we can reasonably expect their underlying businesses to deliver rapidly growing profits for many years to come.
1. Doximity
Doximity (NYSE: DOCS) is a digital platform for U.S. medical professionals. At its heart is a social media operation that serves its members a curated feed containing extremely lucrative advertisements. With an estimated 80% of the nation's physicians on board, it's far and away the country's largest network of healthcare providers.
Shares of Doximity got off to a strong start following the company's IPO in June 2021. Unfortunately, the stock has been beaten down 70.9% from the all-time high it set last September.
Unlike most social media platforms, Doximity's members can't upload their own posts in an attempt to go viral. Instead, Doximity entices physicians, physician assistants, and nurse practitioners with tools that make their jobs easier.
Doximity's most popular tool is Doximity Dialer. This is an application that lets physicians use their office phone numbers from their personal smartphones to contact patients in a setting that complies with strict privacy laws. During the quarter that ended June 30, 2022, care providers used Dialer to contact patients around 200,000 times per day.
Doximity is a high-conviction stock because giving physicians the tools they want is clearly a profitable business. During the quarter that ended June 30, the company reported a $22.4 million net profit. That worked out to an impressive 25% of topline revenue. With a commanding lead in the niche market it created, Doximity's bottom line could explode higher in the years to come.
2. Duolingo
Since launching in 2012, Duolingo (NASDAQ: DUOL) has become the world's most popular way to learn languages. In fact, Duolingo is the most popular education app on Apple's app store and Alphabet's Google Play Store.
Investors noticing the company's success drove the stock through the roof following its IPO last summer. Sadly, a market scorned for growth stocks has hammered shares of Duolingo down 51.4% from their peak price last fall.
Dramatic stock price disasters like these are usually associated with poor operating performance, but that isn't the case here. During the second quarter, the company reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) that rose 13.5% year over year to $4.2 million.
Duolingo's a high-conviction buy right now because it's converting subscribers with a learning platform that is constantly improving. Everyone can use the Duolingo app for free but there were 3.3 million paid subscribers on the app at the end of June. That was a staggering 71% more than the company reported a year earlier.
Duolingo's development teams are constantly running tests to determine which features convert free users to paid subscribers and its working. The number of paid subscribers at the end of the second quarter was equal to 25% of daily active users during the three-month period. A year earlier, just 20.8% of daily active users had paid subscriptions.
With 49.5 million monthly active users at the end of June, Duolingo has more opportunities to test new lessons and features than its competitors. This should allow it to stay several steps ahead of any potential competition in the long run. With a strong advantage that keeps getting stronger, it's just a matter of time before the stock price recovers and climbs to new heights.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Cory Renauer has positions in Doximity. and Duolingo. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, and Doximity. 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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We can't predict when their stock prices will recover, but we can reasonably expect their underlying businesses to deliver rapidly growing profits for many years to come. This is an application that lets physicians use their office phone numbers from their personal smartphones to contact patients in a setting that complies with strict privacy laws. Duolingo's development teams are constantly running tests to determine which features convert free users to paid subscribers and its working.
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Unlike most social media platforms, Doximity's members can't upload their own posts in an attempt to go viral. Duolingo's development teams are constantly running tests to determine which features convert free users to paid subscribers and its working. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, and Doximity.
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Sadly, a market scorned for growth stocks has hammered shares of Duolingo down 51.4% from their peak price last fall. 10 stocks we like better than Doximity When our award-winning analyst team has a stock tip, it can pay to listen. 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.
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Doximity's most popular tool is Doximity Dialer. During the quarter that ended June 30, 2022, care providers used Dialer to contact patients around 200,000 times per day. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, and Doximity.
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18968.0
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2022-10-10 00:00:00 UTC
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AVID Launches Pro Tools Intro Artist for New Music Makers
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AAPL
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https://www.nasdaq.com/articles/avid-launches-pro-tools-intro-artist-for-new-music-makers
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Avid Technology AVID recently announced the debut of Pro Tools Intro, specifically designed for aspiring creatives who are willing to create music, podcasts, songs, loops and beats in any genre.
Pro Tools Intro is available as a download option for free and will introduce Pro Tools Digital Audio Workstation to new creators. Also, this platform will help aspiring musicians and audio artists connect with other notable artists and professionals who use the Pro Tools system.
Avid’s recent launch is in accordance with its strategic plan to introduce features that attract new aspiring artists, specifically millennials and Gen Z. In September, Avid announced that its Avid Learning Academy (ALA) program has transitioned to Pro Tools Artist, which will give every student aspiring to build a career in media and enrolled in the program free access to the new Pro Tools Artist (PTA) software.
Avid introduced the PTA software in late April 2022 as a new lower-priced tier directed at the music creation community. Music creators can use the software to make beats, write songs, record vocals and instruments and mix studio-quality music.
The initial result from the Pro Tools Artist offering reflected solid demand for the product, which helped to increase Avid’s subscriber base and impacted subscription revenue growth positively in the second quarter of 2022. Avid is looking to continue boosting subscription revenue growth in the coming quarters with the launch of its latest Pro Tools Intro.
Avid Technology, Inc. Price and Consensus
Avid Technology, Inc. price-consensus-chart | Avid Technology, Inc. Quote
AVID Driving Subscription Revenues to Boost Shares
AVID’s shares have slumped 25% in the year-to-date period compared with the Zacks Computer - Software industry, which has declined 33% in the same period.
The recent fall in Avid’s share price reflects negative sentiments among investors as the company realized a 10.6% decline in integrated solutions revenues in second-quarter 2022. Due to global supply chain constraints, the company continued to face challenges in delivering certain parts of its integrated solutions portfolio to customers. In the first half of the year, Avid’s unfulfilled contractually committed orders were more than 20 million. This impacted revenue growth negatively.
The company is also facing competition across all of its product offerings from companies like ChryonHego corporation, Dell Technologies, Adobe, Yamaha Corporation and big tech giants like Apple AAPL.
Apple has cut into the video editing space as it provides less expensive digital video editing software. Apple’s video editing software uses machine learning to help provide video editing features and is currently available with its latest iPhone offerings helping the company to gain market share in the video editing software market.
Also, rising inflation has placed huge pressure on media technology budgets, which is expected to affect subscription revenue growth of Avid.
However, amidst such market volatility, Avid’s recent launch of Pro Tools Intro will attract budding artists to the platform for free. However, the probability of turning these budding artists into potential new subscribers is high, as Avid created the Pro Tools Artist as a low-priced tier that aspiring artists can afford, which will contribute to its subscription revenue growth.
However, to deal with the rising competition, Avid has forged strategic partnerships with Amazon AMZN and Microsoft MSFT.
Avid has partnered with Amazon studios to help in Amazon’s content production in the cloud with software such as Media Composer, Nexis storage and media control platform.
Avid is also benefiting from its multi-year agreement with Microsoft, which includes technology collaboration, co-development of cloud bases solutions and the launch of several software-as-a-service offerings. This partnership is helping Avid to create new technologies, which are attracting new users to many of its subscription-based product offerings.
In the second quarter, Avid realized net adds of 18,500 subscriptions and delivered year-over-year growth of 22%. As a result, the company, which currently carries a Zacks Rank #3 (Hold), reported subscription revenue growth of 58.7% in the quarter. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Avid also expects that the effects of the supply chain constraints will start resolving from the second half of 2022, and it will be able to cover much of its backlog.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company is also facing competition across all of its product offerings from companies like ChryonHego corporation, Dell Technologies, Adobe, Yamaha Corporation and big tech giants like Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report The initial result from the Pro Tools Artist offering reflected solid demand for the product, which helped to increase Avid’s subscriber base and impacted subscription revenue growth positively in the second quarter of 2022.
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The company is also facing competition across all of its product offerings from companies like ChryonHego corporation, Dell Technologies, Adobe, Yamaha Corporation and big tech giants like Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report Avid Technology, Inc. Price and Consensus Avid Technology, Inc. price-consensus-chart | Avid Technology, Inc. Quote AVID Driving Subscription Revenues to Boost Shares AVID’s shares have slumped 25% in the year-to-date period compared with the Zacks Computer - Software industry, which has declined 33% in the same period.
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The company is also facing competition across all of its product offerings from companies like ChryonHego corporation, Dell Technologies, Adobe, Yamaha Corporation and big tech giants like Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report In September, Avid announced that its Avid Learning Academy (ALA) program has transitioned to Pro Tools Artist, which will give every student aspiring to build a career in media and enrolled in the program free access to the new Pro Tools Artist (PTA) software.
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The company is also facing competition across all of its product offerings from companies like ChryonHego corporation, Dell Technologies, Adobe, Yamaha Corporation and big tech giants like Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report The initial result from the Pro Tools Artist offering reflected solid demand for the product, which helped to increase Avid’s subscriber base and impacted subscription revenue growth positively in the second quarter of 2022.
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18969.0
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2022-10-10 00:00:00 UTC
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If You Invested $5,000 in Berkshire Hathaway in 2000, This Is How Much You Would Have Today
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AAPL
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https://www.nasdaq.com/articles/if-you-invested-%245000-in-berkshire-hathaway-in-2000-this-is-how-much-you-would-have-today
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nan
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nan
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Few companies are more famous or have beaten the broader market more consistently than Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), the large conglomerate that has been run by legendary investor Warren Buffett for decades.
Between 1965 and 2021, Berkshire's market value has risen 3,641,613%. Put another way, it's a compound annual gain of roughly 20.1%. During the same period, the S&P 500 has gained 30,209% including dividends, for an annual gain of 10.5%.
But a lot has happened during that time, so let's see what investors would have made if they invested $5,000 in Berkshire in the year 2000. I'll focus on its Class B shares because they are more affordable for the average retail investor.
A long history of excellence
Berkshire Hathaway operates many different businesses in sectors including railroads, mortgage lending, energy, and insurance. It also manages a roughly $313.6 billion stock portfolio.
Berkshire Class A shares are incredibly expensive, with one share currently costing around $406,000. To make shares more accessible to the retail investor, Berkshire created Class B shares in 1996. They were issued at 1/30 the price of Class A shares, which at the time traded for around $32,000, meaning Class B shares started trading at more than $1,000.
Warren Buffett. Image source: Motley Fool.
By late 2007, Class B shares had risen all the way to roughly $4,736, giving investors more than a 340% gain in about 11 years. But the stock then dipped during the Great Recession and in late 2019 traded for around $3,350. In January 2010, Berkshire would perform a 50-for-1 stock split to make the shares even more attainable for smaller investors, dropping the price to $73.
A slate of big moves
Since the turn of the century, Berkshire has certainly been active. The conglomerate has made a number of big acquisitions, including the purchase of the battery giant Duracell and the acquisition of several large energy companies. In 2009, Berkshire made its largest-ever acquisition when it acquired a controlling stake in the Burlington Northern Santa Fe (BNSF) Railway for $34 billion (the company also had a lot of debt).
Berkshire has been busy this year as well, plowing more than $57 billion into equities in the first half of the year. It has purchased a massive amount of shares in the large U.S. oil producer Occidental Petroleum, which has seen its stock soar since the U.S. and other countries imposed sanctions on Russian oil. The conglomerate now owns well over 20% of the company, and there are rumors it might look to acquire Occidental outright.
Buffett and Berkshire have also made mistakes over the past two decades, most notably purchasing Kraft Heinz for $28 billion in 2013. The stock is down significantly since then.
But there have also been many successful investments including shares in Bank of America purchased right after the Great Recession in 2011. Since then, Berkshire has built that position into the second-largest holding in its equities portfolio, currently accounting for more than 10%. And then there was Berkshire's memorable first purchase of Apple shares in 2016. The company is now Berkshire's largest holding by far, making up more than 41% of its portfolio.
If you invested $5,000 in 2000, how much would you have now?
In January of 2000, shares of Berkshire Class B traded at about $1,646. Right before the stock split in 2010, they traded for roughly $3,353, which means at that point, you were up about 104% and had turned your $5,000 into $10,200.
Then following the stock split, shares traded for about $73 and currently trade for more than $269, which is a gain of about 268%. You have now turned your $10,200 into roughly $27,336. From your initial $5,000 investment in 2000, you have realized a total gain of about 446% in 22 years.
This equates to a compound annual growth rate (CAGR) of 8.03%, which would beat the S&P 500's CAGR of 6.44% since 2000. So, yes, Berkshire shares continue to beat the market but not nearly by as much as they have since 1965.
10 stocks we like better than Berkshire Hathaway (B shares)
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*Stock Advisor returns as of September 30, 2022
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Bram Berkowitz has positions in Bank of America. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends The Kraft Heinz Company and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A long history of excellence Berkshire Hathaway operates many different businesses in sectors including railroads, mortgage lending, energy, and insurance. In January 2010, Berkshire would perform a 50-for-1 stock split to make the shares even more attainable for smaller investors, dropping the price to $73. In 2009, Berkshire made its largest-ever acquisition when it acquired a controlling stake in the Burlington Northern Santa Fe (BNSF) Railway for $34 billion (the company also had a lot of debt).
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Few companies are more famous or have beaten the broader market more consistently than Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), the large conglomerate that has been run by legendary investor Warren Buffett for decades. But there have also been many successful investments including shares in Bank of America purchased right after the Great Recession in 2011. The Motley Fool recommends The Kraft Heinz Company and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple.
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To make shares more accessible to the retail investor, Berkshire created Class B shares in 1996. 10 stocks we like better than Berkshire Hathaway (B shares) When our award-winning analyst team has a stock tip, it can pay to listen. The Motley Fool recommends The Kraft Heinz Company and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple.
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By late 2007, Class B shares had risen all the way to roughly $4,736, giving investors more than a 340% gain in about 11 years. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Bank of America is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares).
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18970.0
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2022-10-09 00:00:00 UTC
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3 Companies That Could Be Worth $1 Trillion by 2030
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AAPL
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https://www.nasdaq.com/articles/3-companies-that-could-be-worth-%241-trillion-by-2030
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nan
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Only a handful of companies have reached the trillion dollars in value mark, but that number will likely grow in coming years. As I set out to find companies that could reach a trillion-dollar valuation, I had a few requirements. The companies must have an extremely large addressable market, must have an identifiable moat to build on, and be growing and profitable today.
The three stocks that stood out to me are Taiwan Semiconductor (NYSE: TSM), Disney (NYSE: DIS), and Adobe (NASDAQ: ADBE).
Taiwan Semiconductor Manufacturing
There's one chip manufacturer that's more important than any other in the world today, and that's Taiwan Semiconductor Manufacturing. The company is a third-party manufacturer for chip leaders like Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and dozens of other companies designing their own chips.
Designing a great chip is great, but someone has to make the chip, and that's where Taiwan Semiconductor comes in.
You can see in the chart below that the company is now trading at just 13.2 times earnings, and has grown revenue and net income 91.5% and 140.4% respectively in the last three years.
TSM Market Cap data by YCharts
What's fascinating about the company's place in chip manufacturing is that there's no clear competitor at the bleeding edge of manufacturing. Intel (NASDAQ: INTC) is years behind, GlobalFoundries (NASDAQ: GFS) is much smaller, and AMD (NASDAQ: AMD) has a more integrated business model. For chip companies that don't own fabrication facilities, Taiwan Semiconductor is still the go-to manufacturer if you're designing at the cutting edge.
Given the company's strong strategic position, technology, growth, and profitability, I think this could be the first of these companies to reach $1 trillion in value.
Disney
The last five years haven't been quite as smooth sailing at Disney. The company has seen cable connections decline, streaming has been an enormous investment, and the pandemic had a huge effect on both theaters and theme parks. But Disney is positioned for a decade of growth.
DIS Market Cap data by YCharts
Disney now technically has more subscribers than Netflix (NASDAQ: NFLX) when you add together Disney+, ESPN+, and Hulu. So, it's a leader in next-generation media distribution.
Investors haven't liked the money being spent on streaming, but the payoff may be getting better very soon. Disney announced an advertising tier, but instead of offering a lower-cost version of Disney+ with ads, it is keeping the same $8 per month price but adding advertising, increasing the price to $11 per month if you want no ads.
Disney's ability to create compelling content and then monetize it through what I call a waterfall of businesses -- from the theater to streaming to merchandise to theme parks -- is unmatched in media. The company needs to do well to reach a $1 trillion valuation by 2030, but I think it can get there.
Adobe
Adobe has long made valuable software for designers, but it's now poised to become the operating system of the design and programming community if it can complete the acquisition of Figma.
You can see below that Adobe's business of licensing software to creators has been a growth machine over the last decade. But it's creating tools that people use to create assets, not a platform they're using to collaborate on. That's why the acquisition of Figma is a big deal.
ADBE Revenue (TTM) data by YCharts
You can see above that Adobe currently trades for 28.5 times trailing earnings, and Figma should help with future growth. But for Adobe to become a $1 trillion company, it needs to lean into Figma's multi-user platform to become a real juggernaut. I think it can do that, pulling not only graphic designers but programmers, project managers, and many more into the Figma ecosystem. Don't be surprised if products like Photoshop and Illustrator become add-ons to Figma, not the other way around.
Now that Adobe has a potential platform solution, the sky is the limit for the company's value. That's why I think this could be a $1 trillion company by the end of the decade.
Thinking big
There's no guarantee any of these companies will reach the heights of a $1 trillion company, but they all have the foundation needed to get there. If management thinks big, these stocks could be trading near the most valuable companies in the world.
10 stocks we like better than Taiwan Semiconductor Manufacturing
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now… and Taiwan Semiconductor Manufacturing wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 30, 2022
Travis Hoium has positions in Apple and Walt Disney. The Motley Fool has positions in and recommends Adobe Inc., Advanced Micro Devices, Apple, Intel, Netflix, Nvidia, Taiwan Semiconductor Manufacturing, and Walt Disney. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long January 2024 $145 calls on Walt Disney, long January 2024 $420 calls on Adobe Inc., long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2023 $57.50 puts on Intel, short January 2024 $155 calls on Walt Disney, short January 2024 $430 calls on Adobe Inc., short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company is a third-party manufacturer for chip leaders like Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and dozens of other companies designing their own chips. Disney's ability to create compelling content and then monetize it through what I call a waterfall of businesses -- from the theater to streaming to merchandise to theme parks -- is unmatched in media. ADBE Revenue (TTM) data by YCharts You can see above that Adobe currently trades for 28.5 times trailing earnings, and Figma should help with future growth.
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The company is a third-party manufacturer for chip leaders like Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and dozens of other companies designing their own chips. The three stocks that stood out to me are Taiwan Semiconductor (NYSE: TSM), Disney (NYSE: DIS), and Adobe (NASDAQ: ADBE). The Motley Fool has positions in and recommends Adobe Inc., Advanced Micro Devices, Apple, Intel, Netflix, Nvidia, Taiwan Semiconductor Manufacturing, and Walt Disney.
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The company is a third-party manufacturer for chip leaders like Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and dozens of other companies designing their own chips. The Motley Fool has positions in and recommends Adobe Inc., Advanced Micro Devices, Apple, Intel, Netflix, Nvidia, Taiwan Semiconductor Manufacturing, and Walt Disney. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long January 2024 $145 calls on Walt Disney, long January 2024 $420 calls on Adobe Inc., long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2023 $57.50 puts on Intel, short January 2024 $155 calls on Walt Disney, short January 2024 $430 calls on Adobe Inc., short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple.
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The company is a third-party manufacturer for chip leaders like Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and dozens of other companies designing their own chips. But Disney is positioned for a decade of growth. Disney's ability to create compelling content and then monetize it through what I call a waterfall of businesses -- from the theater to streaming to merchandise to theme parks -- is unmatched in media.
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18971.0
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2022-10-09 00:00:00 UTC
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3 Cryptocurrencies That Will Explode as Web3 Expands
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AAPL
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https://www.nasdaq.com/articles/3-cryptocurrencies-that-will-explode-as-web3-expands
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nan
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nan
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Staying current with trends is one of the most important facets of successful investing. Being quick to recognize those that will eventually turn into the status quo is one way to build a portfolio that beats the market.
Imagine investing in some of the most high-profile tech stocks a decade ago. Today, companies like Meta Platforms (NASDAQ: META), Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and many others are intertwined with our daily lives. An investor aware of trends a decade ago could have foreseen that and capitalized on those opportunities. In the last 10 years, the tech-heavy Nasdaq Stock Market increased nearly 250% in value.
Now, hindsight is always 20/20, but there is one trend today that presents a similar opportunity to that of a decade ago.
The new age of the internet
Our reliance on the internet seemingly increases every year. Some companies capitalized on this and now have an omnipresent role in our daily lives. These companies provide technology, track your every move on the internet, and generate an absurd profit from their centralized business models. But it looks like that might be coming to an end thanks to new technology with the potential to upend the current status quo of the internet.
Known as Web3, this new age of the internet aims to be everything that our current internet, referred to as Web2, isn't. In Web3, things such as social media, finance, gaming, and the metaverse have the potential to mark a break from today's centralization. With Web3, decentralized blockchains would be the backbone for an internet that's open source, offers secure interoperability between apps, and is entirely trustless -- meaning no third party, like Google, is needed for the system to function.
A recent report by Vantage Market Research on the current standing of Web3 valued the sector at just under $3 billion. But the same report says it has the potential to grow to roughly $23 billion by 2028. That's an increase of more than 700%. So how can investors capitalize on this opportunity?
Well, because blockchains are the foundation of Web3, owning the cryptocurrencies native to those blockchains is one simple way to gain exposure to the new age of the internet. Based on current developments, I believe there are three that are rising to the task of supporting Web3's future growth: Ethereum (CRYPTO: ETH), Polygon (CRYPTO: MATIC), and Arweave (CRYPTO: AR).
Ethereum
Ethereum is slowly becoming the foundation of Web3. To be straightforward, there is no possibility of Web3 without Ethereum. With its smart contracts, developers can program decentralized apps (dApps) to replace third-party entities, allow user data to flow seamlessly between applications without any collection, and (the best part) be highly secure and execute automatically when conditions are met. There are other smart-contract-based blockchains like Solana (CRYPTO: SOL) and Cardano (CRYPTO: ADA), but Ethereum has risen to the top as one of the most used blockchains. Its popularity has caused it to become the home of the most development for Web3 use cases. It could help to think of Ethereum as the base layer or code that allows Web3 to function, as JavaScript or HTML is for Web2. Any investor interested in Web3 should make sure they have a substantial amount of Ether in their portfolio.
Polygon
This network is positioning itself to become a powerhouse of Web3 as the new age of the internet continues to advance. Polygon is unique because it makes the shortcomings of Ethereum (namely slow transaction speeds and high fees) a thing of the past without sacrificing the security and decentralization that make Ethereum so desirable. To do this, Polygon offloads transactions from Ethereum's blockchain and then adds them back later. The technology that Polygon uses makes transactions lightning fast at a cost of less than a penny.
Polygon co-founder Mihailo Bjelic might have said it best when talking about what Web3 needs. For a blockchain to become the "holy grail of Web3 infrastructure" it must have "scalability, security, and Ethereum compatibility." If Web3 is to support all the internet users of the world, it must remain fast and cheap. With Polygon, that now becomes possible.
Arweave
Last but not least is Arweave. In a world full of data, that data needs a home. Arweave is a data storage solution that uses blockchain technology to provide a simple way to retain information -- forever. The best part about Arweave is that no central authority oversees the data, no one can alter the data once it's on the blockchain. In addition, Arweave is compatible with smart contracts, which means Web3 developers can customize dApps to use the data on Arweave's blockchain. And, in keeping with Web3 principles, that data can't be used to generate profits because it's anonymous, and it can never be altered because it's secure on a blockchain.
To understand how Arweave could benefit investors, we must first understand how Arweave works. We will keep it simple, but to store data on Arweave's blockchain, users must purchase storage space with the AR coin. A user could be a regular person wanting to save a cherished photograph or another blockchain wanting to store its transaction history to free up space. The thinking is that as Arweave's blockchain grows and supports more data storage for Web3, the AR coin should rise in value as demand for it grows.
Imagine entering the metaverse through glasses or virtual reality goggles and, as on the home screen on your phone, seeing all your favorite apps and games there waiting for you. Those apps and games all communicate with each other seamlessly to provide a unique experience just for you without the need of any Big Tech company. Your bank account, photos, and other information are all stored on the blockchain and are completely secure and anonymous.
Web3 is far from its final form, and it's difficult to guess just what it might look like, but that is why investors have so much to gain right now. As the internet continues to evolve, investors can take advantage of a trend that has the potential to become the status quo.
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*Stock Advisor returns as of September 30, 2022
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. 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. RJ Fulton has positions in Cardano, Ethereum, and Solana. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Ethereum, Meta Platforms, Inc., Microsoft, Polygon, and Solana. The Motley Fool recommends Nasdaq 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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Today, companies like Meta Platforms (NASDAQ: META), Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and many others are intertwined with our daily lives. With Web3, decentralized blockchains would be the backbone for an internet that's open source, offers secure interoperability between apps, and is entirely trustless -- meaning no third party, like Google, is needed for the system to function. With its smart contracts, developers can program decentralized apps (dApps) to replace third-party entities, allow user data to flow seamlessly between applications without any collection, and (the best part) be highly secure and execute automatically when conditions are met.
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Today, companies like Meta Platforms (NASDAQ: META), Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and many others are intertwined with our daily lives. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Ethereum, Meta Platforms, Inc., Microsoft, Polygon, and Solana.
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Today, companies like Meta Platforms (NASDAQ: META), Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and many others are intertwined with our daily lives. Based on current developments, I believe there are three that are rising to the task of supporting Web3's future growth: Ethereum (CRYPTO: ETH), Polygon (CRYPTO: MATIC), and Arweave (CRYPTO: AR). Polygon is unique because it makes the shortcomings of Ethereum (namely slow transaction speeds and high fees) a thing of the past without sacrificing the security and decentralization that make Ethereum so desirable.
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Today, companies like Meta Platforms (NASDAQ: META), Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and many others are intertwined with our daily lives. Imagine investing in some of the most high-profile tech stocks a decade ago. So how can investors capitalize on this opportunity?
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18972.0
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2022-10-08 00:00:00 UTC
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Apple's CEO Bashes the Metaverse, and Nvidia's CEO Embraces It: What It Means for Investors
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AAPL
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https://www.nasdaq.com/articles/apples-ceo-bashes-the-metaverse-and-nvidias-ceo-embraces-it%3A-what-it-means-for-investors
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nan
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nan
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On a recent trip to Europe, Apple (NASDAQ: AAPL) CEO Tim Cook spoke with Dutch online media company Bright to discuss the future of technology. In the interview, Cook downplayed the metaverse, instead touting Apple's focus on augmented reality (AR). Cook said that one day, we will all "look back and think about how we once lived without AR."
Meanwhile, Nvidia (NASDAQ: NVDA) spent an entire week at its biannual GTC event for tech developers, and the metaverse consumed a large amount of the time. In fact, CEO Jensen Huang talks about the metaverse a lot, and how it will shape the future.
What in the name of metaverse originator Neal Stephenson is going on here? These debates about what the metaverse actually is and what it will do are becoming silly. Not to mention confusing for investors, let alone the everyday consumer, who is already overwhelmed by the rapid changes the world has undergone in the last few years.
What is the metaverse anyway?
If you do a web search for "What is the metaverse?" you'll get as many variations on the answer as the times you click on an article (including one from yours truly). But let's let Jensen Huang settle it once and for all. In his keynote address at GTC 2022, he provided perhaps the simplest and most elegant definition to date: The metaverse is "the 3D internet."
I really appreciate this description. Rather than trying to reinforce this notion that the metaverse is confusing and that no one wants it (like Cook did in the above-mentioned interview), Huang breaks it down into simple terms. If some web-based service or app you use has a three-dimensional element to it, let's just call it "the metaverse."
Cook's comments about AR are perhaps the best clue we have that Apple is readying some sort of device, perhaps AR or virtual reality (VR) headsets (maybe -- there'll be an announcement in 2023). But if we view the metaverse through Huang's simple take, Apple is getting involved with the metaverse, too, whether it likes it or not. AR and VR applications will be web-based, and many AR apps are already available on the Apple App Store. I'm calling it like I see it: Apple Metaverse.
It's all marketing! Elementary, my dear Watson.
If you're still with me, let's turn to this question: Why all the tech CEO disagreements on what the metaverse is and what kind of future it will have? If the metaverse is just a 3D representation of the internet, a technology we all use every day and absolutely can agree has a well-established definition, why jockey for attention by bashing it? Or hype the metaverse like it's this brand-new shiny thing that's being built from scratch?
It's simple: marketing.
Like any good "walled garden" business, Apple has a vested interest in putting down other companies' technology efforts while championing its own. After all, why would Apple use such a term when Meta (NASDAQ: META), formerly Facebook, literally changed its name to a contracted form of "metaverse" to indicate its 3D web app future? Apple has gone to great lengths to try to weaken Meta's (ahem, Facebook's) hold on its iPhone users' data.
In contrast, like any good "platform" business model that helps others build tech for themselves, Huang is being inclusive and touting how the metaverse can mean different things for different consumers and businesses. Thus the term "Omniverse" for its new cloud-based collaboration and development apps.
If you're a video game company, the metaverse might mean an immersive 3D game. If you're a manufacturing company, the metaverse might mean a virtual re-creation of your factory used for planning purposes. And if you're a medical college, the metaverse might mean an AR app that trains students how to practice medicine.
Someday, hopefully soon, we can all agree to call the 3D extension of the internet the same thing. Maybe it will be "the metaverse," maybe it will be something else (like "3D internet," or, I dunno, maybe just "the internet").
But one thing is for sure: This thing we're discussing is already here, and new capabilities using 3D virtual content are being developed. Any differences you hear in what all this is and what it means from various CEOs' perspectives is simply marketing to get us all ready to buy into it.
Now it's time for you, the investor, to decide which businesses you like best to capitalize on 3D virtualization. I, for one, think Apple and Nvidia both are pretty good bets.
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*Stock Advisor returns as of September 30, 2022
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Nicholas Rossolillo and his clients have positions in Apple, Meta Platforms, Inc., and Nvidia. The Motley Fool has positions in and recommends Apple, Meta Platforms, Inc., 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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On a recent trip to Europe, Apple (NASDAQ: AAPL) CEO Tim Cook spoke with Dutch online media company Bright to discuss the future of technology. Meanwhile, Nvidia (NASDAQ: NVDA) spent an entire week at its biannual GTC event for tech developers, and the metaverse consumed a large amount of the time. Like any good "walled garden" business, Apple has a vested interest in putting down other companies' technology efforts while championing its own.
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On a recent trip to Europe, Apple (NASDAQ: AAPL) CEO Tim Cook spoke with Dutch online media company Bright to discuss the future of technology. In the interview, Cook downplayed the metaverse, instead touting Apple's focus on augmented reality (AR). See the 10 stocks *Stock Advisor returns as of September 30, 2022 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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On a recent trip to Europe, Apple (NASDAQ: AAPL) CEO Tim Cook spoke with Dutch online media company Bright to discuss the future of technology. But if we view the metaverse through Huang's simple take, Apple is getting involved with the metaverse, too, whether it likes it or not. I'm calling it like I see it: Apple Metaverse.
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On a recent trip to Europe, Apple (NASDAQ: AAPL) CEO Tim Cook spoke with Dutch online media company Bright to discuss the future of technology. What is the metaverse anyway? AR and VR applications will be web-based, and many AR apps are already available on the Apple App Store.
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18973.0
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2022-10-08 00:00:00 UTC
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Why Pinterest Stock Beat the Market in September
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AAPL
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https://www.nasdaq.com/articles/why-pinterest-stock-beat-the-market-in-september
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nan
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nan
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What happened
During a tough month for the stock market in September, Pinterest (NYSE: PINS) stock not only managed to beat the market, but it even posted a positive return.
Last month, stocks fell sharply over concerns about rising interest rates and the prospect of a recession, but the social media company bucked the headwinds in growth stocks and gained 1% for the month, according to data from S&P Global Market Intelligence. The company benefited from positive analyst chatter as well as reports that activist investor Elliott Investment Management may be pushing for a sale of the company.
As the following chart shows, Pinterest stock was erratic during the month, but it managed to avoid the S&P 500's steady decline.
PINS data by YCharts
So what
Pinterest first started gaining on Sept. 7, rising 6.2% when it got a bullish analyst note from Wolfe Research. Analyst Deepak Mathivanan upgraded the stock from "peer perform" to "market perform," saying the company has a significant opportunity in both user growth and monetization over the long term. Mathivanan also expressed confidence in new CEO Bill Ready, and said the company has a number of positive catalysts ahead including month-to-month user growth, margin expansion, and new products. He gave Pinterest a price target of $28.
Rumors about Alphabet's potential interest in an acquisition also started swirling after Alphabet CEO Sundar Pichai was asked about it a conference, and after Citron Research issued a note saying a deal made sense.
The stock climbed another 3.5% on Sept. 15, after Baird reiterated its outperform rating with a price target of $30. Analyst Colin Sebastian said the company's execution on monetization opportunities is improving, and it isn't exposed to Apple's ad-tracking restrictions in the way that other social media stocks are.
Towards the end of the month, Barron's reported that Elliott Management would like to see the company better monetize its user base or put itself up for sale.
Now what
Pinterest continued to climb in the first week of October, jumping 8% with the help of a Goldman Sachs upgrade even as the S&P 500 was only up modestly. Analyst Eric Sheridan cited improved user growth and engagement trends, and raised his rating to a buy with a price target of $31.
The stars seem to be aligning for Pinterest to deliver better-than-expected third-quarter results when its report comes out around the end of the month. Wall Street expectations are muted, calling for just 5% revenue growth to $665.6 million, and for earnings per share to fall from $0.28 to $0.06, which could set the stock up for an easy win.
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Pinterest 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. Jeremy Bowman has positions in Pinterest. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Goldman Sachs, and Pinterest. 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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Mathivanan also expressed confidence in new CEO Bill Ready, and said the company has a number of positive catalysts ahead including month-to-month user growth, margin expansion, and new products. Analyst Colin Sebastian said the company's execution on monetization opportunities is improving, and it isn't exposed to Apple's ad-tracking restrictions in the way that other social media stocks are. Wall Street expectations are muted, calling for just 5% revenue growth to $665.6 million, and for earnings per share to fall from $0.28 to $0.06, which could set the stock up for an easy win.
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Analyst Deepak Mathivanan upgraded the stock from "peer perform" to "market perform," saying the company has a significant opportunity in both user growth and monetization over the long term. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Goldman Sachs, and Pinterest. 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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What happened During a tough month for the stock market in September, Pinterest (NYSE: PINS) stock not only managed to beat the market, but it even posted a positive return. Last month, stocks fell sharply over concerns about rising interest rates and the prospect of a recession, but the social media company bucked the headwinds in growth stocks and gained 1% for the month, according to data from S&P Global Market Intelligence. 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.
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What happened During a tough month for the stock market in September, Pinterest (NYSE: PINS) stock not only managed to beat the market, but it even posted a positive return. Towards the end of the month, Barron's reported that Elliott Management would like to see the company better monetize its user base or put itself up for sale. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Goldman Sachs, and Pinterest.
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18974.0
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2022-10-08 00:00:00 UTC
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Poshmark Gets Bought Out; Chipotle Roars Ahead
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AAPL
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https://www.nasdaq.com/articles/poshmark-gets-bought-out-chipotle-roars-ahead
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nan
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nan
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In this podcast, Motley Fool senior analyst Asit Sharma discusses:
Poshmark's all-cash deal that values the company at less than half of its IPO price.
Private market valuations coming down.
National Taco Day and Chipotle Mexican Grill's strong business.
Motley Fool host Alison Southwick and Motley Fool personal finance expert Robert Brokamp talk with Motley Fool senior analyst Rich Greifner about the fundamentals of value investing.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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See the 10 stocks
*Stock Advisor returns as of September 30, 2022
This video was recorded on October 4, 2022.
Chris Hill: Another high-profile IPO company gets taken private, and we celebrate National Taco Day with a closer look at Chipotle; Motley Fool Money starts now. I'm Chris Hill, joining me from the great state of North Carolina, Motley Fool Senior Analyst, Asit Sharma, thanks for being here.
Asit Sharma: Chris. Thank you for having me.
Chris Hill: Poshmark, the online clothes retailer, is being acquired by Naver, which is an internet company based in South Korea. This is an all-cash deal that values Poshmark at, let's call it $1.2 billion, which is less than half of what the company was valued at when it went public of January of last year. When I saw this news, Asit, one of the first thoughts that went through my head was, well, it's an acquisition and I think we've all thought for a while that we're going to see more acquisitions in the coming months. My second thought was, Naver is getting Poshmark at a deal. They like this business and they like this price.
Asit Sharma: Yeah, it's a good business at the right price. Maybe it wasn't the right price for shareholders who bought in last year. That was a little bit harder to see Chris, I think, I mean, I looked at Poshmark's business model and several of its peers at that time, and it seemed like a market that was open for evolution. You have resale fashion and the idea of a social network merging in Poshmark and several of its competitors have interesting business models as well. You've got The RealReal, ThredUp, which is also dealing in resale. You have luxury companies like Farfetch. But one thing they all have in common is negative operating margins since they went public. None of these companies yet seemed to be able to turn a positive dollar, which hasn't helped public shareholders.
But as you point out, has made it quite a deal for a company like Naver, which has some very interesting AI capabilities. They're very good at image recognition. They're very good at sorting. Their expertise might lend itself well to optimizing this platform that Poshmark has. In addition, you combine a really massive Korean network with a big user base here in America, there's all sorts of things they can do together. The press release listed a number of strategic benefits of the deal. But if you bought this company at the IPO, you could probably chalk this one up to experimentation with the fashion world, which is always a roll of the dice, doesn't matter how the technology changes, retail fashion is a difficult business.
Chris Hill: It absolutely is and you can look at traditional apparel retailers that are publicly traded. Any one of them can have a good six-month period. If you're especially gifted at timing the stocks on these and I don't know anyone who actually is. Yeah, there have been points in time where it was a great eight months to own The Gap, or a great 15 months to own Abercrombie and Fitch. But over the long haul, it's such a fickle industry. As I've said in the past, I love my children, but I would not want to be part owner of a business that is dependent on their ever-changing fashion tastes.
Asit Sharma: Yeah, it becomes so difficult because that top line, as you point out is never absolutely stable. It changes along with consumer preferences. What you end up with, are companies that are consistently trying to improve the bottom-line cut cost somewhere. We saw that with The Gap. We've seen fashion store closures for those with brick-and-mortar models, even in this deal, at the bottom of the press release, after talking about a lot of these great strategic synergies, they talk about run-rate cost savings through post-closing rationalization of public company costs. Meaning hey, as a public company, you weren't able to cut costs in a way that would have satisfied your shareholders. We understand there's pressure there. We don't have that private company, so we're going to slash some costs after we acquire you. As much as this looks like a new version of a model that is iffy is always going to be problematic I think. Now the flip side of this is in the future as companies get a better handle of monetizing young users. Maybe we'll see something emerge that is able to generate a positive margin growing cash flows. But as yet, that magical formula hasn't yet appeared, at least in the public markets.
Chris Hill: We've gotten some consumer-facing data over the last few days around automotive prices, around home prices, both of which are coming down. The common theme being, hey, if you've been waiting to pay a little bit less for a car or a house, you're probably going to be rewarded for your patience in the near future. The Poshmark deal makes me think that it's the same for companies too, for larger businesses that are looking to acquire, tuck-in acquisitions, they're getting them at a lower price.
Asit Sharma: Yeah, we're seeing valuations not just in the public markets, but in the private markets too which they're interrelated, really collapse over the past nine months and so this is a good time if you've got cash on the balance sheet to deploy it. A lot of times, we are very critical of companies when the markets are flush, that seem to acquire their way to growth. But when your competitors are on sale, when you've got potential synergies, companies that can make a greater whole than the parts. That's the time to put capital to work. You can't blame a company like Naver which wants to grow out of South Korea for putting its cash to work. There are some fire-sale bargains out there, just look for the companies that are bleeding cash. Those may be able to be picked up for a song and that's where you see four to five years down the road, the most strategic parts of those assets get merged into a bigger company, and they have a net benefit that makes economic sense for the buyers that are offering the deal on the table today.
Chris Hill: Today is National Taco Day so happy National Taco Day to all who celebrate and hopefully everyone does because tacos are amazing. I looked at a five-year chart of Chipotle and maybe I shouldn't have been surprised, but stock up 400% over a five-year period. That includes the start and the height of the pandemic. I don't want to just turn this into touting Chipotle, but I don't know. It's a business that has done an effective job of taking a popular product and turning it into a profitable business over a sustained period of time.
Asit Sharma: It's funny how they're able to consistently generate these nice profit so the opposite side of business models, we have something that's extremely cash-generative. Cash flows are really stable. I almost feel like, Chris, Chipotle was done a favor when it had those viral outbreaks few years before the pandemic and had to learn to deal with strained circumstances with customers that didn't want to come in the door, they became much more efficient. They learned how to keep that restaurant margin, which is the margin that each store generates on its own. Forget the big corporate fixed overhead to keep that at a pretty reasonable level. You combine that with just continued relentless store expansion, decent same-store sales growth.
Now, menu innovation with the newish leadership regime. He got a formula there that is going to keep pushing up those returns. I don't want to turn this into it cheerleading session for Chipotle either. But I will note for skeptics out there, none other than Bill Ackman, who's got a pretty decent track record at least on consumer-facing investments. I think that's become his No. 1 choice for a while, it was Starbucks, but he's really fond of Chipotle now is a company with a lot of pricing power, fear, resilient in a time of inflation. Just an all-round consumer-facing investment. It's hard not to sing its praises if we have a little bit of leeway here on National Taco Day, although, you know what? You bringing that up reminds me it's been years, nay, sir. It's been decades since I bought some canned Old El Paso ingredients, spread those with some hard shell Tacos on a sheet of aluminum foil and pop that in the oven. Maybe that's what I'll do for National Taco Day.
Chris Hill: That's one way to celebrate I suppose. Actually, I'm reminded of the last time I was in your state, in Ashville, North Carolina, there's a phenomenal local taco joint called Billy Taco. I so enjoyed my meal there. I thought it was probably just as well I don't live in Ashville because I think I would come here four or five times a week for breakfast, lunch, and dinner, and then absolutely I have a weight problem.
Asit Sharma: Yeah. You and I should meet in Ashville next year on National Taco Day. A foodies' paradise, and I think they picked up James Beard awards in the last few years. We should do that. There's always time to work off the weight later.
Chris Hill: I like the way you think. Asit Sharma, thanks so much for being here.
Asit Sharma: Really appreciate it, Chris, this is fun.
Chris Hill: Poshmark being taken private at a much lower price is only the latest example of value investing on the rise. Motley Fool Senior Analyst Rich Greifner joined Robert Brokamp and Alison Southwick to talk about the fundamentals of value investing, as well as stock ideas.
Robert Brokamp: The 2022 stocks are just about every type are down, but some are holding up better than others. While the S&P 500 is down 24% and the Nasdaq is down 32%. Value stocks, at least as measured by the Vanguard Value ETF, are down just 14% -- OK not great. But after many years of underperforming growth, value investors are finally enjoying some of our performance even if it's only relatively speaking here to explain the benefits and perils of value investing is Rich Greifner a senior analyst here at The Motley Fool. Welcome, Rich.
Rich Greifner: Thanks a lot, Bro and more benefits than perils.
Robert Brokamp: Good, I'm glad to hear that. I mentioned the Vanguard Value ETF, which basically just differentiates value from growth based on the stuff that you might expect. Criteria like book-to-price, price-to-earnings ratio, or sales-to-price ratio, things like that. But how do you define value?
Rich Greifner: For the purposes of this conversation, I think that definition works great. I think that's the definition that most people would understand intuitively. When you're buying value stocks, you're looking for something that's cheap relative to its current level of earnings, sales, book value, cash flow, a cheap stock.
Robert Brokamp: In your opinion, what explains why value stocks are holding up better than the overall market this year?
Rich Greifner: Yeah, I think you've got to take a high-level look at this. As you said, the growth has just been trouncing value for the last five, six years. Yeah, we're outperforming a bit this year, but big picture, still some ground to recover. But really, value stocks tend to perform better in periods where the stock market as a whole doesn't do as well. I think that just goes back to the nature of what we were talking about when you're investing in a value stock. That is a company that's trading cheap relative to its current level of earnings or cash flow. That means the expectations priced into the stock are pretty low. If things don't work out that great, that's OK. I wasn't really expecting performance to be that great anyway. Whereas for a growth stock, your expectations were pretty high. If things don't perform as you anticipated, you're going to get a lower multiple on top of lower-than-expected earnings and that's how you get some of the big stock price decreases we've seen.
Robert Brokamp: Now when you look at the overall value indexes other reasons why they're doing better is that they tend to have higher weightings to some of the sectors that are doing better. So far in 2022, the only sector that's making money is energy. You'll find more energy stocks and value indexes and growth indexes. Utilities, which are down 6%, consumer staples down 11%. That's one reason. Many people are also saying that one of the reasons why they're doing better is that value stocks in general do better when you have an environment where interest rates are going up and inflation is going up, is that something you buy into as well?
Rich Greifner: Yeah, for sure. It's just -- a lot of it goes back to what I was talking about previously, where the expectations are so low that when the outcome isn't that great, that's OK. I wasn't really expecting it. Another factor is, as you mentioned, with interest rates, the stock market is a discounting mechanism. For these value stocks a lot of them, they have current earnings power. Maybe the earnings power in the future isn't that great. But for growth stocks, you're really banking on those future earnings increasing significantly. When the interest rate is higher, the discounting mechanism is greater, meaning there's more emphasis placed on current earnings.
Robert Brokamp: Another way to think of it is a growth stock is a longer duration asset. The longer duration of the asset, the more sensitive it is to interest rates. When rates went down, that was part of why growth stocks did better. But now that they're going the other direction, it's a bigger drag on growth stocks.
Rich Greifner: You said that way more eloquently than I did, but yes. Thank you. Good.
Robert Brokamp: Just because a stock looks cheap doesn't mean it will be a good investment, so tell us what it means for a company to be a value trap?
Rich Greifner: Sure, value trap is the bane of the value investor. You're buying a stock based on its current earnings power and you're making the assumption that that current earnings power is sustainable, but with the value trap, it turns out, that earnings power wasn't sustainable and it looks like you overpaid and that wouldn't be so bad if that revelation occurred in one fell swoop. The stock goes down, you realize, I made a mistake, you sell out. The reason why the value trap is so pernicious is because it's death by 1,000 paper cuts quarter after quarter. The results aren't quite as good as you expected, but you can still justify holding the stock yourself because it wasn't that bad and the stock price has dropped, so it's still cheap. That happens all the way down and then a couple of years later you're looking at your portfolio and just wondering, why do I own this thing?
Robert Brokamp: As someone who does, I think I have somewhat of a tilt toward value. It has been, as we've pointed out, a rough several years up until around this year and a little bit last year you start to see some of the outperformance. Do you think this is the beginning of a longer trend of value outperformance, or do you think that once things settle down, like when we get back to normal inflation rate, normal interest rates, the economy returns to normal, that growth will once again get back on top?
Rich Greifner: I wish I knew the answer for sure. I will say, it's funny you say get back to normal interest rates, but like the 10 years at what, 3.6, 3.7, like that is the normal interest rate, the near-zero interest rates of the past 10 years, like that's the abnormal environment. Inflation is a bit higher than it had been at normal rate. The economy is performing a bit worse than normal rate, but interest rates, this is where we're supposed to be. I don't know what the future holds, but I will say looking back historically, as far back as the records go, value as a class has tended to outperform the rest of the market and growth. I guess that'd be my bet going forward is that trend will continue.
Robert Brokamp: Do you think there are other characteristics of value stocks that investors might find compelling besides just the plain old returns?
Rich Greifner: Besides wanting to make money in stocks. As we mentioned, they tend to hold up better in periods where the stock market as a whole doesn't do so well so if the recent stock market performance has you feeling a bit unnerved, do you want something that's historically held up better, has been more stable, you might want to consider increasing your allocation to value stocks.
Robert Brokamp: Again, as you look at some of the sectors that have held up better, it makes sense especially when you look at something like consumer staples. These are the traditional blue-chips. They're a little bit more value-oriented, maybe pay a little bit of a better dividend and then the type of companies where people are going to keep shopping at those places, regardless of what's going on, it's a nice ballast to your portfolio. Alison, when it comes to value investing, what comes to mind for you?
Alison Southwick: Rich, I always think of value investing as being for like the super wonky investor, for people who like to cozy up with financial statements before bed, but does this being a value investor like, take more research and fundamental analysis and work and effort, or can anyone just lean into the value a bit more?
Rich Greifner: Alison, you're not wrong. I think you've got to go with the investing strategy that appeals to you and to your personality type. I think value investing, if you like numbers, if you like going through data, if you crave a bit more certainty, I really want to know and understand what I'm buying. You want investing to be more of a science than an art. I think value investing appeals to a lot of folks like that. If that's not you, if you say that's not me, but I do want some more value exposure, there is lots of good index funds, lots of good value index funds, Bro mentioned one up top, where you can invest get diversified exposure to this class without having to curl up next to financial statements, as you said.
Alison Southwick: There is nothing wrong with wanting to curl up next to a financial statement.
Rich Greifner: Have a look at my bookshelf, I'm right there with you.
Alison Southwick: It's just funny when I think of a growth investor, I think of like, I'm the most optimistic person in the room whereas the value investor, I see someone who's a bit more like, well, I'm the most realistic person in the room. Ask me about all the discounted cash flow.
Rich Greifner: It's not as much fun as a cocktail party. It's not as much fun in general.
Alison Southwick: I'm not helping you sell it, am I?
Rich Greifner: It's a tough sell, that's the point. If it was an easy sell, everybody would do it. Being a growth investor is more fun. Of course, I want to own companies that are growing quickly, that everyone likes, the stock price is going up. That's more fun but, if it's a trade-off between having fun and making more money, I'm going to choose making more money.
Robert Brokamp: Since you mentioned the ETF, I should provide the ticker. It's a value Vanguard ETF is VTV, and that will be a large cap value ETF, if you're looking for small and mid-cap, the Vanguard Small-Cap is good. The ticker is VBR. It's good because it's a mix of both midcaps and small caps so you can get a good amount of value exposure through owning those ETFs and I should say that I own both of them. But what if you're looking for individual stocks? Let's close with that. Rich, what are some value-oriented stocks that you find particularly compelling nowadays?
Rich Greifner: I've got two companies I'd like to share with you these two companies they're both trading for about, call it 10-11 times trailing free cash flow. Just to provide some context, that is the price you might pay for a mediocre business, nothing special that's growing at a GDP, rate 3-4 percent. That is not the case for these two companies. They are two of the best companies in the world. Just they have all the characteristics that you would really want in a business; good management team, great balance sheet, high return on invested capital, good reinvestment opportunities, great free cash flow generation, and they're being priced as if they were mediocre business. If something is off, I think that price is a bit wrong. First company is Booking Holdings, it is the world's largest online travel agency or OTA. OTA is a beautiful business model.
Basically, they're the ones that aggregate travels, accommodations, so your hotel, your flight, your rental car, your activities while you're there, all that stuff. It allows consumers to compare, price it out, plan and purchase their trip online, which is clearly the direction the world and this industry is headed. OTAs have really just beautiful business models where it naturally leads toward a situation where there's one or two big winners in the market and that's because they benefit from very powerful network effect. Where the OTA, with the broadest portfolio of travel accommodations is going to attract the most travel purchasers to the platform. Then the platform with the most travel purchasers is going to attract more suppliers to come on. Yada yada, powerful network effect and booking is really special. It's got a dominant position in Europe. Unlike the U.S., where the landscape is dominated by a lot of major chains, in Europe, there's a lot of local Mom and Pop hotels and they really rely heavily on booking for marketing and distribution of their inventory.
Robert Brokamp: Did you say two companies?
Rich Greifner: Sure, I do have a second one.
Alison Southwick: I'm sorry Rich, I was promised two tickers, so I would like to hear about the second company, please.
Rich Greifner: If you guys have like a "boo" sound effect or like people getting angry you may want to prep that in advance.
Alison Southwick: I got to you.
Rich Greifner: My second company is one, you undoubtedly know. It's Meta Platforms, formerly known as Facebook. That look from Alison is basically the reason why I'm recommending it. Everyone knows what's wrong with Meta. TikTok is taking share. Apple's new tracking changes have impeded Facebook's ability to serve targeted ads. There's ethical concerns. They're laying off staff. They're investing billions of dollars into the Metaverse, which may never pan out. I'm sure there is a few things I've overlooked there. You guys can probably speak to them. It's always dangerous to say that's priced in. I'll just say, everyone knows about that stuff. That's the first thing you think of when you think of Meta. It's something negative. It's in the news all the time, negative, negative.
If you take a step back, this is a business that three billion people use their products and services on a monthly basis. They're quite literally connecting half the world. The company, despite investing tens of billions of dollars into this Metaverse, it is generating tons of free cash flow. Its on pace to generate something like call it 35 billion in free cash flow this year. Despite what you might read in the press, it's going to grow. That number is going to grow. Great business, visionary management team, excellent balance sheet, have all the attributes that you would want. There's a lot of hair, but if things aren't quite as bad as everybody fears, there's a lot of potential upsides here as well.
Alison Southwick: There you go, the growth stocks of yesterday are the value stocks of tomorrow.
Rich Greifner: You got it.
Robert Brokamp: That is a great way to end the interview. Rich, thanks so much for joining us.
Rich Greifner: Thank you, guys. I appreciate it.
Chris Hill: As always, people on the program may have interest in the stocks they talk about, and The Motley Fool may have formal recommendations for or against so don't buy or sell stocks based solely on what you hear. I'm Chris Hill. Thanks for listening. We'll see you tomorrow.
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Alison Southwick has positions in Apple. Asit Sharma has no position in any of the stocks mentioned. Chris Hill has positions in Apple, Chipotle Mexican Grill, and Starbucks. Rich Greifner has no position in any of the stocks mentioned. Robert Brokamp, CFP(R) has positions in Vanguard Value ETF. The Motley Fool has positions in and recommends Apple, Chipotle Mexican Grill, Farfetch Limited, Meta Platforms, Inc., Poshmark, Inc., Starbucks, ThredUp Inc., and Vanguard Value ETF. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple, short March 2023 $130 calls on Apple, and short October 2022 $85 calls on Starbucks. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Those may be able to be picked up for a song and that's where you see four to five years down the road, the most strategic parts of those assets get merged into a bigger company, and they have a net benefit that makes economic sense for the buyers that are offering the deal on the table today. I almost feel like, Chris, Chipotle was done a favor when it had those viral outbreaks few years before the pandemic and had to learn to deal with strained circumstances with customers that didn't want to come in the door, they became much more efficient. The Motley Fool has positions in and recommends Apple, Chipotle Mexican Grill, Farfetch Limited, Meta Platforms, Inc., Poshmark, Inc., Starbucks, ThredUp Inc., and Vanguard Value ETF.
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Motley Fool host Alison Southwick and Motley Fool personal finance expert Robert Brokamp talk with Motley Fool senior analyst Rich Greifner about the fundamentals of value investing. Just they have all the characteristics that you would really want in a business; good management team, great balance sheet, high return on invested capital, good reinvestment opportunities, great free cash flow generation, and they're being priced as if they were mediocre business. The Motley Fool has positions in and recommends Apple, Chipotle Mexican Grill, Farfetch Limited, Meta Platforms, Inc., Poshmark, Inc., Starbucks, ThredUp Inc., and Vanguard Value ETF.
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Motley Fool Senior Analyst Rich Greifner joined Robert Brokamp and Alison Southwick to talk about the fundamentals of value investing, as well as stock ideas. As we mentioned, they tend to hold up better in periods where the stock market as a whole doesn't do so well so if the recent stock market performance has you feeling a bit unnerved, do you want something that's historically held up better, has been more stable, you might want to consider increasing your allocation to value stocks. Chris Hill: As always, people on the program may have interest in the stocks they talk about, and The Motley Fool may have formal recommendations for or against so don't buy or sell stocks based solely on what you hear.
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Robert Brokamp: Just because a stock looks cheap doesn't mean it will be a good investment, so tell us what it means for a company to be a value trap? Rich Greifner: I've got two companies I'd like to share with you these two companies they're both trading for about, call it 10-11 times trailing free cash flow. Alison Southwick: There you go, the growth stocks of yesterday are the value stocks of tomorrow.
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2022-10-08 00:00:00 UTC
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Here's Why 54% of My Portfolio Is in This Top Index Fund
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https://www.nasdaq.com/articles/heres-why-54-of-my-portfolio-is-in-this-top-index-fund
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When it comes to investing, no investment strategy fits everyone. Some are comfortable with taking risks and investing solely in individual stocks. Others might not have the time, desire, or risk appetite to do so, instead swaying toward exchange-traded funds (ETFs).
No matter your strategy, many investors crave the stability and reliability of having their core holdings in an ETF. This is my strategy, and the bedrock portion of my portfolio has been built on one ETF in particular: the Vanguard S&P 500 ETF (NYSEMKT: VOO). This fund is suited for my portfolio -- 54% of it to be exact -- and here's why it might be right for you too.
Image source: Getty Images.
Buying the entire U.S stock market
Many experts warn against excess concentration in any single stock, and 54% of one's portfolio in just one security is undoubtedly concentrated. That said, this situation is different. The Vanguard S&P 500 invests in the 500 or so largest U.S. companies, mirroring the traditional S&P 500. This includes a wide range of stocks, everything from Apple to Johnson & Johnson. Therefore, while I might have a heavy concentration in this one ETF, it still contributes to a diversified portfolio.
What's great about this ETF is you barely have to pay anything to own it. The expense ratio -- the percent of your investment a fund charges each year to manage your money -- is just 0.03%. In other words, if you invest $1,000 into this ETF, they will only charge 30 cents annually. Comparatively, similar index funds can have expense ratios closer to 0.80%, a far higher fee that can eat into your returns long term.
A tried and true solution to deliver stable returns over the long haul
The Vanguard S&P 500 ETF has done a stellar job at replicating the performance of the overall S&P 500. Since the ETF's inception in 2010, it has returned an average annual return of 12.54%, not far from its benchmark's performance of 12.56% over the same period. That's the beauty of this ETF: It's not trying to beat the broad market but rather mirror it to achieve solid returns for the long haul.
Investors have a bright future assuming this performance can continue over the long term considering the S&P 500 hasn't seen a negative return on a rolling 20-year basis over the past century, according to Crestmont Research. In other words, if you owned the S&P 500 for any 20-year period dating back to 1919, you would have seen positive returns. While past performance doesn't guarantee future results, the chances of this continuing are high as long as the United States remains a global economic leader.
For an investor with multiple decades in front of them, they should aim to own a fund that can consistently match the market and provide those steady returns. The Vanguard S&P 500 ETF has proven it can do that. And as my core investment, this portion of my portfolio serves as my "safe" money -- money I can count on by the time I retire.
With time on my side, I'm letting compounding build the returns for me. If the past is any indicator, that's all that's needed too. Since 1871, the S&P 500 has returned a compound annual growth rate of 9.37%. If that continues for the next 40 years, just $10,000 today could become worth nearly $360,000.
Why 54%?
No strategy fits all, but some investors want to leave some dry powder to invest in individual stocks, myself included. That's why only 54% of my portfolio is in this ETF. The rest is in individual stocks like MercadoLibre, Chipotle Mexican Grill, and many more.
Why? Because I enjoy researching new companies, finding innovative ideas and businesses, and learning more about the world around me. While the goal is to generate solid returns for my retirement, I also have the potential to beat the market with this strategy.
This might be a perfect balance for me, but it might not be for you. No two investors are precisely alike, so finding what works best for you is critical. However, if you're looking for a stable ETF to build your portfolio around, the Vanguard S&P 500 could be the one.
10 stocks we like better than Vanguard S&P 500 ETF
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Vanguard S&P 500 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
Jamie Louko has positions in Apple, Chipotle Mexican Grill, MercadoLibre, and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Apple, Chipotle Mexican Grill, MercadoLibre, and Vanguard S&P 500 ETF. The Motley Fool recommends Johnson & Johnson 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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Investors have a bright future assuming this performance can continue over the long term considering the S&P 500 hasn't seen a negative return on a rolling 20-year basis over the past century, according to Crestmont Research. While past performance doesn't guarantee future results, the chances of this continuing are high as long as the United States remains a global economic leader. For an investor with multiple decades in front of them, they should aim to own a fund that can consistently match the market and provide those steady returns.
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See the 10 stocks *Stock Advisor returns as of September 30, 2022 Jamie Louko has positions in Apple, Chipotle Mexican Grill, MercadoLibre, and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Apple, Chipotle Mexican Grill, MercadoLibre, and Vanguard S&P 500 ETF. The Motley Fool recommends Johnson & Johnson and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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This is my strategy, and the bedrock portion of my portfolio has been built on one ETF in particular: the Vanguard S&P 500 ETF (NYSEMKT: VOO). 10 stocks we like better than Vanguard S&P 500 ETF When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Jamie Louko has positions in Apple, Chipotle Mexican Grill, MercadoLibre, and Vanguard S&P 500 ETF.
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When it comes to investing, no investment strategy fits everyone. The expense ratio -- the percent of your investment a fund charges each year to manage your money -- is just 0.03%. Investors have a bright future assuming this performance can continue over the long term considering the S&P 500 hasn't seen a negative return on a rolling 20-year basis over the past century, according to Crestmont Research.
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18976.0
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2022-10-08 00:00:00 UTC
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Got $1,000? 5 Buffett Stocks to Buy and Hold Forever.
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https://www.nasdaq.com/articles/got-%241000-5-buffett-stocks-to-buy-and-hold-forever.
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Warren Buffett has employed a long-term investing approach to drive incredible results for Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). As the Oracle of Omaha has notably stated, his preferred holding period for a stock is forever, and that buy-to-hold approach has generally served him well, even though not every investment winds up being worth owning into eternity. Berkshire Hathaway's stock has climbed by about 4,570% over the last 30 years -- enough to turn a $1,000 investment into $45,700.
If you're looking for stocks that are worth owning for the ultra long-term, taking some cues from the holdings of Buffett's famously successful conglomerate is a natural move. And in my view, these five stocks currently in the Berkshire Hathaway portfolio are worth buying and holding forever.
Image source: The Motley Fool.
1. Amazon
What started as an online bookstore has gone on to become one of the world's most influential companies. Amazon (NASDAQ: AMZN) leads the online retail market, and the tech giant also has a formidable position in the cloud infrastructure services market.
E-commerce and cloud services both look poised for big growth over the long term, and Amazon's massive resources and its penchant for innovation will likely help it score more wins and expand in new categories. While Berkshire Hathaway has a relatively small position in Amazon, the company remains one of the most exciting companies in the conglomerate's portfolio, and the stock looks poised to deliver impressive returns for long-term investors.
2. Apple
Apple (NASDAQ: AAPL) has one of the strongest brands in the world, and it's the clear leader in mobile hardware. Despite plenty of competition, Apple generates the large majority of the world's profits when it comes to smartphones and tablets, and the strength of the company's ecosystem extends to the software space as well. Not only is Apple's dedicated customer base more willing to pay a premium for iPhones and upgrade to new devices on a more regular basis, but its customers also spend much more on apps.
Apple has built a fantastic ecosystem, and it currently stands as the largest company in the world, with a market cap of roughly $2.29 trillion. It's also Berkshire Hathaway's single largest stock holding, accounting for roughly 39% of the portfolio's value thanks to repeated purchases and huge capital appreciation.
3. Bank of America
Bank of America (NYSE: BAC) stands as Berkshire Hathaway's second-largest holding and accounts for roughly 10% of the conglomerate's stock portfolio. There will always be a need for financial services, and the bank's scale and breadth of offerings for consumers, businesses, and organizations put it in a good position to help facilitate and benefit from long-term economic growth.
Berkshire established a large position in Bank of America when the financial giant was struggling back in 2011, and Buffett's company has continued to increase its holdings in the bank through the years. The stock pays a dividend that yields roughly 2.8% at the current share price, and Bank of America's improving financials over the last decade have allowed the company to get back to delivering regular annual payout growth.
Management's focus on creating foundations for responsible growth appears to have the business on track for strong performance over the long term. With the stock down roughly 31% year to date and 38% from its high amid pressures impacting financial services companies and the market at large, now could be a good time to take a buy-and-hold approach to this top bank stock.
4. Coca-Cola
Buffett's love for Coca-Cola's (NYSE: KO) sodas is no secret, and the Oracle of Omaha is a big fan of the company's stock as well. Coke accounts for 8% of Berkshire Hathaway's stock portfolio and stands as its third-largest stock holding.
While its soda sales have declined on a volume basis in recent years, the beverage giant has been able to continue growing its revenue and earnings by raising prices and branching into new product categories. Coca-Cola has fantastic brand strength, and 20 of its products generate more than $1 billion in sales each year. The company's portfolio of popular products and its large infrastructure and distribution advantages combine to create a powerful moat, and it is positioned to continue shaping its industry for decades to come.
Coca-Cola pays a dividend that at the current share price yields 3.1%, and it has raised its payout annually for 60 years straight -- putting it well past the 50-year streak required to reach Dividend King status.
5. Snowflake
Snowflake (NYSE: SNOW) is among Berkshire Hathaway's riskier holdings, but it could be one of the portfolio's best performers over the next decade and beyond. The company's data warehousing software makes it possible to combine and analyze data from the cloud infrastructure services of Amazon, Microsoft, and Alphabet. Data analytics is only becoming more important for businesses when it comes to making strategic decisions and running applications, and Snowflake's business is growing at an impressive clip. Berkshire Hathaway has a relatively small position in Snowflake, but this software leader is on track for big things.
Last quarter, Snowflake posted a net-revenue-expansion rate of 171%, which means that its existing customers increased their spending on the company's services by 71% compared to the prior-year period. The data specialist's customer count also increased by roughly 34% year over year. With the company attracting new customers and increasing its revenue from those already using its platform, Snowflake has a powerful growth engine, and continued adoption of its data platform could power market-crushing performance from the stock.
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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. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), Microsoft, and Snowflake Inc. 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 Apple (NASDAQ: AAPL) has one of the strongest brands in the world, and it's the clear leader in mobile hardware. As the Oracle of Omaha has notably stated, his preferred holding period for a stock is forever, and that buy-to-hold approach has generally served him well, even though not every investment winds up being worth owning into eternity. The stock pays a dividend that yields roughly 2.8% at the current share price, and Bank of America's improving financials over the last decade have allowed the company to get back to delivering regular annual payout growth.
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Apple Apple (NASDAQ: AAPL) has one of the strongest brands in the world, and it's the clear leader in mobile hardware. The stock pays a dividend that yields roughly 2.8% at the current share price, and Bank of America's improving financials over the last decade have allowed the company to get back to delivering regular annual payout growth. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), Microsoft, and Snowflake Inc.
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Apple Apple (NASDAQ: AAPL) has one of the strongest brands in the world, and it's the clear leader in mobile hardware. While Berkshire Hathaway has a relatively small position in Amazon, the company remains one of the most exciting companies in the conglomerate's portfolio, and the stock looks poised to deliver impressive returns for long-term investors. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), Microsoft, and Snowflake Inc.
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Apple Apple (NASDAQ: AAPL) has one of the strongest brands in the world, and it's the clear leader in mobile hardware. And in my view, these five stocks currently in the Berkshire Hathaway portfolio are worth buying and holding forever. Bank of America Bank of America (NYSE: BAC) stands as Berkshire Hathaway's second-largest holding and accounts for roughly 10% of the conglomerate's stock portfolio.
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18977.0
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2022-10-08 00:00:00 UTC
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3 Dividend-Paying Tech Stocks to Buy In October
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https://www.nasdaq.com/articles/3-dividend-paying-tech-stocks-to-buy-in-october-0
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For many investors, dividend stocks and tech stocks are a contradiction.
After all, tech stocks tend to be growth-oriented, and most choose to reinvest profits in the growth of the company, rather than paying them out to shareholders. Longtime Apple CEO Steve Jobs refused to pay a dividend, saying it was a sign a company was out of ideas.
However, there are some dividend-paying tech stocks out there, among more mature companies and certain sectors like semiconductors. Keep reading to see three that are great buys now.
1. The leader of enterprise technology
It's hard to think of an area of enterprise software that Microsoft (NASDAQ: MSFT) doesn't have its hands in. With its massive base of Windows and Office users, Microsoft can easily add and scale new products, like Teams, its competitor to Slack, the messaging platform that was acquired by Salesforce for $28 billion last year, or Azure, its cloud infrastructure business that is now challenging Amazon Web Services for industry leadership.
Microsoft also spins off so much cash that it can easily grow through acquisitions, including LinkedIn, GitHub, and its pending deal for Activision Blizzard. These acquisitions have strengthened its positions in professional networking and social media, DevOps and open source, and video games.
In other words, Microsoft's competitive advantages in enterprise technology only appear to be getting stronger, and its numbers back that up. In the second quarter, revenue jumped 12%, or 16% in constant currency, to $51.9 billion, while operating income rose 14% in constant currency to $20.5 billion, giving the company a whopping 40% operating margin. Growth was broad-based, and the intelligent cloud, which includes Azure, is now its biggest business segment. Guidance was also strong for the full year, calling for 19% growth in constant-currency revenue and 21% growth in constant-currency operating income.
Microsoft currently offers a 1.1% dividend yield, and just raised it by 10% to $0.68 per share each quarter. With its product diversity and installed base of users, Microsoft is a good bet to outperform in a recession. Expect the company to deliver another solid round of results when it reports third-quarter earnings later this month.
2. A sticky software ecosystem
Intuit (NASDAQ: INTU), the parent of online business tools like QuickBooks and TurboTax, has an enviable business model.
Once you've uploaded your information and are used to using its products, there are significant switching costs, giving it a sticky product ecosystem. Repeat customers are also the cheapest to serve, as there are no acquisition costs.
Over the last decade, Intuit has moved its software to the cloud, which has helped drive strong profitability. In its fiscal year just ended, it posted $2.1 billion in net income on $10.2 billion in revenue, or a margin of 20.3%.
Its growth also remains strong, with organic revenue up 24% in its most recent quarter, or 32% including its acquisition of Mailchimp. In QuickBooks, its biggest business, revenue rose 34% for the quarter and 33% for the fiscal year.
Like Microsoft, Intuit should fare well even in a recession. The company provides tools that businesses rely on, and its profits make it less vulnerable to an economic downturn than unprofitable software stocks.
With a 0.8% dividend yield, Intuit won't win any awards from income investors, but shareholders should expect that payout to grow over time given the company's growth rate. Management has raised the dividend every year by 10% or more since it initiated it in 2011. Meanwhile, the stock is down more than 40% from its peak last November, making now a good time to buy.
3. The company the world depends on
Taiwan Semiconductor Manufacturing Company (NYSE: TSM) may not be a household name in the U.S., even among investors, but there's a good chance you use the chips it's manufactured.
That's because its chips are in most of the world's devices. The company makes 65% of the world's semiconductors and 90% of its advanced chips. Other chip companies focus on design, but most outsource the fabrication to TSMC, giving the company a near-monopoly in manufacturing. It's capital intensive to build semiconductor foundries. Even though the U.S. just passed the CHIPS Act to fund more domestic production, it will take a lot to unseat Taiwan Semi as the category leader, especially as it continues to put up strong growth.
In its second quarter, revenue rose 36.6% to $18.16 billion, and earnings per share jumped 76.4%. The company's profit margins are also outstanding, with a 44.3% net margin in the second quarter.
Based in Taiwan, TSMC is insulated from much of the tumult around Chinese stocks, making it more reliable than its mainland-based peers. The company is a solid dividend payer, currently offering a yield of 2.4%.
With the stock down 50% from its peak in January on this dominant business, investors should take advantage of the sell-off.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jeremy Bowman has positions in Amazon. The Motley Fool has positions in and recommends Activision Blizzard, Amazon, Apple, Intuit, Microsoft, Salesforce, Inc., and Taiwan Semiconductor Manufacturing. 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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With its massive base of Windows and Office users, Microsoft can easily add and scale new products, like Teams, its competitor to Slack, the messaging platform that was acquired by Salesforce for $28 billion last year, or Azure, its cloud infrastructure business that is now challenging Amazon Web Services for industry leadership. With a 0.8% dividend yield, Intuit won't win any awards from income investors, but shareholders should expect that payout to grow over time given the company's growth rate. Even though the U.S. just passed the CHIPS Act to fund more domestic production, it will take a lot to unseat Taiwan Semi as the category leader, especially as it continues to put up strong growth.
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In the second quarter, revenue jumped 12%, or 16% in constant currency, to $51.9 billion, while operating income rose 14% in constant currency to $20.5 billion, giving the company a whopping 40% operating margin. Guidance was also strong for the full year, calling for 19% growth in constant-currency revenue and 21% growth in constant-currency operating income. The Motley Fool has positions in and recommends Activision Blizzard, Amazon, Apple, Intuit, Microsoft, Salesforce, Inc., and Taiwan Semiconductor Manufacturing.
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In the second quarter, revenue jumped 12%, or 16% in constant currency, to $51.9 billion, while operating income rose 14% in constant currency to $20.5 billion, giving the company a whopping 40% operating margin. The company the world depends on Taiwan Semiconductor Manufacturing Company (NYSE: TSM) may not be a household name in the U.S., even among investors, but there's a good chance you use the chips it's manufactured. The Motley Fool has positions in and recommends Activision Blizzard, Amazon, Apple, Intuit, Microsoft, Salesforce, Inc., and Taiwan Semiconductor Manufacturing.
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For many investors, dividend stocks and tech stocks are a contradiction. Meanwhile, the stock is down more than 40% from its peak last November, making now a good time to buy. The Motley Fool has positions in and recommends Activision Blizzard, Amazon, Apple, Intuit, Microsoft, Salesforce, Inc., and Taiwan Semiconductor Manufacturing.
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18978.0
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2022-10-08 00:00:00 UTC
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Musk offers proposal on China-Taiwan tensions, after Russia-Ukraine plan
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https://www.nasdaq.com/articles/musk-offers-proposal-on-china-taiwan-tensions-after-russia-ukraine-plan
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By Kanishka Singh and Hyunjoo Jin
WASHINGTON, Oct 7 (Reuters) - Billionaire Elon Musk, days after floating a possible deal to end the war between Russia and Ukraine that drew condemnation in Ukraine, suggested that tensions between China and Taiwan could be resolved by handing over some control of Taiwan to Beijing.
"My recommendation . . . would be to figure out a special administrative zone for Taiwan that is reasonably palatable, probably won't make everyone happy," the world's richest person, told the Financial Times in an interview published on Friday.
Musk was responding to a question about China, where his Tesla TSLA.O electric car company operates a large factory in Shanghai.
Beijing, which says democratically ruled Taiwan is one of its provinces, has long vowed to bring Taiwan under its control and has not ruled out the use of force to do so. Taiwan's government strongly objects to China's sovereignty claims and says only the island's 23 million people can decide its future.
"And it's possible, and I think probably, in fact, that they could have an arrangement that's more lenient than Hong Kong," Musk, was quoted as saying by the newspaper.
China has offered Taiwan a "one country, two systems" model of autonomy similar to what Hong Kong has, but that has been rejected by all mainstream political parties in Taiwan and has no public support, especially after Beijing imposed a tough National Security Law in the city in 2020.
Taiwan's Foreign Ministry declined to comment on Musk's comments on Saturday.
Wang Ting-yu, a senior lawmaker for Taiwan's ruling Democratic Progressive Party who sits on parliament's foreign affairs and defense committee, slammed Musk on his Facebook page.
"Individual independent companies cannot take their ownership as a joke," Wang said. "So why should they casually pass off the democratic freedoms, sovereignty and way of life of 23 million Taiwanese? It's not acceptable for Ukraine, and Taiwan certainly won't allow it."
A senior Taiwanese official familiar with security planning in the region told Reuters that "Musk needs to find a clear-headed political adviser".
"The world has seen clearly what happened to Hong Kong," the official said on condition of anonymity as he was not authorized to speak to the media. "Hong Kong's economic and social vibrancy abruptly ended under Beijing's totalitarian rule."
Chinese foreign ministry spokesperson Mao Ning, asked about Musk's remarks, said Taiwan was a "domestic affair", adding that Beijing would continue to adhere to the principle of peaceful reunification while "resolutely smashing" Taiwanese separatism.
The Shanghai factory accounted for about half of Tesla's global deliveries last year. Musk said China has sought assurances that he would not offer the Starlink internet service of his SpaceX rocket company there.
Musk said he reckoned that conflict over Taiwan was inevitable and warned of its potential impact on not only Tesla, but also on iPhone maker Apple Inc AAPL.O and the wider economy. The interview did not elaborate on those remarks.
Earlier this week, Musk proposed that Ukraine permanently cede Crimea to Russia, that new referendums be held under U.N. auspices to determine the fate of Russian-controlled territory, and that Ukraine agree to neutrality.
He asked Twitter users to weigh in on his plan, drawing sharp criticism from Ukrainian President Volodymyr Zelenskiy, who proposed his own Twitter poll: "Which @elonmusk do you like more? One who supports Ukraine (or) one who supports Russia."
(Reporting by Kanishka Singh in Washington and Hyunjoo Jin in San Francisco; Additional reporting by Yimou Lee and Ben Blanchard in Taipei, and Yew Lun Tian in Beijing; Editing by Leslie Adler and William Mallard)
((Kanishka.Singh@thomsonreuters.com; +12024508248;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Musk said he reckoned that conflict over Taiwan was inevitable and warned of its potential impact on not only Tesla, but also on iPhone maker Apple Inc AAPL.O and the wider economy. would be to figure out a special administrative zone for Taiwan that is reasonably palatable, probably won't make everyone happy," the world's richest person, told the Financial Times in an interview published on Friday. Wang Ting-yu, a senior lawmaker for Taiwan's ruling Democratic Progressive Party who sits on parliament's foreign affairs and defense committee, slammed Musk on his Facebook page.
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Musk said he reckoned that conflict over Taiwan was inevitable and warned of its potential impact on not only Tesla, but also on iPhone maker Apple Inc AAPL.O and the wider economy. By Kanishka Singh and Hyunjoo Jin WASHINGTON, Oct 7 (Reuters) - Billionaire Elon Musk, days after floating a possible deal to end the war between Russia and Ukraine that drew condemnation in Ukraine, suggested that tensions between China and Taiwan could be resolved by handing over some control of Taiwan to Beijing. Taiwan's Foreign Ministry declined to comment on Musk's comments on Saturday.
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Musk said he reckoned that conflict over Taiwan was inevitable and warned of its potential impact on not only Tesla, but also on iPhone maker Apple Inc AAPL.O and the wider economy. By Kanishka Singh and Hyunjoo Jin WASHINGTON, Oct 7 (Reuters) - Billionaire Elon Musk, days after floating a possible deal to end the war between Russia and Ukraine that drew condemnation in Ukraine, suggested that tensions between China and Taiwan could be resolved by handing over some control of Taiwan to Beijing. China has offered Taiwan a "one country, two systems" model of autonomy similar to what Hong Kong has, but that has been rejected by all mainstream political parties in Taiwan and has no public support, especially after Beijing imposed a tough National Security Law in the city in 2020.
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Musk said he reckoned that conflict over Taiwan was inevitable and warned of its potential impact on not only Tesla, but also on iPhone maker Apple Inc AAPL.O and the wider economy. By Kanishka Singh and Hyunjoo Jin WASHINGTON, Oct 7 (Reuters) - Billionaire Elon Musk, days after floating a possible deal to end the war between Russia and Ukraine that drew condemnation in Ukraine, suggested that tensions between China and Taiwan could be resolved by handing over some control of Taiwan to Beijing. Musk was responding to a question about China, where his Tesla TSLA.O electric car company operates a large factory in Shanghai.
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18979.0
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2022-10-08 00:00:00 UTC
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This Top Tech Stock Is Now Yielding a 3.5% a Year Dividend
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https://www.nasdaq.com/articles/this-top-tech-stock-is-now-yielding-a-3.5-a-year-dividend
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We're now a long way removed from the high-growth stock hype of 2021. Investors have taken a hard left and are now favoring highly profitable businesses that pay dividends. But the ability to dole out quarterly income isn't a lifesaver. Take Swiss tech company Garmin (NYSE: GRMN) as an example. Shares are down 54% from their peak last year as sales cool down from an early pandemic consumer spending frenzy.
After the massive sell-off, Garmin stock is now paying a 3.5% annualized dividend yield. Is it time to start nibbling if investment income is your preference?
Garmin fitness is off course
Once upon a time, Garmin was primarily a GPS (global positioning system) device company. It still makes products geared toward the marine, aviation, and auto industries. But these days, the company's main breadwinner is wearable gear for fitness and outdoor enthusiasts.
And that's been part of the problem as of late. Garmin's outdoor segment (led by its "adventure watches," smartwatches for hikers and the like) has been a fantastic guide for the company. Outdoor sales were $767 million in the first half of 2022, up 32% year over year. But the fitness segment, its largest in 2021, dropped 32% year over year to $493 million. Its indoor cycling products are in decline (yup, it isn't just Peloton (NASDAQ: PTON) hurting), as are its other smartwatches that more directly compete with the likes of Apple (NASDAQ: AAPL) and Android-powered devices.
The rest of the business has been fairly stable, though some GPS products for marine and auto have been throttled by supply chain issues. Nevertheless, because of the overall flatlining of revenue so far in 2022 (up just 1%) and a modest rise in operating expenses like research and development (up 10%), Garmin's operating profit margin has declined significantly. The first-half 2022 operating margin was 21.6%, compared to 25.9% last year.
Granted, tech hardware sales -- especially those aimed at consumers -- tend to be cyclical for just about every company on the planet (even Apple, though to a lesser extent). Operating margins thus fluctuate, as they have in the past for Garmin. But for a dividend-paying company, too much of a dip can spell trouble for that payout. The company's full-year guidance for revenue to fall 25% year over year and operating margin to be just 20% implies more dip lies ahead. Is Garmin in trouble?
A history of payout increases
This particular cyclical cool-off is looking like it will be as abrupt as Garmin's early pandemic run-up was. That's why the stock has reacted so dramatically in the last year. But Garmin is hardly in trouble -- and neither is its dividend.
Like the rest of the consumer electronics industry, it appears that high inflation has households reassessing where they spend in favor of more basic items. So far, though, the global consumer appears to be in good health for now. Garmin is releasing refreshed product lineups and is still enjoying growth within certain segments of its business, even as overall revenue is being dragged down by a reduction in fitness gear spending.
As for the operating margin, at 20% (or $1 billion based on the $5 billion in expected revenue), that's still more than enough to cover the dividend payment. Through the first half of the year, Garmin's payout cost only $258 million.
This tech company thus has a wide margin of safety on its shareholder return program and ample space to increase that payout over time. In fact, that has been Garmin's focus. As it has steadily grown its product portfolio over the years, it has been able to steadily grow its quarterly payout, up 57% over the last decade. It's not the biggest dividend increase, but Garmin is doing just fine in this department.
Add to this the fact the company had $1.61 billion in cash and short-term investments, another $1.25 billion in longer-term marketable investments, and no debt. Garmin is still a rock-solid business as it weathers the current economic storm and slowing consumer spending. Indeed, analysts project the company could still manage double-digit earnings growth for the next five years.
Garmin shares currently trade for 17 times enterprise value to earnings (or 38 times on a free cash flow basis), so this isn't exactly a cheap stock. Personally, I'd wait for more clear signs that sales are finding a bottom before nibbling. Nevertheless, if you think Garmin's revenue can make a comeback in 2023 as analysts anticipate, this top tech dividend is worth keeping on your proverbial investment GPS.
10 stocks we like better than Garmin
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Garmin wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Nicholas Rossolillo and his clients have positions in Apple. The Motley Fool has positions in and recommends Apple, Garmin, and Peloton Interactive. 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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Its indoor cycling products are in decline (yup, it isn't just Peloton (NASDAQ: PTON) hurting), as are its other smartwatches that more directly compete with the likes of Apple (NASDAQ: AAPL) and Android-powered devices. Like the rest of the consumer electronics industry, it appears that high inflation has households reassessing where they spend in favor of more basic items. Garmin is releasing refreshed product lineups and is still enjoying growth within certain segments of its business, even as overall revenue is being dragged down by a reduction in fitness gear spending.
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Its indoor cycling products are in decline (yup, it isn't just Peloton (NASDAQ: PTON) hurting), as are its other smartwatches that more directly compete with the likes of Apple (NASDAQ: AAPL) and Android-powered devices. Investors have taken a hard left and are now favoring highly profitable businesses that pay dividends. Garmin fitness is off course Once upon a time, Garmin was primarily a GPS (global positioning system) device company.
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Its indoor cycling products are in decline (yup, it isn't just Peloton (NASDAQ: PTON) hurting), as are its other smartwatches that more directly compete with the likes of Apple (NASDAQ: AAPL) and Android-powered devices. Garmin fitness is off course Once upon a time, Garmin was primarily a GPS (global positioning system) device company. The company's full-year guidance for revenue to fall 25% year over year and operating margin to be just 20% implies more dip lies ahead.
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Its indoor cycling products are in decline (yup, it isn't just Peloton (NASDAQ: PTON) hurting), as are its other smartwatches that more directly compete with the likes of Apple (NASDAQ: AAPL) and Android-powered devices. Outdoor sales were $767 million in the first half of 2022, up 32% year over year. The company's full-year guidance for revenue to fall 25% year over year and operating margin to be just 20% implies more dip lies ahead.
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18980.0
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2022-10-07 00:00:00 UTC
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US STOCKS-Wall Street slips as jobs growth boosts rate hike bets
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https://www.nasdaq.com/articles/us-stocks-wall-street-slips-as-jobs-growth-boosts-rate-hike-bets
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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. adds more-than-expected jobs in September
U.S. unemployment rate falls to 3.5%
AMD leads chipmakers lower after revenue warning
Technology leads sectoral declines on S&P 500
Indexes: Dow 1.63%, S&P 2.14%, Nasdaq 2.80%
Updates prices at open, adds comments
By Shreyashi Sanyal and Ankika Biswas
Oct 7 (Reuters) - Wall Street slid on Friday as solid job growth and a drop in the unemployment rate last month gave more room for the Federal Reserve to stick to jumbo-sized interest rate hikes, while a revenue warning from Advanced Micro Devices hit chipmakers.
The Labor Department's closely watched employment report showed nonfarm payrolls increased by 263,000 jobs last month after rising 315,000 in August.
The report also showed the jobless rate fell to 3.5% in September, lower than expectations of 3.7%. Traders now see a 92% chance of 75 basis-point hike by the Fed, up from 83.4% before data.
Aggressive rise in borrowing costs have stoked fears of slowing economic growth and a hit to corporate profits, but with the labor market remaining tight, the Fed was likely to continue with its monetary tightening plan.
"The markets are worried that the Fed is going to rely on information like this that's really a month old and they're going to overshoot and kill the economy," said Kim Forrest, chief investment officer at Bokeh Capital Partners.
"Investors don't have confidence in a soft landing because the Fed continues to have to ramp higher and higher to begin to slow the economy down."
The Philadelphia Semiconductor SE index .SOX shed 4.2%, and was set for its biggest one-day percentage decline in nearly a month as a revenue warning from Advanced Micro Devices Inc AMD.O signaled the chip slump could be worse than expected.
AMD fell 7.97% as its third-quarter revenue estimates were about a billion dollars less than previously forecast.
Peers Qualcomm Inc QCOM.O, Intel Corp INTC.O, ON Semiconductors ON.O, Lam Research LRCX.O, and Nvidia Corp NVDA.O shed between 2.65% and 4.88%.
"People who had been hoping for some kind of turnaround in the chips are starting to give up that hope," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.
The S&P 500 technology sector .SPLRCT index fell 3.1%, leading declines among the 11 major sector indexes.
At 10:02 a.m. ET, the Dow Jones Industrial Average .DJI was down 488.84 points, or 1.63%, at 29,438.10, the S&P 500 .SPX was down 80.05 points, or 2.14%, at 3,664.47, and the Nasdaq Composite .IXIC was down 309.86 points, or 2.80%, at 10,763.45.
All three main Wall Street indexes are still set to snap a three-week losing streak, heading for their biggest weekly gain in almost a month.
With the benchmark 10-year Treasury yield US10YT=RR rising to 3.8875%, most rate-sensitive technology and growth stocks such as Alphabet Inc GOOGL.O, Amazon.com AMZN.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O fell between 2.25% and 3.92%.US/
Declining issues outnumbered advancers for a 7.75-to-1 ratio on the NYSE and for a 4.70-to-1 ratio on the Nasdaq.
The S&P index recorded two new 52-week highs and 49 new lows, while the Nasdaq recorded 12 new highs and 148 new lows.
(Reporting by Ankika Biswas and Shreyashi Sanyal in Bengaluru; Additional reporting by Bansari Mayur Kamdar; Editing by 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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With the benchmark 10-year Treasury yield US10YT=RR rising to 3.8875%, most rate-sensitive technology and growth stocks such as Alphabet Inc GOOGL.O, Amazon.com AMZN.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O fell between 2.25% and 3.92%.US/ Declining issues outnumbered advancers for a 7.75-to-1 ratio on the NYSE and for a 4.70-to-1 ratio on the Nasdaq. Aggressive rise in borrowing costs have stoked fears of slowing economic growth and a hit to corporate profits, but with the labor market remaining tight, the Fed was likely to continue with its monetary tightening plan. "The markets are worried that the Fed is going to rely on information like this that's really a month old and they're going to overshoot and kill the economy," said Kim Forrest, chief investment officer at Bokeh Capital Partners.
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With the benchmark 10-year Treasury yield US10YT=RR rising to 3.8875%, most rate-sensitive technology and growth stocks such as Alphabet Inc GOOGL.O, Amazon.com AMZN.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O fell between 2.25% and 3.92%.US/ Declining issues outnumbered advancers for a 7.75-to-1 ratio on the NYSE and for a 4.70-to-1 ratio on the Nasdaq. U.S. adds more-than-expected jobs in September U.S. unemployment rate falls to 3.5% AMD leads chipmakers lower after revenue warning Technology leads sectoral declines on S&P 500 Indexes: Dow 1.63%, S&P 2.14%, Nasdaq 2.80% Updates prices at open, adds comments By Shreyashi Sanyal and Ankika Biswas Oct 7 (Reuters) - Wall Street slid on Friday as solid job growth and a drop in the unemployment rate last month gave more room for the Federal Reserve to stick to jumbo-sized interest rate hikes, while a revenue warning from Advanced Micro Devices hit chipmakers. The Philadelphia Semiconductor SE index .SOX shed 4.2%, and was set for its biggest one-day percentage decline in nearly a month as a revenue warning from Advanced Micro Devices Inc AMD.O signaled the chip slump could be worse than expected.
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With the benchmark 10-year Treasury yield US10YT=RR rising to 3.8875%, most rate-sensitive technology and growth stocks such as Alphabet Inc GOOGL.O, Amazon.com AMZN.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O fell between 2.25% and 3.92%.US/ Declining issues outnumbered advancers for a 7.75-to-1 ratio on the NYSE and for a 4.70-to-1 ratio on the Nasdaq. U.S. adds more-than-expected jobs in September U.S. unemployment rate falls to 3.5% AMD leads chipmakers lower after revenue warning Technology leads sectoral declines on S&P 500 Indexes: Dow 1.63%, S&P 2.14%, Nasdaq 2.80% Updates prices at open, adds comments By Shreyashi Sanyal and Ankika Biswas Oct 7 (Reuters) - Wall Street slid on Friday as solid job growth and a drop in the unemployment rate last month gave more room for the Federal Reserve to stick to jumbo-sized interest rate hikes, while a revenue warning from Advanced Micro Devices hit chipmakers. The Philadelphia Semiconductor SE index .SOX shed 4.2%, and was set for its biggest one-day percentage decline in nearly a month as a revenue warning from Advanced Micro Devices Inc AMD.O signaled the chip slump could be worse than expected.
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With the benchmark 10-year Treasury yield US10YT=RR rising to 3.8875%, most rate-sensitive technology and growth stocks such as Alphabet Inc GOOGL.O, Amazon.com AMZN.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O fell between 2.25% and 3.92%.US/ Declining issues outnumbered advancers for a 7.75-to-1 ratio on the NYSE and for a 4.70-to-1 ratio on the Nasdaq. U.S. adds more-than-expected jobs in September U.S. unemployment rate falls to 3.5% AMD leads chipmakers lower after revenue warning Technology leads sectoral declines on S&P 500 Indexes: Dow 1.63%, S&P 2.14%, Nasdaq 2.80% Updates prices at open, adds comments By Shreyashi Sanyal and Ankika Biswas Oct 7 (Reuters) - Wall Street slid on Friday as solid job growth and a drop in the unemployment rate last month gave more room for the Federal Reserve to stick to jumbo-sized interest rate hikes, while a revenue warning from Advanced Micro Devices hit chipmakers. The report also showed the jobless rate fell to 3.5% in September, lower than expectations of 3.7%.
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18981.0
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2022-10-07 00:00:00 UTC
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After Russia-Ukraine plan, Musk offers proposal to resolve China-Taiwan tensions
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AAPL
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https://www.nasdaq.com/articles/after-russia-ukraine-plan-musk-offers-proposal-to-resolve-china-taiwan-tensions
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By Kanishka Singh and Hyunjoo Jin
WASHINGTON, Oct 7 (Reuters) - Billionaire Elon Musk, days after floating a possible deal to end the war between Russia and Ukraine that drew condemnation in Ukraine, suggested that tensions between China and Taiwan could be resolved by handing over some control of Taiwan to Beijing.
"My recommendation . . . would be to figure out a special administrative zone for Taiwan that is reasonably palatable, probably won't make everyone happy," Musk, the world's richest person, told the Financial Times in an interview published on Friday. Musk made the remarks when asked by the newspaper about China, where his Tesla TSLA.O electric car company operates a large factory in Shanghai.
Beijing, which says democratically ruled Taiwan is one of its provinces, has long vowed to bring Taiwan under its control and has not ruled out the use of force to do so. Taiwan's government strongly objects to China's sovereignty claims and says only the island's 23 million people can decide its future.
"And it's possible, and I think probably, in fact, that they could have an arrangement that's more lenient than Hong Kong," Musk, was quoted as saying by the newspaper.
The Shanghai factory accounted for about half of Tesla's global deliveries last year. Musk also said China has sought assurances that he would not offer the Starlink internet service of his SpaceX rocket company there.
Musk said he reckoned that conflict over Taiwan was inevitable and warned of its potential impact on not only Tesla, but also on iPhone maker Apple Inc AAPL.O and the wider economy. The interview did not elaborate on those remarks.
Earlier this week, Musk proposed that Ukraine permanently cede Crimea to Russia, that new referendums be held under U.N. auspices to determine the fate of Russian-controlled territory, and that Ukraine agree to neutrality. He asked Twitter users to weigh in on his plan, drawing sharp criticism from Ukrainian President Volodymyr Zelenskiy, who proposed his own Twitter poll: "Which @elonmusk do you like more? One who supports Ukraine (or) one who supports Russia."
(Reporting by Kanishka Singh in Washington and Hyunjoo Jin in San Francisco; Editing by Leslie Adler)
((Kanishka.Singh@thomsonreuters.com; +12024508248;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Musk said he reckoned that conflict over Taiwan was inevitable and warned of its potential impact on not only Tesla, but also on iPhone maker Apple Inc AAPL.O and the wider economy. would be to figure out a special administrative zone for Taiwan that is reasonably palatable, probably won't make everyone happy," Musk, the world's richest person, told the Financial Times in an interview published on Friday. Musk made the remarks when asked by the newspaper about China, where his Tesla TSLA.O electric car company operates a large factory in Shanghai.
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Musk said he reckoned that conflict over Taiwan was inevitable and warned of its potential impact on not only Tesla, but also on iPhone maker Apple Inc AAPL.O and the wider economy. By Kanishka Singh and Hyunjoo Jin WASHINGTON, Oct 7 (Reuters) - Billionaire Elon Musk, days after floating a possible deal to end the war between Russia and Ukraine that drew condemnation in Ukraine, suggested that tensions between China and Taiwan could be resolved by handing over some control of Taiwan to Beijing. Musk made the remarks when asked by the newspaper about China, where his Tesla TSLA.O electric car company operates a large factory in Shanghai.
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Musk said he reckoned that conflict over Taiwan was inevitable and warned of its potential impact on not only Tesla, but also on iPhone maker Apple Inc AAPL.O and the wider economy. By Kanishka Singh and Hyunjoo Jin WASHINGTON, Oct 7 (Reuters) - Billionaire Elon Musk, days after floating a possible deal to end the war between Russia and Ukraine that drew condemnation in Ukraine, suggested that tensions between China and Taiwan could be resolved by handing over some control of Taiwan to Beijing. Musk made the remarks when asked by the newspaper about China, where his Tesla TSLA.O electric car company operates a large factory in Shanghai.
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Musk said he reckoned that conflict over Taiwan was inevitable and warned of its potential impact on not only Tesla, but also on iPhone maker Apple Inc AAPL.O and the wider economy. By Kanishka Singh and Hyunjoo Jin WASHINGTON, Oct 7 (Reuters) - Billionaire Elon Musk, days after floating a possible deal to end the war between Russia and Ukraine that drew condemnation in Ukraine, suggested that tensions between China and Taiwan could be resolved by handing over some control of Taiwan to Beijing. "My recommendation . . .
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18982.0
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2022-10-07 00:00:00 UTC
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Here's Why Meta Platforms Stock Hit a New 52-Week Low Today
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AAPL
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https://www.nasdaq.com/articles/heres-why-meta-platforms-stock-hit-a-new-52-week-low-today
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What happened
Shares of Meta Platforms (NASDAQ: META) fell around 4% on Friday, which was just slightly more than the S&P 500's 2.8% drop. Meta stock even hit a new 52-week low, dropping to $132.44 per share, according to Yahoo Finance. The market's performance didn't help today, but negative news for Meta also likely played a part in bringing the stock down.
So what
Facebook rebranded to Meta Platforms last year as it went all-in on the metaverse trend. For this reason, a less-than-flattering piece from The Verge could be rattling shareholders today. The article alleges to have obtained an internal memo that says the company's metaverse platform has problems. In fact, it has so many problems that the team building it is barely using it -- not good considering the metaverse is central to Meta Platforms' vision.
Additionally, Facebook released a statement today saying it's discovered around 400 apps that try to steal login information. And according to Bloomberg, around 1 million Facebook accounts have already been compromised. To be fair, this sounds more like an Apple and Alphabet problem, since the apps are downloaded from those platforms. However, it affects Facebook users nonetheless, and it could have contributed to the stock's decline today.
Now what
Not only did Meta Platforms reach a new 52-week low today, it's also now trading at its cheapest price-to-earnings (P/E) valuation since it went public a decade ago, as the chart shows.
META PE Ratio data by YCharts
According to Yardeni Research, the average P/E of the S&P 500 is around 20. Therefore, Meta Platforms trades at a steep discount. The question remains whether the company can create shareholder value from building its metaverse platform or whether the project will be a colossal money pit.
I believe the metaverse trend will develop over decades, not years, meaning Meta Platforms is likely to see little return on investment for a long time. For this reason, it could trade at a depressed valuation from here and isn't a compelling buying opportunity, in my opinion.
10 stocks we like better than Meta Platforms, Inc.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jon Quast has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, and Meta Platforms, Inc. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Now what Not only did Meta Platforms reach a new 52-week low today, it's also now trading at its cheapest price-to-earnings (P/E) valuation since it went public a decade ago, as the chart shows. The question remains whether the company can create shareholder value from building its metaverse platform or whether the project will be a colossal money pit. I believe the metaverse trend will develop over decades, not years, meaning Meta Platforms is likely to see little return on investment for a long time.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, and Meta Platforms, Inc. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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10 stocks we like better than Meta Platforms, Inc. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, and Meta Platforms, Inc.
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For this reason, it could trade at a depressed valuation from here and isn't a compelling buying opportunity, in my opinion. 10 stocks we like better than Meta Platforms, Inc. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, and Meta Platforms, Inc.
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18983.0
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2022-10-07 00:00:00 UTC
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After Hours Most Active for Oct 7, 2022 : WIT, BAC, QQQ, AAPL, AUY, INFY, T, MSFT, PLTK, MIR, BTRS, AMZN
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-oct-7-2022-%3A-wit-bac-qqq-aapl-auy-infy-t-msft-pltk-mir-btrs
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The NASDAQ 100 After Hours Indicator is down -9.33 to 11,030.14. The total After hours volume is currently 80,366,413 shares traded.
The following are the most active stocks for the after hours session:
Wipro Limited (WIT) is -0.0363 at $4.69, with 5,011,357 shares traded.WIT is scheduled to provide an earnings report on 10/12/2022, for the fiscal quarter ending Sep2022. The consensus earnings per share forecast is 0.07 per share, which represents a 7 percent increase over the EPS one Year Ago
Bank of America Corporation (BAC) is unchanged at $30.75, with 4,865,004 shares traded. As reported by Zacks, the current mean recommendation for BAC is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +10.7064 at $279.81, with 4,692,452 shares traded. This represents a 4.76% increase from its 52 Week Low.
Apple Inc. (AAPL) is -0.1 at $139.99, with 3,155,010 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Yamana Gold Inc. (AUY) is unchanged at $4.84, with 3,098,530 shares traded. As reported by Zacks, the current mean recommendation for AUY is in the "buy range".
Infosys Limited (INFY) is unchanged at $17.06, with 3,054,827 shares traded.INFY is scheduled to provide an earnings report on 10/12/2022, for the fiscal quarter ending Sep2022. The consensus earnings per share forecast is 0.18 per share, which represents a 17 percent increase over the EPS one Year Ago
AT&T Inc. (T) is -0.01 at $14.93, with 2,688,559 shares traded., following a 52-week high recorded in today's regular session.
Microsoft Corporation (MSFT) is unchanged at $234.24, with 2,496,501 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Playtika Holding Corp. (PLTK) is unchanged at $10.32, with 2,456,483 shares traded. As reported by Zacks, the current mean recommendation for PLTK is in the "buy range".
Mirion Technologies, Inc. (MIR) is unchanged at $7.90, with 2,416,558 shares traded. As reported by Zacks, the current mean recommendation for MIR is in the "strong buy range".
BTRS Holdings Inc. (BTRS) is -0.03 at $9.25, with 2,165,472 shares traded. As reported in the last short interest update the days to cover for BTRS is 7.073858; this calculation is based on the average trading volume of the stock.
Amazon.com, Inc. (AMZN) is +0.05 at $114.61, with 2,054,544 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.1 at $139.99, with 3,155,010 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Wipro Limited (WIT) is -0.0363 at $4.69, with 5,011,357 shares traded.WIT is scheduled to provide an earnings report on 10/12/2022, for the fiscal quarter ending Sep2022.
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Apple Inc. (AAPL) is -0.1 at $139.99, with 3,155,010 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The consensus earnings per share forecast is 0.07 per share, which represents a 7 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.1 at $139.99, with 3,155,010 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 80,366,413 shares traded.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -0.1 at $139.99, with 3,155,010 shares traded. The following are the most active stocks for the after hours session:
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18984.0
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2022-10-07 00:00:00 UTC
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2 Unstoppable Warren Buffett Stocks That Can Turn Sitting Cash Into Growing Wealth
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AAPL
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https://www.nasdaq.com/articles/2-unstoppable-warren-buffett-stocks-that-can-turn-sitting-cash-into-growing-wealth-0
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nan
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nan
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Investors listen to Warren Buffett because of his long-term ability to beat the S&P 500. Between 1965 and 2021, a 56-year timeframe, his Berkshire Hathaway portfolio has logged average returns of 20.1%.
Berkshire has also beat the indexes in 2022, with Berkshire stock falling 6% since January versus almost 20% for the S&P 500. Given this performance, Apple (NASDAQ: AAPL) and Chevron (NYSE: CVX) are two Warren Buffett investments that deserve particular attention.
Apple
Considering Berkshire's massive position in Apple, one might struggle to discuss Buffett's current success without mentioning the tech giant. At more than 915 million shares, Apple claims more than 41% of Berkshire's entire portfolio, a position that appears to counter a wise diversification strategy. Moreover, with over $179 billion in liquidity supporting its balance sheet, Apple offers a measure of safety that lessens the risk of that massive position.
Until recently, Apple had benefited from a 5G upgrade cycle in the product making up most of its revenue, the iPhone. While iPhone demand has become sluggish, according to a recent Bloomberg report, its iOS operating system now claims more users than its main competitor, Alphabet's Android, according to Counterpoint Research.
Additionally, slowing iPhone demand has highlighted the success of Apple's fastest-growing segment, Apple Services. Apple Services encompasses products such as the iCloud and other subscription-based services like Apple TV and Apple Music. It also diversifies Apple's revenue base away from its equipment, something that Buffett probably likes in a struggling economy.
That diversity undoubtedly helped boost the company's revenue in these tougher times. In the first nine months of fiscal 2022, Apple reported over $304 billion in revenue, 8% more than in the same period in fiscal 2021. Indeed, this significantly lags the 33% sales growth in fiscal 2021, but revenue received a significant boost during the pandemic as many locked-down users turned to its products.
Apple earned a net income of $79 billion in the first three quarters of 2022, a gain of 7% versus the same time frame in 2021. Although it limited the cost of sales growth to just 4%, the 17% surge in operating expenses weighed on Apple's earnings.
Admittedly, conditions might not improve as soon as analysts forecast single-digit revenue growth through next year. However, Apple's stock performance over the last year could arguably reassure investors as the S&P 500 dropped during that time. Additionally, while not the cheapest tech stock, Apple's P/E ratio of 24 has fallen from 32 last December. Given this stability and the success of its products, one can see why Buffett considers Apple a FAANG stock worth buying.
Chevron
Buffett's increasing interest in Chevron is likely a sign of the times. Indeed, renewables have received increased attention in recent years.
Nonetheless, oil and natural gas, the two types of energy that make up nearly all of Chevron's revenue, still account for 68% of U.S. energy consumption, according to the Energy Information Administration. This bodes well for oil giants like Chevron as the industry grapples with increased production limits compared with two years ago and, recently, falling prices.
Still, with the lower oil prices, OPEC+ aims to cut production. This could at least stop the recent decline in prices and again take them higher, boosting the bottom line of Chevron. Also, even if prices continue to fall, Chevron's downstream segments can mitigate constant volatility in the upstream segment. Such factors make it understandable that Buffett keeps 8% of Berkshire's portfolio in this stock.
Chevron reported more than $123 billion in revenue in the first two quarters of 2022. This increased 77% compared with the same time frame in 2021, though many markets had locked down in early 2021.
That factor also led to a 300% year-over-year increase in net income in the first half of 2022, taking it to $18 billion. During that time, the growth rate in costs and deductions dramatically lagged the revenue increases.
And with that income, Chevron generated nearly $16.7 billion in free cash flow, well below its dividend cost of $5.5 billion. This bodes well for the safety of Chevron's 3.8% dividend yield and makes it unlikely the 35-year track record of payout hikes will end anytime soon.
Moreover, despite the approximate 45% increase in the stock price, Chevron only sells for 11 times its earnings. This is approximately the same as its rival, ExxonMobil, which barely held on to its Dividend Aristocrat status last year. Given the favorable conditions for oil prices, it should not surprise anyone that Buffett has continued to add to his stake in this oil stock.
10 stocks we like better than Apple
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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. Will Healy has positions in Berkshire Hathaway (B shares). The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), 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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Given this performance, Apple (NASDAQ: AAPL) and Chevron (NYSE: CVX) are two Warren Buffett investments that deserve particular attention. At more than 915 million shares, Apple claims more than 41% of Berkshire's entire portfolio, a position that appears to counter a wise diversification strategy. While iPhone demand has become sluggish, according to a recent Bloomberg report, its iOS operating system now claims more users than its main competitor, Alphabet's Android, according to Counterpoint Research.
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Given this performance, Apple (NASDAQ: AAPL) and Chevron (NYSE: CVX) are two Warren Buffett investments that deserve particular attention. Indeed, this significantly lags the 33% sales growth in fiscal 2021, but revenue received a significant boost during the pandemic as many locked-down users turned to its products. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, and Berkshire Hathaway (B shares).
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Given this performance, Apple (NASDAQ: AAPL) and Chevron (NYSE: CVX) are two Warren Buffett investments that deserve particular attention. Apple Services encompasses products such as the iCloud and other subscription-based services like Apple TV and Apple Music. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, and Berkshire Hathaway (B shares).
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Given this performance, Apple (NASDAQ: AAPL) and Chevron (NYSE: CVX) are two Warren Buffett investments that deserve particular attention. Apple Considering Berkshire's massive position in Apple, one might struggle to discuss Buffett's current success without mentioning the tech giant. This bodes well for oil giants like Chevron as the industry grapples with increased production limits compared with two years ago and, recently, falling prices.
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18985.0
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2022-10-07 00:00:00 UTC
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Wall Street tumbles as jobs growth cements rate hike bets
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AAPL
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https://www.nasdaq.com/articles/wall-street-tumbles-as-jobs-growth-cements-rate-hike-bets
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
U.S. adds more-than-expected jobs in September
U.S. unemployment rate falls to 3.5%
AMD leads chipmakers lower after revenue warning
Technology leads sectoral declines on S&P 500
FedEx drops on report of plans to reduce volume forecasts
Indexes down: Dow 1.66%, S&P 2.20%, Nasdaq 3.11%
Updates prices through out, adds comments
By Shreyashi Sanyal and Ankika Biswas
Oct 7 (Reuters) - U.S. stocks nosedived on Friday as solid job growth and a drop in the unemployment rate last month boosted the chances of more jumbo-sized interest rate hikes, while a revenue warning from Advanced Micro Devices hit chipmakers.
The Labor Department's closely watched employment report showed nonfarm payrolls increased by 263,000 jobs last month after rising 315,000 in August.
The report also showed the jobless rate fell to 3.5% in September, lower than expectations of 3.7%. Traders now see a 92% chance of 75 basis-point hike by the Federal Reserve, up from 83.4% before data.
Aggressive rise in borrowing costs have stoked fears of slowing economic growth and a hit to corporate profits, but with the labor market remaining tight, the U.S. central bank was likely to continue with its monetary tightening plan.
"While the labor supply and demand remain in this state, combined with high inflation, the Fed will continue to be forced to tighten until the economy snaps off its current momentum," said Rusty Vanneman, chief investment strategist at Orion Advisor Solutions.
Sticking to the hawkish tone by most Fed officials, New York President John Williams said more rate hikes were needed to tackle sticky inflation.
The Philadelphia SE Semiconductor index .SOX shed 5.14%, and was set for its biggest one-day percentage decline in nearly a month as a revenue warning from Advanced Micro Devices AMD.O signaled the chip slump could be worse than expected.
AMD lost 10.82% as its third-quarter revenue estimates were about a billion dollars less than previously forecast.
Peers Qualcomm Inc QCOM.O, Intel Corp INTC.O, ON Semiconductors ON.O, Lam Research LRCX.O, and Nvidia Corp NVDA.O shed between 2.44% and 6.63%.
"People who had been hoping for some kind of turnaround in the chips are starting to give up that hope," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.
The S&P 500 technology sector .SPLRCT index fell more than 3%, leading declines among the 11 major sector indexes.
At 11:56 a.m. ET, the Dow Jones Industrial Average .DJI was down 495.62 points, or 1.66%, at 29,431.32, the S&P 500 .SPX was down 82.39 points, or 2.20%, at 3,662.13, and the Nasdaq Composite .IXIC was down 344.02 points, or 3.11%, at 10,729.30.
All three main Wall Street indexes are still set to snap a three-week losing streak, heading for their biggest weekly gain in almost a month.
With the benchmark 10-year Treasury yield US10YT=RR rising to 3.910%, most rate-sensitive technology and growth stocks such as Alphabet Inc GOOGL.O, Amazon.com AMZN.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O fell between 2.14% and 4.46%.US/
FedEx Corp FDX.N lost 2.42% after an internal memo accessed by Reuters showed the company's division that handles most of the e-commerce deliveries plans to lower volume forecasts as its customers plan to ship fewer holiday packages.
Declining issues outnumbered advancers for a 4.96-to-1 ratio on the NYSE and for a 3.79-to-1 ratio on the Nasdaq.
The S&P index recorded two new 52-week highs and 54 new lows, while the Nasdaq recorded 16 new highs and 214 new lows.
(Reporting by Ankika Biswas and Shreyashi Sanyal in Bengaluru; Additional reporting by Bansari Mayur Kamdar; Editing by 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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With the benchmark 10-year Treasury yield US10YT=RR rising to 3.910%, most rate-sensitive technology and growth stocks such as Alphabet Inc GOOGL.O, Amazon.com AMZN.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O fell between 2.14% and 4.46%.US/ FedEx Corp FDX.N lost 2.42% after an internal memo accessed by Reuters showed the company's division that handles most of the e-commerce deliveries plans to lower volume forecasts as its customers plan to ship fewer holiday packages. Aggressive rise in borrowing costs have stoked fears of slowing economic growth and a hit to corporate profits, but with the labor market remaining tight, the U.S. central bank was likely to continue with its monetary tightening plan. "While the labor supply and demand remain in this state, combined with high inflation, the Fed will continue to be forced to tighten until the economy snaps off its current momentum," said Rusty Vanneman, chief investment strategist at Orion Advisor Solutions.
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With the benchmark 10-year Treasury yield US10YT=RR rising to 3.910%, most rate-sensitive technology and growth stocks such as Alphabet Inc GOOGL.O, Amazon.com AMZN.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O fell between 2.14% and 4.46%.US/ FedEx Corp FDX.N lost 2.42% after an internal memo accessed by Reuters showed the company's division that handles most of the e-commerce deliveries plans to lower volume forecasts as its customers plan to ship fewer holiday packages. U.S. adds more-than-expected jobs in September U.S. unemployment rate falls to 3.5% AMD leads chipmakers lower after revenue warning Technology leads sectoral declines on S&P 500 FedEx drops on report of plans to reduce volume forecasts Indexes down: Dow 1.66%, S&P 2.20%, Nasdaq 3.11% Updates prices through out, adds comments By Shreyashi Sanyal and Ankika Biswas Oct 7 (Reuters) - U.S. stocks nosedived on Friday as solid job growth and a drop in the unemployment rate last month boosted the chances of more jumbo-sized interest rate hikes, while a revenue warning from Advanced Micro Devices hit chipmakers. The Philadelphia SE Semiconductor index .SOX shed 5.14%, and was set for its biggest one-day percentage decline in nearly a month as a revenue warning from Advanced Micro Devices AMD.O signaled the chip slump could be worse than expected.
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With the benchmark 10-year Treasury yield US10YT=RR rising to 3.910%, most rate-sensitive technology and growth stocks such as Alphabet Inc GOOGL.O, Amazon.com AMZN.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O fell between 2.14% and 4.46%.US/ FedEx Corp FDX.N lost 2.42% after an internal memo accessed by Reuters showed the company's division that handles most of the e-commerce deliveries plans to lower volume forecasts as its customers plan to ship fewer holiday packages. U.S. adds more-than-expected jobs in September U.S. unemployment rate falls to 3.5% AMD leads chipmakers lower after revenue warning Technology leads sectoral declines on S&P 500 FedEx drops on report of plans to reduce volume forecasts Indexes down: Dow 1.66%, S&P 2.20%, Nasdaq 3.11% Updates prices through out, adds comments By Shreyashi Sanyal and Ankika Biswas Oct 7 (Reuters) - U.S. stocks nosedived on Friday as solid job growth and a drop in the unemployment rate last month boosted the chances of more jumbo-sized interest rate hikes, while a revenue warning from Advanced Micro Devices hit chipmakers. The Philadelphia SE Semiconductor index .SOX shed 5.14%, and was set for its biggest one-day percentage decline in nearly a month as a revenue warning from Advanced Micro Devices AMD.O signaled the chip slump could be worse than expected.
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With the benchmark 10-year Treasury yield US10YT=RR rising to 3.910%, most rate-sensitive technology and growth stocks such as Alphabet Inc GOOGL.O, Amazon.com AMZN.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O fell between 2.14% and 4.46%.US/ FedEx Corp FDX.N lost 2.42% after an internal memo accessed by Reuters showed the company's division that handles most of the e-commerce deliveries plans to lower volume forecasts as its customers plan to ship fewer holiday packages. U.S. adds more-than-expected jobs in September U.S. unemployment rate falls to 3.5% AMD leads chipmakers lower after revenue warning Technology leads sectoral declines on S&P 500 FedEx drops on report of plans to reduce volume forecasts Indexes down: Dow 1.66%, S&P 2.20%, Nasdaq 3.11% Updates prices through out, adds comments By Shreyashi Sanyal and Ankika Biswas Oct 7 (Reuters) - U.S. stocks nosedived on Friday as solid job growth and a drop in the unemployment rate last month boosted the chances of more jumbo-sized interest rate hikes, while a revenue warning from Advanced Micro Devices hit chipmakers. The report also showed the jobless rate fell to 3.5% in September, lower than expectations of 3.7%.
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18986.0
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2022-10-07 00:00:00 UTC
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Future of Smart Homes: Here's What You Need to Know
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AAPL
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https://www.nasdaq.com/articles/future-of-smart-homes%3A-heres-what-you-need-to-know
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nan
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nan
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A
s we enter the final quarter of a year that many hoped would be a return to normalcy following the global health crisis, normal remains elusive. Investors are facing one of the most challenging years in memory, and Europe is facing its biggest geopolitical crisis since WWII. But the flip side to challenges are opportunities.
Today’s geopolitical, social and economic challenges are creating additional tailwinds for the growing smart home market. However, as of late last week, the market is also benefiting from a significant leap in technology. Let’s dive right in.
What's Disrupting the Smart Home Market
Remote Work
While the global health crisis is increasingly in the rearview mirror (fingers crossed), remote work is here to stay. According to a June 2022 Gallup Poll, around 70 million U.S. workers (56% of the full-time workforce) are capable of remote work. Of those, 50% are working hybrid (part remote and part on-site), 30% are exclusively remote and only 20% are entirely on-site. Long-term, fully remote work in the U.S. is expected to settle at around 300% of what it was in 2019, with a scant 6% of respondents reporting that they want to work entirely on-site. This isn’t just a U.S. phenomenon. 56% of global companies are fully remote or hybrid.
Interest Rates
The shift to remote work drove eye-popping increases in home prices that are now starting to reverse course as higher interest rates make the purchase of new digs more expensive. The average 30-year mortgage rate is up more than 120% over the past year. This means that the only upgrade option for many will be to improve their existing home rather than face a higher monthly mortgage payment for even less of a home. Now the money that would have gone into purchasing and furnishing a new home can be funneled into making their current home smarter.
Energy Costs
Inflation dominates the headlines, but hikes in energy costs in Europe are even more jaw-dropping than the increase in grocery checkout receipts as the region faces its worst energy crisis since World War II. For example, Italy’s average monthly electricity wholesale prices have risen from €67.65 per megawatt-hour in January 2019 to €543.48 in August 2022, a mind-boggling 700% increase. Higher energy prices make smart home energy management devices relatively less expensive as the magnitude of the potential cost savings rises.
Demographics
People are living longer and having fewer children, which means globally, the pace of population aging is much faster than in the past. Between 2015 and 2050, the proportion of the world’s population over 60 will nearly double from 12% to 22%, and in 2020 the number of people aged 60 and over outnumbered those under five years of age. Smart home technologies can make in-home care for the elderly safer and staying in a home they know can be less emotionally disruptive than being forced into a care home, which are in short supply.
Putting it all together:
Many are spending more time at home.
Most are more likely to upgrade their existing home than to trade up for a new home.
Everyone is looking for ways to curb their energy usage.
Seniors and those caring for seniors need their homes to do more for them.
Smart Home Tech Trends
Arguably the most significant advance in smart home technology this year isn’t a new device but rather an IP-based, open-source standard that works over Wi-Fi, supports all major control platforms and acts like a universal language through which smart home devices can communicate. Initially referred to as Project Connected Home over IP (CHIP), Matter is a royalty-free, open-source home automation connectivity standard under the Apache license, announced on December 18, 2019, with version 1.0 of the specification published on September 30, 2022.
Matter is the result of a collaboration between Amazon (AMZN), Apple (AAPL), Alphabet (GOOG), Samsung SmartThings (SSNLF) and the Zigbee Alliance. For consumers, this means easier setups and integration, fewer marital disputes and fewer returned products. Other members of the alliance include Ikea, Infineon (IFNNY), Kroger (KR), Latch (LTCH), LG (LGLD:LSE), Lutron, Nordic Semiconductor (NDCVF), NXP Semiconductors (NXPI), Schneider Electric (SBGSY), Silicon Labs (SLAB) and Texas Instruments (TXN).
Understanding the Smart Home Market Future
According to Mordor Intelligence, the smart home market in 2021 was valued at $79.13 billion and is expected to grow to $313.95 billion by 2027, with a compound annual growth rate (CAGR) of 25.3%. Grandview Research put the markets at $62.7 billion in 2021 and forecasts a CAGR of 27% through 2030. According to SafeWise, the average American spent $1,200 on home tech between May 2021 and May 2022 - 75% bought a smart home device, 65% purchased a smart home security device and 46% purchased a smart TV. Overall, 44% reported spending more money on home tech this year than last.
The market is segmented by geography and by product type, which includes:
Comfort and Lighting
Control and Connectivity
Energy Management
Home Entertainment
Security
Smart Appliances
One of the smart home market's most significant growth areas is HVAC, primarily driven by new government efficiency regulations that force the replacement or retrofitting of existing systems. Starting next year, all new residential central air-source heat pump systems sold in the US will need to meet new minimum energy efficiency standards; the last standards went into effect in 2015.
Grandview Research expects the smart kitchen segment of the smart home to grow the fastest, a CAGR of 30.5% from 2021 to 2030, driven by smart appliances such as automatic composters, water purifiers, smart refrigerators, and other smart cooking/food prep devices. While the kitchen may be seeing the fastest growth, the highest revenue share of the smart home market goes to security and surveillance, accounting for 31% of the total in 2021.
The Competitive Landscape
The smart home market is moderately competitive, with several major players dominating the market. These players include:
Amazon, one of the original collaborators for the Matter Alliance, recently introduced its Astro home robot, which is currently only available by invitation, to augment its Ring and Alexa suite of smart home products. This year Ring added the Always Home Cam drone which can learn a flight path around the home and be triggered either manually or by other Ring alarm products.
Emerson Electric’s (EMR) Sensi smart thermostat is used in residential and commercial buildings and is considered one of the more dominant players. On October 5, it was announced that the company is in talks with Blackstone Inc (BLK) to sell part of its commercial and residential solution business assets for somewhere between $5 billion and $10 billion, depending on what is included in the transaction.
Honeywell International (HON) offers a full suite of smart home products ranging from temperature controls and air quality monitoring to complete home security and safety, including leak detection,
Latch is a publicly traded member of the Matter Alliance, and while a relatively small player, with a market cap of under $150 million, it is one of the few pure plays in this space.
Schneider Electric SE is a member of the Matter Alliance and offers a range of energy management solutions for temperature, electricity usage, and home security solutions.
Another founding Matter member, Samsung offers a SmartThings app that connects to its smart devices (including ranges, refrigerators, TVs, robotic vacuums, washers, and dryers) and a wide range of other companies’ connected devices and voice assistants.
Siemens (SIEGY) is a massive industrial conglomerate that, like Samsung, offers a smart home app that works with its smart home appliances.
Advances in technology are making homes safer, more efficient, more comfortable and more enjoyable, saving homeowners time and money. With the launch of Matter, the DIY smart home market will benefit from easier installation and integration, reducing aggravated calls to help desks, saving one’s sanity and possibly even a few marriages along the way.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Matter is the result of a collaboration between Amazon (AMZN), Apple (AAPL), Alphabet (GOOG), Samsung SmartThings (SSNLF) and the Zigbee Alliance. Honeywell International (HON) offers a full suite of smart home products ranging from temperature controls and air quality monitoring to complete home security and safety, including leak detection, Latch is a publicly traded member of the Matter Alliance, and while a relatively small player, with a market cap of under $150 million, it is one of the few pure plays in this space. With the launch of Matter, the DIY smart home market will benefit from easier installation and integration, reducing aggravated calls to help desks, saving one’s sanity and possibly even a few marriages along the way.
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Matter is the result of a collaboration between Amazon (AMZN), Apple (AAPL), Alphabet (GOOG), Samsung SmartThings (SSNLF) and the Zigbee Alliance. The market is segmented by geography and by product type, which includes: Comfort and Lighting Control and Connectivity Energy Management Home Entertainment Security Smart Appliances One of the smart home market's most significant growth areas is HVAC, primarily driven by new government efficiency regulations that force the replacement or retrofitting of existing systems. Schneider Electric SE is a member of the Matter Alliance and offers a range of energy management solutions for temperature, electricity usage, and home security solutions.
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Matter is the result of a collaboration between Amazon (AMZN), Apple (AAPL), Alphabet (GOOG), Samsung SmartThings (SSNLF) and the Zigbee Alliance. Smart Home Tech Trends Arguably the most significant advance in smart home technology this year isn’t a new device but rather an IP-based, open-source standard that works over Wi-Fi, supports all major control platforms and acts like a universal language through which smart home devices can communicate. According to SafeWise, the average American spent $1,200 on home tech between May 2021 and May 2022 - 75% bought a smart home device, 65% purchased a smart home security device and 46% purchased a smart TV.
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Matter is the result of a collaboration between Amazon (AMZN), Apple (AAPL), Alphabet (GOOG), Samsung SmartThings (SSNLF) and the Zigbee Alliance. What's Disrupting the Smart Home Market Remote Work While the global health crisis is increasingly in the rearview mirror (fingers crossed), remote work is here to stay. Grandview Research expects the smart kitchen segment of the smart home to grow the fastest, a CAGR of 30.5% from 2021 to 2030, driven by smart appliances such as automatic composters, water purifiers, smart refrigerators, and other smart cooking/food prep devices.
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18987.0
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2022-10-07 00:00:00 UTC
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Which NDX ETF is Right for You?
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AAPL
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https://www.nasdaq.com/articles/which-ndx-etf-is-right-for-you
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nan
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nan
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Download the Article
The Nasdaq-100 Index® (NDX®) is a modified capitalization weighted index that tracks 100 of the largest non-financial companies listed on the Nasdaq Stock Market. Today, ETFs across the globe – from the Americas and Europe to the Middle East and Asia-Pacific – track the NDX, making it one of the most popular indexes in the world. Each ETF is designed to track the NDX in a particular way, offering myriad opportunities for investors to incorporate them into their portfolios.
Cap-Weight vs. Equal Weight
Launched in March 1999, the Invesco QQQ ETF (QQQ) was the first ETF to begin tracking the NDX. As of September 20, 2022, QQQ had $159.39 billion in assets under management (AUM). Launched in October 2020, the Invesco QQQ ETF (QQQM), known as the Q mini, also tracks the Nasdaq-100. However, it has lower fees, a smaller share price and reinvests dividends, all of which may be more appealing to buy-and-hold investors.
The NDX currently has 102 constituent securities, spread across 101 unique companies listed on Nasdaq. (Note: the 101st company is temporarily included in the index because of a recent spinoff.) As of June 30, 2022, the top 10 companies represent about 52% of the total index weight, so they often, but not always, sway the direction of the index. The top two holdings – Apple (AAPL) and Microsoft (MSFT) – make up over 23% of the index. As such, NDX, and by extension QQQ, will naturally behave very much like its largest components.
The Nasdaq-100 Equal Weighted Index™ (NDXE™) tracks the same constituents, but it does not weight them by market capitalization. Instead, the index is equally weighted on the same quarterly rebalancing schedule as the NDX, bringing each company to a weighting of roughly 1%.
In April 2006, First Trust launched the First Trust Nasdaq-100 Equal Weighted Index Fund (QQEW), which tracks the equal- weighted version of the Nasdaq-100®, NDXE. As of September 20, 2022, QQEW has $1.08 billion in AUM.
QQQ is essentially the House of Representatives of the Nasdaq-100, treating AAPL in much the way that the state of California has an outsized voting contingent within Congress. QQEW is analogous to the U.S. Senate, where each state (read: company) has an equal number of votes.
Some other ETFs related to the NDXE include:
Direxion Nasdaq-100 Equal Weighted Shares (QQQE)
Invesco Nasdaq 100 Equal Weight Index ETF – CAD (QQEQ)
Invesco Nasdaq 100 Equal Weight Index ETF – CAD hedged (QQEQ.F)
Technology vs. Ex-Technology
The Nasdaq-100 inventory has always been tech heavy, but some of the names included both historically and currently are ex-Tech, such as Starbucks.
In 2006-2007, First Trust added a pair of products to its ETF lineup that allowed investors to delineate Nasdaq-100 exposure along sector categories, specifically technology versus ex-technology. The viability of these products, which total nearly $2 billion in net assets between the two today, speaks to the growth that the Nasdaq-100 has experienced through tertiary products, even as the index surpassed the ripe old age of 37.
Launched in April 2006, the First Trust Nasdaq-100 Technology Sector Fund (QTEC) tracks the Nasdaq-100 Technology Sector Index™ (NDXT™), an equal-weighted basket of Nasdaq-100 components that are classified by ICB as part of the Technology industry. The fund currently holds 42 securities across the following subsectors within Technology: Software, Semiconductor, Production Technology Equipment, Consumer Digital Services, Computer Services and Computer Hardware. As of September 20, 2022, QTEC has around $1.6 billion in AUM.
Meanwhile, the First Trust NASDAQ-100 ex-Technology Sector Index Fund (QQXT) invests in the 60 other Nasdaq-100 companies, across the Consumer Discretionary, Health Care, Industrials, Consumer Staples, Telecommunications, Utilities and Basic Materials industries. It tracks the Nasdaq-100 Ex-Tech Sector Index™ (NDXX™) and also employs an equal-weighted approach. As of September 20, 2022, the fund has $126 million in AUM.
ESG Overlay
In October 2021, two new ETFs were launched to meet the demand for ETFs with an ESG overlay. The Invesco ESG Nasdaq-100 ETF (QQMG) tracks the Nasdaq-100 ESG Index™ and the Invesco ESG Nasdaq Next Gen 100 ETF (QQJG) tracks the Nasdaq Next Generation 100 ESG Index™. These investment products expanded the Invesco QQQ Innovation Suite to encompass a total of six products in the U.S. that include ETFs and other product wrappers.
Leveraged and Inverse ETFs
Some investors are interested in geared investing through leveraged and inverse ETFs. These products seek daily investment results, before fees and expenses, that correspond to the leveraged or inverse multiplier of the daily performance of the Nasdaq-100. ProShares offers five ETFs in the category: ProShares UltraPro QQQ (TQQQ) (+3x), ProShares Ultra QQQ (QLD) (+2x), ProShares Short QQQ (PSQ) (-1x), ProShares UltraShort QQQ (QID) (-2x), and ProShares UltraPro Short QQQ (SQQQ) (-3x).
Tracking the Trends
Launched in May 2021, the ProShares Nasdaq-100 Dorsey Wright Momentum ETF (QQQA) is the first ETF focusing on select Nasdaq-100 stocks identified as having the greatest potential to outperform based on their price momentum. Dorsey Wright, a recognized leader in momentum investing, selects the 21 leading Nasdaq-100 stocks based on a proprietary “Relative Strength” signal. Index constituents are assigned equal weights at every quarterly reconstitution in January, April, July and October.
The Pacer Trendpilot 100 ETF (PTNQ) tracks the Pacer Nasdaq-100 Trendpilot Index™, which borrows a concept from momentum investing to toggle allocations across NDX, T-bills or both. When the Nasdaq-100 Total Return Index™ (XNDX™) closes above its 200-day moving average price for five consecutive days, 100% of the fund’s assets are allocated to (or remain in) NDX. When the Nasdaq-100 Total Return Index closes below its 200-day moving average price for five consecutive days, it invests only 50% in
NDX, and the remaining 50% in 3-month T-bills. 100% of the fund’s assets are allocated to T-bills if the trend continues and the XNDX 200-day moving average itself finishes below where it was five days earlier. This would suggest a more sustained downtrend in market prices, so the fund opts to shift into full-on safety mode for downside protection.
Options-based Strategies
Investors may be looking to preserve upside exposure to NDX’s stellar track record of growth and at the same time incorporate much-needed downside protection. A few passively and actively managed products may be used to hedge on the downside.
Global X offers five different Nasdaq-100 options-based index tracking ETFs.
The Global X Nasdaq-100 Covered Call ETF (QYLD) is the most widely adopted of the five ETFs, with $6.71 billion in assets as of September 20, 2022. It also has the longest track record having launched in December 2013. QYLD tracks the CBOE Nasdaq-100 Buy/Write Index™, which holds Nasdaq-100 stocks and writes (sells) options simultaneously, generating option premium income that ends up in investors’ accounts as a generous distribution yield. While not explicitly a downside protection strategy, QYLD functions as a more conservative income-generation vehicle, where more stable cash flows compensate for the diminished upside that investors receive from any price appreciation in NDX. The upside is capped directly because of the call options that the fund sells in the market.
The Global X Nasdaq 100 Covered Call & Growth ETF (QYLG) follows a covered call or buy-write strategy. The fund buys the stocks in the NDX and writes (sells) corresponding call options on about 50% of the index. QYLG seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the CBOE Nasdaq-100 Half BuyWrite V2 Index™.
The Global X Nasdaq 100 Risk Managed Income ETF (QRMI) employs a protective net-credit collar strategy for investors seeking the income characteristics of a covered call fund, while mitigating the risks of a major market selloff with a protective put. QRMI seeks to achieve this outcome by owning the stocks in the NDX, while buying 5% out-of-the-money put options on NDX and selling at-the-money call options on the same index. QRMI seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Nasdaq-100 Monthly Net Credit Collar 95-100 Index™ (NQRMII™).
The Global X Nasdaq 100 Collar 95-110 ETF (QCLR) employs a collar strategy for investors seeking range-bound equity returns. QCLR seeks to achieve this outcome by owning the stocks in the NDX, while buying 5% out-of-the-money put options on NDX and selling 10% out-of-the-money call options on the same index. The ETF’s goal is to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Nasdaq-100 Quarterly Collar 95- 110 Index™ (NQCLRI™).
The Global X Nasdaq 100 Tail Risk ETF (QTR) employs a protective put strategy for investors seeking to buffer against market selloffs. QTR seeks to achieve this outcome by owning the stocks in the Nasdaq 100 Index, coupled with buying 10% out-of- the-money put options on the NDX. The goal of the ETF is to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Nasdaq-100 Quarterly Protective Put 90 Index™ (NQTRI™).
A few other ETF sponsors have issued ETFs that incorporate options strategies.
The Nationwide Risk-Managed Income ETF (NUSI) is an actively managed fund that utilizes an options collar but it is in conjunction with actual investment in the NDX. NUSI resets monthly and approximates what would be considered closest to a “truly hedged” ongoing investment in the NDX. By writing calls, some upside is limited, but the downside protection from puts is paid for upfront. Since it is actively managed, it will generate an income yield for investors if the manager does not fully convert the proceeds from selling call options during a given monthly period into new puts.
The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) is an actively managed portfolio that provides exposure to and resembles the NDX. The investment philosophy is to select securities of innovative large-cap companies that will likely outperform the NDX and will likely generate a modest amount of alpha based on a proprietary fundamental framework. At the same time, it avoids selecting stocks that have greater left tail risk or extreme downside performance periods. Investors receive the dividend associated with the long portfolio as well as the income generated from selling out-of-the-money options on the NDX. In addition, they may get some upside benefit when the market moves higher. The fund’s goal is to achieve a diversified source of return and consistent monthly distributable income, although the return is not guaranteed.
First Trust offers four buffer ETFs – First Trust CBOE Vest Nasdaq-100® Buffer ETF (QMAR, QJUN, QSPT, QDEC) – that use FLEX Options to employ a target outcome strategy, which seeks to produce pre-determined investment outcomes based upon the performance of an underlying security or index. The fund seeks to provide returns that match the price return of the Invesco QQQ Trust up to a predetermined upside cap as well as a buffer against a certain amount of underlying ETF losses.
The Simplify Nasdaq-100 PLUS Convexity ETF (QQC) seeks to provide capital appreciation by tracking the large-cap U.S. growth stocks in the NDX. At the same time, it aims to boost performance during extreme market moves up or down via a systematic options overlay, which helps to create convexity in the fund. Convex investment strategies are expected to be highly correlated with the benchmark in typical market environments but diverge to the positive in extreme markets. Further, convex strategies are expected to lag during quiet markets.
The Simplify Nasdaq-100 PLUS Downside Convexity ETF (QQD) seeks to provide capital appreciation by tracking the NDX. A modest option overlay budget is then deployed into a series of options positions that help create downside convexity in the fund.
The STF Tactical Growth ETF (TUG) is an active, rules-driven fund that seeks long-term growth of capital with downside mitigation. The STF Tactical Growth and Income ETF (TUGN) ETF seeks long-term growth of capital in addition to monthly income with downside mitigation. Both ETFs seek to reduce equity exposure in bearish market environments while remaining invested during bullish market environments.
The funds’ advisor utilizes a proprietary method called the Tactical Unconstrained Growth (TUG) Model to manage the funds. The TUG signal determines exposure to the Nasdaq-100 Index, long duration treasury bonds or treasury bills based on market trends and volatility. The ETF vehicle allows for tax efficient pivots between equities and bonds.
With TUGN, an options overlay seeks to generate monthly income and potentially enhance returns. The fund may sell call options on the NDX on up to 100% of the value of the equity securities held by the fund to generate premium from such options. At the same time, it may reinvest a portion of the premium to buy call options on the same reference asset(s).
Summary
The number of ETFs that track the Nasdaq-100 continues to grow, providing the opportunity to create customized investment strategies that leverage the unique sector and thematic exposures of the index in various ways. Among the multiple products that now exist, investors can toggle their NDX exposure with active vs. passive management, market cap vs. equal weighting, sector constraints, risk protection (especially on the downside) and/or targeted return (income). Financial advisors are encouraged to learn more about the ETFs that track the NDX and how they can be used within their clients’ portfolios.
Disclaimer: Nasdaq® is a registered trademark of Nasdaq, Inc. The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security or an overall investment strategy. Neither Nasdaq, Inc. nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding Nasdaq-listed companies or Nasdaq proprietary indexes are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.
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The top two holdings – Apple (AAPL) and Microsoft (MSFT) – make up over 23% of the index. QQQ is essentially the House of Representatives of the Nasdaq-100, treating AAPL in much the way that the state of California has an outsized voting contingent within Congress. While not explicitly a downside protection strategy, QYLD functions as a more conservative income-generation vehicle, where more stable cash flows compensate for the diminished upside that investors receive from any price appreciation in NDX.
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The top two holdings – Apple (AAPL) and Microsoft (MSFT) – make up over 23% of the index. QQQ is essentially the House of Representatives of the Nasdaq-100, treating AAPL in much the way that the state of California has an outsized voting contingent within Congress. Some other ETFs related to the NDXE include: Direxion Nasdaq-100 Equal Weighted Shares (QQQE) Invesco Nasdaq 100 Equal Weight Index ETF – CAD (QQEQ) Invesco Nasdaq 100 Equal Weight Index ETF – CAD hedged (QQEQ.F) Technology vs. Ex-Technology The Nasdaq-100 inventory has always been tech heavy, but some of the names included both historically and currently are ex-Tech, such as Starbucks.
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The top two holdings – Apple (AAPL) and Microsoft (MSFT) – make up over 23% of the index. QQQ is essentially the House of Representatives of the Nasdaq-100, treating AAPL in much the way that the state of California has an outsized voting contingent within Congress. Some other ETFs related to the NDXE include: Direxion Nasdaq-100 Equal Weighted Shares (QQQE) Invesco Nasdaq 100 Equal Weight Index ETF – CAD (QQEQ) Invesco Nasdaq 100 Equal Weight Index ETF – CAD hedged (QQEQ.F) Technology vs. Ex-Technology The Nasdaq-100 inventory has always been tech heavy, but some of the names included both historically and currently are ex-Tech, such as Starbucks.
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The top two holdings – Apple (AAPL) and Microsoft (MSFT) – make up over 23% of the index. QQQ is essentially the House of Representatives of the Nasdaq-100, treating AAPL in much the way that the state of California has an outsized voting contingent within Congress. Equal Weight Launched in March 1999, the Invesco QQQ ETF (QQQ) was the first ETF to begin tracking the NDX.
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18988.0
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2022-10-07 00:00:00 UTC
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2 Technology Stocks For Your October 2022 Watchlist
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AAPL
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https://www.nasdaq.com/articles/2-technology-stocks-for-your-october-2022-watchlist
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nan
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nan
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Technology is playing an increasingly important role in our lives today. As we become more reliant on technology, it is becoming more important for businesses to invest in technology. With that, technology stocks are a type of stock that represents ownership in a company that produces or uses technology. Technology stocks are popular with investors because they offer the potential for high growth. Notably, some of the more popular technology stocks among stock market investors today are companies such as Amazon (NASDAQ: AMZN), Alphabet Inc. (NASDAQ: GOOGL), and Meta Platforms Inc. (NASDAQ: META) just to name a few. Technology companies often have high-profit margins and strong market demand for their products.
However, investing in technology stocks can also be risky. Technology companies are often volatile and susceptible to sudden changes in the marketplace. When investing in technology stocks, it is important to carefully research the company before making a purchase. You should also be aware of the risks involved.
Furthermore, technology stocks can provide investors with the opportunity to earn high returns, but they can also be risky. Before investing, it is important to understand both the potential rewards and risks involved. If this has you keen on investing in the tech sector, here are two technology stocks to watch in the stock market today.
Technology Stocks To Watch Right Now
Microsoft Corporation (NASDAQ: MSFT)
Apple, Inc. (NASDAQ: AAPL)
1. Microsoft (MSFT Stock)
Starting off the list today is Microsoft Corporation (MSFT). In short, Microsoft is an American multinational technology company. Additionally, the company develops, manufactures, licenses supports, and sells computer software, consumer electronics, personal computers, and related services. Its best-known software products are the Microsoft Windows line of operating systems, Microsoft Office office suite, and Internet Explorer and Edge web browsers.
MSFT Recent Stock News
In September, Microsoft reported that its Board Of Directors have declared a quarterly dividend of $0.68 per share. This represents a $0.06 or 10% increase in dividend payment from the previous quarter’s dividend. Moreover, the dividend is payable on December 8th, 2022 to shareholders on record on November 17, 2022.
Separate from that, Microsoft also reported that it will be hosting its 2022 annual shareholders meeting. Specifically, the company’s annual shareholder meeting for 2022 will take place on December 13, 2022.
MSFT Stock Chart
Meanwhile, so far in 2022, MSFT stock has fallen over 29% as of Friday’s mid-morning trading session at $235.68 per share. What’s more, shares of Microsoft stock is currently trading 32.58% off of their 52-week high of $349.67 a share.
[Read More] Top Stocks To Buy Now? 3 Industrial Stocks To Check Out
2. Apple (AAPL Stock)
Next, Apple Inc. (AAPL) is an American multinational technology company. Simply put, the company designs, develops and sells consumer electronics, computer software, and online services. The company’s hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, and the HomePod smart speaker.
AAPL Recent Stock News
Recently, just last month, the company released its new product lineup to investors. In detail, Apple reported it has launched a new iPhone® 14 Pro and iPhone 14 Pro Max. For context, this new iPhone will include extra features that include an Always-On display, the first-ever 48MP camera on an iPhone, and others. Moreover, the company also reported that they will be introducing the new Apple Watch® Series 8 and the new Apple Watch SE®.
AAPL Stock Chart
Year-to-date, Apple stock is still down 22.50%. Meanwhile, on Friday morning, shares of AAPL stock are trading at $141.14 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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Technology Stocks To Watch Right Now Microsoft Corporation (NASDAQ: MSFT) Apple, Inc. (NASDAQ: AAPL) 1. Apple (AAPL Stock) Next, Apple Inc. (AAPL) is an American multinational technology company. AAPL Recent Stock News Recently, just last month, the company released its new product lineup to investors.
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Technology Stocks To Watch Right Now Microsoft Corporation (NASDAQ: MSFT) Apple, Inc. (NASDAQ: AAPL) 1. Apple (AAPL Stock) Next, Apple Inc. (AAPL) is an American multinational technology company. AAPL Recent Stock News Recently, just last month, the company released its new product lineup to investors.
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Apple (AAPL Stock) Next, Apple Inc. (AAPL) is an American multinational technology company. Technology Stocks To Watch Right Now Microsoft Corporation (NASDAQ: MSFT) Apple, Inc. (NASDAQ: AAPL) 1. AAPL Recent Stock News Recently, just last month, the company released its new product lineup to investors.
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Apple (AAPL Stock) Next, Apple Inc. (AAPL) is an American multinational technology company. Technology Stocks To Watch Right Now Microsoft Corporation (NASDAQ: MSFT) Apple, Inc. (NASDAQ: AAPL) 1. AAPL Recent Stock News Recently, just last month, the company released its new product lineup to investors.
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18989.0
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2022-10-07 00:00:00 UTC
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US STOCKS-Wall St set to open lower as jobs growth boosts rate hike bets
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-open-lower-as-jobs-growth-boosts-rate-hike-bets
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By Shreyashi Sanyal and Ankika Biswas
Oct 7 (Reuters) - Wall Street was set to open sharply lower on Friday as solid job growth and a drop in the unemployment rate last month pointed to a tight labor market, giving more room for the Federal Reserve to stick to big-sized interest-rate hikes.
The Labor Department's closely watched employment report showed nonfarm payrolls increased by 263,000 jobs last month after rising 315,000 in August.
The report also showed the jobless rate fell to 3.5% in September, lower than expectations of 3.7%. Traders now see a 89.8% chance of 75 basis-point hike by the Fed, up from 83.4% before data.
Aggressive rise in borrowing costs have stoked fears of slowing economic growth and a hit to corporate profits, but with the labor market remaining tight, the Fed was likely to continue with its monetary tightening plan.
"The markets are worried that the Fed is going to rely on information like this that's really a month old and they're going to overshoot and kill the economy," said Kim Forrest, chief investment officer at Bokeh Capital Partners.
"Investors don't have confidence in a soft landing because the Fed continues to have to ramp higher and higher to begin to slow the economy down."
Meanwhile, losses in chipmakers after a revenue warning from Advanced Micro Devices Inc AMD.O weighed on the indexes as it signaling the chip slump could be much worse than expected.
AMD fell 6.1% in premarket trading as its third-quarter revenue estimates were about a billion dollars less than previously forecast.
Other chipmakers Qualcomm Inc QCOM.O, Intel Corp INTC.O, ON Semiconductors ON.O, Lam Research LRCX.O, and Nvidia Corp NVDA.O shed between 3.3% and 3.9%.
At 08:51 a.m. ET, Dow e-minis 1YMcv1 were down 322 points, or 1.07%, S&P 500 e-minis EScv1 were down 52.75 points, or 1.4%, and Nasdaq 100 e-minis NQcv1 were down 216.5 points, or 1.88%.
All three main Wall Street indexes are still set to snap a three-week losing streak, heading for their biggest weekly gain since late June.
With the benchmark 10-year Treasury yield US10YT=RR rising to 3.9038%, most rate-sensitive technology and growth stocks such as Alphabet Inc GOOGL.O, Amazon.com AMZN.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O fell between 1.7% and 2.4%. US/
With most Fed officials supporting the need for rapid rate hikes, investors will monitor comments from New York President John Williams, Minneapolis President Neel Kashkari, and Atlanta President Raphael Bostic for any slight deviation in narrative.
(Reporting by Ankika Biswas and Shreyashi Sanyal in Bengaluru; Additional reporting by Bansari Mayur Kamdar; Editing by 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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With the benchmark 10-year Treasury yield US10YT=RR rising to 3.9038%, most rate-sensitive technology and growth stocks such as Alphabet Inc GOOGL.O, Amazon.com AMZN.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O fell between 1.7% and 2.4%. By Shreyashi Sanyal and Ankika Biswas Oct 7 (Reuters) - Wall Street was set to open sharply lower on Friday as solid job growth and a drop in the unemployment rate last month pointed to a tight labor market, giving more room for the Federal Reserve to stick to big-sized interest-rate hikes. Aggressive rise in borrowing costs have stoked fears of slowing economic growth and a hit to corporate profits, but with the labor market remaining tight, the Fed was likely to continue with its monetary tightening plan.
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With the benchmark 10-year Treasury yield US10YT=RR rising to 3.9038%, most rate-sensitive technology and growth stocks such as Alphabet Inc GOOGL.O, Amazon.com AMZN.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O fell between 1.7% and 2.4%. By Shreyashi Sanyal and Ankika Biswas Oct 7 (Reuters) - Wall Street was set to open sharply lower on Friday as solid job growth and a drop in the unemployment rate last month pointed to a tight labor market, giving more room for the Federal Reserve to stick to big-sized interest-rate hikes. US/ With most Fed officials supporting the need for rapid rate hikes, investors will monitor comments from New York President John Williams, Minneapolis President Neel Kashkari, and Atlanta President Raphael Bostic for any slight deviation in narrative.
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With the benchmark 10-year Treasury yield US10YT=RR rising to 3.9038%, most rate-sensitive technology and growth stocks such as Alphabet Inc GOOGL.O, Amazon.com AMZN.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O fell between 1.7% and 2.4%. By Shreyashi Sanyal and Ankika Biswas Oct 7 (Reuters) - Wall Street was set to open sharply lower on Friday as solid job growth and a drop in the unemployment rate last month pointed to a tight labor market, giving more room for the Federal Reserve to stick to big-sized interest-rate hikes. Aggressive rise in borrowing costs have stoked fears of slowing economic growth and a hit to corporate profits, but with the labor market remaining tight, the Fed was likely to continue with its monetary tightening plan.
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With the benchmark 10-year Treasury yield US10YT=RR rising to 3.9038%, most rate-sensitive technology and growth stocks such as Alphabet Inc GOOGL.O, Amazon.com AMZN.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O fell between 1.7% and 2.4%. By Shreyashi Sanyal and Ankika Biswas Oct 7 (Reuters) - Wall Street was set to open sharply lower on Friday as solid job growth and a drop in the unemployment rate last month pointed to a tight labor market, giving more room for the Federal Reserve to stick to big-sized interest-rate hikes. The Labor Department's closely watched employment report showed nonfarm payrolls increased by 263,000 jobs last month after rising 315,000 in August.
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18990.0
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2022-10-07 00:00:00 UTC
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US STOCKS-Nasdaq futures slip on AMD warning; jobs data awaited
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-futures-slip-on-amd-warning-jobs-data-awaited
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By Ankika Biswas
Oct 7 (Reuters) - Nasdaq index futures fell on Friday after a revenue warning from Advanced Micro Devices Inc sparked losses in chipmakers, with investors awaiting data that is likely to show U.S. job growth slowed in September.
AMD AMD.O lost 5.4% in premarket trading as its third-quarter revenue estimates were about a billion dollars less than previously forecast, signaling the chip slump could be much worse than expected.
Other chipmakers, Qualcomm Inc QCOM.O, Intel Corp INTC.O, ON Semiconductors ON.O, Lam Research LRCX.O, and Nvidia Corp NVDA.O shed between 1.3% and 3%.
Stock futures were trading in a narrow range in anticipation of the Labor Department's closely watched employment report, which will show nonfarm payrolls likely increased by 250,000 jobs last month after rising 315,000 in August.
Aggressive interest rate hikes have made businesses more cautious about the economy, but the labor market remains tight, giving the Federal Reserve enough room to continue its monetary tightening plan.
The report will also likely show the jobless rate remained unchanged at 3.7%.
"Any increase in the headline unemployment rate, would be key to any narrative around a Fed pivot," said Michael Weisz, president of Yieldstreet.
"Our view is that the latest economic projections (by the Fed) indicate that not only is a recession inevitable but is being purposely engineered."
At 6:46 a.m. ET, Dow e-minis 1YMcv1 were up 33 points, or 0.11%, S&P 500 e-minis EScv1 were down 1.75 points, or 0.05%, and Nasdaq 100 e-minis NQcv1 were down 39.75 points, or 0.34%.
All three main Wall Street indexes were set to snap a three-week losing streak, heading for their biggest weekly gain since late June.
Most rate-sensitive technology and growth stocks such as Alphabet Inc GOOGL.O, Amazon.com AMZN.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O were down between 0.2% and 0.5%.
Before closing lower on Thursday, markets briefly took comfort from data showing weekly jobless claims rising by the most in four months last week, raising hopes of some easing in the Fed's rapid interest rate hikes.
With most Fed officials supporting the need for continued rapid rate hikes, investors will monitor comments from New York President John Williams, Minneapolis President Neel Kashkari, and Atlanta President Raphael Bostic for any slight deviation in narrative.
Meanwhile, top U.S. senators from both parties on Thursday gave momentum to a so-called No Oil Producing and Exporting Cartels bill pressuring OPEC+, after the group announced a deep cut in oil production worsening inflation woes.
(Reporting by Ankika Biswas in Bengaluru; Editing by 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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Most rate-sensitive technology and growth stocks such as Alphabet Inc GOOGL.O, Amazon.com AMZN.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O were down between 0.2% and 0.5%. By Ankika Biswas Oct 7 (Reuters) - Nasdaq index futures fell on Friday after a revenue warning from Advanced Micro Devices Inc sparked losses in chipmakers, with investors awaiting data that is likely to show U.S. job growth slowed in September. Stock futures were trading in a narrow range in anticipation of the Labor Department's closely watched employment report, which will show nonfarm payrolls likely increased by 250,000 jobs last month after rising 315,000 in August.
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Most rate-sensitive technology and growth stocks such as Alphabet Inc GOOGL.O, Amazon.com AMZN.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O were down between 0.2% and 0.5%. By Ankika Biswas Oct 7 (Reuters) - Nasdaq index futures fell on Friday after a revenue warning from Advanced Micro Devices Inc sparked losses in chipmakers, with investors awaiting data that is likely to show U.S. job growth slowed in September. Before closing lower on Thursday, markets briefly took comfort from data showing weekly jobless claims rising by the most in four months last week, raising hopes of some easing in the Fed's rapid interest rate hikes.
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Most rate-sensitive technology and growth stocks such as Alphabet Inc GOOGL.O, Amazon.com AMZN.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O were down between 0.2% and 0.5%. By Ankika Biswas Oct 7 (Reuters) - Nasdaq index futures fell on Friday after a revenue warning from Advanced Micro Devices Inc sparked losses in chipmakers, with investors awaiting data that is likely to show U.S. job growth slowed in September. Before closing lower on Thursday, markets briefly took comfort from data showing weekly jobless claims rising by the most in four months last week, raising hopes of some easing in the Fed's rapid interest rate hikes.
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Most rate-sensitive technology and growth stocks such as Alphabet Inc GOOGL.O, Amazon.com AMZN.O, Apple Inc AAPL.O, Microsoft Corp MSFT.O were down between 0.2% and 0.5%. By Ankika Biswas Oct 7 (Reuters) - Nasdaq index futures fell on Friday after a revenue warning from Advanced Micro Devices Inc sparked losses in chipmakers, with investors awaiting data that is likely to show U.S. job growth slowed in September. The report will also likely show the jobless rate remained unchanged at 3.7%.
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18991.0
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2022-10-07 00:00:00 UTC
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These 3 Tech Stocks Are Building the Future
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https://www.nasdaq.com/articles/these-3-tech-stocks-are-building-the-future-3
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When considering which tech stock will produce the largest returns, it's best to invest in innovative companies that will be major players over the next several decades rather than the next few quarters. Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT) have each undoubtedly changed tech as we know it, founded by leaders with an eye sharply trained on the future.
As a result, these companies continue to produce game-changing products and services and are likely to for years to come. Here's why.
1. Amazon
Amazon revolutionized e-commerce when it was founded in 1994, beginning by selling music and videos, soon moving on to books and hundreds of other products. The company then shook up the industry again with the launch of Amazon Prime in 2005. The subscription service has accumulated 163.5 million U.S. users -- about 49% of the population.
Amazon has earned a reputation for disrupting well-established industries with superior technology and aggressive investment. Its venture into books saw it take on publishers and booksellers worldwide, offering a cheaper and faster way to buy literature. Then, it took on Sony, Apple, and Samsung with its release of e-readers and tablets. Its recent acquisitions of One Medical and iRobot may see Amazon do the same again in the healthcare and consumer robotics industries.
Moreover, Amazon Web Services (AWS) has become a titan in cloud computing, with a dominating 34% market share of the $203.5 billion industry. Launched in 2006, AWS hosts applications and websites for businesses, universities, and government agencies around the world. As a result, AWS accounted for 13% of Amazon's revenue in the last quarter of 2021 and 100% of its operating income.
Amazon has proven time and time again that it is a force to be reckoned with, no matter the industry. It will likely continue growing and revolutionizing the tech world for years to come.
2. Apple
Apple is arguably the most innovative company in the world, not necessarily by being the first to introduce a product, but due to its unique talent at reinventing technology and boosting it into the mainstream. In 2007, Apple launched the first iPhone, which catapulted smartphones into the stratosphere and prompted dozens of other tech companies to create similar devices. The tech giant did the same with the tablet when it introduced the iPad in 2010 and convinced millions of consumers to wear a smart watch when it released the Apple Watch in 2016.
Moreover, Apple has developed a winning strategy with its products. Its ecosystem of interconnected devices offers ease of use for consumers and involves a model where users are pulled deeper into its walled garden through just one product. For instance, iPhone users are more likely to seek a MacBook when shopping for a laptop or an iPad when needing a tablet simply because the devices natively work so well together.
As of Sept. 5, the iPhone overtook Android-powered smartphones in the U.S., reaching 50% market share for the first time. The achievement is positive for Apple because more iPhone users means more people to attract to its other products.
Apple tends to keep a tight lid on its unannounced projects, but rumors have swirled that it has plans to enter various other markets, such as virtual reality, electric vehicles, and folding phones. If the past is anything to go by, these industries will be markedly changed once Apple arrives.
3. Microsoft
Since creating Windows software in the 1980s, Microsoft has dominated the desktop and later portable computer market. Despite the best efforts of companies like Apple to capture market share from Microsoft, the maker of Windows has maintained an iron grip on the PC operating system market. Apple has used an aggressive strategy over the last decade, but Windows continues to account for over 76% of the PC software market.
That number rises significantly when it comes to gaming. Windows operating systems make up over 96% of the PC gaming market on the biggest platform, Valve's Steam.
In recent years, Microsoft has been combining its Xbox console and Windows PC gaming businesses. Blurring the lines between the two has led to considerable success with its Netflix-like game subscription service, Xbox Game Pass. The service is the most popular gaming subscription in the world, growing from 10 million members in 2020 to 25 million at the start of 2022.
As Microsoft aggressively acquires game developers and publishers, the company is in a prime position to lead the future of the gaming industry, much like Netflix did with the movie industry over the last decade. Additionally, its planned acquisition of Activision Blizzard in 2023 will make it the third-largest gaming company by revenue after Tencent and Sony and give it the power to enact further change in the industry.
10 stocks we like better than Amazon
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Activision Blizzard, Amazon, Apple, Microsoft, Netflix, and Tencent Holdings. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT) have each undoubtedly changed tech as we know it, founded by leaders with an eye sharply trained on the future. Its ecosystem of interconnected devices offers ease of use for consumers and involves a model where users are pulled deeper into its walled garden through just one product. Apple tends to keep a tight lid on its unannounced projects, but rumors have swirled that it has plans to enter various other markets, such as virtual reality, electric vehicles, and folding phones.
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Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT) have each undoubtedly changed tech as we know it, founded by leaders with an eye sharply trained on the future. As Microsoft aggressively acquires game developers and publishers, the company is in a prime position to lead the future of the gaming industry, much like Netflix did with the movie industry over the last decade. Additionally, its planned acquisition of Activision Blizzard in 2023 will make it the third-largest gaming company by revenue after Tencent and Sony and give it the power to enact further change in the industry.
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Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT) have each undoubtedly changed tech as we know it, founded by leaders with an eye sharply trained on the future. Despite the best efforts of companies like Apple to capture market share from Microsoft, the maker of Windows has maintained an iron grip on the PC operating system market. As Microsoft aggressively acquires game developers and publishers, the company is in a prime position to lead the future of the gaming industry, much like Netflix did with the movie industry over the last decade.
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Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT) have each undoubtedly changed tech as we know it, founded by leaders with an eye sharply trained on the future. In recent years, Microsoft has been combining its Xbox console and Windows PC gaming businesses. As Microsoft aggressively acquires game developers and publishers, the company is in a prime position to lead the future of the gaming industry, much like Netflix did with the movie industry over the last decade.
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18992.0
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2022-10-07 00:00:00 UTC
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These 2 Stocks Make Up 52% of Warren Buffett's $325 Billion Portfolio
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AAPL
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https://www.nasdaq.com/articles/these-2-stocks-make-up-52-of-warren-buffetts-%24325-billion-portfolio
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Few people command the attention of Wall Street professionals and everyday investors quite like billionaire Warren Buffett. Since taking the reins of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) in 1965, the Oracle of Omaha, as he's come to be known, has created more than $615 billion in value for shareholders and generated an aggregate return on his company's Class A shares (BRK.A) of 3,641,613%.
In other words, there's plenty of reason for Wall Street and investors to pay attention to what Buffett is buying, selling, and holding.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
While there are plenty of reasons for Warren Buffett's continued success, such as his love of dividend stocks and cyclical businesses, it's his penchant for portfolio concentration that's most interesting. According to the Oracle of Omaha, diversification is effectively "protection against ignorance." Despite Berkshire Hathaway's portfolio containing around four-dozen securities, the lion's share of its invested assets is tied up in just a few companies.
In fact, just two stocks account for 52% of Warren Buffett's $325 billion investment portfolio as of Oct. 4, 2022. Note, this includes shares held by New England Asset Management (NEAM), a specialty investment firm Berkshire Hathaway owns, which was acquired in 1998 when it purchased reinsurance company General Re.
Apple: 41.2% of invested assets
Including shares held by NEAM, Berkshire Hathaway ended the first-half of 2022 with a greater-than 915.2 million-share position in tech stock Apple (NASDAQ: AAPL). That's a 5.7% stake (worth $133.7 billion) in America's largest publicly traded company by market cap.
According to the Oracle of Omaha, Apple is one of Berkshire Hathaway's "four giants." By this, Buffett meant that Apple is a growth driver and/or significant valuation determinant for Berkshire Hathaway's shares and book value. Then again, that's pretty much a given when a single stock accounts for more than 41% of invested assets.
For Buffett, Apple checks all the appropriate boxes he'd like to see in a foundational holding. It has an extremely valuable and well-known brand, a very loyal customer base, and it's led with innovation. More than 15 years after the very first iPhone was released, Apple still commands about a 50% share of the U.S. smartphone market.
However, Apple's innovation extends beyond just physical products. CEO Tim Cook is spearheading a multiyear shift that's emphasizing subscription services. Not only are subscription services growing at a much faster pace than physical products, but the operating margins are considerably higher. As subscription services grow into a larger percentage of total sales, the revenue volatility associated with physical product replacement cycles should diminish.
Warren Buffett is also a huge fan of businesses that reward passive investors. Apple has repurchased close to $520 billion worth of its common stock since the beginning of 2013, and it doles out one of the largest nominal-dollar dividends on the planet (almost $14.5 billion/year).
If anything, significant declines in Apple stock might entice Warren Buffett to further increase his company's stake.
Image source: Getty Images.
Bank of America: 10.3% of invested assets
The other massive holding in Warren Buffett's investment portfolio is Bank of America (NYSE: BAC). Including the shares held by New England Asset Management, Berkshire Hathaway has a 12.9% stake totaling more than 1.03 billion shares ($33.4 billion in market value) in BofA.
Financial stocks are, without question, the Oracle of Omaha's favorite sector in which to put his company's money to work. Even though financials are cyclical and therefore subject to weakness during recessions, periods of economic expansion last substantially longer than contractions. Buying banks, insurers, payment processors, and other financial-service stocks is what allows Buffett to take advantage of the long-term expansion of the U.S. and global economy.
In Bank of America's case, the long-run expansion of the U.S. economy propels loan and deposit growth, which is the easiest way for banks to generate income.
What makes BofA a particularly interesting investment at the moment is its interest-rate sensitivity. Among money-center banks, none will see their net-interest income fluctuate more due to changes in the interest rate yield curve than Bank of America. With the U.S. inflation rate hitting a four-decade high in June and the Federal Reserve aggressively raising interest rates to tame inflation, BofA is set to enjoy a significant increase to the interest it earns from variable-rate outstanding loans.
Something else that goes unnoticed about Bank of America is the success it's had on the digitization front. Over the trailing three-year period, ended June 30, BofA has grown its active digital user count by 6 million to 43 million, as well as seen its total loan sales completed online or via mobile app jump by 19 percentage points to 48%. Online and mobile transactions cost just a fraction of what in-person and phone-based interactions do for banks. Increased digital use is what's allowed BofA to close some of its physical branches and lower its noninterest expenses.
Bank of America has a hefty capital-return program, too. Though it needs the approval of the Federal Reserve before it can return money to shareholders, it's not uncommon for BofA to return in excess of $25 billion annually via buybacks and dividends during a bull market.
The one stock Buffett has spent more money on than Apple and BofA combined
Although Apple and Bank of America combine to account for 52% of Berkshire Hathaway's $325 billion portfolio, I wouldn't go so far as to call either company Buffett's favorite stock. Based on the amount of money the Oracle of Omaha has piled into various stocks over the past decade, no stock has been a more popular buy than his own company (even if it doesn't show up in his investment portfolio).
When Warren Buffett released his annual letter to shareholders earlier this year, it noted a cost basis of approximately $31.1 billion for Apple and $14.6 billion for BofA. Taking into account additional purchases of Apple stock in both the first and second quarter of 2022, the combined cost basis for these two top holdings is probably around $47 billion. That's a lot of money to put to work in two stocks, but it's nothing compared to the $62.1 billion spent repurchasing Berkshire Hathaway Class A and Class B shares since mid-July 2018.
Four years ago, Berkshire Hathaway's board of directors altered the share-buyback criteria to give Buffett and his right-hand man Charlie Munger more freedom to go shopping. As long as Berkshire has $30 billion in cash, cash equivalents, and U.S. Treasuries on its balance sheet, and both Buffett and Munger agree that shares of the company are intrinsically cheap, buybacks can continue without a cap.
Buying back stock is a way Warren Buffett can reward Berkshire Hathaway's shareholders by making them larger owners of the company. In theory, reducing the outstanding share count makes each remaining share that much more valuable. For companies with steady or growing net income, buybacks can also lift earnings per share, which can make a company appear more fundamentally attractive to investors.
While it's clear Warren Buffett has the utmost confidence in Apple and Bank of America, it's also plainly evident that he's willing to bet on himself, his cyclically driven investment portfolio, and the roughly five-dozen businesses Berkshire has acquired over many decades. Given the Oracle of Omaha's long-term track record, this seems like a safe bet to make.
10 stocks we like better than Berkshire Hathaway (B shares)
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Bank of America is an advertising partner 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 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: 41.2% of invested assets Including shares held by NEAM, Berkshire Hathaway ended the first-half of 2022 with a greater-than 915.2 million-share position in tech stock Apple (NASDAQ: AAPL). Note, this includes shares held by New England Asset Management (NEAM), a specialty investment firm Berkshire Hathaway owns, which was acquired in 1998 when it purchased reinsurance company General Re. Four years ago, Berkshire Hathaway's board of directors altered the share-buyback criteria to give Buffett and his right-hand man Charlie Munger more freedom to go shopping.
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Apple: 41.2% of invested assets Including shares held by NEAM, Berkshire Hathaway ended the first-half of 2022 with a greater-than 915.2 million-share position in tech stock Apple (NASDAQ: AAPL). Including the shares held by New England Asset Management, Berkshire Hathaway has a 12.9% stake totaling more than 1.03 billion shares ($33.4 billion in market value) in BofA. The one stock Buffett has spent more money on than Apple and BofA combined Although Apple and Bank of America combine to account for 52% of Berkshire Hathaway's $325 billion portfolio, I wouldn't go so far as to call either company Buffett's favorite stock.
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Apple: 41.2% of invested assets Including shares held by NEAM, Berkshire Hathaway ended the first-half of 2022 with a greater-than 915.2 million-share position in tech stock Apple (NASDAQ: AAPL). The one stock Buffett has spent more money on than Apple and BofA combined Although Apple and Bank of America combine to account for 52% of Berkshire Hathaway's $325 billion portfolio, I wouldn't go so far as to call either company Buffett's favorite stock. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple.
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Apple: 41.2% of invested assets Including shares held by NEAM, Berkshire Hathaway ended the first-half of 2022 with a greater-than 915.2 million-share position in tech stock Apple (NASDAQ: AAPL). Bank of America: 10.3% of invested assets The other massive holding in Warren Buffett's investment portfolio is Bank of America (NYSE: BAC). Including the shares held by New England Asset Management, Berkshire Hathaway has a 12.9% stake totaling more than 1.03 billion shares ($33.4 billion in market value) in BofA.
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18993.0
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2022-10-07 00:00:00 UTC
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Taiwan Sept exports drop for first time in two years, outlook poor
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AAPL
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https://www.nasdaq.com/articles/taiwan-sept-exports-drop-for-first-time-in-two-years-outlook-poor
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Recasts, updates throughout
Taiwan Sept exports -5.3% y/y vs +1.5% Reuters poll
Exports to China -13.3% y/y (previous month -9.9%)
TSMC reports Sept sales jump 36.4% y/y
Finance ministry expects Oct exports -3% to -6% y/y
Ministry warns of "deepening doubts" about world economy
TAIPEI, Oct 7 (Reuters) - Taiwan's exports fell in September for the first time in more than two years on weakness in demand in major market China and stagnant consumer spending even as chip demand held up, with the government predicting more turbulence ahead.
Exports fell 5.3% in September from a year earlier to $37.53 billion, the Ministry of Finance said on Friday, logging a contraction for the first time since June 2020.
That was compared to the 2% rise recorded in August, and well below a forecast for a 1.5% increase in a Reuters poll.
Ministry official Beatrice Tsai said exports were coming off a high base last year, when the COVID-19 pandemic boosted demand for work-from-home gear like tablets, but the "root case" was the effect of high inflation, monetary policy tightening, and stagnant consumer demand from the cooling of China's economy.
Exports to China, Taiwan's largest trading partner, fell an annual 13.3% to $15.17 billion in September, after a 9.9% contraction in August, in a sign of the continued economic problems there.
China will not release its trade data until Oct. 14, after the end of the weeklong National Day holiday which began on Oct. 1.
However, Taiwan's overall exports of electronics components in September rose 2.4% to $16.99 billion, with semiconductor exports up 3.5% from a year earlier.
Many companies expect global chip shortages to last at least for the rest of the year, which will continue to bolster Taiwanese semiconductor firms' order books even as demand for some consumer electronics weakens.
Firms such as TSMC 2330.TWTSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O and other global tech giants, as well as providers of chips for auto companies and lower-end consumer goods.
Earlier on Friday, TSMC reported September sales leapt an on-year 36.4%, though slipped 4.5% compared to August, while on Thursday smaller competitor United Microelectronics Corp 2303.TW said sales last month rose 34.5% year-on-year.
The finance ministry warned of trouble ahead from monetary policy tightening in the United States and Europe with manufacturing in various countries slowing significantly, saying there were "deepening doubts" about the outlook.
These problems may "highly impede our export performance in the fourth quarter", it added.
September exports to the United States were down 2.1%, compared with the 2.3% rise recorded the previous month.
Taiwan's September imports fell 2.4% to $32.51 billion, worse than economists' expectations of a 7% rise and after an expansion of 3.5% in August.
Taiwan could see October exports contract in a range of 3% to 6% from a year earlier, the finance ministry said.
(Reporting by Liang-sa Loh and Ben Blanchard; Editing by 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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Firms such as TSMC 2330.TWTSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O and other global tech giants, as well as providers of chips for auto companies and lower-end consumer goods. Many companies expect global chip shortages to last at least for the rest of the year, which will continue to bolster Taiwanese semiconductor firms' order books even as demand for some consumer electronics weakens. The finance ministry warned of trouble ahead from monetary policy tightening in the United States and Europe with manufacturing in various countries slowing significantly, saying there were "deepening doubts" about the outlook.
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Firms such as TSMC 2330.TWTSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O and other global tech giants, as well as providers of chips for auto companies and lower-end consumer goods. Recasts, updates throughout Taiwan Sept exports -5.3% y/y vs +1.5% Reuters poll Exports to China -13.3% y/y (previous month -9.9%) TSMC reports Sept sales jump 36.4% y/y Finance ministry expects Oct exports -3% to -6% y/y Ministry warns of "deepening doubts" about world economy TAIPEI, Oct 7 (Reuters) - Taiwan's exports fell in September for the first time in more than two years on weakness in demand in major market China and stagnant consumer spending even as chip demand held up, with the government predicting more turbulence ahead. Ministry official Beatrice Tsai said exports were coming off a high base last year, when the COVID-19 pandemic boosted demand for work-from-home gear like tablets, but the "root case" was the effect of high inflation, monetary policy tightening, and stagnant consumer demand from the cooling of China's economy.
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Firms such as TSMC 2330.TWTSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O and other global tech giants, as well as providers of chips for auto companies and lower-end consumer goods. Recasts, updates throughout Taiwan Sept exports -5.3% y/y vs +1.5% Reuters poll Exports to China -13.3% y/y (previous month -9.9%) TSMC reports Sept sales jump 36.4% y/y Finance ministry expects Oct exports -3% to -6% y/y Ministry warns of "deepening doubts" about world economy TAIPEI, Oct 7 (Reuters) - Taiwan's exports fell in September for the first time in more than two years on weakness in demand in major market China and stagnant consumer spending even as chip demand held up, with the government predicting more turbulence ahead. Ministry official Beatrice Tsai said exports were coming off a high base last year, when the COVID-19 pandemic boosted demand for work-from-home gear like tablets, but the "root case" was the effect of high inflation, monetary policy tightening, and stagnant consumer demand from the cooling of China's economy.
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Firms such as TSMC 2330.TWTSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O and other global tech giants, as well as providers of chips for auto companies and lower-end consumer goods. Recasts, updates throughout Taiwan Sept exports -5.3% y/y vs +1.5% Reuters poll Exports to China -13.3% y/y (previous month -9.9%) TSMC reports Sept sales jump 36.4% y/y Finance ministry expects Oct exports -3% to -6% y/y Ministry warns of "deepening doubts" about world economy TAIPEI, Oct 7 (Reuters) - Taiwan's exports fell in September for the first time in more than two years on weakness in demand in major market China and stagnant consumer spending even as chip demand held up, with the government predicting more turbulence ahead. Exports to China, Taiwan's largest trading partner, fell an annual 13.3% to $15.17 billion in September, after a 9.9% contraction in August, in a sign of the continued economic problems there.
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18994.0
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2022-10-07 00:00:00 UTC
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Alphabet (GOOGL) Expands Pixel Family With Latest Devices
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AAPL
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https://www.nasdaq.com/articles/alphabet-googl-expands-pixel-family-with-latest-devices
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Alphabet’s GOOGL division Google is leaving no stone unturned to expand its Pixel family.
At its Made by Google 2022 launch event, the company ended the quest for its long-awaited smartwatch by rolling out its first smartwatch — Google Pixel Watch, which runs on Wear OS software and is powered by Fitbit’s technology.
The watch comes with contactless payments, music control, turn-by-turn directions, heart rate variability, breathing rate, and resting heart rate features, to name a few.
The company expanded its smartphone offering by launching Pixel 7 and Pixel 7 Pro phones, which are powered by next-generation Tensor G2 processor and Android 13. The phones are also equipped with advanced machine learning technology and speech recognition feature.
Apart from the devices, Google gave a glimpse of its Pixel Tablet, which will be launched in 2023. The device will also be backed by a Tensor G2 chip like the new Pixel phones.
The latest move has added strength to Google’s hardware business and bolstered its device strategy.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Growth Prospects
We believe that the latest move will help Google rapidly penetrate the booming smartphone, smartwatch and tablet market.
According to a report by Persistence Market Research, the global smartphone market is expected to reach $982.8 billion by 2031, seeing a CAGR of 6.8% between 2021 and 2031.
Per a report from Facts and Factors, revenues in the global smartwatch market are expected to hit $97.5 billion by 2028, witnessing a CAGR of 21.5% between 2022 and 2028.
Per a report from Maximize Market Research, the global tablet market is likely to reach $53.8 billion by 2029, witnessing a CAGR of 3.4% between 2022 and 2029.
Cut-Throat Competition With Apple
With the latest move, Google ups its device game against Apple AAPL, which continues to ride on its robust device portfolio.
Apple’s flagship device iPhone, which generated revenues of $40.67 billion and accounted for 49% of the total sales in third-quarter fiscal 2022, remains its key catalyst.
The company is continuously gaining strong traction among customers on the back of its iPhone 13 family of devices.
Recently, the company unveiled four iPhone models — iPhone 14, iPhone 14 Plus, iPhone 14 Pro and iPhone 14 Pro Max — at its product launch event.
Apple is also riding on its non-iPhone devices like Apple Watch and AirPod, which enjoy solid customer momentum.
At the same event, the company launched the next-gen Airpods Pro, the Apple Watch Series 8, the new Apple Watch SE, Apple Watch Ultra and updates to Fitness+.
Nevertheless, Google’s strengthening device strategy is likely to give strong competition to Apple.
Zacks Rank & Stocks to Consider
Currently, Alphabet carries a Zacks Rank #3 (Hold).
Investors interested in the broader Zacks Computer & Technology sector can consider some better-ranked stocks like Pure Storage PSTG and Arista Networks ANET. While Pure Storage currently sports a Zacks Rank #1 ( Strong Buy), Arista Networks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Pure Storage has lost 10.8% in the year-to-date period. The long-term earnings growth rate for PSTG is currently projected at 35.5%.
Arista Networks has lost 15.6% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 15.7%.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Apple Inc. (AAPL): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Arista Networks, Inc. (ANET): Free Stock Analysis Report
Pure Storage, Inc. (PSTG): 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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Cut-Throat Competition With Apple With the latest move, Google ups its device game against Apple AAPL, which continues to ride on its robust device portfolio. Apple Inc. (AAPL): Free Stock Analysis Report Apple’s flagship device iPhone, which generated revenues of $40.67 billion and accounted for 49% of the total sales in third-quarter fiscal 2022, remains its key catalyst.
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Cut-Throat Competition With Apple With the latest move, Google ups its device game against Apple AAPL, which continues to ride on its robust device portfolio. Apple Inc. (AAPL): Free Stock Analysis Report While Pure Storage currently sports a Zacks Rank #1 ( Strong Buy), Arista Networks carries a Zacks Rank #2 (Buy).
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Cut-Throat Competition With Apple With the latest move, Google ups its device game against Apple AAPL, which continues to ride on its robust device portfolio. Apple Inc. (AAPL): Free Stock Analysis Report At the same event, the company launched the next-gen Airpods Pro, the Apple Watch Series 8, the new Apple Watch SE, Apple Watch Ultra and updates to Fitness+.
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Cut-Throat Competition With Apple With the latest move, Google ups its device game against Apple AAPL, which continues to ride on its robust device portfolio. Apple Inc. (AAPL): Free Stock Analysis Report Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote Growth Prospects We believe that the latest move will help Google rapidly penetrate the booming smartphone, smartwatch and tablet market.
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18995.0
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2022-10-06 00:00:00 UTC
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Google's new Pixel Watch faces hurdles with economy, no iPhone support
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AAPL
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https://www.nasdaq.com/articles/googles-new-pixel-watch-faces-hurdles-with-economy-no-iphone-support
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By Paresh Dave
OAKLAND, Calif., Oct 6 (Reuters) - Google's debut smartwatch will go on sale Oct. 13 for $350, the Alphabet Inc GOOGL.O unit said on Thursday, taking on a field dominated by Apple Watch at a time when inflation-hammered consumers are shunning all forms of pricey wearables.
At $100 more than Apple Inc's AAPL.O lowest-cost model and limited to people with Android phones, the Google Pixel Watch faces enormous obstacles to adoption, market analysts say. Even sales of the Apple Watch have slipped this year as consumers delay purchases or select cheaper rivals.
"The market is not as robust as it once was," said Jitesh Ubrani, a research manager at market intelligence firm IDC, adding that aggressive discounting will be crucial to Google.
Google apps already work with watches from companies including Apple, Samsung Electronics Co 005930.KS and Fitbit, which Google bought last year and whose devices are known for tracking personal health.
The new round-faced Pixel Watch, made from stainless steel and glass with dozens of wristband options, enables contactless payments, music control and turn-by-turn directions. A model with cellular connectivity costs $50 more.
The watches will be sold in the United States and several other countries. They will not pair with iPhones because Apple gives its own watches exclusive access to messaging and other important features users would want, said Sandeep Waraich, a Google director of product management.
Hardware sales are a growing part of Google's sales, with benefits also coming through more opportunities to sell ads and services subscriptions.
Google also said its latest smartphones would go on sale in 17 countries starting Oct. 13. They include a $599 Pixel 7 with a 6.3-inch display and a shinier $899 7 Pro with a 6.7-inch display, further camera zoom and additional RAM.
Though a small player in smartphones overall, Google's sales are accelerating. It shipped 3 million phones in the first half of this year, up 131% on a year ago, according to tracking company Canalys.
(Reporting by Paresh Dave; Editing by Peter Henderson and Richard Pullin)
((paresh.dave@thomsonreuters.com; 415-565-1302;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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At $100 more than Apple Inc's AAPL.O lowest-cost model and limited to people with Android phones, the Google Pixel Watch faces enormous obstacles to adoption, market analysts say. By Paresh Dave OAKLAND, Calif., Oct 6 (Reuters) - Google's debut smartwatch will go on sale Oct. 13 for $350, the Alphabet Inc GOOGL.O unit said on Thursday, taking on a field dominated by Apple Watch at a time when inflation-hammered consumers are shunning all forms of pricey wearables. The new round-faced Pixel Watch, made from stainless steel and glass with dozens of wristband options, enables contactless payments, music control and turn-by-turn directions.
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At $100 more than Apple Inc's AAPL.O lowest-cost model and limited to people with Android phones, the Google Pixel Watch faces enormous obstacles to adoption, market analysts say. Even sales of the Apple Watch have slipped this year as consumers delay purchases or select cheaper rivals. Google apps already work with watches from companies including Apple, Samsung Electronics Co 005930.KS and Fitbit, which Google bought last year and whose devices are known for tracking personal health.
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At $100 more than Apple Inc's AAPL.O lowest-cost model and limited to people with Android phones, the Google Pixel Watch faces enormous obstacles to adoption, market analysts say. By Paresh Dave OAKLAND, Calif., Oct 6 (Reuters) - Google's debut smartwatch will go on sale Oct. 13 for $350, the Alphabet Inc GOOGL.O unit said on Thursday, taking on a field dominated by Apple Watch at a time when inflation-hammered consumers are shunning all forms of pricey wearables. Google apps already work with watches from companies including Apple, Samsung Electronics Co 005930.KS and Fitbit, which Google bought last year and whose devices are known for tracking personal health.
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At $100 more than Apple Inc's AAPL.O lowest-cost model and limited to people with Android phones, the Google Pixel Watch faces enormous obstacles to adoption, market analysts say. By Paresh Dave OAKLAND, Calif., Oct 6 (Reuters) - Google's debut smartwatch will go on sale Oct. 13 for $350, the Alphabet Inc GOOGL.O unit said on Thursday, taking on a field dominated by Apple Watch at a time when inflation-hammered consumers are shunning all forms of pricey wearables. Google also said its latest smartphones would go on sale in 17 countries starting Oct. 13.
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18996.0
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2022-10-06 00:00:00 UTC
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Apple to appeal the French anti-trust fine despite it being trimmed down
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AAPL
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https://www.nasdaq.com/articles/apple-to-appeal-the-french-anti-trust-fine-despite-it-being-trimmed-down
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PARIS, Oct 6 (Reuters) - Apple AAPL.O said on Thursday it would appeal the fine it was imposed upon for anti-competitive by the French antitrust watchdog in 2020, despite the fact that the Paris appeals court substantially lowered it earlier.
"While the court correctly reversed part of the French Competition Authority's decision, we believe it should be overturned in full and plan to appeal," the company said in a statement.
"The decision relates to practices from more than a decade ago that even the FCA recognized are no longer in use," it added.
(Reporting by Mathieu Rosemain; Writing by Benoit Van Overstraeten; Editing by GV De Clercq)
((benoit.vanoverstraeten@thomsonreuters.com; +33149495339;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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PARIS, Oct 6 (Reuters) - Apple AAPL.O said on Thursday it would appeal the fine it was imposed upon for anti-competitive by the French antitrust watchdog in 2020, despite the fact that the Paris appeals court substantially lowered it earlier. "While the court correctly reversed part of the French Competition Authority's decision, we believe it should be overturned in full and plan to appeal," the company said in a statement. "The decision relates to practices from more than a decade ago that even the FCA recognized are no longer in use," it added.
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PARIS, Oct 6 (Reuters) - Apple AAPL.O said on Thursday it would appeal the fine it was imposed upon for anti-competitive by the French antitrust watchdog in 2020, despite the fact that the Paris appeals court substantially lowered it earlier. "While the court correctly reversed part of the French Competition Authority's decision, we believe it should be overturned in full and plan to appeal," the company said in a statement. (Reporting by Mathieu Rosemain; Writing by Benoit Van Overstraeten; Editing by GV De Clercq) ((benoit.vanoverstraeten@thomsonreuters.com; +33149495339;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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PARIS, Oct 6 (Reuters) - Apple AAPL.O said on Thursday it would appeal the fine it was imposed upon for anti-competitive by the French antitrust watchdog in 2020, despite the fact that the Paris appeals court substantially lowered it earlier. "While the court correctly reversed part of the French Competition Authority's decision, we believe it should be overturned in full and plan to appeal," the company said in a statement. (Reporting by Mathieu Rosemain; Writing by Benoit Van Overstraeten; Editing by GV De Clercq) ((benoit.vanoverstraeten@thomsonreuters.com; +33149495339;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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PARIS, Oct 6 (Reuters) - Apple AAPL.O said on Thursday it would appeal the fine it was imposed upon for anti-competitive by the French antitrust watchdog in 2020, despite the fact that the Paris appeals court substantially lowered it earlier. "While the court correctly reversed part of the French Competition Authority's decision, we believe it should be overturned in full and plan to appeal," the company said in a statement. "The decision relates to practices from more than a decade ago that even the FCA recognized are no longer in use," it added.
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18997.0
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2022-10-06 00:00:00 UTC
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Does Snowflake Stock Justify Its Lofty Valuation In A Rising Rate Environment?
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AAPL
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https://www.nasdaq.com/articles/does-snowflake-stock-justify-its-lofty-valuation-in-a-rising-rate-environment
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Snowflake stock (NYSE:SNOW) has held up relatively well through the tech sell-off over the last month, rising by about 8% since early September, compared to the Nasdaq-100 which remains down by about 4% over the same period. The technology space has seen a sell-off, amid concerns about the U.S. economy, with GDP contracting over the last two quarters and the Fed continuing with its aggressive rate hikes as it looks to rein in inflation. However, Snowflake’s underlying performance has actually been pretty strong in the face of these headwinds as demand for its cloud data warehousing solutions has held up. The company’s Q2 FY’23 results were better than expected with sales growing by 83% year-over-year to $497 million and operating margins coming in positive, versus a forecast loss. Snowflake also raised its revenue guidance marginally, projecting product revenue of between $1.90 billion and $1.915 billion, up between 67% and 68% year-over-year. Wall Street has also been largely positive on the stock, with most new coverage initiations coming with a buy rating.
Although Snowflake stock has declined by close to 46% year-to-date and by almost 55% from all-time highs, trading at about $183 per share, the company’s forward price-to-sales multiple still stands at nearly 29x, compared to the broader S&P 500 which trades at under 2.5x sales. This appears to be a lofty multiple in the current rising interest rate environment, with the benchmark federal funds rate now standing at over 3%, from just about 0.25% at the beginning of this year. However, the markets are likely betting that Snowflake will grow into this valuation quickly, given its large addressable market and its expanding margins. Snowflake is likely to be a prime beneficiary of the ongoing pivot from on-premise databases to cloud-based warehousing solutions. Snowflake is well-positioned in this market, as its product works across cloud platforms such as Amazon’s AWS, Google Cloud, and Azure, and also offers more flexibility, as it separates storage from computing for the purpose of billing. The company is targeting $10 billion in annual revenue by FY’29 and it is possible that it could fare still better, considering its strong recent execution and its growing addressable market (about $248 billion) as it focuses on new workloads such as cybersecurity.
We value Snowflake stock at about $210 per share, about 15% ahead of the current market price. See our analysis Snowflake Valuation: Is SNOW Stock Expensive Or Cheap? for more details. See our analysis of Snowflake Revenue for more details on Snowflake’s business model and how its revenues are expected to trend.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Oct 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
SNOW Return 8% -46% -35%
S&P 500 Return 6% -20% 69%
Trefis Multi-Strategy Portfolio 8% -21% 214%
[1] Month-to-date and year-to-date as of 10/5/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Snowflake stock (NYSE:SNOW) has held up relatively well through the tech sell-off over the last month, rising by about 8% since early September, compared to the Nasdaq-100 which remains down by about 4% over the same period. The technology space has seen a sell-off, amid concerns about the U.S. economy, with GDP contracting over the last two quarters and the Fed continuing with its aggressive rate hikes as it looks to rein in inflation. The company’s Q2 FY’23 results were better than expected with sales growing by 83% year-over-year to $497 million and operating margins coming in positive, versus a forecast loss.
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Snowflake also raised its revenue guidance marginally, projecting product revenue of between $1.90 billion and $1.915 billion, up between 67% and 68% year-over-year. See our analysis Snowflake Valuation: Is SNOW Stock Expensive Or Cheap? Total [2] SNOW Return 8% -46% -35% S&P 500 Return 6% -20% 69% Trefis Multi-Strategy Portfolio 8% -21% 214% [1] Month-to-date and year-to-date as of 10/5/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, the markets are likely betting that Snowflake will grow into this valuation quickly, given its large addressable market and its expanding margins. See our analysis of Snowflake Revenue for more details on Snowflake’s business model and how its revenues are expected to trend. Total [2] SNOW Return 8% -46% -35% S&P 500 Return 6% -20% 69% Trefis Multi-Strategy Portfolio 8% -21% 214% [1] Month-to-date and year-to-date as of 10/5/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, Snowflake’s underlying performance has actually been pretty strong in the face of these headwinds as demand for its cloud data warehousing solutions has held up. The company’s Q2 FY’23 results were better than expected with sales growing by 83% year-over-year to $497 million and operating margins coming in positive, versus a forecast loss. Total [2] SNOW Return 8% -46% -35% S&P 500 Return 6% -20% 69% Trefis Multi-Strategy Portfolio 8% -21% 214% [1] Month-to-date and year-to-date as of 10/5/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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18998.0
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2022-10-06 00:00:00 UTC
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ANALYSIS-Chip industry rethinks Taiwan risk after Pelosi visit but options limited
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AAPL
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https://www.nasdaq.com/articles/analysis-chip-industry-rethinks-taiwan-risk-after-pelosi-visit-but-options-limited
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By Sarah Wu
TAIPEI, Oct 7 (Reuters) - Chinese missiles flying over Taiwan and naval drills in the Strait in August that simulated a blockade by China have jolted the semiconductor industry into contemplating what once seemed a remote possibility: war over the major chip-producing island.
From drafting contingency plans to inquiring about manufacturing capacity outside Taiwan, some companies are now weighing how to respond if China attacks or restricts access to the democratic island, according to 15 semiconductor executives interviewed by Reuters.
While Taiwan has lived under the Chinese threat for decades, with occasional spikes in tensions, the war games in early August following the visit of U.S. House Speaker Nancy Pelosi to Taipei rattled nerves, said the executives, who asked for themselves and their companies not to be identified due to concerns over relations with China.
China claims Taiwan as its own territory. Taiwan's government rejects China's sovereignty claims.
Taiwan produces the vast majority of the world's most advanced chips and is home to Taiwan Semiconductor Manufacturing Company Ltd (TSMC) 2330.TW, the world's largest contract chipmaker and supplier to major companies like Apple Inc APPL.O, U.S. chipmaker Nvidia Corp NVDA.O and chip designer Qualcomm Inc.
Chips are crucial for building everything from iPhones and washing machines to cars and fighter jets.
The executives said it would be hard to wean the world off its reliance on Taiwan's hi-tech chips quickly but geopolitical challenges confronting the industry are increasing.
"Everyone is currently talking about business continuity plans," said Terry Tsao, president of the SEMI Taiwan industry group. "A small portion of companies have only started to make these plans recently. From what I've heard, most are foreign companies."
Forty percent of respondents polled by the American Chamber of Commerce in Taiwan the week after Pelosi's visit said their companies were revising or about to revise their crisis contingency or continuity of operations plans in Taiwan.
One chip executive at a large foreign firm with operations in Taiwan said his company was asked about its business continuity plans by its customers and had in turn asked their suppliers in Taiwan the same questions.
"No-one really ever highlighted any kind of military action in their business continuity plans and now they are," he said. Unsettled by the Chinese drills, which showed how easily Taiwan could be blockaded, management had launched efforts to plan for disruption in supplies and other scenarios, he said: "I don't think anybody believes the political environment is going to get any better."
Some say the presence of chipmakers provides Taiwan with a ‘silicon shield’ – making China less likely to attempt to take the island by force and the United States reluctant to allow it to fall into Chinese hands. While the government in Taipei has downplayed this theory, it is keen to avoid any weakening of its economically vital semiconductor sector.
Later in August, officials from Taiwan's foreign ministry, economy ministry, and top military think tank made their case for the island remaining a safe place for chip investment at a closed-door AmCham event.
Sebastian Hou, senior investment analyst at Neuberger Berman in Taipei, said that after the U.S.-China trade war began many Taiwanese non-chip tech companies had reshored manufacturing or relocated to Southeast Asia because they were asked by their clients in the United States or Europe to diversify away from China.
However, following Pelosi's visit, "customers in the Western world expressed their concerns about being too concentrated in Taiwan", Hou said: "There's no immediate action requested by their Western clients, but some discussion is already underway."
INDISPENSABLE ISLAND
One foreign chip executive with factories outside of Taiwan said more companies contacted him after Pelosi's visit to discuss options, but those meetings have not yet translated into new orders. He declined to name the companies involved.
"People are looking at: ‘If I have choices, where else can I go to ensure that my device - my supply chain - does have alternatives if missiles do start flying?" the executive said.
These are customers seeking chips made with older technology because, when it comes to the bleeding-edge, there are no alternatives to TSMC with the production capacity to serve leading firms, the executive said.
Executives told Reuters it will be difficult to replicate the efficiency of Taiwan's semiconductor industry, with chip giants and hundreds of their suppliers arranged in clusters along the western coast of the island - especially given higher costs in countries such as the United States.
An executive at another major foreign chip company with operations in Taiwan said that – while the drills were forcing a closer consideration of the risks of future investment there - withdrawing was not on the table.
"It is still the business or financial terms that have a much bigger say," he said.
Kung Ming-hsin, minister of Taiwan's National Development Council, told reporters last month that major chip companies, including foreign ones, will invest around $210 billion in Taiwan over the next five years on advanced manufacturing.
German chip materials giant Merck is redoubling its investment.
Last year, Merck announced a 500-million-euro investment in Taiwan over the next five to seven years. John Lee, managing director of Merck Group in Taiwan, told Reuters after Pelosi's visit that it has no plans to change course because the demand for chips is growing exponentially and Taiwan remains the world's largest semiconductor materials market.
'BEYOND OUR CONTROL'
One executive at a major Taiwanese tech firm said it started to produce daily geopolitical reports following the drills to assuage foreign clients that it was taking the issue seriously – rather than because it was concerned about the risk of war.
"Taiwan is used to this but if you are sitting in the C-suite overseas, it's much more alarming," the executive said.
A senior executive at another Taiwanese chip company said, however, that his firm has yet to receive significant pressure from foreign clients because of the military tensions.
"They understand no matter how hard they twist our arm, there's very little we can do," said the executive.
In recent years, Taiwanese chip companies have ramped up investments abroad, but the planned capacity is still only a fraction of their overall output, executives and analysts say.
When asked whether cross-strait tensions would affect his business, Miin Wu, the chairman and CEO of Taiwanese chipmaker Macronix International Co Ltd, told reporters last month: "Of course we worry about it". But he added that worrying did no good.
"Rather, we just continue to invest and come up with better and better products," he said.
(Reporting by Sarah Wu; Additional reporting by Ben Blanchard in Taipei and Jane Lanhee Lee in San Francisco; Editing by Daniel Flynn)
((S.Wu@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Sarah Wu TAIPEI, Oct 7 (Reuters) - Chinese missiles flying over Taiwan and naval drills in the Strait in August that simulated a blockade by China have jolted the semiconductor industry into contemplating what once seemed a remote possibility: war over the major chip-producing island. While Taiwan has lived under the Chinese threat for decades, with occasional spikes in tensions, the war games in early August following the visit of U.S. House Speaker Nancy Pelosi to Taipei rattled nerves, said the executives, who asked for themselves and their companies not to be identified due to concerns over relations with China. Sebastian Hou, senior investment analyst at Neuberger Berman in Taipei, said that after the U.S.-China trade war began many Taiwanese non-chip tech companies had reshored manufacturing or relocated to Southeast Asia because they were asked by their clients in the United States or Europe to diversify away from China.
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By Sarah Wu TAIPEI, Oct 7 (Reuters) - Chinese missiles flying over Taiwan and naval drills in the Strait in August that simulated a blockade by China have jolted the semiconductor industry into contemplating what once seemed a remote possibility: war over the major chip-producing island. Taiwan produces the vast majority of the world's most advanced chips and is home to Taiwan Semiconductor Manufacturing Company Ltd (TSMC) 2330.TW, the world's largest contract chipmaker and supplier to major companies like Apple Inc APPL.O, U.S. chipmaker Nvidia Corp NVDA.O and chip designer Qualcomm Inc. Chips are crucial for building everything from iPhones and washing machines to cars and fighter jets. One executive at a major Taiwanese tech firm said it started to produce daily geopolitical reports following the drills to assuage foreign clients that it was taking the issue seriously – rather than because it was concerned about the risk of war.
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Taiwan produces the vast majority of the world's most advanced chips and is home to Taiwan Semiconductor Manufacturing Company Ltd (TSMC) 2330.TW, the world's largest contract chipmaker and supplier to major companies like Apple Inc APPL.O, U.S. chipmaker Nvidia Corp NVDA.O and chip designer Qualcomm Inc. Chips are crucial for building everything from iPhones and washing machines to cars and fighter jets. One chip executive at a large foreign firm with operations in Taiwan said his company was asked about its business continuity plans by its customers and had in turn asked their suppliers in Taiwan the same questions. Kung Ming-hsin, minister of Taiwan's National Development Council, told reporters last month that major chip companies, including foreign ones, will invest around $210 billion in Taiwan over the next five years on advanced manufacturing.
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By Sarah Wu TAIPEI, Oct 7 (Reuters) - Chinese missiles flying over Taiwan and naval drills in the Strait in August that simulated a blockade by China have jolted the semiconductor industry into contemplating what once seemed a remote possibility: war over the major chip-producing island. One chip executive at a large foreign firm with operations in Taiwan said his company was asked about its business continuity plans by its customers and had in turn asked their suppliers in Taiwan the same questions. the executive said.
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18999.0
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2022-10-06 00:00:00 UTC
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In Apple's shadow, Google takes new route to face recognition on Pixel phones
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AAPL
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https://www.nasdaq.com/articles/in-apples-shadow-google-takes-new-route-to-face-recognition-on-pixel-phones
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nan
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nan
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By Paresh Dave
Oct 6 (Reuters) - Facial recognition returned to the latest Google Pixel phones on Thursday after a short hiatus due to challenges on cost and performance, according to three former employees at the Alphabet Inc GOOGL.O unit knowledgeable about the efforts.
The feature on the new Pixel 7 is not as good Apple Inc's AAPL.O Face ID unlocking mechanism, as it can struggle in low light and is more vulnerable to being spoofed. In addition, Google has said it is not secure enough to enable signing into apps or making payments.
The return comes after Google became stricter about launching products with facial recognition, in part due to questions about its performance on darker skin. The company took time to review its approach to training and testing facial recognition since the previous Pixel with the capability launched in 2019, one of the sources said.
Google declined to comment on several specific questions about its history with face unlock. It said generally, "Thanks to advanced machine learning models for face recognition, Pixel 7 and Pixel 7 Pro feature Face Unlock, but we’re doing it a little differently." It added, "We achieve good facial accuracy performance with the front-facing camera."
Google's pursuit of face unlock for Android smartphones spans at least a decade, but it came under greater pressure when Apple released Face ID in September 2017, the sources said.
To that point, Google struggled to devise a system that both performed quickly and was impervious to spoofing, or the use of photos or hyper-realistic costumes to fool someone else's phone into unlocking, one of the sources said. Engineers toyed with requiring a smile or a blink - proving a person's "liveness" - to combat spoofing but it was awkward and slow, the source said.
Another source noted that after the arrival of Apple's Face ID, which uses a depth-sensing and infrared camera called TrueDepth to map a face, Google executives signed off on a comparable technology. Google's Pixel 4, released in 2019, called its infrared depth-sensing setup uDepth.
It performed well, including in dark conditions, with no more than a 1-in-50,000 chance that it would unlock a phone for an unauthorized face, according to Google.
But the gear was expensive. And while Apple sells 240 million iPhones annually, Google has topped out at a few million, preventing it from buying parts at the volume discounts Apple does.
Google dropped uDepth in the Pixel 5 in 2020 due to costs, the sources said.
Face masking because of the pandemic gave Google reason to exclude the feature from last year's Pixel 6 and additional research time, two sources said.
Face unlock on the new phones relies on a typical front camera. But unlike the previous system, it cannot securely unlock apps and payments because Google says spoofing chances - such as by holding up a user's photo - are greater than 20%, above the 7% threshold it requires to be considered most "secure."
Low light and sunglasses also can cause trouble, Google says, noting fingerprint unlock remains an alternative.
(Reporting by Paresh Dave; Editing by Kenneth Li and Leslie Adler)
((paresh.dave@thomsonreuters.com; 415-565-1302;))
The views and 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 feature on the new Pixel 7 is not as good Apple Inc's AAPL.O Face ID unlocking mechanism, as it can struggle in low light and is more vulnerable to being spoofed. By Paresh Dave Oct 6 (Reuters) - Facial recognition returned to the latest Google Pixel phones on Thursday after a short hiatus due to challenges on cost and performance, according to three former employees at the Alphabet Inc GOOGL.O unit knowledgeable about the efforts. To that point, Google struggled to devise a system that both performed quickly and was impervious to spoofing, or the use of photos or hyper-realistic costumes to fool someone else's phone into unlocking, one of the sources said.
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The feature on the new Pixel 7 is not as good Apple Inc's AAPL.O Face ID unlocking mechanism, as it can struggle in low light and is more vulnerable to being spoofed. By Paresh Dave Oct 6 (Reuters) - Facial recognition returned to the latest Google Pixel phones on Thursday after a short hiatus due to challenges on cost and performance, according to three former employees at the Alphabet Inc GOOGL.O unit knowledgeable about the efforts. It said generally, "Thanks to advanced machine learning models for face recognition, Pixel 7 and Pixel 7 Pro feature Face Unlock, but we’re doing it a little differently."
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The feature on the new Pixel 7 is not as good Apple Inc's AAPL.O Face ID unlocking mechanism, as it can struggle in low light and is more vulnerable to being spoofed. It said generally, "Thanks to advanced machine learning models for face recognition, Pixel 7 and Pixel 7 Pro feature Face Unlock, but we’re doing it a little differently." Google's pursuit of face unlock for Android smartphones spans at least a decade, but it came under greater pressure when Apple released Face ID in September 2017, the sources said.
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The feature on the new Pixel 7 is not as good Apple Inc's AAPL.O Face ID unlocking mechanism, as it can struggle in low light and is more vulnerable to being spoofed. The return comes after Google became stricter about launching products with facial recognition, in part due to questions about its performance on darker skin. Face unlock on the new phones relies on a typical front camera.
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