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19200.0
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2022-09-26 00:00:00 UTC
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S.Korean shares recoup early losses, won strengthens
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AAPL
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https://www.nasdaq.com/articles/s.korean-shares-recoup-early-losses-won-strengthens
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nan
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nan
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*
KOSPI flat, foreigners net sellers
*
Korean won strengthens against dollar
*
South Korea benchmark bond yield inches down
SEOUL, Sept 27 (Reuters) - Round-up of South Korean financial markets:
** South Korean shares erased early losses on Tuesday as investors snapped up beaten-down stocks after four straight sessions of sharp falls. The Korean won strengthened, while the benchmark bond yield inched down.
** The benchmark KOSPI was up 2.27 points, or 0.10%, at 2,223.21, as of 0113 GMT, after falling as much as 0.73% earlier in the session. The index dropped 3% on Monday, hitting its lowest since late July 2020.
** "The index tried to rebound after extending losses in early trade on forced selling of retail investors' leveraged holdings," said Na Jeong-hwan, an analyst at Cape Investment and Securities.
** Among heavyweights, technology giant Samsung Electronics rose 0.19%, peer SK Hynix fell 0.85%, and battery maker LG Energy Solution gained 0.22%. Automakers Hyundai Motor and Kia Corp gained 0.82% and 1.20%, respectively.
** Daewoo Shipbuilding and Marine Engineering slumped 15.43% after a 13.4% jump in the previous session. The shipbuilder signed a tentative agreement on Monday for Hanwha Group to invest 2 trillion won ($1.4 billion) in return for a 49.3% stake and management rights in the shipbuilder.
** LG Innotek , a camera part supplier for Apple iPhone, dropped 6.01% and was facing its biggest daily loss since mid-January.
** Foreigners were net sellers of shares worth 120.1 billion won ($84.14 million) on the main board.
** The won was quoted at 1,427.5 per dollar on the onshore settlement platform , 0.27% higher than its previous close.
** In offshore trading, the won was quoted up 0.2% at 1,426.9 per dollar, while in non-deliverable forward trading its one-month contract was quoted at 1,425.6.
** In money and debt markets, December futures on three-year treasury bonds rose 0.29 point to 101.04.
** The most liquid 3-year Korean treasury bond yield was flat at 4.463%, while the benchmark 10-year yield fell by 0.2 basis point to 4.300%. ($1 = 1,427.3300 won) (Reporting by Jihoon Lee; Editing by Subhranshu Sahu) ((jihoon.lee@thomsonreuters.com;)) Keywords: SOUTHKOREA MARKETS/MIDDAY
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
** "The index tried to rebound after extending losses in early trade on forced selling of retail investors' leveraged holdings," said Na Jeong-hwan, an analyst at Cape Investment and Securities. ** Among heavyweights, technology giant Samsung Electronics rose 0.19%, peer SK Hynix fell 0.85%, and battery maker LG Energy Solution gained 0.22%. ** LG Innotek , a camera part supplier for Apple iPhone, dropped 6.01% and was facing its biggest daily loss since mid-January.
|
* KOSPI flat, foreigners net sellers * Korean won strengthens against dollar * South Korea benchmark bond yield inches down SEOUL, Sept 27 (Reuters) - Round-up of South Korean financial markets: ** South Korean shares erased early losses on Tuesday as investors snapped up beaten-down stocks after four straight sessions of sharp falls. The Korean won strengthened, while the benchmark bond yield inched down. ** The most liquid 3-year Korean treasury bond yield was flat at 4.463%, while the benchmark 10-year yield fell by 0.2 basis point to 4.300%.
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* KOSPI flat, foreigners net sellers * Korean won strengthens against dollar * South Korea benchmark bond yield inches down SEOUL, Sept 27 (Reuters) - Round-up of South Korean financial markets: ** South Korean shares erased early losses on Tuesday as investors snapped up beaten-down stocks after four straight sessions of sharp falls. The shipbuilder signed a tentative agreement on Monday for Hanwha Group to invest 2 trillion won ($1.4 billion) in return for a 49.3% stake and management rights in the shipbuilder. ** The most liquid 3-year Korean treasury bond yield was flat at 4.463%, while the benchmark 10-year yield fell by 0.2 basis point to 4.300%.
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* KOSPI flat, foreigners net sellers * Korean won strengthens against dollar * South Korea benchmark bond yield inches down SEOUL, Sept 27 (Reuters) - Round-up of South Korean financial markets: ** South Korean shares erased early losses on Tuesday as investors snapped up beaten-down stocks after four straight sessions of sharp falls. The index dropped 3% on Monday, hitting its lowest since late July 2020. ** The most liquid 3-year Korean treasury bond yield was flat at 4.463%, while the benchmark 10-year yield fell by 0.2 basis point to 4.300%.
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19201.0
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2022-09-26 00:00:00 UTC
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US STOCKS-Wall Street extends declines on recession worries
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-extends-declines-on-recession-worries
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nan
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nan
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By Shreyashi Sanyal
Sept 26 (Reuters) - Wall Street's main indexes extended declines on Monday as investors continued to fret about the Federal Reserve's aggressive policy tightening and its impact on the U.S. economy.
The last two weeks have been rough for U.S. stocks, with the Dow Jones Industrial Average .DJI coming within spitting distance of a bear market in the previous session, after the Federal Reserve signaled that high interest rates could last through 2023 on Wednesday.
The S&P 500 index .SPX has shed almost all of its gains made in the summer and is hovering near its mid-June closing low of 3,666 hit on Friday.
The morning session kicked off with some hope of a rebound after the Nasdaq index .IXIC rose as much as 1.4%, only to edge lower as a bounce in growth stocks proved short-lived.
Gains in sectors housing megacap growth companies, including technology .SPLRCT, consumer discretionary .SPLRCD and communication services .SPLRCL, petered out by early afternoon, with Apple Inc AAPL.O, Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O and Tesla Inc TSLA.O only up between 0.3% and 0.9%.
"Bargain hunters tend to step in when markets hit year-to-date lows and that will typically drive those sorts of bounces," said Randy Frederick, managing director of trading and derivatives for Charles Schwab in Austin, Texas.
"Obviously, there are concerns about continued tightening of the Fed policy, the next rate hike doesn't happen till early November, but it's a virtual certainty that it will happen."
Trading sentiment was also hurt by dramatic moves in the global forex market as the sterling GBP=D3 hit an all-time low on worries that the new British government's fiscal plan threatened to stretch the country's finances to their limits. MKTS/GLOB
That also added an extra layer of volatility to markets worried about a global recession amid soaring prices. The CBOE Volatility index .VIX, hovered near three month highs
At 12:41 p.m. ET the Dow Jones Industrial Average was down 314.77 points, or 1.06%, at 29,275.64, the S&P 500 was down 36.67 points, or 0.99%, at 3,656.56 and the Nasdaq Composite was down 57.06 points, or 0.53%, at 10,810.87.
Shares of casino operators Wynn Resorts WYNN.O, Las Vegas Sands Corp LVS.N and Melco Resorts & Entertainment MLCO.O jumped between 12.2% and 25.1% after Macau planned to open to mainland Chinese tour groups in November for the first time in almost three years.
Declining issues outnumbered advancers for a 4.43-to-1 ratio on the NYSE and for a 2.24-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week high and 87 new lows, while the Nasdaq recorded 12 new highs and 424 new lows.
(Reporting by Shreyashi Sanyal and Ankika Biswas in Bengaluru; Editing by Anil D'Silva and Shounak Dasgupta)
((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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Gains in sectors housing megacap growth companies, including technology .SPLRCT, consumer discretionary .SPLRCD and communication services .SPLRCL, petered out by early afternoon, with Apple Inc AAPL.O, Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O and Tesla Inc TSLA.O only up between 0.3% and 0.9%. By Shreyashi Sanyal Sept 26 (Reuters) - Wall Street's main indexes extended declines on Monday as investors continued to fret about the Federal Reserve's aggressive policy tightening and its impact on the U.S. economy. "Bargain hunters tend to step in when markets hit year-to-date lows and that will typically drive those sorts of bounces," said Randy Frederick, managing director of trading and derivatives for Charles Schwab in Austin, Texas.
|
Gains in sectors housing megacap growth companies, including technology .SPLRCT, consumer discretionary .SPLRCD and communication services .SPLRCL, petered out by early afternoon, with Apple Inc AAPL.O, Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O and Tesla Inc TSLA.O only up between 0.3% and 0.9%. The last two weeks have been rough for U.S. stocks, with the Dow Jones Industrial Average .DJI coming within spitting distance of a bear market in the previous session, after the Federal Reserve signaled that high interest rates could last through 2023 on Wednesday. ET the Dow Jones Industrial Average was down 314.77 points, or 1.06%, at 29,275.64, the S&P 500 was down 36.67 points, or 0.99%, at 3,656.56 and the Nasdaq Composite was down 57.06 points, or 0.53%, at 10,810.87.
|
Gains in sectors housing megacap growth companies, including technology .SPLRCT, consumer discretionary .SPLRCD and communication services .SPLRCL, petered out by early afternoon, with Apple Inc AAPL.O, Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O and Tesla Inc TSLA.O only up between 0.3% and 0.9%. The last two weeks have been rough for U.S. stocks, with the Dow Jones Industrial Average .DJI coming within spitting distance of a bear market in the previous session, after the Federal Reserve signaled that high interest rates could last through 2023 on Wednesday. Trading sentiment was also hurt by dramatic moves in the global forex market as the sterling GBP=D3 hit an all-time low on worries that the new British government's fiscal plan threatened to stretch the country's finances to their limits.
|
Gains in sectors housing megacap growth companies, including technology .SPLRCT, consumer discretionary .SPLRCD and communication services .SPLRCL, petered out by early afternoon, with Apple Inc AAPL.O, Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O and Tesla Inc TSLA.O only up between 0.3% and 0.9%. By Shreyashi Sanyal Sept 26 (Reuters) - Wall Street's main indexes extended declines on Monday as investors continued to fret about the Federal Reserve's aggressive policy tightening and its impact on the U.S. economy. MKTS/GLOB That also added an extra layer of volatility to markets worried about a global recession amid soaring prices.
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19202.0
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2022-09-26 00:00:00 UTC
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2 Growth Stocks Down 14% to 28% to Buy and Hold Forever
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AAPL
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https://www.nasdaq.com/articles/2-growth-stocks-down-14-to-28-to-buy-and-hold-forever
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nan
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nan
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You're not alone if you're in the red in the stock market this year. Losses have piled up as equities have had about as bad a year as we've seen in the past decade. However, the best way to erase these losses isn't to sell stocks. Rather, it is to hold on for dear life.
Quality stocks and a long time horizon never fail to make investors richer. Let's examine two stocks worth keeping in this challenging market and beyond: Abbott Laboratories (NYSE: ABT) and Apple (NASDAQ: AAPL). These longtime winners can still deliver market-beating returns, despite being down this year.
ABT data by YCharts.
1. Abbott Laboratories
Abbott Laboratories focuses on medical devices, although it has a diversified business with multiple segments that allow it to navigate difficult times. For instance, when the company's medical devices segment took a hit during the pandemic, its diagnostics unit picked up the slack. The company developed and marketed several successful coronavirus diagnostics tests.
When Abbott's nutrition segment was under the weather earlier this year -- specifically, its infant formula products -- the rest of its business still managed a solid performance. Still, Abbott's best long-term prospects arguably lie within medical devices. One key product it can count on is the FreeStyle Libre, a continuous glucose monitoring (CGM) system that helps diabetes patients track their blood glucose levels.
Abbott Laboratories continues to show the benefits of this innovative device. In a recent study with type-2 diabetes patients on once-daily insulin therapy, the FreeStyle Libre reduced the number of hospitalizations associated with acute diabetes events by 67%. The prevalence of diabetes is on the rise. Devices like the FreeStyle Libre that improve the health outcomes of diabetes patients will be in even higher demand in the years to come.
Abbott Laboratories boasts many other devices that could help spearhead growth. Earlier this month, it reported encouraging results from a study for its Amplatzer Piccolo Occluder, a device that treats a heart defect in infants. In another encouraging result, Abbott's HeartMate 3 heart pump recently proved able to extend the life of advanced heart failure patients by at least five years.
Abbott Laboratories has a long history of developing innovative products, typically protected by patents. The healthcare company has built a solid reputation as one of the top medical device players. That grants Abbott a strong and almost impenetrable competitive edge -- a necessary condition for a corporation to be successful over several decades.
That's why getting in on Abbott Laboratories while its shares are down would be a great move.
2. Apple
Apple needs no introduction. The company boasts one of the most valuable brands in the world, which grants it solid name recognition and, of course, a competitive edge. But Apple has built this reputation for a reason; the company's products, particularly its iPhones, remain some of the best around.
Apple recently unveiled a new set of products, including various versions of the iPhone 14. And early data strongly suggests that pre-orders for this new device are robust, coming ahead of what many had predicted. Consider that we are still dealing with challenging economic conditions. Does anyone really need a new iPhone?
The fact that Apple's latest devices are attracting more attention than initially predicted in this environment is impressive -- and it is a testament to the company's brand and customer loyalty.
Detractors have been preaching the iPhone's fall from grace for several years. It is true that it no longer generates the buzz it did in the late 2000s. Still, the prophecies of doom have yet to pass. And whenever they do actualize (likely not anytime soon, in my view), Apple will be ready.
The company's services segment, including iCloud, Apple Music, and Apple TV+, continues to grow. As Apple expands its installed base of customers by selling more devices to new users, its ecosystem will become even stronger. The tech giant's services segment also carries higher margins, and that's obviously good for the bottom line.
The lasting dominance of Apple's hardware products, particularly the iPhone, its booming services unit, and the company's solid moat should help it deliver solid returns for a long time, even with a market cap already above $2 trillion.
10 stocks we like better than Abbott Laboratories
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Prosper Junior Bakiny 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.
|
Let's examine two stocks worth keeping in this challenging market and beyond: Abbott Laboratories (NYSE: ABT) and Apple (NASDAQ: AAPL). When Abbott's nutrition segment was under the weather earlier this year -- specifically, its infant formula products -- the rest of its business still managed a solid performance. Earlier this month, it reported encouraging results from a study for its Amplatzer Piccolo Occluder, a device that treats a heart defect in infants.
|
Let's examine two stocks worth keeping in this challenging market and beyond: Abbott Laboratories (NYSE: ABT) and Apple (NASDAQ: AAPL). Abbott Laboratories Abbott Laboratories focuses on medical devices, although it has a diversified business with multiple segments that allow it to navigate difficult times. The company's services segment, including iCloud, Apple Music, and Apple TV+, continues to grow.
|
Let's examine two stocks worth keeping in this challenging market and beyond: Abbott Laboratories (NYSE: ABT) and Apple (NASDAQ: AAPL). Abbott Laboratories Abbott Laboratories focuses on medical devices, although it has a diversified business with multiple segments that allow it to navigate difficult times. The lasting dominance of Apple's hardware products, particularly the iPhone, its booming services unit, and the company's solid moat should help it deliver solid returns for a long time, even with a market cap already above $2 trillion.
|
Let's examine two stocks worth keeping in this challenging market and beyond: Abbott Laboratories (NYSE: ABT) and Apple (NASDAQ: AAPL). Abbott Laboratories Abbott Laboratories focuses on medical devices, although it has a diversified business with multiple segments that allow it to navigate difficult times. The lasting dominance of Apple's hardware products, particularly the iPhone, its booming services unit, and the company's solid moat should help it deliver solid returns for a long time, even with a market cap already above $2 trillion.
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19203.0
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2022-09-26 00:00:00 UTC
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Apple says it will manufacture iPhone 14 in India
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AAPL
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https://www.nasdaq.com/articles/apple-says-it-will-manufacture-iphone-14-in-india
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nan
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nan
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Adds Apple comments, background
NEW DELHI, Sept 26 (Reuters) - Apple Inc AAPL.O said on Monday it will manufacture its latest iPhone 14 in India, as the tech giant moves some of its production away from China.
The company launched the flagship iPhone 14 at an event earlier this month, where it focused on safety upgrades rather than flashy new technical specifications, with the exception of a new adventure-focused watch.
"The new iPhone 14 lineup introduces groundbreaking new technologies and important safety capabilities. We're excited to be manufacturing iPhone 14 in India," Apple said in a statement.
Analysts at J.P.Morgan expect Apple to move about 5% of iPhone 14 production from late 2022 to India, which is the world's second-biggest smartphone market after China.
Apple could make one out of four iPhones in India by 2025, JPM analysts said in a note last week.
(Reporting by Sneha Bhowmik in Bengaluru; Writing by Tanvi Mehta; Editing by Muralikumar Anantharaman)
((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.
|
Adds Apple comments, background NEW DELHI, Sept 26 (Reuters) - Apple Inc AAPL.O said on Monday it will manufacture its latest iPhone 14 in India, as the tech giant moves some of its production away from China. The company launched the flagship iPhone 14 at an event earlier this month, where it focused on safety upgrades rather than flashy new technical specifications, with the exception of a new adventure-focused watch. Analysts at J.P.Morgan expect Apple to move about 5% of iPhone 14 production from late 2022 to India, which is the world's second-biggest smartphone market after China.
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Adds Apple comments, background NEW DELHI, Sept 26 (Reuters) - Apple Inc AAPL.O said on Monday it will manufacture its latest iPhone 14 in India, as the tech giant moves some of its production away from China. We're excited to be manufacturing iPhone 14 in India," Apple said in a statement. Analysts at J.P.Morgan expect Apple to move about 5% of iPhone 14 production from late 2022 to India, which is the world's second-biggest smartphone market after China.
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Adds Apple comments, background NEW DELHI, Sept 26 (Reuters) - Apple Inc AAPL.O said on Monday it will manufacture its latest iPhone 14 in India, as the tech giant moves some of its production away from China. Analysts at J.P.Morgan expect Apple to move about 5% of iPhone 14 production from late 2022 to India, which is the world's second-biggest smartphone market after China. (Reporting by Sneha Bhowmik in Bengaluru; Writing by Tanvi Mehta; Editing by Muralikumar Anantharaman) ((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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Adds Apple comments, background NEW DELHI, Sept 26 (Reuters) - Apple Inc AAPL.O said on Monday it will manufacture its latest iPhone 14 in India, as the tech giant moves some of its production away from China. The company launched the flagship iPhone 14 at an event earlier this month, where it focused on safety upgrades rather than flashy new technical specifications, with the exception of a new adventure-focused watch. "The new iPhone 14 lineup introduces groundbreaking new technologies and important safety capabilities.
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19204.0
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2022-09-26 00:00:00 UTC
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Technology Sector Update for 09/26/2022: PLTK, INTC, AAPL, XLK, SOXX
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-09-26-2022%3A-pltk-intc-aapl-xlk-soxx
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nan
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nan
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Technology stocks were leaning lower premarket Monday. The Technology Select Sector SPDR ETF (XLK) fell 0.04% and the Semiconductor Sector Index Fund (SOXX) was recently slipping by 0.83%
Playtika Holding (PLTK) said it was extending the expiration date for a $600 million tender offering for up to 51.8 million of its outstanding shares by an extra week until one minute after 11:59 pm ET on Oct. 3. Playtika was recently up more than 4%.
Intel's (INTC) Mobileye subsidiary and Geely Holding Group said they have expanded their partnership for advanced driver-assistance systems and autonomous vehicle technology. Intel was marginally advancing recently.
Apple (AAPL) will start manufacturing the latest iPhone 14 in India, Reuters reported, citing a company statement. Apple was flat in recent market activity.
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) will start manufacturing the latest iPhone 14 in India, Reuters reported, citing a company statement. The Technology Select Sector SPDR ETF (XLK) fell 0.04% and the Semiconductor Sector Index Fund (SOXX) was recently slipping by 0.83% Playtika Holding (PLTK) said it was extending the expiration date for a $600 million tender offering for up to 51.8 million of its outstanding shares by an extra week until one minute after 11:59 pm ET on Oct. 3. Intel's (INTC) Mobileye subsidiary and Geely Holding Group said they have expanded their partnership for advanced driver-assistance systems and autonomous vehicle technology.
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Apple (AAPL) will start manufacturing the latest iPhone 14 in India, Reuters reported, citing a company statement. The Technology Select Sector SPDR ETF (XLK) fell 0.04% and the Semiconductor Sector Index Fund (SOXX) was recently slipping by 0.83% Playtika Holding (PLTK) said it was extending the expiration date for a $600 million tender offering for up to 51.8 million of its outstanding shares by an extra week until one minute after 11:59 pm ET on Oct. 3. Playtika was recently up more than 4%.
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Apple (AAPL) will start manufacturing the latest iPhone 14 in India, Reuters reported, citing a company statement. The Technology Select Sector SPDR ETF (XLK) fell 0.04% and the Semiconductor Sector Index Fund (SOXX) was recently slipping by 0.83% Playtika Holding (PLTK) said it was extending the expiration date for a $600 million tender offering for up to 51.8 million of its outstanding shares by an extra week until one minute after 11:59 pm ET on Oct. 3. Intel's (INTC) Mobileye subsidiary and Geely Holding Group said they have expanded their partnership for advanced driver-assistance systems and autonomous vehicle technology.
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Apple (AAPL) will start manufacturing the latest iPhone 14 in India, Reuters reported, citing a company statement. Technology stocks were leaning lower premarket Monday. Playtika was recently up more than 4%.
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19205.0
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2022-09-26 00:00:00 UTC
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EXCLUSIVE-India's push for home-grown navigation system jolts smartphone giants
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AAPL
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https://www.nasdaq.com/articles/exclusive-indias-push-for-home-grown-navigation-system-jolts-smartphone-giants
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nan
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nan
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By Munsif Vengattil and Aditya Kalra
NEW DELHI, Sept 26 (Reuters) - India is pushing tech giants to make smartphones compatible with its home-grown navigation system within months, worrying the likes of Samsung, Xiaomi and Apple who fear elevated costs and disruptions as the move requires hardware changes, according to two industry sources and government documents seen by Reuters.
In line with Prime Minister Narendra Modi's drive for self-reliance, India has over the years expanded the use of its regional navigation satellite system called NavIC (Navigation with Indian Constellation).
The Indian government wants to reduce dependence on foreign systems, including the widely used U.S. Global Positioning System (GPS), and says NavIC provides more accurate domestic navigation and that its use would benefit the economy.
China, the European Union, Japan and Russia have their own global or regional navigation systems to rival GPS. Operational since 2018, NavIC's uptake is minimal; it is mandated in public vehicle location trackers, for example.
But government and industry documents show Modi's administration and space officials want to broaden its use, and have this year pushed smartphone giants to make hardware changes to support NavIC, in addition to GPS, in new phones they will sell from January 2023.
In private meetings in August and September, representatives of Apple Inc AAPL.O, Xiaomi Corp 1810.HK, Samsung Electronics Co Ltd 005930.KS and others pushed back, citing worries that making phones NavIC-compliant would mean higher research and production costs.
The changes would also require more testing clearances, which with a Jan. 1 deadline would disrupt businesses and planned launches, according to two smartphone industry sources and documents.
Samsung declined comment on the meetings, while Apple and Xiaomi did not respond to requests for comment. India's IT ministry and the space agency ISRO that are both involved in the project also did not respond.
Samsung in particular voiced concerns during a Sept. 2 closed-door meeting between top smartphone players and chipmakers with Indian IT ministry and space agency officials, according to the meeting's minutes reviewed by Reuters.
Samsung's India executive Binu George warned of cost worries, telling officials that NavIC support requires not just new smartphone chipsets but also many other components.
"This would add to cost as it requires hardware design changes and additional investments to support devices specific to India. Further, the companies have already prepared for models to be launched in 2024," the minutes quoted him as saying.
George did not respond to a request for comment.
The smartphone players have sought time until 2025 to implement the changes, and a final decision is expected in coming days, a senior government official said.
The minutes said the Indian space agency will provide technical support for implementing NavIC in new smartphones, adding another meeting may be called.
INDIA VS OTHERS
India's space agency has said systems like GPS and Russia's GLONASS are operated by their countries' defence agencies, making it possible for civilian service to be interrupted.
NavIC, it says, is fully under the control of the Indian government, which one day wants to take it global like GPS.
India would not be the first country to push smartphone makers to add support for a native navigation system.
Russia has sought to mandate inclusion of its own GLONASS system in smartphones sold locally to reduce reliance on GPS, which Washington can switch off for civilian subscribers as it did during military operations in Iraq.
China's Beidou was completed in June 2020, and, though not mandated, the official Xinhua news agency has reported that in 2021, 94.5% of China-made smartphones had Beidou support.
Xiaomi and Samsung together account for 38% of the smartphone market in India, the world's second biggest after China. Apple's more expensive smartphones have a roughly 3% share in India, data from Hong Kong-based research firm Counterpoint shows.
Other Chinese manufactures making up a further 28% of the market were also present at the Sept. 2 meeting, government minutes show. China's Realme, which has a 16% market share, did not attend, and neither did smaller manufacturers.
Apple's website says it already supports the five global and regional navigation networks including GPS, GLONASS and BeiDou in current iPhones. The Indian directive could force it to add a new one.
A key concern for players like Samsung and Xiaomi remains the higher cost of so-called dual band chipsets they would need to support both GPS and NavIC, as these companies are leaders in the sub-$200 category in India's price-sensitive market, the smartphone industry sources said.
CHIPSET CONCERN
For procuring NavIC-compliant chipsets, most smartphone makers are reliant on global giants such as U.S. chip designer Qualcomm Inc QCOM.O and Taiwan's MediaTek Inc 2454.TW.
Voluntary use of such chipsets has been limited in India as phone manufacturers remain hesitant to add the extra components - and cost - required to make it work, said Parv Sharma, senior semiconducter analyst at Counterpoint.
India's space agency said that by mid-2021, only about two dozen mobile handset models in India had NavIC capability. In total there are around 300, Counterpoint has said.
During the Sept. 2 meeting, MediaTek said all of the company's chipsets for 5G phones would support NavIC, with "some cost enhancement" and additional hardware. MediaTek added that it expected about 80% of mobile phones to be 5G-enabled in two years.
MediaTek declined to comment on Reuters queries. Qualcomm in a statement said it has been working with the Indian space agency to enable NavIC on its chipsets for years and will continue to do so.
Another lobbying push from smartphone players is to convince the Indian government to make NavIC available on the so-called L1 satellite frequency which is already used by GPS, and not onlyon the L5 frequency used by New Delhi.
That, executives say, will make it easier for manufacturers to integrate NavIC in chipsets which mostly support the L1 band the world over, curbing separate development costs for NavIC.
Indian space agency ISRO told the Sept. 2 gathering that was not immediately possible, as NavIC was likely to be available on the L1 band only by 2024-25, after more satellite launches, the meeting's record shows.
(Reporting by Munsif Vengattil and Aditya Kalra in New Delhi; Editing by Mike Collett-White and Raju Gopalakrishnan)
((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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In private meetings in August and September, representatives of Apple Inc AAPL.O, Xiaomi Corp 1810.HK, Samsung Electronics Co Ltd 005930.KS and others pushed back, citing worries that making phones NavIC-compliant would mean higher research and production costs. But government and industry documents show Modi's administration and space officials want to broaden its use, and have this year pushed smartphone giants to make hardware changes to support NavIC, in addition to GPS, in new phones they will sell from January 2023. A key concern for players like Samsung and Xiaomi remains the higher cost of so-called dual band chipsets they would need to support both GPS and NavIC, as these companies are leaders in the sub-$200 category in India's price-sensitive market, the smartphone industry sources said.
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In private meetings in August and September, representatives of Apple Inc AAPL.O, Xiaomi Corp 1810.HK, Samsung Electronics Co Ltd 005930.KS and others pushed back, citing worries that making phones NavIC-compliant would mean higher research and production costs. By Munsif Vengattil and Aditya Kalra NEW DELHI, Sept 26 (Reuters) - India is pushing tech giants to make smartphones compatible with its home-grown navigation system within months, worrying the likes of Samsung, Xiaomi and Apple who fear elevated costs and disruptions as the move requires hardware changes, according to two industry sources and government documents seen by Reuters. In line with Prime Minister Narendra Modi's drive for self-reliance, India has over the years expanded the use of its regional navigation satellite system called NavIC (Navigation with Indian Constellation).
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In private meetings in August and September, representatives of Apple Inc AAPL.O, Xiaomi Corp 1810.HK, Samsung Electronics Co Ltd 005930.KS and others pushed back, citing worries that making phones NavIC-compliant would mean higher research and production costs. By Munsif Vengattil and Aditya Kalra NEW DELHI, Sept 26 (Reuters) - India is pushing tech giants to make smartphones compatible with its home-grown navigation system within months, worrying the likes of Samsung, Xiaomi and Apple who fear elevated costs and disruptions as the move requires hardware changes, according to two industry sources and government documents seen by Reuters. But government and industry documents show Modi's administration and space officials want to broaden its use, and have this year pushed smartphone giants to make hardware changes to support NavIC, in addition to GPS, in new phones they will sell from January 2023.
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In private meetings in August and September, representatives of Apple Inc AAPL.O, Xiaomi Corp 1810.HK, Samsung Electronics Co Ltd 005930.KS and others pushed back, citing worries that making phones NavIC-compliant would mean higher research and production costs. By Munsif Vengattil and Aditya Kalra NEW DELHI, Sept 26 (Reuters) - India is pushing tech giants to make smartphones compatible with its home-grown navigation system within months, worrying the likes of Samsung, Xiaomi and Apple who fear elevated costs and disruptions as the move requires hardware changes, according to two industry sources and government documents seen by Reuters. A key concern for players like Samsung and Xiaomi remains the higher cost of so-called dual band chipsets they would need to support both GPS and NavIC, as these companies are leaders in the sub-$200 category in India's price-sensitive market, the smartphone industry sources said.
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19206.0
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2022-09-26 00:00:00 UTC
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Stock Market Sell-Off: 2 Safe Tech Stocks to Buy Now and Hold Forever
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AAPL
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https://www.nasdaq.com/articles/stock-market-sell-off%3A-2-safe-tech-stocks-to-buy-now-and-hold-forever
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nan
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nan
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Stocks, broadly speaking, have been hammered in 2022. At this point, only two S&P 500 sectors are trading in the green year to date: energy and utilities. But the big gains for many energy sector players are unlikely to persist in the long run because of the ongoing shift away from fossil fuels, and utility stocks are considered defensive -- they don't typically generate the high growth returns many investors are looking for.
Those types of gains can often be found in the technology sector, but only a handful of companies in that group can be considered safe at times like this -- among them, Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL). They may not be immune to stock market turmoil, but they have time-tested business models with decades worth of success under their belts. That means when the economy bounces back, these companies will probably be among the first to recover to new highs. Not only might they help investors weather the present volatility, these two stocks also look like solid long-term bets for any portfolio.
1. Microsoft serves both consumers and businesses
Most people know Microsoft for its Windows operating system for computers and its Office 365 digital document suite. After all, billions of people worldwide use those products in both personal and business settings. But the company has expanded far beyond its roots and into areas its early backers probably never expected, amassing a $1.7 trillion market valuation in the process.
Having diverse revenue streams is extremely beneficial for a company during an economic downturn. At the moment, consumers are tightening their belts on discretionary spending due to high inflation and rising interest rates, so Microsoft is experiencing softer demand for hardware like its Surface laptops and Xbox gaming consoles. But its intelligent cloud segment is picking up the slack in a big way, and it now contributes the largest share of the company's revenue.
It's driven by the Azure platform, which helps businesses operate in the cloud. It offers solutions like data storage, virtual machines, and even cybersecurity. With more of the corporate world adopting this technology, the cloud is on track to become a $1.5 trillion annual opportunity as soon as 2030, according to one estimate by Grand View Research.
In Microsoft's fiscal 2022 (which ended June 30), Azure's revenue grew by an estimated 45% (based on a calculated average of reported quarterly growth reports because Microsoft doesn't release Azure's actual revenue) while the rest of its business expanded by just 18%.
But still, even though Azure is helping Microsoft weather the current unsteady economic conditions, growth from its other segments will likely kick into gear once interest rates level off. For that reason, it's important to zoom out and focus on the big picture because, as the below chart suggests, Microsoft has been a fantastic long-term investment.
With Microsoft stock currently down 30.6% from its all-time high, this might be a great chance to buy ahead of its next potential wave of growth.
2. Apple continues to innovate and diversify
Apple is the largest public company in the world with a valuation of $2.4 trillion, and it just launched its latest smartphone, the iPhone 14. As exciting as that is, it does highlight one of the company's (minor) weak spots. As a manufacturer of premium-priced consumer electronics, Apple is very exposed to the health of the economy. But it has been diversifying its revenue base over the last few years by offering a portfolio of services, and that segment of its business is carrying the company's growth at the moment.
Those services include Apple Pay, Apple TV+, Apple News, and Apple Music, to name just a few on an expanding list. The key benefit for investors is that the services segment delivers a gross profit margin of 71% compared to 52% for Apple's hardware products. Put simply, it's more profitable to deliver subscription-based services to customers than it is to sell them devices, and recurring revenue makes it easier to build scale.
In the company's fiscal 2022 third quarter (which ended June 25), its services segment accounted for 23.6% of the company's $82.9 billion in total revenue. During the prior-year period, it accounted for 21.4%, so it's gradually becoming a larger part of the overall business. In fiscal Q3, services grew by 12% compared to a 1% contraction in hardware revenue.
That said, the release of products like the iPhone 14 and the new, rugged Apple Watch Ultra will likely boost sales into the Christmas season. Both devices come with new feature sets. Of particular note, Apple did a major internal redesign on the iPhone 14 that made it easier for technicians outside the Apple ecosystem to repair them, a cost-saving option that could give the devices even greater appeal to consumers.
With Apple stock down 17.4% from its all-time high, this could be the chance some investors have been waiting for to buy shares at a discount.
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Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple 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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Those types of gains can often be found in the technology sector, but only a handful of companies in that group can be considered safe at times like this -- among them, Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL). But the big gains for many energy sector players are unlikely to persist in the long run because of the ongoing shift away from fossil fuels, and utility stocks are considered defensive -- they don't typically generate the high growth returns many investors are looking for. At the moment, consumers are tightening their belts on discretionary spending due to high inflation and rising interest rates, so Microsoft is experiencing softer demand for hardware like its Surface laptops and Xbox gaming consoles.
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Those types of gains can often be found in the technology sector, but only a handful of companies in that group can be considered safe at times like this -- among them, Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL). In Microsoft's fiscal 2022 (which ended June 30), Azure's revenue grew by an estimated 45% (based on a calculated average of reported quarterly growth reports because Microsoft doesn't release Azure's actual revenue) while the rest of its business expanded by just 18%. In the company's fiscal 2022 third quarter (which ended June 25), its services segment accounted for 23.6% of the company's $82.9 billion in total revenue.
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Those types of gains can often be found in the technology sector, but only a handful of companies in that group can be considered safe at times like this -- among them, Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL). In Microsoft's fiscal 2022 (which ended June 30), Azure's revenue grew by an estimated 45% (based on a calculated average of reported quarterly growth reports because Microsoft doesn't release Azure's actual revenue) while the rest of its business expanded by just 18%. But it has been diversifying its revenue base over the last few years by offering a portfolio of services, and that segment of its business is carrying the company's growth at the moment.
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Those types of gains can often be found in the technology sector, but only a handful of companies in that group can be considered safe at times like this -- among them, Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL). Apple continues to innovate and diversify Apple is the largest public company in the world with a valuation of $2.4 trillion, and it just launched its latest smartphone, the iPhone 14. But it has been diversifying its revenue base over the last few years by offering a portfolio of services, and that segment of its business is carrying the company's growth at the moment.
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19207.0
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2022-09-26 00:00:00 UTC
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3 Bargain Stocks You Can Buy Today and Hold Forever
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AAPL
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https://www.nasdaq.com/articles/3-bargain-stocks-you-can-buy-today-and-hold-forever-2
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nan
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nan
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There's a saying that investors get rich in bear markets -- they just don't know it at the time. We are definitely in a bear market today, with the S&P 500 down 19% and the Nasdaq Composite down 29% from all-time highs.
When the markets panic, even the most competitively advantaged companies with solid balance sheets and great long-term prospects get marked down to discounted prices. The following three stocks fit that bill today, making them great long-term buys right now.
1. Microsoft
Even the mighty Microsoft (NASDAQ: MSFT) has sold off hard this year, down some 30% from all-time highs. That's an even greater sell-off than it experienced during the COVID-19 decline!
Meanwhile, Microsoft just raised its dividend by 9.7% this week, and the stock now yields over 1.1%, along with even more shareholder returns via share repurchases.
With its trailing price-to-earnings (P/E) ratio now below 25, it's even cheaper than Apple (NASDAQ: AAPL). That's striking, especially since Microsoft is projected to grow its earnings at a higher rate than Apple in the years ahead.
That growth is a result of Microsoft's strong software franchises, including the widely used Office and Dynamic software suites, which are crucial for enterprises to function and likely have pricing power.
Meanwhile, Microsoft's Azure cloud infrastructure platform grew 40% last quarter, and appears to have many years of strong growth ahead of it; in fact, a recession might even accelerate cloud adoption among enterprises as they seek efficiencies.
Microsoft actually has a higher bond rating than that of the U.S. government, with a Standard & Poor's AAA rating. Considering Microsoft's earnings yield is higher than the yield on the 10-year Treasury note, with those earnings likely to grow by double digits annually over that period, it's a bargain stock that investors can buy and hold with confidence.
2. ASML Holding
Another all-star business with a beaten-down stock is ASML Holding (NASDAQ: ASML), which has seen its stock nearly cut in half from its highs. That's a huge drop for a company with a monopoly on extreme ultraviolet lithography (EUV) technology, the key enabler of leading-edge semiconductor production.
ASML still trades for an expensive-looking 33 times earnings, but that's a bit misleading. Because demand for its machines is currently exceeding ASML's own supply, it is shipping machines to customers before it fully certifies the machines. Final certification now happens at customer sites, which enables faster shipment and implementation.
However, ASML can't recognize the revenue until final certification, so its reported revenue and earnings are lower than what it's actually shipping -- but those earnings will be recognized in future periods.
Recently, management said demand was some 40% above its ability to supply. So even if a recession occurs, it likely wouldn't affect ASML's growth for the next couple of years.
Unlike some other semiconductor equipment companies that have a cyclical component to them, EUV demand should see consistent growth this decade. That's because chipmakers will always want to move to the next node and improve power and performance every year. Since that can't happen without EUV technology, more machines should be sold each year this decade.
ASML pays a similar 1.2% dividend to Microsoft, and is also consistently repurchasing stock. That should benefit shareholders over the long term, and why ASML can be bought today and held with confidence.
3. Farfetch
E-commerce stocks have been sold off big this year, as the pandemic tailwinds fade and rising interest rates have especially hurt growth stocks. European luxury goods e-commerce platform Farfetch (NYSE: FTCH) hasn't been spared, down a stunning 86% from its all-time highs. Along with the general market malaise, Farfetch has suffered even more: Its second-largest market, China, is in recession, and the company pulled out of Russia, its third-largest market.
But Farfetch just made a potentially game-changing deal with luxury giant Richemont (OTC: CFRUY), parent company of many of the world's biggest luxury brands, as well as owner of Farfetch competitor Yoox Net-a-Porter (YNAP).
As part of the deal, Richemont is exchanging almost half of YNAP to Farfetch in return for a 10% stake in Farfetch, with an option for Farfetch to buy all of YNAP in five years. Most importantly, Richemont will make all of its brands available on Farfetch's marketplace, and will also use Farfetch's back-end platform to power its luxury brands' websites. That could double Farfetch's business in short order.
When the owner of your largest competitor basically admits it can't compete, switches to your product, and then takes a stake in your company, that's probably a good sign.
Farfetch is riskier than Microsoft or ASML because it doesn't pay dividends and isn't profitable yet. However, it has good unit economics, with a 32% contribution margin (gross margin minus demand marketing costs), and management says it expects to be breakeven on the basis of earnings before interest, taxes, depreciation, and amortization (EBITDA) by the end of this year.
With just a low single-digit market share of the global luxury industry, Farfetch has a lot of growth ahead since it seems to be consolidating the online luxury market for itself. It's another great buy-and-hold stock in this bear market.
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Billy Duberstein has positions in ASML Holding, Apple, Farfetch Limited, and Microsoft and has the following options: short January 2023 $210 calls on Apple, short October 2022 $20 calls on Farfetch Limited, short October 2022 $200 puts on Microsoft, and short October 2022 $7.50 puts on Farfetch Limited. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends ASML Holding, Apple, Farfetch Limited, 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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With its trailing price-to-earnings (P/E) ratio now below 25, it's even cheaper than Apple (NASDAQ: AAPL). When the markets panic, even the most competitively advantaged companies with solid balance sheets and great long-term prospects get marked down to discounted prices. That's a huge drop for a company with a monopoly on extreme ultraviolet lithography (EUV) technology, the key enabler of leading-edge semiconductor production.
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With its trailing price-to-earnings (P/E) ratio now below 25, it's even cheaper than Apple (NASDAQ: AAPL). See the 10 stocks *Stock Advisor returns as of August 17, 2022 Billy Duberstein has positions in ASML Holding, Apple, Farfetch Limited, and Microsoft and has the following options: short January 2023 $210 calls on Apple, short October 2022 $20 calls on Farfetch Limited, short October 2022 $200 puts on Microsoft, and short October 2022 $7.50 puts on Farfetch Limited. The Motley Fool has positions in and recommends ASML Holding, Apple, Farfetch Limited, and Microsoft.
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With its trailing price-to-earnings (P/E) ratio now below 25, it's even cheaper than Apple (NASDAQ: AAPL). ASML Holding Another all-star business with a beaten-down stock is ASML Holding (NASDAQ: ASML), which has seen its stock nearly cut in half from its highs. As part of the deal, Richemont is exchanging almost half of YNAP to Farfetch in return for a 10% stake in Farfetch, with an option for Farfetch to buy all of YNAP in five years.
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With its trailing price-to-earnings (P/E) ratio now below 25, it's even cheaper than Apple (NASDAQ: AAPL). Since that can't happen without EUV technology, more machines should be sold each year this decade. Farfetch is riskier than Microsoft or ASML because it doesn't pay dividends and isn't profitable yet.
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19208.0
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2022-09-26 00:00:00 UTC
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Are Any of the FAANG Stocks Worth Buying?
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AAPL
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https://www.nasdaq.com/articles/are-any-of-the-faang-stocks-worth-buying
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nan
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nan
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For years, FAANG stocks (a phrase coined by CNBC's Jim Cramer) were among the best-performing large-cap companies. This acronym for these tech giants stands for:
Facebook, now Meta Platforms (NASDAQ: META)
Amazon (NASDAQ: AMZN)
Apple (NASDAQ: AAPL)
Netflix (NASDAQ: NFLX)
Google, now Alphabet (NASDAQ: GOOG)(NASDAQ:GOOGL)
While all five companies in the grouping are solid businesses, some of the stocks have performed much better than others recently, and only one has outperformed the broader market this year.
META data by YCharts.
With a performance like this, investors might wonder if some of these stocks now present as potential bargains or if are they down for good. Let's take a closer look and see if we can find an answer.
Shifting environments are dragging down two FAANG stocks
There's a clear gap between the worst two performers and the rest of the stocks. Netflix and Meta Platforms are having an abysmal year, and it's not for different reasons. Both companies are dealing with user-growth stagnation (or losses) and rising competition.
While Netflix used to be the gold standard for streaming services, it is now just one of many platforms consumers can choose from. Netflix also happens to be the most expensive, with the standard plan costing $15.49 per month. Those rising prices likely contributed to Netflix losing subscribers in both the first and second quarters this year.
As for Meta Platforms, it's facing heavy competition from ByteDance's TikTok. In the fourth quarter of 2021, Facebook's daily active users fell quarter over quarter for the first time on record (and in the first and second quarters, this metric barely increased above the no-growth threshold).
And because of privacy changes initiated by Apple's iOS platform, Meta's ads can no longer target its audience as precisely. As a result, customers aren't willing to pay as much for these ads, which caused Meta's average price per ad to decrease 14% year over year.
These two companies have had plenty of bad headlines and their stocks have been heavily sold off. However, their stocks are now pretty cheap, with Netflix and Meta Platforms trading at 21 and 12 times earnings, respectively, which are both all-time lows.
This low valuation might be warranted due to performance, but it also means any good news could kick-start these stocks. I don't think they are a buy yet, but investors need to keep an eye on this duo.
The lone outperformer
The only FAANG stock to outperform the market so far this year is Apple. While the other constituents have had their values slashed, Apple is holding at an expensive 25 times earnings, not far off the 30 times earnings it started 2022 at.
However, its time of reckoning could be coming. In its latest quarter (the third quarter of fiscal year 2022, ending June 25), Apple's revenue grew 1.9%, while its operating expenses grew much faster at 15%. This expense caused earnings per share (EPS) to fall from $1.31 last year to $1.20.
With lackluster performance like that, it's unlikely Apple will maintain its premium. Furthermore, Apple could see some sales pressure, with many consumers likely to tighten their spending habits due to economic uncertainty.
Because of Apple's overvalued state, I think investors should steer clear of this business until its valuation returns to a more average level.
Short-term headwinds, but still strong performance
That leaves Amazon and Alphabet, two companies facing challenging business environments, but with their long-term outlook remaining strong.
Amazon's commerce segment is facing difficult year-over-year comparisons due to last year's pandemic-influenced business. But Amazon's upcoming quarters won't have to deal with the tough year-over-year comparisons, so the stock could be primed to move higher. Unfortunately, it also hired too many people to handle the pandemic-related ordering surge, which caused its free-cash-flow profitability to evaporate. However, management is correcting its mistakes and should return to profitability in the third quarter.
As usual, its cloud computing business, Amazon Web Services (AWS), has continued its impressive growth. AWS is a bright spot in the company and is highly profitable.
Alphabet is primarily an advertising company: 80% of its revenue comes from this source. However, when the economy struggles, companies cut their ad budgets to save on expenses. This trend had a notable effect on Alphabet in the second quarter, but it still managed to grow revenue by 13% year over year and maintain an impressive 28% operating margin.
However, expenses also grew faster than revenue, which caused Alphabet's EPS to drop from $1.36 to $1.21 this year. Despite this, it trades at 18.6 times earnings, lower than the S&P 500's current 19.2 valuation.
Alphabet's revenue recovery should be impressive once the economy rebounds, as it has done over the past 15 years when the economy slows.
GOOG revenue (quarterly YoY growth). Data by YCharts.
I think both Amazon and Alphabet stocks are great buys here because they have been heavily sold off despite only experiencing short-term headwinds. Apple is just too expensive for almost no growth. Meta Platforms and Netflix are both interesting, but because of significant business changes, I've only got my eye on them and don't plan to buy right now.
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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 August 17, 2022
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keithen Drury has positions in Alphabet (C shares). The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., and Netflix. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This acronym for these tech giants stands for: Facebook, now Meta Platforms (NASDAQ: META) Amazon (NASDAQ: AMZN) Apple (NASDAQ: AAPL) Netflix (NASDAQ: NFLX) Google, now Alphabet (NASDAQ: GOOG)(NASDAQ:GOOGL) While all five companies in the grouping are solid businesses, some of the stocks have performed much better than others recently, and only one has outperformed the broader market this year. For years, FAANG stocks (a phrase coined by CNBC's Jim Cramer) were among the best-performing large-cap companies. But Amazon's upcoming quarters won't have to deal with the tough year-over-year comparisons, so the stock could be primed to move higher.
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This acronym for these tech giants stands for: Facebook, now Meta Platforms (NASDAQ: META) Amazon (NASDAQ: AMZN) Apple (NASDAQ: AAPL) Netflix (NASDAQ: NFLX) Google, now Alphabet (NASDAQ: GOOG)(NASDAQ:GOOGL) While all five companies in the grouping are solid businesses, some of the stocks have performed much better than others recently, and only one has outperformed the broader market this year. Short-term headwinds, but still strong performance That leaves Amazon and Alphabet, two companies facing challenging business environments, but with their long-term outlook remaining strong. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., and Netflix.
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This acronym for these tech giants stands for: Facebook, now Meta Platforms (NASDAQ: META) Amazon (NASDAQ: AMZN) Apple (NASDAQ: AAPL) Netflix (NASDAQ: NFLX) Google, now Alphabet (NASDAQ: GOOG)(NASDAQ:GOOGL) While all five companies in the grouping are solid businesses, some of the stocks have performed much better than others recently, and only one has outperformed the broader market this year. See the 10 stocks *Stock Advisor returns as of August 17, 2022 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., and Netflix.
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This acronym for these tech giants stands for: Facebook, now Meta Platforms (NASDAQ: META) Amazon (NASDAQ: AMZN) Apple (NASDAQ: AAPL) Netflix (NASDAQ: NFLX) Google, now Alphabet (NASDAQ: GOOG)(NASDAQ:GOOGL) While all five companies in the grouping are solid businesses, some of the stocks have performed much better than others recently, and only one has outperformed the broader market this year. Netflix and Meta Platforms are having an abysmal year, and it's not for different reasons. This trend had a notable effect on Alphabet in the second quarter, but it still managed to grow revenue by 13% year over year and maintain an impressive 28% operating margin.
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19209.0
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2022-09-26 00:00:00 UTC
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Is First Trust Rising Dividend Achievers ETF (RDVY) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-first-trust-rising-dividend-achievers-etf-rdvy-a-strong-etf-right-now-4
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nan
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nan
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Making its debut on 01/07/2014, smart beta exchange traded fund First Trust Rising Dividend Achievers ETF (RDVY) provides investors broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is managed by First Trust Advisors, and has been able to amass over $7.61 billion, which makes it one of the larger ETFs in the Style Box - Large Cap Value. Before fees and expenses, RDVY seeks to match the performance of the NASDAQ US Rising Dividend Achievers Index.
The NASDAQ US Rising Dividend Achievers Index is designed to provide access to a diversified portfolio of companies with a history of paying dividends.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Annual operating expenses for RDVY are 0.50%, which makes it on par with most peer products in the space.
RDVY's 12-month trailing dividend yield is 1.92%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 37.70% of the portfolio, the fund has heaviest allocation to the Financials sector; Information Technology and Healthcare round out the top three.
Looking at individual holdings, Williams-Sonoma, Inc. (WSM) accounts for about 2.46% of total assets, followed by Jefferies Financial Group Inc. (JEF) and Apple Inc. (AAPL).
The top 10 holdings account for about 22.08% of total assets under management.
Performance and Risk
The ETF has lost about -23.15% and is down about -16.71% so far this year and in the past one year (as of 09/26/2022), respectively. RDVY has traded between $39.75 and $52.79 during this last 52-week period.
RDVY has a beta of 1.13 and standard deviation of 28.87% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.
Alternatives
First Trust Rising Dividend Achievers ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $48.64 billion in assets, Vanguard Value ETF has $91.86 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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First Trust Rising Dividend Achievers ETF (RDVY): ETF Research Reports
Apple Inc. (AAPL): Free Stock Analysis Report
Jefferies Financial Group Inc. (JEF): Free Stock Analysis Report
WilliamsSonoma, Inc. (WSM): Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Williams-Sonoma, Inc. (WSM) accounts for about 2.46% of total assets, followed by Jefferies Financial Group Inc. (JEF) and Apple Inc. (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report Making its debut on 01/07/2014, smart beta exchange traded fund First Trust Rising Dividend Achievers ETF (RDVY) provides investors broad exposure to the Style Box - Large Cap Value category of the market.
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Looking at individual holdings, Williams-Sonoma, Inc. (WSM) accounts for about 2.46% of total assets, followed by Jefferies Financial Group Inc. (JEF) and Apple Inc. (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report Making its debut on 01/07/2014, smart beta exchange traded fund First Trust Rising Dividend Achievers ETF (RDVY) provides investors broad exposure to the Style Box - Large Cap Value category of the market.
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Looking at individual holdings, Williams-Sonoma, Inc. (WSM) accounts for about 2.46% of total assets, followed by Jefferies Financial Group Inc. (JEF) and Apple Inc. (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report Making its debut on 01/07/2014, smart beta exchange traded fund First Trust Rising Dividend Achievers ETF (RDVY) provides investors broad exposure to the Style Box - Large Cap Value category of the market.
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Looking at individual holdings, Williams-Sonoma, Inc. (WSM) accounts for about 2.46% of total assets, followed by Jefferies Financial Group Inc. (JEF) and Apple Inc. (AAPL). Apple Inc. (AAPL): Free Stock Analysis Report Making its debut on 01/07/2014, smart beta exchange traded fund First Trust Rising Dividend Achievers ETF (RDVY) provides investors broad exposure to the Style Box - Large Cap Value category of the market.
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19210.0
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2022-09-26 00:00:00 UTC
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This Little-Known Battery Technology Will Drive the EV Revolution
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AAPL
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https://www.nasdaq.com/articles/this-little-known-battery-technology-will-drive-the-ev-revolution
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
[Editor’s note: “This Little-Known EV Battery Technology Will Drive the EV Revolution” was previously published in August 2022. It has since been updated to include the most relevant information available.]
Source: Illus_man/Shutterstock
You may think you know of every battery innovation, especially as students of innovation. But a secret EV battery technology you’ve likely never heard of could be a key driving force in the next chapter of the Electric Vehicle Revolution.
Here’s the thing about EVs. Everyone wants to drive one these days. But for all the talk of falling prices, they’re still insanely expensive.
The battery I’m talking about will fix that problem.
This battery is the key to making a sub-$20,000 electric car, which could fundamentally accelerate the EV Revolution. Everyone who wants to drive an electric vehicle could finally afford one.
Indeed, this battery is a complete game-changer.
And it’s not just a concept or a science project stuck in research labs. This battery is already being used in cars today.
It’s ready to change the world in 2022, not 2023, 2024 or 2025. It’s ready to change the world right now.
I’m talking about LFP — lithium-iron phosphate batteries.
A Look Behind EV Stocks: Battery Chemistry 101
Your typical battery comprises three things: an anode, an electrolyte and a cathode. Batteries work by promoting the flow of ions from the anode, through the electrolyte and to the cathode when being used. When batteries charge, the ions flow back through the electrolyte to the anode.
EV batteries — which are most commonly lithium-ion batteries — work in the same fashion.
Lithium ions are stored in the anode. When the car is being driven, the lithium ions flow through the car battery’s electrolyte and into the cathode. When the car is being charged, those same lithium ions flow back from the cathode to the anode.
Considering this chemistry, we can easily see why a lot of resources are dedicated to cathode innovation. The cathode is where lithium ions flow when an EV is being driven. So, the better that cathode is at “absorbing” those lithium ions, the longer the battery will last and the longer the EV will drive.
Said differently, the absorption properties of the cathode determine the driving range of an EV. Higher cathode absorption leads to longer driving ranges. Lower cathode absorption leads to shorter driving ranges.
Therefore, one of the most critical problems in EV battery science is optimizing the cathode’s absorption properties. The best way to do that is to change the composition of various metals in the cathode.
Decades of research has seen every metal composition tested in the cathode. And it’s concluded that there are two types of dominant cathode compositions that produce the best types of lithium-ion batteries.
One of those compositions is talked about all the time. The other is seldomly mentioned. Yet, the underrated one holds the game-changing breakthrough that my analysis suggests is key to making a sub-$20,000 electric car.
The Two Major Types of EV Batteries
The two dominant types of lithium-ion battery chemistries are nickel manganese cobalt (NMC) and lithium iron phosphate (LFP) batteries.
The two are very similar. Both work by promoting the flow of lithium ions. Both have graphite anodes. And both have the same electrolyte solutions.
The difference between LFP and NMC batteries is in the cathode composition. NMC batteries use a combination of nickel, magnesium, and cobalt in the cathode. LFP cathodes are a mix of iron and phosphorous.
For various chemical engineering reasons, NMC batteries have higher absorption properties than LFP batteries. In short, NMC cathodes are better at absorbing lithium ions than LFP cathodes. And consequently, NMC batteries are significantly denser. Specifically, they’re about 30% more energy dense.
That basically means EVs with NMC batteries weigh less, can driver farther and recharge faster than EVs with LFP batteries. In short, when it comes to EVs, NMC batteries have higher performance qualities than LFPs.
For that reason, NMC batteries have become the gold standard in EVs. For years, driving ranges, recharge times, and car weight were huge limiting factors for EVs. So, companies like Tesla (TSLA) leveraged NMC batteries to solve those problems. Over 80% of all EV batteries today are NMC or NMC-related batteries. LFP batteries comprise less than 15% of total EV batteries today.
However, as you can see below, LFPs are expected to meaningfully expand EV battery market share over the next five years. Why?
NMC batteries have their own downfalls. And they’re being acutely challenged in today’s supply constrained, high-cost global economic environment.
As a result, LFP batteries — not NMCs — will be the big driver of the next wave of the EV Revolution. That has huge investment implications.
LFP Is Ready to Change the World
In short, NMC batteries are absurdly expensive. And in an inflationary environment, consumers are optimizing for costs over performance. As such, automakers are pivoting from NMC to LFP batteries.
The science here is pretty simple.
The “C” in NMC is cobalt, which is a rare Earth metal. By definition, there’s not much cobalt on the planet. Our research suggests there’s less than 10 million tons of cobalt in the world. And half of that is from the Congo. In many cases, retrieving cobalt requires expensive efforts, deforestation, habitat destabilization, and more. As a result, cobalt is absurdly expensive (more than $30,000 per ton). And it’s subject to volatile supply disruptions, which makes NMC batteries inherently expensive and supply constrained.
LFP batteries don’t have those problems.
The “F” in LFP batteries stands for iron. Unlike cobalt, iron is abundant. About 5% of the Earth’s crust is made of iron. There are 180 billion tons of iron on the planet. And while there are especially large concentrations in places like Australia, there is a bit of iron everywhere. As a result, iron prices are a small fraction of cobalt prices at just $90 per ton.
In other words, LFP batteries may have less energy density than NMCs. But they’re also way cheaper — about 40- to 50% less expensive.
The Affordability Factor
In 2018 and ’19, EVs were getting less than 200 miles of driving range per charge. There were very few charging stations on the roads. Inflation was below 2%. And consumers wanted high-performance EVs.
In 2022, the situation is completely different. Electric cars (even LFP-powered ones) are getting way more than 250 miles of driving range per charge. EV charging stations are everywhere. And inflation is running at nearly 10%.
In that world, consumers don’t really care about high-performance EVs. They want affordable ones.
LFP batteries are the key to cheap EVs.
That’s why nearly every major EV maker’s been exploring ways to use more LFP batteries in their EVs over the past year.
This isn’t to say LFP batteries will kill NMCs. But we’re now entering a new era of LFP and NMC co-existence. The former serves as the de facto battery for economic EVs, and the latter services the premium EV market.
The investment opportunity here is pretty simple.
When you look out at the big EV stocks today — Tesla, Lucid (LCID), Rivian (RIVN), etc. — they’re all making premium EVs. But the next wave of the EV Revolution will be driven by cheap EVs. Who is going to make all those affordable cars?
The answer: Find the company mastering LFP battery technology.
The Final Word on a Breakthrough for EV Stocks
I believe the company that will master LFP battery technology and sell the most popular affordable electric car in the market hasn’t even made an EV yet. In fact, it hasn’t even announced an EV yet.
I’m talking about Apple (AAPL).
Yes, that Apple — the maker of the iPhone, iPad, Mac, and Apple Watch.
Apple has reportedly been working on an electric Apple Car for years now. The company has yet to announce anything official. But over the past two years, the rumor mill has substantially accelerated. Now many analysts, investors and enthusiasts feel like it’s a done deal that Apple will launch its EV by 2024.
Considering Apple’s success with nearly every product it’s launched in its 40-year history — and the amount of resources it has reportedly poured into this project — I think the odds are high that the Apple Car is a huge hit.
So, what’s the connection to LFP batteries?
Well, one of the rumors flying around the Apple Car is that Apple will use LFP batteries to power it. The company wants to make an EV that, like the iPhone, is cheap enough to be a ubiquity.
The only way to do that? LFP batteries.
That’s why I think the company that will drive the next leg of the EV Revolution is one that hasn’t even made an EV yet: Apple. And it’ll be the biggest reason why we go from ~10% EV penetration to 50%-plus.
That’s exciting news. But that’s not all…
I’ve discovered a tiny $3 stock that my analysis suggests could be the supplier of the most mission-critical piece of technology for the Apple Car.
If I’m right about the Apple Car being a huge hit, it could soar up to 40X from current levels.
If you think that’s something, then find out how you can buy the best stocks in the world right now for $500 or less.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
The post This Little-Known Battery Technology Will Drive the EV Revolution appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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I’m talking about Apple (AAPL). But a secret EV battery technology you’ve likely never heard of could be a key driving force in the next chapter of the Electric Vehicle Revolution. Yet, the underrated one holds the game-changing breakthrough that my analysis suggests is key to making a sub-$20,000 electric car.
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I’m talking about Apple (AAPL). Higher cathode absorption leads to longer driving ranges. The Two Major Types of EV Batteries The two dominant types of lithium-ion battery chemistries are nickel manganese cobalt (NMC) and lithium iron phosphate (LFP) batteries.
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I’m talking about Apple (AAPL). The Two Major Types of EV Batteries The two dominant types of lithium-ion battery chemistries are nickel manganese cobalt (NMC) and lithium iron phosphate (LFP) batteries. That basically means EVs with NMC batteries weigh less, can driver farther and recharge faster than EVs with LFP batteries.
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I’m talking about Apple (AAPL). The Final Word on a Breakthrough for EV Stocks I believe the company that will master LFP battery technology and sell the most popular affordable electric car in the market hasn’t even made an EV yet. Apple has reportedly been working on an electric Apple Car for years now.
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19211.0
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2022-09-26 00:00:00 UTC
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Pre-Market Most Active for Sep 26, 2022 : TQQQ, SQQQ, LVTX, TSLA, QQQ, KO, AMC, XPEV, AAPL, NIO, F, ATCO
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AAPL
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https://www.nasdaq.com/articles/pre-market-most-active-for-sep-26-2022-%3A-tqqq-sqqq-lvtx-tsla-qqq-ko-amc-xpev-aapl-nio-f
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nan
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nan
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The NASDAQ 100 Pre-Market Indicator is down -45.24 to 11,266. The total Pre-Market volume is currently 39,235,274 shares traded.
The following are the most active stocks for the pre-market session:
ProShares UltraPro QQQ (TQQQ) is -0.2399 at $21.07, with 7,056,696 shares traded., following a 52-week high recorded in prior regular session.
ProShares UltraPro Short QQQ (SQQQ) is +0.65 at $56.91, with 5,359,607 shares traded. This represents a 102.17% increase from its 52 Week Low.
LAVA Therapeutics N.V. (LVTX) is +2.8599 at $5.26, with 2,205,096 shares traded. As reported by Zacks, the current mean recommendation for LVTX is in the "strong buy range".
Tesla, Inc. (TSLA) is -4.06 at $271.27, with 1,226,221 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2022. The consensus EPS forecast is $0.91. TSLA's current last sale is 81.38% of the target price of $333.333.
Invesco QQQ Trust, Series 1 (QQQ) is -0.97 at $274.54, with 1,143,807 shares traded. This represents a 1.95% increase from its 52 Week Low.
Coca-Cola Company (The) (KO) is -0.27 at $58.33, with 1,056,255 shares traded. As reported by Zacks, the current mean recommendation for KO is in the "buy range".
AMC Entertainment Holdings, Inc. (AMC) is -0.29 at $7.70, with 686,629 shares traded. AMC's current last sale is 154% of the target price of $5.
XPeng Inc. (XPEV) is +0.51 at $14.22, with 669,415 shares traded. As reported by Zacks, the current mean recommendation for XPEV is in the "buy range".
Apple Inc. (AAPL) is -0.51 at $149.92, with 523,717 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
NIO Inc. (NIO) is +0.13 at $17.77, with 497,760 shares traded. As reported by Zacks, the current mean recommendation for NIO is in the "buy range".
Ford Motor Company (F) is -0.12 at $12.19, with 376,128 shares traded. F's current last sale is 71.71% of the target price of $17.
Atlas Corp. (ATCO) is +0.904 at $14.42, with 363,513 shares traded. ATCO's current last sale is 94.74% of the target price of $15.225.
The views and 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 -0.51 at $149.92, with 523,717 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". ProShares UltraPro QQQ (TQQQ) is -0.2399 at $21.07, with 7,056,696 shares traded., following a 52-week high recorded in prior regular session.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -0.51 at $149.92, with 523,717 shares traded. As reported by Zacks, the current mean recommendation for KO is in the "buy range".
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Apple Inc. (AAPL) is -0.51 at $149.92, with 523,717 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 39,235,274 shares traded.
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Apple Inc. (AAPL) is -0.51 at $149.92, with 523,717 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2022.
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19212.0
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2022-09-26 00:00:00 UTC
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US STOCKS-Wall Street eyes lower open on rate hike, recession worries
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-eyes-lower-open-on-rate-hike-recession-worries
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nan
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nan
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By Shreyashi Sanyal
Sept 26 (Reuters) - U.S. stock indexes headed for a lower open on Monday as investors worried that the Federal Reserve's aggressive push to curb inflation may tip the country's economy into recession.
At 8:32 a.m. ET, Dow e-minis 1YMcv1 were down 139 points, or 0.47%, S&P 500 e-minis EScv1 were down 21 points, or 0.57%, and Nasdaq 100 e-minis NQcv1 were down 51 points, or 0.45%.
The Fed's latest signal that high interest rates could last through 2023, sent the three major U.S. stock indexes tumbling between 4% and 5% last week, with the Dow Jones index .DJI coming within spitting distance of a bear market on Friday.
"The Fed seems to be alluding to the fact that they can raise rates, halt inflation from rising without creating a recession ... they were totally wrong the first time on inflation and unfortunately, they're going be wrong on avoiding a recession," Peter Cardillo, chief market economist at Spartan Capital Securities, said.
In premarket trading on Monday, cyclical stocks traded lower on worries that such sharp rate hikes could rattle the economy.
Boeing Co BA.N, Chevron Corp CVX.N, Caterpillar Inc CAT.N and JPMorgan Chase & Co JPM.N fell more than 1% each, while growth stocks including Apple Inc AAPL.O, Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O and Tesla Inc TSLA.O shed between 0.3% and 1.3%.
The benchmark S&P 500 index .SPX on Friday briefly dipped below its mid-June closing low of 3,666, erasing a sharp summer rebound in U.S. stocks, before paring losses and closing above that level.
The index will be seen testing its lowest level since late December 2020, if it continues to decline past the opening bell, a sign that Cardillo said could trigger another bout of selling as investors focus on the technical aspect of the market.
Sentiment across global markets was bleak after the sterling GBP=D3 briefly touched all-time lows earlier in the session on worries that the new British government's fiscal plan threatened to stretch the country's finances to their limits. MKTS/GLOB
In a bright spot, shares of casino operators Wynn Resorts WYNN.O, Las Vegas Sands Corp LVS.N and Melco Resorts & Entertainment MLCO.O jumped between 5.4% and 10.8% after Macau planned to open to mainland Chinese tour groups in November for the first time in almost three years.
The CBOE Volatility index .VIX, also commonly known as Wall Street's fear gauge, hovered near three month highs.
(Reporting by Shreyashi Sanyal and Ankika Biswas in Bengaluru; Editing by Anil D'Silva and Shounak Dasgupta)
((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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Boeing Co BA.N, Chevron Corp CVX.N, Caterpillar Inc CAT.N and JPMorgan Chase & Co JPM.N fell more than 1% each, while growth stocks including Apple Inc AAPL.O, Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O and Tesla Inc TSLA.O shed between 0.3% and 1.3%. By Shreyashi Sanyal Sept 26 (Reuters) - U.S. stock indexes headed for a lower open on Monday as investors worried that the Federal Reserve's aggressive push to curb inflation may tip the country's economy into recession. The index will be seen testing its lowest level since late December 2020, if it continues to decline past the opening bell, a sign that Cardillo said could trigger another bout of selling as investors focus on the technical aspect of the market.
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Boeing Co BA.N, Chevron Corp CVX.N, Caterpillar Inc CAT.N and JPMorgan Chase & Co JPM.N fell more than 1% each, while growth stocks including Apple Inc AAPL.O, Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O and Tesla Inc TSLA.O shed between 0.3% and 1.3%. By Shreyashi Sanyal Sept 26 (Reuters) - U.S. stock indexes headed for a lower open on Monday as investors worried that the Federal Reserve's aggressive push to curb inflation may tip the country's economy into recession. ET, Dow e-minis 1YMcv1 were down 139 points, or 0.47%, S&P 500 e-minis EScv1 were down 21 points, or 0.57%, and Nasdaq 100 e-minis NQcv1 were down 51 points, or 0.45%.
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Boeing Co BA.N, Chevron Corp CVX.N, Caterpillar Inc CAT.N and JPMorgan Chase & Co JPM.N fell more than 1% each, while growth stocks including Apple Inc AAPL.O, Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O and Tesla Inc TSLA.O shed between 0.3% and 1.3%. By Shreyashi Sanyal Sept 26 (Reuters) - U.S. stock indexes headed for a lower open on Monday as investors worried that the Federal Reserve's aggressive push to curb inflation may tip the country's economy into recession. The Fed's latest signal that high interest rates could last through 2023, sent the three major U.S. stock indexes tumbling between 4% and 5% last week, with the Dow Jones index .DJI coming within spitting distance of a bear market on Friday.
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Boeing Co BA.N, Chevron Corp CVX.N, Caterpillar Inc CAT.N and JPMorgan Chase & Co JPM.N fell more than 1% each, while growth stocks including Apple Inc AAPL.O, Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O and Tesla Inc TSLA.O shed between 0.3% and 1.3%. By Shreyashi Sanyal Sept 26 (Reuters) - U.S. stock indexes headed for a lower open on Monday as investors worried that the Federal Reserve's aggressive push to curb inflation may tip the country's economy into recession. ET, Dow e-minis 1YMcv1 were down 139 points, or 0.47%, S&P 500 e-minis EScv1 were down 21 points, or 0.57%, and Nasdaq 100 e-minis NQcv1 were down 51 points, or 0.45%.
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19213.0
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2022-09-26 00:00:00 UTC
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US STOCKS-Futures shackled by rate-hike, recession worries
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-shackled-by-rate-hike-recession-worries
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures down: Dow 0.76%, S&P 0.75%, Nasdaq 0.47%
Sept 26 (Reuters) - U.S. stock index futures fell on Monday, kicking off another week on softer footing, as investors worried that the Federal Reserve's aggressive push to curb inflation may tip the American economy into recession.
At 6:21 a.m. ET, Dow e-minis 1YMcv1 were down 225 points, or 0.76%, S&P 500 e-minis EScv1 were down 27.75 points, or 0.75%, and Nasdaq 100 e-minis NQcv1 were down 54 points, or 0.47%.
The Fed's latest signal that high interest rates could last through 2023, sent the three major U.S. stock indexes tumbling between 4% and 5% last week, with the Dow Jones Index .DJI coming within spitting distance of a bear market on Friday.
In premarket trading on Monday, cyclical stocks traded sharply lower on worries that such sharp rate hikes could rattle the economy.
Boeing Co BA.N, Chevron Corp CVX.N, Caterpillar Inc CAT.N and JPMorgan Chase & Co JPM.N fell more than 1% each, while growth stocks including Apple Inc AAPL.O, Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O and Tesla Inc TSLA.O shed between 0.4% and 0.5%.
The benchmark S&P 500 index .SPX on Friday briefly dipped below its mid-June closing low of 3,666, erasing a sharp summer rebound in U.S. stocks before paring losses and closing above that level.
"As the SPX tests its June lows, the question becomes is that alone good enough reason to buy?" said Jonathan Krinsky, chief market technician at BTIG.
"Given the acceleration higher in the dollar, global yields, and the breakdowns across global FX, it's hard to not have concerns about longer-term implications."
Sentiment across global markets was bleak after the sterling GBP=D3 briefly touched all-time lows earlier in the session on worries that the new British government's fiscal plan threatened to stretch the country's finances to their limits. MKTS/GLOB
In a bright spot, shares of casino operators Wynn Resorts WYNN.O, Las Vegas Sands Corp LVS.N and Melco Resorts & Entertainment MLCO.O jumped between 5.5% and 9.6% after Macau planned to open to mainland Chinese tour groups in November for the first time in almost three years.
(Reporting by Shreyashi Sanyal in Bengaluru; Editing by 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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Boeing Co BA.N, Chevron Corp CVX.N, Caterpillar Inc CAT.N and JPMorgan Chase & Co JPM.N fell more than 1% each, while growth stocks including Apple Inc AAPL.O, Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O and Tesla Inc TSLA.O shed between 0.4% and 0.5%. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures down: Dow 0.76%, S&P 0.75%, Nasdaq 0.47% Sept 26 (Reuters) - U.S. stock index futures fell on Monday, kicking off another week on softer footing, as investors worried that the Federal Reserve's aggressive push to curb inflation may tip the American economy into recession.
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Boeing Co BA.N, Chevron Corp CVX.N, Caterpillar Inc CAT.N and JPMorgan Chase & Co JPM.N fell more than 1% each, while growth stocks including Apple Inc AAPL.O, Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O and Tesla Inc TSLA.O shed between 0.4% and 0.5%. Futures down: Dow 0.76%, S&P 0.75%, Nasdaq 0.47% Sept 26 (Reuters) - U.S. stock index futures fell on Monday, kicking off another week on softer footing, as investors worried that the Federal Reserve's aggressive push to curb inflation may tip the American economy into recession. ET, Dow e-minis 1YMcv1 were down 225 points, or 0.76%, S&P 500 e-minis EScv1 were down 27.75 points, or 0.75%, and Nasdaq 100 e-minis NQcv1 were down 54 points, or 0.47%.
|
Boeing Co BA.N, Chevron Corp CVX.N, Caterpillar Inc CAT.N and JPMorgan Chase & Co JPM.N fell more than 1% each, while growth stocks including Apple Inc AAPL.O, Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O and Tesla Inc TSLA.O shed between 0.4% and 0.5%. Futures down: Dow 0.76%, S&P 0.75%, Nasdaq 0.47% Sept 26 (Reuters) - U.S. stock index futures fell on Monday, kicking off another week on softer footing, as investors worried that the Federal Reserve's aggressive push to curb inflation may tip the American economy into recession. The Fed's latest signal that high interest rates could last through 2023, sent the three major U.S. stock indexes tumbling between 4% and 5% last week, with the Dow Jones Index .DJI coming within spitting distance of a bear market on Friday.
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Boeing Co BA.N, Chevron Corp CVX.N, Caterpillar Inc CAT.N and JPMorgan Chase & Co JPM.N fell more than 1% each, while growth stocks including Apple Inc AAPL.O, Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O and Tesla Inc TSLA.O shed between 0.4% and 0.5%. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures down: Dow 0.76%, S&P 0.75%, Nasdaq 0.47% Sept 26 (Reuters) - U.S. stock index futures fell on Monday, kicking off another week on softer footing, as investors worried that the Federal Reserve's aggressive push to curb inflation may tip the American economy into recession.
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19214.0
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2022-09-26 00:00:00 UTC
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Key Factors to Note Ahead of TD SYNNEX's (SNX) Q3 Earnings
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AAPL
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https://www.nasdaq.com/articles/key-factors-to-note-ahead-of-td-synnexs-snx-q3-earnings
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nan
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TD SYNNEX SNX is scheduled to release third-quarter fiscal 2022 results on Sep 27.
TD SYNNEX was formerly known as SYNNEX Corporation. The company changed its name after the acquisition of Tech Data Corporation on Sep 1, 2021.
For the fiscal third quarter, the company expects revenues between $14.5 billion and $15.5 billion. The Zacks Consensus Estimate for quarterly revenues is pegged at $15.11 billion, indicating a whopping 190.2% increase from the prior-year period.
Moreover, SNX projects fiscal third-quarter non-GAAP earnings between $2.50 and $2.90 per share. The consensus mark of $2.75 for quarterly earnings suggests a year-over-year increase of approximately 28.5% from the year-ago quarter’s $2.14 per share.
The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.8%.
TD SYNNEX Corp. Price and EPS Surprise
TD SYNNEX Corp. price-eps-surprise | TD SYNNEX Corp. Quote
Factors to Consider
The increased demand for hardware and tools, which support hybrid working, is anticipated to have boosted TD SYNNEX’s revenues during the quarter under review. The growing hybrid working trend has been driving the sales of peripherals, software, communication, networking and consumer electronic products. This impressive demand trend is likely to have been conducive to SNX’s top line in the fiscal third quarter.
The increased usage of online and e-commerce services, along with the hybrid working trend, has been stoking the demand for cloud storage. Therefore, data center operators are enhancing their capacities to accommodate the demand spike for cloud services. This is likely to have aided TD SYNNEX’s data center servers and storage solution businesses in the fiscal third quarter.
Additionally, TD SYNNEX’s fiscal third-quarter performance is likely to have benefited from revenue contributions from the newly merged Tech Data Corporation business. A steady IT spending environment due to rapid digital transformation is anticipated to have boosted the top line.
However, the positive impact of the aforementioned factors might have been partially offset by prevailing supply-chain disruptions caused by the pandemic. Foreign-exchange headwinds are expected to have been an added concern.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for TD SYNNEX this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
TD SYNNEX has an Earnings ESP of 0.00% and carries a Zacks Rank of 3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Apple AAPL, Meta Platforms META and Lattice Semiconductor LSCC have the right combination of elements to post an earnings beat in their upcoming releases.
Apple is expected to report fourth-quarter fiscal 2022 results on Oct 27. The company carries a Zacks Rank #3 and has an Earnings ESP of +0.14% at present. Apple’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 5.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.25 per share, suggesting an improvement of 0.8% from the year-ago quarter’s earnings of $1.24. AAPL’s quarterly revenues are estimated to increase 5.7% year over year to $88.09 billion.
Meta Platforms carries a Zacks Rank #3 and has an Earnings ESP of +5.85%. The company is anticipated to report third-quarter 2022 results on Oct 24. Meta Platforms’ earnings surpassed the Zacks Consensus Estimate twice in the trailing four quarters while missing the same on two occasions, the average surprise being 0.8%.
The Zacks Consensus Estimate for META’s third-quarter earnings is pegged at $1.94 per share, indicating a year-over-year decline of 39.8%. The consensus mark for revenues stands at $27.51 billion, suggesting a year-over-year decrease of 5.2%.
Lattice sports a Zacks Rank #1 and has an Earnings ESP of +0.46%. The company is anticipated to report its third-quarter 2022 results on Nov 1. Lattice’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 13.1%.
The Zacks Consensus Estimate for Lattice’s third-quarter earnings stands at 44 cents per share, implying a year-over-year increase of 57.1%. LSCC is estimated to report revenues of $166.1 million, which suggests growth of 25.9% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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Apple Inc. (AAPL): Free Stock Analysis Report
Lattice Semiconductor Corporation (LSCC): Free Stock Analysis Report
TD SYNNEX Corp. (SNX): Free Stock Analysis Report
Meta Platforms, Inc. (META): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks With the Favorable Combination Per our model, Apple AAPL, Meta Platforms META and Lattice Semiconductor LSCC have the right combination of elements to post an earnings beat in their upcoming releases. AAPL’s quarterly revenues are estimated to increase 5.7% year over year to $88.09 billion. Apple Inc. (AAPL): Free Stock Analysis Report
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Stocks With the Favorable Combination Per our model, Apple AAPL, Meta Platforms META and Lattice Semiconductor LSCC have the right combination of elements to post an earnings beat in their upcoming releases. AAPL’s quarterly revenues are estimated to increase 5.7% year over year to $88.09 billion. Apple Inc. (AAPL): Free Stock Analysis Report
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Stocks With the Favorable Combination Per our model, Apple AAPL, Meta Platforms META and Lattice Semiconductor LSCC have the right combination of elements to post an earnings beat in their upcoming releases. AAPL’s quarterly revenues are estimated to increase 5.7% year over year to $88.09 billion. Apple Inc. (AAPL): Free Stock Analysis Report
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Stocks With the Favorable Combination Per our model, Apple AAPL, Meta Platforms META and Lattice Semiconductor LSCC have the right combination of elements to post an earnings beat in their upcoming releases. AAPL’s quarterly revenues are estimated to increase 5.7% year over year to $88.09 billion. Apple Inc. (AAPL): Free Stock Analysis Report
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19215.0
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2022-09-25 00:00:00 UTC
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Why Is Everyone Talking About Apple?
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AAPL
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https://www.nasdaq.com/articles/why-is-everyone-talking-about-apple
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nan
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nan
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As the highest-valued company in the world with a market cap of $2.5 trillion, Apple (NASDAQ: AAPL) regularly makes headlines. However, public scrutiny often increases around September, when Apple regularly announces its updated lineup of iPhones and other products.
This year has been no different as analysts attempt to gauge the success of 2022's iPhone 14 series. The launch has had highs and lows, with the costlier models seemingly outselling the base versions for the first time in years.
Regardless of what might play out with Apple's latest iPhones, the company has consistently proven its resiliency in the market -- and that the MacBook manufacturer is an asset to any portfolio looking for long-term gains.
Combating stagnation
As smartphone technology advances, devices are becoming more powerful every year, offering more storage and longer battery life. As a result, tech companies are having an increasingly difficult time convincing consumers that a yearly upgrade is necessary. Apple has remained chiefly unscathed by smartphone stagnation as its ecosystem of interconnected products keeps consumers returning to the iPhone. However, its newest lineup of smartphones is the company's biggest push to stave off the phenomenon.
On Sept. 7, Apple unveiled its 2022 lineup of smartphones, including a base model iPhone 14, a larger Plus version, the 14 Pro, and the 14 Pro Max. The smartphones saw Apple widen the gap between the base versions and Pros, pushing consumers toward the more expensive options. For instance, the Pro models received a 48-megapixel camera, up from 12 the previous year, a software update that integrates the camera cut-out into a helpful user interface tool called Dynamic Island, a faster A16 Bionic chip, and a new always-on display feature.
Meanwhile, the iPhone 14 saw marginal improvements on 2021's 13, primarily including one extra core in its A15 Bionic chip, an extra hour of battery life, and satellite connectivity in the case of emergencies. As a result, consumers have flocked to the Pro models, with Apple analyst Ming-Chi Kuo reporting that 85% of iPhone 14 orders have opted for the Pro models.
However, not all headlines have been rosy concerning the costlier Pro models. Some users have experienced an issue that makes the rear-facing camera physically shake in third-party apps. Bloomberg reported on Sept. 19 that Apple would release an update to resolve the problem next week, but it remains to be seen whether it is a software or hardware issue. The company's stock doesn't seem to be affected by the reports so far, but Apple will be working hard to resolve the problem through a software update as a hardware issue would be costly.
A winning business model
Apple's current strategy of pushing consumers toward its Pro models is excellent if it succeeds; however, it does pose some risks. In the second quarter of 2022, Apple sold about 37% more of the base model iPhone 13 and 13 Mini than the two Pro versions in the lineup. The difference is not uncommon, as the iPhone 11 also sold about 80% more than the Pro versions in the first half of 2020. Judging by previous years, the current iPhone 14 Pro models will need to sell significantly more than previous years to make up for the loss of base model sales.
Despite a slightly questionable iPhone launch, Apple remains a company investors can count on. Its powerful ecosystem of products means that even in the case of poor iPhone sales, the company is likely to continue pulling revenue in from alternate sources. Apple's walled garden of products makes it easy to draw consumers in with just one product. For instance, iPhone users who upgrade their smartphones every three years are still likely to turn to products such as the MacBook or AirPods to fill other needs because of their connectivity with the iPhone.
That's also before mentioning Apple's Services business that includes monthly subscriptions for video streaming, music, a fitness platform, cloud storage, and more. The booming segment saw year-over-year revenue rise 12% in the third quarter of 2022, hitting $19.8 billion, and has become the company's second-biggest revenue stream after the iPhone.
So is Apple's stock a buy?
As one of the most innovative companies in the world, Apple is one of the top stocks to invest in for the long term. In 2022, tech stocks have suffered considerably on the back of inflation rises and declines in consumer demand. The effects are evident in the Nasdaq 100 Technology Sector index's decline of 36% since January. However, Apple's more modest fall of 15% in the same time frame proves its stability and resiliency under strenuous conditions.
September has been a busy month for Apple with a slightly chaotic iPhone launch, but the company remains a safe buy for investors in it for the long haul.
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Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends 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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As the highest-valued company in the world with a market cap of $2.5 trillion, Apple (NASDAQ: AAPL) regularly makes headlines. Regardless of what might play out with Apple's latest iPhones, the company has consistently proven its resiliency in the market -- and that the MacBook manufacturer is an asset to any portfolio looking for long-term gains. The company's stock doesn't seem to be affected by the reports so far, but Apple will be working hard to resolve the problem through a software update as a hardware issue would be costly.
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As the highest-valued company in the world with a market cap of $2.5 trillion, Apple (NASDAQ: AAPL) regularly makes headlines. A winning business model Apple's current strategy of pushing consumers toward its Pro models is excellent if it succeeds; however, it does pose some risks. Despite a slightly questionable iPhone launch, Apple remains a company investors can count on.
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As the highest-valued company in the world with a market cap of $2.5 trillion, Apple (NASDAQ: AAPL) regularly makes headlines. On Sept. 7, Apple unveiled its 2022 lineup of smartphones, including a base model iPhone 14, a larger Plus version, the 14 Pro, and the 14 Pro Max. As a result, consumers have flocked to the Pro models, with Apple analyst Ming-Chi Kuo reporting that 85% of iPhone 14 orders have opted for the Pro models.
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As the highest-valued company in the world with a market cap of $2.5 trillion, Apple (NASDAQ: AAPL) regularly makes headlines. Apple has remained chiefly unscathed by smartphone stagnation as its ecosystem of interconnected products keeps consumers returning to the iPhone. On Sept. 7, Apple unveiled its 2022 lineup of smartphones, including a base model iPhone 14, a larger Plus version, the 14 Pro, and the 14 Pro Max.
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19216.0
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2022-09-25 00:00:00 UTC
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Better Software Stock: Adobe vs. Unity
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AAPL
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https://www.nasdaq.com/articles/better-software-stock%3A-adobe-vs.-unity
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nan
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nan
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Adobe (NASDAQ: ADBE) and Unity (NYSE: U) might initially seem like two very different types of software companies. Adobe develops a wide range of cloud-based design, document, and enterprise software, while Unity mainly provides development and monetization tools for game developers.
However, Unity has been gradually expanding into Adobe's backyard with VR and AR development tools, "digital twin" tools for scanning real-world objects, and theatrical special effects with its acquisition of Weta Digital. That expansion could eventually make Unity a more diversified provider of cloud-based digital design tools like Adobe.
Image source: Getty Images.
Both stocks hit their all-time highs last November, but subsequently crashed as rising interest rates drove investors away from pricier growth stocks. Adobe's stock has plunged nearly 60%, while Unity's stock has fallen over 80%. Should investors consider either of these out-of-favor software stocks to be a turnaround play?
What happened to Adobe?
Adobe's revenue rose 23% to $15.8 billion in 2021, while its adjusted earnings per share (EPS) increased 24%. But this year analysts expect its revenue and adjusted EPS to grow just 12% and 9%, respectively. That deceleration was mainly caused by slower enterprise spending in the current macro environment and exacerbated by currency headwinds.
That slowdown wasn't surprising, but Adobe recently stunned investors with its decision to buy Figma, a design start-up that competes against Adobe XD in the user interface (UI) and user experience (UX) markets, for $20 billion -- or 50 times the $400 million in annual recurring revenue (ARR) the company is expected to generate this year. Adobe's decision to fund half of the deal in stock could also dilute its existing shares by 7% and offset a large portion of its previous buybacks.
It makes sense for Adobe to take out a rapidly growing competitor, but the price seems far too high. To make matters worse, Adobe expects the deal to be dilutive to its EPS in the first two years before becoming accretive in the third year.
Adobe's stock looks reasonably valued at 19 times forward earnings and eight times this year's sales. However, those valuations are still tethered to outdated estimates that don't fully factor in its surprising takeover of Figma, which should close in 2023. For now, analysts expect Adobe's revenue and adjusted EPS to grow 13% and 15%, respectively, in 2023.
What happened to Unity?
Unity's revenue rose 44% to $1.1 billion in 2021, but it remained unprofitable by both GAAP (generally accepted accounting principles) and non-GAAP measures. However, analysts expect its revenue to rise just 22% this year as it grapples with three main headwinds.
First, Unity Ads, one of the core components of its Operate Solutions segment, suffered a severe slowdown after ingesting "bad data" that rendered many of its in-game ads useless. Unity didn't directly name Apple (NASDAQ: AAPL) as the culprit, but the tech giant's iOS update -- which enabled users to opt-out of targeted ads -- likely caused that meltdown.
To rectify that issue, Unity has been rebuilding its entire advertising algorithm. It also agreed to acquire the controversial ad tech company ironSource (NYSE: IS) for $4.4 billion to accelerate that transformation. That move prompted ironSource's rival AppLovin (NASDAQ: APP) to try to buy Unity for about $58.85 per share -- a deal that Unity eventually rejected.
Second, the growth of the broader advertising market has cooled off amid the recent macro headwinds. Therefore, even if Unity successfully reboots Unity Ads, its near-term growth rates could remain tepid. Lastly, the growth of the broader video game market, which drives developers to its core game engine, has decelerated in a post-pandemic market.
Unity's stock now trades at a 33% discount to its IPO price, but it still isn't particularly cheap at eight times this year's sales.
Adobe is still the safer investment
Adobe's slowing growth and takeover of Figma have disappointed investors, but it's still a more stable investment than Unity right now. Adobe merely needs to weather the cyclical headwinds and successfully integrate Figma to silence the bears, but Unity is still trying to rebuild a key growth engine while its core gaming and ad markets cool off.
Unity also faces more direct competitors, including Epic Games' Unreal Engine, as Adobe comfortably dominates the creative design software field with its Photoshop, Illustrator, and Premiere Pro services. More importantly, Adobe should remain firmly profitable as Unity continues to bleed red ink in this unforgiving market for unprofitable growth stocks.
10 stocks we like even better than Adobe Inc.
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*Stock Advisor returns as of August 17, 2022
Leo Sun has positions in Adobe Inc., Apple, and Unity Software Inc. The Motley Fool has positions in and recommends Adobe Inc., Apple, and Unity Software Inc. The Motley Fool recommends the following options: long January 2024 $420 calls on Adobe Inc., long March 2023 $120 calls on Apple, short January 2024 $430 calls on Adobe Inc., 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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Unity didn't directly name Apple (NASDAQ: AAPL) as the culprit, but the tech giant's iOS update -- which enabled users to opt-out of targeted ads -- likely caused that meltdown. Adobe merely needs to weather the cyclical headwinds and successfully integrate Figma to silence the bears, but Unity is still trying to rebuild a key growth engine while its core gaming and ad markets cool off. Unity also faces more direct competitors, including Epic Games' Unreal Engine, as Adobe comfortably dominates the creative design software field with its Photoshop, Illustrator, and Premiere Pro services.
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Unity didn't directly name Apple (NASDAQ: AAPL) as the culprit, but the tech giant's iOS update -- which enabled users to opt-out of targeted ads -- likely caused that meltdown. That slowdown wasn't surprising, but Adobe recently stunned investors with its decision to buy Figma, a design start-up that competes against Adobe XD in the user interface (UI) and user experience (UX) markets, for $20 billion -- or 50 times the $400 million in annual recurring revenue (ARR) the company is expected to generate this year. For now, analysts expect Adobe's revenue and adjusted EPS to grow 13% and 15%, respectively, in 2023.
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Unity didn't directly name Apple (NASDAQ: AAPL) as the culprit, but the tech giant's iOS update -- which enabled users to opt-out of targeted ads -- likely caused that meltdown. Adobe's stock has plunged nearly 60%, while Unity's stock has fallen over 80%. That slowdown wasn't surprising, but Adobe recently stunned investors with its decision to buy Figma, a design start-up that competes against Adobe XD in the user interface (UI) and user experience (UX) markets, for $20 billion -- or 50 times the $400 million in annual recurring revenue (ARR) the company is expected to generate this year.
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Unity didn't directly name Apple (NASDAQ: AAPL) as the culprit, but the tech giant's iOS update -- which enabled users to opt-out of targeted ads -- likely caused that meltdown. That slowdown wasn't surprising, but Adobe recently stunned investors with its decision to buy Figma, a design start-up that competes against Adobe XD in the user interface (UI) and user experience (UX) markets, for $20 billion -- or 50 times the $400 million in annual recurring revenue (ARR) the company is expected to generate this year. 10 stocks we like even better than Adobe Inc.
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19217.0
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2022-09-25 00:00:00 UTC
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With Apple Threatening, Is It Time to Sell Garmin?
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AAPL
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https://www.nasdaq.com/articles/with-apple-threatening-is-it-time-to-sell-garmin
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nan
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nan
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Garmin (NYSE: GRMN) stock has had a rough 2022 already, and shares caught additional pressure recently thanks to news out of Apple (NASDAQ: AAPL). The consumer tech giant already competes against some of Garmin's popular smartwatch devices, but that competition is hitting a new level.
Apple announced a new addition to its smartwatch lineup that's aimed at sports enthusiasts and includes many of the navigation features that have been a staple of Garmin products, like its tactix adventure watch.
Is Garmin doomed to lose market share now that Apple is targeting this niche? Let's take a closer look.
Carving out a niche
Garmin has already been bumping up against Apple and other competitors in the wearables space, and it has done well despite these challenges. Sure, sales are down in 2022 -- especially in Garmin's fitness and cycling products -- after surging last year. But the company has a wide range of popular devices ranging from affordable fitness trackers to high-end scuba diving watches.
Sales in its fitness segment jumped 16% in fiscal 2021. And the outdoor division, home to Garmin's more adventure-focused smartwatches, was up 14%. That success is a good indication that the company won't be crushed by Apple's entrance into the high-end portion of the adventure watch market.
Wider portfolio
Garmin also has a deep portfolio that would allow it to continue growing even if Apple dominates in this new rivalry. It sells boating and aviation GPS platforms, and its auto navigation segment is also making a run toward $1 billion in annual sales.
The adventure watch unit is one of five major revenue streams for the device maker, which grew its overall business in each of the last five fiscal years despite temporary slumps in areas like fitness trackers. It's likely that Garmin will continue to benefit from this diversity through any new Apple competition.
Looking ahead
The more immediate concern for investors is how Garmin will weather the next few quarters that are likely to bring falling sales and declining profit margins. There was ample evidence of these trends in the last earnings report. Revenue fell 6% in the quarter that ended in late June as operating profit margin fell to 24% of sales from 28% a year ago .
Executives at the time lowered their full-year outlook to target $5 billion in sales compared to the $5.5 billion they had predicted a few months earlier. Garmin could reduce that forecast again in its next update if consumers continue to push spending away from categories that had been popular in earlier phases of the pandemic.
Still, the overall sales footprint is likely to rise for a seventh straight year in 2022 despite the extra competition from Apple. That track record is a clear sign that Garmin has endurable competitive advantages across several GPS device categories.
Instead of looking at the Apple move as a negative for the stock, shareholders should see it as confirmation that the adventure watch category has a large global appeal. Both companies can succeed in that kind of environment, and the rivalry should benefit consumers and the wider tech industry, too.
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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*Stock Advisor returns as of August 17, 2022
Demitri Kalogeropoulos has positions in Apple. The Motley Fool has positions in and recommends Apple and Garmin. 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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Garmin (NYSE: GRMN) stock has had a rough 2022 already, and shares caught additional pressure recently thanks to news out of Apple (NASDAQ: AAPL). Apple announced a new addition to its smartwatch lineup that's aimed at sports enthusiasts and includes many of the navigation features that have been a staple of Garmin products, like its tactix adventure watch. The adventure watch unit is one of five major revenue streams for the device maker, which grew its overall business in each of the last five fiscal years despite temporary slumps in areas like fitness trackers.
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Garmin (NYSE: GRMN) stock has had a rough 2022 already, and shares caught additional pressure recently thanks to news out of Apple (NASDAQ: AAPL). But the company has a wide range of popular devices ranging from affordable fitness trackers to high-end scuba diving watches. The Motley Fool has positions in and recommends Apple and Garmin.
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Garmin (NYSE: GRMN) stock has had a rough 2022 already, and shares caught additional pressure recently thanks to news out of Apple (NASDAQ: AAPL). Apple announced a new addition to its smartwatch lineup that's aimed at sports enthusiasts and includes many of the navigation features that have been a staple of Garmin products, like its tactix adventure watch. The Motley Fool has positions in and recommends Apple and Garmin.
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Garmin (NYSE: GRMN) stock has had a rough 2022 already, and shares caught additional pressure recently thanks to news out of Apple (NASDAQ: AAPL). The consumer tech giant already competes against some of Garmin's popular smartwatch devices, but that competition is hitting a new level. Sure, sales are down in 2022 -- especially in Garmin's fitness and cycling products -- after surging last year.
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19218.0
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2022-09-24 00:00:00 UTC
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Why Everyone Pays Attention to FedEx
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AAPL
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https://www.nasdaq.com/articles/why-everyone-pays-attention-to-fedex
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nan
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nan
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In this podcast, Motley Fool senior analysts Emily Flippen and Ron Gross discuss:
FedEx shares having a historically bad day amid talk of a recession.
Adobe spending $20 billion for a start-up software-design firm.
Optimism around Starbucks after an impressive (and detailed) investor day.
Twilio laying off 11% of employees.
Two business leaders and their legacies.
John Ourand from the Sports Business Journal discusses Amazon's investments in NFL programming, Disney's thinking about ESPN, college football playoff expansion, and storylines for the MLB playoffs.
Ron and Emily share two stocks on their radar: Union Pacific and Costco.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than FedEx
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 FedEx wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of August 17, 2022
This video was recorded on September 16, 2022.
Chris Hill: How bad is it for FedEx? How much does Amazon have riding on Thursday Night Football? And who gives away an entire company? Motley Fool Money starts now.
From Fool global headquarters, this is Motley Fool Money. Some Motley Fool Money radio show. I'm Chris Hill joining me in studio senior analysts Emily Flippen and Ron Gross. Good to see both. Hey, we've got the latest headlines from Wall Street. We'll talk NFL prime time with John Ourand from the Sports Business Journal. And as always, we've got a couple of stocks on our radar.
But we begin with another rough week for the markets, the Dow, S&P 500 and Nasdaq all down again this week, punctuated by shares of FedEx falling more than 20% on Friday. First-quarter profits and revenue for the bellwether company were lower than expected. Ron will get to FedEx itself in a minute. But this was another rough week where it was hard to find optimism anywhere. If you can buy shares of pessimism, I feel like that is a stock.
Ron Gross: That's fair. I didn't enjoy this week. I'll be honest with you. The bottom line is that we got some inflation data. The numbers came in hotter, higher than expected or even hoped for, which caused investors to believe that the Fed would have to continue to aggressively raise interest rates, and that sent the market down. At the same time, as you mentioned with FedEx, the economy's starting to show signs of weakness, which is, after all, the desired outcome of the Fed. We shouldn't be surprised; that's what they're trying to do. I think we're likely to see companies start to miss their earnings estimates or actually bring estimates down over the next quarter or two as the economy does in fact start to slow, and then we'll see if we actually slip into a recession or we manage to avoid one.
Chris Hill: Emily, normally, I get excited for earnings season, and this was one of those weeks that makes me think maybe when earnings season kicks into high gear next month, it's not going to be pretty.
Emily Flippen: Yeah, FedEx is a bellwether stock for the global economy because you can think about the thousands of businesses that use their services to run their own businesses. It's almost like a canary here saying, "Hey, headed into the holiday season, things might not be that great."
Although I will say a lot of the headwinds that FedEx is experiencing in the quarter were things that were very prevalent last quarter as well. They didn't make a lot of cuts decreasing their cost structure in order to meet guidance that they had set out previously. It just got my head scratching about why they weren't a bit more proactive with this last quarter.
Chris Hill: Ron, in terms of FedEx itself, obviously, the profits and revenue were not great. They appear to be taking a pretty aggressive approach to cost savings. They're talking about shutting down offices, deferring hiring, and more.
Ron Gross: Yes, out of necessity, quite frankly. When you have revenue up only 5% and earnings actually down 6% and margins getting smacked around due to weakness. Quite frankly, everywhere they highlighted -- Asia and Europe, but domestically was no treat either -- you have to look at rightsizing the business. They're going to do things like close 90 office locations, close five corporate office facilities, defer hiring, reduce flights, cancel projects. They're going to reduce their capex budget for the year by $500 million. It's still $6.3 billion, but half a billion dollar cut to that.
They're doing what they can. They withdrew their full-year guidance. One of the reasons the stock is down so much because investors and analysts just don't like when companies are forced to do that because it shows that they don't have visibility into their own business. If they don't have visibility than why should an investor feel that they have any visibility?
Chris Hill: I was going to say, is that something we should expect more of as we get into earnings season next month? Or maybe not expect, should we not be surprised if other companies follow suit and just pull back guidance altogether?
Ron Gross: I think it's fair to say yes. The more that do it then it easier becomes for others to do it. Companies are hesitant to do it because even though we'd prefer they worry about their business and not their stock price, they do worry about the stock price and the analyst community, so I wouldn't be surprised if we start to see a lot of guidance being pulled.
Emily Flippen: Oh, here's my confusion. They talk about this impending recession, and certainly they're seeing the impacts in their business today. But everywhere I look. Chris, we're talking earlier, we're seeing lines outside of Apple stores for their new iPhones. We're seeing unemployment still really low. So part of it just has me confused, because we're getting one narrative from companies right now saying look, earnings are going to be bad, headed into next earnings season. Shipments are down. But at the same time, American consumers still seem to be spending money.
Ron Gross: They should do sending money, and employment is still quite robust. But as earnings come down, that's when companies will, you'll see the lag, companies will start to say where can we cut? Just like FedEx is. Then we'll probably see the employment picture change a bit. That's where you probably either enter a recession, hopefully a mild one, or maybe just skirt around it, but clearly the economy will weaken.
Chris Hill: Well, not every company is cutting back on spending money. On Thursday, Adobe announced third-quarter results that got completely overshadowed by their other announcement, which is that Adobe is buying Figma, a software design firm, in a cash-and-stock deal worth $20 billion. Shares of Adobe fell 17% on Thursday.
Emily, safe to assume that absolutely everyone thinks they overpaid for Figma?
Emily Flippen: Well, this is just chump change. Who can't reach into their couch and pull out a good $20 billion and change?
No, this is a huge deal and it led to Adobe's largest drop in over a decade. So investors are very scared. Unfortunately, it overshadowed what was a pretty strong quarter otherwise. Revenue rose 12% for the business. Margins expanded. And while guidance was predictably weak, the business itself still remains very stable.
But there were two main things that were contributing to, I think the investor response to this acquisition. First being, obviously, the price tag; $20 billion is a lot. It's double Figma evaluation that they had this time last year, and that's at a time when other tech valuations have dramatically fallen over the course of the year. It values the company at around 50 times annualized recurring revenue, extremely lofty valuation. Part of the response we're seeing is in regard to the price tag.
But secondarily, it's in regards to Adobe strategy here. I mean, this is a big departure for Adobe in the past. They've always been acquisitive, but acquisitions to this point have largely been tuck-ins and at reasonable multiples. It shows how disciplined the management team has been with capital allocation to this point.
But clearly, there is something about this deal that is reactive and not proactive, in my opinion. They're looking, in my opinion, to take out what is probably a really formidable competitor, which does leave me confused about what potential regulatory impact there could be as regulators take a look at this massive deal. But it's certainly rubbing investors wrong way this week.
Chris Hill: You think if Microsoft made this exact same deal, they would get not the same level of scrutiny? You would like to thank any deal gets scrutinized by regulators, but would they have a better chance of having an approved?
Emily Flippen: I definitely think they would, in part because their offerings aren't as directly competitive as Figma is with Adobe's offerings today. They also have a bit of a better budget, I suppose, for purchases of this size. More importantly, it's not completely different strategy for Microsoft. I still think it'd be scrutinized in terms of the price. There's no reason why a valuation should double in a year when other valuations have come back down to earth. But in this case, I think it's a combination of both that price tag and Adobe's past strategy.
Chris Hill: Shares of Adobe are at their lowest point in almost three years. You'll look at that and think, oh, this might be an opportunity to buy? Or still too many question marks around this deal.
Emily Flippen: I still have too many question marks around this deal. Large acquisitions like this rarely pay off, especially when they're made out of necessity instead of desire.
Chris Hill: Shares of Starbucks up this week. On Tuesday, the coffee giant held an investor day presentation. Among the highlights, the company will be investing $450 million to improve coffee machines and stores with the goal of speeding up the process for baristas.
Ron, when you consider 70% of coffee sales are cold drinks and some of those cold drinks are really complicated to make, that's one of those investments that could move the needle. But there were a bunch of announcements that stood out to you.
Ron Gross: Here, they covered a lot of ground. I think if you're a shareholder, which I am and I think you are as well, there was a lot to like here in what they're calling their reinvention plan. Which emphasize some of the things you talked about, some cost reductions, enhanced employee benefits, which I think is quite important actually, and technology. It's designed to keep that line moving when you're ordering your triple caramel mocha ice latte with one shot of decaf and two shots of regular. We're going to have a better throughput, I think, and that will improve the barista experience as well as the customer's experience.
This plant is going to accelerate gross. They think they'll it'll drive EPS growth 15% to 20% annually through fiscal 2025. Guiding for really strong comps both here and in China. China remains a big part of this story, especially as COVID subsides.
They plan to accelerate their store expansion, growing the count about 7% annually; that'll be 3% to 4% growth domestically, 13% in China. Many of those new stores will be pure drive-throughs or delivery hubs, not the full walk-in cafes that we've become used to. They're going to spend $2.5 billion to $3 billion annually to build these out.
They're on the move in both improving efficiencies, building new stores, improving margins, and that's going to flow down to the bottom line as their new CEO takes the reins from Howard Schultz.
Chris Hill: Earlier, I was talking about pessimism. I think it's worth pointing out the optimism around Starbucks and this event. This is a bad week for the market. Shares of Starbucks are up off of the presentation they made, and I've got to be honest, Ron, my reaction in the moment when they were talking about "and this is what we think it's going to do for our earnings per share," I got a little nervous and I just thought, oh God, don't build up expectations. Don't say that out loud. But when you look at the effect of the new machines, these new processes, and how it really could speed up throughput and boost the same-store sales numbers, maybe it's not that crazy.
Ron Gross: It's not that crazy, and they were quite specific. As you say, they're setting themselves up to have to perform here; otherwise they're going to be taken to task. The business looks strong, and the stock's is not that cheap at the PE of 30 times currently. But the E of that PE, I think, is going to start to accelerate and then so in reality, that 30 times will be lower or come down. A 2.2% yield nothing to sneeze that either.
Emily Flippen: Well, as order of the nonfat mocha, iced extra shot with caramel drizzle drink, I'm personally attacked.
But no, to your point, I'm really interested to see what Starbucks' new CEO has for this company moving forward because the investor day really didn't focus on that leadership transition at all. I think the market is probably going to be asking into next year, what's the vision here and how is it different in the vision that Howard Schultz has already laid out?
Chris Hill: After the break, we've got a closer look at two business leaders and the legacies they are leaving. Stay right here. You're listening to Motley Fool Money.
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Welcome back to Motley Fool Money. Chris Hill here in studio with Emily Flippen and Ron Gross. This week, Twilio announced plans to lay off 11% of its workforce. Jeff Lawson, the CEO of the cloud communications software company, said the decision was extremely difficult but necessary.
Emily, Twilio is not profitable, and Lawson clearly is hoping that this is one of the moves that are going to help them get to profitability in 2023.
Emily Flippen: Laying off 11% of somebody's workforce is certainly no joke, but neither is more than a billion dollars in operating losses over the past year, which Twilio has experienced. Management has been really up front about their goals to reach an adjusted level of profitability over the next couple of years. That's not going to be easy if you have what some believe to be a relatively bloated company.
What you have here is another software company -- I call it software companies in particular, but companies have benefited from the pandemic pull-forward -- looking at their business, how it's grown over the past couple of years, and realizing that they've made mistakes by allowing themselves to get spread too thin and as a result, overhiring in areas that are maybe no longer necessary for the core functionality of the business.
It's a very hard decision to make, and I think there's lots of discussions about how Twilio communicated this decision to its workforce that are worth considering and breaking apart. But it's clear that this was not an easy decision, and more importantly, I don't think they're the only company that's going to be having to make these tough decisions over the next couple of quarters. Because it's clear the economy is not set to get significantly better in the near term, so ensuring that they have the ability to self-fund their operations without the need for outside capital, whether it be from the debt markets or shareholders, is going to be critical.
Chris Hill: It's going to be interesting to see, because you're right, Twilio is not the only company that has basically talked about this narrative. Hey, we hired too much over the last couple of years; we're going to have to be more efficient going forward. It is going to be interesting to see if a few years down the line, these companies -- and you're right, a lot of them are software companies -- basically take a page out of what we saw from the housing market, where they course corrected in the wake of the Great Recession and really just got very lean in terms of the number of houses they built. Long term, Twilio and a lot of other companies may end up being much more efficient as a result.
Emily Flippen: I hope so, and you're giving me the opportunity to get back on the soapbox I was on last week as regards to efficiency here, Chris. But unless you fix the underlying cause that caused the inefficiencies to be created in the first place, you could be looking at a business that is going to be extremely inefficient in under five years. One-time layoffs do not fix the problem. They're the symptom of an underlying problem. I hope that all of these companies -- Twilio, Shopify handful of other software businesses that have laid off massive portions of their workforce -- I hope they take a deep, hard look at their systems and fix what's clearly broken.
Chris Hill: More than 50 years ago, Yvon Chouinard founded Patagonia. Chouinard and his family are giving away ownership of the apparel company. Patagonia will go into a trust, and all of the profits that are not reinvested in the business will go to organizations focused on protecting wildlife and fighting climate change.
Ron, this is about a $3 billion company. I don't recall ever seeing this type of move before. We've certainly seen leaders of companies give away their fortunes. I've never seen giving away the entire company like this.
Ron Gross: Nor have I, and as you say, we've seen things like the Giving Pledge with Gates and Buffett giving large portions of their wealth to charity over time. But this is really putting your money where your mouth is. It's very admirable, it's very impressive, and it's very unique. This is a lot of money. This is his family's wealth. This is a company that has been in the family for quite some time, and they really are committing to climate change and the climate crisis, I should say. It's an interesting structure with trusts, and it'll still be a for-profit corporation. But how to get this done is quite interesting for those that find that stuff interesting, but I'm just very impressed.
Chris Hill: Patagonia is also one of those brands that people who are fans of it are really passionate about it, and it seems like this move will only engender more of that going forward.
Ron Gross: How could you not support a company that you liked, anyway, after you see what they're doing for the environment? Really impressive.
Chris Hill: Pour one out for Fred Franzia. The co-founder of Bronco Wine Company died this week at the age of 79. And of the hundreds of brands of wine Franzia's company owned, he's probably best known for the Charles Shaw brand, also known as Two Buck Chuck, for anyone who's ever been to a Trader Joe's.
Emily, I feel like we need to go shopping after this and just hit up the local Trader Joe's and just fill up the cart with some Two Buck Chuck.
Emily Flippen: I never thought I had a real-life hero. But now when people ask me who my hero is, I think I have an answer for them, because anybody who's aiming to democratize access to wine the way that Fred Franzia has worked is really good in my book.
Here's what I will say as we got into the store, yes, Two Buck Chuck is great. But the thing that came to my mind immediately was Franzia's boxed wine. How is that not more disruptive than Two Buck Chuck? Well, it turns out Mr. Franzia actually sold the name brand to, I believe, Coke back in the 1970s. Despite the name, they don't own the Franzia brand.
Chris Hill: Ron, Emily points to something which is pretty interesting in terms of Franzia's life and his career, which is that he was not beloved within the industry because he was very up front about the fact that a lot of wine is just wildly overpriced. He really did do a lot to essentially democratize what was once a pretty snooty product.
Ron Gross: For sure. The price thing really angered some in the industry, and you could understand why, but they also were a little bit upset because he was trying to say that there really isn't that big a difference between the $2 bottle, a $10 bottle, or a $20 bottle. There are many within the industry who vehemently disagree with that, and they thought he was doing the consumer a disservice by saying that they were all similar.
Emily Flippen: Although the only difference is the labels are cuter on the more expensive wines, right?
Chris Hill: Absolutely. Emily Flippen, Ron Gross, we will see you later in the show.
Up next, what should investors expect from Amazon's investment in Thursday Night Football? We'll talk with John Ourand of the Sports Business Journal. Stay right here. You're listening to Motley Fool Money.
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Welcome back to Motley Fool Money. I'm Chris Hill. More than 120 million people watched the NFL's opening weekend. Here to talk through some of the latest sports business headlines is John Ourand. He covers media for the Sports Business Journal, and he joins me now from Washington, DC. John, thanks for being here.
John Ourand: Thanks, Chris.
Chris Hill: Let's start with the NFL. You and I are recording this on Thursday afternoon. We are just a few hours away from the Thursday-night game between the Chargers and the Chiefs, and what is noteworthy from a business standpoint about this game is that it will be shown exclusively on Amazon Prime.
There are a couple of different ways we can go here, John. But I'm curious what you think this does to the TV landscape. Because as a shareholder of Amazon, I'm hoping this works out for them. But this doesn't seem -- to mix sports metaphors -- this doesn't seem like a slam dunk, and I'm just curious what your thoughts are in terms of what this means for Amazon and what this means for other networks.
John Ourand: What this means for Amazon is they have Amazon Prime, which is a video service, and they're trying to build out the video service. If you have an entertainment-focused video service, you have a lot of competition. You have Netflix, Apple Plus, the Disney bundle, Peacock, Paramount, you can go on and on. Amazon has decided that one way to differentiate itself from all these other services is to go after high-profile sports, and so they got the biggest daddy that there is in terms of the NFL. NFL's Thursday Night Football is going to be exclusive to Amazon.
Amazon is now paying, I think it's a little bit more than a billion dollars a year for the rights to these games. Amazon is spending a boatload to produce these games. They got Fred Gaudelli, who is a famed producer, who has been doing Sunday Night Football at NBC for years, to come over and do it.
Al Michaels is the best play-by-play announcer, I think in probably NFL history. He's been calling the main prime-time games since 1986, is doing the play-by-play. Kirk Herbstreit, another high-priced on-air talent, is doing the analysis.
When you watch these games, when you watch the games on Amazon, it is going to feel like a broadcast prime-time game, and that, for the TV business, is so unusual because when I know this has many years ago, it's like 35 years ago. But when ESPN first got into the NFL, its productions looked and felt like a cable TV production compared to broadcast. They decided to try to grow with the NFL and not immediately start with such a big broadcast.
Amazon is taking the exact opposite approach. It's spending a boatload. I think it has 29 cameras. They're about the same number of cameras covering the game that covers a Super Bowl, for goodness' sake, and this is just a regular-season game. They're taking an opposite approach
And part of what they're doing is they're trying to send a message to other leagues to say, look how well we're going to treat your product if you come to us. Because right now, Amazon is finding even though they're bidding more money than some of the networks, a lot of the leagues -- F1, Formula 1 racing, the Big Ten -- they've decided to stick with traditional linear television at a lower price point because it reaches more people than going to Amazon right now. This is all, everybody, the entire sports media industry is taking a look at not just this game, but the entire season on Amazon to see how it fares.
Chris Hill: Yeah, there are a number of business angles to watch here, so you talk about the ratings, that's certainly a key part of that. And for Amazon, the advertising that flows from the ratings, so their ability to deliver for advertisers.
Do you think this represents an opportunity for other networks? I mean, to your point, Thursday Night Football, if it's on network television, it's probably commanding a bigger audience. Other competing networks may be reluctant to program in a significant way. I don't think there's anyone -- including, by the way, the folks at Amazon themselves -- who believe that the raw number of people watching on Thursday night is going to be higher than what we've seen in the past on network television, and so if you're ESPN, TBS, I don't know. Do you bump up your programming game on Thursdays nights? Because it's a little bit more of a fair fight.
John Ourand: Chris, it's so interesting because if I were running a television network right now, sports television network, that's exactly what I would do. With ESPN, I would put a prime college football game on, because people will watch it. Fox, I might think about taking their highly rated wrestling, which is on Friday, night and put it on Thursday night, because it's much more cumbersome for people, especially older people, to find Amazon Prime and find this NFL game.
What's happened, though, is the networks aren't doing that yet. They're taking a wait-and-see approach, and even the most conservative estimates, which has a game on Amazon getting, let's say, 7 million viewers. That's a very conservative estimate right now. Nothing in TV is getting 7 million viewers. It's the power of the NFL, and so you still have these big linear networks that see that 7 million number and say, well we don't want to go up against that. They're taking a go-slow approach, see how Amazon's doing, and then they're going to make their plans. But I think it would be a lot more aggressive right now.
Chris Hill: One last thing on this topic. Because Fox has the Super Bowl next year, and I saw a story recently that a 30-second ad is going for $7 million. Fox has reportedly sold the bulk of the broadcast. Is this why we're seeing Amazon throw the amount of money that they're throwing at not just the rights for Thursday Night Football but, to your point, the production value behind it? Because nothing really delivers numbers in live television the way that sports does.
John Ourand: The television advertising is worried about a recession. They're worried about inflation, and you're seeing become weak across the business except for the NFL and except for actually really major sports: college football, I think you can throw in there. Fox has had a lot of success with postseason baseball as well, which is coming up. There's a real sense that these big TV networks and traditional linear television, live sports, and live news, and even the awards shows, anything that has a "live" attached to it, that's the last reason for remaining and business. Because anybody that subscribe to traditional cable television or watched prime-time broadcast for entertainment shows have already migrated to Netflix and Apple TV+ and the myriad of series that are being streamed over on those services.
Chris Hill: Let's stick with ESPN for a moment, because last week, Disney had their D23 Expo, the main purpose of which was to show off upcoming movies and TV series for Disney+. Disney CEO Bob Chapek gave some interviews, and the headline that caught my attention out of those interviews was he completely shut down the idea that's been around for years now of Disney spinning off ESPN.
What was your reaction to that? Because Chapek, among other things, seems to have ruffled feathers in various corners here or there. But say what you want about the guy, he seems to be pretty definitive when he wants to be, and he seemed pretty clear that ESPN is staying in-house.
John Ourand: My reaction to that was not quite a yawn. A little bit more than a yawn. I'm not sure how to what the grade is on that. Maybe one arched eyebrow, but not two.
There have been a lot of rumors going around about Disney potentially selling off ESPN. There's been cord-cutting and cable, so ESPN is not going to as many subscribers. They're losing subscribers while the cost of sports rights are going up. It looks like an awful business, right?
It's not. Inside ESPN at the highest levels, while they've looked into it as you would expect, it never got serious, and the talk never got serious, and I think what you saw Bob Chapek say was he came out as forcefully as he could and said, you know, that is not going to happen.
But, Chris, what I found to be particularly interesting about what he said is that he views ESPN as a huge growth opportunity. Here's ESPN, which has been the best part of Disney's quarterly earnings from 2010 through 2018 or so. It just prints money and goes, and you would have thought that its big growth prospects were in the rear-view mirror. But Chapek still believes, with sports gambling and with streaming, that there are different areas where ESPN can really focus on those and start to grow as big as it had been growing during cable's heyday.
Chris Hill: The college football playoffs are going to be expanding, 12 games -- or 12 teams rather. I suppose this really shouldn't surprise anyone, should it? When you think about the NFL is king when it comes to live sports in America. Is college football second? Does it supplant the NBA and Major League Baseball? Because that would help explain a pretty significant expansion of the playoffs.
John Ourand: It depends on how you look at it. In terms of sheer audience numbers, you have the NFL, and then you have a pretty big drop, and you have college football, and then you have a pretty big drop, and you have everybody else. The reason I'm hesitant to say like, yeah, college football is bigger than the NBA is that college football is made up of so many different conferences: the SEC and the ACC and the Big 10, the NBA, and Major League Baseball come in as big national brands there. It's a little bit difficult to compare those two.
But I think what you're seeing with colleges, the Big 10 just sold their media rights to CBS, NBC, and Fox, and it's the first college conference, one college conference, that's making more than a billion dollars per year in media revenue. And so anybody that's involved with the business of college athletics is taking a look at that deal. They're saying, right now we have a four-team playoff. They also are taking a look at the NCAA tournament, which is for basketball, which is a huge deal there as well. It's like, well, why don't we expand? I think what's going to be particularly interesting and sort of the story that I'm going to be following is how much this is going to bring in.
With the games that they're going to be bringing in aren't necessarily going to be Alabama versus Auburn. I think you're going to see, sometimes, Boise State playing Utah because those got in there as well. These television networks, they're for-profit companies, how much are they going to pay on the Cinderella games like that?
Then if Alabama is playing, we've seen already with the college football playoff, we've seen the semifinals. I don't have the stats on it, but a huge percentage of them have been blowouts. They haven't been good games, and that's not good TV, and it's generally that doesn't bring in a lot of viewers. TV network executives they look at that and check.
There's got to be a lot of interest in it, of course. There're going to be a lot of people milling around to try to get it and including Amazon, I would think, and they're going to get a fine number, but I am a bit of a skeptic when it comes to that. I think that the TV networks in particular are going to take a look at the data and hesitate on going whole hog with the college football playoff expansion.
Chris Hill: Let's wrap up with baseball. There're three weeks left in the Major League Baseball season. When it comes to the playoffs, ESPN has the wildcard games, TBS and Fox have the rest of the playoffs, with the World Series on Fox. If you're running those networks, John, how are you feeling about the teams and the storylines heading into the playoffs? Because this isn't like the Super Bowl, which is guaranteed to get a big number every year regardless of which teams are playing in it. The Major League Baseball playoffs really are dependent on the teams, the markets, and the storylines.
John Ourand: Only in the NFL can a team from Green Bay, Wisconsin, be one of the highest-rated teams around. This is one of the issues that baseball has had to deal with, and if you look at the national ratings over the past several years, you would think that it would be a weaker sport. But baseball locally is so strong, even with the downfall of some of these regional sports networks that are carrying the games locally. I just took a look at Baltimore Oriole ratings in Baltimore this summer. It's the highest-rated show. Every night they play in prime time in Baltimore, it's substantial.
How they can get those numbers and that interest and translate it into the playoffs usually depends on the big brands. Are the Yankees going to get through? I think the Astros have proven to be a pretty good brand as well. The Dodgers, they have superstar players that people know, and they've been around for awhile. What the networks and baseball are hopeful for is that it's less about the big personalities -- like Aaron Judge is a big personality, but he's with the Yankees -- it's more about these big markets. If the Yankees get in, you get the No. 1 TV market that's all of a sudden watching every night and the ratings will be OK. If they end up with Toronto playing Minnesota, it will be a tougher road for baseball, Fox, and Turner.
Chris Hill: You can read him in the Sports Business Journal. You can also hear him every week on the sports media podcast that he co-hosts with Andrew Marchand of the New York Post. John Ourand, thank you so much for being here.
John Ourand: Always a pleasure, Chris. Thanks.
Chris Hill: Coming up after the break, Emily Flippen and Ron Gross return. They got a couple of stocks on their radar, so stay right here. You're listening to Motley Fool Money.
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As always, people on the program may have interest in the stocks they talk about, and the Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear.
Welcome back to Motley Fool Money. Chris Hill here in studio with Emily Flippen and Ron Gross. Once again, it's time to get to the stocks on our radar. Our man behind the glass, Dan Boyd, is going to hit you with a question. Ron Gross, you're up first. What are you looking at this week?
Ron Gross: I got Union Pacific, UNP. Operates the Union Pacific Railroad, one of the two largest railway networks in the U.S. they've got a strong, durable competitive advantage. They have pricing power, they're increasing their efficiency. That leads to really strong net margins. I think those will continue to improve. They've paid a dividend on their common stock for 123 consecutive years, Dan, that's a 2.3% yield at the moment.
The reason I bring this up now is that we were on the verge of a strike by railway/railroad workers. That seems to be have been averted partially with the help of the Biden administration, better pay for their workers. Exemptions to attendance policies, allow them to seek certain types of medical care. A lot of good stuff. I'm really glad to see that that was averted. The rails roughly transport about 30% to 40% of the nation's freight, and so that would have been a pretty big disaster.
Chris Hill: Dan, question about Union Pacific?
Dan Boyd: Old economy Ron. Back in the saddle, y'all. That's right. Ron is talking about a company that's existed for what? Thousands of years now, Ron?
Ron Gross: The dawn of time, Dan.
Chris Hill: Emily Flippen, what are you looking at this week?
Emily Flippen: I thought I was going to have the boring stock this week. But leave it to Ron to take the cake.
No, the company I'm looking at is Costco. The ticker is COST. People are probably already familiar with this company. But the reason why it's on my radar is because they report their fourth-quarter results on September 22nd, and I'm very interested to hear what they'll say about the state of American consumers.
Prices for gas have come down last quarter. They saw a benefit of 5% in total sales as a result of just the increase in the price of gas. But even with backing gas out, the business still has performed extremely well. Sales were up 16% last quarter, even as inflation has started to rear its head, so very interested to hear what management says about inflation, how they set up expectations for the remainder of the year.
Chris Hill: Dan, question about Costco?
Dan Boyd: Well, first, I want to point out that Motley Fool Producer Emeritus Mac Greer is probably doing back flips in his house right now to hear Costco mentioned on the show.
Costco, of course, Emily not a wild pick here, very staid, solid company. Is there anything specific coming from Costco that makes you want to put them on the radar other than their report?
Emily Flippen: Here's the reason is because for probably the past five weeks now, I have given investors and listeners for this podcast some crazy, wild picks. I want proof that I can be a diversified, generalist investor who looks at things other than unprofitable Chinese tech companies.
Ron Gross: Costco is one of the best-run companies in the U.S., in my opinion.
Emily Flippen: What Ron said.
Chris Hill: Dan, what do you want to add to your watch list?
Dan Boyd: I got to take a train trip. No seriously, I got to take a trip up to New York for New York ComicCon next month. I'm going to go with trains and Union Pacific.
Ron Gross: Awesome.
Chris Hill: I want to watch a documentary of you and Ron taking a train.
Dan Boyd: It will be awesome.
Chris Hill: Ron Gross, Emily Flippen, thanks for being here.
Ron Gross: Thanks, Chris.
Emily Flippen: Thanks, Chris.
Chris Hill: That's going to do it for this week's Motley Fool Money radio show. The show is mixed by Dan Boyd. I'm Chris Hill. Thanks for listening. We'll see you next time
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Chris Hill has positions in Adobe Inc., Amazon, Apple, Costco Wholesale, Microsoft, Shopify, Starbucks, Twilio, and Walt Disney. Dan Boyd has positions in Amazon, Costco Wholesale, and Walt Disney. Emily Flippen has positions in Shopify. Ron Gross has positions in Amazon, Apple, Costco Wholesale, Microsoft, Starbucks, Twilio, and Walt Disney. The Motley Fool has positions in and recommends Adobe Inc., Amazon, Apple, Costco Wholesale, FedEx, Microsoft, Netflix, Shopify, Starbucks, Twilio, and Walt Disney. The Motley Fool recommends Union Pacific and recommends the following options: long January 2023 $1,140 calls on Shopify, long January 2024 $145 calls on Walt Disney, long January 2024 $420 calls on Adobe Inc., long March 2023 $120 calls on Apple, short January 2023 $1,160 calls on Shopify, short January 2024 $155 calls on Walt Disney, short January 2024 $430 calls on Adobe Inc., short March 2023 $130 calls on Apple, and short October 2022 $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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In this podcast, Motley Fool senior analysts Emily Flippen and Ron Gross discuss: FedEx shares having a historically bad day amid talk of a recession. Chris Hill: Ron, Emily points to something which is pretty interesting in terms of Franzia's life and his career, which is that he was not beloved within the industry because he was very up front about the fact that a lot of wine is just wildly overpriced. Dan Boyd: Well, first, I want to point out that Motley Fool Producer Emeritus Mac Greer is probably doing back flips in his house right now to hear Costco mentioned on the show.
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John Ourand from the Sports Business Journal discusses Amazon's investments in NFL programming, Disney's thinking about ESPN, college football playoff expansion, and storylines for the MLB playoffs. The Motley Fool has positions in and recommends Adobe Inc., Amazon, Apple, Costco Wholesale, FedEx, Microsoft, Netflix, Shopify, Starbucks, Twilio, and Walt Disney. The Motley Fool recommends Union Pacific and recommends the following options: long January 2023 $1,140 calls on Shopify, long January 2024 $145 calls on Walt Disney, long January 2024 $420 calls on Adobe Inc., long March 2023 $120 calls on Apple, short January 2023 $1,160 calls on Shopify, short January 2024 $155 calls on Walt Disney, short January 2024 $430 calls on Adobe Inc., short March 2023 $130 calls on Apple, and short October 2022 $85 calls on Starbucks.
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Companies are hesitant to do it because even though we'd prefer they worry about their business and not their stock price, they do worry about the stock price and the analyst community, so I wouldn't be surprised if we start to see a lot of guidance being pulled. What you have here is another software company -- I call it software companies in particular, but companies have benefited from the pandemic pull-forward -- looking at their business, how it's grown over the past couple of years, and realizing that they've made mistakes by allowing themselves to get spread too thin and as a result, overhiring in areas that are maybe no longer necessary for the core functionality of the business. The Motley Fool recommends Union Pacific and recommends the following options: long January 2023 $1,140 calls on Shopify, long January 2024 $145 calls on Walt Disney, long January 2024 $420 calls on Adobe Inc., long March 2023 $120 calls on Apple, short January 2023 $1,160 calls on Shopify, short January 2024 $155 calls on Walt Disney, short January 2024 $430 calls on Adobe Inc., short March 2023 $130 calls on Apple, and short October 2022 $85 calls on Starbucks.
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One of the reasons the stock is down so much because investors and analysts just don't like when companies are forced to do that because it shows that they don't have visibility into their own business. Chris Hill: Well, not every company is cutting back on spending money. Chris Hill: Ron Gross, Emily Flippen, thanks for being here.
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19219.0
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2022-09-24 00:00:00 UTC
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A Stock's Price "Tells You Almost Nothing"
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AAPL
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https://www.nasdaq.com/articles/a-stocks-price-tells-you-almost-nothing
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nan
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nan
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Last time we played The Market Cap Game Show, returning champions Motley Fool analyst Yasser El-Shimy and Motley Fool contributor Brian Stoffel had to be content with a tie at five points apiece. Of course, we couldn't let that stand, so they're back to battle once more, and this time we have the listener-submitted "Stevens Sudden Death Rule" to prevent another draw. Will we need to invoke the new rule?
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on Sept. 21, 2022.
David Gardner: A lot of people, when they first think about stocks, tend to lock in on the share price. Maybe this was you or maybe this is a friend of yours. They'll say, "Well, Alphabet, is at $102 per share; that's expensive." By contrast, the same mentality when looking at penny stocks can get a lot more excited. Some penny stock they're seeing promoted by someone, perhaps some ne'er-do-well, and they'll think, Wow, the stock, is it a $1.02 -- not 102 like Alphabet -- $1.02." They'll think that's the one to buy, the $1.02, because if it just reaches $2, you double your money. Well, from the earliest days of The Motley Fool, we've tried to get people focused not on the price per share of the company, but rather on the market cap of the company. The price per share of a stock tells you almost nothing. It's the price to buy one share of the stock.
But how many shares does the company have outstanding? In math, we multiply two multiple cans together, but the price per share is only one multiple canned. If you don't know the other one, you can't do any meaningful math or figure out much of the world around you. Fools with a capital F know that you need to know the shares outstanding, and then multiply that by the price per share. Now you know the actual full value of the company, its full price tag, its market capitalization, market cap. Well, to teach this lesson inexorably and unforgettably, we invented a game. That's what I do. The date was Aug. 9, 2017. We've been playing every quarter since. You're playing too. You know this. Now into the sixth the year you've been playing along all the way through, I hope. It's that time of the year, again, that time of the quarter, again, 10 new stocks, two guests stars, both returning champions, actually three guest stars because you too. Only on this week's Rule Breaker Investing.
Welcome back to Rule Breaker Investing. It is the penultimate Wednesday of the quarter. Therefore, it is the Market Cap Game Show. Can't wait to share this with you. Bring back two guest stars, play along with you in the hour or so ahead. Before we start, I want to say just a few things. The first is next week is mailbag. Our email address is rbi@fool.com. Any reactions to share to this month's podcasts, including today's market cap game show. I led the whole month off with my pet peeves volumes seven, we did a review-a-palooza of 25 stock samplers, five stocks indistinguishable from magic, and five stocks with a tailwind blow. We'd love to hear from you. You can tweet us @RBI podcasts and we hope you'll subscribe to this podcast and listen in each and every week. I want to thank Mike Steele for constructive criticism to improve the Market Cap Game Show, Mike, you tweeted out to me a quarter ago. It takes too long to get into the game. You talk too much up front.
Get the game going already. Mike, because I told you one quarter ago, I agree. I hope even new listeners have by now grasped our rules here. You're guessing the market capitalization, the value of 10 different companies will feature this week. You score yourself for correctly agreeing with or correctly disagree with my celebrity contestants. If you're new, listen and play along, you'll get it. Now one final note, Brian Stoffel and Yasser El-Shimy, last quarter tied 5-5. Offline before the show one of them said, "It'd be really weird if we tied again." The other applied, "It would be really weird if we didn't tie again." Even though those two statements directly contradict each other, they're both right. I love paired contradictions. In a past great quotes episode I pointed to another such pair. There's an old line, we can all appreciate it, but you've heard this before. If thing is worth doing, it's worth doing well. Sure heck, but then there's the very opposite statement by G.K. Chesterton. "If it thing is worth doing, it's worth doing poorly." I can again say here, sure, in some contexts, that's also right. The lines say the opposite. They're both right. We shall see whether we tie this time or not. I promise simply that it'll be weird no matter what. Let's get started with returning champions, Brian Stoffel and Yasser El-Shimy.
[Music]
David Gardner: Brian Stoffel is a Fool contributor. He works primarily on write-ups for Motley Fool Stock Advisor and appears on Motley Fool Live two to three times per week. Yasser El-Shimy is an investment analysts at The Motley Fool, working on several services including Trend Spotter, Next-Gen Supercycle, and the Backstage portfolio. Gentlemen, welcome.
Brian Stoffel: Thanks David.
Yasser El-Shimy: Good to be here, David.
David Gardner: I talked about this a little bit at the start, but you're not allowed to tie this time unless if you do, we'll have extra fun and there will be no tie. You guys both have been briefed about that, you know that, and are ready. Let's get started with company No. 1. By a lot I have selected the first call to be made by Brian Stoffel. Brian here we go, company No. 1. Brian, are you a morning person or a night?
Brian Stoffel: I am definitely a morning person.
David Gardner: Even before I fully asked the question, you were already jumping. Does that mean that while most morning people may rise at six you're up at 04:30?
Brian Stoffel: Oh yeah, definitely does. It's an interesting dynamic because my wife is a night owl.
David Gardner: That is also true in my household, although we reverse the gender roles of your household. I think it's good to have one of each, frankly, because with kids and I know we've had kids young and older, but young kids especially, you want to have coverage. Most of the time. Brian, do you sleep well at night?
Brian Stoffel: I sleep well most nights, but there is the occasional night where I find myself up without anything to do and a little bored.
David Gardner: This isn't even relevant to the company we're about to talk about, but in my own case, I use an app off my Apple Watch to score my sleep each night. I think I'm addicted to having scoring systems all around me and too many areas of my life sleep, being one of them, Brian. But while most people may not use an app to give a three digit number to score their sleep each night, it's called Sleep Watch, I use it every day. Many others measure the quality of their mattress. That itself has become a cultural phenomenon. I think a lot of us might know the phrase sleep number. Well these days, sleep number gives itself to a public company. The ticker symbol is SNBR. Brian, have you ever used one of these mattresses?
Brian Stoffel: I have not. Although I've got to admit I'm interested when I see the commercials for them.
David Gardner: Because it's like a number 1 to 100 and you can dial 37 for you and 78 for her. Everybody sleeps soundly and it's just one mattress. It's all about your sleep number again, in an age addicted to scoring systems. An historian was pointing out recently to me that about 150 years ago no one really was scoring anything just about; there was no sense of big data or any likes or anything going on. We're all surrounded by scoring systems today, including underneath us at night for some of us. Brian Stoffel, what is the market cap range you would like to record Sleep Number Corporation, ticker symbol S-N-B-R?
Brian Stoffel: This is not a company I am familiar with, but I'm going to imagine that it's probably a smaller one that I might think, even though they've got enough money to get Dak Prescott on their commercials during football games. I'm going to say it's between $2.8 billion and $4.3 billion.
David Gardner: All right, $2.8 billion to $4.3 billion. Yasser, is this a stock you've ever researched or looked at or maybe a product that you use?
Yasser El-Shimy: I have not looked at it. Although I did think about it as a product I could potentially use. We all could use a good night of sleep for sure, but I imagined in my case, I'm not going to have that no matter what mattress I get, because I have two young kids. I'm going to go with outside the range.
David Gardner: You're going with outside the range. Now again, listeners at home, you're playing right along with us. You either say inside the range or outside the range, Yasser is going outside the range of $2.8 billion to $4.3 billion and [bell] he's right. Indeed, friends. I, myself was surprised how low the market cap has gone for this well-known consumer branded public company that has had some remarkable recent volatility. Sleep Number's market cap is $962.27 million as of market open Tuesday, Sept. 20. That is indeed outside Brian's range. Brian, I liked your answer. It felt comfortable and what I thought of sleep number and the truth is, as of about a year ago, that would've been a good call, but the stock has dropped from 150 down to 40 in the last year or so. Sleep Number has had a number done on it. I do want to point out over the 10-year run, this dock as well. It's a double from where it was five years ago from 20-40. But it had one of those COVID swoons in March of 2020 went from 60 to below 20 in one month, and then it went from below 20 to over 140 for that glorious year of something like summer 2020 to summer 2021, but not so good. Since one of the things guys we've talked about sometimes in the past is when you think a company has a higher market cap than it actually does, that can sometimes add a ticker to your watch list. Because Brian, if you thought this company, maybe a $3-billion company and by the way, it was not too long ago and it's one-third that maybe worth a look.
Brian Stoffel: I agree. It's not my investment, but I think that that thought recognition, that pattern recognition holds true.
David Gardner: And Brian, why does this one not really fit the Stoffel Folio?
Brian Stoffel: I don't see a ton of optionality for sleep number. I don't see them getting into cushions for cars or bring this to your sporting game and your butt won't be sore.
David Gardner: Well said, I'm not going to say anybody's but is sore because it's only one to nothing but Yasser one Brian, nothing. Let's move on to company No. 2. Yasser, did you ever follow the foolish four or dogs of the Dow? Are you aware of that strategy?
Yasser El-Shimy: I'm aware of the strategy, although I have not followed it as closely.
David Gardner: It first appeared in a book and the 1980s by Michael O' Higgins called beating the Dow and whether or not he invented it. It's not clear to me, we tweaked it a little bit and wrote about it as the foolish four in our first book, The Motley Fool Investment Guide, and the age-old practice is basically to look at the Dow Jones Industrials, find the ones that have performed the worst over the last year or three or five, however you want to do it? Then check the dividend yield to look for higher dividend yields and worst-performing stocks and then maybe to buy that, or at least consider buying that stock because these, after all, this I sometimes say, or the Unsinkable Molly Browns of American commerce, presumably if they're Dow Jones Industrials and if they've gotten beaten up and have attractive dividend yields, well, that might be a good list to beat the market and Michael O'Higgins showed in his book, and we updated the data in our initial one.
That sure enough, this has been a pretty good rinse and repeat way to beat the market. Now, the reason we eventually went away from it, one reason guys, you would know right away as with any regular listener, this podcast, back then we were much shorter term in our thinking and the idea of a new set of stocks to buy each year, sell out last year's, every year. That does a number on your tax bills and on your ability to compound at good rates. Not really fans of the so-called Foolish for back in the day or the Dow dogs anymore. But I've always still liked the idea and I'm glad we got to talk about it a little bit and share it out because I think it has a good underlying philosophy behind it. When you think of the Dow Jones Industrials, Yasser, without trying to quiz you because I don't think I do too well these days in which is in the 30, which aren't. Can you think of any really, really big medical companies that might come to mind, specifically ones that have a single syllable?
Yasser El-Shimy: Single syllable.
David Gardner: As a name. That starts with a letter M.
Yasser El-Shimy: Merck.
David Gardner: Good one You must be a professional. You nailed it. Ticker symbol, MRK, Merck, and company been at Dow Jones Industrial for a long time. More importantly, though, Yasser, we're concerned with the market cap today in the market cap range that you'd like to estimate for Merck. Again, ticker symbol, M-R-K.
Yasser El-Shimy: Wonderful. Like Brian before, this is not the company that I would have probably looked at doing my work. But Merck is a familiar household name of big pharmaceutical company and definitely one of those classic pharmaceutical companies in the Dow if you will. I'm going to give Brian a fairly generous range here and I'm going to say Merck's market cap is somewhere between $220 billion to $260 billion.
David Gardner: $220 billion to $260 billion. A $40 billion range to work with Brian, although in percentage terms not necessarily as generous as it sounds about a 20% or so parameter there. Brian Stoffel, listeners at home, Merck, $220 billion to $260 billion inside that range or outside that range.
Brian Stoffel: I'm going to say outside that range.
David Gardner: [Bell] Sure enough, you're right and we're tied one-to-one, not outside that range by much though. This one was close, Yasser, the market cap for Merck as trading opened yesterday, Tuesday, Sept. 20, $217.06 billion. It's outside the range of 220 to 260.
Yasser El-Shimy: I think I deserve a half a point for this one. The 2022 discount was the only reason I did that.
David Gardner: Merck, by the way, has been lifting its dividend about 10% a year or so over the last five years. The yield in the stock today, 3.2% for those yield hunters and those scoring at home. Guys, is this a stock that either of you owns?
Yasser El-Shimy: No, I don't.
David Gardner: Why not? This is a staple of American business, it is a company doing good work in this world, one that a lot of us grew up hearing about, even if it was a little opaque.
Yasser El-Shimy: I'm actually restricted from owning any pharmaceutical or food and beverage companies because my wife works at the FDA. But Merck would have definitely been one of those companies that I would have taken a look for at least my retirement portfolio for sure, but unfortunately, I can't.
David Gardner: Well, that's a really interesting answer, Yasser. Either I didn't know that or I'd forgotten that and between that and then Motley Fool restrictions that we have as employees, where if we mentioned a stock, for example, Sleep Number, on a podcast, we can't trade in advance of that or after that by a few days. Now, the direction. Yasser, are you able to buy any stocks?
Yasser El-Shimy: I am, just not in those categories. Sometimes the way we work at The Fool and we have all these restrictions, sometimes they just have to wait, it could of wait of a week and could be a few months, but eventually, I get my hands on those stocks.
David Gardner: Patience. Let's move on to company No. 3. We've got Brian one, Yasser one. Brian, do you make any concerted effort to stay fit?
Brian Stoffel: Yes.
David Gardner: What form does that take or forms?
Brian Stoffel: I go running about once every four days and I lift weights. I used to do a little bit more, but that pretty much eats up whatever time I might have available.
David Gardner: That's pretty impressive. Are you systematic with that four days? Do you circle it on your calendar? Do you start to feel an itch if you haven't run in five days? How does that play?
Brian Stoffel: I definitely feel an itch, but I don't circle it on my calendar. What the big thing is, is I start to feel like I need to if I haven't done it in some time.
David Gardner: Wonderful. Well, you've always looked trim to me, Brian, whether it was back in the day at Fool HQ when you came to work for a while full-time or as an older and yet still not that old gentleman approaching middle age with a little bit of a gray beard that you are scratching as we speak. You're in great shape and good for you. I'm curious, Do power your workouts with a proprietary, clinically proven formula at any point?
Brian Stoffel: This is so funny because I usually don't, but I will admit that I aim to get my best run at the year-end and always at the Turkey Trot. There's a Turkey Trot I always sign up for and I cheat because when I usually run, I'll do it in a fasted state, but when the Turkey Trot comes, I have snickers bar and I will have a Celsius drink to power me.
David Gardner: It does come in several delicious sparkling and non-carbonated flavors. Do you have a favorite flavor of choice for the Turkey Trot?
Brian Stoffel: I like the berry.
David Gardner: I have tried some of these, I like the orange. I haven't tried the berry. Have you tried the orange and you like the berry more?
Brian Stoffel: Yes.
David Gardner: I'm going to shift to berry next time. Thank you, Brian Stoffel. But I guess more to the point, the ticker symbol for Celsius Holdings is C-E-L-H. This is a stock, I never formerly recommended this myself, but there are a number of Fool analysts and stock pickers who are fans of this company have been. And man, talk about a stock that has lifted off in the last couple of years. It's had its volatility like all the rest, but this looks like a home run over the last few years. More to the point though, Brian Stoffel, what is the market cap range you'd like to accord Celsius Holdings ticker symbol C-E-L-H?
Brian Stoffel: We're going to go with $6.1 billion to $8.1 billion.
David Gardner: $6.1 billion to $8.1 billion, I like how you're rocking the point ones. That could be helpful or detrimental to Yasser. It's really hard to know how he's reacting to those right now. Yasser, 6.1-8.1 billion. On the face of it, a tight range of only two billion and yet a little bit more generous than you were giving Brian for your Merck, if we're scoring percentages, not points. Yasser, listeners at home, 6.1-8.1 billion is Celsius Holdings inside or outside that range?
Yasser El-Shimy: I'm going to go outside the range.
David Gardner: [Buzzer] It is indeed inside Brian's range, so Yasser, Brian scores that point. You said outside and boy, were you close to being right because the market cap for Celsius Holdings is $8.09 billion and it's almost like Brian Stoffel keeps up with these things and studies market caps in the wee hours of the morning.
Yasser El-Shimy: I think the stars are aligned against me today. This question, it's of $100 million, the previous question was $3 million or something like that. It's just crazy, come on.
Brian Stoffel: It's not even $100 million, it's $10 million.
Brian Stoffel: $10 million? Yes.
David Gardner: Good math, you've slipped that passed me yourself, Yasser. But Brian, you're absolutely right. Oh, my god, $10 million. Listeners at home again, if you said inside the range, give yourself a plus one. Brian, it seems like you have familiarity with this company. You're also a consumer of the product at least once a year. Is this a stock you own or follow closely because my golly, was that market cap close?
Brian Stoffel: Follow closely, yes, just because I think it's interesting because it's a consumer-facing brand and its only moat is its brand. That's why I'm not invested in it, but I like it and it is taking market share like crazy.
David Gardner: I'm not really following it, although I do use it from time to time. I haven't followed the stock. For those who haven't, you should know along with me that this stock was around $5 a share as 2020 began, today, the stock is trading at about $100 a share. We're talking about a 20-bagger over the last two and a half years and again, many of my favorite stocks aren't up that much. They're more like down 40% over the last year or two. This is a volatile stock. Celsius topping at just over 100 at the end of last year, bottoming this year closer to 40, but again, back up to 102. It's interesting, Brian, to think that this company whose products is, I would say, maybe less well-known than Sleep Number maybe it's just Sleep Number has been around longer, but the market cap, eight times Sleep Number's market cap. Any final thoughts about Celsius before we proceed to company No. 4?
Brian Stoffel: I'm very glad that you took the market caps at the beginning of the day because if right now Celsius is down even 1%, I think I would have lost that.
David Gardner: It's an actual point. The market not strong Tuesday at least as we're recording, so probably it was, but we're doing start of market trading on Tuesday as mentioned earlier. Let's move it on to company No. 4. How are you doing at home? If you're doing really well, you have three points. Yasser, now, as an American and I grew up in this country, I've spent my entire life in this country, basically, 56 years or so. It does seem to me that there is somewhat of a coastal bias felt by some in the U.S. I think that thinking goes that there's more business, there's more savvy, or more restaurant choices, or whatever it is on the coasts maybe because of geography, maybe because more people just go to the coasts of other places and hang there and the beach and others. As opposed to the Midwest or some might say, Middle America. Brian Stoffel, I'm not asking you this question, but I'm quite conscious that you are a Wisconsin man and I think a lot of us would say that as the middle of America. Yasser, there does seem to be some coastal buys felt by some of the U.S. Is there an Egyptian equivalent?
Yasser El-Shimy: For sure. We have this idea of Cairo versus the rest. Cairo being of course the capital city, it's a huge metropolis of over, almost 25 million people. Roughly one out of every four or five Egyptians resides in greater Cairo. There's definitely concentration of everything from colleges to businesses, and government offices in that city, and not so much if you travel even 100 miles outside.
David Gardner: Now I know you're not saying this, you didn't actually say this. You're not saying that there's not charm outside Cairo. There aren't great, amazing people and things happening in Egypt outside Cairo. You're not saying that?
Yasser El-Shimy: No, absolutely not. In fact, if I were to retire in Egypt in the future at some point, I probably would prefer to reside somewhere in the less densely populated cities of Egypt, either on the Red Sea or the Mediterranean Sea. That'll be my pick, not the hustle and bustle of Cairo.
David Gardner: That sounds amazing and I still haven't been to Egypt and thank you for sharing that, Yasser. Well, I guess the reason I'm asking about this, and I know Brian Stoffel will not only weigh in with his final guess, but I'd love to hear his viewpoint in a minute. But the reason I'm asking is because we're talking about a company whose name, and this is not one I'm familiar with. This is not a company that I've ever picked or researched. The name of the company is Mid-America Apartment Communities and the ticker symbol is M-A-A. It's a quick reminder, how do I find companies? Well for each market cap game show, I randomized from our Fool data base. We have a list of the companies that we favor and cover the most. I take the top 500 of those, I think of them as the Fool 500 and I randomized for that group and I happen to have come upon Mid-America Apartment Communities. It's a publicly traded REIT, that's a real estate investment trust. Mid-America is based in Memphis, Tennessee, it invests in apartments in the Southeastern and Southwestern United States. Before I ask you for your market cap range, Yasser, have you ever heard of or looked at Mid-America Apartment Communities?
Yasser El-Shimy: I did a while back. I was looking at various REITs and Middle America Apartments definitely came up as part of the high-quality REIT companies worthy of consideration.
David Gardner: Excellent. That means you have more clue about Mid-America Apartment Communities than I do. I love my Middle America, I just don't know my real estate investment trusts that well, but forget about me, Yasser. Let me turn to you now and ask you, what is your market cap range you'll give to Mid-America Apartment Communities, ticker symbol M-A-A?
Yasser El-Shimy: Sure. I will give a market cap range of $12.8 billion to $17.8 billion.
David Gardner: $12.8 billion to $17.8 billion. I noticed you rocking the 0.8 in the same way that on the previous question, Brian rocked the 0.1. Is this a little bit of psychological warfare I'm starting to pick up on?
Yasser El-Shimy: You will never know.
David Gardner: [Laughter] Players at home, Brian Stoffel, Yasser has stated $12.8 billion to $17.8 billion for this company which owns well as of December a year or two ago, 300 apartment communities containing over 100,000 apartment units. The largest owner of apartments in the United States, the seventh largest apartment property manager in the United States, Brian Stoffel, players at home inside Yasser's range, of 12.8-17.8 or outside that range?
Brian Stoffel: I feel like he's playing mind games with me because my guess was going to be much lower. But he gave me such a generous range that I'm going to say inside.
David Gardner: [Buzzer] It is outside that range. But once again, friends, and this is why Brian and Yasser are invited onto this show, and many of my past guests, these people are professionals, they're really good at this. I wouldn't have known a thing about Mid-America Apartment Communities market cap, but it is $19.06 billion. Outside the range, but again, not by much. Only about $1 billion outside range from 19.
Yasser El-Shimy: Giving you a taste of your own medicine, Brian.
Brian Stoffel: Yeah, that's fair.
David Gardner: [Laughter] Brian. What state were you born in?
Brian Stoffel: I was born in Wisconsin.
David Gardner: You identify as a Wisconsinite?
Brian Stoffel: Very much so. It annoys my wife quite a bit, but I do.
David Gardner: When I use the phrase Mid-America, what do you think of?
Brian Stoffel: I usually think of more plains states like less populated because I live near Milwaukee, it's a major metropolitan area. I usually think of farmland, more like where I went to college.
David Gardner: Farmland, and I've driven across some of Americans, certainly seen some of it, not all of it, it's beautiful.
Brian Stoffel: Especially during the summer.
David Gardner: Especially during the summer. It's also really important. We're finding, especially given some of the world events in 2022, the importance of food and making sure that we're well cared for, or if possible, that we can grow as much as we can ourselves. There are a lot of people who love to buy local and eat local. Are you one such?
Brian Stoffel: I tried to as much as I can.
David Gardner: But that may or may not include Celsius Holdings drinks once a year, which probably aren't produced in Milwaukee.
Brian Stoffel: When you talk about beverages in Wisconsin, it's just beer or water and that's about it.
David Gardner: Well, let's keep the game moving. Friends it is Brian two, Yasser two. We're not working toward a five-to-five tie, are we? Let's go to company No. 5. Brian, if you had to toss out a couple of, let's say, your highest-conviction winners for the long term -- one, two, or three stocks that you really believe in that are presumably in your portfolio with stronger positions, you may not think that they're going to skyrocket in the next year, but you have high conviction that this company will win over the only term that counts, the long term, throw us a few stock picks.
Brian Stoffel: The top three for me would be Amazon, MercadoLibre, and Axon Enterprise.
David Gardner: How about for the fun of it, a line or two elevate our pitching each one.
Brian Stoffel: Amazon with their fulfilment network plus AWS that's hard to beat. MercadoLibre it's much the same thing in South America, except instead of AWS it's their payment platform, Mercado Pago. And Axon is the closest thing to a functional monopoly in my portfolio.
David Gardner: I like all three of those companies. I think of each of them as a rule breaker unto itself. I certainly love the idea that this forms some of the bedrock of yours and your family's portfolio, is awesome. Thank you for sharing that, Brian. I will share out that in the Fool 500, one of the very highest-rated stocks of all is our next company. The ticker symbol is M-D-B. The company is MongoDB. Is this also in the Stoffel folio?
Brian Stoffel: It most definitely is.
David Gardner: I have a lot of the companies that we cover in my family portfolios, one or another of them. Yet, I don't always know the market cap, even of the stocks that I hold. It will be interesting to hear your range right now Brian for MongoDB ticker symbol M-D-B.
Brian Stoffel: My range is going to be $14.7 billion to $15.3 billion.
David Gardner: 14.7 to 15.3, by far, the narrowest range presented on this edition of the Market Cap Game Show. Anyway, thus far, Yasser players at home, $14.7 billion to $15.3 billion. Yasser, is MongoDB inside or outside Brian's range?
Yasser El-Shimy: Well, speaking of mind games, this is an awfully tight range right here and I see what you're trying to do, Brian. But you know, I'm not going to fall for it. I'm going to go with outside the range.
David Gardner: [Bell] It is indeed outside the range, though as I'm starting to become accustomed, not far outside another great stated range. The market cap as of the opening of Tuesday's trading Sept. 20 for MongoDB was $16.1 billion. Therefore, if you said outside a tight 14.7 to 15.3 range, you give yourself a plus one, players at home, and we're going to give you a plus one, Yasser, for that. How confident were you as you answered "outside the range," Yasser?
Yasser El-Shimy: I was about 80% confident. I knew that it was higher. I didn't realize how perfectly close it was to Brian's range, but I knew it was higher.
David Gardner: It should be pointed out with the market not having a very strong day yesterday, of course, we're taping this before we even know how the market closed on Tuesday, it might have ended up in Brian's range, but as things live, friends and as the rules have stated, this time it's outside. Yasser, we're going to be a plus one. You are at a 3-2 lead. Yasser, I somehow forced a couple of stock picks out of Brian Stoffel. Could I force a couple out of you using the same considerations?
Yasser El-Shimy: Of course. I would say that one of the companies that I have the highest conviction in and one that I don't even spend a lot of time thinking about, which is a good trade for a stock with high conviction, is The Trade Desk. It's a company that completely reinvented how digital advertisements are effectively traded between buyers and sellers. It has completely overcome, or maybe I shouldn't say completely, but it has definitely overcome the big challenges of Apple and Alphabet cracking down on cookies and other tracking software that advertisers love to have. A lot of advertisers are flocking toward The Trade Desk. That's one stock I like. Another stock would be Confluent, ticker symbol C-F-L-T. It's one of my highest-conviction stocks. I believe that data is the future. You started the show, David, you said we score everything, we keep numbers and everything. Confluent helps keep data moving within an enterprise. It's effectively a data-streaming platform. I believe that the way they have their proprietary software, Apache Kafka, that they've built, and customers love it, and I see a much brighter future ahead.
David Gardner: Well, thank you for that. We don't do five-stock samplers anymore on this podcast, but you guys just provided five pretty good stocks that I know a lot of our listeners either already own in some cases or I'm sure with interests will begin to research further. We're at halftime right now, guys, and I say, let's open up our halftime follies. I have a simple halftime question for you both. After all, the purpose of this podcast is to make the world smarter, happier, and richer. That's the purpose of The Motley Fool. One of the ways we make the world happier is occasionally we share out our best streaming entertainment ideas. We live in the age of capitalists streaming, arguably, there are too many shows that one could stream at this point and even more coming. Then there's YouTube, which aren't even professionally-produced -- in many cases -- streaming shows. And yet they get a lot of views, too. We are living in a video-centric age, fellows, I think you know that. But I thought I would ask. Let me turn to Brian first. What's a recent streaming show that has given you delight and you think listeners, if they haven't already watched, would enjoy?
Brian Stoffel: Think any listener who might have come of age in the 90s and is a sports fan would enjoy The Last Dance which chronicles the [Chicago] Bulls, their dynasty building up, falling apart. Being from Milwaukee, was huge in my upbringing because we always lost to them. But it's really fascinating and it's also really fascinating to go back and realize that Michael Jordan retired and went and played baseball for 18 months.
David Gardner: It is incredible to think back on it. I think he went to the Chicago White Sox, staying in town, and I remember he was in minor league ball. Did he ever get an official Major League at bat? I can't remember, Brian.
Brian Stoffel: No he didn't have an impact. He wouldn't have been in Double-A. according to the documentary. The reason he started in Double-A was because it was the only level that had the facilities to handle the media circus. It probably would have been better for him to start down in Single-A rookie ball.
David Gardner: Fantastic. Well, I've watched a portion of The Last Dance, like many shows I'm halfway through, and then got distracted by 14 other streaming shows. But I know it's a wonderfully produced show and I'm even a [University of North Carolina] Tar Heel. I shouldn't be a Michael Jordan fan except I showed up at North Carolina as a freshman the year after he left early for the NBA, so I never really got to cheer on Michael, and I always view it more as a Bull than a Tar Heel. But I know much of the world sees it differently anyway. Great show. Yasser, let me turn to you before we go back to the game show. Yasser, what's a streaming show you would recommend to give delight to Rule Breaker Investing listeners?
Yasser El-Shimy: Well, I'm a big fan of everything off-beat. Recently I caught up on Season 3 of a show called Barry. It's on HBO Max. If you want to see the story of a veteran who turned into an assassin and then tried to quit being an assassin in order to become an actor in L.A., That's the show for you.
David Gardner: I'm wondering, Yasser, how did you hear about Barry? I'm half curious, not just the shows we watch, but how we hear about the Bert keep-up.
Yasser El-Shimy: I actually don't necessarily read a lot on shows or go browsing the internet looking for show recommendations. Usually, what I do is I would browse through my favorite streaming apps and I would try and read the description for the show. If I feel that there's something there, I'll give it a try.
David Gardner: Well, Barry, which is the Bill Hader vehicle, I guess it's three seasons now I haven't watched that. I have heard good things. I'm a big Internet Movie Database fan, and 8.4 out of 10 from 80,000 voters is enough for me to know, that is quality and it's probably a show I need to be watching. Thank you for that, Yasser. Thank you, Brian. Without further ado, half time's over, let's go to company No. 6. While we're getting back to the serious stuff of the game show that we're playing, Yasser, I find myself still wanting to play another game, a metagame, a side game, if you will, a game of word association. Would you play this game with me briefly?
Yasser El-Shimy: I can try.
David Gardner: I will share with you a word or a phrase and you will simply say back the first or second thing that comes to mind as you hear these things. Let's go, rapid-fire here. Most beloved soccer or football team?
Yasser El-Shimy: A.S. Roma.
David Gardner: Thank you for that. Queen Elizabeth.
Yasser El-Shimy: The second.
David Gardner: Not particularly interesting, but it doesn't have to be. It's the word association game [laughs] came to mind. It makes sense. I got two more for you. No. 3, you're ready?
Yasser El-Shimy: Sure.
David Gardner: Plastics.
Yasser El-Shimy: Recycle.
David Gardner: My last one. You were supposed to say The Graduate, by the way, that was the Dustin Hoffman film where he gets pulled aside by the avuncular friend of his dad at the party is like "I got one word for you, kid. You ready?" Dustin Hoffman comes out with him and he says, "Yeah, what?" "Plastics." That's going to be the future, which in a lot of ways it has been. But my last one for you, Yasser, as we get closer to our company now, my last word, association game word for you is lasers.
Yasser El-Shimy: Lasers, weapons.
David Gardner: Well, they can take many forms and well, especially when I think about light sabers, which looks like a standing laser coming out of it's pommel. They can be weapons and they are lots of different things. Coherent Corp. also comes to mind for some people when they hear lasers. This is a company, a leader recently in a merger with II-VI, one of its competitors. It's now a larger merged company. The company took on the name Coherent Corp, officially recently, ticker symbol C-O-H-R. Yasser, you had just ended our last company description with one of your favorite companies, Confluent. I was thinking about how similar the word Coherent seems to Confluent. Have you ever looked into Coherent?
Yasser El-Shimy: I have not. I will admit that.
David Gardner: Well, that always makes the market cap game show more interesting. With that said, let me turn right back to Yasser. We're not playing word-association-game anymore, we're playing give us your best guess at the market cap range of this company. Again, it's Coherent Corp., ticker symbol, C-O-H-R. Yasser, your range, please.
Yasser El-Shimy: Sure. I will give a range of $14.5 billion to 16.5 billion.
David Gardner: $14.5 billion to $16.5 billion. Players at home, Brian Stoffel, is it inside that range or outside that range?
Brian Stoffel: I'm going to say outside the range.
David Gardner: [Bell] Sure enough, it is outside. In fact, this is the only real miss we've had in terms of the right-sizing for a company thus far. Yasser, I have to admit I haven't been following this company very carefully myself anymore. Had I been, I would know that the market cap was $5.43 billion, which is what the market cap was as of yesterday for Coherent. Therefore, if you answered outside that range, players at home and Yasser as well, you would have gotten a plus one.
Yasser El-Shimy: I had expected it to be less than 50% of Arista Networks, which works in a similar business that I felt that it would be on the bigger side because of the merger. But you know what? I was way off.
David Gardner: You were at this time, and I easily could have been myself, but more importantly, Brian did say outside that range, and so I think friends, we're back to a tie. Brian three, Yasser three. Let's move on to company No. 7. Brian Stoffel, what are a couple of, in your mind, typical reasons that companies change their names?
Brian Stoffel: Branding. I guess they're related. One is branding, the other is a change in focus. If something bad happens, I remember there was an airline that changed its name when it had an accident. But the other could be branding because like Axon, the company I just talked about it used to be Taser, and they changed their focus and became Axon, focus on body cameras.
David Gardner: Great example. Can you think of any other big, higher-profile renamings far bigger, let's go with, than Taser in recent market history?
Brian Stoffel: The two that come to mind are Alphabet and Meta.
David Gardner: Those are really, really big. Without giving away the market cap here, the one I'm thinking of, not quite as large as those companies, because I never really followed Square that carefully, I was certainly familiar with the technology, I was certainly a user, but never did recommend a winning stock a lot of the time, a volatile stock. But Square, do we all know this? Listener at home, wherever you are across this fair planet, did you know? You probably did. Square renamed itself recently to Block. Just Block. Block, Inc, B-L-O-C-K. In the same way Facebook went to Meta, Square became Block. Brian, is this a stock that you own?
Brian Stoffel: It is not a stock that I've owned, and it's been a while since I've looked at it.
David Gardner: Which is again, what we want from our experts, occasionally, for them to be maybe asleep at the switch, here and there makes the game more fun. You guys have been so good with the market cap ranges. I'm wondering, Brian, whether you can be really good with Block, Inc. What is the market cap for Block, Inc? Get the ticker symbol here, friends, S-Q.
Brian Stoffel: The last I checked, it was down a ton from where it had been. It's been a while since then, but I'm going to guess big range here, $45 billion to $70 billion.
David Gardner: That is a big range. It'll be interesting to see whether it's inside or outside that range. Listeners at home, prepare your answer. I know you're always making the call before I read off the official result, you're playing along with us. Yasser, Brian said $45 billion to $70 billion, inside or outside that range?
Yasser El-Shimy: Well, I know that it's definitely outside the range. Brian was absolutely right that the stock had been absolutely pummeled over the past year or so, and I believe that has taken it below this range.
David Gardner: [Bell] You are indeed correct, although not by much. Once again, the market cap for Block, which has retained a Square-like ticker symbol of S-Q, the market cap is $40.09 billion. $40 billion, just outside the 45-to-70 generous range that Brian offered. By saying outside, Yasser, you've taken a 4-3 lead. Players at home, if you said outside, give yourself a plus one. Yes, this stock has been very volatile. Hugely to the upside through the middle of the last decade, the stock made a meteoric rise from the nearly single-digits now looking backward from these prices around 2016, it almost touched 300, last year, it is down to 62 as we're talking. It's lost about four-fifths of its value in about one year. Brian, does that make you bullish?
Brian Stoffel: I have a really hard time understanding what the moat of a company like Square is.
David Gardner: I really like your focus on moat. I know your work and some of your frameworks and how you think, Brian. Many who've watched you on Motley Fool Live will expect that from you. Many who are hearing you for the first time might not realize that this is how you roll. What do you mean by moat exactly, and why is that so important for you?
Brian Stoffel: Well, it's something I learned when I invested in Whole Foods, is that you can have a great company with a great product that does a lot of good for the world. But if it can be copied just like you can go to a farmer and ask them to plant organic food and say you'll sell it in your grocery store, then you can be undercut on price. All the value goes to the world, which is a good thing, but it doesn't go to the company or its investors.
David Gardner: Understood. Was that really the stock that changed your mind? Do you still feel burnt by Whole Foods? Do you shop at Whole Foods?
Brian Stoffel: I will. We don't have one terribly close to us. I don't feel burned by Whole Foods because Whole Foods was just doing its thing. It was fulfilling its mission. I'm all for that. More than anything, I think I've made a ton of money off of that lesson because it's made me avoid stocks that don't have a moat. If it can be copied, it probably will be copied eventually.
David Gardner: Well said. There are some things you can't copy, like I was thinking of Amazon, we have Jeff Bezos, you don't. That's one of our favorite moat examples, probably The Fool, and it's about humanity, and human capital, as opposed to any number you might find on the balance sheet or income statement. Well, that's brief grandstanding on my part. But thank you, Brian, for sharing that viewpoint. It is 4-3 right now. Yasser, you have taken a one-point lead. I need to turn back to you, sir, as we move to stock No. 8.
Yasser El-Shimy: Don't worry, we're going to tie again.
David Gardner: It's starting to feel more and more that way. Yasser, what are a couple of reasons that companies have multiple ticker symbols?
Yasser El-Shimy: Multiple ticker symbols. I know this is common with specs, for example, where you have two classes stocks with warrants and the regular. But it's also common for companies that have two or more classes of shares to trade with different ticker symbol, for example, Zillow Group can trade under the ticker symbol Z or Z-G, depending on which class of stock you are.
David Gardner: It's funny to me. First of all, I wish that that hadn't happened because it causes online sites that feature the stock market, for example, fool.com comes to mind, to have to reflect the same company, basically, with two different ticker symbols and usually two different market caps as well, which can be slightly confusing, but even just having to repeat. It's almost like as a baseball fan looking down a box score and seeing that you have both the Chicago White Sox and the Chicago Cubs playing against, I don't know, let's go with the Milwaukee Brewers. It's just confusing. Why do we have the same thing repeated twice? It causes all problems with market data. I really wish founders -- and I love you founders -- I really wish you didn't create your own separate class of stock with a separate ticker symbol. I'm not going to talk about specs, but I am glad, Yasser, that you mentioned Zillow Group because it turns out that is company No.8. Now, I am going to use for our purposes here -- and the market caps are different, although only slightly -- we're going to use Z-G for this one, Zillow Group.
I think a lot of us recognize Zillow is the online site that gives prices to our neighbors' houses or that vacation house you dream of one day, and that price may or may not be accurate. It's the Zestimate. In general, I'm a fan of Zestimates. People in the real estate industry, especially Realtors, often aren't. Although ironically, there are huge fans often of Zillow because Zillow butters and spread mainly by people who are Realtors advertising for their local ZIP codes. It's generally a win-win, Zillow with some escapades as a buyer of real estate and then trying to sell real estate. That didn't work out very well in the last few years. Very disappointing from a standpoint of optionality, the company's certainly having been repriced. Here, I am talking more about it. It's one of those companies I own, which is why I guess I can be valuable in the topic. But forget about my view of Zillow Group or what I might think about it. I'm much more interested right now, Yasser, in your market cap range for Zillow Group, ticker symbol Z-G.
Yasser El-Shimy: Right. Not Z, Z-G. Got it.
David Gardner: That's right, and this makes a huge amount of difference, and that's where my tongue-in-cheek is.
Yasser El-Shimy: Yeah. Let's go with a tight range here. Let's say $6.9 billion to $7.96 billion.
David Gardner: $6.9 billion to $7.9 billion. I try not to tilt anybody, especially my listeners or the person about the guests, but I'm going to say that's not a bad range at all. I mean, this is fairly consistent with where we are in this show that it seems like Yasser and Brian -- and I hasten to add they have no idea what companies I'm going to pick and they are not looking at any browsers, anything there in soundproof, video proof chambers that we've sequestered them in their own homes somehow -- and so they don't know what's coming and yet you guys are pretty good at this, and I'm going to say that was pretty good again. Brian Stoffel, players at home. Yasser said $6.9 billion to $7.9 billion. I noticed the repetition again of the single decimal point, a little bit of a shot across the bow. I think Brian Stoffel. But Brian, inside or outside that range.
Brian Stoffel: I'm going to go outside the range.
David Gardner: [Bell] And you've done well to do so because once again, it is outside the range, but only barely of an already very impressively tight range. So Zillow Group's market cap is $8.55 billion. If you'd looked at just ticker symbol Z, it's more like 8.01, but both of those are outside a very tight range of $6.9 billion to $7.9 billion. Players at home. If you said outside the range, give yourself a plus one. I'm going to give a plus one to my friend Brian Stoffel. My friends, it's four to four.
Yasser El-Shimy: I told you we were going to tie again.
Brian Stoffel: David, there's an episode of Ted Lasso where the team ties its first, like, eight games of the second season, and then they finally lose. And they have a party, and they said, "What's the party for?" They said, "We didn't tie for the first time." Even if we don't tie and I lose, I still think I'm going to throw a party.
David Gardner: Well, you are both very worthy competitors, and while we may just have spoiled season two of Ted Lasso, shame on you listeners if you haven't already gotten through season three. So giddy-up. All right, let's move on to our final two companies. It's four to four. We're going to turn next to Brian and ask you kind of offbeat questions. It doesn't fit with the rest of the conversation today. Brian, have you ever had a particularly good or particularly bad experience buying a car?
Brian Stoffel: No, I can't say I have. I've only bought one car ever and it was pretty straightforward.
David Gardner: New or used?
Brian Stoffel: It was new ,and it's still the car I own today. I've had it for 10 years.
David Gardner: Did you do research ahead of time? Did you take their first offer? Did you walk away angrily and come back a week later? What was the approach?
Brian Stoffel: No. I did my research. I knew what a fair price was, Went in, we were lucky enough to have the cash saved up to pay for it. We left that day with the car, honestly, about an hour-and-a-half later.
David Gardner: I love it. There is something about that Midwestern charm. These things are cliches and stereotypes would probably not fully true. But when you say honestly, I'm just picturing you, an honest man, going into a Midwestern car dealership, having an honest conversation, you said luckily, but there's not luck there. You had the cash because you'd saved it, and I know you live below your means and you're very good at that. And honestly, you came by an honest car in an honest place and it sounds like it's a happy ending, and this lightly relates to the company we're talking about, but then not directly because it sounds like you didn't buy that by auction.
Brian Stoffel: Did not.
David Gardner: You didn't go into an online site and started looking around and poking around and trying to figure out whether you would buy that used car on Copart.com. Copart is a global provider of online vehicle-auction and remarketing services. It's not as much of a consumer brand per se. A lot of automotive resellers work with Copart. It is a very impressive, long-standing company. It was an S&P 500 company today, not to give away the market caps, and people in Dallas, Texas, may know the company since its locally headquartered there. Brian, have you ever looked at Copart?
Brian Stoffel: I have not.
David Gardner: Well, I'm sorry to hear that as I know, you have your market beater name, but you missed one there because Copart really has been a spectacular performer and I can think of it dearly, as pretty sure I picked it for Motley Fool Stock Advisor many years ago. I don't own it myself though. It's a reminder so many of us at The Motley Fool are often picking more stocks than we ourselves can even own, having picked hundreds of stocks over the years. How many times do I say, "Man, I wish I'd actually bought that one that I picked." But if you've been listening to The Motley Fool, are following us for any meaningful period of time, you'll realize that how we performed for you with our stock picks for many of us is much more important than how our own portfolios do. So I do love that we picked Copart, ticker symbol C-P-R-I-T, for Stock Advisor members even though I've never had the benefit of owning it myself. But more importantly, let's talk about the market cap of Copart. And again, Brian, this is your final chance to state a range for this episode of The Market Cap Game Show. Brian, what's your market cap range for Copart?
Brian Stoffel: So it's going to be $25.1 billion to $38.7 billion.
David Gardner: 25.1 to, did you say, 38.7?
Brian Stoffel: That's correct.
David Gardner: Are you allowing such a generous range because you find yourself less sure than some of the other ranges you've specified, or are you playing games with our listeners?
Brian Stoffel: Wouldn't you like to know?
David Gardner: All right, Yasser, players at home, Brian has said $25.1 billion to $38.7 billion for Copart, ticker symbol C-P-R-I-T. Yasser, inside or outside that range?
Yasser El-Shimy: Yeah. About sets off on David. I'm going to go with inside the range.
David Gardner: [Bell] Indeed, it is $26.52 billion is the market cap of Copart, so it was inside the range. Yasser, you have taken a five-to-four lead, creating a showdown around company No. 10. But before we go there, Yasser, have you had a particularly good or bad experience ever buying a vehicle?
Yasser El-Shimy: So I would say I've bought and sold cars at least four times so far, and my first experience trading in a car at the dealership convinced me that I just never want to do this again. I mean, everything about the used-car dealership makes for a horrible experience from the haggling to the long waits to just being surprised with last-minute details you didn't think about. All of that makes for a pretty abysmal experience, which is why I have been buying and selling my cars online since.
David Gardner: Well, I hear you, and Copart, of course, does a huge business there. Again, a lot of this is just facing the dealers themselves, but 80% of the company's revenue comes from the service fees just collected for the use of its online auction platform. Does it sound like eBay? It's kind of the same business but aimed at the automotive industry, so an interesting long performing winning stock. I'm seeing here 10 years ago, the stock was around 15. Today it's at 109. Ain't bad for a pretty quiet, sleepy company that most people can't name or certainly give the ticker symbol for, but now all of us know the market cap. Yep, $26.52 billion.
All right, let's move to the dramatic conclusion. We're not going to have a tie this episode. Brian, you can either guess wrong now and just not put us through the tiebreaker or guess right and force our hand at our first-ever Rule Breaker Investing Market Cap Game Show tiebreaker. Which one do you think you're going to do, Brian, before we start?
Brian Stoffel: I mean, if history is any indication, it's going to be a tie.
David Gardner: If we were doing this before you came on the show here, you've done this. This is your fourth time now and the previous three scores were ...
Brian Stoffel: ... Five to five, five to five, and five to five.
David Gardner: Here we go. Yasser, five, Brian four. Turning now to Yasser. Yasser, before you came to the Fool -- and you've been with us for a couple of years and it's been a delight to work with you, even though I'm not as active or regular as I once was, I'm a Fool for life as you well know, co-chairman of our company, love what you're doing and what we're all doing to make the world smarter, happier, and richer. But Yasser, before you came to the Fool, did you ever listen to this podcast?
Yasser El-Shimy: Yeah, all the time. In fact, it's one of the main reasons I decided to apply for a job at The Motley Fool -- is listening to the podcast.
David Gardner: I'm delighted to know that. Did you listen to the early days of The Market Cap Game Show?
Yasser El-Shimy: Yes. I mean, I would say I've started listening to the RBI podcasts around 2015-2016, and yeah, so I've heard my fair share.
David Gardner: Do you remember that Matt Argersinger was my first guest. And back then it wasn't a head-to-head game, it was just me quizzing Matt, those first early episodes?
Yasser El-Shimy: Yes, I do.
David Gardner: Do you remember that there was an iconic company that I would randomize, but if we keep coming back and each time somehow, Matt, would get it wrong and he'd always under-guess it. Do you remember that?
Yasser El-Shimy: You know, that one is not coming to mind. I know the one that tripped Emily [Flippen] a lot, and that was Etsy.
David Gardner: She continued Matt Argersinger's tradition because that is sure enough. The company and I did happen to randomize this one out of the full 500 for this show. This was not intentional even the ordering was randomized. So for us to close this episode of The Market Cap Game Show, hailing back to our earliest origins at this moment of high drama, is very random and very special indeed.
Brian Stoffel: It's worth noting that when I tied Brian Feroldi the second time, Etsy was the tiebreaker.
David Gardner: Perfect. I have a hard time remembering all of our past game shows, and I'm not even a professional game show host. Think of people who do this every day and people like, do you remember that thing three or four 17 years ago and I had forgotten but I'm so glad you said that, Brian. And now, let me turn to Yasser and ask you, Yasser, what is your range of the market cap for Etsy ticker symbol E-T-S-Y?
Yasser El-Shimy: I will go with $23 billion to $26 billion.
David Gardner: Just sticking with some round numbers this time, keeping it simple.
Yasser El-Shimy: Yes.
David Gardner: I'm not going to get in the way of drama. I know when to sit back, get away from the mic, and just let the game take over -- $23 billion to $26 billion: Brian Stoffel, listeners at home, inside or outside that range?
Brian Stoffel: I'm going to go outside.
David Gardner: [Bell] You've done it, Brian. You've done it. You got it.
Brian Stoffel: What for?
David Gardner: In fact, it wasn't even close because the actual market cap for Etsy is $14.7 billion. The tradition of overestimating, thinking that Etsy is much bigger than it actually is, has persisted to the present day. Let's be very clear, fellow Fools, Etsy was worth a lot more until recently. It's one of those many stocks as a Rule Breaker that had a great run throughout much of the last decade. And yet in the last year, the stock has dropped from its all-time high, at the end of last year, at 300. It's down closer to 100 as we speak. Its market cap, as I mentioned, $14.72 billion, which is outside the range of 23-26. You guys have done it. You forced my hand.
Brian Stoffel: Happened again.
David Gardner: Well, this is a first, and I'm really glad in a way that it happened because it had to, although it didn't have to at all. It lets me feature the mailbag entry of a concerned listener who reached out after last quarter's show and said, "Guys, there's a better way to end this than just say five to five." His name is Sam Stevens and I shared this on the Mailbag episode earlier this year but I'm going to reshare it because I don't expect everybody remembers all my mailbag. Sam Stevens, who by the way was a former Motley Fool intern and obviously a longtime Fool and a listener of the Rule Breaker Investing podcasts, had this to say. He said" "Hi, David. Here's a tiebreaker idea for The Market Cap Game Show. An 11th stock is presented. To ensure no advantage is given to either player by going first or second, both players must simultaneously and secretly write down a range of market caps. The contestants then reveal their written answers one after another, but the correct answer is, of course, not revealed until after."
Now, if one contestant provided a correct range, the other didn't, well, of course, that contestant wins. You can include yourself, all listeners everywhere at home, in this very same exercise. You too, dear listener, are also writing down your market cap range. If one of you is right, the others are wrong, that person, of course, wins. If everyone's right, if both in this case are correct, well, the tighter range wins. Sam's smart. He was a Motley Fool intern, he's grown up now. Hey, Sam, if no one's correct, well, the range with the closest bound to the correct answer will win. Sam concluded, by the way of his Mailbag item earlier this year, you can actually play the whole game this way. But he said, "I like it better as a tiebreaker." I do, too. We don't want to make this too complex. Anyway, Sam Stevens, thank you for leaning in. This is known, starting today, as the Stevens Sudden Death Rule. It is being invoked for the first time right here, right now. Gentlemen, players at home, are we all ready?
Brian Stoffel: I'm ready.
David Gardner: As they say, sometimes this on the raceways, "Gentlemen, start your market caps." This company is one of those cloud-based businesses that people loved for awhile and seemingly now hate or have hated recently. This is one, my brother, Tom Gardner, CEO at The Motley Fool, I believe he had recently a chance to interview, talk a little bit with the brass of this company. He came away impressed, I'll say that. This is not a stock I've recommended, I don't know it very well. But a lot of people these days, at least those who follow the stock market, might've heard the name Cloudflare. If they're really good, they would know the ticker symbol is N-E-T. Cloudflare is our 11th Stevens Sudden Death Rule company. Rick Engdahl, cue the fake Jeopardy waiting music for about 10 seconds so all players everywhere can think of their market cap range for Cloudflare, ticker symbol N-E-T.
David Gardner: Now, I do want to mention that we are now 3:08 p.m. Eastern on Sept. 20. This is a live market cap as we record because I wasn't expecting to have to do an 11th company and I don't know what Cloudflare's market cap was at the start of trading today. This one is about as live as we get on these one-day delayed podcasts. By the way, a lot of podcasts, and I'm sometimes on other people's podcasts and I love doing that. I'll say, I'll be in your podcasts. Then they're like, great. We do the podcast and they're like, "This will be on in seven weeks," and [laughs] I say: "What? Wait, seven weeks? Everything will have changed by then." I take pride, Rick Engdahl, my producer to humble ever does his, but we turn this baby around in 24 hours every single week, eighth year in counting. Rick's really good. That's why I say this is about as live as this show can ever get. I'm going to ask Brian Stoffel first to provide his range of market cap for Cloudflare.
Brian Stoffel: My range, if it comes in there, is $19 billion to $30 billion.
David Gardner: $19 billion to $30 billion. Listeners at home, I know you're holding up your piece of paper or shouting out your range as we speak. I turn to Yasser El-Shimy. Yasser, your range of market cap for Cloudflare, ticker symbol N-E-T.
Yasser El-Shimy: My range for Cloudflare is $35 billion to $45 billion. If this is $32.5 billion, I'm going to throw my headset.
David Gardner: Well, you are both worthy contestants and even better than that, you are noble men. That's what I want to do on this earth. I want to hang out with people who are noble of all genders, all generations, and all cultures. I love it. I thank you both for your work. I'm here to announce that we have our first-ever tiebreaker winner, and it is Brian Stoffel, who guessed a slightly wider range, but more importantly a lower range. Because Cloudflare, having lost a lot of value from, I don't know, like 180 last year, is down to about 61 as we speak. That puts its market cap at $20.73 billion, inside Brian's 19-30 range, short of Yasser's range. Congratulations both to Yasser and to Brian, our champion, this show and everybody who played along at home, presumably some of which got an even better score than our contestants. Yes, that happens, too. Brian, thank you so much. One quick line from you as champion.
Brian Stoffel: I don't think it counts as a champion if you've tied every time, but I'll take it.
David Gardner: Honorable in victory and noble in defeat. In fact, some people love to cheer for the guy who just came up short. We see ourselves in that person sometimes, Yasser. I think it's fair to call you a Rookie of the Year of this game. This is which number Market Cap Game Show for you?
Yasser El-Shimy: I believe this is my third or fourth.
David Gardner: We'll do with that.
Yasser El-Shimy: Probably.
David Gardner: I think it's third.
Yasser El-Shimy: 1,1, tied 2, I guess, and lost on the sudden death.
David Gardner: How about a line of encouragement to the losers? I include myself everywhere.
Yasser El-Shimy: Well, keep your chin up. It's OK to lose. You win some, you lose some. The journey is more important than the destination. I've had a lot of fun playing this game with you, David, of course, but also with Brian and Tim Beyers before Brian. I look forward to coming back in the, hopefully, not too distant future.
David Gardner: Wonderful. Thank you, Yasser. You are an excellent returning champion and returning tie-er. You performed wonderfully.
I want to thank both of my talented contestants and, of course, all three of us along with my pal, Rick. Thank you for playing along at home. It's a delight to do this four times a year. I said at the top to the guys offline before we started. It's only four times a year, therefore by definition, it's special because there's scarcity to these times together, and I have so much fun. Thank you, again, to Yasser, to Brian, and to you at home for playing The Market Cap Game Show. Fool on.
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. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Brian Stoffel has positions in Alphabet (A shares), Alphabet (C shares), Amazon, Axon Enterprise, Cloudflare, Inc., MercadoLibre, and MongoDB. David Gardner has positions in Alphabet (A shares), Alphabet (C shares), Apple, MercadoLibre, Zillow Group (A shares), and Zillow Group (C shares). Yasser El-Shimy has positions in Alphabet (A shares), Amazon, Axon Enterprise, Block, Inc., Cloudflare, Inc., Confluent, Inc., Etsy, MercadoLibre, and The Trade Desk. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Arista Networks, Axon Enterprise, Block, Inc., Celsius Holdings, Inc., Cloudflare, Inc., Confluent, Inc., Etsy, MercadoLibre, Merck & Co., Meta Platforms, Inc., Mid-America Apartment, MongoDB, The Trade Desk, Zillow Group (A shares), and Zillow Group (C shares). The Motley Fool recommends Copart, Sleep Number Corp, and eBay and recommends the following options: long March 2023 $120 calls on Apple, short March 2023 $130 calls on Apple, and short October 2022 $50 calls on eBay. 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's not clear to me, we tweaked it a little bit and wrote about it as the foolish four in our first book, The Motley Fool Investment Guide, and the age-old practice is basically to look at the Dow Jones Industrials, find the ones that have performed the worst over the last year or three or five, however you want to do it? David Gardner: Well, I'm sorry to hear that as I know, you have your market beater name, but you missed one there because Copart really has been a spectacular performer and I can think of it dearly, as pretty sure I picked it for Motley Fool Stock Advisor many years ago. Rick Engdahl, cue the fake Jeopardy waiting music for about 10 seconds so all players everywhere can think of their market cap range for Cloudflare, ticker symbol N-E-T. David Gardner: Now, I do want to mention that we are now 3:08 p.m. Eastern on Sept. 20.
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Last time we played The Market Cap Game Show, returning champions Motley Fool analyst Yasser El-Shimy and Motley Fool contributor Brian Stoffel had to be content with a tie at five points apiece. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Arista Networks, Axon Enterprise, Block, Inc., Celsius Holdings, Inc., Cloudflare, Inc., Confluent, Inc., Etsy, MercadoLibre, Merck & Co., Meta Platforms, Inc., Mid-America Apartment, MongoDB, The Trade Desk, Zillow Group (A shares), and Zillow Group (C shares). The Motley Fool recommends Copart, Sleep Number Corp, and eBay and recommends the following options: long March 2023 $120 calls on Apple, short March 2023 $130 calls on Apple, and short October 2022 $50 calls on eBay.
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Last time we played The Market Cap Game Show, returning champions Motley Fool analyst Yasser El-Shimy and Motley Fool contributor Brian Stoffel had to be content with a tie at five points apiece. David Gardner: [Laughter] Players at home, Brian Stoffel, Yasser has stated $12.8 billion to $17.8 billion for this company which owns well as of December a year or two ago, 300 apartment communities containing over 100,000 apartment units. David Gardner: All right, Yasser, players at home, Brian has said $25.1 billion to $38.7 billion for Copart, ticker symbol C-P-R-I-T. Yasser, inside or outside that range?
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Brian here we go, company No. I haven't followed the stock. David Gardner: I like all three of those companies.
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19220.0
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2022-09-23 00:00:00 UTC
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Technology Sector Update for 09/23/2022: QCOM, AAPL, AVLR, XLK, SOXX
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-09-23-2022%3A-qcom-aapl-avlr-xlk-soxx
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nan
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nan
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Technology stocks were declining pre-bell Friday. The Technology Select Sector SPDR ETF (XLK) fell 0.9% and the Semiconductor Sector Index Fund (SOXX) was down about 1.2%.
Qualcomm (QCOM) said its automotive business pipeline grew to $30 billion due to increased demand for its Snapdragon Digital Chassis product. Qualcomm was recently slipping past 1%.
Apple Music (AAPL) is sponsoring the NFL's Halftime Show of Super Bowl LVII on Feb. 12, 2023, the NFL said. Apple was down more than 1%.
Avalara (AVLR) was advancing marginally after saying the waiting period for its planned acquisition by Vista Equity Partners under the Hart-Scott-Rodino Antitrust Improvements Act has expired. The deal is scheduled to close before the end of 2022, subject to Avalara stockholder approval.
The views and 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 Music (AAPL) is sponsoring the NFL's Halftime Show of Super Bowl LVII on Feb. 12, 2023, the NFL said. Qualcomm (QCOM) said its automotive business pipeline grew to $30 billion due to increased demand for its Snapdragon Digital Chassis product. Avalara (AVLR) was advancing marginally after saying the waiting period for its planned acquisition by Vista Equity Partners under the Hart-Scott-Rodino Antitrust Improvements Act has expired.
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Apple Music (AAPL) is sponsoring the NFL's Halftime Show of Super Bowl LVII on Feb. 12, 2023, the NFL said. Technology stocks were declining pre-bell Friday. The Technology Select Sector SPDR ETF (XLK) fell 0.9% and the Semiconductor Sector Index Fund (SOXX) was down about 1.2%.
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Apple Music (AAPL) is sponsoring the NFL's Halftime Show of Super Bowl LVII on Feb. 12, 2023, the NFL said. The Technology Select Sector SPDR ETF (XLK) fell 0.9% and the Semiconductor Sector Index Fund (SOXX) was down about 1.2%. Qualcomm (QCOM) said its automotive business pipeline grew to $30 billion due to increased demand for its Snapdragon Digital Chassis product.
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Apple Music (AAPL) is sponsoring the NFL's Halftime Show of Super Bowl LVII on Feb. 12, 2023, the NFL said. Technology stocks were declining pre-bell Friday. The Technology Select Sector SPDR ETF (XLK) fell 0.9% and the Semiconductor Sector Index Fund (SOXX) was down about 1.2%.
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19221.0
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2022-09-23 00:00:00 UTC
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Why Apple Stock Slumped Friday Morning -- but Shouldn't Have
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AAPL
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https://www.nasdaq.com/articles/why-apple-stock-slumped-friday-morning-but-shouldnt-have
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nan
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nan
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What happened
Shares of Apple (NASDAQ: AAPL) tumbled Friday morning, falling as much as 2.2%. As of 11:57 a.m. ET, the stock was still down 1.8%.
The broader market indexes were caught in a downdraft, which no doubt contributed to the iPhone maker's slump. However, even as the tech giant fell, there were several reports that held positive news for the company -- and shareholders.
So what
Earlier this month, Apple announced the latest version of its popular earbuds, the second generation of the AirPods Pro. The earliest reviews of the fan-favorite devices are in -- and users are raving.
CNET called them "the best small earbuds you can buy," citing the improved sound, active noise cancelation, and better battery life, saying they "deliver exceptionally good performance for their size." At the same time, TechCrunch said "you won't want to take them out of your ears," also applauding the better sound, active noise cancelation, transparency mode, and the case that supports wireless charging. These accolades came as AirPods hit stores today.
It's worth noting that Apple's commitment to technological innovation has helped it take a majority share of the U.S. headphone market.
In perhaps even bigger news, the company has inked a multiyear deal with the National Football League, making Apple Music the new sponsor of the NFL Super Bowl halftime show. The centerpiece of the annual championship football game each February, the halftime show is an extravagant event known for hosting some of the biggest performers in the industry, making it a perfect showcase for Apple's subscription music service.
Now what
It's important to put these developments in the context of Apple's broader business. The iPhone was responsible for more than 54% of Apple's $282 billion sales revenue so far this year, so the importance of the company's flagship device can't be overstated.
That said, Apple has worked aggressively at expanding into services, its Apple Music subscription being one such example. The moves are designed to decrease its reliance solely on the iPhone. The company's unrelenting progress thus far makes Apple stock a buy.
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Danny Vena has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of Apple (NASDAQ: AAPL) tumbled Friday morning, falling as much as 2.2%. CNET called them "the best small earbuds you can buy," citing the improved sound, active noise cancelation, and better battery life, saying they "deliver exceptionally good performance for their size." In perhaps even bigger news, the company has inked a multiyear deal with the National Football League, making Apple Music the new sponsor of the NFL Super Bowl halftime show.
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What happened Shares of Apple (NASDAQ: AAPL) tumbled Friday morning, falling as much as 2.2%. At the same time, TechCrunch said "you won't want to take them out of your ears," also applauding the better sound, active noise cancelation, transparency mode, and the case that supports wireless charging. The centerpiece of the annual championship football game each February, the halftime show is an extravagant event known for hosting some of the biggest performers in the industry, making it a perfect showcase for Apple's subscription music service.
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What happened Shares of Apple (NASDAQ: AAPL) tumbled Friday morning, falling as much as 2.2%. The company's unrelenting progress thus far makes Apple stock a buy. See the 10 stocks *Stock Advisor returns as of August 17, 2022 Danny Vena has positions in Apple.
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What happened Shares of Apple (NASDAQ: AAPL) tumbled Friday morning, falling as much as 2.2%. ET, the stock was still down 1.8%. That's right -- they think these 10 stocks are even better buys.
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19222.0
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2022-09-23 00:00:00 UTC
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US STOCKS-Wall St drops 2% as recession worries mount
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-drops-2-as-recession-worries-mount
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nan
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nan
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By Ankika Biswas and Devik Jain
Sept 23 (Reuters) - Wall Street's main indexes slid more than 2% on Friday as investors feared the U.S. Federal Reserve's hawkish policy actions to quell inflation could trigger a recession and dent corporate earnings.
The Dow .DJI was briefly down more than 20% from its Jan. 4 record all-time closing peak of 36,799.64 points. A close of 20% or more below that level would confirm the blue-chip index was in a bear market, according to a widely used definition. The S&P 500 .SPX and the Nasdaq .IXIC are already in a bear market.
The S&P 500 and the Nasdaq are also closing in on mid-June lows - their weakest points of the year - with the benchmark index now 0.7% away from that grim milestone. The Dow is trading at November 2020 lows.
After enjoying hefty gains for last two years, Wall Street has been rocked in 2022 amid worries about a host of issues including the Ukraine conflict, China COVID-19 flare ups, energy crisis in Europe and tightening financial conditions across the globe.
A half dozen central banks including in the United States, Britain, Sweden, Switzerland and Norway delivered rate hikes this week to fight inflation, but it was the Fed's signal that it expects high U.S. rates to last through 2023 that caught markets off guard.
"Markets are digesting the global central bank hiking and messaging of 'higher for longer' as inflation fighting is front-and-center," Mimi Duff, managing director at GenTrust, said in a note.
"We are in information-gathering mode at this point – some of the Fed hike/restrictive actions flow through nearly immediately (mortgage rates higher for instance), while some other factors take more time to flow through the economy – like layoffs, hiring plans, business investment etc."
Dire outlooks from a handful of companies - most recently FedEx Corp FDX.N and Ford Motor Co F.N - have also added to woes in a seasonally weak period for markets.
The S&P 500's estimated earnings growth for the third quarter is at 4.6% down from 5% last week, according to Refinitiv data.
"The likelihood of a U.S. recession in 2023 is increasing given the hawkish Fed. While it is widely understood that earnings estimates are too high given such recession risk, the market is unlikely to be able to look through falling earnings," Citigroup said in a note.
Goldman Sachs cut its year-end target for the benchmark S&P 500 index .SPX by about 16% to 3,600 points, a 1.9% decline from current levels.
At 12:38 p.m. ET, the Dow Jones Industrial Average .DJI was down 683.65 points, or 2.27%, at 29,393.03, the S&P 500 .SPX was down 90.12 points, or 2.40%, at 3,667.87, and the Nasdaq Composite .IXIC was down 259.07 points, or 2.34%, at 10,807.74.
All the three indexes were set for sharp weekly losses.
All the 11 major S&P sectors declined, led by a 7% slide in energy .SPNY shares. Banks .SPXBK lost 3.5%.
Rate-sensitive technology and growth stocks dropped with Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Amazon.com AMZN.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O down between 1.3% and 4%.
Shares of Costco Wholesale Corp COST.O shed 2.4% after the big-box retailer reported a fall in its fourth-quarter profit margins.
The CBOE volatility index .VIX, also known as Wall Street's fear gauge, rose to a three-month high of 30.87 points.
Declining issues outnumbered advancers for a 13.09-to-1 ratio on the NYSE and a 6.44-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week high and 144 new lows, while the Nasdaq recorded seven new highs and 740 new lows.
(Reporting by Ankika Biswas and Devik Jain in Bengaluru; Editing by Shounak Dasgupta and Maju Samuel)
((Ankika.Biswas@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Rate-sensitive technology and growth stocks dropped with Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Amazon.com AMZN.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O down between 1.3% and 4%. By Ankika Biswas and Devik Jain Sept 23 (Reuters) - Wall Street's main indexes slid more than 2% on Friday as investors feared the U.S. Federal Reserve's hawkish policy actions to quell inflation could trigger a recession and dent corporate earnings. After enjoying hefty gains for last two years, Wall Street has been rocked in 2022 amid worries about a host of issues including the Ukraine conflict, China COVID-19 flare ups, energy crisis in Europe and tightening financial conditions across the globe.
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Rate-sensitive technology and growth stocks dropped with Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Amazon.com AMZN.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O down between 1.3% and 4%. By Ankika Biswas and Devik Jain Sept 23 (Reuters) - Wall Street's main indexes slid more than 2% on Friday as investors feared the U.S. Federal Reserve's hawkish policy actions to quell inflation could trigger a recession and dent corporate earnings. A half dozen central banks including in the United States, Britain, Sweden, Switzerland and Norway delivered rate hikes this week to fight inflation, but it was the Fed's signal that it expects high U.S. rates to last through 2023 that caught markets off guard.
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Rate-sensitive technology and growth stocks dropped with Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Amazon.com AMZN.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O down between 1.3% and 4%. By Ankika Biswas and Devik Jain Sept 23 (Reuters) - Wall Street's main indexes slid more than 2% on Friday as investors feared the U.S. Federal Reserve's hawkish policy actions to quell inflation could trigger a recession and dent corporate earnings. A half dozen central banks including in the United States, Britain, Sweden, Switzerland and Norway delivered rate hikes this week to fight inflation, but it was the Fed's signal that it expects high U.S. rates to last through 2023 that caught markets off guard.
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Rate-sensitive technology and growth stocks dropped with Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Amazon.com AMZN.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O down between 1.3% and 4%. By Ankika Biswas and Devik Jain Sept 23 (Reuters) - Wall Street's main indexes slid more than 2% on Friday as investors feared the U.S. Federal Reserve's hawkish policy actions to quell inflation could trigger a recession and dent corporate earnings. The S&P 500 and the Nasdaq are also closing in on mid-June lows - their weakest points of the year - with the benchmark index now 0.7% away from that grim milestone.
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19223.0
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2022-09-23 00:00:00 UTC
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Why Meta Platforms Stock Fell Early on Friday
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AAPL
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https://www.nasdaq.com/articles/why-meta-platforms-stock-fell-early-on-friday
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nan
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nan
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What happened
Shares of Meta Platforms (NASDAQ: META) slipped on Friday, falling as much as 2.5%. As of 1:05 p.m. ET, the stock was still down 2%.
The market downdraft no doubt helped aid the stock's decline, but one specific catalyst that sent the social media titan lower was word that it was on the receiving end of yet another privacy-related lawsuit.
So what
Facebook and Apple (NASDAQ: AAPL) have been in a long-running spat involving the iPhone maker's iOS privacy update last year that forced users to actively consent to being tracked across apps and websites. A new lawsuit, filed by Facebook and Instagram users, alleges Meta continued to track them -- even after they opted out, according to a report by Bloomberg.
The complaint, filed in the U.S. District Court for the Northern District of California, charges that the company used Facebook's in-app browser to sidestep Apple's privacy measures, and perform unauthorized data collection in the process.
Data privacy researcher Felix Krause first discovered the workaround, revealing that the app tracked activity using JavaScript code, which not only tracked website visits but could also capture usernames and passwords.
Facebook has actively campaigned against Apple's privacy changes, asserting that the move is causing it to lose out on roughly $10 billion this year in lost digital advertising revenue.
Now what
This is just the latest black eye for Meta for alleged privacy violations. The most public of these is the Cambridge Analytica scandal that alleged Facebook gave unauthorized third parties access to its user data. The company is still in the midst of lawsuits relating to that case.
These continued invasions of user privacy are having lasting repercussions. A number of well-recognized companies are removing the ability to log into websites using Facebook credentials, rather than generating a new username and password, further shrinking the funnel by which Meta collects data.
These issues, combined with growing competition and the faltering economy, have weighed on Meta. In the second quarter, it reported the first-ever year-over-year revenue decline in the company's history, a performance it expects to repeat in Q3.
These problems aside, the company remains extremely profitable and generates tons of cash flow. For investors willing to hold their noses, Meta stock is still a buy.
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 August 17, 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. Danny Vena has positions in Apple and Meta Platforms, Inc. The Motley Fool has positions in and recommends Apple and Meta Platforms, Inc. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
So what Facebook and Apple (NASDAQ: AAPL) have been in a long-running spat involving the iPhone maker's iOS privacy update last year that forced users to actively consent to being tracked across apps and websites. The market downdraft no doubt helped aid the stock's decline, but one specific catalyst that sent the social media titan lower was word that it was on the receiving end of yet another privacy-related lawsuit. A number of well-recognized companies are removing the ability to log into websites using Facebook credentials, rather than generating a new username and password, further shrinking the funnel by which Meta collects data.
|
So what Facebook and Apple (NASDAQ: AAPL) have been in a long-running spat involving the iPhone maker's iOS privacy update last year that forced users to actively consent to being tracked across apps and websites. A new lawsuit, filed by Facebook and Instagram users, alleges Meta continued to track them -- even after they opted out, according to a report by Bloomberg. The complaint, filed in the U.S. District Court for the Northern District of California, charges that the company used Facebook's in-app browser to sidestep Apple's privacy measures, and perform unauthorized data collection in the process.
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So what Facebook and Apple (NASDAQ: AAPL) have been in a long-running spat involving the iPhone maker's iOS privacy update last year that forced users to actively consent to being tracked across apps and websites. 10 stocks we like better than Meta Platforms, Inc. See the 10 stocks *Stock Advisor returns as of August 17, 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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So what Facebook and Apple (NASDAQ: AAPL) have been in a long-running spat involving the iPhone maker's iOS privacy update last year that forced users to actively consent to being tracked across apps and websites. ET, the stock was still down 2%. A new lawsuit, filed by Facebook and Instagram users, alleges Meta continued to track them -- even after they opted out, according to a report by Bloomberg.
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19224.0
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2022-09-23 00:00:00 UTC
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The Next Apple Could Rise From This Brand-New VR Tech
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AAPL
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https://www.nasdaq.com/articles/the-next-apple-could-rise-from-this-brand-new-vr-tech
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
One of the best applications of virtual and extended reality (XR) is for work. And I fully expect consumers to interact with VR not with headsets, but with immersive experiences outside of the hardware currently on the market.
Think of the iPhone and how it made smartphones ubiquitous – it was convenient. In much the same way, plugging into the metaverse via augmented and extended reality requires convenience for the consumer. To this end, we’ve seen one application that shows promise. It’s a desktop monitor that curves around you to create a huge field of vision immersing you in extended reality.
I think that’s how people will plug into the metaverse.
In the same vein, lenses are another convenient solution for XR. Imagine being able to quickly put on a pair of lightweight glasses that feed you augmented/virtual reality experiences. This type of hardware has a lot of potential, which is why Snap Inc (SNAP) is leveraging this technology, along with myriad others.
Many empires will be built on top of the hardware solution that makes AR/VR a ubiquity. And the company that does that will be the next Apple (AAPL).
Catch this week’s full episode at Hypergrowth Investing on YouTube!
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
The post The Next Apple Could Rise From This Brand-New VR Tech appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And the company that does that will be the next Apple (AAPL). And I fully expect consumers to interact with VR not with headsets, but with immersive experiences outside of the hardware currently on the market. It’s a desktop monitor that curves around you to create a huge field of vision immersing you in extended reality.
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And the company that does that will be the next Apple (AAPL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips One of the best applications of virtual and extended reality (XR) is for work. In much the same way, plugging into the metaverse via augmented and extended reality requires convenience for the consumer.
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And the company that does that will be the next Apple (AAPL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips One of the best applications of virtual and extended reality (XR) is for work. And I fully expect consumers to interact with VR not with headsets, but with immersive experiences outside of the hardware currently on the market.
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And the company that does that will be the next Apple (AAPL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips One of the best applications of virtual and extended reality (XR) is for work. In much the same way, plugging into the metaverse via augmented and extended reality requires convenience for the consumer.
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19225.0
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2022-09-23 00:00:00 UTC
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Baseball-New York AG asks MLB and Apple to let more fans watch Yankees game
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AAPL
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https://www.nasdaq.com/articles/baseball-new-york-ag-asks-mlb-and-apple-to-let-more-fans-watch-yankees-game
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nan
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nan
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Sept 23 (Reuters) - New York Attorney General Letitia James has asked Major League Baseball and Apple to allow Friday's Yankees game, in which Aaron Judge will look to tie the AL home run record, to be aired on the team-owned YES Network.
As it stands, the only way to watch the broadcast of the game against the visiting Boston Red Sox is on streaming service Apple TV+.
"History is in the making as Aaron Judge electrifies Yankees fans, and everyone who loves baseball," James said in a release.
"To deny millions of New Yorkers, and fans around the nation, the opportunity to watch as Aaron Judge steps up to the plate, is wrong and unfair," she said.
"That is why I am calling on Apple and the MLB to reach a fair accommodation with the YES Network so that fans can watch what we all hope will be history made this evening."
YES primarily serves New York City and the surrounding areas.
An MLB spokesman did not have any immediate comment on the request but in a news release this week about the Yankees broadcast schedule, MLB noted that "Friday Night Baseball" on Apple TV+ is free and available to anyone with internet access across devices where Apple TV+ can be found.
Apple did not immediately respond to a request for comment.
Judge hit his Major League-leading 60th home run on Tuesday, tying the mark set by Yankees great Babe Ruth, and is now one big swing shy of Roger Maris's 61-year-old American League record for home runs in a single season.
(Reporting by Rory Carroll in Los Angeles, editing by Ed Osmond)
((Rory.Carroll@thomsonreuters.com; 503-830-8017;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Sept 23 (Reuters) - New York Attorney General Letitia James has asked Major League Baseball and Apple to allow Friday's Yankees game, in which Aaron Judge will look to tie the AL home run record, to be aired on the team-owned YES Network. "To deny millions of New Yorkers, and fans around the nation, the opportunity to watch as Aaron Judge steps up to the plate, is wrong and unfair," she said. "That is why I am calling on Apple and the MLB to reach a fair accommodation with the YES Network so that fans can watch what we all hope will be history made this evening."
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Sept 23 (Reuters) - New York Attorney General Letitia James has asked Major League Baseball and Apple to allow Friday's Yankees game, in which Aaron Judge will look to tie the AL home run record, to be aired on the team-owned YES Network. "History is in the making as Aaron Judge electrifies Yankees fans, and everyone who loves baseball," James said in a release. An MLB spokesman did not have any immediate comment on the request but in a news release this week about the Yankees broadcast schedule, MLB noted that "Friday Night Baseball" on Apple TV+ is free and available to anyone with internet access across devices where Apple TV+ can be found.
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Sept 23 (Reuters) - New York Attorney General Letitia James has asked Major League Baseball and Apple to allow Friday's Yankees game, in which Aaron Judge will look to tie the AL home run record, to be aired on the team-owned YES Network. An MLB spokesman did not have any immediate comment on the request but in a news release this week about the Yankees broadcast schedule, MLB noted that "Friday Night Baseball" on Apple TV+ is free and available to anyone with internet access across devices where Apple TV+ can be found. Judge hit his Major League-leading 60th home run on Tuesday, tying the mark set by Yankees great Babe Ruth, and is now one big swing shy of Roger Maris's 61-year-old American League record for home runs in a single season.
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Sept 23 (Reuters) - New York Attorney General Letitia James has asked Major League Baseball and Apple to allow Friday's Yankees game, in which Aaron Judge will look to tie the AL home run record, to be aired on the team-owned YES Network. "History is in the making as Aaron Judge electrifies Yankees fans, and everyone who loves baseball," James said in a release. An MLB spokesman did not have any immediate comment on the request but in a news release this week about the Yankees broadcast schedule, MLB noted that "Friday Night Baseball" on Apple TV+ is free and available to anyone with internet access across devices where Apple TV+ can be found.
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19226.0
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2022-09-23 00:00:00 UTC
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Wall Street tests June lows on recession worries
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AAPL
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https://www.nasdaq.com/articles/wall-street-tests-june-lows-on-recession-worries
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nan
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nan
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By Ankika Biswas and Devik Jain
Sept 23 (Reuters) - Wall Street's main indexes fell on Friday as investors fretted over the prospect of an economic downturn and a hit to corporate earnings from the U.S. Federal Reserve's aggressive policy tightening moves to quell inflation.
The Dow .DJI breached its mid-June lows on an intraday basis to touch 29,643.93 points and hit a near-two year low.
The S&P 500 .SPX and the Nasdaq .IXIC are also closing in on mid-June lows, their weakest points for the year.
Both the S&P 500 and the Nasdaq are already in bear market and down more than 22% and 30%, respectively, so far this year, amid worries about a host of issues including the Ukraine conflict and tightening financial conditions across the globe.
The U.S. central bank raised rates by a widely expected 75 basis points on Wednesday and signaled a longer trajectory for policy rates, dashing hopes that the Fed expects to get inflation under control in the near term.
"The most recent Fed actions leave us with the feeling that the end of the rate rises is not near," said Rick Meckler, a partner at Cherry Lane Investments in New Vernon, New Jersey.
"There is very little positive news right now and it could lead to a sort of a final selloff ... it's certainly possible that we could be approaching the near-term lows."
Dire outlooks from a handful of companies - most recently FedEx Corp FDX.N and Ford Motor Co F.N - have also added to woes in a seasonally weak period for markets.
Goldman Sachs cut its year-end 2022 target for the benchmark S&P 500 index .SPX by about 16% to 3,600 points, a 2.5% decline from current levels.
At 10:08 a.m. ET, the Dow Jones Industrial Average .DJI was down 408.50 points, or 1.36%, at 29,668.18, the S&P 500 .SPX was down 65.07 points, or 1.73%, at 3,692.92, and the Nasdaq Composite .IXIC was down 220.27 points, or 1.99%, at 10,846.54.
All the three indexes were set for sharp weekly losses.
Technology and growth stocks slid with megacap names including Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Amazon.com AMZN.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O all down more than 1%.
All the 11 major S&P sectors declined in early trading, led by a 5.6% drop in energy .SPNY shares. Banks .SPXBK fell 1.6%.
Costco Wholesale Corp COST.O shed 2.4% after the big-box retailer reported a fall in its fourth-quarter profit margins.
The CBOE volatility index .VIX, also known as Wall Street's fear gauge, rose to 28.72 points.
Meanwhile, Fed Chair Jerome Powell is set to give opening remarks on the transition to a post-pandemic economy at an event at 2 p.m. ET.
Declining issues outnumbered advancers for a 11.33-to-1 ratio on the NYSE and a 6.67-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week high and 125 new lows, while the Nasdaq recorded seven new highs and 558 new lows.
(Reporting by Ankika Biswas and Devik Jain in Bengaluru; Editing by Shounak Dasgupta)
((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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Technology and growth stocks slid with megacap names including Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Amazon.com AMZN.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O all down more than 1%. By Ankika Biswas and Devik Jain Sept 23 (Reuters) - Wall Street's main indexes fell on Friday as investors fretted over the prospect of an economic downturn and a hit to corporate earnings from the U.S. Federal Reserve's aggressive policy tightening moves to quell inflation. Both the S&P 500 and the Nasdaq are already in bear market and down more than 22% and 30%, respectively, so far this year, amid worries about a host of issues including the Ukraine conflict and tightening financial conditions across the globe.
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Technology and growth stocks slid with megacap names including Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Amazon.com AMZN.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O all down more than 1%. By Ankika Biswas and Devik Jain Sept 23 (Reuters) - Wall Street's main indexes fell on Friday as investors fretted over the prospect of an economic downturn and a hit to corporate earnings from the U.S. Federal Reserve's aggressive policy tightening moves to quell inflation. The Dow .DJI breached its mid-June lows on an intraday basis to touch 29,643.93 points and hit a near-two year low.
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Technology and growth stocks slid with megacap names including Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Amazon.com AMZN.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O all down more than 1%. The U.S. central bank raised rates by a widely expected 75 basis points on Wednesday and signaled a longer trajectory for policy rates, dashing hopes that the Fed expects to get inflation under control in the near term. ET, the Dow Jones Industrial Average .DJI was down 408.50 points, or 1.36%, at 29,668.18, the S&P 500 .SPX was down 65.07 points, or 1.73%, at 3,692.92, and the Nasdaq Composite .IXIC was down 220.27 points, or 1.99%, at 10,846.54.
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Technology and growth stocks slid with megacap names including Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Amazon.com AMZN.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O all down more than 1%. By Ankika Biswas and Devik Jain Sept 23 (Reuters) - Wall Street's main indexes fell on Friday as investors fretted over the prospect of an economic downturn and a hit to corporate earnings from the U.S. Federal Reserve's aggressive policy tightening moves to quell inflation. The S&P 500 .SPX and the Nasdaq .IXIC are also closing in on mid-June lows, their weakest points for the year.
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19227.0
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2022-09-23 00:00:00 UTC
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Wall St tumbles as investors fret on rate hikes and recession
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AAPL
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https://www.nasdaq.com/articles/wall-st-tumbles-as-investors-fret-on-rate-hikes-and-recession
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nan
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By David French
Sept 23 (Reuters) - Wall Street's main indexes all tumbled to close well down on Friday, as rattled investors continued to reposition themselves amid fears the U.S. Federal Reserve's hawkish rate policy will help tip the American economy into recession.
The Dow .DJInarrowly avoided ending more than 20% lower than its Jan. 4 record all-time closing peak of 36,799.64 points, meaning the blue-chip index did not attain a bear market label, according to a widely used definition.
The S&P 500 .SPX and the Nasdaq .IXIC are already in a bear market.
After enjoying hefty gains for last two years, Wall Street has been rocked in 2022 by worries about a host of issues including the Ukraine conflict, the energy crisis in Europe, China's COVID-19 flare ups, and tightening financial conditions across the globe.
A half dozen central banks, including in the United States, Britain, Sweden, Switzerland and Norway, delivered rate hikes this week to fight inflation, but it was the Fed's signal that it expects high U.S. rates to last through 2023 that caught markets off guard.
"There had been some optimists out there saying that inflation may be coming under control but the Fed effectively told them to sit down and shut up," said David Russell, VP of market intelligence at TradeStation Group.
"The Fed is trying to rip the band-aid off, trying to kill inflation while the jobs market is still strong."
Dire outlooks from a handful of companies have also added to woes in a seasonally weak period for markets. Having withdrawn its earnings forecast last week, FedEx Corp FDX.N outlined on Thursday cost cuts of up to $2.7 billion after falling demand hammered first-quarter profits.
The delivery giant's stock slumped in Friday trading.
The S&P 500's estimated earnings growth for the third quarter is at 4.6% down from 5% last week, according to Refinitiv data.
Goldman Sachs cut its year-end target for the benchmark S&P 500 index .SPX by about 16% to 3,600 points.
"We're having everyone reassess exactly how far the Fed will go, and that's troubling for the economy," said Ed Moya, senior market analyst at OANDA.
"It's becoming the base case scenario that this economy is going to have a hard landing, and that is a terrible environment for U.S. stocks."
According to preliminary data, the S&P 500 .SPX lost 62.49 points, or 1.69%, to end at 3,694.32 points, while the Nasdaq Composite .IXIC lost 193.70 points, or 1.75%, to 10,873.10. The Dow Jones Industrial Average .DJI fell 473.55 points, or 1.57%, to 29,603.13.
All three indexes also recorded sharp weekly losses.
All the 11 major S&P sectors declined, led by a slide in energy .SPNY shares. Oil and gas-related stocks were pummeled by the decline in crude prices, which fell in response to concerns about demand in a recessionary environment and the strong U.S. dollar. O/R
Oilfield services were particularly hit, with Halliburton Co HAL.N, Schlumberger SLB.N and Helmerich and Payne Inc HP.N slumping.
Rate-sensitive technology and growth stocks dropped with Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Amazon.com AMZN.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.Oall fell.
Shares of Costco Wholesale Corp COST.Odropped after the big-box retailer reported a fall in its fourth-quarter profit margins.
The CBOE volatility index .VIX, also known as Wall Street's fear gauge, rose to a three-month high.
(Reporting by Ankika Biswas and Devik Jain in Bengaluru and David French in New York; Editing by Marguerita Choy)
((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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Rate-sensitive technology and growth stocks dropped with Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Amazon.com AMZN.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.Oall fell. By David French Sept 23 (Reuters) - Wall Street's main indexes all tumbled to close well down on Friday, as rattled investors continued to reposition themselves amid fears the U.S. Federal Reserve's hawkish rate policy will help tip the American economy into recession. The Dow .DJInarrowly avoided ending more than 20% lower than its Jan. 4 record all-time closing peak of 36,799.64 points, meaning the blue-chip index did not attain a bear market label, according to a widely used definition.
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Rate-sensitive technology and growth stocks dropped with Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Amazon.com AMZN.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.Oall fell. By David French Sept 23 (Reuters) - Wall Street's main indexes all tumbled to close well down on Friday, as rattled investors continued to reposition themselves amid fears the U.S. Federal Reserve's hawkish rate policy will help tip the American economy into recession. According to preliminary data, the S&P 500 .SPX lost 62.49 points, or 1.69%, to end at 3,694.32 points, while the Nasdaq Composite .IXIC lost 193.70 points, or 1.75%, to 10,873.10.
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Rate-sensitive technology and growth stocks dropped with Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Amazon.com AMZN.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.Oall fell. By David French Sept 23 (Reuters) - Wall Street's main indexes all tumbled to close well down on Friday, as rattled investors continued to reposition themselves amid fears the U.S. Federal Reserve's hawkish rate policy will help tip the American economy into recession. The Dow .DJInarrowly avoided ending more than 20% lower than its Jan. 4 record all-time closing peak of 36,799.64 points, meaning the blue-chip index did not attain a bear market label, according to a widely used definition.
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Rate-sensitive technology and growth stocks dropped with Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Amazon.com AMZN.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.Oall fell. The Dow .DJInarrowly avoided ending more than 20% lower than its Jan. 4 record all-time closing peak of 36,799.64 points, meaning the blue-chip index did not attain a bear market label, according to a widely used definition. stocks."
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19228.0
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2022-09-23 00:00:00 UTC
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US STOCKS-Wall St slumps as investors fret on rate hikes and recession
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-slumps-as-investors-fret-on-rate-hikes-and-recession
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nan
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By David French
Sept 23 (Reuters) - Wall Street's main indexes slumped to close well down on Friday, as rattled investors continued repositioning themselves to reflect fears the U.S. Federal Reserve's hawkish rate policy to curb inflation will push the American economy into recession.
The Dow .DJI narrowly avoided ending more than 20% lower than its Jan. 4 record all-time closing peak of 36,799.64 points, meaning the blue-chip index did not attain a bear market label, according to a widely used definition.
The S&P 500 .SPX and the Nasdaq .IXIC are already in a bear market.
However, all three indexes suffered heavy weekly declines. The Nasdaq dropped 5.03% - its second straight week falling by more than 5% - with the S&P down 4.77% and the Dow 4% lower.
After enjoying hefty gains for last two years, Wall Street has been rocked in 2022 by worries about a host of issues including the Ukraine conflict, the energy crisis in Europe, China's COVID-19 flare ups, and tightening financial conditions across the globe.
A half dozen central banks, including in the United States, Britain, Sweden, Switzerland and Norway, delivered rate hikes this week to fight inflation, but it was the Fed's signal that it expects high U.S. rates to last through 2023 that caught markets off guard.
"There had been some optimists out there saying that inflation may be coming under control but the Fed effectively told them to sit down and shut up," said David Russell, VP of market intelligence at TradeStation Group.
"The Fed is trying to rip the band-aid off, trying to kill inflation while the jobs market is still strong."
Dire outlooks from a handful of companies have also added to woes in a seasonally weak period for markets. Having withdrawn its earnings forecast last week, FedEx Corp FDX.N outlined on Thursday cost cuts of up to $2.7 billion after falling demand hammered first-quarter profits.
The delivery giant's stock slumped 3.4% to its lowest close since June 30, 2020.
The S&P 500's estimated earnings growth for the third quarter is at 4.6% down from 5% last week, according to Refinitiv data.
Goldman Sachs cut its year-end target for the benchmark S&P 500 index .SPX by about 16% to 3,600 points.
"We're having everyone reassess exactly how far the Fed will go, and that's troubling for the economy," said Ed Moya, senior market analyst at OANDA.
"It's becoming the base case scenario that this economy is going to have a hard landing, and that is a terrible environment for U.S. stocks."
The Dow Jones Industrial Average .DJI fell 486.27 points, or 1.62%, to 29,590.41, the S&P 500 .SPX lost 64.76 points, or 1.72%, to 3,693.23 and the Nasdaq Composite .IXIC dropped 198.88 points, or 1.8%, to 10,867.93.
All the 11 major S&P sectors declined, led by a 6.8% slide in energy shares .SPNY. Oil and gas-related stocks were pummeled by the decline in crude prices, which fell in response to concerns about demand in a recessionary environment and the strong U.S. dollar. O/R
Oilfield services were particularly hit, with Helmerich and Payne Inc HP.N down 11.2% and Schlumberger SLB.N dropping 8.4%. Halliburton Co HAL.N declined 8.7%, to record its lowest finish since Jan. 3.
Rate-sensitive technology and growth stocks dropped with Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Amazon.com AMZN.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.Oall fell between 1.3% and 4.6%.
Shares of Costco Wholesale Corp COST.O dropped 4.3% after the big-box retailer reported a fall in its fourth-quarter profit margins.
The CBOE volatility index .VIX, also known as Wall Street's fear gauge, rose to a three-month high of 29.92.
Volume on U.S. exchanges was 13.29 billion shares, compared with the 11.11 billion average for the full session over the last 20 trading days.
The S&P 500 posted no new 52-week highs and 151 new lows; the Nasdaq Composite recorded 10 new highs and 823 new lows.
(Reporting by Ankika Biswas and Devik Jain in Bengaluru and David French in New York; Editing by Marguerita Choy)
((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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Rate-sensitive technology and growth stocks dropped with Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Amazon.com AMZN.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.Oall fell between 1.3% and 4.6%. By David French Sept 23 (Reuters) - Wall Street's main indexes slumped to close well down on Friday, as rattled investors continued repositioning themselves to reflect fears the U.S. Federal Reserve's hawkish rate policy to curb inflation will push the American economy into recession. The Dow .DJI narrowly avoided ending more than 20% lower than its Jan. 4 record all-time closing peak of 36,799.64 points, meaning the blue-chip index did not attain a bear market label, according to a widely used definition.
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Rate-sensitive technology and growth stocks dropped with Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Amazon.com AMZN.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.Oall fell between 1.3% and 4.6%. By David French Sept 23 (Reuters) - Wall Street's main indexes slumped to close well down on Friday, as rattled investors continued repositioning themselves to reflect fears the U.S. Federal Reserve's hawkish rate policy to curb inflation will push the American economy into recession. The Dow Jones Industrial Average .DJI fell 486.27 points, or 1.62%, to 29,590.41, the S&P 500 .SPX lost 64.76 points, or 1.72%, to 3,693.23 and the Nasdaq Composite .IXIC dropped 198.88 points, or 1.8%, to 10,867.93.
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Rate-sensitive technology and growth stocks dropped with Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Amazon.com AMZN.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.Oall fell between 1.3% and 4.6%. By David French Sept 23 (Reuters) - Wall Street's main indexes slumped to close well down on Friday, as rattled investors continued repositioning themselves to reflect fears the U.S. Federal Reserve's hawkish rate policy to curb inflation will push the American economy into recession. A half dozen central banks, including in the United States, Britain, Sweden, Switzerland and Norway, delivered rate hikes this week to fight inflation, but it was the Fed's signal that it expects high U.S. rates to last through 2023 that caught markets off guard.
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Rate-sensitive technology and growth stocks dropped with Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Amazon.com AMZN.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.Oall fell between 1.3% and 4.6%. The Nasdaq dropped 5.03% - its second straight week falling by more than 5% - with the S&P down 4.77% and the Dow 4% lower. Having withdrawn its earnings forecast last week, FedEx Corp FDX.N outlined on Thursday cost cuts of up to $2.7 billion after falling demand hammered first-quarter profits.
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19229.0
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2022-09-23 00:00:00 UTC
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US STOCKS-Futures slide more than 1% on growth concerns
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-slide-more-than-1-on-growth-concerns
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures down: Dow 1.16%, S&P 1.25%, Nasdaq 1.39%
Sept 23 (Reuters) - Wall Street futures fell on Friday as investors fretted over the prospect of an economic downturn and a hit to corporate earnings from the U.S. Federal Reserve's aggressive policy tightening moves to quell inflation.
Technology and growth stocks led declines in premarket trading, with megacap names including Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Amazon.com AMZN.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O all down more than 1% as benchmark Treasury yields were at an 11-year high.
The U.S. central bank raised rates by a widely expected 75 basis points on Wednesday and signaled a longer trajectory for policy rates at a time when a handful of companies - most recently FedEx Corp FDX.N and Ford Motor Co F.N - are issuing dire outlooks for earnings.
All the three major indexes closed lower for the third straight session on Thursday, and are tracking sharp weekly losses on fears that the Fed's hawkish move could tip the U.S. economy into a recession.
"The likelihood of a U.S. recession in 2023 is increasing given the hawkish Fed. While it is widely understood that earnings estimates are too high given such recession risk, the market is unlikely to be able to look through falling earnings," Citigroup said in a note.
Goldman Sachs cut its year-end 2022 target for the benchmark S&P 500 .SPX index by about 16% to 3,600 points, a 4.2% decline from current levels.
At 6:51 a.m. ET, Dow e-minis 1YMcv1 were down 351 points, or 1.16%, S&P 500 e-minis EScv1 were down 47.25 points, or 1.25%, and Nasdaq 100 e-minis NQcv1 were down 161.25 points, or 1.39%.
Meanwhile, Fed Chair Jerome Powell is set to give opening remarks on the transition to the post-pandemic economy at an event at 2 p.m. ET.
On the data front, investors will closely monitor flash reading on business activity data from S&P Global at 09:45 am ET.
The CBOE volatility index .VIX, also known as Wall Street's fear gauge, rose to 28.55 points.
Costco Wholesale Corp COST.O shed 3.5% after the big-box retailer reported a fall in its fourth-quarter profit margins, while battling higher freight and labor costs on rising inflationary pressure and global supply chain snags.
(Reporting by Ankika Biswas and Devik Jain in Bengaluru; Editing by Shounak Dasgupta)
((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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Technology and growth stocks led declines in premarket trading, with megacap names including Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Amazon.com AMZN.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O all down more than 1% as benchmark Treasury yields were at an 11-year high. All the three major indexes closed lower for the third straight session on Thursday, and are tracking sharp weekly losses on fears that the Fed's hawkish move could tip the U.S. economy into a recession. Costco Wholesale Corp COST.O shed 3.5% after the big-box retailer reported a fall in its fourth-quarter profit margins, while battling higher freight and labor costs on rising inflationary pressure and global supply chain snags.
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Technology and growth stocks led declines in premarket trading, with megacap names including Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Amazon.com AMZN.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O all down more than 1% as benchmark Treasury yields were at an 11-year high. Futures down: Dow 1.16%, S&P 1.25%, Nasdaq 1.39% Sept 23 (Reuters) - Wall Street futures fell on Friday as investors fretted over the prospect of an economic downturn and a hit to corporate earnings from the U.S. Federal Reserve's aggressive policy tightening moves to quell inflation. All the three major indexes closed lower for the third straight session on Thursday, and are tracking sharp weekly losses on fears that the Fed's hawkish move could tip the U.S. economy into a recession.
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Technology and growth stocks led declines in premarket trading, with megacap names including Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Amazon.com AMZN.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O all down more than 1% as benchmark Treasury yields were at an 11-year high. Futures down: Dow 1.16%, S&P 1.25%, Nasdaq 1.39% Sept 23 (Reuters) - Wall Street futures fell on Friday as investors fretted over the prospect of an economic downturn and a hit to corporate earnings from the U.S. Federal Reserve's aggressive policy tightening moves to quell inflation. All the three major indexes closed lower for the third straight session on Thursday, and are tracking sharp weekly losses on fears that the Fed's hawkish move could tip the U.S. economy into a recession.
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Technology and growth stocks led declines in premarket trading, with megacap names including Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Amazon.com AMZN.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O all down more than 1% as benchmark Treasury yields were at an 11-year high. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. All the three major indexes closed lower for the third straight session on Thursday, and are tracking sharp weekly losses on fears that the Fed's hawkish move could tip the U.S. economy into a recession.
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19230.0
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2022-09-23 00:00:00 UTC
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Should SPDR Portfolio S&P 500 Growth ETF (SPYG) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-spdr-portfolio-sp-500-growth-etf-spyg-be-on-your-investing-radar-3
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Looking for broad exposure to the Large Cap Growth segment of the US equity market? You should consider the SPDR Portfolio S&P 500 Growth ETF (SPYG), a passively managed exchange traded fund launched on 09/25/2000.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $12.69 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Also, growth stocks are a type of equity that carries more risk compared to others. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.96%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 48.60% of the portfolio. Consumer Discretionary and Healthcare round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 14.98% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 53.38% of total assets under management.
Performance and Risk
SPYG seeks to match the performance of the S&P 500 Growth Index before fees and expenses. The S&P 500 Growth Index measures the performance of the large-capitalization growth sector in the U.S. equity market.
The ETF has lost about -27.59% so far this year and is down about -19.92% in the last one year (as of 09/23/2022). In the past 52-week period, it has traded between $50.47 and $73.48.
The ETF has a beta of 1.06 and standard deviation of 26.97% for the trailing three-year period, making it a medium risk choice in the space. With about 242 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR Portfolio S&P 500 Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, SPYG is a great option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $69.60 billion in assets, Invesco QQQ has $152.60 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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
SPDR Portfolio S&P 500 Growth ETF (SPYG): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 14.98% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report It has amassed assets over $12.69 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 14.98% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Sector Exposure and Top Holdings ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 14.98% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 14.98% of total assets, followed by Microsoft Corporation (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
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19231.0
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2022-09-23 00:00:00 UTC
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Battery maker Varta's value plummets on scrapped outlook
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AAPL
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https://www.nasdaq.com/articles/battery-maker-vartas-value-plummets-on-scrapped-outlook
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Adds detail, background, share price move
Sept 23 (Reuters) - German battery maker Varta's VAR1.DE shares shed nearly a fifth of their value after it withdrew full-year and third-quarter forecasts on Friday, citing higher than expected energy and raw material costs.
The company, which produces automotive batteries as well as headphone batteries for the likes of Apple AAPL.O among others, said it envisaged only limited possibility of cost increases being passed on to customers.
It added that delays in two large orders with original equipment manufacturers meant it might not be able to deliver significant volumes this year.
The company had already cut its full-year outlook at the end of July, when it forecast revenue in a range of 880 million to 920 million euros ($858.4 million to 897.4 million) and adjusted core earnings of 200 million to 225 million euros for the year.
At that time it had expected third-quarter revenue between 210 million and 230 million euros, with adjusted core profit of 40 million to 50 million euros.
The stock was down 19% at 1125GMT, set for its biggest daily fall in almost three years. The shares lost 10% in early trade before the announcement.
A company representative was not immediately available for comment.
($1 = 1.0252 euros)
(Reporting by Linda Pasquini Editing by Rachel More and David Goodman)
((linda.pasquini@thomsonreuters.com; +48 58 7785261;))
The views and 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, which produces automotive batteries as well as headphone batteries for the likes of Apple AAPL.O among others, said it envisaged only limited possibility of cost increases being passed on to customers. Adds detail, background, share price move Sept 23 (Reuters) - German battery maker Varta's VAR1.DE shares shed nearly a fifth of their value after it withdrew full-year and third-quarter forecasts on Friday, citing higher than expected energy and raw material costs. It added that delays in two large orders with original equipment manufacturers meant it might not be able to deliver significant volumes this year.
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The company, which produces automotive batteries as well as headphone batteries for the likes of Apple AAPL.O among others, said it envisaged only limited possibility of cost increases being passed on to customers. Adds detail, background, share price move Sept 23 (Reuters) - German battery maker Varta's VAR1.DE shares shed nearly a fifth of their value after it withdrew full-year and third-quarter forecasts on Friday, citing higher than expected energy and raw material costs. The company had already cut its full-year outlook at the end of July, when it forecast revenue in a range of 880 million to 920 million euros ($858.4 million to 897.4 million) and adjusted core earnings of 200 million to 225 million euros for the year.
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The company, which produces automotive batteries as well as headphone batteries for the likes of Apple AAPL.O among others, said it envisaged only limited possibility of cost increases being passed on to customers. Adds detail, background, share price move Sept 23 (Reuters) - German battery maker Varta's VAR1.DE shares shed nearly a fifth of their value after it withdrew full-year and third-quarter forecasts on Friday, citing higher than expected energy and raw material costs. The company had already cut its full-year outlook at the end of July, when it forecast revenue in a range of 880 million to 920 million euros ($858.4 million to 897.4 million) and adjusted core earnings of 200 million to 225 million euros for the year.
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The company, which produces automotive batteries as well as headphone batteries for the likes of Apple AAPL.O among others, said it envisaged only limited possibility of cost increases being passed on to customers. Adds detail, background, share price move Sept 23 (Reuters) - German battery maker Varta's VAR1.DE shares shed nearly a fifth of their value after it withdrew full-year and third-quarter forecasts on Friday, citing higher than expected energy and raw material costs. It added that delays in two large orders with original equipment manufacturers meant it might not be able to deliver significant volumes this year.
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19232.0
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2022-09-23 00:00:00 UTC
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Apple will sponsor Super Bowl halftime show starting in February
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AAPL
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https://www.nasdaq.com/articles/apple-will-sponsor-super-bowl-halftime-show-starting-in-february
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By Dawn Chmielewski
Sept 22 (Reuters) - The National Football League has reached a multiyear deal with Apple Music to sponsor the Super Bowl Halftime Show, beginning with the American football championship game in February 2023, the league said on Thursday.
The Super Bowl is usually the most watched television event of the year in the United States, and the halftime show has become a showcase, featuring such notable artists as The Weeknd, Jennifer Lopez, Shakira, Beyoncé, Justin Timberlake, Lady Gaga, Katy Perry, Bruno Mars, Prince and Madonna.
Over 120 million viewers watched the 2022 Super Bowl LVI Halftime Show, which featured Dr. Dre, Snoop Dogg, Eminem, Mary J. Blige and Kendrick Lamar. Super Bowl LVII will be played on Sunday, Feb. 12, in Glendale, Ariz.
The tie up will be a key promotional platform for Apple Inc AAPL.O, which has been associated with music since 2001, when it introduced the iPod digital music player.
Financial terms of the deal were not disclosed.
Apple is among a number of companies bidding to become the next home for the NFL Sunday Ticket, a package that lets fans watch every Sunday football game, according to sources familiar with the matter. Apple did not respond to a request for comment.
(Reporting by Dawn Chmielewski in Los Angeles; Editing by Christian Schmollinger and Edmund Klamann)
((Dawn.Chmielewski@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The tie up will be a key promotional platform for Apple Inc AAPL.O, which has been associated with music since 2001, when it introduced the iPod digital music player. By Dawn Chmielewski Sept 22 (Reuters) - The National Football League has reached a multiyear deal with Apple Music to sponsor the Super Bowl Halftime Show, beginning with the American football championship game in February 2023, the league said on Thursday. The Super Bowl is usually the most watched television event of the year in the United States, and the halftime show has become a showcase, featuring such notable artists as The Weeknd, Jennifer Lopez, Shakira, Beyoncé, Justin Timberlake, Lady Gaga, Katy Perry, Bruno Mars, Prince and Madonna.
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The tie up will be a key promotional platform for Apple Inc AAPL.O, which has been associated with music since 2001, when it introduced the iPod digital music player. By Dawn Chmielewski Sept 22 (Reuters) - The National Football League has reached a multiyear deal with Apple Music to sponsor the Super Bowl Halftime Show, beginning with the American football championship game in February 2023, the league said on Thursday. Over 120 million viewers watched the 2022 Super Bowl LVI Halftime Show, which featured Dr. Dre, Snoop Dogg, Eminem, Mary J. Blige and Kendrick Lamar.
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The tie up will be a key promotional platform for Apple Inc AAPL.O, which has been associated with music since 2001, when it introduced the iPod digital music player. By Dawn Chmielewski Sept 22 (Reuters) - The National Football League has reached a multiyear deal with Apple Music to sponsor the Super Bowl Halftime Show, beginning with the American football championship game in February 2023, the league said on Thursday. The Super Bowl is usually the most watched television event of the year in the United States, and the halftime show has become a showcase, featuring such notable artists as The Weeknd, Jennifer Lopez, Shakira, Beyoncé, Justin Timberlake, Lady Gaga, Katy Perry, Bruno Mars, Prince and Madonna.
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The tie up will be a key promotional platform for Apple Inc AAPL.O, which has been associated with music since 2001, when it introduced the iPod digital music player. By Dawn Chmielewski Sept 22 (Reuters) - The National Football League has reached a multiyear deal with Apple Music to sponsor the Super Bowl Halftime Show, beginning with the American football championship game in February 2023, the league said on Thursday. The Super Bowl is usually the most watched television event of the year in the United States, and the halftime show has become a showcase, featuring such notable artists as The Weeknd, Jennifer Lopez, Shakira, Beyoncé, Justin Timberlake, Lady Gaga, Katy Perry, Bruno Mars, Prince and Madonna.
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19233.0
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2022-09-23 00:00:00 UTC
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Will Microsoft Be Worth More Than Apple by 2025?
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AAPL
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https://www.nasdaq.com/articles/will-microsoft-be-worth-more-than-apple-by-2025
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nan
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Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL) both became high-growth companies again under visionary CEOs. After taking the helm at Microsoft in 2014, CEO Satya Nadella set the tech giant on a fresh course by expanding its cloud-based services while reducing its dependence on desktop software. Microsoft developed more mobile apps for iOS and Android, launched new Surface devices, expanded its Xbox gaming business, and abandoned its struggling Windows Phone platform.
Apple stagnated for years before Steve Jobs returned as its CEO in 1997. Jobs' tenure -- which lasted until his death in 2011 -- disrupted the PC, digital media player, smartphone, and tablet markets with the iMac, iPod, iPhone, and iPad. Jobs' successor, Tim Cook, continued to expand Apple's hardware business with the Apple Watch, AirPods, and HomePod, all while expanding its sticky services ecosystem with Apple Pay, Apple Music, Apple TV+, Apple Arcade, and other new services.
Image source: Getty Images.
Microsoft and Apple have generated massive gains for investors who believed in those transformations. Microsoft's stock has rallied about 570% since Nadella's first day. Meanwhile, Apple's stock has skyrocketed 78,770% since Jobs' return to the CEO post.
Both tech giants' market caps blew past the $1 trillion mark over the past few years. Microsoft's valuation eclipsed Apple's numerous times during that ascent, but Apple's current market capitalization of $2.5 trillion now puts it comfortably ahead of Microsoft's valuation of $1.8 trillion. Could Microsoft catch up to Apple again within the next three years?
The key differences between Microsoft and Apple
Microsoft generates most of its revenue from its software and cloud-based services, while Apple makes most of its money by selling hardware. At Microsoft, the main metric to watch is its cloud revenue, which grew 32% to $91 billion, or 46% of its top line, in fiscal 2022 (which ended in June). This segment houses Office 365, Dynamics, and Azure -- the world's second-largest cloud infrastructure platform after Amazon Web Services (AWS). Recently it has managed to offset the slower growth of its desktop-based software and Windows licenses.
As for Apple, most investors track its sales of iPhones, which generated 54% of its revenue in the first nine months of fiscal 2022 (which ended in June). They also closely follow its services revenue, which accounted for 19% of its top line during that period and reached over 860 million paid subscriptions at the end of the third quarter. The bulls believe the growth of that services ecosystem will lock users into Apple's walled garden and gradually reduce its dependence on the iPhone.
Which company has been growing faster?
Microsoft's business is more diversified than Apple's. Its Surface and Xbox businesses are cyclical, but those two hardware divisions are much smaller than its core software and cloud-based service segments. Meanwhile, Apple's growth still relies heavily on rigid hardware upgrade cycles, which have gradually lengthened with each generation of faster devices. It's also more heavily exposed to chip shortages, supply chain disruptions, tariffs, and rising labor costs than Microsoft.
That's why analysts expect Microsoft's revenue to grow at a compound annual growth rate (CAGR) of 13% from fiscal 2022 to 2025, while they only expect Apple's revenue to increase at a CAGR of 5% from fiscal 2021 to 2024. They also expect Microsoft's earnings per share (EPS) to grow at a CAGR of 13% during that period. On the other hand, they expect Apple's EPS to rise at a CAGR of 7%.
We should take those estimates with a grain of salt, since they probably don't factor in Microsoft's plans to aggressively expand its gaming business with more acquisitions or Apple's long-rumored AR and VR devices. However, they clearly suggest that Microsoft's cloud business will continue to flourish as Apple's hardware sales cool off again.
Microsoft could easily catch up to Apple again
Based on those expectations, Microsoft's stock should trade at a premium to Apple's stock. However, Microsoft trades at 25 times forward earnings, while Apple has a slightly pricier forward price-to-earnings ratio of 26x.
We could argue that both stocks' valuations have been inflated by the flight toward safer blue-chip tech stocks during the ongoing bear market, but investors also seem to be pricing a lot of Apple's rumored products -- including AR gadgets and driverless cars -- into its stock price. Therefore, Apple's stock arguably deserves to trade at a lower multiple than Microsoft. If those valuations reset over the next few years, Microsoft could easily become more valuable than Apple by 2025.
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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. Leo Sun has positions in Amazon and Apple. The Motley Fool has positions in and recommends Amazon, Apple, and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL) both became high-growth companies again under visionary CEOs. After taking the helm at Microsoft in 2014, CEO Satya Nadella set the tech giant on a fresh course by expanding its cloud-based services while reducing its dependence on desktop software. Microsoft developed more mobile apps for iOS and Android, launched new Surface devices, expanded its Xbox gaming business, and abandoned its struggling Windows Phone platform.
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Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL) both became high-growth companies again under visionary CEOs. Microsoft developed more mobile apps for iOS and Android, launched new Surface devices, expanded its Xbox gaming business, and abandoned its struggling Windows Phone platform. Jobs' successor, Tim Cook, continued to expand Apple's hardware business with the Apple Watch, AirPods, and HomePod, all while expanding its sticky services ecosystem with Apple Pay, Apple Music, Apple TV+, Apple Arcade, and other new services.
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Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL) both became high-growth companies again under visionary CEOs. Jobs' successor, Tim Cook, continued to expand Apple's hardware business with the Apple Watch, AirPods, and HomePod, all while expanding its sticky services ecosystem with Apple Pay, Apple Music, Apple TV+, Apple Arcade, and other new services. The key differences between Microsoft and Apple Microsoft generates most of its revenue from its software and cloud-based services, while Apple makes most of its money by selling hardware.
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Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL) both became high-growth companies again under visionary CEOs. Its Surface and Xbox businesses are cyclical, but those two hardware divisions are much smaller than its core software and cloud-based service segments. Microsoft could easily catch up to Apple again Based on those expectations, Microsoft's stock should trade at a premium to Apple's stock.
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19234.0
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2022-09-23 00:00:00 UTC
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US STOCKS-Wall Street set for fresh bout of selling on growth angst
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-set-for-fresh-bout-of-selling-on-growth-angst
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nan
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nan
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By Ankika Biswas and Devik Jain
Sept 23 (Reuters) - Wall Street's main indexes were set for a lower open on Friday as investors fretted over the prospect of an economic downturn and a hit to corporate earnings from the U.S. Federal Reserve's aggressive policy tightening moves to quell price pressures.
The U.S. central bank raised rates by a widely expected 75 basis points on Wednesday and signaled a longer trajectory for policy rates, dashing hopes that the Fed expects to get inflation under control in the near term.
"While we are headed towards lower inflation and economic slowdown, it probably isn't falling off a cliff ... to some extent that's not going to be seen as good news by investors, who want to try and make it through this transition period as quickly as possible," said Rick Meckler, a partner at Cherry Lane Investments in New Vernon, New Jersey.
"There is very little positive news right now and it could lead to a sort of a final selloff ... it's certainly possible that we could be approaching the near-term lows."
The Dow .DJI is 1.43% away from its mid-June lows, with futures suggesting the blue-chip index might retest that level, its weakest point for the year, if losses extend after market open.
The S&P 500 .SPX and the Nasdaq .IXIC indexes are already in bear market and down more than 21% and 29%, respectively, so far this year, amid worries about a host of issues including the Ukraine conflict and tightening financial conditions across the globe.
Dire outlooks from a handful of companies - most recently FedEx Corp FDX.N and Ford Motor Co F.N - have also added to woes in a seasonally weak period for markets.
At 8:26 a.m. ET, Dow e-minis 1YMcv1 were down 336 points, or 1.11%, S&P 500 e-minis EScv1 were down 44.75 points, or 1.19%, and Nasdaq 100 e-minis NQcv1 were down 141 points, or 1.22%.
All the three major indexes closed lower for the third straight session on Thursday, and are tracking sharp weekly losses on fears that the Fed's hawkish move could tip the U.S. economy into a recession.
"The likelihood of a U.S. recession in 2023 is increasing given the hawkish Fed. While it is widely understood that earnings estimates are too high given such recession risk, the market is unlikely to be able to look through falling earnings," Citigroup said in a note.
Goldman Sachs cut its year-end 2022 target for the benchmark S&P 500 index .SPX by about 16% to 3,600 points, a 4.2% decline from current levels.
Technology and growth stocks were among the biggest decliners in premarket trading, with megacap names including Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Amazon.com AMZN.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O all down more than 1% as benchmark Treasury yields were at an 11-year high.
Morgan Stanley MS.N dipped 1.8% to lead losses among the big banks.
Costco Wholesale Corp COST.O shed 2.2% after the big-box retailer reported a fall in its fourth-quarter profit margins, while battling higher freight and labor costs on rising inflationary pressure and global supply chain snags.
The CBOE volatility index .VIX, also known as Wall Street's fear gauge, rose to 28.72 points.
Meanwhile, Fed Chair Jerome Powell is set to give opening remarks on the transition to the post-pandemic economy at an event at 2 p.m. ET.
On the data front, investors will closely monitor flash reading on business activity data from S&P Global at 09:45 am ET.
(Reporting by Ankika Biswas and Devik Jain in Bengaluru; Editing by Shounak Dasgupta)
((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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Technology and growth stocks were among the biggest decliners in premarket trading, with megacap names including Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Amazon.com AMZN.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O all down more than 1% as benchmark Treasury yields were at an 11-year high. By Ankika Biswas and Devik Jain Sept 23 (Reuters) - Wall Street's main indexes were set for a lower open on Friday as investors fretted over the prospect of an economic downturn and a hit to corporate earnings from the U.S. Federal Reserve's aggressive policy tightening moves to quell price pressures. "While we are headed towards lower inflation and economic slowdown, it probably isn't falling off a cliff ... to some extent that's not going to be seen as good news by investors, who want to try and make it through this transition period as quickly as possible," said Rick Meckler, a partner at Cherry Lane Investments in New Vernon, New Jersey.
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Technology and growth stocks were among the biggest decliners in premarket trading, with megacap names including Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Amazon.com AMZN.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O all down more than 1% as benchmark Treasury yields were at an 11-year high. By Ankika Biswas and Devik Jain Sept 23 (Reuters) - Wall Street's main indexes were set for a lower open on Friday as investors fretted over the prospect of an economic downturn and a hit to corporate earnings from the U.S. Federal Reserve's aggressive policy tightening moves to quell price pressures. ET, Dow e-minis 1YMcv1 were down 336 points, or 1.11%, S&P 500 e-minis EScv1 were down 44.75 points, or 1.19%, and Nasdaq 100 e-minis NQcv1 were down 141 points, or 1.22%.
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Technology and growth stocks were among the biggest decliners in premarket trading, with megacap names including Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Amazon.com AMZN.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O all down more than 1% as benchmark Treasury yields were at an 11-year high. By Ankika Biswas and Devik Jain Sept 23 (Reuters) - Wall Street's main indexes were set for a lower open on Friday as investors fretted over the prospect of an economic downturn and a hit to corporate earnings from the U.S. Federal Reserve's aggressive policy tightening moves to quell price pressures. The Dow .DJI is 1.43% away from its mid-June lows, with futures suggesting the blue-chip index might retest that level, its weakest point for the year, if losses extend after market open.
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Technology and growth stocks were among the biggest decliners in premarket trading, with megacap names including Alphabet Inc GOOGL.O, Apple Inc AAPL.O, Amazon.com AMZN.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O all down more than 1% as benchmark Treasury yields were at an 11-year high. By Ankika Biswas and Devik Jain Sept 23 (Reuters) - Wall Street's main indexes were set for a lower open on Friday as investors fretted over the prospect of an economic downturn and a hit to corporate earnings from the U.S. Federal Reserve's aggressive policy tightening moves to quell price pressures. The Dow .DJI is 1.43% away from its mid-June lows, with futures suggesting the blue-chip index might retest that level, its weakest point for the year, if losses extend after market open.
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19235.0
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2022-09-23 00:00:00 UTC
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Should iShares Russell Top 200 Growth ETF (IWY) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-ishares-russell-top-200-growth-etf-iwy-be-on-your-investing-radar-4
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If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the iShares Russell Top 200 Growth ETF (IWY), a passively managed exchange traded fund launched on 09/22/2009.
The fund is sponsored by Blackrock. It has amassed assets over $4.44 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Additionally, growth stocks have a greater level of risk associated with them. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.20%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.72%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 51.30% of the portfolio. Consumer Discretionary and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 15.61% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 50.64% of total assets under management.
Performance and Risk
IWY seeks to match the performance of the Russell Top 200 Growth Index before fees and expenses. The Russell Top 200 Growth Index is a style factor weighted index that measures the performance of the largest capitalization growth sector of the U.S. equity market. It is a subset of the Russell Top 200 Index issuers with relatively higher price-to-book ratios and higher forecasted growth, which measures the performance of the largest capitalization sector of the U.S. equity market.
The ETF has lost about -27.82% so far this year and is down about -19.74% in the last one year (as of 09/23/2022). In the past 52-week period, it has traded between $120.18 and $175.61.
The ETF has a beta of 1.08 and standard deviation of 27.04% for the trailing three-year period, making it a medium risk choice in the space. With about 117 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell Top 200 Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IWY is an outstanding option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $69.60 billion in assets, Invesco QQQ has $152.60 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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
iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 15.61% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report It has amassed assets over $4.44 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 15.61% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the iShares Russell Top 200 Growth ETF (IWY), a passively managed exchange traded fund launched on 09/22/2009.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 15.61% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the iShares Russell Top 200 Growth ETF (IWY), a passively managed exchange traded fund launched on 09/22/2009.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 15.61% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the iShares Russell Top 200 Growth ETF (IWY), a passively managed exchange traded fund launched on 09/22/2009.
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19236.0
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2022-09-23 00:00:00 UTC
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3 No-Brainer Cryptocurrencies to Hold Forever
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AAPL
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https://www.nasdaq.com/articles/3-no-brainer-cryptocurrencies-to-hold-forever
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The process of determining if a particular stock belongs in your portfolio should focus on a handful of things.
It turns out this same strategy can be applied to one of the newest asset classes, cryptocurrencies.
Stocks and cryptocurrencies aren't all that different. Both provide investors with an opportunity to earn passive income. Both fluctuate in value as demand rise and falls. And lastly, both must provide something that's useful.
In general, cryptocurrency investors need to look for blockchains that provide true utility and purpose. To do this we can look at statistics of a blockchain's growth, the problem that the cryptocurrency aims to solve, and the long term potential that it possesses.
On that basis, there are three cryptos that stand out from the crowd: Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and Polygon (CRYPTO: MATIC).
The original cryptocurrency still has it
Bitcoin's rise to the most valuable cryptocurrency has made it the most viable candidate for public companies and institutional investors looking to start gaining exposure to the asset class. In the last few years, companies like Tesla, MicroStrategy, and Block have all added Bitcoin to their balance sheets.
BlackRock, the world's biggest investment-management company, has been offering its high-profile clientele the ability to purchase Bitcoin. Therefore, the cryptocurrency is directly exposed to sums of wealth that no other cryptocurrency has access to. If Bitcoin continues to garner attention from institutional investors, price appreciation could follow.
In addition, the Bitcoin network has steadily grown, a key sign of its increasing use and value in the world. We can look at the number of transactions on the blockchain over the last 10 years to get a glimpse as to just how much Bitcoin is growing. Ten years ago, there were only around 30,000 transactions per day on the Bitcoin blockchain. Today, that number hovers around 260,000; more than a 750% increase.
Furthermore, as more national currencies become debased amid increasing money supply, more investors are looking to Bitcoin as a hedge against devaluation. Due to its limited scarcity and advanced level of security and decentralization, Bitcoin can't be manipulated like the currencies of governments or even some of its other cryptocurrency counterparts.
The DeFi champion isn't stopping
Ethereum is the second most-valuable cryptocurrency but provides an entirely different utility than Bitcoin. It's a programmable blockchain. This means developers can build applications with pieces of code known as smart contracts that automatically enforce actions when certain conditions are met.
These smart contracts are the backbone of a sector known as decentralized finance, or DeFi. Since 2020, Ethereum's DeFi ecosystem has grown from roughly $600 million to more than $30 billion today. At one point in 2021, Ethereum's DeFi was worth more than $100 billion.
Although growth has subsided during the recent bear market, Ethereum continues to be the favorite of DeFi developers. As DeFi continues to evolve and provide alternatives to traditional financial products like lending and borrowing, Ethereum should continue to dominate the burgeoning sector, especially with upgrades like The Merge.
A rising Web3 star
In only five years, Polygon has become one of the most popular and valuable Layer 2 blockchains.
Rather than trying to reinvent the wheel, Polygon took a different approach and, instead, works with Ethereum's blockchain. Since Ethereum evolved into one of the most popular blockchains, the network became slow, congested, and costly to use at times. To combat this, Polygon processes transactions cheaper and faster on its own blockchain and then adds them back to Ethereum.
As a result, Polygon's potential is garnering attention from some of the most prolific companies in the world. Recently, Disney (NYSE: DIS) selected Polygon to be a part of its 2022 class of the Accelerator Program, a venture-capital endeavor that provides participants with funding and resources. In addition, Meta announced that the blockchain will be one of four to be integrated with Facebook and Instagram's new non-fungible token (NFT) functionality. Coca-Cola even released a set of NFTs on the blockchain.
Of most interest might be Polygon's role in the development of Web3, a name given to the next evolution of the internet that aims to be decentralized, permissionless, and completely open source.
Polygon's co-founder, Mihailo Bjelic, envisions Polygon eventually becoming "the holy grail of Web3 infrastructure." He believes the ideal Web3 blockchain should possess three primary qualities, "scalability, security, and Ethereum compatibility" -- criteria that Polygon easily meets.
Lucrative opportunities abound
It's becoming increasingly difficult to ignore the role that cryptocurrencies may play in the future of finance. Taking notice of technological and societal trends is one of the most efficient ways to position your portfolio for long term success. Hindsight is always 20/20 but imagine if you would have invested in household names like Apple and Amazon years ago.
Just as it has in the past, technology develops to suit the needs of society. Investors can follow suit and realize that as trends continue to evolve, there are similar opportunities that can be capitalized on today in the world of crypto.
10 stocks we like better than Bitcoin
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Bitcoin wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 17, 2022
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. RJ Fulton has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Amazon, Apple, Bitcoin, Block, Inc., Ethereum, Meta Platforms, Inc., Polygon, Tesla, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Due to its limited scarcity and advanced level of security and decentralization, Bitcoin can't be manipulated like the currencies of governments or even some of its other cryptocurrency counterparts. Recently, Disney (NYSE: DIS) selected Polygon to be a part of its 2022 class of the Accelerator Program, a venture-capital endeavor that provides participants with funding and resources. The Motley Fool has positions in and recommends Amazon, Apple, Bitcoin, Block, Inc., Ethereum, Meta Platforms, Inc., Polygon, Tesla, and Walt Disney.
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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 Amazon, Apple, Bitcoin, Block, Inc., Ethereum, Meta Platforms, Inc., Polygon, Tesla, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple.
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The original cryptocurrency still has it Bitcoin's rise to the most valuable cryptocurrency has made it the most viable candidate for public companies and institutional investors looking to start gaining exposure to the asset class. The Motley Fool has positions in and recommends Amazon, Apple, Bitcoin, Block, Inc., Ethereum, Meta Platforms, Inc., Polygon, Tesla, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple.
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Stocks and cryptocurrencies aren't all that different. Today, that number hovers around 260,000; more than a 750% increase. The Motley Fool has positions in and recommends Amazon, Apple, Bitcoin, Block, Inc., Ethereum, Meta Platforms, Inc., Polygon, Tesla, and Walt Disney.
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19237.0
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2022-09-23 00:00:00 UTC
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My Take: 4 Strong Growth Stocks to Buy This Week
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https://www.nasdaq.com/articles/my-take%3A-4-strong-growth-stocks-to-buy-this-week-3
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The broad market itself might still be undecided regarding its current direction. A handful of solid stocks, however, just look too beaten-down or too hot to pass up at this point. Here's a closer look at four of these top names to consider soon -- as in this week.
1. Taiwan Semiconductor Manufacturing Company
Yes, the semiconductor shortage is still with us. It's not necessarily a problem for every name in the sector, though. For some chip companies, it's been a boon. Taiwan Semiconductor Manufacturing Company (NYSE: TSM) is one of those beneficiaries.
In simplest terms, Taiwan Semiconductor (or TSMC) is a contract chip manufacturer. It makes semiconductors for outfits that design their own but don't want to take on the expense of building their own production foundries. Apple, Qualcomm, and Nvidia are just some of its customers.
And with the chip industry struggling to find enough crucial components, a bunch of key names in the business are increasingly turning to Taiwan Semiconductor for help. That's why this year's top line is projected to grow 30%, driving similar growth in per-share earnings.
It's what's likely to be coming next year, however, that makes this stock such a must-own now. Despite a weakening economy expected to sap chip sales, analysts expect TSMC to keep growing all the same. Needham and Bernstein both see growth for the company in the year ahead, and recently Needham analyst Charles Shi said, "We believe TSMC's near-monopoly position in 5-nanometer [chips] and 3-nanometer, both of which are expected to ramp meaningfully in 2023, will help the company defy the industry downcycle."
2. Merck
Merck (NYSE: MRK) wasn't one of the pharmaceutical names swept up in the mania to develop a COVID-19 vaccine. The company makes molnupiravir, which is proving to be a fairly effective treatment for the disease.
Merck opted to maintain most of its focus on its pre-pandemic developments, like expanding the uses of its cancer-fighting Keytruda and continuing its work on a promising pipeline. As an example, its cardiovascular drugs currently in trials could eventually generate $10 billion worth of annual revenue, the company believes. These stories just didn't excite investors in the middle of the pandemic, though. That's why the stock has basically moved sideways since late 2019.
With the fight against COVID-19 losing urgency, however, the market's focus could readily turn back to longer-lived drug opportunities. And Merck has plenty of them.
Beyond cardiovascular drugs, the company's anticoagulant MK-2060 was recently granted a fast-track designation from the Food and Drug Administration, and Merck is now collaborating with Orna Therapeutics on RNA-based therapies.
These and other efforts haven't stoked the stock's fires yet. If the economy and overall market continue weakening, though, the sort of resiliency Merck can offer (not to mention its current dividend yield of 3.1%) becomes quite compelling.
3. Amazon
It's been a fairly poor year for the overall market, and Amazon (NASDAQ: AMZN) has been no exception. In fact, given Amazon's massive market cap, this year's marketwide weakness can largely be attributed to the company's 26% year-to-date slide. Sky-high gas prices and soaring employee costs have taken a big bite out of the company's already paper-thin profit margins on its e-commerce operation, and investors are pricing the pain in.
What's largely being overlooked right now is that e-commerce hasn't been Amazon's breadwinner for a long, long time. That honor belongs to Amazon Web Services (AWS). Even in pre-pandemic fiscal 2019, AWS accounted for two-thirds of Amazon's operating income. And the cloud computing arm's bottom line is nearly twice as big now as it was then, with more of the same sort of growth in the cards.
In the meantime, while Amazon is losing money right now by selling physical goods online, it's mattering less and less. The company generated a whopping $31 billion in high-margin ad revenue last year, finding a new way to leverage the massive amount of traffic that its online marketplace draws every day. So this year's top line is expected to grow 11% before accelerating to a growth pace of more than 15% next year.
The company can afford for its e-commerce operation to lose money when it's making so much more in other ways.
4. Genuine Parts Company
Lastly, add auto parts retailer Genuine Parts Company (NYSE: GPC) to your list of growth stocks to buy this week.
It's an interesting industry. Whereas consumers might skip a trip to the mall or postpone a vacation when it feels like money is getting tight or jobs are in jeopardy, car repairs are rarely optional. Not even the pandemic stifled demand for car parts.
Genuine Parts Company (you might know it better as NAPA Auto Parts) managed to do almost as much business in a challenging 2020 as it did in 2019, and then managed to pump up its top line by 14% in 2021. Operating profits remained solid during that trying time as well. Sales are on pace to improve 14% this year, once again pumping up its profits to a similar degree. It's a testament to the fact that for most consumers, car repairs can't wait.
And that's increasingly so. Thanks to a combination of inflation and broken supply chains, Kelley Blue Book reports the average price of a new car in the United States reached a record-breaking $48,300 last month...assuming you can find one you like. Between the cost and sheer scarcity of attractive used cars, a bunch of people are willing to spend good money just to keep their current cars running for as long as possible.
The kicker: Genuine Parts Company currently pays a dividend of 2.3%. It has paid a dividend every quarter for decades, and has raised it every year for the past 66 years.
10 stocks we like better than Genuine Parts Company
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*Stock Advisor returns as of August 17, 2022
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Merck & Co., Nvidia, Qualcomm, 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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The company generated a whopping $31 billion in high-margin ad revenue last year, finding a new way to leverage the massive amount of traffic that its online marketplace draws every day. Whereas consumers might skip a trip to the mall or postpone a vacation when it feels like money is getting tight or jobs are in jeopardy, car repairs are rarely optional. Thanks to a combination of inflation and broken supply chains, Kelley Blue Book reports the average price of a new car in the United States reached a record-breaking $48,300 last month...assuming you can find one you like.
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Genuine Parts Company Lastly, add auto parts retailer Genuine Parts Company (NYSE: GPC) to your list of growth stocks to buy this week. The Motley Fool has positions in and recommends Amazon, Apple, Merck & Co., Nvidia, Qualcomm, 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.
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Needham and Bernstein both see growth for the company in the year ahead, and recently Needham analyst Charles Shi said, "We believe TSMC's near-monopoly position in 5-nanometer [chips] and 3-nanometer, both of which are expected to ramp meaningfully in 2023, will help the company defy the industry downcycle." Genuine Parts Company Lastly, add auto parts retailer Genuine Parts Company (NYSE: GPC) to your list of growth stocks to buy this week. 10 stocks we like better than Genuine Parts Company When our award-winning analyst team has a stock tip, it can pay to listen.
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And with the chip industry struggling to find enough crucial components, a bunch of key names in the business are increasingly turning to Taiwan Semiconductor for help. That's right -- they think these 10 stocks are even better buys. The Motley Fool has positions in and recommends Amazon, Apple, Merck & Co., Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing.
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19238.0
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2022-09-22 00:00:00 UTC
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My 3 Favorite Stocks Right Now
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https://www.nasdaq.com/articles/my-3-favorite-stocks-right-now-6
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Investing more capital into your best ideas can lead to outsize rewards. The challenge, of course, is choosing the right stocks. To help you identify investments that are most worthy of your hard-earned money, I offer my three highest-conviction ideas right now. All are outstanding businesses that are well-positioned to generate handsome returns for their shareowners in the coming years.
1. The cloud data leader
Snowflake (NYSE: SNOW) helps businesses make better use of their data at a time when harvesting valuable insights from the cloud is becoming more important every day. It's a massive market, one that could grow to a staggering $248 billion by 2026, according to the company's estimates.
Snowflake is expanding at a blistering pace within this fast-growing market. Its revenue soared 83% year over year to $497 million in its fiscal 2023 second quarter, which ended on July 31.
The company's new, consumption-based model is proving popular, as it allows businesses to pay only for the computing resources they use. By enabling its customers to better align their costs with their usage of data transfer, storage, and computing services, Snowflake is helping them save significant amounts of money.
Companies, in turn, are flocking to Snowflake's cloud platform. It ended the second quarter with 6,808 customers, up 36% from the prior-year period. Snowflake also excels at deepening its relationships with its existing clients, as evidenced by its exceptional net revenue retention rate of 171%.
Although Snowflake is not yet profitable (it generated an operating loss of $208 million in its most recent quarter), it did produce $54 million of free cash flow. Management also expects the company to reach impressive profitability by the end of the decade, with an adjusted operating margin of roughly 20%.
With its data warehousing tools in high demand, investors can safely expect Snowflake's sales and cash flow production to grow even more impressive in the years ahead. Consider buying this cloud data leader's shares today so you, too, could cash in on its good growth prospects.
2. The e-commerce and cloud computing colossus
Few businesses stand to benefit more from the global shift to the cloud than Amazon (NASDAQ: AMZN). Sure, Amazon is famous for its e-commerce platform. But the shining star these days is its Amazon Web Services (AWS), the leading provider of cloud infrastructure services. It's an incredibly valuable position to be in because an enormous amount of capital is expected to be invested in cloud computing services in the coming decade.
AWS is already a $70 billion business. Yet only about 5% of worldwide information-technology spending is currently allocated toward cloud solutions, according to Amazon CEO Andy Jassy. Analysts expect this figure to march steadily higher, due to the security, cost, and scalability benefits that cloud computing provides compared to on-premise networks.
Grand View Research, for one, projects that the global cloud computing market will grow by more than 19% annually to over $1.2 trillion by 2028. That leaves plenty of room for AWS' sales and profits (operating income in the second quarter alone exceeded $5.7 billion) to continue to grow at a rapid pace for many years to come.
It's true that Amazon's e-commerce operations have struggled in recent quarters. Supply chain disruptions and cost inflation have taken a heavy toll. Yet Jassy and his team are acting aggressively to right the ship.
Amazon is scaling back its warehouse expansion plans and investing in automation technology, such as its recent acquisition of robotics specialist Cloostermans. These actions should help to boost the efficiency of Amazon's massive fulfillment network and drive a rebound in the segment's profitability over time.
To profit alongside the mighty Amazon, consider purchasing some shares of this cloud and e-commerce leader today.
3. The technology giant
Apple's (NASDAQ: AAPL) new iPhones are reportedly selling like hotcakes. Better still, many consumers appear to be choosing the tech titan's priciest phone, the iPhone Pro. That should help to boost Apple's already sky-high profit margins.
Strong iPhone orders also bode well for sales of the company's high-margin services. This segment -- which includes Apple Music, Apple TV+, Apple Arcade, and iCloud+, among other offerings -- is quickly approaching $100 billion in annual revenue. It's a staggering sum, one that would make Apple's services business one of the largest and most profitable companies in the world in its own right.
In all, Apple generated a stunning $98 billion in operating cash flow and over $90 billion in free cash flow during the first nine months of its fiscal 2022. Investors can expect Apple's growing installed base of iPhone users and steadily expanding service subscriptions to drive these figures even higher in the coming years. That, in turn, should result in larger dividends and further share price appreciation for its long-term investors.
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 August 17, 2022
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Joe Tenebruso has the following options: long January 2024 $100 calls on Amazon. The Motley Fool has positions in and recommends Amazon, Apple, and Snowflake 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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The technology giant Apple's (NASDAQ: AAPL) new iPhones are reportedly selling like hotcakes. With its data warehousing tools in high demand, investors can safely expect Snowflake's sales and cash flow production to grow even more impressive in the years ahead. Analysts expect this figure to march steadily higher, due to the security, cost, and scalability benefits that cloud computing provides compared to on-premise networks.
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The technology giant Apple's (NASDAQ: AAPL) new iPhones are reportedly selling like hotcakes. In all, Apple generated a stunning $98 billion in operating cash flow and over $90 billion in free cash flow during the first nine months of its fiscal 2022. Investors can expect Apple's growing installed base of iPhone users and steadily expanding service subscriptions to drive these figures even higher in the coming years.
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The technology giant Apple's (NASDAQ: AAPL) new iPhones are reportedly selling like hotcakes. The cloud data leader Snowflake (NYSE: SNOW) helps businesses make better use of their data at a time when harvesting valuable insights from the cloud is becoming more important every day. The e-commerce and cloud computing colossus Few businesses stand to benefit more from the global shift to the cloud than Amazon (NASDAQ: AMZN).
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The technology giant Apple's (NASDAQ: AAPL) new iPhones are reportedly selling like hotcakes. It's a massive market, one that could grow to a staggering $248 billion by 2026, according to the company's estimates. It's an incredibly valuable position to be in because an enormous amount of capital is expected to be invested in cloud computing services in the coming decade.
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19239.0
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2022-09-22 00:00:00 UTC
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Should You Really Buy Apple Stock?
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AAPL
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https://www.nasdaq.com/articles/should-you-really-buy-apple-stock
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nan
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Apple (NASDAQ: AAPL) is one of the most innovative companies to date. Investing in Apple has felt like a no-brainer as its consistently successful products seem to make the company unstoppable. Even as the Nasdaq-100 Technology Sector index is down 35% year to date, thanks to inflation and slowing consumer spending, Apple's stock is down a more modest 17% in the same period.
Immensely popular products such as the iPhone, MacBook, iPad, and Apple Watch have grown Apple's market cap to $2.4 trillion, making it the world's highest valued company. As a result, investors such as Warren Buffett have heartily vouched for the tech manufacturer, consigning 41% of Berkshire Hathaway's portfolio to Apple.
The iPhone titan has proven time and time again that its business is consistent and able to weather most storms. However, sales for its latest iPhone may not be as positive as some have reported. If true, the company's biggest segment could take a significant hit in its current quarter.
Apple's bread and butter
For the last decade, iPhone sales have made up at least 40% of Apple's revenue, with some quarters seeing the smartphones hit almost 70%. For instance, in the third and most recent quarter of 2022, Apple reported iPhone sales had made up 49% of its revenue. Meanwhile, the rest of its revenue went as follows: 8.7% to iPads, 8.8% to Macs, 9.7% to Wearables, Home and Accessories, and 23.6% to Services.
Like clockwork, Apple announces its newest lineup of iPhones almost every September, with sales remaining consistent throughout the year. However, Apple has made a significant push into services over the last few years. The introduction of apps such as its streaming service Apple TV+, Music, Fitness+, and iCloud has pushed consumers further into the company's ecosystem of products and boosted revenue.
In the fourth quarter of 2021, services made up 15.7% of the company's revenue versus 23.6% in Apple's latest quarter. The rise of services is positive as it can aid in safeguarding the company in the event of poor iPhone sales, which look to be a real possibility in Apple's latest lineup.
A potential dip
On Sept. 7, Apple unveiled its latest series of iPhones with the iPhone 14, Plus, Pro, and Pro Max. The lineup saw a return to the "Plus" model for the lower-tiered phones, which hadn't surfaced since the iPhone 8 Plus in 2017. Since then, the largest option has only been available in the Pro models under the label "Pro Max."
While multiple media outlets have reported record-breaking sales for Apple's iPhone 14 Pro and Pro max, a recent report from Apple analyst Ming-Chu Kuo has shown poor sales for the iPhone 14 and 14 Plus. Kuo explained that the Pro models are currently showing delivery wait times of more than four weeks, which suggests good demand. However, the iPhone 14 and 14 Plus have been available in retail stores from their launch dates, which "reflects lackluster demand."
Weak pre-sales for the non-Pro models are concerning as they are usually the highest-selling iPhones in the yearly lineup. In 2019, the base model iPhone 11 was the top-selling version every week in the year's last quarter. Then, in the first half of 2020, the iPhone 11 sold 79% more units than the Pro Max version and 82% more than the smaller Pro model. As the lower-priced base models, the iPhone 14 and the bigger Plus version would normally be outselling the Pro versions, but that doesn't seem to be the case in 2022.
Kuo surmised that current sales indicate the iPhone 14 and Plus are selling worse than last year's iPhone 13 mini, which Apple cut production on in the first half of 2022 because of low demand. As a result, Apple could do the same to the iPhone 14 and Plus and slim down production as soon as November, according to Kuo.
In the latest iPhone 14 lineup, Apple worked to widen the gap between the base and the Pro models, offering far more new features and tweaks in design to the more expensive versions. However, the result meant incremental differences between last year's iPhone 13 and 2022's 14, and price hikes abroad have caused far worse iPhone sales than in previous years.
Is Apple's stock a buy?
According to Bloomberg, analysts expect Apple sales to rise 6% in its current quarter, down from 29% the previous year, which was primarily fueled by "pandemic-bound consumers" pumping up demand for technology. The company has bet on its Pro models this year, which have so far reached record numbers. However, the question is, will the higher-end versions sell enough to offset slower sales from the base model iPhone 14s?
Only time will tell, but regardless, Apple continues to be an excellent investment in the long term. While a potential dip is concerning, the company has proven itself as an innovative company worth investing in over time. The stock may be even more of a buy in the case of a dip as it is unlikely to be down for long, suggesting current investors would do well to hold until shares rise again.
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Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends 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 one of the most innovative companies to date. The rise of services is positive as it can aid in safeguarding the company in the event of poor iPhone sales, which look to be a real possibility in Apple's latest lineup. In the latest iPhone 14 lineup, Apple worked to widen the gap between the base and the Pro models, offering far more new features and tweaks in design to the more expensive versions.
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Apple (NASDAQ: AAPL) is one of the most innovative companies to date. For instance, in the third and most recent quarter of 2022, Apple reported iPhone sales had made up 49% of its revenue. While multiple media outlets have reported record-breaking sales for Apple's iPhone 14 Pro and Pro max, a recent report from Apple analyst Ming-Chu Kuo has shown poor sales for the iPhone 14 and 14 Plus.
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Apple (NASDAQ: AAPL) is one of the most innovative companies to date. Apple's bread and butter For the last decade, iPhone sales have made up at least 40% of Apple's revenue, with some quarters seeing the smartphones hit almost 70%. A potential dip On Sept. 7, Apple unveiled its latest series of iPhones with the iPhone 14, Plus, Pro, and Pro Max.
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Apple (NASDAQ: AAPL) is one of the most innovative companies to date. In the fourth quarter of 2021, services made up 15.7% of the company's revenue versus 23.6% in Apple's latest quarter. In 2019, the base model iPhone 11 was the top-selling version every week in the year's last quarter.
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19240.0
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2022-09-22 00:00:00 UTC
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Minimum Volatility & Value ETFs for Turbulent Markets
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AAPL
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https://www.nasdaq.com/articles/minimum-volatility-value-etfs-for-turbulent-markets
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nan
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nan
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<br />
(1:00) - Understanding The Current Market: How Should You Position Your Portfolio For The Rest of The Year?
(6:55) - Can You Hold Minimum Volatility Strategies For The Long Term?
(10:30) - Low Volatility vs. Minimum Volatility
(13:00) - Should You Be Investing In Value Stocks Right Now?
(17:15) - How Can Multi-factor ETFs Benefit Your Portfolio?
Podcast@Zacks.com
In this episode of ETF Spotlight, I speak with Lukas Smart, Managing Director, Head of U.S. iShares Factor Strategies at BlackRock, the world’s largest asset manager. We discuss how investors can use factor ETFs to navigate choppy and uncertain markets.
Minimum volatility investing is back in vogue due to extremely challenging market environment. These ETFs hold up relatively well during market declines but may underperform the broader indexes during strong bull markets. Lukas explains why investors should consider a long-term strategic allocation to minimum volatility.
The iShares Edge MSCI Min Vol U.S.A. ETF USMV selects and weights companies to create a portfolio that has lower volatility relative to the broader market. Vertex Pharmaceuticals VRTX and Waste Management WM are its top holdings.
Value companies have generally outperformed growth companies during rising rates and inflationary environments. Investors could consider combining minimum volatility exposure with value to achieve greater diversification benefits.
The iShares MSCI USA Value Factor ETF VLUE invests in large- and mid-cap stocks with lower valuations based on fundamentals. AT&T T and Intel INTC are its top holdings.
Factor returns have generally proven to be highly cyclical. And timing the market is never easy. Should investor also use multi-factor strategies?
Take a look the iShares U.S. Equity Factor ETF LRGF, which aims to maximize exposure to five factors – value, quality, momentum, low volatility, and small size. Apple AAPL, Microsoft MSFT and Amazon AMZN are its top holdings.
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Intel Corporation (INTC): Free Stock Analysis Report
AT&T Inc. (T): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report
Waste Management, Inc. (WM): Free Stock Analysis Report
iShares MSCI USA Min Vol Factor ETF (USMV): ETF Research Reports
iShares MSCI USA Value Factor ETF (VLUE): ETF Research Reports
iShares U.S. Equity Factor ETF (LRGF): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL, Microsoft MSFT and Amazon AMZN are its top holdings. Apple Inc. (AAPL): Free Stock Analysis Report Minimum volatility investing is back in vogue due to extremely challenging market environment.
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Apple AAPL, Microsoft MSFT and Amazon AMZN are its top holdings. Apple Inc. (AAPL): Free Stock Analysis Report iShares MSCI USA Min Vol Factor ETF (USMV): ETF Research Reports
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Apple AAPL, Microsoft MSFT and Amazon AMZN are its top holdings. Apple Inc. (AAPL): Free Stock Analysis Report iShares MSCI USA Min Vol Factor ETF (USMV): ETF Research Reports
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Apple AAPL, Microsoft MSFT and Amazon AMZN are its top holdings. Apple Inc. (AAPL): Free Stock Analysis Report Minimum Volatility (13:00) - Should You Be Investing In Value Stocks Right Now?
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19241.0
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2022-09-22 00:00:00 UTC
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US STOCKS-Wall Street drops as mounting growth concerns weigh on tech, financials
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-drops-as-mounting-growth-concerns-weigh-on-tech-financials
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nan
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nan
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By Devik Jain and David French
Sept 22 (Reuters) - Wall Street's main indexes were on course to post their third straight day of declines on Thursday, as traders sold financial and technology stocks on fears the Federal Reserve's aggressive approach to rein in inflation could trigger a recession.
The Fed lifted rates by an expected 75 basis points on Wednesday and signaled a longer trajectory for policy rates than markets had priced in, fuelling fears of further volatility in stock and bond trading in a year that has already seen bear markets in both asset classes.
The U.S. central bank's projections for economic growth released on Wednesday were also eye-catching, with growth of just 0.2% this year, rising to 1.2% for 2023.
"Going forward, the market is going to be hypersensitive to any sort of Fed comments and data coming up. I would expect more volatility as the market digests them, but at the same time we're cautiously optimistic," said Brian Klimke, director ofinvestment researchat Cetera Financial Group.
"Valuations are a lot better than they were at the start of the year, earnings estimates have been lowered that makes it easier to beat. So, a lot of the bad news is factored in right now ... we are creating a market where there are potential upside surprises now."
As of Friday, the S&P 500's estimated earnings growth for the third quarter is at 5%, according to Refinitiv data. Excluding the energy sector, the growth rate is at -1.7%.
The S&P 500's forward price-to-earnings ratio, a common metric for valuing stocks, is at 16.8 times earnings - far below the nearly 22 times forward P/E that stocks commanded at the start of the year.
Seven of the 11 major S&P sectors declined, led by a drop of 1.9% in consumer discretionary .SPLRCD and 1.3% in financial .SPSY stocks.
Shares of megacap technology and growth companies such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O fell between 0.7% and 4.9% as benchmark U.S. Treasury yields hit an 11-year high. US/
Rising yields weigh particularly on valuations of companies in the technology sector, which have high expected future earnings and form a significant part of the market-cap weighted indexes such as the S&P 500.
The S&P 500 tech sector .SPLRCT has slumped 27.8% so far this year, compared with a 20.9% decline in the benchmark index.
"I definitely see the market testing the June lows and there is an increased likelihood that new lows will be set as indicated by the rise in the two-year yield, and the widening of the inversion of the two-year and 10-year yield curve," said Sam Stovall, chief investment strategist at CFRA Research.
The S&P 500 is now around 3% away from its mid-June low, its weakest point of the year.
By 2:01 p.m. ET, the Dow Jones Industrial Average .DJI fell 26.8 points, or 0.09%, to 30,156.98, the S&P 500 .SPX lost 22.93 points, or 0.61%, to 3,767 and the Nasdaq Composite .IXIC dropped 136.49 points, or 1.22%, to 11,083.70.
Recent dismal outlooks from companies including FedEx Corp FDX.N and Ford Motor Co F.N have also raised concerns about the health of corporate America.
Darden Restaurants Inc DRI.N slid 3.9% after the Olive Garden parent reported downbeat first-quarter sales.
Major U.S. airlines - which have enjoyed a rebound amid increased travel as pandemic restrictions end - were also down, with United Airlines UAL.O and American Airlines AAL.O falling 4.9% and 4.3% respectively.
JetBlue Airways Corp JBLU.O was down 6.2%, trading at levels last seen in March 2020.
S&P 500 Forward PEhttps://tmsnrt.rs/3dxGlqX
(Reporting by Sruthi Shankar, Medha Singh, Devik Jain and Ankika Biswas in Bengaluru and David French in New York; Editing by Shounak Dasgupta, Anil D'Silva and Deepa Babington)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of megacap technology and growth companies such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O fell between 0.7% and 4.9% as benchmark U.S. Treasury yields hit an 11-year high. By Devik Jain and David French Sept 22 (Reuters) - Wall Street's main indexes were on course to post their third straight day of declines on Thursday, as traders sold financial and technology stocks on fears the Federal Reserve's aggressive approach to rein in inflation could trigger a recession. US/ Rising yields weigh particularly on valuations of companies in the technology sector, which have high expected future earnings and form a significant part of the market-cap weighted indexes such as the S&P 500.
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Shares of megacap technology and growth companies such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O fell between 0.7% and 4.9% as benchmark U.S. Treasury yields hit an 11-year high. By Devik Jain and David French Sept 22 (Reuters) - Wall Street's main indexes were on course to post their third straight day of declines on Thursday, as traders sold financial and technology stocks on fears the Federal Reserve's aggressive approach to rein in inflation could trigger a recession. As of Friday, the S&P 500's estimated earnings growth for the third quarter is at 5%, according to Refinitiv data.
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Shares of megacap technology and growth companies such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O fell between 0.7% and 4.9% as benchmark U.S. Treasury yields hit an 11-year high. The Fed lifted rates by an expected 75 basis points on Wednesday and signaled a longer trajectory for policy rates than markets had priced in, fuelling fears of further volatility in stock and bond trading in a year that has already seen bear markets in both asset classes. The S&P 500's forward price-to-earnings ratio, a common metric for valuing stocks, is at 16.8 times earnings - far below the nearly 22 times forward P/E that stocks commanded at the start of the year.
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Shares of megacap technology and growth companies such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O fell between 0.7% and 4.9% as benchmark U.S. Treasury yields hit an 11-year high. The Fed lifted rates by an expected 75 basis points on Wednesday and signaled a longer trajectory for policy rates than markets had priced in, fuelling fears of further volatility in stock and bond trading in a year that has already seen bear markets in both asset classes. US/ Rising yields weigh particularly on valuations of companies in the technology sector, which have high expected future earnings and form a significant part of the market-cap weighted indexes such as the S&P 500.
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19242.0
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2022-09-22 00:00:00 UTC
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AAPL November 4th Options Begin Trading
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AAPL
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https://www.nasdaq.com/articles/aapl-november-4th-options-begin-trading
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nan
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nan
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Investors in Apple Inc (Symbol: AAPL) saw new options become available today, for the November 4th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAPL options chain for the new November 4th contracts and identified one put and one call contract of particular interest.
The put contract at the $149.00 strike price has a current bid of $5.95. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $149.00, but will also collect the premium, putting the cost basis of the shares at $143.05 (before broker commissions). To an investor already interested in purchasing shares of AAPL, that could represent an attractive alternative to paying $151.43/share today.
Because the $149.00 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 3.99% return on the cash commitment, or 33.90% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Apple Inc, and highlighting in green where the $149.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $157.50 strike price has a current bid of $4.95. If an investor was to purchase shares of AAPL stock at the current price level of $151.43/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $157.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 7.28% if the stock gets called away at the November 4th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAPL shares really soar, which is why looking at the trailing twelve month trading history for Apple Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAPL's trailing twelve month trading history, with the $157.50 strike highlighted in red:
Considering the fact that the $157.50 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 3.27% boost of extra return to the investor, or 27.75% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $151.43) to be 32%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the Nasdaq 100 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AAPL shares really soar, which is why looking at the trailing twelve month trading history for Apple Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAPL's trailing twelve month trading history, with the $157.50 strike highlighted in red: Considering the fact that the $157.50 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Apple Inc (Symbol: AAPL) saw new options become available today, for the November 4th expiration.
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Below is a chart showing AAPL's trailing twelve month trading history, with the $157.50 strike highlighted in red: Considering the fact that the $157.50 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Investors in Apple Inc (Symbol: AAPL) saw new options become available today, for the November 4th expiration.
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Below is a chart showing AAPL's trailing twelve month trading history, with the $157.50 strike highlighted in red: Considering the fact that the $157.50 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Apple Inc (Symbol: AAPL) saw new options become available today, for the November 4th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAPL options chain for the new November 4th contracts and identified one put and one call contract of particular interest.
|
At Stock Options Channel, our YieldBoost formula has looked up and down the AAPL options chain for the new November 4th contracts and identified one put and one call contract of particular interest. Below is a chart showing AAPL's trailing twelve month trading history, with the $157.50 strike highlighted in red: Considering the fact that the $157.50 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Apple Inc (Symbol: AAPL) saw new options become available today, for the November 4th expiration.
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19243.0
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2022-09-22 00:00:00 UTC
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How to Play Tesla’s Inevitable Demise
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AAPL
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https://www.nasdaq.com/articles/how-to-play-teslas-inevitable-demise
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
[Editor’s note: “How to Play Tesla’s Inevitable Demise” was previously published in June 2021. It has since been updated to include the most relevant information available.]
Fortune favors the bold. Let’s hope fortune favors me when I say it may be time to bet against Tesla (TSLA).
Full disclosure: We own TSLA stock in our Innovation Investor portfolio. How could we not?
Elon Musk & Co. are at the forefront of three of the most disruptive technological shifts in the world today – EVs, solar, and battery storage.
But I’ve been putting some serious thought into finding innovative, disruptive tech companies with the potential for 2X, 5X, or 10X-plus gains.
While Tesla still has the potential for upside, we think there’s a much, much bigger opportunity elsewhere.
I’m growing increasingly bullish on the idea that Lucid Motors (LCID) is about to eat Tesla’s lunch. And as a result, Tesla stock will struggle in the coming years while Lucid Motors stock will roar higher.
It’s a bold claim, I know. I also know the dangers of betting against someone as visionary as Elon Musk, or a company with as much talent as Tesla, or a stock with as much momentum and support as TSLA’s had.
The short-seller graveyard is full of capable folks that got suckered into betting against Tesla and got absolutely burned along the way.
However, as they say, past performance does not guarantee future results.
While the shorts have been dead-wrong about Tesla stock for years, it may finally be their time to shine.
You see, I’ve been a huge bull on Tesla stock. And I have scored my readers 2,000%-plus returns in the name. So, my sudden bearish stance on TSLA does not come from a place of hate for the company.
Rather, it comes from a handful of unbiased observations that Tesla’s brand equity and perception has been diluted. Not to mention its technology advantages have been narrowed. All set the stage for Tesla to lose significant market share to a newer entrant.
And who might that be? Lucid Motors stock.
Here’s the story.
Behind-the-Scenes Erosion at Tesla
For years, the bull thesis on Tesla has hinged on three critical competitive advantages:
Talent. As an influential visionary, Elon Musk is a top-tech talent magnet. Historically, the smartest engineers on the planet have wanted to work for him and at Tesla. That gave Tesla an unrivaled confluence of talent to build EVs.
Technology. Thanks to its unrivaled confluence of talent and huge head-start in the space, Tesla cars have historically been the best-performing cars in the market. Their market-leading battery technology unlocked longer ranges and faster recharge times.
Brand. Tesla is the only “cool,” sub-$100,000 auto brand in the world. And the company got to that point by developing an aura of exclusivity and uniqueness that made everyone want their cars.
Those advantages are now eroding.
Tesla has actually lost a bunch of talent over the past few years. Some has gone on to work at other auto companies. But most of that talent has actually churned to start their own EV startups, on the idea that they can build cars to rival Tesla cars.
The best-of-the-best of these Tesla-inspired startups? Lucid Motors.
Lucid Motors Brings the Talent
The company is led by Peter Rawlinson, the former chief engineer of the Tesla Model S. Yes. This is the engineering brain behind Tesla’s flagship car – the one that started it all.
Supporting him is an impressive team of former Tesla, Audi, Apple (AAPL), Samsung, Ford (F), Intel (INTC), and GM (GM) execs. We’re talking about folks who helped start Tesla and turn it into what it is today. And on top of that are very influential people behind some of Apple’s hero products, like the iPhone.
This is the most impressive confluence of talent in the EV industry outside of Tesla – and it’s not even close. Lucid Motor’s management team stacks up equally to the titan. And considering the current trend of Tesla losing talent and Lucid Motors gaining it, the latter will have much more talent than Tesla by 2025.
And indeed, with this remarkable engineering and design team behind it, Lucid has developed, tested, and fine-tuned some of the industry’s most impressive technology.
To answer your question, yes, this technology beats Tesla’s EV tech on every key performance indicator.
We’re talking longer driving ranges, more horsepower, denser motors, faster acceleration, tighter control – the works.
Tesla Is Being Surpassed
Over the past 10 years, Lucid has created an entirely in-house Lucid Electric Advanced Platform (or LEAP, for short). It comprises key competitive technological advantages including:
A low-floor, wide-base skateboard EV platform enables the company’s ultra-spacious “Space Concept” interior design and allows for more interior cabin space per square foot of vehicle platform than a Tesla car.
An incredibly power-dense drive unit that yields the most efficient battery in the EV industry with 4.5 miles / kWh (versus ~4 miles / kWh for Tesla Model S), and therefore unlocks farther driving ranges of over 500 miles (that’s on par with Tesla’s new super-premium Model S Plaid version), without compromising on performance.
An onboard boost-charge technology dubbed “Wunderbox” that enables ultra-fast charge rates and bidirectional power delivery, which includes vehicle-to-grid and vehicle-to-vehicle charging.
This world-class technology platform is backed by 403 patents – over 80% of which are already issued.
In other words, Tesla’s tech no longer stands alone as the best in the industry. Lucid Motors features a technology portfolio that, pound for pound, rivals and even exceeds Tesla’s.
Brand Dilution
Here’s the thing about cars. We don’t all want to drive the same one. Of particular relevance to Tesla, high-income folks want to drive nicer cars. It’s a status symbol of their wealth.
There’s a reason Porsche (POAHY), Maserati, and Lamborghini don’t make $20,000 cars that everyone can afford. They want to maintain premium brand equity. But Tesla has a dream of democratizing of EV ownership. And as a part of that dream, the company is working tirelessly to drive the price of its cars down to $20,000.
On one hand, that’s great because it means Tesla will unlock mainstream EV demand.
But on the other, it’s bad because it means Tesla is diluting its premium brand equity.
After all, there are tons of millionaires out there who simply won’t buy a car that a just-out-of-college kid could afford as their first.
Sure, there’s a difference between the Model 3 and the Model S. But the ostensible difference isn’t that big. (I have to look extra close to discern whether that’s a Model 3 or Model S on the road with me.) And it certainly isn’t big enough to save Tesla from inevitable premium brand equity erosion as its cars get progressively cheaper.
Yet, EV demand in the premium channel isn’t going anywhere anytime soon. If anything, it will only increase – meaning there is a unique and compelling opportunity over the next few years for a new EV brand to eat Tesla’s lunch in the premium channel.
Enter Lucid Motors
Lucid is positioning itself as a so-called “post-luxury” brand that focuses on elegance and modernity over the traditional legacy focal points – opulence and indulgence. The company has designed its cars with this post-luxury vibe in mind. Earthy tones. Sustainable materials. Simple controls. Connected ecosystem. End-to-end customer experience. Tech-forward. Peaceful ambience. These are attributes that consumers place a high value on today. And Lucid Motors knocks them all out of the park. It’s the dream car.
Importantly, for the next few years at least, it will be a car only the rich can afford. And as such, the Lucid Air will be the most in-demand premium EV in the early 2020s…
The Final Word
Lucid Motors has the talent, technology, and brand to not just rival Tesla in the premium EV market but to actually beat it at its own game.
Does that mean Tesla is dead? No. Far from it.
Tesla will grow like wildfire over the next few years, as the company sells a bunch of Model 3 and Y cars all across the globe, expands its solar business, and makes a successful push into the energy storage world.
But at its current valuation, Tesla stock is priced for perfection and then some. I’m growing skeptical that will happen. If it doesn’t, Tesla stock could be stuck treading water for the next few years.
The investment implication?
It may be time to forget TSLA stock. Buy stock in the companies stealing market share from Tesla – like Lucid Motors.
As I said, fortune favors the bold. If we’re right, it could be the most profitable move we’ve ever made.
Be at the forefront of this epic shift in next-gen mobility and make some monster gains.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
The post How to Play Tesla’s Inevitable Demise appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Supporting him is an impressive team of former Tesla, Audi, Apple (AAPL), Samsung, Ford (F), Intel (INTC), and GM (GM) execs. I also know the dangers of betting against someone as visionary as Elon Musk, or a company with as much talent as Tesla, or a stock with as much momentum and support as TSLA’s had. If anything, it will only increase – meaning there is a unique and compelling opportunity over the next few years for a new EV brand to eat Tesla’s lunch in the premium channel.
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Supporting him is an impressive team of former Tesla, Audi, Apple (AAPL), Samsung, Ford (F), Intel (INTC), and GM (GM) execs. Elon Musk & Co. are at the forefront of three of the most disruptive technological shifts in the world today – EVs, solar, and battery storage. An incredibly power-dense drive unit that yields the most efficient battery in the EV industry with 4.5 miles / kWh (versus ~4 miles / kWh for Tesla Model S), and therefore unlocks farther driving ranges of over 500 miles (that’s on par with Tesla’s new super-premium Model S Plaid version), without compromising on performance.
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Supporting him is an impressive team of former Tesla, Audi, Apple (AAPL), Samsung, Ford (F), Intel (INTC), and GM (GM) execs. And considering the current trend of Tesla losing talent and Lucid Motors gaining it, the latter will have much more talent than Tesla by 2025. An incredibly power-dense drive unit that yields the most efficient battery in the EV industry with 4.5 miles / kWh (versus ~4 miles / kWh for Tesla Model S), and therefore unlocks farther driving ranges of over 500 miles (that’s on par with Tesla’s new super-premium Model S Plaid version), without compromising on performance.
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Supporting him is an impressive team of former Tesla, Audi, Apple (AAPL), Samsung, Ford (F), Intel (INTC), and GM (GM) execs. Lucid Motors stock. And considering the current trend of Tesla losing talent and Lucid Motors gaining it, the latter will have much more talent than Tesla by 2025.
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19244.0
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2022-09-22 00:00:00 UTC
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7 S&P 500 Stocks to Buy During a Stock Market Crash
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AAPL
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https://www.nasdaq.com/articles/7-sp-500-stocks-to-buy-during-a-stock-market-crash
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
This year’s market selloff has been relentless and shows no signs of slowing down anytime soon. With the S&P 500 and Nasdaq indices each down 20% or more on the year and officially in a bear market, many analysts and traders are referring to this year’s downturn as a “crash.”
Famed investors Michael Burry and Jeremy Grantham have each likened this year’s market decline to the dot-com and housing crashes of 2000 and 2008. They predict more pain is ahead for investors as central banks around the world raise interest rates to bring stubbornly high inflation back down to their 2% targets.
The good news for individual retail investors is that there are several sturdy stocks to be found in the S&P 500 index that can be purchased now at discounted prices and provide predictable future gains.
Here are seven S&P 500 stocks to buy during thecurrent stock marketcrash.
AAPL Apple $152.55
TSLA Tesla $289.38
UNH UnitedHealth $517.28
V Visa $185.52
COST Costco $486.84
KO Coca-Cola $59.62
BAC Bank of America $32.56
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Consumer electronics giant Apple (NASDAQ:AAPL) remains the biggest stock in the S&P 500 index by weighting. With a market capitalization of $2.5 trillion, Apple is the biggest publicly traded company in the U.S.
Prior to Covid-19, Apple’s market cap exceeded $3 trillion, making it the most valuable company in the world. It is difficult to overestimate the size and scope of Apple’s influence over the S&P 500 and other indices. A drop in AAPL stock can pull the entire market lower and send investors sprinting for the exits.
Fortunately, Apple remains a stable, profitable and well-run company under the leadership of Tim Cook. Apple’s core electronics products, such as its iPhones, Apple Watches and MacBook computers, remain staples around the world, and are complemented by a growing number of services such as Apple TV, books and podcasts.
The company’s enduring success is the main reason why AAPL stock is only down 14% this year, proving to be more resilient than many other technology stocks. Over the past five years, Apple’s share price has risen 300%.
Tesla (TSLA)
Source: Sheila Fitzgerald / Shutterstock.com
There are plenty of reasons for investors to remain excited about electric vehicle maker Tesla (NASDAQ:TSLA).
While the Austin, Texas-based company has faced challenges this year in the form of regulatory investigations, renewed Covid-19 restrictions in China, and a slowdown in consumer demand, it has also achieved multiple successes. These include opening a new manufacturing plant outside Berlin, Germany, and the doubling of its vehicle sales in the U.S. Tesla remains theglobal marketleader in the electric vehicle space, and all other automakers are rushing to catch it.
In terms of the company’s stock, TSLA shares just split for the second time in as many years. On Aug. 24, Tesla split its stock on a 3-for-1 basis. This followed a 5-for-1 stock split back in August 2020. The latest split has brought the price of TSLA stock down to just under $300 a share.
An 18% decline in the share price has also made the stock more affordable for retail investors. Many analysts continue to expect that Tesla will remain the global leader in EV sales for the foreseeable future given that the company allocates 19% of its gross profits to research and development (R&D), enabling it to stay a few steps ahead of its competitors.
UnitedHealth (UNH)
Source: Ken Wolter / Shutterstock.com
Healthcare isn’t really subject to economic cycles. The healthcare sector is more influenced by demographics such as aging populations, as well as government regulations, prescription drug approvals, and technological advancements. As such, healthcare stocks can help a portfolio weather the ups and downs of the economy and market. One such stock is UnitedHealth Group (NYSE:UNH), the largest health insurer in the U.S. and the biggest healthcare company in the world with annual revenues in excess of $285 billion.
One of the 10 largest stocks in the S&P 500 index, UnitedHealth’s stock is up 3% this year. Over the past 12 months, UNH stock has increased 26% despite the broader downturn in equities. The size and resilience of UnitedHealth’s stock is one reason why investors should consider owning it to help them get through a stock market crash.
UnitedHealth also continues to grow and get bigger. The company just secured a key approval in its efforts to acquire healthcare technology firm Change Healthcare (NASDAQ:CHNG) for $8 billion.
Visa (V)
Source: Kikinunchi / Shutterstock.com
While it hasn’t had a significant breakout in over a year, credit card giant Visa (NYSE:V) remains a dependable blue-chip stock. This year, V stock has declined 14%. But over the last five years, Visa’s stock has increased nearly 80%, and it has gained 660% during the past decade. The San Francisco-based payments company has proven that it can withstand economic and market shocks and emerge stronger on the other side.
The company also has a track record of adapting to technological upheaval, which is the case now with a proliferation of competing financial technology (fintech) companies and payment apps such as Block (NYSE:SQ) and SoFi Technologies (NASDAQ:SOFI).
Despite competitive pressures, Visa remains the market leader among established credit card companies. In 2020, nearly half (49%) of American adults had a Visa card in their wallet, compared to 39% who owned a Mastercard and 15% who had an American Express card. Visa is also a cash cow, having generated $16 billion in free cash flow during the past year, giving it the means to withstand any stock market crash.
Costco (COST)
Source: ilzesgimene / Shutterstock.com
Big-box retailer Costco (NASDAQ:COST) is a reliable bet in any economy. The Seattle-based company has managed to keep its 117 million cardholders renewing their memberships this year by offering lower prices for products ranging from gasoline and eye glasses to meat and vegetables.
As inflation has pushed consumer prices sharply higher, people continue to turn to Costco for deals. This loyalty on the part of its customers enabled Costco, which reports its earnings on a monthly basis, to announce August sales of $17.55 billion, up 11% from a year earlier. The company’s same-store sales rose 8.7% during the month.
There continues to be speculation that Costco plans to raise its membership fees to help offset the impacts of inflation. This speculation grew louder after competitor Sam’s Club announced that it is raising its basic membership fee to $50 from $45. However, so far, Costco has held its two-tier membership fees steady at $60 and $120, respectively. The company has also kept its popular $1.50 hot dog and soft drink deal intact, which has been cheered by patrons.
Year to date, COST stock is down 13%.
Coca-Cola (KO)
Source: Fotazdymak / Shutterstock.com
People continue drinking Coca-Cola (NYSE:KO) even when the stock market is crashing. Some people may drink more Coke when they are stressed by sour market conditions. This makes KO stock a steady investment for investors to hold through market cycles.
In fact, Coca-Cola’s stock is so steady that some analysts liken it to a bond. The share price never rises or falls dramatically, but inches higher over time, all the while paying a decent quarterly dividend that yields 2.95%.
This year is a good example of KO stock’s even temper. Year to date, the share price is up a slight 0.7%. In the past five years, the stock has gained 32%. After seeing its sales slow in 2020 due to restaurant and venue closures because of Covid-19, Coca-Cola has come roaring back. In 2021, the Atlanta-based company’s sales rose 8% as lockdowns ended worldwide. Coca-Cola expects sales to grow a further 12% to 13% this year. Earnings per share are forecast to increase 5% to 6% for all of this year.
Bank of America (BAC)
Source: 4kclips / Shutterstock.com
Higher interest rates should help bolster the finances of Bank of America (NYSE:BAC), the second-largest lender in the U.S. In time, higher rates charged on its mortgages, lines of credit, and other loans will surely be exhibited on Bank of America’s balance sheet and in its stock price. But in the near term, the Charlotte, North Carolina-based financial institution is grappling with a slowing consumer loan business, reduced revenues from its trading and deal desks, volatile commodity prices, and growing fears of an economic recession.
Those issues have helped to push BAC stock down 27% this year. But rather than fret, intrepid investors should see the pullback in BAC stock as a buying opportunity. In addition to its diminished share price, Bank of America also has a low price-earnings ratio of 10.36x and pays a dividend that yields 2.7%.
History shows that bank stocks are among the first to recover when the stock market rebounds from a crash, and Bank of America shareholders should benefit from elevated interest rates over a prolonged period.
On the date of publication, Joel Baglole held long positions in AAPL, V and BAC. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
The post 7 S&P 500 Stocks to Buy During a Stock Market Crash appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAPL Apple $152.55 TSLA Tesla $289.38 UNH UnitedHealth $517.28 V Visa $185.52 COST Costco $486.84 KO Coca-Cola $59.62 BAC Bank of America $32.56 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Consumer electronics giant Apple (NASDAQ:AAPL) remains the biggest stock in the S&P 500 index by weighting. A drop in AAPL stock can pull the entire market lower and send investors sprinting for the exits. The company’s enduring success is the main reason why AAPL stock is only down 14% this year, proving to be more resilient than many other technology stocks.
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AAPL Apple $152.55 TSLA Tesla $289.38 UNH UnitedHealth $517.28 V Visa $185.52 COST Costco $486.84 KO Coca-Cola $59.62 BAC Bank of America $32.56 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Consumer electronics giant Apple (NASDAQ:AAPL) remains the biggest stock in the S&P 500 index by weighting. A drop in AAPL stock can pull the entire market lower and send investors sprinting for the exits. The company’s enduring success is the main reason why AAPL stock is only down 14% this year, proving to be more resilient than many other technology stocks.
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AAPL Apple $152.55 TSLA Tesla $289.38 UNH UnitedHealth $517.28 V Visa $185.52 COST Costco $486.84 KO Coca-Cola $59.62 BAC Bank of America $32.56 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Consumer electronics giant Apple (NASDAQ:AAPL) remains the biggest stock in the S&P 500 index by weighting. The company’s enduring success is the main reason why AAPL stock is only down 14% this year, proving to be more resilient than many other technology stocks. A drop in AAPL stock can pull the entire market lower and send investors sprinting for the exits.
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AAPL Apple $152.55 TSLA Tesla $289.38 UNH UnitedHealth $517.28 V Visa $185.52 COST Costco $486.84 KO Coca-Cola $59.62 BAC Bank of America $32.56 Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Consumer electronics giant Apple (NASDAQ:AAPL) remains the biggest stock in the S&P 500 index by weighting. A drop in AAPL stock can pull the entire market lower and send investors sprinting for the exits. The company’s enduring success is the main reason why AAPL stock is only down 14% this year, proving to be more resilient than many other technology stocks.
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19245.0
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2022-09-22 00:00:00 UTC
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3 Dow Stocks to Buy During a Stock Market Crash
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AAPL
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https://www.nasdaq.com/articles/3-dow-stocks-to-buy-during-a-stock-market-crash
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
So far, 2022 has not been a very good year for stocks. We’ve been engulfed in a bear market with multiple geopolitical and monetary negative catalysts weighing on equities. Dow stocks, though, have weathered the storm a little better than others, and it is possible to find good Dow stocks to buy.
Before today’s action, the Dow Jones Industrial Average was down “just” 14.9% in 2022. While that would be a horrendous performance by most standards, the Dow has performed the best of the four major U.S. stock indices in 2022.
For comparison, the S&P 500 had fallen 18.5% in 2022, while the Nasdaq and Russell 2000 were down 26.6% and 20.4%, respectively. The “risk-on” assets that make up much of the Russell and the Nasdaq are clearly getting battered, while investors are flocking to many of the blue-chip stocks that are more prevalent in the Dow and the S&P 500.
While the S&P 500 has lagged the Dow this year, it’s important to note that the former has 500 stocks in its index, while the latter has just 30.
Let’s focus on three Dow stocks to buy during a potential, upcoming market crash.
Ticker Company Current Price
AAPL Apple $152.45
MSFT Microsoft $239.79
CRM Salesforce $151.44
Dow Stocks to Buy: Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
It should be no surprise that we’re kicking off this list with Apple (NASDAQ:AAPL). It’s the biggest publicly traded company out there with a $2.5 trillion market capitalization, and it’s one of the few tech stocks that is holding up amid the bear market.
The caveat with this stock is that investors may get another shot at buying it near its 2022 lows. Recently, Apple has been one of the better performing stocks in tech. While the market continues to gyrate, AAPL stock has held up relatively well.
But as much as I (and seemingly every investor) love Apple, we must be realistic about it. Analysts, on average, expect its sales to climb just 7.3% this year. In fiscal 2023, the mean estimate calls for a deceleration to just 5% revenue growth.
A similar slowdown is forecast for earnings, with the average estimate calling for 8.7% growth in 2022 and an increase of just 5.7% in 2023. At its current prices, that leaves Apple stock trading at roughly 25 times this year’s earnings. However, if the stock revisits its low, that valuation will drop to about 21 times its earnings, provided analysts’ earnings estimates for AAPL don’t decline as well.
Apple is not invincible. But the growth of the firm’s Services unit, which has double the gross margins of its Products business, is outpacing its overall revenue increases. Moreover, Apple’s free cash flow remains immense, and it is still buying back an enormous number of its shares. Given these points, we can only ignore AAPL for so long.
Dow Stocks to Buy: Microsoft (MSFT)
Source: NYCStock / Shutterstock.com
I hate to be so predictable as to choose another mega-cap tech stock, but with Microsoft’s (NASDAQ:MSFT) $1.83 trillion market cap, it’s hard to ignore.
Microsoft not only has a fortress balance sheet, but it owns a great business. It’s now firmly considered a conglomerate. Although Windows remains the heartbeat of its business, it also has notable assets in enterprise/office sales, cloud, gaming, social media (with LinkedIn) and more.
Perhaps the most notable thing that flies under the radar about Microsoft is the fact that it generates better operating margins than any of the FAANG stocks.
While the FAANG names seem to get all the headlines and attention, Microsoft has somewhat quietly accumulated a massive valuation while generating enormous profits. The best part is that analysts expect the company to continue posting similarly huge bottom lines.
Analysts’ average expectations call for 11.4% revenue growth this year and an acceleration to 14% topline growth in 2023. On the earnings front, their outlook is similar, with the mean estimates calling for 10% growth this year and 18% growth in 2023.
While the market swoons, investors can protect themselves by finding excellent, blue-chip Dow stocks to buy like Microsoft.
Salesforce (CRM)
Source: Bjorn Bakstad / Shutterstock.com
I went back and forth trying to choose the last name on this list. Ultimately though, I probably settled on what will probably be my most controversial pick: Salesforce (NYSE:CRM).
As much as I love the long-term outlooks of Nike (NYSE:NKE), Disney (NYSE:DIS) and others, I can’t ignore the combination of growth and value that Salesforce provides. The shares are making new lows as we speak, and they are down more than 50% from their highs.
However, Salesforce’s management just said that it expects fiscal 2026 revenue of $50 billion. For what it’s worth, that’s about $5 billion more than the average estimate. That’s insane, given that its FY22 revenue was “just” $26.5 billion.
Salesforce’s recent guidance called for $30.9 billion to $31 billion of revenue in FY 23. But it’s staggering that the company believes its revenue is poised to increase that much in a few years.
Analysts, on average, expect roughly flat earnings growth for Salesforce and a 17% increase in its revenue. Even if its earnings do stay flat, we’re talking about 31 times this year’s earnings and 26 times next year’s mean estimate. If the stock declines sharply — say, to $125 a share — CRM stock will trade at 26 times this year’s average estimate and 22 times next year’s mean estimate.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post 3 Dow Stocks to Buy During a Stock Market Crash appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Ticker Company Current Price AAPL Apple $152.45 MSFT Microsoft $239.79 CRM Salesforce $151.44 Dow Stocks to Buy: Apple (AAPL) Source: sylv1rob1 / Shutterstock.com It should be no surprise that we’re kicking off this list with Apple (NASDAQ:AAPL). While the market continues to gyrate, AAPL stock has held up relatively well. However, if the stock revisits its low, that valuation will drop to about 21 times its earnings, provided analysts’ earnings estimates for AAPL don’t decline as well.
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Ticker Company Current Price AAPL Apple $152.45 MSFT Microsoft $239.79 CRM Salesforce $151.44 Dow Stocks to Buy: Apple (AAPL) Source: sylv1rob1 / Shutterstock.com It should be no surprise that we’re kicking off this list with Apple (NASDAQ:AAPL). While the market continues to gyrate, AAPL stock has held up relatively well. However, if the stock revisits its low, that valuation will drop to about 21 times its earnings, provided analysts’ earnings estimates for AAPL don’t decline as well.
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Ticker Company Current Price AAPL Apple $152.45 MSFT Microsoft $239.79 CRM Salesforce $151.44 Dow Stocks to Buy: Apple (AAPL) Source: sylv1rob1 / Shutterstock.com It should be no surprise that we’re kicking off this list with Apple (NASDAQ:AAPL). While the market continues to gyrate, AAPL stock has held up relatively well. However, if the stock revisits its low, that valuation will drop to about 21 times its earnings, provided analysts’ earnings estimates for AAPL don’t decline as well.
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Ticker Company Current Price AAPL Apple $152.45 MSFT Microsoft $239.79 CRM Salesforce $151.44 Dow Stocks to Buy: Apple (AAPL) Source: sylv1rob1 / Shutterstock.com It should be no surprise that we’re kicking off this list with Apple (NASDAQ:AAPL). While the market continues to gyrate, AAPL stock has held up relatively well. However, if the stock revisits its low, that valuation will drop to about 21 times its earnings, provided analysts’ earnings estimates for AAPL don’t decline as well.
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19246.0
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2022-09-22 00:00:00 UTC
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Ford shuffles management in a push to bolster supply chain, EV units
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AAPL
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https://www.nasdaq.com/articles/ford-shuffles-management-in-a-push-to-bolster-supply-chain-ev-units
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nan
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nan
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Sept 22 (Reuters) - Ford Motor Co F.N on Thursday announced a management shuffle and the streamlining of its product development and supply chain units, days after flagging a likely inventory build up of up to 45,000 cars that may lack certain parts.
The automaker said Chief Financial Officer John Lawler would take on the additional responsibility of overseeing the makeover of its global supply chain operations until it names a new supply chain chief.
The global auto industry is undergoing rapid transformation as focus shifts to electric vehicles from those powered by gasoline, driving companies such as Ford and General Motors Co GM.N to commit big investments, while redrawing their strategies to compete in the fast-emerging market.
Earlier this year, Ford said its electric vehicle and internal-combustion engine units would be run as separate entities, in a move aimed at supercharging its EV business.
To bolster its efforts in ramping up the development of electric vehicles, Ford said it was naming Doug Field as chief advanced product development and technology officer.
In the expanded role, Field will oversee EV products, software and digital systems development, and advanced driver assistance, Ford said.
Field, who formerly headed Apple Inc's AAPL.O car project, was poached by the automaker last year to lead its efforts in advanced technology and embedded systems.
"Developing and scaling the next generation of electric and software-defined vehicles requires a different focus and mix of talent ...," Chief Executive Officer Jim Farley said in a statement.
The company also said it was hiring former employees of HP Inc HPQ.N and Alphabet Inc's Google GOOGL.O to support its push to develop fully connected, software defined vehicles and advanced driver assistance systems.
(Reporting by Priyamvada C in Bengaluru; Editing by Anil D'Silva)
((Priyamvada.C@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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Field, who formerly headed Apple Inc's AAPL.O car project, was poached by the automaker last year to lead its efforts in advanced technology and embedded systems. Sept 22 (Reuters) - Ford Motor Co F.N on Thursday announced a management shuffle and the streamlining of its product development and supply chain units, days after flagging a likely inventory build up of up to 45,000 cars that may lack certain parts. The global auto industry is undergoing rapid transformation as focus shifts to electric vehicles from those powered by gasoline, driving companies such as Ford and General Motors Co GM.N to commit big investments, while redrawing their strategies to compete in the fast-emerging market.
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Field, who formerly headed Apple Inc's AAPL.O car project, was poached by the automaker last year to lead its efforts in advanced technology and embedded systems. To bolster its efforts in ramping up the development of electric vehicles, Ford said it was naming Doug Field as chief advanced product development and technology officer. In the expanded role, Field will oversee EV products, software and digital systems development, and advanced driver assistance, Ford said.
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Field, who formerly headed Apple Inc's AAPL.O car project, was poached by the automaker last year to lead its efforts in advanced technology and embedded systems. The automaker said Chief Financial Officer John Lawler would take on the additional responsibility of overseeing the makeover of its global supply chain operations until it names a new supply chain chief. To bolster its efforts in ramping up the development of electric vehicles, Ford said it was naming Doug Field as chief advanced product development and technology officer.
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Field, who formerly headed Apple Inc's AAPL.O car project, was poached by the automaker last year to lead its efforts in advanced technology and embedded systems. The automaker said Chief Financial Officer John Lawler would take on the additional responsibility of overseeing the makeover of its global supply chain operations until it names a new supply chain chief. To bolster its efforts in ramping up the development of electric vehicles, Ford said it was naming Doug Field as chief advanced product development and technology officer.
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19247.0
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2022-09-22 00:00:00 UTC
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Notable ETF Inflow Detected - TQQQ, AAPL, MSFT, META
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AAPL
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https://www.nasdaq.com/articles/notable-etf-inflow-detected-tqqq-aapl-msft-meta
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the ProShares UltraPro QQQ (Symbol: TQQQ) where we have detected an approximate $601.9 million dollar inflow -- that's a 5.8% increase week over week in outstanding units (from 446,700,000 to 472,600,000). Among the largest underlying components of TQQQ, in trading today Apple Inc (Symbol: AAPL) is off about 0.9%, Microsoft Corporation (Symbol: MSFT) is up about 0.5%, and Meta Platforms Inc (Symbol: META) is higher by about 0.2%. For a complete list of holdings, visit the TQQQ Holdings page » The chart below shows the one year price performance of TQQQ, versus its 200 day moving average:
Looking at the chart above, TQQQ's low point in its 52 week range is $21.32 per share, with $91.68 as the 52 week high point — that compares with a last trade of $22.61. 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 TQQQ, in trading today Apple Inc (Symbol: AAPL) is off about 0.9%, Microsoft Corporation (Symbol: MSFT) is up about 0.5%, and Meta Platforms Inc (Symbol: META) is higher by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the ProShares UltraPro QQQ (Symbol: TQQQ) where we have detected an approximate $601.9 million dollar inflow -- that's a 5.8% increase week over week in outstanding units (from 446,700,000 to 472,600,000). 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 TQQQ, in trading today Apple Inc (Symbol: AAPL) is off about 0.9%, Microsoft Corporation (Symbol: MSFT) is up about 0.5%, and Meta Platforms Inc (Symbol: META) is higher by about 0.2%. For a complete list of holdings, visit the TQQQ Holdings page » The chart below shows the one year price performance of TQQQ, versus its 200 day moving average: Looking at the chart above, TQQQ's low point in its 52 week range is $21.32 per share, with $91.68 as the 52 week high point — that compares with a last trade of $22.61. 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 TQQQ, in trading today Apple Inc (Symbol: AAPL) is off about 0.9%, Microsoft Corporation (Symbol: MSFT) is up about 0.5%, and Meta Platforms Inc (Symbol: META) is higher by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the ProShares UltraPro QQQ (Symbol: TQQQ) where we have detected an approximate $601.9 million dollar inflow -- that's a 5.8% increase week over week in outstanding units (from 446,700,000 to 472,600,000). For a complete list of holdings, visit the TQQQ Holdings page » The chart below shows the one year price performance of TQQQ, versus its 200 day moving average: Looking at the chart above, TQQQ's low point in its 52 week range is $21.32 per share, with $91.68 as the 52 week high point — that compares with a last trade of $22.61.
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Among the largest underlying components of TQQQ, in trading today Apple Inc (Symbol: AAPL) is off about 0.9%, Microsoft Corporation (Symbol: MSFT) is up about 0.5%, and Meta Platforms Inc (Symbol: META) is higher by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the ProShares UltraPro QQQ (Symbol: TQQQ) where we have detected an approximate $601.9 million dollar inflow -- that's a 5.8% increase week over week in outstanding units (from 446,700,000 to 472,600,000). For a complete list of holdings, visit the TQQQ Holdings page » The chart below shows the one year price performance of TQQQ, versus its 200 day moving average: Looking at the chart above, TQQQ's low point in its 52 week range is $21.32 per share, with $91.68 as the 52 week high point — that compares with a last trade of $22.61.
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19248.0
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2022-09-22 00:00:00 UTC
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2 Monster Stocks to Buy Without Any Hesitation
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AAPL
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https://www.nasdaq.com/articles/2-monster-stocks-to-buy-without-any-hesitation-5
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nan
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nan
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Usually, a bit of hesitation is good when you're investing. Taking a moment to research a company and understand its valuation, its weak points, and its potential growth is key if you want to succeed.
Every company has issues. But for a very small number of A-list businesses, it's possible to spend hours and hours doing your diligence without finding dealbreakers or major problems that'd give you pause before buying. Let's take a look at two monster stocks that could be great additions to most portfolios and lucrative, long-term holds.
1. Vertex Pharmaceuticals
Vertex Pharmaceuticals (NASDAQ: VRTX) is a monster stock because it's the undisputed master of the market for cystic fibrosis (CF) therapies. CF is a rare disease that requires lifelong treatment to deal with its pulmonary symptoms. There are only about 25,000 CF patients in the Western world that are eligible but not currently enrolled in treatment with any of the company's six therapies for the condition.
Vertex is advancing with commercial efforts to access that untapped market, not to mention chasing an even smaller population of around 5,000 patients for whom wholly new medicines are being developed. It's entirely possible that it'll eventually be treating nearly every diagnosed CF patient in the world, as it already treats more than half of them.
Over the last 10 years, developing and commercializing more and more therapies for CF led to Vertex fattening its annual revenue by 396% to arrive at a total of more than $7.5 billion in 2021. It's strongly profitable, still growing at a moderate pace, and only has $847.3 million in debt, so there aren't any obvious financial barriers in its future. That's key as Vertex is planning to use excess capital generated from its CF therapies to diversify into new disease areas, which will support its long-term growth.
In particular, it's moving forward with potentially curative treatments for sickle cell disease and beta thalassemia, a pair of hereditary blood disorders. If its ongoing phase 2/3 trials for the conditions pan out, it could see a pair of new drugs approved as soon as early 2023. But even if it fails somehow, that won't detract from its successes in CF.
Nor will its base of patients with CF stop needing their medicines. Vertex has so much top-line stability from its CF therapies that it has quite a few chances to try to enter new disease markets before money starts to become a problem. And with plenty of upside exposure via new drug development and limited downside exposure, it's an obvious candidate for being a monster stock moving forward too.
2. Apple
Apple (NASDAQ: AAPL) is another monster stock that's built on its perennial mastery of its markets, and it doesn't need much of an introduction. With $365.8 billion in annual revenue as of 2021, and 159.5% in annual free cash flow growth over the last 10 years, it's a juggernaut both due to its sheer scale and also due to its value-generating momentum. And because its brand is so well-known and associated with quality, it's able to draw customers to practically any new product.
In terms of its top line, iPhones accounted for more than $40 billion in sales out of a total of nearly $83 billion as of its latest quarter. Importantly, Apple is an expert at planned obsolescence, which helps it to retain its market share over time. Many of the iPhones it sells this quarter will be replaced by another one sold by the company in a few short years. So far, perpetuating that trend hasn't required doing too much beyond making incremental improvements to the hardware with each subsequent release while keeping prices relatively stable.
Likewise, its ever-expanding offerings in software and cloud services help generate monthly cash flow in the long term. Though it has competition in most of its segments, Apple's profit margin actually increased over the last five years, even while growing its revenue to all-time highs in the third quarter of its fiscal year.
Investors should expect more profitable growth to come, helped by steady improvements in its existing products and potential launches of new ones. And so with very few reasons not to buy this monster stock (unless you already own a lot of it), it's one that I'd buy without hesitation.
10 stocks we like better than Vertex Pharmaceuticals
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*Stock Advisor returns as of August 17, 2022
Alex Carchidi has positions in Apple. The Motley Fool has positions in and recommends Apple and Vertex Pharmaceuticals. 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 Apple (NASDAQ: AAPL) is another monster stock that's built on its perennial mastery of its markets, and it doesn't need much of an introduction. Vertex is advancing with commercial efforts to access that untapped market, not to mention chasing an even smaller population of around 5,000 patients for whom wholly new medicines are being developed. That's key as Vertex is planning to use excess capital generated from its CF therapies to diversify into new disease areas, which will support its long-term growth.
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Apple Apple (NASDAQ: AAPL) is another monster stock that's built on its perennial mastery of its markets, and it doesn't need much of an introduction. Vertex Pharmaceuticals Vertex Pharmaceuticals (NASDAQ: VRTX) is a monster stock because it's the undisputed master of the market for cystic fibrosis (CF) therapies. The Motley Fool has positions in and recommends Apple and Vertex Pharmaceuticals.
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Apple Apple (NASDAQ: AAPL) is another monster stock that's built on its perennial mastery of its markets, and it doesn't need much of an introduction. Vertex Pharmaceuticals Vertex Pharmaceuticals (NASDAQ: VRTX) is a monster stock because it's the undisputed master of the market for cystic fibrosis (CF) therapies. Over the last 10 years, developing and commercializing more and more therapies for CF led to Vertex fattening its annual revenue by 396% to arrive at a total of more than $7.5 billion in 2021.
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Apple Apple (NASDAQ: AAPL) is another monster stock that's built on its perennial mastery of its markets, and it doesn't need much of an introduction. There are only about 25,000 CF patients in the Western world that are eligible but not currently enrolled in treatment with any of the company's six therapies for the condition. Over the last 10 years, developing and commercializing more and more therapies for CF led to Vertex fattening its annual revenue by 396% to arrive at a total of more than $7.5 billion in 2021.
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19249.0
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2022-09-22 00:00:00 UTC
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Oops! Apple Forgot to Tell Us About the iPhone 14's Best Feature
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AAPL
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https://www.nasdaq.com/articles/oops-apple-forgot-to-tell-us-about-the-iphone-14s-best-feature
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nan
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nan
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Consumer technology-giant Apple (NASDAQ: AAPL) just released the iPhone 14 product line. You know the drill, right? The processor is faster, the cameras are slightly nicer, and the new device offers some features that weren't there last year.
In particular, iPhone 14 comes with an unexpected and highly welcome improvement that might make iPhone converts out of some dyed-in-the-wool Android users. Yet Apple didn't even mention this revolutionary upgrade at its launch event.
Yet again, it makes sense that Apple wants to keep a lid on this important redesign. The company has solid business reasons for doing so. Let me explain.
Image source: Getty Images.
Apple's user-friendly secret
Apple is known for its tight-fisted limitation of home repairs.
iPhones and iPads are held together with special screws and cantankerous glue. When you manage to replace that cracked iPhone 13 screen on your own, you'll find that the phone has lost its auto brightness and ambient light adjustments. The only way to keep those functions intact is to pay through the nose for an authorized repair by Apple's technicians, who can use a special connector to update the screen's expected serial number.
However, the recently unveiled iPhone 14 series made some radical design changes that make it much easier to repair than any iPhone released in the last six years. Independent phone-fixing businesses and enthusiasts, such as iFixit and Zack Nelson (JerryRigEverything), agree that this update is a game changer. Both the screen and the back panel are relatively easy to remove, making it a breeze to handle common phone repairs. That includes replacing a cracked screen or the all-glass back panel, and you don't have to disassemble the entire thing to replace a scratched camera lens anymore.
"These changes to the iPhone will help it last longer and reduce its overall impact on the planet," noted iFixit. "With any luck, it will inspire other manufacturers to follow suit."
In Zack Nelson's iPhone 14 teardown, he said that the parts that are most often broken are easy to fix in the iPhone 14. "I think the iPhone 14 screen and back glass are now even more repairable than on most Android phones, which is something I never thought I would say."
Keep in mind that this wasn't a minor nip-and-tuck redesign -- it's a complete rearrangement of the iPhone's internal design. Every component inside the iPhone has been moved around in order to accommodate the new frame structure.
Image source: Getty Images.
Why Apple isn't pounding the table about this great update
This is arguably the most user-friendly change to the iPhone platform in years, but Apple is keeping quiet about it. Here's how the iFixit team describes the situation:
All of our -- and your -- work has paid off. Our advocating, lobbying, yelling in the streets. We've convinced Apple's design team that repairability matters. Now we need your help to convince their marketing team to talk about it.
Here's the deal. Apple would market the living daylights out of the iPhone 14's superb repairability if it wanted to steal customers from the Android system's target audience. That's not exactly the idea, though. Some Android users are more price-conscious than Apple's nearly fanatical enthusiasts. Cupertino has no interest in generating additional sales if it also needs to lower the price point.
That's especially true in this age of limited semiconductor supplies. Apple can already sell as many iPhones as it can make. There's no need to lower the iPhone's profit margins in this market.
The company could also make the case that an easily repaired phone can stay in your pocket longer. Apple would still love to see you buy a new iPhone as often as possible, preferably every year. Why stretch the service life of a highly profitable product?
Apple still isn't really opening the door to home repairs or alternative repair shops. Replacing your iPhone 14 screen will still remove a couple of handy features due to a missing serial-number update, even if you got your hands on an authentic screen from Apple's factories.
What's the big idea?
Instead, it looks like Apple wants to boost the profit margin on full-featured iPhone repairs. The back glass on an iPhone 14 Pro Max may be extremely simple to replace, with a lower risk of failed repairs and a shorter service time. Apple still charges $549 for that replacement, though. That's up from last year's cost of $399 for the same service on an iPhone 13 Pro Max.
It's hard to say how important the AppleCare repair service is to the company's top and bottom lines. Apple doesn't break out sales or operating profits from this segment in its financial reports, bundling its results with advertising, digital content, and payment service revenues under the services division.
But services is Apple's second-largest business category, trailing only iPhone sales. It's also the fastest-growing part of the company's business. Anything Apple can do to widen the profit margins in this crucial segment should be considered.
Making the iPhone easier to repair is a great example of that profit-boosting idea. Apple isn't ashamed to make massive profits, which explains why many long-term investors love this stock.
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.*
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*Stock Advisor returns as of August 17, 2022
Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends 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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Consumer technology-giant Apple (NASDAQ: AAPL) just released the iPhone 14 product line. The only way to keep those functions intact is to pay through the nose for an authorized repair by Apple's technicians, who can use a special connector to update the screen's expected serial number. Apple would market the living daylights out of the iPhone 14's superb repairability if it wanted to steal customers from the Android system's target audience.
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Consumer technology-giant Apple (NASDAQ: AAPL) just released the iPhone 14 product line. Image source: Getty Images. We've convinced Apple's design team that repairability matters.
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Consumer technology-giant Apple (NASDAQ: AAPL) just released the iPhone 14 product line. Apple's user-friendly secret Apple is known for its tight-fisted limitation of home repairs. Why Apple isn't pounding the table about this great update This is arguably the most user-friendly change to the iPhone platform in years, but Apple is keeping quiet about it.
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Consumer technology-giant Apple (NASDAQ: AAPL) just released the iPhone 14 product line. "I think the iPhone 14 screen and back glass are now even more repairable than on most Android phones, which is something I never thought I would say." There's no need to lower the iPhone's profit margins in this market.
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19250.0
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2022-09-22 00:00:00 UTC
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If I Could Buy Just 1 Stock Right Now, Apple Would Be It. Here's Why.
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AAPL
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https://www.nasdaq.com/articles/if-i-could-buy-just-1-stock-right-now-apple-would-be-it.-heres-why.
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nan
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nan
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One of the key strategies for successful investing is building a well-diversified, balanced portfolio of 25 to 30 stocks and holding them for the long term. Yet every investor has to start somewhere, and laying out the funds for that many stocks at once isn't necessarily practical.
If I had to start over today, I'd look for a company with a strong track record of growth, the ability to ride out an economic storm, and a history of looking out for its shareholders. That's why I think Apple (NASDAQ: AAPL) is a great pick.
The story in a nutshell
Apple is among the most successful consumer product companies in the world, as a result of a number of groundbreaking products that have become household names. Far from a one-trick pony, Apple continues to innovate with its existing products while also looking for the "next big thing." The company is arguably the most successful smartphone maker out there but augments that success with a vast array of consumer products and a growing battery of services.
Often imitated but never replicated, Apple commands impressive market share with many of its products. This has resulted in a fortresslike balance sheet, while also allowing for generous returns to shareholders. The company's products are among the most recognizable and well-loved worldwide, which should help the company continue to generate market-beating returns for years to come.
Built on the iconic iPhone
The 800-pound gorilla in the room is the iPhone. While it wasn't Apple's first wildly successful product (I'm looking at you, iPod), it was the one that catapulted Apple to its current level of fame and fortune.
The iPhone commands the largest market share of any smartphone in the U.S. and is No. 2 worldwide (occasionally taking the top spot). There are currently 1 billion active iPhones in use around the globe, and that number continues to grow.
Apple recently launched the new iPhone 14, which has all the makings of another incredibly prosperous device. Wedbush analyst Daniel Ives points to long and growing wait times for shipping, as some models have delivery dates ranging from four to six weeks. This points to strong demand for the latest version of the company's flagship device. Furthermore, Ives estimates that roughly 240 million iPhone users have not upgraded their phones over the past 3 1/2 years, leading to robust pent-up demand even in the face of economic headwinds.
It's worth noting that the iPhone is responsible for the lion's share of Apple's sales, generating nearly 54% of revenue during the first nine months of fiscal 2022 (ended June 25). This could represent a risk if users were ever to fall out of love with the iPhone.
More than just the iPhone
Beyond the iPhone, Apple has a growing list of products and services that generate nearly half the company's sales. Mac, the Apple computer that started it all, has a strong and loyal following responsible for 15% of all personal computer shipments in the U.S. The iPad, the company's notebook, is the market leader and commands 31% of the global tablet market.
Likewise, the Apple Watch dominates the market, with a 36% share, selling more than three times as many smartwatches as its nearest competitor. The tech titan is also a clear leader in the headphone market, as nearly 50% of consumers in the U.S. use Apple's AirPods or Beats headphones.
It all started with the App Store and iTunes, but Apple's service offerings are vast and growing. The list includes award-winning programming on Apple TV+, high-resolution audio on Apple Music, and secure payments with Apple Wallet. There are also mobile games on Apple Arcade, news on Apple News+, workouts on Apple Fitness+, digital storage on iCloud, and more. Services has been among Apple's fastest-growing segments in recent years, up nearly 18% year over year during the first nine months of fiscal 2022.
This large and growing list of category-leading products and services provides a level of security that Apple will continue to generate stable results for years to come.
Strong shareholder returns
Apple ranks high on the list of shareholder-friendly companies, benefiting investors in more ways than one.
First, it began paying a dividend again in 2012, and since then has amassed a stellar track record. What began as a meager payout of a split-adjusted $0.095 has surged 143% in just 10 years. While its yield is still a relatively low 0.6%, that's a function of Apple's growing stock price, which has gained more than 500% over the past decade -- even after the impact of the recent bear market. Furthermore, the company uses just 15% of its profits to fund the payout, so there's plenty more where that came from.
Then there's the generous share repurchase program. The company has been buying back stock hand over fist during the past decade, retiring nearly 39% of its outstanding shares. That means that each shareholder gets a growing piece of the Apple pie.
Data by YCharts.
A port in the storm
Lastly, Apple's consistently strong results and fortresslike balance sheet offer investors a port that's safe in an economic storm. For the first nine months of fiscal 2022, Apple's revenue of $304 billion grew 8% year over year, while its earnings per share of $4.86 climbed 10%. This is a remarkable achievement, especially considering the company's size and the mounting economic headwinds it has faced.
Not to worry, though: Even if macroeconomic conditions get worse, Apple has the resources to ride out the storm. The company has roughly $60 billion in net cash on its balance sheet, which would tide it over nicely during hard times.
For these reasons and more, Apple is the stock I'd buy if I could only buy one.
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 August 17, 2022
Danny Vena has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That's why I think Apple (NASDAQ: AAPL) is a great pick. Wedbush analyst Daniel Ives points to long and growing wait times for shipping, as some models have delivery dates ranging from four to six weeks. Furthermore, Ives estimates that roughly 240 million iPhone users have not upgraded their phones over the past 3 1/2 years, leading to robust pent-up demand even in the face of economic headwinds.
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That's why I think Apple (NASDAQ: AAPL) is a great pick. This large and growing list of category-leading products and services provides a level of security that Apple will continue to generate stable results for years to come. A port in the storm Lastly, Apple's consistently strong results and fortresslike balance sheet offer investors a port that's safe in an economic storm.
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That's why I think Apple (NASDAQ: AAPL) is a great pick. More than just the iPhone Beyond the iPhone, Apple has a growing list of products and services that generate nearly half the company's sales. The list includes award-winning programming on Apple TV+, high-resolution audio on Apple Music, and secure payments with Apple Wallet.
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That's why I think Apple (NASDAQ: AAPL) is a great pick. More than just the iPhone Beyond the iPhone, Apple has a growing list of products and services that generate nearly half the company's sales. This large and growing list of category-leading products and services provides a level of security that Apple will continue to generate stable results for years to come.
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19251.0
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2022-09-22 00:00:00 UTC
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Is John Hancock Multifactor Large Cap ETF (JHML) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-john-hancock-multifactor-large-cap-etf-jhml-a-strong-etf-right-now-2
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nan
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nan
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The John Hancock Multifactor Large Cap ETF (JHML) made its debut on 09/28/2015, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Blend category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Managed by John Hancock, JHML has amassed assets over $718.74 million, making it one of the larger ETFs in the Style Box - Large Cap Blend. JHML seeks to match the performance of the John Hancock Dimensional Large Cap Index before fees and expenses.
The John Hancock Dimensional Large Cap Index comprises of a subset of securities in the U.S. Universe issued by companies whose market capitalizations are larger than that of the 801st largest U.S. company.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.29% for JHML, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.31%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
JHML's heaviest allocation is in the Information Technology sector, which is about 23.10% of the portfolio. Its Healthcare and Financials round out the top three.
Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 3.97% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN).
JHML's top 10 holdings account for about 16.6% of its total assets under management.
Performance and Risk
The ETF has lost about -19% so far this year and is down about -11.44% in the last one year (as of 09/22/2022). In the past 52-week period, it has traded between $46.37 and $59.70.
JHML has a beta of 1.01 and standard deviation of 24.38% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 780 holdings, it effectively diversifies company-specific risk.
Alternatives
John Hancock Multifactor Large Cap ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the SPDR S&P 500 ETF (SPY) tracks S&P 500 Index. IShares Core S&P 500 ETF has $284.31 billion in assets, SPDR S&P 500 ETF has $340.34 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 3.97% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 3.97% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives John Hancock Multifactor Large Cap ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 3.97% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report The John Hancock Multifactor Large Cap ETF (JHML) made its debut on 09/28/2015, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Blend category of the market.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 3.97% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report The John Hancock Multifactor Large Cap ETF (JHML) made its debut on 09/28/2015, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Blend category of the market.
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19252.0
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2022-09-22 00:00:00 UTC
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Is WisdomTree U.S. Quality Dividend Growth ETF (DGRW) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-wisdomtree-u.s.-quality-dividend-growth-etf-dgrw-a-strong-etf-right-now-3
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nan
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nan
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The WisdomTree U.S. Quality Dividend Growth ETF (DGRW) made its debut on 05/22/2013, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is sponsored by Wisdomtree. It has amassed assets over $6.65 billion, making it one of the larger ETFs in the Style Box - Large Cap Value. DGRW, before fees and expenses, seeks to match the performance of the WisdomTree U.S. Quality Dividend Growth Index.
The WisdomTree U.S. Quality Dividend Growth Index is a fundamentally weighted index that consists of dividend-paying stocks with growth characteristics.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.28%.
It's 12-month trailing dividend yield comes in at 2.20%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
Representing 22.10% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Consumer Staples and Healthcare round out the top three.
When you look at individual holdings, Johnson & Johnson (JNJ) accounts for about 5.46% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
DGRW's top 10 holdings account for about 37.86% of its total assets under management.
Performance and Risk
Year-to-date, the WisdomTree U.S. Quality Dividend Growth ETF has lost about -12.71% so far, and is down about -2.98% over the last 12 months (as of 09/22/2022). DGRW has traded between $55.42 and $66.20 in this past 52-week period.
DGRW has a beta of 0.88 and standard deviation of 22% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 298 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. Quality Dividend Growth ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. IShares Core Dividend Growth ETF has $22.44 billion in assets, Vanguard Dividend Appreciation ETF has $59.33 billion. DGRO has an expense ratio of 0.08% and VIG charges 0.06%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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WisdomTree U.S. Quality Dividend Growth ETF (DGRW): ETF Research Reports
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Johnson & Johnson (JNJ): Free Stock Analysis Report
Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports
iShares Core Dividend Growth ETF (DGRO): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When you look at individual holdings, Johnson & Johnson (JNJ) accounts for about 5.46% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report The WisdomTree U.S. Quality Dividend Growth ETF (DGRW) made its debut on 05/22/2013, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market.
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When you look at individual holdings, Johnson & Johnson (JNJ) accounts for about 5.46% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index.
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When you look at individual holdings, Johnson & Johnson (JNJ) accounts for about 5.46% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index.
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When you look at individual holdings, Johnson & Johnson (JNJ) accounts for about 5.46% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report The WisdomTree U.S. Quality Dividend Growth ETF (DGRW) made its debut on 05/22/2013, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market.
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2022-09-22 00:00:00 UTC
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Should iShares Russell 1000 Growth ETF (IWF) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-ishares-russell-1000-growth-etf-iwf-be-on-your-investing-radar-3
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Launched on 05/22/2000, the iShares Russell 1000 Growth ETF (IWF) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $58.39 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies usually have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.18%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.74%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 46.80% of the portfolio. Consumer Discretionary and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 11.67% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 45.63% of total assets under management.
Performance and Risk
IWF seeks to match the performance of the Russell 1000 Growth Index before fees and expenses. The Russell 1000 Growth Index measures the performance of the large-capitalization growth sector of the U.S. equity market.
The ETF has lost about -27.23% so far this year and is down about -20.20% in the last one year (as of 09/22/2022). In the past 52-week period, it has traded between $209.90 and $309.52.
The ETF has a beta of 1.08 and standard deviation of 27.36% for the trailing three-year period, making it a medium risk choice in the space. With about 525 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell 1000 Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IWF is a great option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $70.58 billion in assets, Invesco QQQ has $154.81 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares Russell 1000 Growth ETF (IWF): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 11.67% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report It has amassed assets over $58.39 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 11.67% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 05/22/2000, the iShares Russell 1000 Growth ETF (IWF) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 11.67% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 05/22/2000, the iShares Russell 1000 Growth ETF (IWF) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 11.67% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
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2022-09-22 00:00:00 UTC
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Got $1,500? You Can Confidently Add These 3 Stocks to Your Portfolio
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https://www.nasdaq.com/articles/got-%241500-you-can-confidently-add-these-3-stocks-to-your-portfolio-2
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If you're feeling nervous about the stock market, you're not the only one.
Investors are coping with their first sustained bear market in more than 13 years. Inflation is as high as it's been in 40 years, and the economic disruption from the pandemic has made it nearly impossible to predict what's next.
For investors, the bear market may be nerve-wracking, but it also presents an opportunity to buy high-quality stocks on sale. If you've got $1,500 to spare, about a week's paycheck for the average, the three stocks below are likely to make it grow. Splitting the $1,500 three ways will give you a good mix of growth and safety.
1. Costco: A market-beating stock in any economy
If there's any brick-and-mortar retailer that deserves to be called bulletproof, it's Costco (NASDAQ: COST). The warehouse retailer is the clear leader in the membership-based, buy-in-bulk category, and its base of 64.4 million households gives it a level of customer loyalty that the typical retailer doesn't have. That membership income also allows the company to offer rock-bottom prices on merchandise.
Costco members love the chain for its low prices, quality products, great savings, and variety of merchandise. Its membership renewal percentage is now over 90% globally and above 92% in North America.
The retail giant has performed well not only in the brick-and-mortar channel but also online as it's finally embraced e-commerce after years of avoiding it. Costco has proven its mettle throughout the pandemic, outperforming during early stages of the crisis and more recently, even as peers like Walmart and Target have seen profits shrink due to inflation and excess inventory. Comparable sales adjusted in the fiscal year that just ended rose 10.6%, and its operating income increased 8% to $1.8 billion at a time when most of the retail sector is seeing earnings fall.
With the stock down more than 20% from its peak this year, Costco should reward long-term investors at the current price.
2. Alphabet: A digital advertising beast
Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) has been a longtime winner on the stock market largely because of one product. Google Search is the most successful advertising product in the history of the world and continues to deliver solid top-line growth and wide operating margins even when much of the rest of the digital advertising industry is struggling due to challenges from Apple's ad-tracking transparency initiative and the rise of TikTok.
In its most recent quarter, Alphabet brought in $69.69 billion, an increase of 13% year-over-year, and delivered an operating margin of 28%. This was driven primarily by growth in Google Search.
Alphabet's search product has dominant market share in the world outside of China, and it continues to grow, as a search engine is an essential utility in the modern world, and demand to be on Google's search page is increasing. Its cost-per-click rate also rebounded last year after a lull during 2020.
Alphabet stock looks well-priced at the moment, trading at a price-to-earnings (P/E) ratio of just 19, essentially even with the S&P 500. Considering the business has long outgrown the S&P 500, and the company is gaining market share in digital advertising, Alphabet looks well positioned to beat the market from here.
3. ServiceNow: A reliable cloud winner
The software-as-a-service sector (SaaS) has gotten slammed over the last year, and it's easy to see why. Price-to-sales (P/S) ratios for many of these stocks were at 30 or even higher, and many of those were unprofitable. Too much growth was priced in, and rising interest rates and recession fears caused an abrupt shift in market sentiment and valuations.
However, not every software stock is unprofitable, and ServiceNow (NYSE: NOW) offers a great example of a larger, mature cloud stock that you can count on to deliver solid returns. ServiceNow offers a wide range of software products for IT services and operations, as well customer service and workflows.
The company's performance speaks for itself as it has a long track record of steady growth and profitability as the chart below shows.
NOW Operating Revenue (Quarterly YoY Growth) data by YCharts.
In its most recent quarter, the number of customers spending at least $10 million with ServiceNow topped 100, and quarterly non-GAAP revenue increased 29.5% year over year to $1.82 billion. Adjusted operating income was $399 million, equal to a 23% margin. And, with its backlog up 27% in currency-neutral terms to $12 billion, the company seems to be resisting the macroeconomic headwinds.
ServiceNow stock is down 40% from its peak last fall, and the stock looks very reasonably priced at a P/E ratio of 44 based on 2023 expected earnings.
With that growth trajectory and valuation, ServiceNow looks set to outperform in the next bull market.
10 stocks we like better than Alphabet (A shares)
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Jeremy Bowman has positions in Target. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Costco Wholesale, ServiceNow, Inc., Target, and Walmart 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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Costco has proven its mettle throughout the pandemic, outperforming during early stages of the crisis and more recently, even as peers like Walmart and Target have seen profits shrink due to inflation and excess inventory. Comparable sales adjusted in the fiscal year that just ended rose 10.6%, and its operating income increased 8% to $1.8 billion at a time when most of the retail sector is seeing earnings fall. Too much growth was priced in, and rising interest rates and recession fears caused an abrupt shift in market sentiment and valuations.
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Alphabet: A digital advertising beast Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) has been a longtime winner on the stock market largely because of one product. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Costco Wholesale, ServiceNow, Inc., Target, and Walmart 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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Alphabet: A digital advertising beast Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) has been a longtime winner on the stock market largely because of one product. See the 10 stocks *Stock Advisor returns as of August 17, 2022 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Costco Wholesale, ServiceNow, Inc., Target, and Walmart Inc.
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Google Search is the most successful advertising product in the history of the world and continues to deliver solid top-line growth and wide operating margins even when much of the rest of the digital advertising industry is struggling due to challenges from Apple's ad-tracking transparency initiative and the rise of TikTok. Considering the business has long outgrown the S&P 500, and the company is gaining market share in digital advertising, Alphabet looks well positioned to beat the market from here. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Costco Wholesale, ServiceNow, Inc., Target, and Walmart Inc.
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2022-09-22 00:00:00 UTC
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7 Dow Stocks to Buy on the Dip or You’ll Be Kicking Yourself Later
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https://www.nasdaq.com/articles/7-dow-stocks-to-buy-on-the-dip-or-youll-be-kicking-yourself-later
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
This may be your best chance to find Dow stocks to buy on the dip, although that might not seem intuitive given the current market climate.
Still, if you have a long time horizon and a reasonable risk outlook, this may be the time to not only stay in equities but to make opportunistic buys. Historically, the market has an upward bias, but the market doesn’t announce when it hits a bottom.
The Dow is seen as a barometer for the broader economy, and since every component of the index pays a dividend, owning one or more of the Dow stocks can help smooth out the current market volatility.
Furthermore, some of these Dow stocks to buy on the dip are beginning to reach more attractive valuations which means they will likely have significant upside when the market does reverse course.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
When many investors consider Apple (NASDAQ:AAPL) it’s due to its iconic iPhone. Not only does the iPhone command a significant market share, but it also carries a loyal following.
Apple continues to expand its ecosystem with devices like the Apple Watch. This fits the definition of stocks that investors should be considering. That is, companies that make products that will continue to be in high demand.
A growing portion of its revenue, however, is coming from its Services business. In fact, this area of the business accounts for approximately $20 billion a quarter. In the trailing 12 months that means between 16% and 25% of the company’s revenue came from this division.
The company recently announced it will be increasing the price for apps and in-app purchases on its App Store beginning in October for all of the eurozone plus several countries in South America and Asia.
Microsoft (MSFT)
Source: The Art of Pics / Shutterstock.com
Microsoft (NASDAQ:MSFT) is one of the perennial Dow stocks to buy on the dip. And my overall thesis for Microsoft is similar to that of Apple. The pandemic showed that Microsoft has a role to play in many of the high growth areas of our economy – particular in the area of cloud computing. Anytime a company can say it’s a worthy competitor to Amazon (NASDAQ:AMZN) in any area it’s impressive. And as my colleague Bret Kenwell noted Azure has been a huge part of the company’s success.
The company’s current P/E ratio of around 26x earnings puts the stock at a premium to the S&P 500. However, as the saying goes, it’s not bragging if you can back it up. And the company is projected to show double digit growth in both revenue and earnings for the next five years.
Plus, the company has a rather attractive dividend compared to others in its sector. A dividend mind you that it just increased for the 19th consecutive year.
Chevron (CVX)
Source: Jeff Whyte / Shutterstock.com
Energy stocks have been one of the best-performing sectors in 2022, but Chevron (NYSE:CVX) is the only traditional energy company that makes the list of Dow stocks.
The simple thesis for owning CVX stock is that oil prices aren’t likely to stay depressed forever. When the economy does turn around, demand for oil will lead the way. Yes, renewable energy is coming, but it’s not time to close the book on traditional fossil fuels…yet.
Plus, like many traditional oil and gas companies, Chevron is making strategic investments in renewable energy although it’s fair to note that it is not investing directly in wind and solar at this time.
In a recent Q&A session with investors, Chevron CEO Mike Wirth expressed the sentiment that the dividend remains one of the company’s primary priorities. The company’s dividend is already one of the best in the entire market. It currently pays out $5.68 on an annual basis and has increased it for the last 35 consecutive years.
Home Depot (HD)
Source: Helen89 / Shutterstock.com
Similar to Chevron, Home Depot (NYSE:HD) is another stock to consider as a harbinger of better days.
The housing market is slowing considerably and that is reflected in the HD stock price which is down 35% in 2022. However, lower demand doesn’t mean that demand is non-existent, and that is reflected in the company’s revenue and earnings which continue to grow on a year-over-year basis.
That being said, the need for home improvement supplies doesn’t stop once individuals move into a new home. In fact, as hurricane season reaches its peak, it’s a good reminder that the company’s products will always be in demand.
Plus, as Josh Enomoto reminds investors the heft of the company’s products has allowed it to hold off Amazon at least for now.
HD stock currently trades at about 16x earnings which puts its valuation about right with the S&P 500. And the company pays an attractive annual dividend of $7.60 per share which currently is about a 2.19% dividend yield.
McDonald’s (MCD)
Source: Gargantiopa / Shutterstock
During the pandemic, McDonald’s (NYSE:MCD) showed why it’s important to pay attention to what consumers do more than what they say they’re going to do. Or in the case of McDonald’s what they say they won’t do. McDonald’s is frequently dismissed as a restaurant chain that consumers would never buy food from.
Well as it turns out, the company known for its Golden Arches did brisk business during the pandemic.
Although the company’s earnings growth is not expected to continue to remain at pandemic levels, it still is projecting high single-digit earnings growth in the next couple of years.
JPMorgan Chase (JPM)
Source: Daryl L / Shutterstock.com
Buying quality stocks is always important. However, in times like this, it’s especially important to make sure you’re buying best-in-class stocks. That’s a reason to buy JPMorgan Chase (NYSE:JPM). It’s easy to see why the banking giant makes the list of Dow stocks.
The economy may be facing “storm clouds” if CEO Jamie Dimon is correct. But so far, it’s having little effect on the bank’s revenue and earnings which remain strong. In fact, Dimon remarked that the bank will be fine during a recession.
JPM stock is down 26% for the year, but some analysts believe that much of the bad news has been priced into bank stocks. Investors will get their first glance at how well the bank is really doing when the company reports earnings in mid-October.
Even if stock price growth remains sluggish, investors are currently getting an annualized dividend of $4.00 per share that has been increasing for 10 consecutive years.
Visa (V)
Source: Kikinunchi / Shutterstock.com
Visa (NYSE:V) is the last of the Dow stocks to buy on this list. A troubling reality that many Americans are facing is using credit cards to manage their monthly budget.
Visa makes a relatively small amount on those purchases, but that’s not to say it makes nothing. In fact, in the last four quarters, the company recorded $28 billion in revenue from the fees it charges. That was a gain of 24% over the trailing twelve months.
That growth is likely coming from the consumer’s continued commitment to travel. There’s no telling how long that will last. Still if consumers are forced to rely on credit that would bode well for Visa. Plus, consumers continue to express a preference for paying with debit cards and credit cards instead of cash. That trend is unlikely to change which bodes well for V stock.
On the date of publication, Chris Markoch had LONG positions in AAPL, CVX, and MCD. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.
The post 7 Dow Stocks to Buy on the Dip or You’ll Be Kicking Yourself Later appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com When many investors consider Apple (NASDAQ:AAPL) it’s due to its iconic iPhone. On the date of publication, Chris Markoch had LONG positions in AAPL, CVX, and MCD. Furthermore, some of these Dow stocks to buy on the dip are beginning to reach more attractive valuations which means they will likely have significant upside when the market does reverse course.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com When many investors consider Apple (NASDAQ:AAPL) it’s due to its iconic iPhone. On the date of publication, Chris Markoch had LONG positions in AAPL, CVX, and MCD. Chevron (CVX) Source: Jeff Whyte / Shutterstock.com Energy stocks have been one of the best-performing sectors in 2022, but Chevron (NYSE:CVX) is the only traditional energy company that makes the list of Dow stocks.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com When many investors consider Apple (NASDAQ:AAPL) it’s due to its iconic iPhone. On the date of publication, Chris Markoch had LONG positions in AAPL, CVX, and MCD. InvestorPlace - Stock Market News, Stock Advice & Trading Tips This may be your best chance to find Dow stocks to buy on the dip, although that might not seem intuitive given the current market climate.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com When many investors consider Apple (NASDAQ:AAPL) it’s due to its iconic iPhone. On the date of publication, Chris Markoch had LONG positions in AAPL, CVX, and MCD. InvestorPlace - Stock Market News, Stock Advice & Trading Tips This may be your best chance to find Dow stocks to buy on the dip, although that might not seem intuitive given the current market climate.
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2022-09-22 00:00:00 UTC
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3 Cheap Dow Jones Stocks to Buy Right Now
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https://www.nasdaq.com/articles/3-cheap-dow-jones-stocks-to-buy-right-now
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The Dow Jones Industrial Average has retreated 16% this year and contains some powerhouse blue-chip stocks that now yield mouthwatering valuations. Some Dow Jones stocks have performed worse than others, but today's worst performers could be tomorrow's best investments. Here are three cheap stocks on the Dow Jones that you should consider seriously.
Apple gets more profitable each year
Warren Buffett started accumulating shares of Apple (NASDAQ: AAPL) in 2016 and bought more in the first and second quarters of this year as the shares slumped. He regards the company as "probably the best business ... in the world."
Apple commands roughly 50% of the smartphone market in the U.S. and a healthy share of theglobal market But it might be the services that iPhone customers add on that keep making the company more profitable every year. For a small fee, iPhone users can download music from the Apple Music app, make contactless payments with Apple Pay, and store their pictures in their iCloud storage.
Image source: Getty Images.
All these add-on services are digital, which means every new customer costs Apple very little. Therefore, every dollar of additional revenue from a new service customer is more profitable than the last. In 2017, when Apple first disclosed the data, its gross margin from services was 55%. That's more than the 35.7% gross margin from products like iPhones, Macs, and iPads. By 2021, the gross margin from Apple's services had vaulted to nearly 70%.
Services gross margin has had a noticeable impact on the overall company. Over the same time frame, Apple's gross margin expanded from 38.5% to 41.8%.
American Express' new customers may surprise you
Buffett's relationship with American Express (NYSE: AXP) goes back even further than his history with Apple. He bought 5% of the company in 1962 for about $20 million when the company was entangled in what would come to be known as "the Salad Oil Scandal." After a few additional purchases and sales throughout the years, the stake is now worth over $23 billion.
These days, American Express is best known as the go-to credit card for folks who like to travel. Its cardholder services include perks like discounts on streaming services, frequent flyer miles, and free-of-charge luxury airport suites for those long layovers. American Express cardholders gush over the company's customer service.
The stock has a couple of things going for it. First, business travel is picking up significantly. Spending is on pace to grow 34% year over year in 2022 to $933 billion. That number is still below 2019's pre-pandemic mark of $1.4 trillion. So, growth potential remains as the world starts to normalize again.
Further, American Express is not your parents' credit card company anymore. Its fastest-growing cohort is millennials, Gen Z, and Gen X. Those customers are at a point in their careers where income and ability to spend will increase for many years.
Nike has a sustainable advantage
Buffett loves the powerful brands that Apple and American Express possess. Although Buffett no longer owns shares of Nike (NYSE: NKE), the company's brand awareness is still right up there with those two Buffett stocks. Nike started building its brand in 1984 when the company signed then NBA rookie Michael Jordan to an endorsement deal. The popularity of the legendary Hall of Famer vaulted Nike into the upper echelon of athletic shoes and apparel.
Since then, Nike has repeated the formula for decades by signing other superstars like LeBron James, Kevin Durant, and Cristiano Ronaldo. Nike has grown its empire to a level where competitors like Adidas and Under Armour don't have the resources to sign high-profile stars like Nike can.
The dollars Nike pays for its suite of superstar athletes affords it the luxury of charging extra for its shoes and athletic gear. That extra pricing power makes Nike about twice as profitable as its competitors.
NKE Operating Margin (TTM) data by YCharts
Nike's industry position should allow it to sustain an industry-leading operating margin (revenue minus things like raw materials, advertising, and wages) as long as sports remain one of the world's most popular events. Yet Nike's stock is down 38% this year. Don't be surprised if the Oracle of Omaha scoops up shares of beaten-down Nike stock in the coming quarters.
But are the stocks cheap?
Apple's stock is down about 13% this year and trades at a price-to-earnings ratio of under 26 times. Buffett was a buyer in the first two quarters of the year, and investors have a similar price to Buffett's. If the valuation was good enough for the Oracle of Omaha, it should be good enough for anyone.
American Express stock is also down and now trades at a price-to-earnings ratio of 16 times. That's a 25% discount to its five-year average. With multiple growth levers, in the long run, the shares look cheap.
Nike stock has been the worst performer of the three this year, down 38%. But it might have one of the most sustainable competitive advantages. The stock now trades at a price-to-earnings ratio of 28 times, which is a 40% discount from its five-year average.
If you're a blue chip investor looking for bargains, the Dow Jones is an excellent place to start looking right now. These three stocks offer significant upside for long-term investors. As such, if you're investing for the long haul, you should consider buying these Dow Jones stocks while they're still cheap.
10 stocks we like better than Apple
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American Express is an advertising partner of The Ascent, a Motley Fool company. BJ Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Nike, and Under Armour (C Shares). The Motley Fool recommends Under Armour (A Shares) 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 gets more profitable each year Warren Buffett started accumulating shares of Apple (NASDAQ: AAPL) in 2016 and bought more in the first and second quarters of this year as the shares slumped. The Dow Jones Industrial Average has retreated 16% this year and contains some powerhouse blue-chip stocks that now yield mouthwatering valuations. Nike started building its brand in 1984 when the company signed then NBA rookie Michael Jordan to an endorsement deal.
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Apple gets more profitable each year Warren Buffett started accumulating shares of Apple (NASDAQ: AAPL) in 2016 and bought more in the first and second quarters of this year as the shares slumped. American Express' new customers may surprise you Buffett's relationship with American Express (NYSE: AXP) goes back even further than his history with Apple. Nike has a sustainable advantage Buffett loves the powerful brands that Apple and American Express possess.
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Apple gets more profitable each year Warren Buffett started accumulating shares of Apple (NASDAQ: AAPL) in 2016 and bought more in the first and second quarters of this year as the shares slumped. Although Buffett no longer owns shares of Nike (NYSE: NKE), the company's brand awareness is still right up there with those two Buffett stocks. See the 10 stocks *Stock Advisor returns as of August 17, 2022 American Express is an advertising partner of The Ascent, a Motley Fool company.
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Apple gets more profitable each year Warren Buffett started accumulating shares of Apple (NASDAQ: AAPL) in 2016 and bought more in the first and second quarters of this year as the shares slumped. American Express cardholders gush over the company's customer service. Yet Nike's stock is down 38% this year.
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2022-09-22 00:00:00 UTC
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2 Cheap Dow Jones Stocks to Buy Hand Over Fist, and 1 to Avoid
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https://www.nasdaq.com/articles/2-cheap-dow-jones-stocks-to-buy-hand-over-fist-and-1-to-avoid
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The Dow Jones Industrial Average has tumbled nearly 16% this year in reaction to recession fears and rising interest rates. Some stocks in the 30-company index have fallen by even more. For long-term investors, that presents an opportunity as the stocks that make up the DJIA are often described as blue chip stocks and offer great opportunities to also be described as long-term winners. Unfortunately, there are also a few that deserve hard passes.
Let's take a closer look at two Dow Jones stocks that are worth a closer look and one that is probably better avoided right now.
One to buy: Apple keeps getting more profitable
The release of the iPhone 14 could make Apple (NASDAQ: AAPL) more profitable than it already is. Apple enthusiasts may have noticed a subtle change to the iPhone 14 mix from previous models. This year's versions include two Pro versions (Pro and Pro Max) and no iPhone Mini. The main benefits of the Pro versions are the robust cameras and faster processors, and those features require more memory to operate. The additional memory in the Pro versions is cheap. Since the upgraded versions carry a much higher price tag, they're much more profitable smartphones than versions with less memory. Apple captures a 90% gross margin on the price difference between the Pro versions and versions with less memory.
After Apple introduced the Pro models in 2019, the gross margin that Apple reaped from its product segment reached 37%, its highest mark since Apple disclosed such data in 2018. Since the iPhone makes up the bulk of Apple's revenue, every percentage point of margin increase impacts its bottom line significantly.
This could be one of the reasons why Warren Buffett said Apple is probably the best company in the world that he knows. The legendary investor is known for buying stocks of great companies when they get cheap. He bought chunks of the stock in the first two quarters of the year for his company, Berkshire Hathaway. Investors looking to buy in now might be pleased to know that the stock has fallen over the last month to around the same price Buffett bought it at earlier this year. If the stock is cheap enough for the Oracle of Omaha to buy, investors should take note. They would also be wise to make Apple a core holding in their portfolios.
Another to buy: Salesforce can grow faster than the cloud industry
Outside of energy, cloud computing seems to be one of the remaining sectors seeing widespread growth this year. Unlike energy companies, though, cloud companies' stock prices cratered in 2022. This price dip could be a huge opportunity for savvy long-term investors, especially when you consider industry forecasts call for the cloud computing market to grow at a 17.4% annual clip through 2030.
Cloud giant Salesforce (NYSE: CRM) is best known for its wildly popular Customer Relationship Management (CRM) software, which gives its customer's sales teams cloud-based collaboration and marketing tools to strengthen customer relationships and expand sales opportunities. Perhaps more compelling to investors is Salesforce's acquisition strategy, which includes acquiring up-and-coming cloud-based collaboration companies, integrating them into the company, and quickly scaling them up.
For instance, Salesforce bought MuleSoft in May of 2018. MuleSoft generated $227 million of revenue at the time of acquisition, and Salesforce rapidly grew its annual revenue by 499% to $1.7 billion. More impressively, the company rolled up ExactTarget in July of 2013 and increased its revenue by 949%, from $286 million to $3 billion. Salesforce plans to do the same with its 2019 acquisition of Tableau and 2021 buyout of Slack. Its acquisition strategy combined with its unique CRM platform should put it in a great position to grow its business faster than the cloud industry forecast.
There are growing concerns that the slowing economy will also slow the growth in cloud computing, which may be why the stock is down this year. But Salesforce still managed to grow its fiscal 2023 second-quarter (ended July 31) revenue to $7.72 billion on a constant currency basis (after adjusting for currency fluctuations), a 26% year-over-year jump. That comes on the heels of 26% year-over-year revenue growth in the first quarter.
Though Salesforce's stock price is off over 40% this year, its long-term growth story remains intact. Wall Street analysts forecast the company will grow its earnings per share by 220% to $4.74 in fiscal 2023 (ending Jan. 31, 2023). That implies a forward price-to-earnings ratio of 31, which is significantly cheaper than it's been in over a year. Growth investors excited by the cloud computing should be adding Salesforce stock to their portfolios.
CRM PE Ratio (Forward) data by YCharts
One to avoid: 3M faces multiple monster legal liabilities
3M (NYSE: MMM) has long been an industrial juggernaut. The company has a storied history and is known for Scotch tape, Post-It notes, and produces hundreds of other industrial, electronics, and healthcare products. But a couple of those products have gotten 3M in hot water recently.
The company is embroiled in a legal battle with plaintiffs in New York who are accusing 3M and other companies of contaminating drinking water with toxic chemicals. The defendants recently settled one suit with a small New York town that manages the water, but additional civil claims are expected. One environmental lawyer said the settlement was the tip of the iceberg, and settlements from other claims will likely cost 3M billions of dollars.
3M is also facing legal settlements from veterans who claim they suffered hearing loss from earplugs the company sold to the U.S. military. The company has already settled with some individual veterans who were awarded damages that averaged $26 million each. The 3M subsidiary responsible for the earplugs filed for Chapter 11 bankruptcy protection, but a judge denied a motion to move the case to bankruptcy court. With over 230,000 more veterans who have filed similar claims, 3M is likely to be hit with additional mammoth liability.
3M's courtroom troubles may already be reflected in the stock's 35% tumble this year, but both of these issues still have considerable uncertainty and could worsen. 3M has set aside $1 billion to a trust for potential earplug settlements, but total settlements could far exceed the trust deposit. That's before accounting for the contaminated drinking water suit. Until investors have a clearer view of the end result of these cases, they'll want to avoid 3M 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.
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*Stock Advisor returns as of August 17, 2022
BJ Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and Salesforce, Inc. The Motley Fool recommends 3M 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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One to buy: Apple keeps getting more profitable The release of the iPhone 14 could make Apple (NASDAQ: AAPL) more profitable than it already is. This price dip could be a huge opportunity for savvy long-term investors, especially when you consider industry forecasts call for the cloud computing market to grow at a 17.4% annual clip through 2030. Its acquisition strategy combined with its unique CRM platform should put it in a great position to grow its business faster than the cloud industry forecast.
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One to buy: Apple keeps getting more profitable The release of the iPhone 14 could make Apple (NASDAQ: AAPL) more profitable than it already is. Another to buy: Salesforce can grow faster than the cloud industry Outside of energy, cloud computing seems to be one of the remaining sectors seeing widespread growth this year. Cloud giant Salesforce (NYSE: CRM) is best known for its wildly popular Customer Relationship Management (CRM) software, which gives its customer's sales teams cloud-based collaboration and marketing tools to strengthen customer relationships and expand sales opportunities.
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One to buy: Apple keeps getting more profitable The release of the iPhone 14 could make Apple (NASDAQ: AAPL) more profitable than it already is. Unlike energy companies, though, cloud companies' stock prices cratered in 2022. See the 10 stocks *Stock Advisor returns as of August 17, 2022 BJ Cook has no position in any of the stocks mentioned.
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One to buy: Apple keeps getting more profitable The release of the iPhone 14 could make Apple (NASDAQ: AAPL) more profitable than it already is. Investors looking to buy in now might be pleased to know that the stock has fallen over the last month to around the same price Buffett bought it at earlier this year. Though Salesforce's stock price is off over 40% this year, its long-term growth story remains intact.
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2022-09-22 00:00:00 UTC
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3 Beaten-Down Nasdaq Stocks You'll Regret Not Buying the Dip On
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https://www.nasdaq.com/articles/3-beaten-down-nasdaq-stocks-youll-regret-not-buying-the-dip-on
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The tech-heavy Nasdaq has been crushed this year. The Nasdaq Composite is down 27% and could be a fertile breeding ground for quality high-growth stocks selling at mouthwatering prices. Though there is lingering uncertainty about the global macroeconomic environment, you might regret not buying the dip on these three Nasdaq names.
1. Warren Buffett is Apple's biggest cheerleader
Apple (NASDAQ: AAPL) is the largest holding in Warren Buffett's company, Berkshire Hathaway. The company first started accumulating shares in 2016. Then in a show of confidence in the company, Buffett bought more shares in the first two quarters of this year.
After the old-fashioned investor finally traded his flip phone for an iPhone in 2020, he regarded the product as a "sticky" one. He was referring to the wildly loyal iPhone enthusiasts who repeatedly return to the product time and time again. The iPhone is one of the most popular smartphone brands in the world, controlling about 50% of the U.S. market and a healthy share of theglobal market But there is more to it that makes the iPhone "sticky."
Image source: Getty Images.
Another massive appeal of the smartphone is its add-on services. iPhone users can download music from the Apple Music app, store selfies on their iCloud storage, and access their credit and debit cards with Apple Pay. After paying a small monthly fee for the services, iPhone users would be reluctant to switch to a competing smartphone if it meant potentially abandoning their photos or reentering all their personal payment info on another device.
Apple still makes most of its revenue and profits from the iPhone, but the more profitable services segment is gaining steam rapidly. In 2017, when Apple first disclosed the data, services made up only about 14 % of Apple's overall revenue but carried a gross margin of 55 % compared to 35.7% for iPhones, Macs, and iPads. Through the first nine months of Apple's current fiscal year, services accounted for over 19 % of overall revenue, and its gross margin had increased to an astonishing 72.2%.
Apple has plenty of room to grow its services business and continue to expand its profitability. For instance, over the last 12 months, Apple Pay has transacted more payment volume than Mastercard, but 39% of Americans haven't yet heard of it.
2. Verisign has a monopoly on the internet
Verisign (NASDAQ: VRSN) is a lesser-known Buffett holding that Berkshire first bought in 2013. The company is entrusted by the Internet Corporation for Assigning Names and Numbers (ICANN), which is responsible for organizing and maintaining internet protocol. ICANN granted Verisign the exclusive rights to operate the registry of the .com and .net domains.
That means that any entity with a website ending in .com or .net must pay an annual fee to Verisign to authorize their webpage. In exchange for the monopolistic rights on its domains, Verisign is tasked with security and ensuring they're up and running 24 hours a day, every day. That's a huge responsibility, considering the company processes billions of daily queries. But on its most recent quarterly report, the company boasted 25 years of uninterrupted availability of its domains.
Over the last decade, the prolific growth of the internet and the number of web pages has allowed Verisign to nearly double its revenue from $772 million in 2011 to over $1.3 billion in 2021. Over that time, the company used profits to repurchase nearly a third of its shares. Those share repurchases are another reason Buffett owns the stock.
3. The future of surgery
Intuitive Surgical (NASDAQ: ISRG) makes robots that can perform routine surgical operations under its da Vinci brand with the aid of a surgeon. Knowing that the robotic surgeries would still require a licensed surgeon, the company used its first-mover advantage to start teaching surgeons to use the machine at colleges and universities. The advantage is that hospitals will be very reluctant to switch to a competing robot and force their surgeons to learn an entirely new system.
Perhaps more attractive to investors is that Intuitive Surgical sells disposable instruments needed for each surgery its robots perform. Those high-margin consumables add to the company's overall margin with every new robot it sells. As the surgery volume of Intuitive's systems has grown over the years, so has its recurring instruments revenue, which now pulls in more revenue than its systems. Analysts are expecting the robotics leader to grow revenue by nearly 13% in 2023, which would be a solid measure for the company that's rebounding from pandemic-related slowdowns.
Growth stocks at a discount
AAPL PE Ratio data by YCharts.
The year-to-date dip in Nasdaq stocks has allowed investors to buy shares of these three companies at a valuation they haven't seen this year. All three stocks are down considerably from their highest price-to-earnings ratio for the year. There's no saying when these stocks or the Nasdaq will recover. But when the index does recover, these three stocks could lead the charge. Buying the dip in these stocks could replace regret with joy in the long run.
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 August 17, 2022
BJ Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Intuitive Surgical, and VeriSign. 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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Warren Buffett is Apple's biggest cheerleader Apple (NASDAQ: AAPL) is the largest holding in Warren Buffett's company, Berkshire Hathaway. Growth stocks at a discount AAPL PE Ratio data by YCharts. After paying a small monthly fee for the services, iPhone users would be reluctant to switch to a competing smartphone if it meant potentially abandoning their photos or reentering all their personal payment info on another device.
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Warren Buffett is Apple's biggest cheerleader Apple (NASDAQ: AAPL) is the largest holding in Warren Buffett's company, Berkshire Hathaway. Growth stocks at a discount AAPL PE Ratio data by YCharts. The future of surgery Intuitive Surgical (NASDAQ: ISRG) makes robots that can perform routine surgical operations under its da Vinci brand with the aid of a surgeon.
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Warren Buffett is Apple's biggest cheerleader Apple (NASDAQ: AAPL) is the largest holding in Warren Buffett's company, Berkshire Hathaway. Growth stocks at a discount AAPL PE Ratio data by YCharts. The year-to-date dip in Nasdaq stocks has allowed investors to buy shares of these three companies at a valuation they haven't seen this year.
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Warren Buffett is Apple's biggest cheerleader Apple (NASDAQ: AAPL) is the largest holding in Warren Buffett's company, Berkshire Hathaway. Growth stocks at a discount AAPL PE Ratio data by YCharts. After paying a small monthly fee for the services, iPhone users would be reluctant to switch to a competing smartphone if it meant potentially abandoning their photos or reentering all their personal payment info on another device.
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2022-09-21 00:00:00 UTC
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Should Vanguard Mega Cap ETF (MGC) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-vanguard-mega-cap-etf-mgc-be-on-your-investing-radar-4
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If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Vanguard Mega Cap ETF (MGC), a passively managed exchange traded fund launched on 12/17/2007.
The fund is sponsored by Vanguard. It has amassed assets over $3.62 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.07%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.52%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 32.70% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.79% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
Performance and Risk
MGC seeks to match the performance of the CRSP US Mega Cap Index before fees and expenses. The CRSP U.S. Mega Cap Index includes the largest U.S. companies, with a target of including the top 70% of investable market capitalization. The index includes securities traded on NYSE, NYSE Market, NASDAQ or ARCA.
The ETF has lost about -19.87% so far this year and is down about -11.73% in the last one year (as of 09/21/2022). In the past 52-week period, it has traded between $128.05 and $169.35.
The ETF has a beta of 1 and standard deviation of 24.54% for the trailing three-year period, making it a medium risk choice in the space. With about 242 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Mega Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, MGC is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $289.26 billion in assets, SPDR S&P 500 ETF has $341.96 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Vanguard Mega Cap ETF (MGC): ETF Research Reports
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.79% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report It has amassed assets over $3.62 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.79% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Vanguard Mega Cap ETF (MGC), a passively managed exchange traded fund launched on 12/17/2007.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.79% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives Vanguard Mega Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.79% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Vanguard Mega Cap ETF (MGC), a passively managed exchange traded fund launched on 12/17/2007.
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2022-09-21 00:00:00 UTC
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2 Top Buffett Stocks To Buy and Hold for the Long Haul
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https://www.nasdaq.com/articles/2-top-buffett-stocks-to-buy-and-hold-for-the-long-haul-5
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Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett has mastered the art and science of value investing. He pays no attention to market trends, but insists on buying top-quality businesses with great leadership teams. Buffett's investing philosophy is steeped in old-school financial analysis and he reads 10-K filings for fun (and profit).
The Oracle of Omaha famously prefers business models so simple that a ham sandwich could run them. He originally aimed that quip at Coca-Cola (NYSE: KO), which sells water-based drinks to a human species that consists of roughly 60% water. It's like selling umbrellas in the rain, hawing ice pops at the beach, or marketing acorns to squirrels. Coke's business runs itself. It would take a lot of extremely poor decisions to mess it up. Coke is a robust cash machine with a generous dividend, currently yielding 3%. Buffett has held 400 million split-adjusted shares of Coca-Cola since 1994, not selling a single stub along the way. That's what a successful investment looks like in Warren Buffett's winning playbook.
Against that ultra-safe backdrop, it might surprise you to hear that Warren Buffett's company also makes plenty of investments in the tech sector -- and some of these high-tech purchases were incredibly farsighted. Here are two tickers from Berkshire's portfolio that might surprise you -- and could set you up for decades of wealth-building returns.
Apple: The elephant in Buffett's wallet
iPhone maker Apple (NASDAQ: AAPL) is Berkshire's largest holding nowadays, by a long shot. Cupertino's stock accounted for 41% of Berkshire's investments at the end of 2021. At today's prices, these 907.6 million shares are worth $142 billion. The holding was built for an aggregate price of $34.25 per share. We're talking about a return of 357% in seven years -- not too shabby!
And Berkshire keeps increasing its slice of Apple's total shares. The company was Apple's largest shareholder in 2020 with a 5.4% stake, but that ratio rose to 5.6% in 2021. Buffett didn't buy any more Apple shares last year. Instead, his ownership increased thanks to Apple's generous share buybacks.
Apple generated $108 billion of free cash flow over the last four quarters. At the same time, the company spent $83 billion on share buybacks and another $14.8 billion on dividend checks. In other words, Apple sent 91% of its free cash flows right into shareholders' pockets. If you ever wondered what Apple is doing with its enormous cash profits, there's your answer. The cash machine Is tuned to deliver tremendous value to its stockholders.
It's easy to see why a deep-pocketed investor like Warren Buffett loves owning Apple shares. Yeah, the iPhone is a wonder of high technology, but Apple's products also form an addictive ecosystem -- quite similar to Coca-Cola's flavored water. Once you're in, you don't want to leave. Prices may rise, next year's device might not be a whole lot better than the one you already own, and it doesn't really matter. Millions of people don't even think about Android phones, PC computers, or any app store from another company. So the cash keeps flowing in, and Apple supports its rising stock chart with those free-handed buybacks.
Now, the largest stock on today's market probably won't offer the most exciting future returns. It's harder to add impressive percentage-based returns on top of a higher starting point, and Apple's $2.5 trillion market cap is as lofty as it gets. But if you're interested in slower but ultra-predictable gains for the long haul, Apple's and its shareholder-friendly cash management policies should serve you well.
BYD Company: Buffett's early bet on electric vehicles
Elon Musk's Tesla (NASDAQ: TSLA) didn't invent the electric car. The Tesla Model S was first sold in 2012 but Berkshire Hathaway invested $232 million in BYD Company (OTC: BYDDY) way back in 2008, right when the China-based company rolled out its first plug-in hybrid vehicles. That's still a long way behind the first mass-market plug-in hybrids from Toyota and Honda, which hit storerooms in 2001, but still a very early investment in a brand-new market.
BYD (short for "Build Your Dream") has delivered stellar returns on Berkshire's investment. The holding is now worth $6.4 billion, delivering a 2,600% return in 14 years.
The road to these gains has been bumpy, mind you. BYD struggled to keep up with the S&P 500 index for more than a decade. The company's portfolio also included traditional cars, consumer electronics, and more, and there wasn't much pop in the business. China is huge but vehicles designed for this market tend to be value-oriented and not-too-profitable.
The stock soared in 2020 as BYD started to extend its reach to Europe. It's easy to see exactly where on this chart the European expansion started:
BYDDY data by YCharts
BYD has also started delivering vehicles to South America and Japan. The company isn't making gasoline-powered cars these days, focusing exclusively on the electric opportunity. And in the first half of 2022, BYD shipped 641,000 EV's. Tesla shifted 564,000 units in the same period. Hence, Buffett's favorite electric vehicle specialist is now the largest name in the market on a global level.
Chinese tech stocks are not every investor's cup of tea, but Buffett's stamp of approval makes a big difference. If it's good enough for the Oracle, you can bet that BYD's papers are in order.
This is not a cheap stock, trading at 138 times trailing earnings and 25 times free cash flows. But sales have more than doubled in the last two years and BYD generates a steady flow of robust profits. If you see Apple as Buffett's ultimate long-term value play, BYD is a very early investment in a tremendously exciting growth sector. And these are still early chapters in the growth story of EV sales.
10 stocks we like better than Apple
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Anders Bylund has positions in Tesla. The Motley Fool has positions in and recommends Apple, BYD, Berkshire Hathaway (B shares), and Tesla. 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: The elephant in Buffett's wallet iPhone maker Apple (NASDAQ: AAPL) is Berkshire's largest holding nowadays, by a long shot. He originally aimed that quip at Coca-Cola (NYSE: KO), which sells water-based drinks to a human species that consists of roughly 60% water. Against that ultra-safe backdrop, it might surprise you to hear that Warren Buffett's company also makes plenty of investments in the tech sector -- and some of these high-tech purchases were incredibly farsighted.
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Apple: The elephant in Buffett's wallet iPhone maker Apple (NASDAQ: AAPL) is Berkshire's largest holding nowadays, by a long shot. BYD Company: Buffett's early bet on electric vehicles Elon Musk's Tesla (NASDAQ: TSLA) didn't invent the electric car. The Motley Fool has positions in and recommends Apple, BYD, Berkshire Hathaway (B shares), and Tesla.
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Apple: The elephant in Buffett's wallet iPhone maker Apple (NASDAQ: AAPL) is Berkshire's largest holding nowadays, by a long shot. The Motley Fool has positions in and recommends Apple, BYD, Berkshire Hathaway (B shares), and Tesla. 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.
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Apple: The elephant in Buffett's wallet iPhone maker Apple (NASDAQ: AAPL) is Berkshire's largest holding nowadays, by a long shot. Buffett didn't buy any more Apple shares last year. That's right -- they think these 10 stocks are even better buys.
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19261.0
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2022-09-21 00:00:00 UTC
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3 Tech Stocks to Buy on the Dip, or You’ll be Kicking Yourself Later
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AAPL
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https://www.nasdaq.com/articles/3-tech-stocks-to-buy-on-the-dip-or-youll-be-kicking-yourself-later
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
For growth investors, technology-related companies have been a great place to park investment capital over the last decade. With new innovation, there’s been solid growth, which investors have paid handsomely for. Accordingly, for those seeking the best returns possible, focusing on top tech stocks to buy has been a winning strategy.
However, this year, investors aren’t paying up for growth anymore. That’s because tech stocks have been hit hard as a result of the Federal Reserve’s aggressive interest rate hiking schedule. Unfortunately, with more in the way of hikes expected this week, more valuation compression for tech stocks could be on the horizon.
That said, despite a macro environment that will likely remain bumpy, investors looking for long-term capital appreciation may want to start creating a new buy list.
Here’s my list of three top tech stocks to buy on the dip, for those who don’t want to be kicking themselves later.
AAPL Apple $157.89
GOOG Alphabet $102.56
MSFT Microsoft $244.05
Apple (AAPL)
Source: askarim / Shutterstock
The largest company by market capitalization in the world, Apple (NASDAQ:AAPL) really needs no introduction.
This consumer discretionary king has absolutely dominated the smartphone market for approximately a decade. Interestingly, Apple has provided investors with a relatively diversified set of business lines, with the company’s core iPhone product leading the way. But there’s also Macs, the Apple Watch, iPods, and a range of very profitable accessories (namely, Air Pods) which have provided incredible profitability over the years.
Apple’s earnings have exploded following the pandemic, as a surge in cheap capital flooded to discretionary upgrades. Certainly, in times of stress, these purchases may decrease. That said, Apple’s margins are truly impressive, and this is a company with pricing power. While Apple has decided not to increase the prices on its core iPhone lines this year, it’s clear that consumers are willing to pay up for the best technology. Accordingly, over time, Apple is an inflation-beating tech stock worth taking a look at right now.
As a sort of defensive moat, Apple is a company with an enormous cash pile and a loyal customer base. These factors should not be understated, and should help get this company through any turmoil on the horizon. No matter how bleak investors think the economic future may be, Apple has proven its ability to grow in good times and bad. Thus, this is the top stock I’m tethered to right now.
Alphabet (GOOG)
Source: IgorGolovniov / Shutterstock.com
Perhaps the most well-known company in terms of search around the world is Alphabet (NASDAQ:GOOG). The core foundation of this company’s business is built upon digital advertising, which has continued to explode over time. Indeed, even in the pandemic, companies didn’t really slow their pace of online advertising spend. Accordingly, this $1.33 trillion company continued to see valuation expansion at a time many were turning bearish.
As it turns out, Alphabet’s strong performance from its core business has led to a declining multiple of late. With that, investors can now pick up shares of GOOG stock for less than 20 times trailing earnings. That’s about as cheap as I’ve ever seen this growth stock trade. Much of this has to do with, once again, lower estimates for forward-looking growth.
Like other tech companies that have sought diversification, Alphabet’s new core growth driver is its cloud business. Over time, this business should offset any choppiness from its core search business.
Microsoft (MSFT)
Source: Asif Islam / Shutterstock.com
Another company with dominant market share is Microsoft (NASDAQ:MSFT). According to Statista, the Windows OS is loaded on more than 76% of personal computers worldwide, in comparison to 15.3% of Apple’s Mac OS. That’s impressive, and is one of the key reasons why long-term investors continue to hold software and services leader Microsoft.
Like other major mega-cap tech stocks, Microsoft saw a boost during the pandemic. That’s partly because remote working became the norm, with society’s slow shift in this direction heating up. While many employees are returning to the office, cloud service demand has continued to skyrocket. As a leader in this space, growing 28% year over year in this segment alone, Microsoft is a key player to watch in terms of growth.
Microsoft’s valuation multiple has reflected this higher growth trajectory, for sure. This is a mega-cap tech stock (worth $1.82 trillion) trading at 25 times earnings. That’s expensive for most companies, never mind those trading at this kind of a valuation.
That said, Microsoft’s operating margins of around 40% and highly cash-generative core business makes future cloud-based growth seem more attractive. This is a company I think will likely always trade at a premium, and is worth a look at this lower valuation today.
On the date of publication, Chris MacDonald has shares of Apple and Amazon. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
The post 3 Tech Stocks to Buy on the Dip, or You’ll be Kicking Yourself Later appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAPL Apple $157.89 GOOG Alphabet $102.56 MSFT Microsoft $244.05 Apple (AAPL) Source: askarim / Shutterstock The largest company by market capitalization in the world, Apple (NASDAQ:AAPL) really needs no introduction. That’s because tech stocks have been hit hard as a result of the Federal Reserve’s aggressive interest rate hiking schedule. Interestingly, Apple has provided investors with a relatively diversified set of business lines, with the company’s core iPhone product leading the way.
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AAPL Apple $157.89 GOOG Alphabet $102.56 MSFT Microsoft $244.05 Apple (AAPL) Source: askarim / Shutterstock The largest company by market capitalization in the world, Apple (NASDAQ:AAPL) really needs no introduction. Microsoft (MSFT) Source: Asif Islam / Shutterstock.com Another company with dominant market share is Microsoft (NASDAQ:MSFT). This is a mega-cap tech stock (worth $1.82 trillion) trading at 25 times earnings.
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AAPL Apple $157.89 GOOG Alphabet $102.56 MSFT Microsoft $244.05 Apple (AAPL) Source: askarim / Shutterstock The largest company by market capitalization in the world, Apple (NASDAQ:AAPL) really needs no introduction. InvestorPlace - Stock Market News, Stock Advice & Trading Tips For growth investors, technology-related companies have been a great place to park investment capital over the last decade. Like other tech companies that have sought diversification, Alphabet’s new core growth driver is its cloud business.
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AAPL Apple $157.89 GOOG Alphabet $102.56 MSFT Microsoft $244.05 Apple (AAPL) Source: askarim / Shutterstock The largest company by market capitalization in the world, Apple (NASDAQ:AAPL) really needs no introduction. Here’s my list of three top tech stocks to buy on the dip, for those who don’t want to be kicking themselves later. This is a mega-cap tech stock (worth $1.82 trillion) trading at 25 times earnings.
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19262.0
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2022-09-21 00:00:00 UTC
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After Hours Most Active for Sep 21, 2022 : TQQQ, BHC, LUMN, AAPL, SQQQ, HST, DTP, CRBG, CMCSA, T, QQQ, PCG
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-sep-21-2022-%3A-tqqq-bhc-lumn-aapl-sqqq-hst-dtp-crbg-cmcsa-t-qqq
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -38.5 to 11,599.29. The total After hours volume is currently 80,694,625 shares traded.
The following are the most active stocks for the after hours session:
ProShares UltraPro QQQ (TQQQ) is -0.32 at $22.92, with 3,671,523 shares traded. This represents a 7.5% increase from its 52 Week Low.
Bausch Health Companies Inc. (BHC) is unchanged at $7.10, with 3,528,306 shares traded. BHC's current last sale is 88.75% of the target price of $8.
Lumen Technologies, Inc. (LUMN) is unchanged at $8.46, with 2,694,897 shares traded. LUMN's current last sale is 76.91% of the target price of $11.
Apple Inc. (AAPL) is unchanged at $153.72, with 2,258,185 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
ProShares UltraPro Short QQQ (SQQQ) is +0.68 at $52.46, with 2,184,720 shares traded. This represents a 86.36% increase from its 52 Week Low.
Host Hotels (HST) is unchanged at $16.80, with 2,156,612 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2022. The consensus EPS forecast is $0.4. As reported by Zacks, the current mean recommendation for HST is in the "buy range".
DTE Energy Company (DTP) is +0.0682 at $50.67, with 2,000,000 shares traded.
Corebridge Financial Inc. (CRBG) is -0.35 at $20.84, with 1,892,097 shares traded.
Comcast Corporation (CMCSA) is unchanged at $32.70, with 1,710,594 shares traded., following a 52-week high recorded in today's regular session.
AT&T Inc. (T) is unchanged at $16.25, with 1,677,789 shares traded., following a 52-week high recorded in today's regular session.
Invesco QQQ Trust, Series 1 (QQQ) is -1.34 at $282.22, with 1,655,065 shares traded. This represents a 4.81% increase from its 52 Week Low.
Pacific Gas & Electric Co. (PCG) is -0.0099 at $13.00, with 1,597,015 shares traded. PCG's current last sale is 81.25% of the target price of $16.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is unchanged at $153.72, with 2,258,185 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2022.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is unchanged at $153.72, with 2,258,185 shares traded. Comcast Corporation (CMCSA) is unchanged at $32.70, with 1,710,594 shares traded., following a 52-week high recorded in today's regular session.
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Apple Inc. (AAPL) is unchanged at $153.72, with 2,258,185 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Bausch Health Companies Inc. (BHC) is unchanged at $7.10, with 3,528,306 shares traded.
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Apple Inc. (AAPL) is unchanged at $153.72, with 2,258,185 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The following are the most active stocks for the after hours session:
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19263.0
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2022-09-21 00:00:00 UTC
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Notable Wednesday Option Activity: AAPL, DRI, GIS
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AAPL
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https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-aapl-dri-gis
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 596,521 contracts have traded so far, representing approximately 59.7 million underlying shares. That amounts to about 70.2% of AAPL's average daily trading volume over the past month of 85.0 million shares. Especially high volume was seen for the $160 strike call option expiring September 23, 2022, with 61,649 contracts trading so far today, representing approximately 6.2 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $160 strike highlighted in orange:
Darden Restaurants, Inc. (Symbol: DRI) saw options trading volume of 6,580 contracts, representing approximately 658,000 underlying shares or approximately 66.2% of DRI's average daily trading volume over the past month, of 993,980 shares. Especially high volume was seen for the $115 strike put option expiring October 21, 2022, with 2,052 contracts trading so far today, representing approximately 205,200 underlying shares of DRI. Below is a chart showing DRI's trailing twelve month trading history, with the $115 strike highlighted in orange:
And General Mills Inc (Symbol: GIS) options are showing a volume of 21,845 contracts thus far today. That number of contracts represents approximately 2.2 million underlying shares, working out to a sizeable 60.4% of GIS's average daily trading volume over the past month, of 3.6 million shares. Especially high volume was seen for the $80 strike call option expiring October 21, 2022, with 4,782 contracts trading so far today, representing approximately 478,200 underlying shares of GIS. Below is a chart showing GIS's trailing twelve month trading history, with the $80 strike highlighted in orange:
For the various different available expirations for AAPL options, DRI options, or GIS options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $160 strike call option expiring September 23, 2022, with 61,649 contracts trading so far today, representing approximately 6.2 million underlying shares of AAPL. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 596,521 contracts have traded so far, representing approximately 59.7 million underlying shares. That amounts to about 70.2% of AAPL's average daily trading volume over the past month of 85.0 million shares.
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Below is a chart showing AAPL's trailing twelve month trading history, with the $160 strike highlighted in orange: Darden Restaurants, Inc. (Symbol: DRI) saw options trading volume of 6,580 contracts, representing approximately 658,000 underlying shares or approximately 66.2% of DRI's average daily trading volume over the past month, of 993,980 shares. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 596,521 contracts have traded so far, representing approximately 59.7 million underlying shares. That amounts to about 70.2% of AAPL's average daily trading volume over the past month of 85.0 million shares.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 596,521 contracts have traded so far, representing approximately 59.7 million underlying shares. Especially high volume was seen for the $160 strike call option expiring September 23, 2022, with 61,649 contracts trading so far today, representing approximately 6.2 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $160 strike highlighted in orange: Darden Restaurants, Inc. (Symbol: DRI) saw options trading volume of 6,580 contracts, representing approximately 658,000 underlying shares or approximately 66.2% of DRI's average daily trading volume over the past month, of 993,980 shares.
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Especially high volume was seen for the $160 strike call option expiring September 23, 2022, with 61,649 contracts trading so far today, representing approximately 6.2 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $160 strike highlighted in orange: Darden Restaurants, Inc. (Symbol: DRI) saw options trading volume of 6,580 contracts, representing approximately 658,000 underlying shares or approximately 66.2% of DRI's average daily trading volume over the past month, of 993,980 shares. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 596,521 contracts have traded so far, representing approximately 59.7 million underlying shares.
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19264.0
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2022-09-21 00:00:00 UTC
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Where Will Apple Be in 5 Years?
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AAPL
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https://www.nasdaq.com/articles/where-will-apple-be-in-5-years
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nan
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nan
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Apple (NASDAQ: AAPL) is in a near duopoly with Samsung in one of the world's most addictive products: smartphones. Combined, the two account for over half the global smartphone market. In the U.S., however, the iPhone commands about 50% of the market.
Warren Buffett, one of Apple's largest shareholders and most prominent cheerleaders, believes Apple is the best business he knows in the world. Throughout the iPhone's upgrade cycles, Apple has consistently improved its design and functionality to meet ever-changing consumer tastes. Perhaps most importantly, the iPhone's camera gets better with every new version. iPhone users can quickly snap the highest-quality selfies and videos of their kid's soccer games and post them to social media in a heartbeat.
Referring to lines of iPhone loyalists who wait outside Apple stores in advance of its new releases, Buffett's right-hand man Charlie Munger quipped: "I've got zillions of friends who'd almost part with their right arm before they'd part with their iPhone. That's a hugely powerful position to be in."
But it's more than just the iPhone that's keeping people entrenched in the Apple ecosystem.
Why Apple's iPhone is a "sticky" product
Buffett has referred to the iPhone as a "sticky" product, meaning customers repeatedly return to Apple's smartphones. Aside from the iPhone's design appeal, users like the brand because of its add-on services. iPhone users can purchase additional iCloud storage, download music from the Apple Music app, and conduct touchless payments with Apple Pay. And if iPhone users wanted to switch to a competitor, they might have to abandon precious data stored in their iCloud or reenter their cards on a new payment platform.
Image source: Getty Images.
The tiny fees customers gladly shell out for these widely used services may seem like small potatoes for the behemoth company, which has a market cap approaching $2.5 trillion, but the financial impact may surprise you. Because these services are digital, there is minimal additional cost when an iPhone customers add a service. That means every new dollar in revenue Apple receives from its service is more profitable than the last.
Apple generated $32.7 billion of revenue from its services in 2017, when it first disclosed the segment's results. The gross margin on its service revenue that year was 55%. By 2021, service revenue had doubled to $68.4 billion, and gross margin had leaped to nearly 70%.
Apple's services business has plenty of room to keep growing. For example, only about 75% of iPhone customers have activated Apple Pay, and many haven't begun to use it. Yet Apple Pay has already overtaken Mastercard in transaction volume over the last 12 months. As users continue to adopt Apple Pay and download new music, Apple's services segment can become a larger part of the overall business, which has grown from about 20% of overall gross margin in 2017 to over 31% last year.
Where will Apple be in five years?
Apple has a huge advantage over many companies in that its increasingly profitable service segment is also its fastest growing. After you factor in that the segment also makes iPhone users more loyal to the company, you can see why Buffett loves the company.
AAPL Shares Outstanding data by YCharts
Another reason Buffett likes Apple is its share repurchases. The company has religiously retired shares over the last 10 years, which increases the percentage of the company existing shareholders own. Similarly, repurchasing shares en masse also increases its earnings per share, all else being equal.
When you combine Apple's business advantages over other companies with its ability to retire shares at a prodigious clip, you have a stock that has a high probability of outperforming the market over the next five years. Investors are wise to follow Buffett's lead, considering he bought more shares in the first and second quarters of this year as the stock retreated from its 2021 highs.
10 stocks we like better than Apple
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of August 17, 2022
BJ Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Mastercard. 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 in a near duopoly with Samsung in one of the world's most addictive products: smartphones. AAPL Shares Outstanding data by YCharts Another reason Buffett likes Apple is its share repurchases. iPhone users can quickly snap the highest-quality selfies and videos of their kid's soccer games and post them to social media in a heartbeat.
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Apple (NASDAQ: AAPL) is in a near duopoly with Samsung in one of the world's most addictive products: smartphones. AAPL Shares Outstanding data by YCharts Another reason Buffett likes Apple is its share repurchases. Why Apple's iPhone is a "sticky" product Buffett has referred to the iPhone as a "sticky" product, meaning customers repeatedly return to Apple's smartphones.
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Apple (NASDAQ: AAPL) is in a near duopoly with Samsung in one of the world's most addictive products: smartphones. AAPL Shares Outstanding data by YCharts Another reason Buffett likes Apple is its share repurchases. Why Apple's iPhone is a "sticky" product Buffett has referred to the iPhone as a "sticky" product, meaning customers repeatedly return to Apple's smartphones.
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Apple (NASDAQ: AAPL) is in a near duopoly with Samsung in one of the world's most addictive products: smartphones. AAPL Shares Outstanding data by YCharts Another reason Buffett likes Apple is its share repurchases. As users continue to adopt Apple Pay and download new music, Apple's services segment can become a larger part of the overall business, which has grown from about 20% of overall gross margin in 2017 to over 31% last year.
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19265.0
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2022-09-21 00:00:00 UTC
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Warren Buffett Is Sitting On $168 Billion In Unrealized Gains From These 4 Stocks
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AAPL
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https://www.nasdaq.com/articles/warren-buffett-is-sitting-on-%24168-billion-in-unrealized-gains-from-these-4-stocks
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nan
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nan
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When Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett buys or sells a stock, the investing community wisely pays close attention. That's because the Oracle of Omaha's investing track record speaks for itself. Since taking the reins in 1965, Buffett has led his company's Class A shares (BRK.A) to an aggregate gain of 3,641,613%, through Dec. 31, 2021.
While there are a lot of factors that have played a role in Warren Buffett's success, including his love of cyclical companies and dividend stocks, it's his patience that's proven most important. By allowing his winners to run, he's racked up jaw-dropping unrealized gains for Berkshire Hathaway's $334.7 billion investment portfolio.
As of this past weekend, Warren Buffett was sitting on $168 billion in (combined) unrealized gains from four core holdings. Take note, none of these gains factor in the dividend income Berkshire Hathaway is receiving from these four stocks.
Berkshire Hathaway CEO Warren Buffett is all smiles thanks to hefty unrealized investment gains. Image source: The Motley Fool.
Apple: $103.04 billion in unrealized gains (author estimate)
In terms of nominal-dollar gains, tech stock Apple (NASDAQ: AAPL) appears set to go down as Warren Buffett's greatest investment. With 13F aggregator WhaleWisdom.com estimating a $37.17 average price paid per share of Apple, I'd estimate Berkshire Hathaway to be sitting on an unrealized gain of about $103 billion, as of the closing bell on Sept. 16, 2022.
Don't look for Buffett or his investing lieutenants, Todd Combs and Ted Weschler, to take profits on Apple anytime soon. That's because it's considered one of Berkshire's "four giants," and it checks all the appropriate boxes for an investor like Buffett who prefers to hold great businesses for years, if not decades.
To start with, Apple is the most valuable brand in the world and has an exceptionally loyal customer base. This loyalty stems from the company being on the leading edge of innovation. For instance, since introducing a 5G-capable iPhone during the fourth quarter of 2020, Apple has controlled between 47% and 65% of U.S. smartphone market share.
However, Buffett has to be happy with the job CEO Tim Cook is doing in overseeing the company's transition to subscription services. Although Apple isn't abandoning the physical products that made it wildly profitable and popular, it's evolving to further improve customer loyalty, boost long-term operating margins, and minimize any revenue dips associated with physical product replacement cycles.
Also, don't overlook Apple's stellar capital return program. The company has repurchased approximately $520 billion of its common stock since the beginning of 2013, and it doles out one of the largest nominal-dollar dividends on the planet.
Coca-Cola: $22.52 billion in unrealized gains
As for tenure, no stock has been a longer continuous holding in Berkshire Hathaway's portfolio than beverage giant Coca-Cola (NYSE: KO). Coke has steadily gained from Berkshire's cost basis of about $3.25/share and delivered roughly $22.5 billion in unrealized gains over the past 34 years. Thanks to this low basis, Buffett's company is enjoying a 54% annual yield on cost.
One of the factors that makes Coca-Cola so great is that it sells nondiscretionary goods (food and snacks). No matter how well or poorly the U.S. and global economy are performing, people still need to eat and drink. This makes it unlikely that they'll trade down from Coca-Cola products to something else, which in turn allows Coke to generate highly predictable cash flow year in and year out.
Coca-Cola also benefits from its geographic diversity. With the exception of North Korea, Cuba, and Russia (the latter is due to Russia's invasion of Ukraine), Coke has operations ongoing in every country worldwide. This means it's able to bring in a hearty amount of cash flow from developed countries, and take advantage of juicier organic growth prospects in emerging markets.
Incredible marketing has played a key role, too. Few companies have the ability to transcend generational gaps quite like Coca-Cola. Whether it's using social media and well-recognized brand ambassadors to reach a younger generation of consumers, or leaning on its holiday tie-ins to connect with a more mature audience, Coke's marketing team has a virtually foolproof formula for moving the needle higher.
Image source: American Express.
American Express: $21.92 billion in unrealized gains
The next longest-held Buffett stock after Coca-Cola is payment processor American Express (NYSE: AXP). This continuous holding since 1993 has led Berkshire Hathaway to $21.9 billion in unrealized gains. What's more, Berkshire's cost basis of $8.49/share is translating into a yield on cost of almost 25%!
AmEx is the epitome of a Warren Buffett stock in that time is its greatest ally. Even though recessions are an inevitable part of the economic cycle, history shows that downturns don't last very long. By comparison, periods of economic expansion are almost always measured in years. American Express is a company that, when held over long periods, allows investors to take advantage of the natural expansion of the U.S. and global economy over time.
To build on this point, AmEx is a company that benefits greatly from "double-dipping" during periods of expansion. In addition to charging merchants to process payments, American Express also acts as a lender. The latter allows it to generate fees and interest income from consumers and businesses. Since periods of expansion are disproportionately longer than recessions, double-dipping has made AmEx quite profitable.
Another reason for AmEx's long-term success has been its ability to court affluent clientele. Higher-earning cardholders are less likely to alter their buying habits or be delinquent on their payments during relatively minor economic downturns.
Bank of America: $20.61 billion in unrealized gains
The fourth stock that's generated a mountain of unrealized profit for Warren Buffett is Bank of America (NYSE: BAC). Berkshire Hathaway's second-largest holding by market value has delivered approximately $20.6 billion in unrealized gains, not including dividends paid.
Similar to payment processors like AmEx, bank stocks benefit immensely from the long-term expansion of the U.S. economy. Although banks have to roll with the punches dished out by recessions, rock-solid performers like Bank of America tend to grow their loan portfolio and deposits over time, which is what ultimately boosts their profitability.
What makes Bank of America a particularly intriguing stock to own right now is its interest rate sensitivity. With the Federal Reserve aggressively raising interest rates to combat historically high inflation, BofA's outstanding variable-rate loans are set to generate more interest income for the company without any extra work on BofA's part. According to Bank of America, a 100-basis-point parallel shift in the interest rate yield curve over the next 12 months (as of mid-July 2022) would generate an estimated $5 billion in added net interest income.
Bank of America has wisely invested in digitization as well. Over the past three years, BofA has grown its active digital user count by 6 million to 43 million, and has importantly seen the percentage of loan sales completed online or via mobile app catapult from 29% to 48%. Since digital transactions are considerably cheaper for BofA than in-person or phone-based interactions, it's allowed the company to consolidate some of its physical branches and reduce its noninterest expenses.
10 stocks we like better than Apple
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*Stock Advisor returns as of August 17, 2022
American Express and Bank of America are advertising partners of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple: $103.04 billion in unrealized gains (author estimate) In terms of nominal-dollar gains, tech stock Apple (NASDAQ: AAPL) appears set to go down as Warren Buffett's greatest investment. While there are a lot of factors that have played a role in Warren Buffett's success, including his love of cyclical companies and dividend stocks, it's his patience that's proven most important. This means it's able to bring in a hearty amount of cash flow from developed countries, and take advantage of juicier organic growth prospects in emerging markets.
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Apple: $103.04 billion in unrealized gains (author estimate) In terms of nominal-dollar gains, tech stock Apple (NASDAQ: AAPL) appears set to go down as Warren Buffett's greatest investment. When Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett buys or sells a stock, the investing community wisely pays close attention. Bank of America: $20.61 billion in unrealized gains The fourth stock that's generated a mountain of unrealized profit for Warren Buffett is Bank of America (NYSE: BAC).
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Apple: $103.04 billion in unrealized gains (author estimate) In terms of nominal-dollar gains, tech stock Apple (NASDAQ: AAPL) appears set to go down as Warren Buffett's greatest investment. Bank of America: $20.61 billion in unrealized gains The fourth stock that's generated a mountain of unrealized profit for Warren Buffett is Bank of America (NYSE: BAC). 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.
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Apple: $103.04 billion in unrealized gains (author estimate) In terms of nominal-dollar gains, tech stock Apple (NASDAQ: AAPL) appears set to go down as Warren Buffett's greatest investment. American Express is a company that, when held over long periods, allows investors to take advantage of the natural expansion of the U.S. and global economy over time. See the 10 stocks *Stock Advisor returns as of August 17, 2022 American Express and Bank of America are advertising partners of The Ascent, a Motley Fool company.
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19266.0
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2022-09-21 00:00:00 UTC
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Excellence Capitalism & Anti-ESG ETFs
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AAPL
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https://www.nasdaq.com/articles/excellence-capitalism-anti-esg-etfs
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nan
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nan
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ESG investing, which had exploded in popularity over the past few years, is facing a backlash lately. Flows into ESG ETFs have faltered this year as performance has suffered due to too much tech exposure and low allocation to energy stocks.
There is increasing regulatory scrutiny as well amid allegations of greenwashing and mislabeling of products as ESG.
Strive Asset Management, backed by high profile investors like Peter Thiel and Bill Ackman, wants to remove politics from investing and promote excellence capitalism. The “anti-woke” firm says large asset managers push divisive social and political agendas, which cause companies to underperform and harm investors’ interests.
The US energy industry was the most impacted by the rise in ESG investing as it vastly reduced investments in domestic oil and gas exploration and production. The firm recently launched the Strive U.S. Energy ETF Energy ETF DRLL, which would use its shareholder-voting power to encourage energy companies to “drill more and frack more.”
DRLL has already gathered about $330 million in assets within six weeks of its launch. Exxon Mobil XOM, Chevron CVX, ConocoPhillips COP, EOG Resources EOG and Occidental Petroleum OXY are its top holdings.
Strive launched its second ETF this week. The Strive 500 ETF STRV would compete with ETFs tracking the S&P 500 Index. Apple AAPL, Microsoft MSFT, Tesla TSLA and Google parent Alphabet GOOGL are among its top holdings.
To learn more, please watch the short video above.
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL, Microsoft MSFT, Tesla TSLA and Google parent Alphabet GOOGL are among its top holdings. Apple Inc. (AAPL): Free Stock Analysis Report Flows into ESG ETFs have faltered this year as performance has suffered due to too much tech exposure and low allocation to energy stocks.
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Apple AAPL, Microsoft MSFT, Tesla TSLA and Google parent Alphabet GOOGL are among its top holdings. Apple Inc. (AAPL): Free Stock Analysis Report Exxon Mobil XOM, Chevron CVX, ConocoPhillips COP, EOG Resources EOG and Occidental Petroleum OXY are its top holdings.
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Apple AAPL, Microsoft MSFT, Tesla TSLA and Google parent Alphabet GOOGL are among its top holdings. Apple Inc. (AAPL): Free Stock Analysis Report The firm recently launched the Strive U.S. Energy ETF Energy ETF DRLL, which would use its shareholder-voting power to encourage energy companies to “drill more and frack more.” DRLL has already gathered about $330 million in assets within six weeks of its launch.
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Apple AAPL, Microsoft MSFT, Tesla TSLA and Google parent Alphabet GOOGL are among its top holdings. Apple Inc. (AAPL): Free Stock Analysis Report Click to get this free report
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19267.0
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2022-09-21 00:00:00 UTC
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7 Tech Stocks to Buy Now for Extraordinary Gains
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AAPL
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https://www.nasdaq.com/articles/7-tech-stocks-to-buy-now-for-extraordinary-gains
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It’s hard to find the best tech stocks to buy because technology stocks have been crushed like tin cans in this year’s market selloff.
Ever since the 2008-09 financial crisis, technology stocks have posted outsized gains compared to just about any other category of securities. Between 2011 and 2021, the technology-laden Nasdaq index gained 440%, dwarfing the performance of the S&P 500 index (up 190%) and Dow Jones Industrial Average (up 160%) over the same time period.
But while this year’s reversal of fortune has been painful, the current downturn presents an opportunity. Investors can get their hands on many of the best tech stocks to buy on the cheap, reaping extraordinary gains when they inevitably rebound from their current lows.
To avoid missing out and ensure that your portfolio is well-positioned for the future, consider buying these seven tech stocks for big future gains.
NVDA Nvidia $131.85
PANW Palo Alto Networks $175.05
AMZN Amazon $122.12
MSFT Microsoft $242.09
Nvidia (NVDA)
Source: Shutterstock
Once among the best tech stocks to buy, Nvidia (NASDAQ:NVDA) has been particularly beaten up, down 55% on the year and only a shade above the its 52-week low.
In addition to investors fleeing to the safety of blue-chip consumer staples amid the current inflationary environment, NVDA stock has been hurt by poor earnings results and ongoing struggles with its global supply chains.
At the end of August, Nvidia reported second-quarter earnings that missed Wall Street expectations by a country mile. The company announced earnings per share of $0.51, which was 60% lower than the $1.26 expected by analysts.
Revenue for Q2 came in at $6.70 billion, which was 17% below the $8.10 billion that analysts had penciled in. The actual results came two weeks after Nvidia was forced to pre-announce that it would miss Wall Street estimates and that growth had slowed, particularly with its gaming division.
Still, despite the current hardship, many analysts and investors continue to stand by NVDA stock, claiming it remains the top semiconductor and microchip company in the world. The median price target on the stock is currently $205, implying 54% upside from here.
Palo Alto Networks (PANW)
Source: Sundry Photography / Shutterstock.com
Many analysts are pounding the table on Palo Alto Networks (NASDAQ:PANW) as the war in Europe and a growing number of online hacks throw a brighter light on cybersecurity firms.
Palo Alto Networks develops advanced firewalls that protect corporations and governments from online intruders, particularly cloud-based systems. While the company’s stock has fared better than many tech plays, its share price is down 10% over the last six months, making this one of the best tech stocks to buy on the dip
In addition to the price decline, now is a great time to buy PANW stock after it split on a three-for-one basis Sept. 14. Before the split, Palo Alto shares traded above $500. Now, more retail investors get to own a piece of the leading cloud-based cybersecurity company in the world.
In its most recent quarter, Palo Alto Networks generated $1.55 billion in revenue, its operating income grew 57% year-over-year to $323 million, and its earnings per share was $2.52, ahead of Wall Street forecasts.
The median price target on PANW stock is $217 a share, implying 25% growth over the coming 12 months.
Amazon (AMZN)
Source: Sundry Photography / Shutterstock.com
Speaking of stock splits, investors should get in on Amazon (NASDAQ:AMZN). A perennial on any best tech stocks to buy list, the company looks even better following the 20-for-1 share executed on June 6 of this year.
The split, coupled with a 28% year-to-date decline, has AMZN stock trading near its most affordable level since before the pandemic hit in spring 2020.
To be sure, some internal struggles have led to the drop in Amazon’s share price. But the company is working overtime to course correct, and long-term the stock should continue its upward trajectory.
The online retailer has closed 44 warehouse facilities around the world and delayed the opening of 25 other sites as it tries to right size its operations to meet waning demand coming out of the pandemic.
Amazon has also laid off 100,000 workers and is taking steps to get its inventory down to more manageable levels. This shift coming out of the pandemic has dinged Amazon’s stock and hurt its earnings earlier this year.
More recently, the company reported positive results, beating on both the top and bottom lines for the second quarter and issuing better-than-expected guidance for the current third quarter.
The median price target on AMZN stock is $172, which would be nearly 40% higher than where the shares currently trade.
Microsoft (MSFT)
Source: NYCStock / Shutterstock.com
Another mega-cap technology stock that is available to buy on the cheap right now is Microsoft (NASDAQ:MSFT).
Down 28% on the year, this is one of the best tech stocks to buy on the cheap.
Microsoft’s price-to-earnings ratio is the lowest it has been in more than five years, and it is one of the few established technology firms to pay a dividend (currently yielding 1.02% for a quarterly payout of $0.62 a share).
Plus, the company’s stock has been pulled lower this year by the broader market. Microsoft’s earnings have held up remarkably well despite global supply chain problems, inflation, and rising interest rates.
Microsoft is also an increasingly diversified technology firm. In addition to its legacy software products such as Windows, the company has introduced new applications such as the video conference platform MS Teams which became a hit during the pandemic.
Microsoft is also gaining market share in other important tech realms, ranging from cloud computing to video games. The company’s $68.7 billion takeover of Activision Blizzard (NASDAQ:ATVI) is expected to be approved by regulators around the world and finalized next year. The median price target on MSFT stock is $327.50 a share, implying a 35% gain from current levels.
Advanced Micro Devices (AMD)
Source: JHVEPhoto / Shutterstock.com
Advanced Micro Devices (NASDAQ:AMD) is one of the best tech stocks to buy now in the semiconductor space.
Since the start of the year, AMD stock has tumbled 49%. Last November, the company’s shares were trading right around $165 apiece.
As with Microsoft, much of the pullback in AMD stock is due to the market downturn. The company has managed to weather the current storm extremely well, posting strong earnings and continuing to issue bullish forward guidance. The company also continues to take market share from key competitors such as Intel (NASDAQ:INTC).
Analysts continue to highlight the strong product pipeline of semiconductor and microchip products at AMD, notably in the cloud computing, server, and client computing segments.
Ruben Roy, a five-star tech analyst at Stifel Financial (NYSE:SF), recently issued a bullish note on AMD stock, placing a “buy” rating on the shares and $122 price target, which would be around 60% higher than where the shares currently trade.
The median price target on AMD stock among 35 professional analysts is $120 a share, which would be 57% higher. The low price target on the shares is $80, which is 5% higher than where the stock currently sits.
Meta Platforms (META)
Source: Aleem Zahid Khan / Shutterstock.com
For seriously undervalued tech stocks to buy, look no further than Meta Platforms (NASDAQ:META). The parent company of Facebook has seen its share price plummet this year.
The stock tanked amid a slowdown in online ad spending and as the company’s pivot to focus on the metaverse is met with trepidation by both professional and amateur investors.
The company’s price-to-earnings ratio is currently 12, the lowest among all the major mega-cap tech stocks (Amazon’s P/E ratio is currently 111). Right now, META stock is cheaper than Walmart (NYSE:WMT).
As for the creation of the metaverse, Mark Zuckerberg and company remain undeterred by the skeptics and continue to bet heavily on the virtual reality world that is largely theoretical right now.
The company continues to endure heavy losses at both its Reality Labs division which is home to its virtual reality headsets and its Horizon Worlds metaverse platform.
Reality Labs alone has lost more than $25 billion since 2019. Fortunately, the company is still able to lean heavily on its Facebook and Instagram social media platforms to keep revenue coming in despite the current downturn. An expected rebound in online advertising next year should help improve things at Meta Platforms.
The median price target on META stock is $215, which would be 46% higher than where the shares are trading today.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
If the global economy is sliding into a recession, somebody forgot to tell Apple (NASDAQ:AAPL). The consumer electronics giant continues to fire on all cylinders despite the many economic headwinds blowing against it and all tech companies.
Case in point, the company just unveiled its latest product line-up for the year ahead. It includes new iPhones, Apple Watches, and AirPods. Apple has also just launched a new operating system, iOS 16, and announced a partnership with Globalstar (NYSE:GSAT) that will enable the latest iPhone 14 to connect to satellites for emergency services in remote areas that are off-grid.
Yet despite its continued dominance in the consumer space, AAPL stock has also been brought lower this year amid the market carnage. Since January, AAPL stock has fallen 16% to trade at $153 a share.
Analysts seem to agree that this represents a great entry point to the stock, especially for investors who plan to hold shares for the long term.
With a P/E ratio of 25 and a dividend yield of 0.60%, there are a lot of reasons to buy Apple stock as the price slumps, and the stock shouldn’t be down for long. The median price target on the shares is $185, implying 21% upside.
On the date of publication, Joel Baglole held long positions in AAPL, MSFT and NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
The post 7 Tech Stocks to Buy Now for Extraordinary Gains appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com If the global economy is sliding into a recession, somebody forgot to tell Apple (NASDAQ:AAPL). Yet despite its continued dominance in the consumer space, AAPL stock has also been brought lower this year amid the market carnage. Since January, AAPL stock has fallen 16% to trade at $153 a share.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com If the global economy is sliding into a recession, somebody forgot to tell Apple (NASDAQ:AAPL). Yet despite its continued dominance in the consumer space, AAPL stock has also been brought lower this year amid the market carnage. Since January, AAPL stock has fallen 16% to trade at $153 a share.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com If the global economy is sliding into a recession, somebody forgot to tell Apple (NASDAQ:AAPL). Yet despite its continued dominance in the consumer space, AAPL stock has also been brought lower this year amid the market carnage. Since January, AAPL stock has fallen 16% to trade at $153 a share.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com If the global economy is sliding into a recession, somebody forgot to tell Apple (NASDAQ:AAPL). Yet despite its continued dominance in the consumer space, AAPL stock has also been brought lower this year amid the market carnage. Since January, AAPL stock has fallen 16% to trade at $153 a share.
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19268.0
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2022-09-21 00:00:00 UTC
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Automakers tackle patent hurdle in quest for in-car tech
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AAPL
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https://www.nasdaq.com/articles/automakers-tackle-patent-hurdle-in-quest-for-in-car-tech
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nan
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nan
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By Victoria Waldersee and Supantha Mukherjee
STOCKHOLM/BERLIN, Sept 21 (Reuters) - Over a dozen automakers including Toyota 7203.T and Nissan 7201.T, have signed up with a platform for patent licences from 51 tech companies, aiming to simplify access to wireless technology and avoid costly legal battles.
Conflicts have stemmed in part from different views among carmakers, suppliers and tech firms over who should shoulder the cost of licensing.
Through independent licensing marketplace Avanci, carmakers gain access to patents for 2G, 3G and 4G technology from the likes of Finland's Nokia NOKIA.HE, Sweden's Ericcson ERICb.ST and Taiwan's Acer 2353.TW for everything from navigation systems to sensors for automated driving.
Avanci charges a flat fee of $20 per car, increased this month from $15 previously, with the money distributed among patent holders.
The new signings - which also include Renault RENA.PA, Stellantis STLA.MI, and Honda 7267.T - mean 80-85% of cars with 2G technology or higher are licensed through the platform, Avanci vice president Mark Durrant said in an interview.
The model allows carmakers to avoid the battles over royalties that took place between smartphone makers such as Apple AAPL.O and Samsung 005930.KS and telecoms companies, who negotiate one-on-one for licences.
"The auto market is just too splintered for it to be worth it for patent owners to negotiate with each individual player," said an industry source, who declined to be named because of contractual agreements. "It's a matter of efficiency.
Mercedes-Benz MBGn.DE, then Daimler, ended a years-long dispute over its patent use last year with Nokia after being eventually forced to pay.
Volkswagen VOWG_p.DE was sued by Acer 2353.TW for using its 4G technology without the appropriate licence. The carmaker in March signed with Avanci, which covers Acer's patents, in order to settle.
While suppliers have historically paid for patent licences in areas like engine design, tech firms would rather deal directly with carmakers over telecoms patents, according to an auto industry source with experience of licensing negotiations.
"Usually suppliers handle patents in the development process – telecoms is the one area where they don't," the person, who declined to be named, said.
Avanci is also working with companies on a new contract to cover 5G patents, which would likely be more expensive than the current patent portfolio.
(Reporting by Victoria Waldersee and Supantha Mukherjee; Editing by Emelia Sithole-Matarise)
((Victoria.Waldersee@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 model allows carmakers to avoid the battles over royalties that took place between smartphone makers such as Apple AAPL.O and Samsung 005930.KS and telecoms companies, who negotiate one-on-one for licences. By Victoria Waldersee and Supantha Mukherjee STOCKHOLM/BERLIN, Sept 21 (Reuters) - Over a dozen automakers including Toyota 7203.T and Nissan 7201.T, have signed up with a platform for patent licences from 51 tech companies, aiming to simplify access to wireless technology and avoid costly legal battles. Through independent licensing marketplace Avanci, carmakers gain access to patents for 2G, 3G and 4G technology from the likes of Finland's Nokia NOKIA.HE, Sweden's Ericcson ERICb.ST and Taiwan's Acer 2353.TW for everything from navigation systems to sensors for automated driving.
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The model allows carmakers to avoid the battles over royalties that took place between smartphone makers such as Apple AAPL.O and Samsung 005930.KS and telecoms companies, who negotiate one-on-one for licences. By Victoria Waldersee and Supantha Mukherjee STOCKHOLM/BERLIN, Sept 21 (Reuters) - Over a dozen automakers including Toyota 7203.T and Nissan 7201.T, have signed up with a platform for patent licences from 51 tech companies, aiming to simplify access to wireless technology and avoid costly legal battles. The carmaker in March signed with Avanci, which covers Acer's patents, in order to settle.
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The model allows carmakers to avoid the battles over royalties that took place between smartphone makers such as Apple AAPL.O and Samsung 005930.KS and telecoms companies, who negotiate one-on-one for licences. By Victoria Waldersee and Supantha Mukherjee STOCKHOLM/BERLIN, Sept 21 (Reuters) - Over a dozen automakers including Toyota 7203.T and Nissan 7201.T, have signed up with a platform for patent licences from 51 tech companies, aiming to simplify access to wireless technology and avoid costly legal battles. Through independent licensing marketplace Avanci, carmakers gain access to patents for 2G, 3G and 4G technology from the likes of Finland's Nokia NOKIA.HE, Sweden's Ericcson ERICb.ST and Taiwan's Acer 2353.TW for everything from navigation systems to sensors for automated driving.
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The model allows carmakers to avoid the battles over royalties that took place between smartphone makers such as Apple AAPL.O and Samsung 005930.KS and telecoms companies, who negotiate one-on-one for licences. By Victoria Waldersee and Supantha Mukherjee STOCKHOLM/BERLIN, Sept 21 (Reuters) - Over a dozen automakers including Toyota 7203.T and Nissan 7201.T, have signed up with a platform for patent licences from 51 tech companies, aiming to simplify access to wireless technology and avoid costly legal battles. The carmaker in March signed with Avanci, which covers Acer's patents, in order to settle.
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19269.0
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2022-09-21 00:00:00 UTC
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Should Invesco S&P 500 Top 50 ETF (XLG) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-invesco-sp-500-top-50-etf-xlg-be-on-your-investing-radar-4
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nan
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nan
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The Invesco S&P 500 Top 50 ETF (XLG) was launched on 05/04/2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Invesco. It has amassed assets over $2 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.20%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.23%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 40.90% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.14% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 50.49% of total assets under management.
Performance and Risk
XLG seeks to match the performance of the S&P 500 Top 50 ETF Index before fees and expenses. The S&P 500 Top 50 Index is composed of 50 of the largest companies in the S&P 500 Index.
The ETF has lost about -21.78% so far this year and is down about -12.10% in the last one year (as of 09/21/2022). In the past 52-week period, it has traded between $277.86 and $373.67.
The ETF has a beta of 1.01 and standard deviation of 24.47% for the trailing three-year period, making it a medium risk choice in the space. With about 53 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P 500 Top 50 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, XLG is a good option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $289.26 billion in assets, SPDR S&P 500 ETF has $341.96 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
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iShares Core S&P 500 ETF (IVV): ETF Research Reports
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.14% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report The Invesco S&P 500 Top 50 ETF (XLG) was launched on 05/04/2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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Apple Inc. (AAPL): Free Stock Analysis Report Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.14% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). The Invesco S&P 500 Top 50 ETF (XLG) was launched on 05/04/2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.14% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives Invesco S&P 500 Top 50 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.14% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report The Invesco S&P 500 Top 50 ETF (XLG) was launched on 05/04/2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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19270.0
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2022-09-21 00:00:00 UTC
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US STOCKS-Wall Street rises ahead of Fed rate-hike decision
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-rises-ahead-of-fed-rate-hike-decision
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nan
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nan
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By Devik Jain and Ankika Biswas
Sept 21 (Reuters) - U.S. stock indexes rose on Wednesday ahead of a widely expected hefty rate hike from the Federal Reserve, with investors waiting for cues on the length and depth of further policy tightening to tame surging price pressures.
Ten of the 11 major S&P 500 sectors were up in early trading, led by a 1.1% jump in energy .SPNY and industrial .SPLRCI shares.
The U.S. central bank will likely lift its policy rate by 75 basis points for the third time to a 3.00-3.25% range at the end of its two-day policy meeting, which will be followed by Fed Chair Jerome Powell's news conference.
Updated economic projections from policymakers will be in focus, as investors would like to gauge where interest rates are headed, how long it would take inflation to fall and the pain rising prices are inflicting on the U.S. economy.
"What (investors) really want to see is whether or not we are going to have a continued, super hawkish Fed in terms of the way that messaging has been - are they really committed to getting inflation under control at the risk of pulling the economy into a recession," said Brandon Pizzurro, director of public investments at GuideStone Capital Management.
Markets are pricing in a 21% chance of a 100 bps rate increase later in the day and seeing a terminal rate at 4.50% in March 2023. FEDWATCH
The benchmark S&P 500 .SPX is hovering near two-month lows and is below 3,900 points - a level considered by technical analysts as strong support for the index.
"If (stocks) drop on disappointing Fed, no one should be surprised if we test those June (lows)," said David Wagner, portfolio manager at Aptus Capital Advisors in Cincinnati, Ohio.
As interest rates continue to creep up, pressuring stock valuations, Wagner recommends having a portfolio tilted toward value stocks.
The S&P 500 value index .IVX, which includes cyclical and economy-linked stocks such as banks, energy, industrials and materials, is down 11.4% so far this year, compared with a 25.2% drop in its growth counterpart .IGX, which is dominated by technology shares.
The yield curve inversion between the two-year and 10-year notes US2US10=RR - seen as a recession harbinger - and growing evidence of the impact of decades high inflation on earnings outlooks from companies ranging from FedEx Corp FDX.N to Ford Motor Co F.N have also added to woes in a seasonally weak period for markets.
At 9:40 a.m. ET, the Dow Jones Industrial Average .DJI was up 155.88 points, or 0.51%, at 30,862.11.
The S&P 500 .SPX was up 18.85 points, or 0.49%, at 3,874.78, and the Nasdaq Composite .IXIC was up 29.48 points, or 0.26%, at 11,454.53 on boost from a more than 0.5% rise in shares of megacap growth stocks such as Apple Inc AAPL.O and Microsoft Corp MSFT.O.
Meanwhile, shares of U.S. defense companies Northrop Grumman Corp NOC.N, Raytheon Technologies Corp RTX.N and Lockheed Martin Corp LMT.N rose between 2.6% and 3.1% as President Vladimir Putin ordered Russia's first mobilization since World War Two.
Coty Inc COTY.N gained 4.9% after the CoverGirl cosmetics maker raised its first quarter 2023 revenue and gross margin forecasts on stronger demand for beauty products.
General Mills Inc GIS.N added 4.5% after the Cheerios cereal maker raised full-year sales and profit outlook, banking on higher prices and resilient demand for its breakfast cereals, snack bars and pet food.
Advancing issues outnumbered decliners by a 2.16-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.03-to-1 ratio on the Nasdaq.
The S&P index recorded two new 52-week highs and six new lows, while the Nasdaq recorded 14 new highs and 141 new lows.
(Reporting by Medha Singh, Devik Jain and Ankika Biswas in Bengaluru; Editing by Anil D'Silva)
((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 83 0697 3350;))
The views and 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 S&P 500 .SPX was up 18.85 points, or 0.49%, at 3,874.78, and the Nasdaq Composite .IXIC was up 29.48 points, or 0.26%, at 11,454.53 on boost from a more than 0.5% rise in shares of megacap growth stocks such as Apple Inc AAPL.O and Microsoft Corp MSFT.O. By Devik Jain and Ankika Biswas Sept 21 (Reuters) - U.S. stock indexes rose on Wednesday ahead of a widely expected hefty rate hike from the Federal Reserve, with investors waiting for cues on the length and depth of further policy tightening to tame surging price pressures. "What (investors) really want to see is whether or not we are going to have a continued, super hawkish Fed in terms of the way that messaging has been - are they really committed to getting inflation under control at the risk of pulling the economy into a recession," said Brandon Pizzurro, director of public investments at GuideStone Capital Management.
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The S&P 500 .SPX was up 18.85 points, or 0.49%, at 3,874.78, and the Nasdaq Composite .IXIC was up 29.48 points, or 0.26%, at 11,454.53 on boost from a more than 0.5% rise in shares of megacap growth stocks such as Apple Inc AAPL.O and Microsoft Corp MSFT.O. By Devik Jain and Ankika Biswas Sept 21 (Reuters) - U.S. stock indexes rose on Wednesday ahead of a widely expected hefty rate hike from the Federal Reserve, with investors waiting for cues on the length and depth of further policy tightening to tame surging price pressures. Advancing issues outnumbered decliners by a 2.16-to-1 ratio on the NYSE.
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The S&P 500 .SPX was up 18.85 points, or 0.49%, at 3,874.78, and the Nasdaq Composite .IXIC was up 29.48 points, or 0.26%, at 11,454.53 on boost from a more than 0.5% rise in shares of megacap growth stocks such as Apple Inc AAPL.O and Microsoft Corp MSFT.O. By Devik Jain and Ankika Biswas Sept 21 (Reuters) - U.S. stock indexes rose on Wednesday ahead of a widely expected hefty rate hike from the Federal Reserve, with investors waiting for cues on the length and depth of further policy tightening to tame surging price pressures. The S&P 500 value index .IVX, which includes cyclical and economy-linked stocks such as banks, energy, industrials and materials, is down 11.4% so far this year, compared with a 25.2% drop in its growth counterpart .IGX, which is dominated by technology shares.
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The S&P 500 .SPX was up 18.85 points, or 0.49%, at 3,874.78, and the Nasdaq Composite .IXIC was up 29.48 points, or 0.26%, at 11,454.53 on boost from a more than 0.5% rise in shares of megacap growth stocks such as Apple Inc AAPL.O and Microsoft Corp MSFT.O. By Devik Jain and Ankika Biswas Sept 21 (Reuters) - U.S. stock indexes rose on Wednesday ahead of a widely expected hefty rate hike from the Federal Reserve, with investors waiting for cues on the length and depth of further policy tightening to tame surging price pressures. "What (investors) really want to see is whether or not we are going to have a continued, super hawkish Fed in terms of the way that messaging has been - are they really committed to getting inflation under control at the risk of pulling the economy into a recession," said Brandon Pizzurro, director of public investments at GuideStone Capital Management.
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19271.0
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2022-09-20 00:00:00 UTC
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Why Investors Found Apple Stock Tempting Today
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AAPL
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https://www.nasdaq.com/articles/why-investors-found-apple-stock-tempting-today
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nan
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nan
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What happened
Most investors are cool on tech stocks these days, but enough of them warmed to Apple (NASDAQ: AAPL) Tuesday to give an encouraging little rise to its share price. Thanks to some news about its global operations and positive comments from an analyst, the company's stock closed nearly 2% higher on the day, in contrast to the over 1% decline of the S&P 500 index.
So what
In an official company blog post, Apple revealed that will soon start raising prices in its App Store for certain regions and countries. These include all countries that use the euro as a currency, plus a clutch of other large and small markets in Europe, Asia, and South America. Non-eurozone countries that will see increases include Egypt, Chile, Japan, and South Korea.
The hikes will start to take effect on Wednesday, Oct. 5, Apple said.
The move comes as the U.S. dollar continues to be a strong currency when matched against peers like the euro or the Japanese yen. A strong dollar reduces the take for U.S.-based Apple from such currencies, hence the need to make adjustments.
It should be noted that this isn't a unique, one-off move by the company. It periodically makes pricing adjustments based on factors like this.
Meanwhile, noted Apple tracker Daniel Ives from Wedbush reiterated his outperform (read: buy) recommendation on Apple stock, at a $220 per share price target. In a new analyst note, Ives cited the "brisk sales" and lengthening customer wait times for the new iPhone 14 as a key reason for his continued optimism.
Now what
Apple's services business -- which includes the App Store and its massive inventory of titles -- has become increasingly important to the company. Compared to Apple's other revenue stream (products), it's growing more robustly, to the point where it comprised nearly $20 billion in revenue in the tech giant's most recently reported quarter.
Meanwhile, Apple device owners tend to be relatively affluent and fond of their apps, so there shouldn't be too much resistance to the price hikes.
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Eric Volkman has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Most investors are cool on tech stocks these days, but enough of them warmed to Apple (NASDAQ: AAPL) Tuesday to give an encouraging little rise to its share price. Thanks to some news about its global operations and positive comments from an analyst, the company's stock closed nearly 2% higher on the day, in contrast to the over 1% decline of the S&P 500 index. In a new analyst note, Ives cited the "brisk sales" and lengthening customer wait times for the new iPhone 14 as a key reason for his continued optimism.
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What happened Most investors are cool on tech stocks these days, but enough of them warmed to Apple (NASDAQ: AAPL) Tuesday to give an encouraging little rise to its share price. So what In an official company blog post, Apple revealed that will soon start raising prices in its App Store for certain regions and countries. Meanwhile, noted Apple tracker Daniel Ives from Wedbush reiterated his outperform (read: buy) recommendation on Apple stock, at a $220 per share price target.
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What happened Most investors are cool on tech stocks these days, but enough of them warmed to Apple (NASDAQ: AAPL) Tuesday to give an encouraging little rise to its share price. Meanwhile, noted Apple tracker Daniel Ives from Wedbush reiterated his outperform (read: buy) recommendation on Apple stock, at a $220 per share price target. See the 10 stocks *Stock Advisor returns as of August 17, 2022 Eric Volkman has positions in Apple.
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What happened Most investors are cool on tech stocks these days, but enough of them warmed to Apple (NASDAQ: AAPL) Tuesday to give an encouraging little rise to its share price. Meanwhile, noted Apple tracker Daniel Ives from Wedbush reiterated his outperform (read: buy) recommendation on Apple stock, at a $220 per share price target. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them!
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19272.0
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2022-09-20 00:00:00 UTC
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The 7 Best Biotech Stocks to Buy
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AAPL
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https://www.nasdaq.com/articles/the-7-best-biotech-stocks-to-buy
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
I’ve written before about how biotech is the biggest technology trend of our kids’ generation. Naturally, that means many people are looking for the best biotech stocks to buy.
But as with the PC industry of my time, finding long-term winners is difficult.
Back in the early 1980s, dozens of companies entered the PC market, many of them huge for their time. IBM (NYSE:IBM) was the bet everyone made. But the BUNCH — Burroughs, Univac, NCR (NYSE:NCR), Control Data and Honeywell (NASDAQ:HON), were all involved. Almost all of them gave way to newcomers Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT). Apple went public in 1980 and Microsoft in 1986.
Similarly, there are huge companies involved in today’s biotech boom. But size is no guarantee of future leadership. There are also big differences between today’s boom and the one that came before. Regulation — the need for drug or device approval — is just one of them.
An investor is thus wise to spread their bets and be ready to bail at the first sign of failure. Many will be called to the throne of biotech riches. Few will be chosen. Young biotech scientists, like my own son, can expect to have long resumes years before they reach my age.
While PCs and biotech offer similar profit opportunities, the need for government involvement makes them very different. So does the nature of the work. There are opportunities in equipment, in the production of molecules, and in the results of basic research as well as drugs.
I have compared many new biotechs to oil wildcatters in 1930s Texas because they’re taking big risks and can be sunk by a single failure. This puts today’s large drug companies in better shape to survive than mainframe companies were 40 years ago. Their cash can turn what looks like a losing play into a winner.
Here’s my list of the best biotech stocks to buy.
Best Biotech Stocks: iShares Biotechnology ETF (IBB)
Source: Maxx-Studio / Shutterstock
Starting a gallery of the best biotech stocks with an exchange-traded fund (ETF) can seem like a form of giving up. But, as with the PC business, it may be the best path to success.
BlackRock’s (NYSE:BLK) iShares Biotechnology ETF (NASDAQ:IBB) tracks a market-weighted index of biotech stocks listed on U.S. exchanges. These are subject to capping requirements, with no more than 8% in any one stock. The expense ratio is low at 0.44%, and there are $7.94 billion of assets under management.
SPDR S&P Biotech ETF (NYSEARCA:XBI), the Invesco Dynamic Biotechnology & Genome ETF (NYSEARCA:PBE) and ALPS Medical Breakthroughs ETF (NYSEARCA:SBIO) are other examples of biotech ETFs you can buy with a few clicks.
What all these funds, including IBB, have in common is a rotten 2022. IBB is down 31% so far in 2022. Among the companies it has positions in are Gilead Sciences (NASDAQ:GILD), Moderna (NASDAQ:MRNA), Regeneron (NASDAQ:REGN) and Biogen (NASDAQ:BIIB).
Many of IBB’s holdings have drugs in the market. Others have drugs about to be approved, or in late-stage testing. As new leaders emerge, funds like IBB buy them, and as companies fall out of favor IBB sells them. They’re not trying to beat the market, just match it. If you don’t know what you’re doing (and no one does), matching the market is a good strategy.
CRISPR Therapeutics (CRSP)
Source: rafapress / Shutterstock.com
CRISPR Therapeutics (NASDAQ:CRSP) was founded in 2012 around the Nobel Prize-winning research of Emmanuelle Charpentier, a French scientist who shared her prize with Jennifer Doudna of the University of California at Berkeley.
CRISPR is an acronym short for “clustered regularly interspaced short palindromic repeats.” CRISPR-Cas9, the technique for which Charpentier and Doudna won their award, allows the chemical editing of DNA.
CRSP is thus seen by some investors as the “Apple of DNA editing,” but the future is unknown. It could end up like IMSAI or Cromemco, depending on how things play out.
For now, the company is doing well. It had revenue of $915 million in 2021, and $4.70 per share, fully diluted, of net income. That means it’s selling for under six times sales and just 18 times earnings.
Despite this, CRSP is down nearly 80% from its 2021 high as investors have abandoned development-stage biotech companies. Vertex Pharmaceuticals (NASDAQ:VRTX), with which CRISPR is partnering, plans to file this year for approval on drugs targeting sickle cell anemia and beta thalassemia. An investor day over the summer showed promise with drugs for diabetes and kidney cancer.
Best Biotech Stocks: Merck (MRK)
Source: JHVEPhoto / Shutterstock.com
Merck (NYSE:MRK) is not technically a biotech, but it illustrates an important trend for biotech investors. That is, companies like CRISPR lack the resources to get drugs tested and past regulators. (Pioneering PC makers could just slap something together and sell them through ComputerLand.) Larger companies are often needed as partners, and this requirement offers incumbents with cash the opportunity to dominate.
At the start of July, Merck was worth $234 billion, with annual sales of nearly $49 billion from drugs like Keytruda, a cancer drug, Gardasil, a vaccine for human papillomavirus, and the anti-diabetic medicine Januvia. But, given that patents offer only 20 years of exclusivity on new compounds, Merck is constantly on the hunt for new drugs.
The current Merck pipeline includes 83 drugs in Phase-2 study, where drugs are given to people with the condition being treated, with 30 in Phase-3 studies testing safety and efficacy, and 3 programs under review by regulators.
But Merck’s most important asset may be its cash, with over $10 billion at the end of June. This can be used to buy out other companies and to fund their research. With the whole biotech sector on its back in the current market, this is a huge opportunity.
For investors, Merck also sports a price-to-earnings multiple under 14 and offers a dividend yield of over 3%. It’s a value stock.
Amgen (AMGN)
Source: Shutterstock
Amgen (NASDAQ:AMGN) is large like Merck but was born in the biotech era.
It was founded in 1980. Its first success with DNA led to the development of drugs like Epogen, used to treat anemia associated with chemotherapy and kidney failure. The company’s sales in 2021 were nearly $26 billion, led by the arthritis drug Enbrel and Prolia for thinning bones. The company’s pipeline includes over a dozen drugs in Phase-3 trials.
As with Merck, Amgen also has a lot of cash, $5.2 billion at the end of June. Its $7.76/year dividend yields 3.4% and its price-to-earnings ratio is 19.33.
Lately, Amgen has been focusing on its induced proximity platform, shunning what it calls “low-hanging fruit” in hopes of finding compounds that can treat multiple diseases for which there are currently no treatments. It’s also in the biosimilars space, working on a drug that will mimic the action of AbbVie’s (NASDAQ:ABBV) blockbuster Humira. Biosimilars can improve the rate at which patented drugs are replaced by generics.
Best Biotech Stocks: Ionis Pharmaceuticals (IONS)
Source: Mongkolchon Akesin / Shutterstock.com
Ionis Pharmaceuticals (NASDAQ:IONS) illustrates the promise and the risk in today’s biotech market.
Ionis is best known for Spinraza, licensed to Biogen for the treatment of spinal muscular dystrophy in 2016. Sales in 2021 were $810 million but came with a loss of $29 million, 20 cents per share, as the company continued to spend heavily on new drugs.
These include a rare disease drug called eplontersen, for which it has partnered with AstraZeneca (NASDAQ:AZN). Ionis took $200 million for it last year with the hope of $3.4 billion more if it achieves clinical milestones. The target is a usually-fatal hereditary disease called ATTRv-PN. It is also working with Biogen on an ALS drug called tofersen.
Unfortunately, Ionis has also failed on at least four drugs in the last year. This has caused some analysts to back away, with three telling investors to sell.
Exelixis (EXEL)
Source: Shutterstock.com
Exelixis (NASDAQ:EXEL) is best known for cabozantinib, a kinase inhibitor used to treat some types of thyroid, kidney and liver cancers. Exelixis is a good example of a biotech seeking to capitalize and expand on a single big success.
A kinase inhibitor blocks the action of a type of enzyme, in this case, tyrosine. The best-known kinase inhibitor is Merck’s keytruda. These drugs often have side effects that require study and can inhibit effectiveness. While cabozantinib was first approved in 2012 for some thyroid cancers, Exelixis had to lay off 70% of its employees in 2014 after it failed a Phase-3 trial for prostate cancer.
By 2021, however, Exelixis had sales of over $1.4 billion and a net income of $231 million, or 72 cents per share. It has a market cap of $5 billion and a PE ratio of 20.
At the end of June, Exelixis had $1.5 billion of cash and securities on the books. The cash let it begin an investigation of three compounds from BioInvent’s n-CoDeR library of antibodies. The company is also involved in patent suits aimed at protecting its cabozantinib franchise and has begun a Phase-3 trial on a new tyrosine inhibitor for colorectal cancer.
Best Biotech Stocks: Twist Bioscience (TWST)
Source: Connect world / Shutterstock.com
Twist Bioscience (NASDAQ:TWST), founded in 2013, manufactures synthetic DNA, a manufacturing process that lets companies speed the production of DNA for study. In 2021 it had sales of $133 million and lost $152 million, or $3.15 per share. Its market cap at the end of June 2021 was $2 billion. In Nov. 2021, at the height of the tech boom, it was over $5.5 billion.
Twist is one of the hundreds of companies, public and private, aiming to supply other drug companies with key research and production technology. As with companies that seek to create and sell drugs, there is enormous risk, but there are also huge markets on offer.
Twist stock bounced at the end of June when it announced a deal to license its antibody libraries to Ildong Pharmaceutical, a Korean company. Twist will get milestone, maintenance, and possible royalty payments in the deal. It also signed a partnership agreement with Astellas Pharmaceutical (OTCMKTS:ALPMY) of Japan in May, and it has a supply agreement with Gingko Bioworks (NYSE:DNA).
On the date of publication, Dana Blankenhorn held long positions in AAPL, MSFT and MRNA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Editor’s note: This article is regularly updated with the latest information.
The post The 7 Best Biotech Stocks to Buy appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Almost all of them gave way to newcomers Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT). On the date of publication, Dana Blankenhorn held long positions in AAPL, MSFT and MRNA. BlackRock’s (NYSE:BLK) iShares Biotechnology ETF (NASDAQ:IBB) tracks a market-weighted index of biotech stocks listed on U.S. exchanges.
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Almost all of them gave way to newcomers Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT). On the date of publication, Dana Blankenhorn held long positions in AAPL, MSFT and MRNA. Best Biotech Stocks: iShares Biotechnology ETF (IBB) Source: Maxx-Studio / Shutterstock Starting a gallery of the best biotech stocks with an exchange-traded fund (ETF) can seem like a form of giving up.
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Almost all of them gave way to newcomers Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT). On the date of publication, Dana Blankenhorn held long positions in AAPL, MSFT and MRNA. Best Biotech Stocks: Merck (MRK) Source: JHVEPhoto / Shutterstock.com Merck (NYSE:MRK) is not technically a biotech, but it illustrates an important trend for biotech investors.
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Almost all of them gave way to newcomers Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT). On the date of publication, Dana Blankenhorn held long positions in AAPL, MSFT and MRNA. For now, the company is doing well.
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19273.0
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2022-09-20 00:00:00 UTC
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US STOCKS-Wall Street falls as focus turns on Fed
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-falls-as-focus-turns-on-fed
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nan
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nan
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By Devik Jain and Ankika Biswas
Sept 20 (Reuters) - Wall Street's main indexes fell on Tuesday as investors positioned themselves for new economic projections and another large interest rate hike by the U.S. Federal Reserve this week to quell decades-high inflation.
The benchmark S&P 500 index .SPX has lost 19% so far this year as investors fear aggressive policy tightening measures by the Fed could tip the U.S. economy into a recession, with recent dire outlooks from delivery firm FedEx Corp FDX.N and automaker Ford Motor Co F.N adding to woes.
Shares of Ford dropped 10.5% after it flagged a bigger-than-expected $1 billion hit from inflation and pushed delivery of some vehicles to the fourth quarter due to parts shortages.
Adding to a mixed set of economic data, a Commerce Department report showed residential building permits USBPE=ECI - among the more forward-looking housing indicators - slid by 10% to 1.517 million units, the lowest level since June 2020.
"Markets have been under some pressure because it's clear that the economy and the growth rate of earnings are in the process of slowing and going to slow even further," said Hugh Johnson, chief economist of Hugh Johnson Economics in Albany, New York.
"The concern is that even though it's slowing, the Federal Reserve will tell us in a very hawkish way that they're very focused on the 2% rate of inflation and they're going to continue to lean towards restraint or be very tough until they get to that 2% level."
The U.S. central bank is widely expected to hike rates by 75 basis points for the third straight time at the end of its policy meeting on Wednesday, with markets also pricing in a 17% chance of a 100 bps increase and expect terminal rate at 4.49% by March 2023. FEDWATCH
Focus will also be on the updated economic projections and dot plot estimates for cues on policymakers' sense of the endpoint for rates and the outlooks for unemployment, inflation and economic growth.
"We are going to be in an environment where month to month economic data is going to be scrutinized to a greater magnitude than it has been previously," said Doug Fincher, portfolio manager at Ionic Capital Management.
"The market believes that the Fed will get inflation under control at the expense of the economy. The question is will they achieve this through a soft landing or a hard landing."
The benchmark U.S. 10-year Treasury yield US10YT=RR hit 3.56%, its highest level since April 2011, while the closely watched yield curve between two-year and 10-year notes US2US10=TWEB inverted further. US/
An inversion in this part of the yield curve is viewed as a reliable indicator that a recession will follow in one to two years.
All of the 11 major S&P sectors declined, with economy-sensitive real estate .SPLRCR and materials .SPLRCM sectors down 2.1% each.
At 12:33 p.m. ET, the Dow Jones Industrial Average .DJI was down 345.48 points, or 1.11%, at 30,674.20, the S&P 500 .SPX was down 43.60 points, or 1.12%, at 3,856.29, and the Nasdaq Composite .IXIC was down 79.80 points, or 0.69%, at 11,455.22.
The S&P 500 .SPX is trading below 3,900 points, a level that was considered by technical analysts as a strong support for the index.
Shares of rate-sensitive growth companies were mixed. Apple Inc AAPL.O rose 1.8%, while Alphabet Inc GOOGL.O and Amazon.com Inc AMZN.O fell 1.5% and 1.2%, respectively.
PayPal Holdings Inc PYPL.O dipped 3% after Susquehanna Financial Group downgraded the fintech company's stock to "neutral" from "buy".
Declining issues outnumbered advancers for a 5.39-to-1 ratio on the NYSE and for a 2.57-to-1 ratio on the Nasdaq.
The S&P index recorded two new 52-week high and 54 new lows, while the Nasdaq recorded 19 new highs and 292 new lows.
(Reporting by Devik Jain and Ankika Biswas in Bengaluru; Editing by Shounak Dasgupta and Maju Samuel)
((Devik.Jain@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc AAPL.O rose 1.8%, while Alphabet Inc GOOGL.O and Amazon.com Inc AMZN.O fell 1.5% and 1.2%, respectively. By Devik Jain and Ankika Biswas Sept 20 (Reuters) - Wall Street's main indexes fell on Tuesday as investors positioned themselves for new economic projections and another large interest rate hike by the U.S. Federal Reserve this week to quell decades-high inflation. The benchmark S&P 500 index .SPX has lost 19% so far this year as investors fear aggressive policy tightening measures by the Fed could tip the U.S. economy into a recession, with recent dire outlooks from delivery firm FedEx Corp FDX.N and automaker Ford Motor Co F.N adding to woes.
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Apple Inc AAPL.O rose 1.8%, while Alphabet Inc GOOGL.O and Amazon.com Inc AMZN.O fell 1.5% and 1.2%, respectively. By Devik Jain and Ankika Biswas Sept 20 (Reuters) - Wall Street's main indexes fell on Tuesday as investors positioned themselves for new economic projections and another large interest rate hike by the U.S. Federal Reserve this week to quell decades-high inflation. The S&P index recorded two new 52-week high and 54 new lows, while the Nasdaq recorded 19 new highs and 292 new lows.
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Apple Inc AAPL.O rose 1.8%, while Alphabet Inc GOOGL.O and Amazon.com Inc AMZN.O fell 1.5% and 1.2%, respectively. By Devik Jain and Ankika Biswas Sept 20 (Reuters) - Wall Street's main indexes fell on Tuesday as investors positioned themselves for new economic projections and another large interest rate hike by the U.S. Federal Reserve this week to quell decades-high inflation. "Markets have been under some pressure because it's clear that the economy and the growth rate of earnings are in the process of slowing and going to slow even further," said Hugh Johnson, chief economist of Hugh Johnson Economics in Albany, New York.
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Apple Inc AAPL.O rose 1.8%, while Alphabet Inc GOOGL.O and Amazon.com Inc AMZN.O fell 1.5% and 1.2%, respectively. "The concern is that even though it's slowing, the Federal Reserve will tell us in a very hawkish way that they're very focused on the 2% rate of inflation and they're going to continue to lean towards restraint or be very tough until they get to that 2% level." US/ An inversion in this part of the yield curve is viewed as a reliable indicator that a recession will follow in one to two years.
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19274.0
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2022-09-20 00:00:00 UTC
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After Hours Most Active for Sep 20, 2022 : INFY, CVX, GOOG, MQ, AAPL, PDD, CHNG, AMZN, KSS, PCG, CLVT, EB
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-sep-20-2022-%3A-infy-cvx-goog-mq-aapl-pdd-chng-amzn-kss-pcg-clvt
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nan
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nan
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The NASDAQ 100 After Hours Indicator is up 10.16 to 11,861.7. The total After hours volume is currently 77,544,500 shares traded.
The following are the most active stocks for the after hours session:
Infosys Limited (INFY) is -0.015 at $17.02, with 5,167,467 shares traded., following a 52-week high recorded in today's regular session.
Chevron Corporation (CVX) is unchanged at $156.28, with 2,563,772 shares traded. CVX's current last sale is 86.82% of the target price of $180.
Alphabet Inc. (GOOG) is +0.1501 at $101.98, with 2,121,594 shares traded., following a 52-week high recorded in today's regular session.
Marqeta, Inc. (MQ) is -0.01 at $7.10, with 2,088,533 shares traded. MQ's current last sale is 48.97% of the target price of $14.5.
Apple Inc. (AAPL) is +0.14 at $157.04, with 1,681,557 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Pinduoduo Inc. (PDD) is unchanged at $66.10, with 1,666,696 shares traded. As reported by Zacks, the current mean recommendation for PDD is in the "buy range".
Change Healthcare Inc. (CHNG) is unchanged at $27.11, with 1,611,375 shares traded., following a 52-week high recorded in today's regular session.
Amazon.com, Inc. (AMZN) is +0.18 at $122.37, with 1,584,081 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Kohl's Corporation (KSS) is -0.02 at $28.29, with 1,520,215 shares traded. KSS's current last sale is 87.05% of the target price of $32.5.
Pacific Gas & Electric Co. (PCG) is unchanged at $13.30, with 1,453,608 shares traded. PCG's current last sale is 83.13% of the target price of $16.
Clarivate Plc (CLVT) is unchanged at $10.38, with 1,131,064 shares traded., following a 52-week high recorded in today's regular session.
Eventbrite, Inc. (EB) is unchanged at $6.75, with 1,122,425 shares traded. EB's current last sale is 51.92% of the target price of $13.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is +0.14 at $157.04, with 1,681,557 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Infosys Limited (INFY) is -0.015 at $17.02, with 5,167,467 shares traded., following a 52-week high recorded in today's regular session.
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Apple Inc. (AAPL) is +0.14 at $157.04, with 1,681,557 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Infosys Limited (INFY) is -0.015 at $17.02, with 5,167,467 shares traded., following a 52-week high recorded in today's regular session.
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Apple Inc. (AAPL) is +0.14 at $157.04, with 1,681,557 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Chevron Corporation (CVX) is unchanged at $156.28, with 2,563,772 shares traded.
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Apple Inc. (AAPL) is +0.14 at $157.04, with 1,681,557 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is up 10.16 to 11,861.7.
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19275.0
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2022-09-20 00:00:00 UTC
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Here's My Top Growth Stock to Buy Now
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AAPL
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https://www.nasdaq.com/articles/heres-my-top-growth-stock-to-buy-now-12
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nan
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nan
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Growth stocks were an unstoppable force on Wall Street after the end of the Great Recession as historically low lending rates and the Federal Reserve's easy money policies provided companies with cheap capital to expand their businesses.
Since late 2021, however, growth stocks have fallen out of favor, and with the U.S. on the brink of being in an official recession, these former high flyers are having difficulty finding love in the market. Yet it will be growth stocks that end up leading us higher again, and Pinterest (NYSE: PINS) is one of those companies that could soar even if the economy turns even sourer. In fact, a recession just might have Pinterest making you richer now -- and in the future, too.
Image source: Getty Images.
Ready for a rebound
Social sharing platform Pinterest was a pandemic-era darling that's fallen on hard times. It's lost almost three-quarters of its value since hitting an all-time high of $90 in February 2021. As the economy reopened, the passion for pinning ideas on home remodeling, diet and weight loss, and any number of other stay-at-home activities cooled considerably.
But hard times could make Pinterest popular again. People will be looking for ideas for things to do when business turns up again, and -- because Pinterest is a beacon for advertisers since its users are looking to spend their money on things -- it should remain a source of strength.
It's happening already. Even though the economy has contracted for two consecutive quarters -- a common definition of a recession, although not the official one -- and advertisers generally are pulling back on their digital spending (just check the earnings reports of Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Meta (NASDAQ: META), and Snap (NYSE: SNAP)), Pinterest is still seeing robust advertising dollar growth.
In its second-quarter earnings release last month, Pinterest reported that revenue grew 9% year-over-year and 16% sequentially on increased spending by large retail advertisers. While Pinterest saw weakness from big box and mid-tier retailers, e-commerce and specialty retailers more than made up for their loss.
Innovating for growth
The photo pinning site also seems to have staunched the loss of monthly active users. While the second quarter's number of 433 million was 5% below the year-ago count, it was flat from the first quarter and suggested that Pinterest has hit bottom already. More importantly, though, Pinterest reported a 17% increase in global average revenue per user, which is what advertisers like to see.
That's also circumstantial evidence of the "hard times equate to better performance" theory. As the economy worsened, consumers once again turned to Pinterest. No one's suggesting that an outright collapse will lead to boom times, but there's an argument to be made for a certain level of inverse performance.
It's also because Pinterest continues to innovate, and not just rest on the idea that what it has is good enough. A case in point is Shuffles, its Instagram-like, collage-creating app that rocketed out of the gate to land as the top app in Apple's (NASDAQ: AAPL) AppStore Lifestyle category (it has since eased back to 77th, but remains a five-star-rated app).
The app is something Pinterest can use to help advertisers further target their focus demographics. Users willingly share exactly the kind of topics they're interested in, and since Pinterest is investing in site tags, in-house measurement tools, and new tools like enhanced matching, which matches conversion data with the person responsible for the conversion, the impact of user tracking roadblocks such as Apple's privacy protocols can be significantly offset.
Cheap where it matters
Pinterest's stock isn't cheap -- it still trades at 67 times trailing earnings -- but at 20 times the free cash flow it produces and six times sales, the idea-sharing site is at some of its lowest levels ever since it went public.
Pinterest has the potential to grow into a giant e-commerce stock in its own right due to its substantial and committed user base. It continues to be an attractive target for advertisers, one that will benefit Pinterest's bottom line no matter the market conditions. Therefore, Pinterest looks like a solid buy today.
10 stocks we like better than Pinterest
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 Pinterest wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of August 17, 2022
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet (A and C shares), Apple, Meta Platforms, Inc., 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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A case in point is Shuffles, its Instagram-like, collage-creating app that rocketed out of the gate to land as the top app in Apple's (NASDAQ: AAPL) AppStore Lifestyle category (it has since eased back to 77th, but remains a five-star-rated app). Growth stocks were an unstoppable force on Wall Street after the end of the Great Recession as historically low lending rates and the Federal Reserve's easy money policies provided companies with cheap capital to expand their businesses. As the economy reopened, the passion for pinning ideas on home remodeling, diet and weight loss, and any number of other stay-at-home activities cooled considerably.
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A case in point is Shuffles, its Instagram-like, collage-creating app that rocketed out of the gate to land as the top app in Apple's (NASDAQ: AAPL) AppStore Lifestyle category (it has since eased back to 77th, but remains a five-star-rated app). Even though the economy has contracted for two consecutive quarters -- a common definition of a recession, although not the official one -- and advertisers generally are pulling back on their digital spending (just check the earnings reports of Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Meta (NASDAQ: META), and Snap (NYSE: SNAP)), Pinterest is still seeing robust advertising dollar growth. 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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A case in point is Shuffles, its Instagram-like, collage-creating app that rocketed out of the gate to land as the top app in Apple's (NASDAQ: AAPL) AppStore Lifestyle category (it has since eased back to 77th, but remains a five-star-rated app). Yet it will be growth stocks that end up leading us higher again, and Pinterest (NYSE: PINS) is one of those companies that could soar even if the economy turns even sourer. Even though the economy has contracted for two consecutive quarters -- a common definition of a recession, although not the official one -- and advertisers generally are pulling back on their digital spending (just check the earnings reports of Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Meta (NASDAQ: META), and Snap (NYSE: SNAP)), Pinterest is still seeing robust advertising dollar growth.
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A case in point is Shuffles, its Instagram-like, collage-creating app that rocketed out of the gate to land as the top app in Apple's (NASDAQ: AAPL) AppStore Lifestyle category (it has since eased back to 77th, but remains a five-star-rated app). Yet it will be growth stocks that end up leading us higher again, and Pinterest (NYSE: PINS) is one of those companies that could soar even if the economy turns even sourer. That's right -- they think these 10 stocks are even better buys.
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19276.0
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2022-09-20 00:00:00 UTC
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Apple (AAPL) Gains As Market Dips: What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-gains-as-market-dips%3A-what-you-should-know-2
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nan
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nan
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In the latest trading session, Apple (AAPL) closed at $156.90, marking a +1.57% move from the previous day. This move outpaced the S&P 500's daily loss of 1.13%. Elsewhere, the Dow lost 1.01%, while the tech-heavy Nasdaq lost 0.07%.
Coming into today, shares of the maker of iPhones, iPads and other products had lost 7.81% in the past month. In that same time, the Computer and Technology sector lost 11.27%, while the S&P 500 lost 7.59%.
Apple will be looking to display strength as it nears its next earnings release. On that day, Apple is projected to report earnings of $1.26 per share, which would represent year-over-year growth of 1.61%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $88.09 billion, up 5.68% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.11 per share and revenue of $392.28 billion, which would represent changes of +8.91% and +7.23%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Apple. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.04% higher. Apple is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Apple is currently trading at a Forward P/E ratio of 25.3. For comparison, its industry has an average Forward P/E of 6.6, which means Apple is trading at a premium to the group.
Meanwhile, AAPL's PEG ratio is currently 2. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Computer - Mini computers stocks are, on average, holding a PEG ratio of 2.41 based on yesterday's closing prices.
The Computer - Mini computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Special Report: The Top 5 IPOs for Your Portfolio
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the latest trading session, Apple (AAPL) closed at $156.90, marking a +1.57% move from the previous day. Meanwhile, AAPL's PEG ratio is currently 2. Apple Inc. (AAPL): Free Stock Analysis Report
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In the latest trading session, Apple (AAPL) closed at $156.90, marking a +1.57% move from the previous day. Meanwhile, AAPL's PEG ratio is currently 2. Apple Inc. (AAPL): Free Stock Analysis Report
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In the latest trading session, Apple (AAPL) closed at $156.90, marking a +1.57% move from the previous day. Meanwhile, AAPL's PEG ratio is currently 2. Apple Inc. (AAPL): Free Stock Analysis Report
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In the latest trading session, Apple (AAPL) closed at $156.90, marking a +1.57% move from the previous day. Meanwhile, AAPL's PEG ratio is currently 2. Apple Inc. (AAPL): Free Stock Analysis Report
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19277.0
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2022-09-20 00:00:00 UTC
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Grab Rivian Stock Before it Really Heats Up
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AAPL
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https://www.nasdaq.com/articles/grab-rivian-stock-before-it-really-heats-up
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
[Editor’s note: “Grab Rivian Stock Before it Really Heats Up” was previously published in July 2022. It has since been updated to include the most relevant information available.]
As an investor, it’s great to see the stocks that I love outperforming the broader market. And it’s especially great to see when the market has been crashing as harshly as it has been over the past few weeks. One such stock? Rivian (RIVN).
Rivian stock is up nearly 10% — even while the S&P is down 8.5%. And frankly, I think this is just the beginning of RIVN’s upward climb.
You may have heard that – despite all the talk of chip shortages and rising lithium prices – Rivian delivered 4,467 vehicles last quarter. That’s up an astounding 264% from Q1’s delivery total.
You may have also heard that Rivian reaffirmed its target for 25,000 cars produced this year, even in the face of a dramatically slowing economy. And deliveries are expected to rise another 65% next quarter and 23% the quarter after that.
Oh, and perhaps you heard that the company just announced a partnership with Mercedes-Benz (DMLRY) to jointly produce electric vans. This deal includes the construction of an all-electric facility using an existing Mercedes-Benz site in Europe. And that gives Rivian an opportunity to expand into the European market – while also ramping production to meet its growth targets.
Folks, things are really heating up at Rivian. This disruptive EV maker is on the cusp of enormous growth over the next few quarters. Alongside all that growth, I fully expect Rivian stock to keep rebounding with vigor.
Here’s a deeper look.
The Quick Rundown on Rivian
Before I go any further about why Rivian stock is a great EV play to buy today, let’s revisit Rivian’s fundamentals.
As an EV startup designing, manufacturing, and selling high-end electric SUVs and pick-up trucks, Rivian is widely considered among the most technologically advanced and promising pure EV makers in the world today.
The company started delivering units of its first model – the R1T – in 2021. It’s an electric pick-up truck that seats five, has a 54×50-inch bed and gets roughly 300 miles per charge. It can tow up to 11,000 pounds and has a 0-to-60 mph time as quick as three seconds. The interior is comprised of vegan leather, with a panoramic all-glass roof and a custom enhanced audio system.
It is a very high-quality electric pick-up truck and currently starts at $67,500. Rivian delivered almost 1,000 of these trucks in 2021 and is on track to deliver more than 20,000 R1Ts this year.
Rivian’s second model is an electric SUV dubbed the R1S. It’s a large-format SUV that can comfortably seat up to seven passengers and their gear. It, too, gets roughly 300 miles of driving range on a single charge and can accelerate from 0-to-60 mph as quick as three seconds. It has all-wheel-drive capability and is outfitted with the same interior fittings as the R1T: vegan leather interior, all-glass panoramic roof, and a custom enhanced sound system.
R1S deliveries have just barely begun, with the company shipping models to employees only. Public delivery is expected to start in August or September. And the starting price is $72,500.
Rivian went public in a highly-anticipated and briefly super-successful IPO last year. The stock has since struggled after a brief hot run. Today, the company is worth $32 billion. And at that valuation, Rivian stock is an absolute steal.
The Long-Term Bull Thesis on Rivian Stock
Long-term, we believe high-quality EV stocks are great multi-year investments, since EVs are set to grow from ~10% of car sales today, to 50%-plus by 2030.
In the realm of high-quality EV plays, Rivian stock is one of our favorites. Why? Our multi-year bull thesis can be broken down into five main points:
Leader in a strong demand niche of the burgeoning EV industry. We know that the trucking niche of the automotive market is very large with very durable and strong demand drivers. Presumably, as that portion of the auto market gets electrified, there will emerge an equally large electric truck market. Presently, there is no clear leader in that market. But Rivian has a promising early start with a fantastic first-to-market truck that has among the best specs in the industry. This electric trucking market will support multiple winners, and we’re confident Rivian will be one of them.
Great brand equity, with strong technology and a fantastic first product. Rivian has established exceptional luxury branding and has developed leading EV battery and torque technology. These are two things that are very important for creating a great electric truck. Indeed, the R1T is probably the highest-performing electric pick-up truck in market today. And it should remain so for the foreseeable future.
Strong early demand signals. Rivian has more than 90,000 net preorders in the U.S. and Canada for the R1S and R1T, illustrating that consumers want these cars.
Big support and partnerships. Aside from its recently-announced collaboration with Mercedes-Benz, Rivian also has a very unique and promising partnership with Amazon (AMZN). The retail giant will buy at least 100,000 electric delivery vehicles from Rivian. The extent of this partnership broadly implies that Amazon has basically picked Rivian as its “horse” in the EV race. And at scale, it will convert its entire delivery fleet into Rivian cars. That represents a huge long-term opportunity.
A mammoth-sized balance sheet. The best thing about Rivian is that it has almost $20 billion in cash on the balance sheet. And that grants the company an almost unfair advantage over peers. Rivian plans to use basically every penny of that cash balance over the next two to three years to develop market-leading tech, secure market-leading supply deals, and establish market-leading production capacity. Rivian’s $20 billion should enable it to create an electric vehicle empire by 2025.
For those five reasons, we believe Rivian projects as one of the largest producers of EV cars by 2030. That will render it one of the most valuable auto companies in the world by then.
Our “back-of-the-napkin” math indicates that Rivian could hit the million-deliveries-per-year milestone by the late 2020s. At a $70,000 average sales price, that implies total revenues of $70 billion. Assuming a similar margin profile as Tesla (TSLA) – 30% gross margins and 20% operating margins – that would lead to $14 billion in operating profits. That’s about $10 billion in net profits after taxes.
A simple 20X price-to-earnings (P/E) multiple on that implies a potential late 2020s valuation target for Rivian of $200 billion. That’s nearly 10X the current market cap, meaning we see Rivian stock as a potential ten-bagger.
Powerful Short-Term Drivers
We think that Rivian stock has multiple catalysts that could spark a significant rebound in shares over the next year.
For starters, the stock is really cheap. Rivian stock is basically trading at just 1X its 2025 sales estimates. If the company executes on its growth roadmap over the next few years, the stock should fly higher.
Previously, that was a big “if.” Today, it no longer is. Rivian is meeting its revised delivery and production targets even in a bad market. That’s impressive, and it should re-inject investor confidence into the company’s ability to execute over the long run.
At a macro-level, we’re also noticing trends of improving EV production capacity globally. With China removing recent Covid-19 lockdowns, there’s buzz that global EV production will meaningfully accelerate over the next 12 months. That’s because China is home to 60% of the world’s EV battery manufacturing. Indeed, this is already happening. China’s manufacturing PMI readings have been normalizing as of late.
This rebound should help all EV stocks, Rivian included.
The Final Word on Rivian Stock
We love Rivian stock as a long-term investment opportunity.
That said, RIVN isn’t our favorite next-gen transportation stock to buy today.
That title goes to a tiny $3 technology stock. I think this small tech stock could be the single most compelling 12-month investment opportunity in the market today.
You see, the world’s largest company – Apple – is about to the enter the EV game. Knowing that changes the context of Tim Cook’s Rivian ride. Apple’s been hard at work on a super-secret “Apple Car” project since 2015. And late last year, the company reportedly increased investments into the project to accelerate its development timeline.
The implication? Apple will launch its own EV likely within the next two years. It only makes sense that Tim Cook would want to check out his competition in close quarters.
Judging by Apple’s previous successes, it seems likely that the Apple Car is a huge hit. It even seems possible that this car unseats Tesla as the best-selling EV in the U.S. market.
Indeed, the Apple Car could be bigger than the iPhone, iPad, Apple Watch, and Mac put together.
And per my analysis, the $3 stock I’m talking about is positioned to secure a partnership with Apple to supply a critical piece of technology to make its car work.
So, if that sounds like a big deal, it’s because it is. My modeling suggests this tiny stock could soar 40X over the next few years.
Learn more about what may be the most exciting investment opportunity in the market today.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
The post Grab Rivian Stock Before it Really Heats Up appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Our multi-year bull thesis can be broken down into five main points: Leader in a strong demand niche of the burgeoning EV industry. Powerful Short-Term Drivers We think that Rivian stock has multiple catalysts that could spark a significant rebound in shares over the next year. And per my analysis, the $3 stock I’m talking about is positioned to secure a partnership with Apple to supply a critical piece of technology to make its car work.
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It has all-wheel-drive capability and is outfitted with the same interior fittings as the R1T: vegan leather interior, all-glass panoramic roof, and a custom enhanced sound system. The Long-Term Bull Thesis on Rivian Stock Long-term, we believe high-quality EV stocks are great multi-year investments, since EVs are set to grow from ~10% of car sales today, to 50%-plus by 2030. Rivian plans to use basically every penny of that cash balance over the next two to three years to develop market-leading tech, secure market-leading supply deals, and establish market-leading production capacity.
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The Quick Rundown on Rivian Before I go any further about why Rivian stock is a great EV play to buy today, let’s revisit Rivian’s fundamentals. The Long-Term Bull Thesis on Rivian Stock Long-term, we believe high-quality EV stocks are great multi-year investments, since EVs are set to grow from ~10% of car sales today, to 50%-plus by 2030. The Final Word on Rivian Stock We love Rivian stock as a long-term investment opportunity.
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One such stock? Rivian stock is up nearly 10% — even while the S&P is down 8.5%. Today, the company is worth $32 billion.
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19278.0
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2022-09-20 00:00:00 UTC
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Microsoft Announces Dividend Increase, DGRW Captures
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AAPL
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https://www.nasdaq.com/articles/microsoft-announces-dividend-increase-dgrw-captures
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nan
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nan
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Tech giant Microsoft has announced that it will be increasing quarterly dividends by 10% compared to last quarter's dividends, a six-cent boost to $0.68 a share.
As of the end of the day on October 12, shareholders of Microsoft this year will also be able to vote their shares at the annual shareholder’s meeting on December 13, 2022, to be hosted virtually by Satya Nadella, chairman and CEO of Microsoft.
Microsoft is a component of most portfolios and is carried in over 500 ETFs. As a dividend-paying company, it’s likely grown its weighting within portfolios this year as many advisors and investors have gravitated towards dividend-paying companies in challenging market times. Dividend funds have been enormously popular in 2022, and with market uncertainty looking to persist, they are likely to remain a strong play going into the last quarter of the year.
The WisdomTree US Quality Dividend Growth Fund (DGRW) invests in large-cap U.S. equity companies that are growing their dividends and applies both quality and growth screens to securities. The fund seeks to track the WisdomTree U.S. Quality Dividend Growth Index, a fundamentally weighted index based on dividend projections for the next year, which screens companies for long-term growth expectations, return on equity, and return on assets.
“DGRW takes a more forward-looking approach to dividend growth compared to other ETFs, which has resulted in higher exposure to information technology companies. Many tech companies do not have 10 let alone 20-year records of dividend growth but are positioned to return cash to shareholders in the future,” explained Todd Rosenbluth, head of research at VettaFi.
Microsoft Corp (MSFT) is the third largest holding of the fund at a 4.12% weight, preceded by Johnson & Johnson (JNJ) at 5.11% weight and Apple Inc. (AAPL) at 5.13% weight.
DGRW continues to experience healthy, sustained inflows this year. In the last month (8/16/2022-9/16/2022), the fund had net flows of $292.43 million. In the last three months, DGRW experienced net flows of $660.68 million.
The index is made up of the 300 companies from the WisdomTree U.S. Dividend Index that have the best-combined rank of growth and quality factors mentioned above. The index is dividend-weighted on an annual basis so that it reflects each company’s aggregate cash dividend shares proportionately, with the highest dividend-paying companies weighted the heaviest.
Securities within the index are capped at 5% individually, and most sectors cannot make up more than 20% — information technology is one exception at a 25% limit, while real estate is the other at a 10% cap.
DGRW has an expense ratio of 0.28%.
For more news, information, and strategy, visit the Modern Alpha Channel.
Read more on ETFtrends.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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Microsoft Corp (MSFT) is the third largest holding of the fund at a 4.12% weight, preceded by Johnson & Johnson (JNJ) at 5.11% weight and Apple Inc. (AAPL) at 5.13% weight. Dividend funds have been enormously popular in 2022, and with market uncertainty looking to persist, they are likely to remain a strong play going into the last quarter of the year. “DGRW takes a more forward-looking approach to dividend growth compared to other ETFs, which has resulted in higher exposure to information technology companies.
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Microsoft Corp (MSFT) is the third largest holding of the fund at a 4.12% weight, preceded by Johnson & Johnson (JNJ) at 5.11% weight and Apple Inc. (AAPL) at 5.13% weight. The WisdomTree US Quality Dividend Growth Fund (DGRW) invests in large-cap U.S. equity companies that are growing their dividends and applies both quality and growth screens to securities. The fund seeks to track the WisdomTree U.S. Quality Dividend Growth Index, a fundamentally weighted index based on dividend projections for the next year, which screens companies for long-term growth expectations, return on equity, and return on assets.
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Microsoft Corp (MSFT) is the third largest holding of the fund at a 4.12% weight, preceded by Johnson & Johnson (JNJ) at 5.11% weight and Apple Inc. (AAPL) at 5.13% weight. The WisdomTree US Quality Dividend Growth Fund (DGRW) invests in large-cap U.S. equity companies that are growing their dividends and applies both quality and growth screens to securities. The fund seeks to track the WisdomTree U.S. Quality Dividend Growth Index, a fundamentally weighted index based on dividend projections for the next year, which screens companies for long-term growth expectations, return on equity, and return on assets.
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Microsoft Corp (MSFT) is the third largest holding of the fund at a 4.12% weight, preceded by Johnson & Johnson (JNJ) at 5.11% weight and Apple Inc. (AAPL) at 5.13% weight. The fund seeks to track the WisdomTree U.S. Quality Dividend Growth Index, a fundamentally weighted index based on dividend projections for the next year, which screens companies for long-term growth expectations, return on equity, and return on assets. “DGRW takes a more forward-looking approach to dividend growth compared to other ETFs, which has resulted in higher exposure to information technology companies.
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19279.0
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2022-09-20 00:00:00 UTC
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Good Stocks To Invest In Now? 4 Blue Chip Stocks To Buy According To Analysts
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AAPL
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https://www.nasdaq.com/articles/good-stocks-to-invest-in-now-4-blue-chip-stocks-to-buy-according-to-analysts
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nan
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Blue chip stocks are highly valued shares of large, well-established, and financially sound companies. They are called blue chips because they are considered some of the safest and most reliable investments in the stock market. Blue chip stocks tend to be less volatile than other stocks, and they often offer high dividend yields.
For these reasons, blue chips are often favored by conservative investors who are looking for stability and income. While they may not offer the same growth potential as other stocks, top blue chip stocks are an excellent choice for risk-averse investors who are looking for stability and consistent returns. If you’re now keen on researching blue-chip stocks to buy [or avoid] now, here are four to watch in the stock market today.
Blue Chip Stocks To Buy [Or Avoid] Today
AutoZone Inc. (NYSE: AZO)
Apple, Inc. (NASDAQ: AAPL)
Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH)
Humana Inc. (NYSE: HUM)
1. AutoZone (AZO)
First up, AutoZone Inc. (AZO) is one of the largest retailers and distributors of automotive replacement parts and accessories in the United States. Specifically, the company sells items like automotive replacement parts, chemicals, tools, equipment, and accessories through its AutoZone stores and AutoZone Online. As of today, AutoZone operates over 6,100 retail locations throughout the United States.
AutoZone (AZO) Recent Stock News
On Monday of this week, AutoZone reported a beat for its fourth quarter 2022 financial results. In the report, AutoZone reported Q4 2022 earnings per share of $40.41 per share, with a revenue of 5.3 billion. This came in better than analysts estimated for the quarter, which was earnings of $38.38 per share, and revenue of $5.2 billion. In addition, the company posted a revenue increase of 8.9% during the same period, in 2021.
Bill Rhodes, Chairman, President, and Chief Executive Officer said this in his letter to shareholders, “Our results are a testament to our AutoZoners’ ongoing commitment to delivering exceptional customer service every day. Our retail business performed well this quarter ending with positive same-store sales on top of last year’s strong performance. And, our commercial business growth continued to be exceptionally strong at 22%. The investments we have made in both inventory availability and technology are enhancing our competitive positioning. We are optimistic about our growth prospects heading into our new fiscal year.”
Aside from this, today brokerages like Citigroup (NYSE: C), and Jeffries Financial Group (NYSE: JEF) raised their price targets on AutoZone stock. In detail, Citigroup increased its price target on AZO stock from $2,250 per share to $2,520 per share. Meanwhile, Jeffries also raised their price target from $2,350 to $2,450 per share.
AutoZone (AZO) Stock Chart
As of Tuesday mid-morning, shares of AZO stock are up over 1% at $2,120.12 a share. Given its strong quarter, and the street’s reaction, do you think now is a good time to add AutoZone to your watchlist?
Source: TD Ameritrade TOS
[Read More] 3 Hydrogen Stocks To Watch In September 2022
2. Apple (AAPL)
Next up, we have consumer tech giant Apple, Inc. (AAPL). This company needs little to no introduction for most, but if you are unfamiliar here’s a brief introduction. Apple is an American multinational technology company. The company designs develop and sell consumer electronics, computer software, and online services. Most notably, a few of Apple’s most popular products are items like the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the Apple Watch smartwatch, and many others.
Apple (AAPL) Recent Stock News
Earlier this month, Apple announced its new product line-up to investors. Specifically, the company announced it will be rolling out a new iPhone® 14 Pro and iPhone 14 Pro Max. In detail, this new iPhone will include additional features such as an Always-On display, and the first-ever 48MP camera on an iPhone, among others. In addition to that, Apple also announced they will be introducing the new Apple Watch® Series 8 and the new Apple Watch SE®.
Additionally, Greg Joswiak, Apple’s senior vice president of Worldwide Marketing, commented, “Our customers count on their iPhone every day, and with iPhone 14 Pro and iPhone 14 Pro Max, we’re delivering more advancements than any other iPhone. iPhone 14 Pro introduces a camera system that empowers every user — from the casual user to the professional — to take their best photos and video, and innovative new technologies like the Always-On display and the Dynamic Island, which offers new interactions for notifications and activities.“
Continuing on, just on Tuesday Evercore ISI (NYSE: EVR) reported an outperform rating on Apple. As well as, the brokerage raised its price target on AAPL stock from $185 per share to $190 per share.
Apple (AAPL) Stock Chart
Meanwhile, year-to-date shares of Apple stock are down approximately 13.79% as of Tuesday’s lunchtime session at $156.77 per share. Given Apple’s track record and their new product lineup, is now a good time to add Apple stock to your long-term portfolio?
Source: TD Ameritrade TOS
3. Norwegian Cruise Line Holdings (NCLH)
After that, let’s move toward cruise line company Norwegian Cruise Line Holdings (NCLH). In brief, Norwegian Cruise Line is the third-largest cruise company in terms of berths globally. For a sense of scale, the company has more than 62,000 berths and operates 29 ships. Moreover, Norwegian Cruise Line operates under three brands, which are Norwegian, Oceania, and Regent Seven Seas. As of May 2022, the company has announced they have redeployed its whole fleet. The company has redeployed its entire fleet as of May 2022.
Norwegian Cruise Line Holdings (NCLH) Recent Stock News
Last month, the company announced its Q2 2022 financial results. In detail, the company reported a second-quarter loss of $1.22 per share, with revenue of $1.2 billion. Meanwhile, analysts’ estimates for Q2 2022 were a loss of $0.87 per share and revenue of $1.3 billion. Additionally, the company closed out the 2nd quarter with $1.9 billion in cash equivalents. This signifies a significant improvement compared to pre-pandemic levels. In fact, NCLH reported a 27,079.1% revenue increase on a year-over-year basis.
Frank Del Rio, President & CEO of Norwegian Cruise Line Holdings said this about the quarter, “We are encouraged by the continued strong consumer demand we are experiencing which is reflected in our record pricing, accelerating booking volumes, especially for 2023 and beyond, and highest ever onboard revenue generation. Having emerged from the pandemic and returning to more normal operations, we remain steadfast in our strategy and commitment to protect our brands’ positioning and industry-leading pricing, which we firmly believe is the best way to maximize long-term value for all our stakeholders.”
On Tuesday, the company received an upgrade from hold to buy from Truist Financial (NYSE: TFC). The brokerage raised its price target on NCLH stock from $18 to $19 per share, representing a 23.94% upside.
Norwegian Cruise Line Holdings (NCLH) Stock Chart
Since the start of 2022, NCLH stock has fallen by over 30% at $15.45 per share as of Tuesday afternoon’s trading session. However, over the last month of trading action, shares of Norwegian Cruise Line stock have recovered by approximately 23.11%. All in all, do you think now is a good time to invest in Norwegian Cruise Line Holdings?
Source: TD Ameritrade TOS
[Read More] Stocks To Invest In Right Now? 3 Lithium Mining Stocks For Your List
4. Humana (HUM)
Last but not least, Humana Inc. (HUM) is one of the largest health insurance companies in the world. In detail, the company offers a variety of health plans, including individual and family plans, as well as Medicare and Medicaid plans. Humana also provides a wide range of other services, such as pharmacy benefits management, dental coverage, and vision care. For a sense of scale, Humana currently has over 20 million customers in the United States.
Humana (HUM) Recent Stock News
Last week Thursday, Humana announced mid-term adjusted earnings per share target of $37 in 2025. Meanwhile, the company also raised its full-year 2022 EPS outlook to approximately $25 per share at its most recent investor day. This would represent a 14% compounded yearly growth rate above Humana’s updated full-year 2022 EPS guidance.
What’s more, Bruce D. Broussard, Humana’s President and Chief Executive Officer at Humana had this to say in his release to shareholders, “We are confident in our ability to deliver compelling, sustainable earnings growth, both in the near and longer-term which will continue to drive shareholder value. Our strong competitive positioning and unique capabilities in the highly attractive individual Medicare Advantage market, coupled with the opportunity to scale and further integrate our CenterWell healthcare services capabilities, positions us for durable leadership in the value-based care industry.”
On Tuesday, Morgan Stanley (NYSE: MS) upgraded HUM stock from equal weight to overweight. They also raised their price target from $494 per share to $549 per share.
Humana (HUM) Stock Chart
So far in 2022, Humana has outperformed the broader market as shares are up over 8% year-to-date. On Tuesday’s early afternoon trading session, HUM stock is trading up another 1% at $506.07 per share. With this update, will you be adding Humana stock to your list of stocks to watch today?
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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Blue Chip Stocks To Buy [Or Avoid] Today AutoZone Inc. (NYSE: AZO) Apple, Inc. (NASDAQ: AAPL) Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) Humana Inc. (NYSE: HUM) 1. Apple (AAPL) Next up, we have consumer tech giant Apple, Inc. (AAPL). Apple (AAPL) Recent Stock News Earlier this month, Apple announced its new product line-up to investors.
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Blue Chip Stocks To Buy [Or Avoid] Today AutoZone Inc. (NYSE: AZO) Apple, Inc. (NASDAQ: AAPL) Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) Humana Inc. (NYSE: HUM) 1. Apple (AAPL) Next up, we have consumer tech giant Apple, Inc. (AAPL). Apple (AAPL) Recent Stock News Earlier this month, Apple announced its new product line-up to investors.
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Blue Chip Stocks To Buy [Or Avoid] Today AutoZone Inc. (NYSE: AZO) Apple, Inc. (NASDAQ: AAPL) Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) Humana Inc. (NYSE: HUM) 1. Apple (AAPL) Stock Chart Meanwhile, year-to-date shares of Apple stock are down approximately 13.79% as of Tuesday’s lunchtime session at $156.77 per share. Apple (AAPL) Next up, we have consumer tech giant Apple, Inc. (AAPL).
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Blue Chip Stocks To Buy [Or Avoid] Today AutoZone Inc. (NYSE: AZO) Apple, Inc. (NASDAQ: AAPL) Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) Humana Inc. (NYSE: HUM) 1. Apple (AAPL) Next up, we have consumer tech giant Apple, Inc. (AAPL). Apple (AAPL) Recent Stock News Earlier this month, Apple announced its new product line-up to investors.
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19280.0
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2022-09-20 00:00:00 UTC
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Why the Next Great Tech Bull Market Has Begun
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AAPL
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https://www.nasdaq.com/articles/why-the-next-great-tech-bull-market-has-begun
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
[Editor’s note: “Why the Next Great Tech Bull Market Has Begun” was previously published in July 2022. It has since been updated to include the most relevant information available.]
The tech sector dropped like a stone this year. So, it’s easy to forget the cardinal rule that marks many a bull market: Tech still rules the world.
Here’s a little news flash. Tech stocks have entered a brand-new bull market that could be the start of a massive 50%-plus melt-up. And certain tech plays could see a 10X surge higher!
The reason behind this is deceptively simple.
Tech stocks have been getting slammed all year long. The sector gave back roughly 30%, while many individual names plunged 70% or more.
That selloff had nothing to do with fundamentals. Everywhere, folks are still using technology to do everything. They’re still all shopping on Amazon (AMZN). They’re still watching Netflix (NFLX), buying Apple (AAPL) products, and working with Microsoft (MSFT) software.
Tech stocks were crushed because of this little thing called inflation. Indeed, that became a big problem in 2022 – for the first time in 50 years.
And now that big problem is starting to fade. Yes, August’s CPI was hotter than expected. Consumer prices rose 8.3% that month. But they rose 8.5% in July and 9.1% in June. That trend is still disflationary. And that’s bullish.
So are the fundamentals – and the technicals. All evidence points to this new bull market being the real deal.
If that’s true, the data says tech stocks will rip higher by 50% over the next 12 months. In fact, dozens of select tech stocks should rally by 1,000% or more.
And we’ve found one tech stock we think can rally 10X before the year’s end…
In other words, investors who buy the top tech stocks today will make fortunes over the next 12 months.
Let’s make sure you’re one of them.
Inflation Is Dying
Since late 2020, inflation has been doing one thing and one thing only: Getting hotter, and hotter, and hotter. Every. Single. Month.
That trend finally broke in July.
Of note, July’s report included a number of bullish post-pandemic firsts for inflation. For the first time, inflation was negative on a month-over-month basis and rates dopped more than 50 basis points sequentially. Also for the first time, energy prices fell in a major way.
Now, across the board, August’s CPI numbers topped expectations. Headline inflation rose 8.3%, versus 8.1% expected. Core inflation rose 6.3%, versus 6.0% expected. Month-over-month inflation rates topped expectations, too.
But while spooky, it is VERY important to note that despite the beat, headline inflation rates are still falling. That is, headline inflation was 9.1% in June. It dropped to 8.5% in July and fell again to 8.3% in August. So, while the rate of deceleration slowed last month, disinflation still happened.
We fully expect inflation rates to continue their deceleration over the next 12 months. As they do, tech stocks will soar – and certain small tech stocks will soar 10X or more!
Bull Market Fortunes Are on the Way
In truth, we’ve been bullish on a new tech bull market for the past two months. Why?
July’s inflation print was so good that tech stocks soared about 3%. That continued what had been a big rally ever since mid-June. By definition, that means tech stocks officially entered a new bull market.
Sure, that’s just a definition. But it’s also very meaningful.
This technical indicator has successfully predicted every tech-stock bear market’s end over the past 50 years. except the dot-com crash. And this isn’t the dot-com crash, since valuations at that time were about 50% higher than they are today.
To that end, every time over the past 50 years (excluding 2000-2001) that tech stocks did rally 20% off recent lows as they’ve done over the past two months, they soared over the next 12 months.
The average 12-month-forward gain? Almost 40%. The average 12-month gain in the most recent examples from the past 20 years? Nearly 50%!
In other words, tech stocks flashed an ultra-rare “bull market entry” signal back in July. And it has a 100% track record (excluding the dot-com crash) of predicting big tech-stock gains over the next year.
The investment implication? The odds are very high that tech stocks surge about 50% over the next 12 months.
If they do, then history also says potentially dozens of small-cap tech firms will soar more than 10X as well.
And one stock in particular has the potential to bag 10X gains over the next month alone…
The Final Word
Lots of investors think money is made in bull markets.
That’s true. Money is made in bull markets. But fortunes are made in bear-to-bull market transitions.
In those periods, investors have the opportunity to score a decade’s worth of returns in a single year. They have the opportunity to see their investments soar 5X, 6X, even 10X in value in 12 months or less.
It’s a once-in-a-decade investment opportunity. It’s happening right now. And all investors have to do to capitalize on it is buy the right tech stocks today.
We’ve spent the past several months scanning the market for the highest-upside-potential tech stocks in this bear-to-bull market transition.
Ultimately, our research led to us to one stock being the single best buy in the market right now.
What makes this stock so special?
Well, it’s smack dab in the middle of the most promising economic opportunity of our lifetimes. I’m talking about capitalizing on the Space Economy. The opportunities that lie within are about as infinite as space itself. And the stock I’m focused on is the only one that can realistically soar 10X in a hurry.
Seriously. If proven successful, this company is primed to change the world. And its stock could really rise by 10X or more in that time.
It is a stock you simply need to know about today.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
The post Why the Next Great Tech Bull Market Has Begun appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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They’re still watching Netflix (NFLX), buying Apple (AAPL) products, and working with Microsoft (MSFT) software. In other words, tech stocks flashed an ultra-rare “bull market entry” signal back in July. And one stock in particular has the potential to bag 10X gains over the next month alone… The Final Word Lots of investors think money is made in bull markets.
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They’re still watching Netflix (NFLX), buying Apple (AAPL) products, and working with Microsoft (MSFT) software. InvestorPlace - Stock Market News, Stock Advice & Trading Tips [Editor’s note: “Why the Next Great Tech Bull Market Has Begun” was previously published in July 2022. And we’ve found one tech stock we think can rally 10X before the year’s end… In other words, investors who buy the top tech stocks today will make fortunes over the next 12 months.
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They’re still watching Netflix (NFLX), buying Apple (AAPL) products, and working with Microsoft (MSFT) software. InvestorPlace - Stock Market News, Stock Advice & Trading Tips [Editor’s note: “Why the Next Great Tech Bull Market Has Begun” was previously published in July 2022. And we’ve found one tech stock we think can rally 10X before the year’s end… In other words, investors who buy the top tech stocks today will make fortunes over the next 12 months.
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They’re still watching Netflix (NFLX), buying Apple (AAPL) products, and working with Microsoft (MSFT) software. And we’ve found one tech stock we think can rally 10X before the year’s end… In other words, investors who buy the top tech stocks today will make fortunes over the next 12 months. As they do, tech stocks will soar – and certain small tech stocks will soar 10X or more!
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19281.0
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2022-09-20 00:00:00 UTC
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Dow Movers: NKE, AAPL
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-nke-aapl
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nan
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In early trading on Tuesday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 0.1%. Year to date, Apple has lost about 12.9% of its value.
And the worst performing Dow component thus far on the day is Nike, trading down 4.0%. Nike is lower by about 38.3% looking at the year to date performance.
Two other components making moves today are Caterpillar, trading down 1.8%, and Boeing, trading down 0.3% on the day.
VIDEO: Dow Movers: NKE, AAPL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Dow Movers: NKE, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Tuesday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 0.1%. And the worst performing Dow component thus far on the day is Nike, trading down 4.0%.
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VIDEO: Dow Movers: NKE, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Tuesday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 0.1%. Year to date, Apple has lost about 12.9% of its value.
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VIDEO: Dow Movers: NKE, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Tuesday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 0.1%. And the worst performing Dow component thus far on the day is Nike, trading down 4.0%.
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VIDEO: Dow Movers: NKE, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Dow component thus far on the day is Nike, trading down 4.0%. Nike is lower by about 38.3% looking at the year to date performance.
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19282.0
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2022-09-20 00:00:00 UTC
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SPYG, FEVR: Big ETF Outflows
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AAPL
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https://www.nasdaq.com/articles/spyg-fevr%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 SPDR Portfolio S&P 500 Growth ETF, where 16,950,000 units were destroyed, or a 6.6% decrease week over week. Among the largest underlying components of SPYG, in morning trading today Apple is up about 0.1%, and Microsoft is lower by about 1.1%.
And on a percentage change basis, the ETF with the biggest outflow was the FEVR ETF, which lost 525,000 of its units, representing a 35.0% decline in outstanding units compared to the week prior.
VIDEO: SPYG, FEVR: 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 SPYG, in morning trading today Apple is up about 0.1%, and Microsoft is lower by about 1.1%. And on a percentage change basis, the ETF with the biggest outflow was the FEVR ETF, which lost 525,000 of its units, representing a 35.0% decline in outstanding units compared to the week prior. VIDEO: SPYG, FEVR: 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 SPDR Portfolio S&P 500 Growth ETF, where 16,950,000 units were destroyed, or a 6.6% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the FEVR ETF, which lost 525,000 of its units, representing a 35.0% decline in outstanding units compared to the week prior. VIDEO: SPYG, FEVR: 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 SPDR Portfolio S&P 500 Growth ETF, where 16,950,000 units were destroyed, or a 6.6% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the FEVR ETF, which lost 525,000 of its units, representing a 35.0% decline in outstanding units compared to the week prior. VIDEO: SPYG, FEVR: 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 SPDR Portfolio S&P 500 Growth ETF, where 16,950,000 units were destroyed, or a 6.6% decrease week over week. Among the largest underlying components of SPYG, in morning trading today Apple is up about 0.1%, and Microsoft is lower by about 1.1%. And on a percentage change basis, the ETF with the biggest outflow was the FEVR ETF, which lost 525,000 of its units, representing a 35.0% decline in outstanding units compared to the week prior.
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19283.0
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2022-09-20 00:00:00 UTC
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Apple to raise App Store prices in some countries in Europe, Asia
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AAPL
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https://www.nasdaq.com/articles/apple-to-raise-app-store-prices-in-some-countries-in-europe-asia
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nan
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Changes date, adds details, background on price increases
Sept 20 (Reuters) - Apple Inc AAPL.O said on Tuesday it will raise prices of apps and in-app purchases on its App Store from next month in all of the euro zone and some countries in Asia and South America.
The new prices, excluding auto-renewable subscriptions, will be effective as early as Oct. 5, Apple said in a blog post.
The U.S. tech giant periodically adjusts its prices in different regions and reduced prices for euro zone countries last year to adjust for currencies and taxes, dropping starting prices for many apps to 99 euro cents from 1.09 euros.
The latest price rise increases those starting prices to 1.19 euros.
A rapid rise in inflation, interest rates and energy prices this year has hammered the yen, the euro and most emerging economy currencies. The euro has dropped to two-decade lows this year and has been languishing around parity against the dollar for weeks.
Apart from euro zone countries, the price increases will hit Sweden and Poland in Europe; Japan, Malaysia, Pakistan, South Korea and Vietnam in Asia; and Chile in South America.
For some countries like Vietnam, the price increase was due to new regulations relating to collecting tax from consumers, Apple said.
Apple, which launched its latest generation of iPhones earlier this month, has been developing its services business to reduce dependency on its mainstay smartphones.
Revenue from Apple's services business, which includes the App Store, has been growing at a rapid pace in the last few years and now hovers around $20 billion per quarter.
(Reporting by Maria Ponnezhath in Bengaluru and Supantha Mukherjee in Stockholm; Editing by Rashmi Aich and Susan Fenton)
((Maria.Ponnezhath@thomsonreuters.com; +91 8061822749;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Changes date, adds details, background on price increases Sept 20 (Reuters) - Apple Inc AAPL.O said on Tuesday it will raise prices of apps and in-app purchases on its App Store from next month in all of the euro zone and some countries in Asia and South America. A rapid rise in inflation, interest rates and energy prices this year has hammered the yen, the euro and most emerging economy currencies. Apple, which launched its latest generation of iPhones earlier this month, has been developing its services business to reduce dependency on its mainstay smartphones.
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Changes date, adds details, background on price increases Sept 20 (Reuters) - Apple Inc AAPL.O said on Tuesday it will raise prices of apps and in-app purchases on its App Store from next month in all of the euro zone and some countries in Asia and South America. The U.S. tech giant periodically adjusts its prices in different regions and reduced prices for euro zone countries last year to adjust for currencies and taxes, dropping starting prices for many apps to 99 euro cents from 1.09 euros. The latest price rise increases those starting prices to 1.19 euros.
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Changes date, adds details, background on price increases Sept 20 (Reuters) - Apple Inc AAPL.O said on Tuesday it will raise prices of apps and in-app purchases on its App Store from next month in all of the euro zone and some countries in Asia and South America. The U.S. tech giant periodically adjusts its prices in different regions and reduced prices for euro zone countries last year to adjust for currencies and taxes, dropping starting prices for many apps to 99 euro cents from 1.09 euros. The latest price rise increases those starting prices to 1.19 euros.
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Changes date, adds details, background on price increases Sept 20 (Reuters) - Apple Inc AAPL.O said on Tuesday it will raise prices of apps and in-app purchases on its App Store from next month in all of the euro zone and some countries in Asia and South America. The U.S. tech giant periodically adjusts its prices in different regions and reduced prices for euro zone countries last year to adjust for currencies and taxes, dropping starting prices for many apps to 99 euro cents from 1.09 euros. The latest price rise increases those starting prices to 1.19 euros.
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2022-09-20 00:00:00 UTC
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US STOCKS-Wall Street set for lower open as focus turns to Fed
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-set-for-lower-open-as-focus-turns-to-fed
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nan
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nan
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By Devik Jain and Ankika Biswas
Sept 20 (Reuters) - Wall Street's main indexes were set to open lower on Tuesday as investors positioned themselves for new economic projections and another large interest rate hike by the Federal Reserve this week to quell decades-high inflation.
All the three major indexes ended a choppier session higher on Monday led by gains in beaten down industrial shares and some mega-cap technology and growth stocks, though trading volumes were light suggesting caution ahead of the start of the Fed's two-day policy meeting later on Tuesday.
"Traders are being extremely cautious ahead of the Fed announcement tomorrow and it's the indigestion of yields rising that's causing the market to be unsettled," said Peter Cardillo, chief market economist at Spartan Capital Securities LLC.
"We expect a 75-basis-point hike from the Fed and the market has already discounted that and so we are likely to see a mixed trading session as the day progresses."
The U.S. central bank is widely expected to hike rates by a third-straight 75 basis points on Wednesday, with markets also pricing in a 19% chance of a 100 bps increase and expect terminal rate at 4.48% by March 2023. FEDWATCH
Focus will also be on the updated economic projections and dot plot estimates for cues on policymakers' sense of the endpoint for rates and the outlooks for unemployment, inflation and economic growth.
"The key to tomorrow is going to be indications by the Fed chief as to what's the next possible move. The question is will 75 basis points be the norm for the next few meetings and that's what the market is basically worried about," Cardillo added.
The benchmark U.S. 10-year Treasury yield US10YT=RR hit 3.54%, its highest level since April 2011, in anticipation of the rate hike, while the closely watched yield curve between two-year and 10-year notes US2US10=TWEB inverted further. US/
An inversion in this part of the yield curve is viewed as a reliable indicator that a recession will follow in one to two years.
Shares of big U.S. banks slipped in premarket trading, while those of rate-sensitive growth companies such as Apple Inc AAPL.O, Tesla Inc TSLA.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O, Nvidia Corp NVDA.O and Meta Platforms Inc META.O dipped between 0.4% and 0.9%.
The benchmark S&P 500 index .SPX has lost 18.2% so far this year as investors fear aggressive policy tightening measures could tip the U.S. economy into a recession, with a recent dire outlook from delivery firm FedEx Corp FDX.N and an inverted U.S. Treasury yield curve adding to woes.
At 8:13 a.m. ET, Dow e-minis 1YMcv1 were down 153 points, or 0.49%, S&P 500 e-minis EScv1 were down 22.25 points, or 0.57%, and Nasdaq 100 e-minis NQcv1 were down 78.75 points, or 0.65%.
Ford Motor Co F.N slid 4.4% after the automaker said inflation-related supplier costs will run about $1 billion higher than expected in the current quarter and sees 40,000 to 45,000 vehicles in inventory due to lack of parts, delaying sales.
PayPal Holdings Inc PYPL.O fell 2.6% after Susquehanna Financial Group downgraded the fintech company's stock to "neutral" from "buy".
(Reporting by Devik Jain and Ankika Biswas in Bengaluru; Editing by Shounak Dasgupta)
((Devik.Jain@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of big U.S. banks slipped in premarket trading, while those of rate-sensitive growth companies such as Apple Inc AAPL.O, Tesla Inc TSLA.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O, Nvidia Corp NVDA.O and Meta Platforms Inc META.O dipped between 0.4% and 0.9%. By Devik Jain and Ankika Biswas Sept 20 (Reuters) - Wall Street's main indexes were set to open lower on Tuesday as investors positioned themselves for new economic projections and another large interest rate hike by the Federal Reserve this week to quell decades-high inflation. All the three major indexes ended a choppier session higher on Monday led by gains in beaten down industrial shares and some mega-cap technology and growth stocks, though trading volumes were light suggesting caution ahead of the start of the Fed's two-day policy meeting later on Tuesday.
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Shares of big U.S. banks slipped in premarket trading, while those of rate-sensitive growth companies such as Apple Inc AAPL.O, Tesla Inc TSLA.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O, Nvidia Corp NVDA.O and Meta Platforms Inc META.O dipped between 0.4% and 0.9%. By Devik Jain and Ankika Biswas Sept 20 (Reuters) - Wall Street's main indexes were set to open lower on Tuesday as investors positioned themselves for new economic projections and another large interest rate hike by the Federal Reserve this week to quell decades-high inflation. The benchmark S&P 500 index .SPX has lost 18.2% so far this year as investors fear aggressive policy tightening measures could tip the U.S. economy into a recession, with a recent dire outlook from delivery firm FedEx Corp FDX.N and an inverted U.S. Treasury yield curve adding to woes.
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Shares of big U.S. banks slipped in premarket trading, while those of rate-sensitive growth companies such as Apple Inc AAPL.O, Tesla Inc TSLA.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O, Nvidia Corp NVDA.O and Meta Platforms Inc META.O dipped between 0.4% and 0.9%. All the three major indexes ended a choppier session higher on Monday led by gains in beaten down industrial shares and some mega-cap technology and growth stocks, though trading volumes were light suggesting caution ahead of the start of the Fed's two-day policy meeting later on Tuesday. "Traders are being extremely cautious ahead of the Fed announcement tomorrow and it's the indigestion of yields rising that's causing the market to be unsettled," said Peter Cardillo, chief market economist at Spartan Capital Securities LLC.
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Shares of big U.S. banks slipped in premarket trading, while those of rate-sensitive growth companies such as Apple Inc AAPL.O, Tesla Inc TSLA.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O, Nvidia Corp NVDA.O and Meta Platforms Inc META.O dipped between 0.4% and 0.9%. By Devik Jain and Ankika Biswas Sept 20 (Reuters) - Wall Street's main indexes were set to open lower on Tuesday as investors positioned themselves for new economic projections and another large interest rate hike by the Federal Reserve this week to quell decades-high inflation. The question is will 75 basis points be the norm for the next few meetings and that's what the market is basically worried about," Cardillo added.
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19285.0
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2022-09-20 00:00:00 UTC
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Prediction: These Growth Stocks Will Be Worth $10 Billion by 2030
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AAPL
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https://www.nasdaq.com/articles/prediction%3A-these-growth-stocks-will-be-worth-%2410-billion-by-2030-0
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The stock market is having a bad year -- all investors know that. The technology sector has been hit particularly hard with some individual stocks shedding 90% of their value from their all-time highs. But let's hit pause on the last nine months and tune out the noise by looking at the long-term picture.
History is proof that the broader markets always recover to new highs given enough time. Even the Global Financial Crisis of 2008 -- where two major banks collapsed -- is now just a blip on the chart of the benchmark S&P 500 index. And we all witnessed how quickly the stock market bounced back during the current once-in-a-century pandemic.
Therefore, investors who are concerned about the recent downturn should select stocks with the potential to grow consistently over the long run. Here are three small tech stocks worth less than $10 billion now but could surpass that level (and then some) by the time 2030 comes around.
1. Zillow Group: Potential upside of 20%
Zillow Group (NASDAQ: Z)(NASDAQ: ZG) is bringing the real estate industry into the digital age, and the company is in the middle of a major transformation. Last year, it decided to shut down its direct buying (iBuying) segment, which was its main revenue driver. It turns out that purchasing thousands of homes and trying to flip them for a profit works great when the housing market is broadly rising, but it can result in catastrophic losses when it takes a dip -- in this case, it stung Zillow with about $881 million in losses during 2021.
Now, the company is expanding its suite of online real estate services and building a "housing super app" designed to offer end-to-end solutions for home buyers and sellers. Zillow estimates that the average home sold in the U.S. incurs about $17,000 in fees, stemming from closing services to mortgages. The company is only capturing about $4,100 of that at the moment, and its goal is to grow that figure because it's low-risk revenue with a much higher profit margin than its now-defunct iBuying business.
Overall, real estate service fees could be a $300 billion annual opportunity. Zillow's digital presence is already the largest in the industry, with 2.9 billion hits across all channels in the second quarter of 2022, from 234 million unique monthly users. Therefore, it's already in the best position to dominate. It will take time before the company can fill the revenue hole left by its iBuying segment, but it could generate $2 billion in 2023 and aims to build toward $5 billion in 2025.
Zillow is worth $8.3 billion right now, so if it reaches its 2025 sales estimate and continues to grow thereafter, it should breeze past a $10 billion valuation by 2030.
2. Duolingo: Potential upside of 156%
Duolingo (NASDAQ: DUOL) stock is down 5% in 2022. That would be a bad result in most other years, but it's a far smaller drop than the Nasdaq-100 tech index, which has shed 28% of its value. Duolingo is outperforming because its digital language education business is proving to be resilient in very challenging economic conditions.
The Duolingo mobile application has been downloaded more than half a billion times. It turns language learning into a gamified, engaging experience -- or in other words, the direct opposite of a typical classroom experience. Duolingo had 49.5 million monthly active users in the second quarter of 2022, of which 3.3 million were paid subscribers; the latter figure jumped 71% year over year.
It has become the highest-grossing app in the education category across both Apple's App Store and Alphabet's Play Store. The company thinks it could generate up to $367 million in revenue for the 2022 full year, and if it hits the mark, it will have grown the metric at a compound annual rate of 50% since 2020.
If that pace keeps up, it implies Duolingo's current valuation of $3.9 billion could soar far beyond $10 billion by 2030. In fact, even half that growth rate would comfortably get the job done.
3. C3.ai: Potential upside of 566%
Artificial intelligence (AI) is set to transform the corporate world, and so it's no surprise that C3.ai (NYSE: AI) has the most growth potential of this bunch. According to a report by McKinsey & Company, up to 70% of all companies will be using AI in some way by 2030, adding $13 trillion in output to the global economy.
C3.ai delivers AI applications to 228 business customers right now. It provides them with the foundations to implement the technology for a range of tasks, whether they're in manufacturing, financial services, or even oil and gas. In fact, fossil fuel giant Shell uses C3.ai to monitor 13,000 pieces of equipment, which alerts it to potential failures, saving both costs and potential environmental damage.
Such companies may not be able to develop AI in-house from scratch without a partner like C3.ai, whether it's for a lack of resources or the inability to attract technical talent.
If C3.ai's management can effectively capitalize on its AI leadership position, all the company's potential will be well within reach. The company is worth just $1.5 billion right now, yet it has over $900 million in cash and short-term investments on its balance sheet and expects to deliver $270 million in revenue for fiscal 2023 (ending April 30), so the market is placing very little value on the actual business amid the broader tech market sell-off. That's an opportunity because C3.ai predicts its addressable market could top $596 billion by 2025, so there is plenty of room for growth.
10 stocks we like better than Zillow Group (A shares)
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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), Apple, Zillow Group (A shares), and Zillow Group (C shares). The Motley Fool recommends C3.ai, Inc. 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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Now, the company is expanding its suite of online real estate services and building a "housing super app" designed to offer end-to-end solutions for home buyers and sellers. The company is only capturing about $4,100 of that at the moment, and its goal is to grow that figure because it's low-risk revenue with a much higher profit margin than its now-defunct iBuying business. The company thinks it could generate up to $367 million in revenue for the 2022 full year, and if it hits the mark, it will have grown the metric at a compound annual rate of 50% since 2020.
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Zillow Group: Potential upside of 20% Zillow Group (NASDAQ: Z)(NASDAQ: ZG) is bringing the real estate industry into the digital age, and the company is in the middle of a major transformation. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Zillow Group (A shares), and Zillow Group (C shares). The Motley Fool recommends C3.ai, Inc. and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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Zillow Group: Potential upside of 20% Zillow Group (NASDAQ: Z)(NASDAQ: ZG) is bringing the real estate industry into the digital age, and the company is in the middle of a major transformation. The company is worth just $1.5 billion right now, yet it has over $900 million in cash and short-term investments on its balance sheet and expects to deliver $270 million in revenue for fiscal 2023 (ending April 30), so the market is placing very little value on the actual business amid the broader tech market sell-off. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Zillow Group (A shares), and Zillow Group (C shares).
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The stock market is having a bad year -- all investors know that. The Duolingo mobile application has been downloaded more than half a billion times. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Zillow Group (A shares), and Zillow Group (C shares).
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19286.0
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2022-09-20 00:00:00 UTC
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Stock Market News for Sep 20, 2022
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-sep-20-2022
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nan
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nan
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U.S. stocks closed higher on Monday in a volatile trading session ahead of the Fed’s two-day policy meeting that begins on Tuesday. Investors are bracing for another steep rate hike this week. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.6% or 197.26 points to close at 31,019.68 points.
The S&P 500 advanced 0.7% or 26.56 points to finish at 3,899.89 points. Consumer discretionary and materials stocks were the biggest gainers, while energy and real estate stocks were the worst performers.
The Consumer Discretionary Select Sector SPDR (XLY) gained 1.2%, while the Materials Select Sector SPDR (XLB) added 1.1%. The Energy Select Sector SPDR (XLE) and the Real Estate Select Sector SPDR (XLRE) lost 1.1% and 1%, respectively. Eight of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq climbed 0.8% or 86.62 points to end at 11,535.02 points.
The fear-gauge CBOE Volatility Index (VIX) was down 2.05% to 25.76. Only 9.58 million shares were traded on Monday, recording the sixth-lightest trading session of the year.
Focus Shifts Toward Fed Policy Meeting
Stocks swung between gains and losses throughout Monday in a volatile trading session as investors tried to position themselves ahead of the Fed’s all-important policy meeting. Investors now are assured of a steep rate hike, which has been denting their confidence as they now fear a global economic slowdown is almost unavoidable.
The Fed has already hiked interest rates by 225 basis points this year and is expected to raise rates by another 75 basis points in its two-day policy meeting that begins on Tuesday. A brief hope of the Fed going for a not-so-steep rate hike anymore had given investors’ confidence a boost during the summer but that was short-lived.
Fed Chair Jerome Powell had maintained that the Fed will continue with its steep rate hike policy so long it doesn’t get full control over soaring inflation. This dampened the expectation of a less-aggressive rate hike.
Fed to Stick to Aggressive Rate Hikes
Last week, the August CPI index reading showed inflation increased higher than expected which now gives the Fed the cover to go for another steep rate hike this week. Investors have been feeling jittery since then.
On Monday, stocks wavered between gains and losses, with the Dow down 263 points at one time of the day. The S&P 500 and Nasdaq too were at one point down more than 0.9% each.
Fears of another 75-basis point interest rate hike this week pushed the 10-year Treasury yield to cross 3.51% to hit its highest level in 11 years.
Eight of the 11 S&P 500 sectors ended in the green on Monday. Financial stocks were big gainers ahead of Fed’s policy meeting. Shares of Bank of America Corporation BAC rose 1.7%, while The Goldman Sachs Group, Inc. GS and Citigroup Inc. C advanced 0.8% and 0.3%, respectively. Bank of America has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Also, industrials and tech stocks gained on Monday. Shares of Apple Inc. AAPL gained 2.5%, while Meta Platforms, Inc. META advanced 1.2%.
No major economic data was released on Monday.
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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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Shares of Apple Inc. AAPL gained 2.5%, while Meta Platforms, Inc. META advanced 1.2%. Apple Inc. (AAPL): Free Stock Analysis Report U.S. stocks closed higher on Monday in a volatile trading session ahead of the Fed’s two-day policy meeting that begins on Tuesday.
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Shares of Apple Inc. AAPL gained 2.5%, while Meta Platforms, Inc. META advanced 1.2%. Apple Inc. (AAPL): Free Stock Analysis Report U.S. stocks closed higher on Monday in a volatile trading session ahead of the Fed’s two-day policy meeting that begins on Tuesday.
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Shares of Apple Inc. AAPL gained 2.5%, while Meta Platforms, Inc. META advanced 1.2%. Apple Inc. (AAPL): Free Stock Analysis Report Focus Shifts Toward Fed Policy Meeting Stocks swung between gains and losses throughout Monday in a volatile trading session as investors tried to position themselves ahead of the Fed’s all-important policy meeting.
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Shares of Apple Inc. AAPL gained 2.5%, while Meta Platforms, Inc. META advanced 1.2%. Apple Inc. (AAPL): Free Stock Analysis Report Eight of the 11 sectors of the benchmark index ended in positive territory.
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2022-09-20 00:00:00 UTC
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The Zacks Analyst Blog Highlights Apple, Amazon, AbbVie, Philip Morris International and BlackRock
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AAPL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-apple-amazon-abbvie-philip-morris-international-and
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For Immediate Release
Chicago, IL – September 20, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple Inc. AAPL, Amazon.com, Inc. AMZN, AbbVie Inc. ABBV, Philip Morris International Inc. PM and BlackRock, Inc. BLK.
Here are highlights from Monday’s Analyst Blog:
Top Analyst Reports for Apple, Amazon and AbbVie
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc., Amazon.com, Inc. and AbbVie Inc. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Apple’s shares have gained +6.0% over the past year, roughly in line against the Zacks Computer - Mini computers industry’s gain of +6.4%. The company is benefiting from continued momentum in the Services and robust performance from iPhone, Mac, Wearables and an expanding App Store ecosystem.
The latest iPhone 14 Pro Max model is witnessing high pre-order which is expected to drive top-line growth. The Zacks analysts expect Apple’s fiscal 2022 revenues to increase 7.2% year over year with Services growing 14.1%.
However, Apple did not provide revenue guidance for the fourth quarter of fiscal 2022. Apple expects year-over-year revenue growth to accelerate during the fiscal fourth quarter on a sequential basis, despite approximately 600 basis points of unfavorable year-over-year impact from forex. Services revenue growth is expected to be lower than the June quarter due to challenging macroeconomic conditions and unfavorable forex.
(You can read the full research report on Apple here >>>)
Amazon.com shares have declined -26.7% over the past year against the Zacks Internet - Commerce industry’s decline of -34.7%. The company’s growing expenses associated with supply-chain constraints and labor supply shortages remain concern. Nevertheless, Amazon is gaining on solid Prime momentum owing to ultrafast delivery services and a strong content portfolio. Further, strengthening relationship with third-party sellers is a positive.
Also, growing momentum across Amazon Music is contributing well. Additionally, strong adoption rates of AWS is aiding the company’s cloud dominance. An expanding AWS services portfolio is continuously helping Amazon in gaining further momentum among the customers.
Further, robust Alexa skills and expanding smart home products portfolio are positives. The company’s strong global presence and solid momentum among the small and medium businesses remain tailwinds.
(You can read the full research report on Amazon.com here >>>)
AbbVie shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+39.2% vs. +11.0%). The company has successfully expanded the labels of its cancer drugs, Imbruvica and Venclexta. It has several new drugs in its portfolio, which have the potential to drive revenues once Humira loses U.S. exclusivity in 2023.
Skyrizi and Rinvoq are going strong bolstered by approval in new indications. It has an impressive late-stage pipeline and several early/mid-stage candidates that have blockbuster potential. Allergan’s acquisition has diversified AbbVie’s revenue base into new therapeutic areas, enhancing its long-term growth potential.
However, there are concerns about long-term sales growth once Humira generics enter the U.S. market. Increasing competition from newer therapies is hurting Imbruvica’s sales
(You can read the full research report on AbbVie here >>>)
Other noteworthy reports we are featuring today include Philip Morris International Inc., and BlackRock, Inc.
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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.
Special Report: The Top 5 IPOs for Your Portfolio
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Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
BlackRock, Inc. (BLK): Free Stock Analysis Report
Philip Morris International Inc. (PM): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include: Apple Inc. AAPL, Amazon.com, Inc. AMZN, AbbVie Inc. ABBV, Philip Morris International Inc. PM and BlackRock, Inc. BLK. Apple Inc. (AAPL): Free Stock Analysis Report 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.
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Stocks recently featured in the blog include: Apple Inc. AAPL, Amazon.com, Inc. AMZN, AbbVie Inc. ABBV, Philip Morris International Inc. PM and BlackRock, Inc. BLK. Apple Inc. (AAPL): Free Stock Analysis Report Here are highlights from Monday’s Analyst Blog: Top Analyst Reports for Apple, Amazon and AbbVie The Zacks Research Daily presents the best research output of our analyst team.
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Stocks recently featured in the blog include: Apple Inc. AAPL, Amazon.com, Inc. AMZN, AbbVie Inc. ABBV, Philip Morris International Inc. PM and BlackRock, Inc. BLK. Apple Inc. (AAPL): Free Stock Analysis Report Here are highlights from Monday’s Analyst Blog: Top Analyst Reports for Apple, Amazon and AbbVie The Zacks Research Daily presents the best research output of our analyst team.
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Stocks recently featured in the blog include: Apple Inc. AAPL, Amazon.com, Inc. AMZN, AbbVie Inc. ABBV, Philip Morris International Inc. PM and BlackRock, Inc. BLK. Apple Inc. (AAPL): Free Stock Analysis Report Today's Research Daily features new research reports on 16 major stocks, including Apple Inc., Amazon.com, Inc. and AbbVie Inc.
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2022-09-20 00:00:00 UTC
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Should WisdomTree U.S. LargeCap ETF (EPS) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-wisdomtree-u.s.-largecap-etf-eps-be-on-your-investing-radar-4
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Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the WisdomTree U.S. LargeCap ETF (EPS) is a passively managed exchange traded fund launched on 02/23/2007.
The fund is sponsored by Wisdomtree. It has amassed assets over $612.03 million, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
While value stocks have lower than average price-to-earnings and price-to-book ratios, they also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.08%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.87%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 24.90% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.66% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc-Cl A (GOOGL).
The top 10 holdings account for about 28.36% of total assets under management.
Performance and Risk
EPS seeks to match the performance of the WisdomTree U.S. Earnings 500 Index before fees and expenses. The WisdomTree U.S. LargeCap Index is a fundamentally weighted index that measures the performance of earnings-generating companies within the large-capitalization segment of the U.S. Stock Market.
The ETF has lost about -16.69% so far this year and is down about -9.91% in the last one year (as of 09/20/2022). In the past 52-week period, it has traded between $39.74 and $50.92.
The ETF has a beta of 1 and standard deviation of 24.11% for the trailing three-year period, making it a medium risk choice in the space. With about 503 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. LargeCap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, EPS is a reasonable option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $51.31 billion in assets, Vanguard Value ETF has $97.38 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.66% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc-Cl A (GOOGL). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the WisdomTree U.S. LargeCap ETF (EPS) is a passively managed exchange traded fund launched on 02/23/2007.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.66% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc-Cl A (GOOGL). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the WisdomTree U.S. LargeCap ETF (EPS) is a passively managed exchange traded fund launched on 02/23/2007.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.66% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc-Cl A (GOOGL). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives WisdomTree U.S. LargeCap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.66% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc-Cl A (GOOGL). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the WisdomTree U.S. LargeCap ETF (EPS) is a passively managed exchange traded fund launched on 02/23/2007.
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19289.0
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2022-09-20 00:00:00 UTC
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Why Apple's iPhone 14 Could Be a Blockbuster
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AAPL
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https://www.nasdaq.com/articles/why-apples-iphone-14-could-be-a-blockbuster
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Apple (NASDAQ: AAPL) unveiled its latest iPhone lineup earlier this month, and it seems consumers are already warming up to the company's new devices, despite the pall of gloom over the global smartphone market.
Reports from various online publications suggest that the Apple Store application and website couldn't handle the volume of preorders, as customers faced a wide range of problems. This indicates that the website and app may have received more traffic than Apple had anticipated.
Now it appears the delivery times for certain iPhone 14 models are getting delayed. The iPhone 14 Pro and Pro Max models now have estimated delivery dates in the U.S. of Oct. 17 to Oct. 24 and Oct. 24 to Oct. 31, respectively. According to Apple's press release announcing the launch of these models, they were supposed to be available from Sept. 16 in the U.S. The vanilla iPhone 14 and its Plus version, on the other hand, seem to be on schedule, as their estimated delivery times match their availability dates of Sept. 16 and Oct. 7, respectively.
This indicates that the higher-priced iPhone 14 Pro and Pro Max models, which start at $999 and $1,099, respectively, in the U.S., are in solid demand. That may seem a tad surprising given that smartphone shipments are falling in 2022 amid high inflation. However, the reportedly solid demand for the Pro and Pro Max models suggests that the new iPhones could set the sales charts on fire.
The iPhone 14 can get the cash registers ringing for Apple
Supply chain surveys indicate that the demand for Apple's more expensive iPhone 14 models is going to be strong this year. Apple analyst Ming-Chi Kuo points out that the two iPhone 14 Pro models account for 85% of the orders in China. Meanwhile, a survey of 9to5Mac readers reveals that 92% of the respondents are reportedly going to purchase the more expensive models.
What's more, the iPhone 14 Pro and the Pro Max models are also witnessing robust demand in price-sensitive markets such as India. The 128-gigabyte (GB) iPhone 14 Pro has a delivery window of Oct. 10 to Oct. 15 in India. The device is supposed to be available in India starting Sept. 16.
All of this indicates that Apple is likely to enjoy strong pricing power once again thanks to its updated models. The average selling price (ASP) of an iPhone increased an estimated 14% last year to $825, according to Counterpoint Research, thanks to the robust demand for the iPhone 13 models. The initial demand trends for the iPhone 14 models indicate that Apple may be able to maintain -- or even increase -- the ASP this year.
At the same time, Apple reportedly expects to sell more iPhone 14 units this year than the number of iPhone 13 models it sold in 2021. Supply chain gossip suggests that Apple told suppliers it will be making 95 million iPhone 14 units this year. That would be a nice bump over last year's estimated iPhone 13 sales of 80 million units.
Throw in the healthy demand that's being reported for the iPhone 14 Pro and the Pro Max models, and Apple seems to be on track to increase its iPhone revenue during the upcoming holiday season. That could give the company's top line a nice boost.
Impressive growth could be in the cards once again
Apple reported an all-time revenue record of $123.9 billion in its fiscal 2022 first quarter ended on Dec. 25, 2021. That was the first quarter following the launch of the iPhone 13 models.
The company shipped an estimated 85 million iPhones during that quarter, and the product generated $71.6 billion in revenue for Apple during last year's holiday season. If we assume that Apple manages to maintain its ASP of $825 in the December quarter this year and ships 95 million units, the iPhone could generate over $78 billion in revenue for the company.
So the tech giant may have another blockbuster holiday season driven by its biggest product, which accounted for nearly half of its top line last quarter. Moreover, solid sales of the iPhone 14 lineup could rub off positively on Apple's stock price. So investors looking to buy a tech stock right now may want to buy Apple before the holiday season arrives, as it is trading at 24 times trailing earnings -- a discount to its 2021 earnings multiple of 31x -- before it heads higher on the back of a potentially successful iPhone 14.
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Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) unveiled its latest iPhone lineup earlier this month, and it seems consumers are already warming up to the company's new devices, despite the pall of gloom over the global smartphone market. Reports from various online publications suggest that the Apple Store application and website couldn't handle the volume of preorders, as customers faced a wide range of problems. If we assume that Apple manages to maintain its ASP of $825 in the December quarter this year and ships 95 million units, the iPhone could generate over $78 billion in revenue for the company.
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Apple (NASDAQ: AAPL) unveiled its latest iPhone lineup earlier this month, and it seems consumers are already warming up to the company's new devices, despite the pall of gloom over the global smartphone market. The iPhone 14 Pro and Pro Max models now have estimated delivery dates in the U.S. of Oct. 17 to Oct. 24 and Oct. 24 to Oct. 31, respectively. The iPhone 14 can get the cash registers ringing for Apple Supply chain surveys indicate that the demand for Apple's more expensive iPhone 14 models is going to be strong this year.
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Apple (NASDAQ: AAPL) unveiled its latest iPhone lineup earlier this month, and it seems consumers are already warming up to the company's new devices, despite the pall of gloom over the global smartphone market. The iPhone 14 can get the cash registers ringing for Apple Supply chain surveys indicate that the demand for Apple's more expensive iPhone 14 models is going to be strong this year. At the same time, Apple reportedly expects to sell more iPhone 14 units this year than the number of iPhone 13 models it sold in 2021.
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Apple (NASDAQ: AAPL) unveiled its latest iPhone lineup earlier this month, and it seems consumers are already warming up to the company's new devices, despite the pall of gloom over the global smartphone market. The average selling price (ASP) of an iPhone increased an estimated 14% last year to $825, according to Counterpoint Research, thanks to the robust demand for the iPhone 13 models. Moreover, solid sales of the iPhone 14 lineup could rub off positively on Apple's stock price.
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19290.0
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2022-09-19 00:00:00 UTC
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Samsung climate inertia is by-product of Seoul's
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AAPL
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https://www.nasdaq.com/articles/samsung-climate-inertia-is-by-product-of-seouls
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nan
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Reuters
Reuters
HONG KONG (Reuters Breakingviews) - Seoul's foot-dragging on climate change is holding back Korea Inc. Last week the country's top conglomerate, Samsung Electronics, unveiled an underwhelming net-zero carbon emissions target. Blame South Korea's power-market monopoly and regressive renewables policies.
The world's largest chip and mobile-phone maker lags on decarbonisation. Apple, both a rival and a customer, intends to achieve carbon neutrality for its supply chain and products by 2030; Japan's Sony and TSMC in Taiwan recently committed to the same goal by 2040 and 2050 respectively. The $274 billion South Korean group is only targeting emissions from its own operations - and by 2050, a decade later than Intel's similar pledge.
It's not entirely Samsung's fault. Its semiconductor and components business accounted for 90% of the company’s 17.4 million tonnes of greenhouse gases emitted last year. Most of that is probably from electricity for factories in South Korea, where renewable power is scarce. Solar and wind generated just 26.9 terawatt hours of electricity in 2021, a paltry 4.7% of the total and roughly equivalent to Samsung’s needs.
One culprit is government-backed Korea Electric Power Corporation, or Kepco, which dominates power generation, transmission and distribution. Despite years of shareholder pressure, the $9 billion utility remains addicted to fossil fuels, which made up over 70% of its total capacity as of June. Some of its power-generating units are even slashing renewable investments, the Korea Times reports, as first-half losses at Kepco balloon to a whopping $7.7 billion.
The government this year started allowing firms to buy from renewable-energy producers via direct power purchase agreements. Cutting out Kepco is a good step, but companies still must pay the utility incidental and network costs; these can total as much as 45% of current electricity prices, according to environmental group Solutions for Our Climate. Red tape around securing renewable project approvals has also pushed up prices.
As the country's top exporter, Samsung should be in strong position to lobby for change. The company warned that if it does not meet its corporate customers' demands of using 100% renewable energy, some 25.8 trillion won ($18.5 billion), or a fifth of business-to-business sales, based on 2020 results, are at risk. Yet President Yoon Suk-yeol's administration plans to lower its renewable-energy target for 2030, favouring nuclear power instead. Samsung's corporate heft will be put to test.
Follow @mak_robyn https://twitter.com/mak_robyn on Twitter
CONTEXT NEWS
South Korea's Samsung Electronics on Sept. 15 announced a new environmental strategy that includes a commitment to achieve net-zero carbon emissions in its own operations by 2050. As part of the initiative, it will invest over 7 trillion won ($5 billion) by 2030 in technology that it hopes, for example, will filter out greenhouse gases and capture carbon dioxide generated during chip production.
The company has also joined RE100, a group of global corporations including Apple, Intel and TSMC that are committed to using 100% renewable energy across their own operations.
Separately, South Korea's government wants to lower its renewable energy target for 2030, according to a draft electricity demand and supply plan from the Ministry of Trade, Industry and Energy on Aug. 30. Renewable energy will account for 21.5% of generation capacity by 2030, down from the previous target of 30.2%.
(Editing by Antony Currie and Katrina Hamlin)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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HONG KONG (Reuters Breakingviews) - Seoul's foot-dragging on climate change is holding back Korea Inc. Last week the country's top conglomerate, Samsung Electronics, unveiled an underwhelming net-zero carbon emissions target. Cutting out Kepco is a good step, but companies still must pay the utility incidental and network costs; these can total as much as 45% of current electricity prices, according to environmental group Solutions for Our Climate. As part of the initiative, it will invest over 7 trillion won ($5 billion) by 2030 in technology that it hopes, for example, will filter out greenhouse gases and capture carbon dioxide generated during chip production.
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HONG KONG (Reuters Breakingviews) - Seoul's foot-dragging on climate change is holding back Korea Inc. Last week the country's top conglomerate, Samsung Electronics, unveiled an underwhelming net-zero carbon emissions target. The company warned that if it does not meet its corporate customers' demands of using 100% renewable energy, some 25.8 trillion won ($18.5 billion), or a fifth of business-to-business sales, based on 2020 results, are at risk. The company has also joined RE100, a group of global corporations including Apple, Intel and TSMC that are committed to using 100% renewable energy across their own operations.
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HONG KONG (Reuters Breakingviews) - Seoul's foot-dragging on climate change is holding back Korea Inc. Last week the country's top conglomerate, Samsung Electronics, unveiled an underwhelming net-zero carbon emissions target. South Korea's Samsung Electronics on Sept. 15 announced a new environmental strategy that includes a commitment to achieve net-zero carbon emissions in its own operations by 2050. Separately, South Korea's government wants to lower its renewable energy target for 2030, according to a draft electricity demand and supply plan from the Ministry of Trade, Industry and Energy on Aug. 30.
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Most of that is probably from electricity for factories in South Korea, where renewable power is scarce. South Korea's Samsung Electronics on Sept. 15 announced a new environmental strategy that includes a commitment to achieve net-zero carbon emissions in its own operations by 2050. The company has also joined RE100, a group of global corporations including Apple, Intel and TSMC that are committed to using 100% renewable energy across their own operations.
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19291.0
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2022-09-19 00:00:00 UTC
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Apple to hike App Store prices in several countries from Oct
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AAPL
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https://www.nasdaq.com/articles/apple-to-hike-app-store-prices-in-several-countries-from-oct
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nan
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Sept 19 (Reuters) - Apple Inc AAPL.O said on Monday prices of apps and in-app purchases on its App Store will increase in several countries including Japan, Malaysia and all territories that use the euro currency, from next month.
The new prices, excluding auto-renewable subscriptions, will be effective as early as Oct. 5, Apple said in a blog post.
These changes will also reflect new regulations for Apple in Vietnam to collect and remit applicable taxes, being value added tax (VAT) and corporate income tax (CIT) at 5% rates respectively, the company added.
(Reporting by Maria Ponnezhath in Bengaluru; Editing by Rashmi Aich)
((Maria.Ponnezhath@thomsonreuters.com; +91 8061822749;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Sept 19 (Reuters) - Apple Inc AAPL.O said on Monday prices of apps and in-app purchases on its App Store will increase in several countries including Japan, Malaysia and all territories that use the euro currency, from next month. The new prices, excluding auto-renewable subscriptions, will be effective as early as Oct. 5, Apple said in a blog post. (Reporting by Maria Ponnezhath in Bengaluru; Editing by Rashmi Aich) ((Maria.Ponnezhath@thomsonreuters.com; +91 8061822749;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Sept 19 (Reuters) - Apple Inc AAPL.O said on Monday prices of apps and in-app purchases on its App Store will increase in several countries including Japan, Malaysia and all territories that use the euro currency, from next month. These changes will also reflect new regulations for Apple in Vietnam to collect and remit applicable taxes, being value added tax (VAT) and corporate income tax (CIT) at 5% rates respectively, the company added. (Reporting by Maria Ponnezhath in Bengaluru; Editing by Rashmi Aich) ((Maria.Ponnezhath@thomsonreuters.com; +91 8061822749;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Sept 19 (Reuters) - Apple Inc AAPL.O said on Monday prices of apps and in-app purchases on its App Store will increase in several countries including Japan, Malaysia and all territories that use the euro currency, from next month. These changes will also reflect new regulations for Apple in Vietnam to collect and remit applicable taxes, being value added tax (VAT) and corporate income tax (CIT) at 5% rates respectively, the company added. (Reporting by Maria Ponnezhath in Bengaluru; Editing by Rashmi Aich) ((Maria.Ponnezhath@thomsonreuters.com; +91 8061822749;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Sept 19 (Reuters) - Apple Inc AAPL.O said on Monday prices of apps and in-app purchases on its App Store will increase in several countries including Japan, Malaysia and all territories that use the euro currency, from next month. The new prices, excluding auto-renewable subscriptions, will be effective as early as Oct. 5, Apple said in a blog post. These changes will also reflect new regulations for Apple in Vietnam to collect and remit applicable taxes, being value added tax (VAT) and corporate income tax (CIT) at 5% rates respectively, the company added.
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19292.0
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2022-09-19 00:00:00 UTC
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US STOCKS-Wall Street ends choppy session higher with focus firmly on Fed
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-ends-choppy-session-higher-with-focus-firmly-on-fed
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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
All eyes on Fed policy decision on Wednesday
Traders price in small chance of 100 bps rate hike
Take Two's GTA VI gameplay footage leaked online
Knowbe4 jumps on take-private offer
Indexes up: Dow 0.64%, S&P 0.69%, Nasdaq 0.76%
Adds closing prices
By David French
Sept 19 (Reuters) - Wall Street's main indexes ended a seesaw session higher on Monday, as investors turned their attention to this week's policy meeting at the Federal Reserve and how aggressively it will hike interest rates.
Even more so than the Ukraine war or corporate earnings, the actions of the U.S. central bank are driving market sentiment as traders try to position themselves for a rising interest rate environment.
The S&P 500 .SPX and the Nasdaq .IXIC rebounded from logging their worst weekly percentage drop since June on Friday, as markets fully priced in at least a 75 basis point rise in rates at the end of Fed's Sept. 20-21 policy meeting, with Fed funds futures showing a 15% chance of a whopping 100 bps increase. FEDWATCH
Unexpectedly hot August inflation data last week also raised bets on increased rate hikes down the road, with the terminal rate for U.S. fed funds now at 4.46%.
"This is all about what's going to happen on Wednesday, and what comes out of the Fed's hands on Wednesday, so I think people are just going to wait and see until then," said Josh Markman, partner at Bel Air Investment Advisors.
"We had a poor print when the CPI came in, so the Fed - who is behind the 8-ball - is now trying to get ahead of the curve and curb inflation, and that (awareness) is driving equity markets."
Reflecting the caution for new bets ahead of the Fed meeting, just 9.58 million shares traded on U.S. exchanges on Monday, the sixth lightest day for trading volume this year.
Focus will also be on new economic projections, due to be published alongside the Fed's policy statement at 2 p.m. ET (1800 GMT) on Wednesday.
Worries of Fed tightening have dragged the S&P 500 down 18.2% this year, with a recent dire earnings report from delivery firm FedEx Corp FDX.N, an inverted U.S. Treasury yield curve and warnings from the World Bank and the IMF about an impending global economic slowdown adding to the woes.
Goldman Sachs cut its forecast for 2023 U.S. GDP late on Friday as it projects a more aggressive Fed and sees that pushing the jobless rate higher than it previously expected.
"The Fed will continue to plough along, we'll get 75 (bps) on Wednesday, but what comes next and whether they are going to pause or not after Wednesday, that is going to be the interesting part," said Bel Air's Markman.
The Dow Jones Industrial Average .DJI rose 197.26 points, or 0.64%, to 31,019.68, the S&P 500 .SPX gained 26.56 points, or 0.69%, to 3,899.89 and the Nasdaq Composite .IXIC added 86.62 points, or 0.76%, to 11,535.02.
A majority of the 11 S&P 500 sectors rose. One exception was healthcare .SPXHC, down 0.6% as it was weighed by a fall in shares of vaccine maker Moderna Inc MRNA.O a day after President Joe Biden said in a CBS interview that "the pandemic is over".
Industrial stocks .SPLRCI rebounded 1.4% after a sharp drop on Friday, while banks .SPXBK gained 1.9%. Tech heavyweights Apple Inc AAPL.O and Tesla Inc TSLA.O rose 2.5% and 1.9%, respectively, to provide the biggest boost to the S&P 500 and the Nasdaq.
Take-Two Interactive Software Inc TTWO.O closed up 0.7%, having recovered from a slump earlier in the day caused by confirmation that a hacker had leaked the early footage of Grand Theft Auto VI, the next installment of the best-selling videogame.
Meanwhile, Knowbe4 Inc KNBE.O jumped 28.2% to $22.17, its highest close since May 4, after the cybersecurity firm said that Vista Equity Partners had offered to take it private for $24 per share, valuing the company at $4.22 billion.
The S&P 500 posted one new 52-week high and 28 new lows; the Nasdaq Composite recorded 29 new highs and 378 new lows.
(Reporting by Devik Jain and Shreyashi Sanyal in Bengaluru and David French in New York; Editing by Shounak Dasgupta, Anil D'Silva and Lisa Shumaker)
((Devik.Jain@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 heavyweights Apple Inc AAPL.O and Tesla Inc TSLA.O rose 2.5% and 1.9%, respectively, to provide the biggest boost to the S&P 500 and the Nasdaq. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window All eyes on Fed policy decision on Wednesday Traders price in small chance of 100 bps rate hike Take Two's GTA VI gameplay footage leaked online Knowbe4 jumps on take-private offer Indexes up: Dow 0.64%, S&P 0.69%, Nasdaq 0.76% Adds closing prices By David French Sept 19 (Reuters) - Wall Street's main indexes ended a seesaw session higher on Monday, as investors turned their attention to this week's policy meeting at the Federal Reserve and how aggressively it will hike interest rates. Worries of Fed tightening have dragged the S&P 500 down 18.2% this year, with a recent dire earnings report from delivery firm FedEx Corp FDX.N, an inverted U.S. Treasury yield curve and warnings from the World Bank and the IMF about an impending global economic slowdown adding to the woes.
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Tech heavyweights Apple Inc AAPL.O and Tesla Inc TSLA.O rose 2.5% and 1.9%, respectively, to provide the biggest boost to the S&P 500 and the Nasdaq. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window All eyes on Fed policy decision on Wednesday Traders price in small chance of 100 bps rate hike Take Two's GTA VI gameplay footage leaked online Knowbe4 jumps on take-private offer Indexes up: Dow 0.64%, S&P 0.69%, Nasdaq 0.76% Adds closing prices By David French Sept 19 (Reuters) - Wall Street's main indexes ended a seesaw session higher on Monday, as investors turned their attention to this week's policy meeting at the Federal Reserve and how aggressively it will hike interest rates. The S&P 500 .SPX and the Nasdaq .IXIC rebounded from logging their worst weekly percentage drop since June on Friday, as markets fully priced in at least a 75 basis point rise in rates at the end of Fed's Sept. 20-21 policy meeting, with Fed funds futures showing a 15% chance of a whopping 100 bps increase.
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Tech heavyweights Apple Inc AAPL.O and Tesla Inc TSLA.O rose 2.5% and 1.9%, respectively, to provide the biggest boost to the S&P 500 and the Nasdaq. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window All eyes on Fed policy decision on Wednesday Traders price in small chance of 100 bps rate hike Take Two's GTA VI gameplay footage leaked online Knowbe4 jumps on take-private offer Indexes up: Dow 0.64%, S&P 0.69%, Nasdaq 0.76% Adds closing prices By David French Sept 19 (Reuters) - Wall Street's main indexes ended a seesaw session higher on Monday, as investors turned their attention to this week's policy meeting at the Federal Reserve and how aggressively it will hike interest rates. The S&P 500 .SPX and the Nasdaq .IXIC rebounded from logging their worst weekly percentage drop since June on Friday, as markets fully priced in at least a 75 basis point rise in rates at the end of Fed's Sept. 20-21 policy meeting, with Fed funds futures showing a 15% chance of a whopping 100 bps increase.
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Tech heavyweights Apple Inc AAPL.O and Tesla Inc TSLA.O rose 2.5% and 1.9%, respectively, to provide the biggest boost to the S&P 500 and the Nasdaq. Even more so than the Ukraine war or corporate earnings, the actions of the U.S. central bank are driving market sentiment as traders try to position themselves for a rising interest rate environment. The S&P 500 .SPX and the Nasdaq .IXIC rebounded from logging their worst weekly percentage drop since June on Friday, as markets fully priced in at least a 75 basis point rise in rates at the end of Fed's Sept. 20-21 policy meeting, with Fed funds futures showing a 15% chance of a whopping 100 bps increase.
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19293.0
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2022-09-19 00:00:00 UTC
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Top Analyst Reports for Apple, Amazon.com & AbbVie
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AAPL
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https://www.nasdaq.com/articles/top-analyst-reports-for-apple-amazon.com-abbvie
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nan
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nan
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Monday, September 19, 2022
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Amazon.com, Inc. (AMZN) and AbbVie Inc. (ABBV). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Apple’s shares have gained +6.0% over the past year, roughly in line against the Zacks Computer - Mini computers industry’s gain of +6.4%. The company is benefiting from continued momentum in the Services and robust performance from iPhone, Mac, Wearables and an expanding App Store ecosystem.
The latest iPhone 14 Pro Max model is witnessing high pre-order which is expected to drive top-line growth. The Zacks analysts expect Apple’s fiscal 2022 revenues to increase 7.2% year over year with Services growing 14.1%.
However, Apple did not provide revenue guidance for the fourth quarter of fiscal 2022. Apple expects year-over-year revenue growth to accelerate during the fiscal fourth quarter on a sequential basis, despite approximately 600 basis points of unfavorable year-over-year impact from forex. Services revenue growth is expected to be lower than the June quarter due to challenging macroeconomic conditions and unfavorable forex.
(You can read the full research report on Apple here >>>)
Amazon.com shares have declined -26.7% over the past year against the Zacks Internet - Commerce industry’s decline of -34.7%. The company’s growing expenses associated with supply-chain constraints and labor supply shortages remain concern. Nevertheless, Amazon is gaining on solid Prime momentum owing to ultrafast delivery services and a strong content portfolio. Further, strengthening relationship with third-party sellers is a positive.
Also, growing momentum across Amazon Music is contributing well. Additionally, strong adoption rates of AWS is aiding the company’s cloud dominance. An expanding AWS services portfolio is continuously helping Amazon in gaining further momentum among the customers.
Further, robust Alexa skills and expanding smart home products portfolio are positives. The company’s strong global presence and solid momentum among the small and medium businesses remain tailwinds.
(You can read the full research report on Amazon.com here >>>)
AbbVie shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+39.2% vs. +11.0%). The company has successfully expanded the labels of its cancer drugs, Imbruvica and Venclexta. It has several new drugs in its portfolio, which have the potential to drive revenues once Humira loses U.S. exclusivity in 2023.
Skyrizi and Rinvoq are going strong bolstered by approval in new indications. It has an impressive late-stage pipeline and several early/mid-stage candidates that have blockbuster potential. Allergan’s acquisition has diversified AbbVie’s revenue base into new therapeutic areas, enhancing its long-term growth potential.
However, there are concerns about long-term sales growth once Humira generics enter the U.S. market. Increasing competition from newer therapies is hurting Imbruvica’s sales
(You can read the full research report on AbbVie here >>>)
Other noteworthy reports we are featuring today include AstraZeneca PLC (AZN), Philip Morris International Inc. (PM), and BlackRock, Inc. (BLK).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Robust Portfolio, Services Strength to Benefit Apple (AAPL)
Amazon (AMZN) Rides on Prime Strength & Growing AWS Adoption
AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth
Featured Reports
Cancer Drugs Aid AstraZeneca (AZN) Sales Amid China Impact
The Zacks analyst says that AstraZeneca's cancer drugs, Lynparza, Tagrisso and Imfinzi, should keep driving revenues despite slowing sales in China and COVID impact on sales of some drugs.
Phillip Morris (PM) Gains From Smoke-Free Product Category
Per the Zacks analyst, Philip Morris has been gaining from solid focus on the reduced-risk or smokeless products category. In the second quarter of 2022, sales from RRPs increased 8.2% year over year.
Buyouts, Active Equity Focus Aid BlackRock (BLK), Costs Ail
Per the Zacks analyst, BlackRock's acquisition efforts and initiatives to restructure the active equity business will aid the top line. These efforts might lead to higher costs, thus hurting profits.
Growth Goals Aid Trane Technologies (TT), Low Liquidity Ails
The Zacks analyst appreciates Trane Technologies' growth initiatives through increased revenue streams from parts, services, used equipment and rentals. Weak liquidity remains a concern.
Buyouts Aid Genuine Parts' Growth (GPC) Amid High SG&A Costs
Genuine Parts' (GPC) buyouts of Steady, Lausan and Canol, KDG augur well for its top-line growth. But, per the Zacks analyst, soaring SG&A costs led by technology innovation may dent margins.
A Slew of Strategic Deals Continue to Aid Catalent (CTLT)
The Zacks analyst is upbeat about Catalent's robust growth opportunities via its tie-ups and buyouts over the past few months despite its operation in a tough competitive space.
Infrastructure Investment, Cost Management Aid Evergy (EVRG)
Per the Zacks analyst, Evergy's investment of $10.7 billion through 2026 will strengthen its infrastructure, while efficient cost management will drive its performance over the long run.
New Upgrades
Pure Storage (PSTG) Benefits from Robust Product Portfolio
Per the Zacks analyst, Pure Storage's strong portfolio of solutions like Pure as-a-Service and Evergreen is driving the performance. Strength in FlashArray and FlashBlade businesses bodes well.
Helmerich & Payne (HP) to Gain from Proprietary FlexRigs
The Zacks analyst believes that Helmerich & Payne's technologically-advanced FlexRigs help it to consolidate activity levels and maintain strong rig margins.n
Strategic Plan, Rising Rates Aid Associated Banc-Corp (ASB)
Per the Zacks analyst, strategic plan to expand lending capabilities, higher interest rates and a solid balance sheet will keep aiding Associated Banc-Corp amid rising costs and high debt levels.
New Downgrades
Supply Chain Woes & Stiff Competition to Hurt Itron (ITRI)
Per the Zacks analyst, increasing supply challenges and component constraints continue to be a major headwind for Itron. Stiff competition and leveraged balance sheet is an added concern.
Inflationary Pressures Hurt Red Robin's (RRGB) Prospects
Per the Zacks analyst, Red Robin's operations are likely to be affected by higher commodity and wage rate inflation. Also, pandemic induced supply chain disruptions remains a concern.
Allstate (ALL) Increased Cat Loss & Elevated Debt Level Ail
Per the Zacks analyst, exposure to catastrophic events continues to dent Allstate's underwriting profitability. Rising debt remains a concern as it results in escalated interest expenses.
FREE Report: The Metaverse is Exploding! Don’t You Want to Cash In?
Rising gas prices. The war in Ukraine. America's recession. Inflation. It's no wonder why the metaverse is so popular and growing every day. Becoming Spider Man and fighting Darth Vader is infinitely more appealing than spending over $5 per gallon at the pump. And that appeal is why the metaverse can provide such massive gains for investors. But do you know where to look? Do you know which metaverse stocks to buy and which to avoid? In a new FREE report from Zacks' leading stock specialist, we reveal how you could profit from the internet’s next evolution. Even though the popularity of the metaverse is spreading like wildfire, investors like you can still get in on the ground floor and cash in. Don't miss your chance to get your piece of this innovative $30 trillion opportunity - FREE.
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Amazon.com, Inc. (AMZN): Free Stock Analysis Report
AstraZeneca PLC (AZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
BlackRock, Inc. (BLK): Free Stock Analysis Report
Philip Morris International Inc. (PM): Free Stock Analysis Report
AbbVie Inc. (ABBV): 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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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Amazon (AMZN) Rides on Prime Strength & Growing AWS Adoption AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth Featured Reports Cancer Drugs Aid AstraZeneca (AZN) Sales Amid China Impact The Zacks analyst says that AstraZeneca's cancer drugs, Lynparza, Tagrisso and Imfinzi, should keep driving revenues despite slowing sales in China and COVID impact on sales of some drugs. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Amazon.com, Inc. (AMZN) and AbbVie Inc. (ABBV). Apple Inc. (AAPL): Free Stock Analysis Report
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Amazon (AMZN) Rides on Prime Strength & Growing AWS Adoption AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth Featured Reports Cancer Drugs Aid AstraZeneca (AZN) Sales Amid China Impact The Zacks analyst says that AstraZeneca's cancer drugs, Lynparza, Tagrisso and Imfinzi, should keep driving revenues despite slowing sales in China and COVID impact on sales of some drugs. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Amazon.com, Inc. (AMZN) and AbbVie Inc. (ABBV). Apple Inc. (AAPL): Free Stock Analysis Report
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Amazon (AMZN) Rides on Prime Strength & Growing AWS Adoption AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth Featured Reports Cancer Drugs Aid AstraZeneca (AZN) Sales Amid China Impact The Zacks analyst says that AstraZeneca's cancer drugs, Lynparza, Tagrisso and Imfinzi, should keep driving revenues despite slowing sales in China and COVID impact on sales of some drugs. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Amazon.com, Inc. (AMZN) and AbbVie Inc. (ABBV). Apple Inc. (AAPL): Free Stock Analysis Report
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Amazon (AMZN) Rides on Prime Strength & Growing AWS Adoption AbbVie's (ABBV) Skyrizi, Rinvoq Key to Long-Term Growth Featured Reports Cancer Drugs Aid AstraZeneca (AZN) Sales Amid China Impact The Zacks analyst says that AstraZeneca's cancer drugs, Lynparza, Tagrisso and Imfinzi, should keep driving revenues despite slowing sales in China and COVID impact on sales of some drugs. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Amazon.com, Inc. (AMZN) and AbbVie Inc. (ABBV). Apple Inc. (AAPL): Free Stock Analysis Report
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19294.0
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2022-09-19 00:00:00 UTC
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US STOCKS-Wall Street flat but trading choppy ahead of Fed rate meet
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-flat-but-trading-choppy-ahead-of-fed-rate-meet
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nan
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nan
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By Devik Jain and David French
Sept 19 (Reuters) - Wall Street's main indexes were flat in the early afternoon on Monday amid choppy trading, bouncing around as investors waited to see how aggressive the Federal Reserve would be this week with its interest rate hike.
Even more so than the Ukraine war or corporate earnings, the actions of the U.S. central bank are driving market sentiment as traders try to position themselves for a rising interest rate environment.
The S&P 500 .SPX and the Nasdaq .IXIC logged their worst weekly percentage drop since June on Friday as markets fully priced in at least a 75 basis point rise in rates at the end of Fed's Sept. 20-21 policy meeting, with Fed funds futures showing a 15% chance of a whopping 100 bps increase. FEDWATCH
Unexpectedly hot August inflation data last week also raised bets on increased rate hikes down the road, with the terminal rate for U.S. fed funds now at 4.46%.
"The path of least resistance is still down. The trend followers out there will continue to try to sell every chance they get until we start to see some clarity (on Fed and inflation)," said Joe Saluzzi, co-head of equity trading at Themis Trading LLC.
"We haven't seen a widespread panic selling or anything like that over the year. It's a lower volume market, which means that folks are probably just sitting tight at this point waiting to see the next step."
Focus will also be on new economic projections, due to be published alongside the Fed's policy statement at 2 p.m. ET (1800 GMT) on Wednesday.
Worries of Fed tightening have led to a 19% decline in the S&P 500 this year, with a recent dire earnings report from delivery firm FedEx Corp FDX.N, an inverted U.S. Treasury yield curve and warnings from the World Bank and the IMF about an impending global economic slowdown adding to the woes.
Goldman Sachs cut its forecast for 2023 U.S. GDP late on Friday as it projects a more aggressive Fed and sees that pushing the jobless rate higher than it previously expected.
By 1:53 p.m. ET, the Dow Jones Industrial Average .DJI fell 19.45 points, or 0.06%, to 30,802.97, the S&P 500 .SPX lost 2.26 points, or 0.06%, to 3,871.07 and the Nasdaq Composite .IXIC dropped 5.63 points, or 0.05%, to 11,442.78.
Four of the 11 S&P 500 sectors were lower. Healthcare stocks .SPXHC fell 1.1%, weighed down by a 9.2% fall in shares of Moderna Inc MRNA.O and similar declines in those of other vaccine makers a day after President Joe Biden said in a CBS interview that "the pandemic is over".
Industrial stocks .SPLRCI rebounded 0.7% after a sharp drop on Friday. Banks .SPXBK gained 0.5%. Tech heavyweights Apple Inc AAPL.O and Tesla Inc TSLA.O rose more than 1% each to provide the biggest boost to S&P 500 and the Nasdaq.
Take-Two Interactive Software Inc TTWO.O dipped 0.2%, recovering from a steeper slump earlier in the day, after it confirmed that a hacker had leaked the early footage of Grand Theft Auto VI, the next installment of the best-selling videogame.
Meanwhile, Knowbe4 Inc KNBE.O jumped 28.3% to $22.19, its highest level since early May, after the cybersecurity firm said that Vista Equity Partners had offered to take it private for $24 per share, valuing the company at $4.22 billion.
(Reporting by Devik Jain and Shreyashi Sanyal in Bengaluru and David French in New York; Editing by Shounak Dasgupta, Anil D'Silva and Lisa Shumaker)
((Devik.Jain@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 heavyweights Apple Inc AAPL.O and Tesla Inc TSLA.O rose more than 1% each to provide the biggest boost to S&P 500 and the Nasdaq. By Devik Jain and David French Sept 19 (Reuters) - Wall Street's main indexes were flat in the early afternoon on Monday amid choppy trading, bouncing around as investors waited to see how aggressive the Federal Reserve would be this week with its interest rate hike. Worries of Fed tightening have led to a 19% decline in the S&P 500 this year, with a recent dire earnings report from delivery firm FedEx Corp FDX.N, an inverted U.S. Treasury yield curve and warnings from the World Bank and the IMF about an impending global economic slowdown adding to the woes.
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Tech heavyweights Apple Inc AAPL.O and Tesla Inc TSLA.O rose more than 1% each to provide the biggest boost to S&P 500 and the Nasdaq. By Devik Jain and David French Sept 19 (Reuters) - Wall Street's main indexes were flat in the early afternoon on Monday amid choppy trading, bouncing around as investors waited to see how aggressive the Federal Reserve would be this week with its interest rate hike. Even more so than the Ukraine war or corporate earnings, the actions of the U.S. central bank are driving market sentiment as traders try to position themselves for a rising interest rate environment.
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Tech heavyweights Apple Inc AAPL.O and Tesla Inc TSLA.O rose more than 1% each to provide the biggest boost to S&P 500 and the Nasdaq. By Devik Jain and David French Sept 19 (Reuters) - Wall Street's main indexes were flat in the early afternoon on Monday amid choppy trading, bouncing around as investors waited to see how aggressive the Federal Reserve would be this week with its interest rate hike. The S&P 500 .SPX and the Nasdaq .IXIC logged their worst weekly percentage drop since June on Friday as markets fully priced in at least a 75 basis point rise in rates at the end of Fed's Sept. 20-21 policy meeting, with Fed funds futures showing a 15% chance of a whopping 100 bps increase.
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Tech heavyweights Apple Inc AAPL.O and Tesla Inc TSLA.O rose more than 1% each to provide the biggest boost to S&P 500 and the Nasdaq. By Devik Jain and David French Sept 19 (Reuters) - Wall Street's main indexes were flat in the early afternoon on Monday amid choppy trading, bouncing around as investors waited to see how aggressive the Federal Reserve would be this week with its interest rate hike. The S&P 500 .SPX and the Nasdaq .IXIC logged their worst weekly percentage drop since June on Friday as markets fully priced in at least a 75 basis point rise in rates at the end of Fed's Sept. 20-21 policy meeting, with Fed funds futures showing a 15% chance of a whopping 100 bps increase.
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19295.0
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2022-09-19 00:00:00 UTC
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Cracked iPhone back glass? Some new models much easier to fix, firm finds
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AAPL
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https://www.nasdaq.com/articles/cracked-iphone-back-glass-some-new-models-much-easier-to-fix-firm-finds
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nan
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nan
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By Stephen Nellis
Sept 19 (Reuters) - Apple Inc's AAPL.O new iPhone 14 base model looks similar to its predecessor but is redesigned on the inside, making it much easier to repair cracks in the back glass, repair firm iFixit said in blog post Monday.
Glass backs returned to iPhones in 2017, but the way they were attached made them difficult to replace. Apple charged up to $599 to repair the back glass on some models, though much less for customers with AppleCare+, Apple's device insurance program.
IFixit, which assesses the reparability of consumer electronics, said on Monday Apple has made major changes to the iPhone 14 base model. Previous iPhones had back glass glued to the phone's frame and buried under other components, meaning the device had to be almost totally disassembled to fix it.
In the iPhone 14, the back glass is held in place by just two screws one connector, making it easy to remove.
Apple did not mention the internal redesign when it announced the iPhone 14 earlier this month. It did not immediately respond to a request for comment.
Given the cost of previous repairs "everyone was just living with phones with tape on the back," iFixit Chief Executive Kyle Wiens told Reuters. "This gives people a shot at getting them fixed. It also creates opportunities for local repair shops."
The costlier iPhone 14 Pro and Pro Max still have the older style of glued-in glass back. Apple's phones have long been a target of repair industry critics who argued the devices were so hard to fix that consumers were more likely to discard them and buy a new device.
Apple has slowly started to embrace the repair industry in recent years as part of its environmental sustainability efforts. In 2019, Apple started selling tools, parts and manuals to independent repair shops. Last year, Apple began offering those items to the general public.
(Reporting by Stephen Nellis; Editing by Richard Chang)
((Stephen.Nellis@thomsonreuters.com; (415) 344-4934;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Stephen Nellis Sept 19 (Reuters) - Apple Inc's AAPL.O new iPhone 14 base model looks similar to its predecessor but is redesigned on the inside, making it much easier to repair cracks in the back glass, repair firm iFixit said in blog post Monday. IFixit, which assesses the reparability of consumer electronics, said on Monday Apple has made major changes to the iPhone 14 base model. Previous iPhones had back glass glued to the phone's frame and buried under other components, meaning the device had to be almost totally disassembled to fix it.
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By Stephen Nellis Sept 19 (Reuters) - Apple Inc's AAPL.O new iPhone 14 base model looks similar to its predecessor but is redesigned on the inside, making it much easier to repair cracks in the back glass, repair firm iFixit said in blog post Monday. IFixit, which assesses the reparability of consumer electronics, said on Monday Apple has made major changes to the iPhone 14 base model. Previous iPhones had back glass glued to the phone's frame and buried under other components, meaning the device had to be almost totally disassembled to fix it.
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By Stephen Nellis Sept 19 (Reuters) - Apple Inc's AAPL.O new iPhone 14 base model looks similar to its predecessor but is redesigned on the inside, making it much easier to repair cracks in the back glass, repair firm iFixit said in blog post Monday. Apple charged up to $599 to repair the back glass on some models, though much less for customers with AppleCare+, Apple's device insurance program. Apple's phones have long been a target of repair industry critics who argued the devices were so hard to fix that consumers were more likely to discard them and buy a new device.
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By Stephen Nellis Sept 19 (Reuters) - Apple Inc's AAPL.O new iPhone 14 base model looks similar to its predecessor but is redesigned on the inside, making it much easier to repair cracks in the back glass, repair firm iFixit said in blog post Monday. Previous iPhones had back glass glued to the phone's frame and buried under other components, meaning the device had to be almost totally disassembled to fix it. Apple has slowly started to embrace the repair industry in recent years as part of its environmental sustainability efforts.
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19296.0
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2022-09-19 00:00:00 UTC
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US STOCKS-Wall Street slips on rate-hike jitters
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-slips-on-rate-hike-jitters
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nan
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nan
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By Devik Jain and Shreyashi Sanyal
Sept 19 (Reuters) - Wall Street's main indexes slipped in choppy trading on Monday, extending declines for a third straight session, on worries that the Federal Reserve's aggressive interest rate hikes could tip the U.S. economy into recession.
Five of the 11 S&P 500 sectors were lower. Healthcare stocks .SPXHC fell 1.6%, weighed down by a 9.5% fall in shares of Moderna Inc MRNA.Oand similar declines in those of other vaccine makers a day after President Joe Biden said in a CBS interview that "the pandemic is over".
The S&P 500 .SPX and the Nasdaq .IXIC logged their worst weekly percentage drop since June on Friday as markets fully priced in at least a 75-basis-point rise in rates at the end of Fed's Sept. 20-21 policy meeting, with Fed funds futures showing a 15% chance of a whopping 100 bps increase. FEDWATCH
Unexpectedly hot August inflation data last week also raised bets on increased rate hikes down the road, with the terminal rate for U.S. fed funds now at 4.46%.
"The path of least resistance is still down. The trend followers out there will continue to try to sell every chance they get until we start to see some clarity (on Fed and inflation)," said Joe Saluzzi, co-head of equity trading at Themis Trading LLC.
"We haven't seen a widespread panic selling or anything like that over the year, it's a lower volume market which means that folks are probably just sitting tight at this point waiting to see the next step."
Focus will also be on new economic projections, due to be published alongside the policy statement at 2 p.m. ET (1800 GMT) on Wednesday.
Worries of Fed tightening have led to a 19% decline in the S&P 500 this year, with a recent dire earnings report from delivery firm FedEx, an inverted U.S. Treasury yield curve and warnings from the World Bank and the IMF about an impending global economic slowdown adding to the woes.
"I think a recession is very likely. The Fed regards a recession as regrettable, but necessary to fight inflation," said Christopher Grisanti, chief equity strategist at MAI Capital Management in Cleveland.
Goldman Sachs cut its forecast for 2023 U.S. GDP late on Friday as it projects a more aggressive Fed and sees that pushing the jobless rate higher than it previously expected.
At 11:38 a.m. ET, the Dow Jones Industrial Average .DJI was down 90.01 points, or 0.29%, at 30,732.41, the S&P 500 .SPX was down 15.14 points, or 0.39%, at 3,858.19, and the Nasdaq Composite .IXIC was down 54.43 points, or 0.48%, at 11,393.97.
Industrial stocks .SPLRCI rebounded 0.5% after a sharp drop on Friday. Banks .SPXBK gained 0.5%. Tech heavyweights Apple Inc AAPL.O and Tesla Inc TSLA.O rose more than 1% each to provide the biggest boost to S&P 500 and the Nasdaq.
Take-Two Interactive Software Inc TTWO.O dipped 1% after it confirmed that a hacker had leaked the early footage of Grand Theft Auto VI, the next installment of the best-selling videogame.
The CBOE volatility index .VIX, also known as Wall Street's fear gauge, rose to 26.67 points.
Declining issues outnumbered advancers for a 1.31-to-1 ratio on the NYSE and for a 1.92-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week high and 24 new lows, while the Nasdaq recorded 14 new highs and 298 new lows.
(Reporting by Devik Jain and Shreyashi Sanyal in Bengaluru; Editing by Shounak Dasgupta and Anil D'Silva)
((Devik.Jain@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 heavyweights Apple Inc AAPL.O and Tesla Inc TSLA.O rose more than 1% each to provide the biggest boost to S&P 500 and the Nasdaq. By Devik Jain and Shreyashi Sanyal Sept 19 (Reuters) - Wall Street's main indexes slipped in choppy trading on Monday, extending declines for a third straight session, on worries that the Federal Reserve's aggressive interest rate hikes could tip the U.S. economy into recession. Healthcare stocks .SPXHC fell 1.6%, weighed down by a 9.5% fall in shares of Moderna Inc MRNA.Oand similar declines in those of other vaccine makers a day after President Joe Biden said in a CBS interview that "the pandemic is over".
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Tech heavyweights Apple Inc AAPL.O and Tesla Inc TSLA.O rose more than 1% each to provide the biggest boost to S&P 500 and the Nasdaq. By Devik Jain and Shreyashi Sanyal Sept 19 (Reuters) - Wall Street's main indexes slipped in choppy trading on Monday, extending declines for a third straight session, on worries that the Federal Reserve's aggressive interest rate hikes could tip the U.S. economy into recession. The S&P index recorded no new 52-week high and 24 new lows, while the Nasdaq recorded 14 new highs and 298 new lows.
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Tech heavyweights Apple Inc AAPL.O and Tesla Inc TSLA.O rose more than 1% each to provide the biggest boost to S&P 500 and the Nasdaq. By Devik Jain and Shreyashi Sanyal Sept 19 (Reuters) - Wall Street's main indexes slipped in choppy trading on Monday, extending declines for a third straight session, on worries that the Federal Reserve's aggressive interest rate hikes could tip the U.S. economy into recession. The S&P 500 .SPX and the Nasdaq .IXIC logged their worst weekly percentage drop since June on Friday as markets fully priced in at least a 75-basis-point rise in rates at the end of Fed's Sept. 20-21 policy meeting, with Fed funds futures showing a 15% chance of a whopping 100 bps increase.
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Tech heavyweights Apple Inc AAPL.O and Tesla Inc TSLA.O rose more than 1% each to provide the biggest boost to S&P 500 and the Nasdaq. By Devik Jain and Shreyashi Sanyal Sept 19 (Reuters) - Wall Street's main indexes slipped in choppy trading on Monday, extending declines for a third straight session, on worries that the Federal Reserve's aggressive interest rate hikes could tip the U.S. economy into recession. The S&P 500 .SPX and the Nasdaq .IXIC logged their worst weekly percentage drop since June on Friday as markets fully priced in at least a 75-basis-point rise in rates at the end of Fed's Sept. 20-21 policy meeting, with Fed funds futures showing a 15% chance of a whopping 100 bps increase.
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19297.0
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2022-09-19 00:00:00 UTC
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Interesting AAPL Put And Call Options For January 2025
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AAPL
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https://www.nasdaq.com/articles/interesting-aapl-put-and-call-options-for-january-2025
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nan
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nan
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Investors in Apple Inc (Symbol: AAPL) saw new options become available this week, for the January 2025 expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 851 days until expiration the newly available contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAPL options chain for the new January 2025 contracts and identified one put and one call contract of particular interest.
The put contract at the $150.00 strike price has a current bid of $23.35. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $150.00, but will also collect the premium, putting the cost basis of the shares at $126.65 (before broker commissions). To an investor already interested in purchasing shares of AAPL, that could represent an attractive alternative to paying $151.25/share today.
Because the $150.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 64%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 15.57% return on the cash commitment, or 6.68% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Apple Inc, and highlighting in green where the $150.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $165.00 strike price has a current bid of $29.20. If an investor was to purchase shares of AAPL stock at the current price level of $151.25/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $165.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 28.40% if the stock gets called away at the January 2025 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAPL shares really soar, which is why looking at the trailing twelve month trading history for Apple Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAPL's trailing twelve month trading history, with the $165.00 strike highlighted in red:
Considering the fact that the $165.00 strike represents an approximate 9% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 41%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 19.31% boost of extra return to the investor, or 8.28% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 38%, while the implied volatility in the call contract example is 32%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $151.25) to be 31%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the Nasdaq 100 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AAPL shares really soar, which is why looking at the trailing twelve month trading history for Apple Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAPL's trailing twelve month trading history, with the $165.00 strike highlighted in red: Considering the fact that the $165.00 strike represents an approximate 9% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Apple Inc (Symbol: AAPL) saw new options become available this week, for the January 2025 expiration.
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Below is a chart showing AAPL's trailing twelve month trading history, with the $165.00 strike highlighted in red: Considering the fact that the $165.00 strike represents an approximate 9% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Apple Inc (Symbol: AAPL) saw new options become available this week, for the January 2025 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAPL options chain for the new January 2025 contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AAPL's trailing twelve month trading history, with the $165.00 strike highlighted in red: Considering the fact that the $165.00 strike represents an approximate 9% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Apple Inc (Symbol: AAPL) saw new options become available this week, for the January 2025 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAPL options chain for the new January 2025 contracts and identified one put and one call contract of particular interest.
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At Stock Options Channel, our YieldBoost formula has looked up and down the AAPL options chain for the new January 2025 contracts and identified one put and one call contract of particular interest. Below is a chart showing AAPL's trailing twelve month trading history, with the $165.00 strike highlighted in red: Considering the fact that the $165.00 strike represents an approximate 9% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Apple Inc (Symbol: AAPL) saw new options become available this week, for the January 2025 expiration.
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19298.0
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2022-09-19 00:00:00 UTC
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7 Best Robinhood Stocks to Buy Now
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AAPL
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https://www.nasdaq.com/articles/7-best-robinhood-stocks-to-buy-now
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Robinhood (NASDAQ:HOOD) is a platform that offers a vast selection of equities for purchase. Pretty much anything an investor could want is available for purchase through Robinhood. In that sense, it isn’t much different from any other platform.
So, the best Robinhood stocks to buy are essentially the best stocks to buy, period. But if we look at trades that are trending on Robinhood, then it’s a bit different. We can whittle that down further, as well.
Without further ado, here are the seven best stocks among the 20 most popular assets on Robinhood.
Best Robinhood Stocks: Microsoft (MSFT)
Source: Peteri / Shutterstock.com
Microsoft (NASDAQ:MSFT) stock is currently the most popular choice on the Robinhood platform. I have to agree, it’s a strong choice no matter which platform investors purchase it from.
There are multiple reasons that Microsoft is a strong choice. For one, influential analysts, including Wedbush’s Daniel Ives, see it as a secular winner within tech. The long-term outlook that favors Microsoft is its cloud offering, Azure, and the notions that favor the cloud haven’t dimmed. That’s why Ives has identified it among his secular winners within the tech sector.
Personally, I like Microsoft because it’s relatively cheap right now. Its current price-to-earnings (P/E) ratio of 6.6x isn’t much higher than that of the S&P 500, which is presently at 19.6x. Investors should understand that Microsoft’s P/E ratio was as high as it is now throughout 2019. Investors likely won’t continue to consider MSFT stock overpriced for long.
Walmart (WMT)
Source: Jonathan Weiss / Shutterstock.com
Investors are judging whether it makes sense to buy Walmart (NYSE:WMT) stock currently. I’d side with Robinhood investors who have it among their top 20 picks right now. On the one hand, Walmart’s share prices fell off a cliff in mid-May when earnings showed that rising costs were eating into its profitability. Its share price has gradually risen since then, but still hasn’t returned to prior levels.
Walmart did well throughout the Covid-19 pandemic and was able to absorb price increases while maintaining steady earnings beats. That changed in the first quarter of 2022 as the world’s largest retailer missed earnings per share (EPS) targets that averaged $1.48, posting an EPS of $1.30.
It seems Robinhood investors are buying into Walmart’s reputation as one of the most recession-proof stocks there is. I’d argue that is smart and the worse things get, the better WMT stock should perform.
Best Robinhood Stocks: Apple (AAPL)
Source: Apple
Apple (NASDAQ:AAPL) stock is simply one of the best choices in the market. Share prices have risen to $150 since this summer, and I don’t think they’re going any lower. For one, Apple has a strong P/E ratio of 24.9x that compares favorably to that of the S&P 500.
Tech is down, but it will return as a major mover of the markets. When it does, Apple will surge upward and all of its detractors will be left behind.
For the investor willing to take a long-term perspective, right now is a great time to buy AAPL stock. It has provided 22.7% annual returns over the past decade. The company has already let it be known that it will slow during the current quarter. But after that, it should be right back on track. Investors who put their money in a decade ago have seen it multiply by a factor of greater than seven.
Ford (F)
Source: Jonathan Weiss / Shutterstock.com
If we continue with the idea of 10-year performance, Ford (NYSE:F) stock wouldn’t be high on many investors’ lists. It has provided relatively measly 8.2% returns over the same period. So, $1,000 invested a decade ago would have only grown to $2,205 today.
But the argument in favor of Ford is not about the past and instead relies on the future. It’s really about the transition toward an electric future and what that should mean for F stock. Right now, Ford has a relatively modest electric vehicle (EV) lineup and a low P/E ratio of 5.1x. That ratio signals investors aren’t interested in paying for high multiples of company earnings.
But, as EV sales increase, that should change. Ford has watched as EV stocks have benefited from very high valuations. That has proven to the firm it can benefit from a more heavily EV-dominated lineup.
Best Robinhood Stocks: Meta Platforms (META)
Source: Blue Planet Studio / Shutterstock.com
The argument in favor of purchasing Meta Platforms (NASDAQ:META) stock in July is this: Even though profit forecasts don’t look too high, its inherent value remains high.
What I mean is this: Monness Crespi Hardt analyst Brian White was critical of the business this summer and dropped his target price from $300 to $250 in the process. After praising the firm for its strong position in digital ads, the metaverse and stock repurchases, he highlighted many of the broader knocks, stating:
“However, the economy appears to be on the brink of a recession, regulatory headwinds persist, equity markets are in turmoil, and we expect the geopolitical landscape will grow more treacherous.”
That notion led him to assert that current revenue estimates for the quarter and year are overstated and to drop his target price to $250. In other words, META stock has massive upside from its current price near $146, even after accounting for downward revised guidance.
Lucid (LCID)
Source: Tada Images / Shutterstock
It’s easy to see why Lucid (NASDAQ:LCID) stock has received a lot of bad press: Share prices are way down and 2022 delivery projections are looking less and less likely to be met.
Add to that questions about valuation that suggest LCID stock should trade lower than it does based on 2023 sales projections, and the case becomes bleaker. The argument is Lucid simply doesn’t deserve to trade for more than eight times 2023 sales, while the average EV firm trades for approximately 2.6x 2023 sales.
A Barron’s contributor rightly pointed out Saudi backing differentiates Lucid from its peers, who lack access to such deep-pocketed backers. But also consider Lucid is coming directly for Tesla (NASDAQ:TSLA). That’s a different market than any of the other competitors. In fact, Lucid’s top-of-the-line vehicles are even pricier than Tesla’s. Luxury combined with EV technology means those valuations are likely accurate.
Best Robinhood Stocks: Nvidia (NVDA)
Source: Michael Vi / Shutterstock.com
Investors who are going to buy into Nvidia (NASDAQ:NVDA) stock currently believe it is oversold. It’s no secret that chipmaker stocks and tech stocks at large have taken a beating. Persistent inflation, concerns over interest rate hikes and an overall sense that a recession or worse is ahead are keeping them low.
But Nvidia has a leg up on the competition as its position in gaming gives it a strong secular driver. Yes, that growth may be slowing, but NVDA stock is among the best positioned to take advantage.
Further, it looks like Nvidia shouldn’t drop much further based on its current P/E ratio, which isn’t far out of line with historic trends. At the end of the day, Nvidia will remain a great chip stock with plenty of strength moving forward.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks.Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
The post 7 Best Robinhood Stocks to Buy Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Best Robinhood Stocks: Apple (AAPL) Source: Apple Apple (NASDAQ:AAPL) stock is simply one of the best choices in the market. For the investor willing to take a long-term perspective, right now is a great time to buy AAPL stock. What I mean is this: Monness Crespi Hardt analyst Brian White was critical of the business this summer and dropped his target price from $300 to $250 in the process.
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Best Robinhood Stocks: Apple (AAPL) Source: Apple Apple (NASDAQ:AAPL) stock is simply one of the best choices in the market. For the investor willing to take a long-term perspective, right now is a great time to buy AAPL stock. Best Robinhood Stocks: Microsoft (MSFT) Source: Peteri / Shutterstock.com Microsoft (NASDAQ:MSFT) stock is currently the most popular choice on the Robinhood platform.
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Best Robinhood Stocks: Apple (AAPL) Source: Apple Apple (NASDAQ:AAPL) stock is simply one of the best choices in the market. For the investor willing to take a long-term perspective, right now is a great time to buy AAPL stock. Best Robinhood Stocks: Microsoft (MSFT) Source: Peteri / Shutterstock.com Microsoft (NASDAQ:MSFT) stock is currently the most popular choice on the Robinhood platform.
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Best Robinhood Stocks: Apple (AAPL) Source: Apple Apple (NASDAQ:AAPL) stock is simply one of the best choices in the market. For the investor willing to take a long-term perspective, right now is a great time to buy AAPL stock. Best Robinhood Stocks: Microsoft (MSFT) Source: Peteri / Shutterstock.com Microsoft (NASDAQ:MSFT) stock is currently the most popular choice on the Robinhood platform.
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19299.0
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2022-09-19 00:00:00 UTC
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US STOCKS-Wall Street slips on aggressive rate hike worries
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-slips-on-aggressive-rate-hike-worries
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nan
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nan
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By Devik Jain and Shreyashi Sanyal
Sept 19 (Reuters) - Wall Street's main indexes slipped for the third straight day on Monday led by declines in healthcare and energy stocks as investors worried that another massive interest rate hike by the Federal Reserve could tip the U.S. economy into a recession.
Five of the 11 S&P 500 sectors were down in early trading. Healthcare stocks .SPXHC fell 1.5%, weighed by a 5.5% drop in the shares of Moderna Inc MRNA.O.
The energy sector .SPNY slipped 1% as oil prices declined, pressured by expectations of weaker global demand and by U.S. dollar strength. O/R
The S&P 500 .SPX and the Nasdaq .IXIC logged their worst weekly percentage drop since June on Friday as markets fully priced in at least a 75-basis-point rise in rates during the week, with Fed funds futures showing a 21% chance of a whopping 100 bps increase. FEDWATCH
Unexpectedly hot August inflation data last week also raised bets on increased rate hikes down the road, with the terminal rate for U.S. fed funds now at 4.48%.
"Markets are going to be looking for direction until the Fed meeting, there won't be much trading action till then," said Christopher Grisanti, chief equity strategist at MAI Capital Management in Cleveland.
The S&P 500 has lost 19% so far this year on worries of a central bank-induced recession amid recent warnings of slowing demand from delivery firm FedEx and an inverted U.S. Treasury yield curve.
"I think a recession is very likely. The Fed regards a recession as regrettable, but necessary to fight inflation," Grisanti said.
The CBOE volatility index .VIX, also known as Wall Street's fear gauge, rose to 27 points, inching closer to a more than two-month high.
Focus will also be on new economic projections, due to be published alongside the policy statement at 2 p.m. ET (1800 GMT) on Wednesday.
Goldman Sachs cut its forecast for 2023 U.S. GDP late on Friday as it projects a more aggressive Fed and sees that pushing the jobless rate higher than it previously expected.
"We think a 100 bps hike would unnerve Wall Street ... and would increase the likelihood that the FOMC will eventually overtighten and lessen the possibility of achieving a soft landing," Sam Stovall, chief investment strategist at CFRA, wrote in a note.
At 9:48 a.m. ET, the Dow Jones Industrial Average .DJI was down 107.48 points, or 0.35%, at 30,714.94, the S&P 500 .SPX was down 13.16 points, or 0.34%, at 3,860.17, and the Nasdaq Composite .IXIC was down 42.42 points, or 0.37%, at 11,405.99.
A rebound in industrial stocks .SPLRCI after a sharp drop on Friday helped cap losses on the indexes.
Tech heavyweights Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O fell between 0.3% and 0.6%.
Take-Two Interactive Software Inc TTWO.O slid 2.3% following a report that a hacker had leaked the early footage of Grand Theft Auto VI, the next installment of the best-selling videogame.
Autozone Inc AZO.N rose 0.6% after the auto parts retailer posted upbeat quarterly sales and profit on steady demand and better inventory availability.
Declining issues outnumbered advancers for a 1.69-to-1 ratio on the NYSE and a 1.90-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week high and 18 new lows, while the Nasdaq recorded 13 new highs and 178 new lows.
(Reporting by Devik Jain and Shreyashi Sanyal in Bengaluru; Editing by Shounak Dasgupta)
((Devik.Jain@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 heavyweights Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O fell between 0.3% and 0.6%. By Devik Jain and Shreyashi Sanyal Sept 19 (Reuters) - Wall Street's main indexes slipped for the third straight day on Monday led by declines in healthcare and energy stocks as investors worried that another massive interest rate hike by the Federal Reserve could tip the U.S. economy into a recession. The S&P 500 has lost 19% so far this year on worries of a central bank-induced recession amid recent warnings of slowing demand from delivery firm FedEx and an inverted U.S. Treasury yield curve.
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Tech heavyweights Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O fell between 0.3% and 0.6%. By Devik Jain and Shreyashi Sanyal Sept 19 (Reuters) - Wall Street's main indexes slipped for the third straight day on Monday led by declines in healthcare and energy stocks as investors worried that another massive interest rate hike by the Federal Reserve could tip the U.S. economy into a recession. The S&P index recorded no new 52-week high and 18 new lows, while the Nasdaq recorded 13 new highs and 178 new lows.
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Tech heavyweights Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O fell between 0.3% and 0.6%. By Devik Jain and Shreyashi Sanyal Sept 19 (Reuters) - Wall Street's main indexes slipped for the third straight day on Monday led by declines in healthcare and energy stocks as investors worried that another massive interest rate hike by the Federal Reserve could tip the U.S. economy into a recession. O/R The S&P 500 .SPX and the Nasdaq .IXIC logged their worst weekly percentage drop since June on Friday as markets fully priced in at least a 75-basis-point rise in rates during the week, with Fed funds futures showing a 21% chance of a whopping 100 bps increase.
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Tech heavyweights Apple Inc AAPL.O, Amazon.com AMZN.O, Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O fell between 0.3% and 0.6%. By Devik Jain and Shreyashi Sanyal Sept 19 (Reuters) - Wall Street's main indexes slipped for the third straight day on Monday led by declines in healthcare and energy stocks as investors worried that another massive interest rate hike by the Federal Reserve could tip the U.S. economy into a recession. Five of the 11 S&P 500 sectors were down in early trading.
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