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19500.0
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2022-09-05 00:00:00 UTC
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The 2 Best Warren Buffett Stocks to Load Up On in September
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AAPL
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https://www.nasdaq.com/articles/the-2-best-warren-buffett-stocks-to-load-up-on-in-september
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nan
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nan
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Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) has had an off year. Through the first eight months of 2022, Berkshire's shares have lost over 7% of their value. Still, the diversified holding company's stock has drastically outperformed the broader markets this year. Over this same period, the S&P 500 has dipped by 17.6%, the Dow Jones Industrial Average has retreated by 13.8%, and the Nasdaq Composite has plunged by an unsightly 25.6%.
Berkshire's relative strength in this brutal market is proof positive that the Oracle of Omaha, along with his investment team, haven't lost their touch for stock picking. Which Berkshire stocks are the best picks for investors to load up on in September? My two favorite are the high-flying oil and gas company Occidental Petroleum (NYSE: OXY) and the beaten-down tech giant Apple (NASDAQ: AAPL).
Image source: Getty Images.
Occidental Petroleum: A bull market in energy
Berkshire has been gobbling up Occidental's shares this year, and it's no secret why: Rising crude oil prices have been a boon for upstream-focused oil and gas companies like Occidental.
The term "upstream" refers to oil companies focused on the identification, extraction, and production of raw materials. These types of companies generally benefit from rising oil prices, which certainly has been the case for Occidental and its peers in 2022.
Occidental, for instance, has generated a staggering $16.3 billion in free cash flow and paid off a noteworthy $14.9 billion in debt over the five prior quarters -- all thanks to skyrocketing oil prices. What's more, geopolitical unrest and supply chain woes, coupled with ever-increasing demand for fossil fuels globally, have some analysts predicting yet another surge in crude oil prices next year.
Occidental's stock, as a result, might be trading at a meager 1.6 times 2023 sales right now. By contrast, the average price-to-sales ratio within its peer group is currently 2.48.
This Berkshire-owned oil and gas stock thus appears to have a lot more room to run.
Apple: Buy the fear
The Federal Reserve's series of interest rate hikes have weighed heavily on technology giants like Apple this year. Its shares have fallen 12.2% through the first eight months of 2022.
Shareholders have grown cautious with the stock this year due to concerns that rising interest rates might tip the U.S. into a recession, which could cause consumers to rethink their discretionary spending for premium priced products such as the iPhone, the Apple Watch, or its noise-canceling AirPods.
That's the theory at least. In reality, Apple hasn't shown many ill effects from rising interest rates in 2022, and management isn't predicting any type of recessionary-influenced drop in annual sales in 2023. Thanks to a series of upcoming product launches such as the latest versions of the iPhone and Apple Watch, the top line is expected to tick higher by a respectable 4.8% next year.
As a result, the company's shares are only being valued at 24.5 times forward earnings at present. That's close to Apple's cheapest level since the COVID-19 bear market in March of 2020. This rock-bottom price hasn't gone unnoticed by value investors, however. Berkshire, for instance, scooped up nearly 3.9 million shares of Apple in the second quarter of 2022. Savvy investors with a keen eye on value might want to follow that lead on this beaten-down tech stock.
10 stocks we like better than Occidental Petroleum
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 Occidental Petroleum 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
George Budwell has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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My two favorite are the high-flying oil and gas company Occidental Petroleum (NYSE: OXY) and the beaten-down tech giant Apple (NASDAQ: AAPL). What's more, geopolitical unrest and supply chain woes, coupled with ever-increasing demand for fossil fuels globally, have some analysts predicting yet another surge in crude oil prices next year. Shareholders have grown cautious with the stock this year due to concerns that rising interest rates might tip the U.S. into a recession, which could cause consumers to rethink their discretionary spending for premium priced products such as the iPhone, the Apple Watch, or its noise-canceling AirPods.
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My two favorite are the high-flying oil and gas company Occidental Petroleum (NYSE: OXY) and the beaten-down tech giant Apple (NASDAQ: AAPL). The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple.
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My two favorite are the high-flying oil and gas company Occidental Petroleum (NYSE: OXY) and the beaten-down tech giant Apple (NASDAQ: AAPL). Occidental Petroleum: A bull market in energy Berkshire has been gobbling up Occidental's shares this year, and it's no secret why: Rising crude oil prices have been a boon for upstream-focused oil and gas companies like Occidental. See the 10 stocks *Stock Advisor returns as of August 17, 2022 George Budwell has no position in any of the stocks mentioned.
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My two favorite are the high-flying oil and gas company Occidental Petroleum (NYSE: OXY) and the beaten-down tech giant Apple (NASDAQ: AAPL). Occidental Petroleum: A bull market in energy Berkshire has been gobbling up Occidental's shares this year, and it's no secret why: Rising crude oil prices have been a boon for upstream-focused oil and gas companies like Occidental. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Occidental Petroleum wasn't one of them!
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19501.0
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2022-09-05 00:00:00 UTC
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7 Growth Stocks That Could 10X by 2027
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AAPL
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https://www.nasdaq.com/articles/7-growth-stocks-that-could-10x-by-2027
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
MarketWatch published an article early in 2022 which highlighted last year’s best-performing S&P 500, mid-cap, small-cap, Nasdaq-100, and Dow 30 stocks. Some of the names on the five lists were cited by analysts as the top growth stocks to buy in 2022.
We know in hindsight that growth stocks weren’t the best bet over the past eight months. That distinction goes to energy stocks. The energy stocks in the S&P 500 jumped almost 45% in the first eight months of 2022. Out of the 11 sectors in the index, utilities is the only one besides energy in positive territory in 2022. The S&P 500’s utilities rose 3.4% through the first eight months of 2022.
For this article, I’m tasked with selecting seven growth stocks to buy that have a better-than-average shot of appreciating ten-fold over the next five years.
I’m going to take at least one name from each of the five MarketWatch lists.
And to qualify for this column, stocks will have to have an average rating of “overweight” or “buy” from Wall Street analysts.
NVDA Nvidia $136.47
DKS Dick’s Sporting Goods $108.23
PRFT Perficient $73.49
MRNA Moderna $138.57
AAPL Apple $155.81
ORLY O’Reilly Automotive $702.70
CCRN Cross Country Healthcare $24.79
Nvidia (NVDA)
Source: Shutterstock
Nvidia (NASDAQ:NVDA) gained 125.5% in 2021. It had tumbled 54% in 2022 through Friday.
However, the analysts remain bullish on NVDA stock. Of the 44 covering NVDA , 35 rate it a “buy” or an “overweight.” Only one analyst has a “sell” rating on it. Their average price target for the shares is $211.02, more than 50% above its current share price.
The chip maker’s three-year annualized average revenue growth is 32%.
That’s the good news. The bad news is that NVDA expects its Q3 revenue to fall by 17% compared to the same period a year earlier. Also, it took a $1.34 billion charge in Q2 to account for the inventory that it wrote down due to slower-than-expected revenue growth.
CEO Jensen Huang remains confident that the gaming market will rebound.
“While Gaming navigates significant short-term macroeconomic challenges, we believe the long-term fundamentals in Gaming remain strong,” Huang stated on the company Q2 earnings conference call.
“NVIDIA RTX has redefined computer graphics and is now supported by almost 300 games and applications. NVIDIA’s GeForce GPUs are the most coveted brand by gamers, representing 15 of the top 15 most popular GPUs on Steam.”
NVDA stock hasn’t been this low since April 2021, more than 17 months ago. I like the chances of its share price rising ten-fold over the next five years.
Dick’s Sporting Goods (DKS)
Source: Jonathan Weiss / Shutterstock.com
Dick’s Sporting Goods (NYSE:DKS) gained 116.4% in 2021. It has given 6% back in 2022.
Of the 26 analysts covering DKS stock, 13 rate it a “buy” or an “overweight.” Only one rates it a “sell,” and analysts’ average price target on the name is $124.78, about 16% higher than its current share price.
Investors who did not carefully read the retailer’s earnings report would likely have wrongly concluded that it had a dud of a quarter. It did not. That’s far from the truth.
The 5.1% decline in Dick’s same-store sales may scream “run for the hills,” but the retreat came on the heels of a 20% increase in SSS in Q2 of 2021. Even more impressively, Dick’s net sales of $3.1 billion last quarter were 38% higher than in the same period of 2019.
And, as Executive Chairman Ed Stack pointed out, its earnings before taxes (EBT) in Q2 was equal to its EBT for all of 2019.
“The state of our industry is strong, and we remain in a great lane. DICK’S is the clear market leader, and as a result of our transformation, we are well-positioned to extend our lead and deliver long-term sales and earnings growth,” Stack stated in the company’s quarterly press release.
Maybe DKS stock won’t appreciate ten-fold over the next five years, but you can be darn sure that you won’t lose much on the shares either. Their risk/reward outlook is excellent.
Perficient (PRFT)
Source: ccpixx photography / Shutterstock.com
Perficient (NASDAQ:PRFT) gained 171% in 2021. It’s down 43% in 2022.
The Missouri-based company is a consulting firm that helps its customers utilize digital technologies to better engage with their customers. It provides its services to healthcare, financial services, manufacturing, automotive firms, and companies in several other industries.
Over the past three years, its average annualized revenue growth was 15.2%. Out of nine analysts, seven rate it a “buy,” with two “holds” and no “sell” recommendations. Their average price target on the shares is $115.25, 52% versus its current level of $72.77.
The company’s Q2 results were excellent. Its revenues rose 21% year-over-year while its earnings per share, excluding some items, jumped 26%. For all of 2022, it expects revenue of $915 million at the midpoint of its guidance. On the bottom line, the midpoint of its outlook equates to adjusted EPS of $4.30
Based on the company’s 2022 guidance, it’s trading at 17.6 times its EPS and 2.9 times its sales. Those are both reasonable given its growth prospects.
In July, the company announced that it would expand in India by adding new locations in Hyderabad and Pune, and increasing the office space in three other cities. The move adds approximately 73,000 square feet of office space for almost 2,000 new employees.
These additions should meaningfully increase its revenue.
Moderna (MRNA)
Source: Ascannio / Shutterstock.com
Moderna (NASDAQ:MRNA) gained 143% in 2021. It’s down 45% in 2022.
August ended with some good news for MRNA. First, it announced on Aug. 31 that the U.S. Food and Drug Administration (FDA) approved the company’s emergency use authorization (EUA) application for its Omicron-targeting Covid-19 booster vaccine for adults 18 and over. A day later, Health Canada issued the same approval.
Moderna will initially supply 12 million doses to Canada, which will have an option to purchase an additional 4.5 million doses.
In early August, Moderna reported its earnings for the first six months of 2022. On the top line, its revenues rose 71% YOY to $10.8 billion. On the bottom line, it earned $6.7 billion from its operations, 56% higher than during the same period a year earlier.
Moderna is generating so much cash that it finished Q2 with $18.1 billion of cash and investments, up from $17.6 billion at the end of December. Moderna is trading at three times its cash. That’s a cheap valuation.
Despite its low valuation, analysts are lukewarm on MRNA. Of the 19 analysts covering its stock, only seven rate it “overweight” or “buy.” Most have “hold” ratings on it and one has an outright “sell” rating on the shares. However, the analysts’ median target price is $197.00, versus its current price of $138.
Moderna’s pipeline is substantial. It has 31 of its 43 development candidates in clinical trials. One or two of those are bound to pay off in a big way.
Apple (AAPL)
Source: Yalcin Sonat / Shutterstock.com
Apple (NASDAQ:AAPL) gained 34.6% in 2021. It’s down a little more than 12% in 2022.
A Barron’s article from August made an interesting point about Apple’s size being a big negative for AAPL stock.
“As the largest U.S. company by far—with a market capitalization more than $500 billion greater than the number-two, Microsoft (MSFT)—Apple is widely owned and has a tendency to drag around, and be dragged around by, the major indexes,” Barron’s contributor Jack Denton wrote.
“After all, it makes up more than 7% of the entire S&P 500. If Apple was its own sector, it would have the seventh-largest weighting out of 12 and be almost twice as large as the energy sector.”
Despite the concerns about China’s slowing economy hurting Apple’s sales, analysts remain relatively upbeat about its stock. Of the 41 analysts covering AAPL, 32 rate it “overweight” or a “buy.” Only two have an “underweight” or a “sell” rating on it.
Apple’s services business continues to be very profitable. In the first nine months of 2022, the gross margin of its services business was 72%, almost double that of its products business.
O’Reilly Automotive (ORLY)
Source: Jonathan Weiss / Shutterstock.com
O’Reilly Automotive (NASDAQ:ORLY) appeared in my July column, called the 7 Best Retail Stocks to Buy Now. ORLY made the list because it consistently grows its free cash flow. It’s up almost 20% in 2022 relative to the S&P 500. Over the past five years, it’s up four-fold compared to the index.
ORLY gained 56% in 2021. Analysts generally like the stock. Of the 24 covering it, 17 have “buy” or “overweight” ratings on it, and their average price target is $768.63, versus its current price of $701.50.
I know that doesn’t seem like much of a difference. However, the shares perform well over the long haul. Since 2000, they’re up 8,400%, representing a compound annual growth rate of 22.8%.
This little snippet from CEO Gregory Johnson’s Aug. 23 speech encapsulates the state of O’Reilly’s business:
“So when you look at a 2-year stack basis, that comp will be 21%; 3-year, 28.5%. Gross margin year-to-date 51.6%; operating margin, 21.1%. And we’ve opened 116 net new stores and are on track to meet our projection of 175 to 185 stores for the year,” Johnson stated.
“Diluted earnings per share came in at $15.94. We generated $1.2 billion in free cash flow and repurchased $2.2 billion worth of our stock year-to-date under the stock repurchase program.”
As I said earlier, O’Reilly knows how to grow its free cash flow, but it’s also better than most at allocating it. Over the long-term, you won’t do much better than ORLY.
Cross Country Healthcare (CCRN)
Source: Shutterstock
Cross Country Healthcare (NASDAQ:CCRN) gained 213% in 2021, so it’s not surprising that it’s cooled off in 2022. However, relative to the Russell 2000, it’s up more than 9% on the year.
Cross Country works with healthcare clients such as hospitals, outpatient clinics, ambulatory clinics, physician practice groups, and other healthcare-related facilities to recruit and staff their businesses. The demand for its services is very strong.
Over the last three years, its revenue has grown at an annualized rate of 27.1% , while its operating income rose by an average of 104.4% annually. That’s some pretty good growth–and I don’t think that the firm is going to stop growing anytime soon.
It’s fair to say that the sequential decreases in its financial results that occurred in Q2 will continue in the back half of the year as staffing shortages dissipate, returning to more normal historical levels.
For example, in Q3, the company expects revenue of $610 million at the midpoint of its guidance. That’s 62.5% higher than a year earlier but down 19% from the previous quarter. Its adjusted EPS should also fall in Q3 versus Q2.
The company’s biggest growth driver is its Managed Service Programs (MSPs). Between 2015 and 2021, the estimated revenue of these MSPs grew by $800 million to $1.1 billion. The annual run rate of its revenue in Q2 was $2.2 billion. It has approximately 100 customers across more than 550 facilities.
Investors should expect more moderate growth from CCRN– barring any significant M&A transactions — but not a return to the slower growth that it generated before the pandemic.
On the date of publication, Will Ashworth 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.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
The post 7 Growth Stocks That Could 10X by 2027 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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NVDA Nvidia $136.47 DKS Dick’s Sporting Goods $108.23 PRFT Perficient $73.49 MRNA Moderna $138.57 AAPL Apple $155.81 ORLY O’Reilly Automotive $702.70 CCRN Cross Country Healthcare $24.79 Nvidia (NVDA) Source: Shutterstock Nvidia (NASDAQ:NVDA) gained 125.5% in 2021. Apple (AAPL) Source: Yalcin Sonat / Shutterstock.com Apple (NASDAQ:AAPL) gained 34.6% in 2021. A Barron’s article from August made an interesting point about Apple’s size being a big negative for AAPL stock.
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NVDA Nvidia $136.47 DKS Dick’s Sporting Goods $108.23 PRFT Perficient $73.49 MRNA Moderna $138.57 AAPL Apple $155.81 ORLY O’Reilly Automotive $702.70 CCRN Cross Country Healthcare $24.79 Nvidia (NVDA) Source: Shutterstock Nvidia (NASDAQ:NVDA) gained 125.5% in 2021. Apple (AAPL) Source: Yalcin Sonat / Shutterstock.com Apple (NASDAQ:AAPL) gained 34.6% in 2021. A Barron’s article from August made an interesting point about Apple’s size being a big negative for AAPL stock.
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NVDA Nvidia $136.47 DKS Dick’s Sporting Goods $108.23 PRFT Perficient $73.49 MRNA Moderna $138.57 AAPL Apple $155.81 ORLY O’Reilly Automotive $702.70 CCRN Cross Country Healthcare $24.79 Nvidia (NVDA) Source: Shutterstock Nvidia (NASDAQ:NVDA) gained 125.5% in 2021. Apple (AAPL) Source: Yalcin Sonat / Shutterstock.com Apple (NASDAQ:AAPL) gained 34.6% in 2021. A Barron’s article from August made an interesting point about Apple’s size being a big negative for AAPL stock.
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NVDA Nvidia $136.47 DKS Dick’s Sporting Goods $108.23 PRFT Perficient $73.49 MRNA Moderna $138.57 AAPL Apple $155.81 ORLY O’Reilly Automotive $702.70 CCRN Cross Country Healthcare $24.79 Nvidia (NVDA) Source: Shutterstock Nvidia (NASDAQ:NVDA) gained 125.5% in 2021. Apple (AAPL) Source: Yalcin Sonat / Shutterstock.com Apple (NASDAQ:AAPL) gained 34.6% in 2021. A Barron’s article from August made an interesting point about Apple’s size being a big negative for AAPL stock.
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19502.0
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2022-09-05 00:00:00 UTC
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Should You Invest in the iShares U.S. Technology ETF (IYW)?
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AAPL
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https://www.nasdaq.com/articles/should-you-invest-in-the-ishares-u.s.-technology-etf-iyw-3
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nan
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nan
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If you're interested in broad exposure to the Technology - Broad segment of the equity market, look no further than the iShares U.S. Technology ETF (IYW), a passively managed exchange traded fund launched on 05/15/2000.
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.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 8, placing it in top 50%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $6.60 billion, making it one of the largest ETFs attempting to match the performance of the Technology - Broad segment of the equity market. IYW seeks to match the performance of the Dow Jones U.S. Technology Index before fees and expenses.
The Russell 1000 Technology RIC 22.5/45 Capped Index includes companies in the following sectors: software and computer services and technology hardware and equipment. The Index is capitalization-weighted and includes only companies in the technology industry of the Dow Jones U.S. Total Market Index.
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 0.41%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.37%.
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 in the Information Technology sector--about 85.80% of the portfolio, followed by Telecom.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 17.66% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL).
The top 10 holdings account for about 63.45% of total assets under management.
Performance and Risk
Year-to-date, the iShares U.S. Technology ETF has lost about -28.77% so far, and is down about -23.92% over the last 12 months (as of 09/05/2022). IYW has traded between $77.53 and $117.09 in this past 52-week period.
The ETF has a beta of 1.13 and standard deviation of 30.94% for the trailing three-year period, making it a medium risk choice in the space. With about 154 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares U.S. Technology 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, IYW is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $40.20 billion in assets, Vanguard Information Technology ETF has $42.56 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares U.S. Technology ETF (IYW): ETF Research Reports
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Vanguard Information Technology ETF (VGT): 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 17.66% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL). Apple Inc. (AAPL): Free Stock Analysis Report It has amassed assets over $6.60 billion, making it one of the largest ETFs attempting to match the performance of the Technology - Broad segment of the equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 17.66% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL). Apple Inc. (AAPL): Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 17.66% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL). Apple Inc. (AAPL): Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 17.66% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL). Apple Inc. (AAPL): Free Stock Analysis Report Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure.
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19503.0
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2022-09-05 00:00:00 UTC
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6 Reasons to Buy Apple Stock Now and Never Sell
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AAPL
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https://www.nasdaq.com/articles/6-reasons-to-buy-apple-stock-now-and-never-sell
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nan
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nan
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Even as the bear market lingers, investors might be surprised to learn that Apple (NASDAQ: AAPL) still holds the title of most valuable publicly traded company, with its market cap recently clocking in at $2.55 trillion. Perhaps even more impressive is the fact that even in the midst of the ongoing meltdown in technology stocks, the iPhone maker has outperformed the broader indexes and many of its peers.
From their peaks several months ago, the S&P 500 and the Nasdaq Composite indexes have declined 17% and 26%, respectively, while Apple stock has shed just 13%.
That performance notwithstanding, there are plenty of reasons for investors to buy Apple stock and hold forever.
1. It's Warren Buffett's largest holding
Given his extraordinary track record, investors could do far worse than following in the footsteps of legendary money manager Warren Buffett. Since taking the helm of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) in 1965, the "Oracle of Omaha" has delivered mind-boggling returns, generating a compound annual growth rate of more than 20%. In fact, by the end of 2021, the company's overall returns clocked in at a staggering 3,641,613%.
Lest there be any doubt, Apple is far and away Berkshire's largest holding. Buffett ended the second quarter with nearly 895 million shares of Apple stock, worth roughly $122 billion as of June, 30, accounting for about 41% of Berkshire's portfolio. That's quite a vote of confidence from one of the world's most successful investors.
2. One billion iPhones strong -- and growing
There's no question that the release of the iconic iPhone in 2007 ushered in the modern smartphone and forever changed the way we communicate. The device's sleek design and integrated computing power took the world by storm. Now, as we await the release of the upcoming iPhone 14, Apple dominates the market, with more than 1 billion active iPhones in the wild.
Rumors are swirling that the next-generation device -- which is due to be unveiled next week -- could sport some major upgrades and four new models. Wedbush analyst Dan Ives estimates that roughly 24% of iPhone owners worldwide haven't upgraded their device over the past 3.5 years. Even in the midst of the prevailing macroeconomic headwinds, this could mark the beginning of the next big product cycle for the iPhone.
3. Apple is the new black
While the iPhone gets all the press, Apple's wearables, home products, and accessories segment -- which includes such products as Apple Watch, AirPods, AirTags, and Beats headphones -- continue to steadily attract converts. Earlier this year, noted tech analyst Horace Dediu announced that "Apple Wearables is now [the size of] a Fortune 100 business." In fact, the segment has generated more revenue so far in fiscal 2022 than either the Mac or the iPad.
Supply constraints and foreign exchange headwinds have weighed on the segment, which grew just 6% year over year through the first three quarters of fiscal 2022. That said, the resulting pent-up demand will eventually give way to a surge in sales. Furthermore, the company is expected to release the latest versions of its Apple Watch next week. These could include a Pro model, which could serve to supercharge sales of the popular device.
4. Services: Apple's second-biggest breadwinner
Long before anyone else, CEO Tim Cook saw the potential for Apple's services segment, announcing plans in early 2017 to double its revenue over the coming four years. Fast forward to mid-2022, and services has come into its own.
The segment, which includes Apple Music, the App Store, Apple Pay, and Apple TV+ (among others), just set a June quarter record, generating 19% of Apple's total revenue. Services also saw revenue records in each major category, including all-time records for Music, Cloud Services, Apple Care, and Payment Services.
Apple TV+ began as something of an industry joke, with just eight programs and a documentary. But nobody's laughing now. Apple has netted more than 250 awards and over 1,100 nominations for its programming, including 52 Emmy Award nominations in 2022.
5. Dividends: The gift that keeps on giving
Apple began paying a dividend again in 2012 and has amassed quite an impressive track record. The quarterly payout began at a split-adjusted $0.095 and has soared 143% in just ten years.
This includes Apple's announcement earlier this year, which boosted the quarterly payout to $0.23 per share, an increase of 5% for 2022. That likely won't be the last increase as Apple is using less than 15% of its profits to fund the payout, giving the company plenty of opportunity for future increases.
6. Fewer shares = a bigger slice of the Apple pie
Another highlight of Apple's shareholder-friendly policies is the company's strong share-repurchase plan. Apple began buying back shares in earnest in early 2013 and has never taken its foot off the gas. As a result, with each passing quarter, Apple shareholders own a larger share of the company. In fact, over the past 10 years, Apple's share count has declined by nearly 39%.
Data by YCharts.
As an example, the company retired roughly 1% of its shares in its fiscal third quarter and has no plans of slowing down. Earlier this year, Apple announced that it added another $90 billion to its existing share-repurchase program.
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Danny Vena has positions in Apple. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Even as the bear market lingers, investors might be surprised to learn that Apple (NASDAQ: AAPL) still holds the title of most valuable publicly traded company, with its market cap recently clocking in at $2.55 trillion. Perhaps even more impressive is the fact that even in the midst of the ongoing meltdown in technology stocks, the iPhone maker has outperformed the broader indexes and many of its peers. Buffett ended the second quarter with nearly 895 million shares of Apple stock, worth roughly $122 billion as of June, 30, accounting for about 41% of Berkshire's portfolio.
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Even as the bear market lingers, investors might be surprised to learn that Apple (NASDAQ: AAPL) still holds the title of most valuable publicly traded company, with its market cap recently clocking in at $2.55 trillion. This includes Apple's announcement earlier this year, which boosted the quarterly payout to $0.23 per share, an increase of 5% for 2022. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares).
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Even as the bear market lingers, investors might be surprised to learn that Apple (NASDAQ: AAPL) still holds the title of most valuable publicly traded company, with its market cap recently clocking in at $2.55 trillion. Apple is the new black While the iPhone gets all the press, Apple's wearables, home products, and accessories segment -- which includes such products as Apple Watch, AirPods, AirTags, and Beats headphones -- continue to steadily attract converts. The segment, which includes Apple Music, the App Store, Apple Pay, and Apple TV+ (among others), just set a June quarter record, generating 19% of Apple's total revenue.
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Even as the bear market lingers, investors might be surprised to learn that Apple (NASDAQ: AAPL) still holds the title of most valuable publicly traded company, with its market cap recently clocking in at $2.55 trillion. The segment, which includes Apple Music, the App Store, Apple Pay, and Apple TV+ (among others), just set a June quarter record, generating 19% of Apple's total revenue. This includes Apple's announcement earlier this year, which boosted the quarterly payout to $0.23 per share, an increase of 5% for 2022.
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19504.0
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2022-09-04 00:00:00 UTC
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2 Trillion-Dollar Growth Stocks to Buy Hand Over Fist Right Now
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AAPL
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https://www.nasdaq.com/articles/2-trillion-dollar-growth-stocks-to-buy-hand-over-fist-right-now
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nan
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nan
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Technology investors enjoyed monster gains during 2020 and 2021, even during the height of a once-in-a-century pandemic. The most innovative companies in the U.S. helped pull humanity through that challenging time and were aptly rewarded. But the stock market is giving back some of those gains in 2022 as the economic environment shifts to one with higher inflation and rising interest rates.
As a result, the Nasdaq-100 technology index is in a bear market with a year-to-date loss of 24%. But history is proof that a down market can be the best time to invest, because a recovery to new highs typically follows, broadly speaking, given enough time.
The key is to focus on quality stocks. Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are already the two largest listed companies in the U.S., boasting market valuations of $2.5 trillion and $1.9 trillion, respectively, but they might also be among the best performers in the future. Here's why.
The case for Apple
During volatile stock market conditions, looking to some of the world's greatest investors for guidance is one way to navigate the uncertainty. Warren Buffett sits atop most people's list of investing geniuses, and as of this writing, Apple stock makes up 42% of his Berkshire Hathaway investment company's portfolio (by value).
Apple is a remarkable, culture-shifting organization. It turned its iPhone smartphone device from a luxury good to a must-have for many consumers, and it has complemented it with a range of top-selling accessories like the Apple Watch and AirPods wireless headphones -- both of which generate billions of dollars in sales every year. But the company has also built a lucrative ecosystem of services that seamlessly integrate with its devices, and that might be the most exciting part for investors.
Apple is home to Apple News, Apple Music, Apple TV+, and Apple Pay, which recently expanded to include Apple Pay Later. While services only accounted for 23.6% of the company's total $82.9 billion in revenue during the recent third quarter of fiscal 2022 (ended June 25), the upside is that they hold a much higher gross profit margin of 71%, compared to 52% for its hardware business.
Plus services revenue drove the company's growth in the quarter, expanding by 12% compared to last year, whereas hardware revenue was flat -- though it'll likely pick up after September once Apple unveils the next-generation iPhone.
Even as consumers tighten their belts amid a slowing economy, they're still willing to devote some of their income to Apple's products and ecosystem. That's one reason investors have been relatively hesitant to sell Apple stock this year; it's down about 10% in 2022, which is less than half the loss of the Nasdaq-100 index. Another reason is the enormous amount of money the company is returning to shareholders.
On top of its 0.6% annual dividend yield, Apple has repurchased more than $64 billion worth of its own stock so far in fiscal 2022, and it recently increased the total program by $90 billion. It ticks just about every box for an investing veteran like Buffett, especially in this challenging market.
The case for Microsoft
Microsoft and Apple were fierce rivals in the 1980s and 1990s. It's rare for both parties in a brutal corporate war to come out on top, but decades later, they're the two largest companies in the world. Their businesses have moved in slightly different directions more recently, but they still compete in some areas like hardware, which could become a battleground as new technologies like virtual reality grow in popularity.
Microsoft operates three main business segments, the largest of which is intelligent cloud computing. It's driven by Azure, a cloud services platform geared toward helping businesses migrate their operations online through hundreds of solutions like data storage and even machine learning applications. This is an area in which Apple doesn't even operate, which highlights how much the tech landscape has changed over recent decades.
Azure grew at a lightning-fast pace of 45% in the fiscal 2022 full year (ended June 30). It outpaced the intelligent cloud business unit overall, which expanded by a lesser 25%, but its large size is becoming a hindering factor with $75 billion in revenue. As that number climbs, it'll be more difficult to maintain rapid growth rates. But it's worth noting that the cloud computing opportunity could be worth $1.5 trillion every year by 2030, according to an estimate by Grand View Research, and Azure is already the second-largest player in the industry.
Microsoft is also expanding its presence in gaming, building upon its flagship Xbox platform to deliver new services like Xbox Cloud Gaming, which allows users to access their favorite console titles online and eliminates the need to download updates and patches. The cloud gaming industry is still in its infancy with an estimated value of $3.2 billion this year, but that could explode by more than 43% per year until 2029 to become an annual opportunity of $40.8 billion.
Microsoft has positioned itself to prosper over the long term by building a presence in industries of the future, and owning its stock allows investors to own a cross-section of the rapidly expanding digital economy.
10 stocks we like better than Apple
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*Stock Advisor returns as of August 17, 2022
Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and Microsoft. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are already the two largest listed companies in the U.S., boasting market valuations of $2.5 trillion and $1.9 trillion, respectively, but they might also be among the best performers in the future. It turned its iPhone smartphone device from a luxury good to a must-have for many consumers, and it has complemented it with a range of top-selling accessories like the Apple Watch and AirPods wireless headphones -- both of which generate billions of dollars in sales every year. While services only accounted for 23.6% of the company's total $82.9 billion in revenue during the recent third quarter of fiscal 2022 (ended June 25), the upside is that they hold a much higher gross profit margin of 71%, compared to 52% for its hardware business.
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Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are already the two largest listed companies in the U.S., boasting market valuations of $2.5 trillion and $1.9 trillion, respectively, but they might also be among the best performers in the future. While services only accounted for 23.6% of the company's total $82.9 billion in revenue during the recent third quarter of fiscal 2022 (ended June 25), the upside is that they hold a much higher gross profit margin of 71%, compared to 52% for its hardware business. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and Microsoft.
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Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are already the two largest listed companies in the U.S., boasting market valuations of $2.5 trillion and $1.9 trillion, respectively, but they might also be among the best performers in the future. Warren Buffett sits atop most people's list of investing geniuses, and as of this writing, Apple stock makes up 42% of his Berkshire Hathaway investment company's portfolio (by value). Apple is home to Apple News, Apple Music, Apple TV+, and Apple Pay, which recently expanded to include Apple Pay Later.
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Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are already the two largest listed companies in the U.S., boasting market valuations of $2.5 trillion and $1.9 trillion, respectively, but they might also be among the best performers in the future. While services only accounted for 23.6% of the company's total $82.9 billion in revenue during the recent third quarter of fiscal 2022 (ended June 25), the upside is that they hold a much higher gross profit margin of 71%, compared to 52% for its hardware business. The cloud gaming industry is still in its infancy with an estimated value of $3.2 billion this year, but that could explode by more than 43% per year until 2029 to become an annual opportunity of $40.8 billion.
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19505.0
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2022-09-03 00:00:00 UTC
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Looking for the Market's Best Buy? This Stock Could Be It
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AAPL
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https://www.nasdaq.com/articles/looking-for-the-markets-best-buy-this-stock-could-be-it
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nan
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nan
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Last month, Best Buy (NYSE: BBY) cut its sales and profit outlook for the rest of 2022, causing the stock to sell off. The stock just reported second-quarter earnings, and while results were down, the stock rallied, as results weren't as bad as investors expected. Shares are down 47% from their 52-week high, and after this reset, Best Buy looks like an appealing investment opportunity. Here's why.
Image source: Getty Images.
A hard reset
While comparable-store sales were down 8%, this was partially because Best Buy was lapping a quarter when the pandemic was still driving demand for electronics, computers, and home entertainment and consumers were still flush with stimulus cash. For context, Best Buy's comparable-store sales were still up 8% compared to the second quarter two years ago. Within individual product categories, sales of computers and home appliances were down from last year, but up 20% and 45%, respectively, when compared to the same time frame during 2020. Sales are still on an upward trajectory over a multiyear time frame, but they aren't growing at quite the rate that they were during 2021's unprecedented environment. The business thus seems to be in a better position than it was two years ago.
With Best Buy warning customers about this quarter's results and lowering guidance ahead of time, it seems like this is a bit of a "kitchen sink" quarter and perhaps a reset point for the stock as it gets ready to turn the corner.
Carving out a niche
In a world where consumers are used to acquiring products with the click of a button on Amazon (NASDAQ: AMZN), retailers like Best Buy need to differentiate themselves and give customers a reason to shop there. The good news is that Best Buy is working to make itself a differentiated option. Best Buy has taken advantage of its large physical footprint (over 1,100 stores in the United States and Canada) to offer one-day shipping to 99% of U.S. zip codes.
Best Buy's large sales staff gives it the ability to provide post-sale support for products that some customers may have trouble setting up or navigating, which differentiates it from online sellers like Amazon. This support not only keeps Best Buy's customers satisfied but also makes it a valuable partner for companies like Apple (NASDAQ: AAPL) and Samsung (OTC: SSNL.F) since Best Buy is helping their end users at the point of purchase.
Furthermore, Best Buy seems to be onto something with its Totaltech program. Members pay $199 a year and get access to 24/7 tech support from the Geek Squad, free two-day shipping, and access to special prices and promotions. But perhaps most importantly, members get free delivery and installation on standard Best Buy purchases. Having Best Buy deliver and install a new refrigerator or dishwasher and take away the old one has tremendous appeal to a lot of potential customers. Best Buy can also, for example, mount a new flat-screen TV. Best Buy CEO Corie Barry says that she is encouraged by the program's growth, especially at a time when overall sales are down, and describes it as "a near-term investment to drive longer-term benefits" and says that "over time, we expect the incremental spend we garner from members will lead to higher operating income dollars." Barry states that the company's net promoter scores (which measure how likely a customer is to recommend a product or service to a friend or colleague) for installation and repair have been increasing compared to pre-pandemic levels, which seems to indicate that these efforts are working. These types of services make Best Buy stickier and help it to compete with the likes of Amazon.
Dividend growth at a bargain price
Shares of Best Buy are cheap, trading at just eight times earnings. This is well below the S&P 500's average of about 17 times earnings. While Best Buy faces challenges from inflation and decreased consumer discretionary spending power, at these levels, the challenges appear to be reflected in the stock price.
In addition to this inexpensive valuation, Best Buy also pays out an attractive dividend. Shares yield 4.7%, which is well above the market average. The company has been steadily increasing its dividend payout for the past decade-plus, and the annual payout has more than doubled since 2017. Best Buy boosted its quarterly payout from $0.70 a quarter last year to $0.88 a quarter in 2022. This is a consistent dividend payer with a high yield and a great dividend growth story.
Is Best Buy a "best buy"?
In conclusion, much of the bad news seems to be in the rearview mirror and priced into the stock, and Best Buy is a business that is in stronger shape than it was before the pandemic. Shares trade at an inexpensive valuation and the company presents a compelling dividend growth story. Best Buy is carving out a spot for itself in an evolving consumer market and appears sufficiently differentiated from the competition, making it look like a good long-term investment opportunity at these levels.
10 stocks we like better than Best Buy
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Best Buy 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. Michael Byrne has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, and Best Buy. 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 support not only keeps Best Buy's customers satisfied but also makes it a valuable partner for companies like Apple (NASDAQ: AAPL) and Samsung (OTC: SSNL.F) since Best Buy is helping their end users at the point of purchase. A hard reset While comparable-store sales were down 8%, this was partially because Best Buy was lapping a quarter when the pandemic was still driving demand for electronics, computers, and home entertainment and consumers were still flush with stimulus cash. Best Buy's large sales staff gives it the ability to provide post-sale support for products that some customers may have trouble setting up or navigating, which differentiates it from online sellers like Amazon.
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This support not only keeps Best Buy's customers satisfied but also makes it a valuable partner for companies like Apple (NASDAQ: AAPL) and Samsung (OTC: SSNL.F) since Best Buy is helping their end users at the point of purchase. Shares trade at an inexpensive valuation and the company presents a compelling dividend growth story. The Motley Fool has positions in and recommends Amazon, Apple, and Best Buy.
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This support not only keeps Best Buy's customers satisfied but also makes it a valuable partner for companies like Apple (NASDAQ: AAPL) and Samsung (OTC: SSNL.F) since Best Buy is helping their end users at the point of purchase. Is Best Buy a "best buy"? * They just revealed what they believe are the ten best stocks for investors to buy right now... and Best Buy wasn't one of them!
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This support not only keeps Best Buy's customers satisfied but also makes it a valuable partner for companies like Apple (NASDAQ: AAPL) and Samsung (OTC: SSNL.F) since Best Buy is helping their end users at the point of purchase. Within individual product categories, sales of computers and home appliances were down from last year, but up 20% and 45%, respectively, when compared to the same time frame during 2020. That's right -- they think these 10 stocks are even better buys.
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19506.0
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2022-09-03 00:00:00 UTC
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The Price of Winning on Wall Street
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AAPL
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https://www.nasdaq.com/articles/the-price-of-winning-on-wall-street
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nan
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Stocks have seen some wild price swings over the past couple of years; sometimes it feels more like a casino than a market. Emotions can play a big role in how stocks behave day to day, even though a company's growth and financials are what typically drive investment returns over the long term.
In fact, famous investor Peter Lynch once declared that the stomach, not the brain, is the most important organ for investing in the stock market. In other words, how an investor handles volatility can have a lot to do with how their portfolio performs. There is no free lunch on Wall Street; here is why you've got to embrace the ups and downs if you want to score big returns.
Today's blue chip stocks weren't smooth rides
Investors hold up companies like Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Tesla (NASDAQ: TSLA) as no-brainer winners that investors can buy with confidence. The tremendous wealth these stocks have created has a lot to do with that. Imagine one made hypothetical investments of $10,000 into each company's IPO. Over these stocks' lifetimes, those investments would be worth:
Amazon: $13.0 million
Apple: $15.9 million
Tesla: $1.7 million
Investors anchor to the cumulative success of these stocks but often don't realize how stressful the journey was along the way. To enjoy the wealth that Amazon created for investors, one would have had to endure a more than 90% decline during the dot-com crash in the early 2000s. Shares fell so much that Jeff Bezos started his 2001 shareholder letter with the word ouch.
AMZN data by YCharts.
Apple is the largest winner of these three, but investors had to endure three declines of more than 75% and several others of at least 50% over the years. Remember, Apple wasn't Apple back in the early 2000s; investors likely felt their stomachs churn, seeing their investment repeatedly lose most of its value. But those who sold likely never saw the long-term rewards that followed the hard times.
AAPL data by YCharts.
Consider Tesla, one of the most controversial companies on Wall Street, having almost as many die-hard critics as shareholders. Tesla stock will fall 30% to 40% routinely; one wouldn't blame an investor for succumbing to the constant chatter and noise around the company. But that volatility was the price paid for the explosive returns over the past three years.
TSLA data by YCharts.
How to turn thousands into millions
Huge investment returns have a price; investors often must endure volatility's painful ups and downs. By the time Wall Street broadly agrees that a company is a blue chip stock, it's likely too late -- the life-changing returns have already been had. Buying Amazon today will probably prove an intelligent long-term decision, but investors shouldn't count on the same level of returns that turned $10,000 into millions.
The next Amazon, Apple, or Tesla is probably among the rubble today, stocks that the current bear market beat to depressingly low prices. There will probably be investors who realize down the road that they once owned the next big thing, and the market's volatility scared them into selling it.
How do you defend against this? Investors should have a diversified portfolio so that getting some stocks wrong doesn't sink your whole ship. Remember that a stock can only lose 100% of your investment, but the upside is thousands of percentage points. Getting one right can make up for getting a lot wrong.
Most importantly, focus on a company's fundamentals -- its growth, financial health, and overall business model. Jeff Bezos' 2001 shareholder letter started with ouch but proceeded to list all the things Amazon's business was doing right. If you do your homework, diversify, and endure the short-term stress of volatility, you'll put yourself in the best position possible to win on Wall Street.
10 stocks we like better than Amazon
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Amazon wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 17, 2022
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, and Tesla. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Today's blue chip stocks weren't smooth rides Investors hold up companies like Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Tesla (NASDAQ: TSLA) as no-brainer winners that investors can buy with confidence. AAPL data by YCharts. In fact, famous investor Peter Lynch once declared that the stomach, not the brain, is the most important organ for investing in the stock market.
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Today's blue chip stocks weren't smooth rides Investors hold up companies like Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Tesla (NASDAQ: TSLA) as no-brainer winners that investors can buy with confidence. AAPL data by YCharts. How to turn thousands into millions Huge investment returns have a price; investors often must endure volatility's painful ups and downs.
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Today's blue chip stocks weren't smooth rides Investors hold up companies like Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Tesla (NASDAQ: TSLA) as no-brainer winners that investors can buy with confidence. AAPL data by YCharts. Over these stocks' lifetimes, those investments would be worth: Amazon: $13.0 million Apple: $15.9 million Tesla: $1.7 million Investors anchor to the cumulative success of these stocks but often don't realize how stressful the journey was along the way.
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Today's blue chip stocks weren't smooth rides Investors hold up companies like Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Tesla (NASDAQ: TSLA) as no-brainer winners that investors can buy with confidence. AAPL data by YCharts. Remember, Apple wasn't Apple back in the early 2000s; investors likely felt their stomachs churn, seeing their investment repeatedly lose most of its value.
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19507.0
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2022-09-03 00:00:00 UTC
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The Fed Chief Speaks; Wall Street Reacts
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AAPL
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https://www.nasdaq.com/articles/the-fed-chief-speaks-wall-street-reacts
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nan
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nan
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In this podcast, Motley Fool senior analysts Jason Moser and Emily Flippen discuss:
Why long-term investors should not be surprised by Federal Reserve Chairman Jerome Powell's comments.
Snowflake's (NYSE: SNOW) strong week.
Zoom Video Communications (NASDAQ: ZM) shares falling to a two-year low.
Ulta Beauty's strong second quarter sending shares close to an all-time high.
Amazon (NASDAQ: AMZN) making headlines for what it is not planning to do.
The latest from Peloton (NASDAQ: PTON), Electronic Arts (NASDAQ: EA), Nvidia (NASDAQ: NVDA), Salesforce (NYSE: CRM), and Intuit (NASDAQ: INTU).
Plus, Motley Fool senior analyst Maria Gallagher talks with Harvard Business School professor Ranjay Gulati about key insights from his book Deep Purpose: The Heart and Soul of High-Performance Companies.
And to wrap it up, Emily and Jason answer listener questions about QuidelOrtho Corp. (NASDAQ: QDEL) and Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), and they share two stocks on their radar: Doximity (NYSE: DOCS) and Autodesk (NASDAQ: ADSK).
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Walmart
When our award-winning analyst team has an investing tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Walmart wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
Stock Advisor returns as of 2/14/21
This video was recorded on Aug. 26, 2022.
Chris Hill: When Jay Powell speaks, for better or for worse, Wall Street listens. Motley Fool Money starts now.
From Fool global headquarters, this is Motley Fool Money. It's the Motley Fool Money radio show. I'm Chris Hill and joining me in studio, Motley Fool senior analysts Emily Flippen and Jason Moser. Good to see you both.
Jason Moser: Hey.
Emily Flippen: Hey, Chris.
Chris Hill: We've got the latest in big tech, software, and more. We're going to dip into the Fool mailbag and as always, we've got a couple of stocks on our radar. But we begin with the Fed chief. On Friday morning, Federal Reserve Chairman Jay Powell warned of pain ahead as the central bank plans to use its tools forcefully to bring down inflation. Jason, the remarks sent the overall market down. I'm assuming there were some people who were thinking the worst of inflation is behind us. Maybe the Fed chief is going to say that. I don't know, I look at this and I think that's what I was hoping and that's what I want to hear out of my Fed chief. We're going to take care of this.
Jason Moser: I agree with you. It's always funny to see these reactions. The market immediately fell after the language came out. Then recovered and we thought, "OK, that's pretty reasonable reaction," and then the bottom fell out. Yet if you've been paying any attention at all to what's been going on, you shouldn't be surprised by this language at all. I think that what we're seeing as far as the market's reaction, this is essentially short-term profit-taking for what could be construed as potentially dead money, for lack of a better phrase, in the near term. The key is inflation is still with us. The Fed is acknowledging that, they will continue to fight it. We'll learn more in September when they reconvene as far as what they decide to do with interest rates, but I appreciate the perspective. We need to deal with this. It's not a straight line up. Decisions have consequences, and we flooded our economy with a ton of relief capital here recently. That has impacts and it needs to be accounted for, and that's what we're doing. I mean, obviously, that's not the only thing at play here, there's plenty going on around the world that's impacting the global economy. But yeah, this is not surprising. This doesn't seem news to me. I just think the market essentially looks at it as, OK, we're going to sell off and come back when we feel like it's a little bit more certain.
Emily Flippen: Well, about 10:40 this morning, I was feeling really good about myself because I was ready to come on this commentary and say, "Well, look, the market is not going to sell off news that we already know." Then, lo and behold, what does the market do? Exactly that. Here's the thing. This is news we already know. We know that interest rates need to be higher in the face of historic inflation. My speculation is the market just doesn't like being reminded about it.
Chris Hill: Let's get to some individual companies there. We're going to start with Snowflake. Shares of the data cloud business up nearly 30% this week after second-quarter results were better than Wall Street was expecting. You tell me, Emily, was Snowflake that good or were expectations that low?
Emily Flippen: I think you can thank Zoom for Snowflake's strong performance because they reported not too late after Zoom reported, and Zoom had pretty dismal results in terms of its top-line growth. When Snowflake comes out and they say, "Yeah, our product revenue rose 83%, our remaining performance obligations," that's Snowflake's backlog, so future revenue growth, grew an incredible 78%, and their net revenue retention rate continued its impressive trend of above 170%. It was a great reminder to the business that Snowflake is an important partner for its core customers and its move upstream, which is to say its move toward more high-value enterprises, capitalizes based on its usage-based business model. The more enterprise customers they bring in, the more data they have moving onto Snowflake's platform, the more money Snowflake is getting. All very great. Combination of really strong performance, incredible margins, incredible growth, plus very low expectations put out for them this quarter by the performance of their peers.
Chris Hill: Speaking of Zoom Video, shares fell to a two-year low this week after second-quarter results saw slowing growth and the company also scaled back their guidance, Jason.
Jason Moser: Well, I mean, going back to things we shouldn't be terribly surprised about. This to me, again, feels like it's right in line with what you should have been looking for. As management noted in the call here, the majority of revenue is shifted back to the enterprise, but they moved beyond pandemic-buying patterns. We've moved beyond really what we've been dealing with over these past couple of years in this digital transformation, and we talked about it before. A lot of growth was pulled forward and we saw that with a number of businesses, Zoom no exception. Now we're seeing the aftereffects of that, a little bit of a hangover, if you will. I think it is something to note. I mean, this is a good business. It doesn't mean that it's not going to grow going forward. It will grow going forward, but that growth is going to slow down. It's going to normalize a bit. I think that's just the key for investors to keep in mind, this is going to be a bit of a more normalized story than what we've been conditioned toward over the past couple of years. But if you look at the numbers, they weren't all that bad. I mean, it the most impressive in the world, but revenue up 8% from a year ago. You see the number of customers contributing more than $100,000 in trailing-12-month revenue, that was up 37% from a year ago. They now have approximately 204,100 enterprise customers. That's up 18% from a year ago.
Net dollar expansion rate for enterprise customers of 120%. They anticipate the enterprise customer becoming a greater part of the business as time goes on. It's already well over half and that'll continue to grow. All things considered, I mean, Zoom is doing essentially what we expected it to do, seeing tremendous success in things like Zoom Phone, Zoom Contact Center. Those are new investments that they're making and they continue to grow that enterprise side and retain those customers. It's just become a more normalized story now. When you look at their guidance for the full year, somewhere in the neighborhood of $3.66 per share in earnings, that value shares now with the sell-off around 22 times full-year estimates, I think we're looking at a pretty reasonable price for what is a very high-quality business with, I would say, very customer-centric leadership.
Emily Flippen: I wouldn't say this is normalizing. I would say this is below normal. Now, I realize this is a controversial opinion here, but if you look at their underperformance, it's largely due to their free users. Individual people who are going onto their online sales, never connecting with the sales representative. Their enterprise business it just getting started. They are just learning how to deepen monetization with these users. I really think, and I could be wrong about this, I should knock on wood, but I think growth from this point accelerates as long as they execute on their enterprise strategy.
Chris Hill: Peloton shareholders had reason for optimism early in the week when the company announced a partnership with Amazon to sell equipment and apparel on the tech giant's site. The news sent shares of Peloton up more than 20%. But later in the week, the company posted dismal results for the fourth quarter and shares of Peloton fell back to earth, Emily.
Emily Flippen: Where to begin with this story? Let's just say if they had announced a partnership with Amazon in 2020, the stock would have sold off on that news because it probably would have been degrading to the Peloton brand, losing control or their customers and their supply chain. But at this point, they need to move inventory. That's what we saw when Peloton reported their results here, is that they had a huge backlog of more than a billion dollars in inventory sitting on their balance sheet right now. Any partnership for them is good for getting those bikes out the door. But the problem is that it's really not righting the ship quite yet. That was Barry McCarthy's plan. Right this ship and the problem is revenue fell 28% in the quarter. Inventory actually rose. Margins were incredibly poor. Everybody listening right now, guess in your head what you think the gross margin on a Peloton bike is right now. Some of you may know, I'll give you a second to think about it, but it is an astounding negative 98%. They are losing an incredible amount of money on these bikes. The silver lining here has always been the subscription business, though. That grew to more than 50% of their revenue with this quarter. Gross margins there around 68%. Subscriptions, great. Bikes, still a troubled business.
Jason Moser: Now they want you to put those bikes together. They're not getting this stuff professionally put together, you got to do it. It's like IKEA. I mean, that's OK if we're talking about armoire or a bench. I don't know that I want to be putting those bikes together.
Emily Flippen: I put my bike together. Granted, I have a NordicTrack, but I will say it was not easy. It was not a fun experience.
Chris Hill: What are the odds that two to three years from now, we're talking about Amazon acquiring Peloton? What are the odds that this really just paves the way for an acquisition?
Emily Flippen: I will say, I'm not sure if it'd be the smartest move on Amazon's account. Part of that is because I think they'll probably get regulatory question marks here, but also because, look, at-home fitness, as much as I hate to say it, I want to be a believer, it has a history of lacking engagement. We saw the churn rates for Peloton increase this quarter. I don't really know if at-home fitness is ever going to be the great high-margin business that people may want it to be, even if Amazon is the company doing the bidding.
Chris Hill: Ulta Beauty posted big profits in the second quarter and raised guidance for the full fiscal year. Shares of Ulta Beauty up 5% this week and close to an all-time high, Jason.
Jason Moser: Yeah. What a nice turnaround for Ulta here over the last several quarters. Obviously, had a tough time during the pandemic, but things have recovered nicely. The stock is actually up year to date. Like you mentioned, they raised guidance to boot. I mean, you look at these numbers, sales up 16.8%. Earnings per share of $5.70, that was up 25% from a year ago. They are seeing price increases across the board with their brand partners, so that's something to keep in mind. They expect that to continue through the rest of the year. It's not surprising, but that is playing out on the gross margin on a little bit. Gross margin down 20 basis points for the quarter. But comparable sales performed very well, up 14.4%. That was driven by an 8.3% increase in transactions and a 5.6% in average ticket. Seeing an increase there in traffic and ticket is very encouraging, and they spoke to that. They see store traffic recovering nicely, they expect that to continue. BOPUS. Let me give you a guess to what BOPUS is, Chris -- buy online, pick up in store, BOPUS.
Chris Hill: I just assumed it was a face cream.
Jason Moser: I thought it was a makeup line, too, at first. But BOPUS was up 25%. That's of e-commerce sales. That was 25% of e-commerce sales versus 20% a year ago. A lot of folks ordering online, picking up in store, that's nice to see; 38.2 million active loyalty members now, that was up 10%. They continue to repurchase shares, that count is down 15.5% over the last five years. It feels like this is a company that's really got things back on track.
Chris Hill: Amazon made big headlines this week, but it was for the things the company is not planning on doing. We're going to explain after the break, so stay right here. You're listening to Motley Fool Money.
Welcome back to Motley Fool Money. Chris Hill here in studio with Emily Flippen and Jason Moser. Three years ago, Amazon launched a telehealth service called Amazon Care. This week, the company announced it is shutting the telehealth service down, prompting questions about where the company wants to go with its healthcare aspirations, Jason.
Jason Moser: Yeah. I mean, I think the knee-jerk reaction to this news was, wow, they're getting out of telemedicine or healthcare or whatever. I mean, I think the takeaway is clearly not that. It's not that Amazon is giving up on healthcare or even virtual healthcare for that matter, ultimately, I think what this feels like is they just came to the realization it's hard to build, and they could probably make more progress by buying as opposed to building and then building off of what they buy. That is what is really behind that One Medical deal, I think, where they are looking into the primary care market that has a physical and a digital presence there, and it accounts for, I think, future endeavors as well as they continue to dabble in the space. I think that, for Amazon, this is something they do a lot. They try things, sometimes it doesn't work out. They can buy their presence in that market, and they go in more educated about it than ever before. I think they've learned a lot just from trying to build Amazon Care. But ultimately, they just found it wasn't holistic enough. It didn't provide as much as ultimately their customers wanted. I think the big question for me in regards to Amazon healthcare, and I just don't know what the answer to this is, but it's just from a brand perspective. I don't know if folks want healthcare by Amazon. I mentioned earlier in the week, it sounds like banking by Facebook. I mean, at some point or another, is that the brand you trust for that particular experience? I had some interesting interactions with folks on Twitter that given the Amazon's customer-centricity and in success and retail, maybe it would be. I think that's right. I think the question is, will they participate in this healthcare space as it is, or will they be able to get in here and disrupt and change the healthcare space? I think that really speaks to it because if they can disrupt and change things, I think that gives that brand far more credibility in healthcare space than we probably assume today.
Emily Flippen: Jason, you said it so nicely. The way I'd put it is they like to throw stuff at the wall and see what sticks. Healthcare started to slide. Here is another back stepping a bit. I will say, when I think about healthcare by Amazon, One Medical has made a name for itself by being very personable and focused. Amazon, not so much. So I'm questioning the synergies there.
Chris Hill: Also Friday morning, shares of Electronic Arts popped 15% on a media report that Amazon was going buy EA. But the report was shot down. [INAUDIBLE] Amazon, Jason.
Jason Moser: Well, it feels like a lot of deals trying to happen at once. I'm glad this was something that didn't shake out. To me, I feel like even folks who are hoping for this Microsoft-Activision Blizzard deal to go through, this is probably really good news. Because if this news was in fact real, if this was something that was going to happen, I would imagine it would put both Amazon and Microsoft even more so under that microscope of regulators in regard to that deal. So probably just as well that this isn't happening.
Chris Hill: NVIDIA's second-quarter profits and revenue were lower than Wall Street was hoping for. The chipmaker also talked about the challenging conditions in the gaming market, and shares of NVIDIA down a little bit this week, Emily.
Emily Flippen: Well, what goes up must come down, or in this case, what goes up in the first quarter must come down in the second quarter because NVIDIA was looking at some extremely tough comps in comparison to how they did earlier this year. Gaming revenue, as you mentioned, fell 44% from last quarter as consumer demand weakened for things like GPUs, which drive a lot of NVIDIA's results. The good news is that data center and automotive were bright spots in the quarter, both growing significantly year over year. So this is always going to be a very lumpy and cyclical business, depending on chip demand. But NVIDIA remains technologically the leader and very well capitalized. So if you're a shareholder, try not to worry too much about these bumps.
Chris Hill: Salesforce had some nice results in the second quarter, but guidance for the third quarter and the full fiscal year sent shares of the cloud software company down more than 7% this week, Jason.
Jason Moser: Yeah. I wouldn't really worry about that too much. The stock has had a nice little run-up. Honestly, when you look at what Salesforce does, when you look at the number of different ways they can play into this customer relationship management space, they just tackle it from all angles, and they've made some really astute acquisitions over the course of the last several years that are really starting to pay off. Then that really is showing through the numbers. I mean, revenue was $7.7 billion, that was up 26% and right in line with their own expectations. Operating margin down a little bit, 19.9% for the quarter, that was down 50 basis points from a year ago. But Marc Benioff, he did note that of all of the CEOs and leaders he's speaking with, everybody is taking a more measured approach. We're seeing this uncertainty play out in all facets of the economy. So they ratcheted their revenue guidance down very modestly, but maintained their operating margin guidance, however, as they're committed to maintaining cost discipline. When you look at the actual business itself, sales cloud and service cloud are both $6 billion-plus businesses now. In the quarter, they grew 19% and 18%, respectively.
The data cloud business passed $1 billion in revenue. You put those three together along with the service and commerce cloud sides of the business, now all five of their cloud segments are generating better than $1 billion in revenue each per quarter. I mean, that's just tremendous growth. A lot of that really plays back into the acquisitions they've made over the last several years: MuleSoft, Tableau, Slack. Speaking of Slack, revenue of $381 million. It continues to outperform their own expectations. It continues to grow and gain traction with customers. The number of customers spending greater than $100,000 with Slack grew by more than 40% from a year ago as well. All things considered, the business continues to perform very well. They just introduced their first share repurchase authorization ever, $10 billion share repurchase authorization. That's noteworthy, I think, because when you look at the share count, it's up 36% over the last five years, and that is due to dilution, acquisitions and whatnot. So they're going to start trying to bring that back down, return a little value to shareholders. It's interesting they see some value in their shares. The guidance for the full year around $4.72, that puts shares around 36 times full-year estimates, which really isn't out of line for such a high-quality business.
Chris Hill: Intuit closed out the fiscal year in style, fourth-quarter profits and revenue were higher than expected for the financial software company. They also raised their quarterly dividend and authorized a $3.5 billion share buyback plan, Emily.
Emily Flippen: Yeah. You would never know that they recently had to pay a fine of more than $100 million by looking at this quarter, would you? No, Intuit had a stellar year behind them. Revenue rose 32% for the full year, largely driven by self-employed and small business customers. Management continues to speak super fondly of their core customer, the fact that their software is mission-critical for these businesses. So even as the economy weakens, they think that they're going to continue to retain and grow customers. I will say I'm a little bit more cautious than management, and given the fact that if their core customers go out of business, the need for any software does go out the window. But for this quarter and this past year, Intuit is certainly looking up.
Chris Hill: Maybe it was originally a $4 billion buyback plan and they had to cut that $500 million check. Emily Flippen, Jason Moser, we'll see you later in the show. Up next, how companies with purpose perform at a higher level. Stay right here. You're listening to Motley Fool Money.
Welcome back to Motley Fool Money. I'm Chris Hill. Finding companies with purpose is not easy. For some companies, purpose can be a deep motivator for the organization. For others, it's a box that gets checked with a one-day volunteer event for employees. How can you tell the difference? Ranjay Gulati is a professor at the Harvard Business School and author of the book Deep Purpose: The Heart and Soul of High-Performance Companies. Maria Gallagher caught up with Gulati a few months ago to discuss his book and the long road that Etsy took to find a more focused purpose.
Maria Gallagher: Can you go into a little bit the different types of purpose? I know that in the book you talk about convenient purpose and then within that, there are some different elements and then you also have deep purpose. Can you give us a couple of definitions for those?
Ranjay Gulati: You have read my book.
Maria Gallagher: I have.
Ranjay Gulati: I can see that. Look, again, I ended up with a taxonomy of convenient purpose because there were so many variations of what I call convenient or shallow purpose. The worst kind, the most egregious of purpose is disguise. That's the example of the Enron, the Theranos and others where purpose is just a virtue cloak. The second was purpose on the side or purpose as CSR. It's like, oh, yeah, let's have a little foundation over here, let's do a little charity over there. We'll allow employees to go and volunteer for two days a year, and we'll call that our corporate purpose initiative. That's purpose on the side. Then I found another version which was purpose as win-win. Meaning, I'm only going to do things that are good for me and good for society. Meaning, I do them both simultaneously. People have called this a dangerous concept because it became another excuse to hide and say I only do things that are good for me. So I had to contrast that with what I call deep purpose. Because if you're going to unlock the financial performance advantages and even social impact advantages of purpose, you have to really think deep about it and how do you make it part of the very DNA of your company.
Maria Gallagher: I think something that I really admire about the way you're talking about purpose is it's really getting to the nuance and the kind of the gray area in which a lot of purpose lives because we have so much talk about win-win and how in this perfect world, every company is just doing amazing things for the world. But I think when you talk about the kind of contrast between insiders, they want to reform capitalism, but they want their own financial fortunes more than they necessarily want that type of reform. I think that's a broader question a lot of people are talking about in terms of what the overall system that we're a part of looks at. This is kind of a long-winded way of asking just how do you think about that kind of push and pull of saying that you can't just be morally neutral. A lot of companies I know you talk about in the book, with Etsy, that you have to make some sort of choices that may hurt some people. So how do you think about that type of overarching idea of what that push and pull and that nuance looks like?
Ranjay Gulati: Like what's happening all around us today, Maria, everything has gotten polarized. Everything is taken to its extreme and each side takes the purest view and says, if you are in violation of this purist idealistic, perfect view, then you are completely bad. What I discovered was that, today, businesses have multiple stakeholders to serve. So their purpose needs to think about employees, customers, suppliers, community, society, planet, and nation-states even now. All this stuff is happening, and so you can't satisfy everybody all the time. This perfect win-win doesn't happen all the time. So you're going to have to make choices, trade-offs, hard decisions. No one's going to be perfectly happy with you, and I call that walking on the razor's edge. But having a purpose allows you to clarify to everybody this is what I'm doing and why. I'll tell you a short story here that came out of my research. One of the companies, as you mentioned, I'd studied was Etsy. Etsy was a wonderful company started by a very idealistic founder who was a carpenter and he wanted to sell his crafts online. So he built this little marketplace for craftspeople like himself to sell their wares. This thing grew beyond what he probably ever imagined. Next thing you know, it's like selling over a billion dollars of product and the company's outgrown him. They bring in a CEO to take over who grows the company, but keeps that DNA that we're really here to serve the sellers and shareholders. We're not here to make money. We're kind of a socially oriented marketplace. The employees were told, have yoga classes, enjoy, work as hard as you can, but we are working to this great things. What starts to happen after they go public is their spending is growing, their hiring is growing, their marketing and the spending is growing, and revenue is flat. Now, what does that tell you? That here's something wrong with this business. Anyway, with shareholder pressure now, the CEO gets fired and they put a member of the board who's run e-commerce companies, Josh Silverman, as CEO.
The day before he takes the job, he takes his teenage daughter for a walk and he tells her, "In the coming days and weeks, you're going to hear some horrible things about me in the press, from employees. I just hope you believe that they are not true. I'm doing what I believe is the right thing." He has to go and they have to lay off people because they've hired up too much. They have to curb their marketing spend, their technologies were all over the place, and even their social impact was not measured really and all over the place. But the blowback was huge. The labels used to describe him were harsh. His idea was, "I want to build Etsy back into a profitable and socially impactful company," which he has. But you see that's why the razor's edge, walking on the razor. I looked at other companies, too, that did it the other way. Gotham Greens is a fascinating company. It's an agrotech company that does urban farming on large rooftops in New York City where you are, Maria. They have a farm on top of Whole Foods. The idea is it reduces spoilage, reduces transportation, and of course allows them to deliver the product fresh. Now, packaging was a huge issue. Customers like us, we want it in a package. We don't want to have a loose lettuce and loose things like that. So they said, "OK, what packaging?" The only packaging they could use was plastic because plastic is the only thing still today that keeps it fresh longest. Now here you are a green-oriented company and you have to use plastic, and they said, "We had to, but we're going to keep an eye and look for options." This idea that purpose means you're perfect on every dimension is an illusion. I think it's all about walking on the razor's edge. As long as you have clarity of what your intent is, you communicate it clear to all stakeholders and say, look, this is what we're doing, this is why we're doing it, etc. Etsy says we have three social impact goals.
Not four, not five, three: DEI, environment, and economics of the seller. That's it. How to navigate a much more complicated world we're in right now where all of us are being called in different directions. If you just take employees, look at the "great resignation." Employees expect more of work. We expect more meaning out of work. What are companies doing for that? Customers want more trustworthy companies that they feel they can trust. They don't want to be duped anymore or deceived or misled, manipulated even. The planet is also becoming an issue now. They're saying even though the planet may not have a voice, but companies are being expected to deliver on this. Then social issues. What do you believe about what's happening in Ukraine today? Tell me, what's your point of view? I think what's happening is most people are reacting to these things, pressures, and what's the minimum we need to do. Purpose allows you to be proactive. You've built an anchor for yourself. You said that's who we are, and we're going to do the best within our purpose statement and our frame of reference. I'm surprised why so few companies still have deep purpose orientation.
Chris Hill: Coming up after the break, Emily Flippen and Jason Moser return with a couple of stocks on their radar. Stay right here. You're listening to Motley Fool Money. 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 once again with Emily Flippen and Jason Moser. Final reminder about FoolFest, our annual investing conference, Aug. 29th and 30th. We're going to talk investing strategies, stock ideas. We have a great lineup of speakers. We're going to be recording our podcast from the events side in Washington, D.C. FoolFest is free for Motley Fool members, and if you're not yet a member, you can sign up for our Stock Advisor service. Go to fool.com/foolfest for all the details. You get a complementary digital pass to this two-day event. Again, that's fool.com/foolfest. Our email address is podcast@fool.com. Got a question from Tim in Wisconsin who writes, "In August of last year, one of your analysts, I believe it was Emily Flippen, talked about Quidel Corporation, ticker symbol QDEL. They have since merged with an orthopedic medical company, Ortho Clinical Diagnostics Holdings, and the stock hasn't done much since then. I'm curious what your thoughts are on the company at this time." Thanks for the question, Tim. Emily?
Emily Flippen: Yeah, it does sound like something I would say. Quidel is a really interesting business. For anybody who is unfamiliar with this company, which I wouldn't be surprised, they're relatively small, they're a diagnostics business. Pre-pandemic, their bread and butter was flu tests. Obviously, that changed when COVID hit and the business dramatically shot up. They're the makers of the QuickVue COVID test. Now they're just pushing into more of the diagnostics, and that's exactly what this acquisition of Ortho does. The company did renamed themselves to QuidelOrtho, which I think they could have come up with something better. But it was a $6 billion deal, and this was the combination of the two companies. Ortho focuses on in vitro diagnostics. So it was accretive to what Quidel's core business is. It's growing faster than Quidel's core business, so also hopefully going to be great for their growth engine in the future. On the Quidel side, things are still looking good, still a big fan of this company. They're doing a combined flu A/B and COVID tests that even as the pandemic wanes, I think, should retain traction with people when they get sick, going to their Walgreens or CVS to get tested. But the big question mark is still their Savannah molecular diagnostics system, which was probably the reason why I mentioned this company in the first place. They've been trying to get that out the door for a while. They have tests going in the European Union right now with expectations of launching in the U.S. in hopefully 2023, but we'll see.
Chris Hill: You can email your questions to podcast@fool.com or you can call the Motley Fool Money hotline 703-254-1445. Let's go to our man behind the glass, Dan Boyd. Dan, we've got a question on the hotline?
Gail: Hi, this is Gail from Hershey, Pennsylvania. My question is, do you consider Berkshire Hathaway a riskier investment than it was five years ago now that one company, Apple, makes up 40% of its invested holdings? I'd love to hear your thoughts and also how you think Warren Buffett might answer that same question. Thanks.
Chris Hill: Thank you, Gail, for listening and for a great question. It's really two questions, which I love, Jason, that it's like, what do you think Buffett would say?
Jason Moser: Got an investing question? Better call Fool. Let's get to it because I love the spirit of this question. I'll try to answer this how Buffett might, but as you look at the long-term investments sector of the business, it represents 40% of total assets on the balance sheet. Now, many of those produce very healthy dividend streams, Apple included, and you're looking at a company, Berkshire Hathaway, though, that also generated $290 billion in revenue over the last 12 months. Dividends are a very, very small part of that revenue. I think that Buffett would look into the shareholder letter and refer us to what he defines or what he calls the big four giants. The first is the collection of insurance companies, which is that represents the lion's share of that revenue that I just mentioned. The next is Apple. Let's not dismiss the fact that it does represent about 40% of that overall investment portfolio, and it also accounted for $785 million in dividends for Berkshire Hathaway last year. Remember, every year that goes by that they collect those dividends, that actually just reduces their effective cost basis in that investment. Given that we know they're going to hang on to those shares for as long as they possibly can, that should really only continue to get better over time. But then you look at the other two parts of that big four giants, you've got BNSF, which is the railroad, you've got Berkshire Hathaway Energy. So all things together, I think you look at the nature of its other investments, I think it makes the investment portfolio even more attractive because all of these other aspects of the business are so ultimately reliable. Insurance, I mean, that's what we talk about that business time and time again, it's so reliable. Energy, rail, I mean, those are really strong competitive advantages in this overall business that affords Berkshire Hathaway the luxury of taking those risks with an investment portfolio like this and concentrating on what they see as the biggest long-term winners. Is there some risk in Apple? Sure. But I think that risk is fairly low when you look at it in the context of other investment ideas out there.
Chris Hill: We were talking earlier in the show about Amazon and whether or not they would brand their healthcare initiative around their core company name. You look at Berkshire Hathaway, they've done very little of that. They've done very little of spreading around the Berkshire Hathaway name to businesses they have acquired.
Jason Moser: Yeah. That seems to be really right in line with their mentality. I mean, just as much as when they buy those businesses and bring it into the fold, they want the leaders of those businesses to continue leading those businesses. It's not all about we want you to be Berkshire Hathaway. They want some autonomy there, and I think that plays into their brand as well.
Chris Hill: Nobody wants Berkshire Hathaway candy. We want See's Candies, not the Berkshire Hathaway candy. Let's get to the stocks on our radar this week. Our man behind the glass, Dan Boyd, is going to hit you with a question. Emily Flippen, you're up first. What are you looking at this week?
Emily Flippen: I'm looking at Doximity. The ticker is DOCS. For investors who are unfamiliar, Doximity runs a platform for doctors. It's like a social networking platform, but they monetize mainly through ads driven by pharmaceutical companies. You can imagine it as like a digital pharmaceutical rep, if you're going to go that far, but they've expanded their business into things like telehealth and physician scheduling, faxing, connecting. So doing a lot more than just any one thing. I will say, though, this past quarter did not look great for Doximity. Ad revenue significantly fell off as pharmaceutical companies tighten their belts a bit for ad budgets, but the fundamentals for this business are still very strong. They have incredible nearly 50% free cash flow margins. A highly invested founder/CEO in Jeff Tangney, and their engagement has "never been higher." While I'm still nervous about what the ad revenue could look like over the next few quarters, the fundamentals remain strong.
Chris Hill: Dan, question about Doximity?
Dan Boyd: Sure thing, Chris. Doximity, great name, been on the record talking about that before. Emily, who exactly are the customers for Doximity?
Emily Flippen: The customers are the pharmaceutical companies. I will go to the grave saying this because Doximity themselves say, "We always try to serve the physicians," and it's true they do want to serve the physicians, but the person who is writing their check are pharmaceutical companies for the most part. So they need to keep them satisfied first.
Chris Hill: It's the difference between consumers and customers. Customers are the ones who pay you.
Emily Flippen: Exactly.
Chris Hill: Jason Moser, what are you looking at this week?
Jason Moser: Yeah. Autodesk earnings came out this week, ticker ADSK. Very respectable quarter in what is obviously a very challenging time for all. Remember, Autodesk is in the business of computer-aided design. Total revenue grew 17%. They grew their operating margin 5 percentage points. Total billings up 17% to $1.2 billion. Remember, Autodesk is mostly a subscription business, and subscription plan revenue grew 17% with net retention rate in that 100%-110% range that management targets. Remember that net retention rate, that's what measures the year-over-year change in recurring revenue for the population of customers that existed one year ago. That's why they track that metric. But the stock itself right now is valued around 32 times full-year earnings estimates. I don't think that's out of the ordinary for this business. Fairly reliable subscription model and a very strong reputation, the computer-aided design market.
Chris Hill: Dan, question about Autodesk?
Dan Boyd: Sure thing, Chris and Jason, I suppose. Here's a more of a fundamental investing question for you. I bought Autodesk early last year, what do you call the opposite of buying the dip? Because that's what I did.
Jason Moser: I feel like I can let Chris answer that.
Chris Hill: I was going to say I did that, not with Autodesk, but with a couple of other companies as well.
Jason Moser: Buying the top?
Chris Hill: Yeah, buying the top.
Jason Moser: Buying the peak.
Dan Boyd: Sure, I guess. Let's hope that there's a dip between two peaks sometime in the future because, boy, it's not been an easy ride so far.
Chris Hill: I almost hesitate to ask, Dan, what do you want to add to your watch list this week?
Dan Boyd: Well, I'm always watching Autodesk since I'm a shareholder, so I'm going to go with Doximity. Again, I just love the name. Just rolls right off the tongue.
Chris Hill: A great ticker symbol, too.
Dan Boyd: Absolutely.
Chris Hill: DOCS, great ticker symbol. Emily Flippen, Jason Moser, thanks so much for being here.
Emily Flippen: Thanks, Chris.
Chris Hill: Keep the emails coming to podcast@fool.com and give us a call 703-254-1445, the Motley Fool Money hotline. That's going to do it for this week's show. The show is mixed by Dan Boyd. I'm Chris Hill, thanks for listening and 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. 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. Chris Hill has positions in Activision Blizzard, Amazon, Apple, Etsy, Intuit, Microsoft, and Nvidia. Dan Boyd has positions in Activision Blizzard, Amazon, Autodesk, and Berkshire Hathaway (B shares). Emily Flippen has positions in Doximity, Inc., Peloton Interactive, and Ulta Beauty. Jason Moser has positions in Amazon, Apple, Autodesk, and Etsy. The Motley Fool has positions in and recommends Activision Blizzard, Amazon, Apple, Autodesk, Berkshire Hathaway (B shares), Doximity, Inc., Etsy, Intuit, Meta Platforms, Inc., Microsoft, Nvidia, Peloton Interactive, QuidelOrtho Corporation, Salesforce, Inc., Snowflake Inc., Ulta Beauty, and Zoom Video Communications. The Motley Fool recommends CVS Health, CVS Health Corporation, and Electronic Arts 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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In this podcast, Motley Fool senior analysts Jason Moser and Emily Flippen discuss: Why long-term investors should not be surprised by Federal Reserve Chairman Jerome Powell's comments. Plus, Motley Fool senior analyst Maria Gallagher talks with Harvard Business School professor Ranjay Gulati about key insights from his book Deep Purpose: The Heart and Soul of High-Performance Companies. The Motley Fool has positions in and recommends Activision Blizzard, Amazon, Apple, Autodesk, Berkshire Hathaway (B shares), Doximity, Inc., Etsy, Intuit, Meta Platforms, Inc., Microsoft, Nvidia, Peloton Interactive, QuidelOrtho Corporation, Salesforce, Inc., Snowflake Inc., Ulta Beauty, and Zoom Video Communications.
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Plus, Motley Fool senior analyst Maria Gallagher talks with Harvard Business School professor Ranjay Gulati about key insights from his book Deep Purpose: The Heart and Soul of High-Performance Companies. The Motley Fool has positions in and recommends Activision Blizzard, Amazon, Apple, Autodesk, Berkshire Hathaway (B shares), Doximity, Inc., Etsy, Intuit, Meta Platforms, Inc., Microsoft, Nvidia, Peloton Interactive, QuidelOrtho Corporation, Salesforce, Inc., Snowflake Inc., Ulta Beauty, and Zoom Video Communications. The Motley Fool recommends CVS Health, CVS Health Corporation, and Electronic Arts and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple.
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Chris Hill: Salesforce had some nice results in the second quarter, but guidance for the third quarter and the full fiscal year sent shares of the cloud software company down more than 7% this week, Jason. Welcome back to Motley Fool Money, Chris Hill here in studio once again with Emily Flippen and Jason Moser. The Motley Fool recommends CVS Health, CVS Health Corporation, and Electronic Arts and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple.
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Chris Hill: Salesforce had some nice results in the second quarter, but guidance for the third quarter and the full fiscal year sent shares of the cloud software company down more than 7% this week, Jason. What are companies doing for that? Chris Hill: Thank you, Gail, for listening and for a great question.
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19508.0
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2022-09-02 00:00:00 UTC
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POLL-Taiwan August exports seen up for 26th straight month
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AAPL
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https://www.nasdaq.com/articles/poll-taiwan-august-exports-seen-up-for-26th-straight-month
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nan
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nan
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For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWCPIY%3DECI
Exports median forecast +9.5% y/y (prior month +14.2%)
Imports median forecast +7.1% y/y (prior month +19.4%)
Balance median forecast $4.23 bln (prior month $5.03 bln)
CPI median forecast +3.05% y/y (prior month +3.36%)
Trade due Wednesday, Sept 7, 4:00 p.m. (0800 GMT)
CPI due Tuesday, Sept 6, 4:00 p.m. (0800 GMT)
TAIPEI, Sept 2 (Reuters) - Taiwan's exports likely rose for the 26th straight month in August although at a slower pace than in July, amid fears of a global recession, uncertainties due to the Ukraine conflict, and COVID-19 flare-ups in China, according to a Reuters poll.
Taiwan, a global hub for chip production and a key supplier to Apple Inc AAPL.O, is one of Asia's leading exporters of technology goods. The trade data is seen as an important gauge of world demand for tech gadgets.
Exports last month were estimated to have risen 9.5% from a year earlier, a Reuters poll of 13 analysts showed on Friday, slower than the 14.2% jump in July.
The export forecasts all predicted increases but ranged widely between 3% and 12.06%, reflecting uncertainties over the global economy, supply chain disruptions due to pandemic lockdowns in China, and Russia's invasion of Ukraine.
Taiwan's Finance Ministry predicted August exports would increase by 8% to 12% from a year earlier.
Separately, the consumer price index was expected to have risen 3.05% in August from a year earlier, a slightly slower rate than 3.36% in July.
The inflation data will be released on Tuesday, followed by trade data on Wednesday.
(Poll compiled by Anant Chandak and Carol Lee; Reporting by Ben Blanchard; Editing by Edmund Klamann)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taiwan, a global hub for chip production and a key supplier to Apple Inc AAPL.O, is one of Asia's leading exporters of technology goods. Exports last month were estimated to have risen 9.5% from a year earlier, a Reuters poll of 13 analysts showed on Friday, slower than the 14.2% jump in July. The export forecasts all predicted increases but ranged widely between 3% and 12.06%, reflecting uncertainties over the global economy, supply chain disruptions due to pandemic lockdowns in China, and Russia's invasion of Ukraine.
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Taiwan, a global hub for chip production and a key supplier to Apple Inc AAPL.O, is one of Asia's leading exporters of technology goods. For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWCPIY%3DECI Exports median forecast +9.5% y/y (prior month +14.2%) Imports median forecast +7.1% y/y (prior month +19.4%) Balance median forecast $4.23 bln (prior month $5.03 bln) CPI median forecast +3.05% y/y (prior month +3.36%) Trade due Wednesday, Sept 7, 4:00 p.m. (0800 GMT) CPI due Tuesday, Sept 6, 4:00 p.m. (0800 GMT) TAIPEI, Sept 2 (Reuters) - Taiwan's exports likely rose for the 26th straight month in August although at a slower pace than in July, amid fears of a global recession, uncertainties due to the Ukraine conflict, and COVID-19 flare-ups in China, according to a Reuters poll. Exports last month were estimated to have risen 9.5% from a year earlier, a Reuters poll of 13 analysts showed on Friday, slower than the 14.2% jump in July.
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Taiwan, a global hub for chip production and a key supplier to Apple Inc AAPL.O, is one of Asia's leading exporters of technology goods. For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWCPIY%3DECI Exports median forecast +9.5% y/y (prior month +14.2%) Imports median forecast +7.1% y/y (prior month +19.4%) Balance median forecast $4.23 bln (prior month $5.03 bln) CPI median forecast +3.05% y/y (prior month +3.36%) Trade due Wednesday, Sept 7, 4:00 p.m. (0800 GMT) CPI due Tuesday, Sept 6, 4:00 p.m. (0800 GMT) TAIPEI, Sept 2 (Reuters) - Taiwan's exports likely rose for the 26th straight month in August although at a slower pace than in July, amid fears of a global recession, uncertainties due to the Ukraine conflict, and COVID-19 flare-ups in China, according to a Reuters poll. Exports last month were estimated to have risen 9.5% from a year earlier, a Reuters poll of 13 analysts showed on Friday, slower than the 14.2% jump in July.
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Taiwan, a global hub for chip production and a key supplier to Apple Inc AAPL.O, is one of Asia's leading exporters of technology goods. Exports last month were estimated to have risen 9.5% from a year earlier, a Reuters poll of 13 analysts showed on Friday, slower than the 14.2% jump in July. Taiwan's Finance Ministry predicted August exports would increase by 8% to 12% from a year earlier.
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19509.0
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2022-09-02 00:00:00 UTC
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Social media app Parler returns to Google's Play Store
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AAPL
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https://www.nasdaq.com/articles/social-media-app-parler-returns-to-googles-play-store-0
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nan
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nan
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Adds Parler's statement
Sept 2 (Reuters) - Parler, a social media app popular with U.S. conservatives, is returning to Google's app store more than 1-1/2 years after the Alphabet Inc-owned GOOGL.O company removed it following the U.S. Capitol riots in January 2021.
The app was launched in 2018 and styled itself as a free-speech space for those seeking an alternative to platforms such as Twitter TWTR.N. It quickly gained traction from supporters of former U.S. President Donald Trump.
However, major tech platforms cut ties with Parler for failing to police violent content that led to the attack on the U.S. Capitol by Trump supporters.
The app is now being reinstated after it undertook a series of measures to moderate content on the platform, including features to block abusive users and remove content that could incite violence, a Google spokesperson said.
Parler has substantially modified its app to comply with Play Store's policies and will be available for download from Friday, the spokesperson added.
"Parler has a strong commitment to free speech and despite the market duopoly, is working to provide options and choices for the millions of voices currently being censored or suppressed based on their viewpoint," said Christina Cravens, Parler's marketing chief.
To be sure, Parler had made its app available for Android phones through a separate version that could be downloaded on its website after it was removed from Play Store.
Apple Inc AAPL.O reinstated the app on its App Store in May last year.
(Reporting by Eva Mathews in Bengaluru; Editing by Devika Syamnath)
((Eva.Mathews@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 reinstated the app on its App Store in May last year. However, major tech platforms cut ties with Parler for failing to police violent content that led to the attack on the U.S. Capitol by Trump supporters. Parler has substantially modified its app to comply with Play Store's policies and will be available for download from Friday, the spokesperson added.
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Apple Inc AAPL.O reinstated the app on its App Store in May last year. Adds Parler's statement Sept 2 (Reuters) - Parler, a social media app popular with U.S. conservatives, is returning to Google's app store more than 1-1/2 years after the Alphabet Inc-owned GOOGL.O company removed it following the U.S. Capitol riots in January 2021. However, major tech platforms cut ties with Parler for failing to police violent content that led to the attack on the U.S. Capitol by Trump supporters.
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Apple Inc AAPL.O reinstated the app on its App Store in May last year. Adds Parler's statement Sept 2 (Reuters) - Parler, a social media app popular with U.S. conservatives, is returning to Google's app store more than 1-1/2 years after the Alphabet Inc-owned GOOGL.O company removed it following the U.S. Capitol riots in January 2021. The app is now being reinstated after it undertook a series of measures to moderate content on the platform, including features to block abusive users and remove content that could incite violence, a Google spokesperson said.
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Apple Inc AAPL.O reinstated the app on its App Store in May last year. The app was launched in 2018 and styled itself as a free-speech space for those seeking an alternative to platforms such as Twitter TWTR.N. However, major tech platforms cut ties with Parler for failing to police violent content that led to the attack on the U.S. Capitol by Trump supporters.
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19510.0
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2022-09-02 00:00:00 UTC
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Bull of the Day: Taiwan Semiconductor (TSM)
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AAPL
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https://www.nasdaq.com/articles/bull-of-the-day%3A-taiwan-semiconductor-tsm
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nan
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nan
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Taiwan Semiconductor TSM is a central player in the manufacture of chips for companies like Apple, NVIDIA, and Marvell.
My colleague Derek Lewis profiled TSM last month and highlighted the company's stunning doubling of revenue in less than 3 years.
This year's topline will ramp a projected 37% to nearly $78 billion, while profits are expected to top $6.30 for 53% growth.
In 2021, Apple AAPL was the largest customer of the Taiwanese semiconductor foundry, aka TSMC, contributing a quarter of the company's revenues.
Why TSM Services Are In High Demand
TSM is known as a "fab" or "foundry" for chip making. They take the designs of major semiconductor companies and execute their precise -- and top-secret proprietary -- manufacturing parameters.
And this precision and protected privacy has accelerated to new levels in the past few years.
Or maybe I should say it has "shrunk" to new levels.
Because Moore's Law about chips doubling in power as they shrink in half every 18 months or so has been reaccelerated after leveling off in the past decade.
This means that chips have entered what I call The Nanosphere.
A nanometer is one-billionth of a meter. And chip micro-circuitry has gone under 10 nanometers in the past few years.
That's why smartphones can do more even as they shrink.
And why NVIDIA NVDA can cram 50 billion transistors into the space of a shoebox for their advanced GPU (graphics processiing unit) cards that stack together for artificial intelligence engines in the DGX system.
This year, Taiwan Semi is helping major chip designers go to 5 nanometers (nm) and even 3nms!
To illustrate the microscopic scale of going sub-10nm, imagine how big the coronavirus might be.
Fact: the coronavirus is around 50 nanometers!
And TSM is the premier foundry for going sub-10nm.
Their only real competition is Samsung.
What if NVDA Stumbles?
Since NVIDIA might be TSM's third or second biggest customer, investors might be concerned about this recent news...
NVDA shares plunged 6.6% in Wednesday’s extended trading session after it revealed that the U.S. government told it to stop exporting top artificial intelligence (AI) chips to China and Russia.
In a filing with the Securities and Exchange Commission, NVIDIA disclosed that the U.S. government informed it on Aug 26 about imposing a new licensing requirement, effective immediately, for its A100, A100X and forthcoming H100 integrated circuit sales in China and Russia.
The government has also banned NVIDIA from exporting DGX or any other systems that incorporate A100 or H100 integrated circuits.
The new licensing requirements will also be implied on any future chip designs developed by NVIDIA that have a threshold greater than or equivalent to A100. Additionally, any systems developed in the future incorporating the aforementioned types and thresholds will also fall under export restrictions.
With the new licensing requirements, the U.S. government intends to "address the risk that the covered products may be used in, or diverted to, a 'military end use' or 'military end user' in China and Russia," per NVDA in the SEC filing.
Export Restrictions to Hurt NVIDIA Sales
NVIDIA's A100 and H100 are its highest-performance chips used in data centers for AI, data analytics and computing applications. Though the company does not sell products to customers in Russia, the new licensing requirements are going to significantly hurt its data center chip sales in China.
The newly imposed restrictions are likely to impact the company’s ability to support the existing customers of A100 as well as complete the development of H100 timely. This could also require NVIDIA to transition some of its operations outside China.
The restrictions are expected to hamper NVIDIA’s business in China from where the company is expecting to generate $400 million in revenues from the sale of the aforementioned chips in the third quarter of fiscal 2023. The company warned that it may lose revenues if Chinese firms decide not to buy alternative NVIDIA products.
The latest restriction is a new blow to NVIDIA, which is already being hurt by the weakening demand for its chips used in gaming products. Last week, the company reported revenues of $6.7 billion for the second quarter of fiscal 2023, way lower than its May 2022 forecast of $8.10 billion (+/-2%), due to weaker sales across its Gaming and Data Center business segments.
NVIDIA's Gaming segment revenues plunged 33% year over year due to a lower sell-in of Gaming products, reflecting reduced channel partner sales due to macroeconomic headwinds. Although Data Center revenues jumped 61% year over year, the company stated that sales were below expectations due to ongoing supply-chain disruptions and lower sales to China’s hyperscale customers, who are affected by economic conditions.
Considering the current business environment, the company issued dim revenue guidance for the third quarter, wherein it expects to generate $5.9 billion (+/- 2%) in sales, approximately 17% lower than the year-ago quarter’s revenues. Looking at the latest U.S. government’s restriction on chip sales to China, the company is highly probable to report third-quarter revenues way lower than its August 2022 guidance.
Bottom line on TSM: Despite NVDA's downfall, with the SOX index down 35% since its highs and TSM down 43%, it seems the best value in chips right now trading near 13X EPS. Buy some TSM.
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
Taiwan Semiconductor Manufacturing Company Ltd. (TSM): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
NVIDIA Corporation (NVDA): 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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In 2021, Apple AAPL was the largest customer of the Taiwanese semiconductor foundry, aka TSMC, contributing a quarter of the company's revenues. Apple Inc. (AAPL): Free Stock Analysis Report And why NVIDIA NVDA can cram 50 billion transistors into the space of a shoebox for their advanced GPU (graphics processiing unit) cards that stack together for artificial intelligence engines in the DGX system.
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In 2021, Apple AAPL was the largest customer of the Taiwanese semiconductor foundry, aka TSMC, contributing a quarter of the company's revenues. Apple Inc. (AAPL): Free Stock Analysis Report NVDA shares plunged 6.6% in Wednesday’s extended trading session after it revealed that the U.S. government told it to stop exporting top artificial intelligence (AI) chips to China and Russia.
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In 2021, Apple AAPL was the largest customer of the Taiwanese semiconductor foundry, aka TSMC, contributing a quarter of the company's revenues. Apple Inc. (AAPL): Free Stock Analysis Report The restrictions are expected to hamper NVIDIA’s business in China from where the company is expecting to generate $400 million in revenues from the sale of the aforementioned chips in the third quarter of fiscal 2023.
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In 2021, Apple AAPL was the largest customer of the Taiwanese semiconductor foundry, aka TSMC, contributing a quarter of the company's revenues. Apple Inc. (AAPL): Free Stock Analysis Report Because Moore's Law about chips doubling in power as they shrink in half every 18 months or so has been reaccelerated after leveling off in the past decade.
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19511.0
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2022-09-02 00:00:00 UTC
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Social media app Parler returns to Google's Play Store
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AAPL
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https://www.nasdaq.com/articles/social-media-app-parler-returns-to-googles-play-store
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nan
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nan
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Sept 2 (Reuters) - Parler, a social media app popular with U.S. conservatives, is returning to Google's app store more than 1-1/2 years after the Alphabet Inc-owned GOOGL.O company removed it following the U.S. Capitol riots in January 2021.
The app was launched in 2018 and styled itself as a free-speech space for those seeking an alternative to platforms such as Twitter TWTR.N. It quickly gained traction from supporters of former U.S. President Donald Trump.
However, major tech platforms cut ties with Parler for failing to police violent content that led to the attack on the U.S. Capitol by Trump supporters.
The app is now being reinstated after it undertook a series of measures to moderate content on the platform, including features to block abusive users and remove content that could incite violence, a Google spokesperson said.
Parler has substantially modified its app to comply with Play Store's policies and will be available for download from Friday, the spokesperson added.
Parler did not immediately respond to a request for comment.
To be sure, Parler had made its app available for Android phones through a separate version that could be downloaded on its website after it was removed from Play Store.
Apple Inc AAPL.O reinstated the app on its App Store in May last year.
(Reporting by Eva Mathews in Bengaluru; Editing by Devika Syamnath)
((Eva.Mathews@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.
|
Apple Inc AAPL.O reinstated the app on its App Store in May last year. However, major tech platforms cut ties with Parler for failing to police violent content that led to the attack on the U.S. Capitol by Trump supporters. Parler has substantially modified its app to comply with Play Store's policies and will be available for download from Friday, the spokesperson added.
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Apple Inc AAPL.O reinstated the app on its App Store in May last year. Sept 2 (Reuters) - Parler, a social media app popular with U.S. conservatives, is returning to Google's app store more than 1-1/2 years after the Alphabet Inc-owned GOOGL.O company removed it following the U.S. Capitol riots in January 2021. However, major tech platforms cut ties with Parler for failing to police violent content that led to the attack on the U.S. Capitol by Trump supporters.
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Apple Inc AAPL.O reinstated the app on its App Store in May last year. Sept 2 (Reuters) - Parler, a social media app popular with U.S. conservatives, is returning to Google's app store more than 1-1/2 years after the Alphabet Inc-owned GOOGL.O company removed it following the U.S. Capitol riots in January 2021. The app is now being reinstated after it undertook a series of measures to moderate content on the platform, including features to block abusive users and remove content that could incite violence, a Google spokesperson said.
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Apple Inc AAPL.O reinstated the app on its App Store in May last year. The app was launched in 2018 and styled itself as a free-speech space for those seeking an alternative to platforms such as Twitter TWTR.N. However, major tech platforms cut ties with Parler for failing to police violent content that led to the attack on the U.S. Capitol by Trump supporters.
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19512.0
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2022-09-02 00:00:00 UTC
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7 Best Nancy Pelosi Stocks to Buy Now
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AAPL
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https://www.nasdaq.com/articles/7-best-nancy-pelosi-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
Editor’s note: This article is regularly updated with the latest information.
It’s been a rough time for investors on Wall Street lately, and the pain has shown no signs of slowing down. So, why not take a look at where politicians are putting their money to spark your own investing ideas — specifically, Nancy Pelosi stocks?
This is a great source of information, as investments made by politicians like the Speaker of the House are public information. And why wouldn’t you want to know where they are investing?
Well, this has been a hot topic for some time. And in February, Congress moved to ban its members from trading stocks — even after “months of resistance” from Pelosi.
7 Dividend Stocks to Buy and Hold Forever
Overall, though, this isn’t about what side of the aisle you’re on. It’s about looking at some of the best investments you can make based on the Speaker of the House’s financial moves. So, here are the best Nancy Pelosi stocks to consider.
Nancy Pelosi Stocks to Buy: Microsoft (MSFT)
Source: Asif Islam / Shutterstock.com
One of the biggest technology firms in the world, Microsoft (NASDAQ:MSFT) is a vital component of the business ecosystem. Speaking as a contributor for many financial publications, I really couldn’t do what I do without Microsoft’s Software as a Service (SaaS) solutions.
With that in mind, it appears the top policymakers in Washington feel the same way. MSFT stock is one of the recent names to pop up on the list of best Nancy Pelosi stocks to buy, with the House Speaker purchasing (on May 24) 50 call options with a strike price of $180 and an expiration date June 16, 2023.
On a year-to-date (YTD) basis, MSFT stock is down about 22%. However, intrepid investors may want to consider loading up. Fundamentally, the underlying company’s pertinence to the burgeoning gig economy makes MSFT stock a smart bet for long-term investors.
Apple (AAPL)
Source: Moab Republic / Shutterstock
Consistently leading the class of consumer technology giants, Apple (NASDAQ:AAPL) is one of the most powerful brands in the world. Consumers everywhere flock to its iPhones and other smart devices at launch. What distinguishes Apple from the copycat competition is its connected ecosystem, which in my opinion is unparalleled. Like Microsoft, Apple features both personal and professional applications, making AAPL stock a solid bet for the set-it-and-forget-it crowd.
Perhaps unsurprisingly, it’s also one of the best Nancy Pelosi stocks. According to records provided by the Clerk of the House of Representatives, the lawmaker purchased 150 AAPL stock call options in May of this year. On May 13, she acquired 100 $80 calls with an expiration date of March 17, 2023. On May 24, Pelosi bought 50 $80 calls expiring on June 16, 2023.
7 Blue-Chip Stocks to Buy and Hold for the Long-Haul
Under the current environment, AAPL stock is admittedly tricky. With consumer sentiment in the toilet, I’m not sure if the discretionary retail segment will hold up well. Still, Apple is proving incredibly resilient thus far — and that helps the case of it being a stock to buy.
Nancy Pelosi Stocks to Buy: Tesla (TSLA)
Source: Rokas Tenys / Shutterstock.com
Fundamentally, the inclusion of Tesla (NASDAQ:TSLA) among Nancy Pelosi stocks is hardly a shocker. For years, the Democrats championed initiatives designed to foster environmental justice. As a solution, electric vehicles are appealing — although to be fair, they alone are not a panacea.
According to the U.S. Energy Information Administration, natural gas was the largest source — approximately 38% — of U.S. electricity generation in 2021. Of course, natural gas is a hydrocarbon. So, until the electricity that we produce is increasingly geared toward net-clean emissions sources, in some ways, we’re rearranging deck chairs on the Titanic.
Still, the House Speaker does like TSLA a lot. On March 17 of this year, she exercised 25 call options — or 2,500 shares — of TSLA at a strike price of $500. Even with the losses that Tesla has suffered – it’s down almost 32% YTD – Pelosi is well in the money.
So, with volatility potentially dying down, bold speculators may want to take a shot.
AllianceBernstein (AB)
Source: rblfmr / Shutterstock.com
If you’re thinking the list of Nancy Pelosi stocks above isn’t high-brow enough, AllianceBernstein (NYSE:AB) might change your opinion. As a global asset management firm, AllianceBernstein provides investment management and research services worldwide to institutional, high-net-worth and retail investors. While it might not strike you as an exciting idea, it could be surprisingly relevant.
Throughout 2020 and 2021, social media luminaries gifted the blogosphere with all kinds of unsolicited investment advice. However, their bullish calls largely tended to be correct only because we were in a unique bull market cycle. Now that we might be entering a bearish cycle — or at least an unpredictable market — sophisticated private investors like Nancy Pelosi need real guidance.
7 Stocks to Buy That Could Make You a Millionaire
With AB, you’re getting quality information and management services from experts who understand how to navigate portfolios through both optimistic and pessimistic phases. This period is where we separate the men from the boys, if you’ll excuse the gender-specific classic idiom. And that’s where AllianceBernstein might shine.
Nancy Pelosi Stocks to Buy: Disney (DIS)
Source: ilikeyellow / Shutterstock.com
Sometimes, not every decision that rich powerbrokers make is immediately profitable. A case in point is entertainment giant Disney (NYSE:DIS). Ranking as one of the Nancy Pelosi stocks to buy early this year, the House Speaker exercised 100 DIS call options at a strike price of $100 on Jan. 21.
As you can tell from the technical chart for Disney stock, this wasn’t the greatest move — yet. For one thing, shares are down 28% for the year. However, they’re now trading above the strike price at $112.
Granted, this decision carried risk. As I mentioned earlier, consumer sentiment is in the toilet, largely because inflation is eroding the purchasing power of the U.S. dollar. However, demand for experiences and making new memories has increased due to the collective cabin fever that has built up over the past two years.
So, if you want to play this social dynamic, DIS stock could fit the bill nicely.
PayPal (PYPL)
Source: JHVEPhoto / Shutterstock.com
A blistering performer throughout the bulk of the new normal, PayPal (NASDAQ:PYPL) is emblematic of the harsh reality check the tech sector suffered this year. Indeed, since the beginning of January, PYPL stock has hemorrhaged 53% of its market value. And for once, when politicians say they can feel your pain, they’re not lying.
Earlier this year, PYPL was one of the best Nancy Pelosi stocks. The House Speaker was apparently very confident about the underlying company’s prospects, exercising 50 PYPL call options with a strike price of $100 early this year. However, PYPL stock is currently trading just above $91. Thus, it’s not exactly a heartwarming situation.
However, PayPal has significant implications regarding the gig economy, which is a sector projected to grow to $455 billion by the end of 2023. With people getting a taste of the gig life through work-from-home initiatives, this estimate might be conservative.
7 Auto Stocks to Buy and Hold Forever
In turn, all of this bodes well for PYPL stock — making it one to keep on your watch list.
Nancy Pelosi Stocks to Buy: American Express (AXP)
Source: First Class Photography / Shutterstock.com
Finally, the last name on this list of Nancy Pelosi stocks to consider is American Express (NYSE:AXP). One of the most recognizable payment cards, American Express has a clear advantage in that its user base largely caters to a wealthier spectrum. Therefore, even if the economy — particularly the consumer economy — takes a hit, AXP stock might be able to weather the storm.
Certainly, the House Speaker will be hoping so. In her case, however, she’s not under pressure like a few of her other holdings. On Jan. 21 of this year, Pelosi exercised 50 AXP $80 call options. Considering shares are at $151 today, this position is well in the money.
I must admit I personally have some hesitation about buying stocks that are tied to the consumer discretionary sector. Nevertheless, with American Express cardholders on average doing better than most, AXP stock might be worth a look.
On the date of publication, Josh Enomoto 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.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
The post 7 Best Nancy Pelosi 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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Apple (AAPL) Source: Moab Republic / Shutterstock Consistently leading the class of consumer technology giants, Apple (NASDAQ:AAPL) is one of the most powerful brands in the world. Like Microsoft, Apple features both personal and professional applications, making AAPL stock a solid bet for the set-it-and-forget-it crowd. According to records provided by the Clerk of the House of Representatives, the lawmaker purchased 150 AAPL stock call options in May of this year.
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Apple (AAPL) Source: Moab Republic / Shutterstock Consistently leading the class of consumer technology giants, Apple (NASDAQ:AAPL) is one of the most powerful brands in the world. Like Microsoft, Apple features both personal and professional applications, making AAPL stock a solid bet for the set-it-and-forget-it crowd. According to records provided by the Clerk of the House of Representatives, the lawmaker purchased 150 AAPL stock call options in May of this year.
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Apple (AAPL) Source: Moab Republic / Shutterstock Consistently leading the class of consumer technology giants, Apple (NASDAQ:AAPL) is one of the most powerful brands in the world. Like Microsoft, Apple features both personal and professional applications, making AAPL stock a solid bet for the set-it-and-forget-it crowd. According to records provided by the Clerk of the House of Representatives, the lawmaker purchased 150 AAPL stock call options in May of this year.
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Apple (AAPL) Source: Moab Republic / Shutterstock Consistently leading the class of consumer technology giants, Apple (NASDAQ:AAPL) is one of the most powerful brands in the world. Like Microsoft, Apple features both personal and professional applications, making AAPL stock a solid bet for the set-it-and-forget-it crowd. According to records provided by the Clerk of the House of Representatives, the lawmaker purchased 150 AAPL stock call options in May of this year.
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19513.0
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2022-09-02 00:00:00 UTC
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ROKU Launches Roku TV in German Markets With Metz Blue and TCL
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AAPL
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https://www.nasdaq.com/articles/roku-launches-roku-tv-in-german-markets-with-metz-blue-and-tcl
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nan
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nan
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Roku, Inc. ROKU has launched Roku TV in Germany with Metz blue and TCL as its first partners. Other TV brands too can now license Roku’s operating system for their Smart TVs. The TV models will be available in sizes varying between 32” and 65” in HD, and 4K and 4K QLED.
Roku TV is a simple-to-use device that offers a wide collection of entertainment as it provides access to the Roku Channel along with thousands of free and paid streaming channels such as Netflix and Pluto TV. It is also compatible with various voice assistants like Alexa, Google Assistant and Siri.
The home screen is customizable, allowing users in Germany to personalize their TV per their desire. The tuner and the live TV experience have also been customized to enable consumers to connect to a satellite, cable, or antenna for live TV.
The Roku TV model can be operated with the free Roku mobile app that can be used as a remote control, for voice search and control and private listening.
Roku, Inc. Price and Consensus
Roku, Inc. price-consensus-chart | Roku, Inc. Quote
Roku to Expand Globally Despite Stiff Competition
Roku has been extensively expanding the presence of Roku TV globally as earlier this month it introduced three new Roku TV partners in Mexico, namely, Aiwa, Daewoo, and Sansui. Roku TV has its presence in the United States, Canada, Mexico and Germany and plans to expand its footprint in Latin America, Chile and Peru in the next few years.
The Roku Channel is also gaining popularity. In the second quarter of 2022, Roku reported a total of around 63.1 million monthly active users in the United States. This figure marks the company’s highest monthly active user total of all time, as the user base almost doubled in just two years.
Viewers are also awaiting the launch of Paramount+ which is a Premium Subscription within The Roku Channel. This will make Paramount+’s critically acclaimed originals, hit movies, a world-class library of popular series, 24/7 news and marquee sports, accessible directly to consumers through The Roku Channel.
Roku faces significant competitive pressure from Amazon’s (AMZN) Fire TV Stick, Alphabet-owned GOOGL Google's Chromecast, Apple’s AAPL Apple TV and others despite the strength of its brand.
Roku’s stock has grossly underperformed as it has fallen 70.1% year to date compared to its peers, Amazon, Google and Apple, which have fallen by 23.3%, 23.6% and 11.15%, respectively. The Zacks Broadcast Radio and Television industry has seen a decline of 53.4% in the same period.
The company expects global supply chain disruptions to impact its player unit sales in terms of shipping delays, product availability issues and product price increases. Lower spending from certain advertising verticals due to limited product availability is expected to hurt the top line. Ongoing recessionary fear, inflationary pressure and higher interest rates will be some challenging factors for this Zacks Rank #4 (Sell) company.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Apple Inc. (AAPL): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Roku, Inc. (ROKU): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Roku faces significant competitive pressure from Amazon’s (AMZN) Fire TV Stick, Alphabet-owned GOOGL Google's Chromecast, Apple’s AAPL Apple TV and others despite the strength of its brand. Apple Inc. (AAPL): Free Stock Analysis Report Roku TV has its presence in the United States, Canada, Mexico and Germany and plans to expand its footprint in Latin America, Chile and Peru in the next few years.
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Apple Inc. (AAPL): Free Stock Analysis Report Roku faces significant competitive pressure from Amazon’s (AMZN) Fire TV Stick, Alphabet-owned GOOGL Google's Chromecast, Apple’s AAPL Apple TV and others despite the strength of its brand. Roku, Inc. Price and Consensus Roku, Inc. price-consensus-chart | Roku, Inc. Quote Roku to Expand Globally Despite Stiff Competition Roku has been extensively expanding the presence of Roku TV globally as earlier this month it introduced three new Roku TV partners in Mexico, namely, Aiwa, Daewoo, and Sansui.
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Roku faces significant competitive pressure from Amazon’s (AMZN) Fire TV Stick, Alphabet-owned GOOGL Google's Chromecast, Apple’s AAPL Apple TV and others despite the strength of its brand. Apple Inc. (AAPL): Free Stock Analysis Report Roku, Inc. ROKU has launched Roku TV in Germany with Metz blue and TCL as its first partners.
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Roku faces significant competitive pressure from Amazon’s (AMZN) Fire TV Stick, Alphabet-owned GOOGL Google's Chromecast, Apple’s AAPL Apple TV and others despite the strength of its brand. Apple Inc. (AAPL): Free Stock Analysis Report Roku, Inc. ROKU has launched Roku TV in Germany with Metz blue and TCL as its first partners.
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19514.0
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2022-09-02 00:00:00 UTC
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US STOCKS-Wall Street climbs after jobs report rekindles hopes of smaller rate hikes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-climbs-after-jobs-report-rekindles-hopes-of-smaller-rate-hikes
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nan
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nan
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By Devik Jain and Sruthi Shankar
Sept 2 (Reuters) - U.S. stock indexes jumped on Friday on expectations that cooling wage growth in August could help ease some price pressures and encourage the Federal Reserve to be less aggressive in its rate hike cycle.
All the S&P 500 sectors were higher in afternoon trading, while rate-sensitive growth stocks struggled after the Labor Department's report showed U.S. employers hired more workers than expected last month.
However, average hourly earnings rose 0.3% compared with estimates of 0.4%, while the unemployment rate edged up to 3.7% from a pre-pandemic low of 3.5%, indicating that the Fed's efforts to front-load rate hikes were beginning to take effect.
"It's really the Goldilocks scenario both for the economy and investors because it means that you see some easing in inflationary pressures and signs of healthy economy," said Nicholas Anderson, portfolio manager at Thornburg Investment Management.
"Slower wage growth, slower jobs growth, higher labor force participation is generally supportive of the Fed's objective of cooling inflation without wrecking the economy."
Wage growth data is seen as important to the Fed's deliberations on increasing interest rates as the central bank looks to bring inflation, running at four-decades high, back to its 2% target.
The focus now shifts to the August consumer price report due mid-month, the last major data available before the Fed's Sept. 20-21 policy meeting.
Traders now see a 58% chance of a third straight 75 basis points rate hike, down from 70% before the jobs report, according to CME Fedwatch tool.
"The (jobs) data will certainly moderate the negative sentiment in market. But there is going to be a lot of nervousness around the Fed's decision," said Kristina Hooper, chiefglobal marketstrategist at Invesco.
"What we know about policymakers is they are likely to be rather hawkish because it helps them to manage inflation expectations, and that will be an ongoing source of angst for the stock market."
Fears of aggressive policy tightening have gripped Wall Street recently, with the S&P 500 .SPX sliding nearly 4.5% since Fed Chair Jerome Powell's hawkish remarks last week about rate hikes. His views were later echoed by other policymakers.
All the three main indexes are set for a third straight weekly loss.
At 12:10 p.m. ET, the Dow Jones Industrial Average .DJI was up 313.92 points, or 0.99%, at 31,970.34, the S&P 500 .SPX was up 42.46 points, or 1.07%, at 4,009.31, and the Nasdaq Composite .IXIC was up 110.45 points, or 0.94%, at 11,895.57.
Energy stocks .SPNY advanced 3% as oil prices gained nearly 2% ahead of OPEC+ meeting to discuss potential production cuts. O/R
Banks .SPXBK added 2.2%, led by a 2.7% climb in shares of Bank of America BAC.N.
Shares of Amazon.com AMZN.O, Microsoft Corp MSFT.O and Apple Inc AAPL.O, which suffered the brunt of the recent selloff, rose between 0.9% and 2%.
The CBOE volatility index .VIX, also known as Wall Street's fear gauge, fell to a one-week low of 23.34 points.
Markets are closed on Monday on account of Labor Day holiday.
Advancing issues outnumbered decliners by a 5.36-to-1 ratio on the NYSE and by a 2.19-to-1 ratio on the Nasdaq.
The S&P index recorded three new 52-week highs and one new lows, while the Nasdaq recorded 39 new highs and 95 new lows.
(Reporting by Devik Jain and Sruthi Shankar in Bengaluru; Editing by Sriraj Kalluvila)
((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 Amazon.com AMZN.O, Microsoft Corp MSFT.O and Apple Inc AAPL.O, which suffered the brunt of the recent selloff, rose between 0.9% and 2%. By Devik Jain and Sruthi Shankar Sept 2 (Reuters) - U.S. stock indexes jumped on Friday on expectations that cooling wage growth in August could help ease some price pressures and encourage the Federal Reserve to be less aggressive in its rate hike cycle. Wage growth data is seen as important to the Fed's deliberations on increasing interest rates as the central bank looks to bring inflation, running at four-decades high, back to its 2% target.
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Shares of Amazon.com AMZN.O, Microsoft Corp MSFT.O and Apple Inc AAPL.O, which suffered the brunt of the recent selloff, rose between 0.9% and 2%. By Devik Jain and Sruthi Shankar Sept 2 (Reuters) - U.S. stock indexes jumped on Friday on expectations that cooling wage growth in August could help ease some price pressures and encourage the Federal Reserve to be less aggressive in its rate hike cycle. "Slower wage growth, slower jobs growth, higher labor force participation is generally supportive of the Fed's objective of cooling inflation without wrecking the economy."
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Shares of Amazon.com AMZN.O, Microsoft Corp MSFT.O and Apple Inc AAPL.O, which suffered the brunt of the recent selloff, rose between 0.9% and 2%. By Devik Jain and Sruthi Shankar Sept 2 (Reuters) - U.S. stock indexes jumped on Friday on expectations that cooling wage growth in August could help ease some price pressures and encourage the Federal Reserve to be less aggressive in its rate hike cycle. "Slower wage growth, slower jobs growth, higher labor force participation is generally supportive of the Fed's objective of cooling inflation without wrecking the economy."
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Shares of Amazon.com AMZN.O, Microsoft Corp MSFT.O and Apple Inc AAPL.O, which suffered the brunt of the recent selloff, rose between 0.9% and 2%. "Slower wage growth, slower jobs growth, higher labor force participation is generally supportive of the Fed's objective of cooling inflation without wrecking the economy." Wage growth data is seen as important to the Fed's deliberations on increasing interest rates as the central bank looks to bring inflation, running at four-decades high, back to its 2% target.
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19515.0
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2022-09-02 00:00:00 UTC
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Apple (AAPL) Dips More Than Broader Markets: What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-dips-more-than-broader-markets%3A-what-you-should-know-2
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nan
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nan
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In the latest trading session, Apple (AAPL) closed at $155.81, marking a -1.36% move from the previous day. This change lagged the S&P 500's daily loss of 1.07%. Meanwhile, the Dow lost 1.07%, and the Nasdaq, a tech-heavy index, lost 0.07%.
Coming into today, shares of the maker of iPhones, iPads and other products had lost 4.73% in the past month. In that same time, the Computer and Technology sector lost 5.41%, while the S&P 500 lost 3.49%.
Wall Street will be looking for positivity from Apple as it approaches its next earnings report date. On that day, Apple is projected to report earnings of $1.25 per share, which would represent year-over-year growth of 0.81%. Our most recent consensus estimate is calling for quarterly revenue of $88.01 billion, up 5.58% from the year-ago period.
AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.10 per share and revenue of $392.19 billion. These results would represent year-over-year changes of +8.73% and +7.21%, respectively.
Investors might also notice recent changes to analyst estimates for Apple. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.09% higher within the past month. Apple currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Apple is holding a Forward P/E ratio of 25.88. This valuation marks a premium compared to its industry's average Forward P/E of 6.75.
Meanwhile, AAPL's PEG ratio is currently 2.04. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AAPL's industry had an average PEG ratio of 2.47 as of yesterday's close.
The Computer - Mini computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 238, putting it in the bottom 6% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the latest trading session, Apple (AAPL) closed at $155.81, marking a -1.36% move from the previous day. AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.10 per share and revenue of $392.19 billion. Meanwhile, AAPL's PEG ratio is currently 2.04.
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In the latest trading session, Apple (AAPL) closed at $155.81, marking a -1.36% move from the previous day. AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.10 per share and revenue of $392.19 billion. Meanwhile, AAPL's PEG ratio is currently 2.04.
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AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.10 per share and revenue of $392.19 billion. In the latest trading session, Apple (AAPL) closed at $155.81, marking a -1.36% move from the previous day. Meanwhile, AAPL's PEG ratio is currently 2.04.
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In the latest trading session, Apple (AAPL) closed at $155.81, marking a -1.36% move from the previous day. AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.10 per share and revenue of $392.19 billion. Meanwhile, AAPL's PEG ratio is currently 2.04.
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19516.0
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2022-09-02 00:00:00 UTC
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Warren Buffet Can't Get Enough of Apple Stock. Should You Buy Now?
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AAPL
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https://www.nasdaq.com/articles/warren-buffet-cant-get-enough-of-apple-stock.-should-you-buy-now
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nan
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nan
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Warren Buffett's company, Berkshire Hathaway, bought its first shares of Apple (NASDAQ: AAPL) in Q1 2016. The company continued adding to its position through 2018. After selling some of its shares through 2020, Berkshire reignited a buying spree of its favorite stock in 2022.
At the end of Q2 2022, Berkshire owned 895 million Apple shares, making up nearly 43% of the company's stock portfolio. Alternatively, the stake represents about 22.5% of Berkshire's market cap and about 5.6% of all outstanding Apple shares. The stake makes Berkshire the third-largest shareholder behind index giants Vanguard and BlackRock.
Regarding Apple, Buffett has remarked that it's probably the best business he knows of in the world and that the iPhone is a "sticky" product that keeps people within the company's ecosystem. Those comments speak to Buffett's voracious appetite for Apple shares, but what does he mean by "sticky"?
A sticky product
The iPhone's history of fanciful design, advanced cameras, and innovative features has helped the smartphone attract a loyal following. The iPhone commands roughly half of the U.S. smartphone market and 17% of theglobal market Making it cool is one way to design a sticky product, but there is more to the story.
Image source: Getty Images.
iPhone users will gladly tell you about the services included in the smartphone's ecosystem. For a small fee, users can store pictures and other data on an iCloud account, download songs from Apple Music, and set up touchless payments with Apple Pay. Buffett may think the iPhone is sticky in part because he believes that once a customer builds a lifetime of selfies and family photos, they're more likely to buy another iPhone when the time comes. Otherwise, accessing pictures becomes a cumbersome process if customers switch smartphones.
Likewise, iPhone customers who have taken the time to connect their bank accounts and cards to Apple Pay will have to reconnect each one if they switch to a competing smartphone. Apple's ecosystem creates a flywheel effect whereby the iPhone's popularity begets services, and those services beget the next iPhone purchase. As Apple collects new iPhone customers over time, its sticky flywheel ecosystem strengthens.
Here are some numbers that back Buffett's comments. The company launched Apple in 2015 with 6.5 million paid subscribers and reported 78 million in June 2021, implying annual compounded growth of greater than 50%. JPMorgan forecasts that Apple Music will reach 110 million paid subs by 2025. Meanwhile, Apple Pay dominates mobile wallet payments, representing 92% of mobile wallet payments in 2020, when the COVD-19 pandemic opened the floodgates for contactless payments, which are expected to grow by 29% annually through 2028.
The iPhone's compelling combination of untamed popularity and entrenching ecosystem was demonstrated in Q2 2022 smartphone industry analysis. It showed that sky-high inflation and macroeconomic uncertainty reduced year-over-year smartphone shipments by 8.7%, which was short of estimates. Bucking the trend, iPhone shipments grew .5% in the quarter. The first quarter was even more eye-opening. Global shipments fell 11%, but iPhone shipments increased 8%.
Should you buy Apple right now?
Though Buffett has touted the stickiness of Apple's products, the economics of Apple's services segment is staggering. For instance, due to its captive audience of loyal iPhone users, Apple can push Apple Pay, Apple Music, iCloud storage, and other services for virtually no cost. On top of that, there is very little ongoing cost to adding new service customers. Therefore, each new dollar of revenue increases margin.
In 2017, when Apple first disclosed financial results for its services segment, it generated $32.7 billion in revenue and a gross margin of $17.9 billion. By 2021, services revenue had roughly doubled to $68.4 billion, and gross margin grew 2.6 times to $47.7 billion. The implication for investors is that as Apple's services business grows, the company generates more cash, a trait adored by Buffett.
The stock has fallen 13% this year and trades at a price-to-earnings ratio of 26 times, which has come down from highs above 40 in 2020.
AAPL PE Ratio data by YCharts
Interestingly, the multiples Buffett paid for Apple stock in the first two quarters of 2022 were visibly higher than when he started accumulating shares in 2016. But Apple is a company that increases in value over time. Value and growth investors alike should see the stock's tumble as an opportunity to emulate the world's most renowned investor by adding Apple to their portfolios.
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BJ 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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AAPL PE Ratio data by YCharts Interestingly, the multiples Buffett paid for Apple stock in the first two quarters of 2022 were visibly higher than when he started accumulating shares in 2016. Warren Buffett's company, Berkshire Hathaway, bought its first shares of Apple (NASDAQ: AAPL) in Q1 2016. A sticky product The iPhone's history of fanciful design, advanced cameras, and innovative features has helped the smartphone attract a loyal following.
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Warren Buffett's company, Berkshire Hathaway, bought its first shares of Apple (NASDAQ: AAPL) in Q1 2016. AAPL PE Ratio data by YCharts Interestingly, the multiples Buffett paid for Apple stock in the first two quarters of 2022 were visibly higher than when he started accumulating shares in 2016. Meanwhile, Apple Pay dominates mobile wallet payments, representing 92% of mobile wallet payments in 2020, when the COVD-19 pandemic opened the floodgates for contactless payments, which are expected to grow by 29% annually through 2028.
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Warren Buffett's company, Berkshire Hathaway, bought its first shares of Apple (NASDAQ: AAPL) in Q1 2016. AAPL PE Ratio data by YCharts Interestingly, the multiples Buffett paid for Apple stock in the first two quarters of 2022 were visibly higher than when he started accumulating shares in 2016. Apple's ecosystem creates a flywheel effect whereby the iPhone's popularity begets services, and those services beget the next iPhone purchase.
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Warren Buffett's company, Berkshire Hathaway, bought its first shares of Apple (NASDAQ: AAPL) in Q1 2016. AAPL PE Ratio data by YCharts Interestingly, the multiples Buffett paid for Apple stock in the first two quarters of 2022 were visibly higher than when he started accumulating shares in 2016. At the end of Q2 2022, Berkshire owned 895 million Apple shares, making up nearly 43% of the company's stock portfolio.
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19517.0
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2022-09-02 00:00:00 UTC
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EXCLUSIVE-Apple, Samsung could benefit as India aims to speed product safety approvals
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AAPL
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https://www.nasdaq.com/articles/exclusive-apple-samsung-could-benefit-as-india-aims-to-speed-product-safety-approvals
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nan
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nan
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By Munsif Vengattil
NEW DELHI, Sept 2 (Reuters) - India will try out a strategy of parallel testing to speed up safety approvals for new electronic devices, an industry group told Reuters on Friday, a move that could boost device launch plans by the likes of Samsung 005930.KS and Apple AAPL.O.
The move comes as India scrambles to remove bottlenecks faced by businesses, with Prime Minister Narendra Modi bullish on an electronics hardware manufacturing industry his government targets to be worth $300 billion by 2026.
The plan to test different components of the devices simultaneously looks set to cut as much as five to eight weeks from the 16 to 21 now often needed to test and certify products ranging from wireless earbuds to smartphones.
"For industry, it is directly linked with ease of doing business; for consumers, this will result in faster access to the latest products," the group, MAIT, said in its statement.
Firms such as Apple, Samsung and Xiaomi 1810.HK are among its members, along with global and domestic firms operating in India's electronics, telecom and IT sector.
To trim the time required, the group added, the testing agency, the Bureau of Indian Standards, "has agreed to a pilot project where some identified electronics hardware products shall be undergoing parallel testing".
Executives say India's cumbersome testing process can take 16 weeks for a new Apple AirPods model, for example, as the charging case and its components must first secure clearance before the earbuds are assessed.
For a smartphone and its parts, the procedure could take an average of up to 21 weeks.
The pilot decision followed a closed-door meeting on Wednesday between officials of India's information technology ministry, BIS, MAIT and executives of firms such as Apple and Samsung, a source with direct knowledge of the matter said.
Apple, Samsung and Xiaomi did not immediately respond to requests for comment. The BIS and the IT ministry also did not immediately respond to Reuters queries.
Earbuds will be the first devices likely to be put through the faster testing, with the government deciding on other products later, MAIT said.
Swifter safety and quality clearances by the authorities will boost India's competitiveness in electronics, said Prabhu Ram, the head of the Industry Intelligence Group at CyberMedia Research.
"For Indian consumers, this move will significantly shorten the wait time to get their hands on the latest products," added Ram, who advises technology companies in India.
The requirement for safety testing by BIS applies to all electronic products in India, whether imported or domestically made.
The move will come as a shot in the arm for companies such as Xiaomi and Samsung which sell most smartphones in India and have a combined market share of 46%, as well as Apple, which trails Samsung in the premium category, data from research firm Counterpoint shows.
While Indian company boAt leads the market for wireless earbuds in India, Apple is the market leader in premium variants, data showed.
(Reporting by Munsif Vengattil in New Delhi; Editing by Aditya Kalra and Clarence Fernandez)
((munsif.vengattil@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Munsif Vengattil NEW DELHI, Sept 2 (Reuters) - India will try out a strategy of parallel testing to speed up safety approvals for new electronic devices, an industry group told Reuters on Friday, a move that could boost device launch plans by the likes of Samsung 005930.KS and Apple AAPL.O. The move comes as India scrambles to remove bottlenecks faced by businesses, with Prime Minister Narendra Modi bullish on an electronics hardware manufacturing industry his government targets to be worth $300 billion by 2026. The pilot decision followed a closed-door meeting on Wednesday between officials of India's information technology ministry, BIS, MAIT and executives of firms such as Apple and Samsung, a source with direct knowledge of the matter said.
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By Munsif Vengattil NEW DELHI, Sept 2 (Reuters) - India will try out a strategy of parallel testing to speed up safety approvals for new electronic devices, an industry group told Reuters on Friday, a move that could boost device launch plans by the likes of Samsung 005930.KS and Apple AAPL.O. The pilot decision followed a closed-door meeting on Wednesday between officials of India's information technology ministry, BIS, MAIT and executives of firms such as Apple and Samsung, a source with direct knowledge of the matter said. While Indian company boAt leads the market for wireless earbuds in India, Apple is the market leader in premium variants, data showed.
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By Munsif Vengattil NEW DELHI, Sept 2 (Reuters) - India will try out a strategy of parallel testing to speed up safety approvals for new electronic devices, an industry group told Reuters on Friday, a move that could boost device launch plans by the likes of Samsung 005930.KS and Apple AAPL.O. To trim the time required, the group added, the testing agency, the Bureau of Indian Standards, "has agreed to a pilot project where some identified electronics hardware products shall be undergoing parallel testing". The move will come as a shot in the arm for companies such as Xiaomi and Samsung which sell most smartphones in India and have a combined market share of 46%, as well as Apple, which trails Samsung in the premium category, data from research firm Counterpoint shows.
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By Munsif Vengattil NEW DELHI, Sept 2 (Reuters) - India will try out a strategy of parallel testing to speed up safety approvals for new electronic devices, an industry group told Reuters on Friday, a move that could boost device launch plans by the likes of Samsung 005930.KS and Apple AAPL.O. The plan to test different components of the devices simultaneously looks set to cut as much as five to eight weeks from the 16 to 21 now often needed to test and certify products ranging from wireless earbuds to smartphones. Firms such as Apple, Samsung and Xiaomi 1810.HK are among its members, along with global and domestic firms operating in India's electronics, telecom and IT sector.
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19518.0
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2022-09-02 00:00:00 UTC
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Should SPDR MSCI USA StrategicFactors ETF (QUS) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-spdr-msci-usa-strategicfactors-etf-qus-be-on-your-investing-radar-3
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nan
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nan
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The SPDR MSCI USA StrategicFactors ETF (QUS) was launched on 04/15/2015, 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 State Street Global Advisors. It has amassed assets over $862.44 million, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.15%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.51%.
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 26.10% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 2.94% of total assets, followed by Microsoft Corporation (MSFT) and Johnson & Johnson (JNJ).
The top 10 holdings account for about 20.11% of total assets under management.
Performance and Risk
QUS seeks to match the performance of the MSCI USA Factor Mix A-Series Index before fees and expenses. The MSCI USA Factor Mix A-Series Index measures the equity market performance of large and mid-cap companies across the U.S. equity market. It aims to represent the performance of a combination of three factors: value, quality, and low volatility.
The ETF has lost about -14% so far this year and is down about -9.93% in the last one year (as of 09/02/2022). In the past 52-week period, it has traded between $103.89 and $131.16.
The ETF has a beta of 0.91 and standard deviation of 22.99% for the trailing three-year period, making it a medium risk choice in the space. With about 628 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR MSCI USA StrategicFactors 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, QUS 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 $296.39 billion in assets, SPDR S&P 500 ETF has $363 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Johnson & Johnson (JNJ): Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 2.94% of total assets, followed by Microsoft Corporation (MSFT) and Johnson & Johnson (JNJ). Apple Inc. (AAPL): Free Stock Analysis Report The SPDR MSCI USA StrategicFactors ETF (QUS) was launched on 04/15/2015, 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 2.94% of total assets, followed by Microsoft Corporation (MSFT) and Johnson & Johnson (JNJ). Apple Inc. (AAPL): Free Stock Analysis Report Performance and Risk QUS seeks to match the performance of the MSCI USA Factor Mix A-Series Index before fees and expenses.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 2.94% of total assets, followed by Microsoft Corporation (MSFT) and Johnson & Johnson (JNJ). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives SPDR MSCI USA StrategicFactors 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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Apple Inc. (AAPL): Free Stock Analysis Report Looking at individual holdings, Apple Inc. (AAPL) accounts for about 2.94% of total assets, followed by Microsoft Corporation (MSFT) and Johnson & Johnson (JNJ). The SPDR MSCI USA StrategicFactors ETF (QUS) was launched on 04/15/2015, 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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19519.0
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2022-09-02 00:00:00 UTC
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Apple Settles Developer Lawsuit Over App Store Rejections
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AAPL
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https://www.nasdaq.com/articles/apple-settles-developer-lawsuit-over-app-store-rejections
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nan
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nan
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(RTTNews) - Apple Inc. has settled a lawsuit with an app developer over App Store review actions, rejections and scams, reports said citing court filings.
The lawsuit was filed in March 2021 by app developer Kosta Eleftheriou in California's Superior Court in Santa Clara County. In the filing, he had accused the company of unfairly rejecting his own app from the App Store that was later targeted by scammers, resulting in revenue loss.
In his complaint, he alleged that Apple rejected his FlickType Apple Watch keyboard app from the App Store, but later approved other keyboard apps that copied the same technology of his app to publish to the App Store.
According to him, Apple's move seemingly contradicted its claim that the FlickType keyboard offered a poor user experience.
Later, when his keyboard app was allowed to reenter the App Store, consumers went for the better-rated alternatives due to which FlickType's revenue declined sharply.
The parties were engaged in court calls, and the court filings reportedly showed a request to dismiss the suit after they came to an agreement.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Apple Inc. has settled a lawsuit with an app developer over App Store review actions, rejections and scams, reports said citing court filings. The lawsuit was filed in March 2021 by app developer Kosta Eleftheriou in California's Superior Court in Santa Clara County. According to him, Apple's move seemingly contradicted its claim that the FlickType keyboard offered a poor user experience.
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(RTTNews) - Apple Inc. has settled a lawsuit with an app developer over App Store review actions, rejections and scams, reports said citing court filings. In his complaint, he alleged that Apple rejected his FlickType Apple Watch keyboard app from the App Store, but later approved other keyboard apps that copied the same technology of his app to publish to the App Store. The parties were engaged in court calls, and the court filings reportedly showed a request to dismiss the suit after they came to an agreement.
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(RTTNews) - Apple Inc. has settled a lawsuit with an app developer over App Store review actions, rejections and scams, reports said citing court filings. In his complaint, he alleged that Apple rejected his FlickType Apple Watch keyboard app from the App Store, but later approved other keyboard apps that copied the same technology of his app to publish to the App Store. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Apple Inc. has settled a lawsuit with an app developer over App Store review actions, rejections and scams, reports said citing court filings. In the filing, he had accused the company of unfairly rejecting his own app from the App Store that was later targeted by scammers, resulting in revenue loss. In his complaint, he alleged that Apple rejected his FlickType Apple Watch keyboard app from the App Store, but later approved other keyboard apps that copied the same technology of his app to publish to the App Store.
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19520.0
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2022-09-02 00:00:00 UTC
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Taiwan Semiconductor (TSM)
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AAPL
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https://www.nasdaq.com/articles/taiwan-semiconductor-tsm
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nan
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nan
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Taiwan Semiconductor TSM is a central player in the manufacture of chips for companies like Apple, NVIDIA, and Marvell.
My colleague Derek Lewis profiled TSM last month and highlighted the company's stunning doubling of revenue in less than 3 years.
This year's topline will ramp a projected 37% to nearly $78 billion, while profits are expected to top $6.30 for 53% growth.
In 2021, Apple AAPL was the largest customer of the Taiwanese semiconductor foundry, aka TSMC, contributing a quarter of the company's revenues.
Why TSM Services Are In High Demand
TSM is known as a "fab" or "foundry" for chip making. They take the designs of major semiconductor companies and execute their precise -- and top-secret proprietary -- manufacturing parameters.
And this precision and protected privacy has accelerated to new levels in the past few years.
Or maybe I should say it has "shrunk" to new levels.
Because Moore's Law about chips doubling in power as they shrink in half every 18 months or so has been reaccelerated after leveling off in the past decade.
This means that chips have entered what I call The Nanosphere.
A nanometer is one-billionth of a meter. And chip micro-circuitry has gone under 10 nanometers in the past few years.
That's why smartphones can do more even as they shrink.
And why NVIDIA NVDA can cram 50 billion transistors into the space of a shoebox for their advanced GPU (graphics processiing unit) cards that stack together for artificial intelligence engines in the DGX system.
This year, Taiwan Semi is helping major chip designers go to 5 nanometers (nm) and even 3nms!
To illustrate the microscopic scale of going sub-10nm, imagine how big the coronavirus might be.
Fact: the coronavirus is around 50 nanometers!
And TSM is the premier foundry for going sub-10nm.
Their only real competition is Samsung.
What if NVDA Stumbles?
Since NVIDIA might be TSM's third or second biggest customer, investors might be concerned about this recent news...
NVDA shares plunged 6.6% in Wednesday’s extended trading session after it revealed that the U.S. government told it to stop exporting top artificial intelligence (AI) chips to China and Russia.
In a filing with the Securities and Exchange Commission, NVIDIA disclosed that the U.S. government informed it on Aug 26 about imposing a new licensing requirement, effective immediately, for its A100, A100X and forthcoming H100 integrated circuit sales in China and Russia.
The government has also banned NVIDIA from exporting DGX or any other systems that incorporate A100 or H100 integrated circuits.
The new licensing requirements will also be implied on any future chip designs developed by NVIDIA that have a threshold greater than or equivalent to A100. Additionally, any systems developed in the future incorporating the aforementioned types and thresholds will also fall under export restrictions.
With the new licensing requirements, the U.S. government intends to "address the risk that the covered products may be used in, or diverted to, a 'military end use' or 'military end user' in China and Russia," per NVDA in the SEC filing.
Export Restrictions to Hurt NVIDIA Sales
NVIDIA's A100 and H100 are its highest-performance chips used in data centers for AI, data analytics and computing applications. Though the company does not sell products to customers in Russia, the new licensing requirements are going to significantly hurt its data center chip sales in China.
The newly imposed restrictions are likely to impact the company’s ability to support the existing customers of A100 as well as complete the development of H100 timely. This could also require NVIDIA to transition some of its operations outside China.
The restrictions are expected to hamper NVIDIA’s business in China from where the company is expecting to generate $400 million in revenues from the sale of the aforementioned chips in the third quarter of fiscal 2023. The company warned that it may lose revenues if Chinese firms decide not to buy alternative NVIDIA products.
The latest restriction is a new blow to NVIDIA, which is already being hurt by the weakening demand for its chips used in gaming products. Last week, the company reported revenues of $6.7 billion for the second quarter of fiscal 2023, way lower than its May 2022 forecast of $8.10 billion (+/-2%), due to weaker sales across its Gaming and Data Center business segments.
NVIDIA's Gaming segment revenues plunged 33% year over year due to a lower sell-in of Gaming products, reflecting reduced channel partner sales due to macroeconomic headwinds. Although Data Center revenues jumped 61% year over year, the company stated that sales were below expectations due to ongoing supply-chain disruptions and lower sales to China’s hyperscale customers, who are affected by economic conditions.
Considering the current business environment, the company issued dim revenue guidance for the third quarter, wherein it expects to generate $5.9 billion (+/- 2%) in sales, approximately 17% lower than the year-ago quarter’s revenues. Looking at the latest U.S. government’s restriction on chip sales to China, the company is highly probable to report third-quarter revenues way lower than its August 2022 guidance.
Bottom line on TSM: Despite NVDA's downfall, with the SOX index down 35% since its highs and TSM down 43%, it seems the best value in chips right now trading near 13X EPS. Buy some TSM.
Want to Know the #1 Semiconductor Stock for 2022?
Few people know how promising the semiconductor market is. Over the last couple of years, disruptions to the supply chain have caused shortages in several industries. The absence of one single semiconductor can stop all operations in certain industries.
This year, companies that create and produce this essential material will have incredible pricing power. For a limited time, Zacks is revealing the top semiconductor stock for 2022. You'll find it in our new Special Report, One Semiconductor Stock Stands to Gain the Most.
Today, it's yours free with no obligation.
>>Give me access to my free special report.
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
Taiwan Semiconductor Manufacturing Company Ltd. (TSM): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In 2021, Apple AAPL was the largest customer of the Taiwanese semiconductor foundry, aka TSMC, contributing a quarter of the company's revenues. Apple Inc. (AAPL): Free Stock Analysis Report And why NVIDIA NVDA can cram 50 billion transistors into the space of a shoebox for their advanced GPU (graphics processiing unit) cards that stack together for artificial intelligence engines in the DGX system.
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In 2021, Apple AAPL was the largest customer of the Taiwanese semiconductor foundry, aka TSMC, contributing a quarter of the company's revenues. Apple Inc. (AAPL): Free Stock Analysis Report NVIDIA's Gaming segment revenues plunged 33% year over year due to a lower sell-in of Gaming products, reflecting reduced channel partner sales due to macroeconomic headwinds.
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In 2021, Apple AAPL was the largest customer of the Taiwanese semiconductor foundry, aka TSMC, contributing a quarter of the company's revenues. Apple Inc. (AAPL): Free Stock Analysis Report The restrictions are expected to hamper NVIDIA’s business in China from where the company is expecting to generate $400 million in revenues from the sale of the aforementioned chips in the third quarter of fiscal 2023.
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In 2021, Apple AAPL was the largest customer of the Taiwanese semiconductor foundry, aka TSMC, contributing a quarter of the company's revenues. Apple Inc. (AAPL): Free Stock Analysis Report Because Moore's Law about chips doubling in power as they shrink in half every 18 months or so has been reaccelerated after leveling off in the past decade.
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19521.0
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2022-09-02 00:00:00 UTC
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China's Shenzhen extends COVID curbs but stops short of full lockdown
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AAPL
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https://www.nasdaq.com/articles/chinas-shenzhen-extends-covid-curbs-but-stops-short-of-full-lockdown-0
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nan
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nan
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Adds details on Toyota plant in Chengdu
SHENZHEN, China, Sept 2 (Reuters) - Some districts of China's southern tech hub Shenzhen extended curbs on public activities, dining out and entertainment venues on Friday, but city officials stopped short of a full lockdown as they try to rein in rising COVID cases.
Restrictions in the central business district of Futian and Longhua, home to a major campus of Apple AAPL.O iPhone assembler Foxconn 2317.TW, have been extended until Sunday, while residents in several areas across the city were asked to work from home if possible.
Curbing activities of tens of millions of people intensifies the challenges for China to cushion the economic impact of its "dynamic-zero" COVID policy that has kept its borders mostly shut to international visitors, and made it an outlier as other countries learn to live with the coronavirus.
Most of Shenzhen's nearly 18 million population is now under COVID controls amid the city's most serious outbreak since spring. But unlike its swift decision in March to lock down the city to fight community infections, Shenzhen has taken a more considered approach in the current flare-up since late August.
On Thursday evening, officials sought to quell rumours that the city would undergo a full lockdown as it did for a week in March, and said people could leave and return to their homes with a 24-hour proof of testing.
So far, authorities have largely avoided shutting down offices and factories.
On Friday, officials reported 87 new locally transmitted COVID-19 infections in Shenzhen on Sept. 1, up from 62 a day earlier. Of those, eight were outside quarantine areas.
In southwestern China, the megacity of Chengdu went into lockdown late Thursday with mass testing for COVID-19 planned through the weekend. Uncertainty remained whether the lockdown would be lifted after the testing ends on Sunday.
The city of about 21 million people and capital of Sichuan province reported 150 new local cases for Sept. 1, official data showed on Friday, versus 157 infections a day earlier.
In Chengdu, non-essential employees were told to work from home. Industrial firms engaged in key manufacturing and able to manage on closed campuses were exempted from work-from-home requirements.
Toyota Motor's 7203.T Chengdu plant, which has an annual production capacity of 105,000 vehicles, is "operating normally", and inside a closed loop at the request of the Sichuan government, a company official told Reuters.
Sweden's Volvo Cars VOLCARb.ST, majority owned by Chinese automotive company Zhejiang Geely Holding Group, has shut its plant in Chengdu, a company spokesperson said on Thursday.
(Reporting by David Kirton, Ryan Woo, Norihiko Shirouzu and Liz Lee; Editing by Raju Gopalakrishnan)
((David.Kirton@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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Restrictions in the central business district of Futian and Longhua, home to a major campus of Apple AAPL.O iPhone assembler Foxconn 2317.TW, have been extended until Sunday, while residents in several areas across the city were asked to work from home if possible. Curbing activities of tens of millions of people intensifies the challenges for China to cushion the economic impact of its "dynamic-zero" COVID policy that has kept its borders mostly shut to international visitors, and made it an outlier as other countries learn to live with the coronavirus. On Thursday evening, officials sought to quell rumours that the city would undergo a full lockdown as it did for a week in March, and said people could leave and return to their homes with a 24-hour proof of testing.
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Restrictions in the central business district of Futian and Longhua, home to a major campus of Apple AAPL.O iPhone assembler Foxconn 2317.TW, have been extended until Sunday, while residents in several areas across the city were asked to work from home if possible. Adds details on Toyota plant in Chengdu SHENZHEN, China, Sept 2 (Reuters) - Some districts of China's southern tech hub Shenzhen extended curbs on public activities, dining out and entertainment venues on Friday, but city officials stopped short of a full lockdown as they try to rein in rising COVID cases. On Friday, officials reported 87 new locally transmitted COVID-19 infections in Shenzhen on Sept. 1, up from 62 a day earlier.
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Restrictions in the central business district of Futian and Longhua, home to a major campus of Apple AAPL.O iPhone assembler Foxconn 2317.TW, have been extended until Sunday, while residents in several areas across the city were asked to work from home if possible. Adds details on Toyota plant in Chengdu SHENZHEN, China, Sept 2 (Reuters) - Some districts of China's southern tech hub Shenzhen extended curbs on public activities, dining out and entertainment venues on Friday, but city officials stopped short of a full lockdown as they try to rein in rising COVID cases. On Thursday evening, officials sought to quell rumours that the city would undergo a full lockdown as it did for a week in March, and said people could leave and return to their homes with a 24-hour proof of testing.
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Restrictions in the central business district of Futian and Longhua, home to a major campus of Apple AAPL.O iPhone assembler Foxconn 2317.TW, have been extended until Sunday, while residents in several areas across the city were asked to work from home if possible. Adds details on Toyota plant in Chengdu SHENZHEN, China, Sept 2 (Reuters) - Some districts of China's southern tech hub Shenzhen extended curbs on public activities, dining out and entertainment venues on Friday, but city officials stopped short of a full lockdown as they try to rein in rising COVID cases. In southwestern China, the megacity of Chengdu went into lockdown late Thursday with mass testing for COVID-19 planned through the weekend.
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19522.0
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2022-09-02 00:00:00 UTC
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US STOCKS-Wall Street rises after mixed August jobs report
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-rises-after-mixed-august-jobs-report
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nan
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nan
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By Devik Jain and Carolina Mandl
Sept 2 (Reuters) - Wall Street's main indexes rose on Friday as cooling wage growth and a tick up in the unemployment rate solidified expectations that inflation may be easing and renewed hopes that the Federal Reserve may have to be less aggressive in raising rates.
The Labor Department's closely watched employment report showed nonfarm payrolls increased by 315,000 jobs last month compared with expectations of 300,000. Average hourly earnings rose 0.3% compared with estimates of 0.4%.
Meanwhile, the unemployment rate edged up to 3.7% from a pre-pandemic low of 3.5%.
"The report was a step in the right direction, but it wasn't a giant leap in that direction," said Brian Jacobsen, senior investment strategist at Allspring Global Investments in Milwaukee, Wisconsin.
"So on the margin it shifts the balance towards a 50 basis point hike instead of 75 basis point, but the key thing will be of course the inflation data. That will probably seal the deal as to whether it should be 50 or 75 basis point."
Traders pared their bets on a third straight 75 basis points rate hike in September to 62% from 70% before the jobs report was released, according to CME Fedwatch tool.
Wage growth data is seen as important to the Fed's deliberations on increasing interest rates as the central bank looks to cool down labor demand and the overall economy to bring inflation back to its 2% target.
The focus now turns to the August consumer price report due mid-month.
Fears of aggressive policy tightening have gripped Wall Street since Fed Chair Jerome Powell's hawkish remarks last Friday about keeping monetary policy tight "for some time", with the S&P 500 .SPX sliding 5.1% since.
All the three main indexes are set for a third straight weekly loss.
At 9:50 a.m. ET, the Dow Jones Industrial Average .DJI was up 142.99 points, or 0.45%, at 31,799.41, the S&P 500 .SPX was up 21.36 points, or 0.54%, at 3,988.21, and the Nasdaq Composite .IXIC was up 44.49 points, or 0.38%, at 11,829.61.
All the S&P 500 sectors rose in early trading, with energy stocks .SPNY up 1.6% as oil prices gained more than $2 a barrel ahead of OPEC+ meeting to discuss production cuts. O/R
Banks .SPXBK gained 1.1%, led by a 1.4% rise in shares of Bank of America BAC.N.
Rate-sensitive technology and growth stocks were mixed. Shares of Amazon.com AMZN.O, Microsoft Corp MSFT.O and Apple Inc AAPL.O, which suffered the brunt of the recent selloff, rose between 0.3% and 0.8%.
The CBOE volatility index .VIX, also known as Wall Street's fear gauge, fell to a one-week low of 24.16 points.
Advancing issues outnumbered decliners by a 2.76-to-1 ratio on the NYSE and by a 1.31-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week high and one new low, while the Nasdaq recorded 32 new highs and 46 new lows.
(Reporting by Devik Jain, Bansari Mayur Kamdar in Bengaluru and Carolina Mandl da Silva in New York; Editing by Sriraj Kalluvila)
((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 Amazon.com AMZN.O, Microsoft Corp MSFT.O and Apple Inc AAPL.O, which suffered the brunt of the recent selloff, rose between 0.3% and 0.8%. Traders pared their bets on a third straight 75 basis points rate hike in September to 62% from 70% before the jobs report was released, according to CME Fedwatch tool. Wage growth data is seen as important to the Fed's deliberations on increasing interest rates as the central bank looks to cool down labor demand and the overall economy to bring inflation back to its 2% target.
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Shares of Amazon.com AMZN.O, Microsoft Corp MSFT.O and Apple Inc AAPL.O, which suffered the brunt of the recent selloff, rose between 0.3% and 0.8%. By Devik Jain and Carolina Mandl Sept 2 (Reuters) - Wall Street's main indexes rose on Friday as cooling wage growth and a tick up in the unemployment rate solidified expectations that inflation may be easing and renewed hopes that the Federal Reserve may have to be less aggressive in raising rates. "So on the margin it shifts the balance towards a 50 basis point hike instead of 75 basis point, but the key thing will be of course the inflation data.
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Shares of Amazon.com AMZN.O, Microsoft Corp MSFT.O and Apple Inc AAPL.O, which suffered the brunt of the recent selloff, rose between 0.3% and 0.8%. By Devik Jain and Carolina Mandl Sept 2 (Reuters) - Wall Street's main indexes rose on Friday as cooling wage growth and a tick up in the unemployment rate solidified expectations that inflation may be easing and renewed hopes that the Federal Reserve may have to be less aggressive in raising rates. "So on the margin it shifts the balance towards a 50 basis point hike instead of 75 basis point, but the key thing will be of course the inflation data.
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Shares of Amazon.com AMZN.O, Microsoft Corp MSFT.O and Apple Inc AAPL.O, which suffered the brunt of the recent selloff, rose between 0.3% and 0.8%. By Devik Jain and Carolina Mandl Sept 2 (Reuters) - Wall Street's main indexes rose on Friday as cooling wage growth and a tick up in the unemployment rate solidified expectations that inflation may be easing and renewed hopes that the Federal Reserve may have to be less aggressive in raising rates. Wage growth data is seen as important to the Fed's deliberations on increasing interest rates as the central bank looks to cool down labor demand and the overall economy to bring inflation back to its 2% target.
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19523.0
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2022-09-01 00:00:00 UTC
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Where Will Snap Stock Be in 1 Year?
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AAPL
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https://www.nasdaq.com/articles/where-will-snap-stock-be-in-1-year
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nan
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nan
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Snap's (NYSE: SNAP) stock popped nearly 9% on Aug. 31 after the company announced that it would lay off about 1,200 employees, or approximately 20% of its workforce, as it grapples with a severe slowdown.
Snap will discontinue its investments in its Snap Originals videos, its Minis mini-programs, its video games, and its Pixy selfie drone. It will also shut down its location-based social networking app Zenly, which it acquired in 2017, and its music creation app Voisey, which it bought in 2020.
In an internal memo, CEO Evan Spiegel said Snap's revenue had only risen about 8% year over year so far in the third quarter, which was "well below" its own expectations and would represent its slowest growth rate as a public company. Spiegel said Snap "must now face the consequences" of that slowdown and "adapt to the market environment."
Image source: Getty Images.
Spiegel said Snap's restructuring would focus its future on just "three strategic priorities: community growth, revenue growth, and augmented reality." Everything else would likely be cut. Two of Snap's top executives -- its chief business officer Jeremi Gorman and its vice-president for ad sales Peter Naylor -- also abruptly left the company and joined Netflix in that seismic shuffle.
That's a lot of information for Snap's investors to process, so let's take a breath and review its prior problems, its aggressive turnaround plans, and the potential challenges to see if its stock can recover over the next 12 months.
What happened to Snap?
During Snap's investor day presentation last February, the company impressed the bulls by saying it could grow its annual revenue by more than 50% over the next few years. But since then, Snap's year-over-year growth in daily active users (DAUs), average revenue per user (ARPU), and total revenue have all significantly decelerated.
PERIOD
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
DAU growth (all figures YOY)
23%
23%
20%
18%
18%
ARPU growth (decline)
76%
28%
18%
17%
(4%)
Revenue growth
116%
57%
42%
38%
13%
Data source: Snap. YOY = year over year.
Snap's growth ground to a halt for three main reasons. First, it vastly underestimated the impact of Apple's privacy changes on iOS, which enabled its users to opt out of data-tracking features and ads.
Second, Snapchat likely lost a lot of its younger users to ByteDance's TikTok, even after it launched a similar Spotlight short-video feature in late 2020. TikTok also overtook Snapchat as the top social media platform for U.S. teens for the first time this spring, according to Piper Sandler's latest Taking Stock with Teens survey.
And third, the entire ad sector cooled off as inflation, rising interest rates, and other macroeconomic headwinds rattled the broader economy.
But despite facing all those bright red flags, Snap refused to officially abandon its long-term target of achieving more than 50% annual revenue growth. Analysts had expected Snap's revenue to rise 11% to $4.58 billion this year, but they could significantly reduce those estimates in light of its recent update.
Slowing growth and lots of red ink
Snap's net loss narrowed from $945 million in 2020 to $488 million in 2021. But in the first half of 2022, its net loss widened year over year from $439 million to $782 million. Analysts had expected Snap to post a net loss of $1.34 billion for the full year, but its forthcoming layoffs and restructuring efforts might reduce that red ink.
The layoffs make sense because free cash flow -- which had turned positive in 2021 -- turned negative again in the first half of 2022. The company was still sitting on $2.3 billion in cash and equivalents along with $2.6 billion in marketable securities at the end of the second quarter, but its elevated debt-to-equity ratio of 1.6 doesn't give it much room to raise fresh cash.
Nonetheless, Snap's decision to stop investing in new original videos, games, and mini programs altogether douses the hope that it can turn Snapchat into an all-in-one "super app" like Tencent's WeChat in China. That reversal might also reduce the stickiness of its ecosystem, throttle its DAU and ARPU growth, and erode its defenses against other social media platforms.
Snap plans to keep supporting the creation of new augmented-reality lenses, but Meta's (NASDAQ: META) Facebook and Instagram, TikTok, and other social media platforms have also started rolling out similar features over the past year.
Where will Snap's stock be in 12 months?
The stock has already plunged about 85% over the past 12 months, and it's now trading far below its IPO price. But it still doesn't seem like a screaming bargain yet at 4 times this year's sales. It's merely reasonably valued relative to its peers: Meta trades at 4 times this year's sales, and Pinterest trades at 5.5 times this year's sales.
Therefore, I don't expect Snap's stock to make any meaningful gains over the next 12 months. Its desperate cost-cutting and the elimination of its ecosystem-expanding projects indicate it's bracing for a brutal slowdown that could easily last for more than a year. So investors should stay away and stick with more-promising tech stocks instead.
10 stocks we like better than Snap Inc.
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*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. Leo Sun has positions in Apple and Meta Platforms, Inc. The Motley Fool has positions in and recommends Apple, Meta Platforms, Inc., Netflix, Pinterest, and Tencent Holdings. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two of Snap's top executives -- its chief business officer Jeremi Gorman and its vice-president for ad sales Peter Naylor -- also abruptly left the company and joined Netflix in that seismic shuffle. That's a lot of information for Snap's investors to process, so let's take a breath and review its prior problems, its aggressive turnaround plans, and the potential challenges to see if its stock can recover over the next 12 months. Nonetheless, Snap's decision to stop investing in new original videos, games, and mini programs altogether douses the hope that it can turn Snapchat into an all-in-one "super app" like Tencent's WeChat in China.
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DAU growth (all figures YOY) 23% 23% 20% 18% 18% ARPU growth (decline) 76% 28% 18% 17% (4%) Revenue growth 116% 57% 42% 38% 13% Data source: Snap. It's merely reasonably valued relative to its peers: Meta trades at 4 times this year's sales, and Pinterest trades at 5.5 times this year's sales. The Motley Fool has positions in and recommends Apple, Meta Platforms, Inc., Netflix, Pinterest, and Tencent Holdings.
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Snap's (NYSE: SNAP) stock popped nearly 9% on Aug. 31 after the company announced that it would lay off about 1,200 employees, or approximately 20% of its workforce, as it grapples with a severe slowdown. In an internal memo, CEO Evan Spiegel said Snap's revenue had only risen about 8% year over year so far in the third quarter, which was "well below" its own expectations and would represent its slowest growth rate as a public company. Snap plans to keep supporting the creation of new augmented-reality lenses, but Meta's (NASDAQ: META) Facebook and Instagram, TikTok, and other social media platforms have also started rolling out similar features over the past year.
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DAU growth (all figures YOY) 23% 23% 20% 18% 18% ARPU growth (decline) 76% 28% 18% 17% (4%) Revenue growth 116% 57% 42% 38% 13% Data source: Snap. YOY = year over year. 10 stocks we like better than Snap Inc.
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19524.0
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2022-09-01 00:00:00 UTC
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My Favorite Tech Stock for a Hawkish Fed
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AAPL
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https://www.nasdaq.com/articles/my-favorite-tech-stock-for-a-hawkish-fed
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nan
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nan
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Tech stocks experienced a massive plunge after Federal Reserve Chairman Jerome Powell told investors his priority was taming inflation. Indeed, that is bad news for stocks in the short term. To slow the pace of rising prices, Powell will likely continue to hike interest rates, reducing the availability of capital.
But such conditions should play into the hands of Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). Google's parent company depends less on consumer spending than Apple or Amazon, and its business lines, financial position, and valuation should increase the appeal of its stock in more-challenging times.
Alphabet's business
You might not think of Alphabet as a recession-resistant business. It traditionally derived revenue from advertising on its search engine and YouTube video platform. With consumers presumably having less income available to spend, advertisers might not want to spend, either.
Nonetheless, market researcher Technavio forecasts the digital ad industry will grow at a compound annual rate of 11% through 2026, even as competition in online advertising rises. In the first half of 2022, Alphabet derived about $111 billion of its $138 billion revenue (81% of its total) from ads.
While ads remain dominant, Alphabet has become increasingly dependent on Google Cloud. Businesses turn to cloud services because they offer cost savings, allowing companies to better manage connectivity, security, deployments, and data. These added efficiencies will probably appeal to companies looking to save money in harder times.
Many enterprises have turned to Alphabet for such services. Synergy Research reported that cloud revenue grew 34% over the last year. Google Cloud claimed a 10% share of that market, lagging only Amazon at 33% and Microsoft at 22%.
Financial advantages
In the first half of 2022, Google Cloud generated $12 billion in revenue. While that is only 9% of Alphabet's revenue, the segment grew by 39% versus the same period in 2021. In comparison, Alphabet's overall revenue increased by 17%. Moreover, Google Cloud only made up 5% of revenue in 2019, a sign that it is slowly becoming a more crucial part of the company.
However, the financial metric that might best state the case for Alphabet is liquidity. Between cash equivalents and marketable securities, liquidity comes in at $125 billion. While that is down from $140 billion at the end of 2021, it leaves Alphabet with one of the strongest cash positions among public companies. Hence, even if the Fed maintains tight lending policies, Alphabet holds plenty of capital to operate and expand its business.
Alphabet's stock positioning
Despite these benefits, Alphabet has suffered disproportionately in the current environment. Over the last year, it has lost nearly one-fourth of its value. While it has not suffered to the degree of some growth tech stocks, it has underperformed the S&P 500.
Nonetheless, the decline might have made it one of the best FAANG stocks to own from a valuation perspective. Its price-to-earnings ratio now stands at 21x, even as Alphabet continues to register double-digit revenue growth.
Additionally, the earnings multiple comes in lower than that of cloud rivals Amazon and Microsoft, which trade at 26 times and 27 times earnings, respectively. Such a valuation advantage could give investors more reason to choose Alphabet over other mega-tech rivals.
GOOG PE ratio. Data by YCharts.
Consider Alphabet in a rising-rate environment
Alphabet appears well prepared to escape most of the difficulties that will soon challenge many tech companies. Online ad spending continues to hold up, and its largest emerging segment, Google Cloud, should stay resilient as businesses look to save money.
Moreover, its cash hoard makes it one of the safest companies to invest in during difficult times. When you combine these aspects with its low earnings multiple, the communication stock looks increasingly like a safe haven with continuing growth potential.
10 stocks we like better than Alphabet (C shares)
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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. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, 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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Tech stocks experienced a massive plunge after Federal Reserve Chairman Jerome Powell told investors his priority was taming inflation. Google's parent company depends less on consumer spending than Apple or Amazon, and its business lines, financial position, and valuation should increase the appeal of its stock in more-challenging times. Nonetheless, market researcher Technavio forecasts the digital ad industry will grow at a compound annual rate of 11% through 2026, even as competition in online advertising rises.
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But such conditions should play into the hands of Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). Google's parent company depends less on consumer spending than Apple or Amazon, and its business lines, financial position, and valuation should increase the appeal of its stock in more-challenging times. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Microsoft.
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Google's parent company depends less on consumer spending than Apple or Amazon, and its business lines, financial position, and valuation should increase the appeal of its stock in more-challenging times. Alphabet's stock positioning Despite these benefits, Alphabet has suffered disproportionately in the current environment. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Microsoft.
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Google's parent company depends less on consumer spending than Apple or Amazon, and its business lines, financial position, and valuation should increase the appeal of its stock in more-challenging times. Online ad spending continues to hold up, and its largest emerging segment, Google Cloud, should stay resilient as businesses look to save money. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Microsoft.
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19525.0
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2022-09-01 00:00:00 UTC
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Why Meta Platforms Stock Was Beating the Market Thursday Morning
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AAPL
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https://www.nasdaq.com/articles/why-meta-platforms-stock-was-beating-the-market-thursday-morning
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nan
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nan
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What happened
Shares of Meta Platforms (NASDAQ: META) were in positive territory on Thursday morning, climbing as much as 2.7% on a day when the broader market was in the red. As of 3:15 p.m. ET, the stock was still up 1%.
The stock was reacting to reports that Meta is planning to build paid features across its family of social media apps.
So what
Meta Platforms is building a team to explore "possible paid features," according to The Verge. This new product organization will be charged with building optional paid features that could be deployed across Facebook, Instagram, and WhatsApp, according to the report, which cited an internal memo sent to Meta employees.
In a subsequent interview, John Hegeman, Meta's vice president of monetization -- who will oversee the project -- said the company's main focus will still be increasing its advertising business, but believes there are opportunities to generate additional revenue.
"I think if there are opportunities to both create new value and meaningful revenue lines and also provide some diversification," Hegeman said, "That's obviously going to be something that will be appealing."
While he didn't provide any specifics on what paid features were being considered, Hegeman said the company wasn't considering a paid plan to let users turn off ads.
Now what
When Meta Platforms released its second-quarter financial report in late July, it included the first year-over-year revenue decline in the company's history. While the shortfall was the result of currency headwinds caused by a strong dollar, it showcased the obstacles Meta Platforms faces.
Privacy features introduced by Apple make ad-targeting much more challenging, and macroeconomic uncertainties have led companies to cut back on ad spending.
That said, roughly 2.88 billion people access Meta's social media platforms each day, giving the company a fertile field to plow. Even if it's only able to entice a small number of users to opt for its upcoming paid features, the company could still generate billions of dollars in additional revenue.
10 stocks we like better than Meta Platforms, Inc.
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Meta Platforms, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of 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.
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This new product organization will be charged with building optional paid features that could be deployed across Facebook, Instagram, and WhatsApp, according to the report, which cited an internal memo sent to Meta employees. In a subsequent interview, John Hegeman, Meta's vice president of monetization -- who will oversee the project -- said the company's main focus will still be increasing its advertising business, but believes there are opportunities to generate additional revenue. Privacy features introduced by Apple make ad-targeting much more challenging, and macroeconomic uncertainties have led companies to cut back on ad spending.
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Even if it's only able to entice a small number of users to opt for its upcoming paid features, the company could still generate billions of dollars in additional revenue. 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.
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What happened Shares of Meta Platforms (NASDAQ: META) were in positive territory on Thursday morning, climbing as much as 2.7% on a day when the broader market was in the red. 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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While he didn't provide any specifics on what paid features were being considered, Hegeman said the company wasn't considering a paid plan to let users turn off ads. 10 stocks we like better than Meta Platforms, Inc. The Motley Fool has positions in and recommends Apple and Meta Platforms, Inc.
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19526.0
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2022-09-01 00:00:00 UTC
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3 Best Momentum Stocks to Buy for September
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AAPL
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https://www.nasdaq.com/articles/3-best-momentum-stocks-to-buy-for-september
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It can be difficult to think about momentum stocks when the market is sinking. That’s especially true heading into September, which is traditionally the worst month of the year for stocks.
But while the major indices continue to trend lower, there are a number of stocks that are outperforming and actually rose during August and heading into September. There are also indications that the momentum behind many of these stocks could continue in the coming weeks and months despite continued macroeconomic headwinds that are pushing against the market.
While momentum stocks are not always easy to spot, investors stand to gain handsomely if they can find these diamond-in-the-rough names. Whether it has been strong earnings, positive forward guidance, sector strength, or a combination of all these factors, these stocks have managed to post gains for shareholders in an extremely difficult environment.
As we approach Labor Day, we offer up three of the best momentum stocks to buy for September.
DVN Devon Energy $70.77
DKS Dick’s Sporting Goods $109.13
FB Meta Platforms $166.35
Devon Energy (DVN)
Source: Jeff Whyte / Shutterstock.com
There are a lot of reasons to be bullish on Devon Energy (NYSE:DVN) right now. In August, while the S&P 500 index fell 5%, DVN stock gained 11%, bringing its 2022 advance to 50%. Buoyed by higher prices for oil and natural gas, Oklahoma City-based Devon Energy’s share price has climbed 21% in the last month and 58% in the last 12 months.
The company is primarily involved in oil and natural gas exploration, and has proven reserves of 1.6 billion barrels of oil equivalent, of which 44% is petroleum, 27% natural gas liquids, and 29% pure natural gas.
Devon Energy is getting a major boost this year from oil prices that have been as high as $130 per barrel at times. The company most recently reported that its second-quarter earnings had soared 332% from the same quarter a year earlier, due primarily to elevated energy prices.
Its Q2 revenue jumped 133% versus the same period of 2021. And if all this isn’t enough to entice investors, consider the dividend that’s attached to DVN stock.
Currently, Devon Energy is paying a quarterly dividend that yields 6.85%, or $1.17 per share. Compare that to the average dividend yield of 1.69% among S&P 500 companies, and DVN stock looks very attractive indeed.
Dicks Sporting Goods (DKS)
Source: Jonathan Weiss / Shutterstock.com
September is the back-to-school month, and that is good news for Dick’s Sporting Goods (NYSE:DKS) and its shareholders. Heading into September, DKS stock increased 11% in August as strong earnings and anticipation of back-to-school shopping bolstered the share price. Now trading at $108 per share, Dick’s Sporting Goods’ stock is down 6% year to date, outpacing the S&P 500 index that is down 17% since January. With a price–earnings (P/E) ratio of 9.3, Dick’s stock also looks extremely affordable. And its dividend payout that yields nearly 2% helps too.
The Pennsylvania-based company recently reported strong Q2 results and lifted its outlook for the remainder of this year, which had Wall Street analysts singing its praises. The company’s Q2 EPS came in at $3.68 versus the $3.58 that had been expected, on average, by analysts. The retailer’s Q2 revenue in the quarter amounted to $3.11 billion compared to the average forecast of $3.07 billion.
For the entire year, Dick’s said it now expects EPS of between $10 and $12, up from a previous forecast of $9.15 to $11.70. Equally impressive, management has said that DKS is able to manage inflationary pressures without losing customers. That was music to investors’ ears.
Meta Platforms (META)
Source: Aleem Zahid Khan / Shutterstock.com
We should have a tech stock on this list, and Meta Platforms (NASDAQ:META) looks to have some momentum behind it after a very difficult start to the year. The shares of the parent-company of Facebook appear to have found a bottom right around $155 per share, and they have been creeping above that level, trading at $165 today.
During August, META stock gained 1% compared to a 6% decline in the technology heavy Nasdaq index during the month. While the company works to build the “Metaverse,” it can still rely on Facebook, which has monthly active users of 2.93 billion, including its Messenger service.
Add in the social media sites that Meta also owns, such as Instagram and WhatsApp, and the number of monthly active users swells to 3.65 billion people, or 45% of the 8 billion people on Earth. While the company’s earnings have been hurt this year by a decline in online advertising, those dollars are starting to return and will eventually exceed pre-pandemic levels.
Another reason to like META stock is its valuation. With a current P/E ratio of 13.5, Meta Platforms’ stock is the cheapest among the mega-cap technology names that include Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT). In fact, Meta’s stock now has a lower P/E ratio than either McDonald’s (NYSE:MCD) or Starbucks (NASDAQ:SBUX).
On the date of publication, Joel Baglole held long positions in AAPL and MSFT. 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 3 Best Momentum Stocks to Buy for September 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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With a current P/E ratio of 13.5, Meta Platforms’ stock is the cheapest among the mega-cap technology names that include Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT). On the date of publication, Joel Baglole held long positions in AAPL and MSFT. Whether it has been strong earnings, positive forward guidance, sector strength, or a combination of all these factors, these stocks have managed to post gains for shareholders in an extremely difficult environment.
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With a current P/E ratio of 13.5, Meta Platforms’ stock is the cheapest among the mega-cap technology names that include Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT). On the date of publication, Joel Baglole held long positions in AAPL and MSFT. DVN Devon Energy $70.77 DKS Dick’s Sporting Goods $109.13 FB Meta Platforms $166.35 Devon Energy (DVN) Source: Jeff Whyte / Shutterstock.com There are a lot of reasons to be bullish on Devon Energy (NYSE:DVN) right now.
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With a current P/E ratio of 13.5, Meta Platforms’ stock is the cheapest among the mega-cap technology names that include Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT). On the date of publication, Joel Baglole held long positions in AAPL and MSFT. InvestorPlace - Stock Market News, Stock Advice & Trading Tips It can be difficult to think about momentum stocks when the market is sinking.
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With a current P/E ratio of 13.5, Meta Platforms’ stock is the cheapest among the mega-cap technology names that include Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT). On the date of publication, Joel Baglole held long positions in AAPL and MSFT. DVN Devon Energy $70.77 DKS Dick’s Sporting Goods $109.13 FB Meta Platforms $166.35 Devon Energy (DVN) Source: Jeff Whyte / Shutterstock.com There are a lot of reasons to be bullish on Devon Energy (NYSE:DVN) right now.
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19527.0
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2022-09-01 00:00:00 UTC
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Disney’s synergy Force may stumble in Prime time
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AAPL
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https://www.nasdaq.com/articles/disneys-synergy-force-may-stumble-in-prime-time
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nan
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nan
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Reuters
Reuters
NEW YORK (Reuters Breakingviews) - Few companies are as good at making the most of what they have as Walt Disney, which successfully cross-sells pirates, princesses, superheroes and stormtroopers across cinemas, TV screens, theme parks and stores. The latest idea to harness the power of its characters, however, may be too much even for the synergy Force.
The $200 billion entertainment empire led by Bob Chapek is chewing over the prospect of a membership program https://www.wsj.com/articles/disney-explores-amazon-prime-like-membership-program-to-offer-discounts-and-perks-11661978329?page=1, à la Amazon.com’s Prime service, according to the Wall Street Journal. The e-commerce goliath represents the gold standard in bundling, with a $139 annual fee for free shipping, supermarket discounts, video streaming and other goodies also driving more spending by Prime members. Likewise, Apple users are willing to shell out for packages of cloud storage and more.
Cheaper Iron Man T-shirts and Disney World passes hardly qualify as the same sort of everyday needs that would necessarily entice droves of customers to sign up. The company’s lower forecast https://www.breakingviews.com/considered-view/capital-calls-ferrovials-heathrow-baggage-aviva/ for subscriber growth at its streaming product Disney+ provides an incentive to find new sources of revenue, but worries about inflation and income growth are apt to restrict such discretionary purchases for a while. Even Disney’s magic may not be a match for economic reality. (By Jeffrey Goldfarb)
Capital Calls - More concise insights on global finance:
New Saipem CEO’s recovery efforts will be a slog
PAG extends Japan adventure with theme park buy
Uniper credit request rests on hope it’s the last [nL4
N30620L]
Electronic Arts won’t be a multiplayer M&A game
Grab drives home how much investors now see red
Crypto fans still live in a supervised world
(Editing by John Foley and Sharon Lam)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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NEW YORK (Reuters Breakingviews) - Few companies are as good at making the most of what they have as Walt Disney, which successfully cross-sells pirates, princesses, superheroes and stormtroopers across cinemas, TV screens, theme parks and stores. The e-commerce goliath represents the gold standard in bundling, with a $139 annual fee for free shipping, supermarket discounts, video streaming and other goodies also driving more spending by Prime members. (By Jeffrey Goldfarb) Capital Calls - More concise insights on global finance: New Saipem CEO’s recovery efforts will be a slog PAG extends Japan adventure with theme park buy Uniper credit request rests on hope it’s the last [nL4
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Reuters Reuters NEW YORK (Reuters Breakingviews) - Few companies are as good at making the most of what they have as Walt Disney, which successfully cross-sells pirates, princesses, superheroes and stormtroopers across cinemas, TV screens, theme parks and stores. Cheaper Iron Man T-shirts and Disney World passes hardly qualify as the same sort of everyday needs that would necessarily entice droves of customers to sign up.
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NEW YORK (Reuters Breakingviews) - Few companies are as good at making the most of what they have as Walt Disney, which successfully cross-sells pirates, princesses, superheroes and stormtroopers across cinemas, TV screens, theme parks and stores. The company’s lower forecast https://www.breakingviews.com/considered-view/capital-calls-ferrovials-heathrow-baggage-aviva/ for subscriber growth at its streaming product Disney+ provides an incentive to find new sources of revenue, but worries about inflation and income growth are apt to restrict such discretionary purchases for a while. Electronic Arts won’t be a multiplayer M&A game Grab drives home how much investors now see red Crypto fans still live in a supervised world (Editing by John Foley and Sharon Lam) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Reuters Reuters NEW YORK (Reuters Breakingviews) - Few companies are as good at making the most of what they have as Walt Disney, which successfully cross-sells pirates, princesses, superheroes and stormtroopers across cinemas, TV screens, theme parks and stores. The latest idea to harness the power of its characters, however, may be too much even for the synergy Force.
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19528.0
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2022-09-01 00:00:00 UTC
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Thursday's ETF with Unusual Volume: FCTR
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AAPL
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https://www.nasdaq.com/articles/thursdays-etf-with-unusual-volume%3A-fctr
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nan
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nan
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The First Trust Lunt U.S. Factor Rotation ETF is seeing unusually high volume in afternoon trading Thursday, with over 217,000 shares traded versus three month average volume of about 73,000. Shares of FCTR were off about 0.8% on the day.
Components of that ETF with the highest volume on Thursday were Apple, trading down about 0.9% with over 33.2 million shares changing hands so far this session, and Bank of America, off about 0.8% on volume of over 15.4 million shares. Pfizer is the component faring the best Thursday, up by about 2.3% on the day, while Proshares Ultra Semiconductors is lagging other components of the First Trust Lunt U.S. Factor Rotation ETF, trading lower by about 11.1%.
VIDEO: Thursday's ETF with Unusual Volume: FCTR
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Factor Rotation ETF is seeing unusually high volume in afternoon trading Thursday, with over 217,000 shares traded versus three month average volume of about 73,000. Components of that ETF with the highest volume on Thursday were Apple, trading down about 0.9% with over 33.2 million shares changing hands so far this session, and Bank of America, off about 0.8% on volume of over 15.4 million shares. VIDEO: Thursday's ETF with Unusual Volume: FCTR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Factor Rotation ETF is seeing unusually high volume in afternoon trading Thursday, with over 217,000 shares traded versus three month average volume of about 73,000. Factor Rotation ETF, trading lower by about 11.1%. VIDEO: Thursday's ETF with Unusual Volume: FCTR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Factor Rotation ETF is seeing unusually high volume in afternoon trading Thursday, with over 217,000 shares traded versus three month average volume of about 73,000. Components of that ETF with the highest volume on Thursday were Apple, trading down about 0.9% with over 33.2 million shares changing hands so far this session, and Bank of America, off about 0.8% on volume of over 15.4 million shares. VIDEO: Thursday's ETF with Unusual Volume: FCTR The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Factor Rotation ETF is seeing unusually high volume in afternoon trading Thursday, with over 217,000 shares traded versus three month average volume of about 73,000. Shares of FCTR were off about 0.8% on the day. Pfizer is the component faring the best Thursday, up by about 2.3% on the day, while Proshares Ultra Semiconductors is lagging other components of the First Trust Lunt U.S.
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19529.0
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2022-09-01 00:00:00 UTC
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US STOCKS-Wall Street slides for fifth straight day on rate hike jitters
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-slides-for-fifth-straight-day-on-rate-hike-jitters-0
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nan
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nan
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By Devik Jain and Sruthi Shankar
Sept 1 (Reuters) - U.S. stock indexes slid for the fifth straight session on Thursday as fresh signs of a tight labor market raised expectations of an aggressive approach by the Federal Reserve, lifting bond yields and pressuring growth stocks.
The weekly jobless claims fell more-than-expected last week and layoffs dropped in August, consistent with strong demand for workers. Investors now await the monthly nonfarm payrolls report on Friday for more evidence on the labor market.
Economists polled by Reuters sees jobs increase of 300,000, while Wells Fargo economist Jay Bryson revised his forecast for nonfarm payrolls to 375,000 from 325,000.
"The data coming out still keeps reaffirming how strong the labor market is... even if you get 200,000-250,000 job numbers (tomorrow), that is still a labor market that is too strong to control inflation and just indicates the Fed has work to do," said Ronald Temple, head of U.S. equity at Lazard Asset Management.
As the 10-year Treasury yield US10YT=RR rose to its highest level since June 28, technology and growth stocks fell the most with Apple Inc AAPL.O, Amazon.com AMZN.O, Tesla Inc TSLA.O and Microsoft Corp MSFT.O down between 0.9% and 3%.
Chipmakers .SOX lost 4.4%, led by a 11.5% drop in shares of Nvidia NVDA.O and 6.6% in Advanced Micro Devices AMD.O after the United States imposed an export ban on some top AI chips to China.
Meanwhile, latest data showed a further easing in price pressures, while manufacturing grew steadily in August, thanks to a rebound in employment and new orders.
Still, traders expect a 77.1% chance of a third straight 75 basis points increase in rates in September and expect it to peak around 3.977% in March 2023. FEDWATCH
The benchmark S&P 500 .SPX has dropped 9.6% since hitting a four-month high in August, with much of the losses triggered by Fed Chair Jerome Powell's hawkish view on interest rate hikes to bring inflation below the 2% target.
Investors are worried about how much and how long the Fed will raise rates, with Wall Street's main indexes recording their weakest August performance in seven years in the previous session.
"I do see more downside and testing the June lows would make sense. From a Fed's perspective, they'd prefer to have a Wall Street recession than a Main Street recession," Temple said.
At 12:04 p.m. ET, the Dow Jones Industrial Average .DJI was down 112.52 points, or 0.36%, at 31,397.91, the S&P 500 .SPX was down 36.07 points, or 0.91%, at 3,918.93, and the Nasdaq Composite .IXIC was down 233.88 points, or 1.98%, at 11,582.32.
All the three main indexes are trading below their 50-day moving average and the 50% Fibonacci retracement level from their June low to August high, two key indicators watched by analysts as support.
Healthcare .SPXHC, consumer staples .SPLRCS and utlities .SPLRCU sectors, which perform better during uncertainty and economic downturn, rose.
Boeing Co BA.N dipped 5.6% as the planemaker expects its 737 MAX 10 jet to be certified by U.S. regulators next year and the MAX 7 variant by the end of 2022.
Qualcomm Inc QCOM.O slipped 4.1% after the UK-based chip firm Arm sued the chipmaker and its recently acquired chip design firm Nuvia Inc for breach of license agreements and trademark infringement.
Hormel Foods Corporation HRL.N fell 5.8% after packaged foods maker cut its full-year profit forecast.
Declining issues outnumbered advancers for a 5.93-to-1 ratio on the NYSE and for a 3.80-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week highs and 34 new lows, while the Nasdaq recorded 15 new highs and 306 new lows.
(Reporting by Devik Jain and Sruthi Shankar in Bengaluru; Editing by Arun Koyyur)
((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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As the 10-year Treasury yield US10YT=RR rose to its highest level since June 28, technology and growth stocks fell the most with Apple Inc AAPL.O, Amazon.com AMZN.O, Tesla Inc TSLA.O and Microsoft Corp MSFT.O down between 0.9% and 3%. Chipmakers .SOX lost 4.4%, led by a 11.5% drop in shares of Nvidia NVDA.O and 6.6% in Advanced Micro Devices AMD.O after the United States imposed an export ban on some top AI chips to China. FEDWATCH The benchmark S&P 500 .SPX has dropped 9.6% since hitting a four-month high in August, with much of the losses triggered by Fed Chair Jerome Powell's hawkish view on interest rate hikes to bring inflation below the 2% target.
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As the 10-year Treasury yield US10YT=RR rose to its highest level since June 28, technology and growth stocks fell the most with Apple Inc AAPL.O, Amazon.com AMZN.O, Tesla Inc TSLA.O and Microsoft Corp MSFT.O down between 0.9% and 3%. By Devik Jain and Sruthi Shankar Sept 1 (Reuters) - U.S. stock indexes slid for the fifth straight session on Thursday as fresh signs of a tight labor market raised expectations of an aggressive approach by the Federal Reserve, lifting bond yields and pressuring growth stocks. Investors are worried about how much and how long the Fed will raise rates, with Wall Street's main indexes recording their weakest August performance in seven years in the previous session.
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As the 10-year Treasury yield US10YT=RR rose to its highest level since June 28, technology and growth stocks fell the most with Apple Inc AAPL.O, Amazon.com AMZN.O, Tesla Inc TSLA.O and Microsoft Corp MSFT.O down between 0.9% and 3%. By Devik Jain and Sruthi Shankar Sept 1 (Reuters) - U.S. stock indexes slid for the fifth straight session on Thursday as fresh signs of a tight labor market raised expectations of an aggressive approach by the Federal Reserve, lifting bond yields and pressuring growth stocks. "The data coming out still keeps reaffirming how strong the labor market is... even if you get 200,000-250,000 job numbers (tomorrow), that is still a labor market that is too strong to control inflation and just indicates the Fed has work to do," said Ronald Temple, head of U.S. equity at Lazard Asset Management.
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As the 10-year Treasury yield US10YT=RR rose to its highest level since June 28, technology and growth stocks fell the most with Apple Inc AAPL.O, Amazon.com AMZN.O, Tesla Inc TSLA.O and Microsoft Corp MSFT.O down between 0.9% and 3%. By Devik Jain and Sruthi Shankar Sept 1 (Reuters) - U.S. stock indexes slid for the fifth straight session on Thursday as fresh signs of a tight labor market raised expectations of an aggressive approach by the Federal Reserve, lifting bond yields and pressuring growth stocks. Investors now await the monthly nonfarm payrolls report on Friday for more evidence on the labor market.
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19530.0
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2022-09-01 00:00:00 UTC
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3 "Keep It Simple" Stocks to Buy Today
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AAPL
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https://www.nasdaq.com/articles/3-keep-it-simple-stocks-to-buy-today
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nan
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nan
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Investing is hard, and sometimes keeping it simple is the right way to go. Investing in Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Target (NYSE: TGT) is simple, and the video below includes all the info you need to learn if these are stocks you'll like, including a one-sentence investment thesis.
*Stock prices used were the closing prices of Aug. 24, 2022. The video was published on Aug. 30, 2022.
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
Travis Hoium has positions in Apple. The Motley Fool has positions in and recommends Apple, Microsoft, and Target. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he'll earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investing in Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Target (NYSE: TGT) is simple, and the video below includes all the info you need to learn if these are stocks you'll like, including a one-sentence investment thesis. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. If you choose to subscribe through his link, he'll earn some extra money that supports his channel.
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Investing in Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Target (NYSE: TGT) is simple, and the video below includes all the info you need to learn if these are stocks you'll like, including a one-sentence investment thesis. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Apple, Microsoft, and Target.
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Investing in Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Target (NYSE: TGT) is simple, and the video below includes all the info you need to learn if these are stocks you'll like, including a one-sentence investment thesis. See the 10 stocks *Stock Advisor returns as of August 17, 2022 Travis Hoium has positions in Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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Investing in Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Target (NYSE: TGT) is simple, and the video below includes all the info you need to learn if these are stocks you'll like, including a one-sentence investment thesis. See the 10 stocks *Stock Advisor returns as of August 17, 2022 Travis Hoium has positions in Apple. The Motley Fool has positions in and recommends Apple, Microsoft, and Target.
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19531.0
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2022-09-01 00:00:00 UTC
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US STOCKS-Wall Street slides for fifth straight day on rate hike jitters
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-slides-for-fifth-straight-day-on-rate-hike-jitters
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nan
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nan
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By Devik Jain
Sept 1 (Reuters) - U.S. stock indexes fell for the fifth straight session on Thursday as fresh signs of a tight labor market raised bets in favor of the Federal Reserve's aggressive approach, lifting bond yields and pressuring growth stocks.
The weekly jobless claims fell more-than-expected last week and layoffs dropped in August, consistent with strong demand for workers. Investors now await the monthly nonfarm payrolls report on Friday for more evidence on the labor market.
As the 10-year Treasury yield US10YT=RR rose to its highest level since June 21, heavyweight technology and growth stocks such as Apple Inc AAPL.O, Amazon.com AMZN.O, Tesla Inc TSLA.O and Microsoft Corp MSFT.O fell between 0.3% and 1.8%.
Traders have raised their expectation of a third straight 75 basis points increase in rates in September to 77.1% from 74% despite mixed signals on inflation. FEDWATCH
Latest data showed a further easing in price pressures, while manufacturing grew steadily in August, thanks to a rebound in employment and new orders.
"The market has its dead eyes on re-testing the June lows. We will see how it goes after Friday's nonfarm payroll report and how things go once we get back into a full week after the Labor Day," said Robert Pavlik, senior portfolio manager at Dakota Wealth Management.
"Powell's comments put the realism back into the market... people that have gotten in since the bounce off the lows in June are quickly moving to the sidelines."
The benchmark S&P 500 .SPX has dropped 9.6% since hitting a four-month high in August, with much of the losses triggered by Fed Chair Jerome Powell's hawkish view on interest rate hikes.
Investors are worried about how much and how long the Fed will raise rates, with Wall Street's main indexes recording their weakest August performance in seven years in the previous session.
At 10:17 a.m. ET, the Dow Jones Industrial Average .DJI was down 269.08 points, or 0.85%, at 31,241.35, the S&P 500 .SPX was down 44.41 points, or 1.12%, at 3,910.59, and the Nasdaq Composite .IXIC was down 188.01 points, or 1.59%, at 11,628.20.
Boeing Co BA.N dipped 4.6% as the planemaker expects its 737 MAX 10 jet to be certified by U.S. regulators next year and the MAX 7 variant by the end of 2022.
Nvidia Corp NVDA.O dropped 8.8% after U.S. officials told the chip designer to stop exporting two top computing chips for artificial intelligence work to China.
Advanced Micro Devices Inc AMD.O slid 5.5% after it was told to stop exporting its top artificial intelligence chip to China.
Qualcomm Inc QCOM.O slipped 4.5% after the UK-based chip firm Arm sued the chipmaker and its recently acquired chip design firm Nuvia Inc for breach of license agreements and trademark infringement.
Hormel Foods Corporation HRL.N fell 6.1% after packaged foods maker cut its full-year profit forecast.
Declining issues outnumbered advancers for a 8.22-to-1 ratio on the NYSE and for a 4.93-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week highs and 30 new lows, while the Nasdaq recorded nine new highs and 235 new lows.
(Reporting by Devik Jain in Bengaluru; Editing by Arun Koyyur)
((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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As the 10-year Treasury yield US10YT=RR rose to its highest level since June 21, heavyweight technology and growth stocks such as Apple Inc AAPL.O, Amazon.com AMZN.O, Tesla Inc TSLA.O and Microsoft Corp MSFT.O fell between 0.3% and 1.8%. The benchmark S&P 500 .SPX has dropped 9.6% since hitting a four-month high in August, with much of the losses triggered by Fed Chair Jerome Powell's hawkish view on interest rate hikes. Investors are worried about how much and how long the Fed will raise rates, with Wall Street's main indexes recording their weakest August performance in seven years in the previous session.
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As the 10-year Treasury yield US10YT=RR rose to its highest level since June 21, heavyweight technology and growth stocks such as Apple Inc AAPL.O, Amazon.com AMZN.O, Tesla Inc TSLA.O and Microsoft Corp MSFT.O fell between 0.3% and 1.8%. By Devik Jain Sept 1 (Reuters) - U.S. stock indexes fell for the fifth straight session on Thursday as fresh signs of a tight labor market raised bets in favor of the Federal Reserve's aggressive approach, lifting bond yields and pressuring growth stocks. Nvidia Corp NVDA.O dropped 8.8% after U.S. officials told the chip designer to stop exporting two top computing chips for artificial intelligence work to China.
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As the 10-year Treasury yield US10YT=RR rose to its highest level since June 21, heavyweight technology and growth stocks such as Apple Inc AAPL.O, Amazon.com AMZN.O, Tesla Inc TSLA.O and Microsoft Corp MSFT.O fell between 0.3% and 1.8%. By Devik Jain Sept 1 (Reuters) - U.S. stock indexes fell for the fifth straight session on Thursday as fresh signs of a tight labor market raised bets in favor of the Federal Reserve's aggressive approach, lifting bond yields and pressuring growth stocks. Nvidia Corp NVDA.O dropped 8.8% after U.S. officials told the chip designer to stop exporting two top computing chips for artificial intelligence work to China.
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As the 10-year Treasury yield US10YT=RR rose to its highest level since June 21, heavyweight technology and growth stocks such as Apple Inc AAPL.O, Amazon.com AMZN.O, Tesla Inc TSLA.O and Microsoft Corp MSFT.O fell between 0.3% and 1.8%. By Devik Jain Sept 1 (Reuters) - U.S. stock indexes fell for the fifth straight session on Thursday as fresh signs of a tight labor market raised bets in favor of the Federal Reserve's aggressive approach, lifting bond yields and pressuring growth stocks. Nvidia Corp NVDA.O dropped 8.8% after U.S. officials told the chip designer to stop exporting two top computing chips for artificial intelligence work to China.
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19532.0
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2022-09-01 00:00:00 UTC
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Russia's Mir Pay sees users increase 20-fold after rivals exit -report
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AAPL
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https://www.nasdaq.com/articles/russias-mir-pay-sees-users-increase-20-fold-after-rivals-exit-report
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nan
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nan
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This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine
MOSCOW, Sept 1 (Reuters) - Russian contactless payment system Mir Pay has seen its user numbers increase 20-fold this summer from a year earlier, the Vedomosti daily reported on Thursday, after Google and Apple limited their payment services in the country.
Alphabet's Google GOOGL.O and Apple AAPL.O were among the scores of Western companies to scale back operations after Russia sent troops into Ukraine on Feb. 24.
Mir Pay, a mobile application developed by the Bank of Russia's National Card Payment System (NSPK), is now one of the few contactless systems available to Russians, and currently only available on Android devices.
Citing an NSPK representative who did not disclose concrete figures, Vedomosti reported that Mir Pay users increased by five times in July and the number of monthly payments by seven times.
Online bank Tinkoff, owned by TCS Group Holding TCSq.L, launched its Tinkoff Pay system in May, joining Gazprombank's GZPRI.MM Gazprom Pay and Sberbank's SBER.MM SberPay on the market, though none are fully comparable to those offered by Apple and Google, analysts have said.
(Reporting by Reuters; editing by Jason Neely)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alphabet's Google GOOGL.O and Apple AAPL.O were among the scores of Western companies to scale back operations after Russia sent troops into Ukraine on Feb. 24. This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine MOSCOW, Sept 1 (Reuters) - Russian contactless payment system Mir Pay has seen its user numbers increase 20-fold this summer from a year earlier, the Vedomosti daily reported on Thursday, after Google and Apple limited their payment services in the country. Online bank Tinkoff, owned by TCS Group Holding TCSq.L, launched its Tinkoff Pay system in May, joining Gazprombank's GZPRI.MM Gazprom Pay and Sberbank's SBER.MM SberPay on the market, though none are fully comparable to those offered by Apple and Google, analysts have said.
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Alphabet's Google GOOGL.O and Apple AAPL.O were among the scores of Western companies to scale back operations after Russia sent troops into Ukraine on Feb. 24. This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine MOSCOW, Sept 1 (Reuters) - Russian contactless payment system Mir Pay has seen its user numbers increase 20-fold this summer from a year earlier, the Vedomosti daily reported on Thursday, after Google and Apple limited their payment services in the country. Mir Pay, a mobile application developed by the Bank of Russia's National Card Payment System (NSPK), is now one of the few contactless systems available to Russians, and currently only available on Android devices.
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Alphabet's Google GOOGL.O and Apple AAPL.O were among the scores of Western companies to scale back operations after Russia sent troops into Ukraine on Feb. 24. This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine MOSCOW, Sept 1 (Reuters) - Russian contactless payment system Mir Pay has seen its user numbers increase 20-fold this summer from a year earlier, the Vedomosti daily reported on Thursday, after Google and Apple limited their payment services in the country. Mir Pay, a mobile application developed by the Bank of Russia's National Card Payment System (NSPK), is now one of the few contactless systems available to Russians, and currently only available on Android devices.
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Alphabet's Google GOOGL.O and Apple AAPL.O were among the scores of Western companies to scale back operations after Russia sent troops into Ukraine on Feb. 24. This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine MOSCOW, Sept 1 (Reuters) - Russian contactless payment system Mir Pay has seen its user numbers increase 20-fold this summer from a year earlier, the Vedomosti daily reported on Thursday, after Google and Apple limited their payment services in the country. Online bank Tinkoff, owned by TCS Group Holding TCSq.L, launched its Tinkoff Pay system in May, joining Gazprombank's GZPRI.MM Gazprom Pay and Sberbank's SBER.MM SberPay on the market, though none are fully comparable to those offered by Apple and Google, analysts have said.
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19533.0
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2022-09-01 00:00:00 UTC
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Stock Market Sell-Off: 2 Top Stocks to Buy Hand Over Fist
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AAPL
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https://www.nasdaq.com/articles/stock-market-sell-off%3A-2-top-stocks-to-buy-hand-over-fist
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nan
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nan
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Federal Reserve chair Jerome Powell sent the stock market packing on Friday, Aug. 26, following his comments that indicate the central bank may continue to increase interest rates in a bid to keep inflation in check.
The hawkish comments from the Fed chair caused the Dow Jones Industrial Average to tumble over a thousand points, while the S&P 500 shed 3.4% of its value. The Nasdaq Composite also slid 3.9% on Friday. Powell's comments delivered a blow to the stock market rally that has been in effect since the beginning of July. Tech stocks have been hit particularly hard by the rising interest rates as the 23% drop in the Nasdaq Composite indicates.
Richly valued tech stocks tend to underperform in a high interest rate environment as investors worry that high borrowing costs could stunt earnings growth. But savvy investors should note technology stocks have outperformed the broad market by a massive margin in recent years.
Data by YCharts.
That's not surprising, as companies in this sector tend to develop disruptive products that shape the future. This is the reason why investors looking to buy potential long-term winners may want to take advantage of the drop and buy solid tech stocks right now. Here are a few names to consider.
1. Tesla
Tesla (NASDAQ: TSLA) stock is trading at 100 times trailing earnings. While that's not remotely cheap when compared to the Nasdaq-100's multiple of 27, it is worth noting that Tesla is trading at a significant discount to its average 2021 price-to-earnings ratio of more than 600. The stock's 21% decline in 2022, along with the impressive growth in its earnings, are the reasons why it is significantly cheaper than last year.
Data by YCharts.
And that presents an opportunity investors may not want to miss, because analysts expect Tesla's bottom line to clock an annual growth rate of 45% for the next five years. The company's adjusted earnings shot up 57% year over year in the second quarter to $2.27 per share as revenue increased 42% to $16.9 billion.
Growing demand for electric vehicles, as well as the company's focus on enhancing its production capacity and deliveries, should continue to fuel Tesla's growth going forward. The company reported annual vehicle production capacity of close to two million vehicles in the second quarter, doubling from the same period last year.
The company aims to increase its annual vehicle deliveries by an average of 50% "over a multi-year horizon" and aspires to hit 20 million annual vehicle deliveries in 2030. That's an ambitious number, but the 24% annual growth expected in the EV market through the end of the decade should help Tesla get closer to its target. Investors should consider taking advantage of any pullbacks in Tesla stock to go long given its immense long-term potential.
2. Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing (NYSE: TSM), popularly known as TSMC, is a steal right now as it trades for just 16 times earnings, a discount to the broader market's multiple. Buying TSMC at these levels looks like a no-brainer given its terrific growth.
The company supplies chips to the world's leading companies such as Apple, Qualcomm, Nvidia, Sony, Broadcom, Intel, and Advanced Micro Devices, among others. Some of its customers are struggling because of weak demand, but others are thriving. AMD, for instance, delivered an impressive report last quarter along with healthy guidance. Qualcomm was also in fine form thanks to its market share gains at premium smartphone companies and the growth in emerging areas such as automotive chips.
Revenue jumped 37% year over year in the second quarter to $18.2 billion. The company also reported an 8.3 percentage point increase in its net profit margin, which sent earnings soaring 67% to $1.55 per share. What's more, TSMC's solid outlook suggests the concerns of a slowdown in semiconductor demand may be unwarranted.
Management's guidance of $20.2 billion in revenue (at the midpoint) this quarter points to a 36% year-over-year jump. Operating margin is also forecast to increase 6.8 percentage points to 48% at the midpoint. For the full year, TSMC is anticipating revenue to increase in the mid-30% range.
Fueling that is solid demand from the high-performance computing, Internet of Things, and automotive segments. These areas have helped TSMC offset weakness in smartphones and personal computers. Even better, TSMC's long-term outlook suggests its diversification will help it grow at a nice clip in the long run.
The company expects to clock 15% to 20% annual revenue growth over the next several years. That's not surprising given global semiconductor industry revenue is expected to increase over 60% this decade to $1 trillion. That's also probably the reason why analysts are expecting 23% annual earnings growth from TSMC over the next five years.
All this makes TSMC a top semiconductor stock to buy right now following its 30% decline in 2022.
10 stocks we like better than Tesla
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 Tesla 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
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Intel, Nvidia, Qualcomm, Taiwan Semiconductor Manufacturing, and Tesla. The Motley Fool recommends Broadcom Ltd and recommends the following options: long January 2023 $57.50 calls on Intel, long March 2023 $120 calls on Apple, short January 2023 $57.50 puts on Intel, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Federal Reserve chair Jerome Powell sent the stock market packing on Friday, Aug. 26, following his comments that indicate the central bank may continue to increase interest rates in a bid to keep inflation in check. Growing demand for electric vehicles, as well as the company's focus on enhancing its production capacity and deliveries, should continue to fuel Tesla's growth going forward. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Intel, Nvidia, Qualcomm, Taiwan Semiconductor Manufacturing, and Tesla.
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The company supplies chips to the world's leading companies such as Apple, Qualcomm, Nvidia, Sony, Broadcom, Intel, and Advanced Micro Devices, among others. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Intel, Nvidia, Qualcomm, Taiwan Semiconductor Manufacturing, and Tesla. The Motley Fool recommends Broadcom Ltd and recommends the following options: long January 2023 $57.50 calls on Intel, long March 2023 $120 calls on Apple, short January 2023 $57.50 puts on Intel, and short March 2023 $130 calls on Apple.
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Tesla Tesla (NASDAQ: TSLA) stock is trading at 100 times trailing earnings. The company's adjusted earnings shot up 57% year over year in the second quarter to $2.27 per share as revenue increased 42% to $16.9 billion. See the 10 stocks *Stock Advisor returns as of August 17, 2022 Harsh Chauhan has no position in any of the stocks mentioned.
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This is the reason why investors looking to buy potential long-term winners may want to take advantage of the drop and buy solid tech stocks right now. The company reported annual vehicle production capacity of close to two million vehicles in the second quarter, doubling from the same period last year. That's also probably the reason why analysts are expecting 23% annual earnings growth from TSMC over the next five years.
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19534.0
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2022-09-01 00:00:00 UTC
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3 Disruptors I Love Right Now
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AAPL
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https://www.nasdaq.com/articles/3-disruptors-i-love-right-now-4
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nan
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nan
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The stock market is packed with excellent investment ideas right now. Some of the finest companies I know have seen their share prices slide way down since the inflation panic started in November 2021.
As an example, the three companies listed below are pioneering innovators with fantastic long-term business prospects. The inflation crunch may hurt for a while, but they are in a position to disrupt their target markets. Yet, their stocks have suffered giant corrections in recent months. When you put tremendous growth prospects together with bargain-bin stock prices, it adds up to no-brainer buying opportunities.
1. Sweet, sweet Lemonade
The insurance industry is incredibly ripe for disruption. Getting the right insurance plans to fit your needs can be a difficult process, and nobody likes to pay huge premiums to protect their cars, homes, or other properties. When the time comes to file a claim, that can be a downright hostile experience. Yet, some of this coverage is required by law, so there's no way around it.
That's where Lemonade (NYSE: LMND) comes in.
This company wants to take the pain out of insurance by automating everything. Using artificial intelligence (AI) and machine-learning tools, Lemonade analyzes risks, insurance plans, and outcomes from the past to shape the renters and auto coverage plans of the future. You sign up through an online form, claims are settled by machines, and you don't have to fight human insurance agents to get what you need out of Lemonade's services. These are early days in Lemonade's ambitious growth story. The company is unprofitable, but top-line sales are skyrocketing:
LMND Revenue (TTM) data by YCharts.
Don't let that plummeting earnings chart scare you away. Economies of scale are about to kick in, and the company is only getting started in the auto insurance market. Lemonade's management team expects the next quarter to show record losses, followed by a sustained uptrend. In the long run, this AI-powered business model should translate into low operating costs and near-optimal risk management. Just give those computers some time to learn the ropes.
And the target market is gigantic. Lemonade's revenues added up to just $171 million over the last four quarters, based on $110 million in net insurance premiums. Sector giant Progressive collected net premiums of $46.9 billion and revenue of $47.7 billion over the same period. Lemonade can build a massive business by taking just a tiny handful of customers from Progressive and friends. I believe that the company will achieve much more than that in the long run, so the stock is a no-brainer buy today.
2. Universal Display is already everywhere
And the future looks even bigger. I'm not kidding.
Organic light-emitting diode (OLED) screens are already found in pretty much every high-end smartphone worth its salt, including the entire Apple iPhone line. The technology is also familiar in mid-range handsets nowadays. OLED panels are also making inroads in the living room, starting with top-shelf TV sets. Next, we should see OLED-based lighting panels making a similar journey from pricey novelty to an everyday necessity.
Universal Display (NASDAQ: OLED) develops the technology behind those ultra-efficient OLED panels, doling out licenses to screen builders around the world. The company also acts as a materials reseller, controlling the supply of the chemicals that go into making these ultra-efficient digital screens and lighting panels.
Generally speaking, Universal Display's royalties and material fees are based on the total area of OLED panels that are built with its technology. That's why big-screen TVs are such a powerful upgrade from the small-screen world of tablets and smartphones.
And like I said, that's just the beginning. In the long run, I expect to see OLED panels in essentially every place you'd use an LCD screen today -- and more. You see, OLED screens can do things that old-school displays would never dream of. For example, you can bend or roll up an OLED screen with the right type of surface materials or build transparent screens where the image appears to float in mid-air. And yeah, the pixels emit their own light, as the technology's name implies, which is why you can use them for household lighting.
OLED is an exciting technology with numerous real-world use cases, and I can't wait to see where Universal Display will go from here. The company is turning the concept of video screens upside down and inside out.
3. Netflix is just taking a chill pill
Good old Netflix (NASDAQ: NFLX) has changed the world before. Its iconic red DVD mailers smashed the video store industry more than a decade ago. Netflix could have rested on its laurels but chose to abandon the DVD rentals space altogether when broadband internet connections became fast and common enough to support an all-digital video-streaming business instead.
Almost exactly 11 years after the Qwikster event established video-streaming as a serious business operation for Netflix, things have changed. Netflix is still the global leader in streaming media subscribers, award-winning content productions, and digital media revenues. Walt Disney is catching up fast, but with a lower-priced subscription service that is automatically easier to sell in a price-conscious market. Other rivals are attempting to set up shop as producers of top-quality TV shows, family-friendly fare, and other niches. But Netflix is running far ahead of the competition, paving the way to tremendous business growth as the streaming industry takes the baton from cable, broadcast, satellite, and movie theater publishers.
In fact, Netflix stands at an important crossroads right now. The company is shifting its focus away from maximum subscriber growth and toward profitable growth for the long haul. Many investors have failed to notice this crucial strategy update, and this misunderstanding led to a massive share price drop when the seemingly all-important subscriber growth slowed down in 2022.
So Netflix is exploring new products while focusing on bottom-line profits and top-line revenues with a newfound intensity. The stock is now trading 68% below last November's all-time highs, exploring share prices not seen since early 2018. At the same time, the core business is healthier than ever. Netflix's trailing earnings before interest, taxes, depreciation, and amortization (EBITDA) stand at $20 billion today -- equal to the company's total sales in 2020.
NFLX Revenue (TTM) data by YCharts.
Netflix is going places, and the massive sell-off in 2022 made no sense at all. We are looking at a game-changing investment opportunity here, folks. I have been adding to my Netflix holdings over the summer, and I highly recommend you do the same. Digital media is the future, and Netflix is leading the way there, even if the stock chart is sending different signals.
10 stocks we like better than Lemonade, 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 Lemonade, 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
Anders Bylund has positions in Lemonade, Inc., Netflix, Universal Display, and Walt Disney. The Motley Fool has positions in and recommends Apple, Lemonade, Inc., Netflix, and Walt Disney. The Motley Fool recommends Progressive and Universal Display and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Netflix could have rested on its laurels but chose to abandon the DVD rentals space altogether when broadband internet connections became fast and common enough to support an all-digital video-streaming business instead. But Netflix is running far ahead of the competition, paving the way to tremendous business growth as the streaming industry takes the baton from cable, broadcast, satellite, and movie theater publishers. Many investors have failed to notice this crucial strategy update, and this misunderstanding led to a massive share price drop when the seemingly all-important subscriber growth slowed down in 2022.
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Netflix is still the global leader in streaming media subscribers, award-winning content productions, and digital media revenues. The Motley Fool has positions in and recommends Apple, Lemonade, Inc., Netflix, and Walt Disney. The Motley Fool recommends Progressive and Universal Display and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple.
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Universal Display (NASDAQ: OLED) develops the technology behind those ultra-efficient OLED panels, doling out licenses to screen builders around the world. See the 10 stocks *Stock Advisor returns as of August 17, 2022 Anders Bylund has positions in Lemonade, Inc., Netflix, Universal Display, and Walt Disney. The Motley Fool recommends Progressive and Universal Display and recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple.
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When you put tremendous growth prospects together with bargain-bin stock prices, it adds up to no-brainer buying opportunities. In the long run, I expect to see OLED panels in essentially every place you'd use an LCD screen today -- and more. 10 stocks we like better than Lemonade, Inc.
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19535.0
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2022-09-01 00:00:00 UTC
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Should BNY Mellon US Large Cap Core Equity ETF (BKLC) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-bny-mellon-us-large-cap-core-equity-etf-bklc-be-on-your-investing-radar-2
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nan
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nan
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Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the BNY Mellon US Large Cap Core Equity ETF (BKLC), a passively managed exchange traded fund launched on 04/09/2020.
The fund is sponsored by Bny Mellon. It has amassed assets over $436.71 million, making it one of the average sized 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%, making it the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.47%.
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 32% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.74% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 31.43% of total assets under management.
Performance and Risk
BKLC seeks to match the performance of the MORNINGSTAR U.S. LARGE CAP INDEX before fees and expenses. The Morningstar US Large Cap Index is a float-adjusted market capitalization weighted index designed to measure the performance of U.S. large-capitalization stocks.
The ETF has lost about -18.28% so far this year and is down about -13.36% in the last one year (as of 09/01/2022). In the past 52-week period, it has traded between $67.72 and $90.50.
The ETF has a beta of 1.05 and standard deviation of 19.50% for the trailing three-year period. With about 232 holdings, it effectively diversifies company-specific risk.
Alternatives
BNY Mellon US Large Cap Core Equity 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, BKLC 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 $295.36 billion in assets, SPDR S&P 500 ETF has $361.92 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
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BNY Mellon US Large Cap Core Equity ETF (BKLC): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.74% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report You should consider the BNY Mellon US Large Cap Core Equity ETF (BKLC), a passively managed exchange traded fund launched on 04/09/2020.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.74% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report You should consider the BNY Mellon US Large Cap Core Equity ETF (BKLC), a passively managed exchange traded fund launched on 04/09/2020.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.74% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives BNY Mellon US Large Cap Core Equity 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 7.74% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report You should consider the BNY Mellon US Large Cap Core Equity ETF (BKLC), a passively managed exchange traded fund launched on 04/09/2020.
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19536.0
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2022-09-01 00:00:00 UTC
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Should Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-goldman-sachs-activebeta-u.s.-large-cap-equity-etf-gslc-be-on-your-investing-4
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nan
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nan
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The Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC) was launched on 09/17/2015, 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 Goldman Sachs Funds. It has amassed assets over $11.66 billion, making it one of the largest 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
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 0.09%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.47%.
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 28.50% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.64% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 22.42% of total assets under management.
Performance and Risk
GSLC seeks to match the performance of the Goldman Sachs ActiveBeta U.S. Large Cap Equity Index before fees and expenses. The Goldman Sachs ActiveBeta U.S. Large Cap Equity Index is designed to deliver exposure to equity securities of large-capitalization U.S. issuers.
The ETF has lost about -17.28% so far this year and is down about -12.57% in the last one year (as of 09/01/2022). In the past 52-week period, it has traded between $72.75 and $95.62.
The ETF has a beta of 0.98 and standard deviation of 23.76% for the trailing three-year period, making it a medium risk choice in the space. With about 441 holdings, it effectively diversifies company-specific risk.
Alternatives
Goldman Sachs ActiveBeta U.S. Large Cap Equity 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, GSLC 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 $295.36 billion in assets, SPDR S&P 500 ETF has $361.92 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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
Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.64% 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 $11.66 billion, making it one of the largest 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 5.64% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Performance and Risk GSLC seeks to match the performance of the Goldman Sachs ActiveBeta U.S. Large Cap Equity Index before fees and expenses.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 5.64% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives Goldman Sachs ActiveBeta U.S. Large Cap Equity 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 5.64% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report The Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC) was launched on 09/17/2015, 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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19537.0
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2022-09-01 00:00:00 UTC
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Should Schwab Fundamental U.S. Large Company Index ETF (FNDX) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-schwab-fundamental-u.s.-large-company-index-etf-fndx-be-on-your-investing-radar-4
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nan
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nan
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Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Schwab Fundamental U.S. Large Company Index ETF (FNDX) is a passively managed exchange traded fund launched on 08/13/2013.
The fund is sponsored by Charles Schwab. It has amassed assets over $9.40 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Large cap companies typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.
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 0.25%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2%.
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 15.90% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 3.93% of total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT).
The top 10 holdings account for about 19.73% of total assets under management.
Performance and Risk
FNDX seeks to match the performance of the Russell RAFI US Large Co. Index before fees and expenses. The Russell RAFI US Large Company Index measures the performance of the large company size segment by fundamental overall company scores.
The ETF has lost about -9.35% so far this year and is down about -3.55% in the last one year (as of 09/01/2022). In the past 52-week period, it has traded between $49.93 and $59.90.
The ETF has a beta of 0.99 and standard deviation of 24.50% for the trailing three-year period, making it a medium risk choice in the space. With about 731 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab Fundamental U.S. Large Company Index ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, FNDX is an excellent option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $51.65 billion in assets, Vanguard Value ETF has $97.12 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Exxon Mobil Corporation (XOM): Free Stock Analysis Report
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 3.93% of total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report It has amassed assets over $9.40 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 3.93% of total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Schwab Fundamental U.S. Large Company Index ETF (FNDX) is a passively managed exchange traded fund launched on 08/13/2013.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 3.93% of total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives Schwab Fundamental U.S. Large Company Index ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 3.93% of total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Schwab Fundamental U.S. Large Company Index ETF (FNDX) is a passively managed exchange traded fund launched on 08/13/2013.
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19538.0
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2022-09-01 00:00:00 UTC
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Should Vanguard Russell 1000 ETF (VONE) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-russell-1000-etf-vone-be-on-your-investing-radar-3
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nan
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nan
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Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Vanguard Russell 1000 ETF (VONE) is a passively managed exchange traded fund launched on 09/22/2010.
The fund is sponsored by Vanguard. It has amassed assets over $2.72 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
Large cap companies typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.08%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.49%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 28.80% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 5.96% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 24.15% of total assets under management.
Performance and Risk
VONE seeks to match the performance of the Russell 1000 Index before fees and expenses. The Russell 1000 Index measures the performance of large-capitalization stocks in the United States.
The ETF has lost about -17.29% so far this year and is down about -12.86% in the last one year (as of 09/01/2022). In the past 52-week period, it has traded between $166.82 and $219.99.
The ETF has a beta of 1.02 and standard deviation of 24.68% for the trailing three-year period, making it a medium risk choice in the space. With about 1019 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Russell 1000 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, VONE is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $295.36 billion in assets, SPDR S&P 500 ETF has $361.92 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Vanguard Russell 1000 ETF (VONE): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 5.96% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Vanguard Russell 1000 ETF (VONE) is a passively managed exchange traded fund launched on 09/22/2010.
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Apple Inc. (AAPL): Free Stock Analysis Report Looking at individual holdings, Apple Inc. (AAPL) accounts for about 5.96% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Vanguard Russell 1000 ETF (VONE) is a passively managed exchange traded fund launched on 09/22/2010.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 5.96% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives Vanguard Russell 1000 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 5.96% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Annual operating expenses for this ETF are 0.08%, making it one of the least expensive products in the space.
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19539.0
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2022-09-01 00:00:00 UTC
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3 No-Brainer Warren Buffett Stocks to Buy in September
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AAPL
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https://www.nasdaq.com/articles/3-no-brainer-warren-buffett-stocks-to-buy-in-september
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nan
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nan
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There are signs that Warren Buffett's buying spree that began earlier this year is winding down. The legendary investor didn't buy any new stocks for Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) portfolio in the second quarter, although he did add to a few positions.
Several stocks held by Berkshire remain attractive. Here are three no-brainer Buffett stocks to buy in September.
1. Apple
Apple (NASDAQ: AAPL) ranks by far as the largest holding in Berkshire's portfolio. Buffett couldn't resist scooping up even more shares of the technology giant in Q2. Apple stock isn't as attractively valued as it was in June, but it's still a smart pick.
The new iPhone 14 will be launched on Sept. 7, 2022. Apple's rollouts of new iPhone versions typically fuel higher sales during the latter part of each year. Although no major changes are expected with iPhone 14, the company seems likely to benefit from increased momentum as a result of its launch.
There are other growth drivers for Apple's iPhone ecosystem that are more important for the company's long-term prospects, though. In particular, increasing 5G adoption should serve as a significant tailwind. Apple CEO Tim Cook correctly noted in the company's Q2 conference call that global 5G penetration remains low.
Cook didn't talk about Apple's augmented reality (AR) plans in the Q2 call. However, the company could introduce an AR/mixed reality (MR) headset in early 2023. Analyst Ming-Chi Kuo believes this device could be the biggest product for Apple since the iPhone.
2. Chevron
It's no secret that Buffett has become a big fan of oil stocks. Berkshire could be gearing up to buy a much larger stake in Occidental Petroleum. However, Chevron (NYSE: CVX) is arguably the best Buffett stock in the energy sector.
While Chevron's shares have soared so far this year, the stock remains attractively valued with a forward earnings multiple of around nine times. Income investors will also like the oil and gas giant's dividend yield of over 3.6%.
Over the short term, Chevron could benefit from another uptick in fuel prices. OPEC has already signaled that it's open to reducing oil production, a move that would almost certainly cause prices to rise. The European Union will also impose a partial ban on Russian crude oil imports in December.
Chevron has a strong financial position that it's using to, in CFO Pierre Breber's words, "invest and grow both traditional and new energy." The sizzling stock performance might cool off over time. Over the next year or so, though, the stock could continue its winning ways.
3. Markel
Buffett initiated a brand-new position in Markel (NYSE: MKL) in the first quarter and bought even more shares in Q2. This wasn't surprising whatsoever, considering that Markel is basically a "baby Berkshire."
Markel ranks as a leader in the specialty insurance market. The company's underwriting expertise enables it to consistently generate profits. Its reputation allows it to attract new customers and hold onto existing ones.
The stock's performance over the next several months will likely depend largely on how the overall market does. That's because Markel, like Berkshire, invests heavily in other publicly traded businesses. But there are some reasons to believe that a new bull market could be emerging. If so, Markel's shares could surge higher.
Long-term investors have to love what Markel co-CEO Tom Gayner said in the company's recent Q2 conference call, "We think about years and decades and generations rather than quarters." That perspective sounds a lot like Buffett himself. With its exceptional management team and strong underlying business, Markel is the kind of stock you can buy in any month and hold for years.
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
Keith Speights has positions in Apple and Berkshire Hathaway (B shares). The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and Markel. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) ranks by far as the largest holding in Berkshire's portfolio. Apple CEO Tim Cook correctly noted in the company's Q2 conference call that global 5G penetration remains low. Long-term investors have to love what Markel co-CEO Tom Gayner said in the company's recent Q2 conference call, "We think about years and decades and generations rather than quarters."
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Apple Apple (NASDAQ: AAPL) ranks by far as the largest holding in Berkshire's portfolio. The legendary investor didn't buy any new stocks for Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) portfolio in the second quarter, although he did add to a few positions. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and Markel.
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Apple Apple (NASDAQ: AAPL) ranks by far as the largest holding in Berkshire's portfolio. The legendary investor didn't buy any new stocks for Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) portfolio in the second quarter, although he did add to a few positions. See the 10 stocks *Stock Advisor returns as of August 17, 2022 Keith Speights has positions in Apple and Berkshire Hathaway (B shares).
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Apple Apple (NASDAQ: AAPL) ranks by far as the largest holding in Berkshire's portfolio. Here are three no-brainer Buffett stocks to buy in September. That's right -- they think these 10 stocks are even better buys.
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19540.0
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2022-09-01 00:00:00 UTC
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2 Stock-Split Stocks to Buy Hand Over Fist Amid the Market Sell-Off
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AAPL
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https://www.nasdaq.com/articles/2-stock-split-stocks-to-buy-hand-over-fist-amid-the-market-sell-off
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nan
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nan
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Stock splits have gotten a lot of attention this year with several prominent companies deciding to take this step in a bid to, among other things, make their share prices more attractive for retail investors.
Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA) are two companies that initiated stock splits relatively recently. It's been two years since Apple executed its 4-for-1 stock split on Aug. 28, 2020. The company's share price is up 29% since the stock started trading on a split-adjusted basis, beating the S&P 500 handsomely despite the recent volatility in the market.
AAPL data by YCharts
Nvidia's stock price also took off following its 4-for-1 split on July 20, 2021. But 2022 has been terrible for the chipmaker thanks to an oversupply in the graphics card market that has dealt a body blow to its gaming business.
NVDA data by YCharts
A stock split is more of a cosmetic move that simply increases the number of shares outstanding while reducing the price proportionally. This move doesn't change the prospects of a company or its intrinsic value. But it does make shares more accessible to a wider pool of investors. That could lead to an increase in demand for a company's shares, and send the price higher.
A stock split shouldn't be the sole reason to buy shares in a company. However, stock-split stocks such as Apple and Nvidia are coincidently great buys considering the opportunities they are sitting on and their valuations. Let's look at the reasons why buying these companies looks like a good idea amid the market sell-off.
Apple and Nvidia have solid long-term growth potential
Apple and Nvidia operate in markets that have impressive long-term growth potential and both companies are dominant players in their respective sectors.
Apple, for instance, is benefiting from the rapid adoption of 5G smartphones. It led the 5G smartphone market in 2021 with a 31% share, according to Strategy Analytics, and seems to have sustained its dominance in 2022 as well. Apple has shipped 101 million iPhones in the first six months of 2022, up slightly from 99.7 million units in the same period last year. That slight increase has come at a time when overall smartphone shipments have contracted 8.8% year over year during the same period.
The higher prices of 5G smartphones are playing in Apple's favor. Android users are switching to iPhones, and the company's installed user base is also upgrading to its new devices. With global 5G mobile subscriptions expected to hit 4.4 billion in 2027 from an estimated 1 billion this year, Apple's largest product line seems to have a bright future ahead.
Throw in other catalysts such as the services business, Apple's move into nascent but potentially lucrative areas such as the metaverse and self-driving cars, and its growth could improve in the long run. Analysts are currently anticipating 9.5% annual earnings growth from Apple for the next five years, but it wouldn't be surprising to see it grow at a faster pace thanks to multiple catalysts.
Nvidia, on the other hand, is the leading player in the discrete graphics card market. These chips are deployed in personal computers and laptops for gaming. Nvidia controlled 78% of this space in the first quarter of 2022, according to Jon Peddie Research. However, the graphics card market is currently in bad shape on account of oversupply, which is forcing the company to reduce prices and inventories.
Nvidia's fiscal 2023 second-quarter revenue was up just 3% year over year to $6.7 billion. The company expects a major contraction in its top and bottom lines this quarter. But investors shouldn't forget that Nvidia is expected to regain its mojo in the next fiscal year. Analysts expect the company's top line to increase 14.5% in fiscal 2024 following an increase of just 2% this year. The five-year annual earnings growth forecast of 22.8% is also bright.
These estimates are not surprising, as the discrete graphics card market is expected to generate annual revenue of $57 billion in 2025, up from the trailing twelve-month revenue of $46 billion. More importantly, Nvidia has other notable catalysts in the form of the data center and automotive businesses.
The data center was its largest business last quarter, accounting for 57% of the top line. The segment produced $3.8 billion in revenue, up 61% from the prior year. Automotive revenue was up 45% year over year to $220 million. These businesses could sustain their impressive momentum thanks to their increasing appetite for chips, as well as Nvidia's design wins in automotive and its efforts to expand the product lineup in the data center business to tap into new opportunities.
The valuations are enticing
Apple stock is down 9% in 2022. Nvidia has taken a bigger beating, with its shares declining nearly 47%.
Apple's decline has brought the company's price-to-earnings (P/E) ratio down to 27, which is lower than its 2020 and 2021 multiples of 40 and 31, respectively. If the stock market sell-off continues in the near term, investors will have an opportunity to buy shares of Apple at a more attractive valuation.
Nvidia's trailing P/E ratio of 46 represents a huge discount to its 2021 multiple of 90. The company is facing near-term headwinds thanks to the weakness in the gaming segment, but the points above indicate that it is built for long-term growth. That's why investors should be keeping a close eye on Nvidia if the stock market sell-off intensifies thanks to a hawkish Federal Reserve, as there may be opportunities to buy this semiconductor stock at a cheaper valuation.
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
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Nvidia. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA) are two companies that initiated stock splits relatively recently. AAPL data by YCharts Nvidia's stock price also took off following its 4-for-1 split on July 20, 2021. Stock splits have gotten a lot of attention this year with several prominent companies deciding to take this step in a bid to, among other things, make their share prices more attractive for retail investors.
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Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA) are two companies that initiated stock splits relatively recently. AAPL data by YCharts Nvidia's stock price also took off following its 4-for-1 split on July 20, 2021. Apple and Nvidia have solid long-term growth potential Apple and Nvidia operate in markets that have impressive long-term growth potential and both companies are dominant players in their respective sectors.
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Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA) are two companies that initiated stock splits relatively recently. AAPL data by YCharts Nvidia's stock price also took off following its 4-for-1 split on July 20, 2021. Apple and Nvidia have solid long-term growth potential Apple and Nvidia operate in markets that have impressive long-term growth potential and both companies are dominant players in their respective sectors.
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Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA) are two companies that initiated stock splits relatively recently. AAPL data by YCharts Nvidia's stock price also took off following its 4-for-1 split on July 20, 2021. A stock split shouldn't be the sole reason to buy shares in a company.
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19541.0
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2022-08-31 00:00:00 UTC
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US STOCKS-Wall Street set for higher open as tech stocks rebound, oil drops
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-set-for-higher-open-as-tech-stocks-rebound-oil-drops
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nan
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nan
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By Devik Jain and Sruthi Shankar
Aug 31 (Reuters) - U.S. stock indexes were set to open higher on Wednesday as technology and growth stocks rebounded, while weaker-than-expected private payrolls data and a slide in oil prices helped ease some worries about inflation.
An ADP National Employment report showed private payrolls increased by 132,000 jobs in August, falling short of economists' forecast of job growth of 288,000, according to a Reuters poll.
The more comprehensive and closely watched jobs data on Friday is expcted to show nonfarm payrolls rose by 300,000 last month after recording a 528,000 increase in July.
Any signs of a cooling job market would be welcomed by investors as it could ease the pressure on the Federal Reserve to stick to outsized rate hikes.
"We continue to believe that the U.S. economy is relatively strong compared to Europe but the Fed will not believe that inflation is coming down until we see a couple of months of drop in prices," said Jay Hatfield, chief executive officer at Infrastructure Capital Management in New York.
The three main indexes are set for sharp monthly declines, with the tech-heavy Nasdaq .IXIC down more than 4% after Fed Chair Jerome Powell's blunt and hawkish remarks on Friday about keeping monetary policy tight "for some time" quashed hopes of more modest rate hikes.
Meanwhile, mixed economic data signaling an easing of price pressures and a tight labor market has weighed on investors' minds heading into September, which is typically a weak month for stock market returns.
The benchmark S&P 500 .SPX is up 9.6% from its mid-June lows but remains in bear market after plummeting earlier this year.
Heavyweight technology and growth stocks such as Apple Inc AAPL.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O which took a beating in last few days due to a surge in Treasury yields, rose between 0.6% and 0.8% in premarket trading.
Marathon Oil MRO.N slipped 3.2% to lead declines among oil stocks as U.S. crude prices CLc1 slid about 3% to $89 a barrel on recession fears. O/R
"Oil is down and that's usually good for tech stocks. If oil is down that means inflation is coming down. There is a 5% bleed through from oil prices to core CPI," Hatfield said.
At 08:46 a.m. ET, Dow e-minis 1YMcv1 were up 63 points, or 0.2%, S&P 500 e-minis EScv1 were up 13.5 points, or 0.34%, and Nasdaq 100 e-minis NQcv1 were up 79.75 points, or 0.65%.
Netflix Inc NFLX.O gained 2.1% after it hired two of social media firm Snap Inc's SNAP.N top executives to help the streaming giant with its advertising-supported tier plan. Shares of Snap dropped 10.1%.
Chewy Inc CHWY.N slid 10.5% after the online pet supplies retailer cut its full-year 2022 sales outlook, while Calvin Klein owner PVH Corp PVH.N fell 5.5% after slashing 2022 profit outlook.
Bed Bath & Beyond Inc BBBY.O slumped 30.5% after saying it would close 150 stores and cut about 20% of its corporate and supply chain workforce as the cash-strapped home goods retailer struggles to turn around its business.
HP Inc HPQ.N dipped 6.1% after it forecast downbeat fourth-quarter and full-year profit.
(Reporting by Devik Jain and Sruthi Shankar in Bengaluru; Editing by Sriraj Kalluvila 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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Heavyweight technology and growth stocks such as Apple Inc AAPL.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O which took a beating in last few days due to a surge in Treasury yields, rose between 0.6% and 0.8% in premarket trading. "We continue to believe that the U.S. economy is relatively strong compared to Europe but the Fed will not believe that inflation is coming down until we see a couple of months of drop in prices," said Jay Hatfield, chief executive officer at Infrastructure Capital Management in New York. The three main indexes are set for sharp monthly declines, with the tech-heavy Nasdaq .IXIC down more than 4% after Fed Chair Jerome Powell's blunt and hawkish remarks on Friday about keeping monetary policy tight "for some time" quashed hopes of more modest rate hikes.
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Heavyweight technology and growth stocks such as Apple Inc AAPL.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O which took a beating in last few days due to a surge in Treasury yields, rose between 0.6% and 0.8% in premarket trading. By Devik Jain and Sruthi Shankar Aug 31 (Reuters) - U.S. stock indexes were set to open higher on Wednesday as technology and growth stocks rebounded, while weaker-than-expected private payrolls data and a slide in oil prices helped ease some worries about inflation. An ADP National Employment report showed private payrolls increased by 132,000 jobs in August, falling short of economists' forecast of job growth of 288,000, according to a Reuters poll.
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Heavyweight technology and growth stocks such as Apple Inc AAPL.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O which took a beating in last few days due to a surge in Treasury yields, rose between 0.6% and 0.8% in premarket trading. By Devik Jain and Sruthi Shankar Aug 31 (Reuters) - U.S. stock indexes were set to open higher on Wednesday as technology and growth stocks rebounded, while weaker-than-expected private payrolls data and a slide in oil prices helped ease some worries about inflation. Meanwhile, mixed economic data signaling an easing of price pressures and a tight labor market has weighed on investors' minds heading into September, which is typically a weak month for stock market returns.
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Heavyweight technology and growth stocks such as Apple Inc AAPL.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O which took a beating in last few days due to a surge in Treasury yields, rose between 0.6% and 0.8% in premarket trading. By Devik Jain and Sruthi Shankar Aug 31 (Reuters) - U.S. stock indexes were set to open higher on Wednesday as technology and growth stocks rebounded, while weaker-than-expected private payrolls data and a slide in oil prices helped ease some worries about inflation. "We continue to believe that the U.S. economy is relatively strong compared to Europe but the Fed will not believe that inflation is coming down until we see a couple of months of drop in prices," said Jay Hatfield, chief executive officer at Infrastructure Capital Management in New York.
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19542.0
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2022-08-31 00:00:00 UTC
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Biden’s buyback tax shows who really runs America
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AAPL
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https://www.nasdaq.com/articles/bidens-buyback-tax-shows-who-really-runs-america
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nan
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nan
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Reuters
Reuters
NEW YORK (Reuters Breakingviews) - When returning money to shareholders, companies prefer to buy back stock rather than pay dividends. For good reason: it saves some investors billions of dollars a year in tax. A new 1% levy on share repurchases recently signed into law https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/19/fact-sheet-the-inflation-reduction-act-supports-workers-and-families/ by President Joe Biden is meant to put the brakes on buybacks. It won’t, but instead might irritate executives and investors who never benefited in the first place.
Opponents of share buybacks, including politicians ranging from Democrat Ron Wyden https://www.finance.senate.gov/chairmans-news/wyden-stock-buyback-legislation-passes-senate to Republican Marco Rubio https://www.rubio.senate.gov/public/index.cfm/2022/5/rubio-urges-chips-recipients-to-put-america-first, often claim that buying back shares diverts money away from investment in factories, jobs and research. That’s a red herring, though. If companies like Apple, which announced $90 billion in buybacks https://www.apple.com/newsroom/2022/04/apple-reports-second-quarter-results/ in April, couldn’t buy back shares, they could distribute cash as one-off dividends.
The real problem with buybacks is the way they are taxed. For companies, there’s no economic distinction between the $882 billion https://www.prnewswire.com/news-releases/sp-500-buybacks-set-quarterly-and-annual-record-301502561.html that the members of the S&P 500 Index spent on buybacks last year and the $511 billion https://www.prnewswire.com/news-releases/sp-dow-jones-indices-reports-us-indicated-dividend-payments-increased-18-0-billion-in-q4-2021-and-a-record-69-8-billion-in-2021--301453374.html they paid in dividends. For investors, though, there’s a big difference. While dividends are taxed as income, shares sold in a buyback incur capital gains tax that applies only to the owner’s overall profit.
This doesn’t much matter for investors who pay no tax, like pension funds and nonprofit bodies. Individual investors whose dividends and capital gains are taxed at the same rate – generally 20% – are also indifferent. But it matters enormously for foreign investors, including hedge funds based in tax havens like the Cayman Islands. They generally pay no U.S. tax on capital gains, but a 30% tax on dividends. Foreign investors hold around 30% of U.S.-listed stock, according to Brookings Institution fellow Steven Rosenthal.
Imagine if companies had paid out that $882 billion as dividends rather than in buying back stock. The government would have gained up to $80 billion in extra tax revenue – around 10 times what the new buyback tax is forecast to raise https://www.jct.gov/CMSPages/GetFile.aspx?guid=40b08e39-706e-46aa-aef2-438a26936398 per year. The true figure would be lower, since many foreign investors benefit from bilateral tax treaties that reduce their rate. But even taxed at 15%, the extra dividends would bring in five times as much as the government is set to make from the buyback levy.
THUMB ON THE SCALE
In an ideal world, buybacks and dividends would incur the same tax. It’s not complicated – the late Yale Law School Professor Marvin Chirelstein laid out a relatively simple way https://openyls.law.yale.edu/bitstream/handle/20.500.13051/4057/Optional_Redemptions_and_Optional_Dividends_Taxing_the_Repurchase_of_Common_Shares__78_Yale_Law_Journal_739__1969_.pdf?sequence=2&isAllowed=y to tax dividends and buybacks alike in the 1960s. However, in America’s divided political system, that’s a pipe dream. Equalizing the two would break Biden’s grandstanding promise not to raise tax on households earning less than $400,000 a year by even a penny Biden would not raise taxes.
The 1% tax on buybacks is therefore a second-best option. It makes repurchasing shares fractionally less attractive for companies and could raise $74 billion over a decade. But its impact on corporate behavior is likely to be trifling. The annual proceeds are less than 0.5% of the S&P 500’s forecast earnings this year, according to Refinitiv estimates. Companies can also offset shares they buy back against new equity they issue, say for employee stock plans.
The tax could still create a political bang, though. The fact it’s paid directly by the company means it’s borne by all investors including those typically exempt from taxes. Proponents of the scheme argue Congress could raise the rate in future. But that would create yelps of protest from managers of retirees’ money.
A PROBLEM WITHOUT A FIX
Biden’s reforms failed to tackle the biggest problem with share buybacks, which is that they allow very wealthy Americans to amass fortunes and pass them on to their heirs while sheltering from tax.
To see why imagine the founder of a big company who wants to hand their empire to the next generation. By declining to sell whenever the company buys back shares, they amass a bigger proportion of the company’s equity. When the mogul dies, owing to a quirk of the tax system, the embedded capital gain resets to zero, relieving heirs of a big liability.
This is something tax scholars Daniel Hemel and Gregg Polsky call “the Mark Zuckerberg problem https://digitalcommons.law.uga.edu/cgi/viewcontent.cgi?article=2398&context=fac_artchop,” after the founder of Facebook. Removing that perk – which Biden proposed https://www.whitehouse.gov/briefing-room/statements-releases/2021/04/28/fact-sheet-the-american-families-plan/ in 2021 but then dropped – could have raised $110 billion https://www.cbo.gov/budget-options/56851 over 10 years, according to congressional budget scorers.
The reform drive also left untouched another even more unfair distortion. This lets private equity executives treat profits on funds they oversee as an investment taxed at 20%, rather than earnings taxable at nearly twice that rate. This feature, known as the carried-interest loophole, survived thanks to the support of Senator Kyrsten Sinema, who held the deciding vote.
For regular Americans, that was a poor trade. True, Democratic proponents of carried interest reform reckon it would have brought in just $15 billion https://www.baldwin.senate.gov/imo/media/doc/Carried%20Interest%20Fairness%20Act%20of%202021%20one-pager.pdf of tax revenue over a decade. But some analysts believe closing the loophole could raise 12 times that https://www.nytimes.com/2015/06/06/business/dealbook/how-a-carried-interest-tax-could-raise-180-billion.html. Supporters of a cleanup include legendary investor Warren Buffett, JPMorgan boss Jamie Dimon and even former President Donald Trump https://www.cnbc.com/2017/12/20/cohn-tried-25-times-to-cut-hedge-fund-loophole-but-failed.html.
A future Congress may tackle these distortions. Until then, the buyback levy is better than nothing. But politicians’ failure to remove dodges so egregious that even billionaires dislike them speaks volumes about who rules America. Biden occupies the White House, but where tax is concerned a wealthy minority still calls the shots.
Follow @johnsfoley https://twitter.com/johnsfoley on Twitter
CONTEXT NEWS
Companies based in the United States will pay a 1% levy on share buybacks from the end of 2022, under a law signed by President Joe Biden on Aug. 16.
The buyback tax forms part of the Inflation Reduction Act, which also provided for clean energy investment and lower drug prices. Details will be finalized by the Treasury Department.
Over 10 years the buyback levy would raise around $74 billion, based on an analysis by the Joint Committee of Taxation, a nonpartisan congressional panel.
Companies in the S&P 500 Index spent a record $882 billion on buybacks in 2021, according to S&P Down Jones Indices. They returned $511 billion to investors in dividends over the same time.
(Editing by Peter Thal Larsen and Amanda Gomez)
The views and 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 complicated – the late Yale Law School Professor Marvin Chirelstein laid out a relatively simple way https://openyls.law.yale.edu/bitstream/handle/20.500.13051/4057/Optional_Redemptions_and_Optional_Dividends_Taxing_the_Repurchase_of_Common_Shares__78_Yale_Law_Journal_739__1969_.pdf?sequence=2&isAllowed=y to tax dividends and buybacks alike in the 1960s. Biden’s reforms failed to tackle the biggest problem with share buybacks, which is that they allow very wealthy Americans to amass fortunes and pass them on to their heirs while sheltering from tax. Supporters of a cleanup include legendary investor Warren Buffett, JPMorgan boss Jamie Dimon and even former President Donald Trump https://www.cnbc.com/2017/12/20/cohn-tried-25-times-to-cut-hedge-fund-loophole-but-failed.html.
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NEW YORK (Reuters Breakingviews) - When returning money to shareholders, companies prefer to buy back stock rather than pay dividends. A new 1% levy on share repurchases recently signed into law https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/19/fact-sheet-the-inflation-reduction-act-supports-workers-and-families/ by President Joe Biden is meant to put the brakes on buybacks. The government would have gained up to $80 billion in extra tax revenue – around 10 times what the new buyback tax is forecast to raise https://www.jct.gov/CMSPages/GetFile.aspx?guid=40b08e39-706e-46aa-aef2-438a26936398 per year.
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For companies, there’s no economic distinction between the $882 billion https://www.prnewswire.com/news-releases/sp-500-buybacks-set-quarterly-and-annual-record-301502561.html that the members of the S&P 500 Index spent on buybacks last year and the $511 billion https://www.prnewswire.com/news-releases/sp-dow-jones-indices-reports-us-indicated-dividend-payments-increased-18-0-billion-in-q4-2021-and-a-record-69-8-billion-in-2021--301453374.html they paid in dividends. While dividends are taxed as income, shares sold in a buyback incur capital gains tax that applies only to the owner’s overall profit. The government would have gained up to $80 billion in extra tax revenue – around 10 times what the new buyback tax is forecast to raise https://www.jct.gov/CMSPages/GetFile.aspx?guid=40b08e39-706e-46aa-aef2-438a26936398 per year.
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For companies, there’s no economic distinction between the $882 billion https://www.prnewswire.com/news-releases/sp-500-buybacks-set-quarterly-and-annual-record-301502561.html that the members of the S&P 500 Index spent on buybacks last year and the $511 billion https://www.prnewswire.com/news-releases/sp-dow-jones-indices-reports-us-indicated-dividend-payments-increased-18-0-billion-in-q4-2021-and-a-record-69-8-billion-in-2021--301453374.html they paid in dividends. Imagine if companies had paid out that $882 billion as dividends rather than in buying back stock. The government would have gained up to $80 billion in extra tax revenue – around 10 times what the new buyback tax is forecast to raise https://www.jct.gov/CMSPages/GetFile.aspx?guid=40b08e39-706e-46aa-aef2-438a26936398 per year.
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19543.0
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2022-08-31 00:00:00 UTC
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After Hours Most Active for Aug 31, 2022 : BEKE, AAPL, GRAB, MMM, PTON, GLPI, T, MSFT, BAC, CSCO, WFC, LU
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-aug-31-2022-%3A-beke-aapl-grab-mmm-pton-glpi-t-msft-bac-csco-wfc
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The NASDAQ 100 After Hours Indicator is up 10.71 to 12,282.74. The total After hours volume is currently 172,939,311 shares traded.
The following are the most active stocks for the after hours session:
KE Holdings Inc (BEKE) is -0.34 at $17.70, with 10,888,193 shares traded. As reported by Zacks, the current mean recommendation for BEKE is in the "buy range".
Apple Inc. (AAPL) is +0.31 at $157.53, with 9,751,220 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $1.34. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Grab Holdings Limited (GRAB) is +0.02 at $2.87, with 5,371,722 shares traded. As reported by Zacks, the current mean recommendation for GRAB is in the "buy range".
3M Company (MMM) is unchanged at $124.35, with 5,231,267 shares traded. MMM's current last sale is 86.06% of the target price of $144.5.
Peloton Interactive, Inc. (PTON) is unchanged at $10.19, with 4,715,943 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. The consensus EPS forecast is $-0.64. PTON's current last sale is 56.61% of the target price of $18.
Gaming and Leisure Properties, Inc. (GLPI) is unchanged at $48.27, with 4,222,646 shares traded. As reported by Zacks, the current mean recommendation for GLPI is in the "buy range".
AT&T Inc. (T) is unchanged at $17.54, with 4,134,222 shares traded., following a 52-week high recorded in today's regular session.
Microsoft Corporation (MSFT) is +0.28 at $261.75, with 3,815,911 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Bank of America Corporation (BAC) is unchanged at $33.61, with 3,761,010 shares traded. As reported by Zacks, the current mean recommendation for BAC is in the "buy range".
Cisco Systems, Inc. (CSCO) is -0.03 at $44.69, with 3,609,289 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jul 2023. The consensus EPS forecast is $0.83. CSCO's current last sale is 84.32% of the target price of $53.
Wells Fargo & Company (WFC) is unchanged at $43.71, with 3,316,690 shares traded. As reported by Zacks, the current mean recommendation for WFC is in the "buy range".
Lufax Holding Ltd (LU) is +0.01 at $4.38, with 3,290,030 shares traded. As reported by Zacks, the current mean recommendation for LU is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is +0.31 at $157.53, with 9,751,220 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 Jun 2023.
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Apple Inc. (AAPL) is +0.31 at $157.53, with 9,751,220 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 Jun 2023.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is +0.31 at $157.53, with 9,751,220 shares traded. As reported by Zacks, the current mean recommendation for GRAB is in the "buy range".
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Apple Inc. (AAPL) is +0.31 at $157.53, with 9,751,220 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 10.71 to 12,282.74.
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19544.0
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2022-08-31 00:00:00 UTC
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Snap restructures ad business amid worst sales growth rate in its history
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AAPL
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https://www.nasdaq.com/articles/snap-restructures-ad-business-amid-worst-sales-growth-rate-in-its-history
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nan
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nan
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By Sheila Dang
Aug 31 (Reuters) - Snap Inc SNAP.N said on Wednesday revenue growth in the third quarter is running at the slowest rate in the company's history, as high inflation, rising interest rates and a deteriorating economy continues to ravage the advertising industry.
As a result, the parent company of Snapchat said it will cut 20% of all staff, restructure its advertising sales unit and shut down projects including mobile games and novelties like a flying drone camera, in order to focus on improving sales and the number of Snapchat users. Snap had more than 5,600 employees at the end of last year.
Investors have viewed Snap as an early indicator for trends affecting other social media platforms including Facebook owner Meta Platforms META.O, Pinterest PINS.N and Twitter TWTR.N, as the company is usually first to report quarterly earnings or provide business updates.
Snap's warning in May that it would miss its revenue targets due to worsening economic conditions sparked a selloff of social media stocks.
Shares of Santa Monica, California-based Snap closed down 2.5% at $10 on Tuesday after The Verge first reported Snap's plans for layoffs, and AdAge reported the departure of two top advertising executives.
Revenue growth so far in the third quarter is up 8% over the previous year, which is "well below what we were expecting," Chief Executive Evan Spiegel wrote in a memo to employees that was also released publicly on Wednesday.
If that growth rate holds, it would be the slowest revenue growth Snap has had since becoming a public company in 2017 - a far cry from triple-digit growth rates it has recorded in previous quarters.
Two of Snap's top ad sales executives - Chief Business Officer Jeremi Gorman and Vice President of ad sales Peter Naylor - are leaving to join Netflix NFLX.O and build the streaming service's ad business.
Gorman, a long-time advertising executive who previously worked at Amazon, was instrumental in building Snap's ad business, said Jasmine Enberg, principal analyst at research firm Insider Intelligence.
Gorman and Naylor's departures come after Snap reported a disappointing second quarter and is facing more competition from TikTok, she said.
"Snap is clearly going through a tough time," Enberg said.
'FACE THE CONSEQUENCES'
Despite reducing spending in some areas, Snap must now "face the consequences of our lower revenue growth and adapt to the market environment," CEO Spiegel wrote in the memo.
Senior vice president of engineering Jerry Hunter will be promoted to chief operating officer and will be responsible for improving coordination between engineering, ad sales and product teams, Spiegel said.
Snap and other social media platforms including Meta have all suffered from privacy updates that Apple AAPL.O introduced on iPhones last year. These have made it difficult for digital ad sellers and advertisers to target ads to relevant audiences and measure their sales results.
Closer collaboration between engineering and sales could potentially help Snap improve targeting and measurement of its ads.
The restructuring of the ad sales division also includes three new president roles that will oversee the Americas, Europe, Middle East and Africa, and Asia-Pacific regions.
Snap will also discontinue investment in its Pixy flying drone camera, just a few months after debuting in May.
(Reporting by Sheila Dang in Dallas; Editing by Kenneth Li and Kenneth Maxwell)
((Sheila.Dang@thomsonreuters.com; +1 646-983-0894))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Snap and other social media platforms including Meta have all suffered from privacy updates that Apple AAPL.O introduced on iPhones last year. Revenue growth so far in the third quarter is up 8% over the previous year, which is "well below what we were expecting," Chief Executive Evan Spiegel wrote in a memo to employees that was also released publicly on Wednesday. Gorman, a long-time advertising executive who previously worked at Amazon, was instrumental in building Snap's ad business, said Jasmine Enberg, principal analyst at research firm Insider Intelligence.
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Snap and other social media platforms including Meta have all suffered from privacy updates that Apple AAPL.O introduced on iPhones last year. Investors have viewed Snap as an early indicator for trends affecting other social media platforms including Facebook owner Meta Platforms META.O, Pinterest PINS.N and Twitter TWTR.N, as the company is usually first to report quarterly earnings or provide business updates. Two of Snap's top ad sales executives - Chief Business Officer Jeremi Gorman and Vice President of ad sales Peter Naylor - are leaving to join Netflix NFLX.O and build the streaming service's ad business.
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Snap and other social media platforms including Meta have all suffered from privacy updates that Apple AAPL.O introduced on iPhones last year. Shares of Santa Monica, California-based Snap closed down 2.5% at $10 on Tuesday after The Verge first reported Snap's plans for layoffs, and AdAge reported the departure of two top advertising executives. If that growth rate holds, it would be the slowest revenue growth Snap has had since becoming a public company in 2017 - a far cry from triple-digit growth rates it has recorded in previous quarters.
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Snap and other social media platforms including Meta have all suffered from privacy updates that Apple AAPL.O introduced on iPhones last year. Revenue growth so far in the third quarter is up 8% over the previous year, which is "well below what we were expecting," Chief Executive Evan Spiegel wrote in a memo to employees that was also released publicly on Wednesday. Two of Snap's top ad sales executives - Chief Business Officer Jeremi Gorman and Vice President of ad sales Peter Naylor - are leaving to join Netflix NFLX.O and build the streaming service's ad business.
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19545.0
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2022-08-31 00:00:00 UTC
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5 Big Tech Stocks That Are Bargains Now
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AAPL
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https://www.nasdaq.com/articles/5-big-tech-stocks-that-are-bargains-now
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nan
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nan
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It has been a rough year for the stock market but even more so for mega-cap tech stocks. From the start of 2022 through early August, the four largest technology companies lost an average of 14% of their value, including dividends, compared with a decline of 12% for the benchmark S&P 500 Index. (Prices, returns and other data are as of Aug. 5 unless otherwise noted.)
SEE MORE Hedge Funds' 21 Top Blue-Chip Stocks to Buy Now
The four biggest tech firms also happen to be the biggest U.S. companies of any kind, as measured by market capitalization (price times shares outstanding). In order of size, the Mega Four are Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL) and Amazon.com (AMZN). Over the past five years, their share prices have more than tripled, and each has a market cap of more than a trillion dollars. But investors are bewitched by what behavioral economists call "recency bias," or putting too much emphasis on the latest events, so losses over the previous few months are prominent in investing decisions.
Smart investors take a long view, both forward and backward. They look carefully at a company's progress over the years and then try to forecast a decade out. With this kind of analysis, the 2022 decline is clearly a buying opportunity for three reasons:
Adaptability. Each of the Mega Four started with a single big idea: search-based advertising for Google, personal computing for Apple, online shopping for Amazon and operating-system software for Microsoft. None has abandoned its original business, but all have moved into other sectors. Those transitions have been impressive and nearly unique among corporations. The flexibility that the Mega Four have displayed bodes well for future adaptation to changing markets.
For example, every one of the four is a leader in the supremely profitable business of cloud computing, which lets users store massive amounts of data remotely and securely, accessible anywhere in the world. Three-fourths of Amazon's profits last year came from its cloud-computing unit. For the quarter ending June 30, Microsoft's Intelligent Cloud revenue represented 39% of total sales for the company; Alphabet's cloud revenues jumped 35% in the same quarter.
SEE MORE Warren Buffett Stocks Ranked: The Berkshire Hathaway Portfolio
Even Apple, a manufacturing company, understands the value of cloud computing. Revenues from the company's services division, which in addition to the cloud includes Apple TV+, Apple Music, the Apple Card and the App Store, are growing three times as fast as iPhone sales. Forbes predicts profits from services will reach $50 billion a year, surpassing the profits from iPhone sales, by 2025.
All the companies are using a subscription model, the best example being Amazon Prime, to guarantee a flow of cash. In addition, both Apple and Amazon have made major investments in video production and streaming.
Alphabet's YouTube, even though it is blocked in China, has become a huge global advertising vehicle, with 2.6 billion users. Meanwhile, Microsoft is one of the three largest gaming companies in the world. Alphabet's Google owns Nest thermostats and Verily Life Sciences. Amazon owns the Whole Foods Market chain, with $17 billion in revenues. Alphabet's Gmail service is the largest in the world, accounting for 37% of all email openings last year.
Not all the tech companies' investments (or "other bets," as Alphabet officially calls them) have paid off – Google Fiber, bringing super-high-speed internet connections to about a dozen cities, has been disappointing, for one – but the Mega Four have remarkable acquisition track records and plenty of cash to buy more businesses. Among the three of them, Microsoft, Apple and Alphabet collectively have a total of nearly $300 billion in cash and short-term investments on their balance sheets.
Congress and regulators, of course, may stand in the way of further growth by acquisition. But the big tech companies have also grown organically, with such great businesses as Amazon Web Services, the largest cloud-services organization in the world, generated within their own organizations.
Profitability. The reason the Mega Four have so much cash is that they are absurdly profitable. Take return on equity, which is net income divided by shareholders' equity (a firm's net worth, or what would get turned over to the stockholders if a company were liquidated). According to a Nasdaq primer, return on equity "enables investors to identify companies that diligently deploy cash for higher returns." Apple's current return on equity is 153%. In other words, raising $1 million in equity produces profits of $1.53 million! For comparison, Zack's, aninvestment researchfirm, reports that the average for the mini-computer sector is 19%.
SEE MORE 10 Dividend Growth Stocks Delivering Impressive Increases
A cruder profit measurement is operating margin, or return on sales – that is, profits divided by revenues. For all U.S. industries, the average figure is about 11%, but Microsoft's is nearly 40% over the past 12 months, and Alphabet's is about 30%. Amazon is mainly a retailer, so its margins are lower, but its cloud business has an operating margin of about 30%. There's no need to get bogged down in statistics. It's sufficient to say that these companies are profit machines, even when the economy appears to be slowing down as the Federal Reserve raises interest rates to thwart inflation.
Valuation. Now I get to the best part of the Mega Four story: These stocks are cheap. I can't predict whether they'll get cheaper in the short run, but it's clear that becoming partners in some of the best businesses in the world is a better deal today than it was at the start of the year.
Alphabet, whose shares have dropped from $148 earlier this year to $117, now carries a forward price-to-earnings (P/E) ratio, based on a consensus of analysts' earnings forecasts for the next 12 months, of 22, and Apple's is 27. Despite a recent bounce, Amazon is considerably less expensive than it was two years ago, and Microsoft has lost $59 a share since it traded at $342 in November 2021.
The company that used to be the fifth-largest U.S. stock and now ranks 11th, Meta Platforms (META), the former Facebook, provides a striking contrast to the Mega Four. Some 97% of Meta's total revenue comes from advertising sales, which fell in the most recent quarter because of vulnerability to trends in the overall global economy and increased competition. Meta is trying to make its own shift, "moving beyond 2D screens toward immersive experiences like augmented and virtual reality to help build the next evolution in social technology," as its latest earnings report says.
SEE MORE The 15 Best Growth Stocks to Buy for the Rest of 2022
Can Meta's management lead this kind of massive, risky transition? That's uncertain, but when it comes to valuation, Meta is hard to resist. The stock has plunged 50% this year, and its P/E is currently a mere 18. Meta and Johnson & Johnson (JNJ) have the same market cap, but Meta earned about 40% more in the most recent quarter.
Of all the ideas that created America's biggest tech companies, Facebook's was the most simple and revolutionary. It completely changed the way we connect with other people and upended the advertising world. Today, one out of every six ad dollars in the world is spent on Facebook – twice as much as on Google.
The main case for the Mega Four – or Five – is their success. I realize that the market battlefield is littered with giant winners that have become losers, General Electric (GE) being the prime example. There are no guarantees in investing. But when the market sours on companies because of the state of the economy, it's a good time to be buying the best.
Kiplinger
James K. Glassman chairs Glassman Advisory, a public-affairs consulting firm. He does not write about his clients. Of the stocks mentioned here, he owns Microsoft and Amazon.com. His most recent book is Safety Net: The Strategy for De-Risking Your Investments in a Time of Turbulence. You can reach him at James_Glassman@kiplinger.com.
SEE MORE 65 Best Dividend Stocks You Can Count On in 2022
The views and 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 order of size, the Mega Four are Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL) and Amazon.com (AMZN). But investors are bewitched by what behavioral economists call "recency bias," or putting too much emphasis on the latest events, so losses over the previous few months are prominent in investing decisions. Not all the tech companies' investments (or "other bets," as Alphabet officially calls them) have paid off – Google Fiber, bringing super-high-speed internet connections to about a dozen cities, has been disappointing, for one – but the Mega Four have remarkable acquisition track records and plenty of cash to buy more businesses.
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In order of size, the Mega Four are Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL) and Amazon.com (AMZN). For the quarter ending June 30, Microsoft's Intelligent Cloud revenue represented 39% of total sales for the company; Alphabet's cloud revenues jumped 35% in the same quarter. Forbes predicts profits from services will reach $50 billion a year, surpassing the profits from iPhone sales, by 2025.
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In order of size, the Mega Four are Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL) and Amazon.com (AMZN). Revenues from the company's services division, which in addition to the cloud includes Apple TV+, Apple Music, the Apple Card and the App Store, are growing three times as fast as iPhone sales. Not all the tech companies' investments (or "other bets," as Alphabet officially calls them) have paid off – Google Fiber, bringing super-high-speed internet connections to about a dozen cities, has been disappointing, for one – but the Mega Four have remarkable acquisition track records and plenty of cash to buy more businesses.
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In order of size, the Mega Four are Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL) and Amazon.com (AMZN). Forbes predicts profits from services will reach $50 billion a year, surpassing the profits from iPhone sales, by 2025. The reason the Mega Four have so much cash is that they are absurdly profitable.
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19546.0
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2022-08-31 00:00:00 UTC
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Taiwan president says she looks forward to producing 'democracy chips' with U.S.
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AAPL
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https://www.nasdaq.com/articles/taiwan-president-says-she-looks-forward-to-producing-democracy-chips-with-u.s.
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nan
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nan
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Adds quotes, context
TAIPEI, Sept 1 (Reuters) - Taiwan looks forward to producing "democracy chips" with the United States, President Tsai Ing-wen told the visiting governor of the U.S. state of Arizona, Doug Ducey, on Thursday, the latest in a string of senior officials from the county to visit.
Taiwan has been keen to show the United States, its most important international backer and arms supplier despite the lack of formal diplomatic ties, that it is a reliable friend as a global chip crunch impacts auto production and consumer electronics.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TWTSM.N, a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, is constructing a $12 billion plant in Arizona.
"In the face of authoritarian expansionism and the challenges of the post-pandemic era, Taiwan seeks to bolster cooperation with the United States in the semiconductor and other high-tech industries," Tsai said at the meeting in the presidential office in Taipei.
"This will help build more secure and more resilient supply chains. We look forward to jointly producing democracy chips to safeguard the interests of our democratic partners and create greater prosperity."
Ducey, a Republican, is the latest in a succession of officials from the United States to visit including U.S. House Speaker Nancy Pelosi in early August, defying pressure from China for such trips not to take place.
He told Tsai that their partnership with Taiwan was "the greatest" in the semiconductor industry.
"TSMC's legacy investment has elevated the potential for what's possible between Arizona and Taiwan," Ducey said.
"Arizona stands with Taiwan, and we look forward to building on the many opportunities ahead."
Arizona is also where Taiwanese F-16 pilots train, at Luke Air Force base, which Tsai also mentioned.
"Taiwan and the United States will continue to build on our important alliance to safeguard peace and stability in the Indo Pacific," she said.
China claims Taiwan as its territory despite the strong objections of the democratically elected government in Taipei, which rejects Beijing's sovereignty claims.
China has been carrying out military drills near Taiwan since Pelosi's visit to express its anger at what it views as stepped up U.S. support for the island.
(Reporting by Ben Blanchard; Editing by Stephen Coates)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TWTSM.N, a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, is constructing a $12 billion plant in Arizona. Taiwan has been keen to show the United States, its most important international backer and arms supplier despite the lack of formal diplomatic ties, that it is a reliable friend as a global chip crunch impacts auto production and consumer electronics. "In the face of authoritarian expansionism and the challenges of the post-pandemic era, Taiwan seeks to bolster cooperation with the United States in the semiconductor and other high-tech industries," Tsai said at the meeting in the presidential office in Taipei.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TWTSM.N, a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, is constructing a $12 billion plant in Arizona. Adds quotes, context TAIPEI, Sept 1 (Reuters) - Taiwan looks forward to producing "democracy chips" with the United States, President Tsai Ing-wen told the visiting governor of the U.S. state of Arizona, Doug Ducey, on Thursday, the latest in a string of senior officials from the county to visit. We look forward to jointly producing democracy chips to safeguard the interests of our democratic partners and create greater prosperity."
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TWTSM.N, a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, is constructing a $12 billion plant in Arizona. Adds quotes, context TAIPEI, Sept 1 (Reuters) - Taiwan looks forward to producing "democracy chips" with the United States, President Tsai Ing-wen told the visiting governor of the U.S. state of Arizona, Doug Ducey, on Thursday, the latest in a string of senior officials from the county to visit. Taiwan has been keen to show the United States, its most important international backer and arms supplier despite the lack of formal diplomatic ties, that it is a reliable friend as a global chip crunch impacts auto production and consumer electronics.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TWTSM.N, a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, is constructing a $12 billion plant in Arizona. Adds quotes, context TAIPEI, Sept 1 (Reuters) - Taiwan looks forward to producing "democracy chips" with the United States, President Tsai Ing-wen told the visiting governor of the U.S. state of Arizona, Doug Ducey, on Thursday, the latest in a string of senior officials from the county to visit. He told Tsai that their partnership with Taiwan was "the greatest" in the semiconductor industry.
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19547.0
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2022-08-31 00:00:00 UTC
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Apple, HTC cleared in U.S. trade tribunal dispute over wireless patents
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AAPL
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https://www.nasdaq.com/articles/apple-htc-cleared-in-u.s.-trade-tribunal-dispute-over-wireless-patents
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By Blake Brittain
Aug 31 (Reuters) - A U.S. appeals court on Wednesday affirmed a win for Apple Inc AAPL.O, HTC Corp 2498.TWand ZTE Corp 000063.SZ against allegations that imports of their devices infringe wireless-technology patents.
The companies' smartphones, smart watches, tablets and other LTE-capable devices do not violate INVT SPE LLC's rights in two patents originally owned by Panasonic, the U.S. Court of Appeals for the Federal Circuit said.
The companies and their attorneys did not immediately respond to requests for comment.
INVT is a patent-holding company affiliated with investment funds managed by Fortress Investment Group LLC, a SoftBank Group Corp 9984.T subsidiary.
Fortress defeated a separate lawsuit last year brought by Apple and Intel that accused it and its affiliates, including INVT, of violating antitrust law by stockpiling thousands of patents and demanding extortionate licensing fees. Apple later dropped out of the case, which is currently on appeal.
INVT filed a complaint against Apple, HTC and ZTE at the U.S. International Trade Commission in 2018, accusing their devices that comply with the LTE wireless standard of infringing its patents. It sought a ban on imports of the allegedly infringing devices.
The commission ruled for the device makers in 2020. A three-judge Federal Circuit panel upheld the decision Wednesday.
U.S. Circuit Judge Raymond Chen wrote the devices did not infringe one of INVT's patents because they functioned differently than what is described in the patent. The devices were not capable of receiving and handling data signals in the same way as INVT's patented technology, the appeals court said.
The Federal Circuit also found the patent was not essential to the LTE standard, and that the devices did not infringe simply by being LTE capable.
The court found the rest of the appeal was moot because INVT's other patent had expired. Apple and ZTE previously withdrew from this appeal.
(Reporting by Blake Brittain; Editing by Josie Kao)
The views and 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 Blake Brittain Aug 31 (Reuters) - A U.S. appeals court on Wednesday affirmed a win for Apple Inc AAPL.O, HTC Corp 2498.TWand ZTE Corp 000063.SZ against allegations that imports of their devices infringe wireless-technology patents. The companies' smartphones, smart watches, tablets and other LTE-capable devices do not violate INVT SPE LLC's rights in two patents originally owned by Panasonic, the U.S. Court of Appeals for the Federal Circuit said. Fortress defeated a separate lawsuit last year brought by Apple and Intel that accused it and its affiliates, including INVT, of violating antitrust law by stockpiling thousands of patents and demanding extortionate licensing fees.
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By Blake Brittain Aug 31 (Reuters) - A U.S. appeals court on Wednesday affirmed a win for Apple Inc AAPL.O, HTC Corp 2498.TWand ZTE Corp 000063.SZ against allegations that imports of their devices infringe wireless-technology patents. INVT is a patent-holding company affiliated with investment funds managed by Fortress Investment Group LLC, a SoftBank Group Corp 9984.T subsidiary. It sought a ban on imports of the allegedly infringing devices.
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By Blake Brittain Aug 31 (Reuters) - A U.S. appeals court on Wednesday affirmed a win for Apple Inc AAPL.O, HTC Corp 2498.TWand ZTE Corp 000063.SZ against allegations that imports of their devices infringe wireless-technology patents. The companies' smartphones, smart watches, tablets and other LTE-capable devices do not violate INVT SPE LLC's rights in two patents originally owned by Panasonic, the U.S. Court of Appeals for the Federal Circuit said. INVT filed a complaint against Apple, HTC and ZTE at the U.S. International Trade Commission in 2018, accusing their devices that comply with the LTE wireless standard of infringing its patents.
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By Blake Brittain Aug 31 (Reuters) - A U.S. appeals court on Wednesday affirmed a win for Apple Inc AAPL.O, HTC Corp 2498.TWand ZTE Corp 000063.SZ against allegations that imports of their devices infringe wireless-technology patents. INVT filed a complaint against Apple, HTC and ZTE at the U.S. International Trade Commission in 2018, accusing their devices that comply with the LTE wireless standard of infringing its patents. The Federal Circuit also found the patent was not essential to the LTE standard, and that the devices did not infringe simply by being LTE capable.
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19548.0
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2022-08-31 00:00:00 UTC
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Snap to cut 20% of staff, cancel projects in cost-cutting effort
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AAPL
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https://www.nasdaq.com/articles/snap-to-cut-20-of-staff-cancel-projects-in-cost-cutting-effort
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By Sheila Dang
Aug 31 (Reuters) - Snap Inc SNAP.N said on Wednesday it will lay off 20% of all staff and shut down projects, including mobile games and novelties like a flying drone camera, as high inflation and a deteriorating economy continue to ravage the advertising industry.
The cuts will help the company save an estimated $500 million in costs annually, Snap said.
Shares of Snap rose nearly 10% in morning trading, which reverberated across the sector. Shares of Facebook parent Meta Platforms Inc META.O were up 5% and Pinterest Inc PINS.N rose 6%.
The company said it will focus on improving sales and the number of Snapchat users.
Investors have viewed Snap as an early indicator for trends affecting other social media platforms, as Snap is usually first to report quarterly earnings or provide business updates.
Snap's warning in May that it would miss its revenue targets due to worsening economic conditions sparked a sell-off of social media stocks.
Shares of Santa Monica, California-based Snap closed down 2.5% at $10 on Tuesday after The Verge first reported Snap's plans for layoffs, and AdAge reported the departure of two top advertising executives.
Revenue growth so far in the third quarter is up 8% over the previous year, which is "well below what we were expecting," Chief Executive Evan Spiegel wrote in a memo to employees that was also released publicly on Wednesday.
If that growth rate holds, it would be the slowest revenue growth Snap has had since becoming a public company in 2017 - a far cry from triple-digit growth rates it has recorded in previous quarters.
Two of Snap's top ad sales executives - Chief Business Officer Jeremi Gorman and Vice President of ad sales Peter Naylor - are leaving to join Netflix Inc NFLX.O and build the streaming service's ad business.
Gorman, a longtime advertising executive who previously worked at Amazon, was instrumental in building Snap's ad business, said Jasmine Enberg, principal analyst at research firm Insider Intelligence.
Gorman and Naylor's departures come after Snap reported a disappointing second quarter and it is facing more competition from TikTok, she said.
"Snap is clearly going through a tough time," Enberg said.
'FACE THE CONSEQUENCES'
Despite reducing spending in some areas, Snap must now "face the consequences of our lower revenue growth and adapt to the market environment," CEO Spiegel wrote in the memo.
Senior vice president of engineering Jerry Hunter will be promoted to chief operating officer and will be responsible for improving coordination between engineering, ad sales and product teams, Spiegel said.
Snap and other social media platforms including Meta have all suffered from privacy updates that Apple Inc AAPL.O introduced on iPhones last year. These have made it difficult for digital ad sellers and advertisers to target ads to relevant audiences and measure their sales results.
Closer collaboration between engineering and sales could potentially help Snap improve targeting and measurement of its ads.
The restructuring of the ad sales division also includes three new president roles that will oversee the Americas, Europe, Middle East and Africa, and Asia-Pacific regions.
Snap will also discontinue investment in its Pixy flying drone camera, just a few months after its debut in May.
(Reporting by Sheila Dang in Dallas; Editing by Kenneth Li and Kenneth Maxwell)
((Sheila.Dang@thomsonreuters.com; +1 646-983-0894))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Snap and other social media platforms including Meta have all suffered from privacy updates that Apple Inc AAPL.O introduced on iPhones last year. By Sheila Dang Aug 31 (Reuters) - Snap Inc SNAP.N said on Wednesday it will lay off 20% of all staff and shut down projects, including mobile games and novelties like a flying drone camera, as high inflation and a deteriorating economy continue to ravage the advertising industry. Gorman, a longtime advertising executive who previously worked at Amazon, was instrumental in building Snap's ad business, said Jasmine Enberg, principal analyst at research firm Insider Intelligence.
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Snap and other social media platforms including Meta have all suffered from privacy updates that Apple Inc AAPL.O introduced on iPhones last year. Two of Snap's top ad sales executives - Chief Business Officer Jeremi Gorman and Vice President of ad sales Peter Naylor - are leaving to join Netflix Inc NFLX.O and build the streaming service's ad business. Gorman, a longtime advertising executive who previously worked at Amazon, was instrumental in building Snap's ad business, said Jasmine Enberg, principal analyst at research firm Insider Intelligence.
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Snap and other social media platforms including Meta have all suffered from privacy updates that Apple Inc AAPL.O introduced on iPhones last year. Investors have viewed Snap as an early indicator for trends affecting other social media platforms, as Snap is usually first to report quarterly earnings or provide business updates. Shares of Santa Monica, California-based Snap closed down 2.5% at $10 on Tuesday after The Verge first reported Snap's plans for layoffs, and AdAge reported the departure of two top advertising executives.
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Snap and other social media platforms including Meta have all suffered from privacy updates that Apple Inc AAPL.O introduced on iPhones last year. Two of Snap's top ad sales executives - Chief Business Officer Jeremi Gorman and Vice President of ad sales Peter Naylor - are leaving to join Netflix Inc NFLX.O and build the streaming service's ad business. Closer collaboration between engineering and sales could potentially help Snap improve targeting and measurement of its ads.
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19549.0
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2022-08-31 00:00:00 UTC
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TSMC making 'excellent' progress with Arizona chip plant, state governor says
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AAPL
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https://www.nasdaq.com/articles/tsmc-making-excellent-progress-with-arizona-chip-plant-state-governor-says
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nan
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TAIPEI, Aug 31 (Reuters) - Taiwanese chip maker TSMC 2330.TWTSM.N is making "excellent" progress building its new plant in Arizona, the governor of the U.S. state said on Wednesday, going on to praise his state's role in training Taiwanese fighter pilots.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC), a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, is constructing a $12 billion plant in Arizona.
Speaking at an investment conference during a visit to Taipei, Arizona Governor Doug Ducey recalled meeting the TSMC leadership in 2017 and then in 2020 announcing the investment.
"Just over two years later TSMC has completed construction for its main facility and continues to make excellent progress," he said, describing visiting the construction site as "even more impressive in person".
"Along with TSMC's historic investment, roughly two dozen Taiwanese-based suppliers are finding Arizona is right for investment," added Ducey.
The companies are also finding Arizona's partnership with Taiwan spans decades, he said.
"As one example, for more than 25 years, Taiwan pilots flying F-16 fighter jets have trained at Luke Air Force base in west Phoenix. We are particularly proud of Arizona's role in helping Taiwan bolster its defence and protect its people."
Ducey, is the latest in a succession of officials from the United States to visit, defying pressure from China for such trips not to take place.
China claims Taiwan as its territory despite the strong objections of the democratically elected government in Taipei, which rejects Beijing's sovereignty claims.
Ducey, a Republican, will meet with Taiwan President Tsai Ing-wen and with companies in the semiconductor industry on his three-day trip.
Taiwan has hosted a succession of officials from the United States since a visit by a delegation led by House Speaker Nancy Pelosi early this month, which infuriated China.
Beijing responded to Pelosi's visit with military drills close to the island that included launches of ballistic missiles over Taipei for the first time, and by cutting some lines of dialogue with Washington.
(Reporting by Ben Blanchard; Editing by Kenneth Maxwell)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC), a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, is constructing a $12 billion plant in Arizona. Taiwan has hosted a succession of officials from the United States since a visit by a delegation led by House Speaker Nancy Pelosi early this month, which infuriated China. Beijing responded to Pelosi's visit with military drills close to the island that included launches of ballistic missiles over Taipei for the first time, and by cutting some lines of dialogue with Washington.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC), a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, is constructing a $12 billion plant in Arizona. TAIPEI, Aug 31 (Reuters) - Taiwanese chip maker TSMC 2330.TWTSM.N is making "excellent" progress building its new plant in Arizona, the governor of the U.S. state said on Wednesday, going on to praise his state's role in training Taiwanese fighter pilots. Speaking at an investment conference during a visit to Taipei, Arizona Governor Doug Ducey recalled meeting the TSMC leadership in 2017 and then in 2020 announcing the investment.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC), a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, is constructing a $12 billion plant in Arizona. TAIPEI, Aug 31 (Reuters) - Taiwanese chip maker TSMC 2330.TWTSM.N is making "excellent" progress building its new plant in Arizona, the governor of the U.S. state said on Wednesday, going on to praise his state's role in training Taiwanese fighter pilots. Speaking at an investment conference during a visit to Taipei, Arizona Governor Doug Ducey recalled meeting the TSMC leadership in 2017 and then in 2020 announcing the investment.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC), a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, is constructing a $12 billion plant in Arizona. TAIPEI, Aug 31 (Reuters) - Taiwanese chip maker TSMC 2330.TWTSM.N is making "excellent" progress building its new plant in Arizona, the governor of the U.S. state said on Wednesday, going on to praise his state's role in training Taiwanese fighter pilots. "Just over two years later TSMC has completed construction for its main facility and continues to make excellent progress," he said, describing visiting the construction site as "even more impressive in person".
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19550.0
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2022-08-31 00:00:00 UTC
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Foreign business travel missing ingredient for Irish hotel recovery - Dalata
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AAPL
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https://www.nasdaq.com/articles/foreign-business-travel-missing-ingredient-for-irish-hotel-recovery-dalata
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By Padraic Halpin
DUBLIN, Aug 31 (Reuters) - Executives at Ireland's large hub of multinational companies are still only going on a small fraction of the foreign business trips they made before the COVID-19 pandemic, the head of the country's largest hotel operator said.
Dalata Hotel Group DHG.I, which has the Maldron and Clayton brands, said on Wednesday a strong rebound in leisure travel following the lifting of COVID-19 restrictions pushed first half revenue, average room rate and profit above 2019 levels.
Chief Executive Dermot Crowley said that despite the fall in foreign business travel, corporate demand managed to return towards levels last seen before the pandemic, with domestic business travel and new business making up for the falls elsewhere.
"The big unknown is that multinationals, (who were) our big customers pre-COVID, are not travelling anywhere near the same level as they were pre-COVID," Crowley told Reuters.
He said he would carefully monitor whether Apple's AAPL.O call for workers to partly return to the office would lead to more travel.
Ireland is the European base for technology companies like Google GOOGL.O, which, alongside pharmaceutical groups such as Pfizer PFE.N and Abbott ABT.N, are among the country's largest employers with the sector accounting for about one-in-nine workers in Ireland.
Central Statistics Office data on Tuesday showed overseas arrivals into Ireland in July were 12% lower than pre-pandemic levels.
Dalata's first-half 2022 revenues rose almost six-fold from the COVID-19 hammered first half of 2021 and were 9% higher than 2019 at 220 million euros, aided by a 15% rise in average room rate over the same period.
Core profit jumped 14% compared with 2019, with like-for-like group revenue per available room (RevPAR) - a key measure of a hotel's top-line performance - up 5%. Strong trading continued in July and August with occupancy back at pre-pandemic levels.
Crowley said leisure demand looked strong for September but that the group had little visibility beyond that with most bookings typically made within six weeks of travelling.
While Dalata has not seen any impact on demand to date from sharp rises in the cost of living, it said inflationary costs may impact consumer discretionary spending in the future.
(Reporting by Padraic Halpin. Editing by Jane Merriman)
((padraic.halpin@thomsonreuters.com; +353 1 500 1504; Reuters Messaging: padraic.halpin.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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He said he would carefully monitor whether Apple's AAPL.O call for workers to partly return to the office would lead to more travel. By Padraic Halpin DUBLIN, Aug 31 (Reuters) - Executives at Ireland's large hub of multinational companies are still only going on a small fraction of the foreign business trips they made before the COVID-19 pandemic, the head of the country's largest hotel operator said. Dalata Hotel Group DHG.I, which has the Maldron and Clayton brands, said on Wednesday a strong rebound in leisure travel following the lifting of COVID-19 restrictions pushed first half revenue, average room rate and profit above 2019 levels.
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He said he would carefully monitor whether Apple's AAPL.O call for workers to partly return to the office would lead to more travel. By Padraic Halpin DUBLIN, Aug 31 (Reuters) - Executives at Ireland's large hub of multinational companies are still only going on a small fraction of the foreign business trips they made before the COVID-19 pandemic, the head of the country's largest hotel operator said. Dalata Hotel Group DHG.I, which has the Maldron and Clayton brands, said on Wednesday a strong rebound in leisure travel following the lifting of COVID-19 restrictions pushed first half revenue, average room rate and profit above 2019 levels.
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He said he would carefully monitor whether Apple's AAPL.O call for workers to partly return to the office would lead to more travel. By Padraic Halpin DUBLIN, Aug 31 (Reuters) - Executives at Ireland's large hub of multinational companies are still only going on a small fraction of the foreign business trips they made before the COVID-19 pandemic, the head of the country's largest hotel operator said. Dalata Hotel Group DHG.I, which has the Maldron and Clayton brands, said on Wednesday a strong rebound in leisure travel following the lifting of COVID-19 restrictions pushed first half revenue, average room rate and profit above 2019 levels.
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He said he would carefully monitor whether Apple's AAPL.O call for workers to partly return to the office would lead to more travel. By Padraic Halpin DUBLIN, Aug 31 (Reuters) - Executives at Ireland's large hub of multinational companies are still only going on a small fraction of the foreign business trips they made before the COVID-19 pandemic, the head of the country's largest hotel operator said. Dalata Hotel Group DHG.I, which has the Maldron and Clayton brands, said on Wednesday a strong rebound in leisure travel following the lifting of COVID-19 restrictions pushed first half revenue, average room rate and profit above 2019 levels.
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19551.0
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2022-08-31 00:00:00 UTC
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US STOCKS-Futures edge higher as tech stocks rebound, private jobs data on tap
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-edge-higher-as-tech-stocks-rebound-private-jobs-data-on-tap
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures up: Dow 0.08%, S&P 0.26%, Nasdaq 0.68%
Aug 31 (Reuters) - U.S. stock index futures edged higher on Wednesday as technology and growth stocks snapped back, while investors waited for private payrolls data to gauge how fast the Federal Reserve will raise interest rates to tame decades-high inflation.
The three main indexes are set for sharp monthly declines, with the tech-heavy Nasdaq .IXIC down more than 4% after Fed Chair Jerome Powell's blunt and hawkish remarks on Friday about keeping monetary policy tight "for some time" quashed hopes of more modest rate hikes.
Meanwhile, mixed economic data signaling easing price pressures and strong labor market has weighed on investors' mind heading into September, which is a typically a weak month for stock market returns.
The benchmark S&P 500 .SPX is up 9.6% from its mid-June lows but remains in bear market after plummeting earlier this year.
ADP National Employment report, due at 08:15 am ET, is expected to show private payrolls likely increased by 288,000 in August. It will be followed by a reading on Chicago PMI for August after market open.
On Tuesday, data showed U.S. job openings rose to 11.239 million in July, pushing stocks to close lower for a third straight session.
It also comes ahead of the more comprehensive and closely watched jobs data for August on Friday. Nonfarm payrolls likely increased by 300,000 jobs last month after rising by 528,000 in July.
Any signs of a cooling job market would be welcomed by markets as that could ease the pressure on the Fed to stick to outsized rate hikes.
Heavyweight technology and growth stocks such as Apple Inc AAPL.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O, which took a beating in last few days due to a surge in Treasury yields on rate hike prospects, rose between 0.6% and 0.8% in premarket trading.
At 07:07 a.m. ET, Dow e-minis 1YMcv1 were up 25 points, or 0.08%, S&P 500 e-minis EScv1 were up 10.25 points, or 0.26%, and Nasdaq 100 e-minis NQcv1 were up 83.75 points, or 0.68%.
Chewy Inc CHWY.N slid 10.9% after the online pet supplies retailer cut its full-year 2022 sales outlook and warned about softer demand for discretionary products.
Netflix Inc NFLX.O gained 1.9% after it hired two of social media firm Snap Inc's SNAP.N top executives to help the streaming giant with its advertising-supported tier plan. Shares of Snap dropped 6.1%.
(Reporting by Devik Jain in Bengaluru; Editing by Sriraj Kalluvila)
((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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Heavyweight technology and growth stocks such as Apple Inc AAPL.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O, which took a beating in last few days due to a surge in Treasury yields on rate hike prospects, rose between 0.6% and 0.8% in premarket trading. The three main indexes are set for sharp monthly declines, with the tech-heavy Nasdaq .IXIC down more than 4% after Fed Chair Jerome Powell's blunt and hawkish remarks on Friday about keeping monetary policy tight "for some time" quashed hopes of more modest rate hikes. Chewy Inc CHWY.N slid 10.9% after the online pet supplies retailer cut its full-year 2022 sales outlook and warned about softer demand for discretionary products.
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Heavyweight technology and growth stocks such as Apple Inc AAPL.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O, which took a beating in last few days due to a surge in Treasury yields on rate hike prospects, rose between 0.6% and 0.8% in premarket trading. Futures up: Dow 0.08%, S&P 0.26%, Nasdaq 0.68% Aug 31 (Reuters) - U.S. stock index futures edged higher on Wednesday as technology and growth stocks snapped back, while investors waited for private payrolls data to gauge how fast the Federal Reserve will raise interest rates to tame decades-high inflation. On Tuesday, data showed U.S. job openings rose to 11.239 million in July, pushing stocks to close lower for a third straight session.
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Heavyweight technology and growth stocks such as Apple Inc AAPL.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O, which took a beating in last few days due to a surge in Treasury yields on rate hike prospects, rose between 0.6% and 0.8% in premarket trading. Futures up: Dow 0.08%, S&P 0.26%, Nasdaq 0.68% Aug 31 (Reuters) - U.S. stock index futures edged higher on Wednesday as technology and growth stocks snapped back, while investors waited for private payrolls data to gauge how fast the Federal Reserve will raise interest rates to tame decades-high inflation. Meanwhile, mixed economic data signaling easing price pressures and strong labor market has weighed on investors' mind heading into September, which is a typically a weak month for stock market returns.
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Heavyweight technology and growth stocks such as Apple Inc AAPL.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O, which took a beating in last few days due to a surge in Treasury yields on rate hike prospects, rose between 0.6% and 0.8% in premarket trading. On Tuesday, data showed U.S. job openings rose to 11.239 million in July, pushing stocks to close lower for a third straight session. Nonfarm payrolls likely increased by 300,000 jobs last month after rising by 528,000 in July.
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19552.0
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2022-08-31 00:00:00 UTC
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Bear of the Day: Meta Platforms, Inc. (META)
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AAPL
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https://www.nasdaq.com/articles/bear-of-the-day%3A-meta-platforms-inc.-meta
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nan
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Mark Zuckerberg’s company has been on a wild ride since it decided to change its name from Facebook to Meta Platforms, Inc. META last year.
Things have not gone well for Meta in 2022, and its outlook turned a lot worse after it reported its second quarter results at the end of July.
Identity Crisis?
Zuckerberg announced last October that his social media company that owns Facebook, Instagram, WhatsApp, and more would soon be known as Meta Platforms. The firm is currently pouring billions of dollars and tons of resources into the metaverse, betting that people will eventually live some of their lives in a new digital world via avatars.
Image Source: Zacks Investment Research
The metaverse reality is still years off and it might not ever come to fruition. In the here and now, Meta’s traditional social media apps are being negatively impacted by Apple’s AAPL privacy changes that require apps to ask users whether they want to be tracked.
Meta said when it reported its Q4 FY21 results that Apple’s tracking changes could cost it $10 billion in lost sales in 2022 alone. Apple’s changes have impacted Snap and countless others. Things haven’t improved much since then as advertisers also pull back on spending across the digital economy amid an economic slowdown.
Most recently, the parent company of Facebook and Instagram reported its first-ever decline in revenue, with sales down around 1%. The company also fell short of our EPS estimate and provided downbeat guidance.
Image Source: Zacks Investment Research
Bottom Line
The nearby chart showcases how far Meta’s FY22 and FY23 consensus EPS estimates have fallen, down 16% and 22%, respectively. Meta’s downward earnings revisions help it land a Zacks Rank #5 (Strong Sell) right now.
Zacks estimates call for Meta’s revenue to dip 1.3% in 2022, with it projected to post 11% higher sales in 2023. But its days of 20% or more sales growth might be over, at least for now. Meanwhile, its adjusted earnings are projected to fall by 30% this year and only climb 13% in FY23 to come in well short of its FY21 levels.
Meta is still a strong company with 2022 sales set to top $115 billion in a down year. Meta also boasts an impressive balance sheet and reaches billions of people a day via its various platforms.
Still, investors might want to stay away from Meta for the moment because Wall Street is dumping it amid all of the digital ad fears, TikTok competition worries, and its big bets on the metaverse.
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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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In the here and now, Meta’s traditional social media apps are being negatively impacted by Apple’s AAPL privacy changes that require apps to ask users whether they want to be tracked. Apple Inc. (AAPL): Free Stock Analysis Report Image Source: Zacks Investment Research Bottom Line The nearby chart showcases how far Meta’s FY22 and FY23 consensus EPS estimates have fallen, down 16% and 22%, respectively.
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Apple Inc. (AAPL): Free Stock Analysis Report In the here and now, Meta’s traditional social media apps are being negatively impacted by Apple’s AAPL privacy changes that require apps to ask users whether they want to be tracked. Image Source: Zacks Investment Research Bottom Line The nearby chart showcases how far Meta’s FY22 and FY23 consensus EPS estimates have fallen, down 16% and 22%, respectively.
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In the here and now, Meta’s traditional social media apps are being negatively impacted by Apple’s AAPL privacy changes that require apps to ask users whether they want to be tracked. Apple Inc. (AAPL): Free Stock Analysis Report Mark Zuckerberg’s company has been on a wild ride since it decided to change its name from Facebook to Meta Platforms, Inc. META last year.
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In the here and now, Meta’s traditional social media apps are being negatively impacted by Apple’s AAPL privacy changes that require apps to ask users whether they want to be tracked. Apple Inc. (AAPL): Free Stock Analysis Report Meta said when it reported its Q4 FY21 results that Apple’s tracking changes could cost it $10 billion in lost sales in 2022 alone.
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19553.0
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2022-08-31 00:00:00 UTC
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Taiwan's TSMC progressing well with Arizona chip plant, governor says
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AAPL
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https://www.nasdaq.com/articles/taiwans-tsmc-progressing-well-with-arizona-chip-plant-governor-says
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nan
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nan
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Adds TSMC comment
TAIPEI, Aug 31 (Reuters) - Taiwanese chip maker TSMC 2330.TWTSM.N is making "excellent" progress building its new plant in Arizona, the governor of the U.S. state said on Wednesday, going on to praise his state's role in training Taiwanese fighter pilots.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC), a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, is constructing a $12 billion plant in Arizona.
Speaking at an investment conference during a visit to Taipei, Arizona Governor Doug Ducey recalled meeting the TSMC leadership in 2017 and then in 2020 announcing the investment.
"Just over two years later TSMC has completed construction for its main facility and continues to make excellent progress," he said, describing visiting the construction site as "even more impressive in person".
"Along with TSMC's historic investment, roughly two dozen Taiwanese-based suppliers are finding Arizona is right for investment," added Ducey.
TSMC said in an emailed statement the governor and his team did not visit the company, but did talk with them.
"Thanks to the continuous support of the Arizona state government, representatives of TSMC, together with many supply chain partners, had a great discussion with the Governor and his team today on the current investment projects in Arizona," it said, without elaborating.
Ducey said that Taiwanese companies were also finding Arizona's partnership with Taiwan spans decades.
"As one example, for more than 25 years, Taiwan pilots flying F-16 fighter jets have trained at Luke Air Force base in west Phoenix. We are particularly proud of Arizona's role in helping Taiwan bolster its defence and protect its people."
Ducey, is the latest in a succession of officials from the United States to visit, defying pressure from China for such trips not to take place.
China claims Taiwan as its territory despite the strong objections of the democratically elected government in Taipei, which rejects Beijing's sovereignty claims.
Ducey, a Republican, will meet with Taiwan President Tsai Ing-wen and with companies in the semiconductor industry on his three-day trip.
Taiwan has hosted a succession of officials from the United States since a visit by a delegation led by House Speaker Nancy Pelosi early this month, which infuriated China.
Beijing responded to Pelosi's visit with military drills close to the island that included launches of ballistic missiles over Taipei for the first time, and by cutting some lines of dialogue with Washington.
(Reporting by Ben Blanchard; Editing by Kenneth Maxwell and Bernadette Baum)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC), a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, is constructing a $12 billion plant in Arizona. Taiwan has hosted a succession of officials from the United States since a visit by a delegation led by House Speaker Nancy Pelosi early this month, which infuriated China. Beijing responded to Pelosi's visit with military drills close to the island that included launches of ballistic missiles over Taipei for the first time, and by cutting some lines of dialogue with Washington.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC), a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, is constructing a $12 billion plant in Arizona. Adds TSMC comment TAIPEI, Aug 31 (Reuters) - Taiwanese chip maker TSMC 2330.TWTSM.N is making "excellent" progress building its new plant in Arizona, the governor of the U.S. state said on Wednesday, going on to praise his state's role in training Taiwanese fighter pilots. Speaking at an investment conference during a visit to Taipei, Arizona Governor Doug Ducey recalled meeting the TSMC leadership in 2017 and then in 2020 announcing the investment.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC), a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, is constructing a $12 billion plant in Arizona. Adds TSMC comment TAIPEI, Aug 31 (Reuters) - Taiwanese chip maker TSMC 2330.TWTSM.N is making "excellent" progress building its new plant in Arizona, the governor of the U.S. state said on Wednesday, going on to praise his state's role in training Taiwanese fighter pilots. Speaking at an investment conference during a visit to Taipei, Arizona Governor Doug Ducey recalled meeting the TSMC leadership in 2017 and then in 2020 announcing the investment.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC), a major Apple Inc AAPL.O supplier and the world's largest contract chipmaker, is constructing a $12 billion plant in Arizona. Adds TSMC comment TAIPEI, Aug 31 (Reuters) - Taiwanese chip maker TSMC 2330.TWTSM.N is making "excellent" progress building its new plant in Arizona, the governor of the U.S. state said on Wednesday, going on to praise his state's role in training Taiwanese fighter pilots. "Thanks to the continuous support of the Arizona state government, representatives of TSMC, together with many supply chain partners, had a great discussion with the Governor and his team today on the current investment projects in Arizona," it said, without elaborating.
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19554.0
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2022-08-31 00:00:00 UTC
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86% of Warren Buffett's Portfolio Is Invested in These 10 Stocks
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AAPL
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https://www.nasdaq.com/articles/86-of-warren-buffetts-portfolio-is-invested-in-these-10-stocks
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nan
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nan
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When it comes to making money on Wall Street, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett should be in a class of his own. Over a 57-year stretch as CEO, he's overseen the creation of almost $640 billion in shareholder value and guided his company's Class A shares (BRK.A) to a healthy aggregate return of 3,641,613% as of the end of 2021.
In other words, there's good reason everyone from Wall Street professionals to retail investors pays close attention to what the Oracle of Omaha is buying, selling, and holding.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Diversification isn't necessary if you know what you're doing
Although there's a long list of factors paramount to Warren Buffett's long-term success, such as his love of dividend stocks and willingness to hold his investments for years, if not decades, what may not be readily apparent to most investors is that Buffett predominantly shuns diversification. In his view, diversification is only necessary if you don't know what you're doing -- and the Oracle of Omaha's track record certainly demonstrates he knows what he's doing.
In total, just 10 stocks account for 86.4% of the $356.7 billion portfolio Warren Buffett oversees for Berkshire Hathaway, including shares owned by New England Asset Management:
Apple (NASDAQ: AAPL): $149.7 billion (42% of invested assets).
Bank of America (NYSE: BAC): $35.1 billion (9.9%).
Chevron (NYSE: CVX): $26.7 billion (7.5%).
Coca-Cola (NYSE: KO): $25.2 billion (7.1%).
American Express (NYSE: AXP): $23.8 billion (6.7%).
Occidental Petroleum (NYSE: OXY): $13.9 billion (3.9%).
Kraft Heinz (NASDAQ: KHC): $12.4 billion (3.5%).
BYD (OTC: BYDD.F): $7.6 billion (2.1%).
Moody's (NYSE: MCO): $7.2 billion (2%).
U.S. Bancorp (NYSE: USB): $6.4 billion (1.8%).
Apple is a "giant"
Warren Buffett's portfolio leaves little doubt about which company he believes can create significant value for Berkshire Hathaway over time. As of this past weekend, Apple accounted for 42% of Berkshire's invested assets and has previously been dubbed as one of Berkshire Hathaway's "four giants" by Buffett.
Why Apple? To begin with, Apple is the most valuable brand in the world, according to Brand Finance, and has an exceptionally loyal customer base. Brand recognition and customer loyalty are oft overlooked reasons some of the largest companies in the world are able to continually grow their sales and profits.
Apple is also one of the world's most innovative companies. Since introducing the 5G-capable iPhone during the fourth quarter of 2020, Apple's share of U.S. smartphone sales has been at least 47% in every quarter.
However, Apple's future lies with subscription services. Though it's not abandoning the physical products that brought it fame and a loyal customer base, CEO Tim Cook is overseeing the logical transition of his company to a platform that emphasizes services. This should lead to steadier revenue growth and higher operating margins over time.
As one final note, Warren Buffett is a big fan of publicly traded companies that have stellar capital return programs. In Apple's case, it's repurchased approximately $520 billion worth of its common stock since 2013 and doles out one of the largest nominal-dollar dividends each year.
Image source: American Express.
Financials are a Buffett favorite
Anyone who's followed the Oracle of Omaha's investments for any length of time shouldn't be surprised that financial stocks account for four of Berkshire Hathaway's top 10 holdings.
Warren Buffett has always favored putting his company's money to work in bank stocks, insurance companies, and payment processors, because he's playing a numbers game that strongly favors long-term investors. Even though recessions are an inevitable part of the economic cycle, they typically last for just a couple of quarters. By comparison, economic expansions are measured in years. Instead of trying to time when recessions will occur, Buffett has packed his company's portfolio with financial stocks primed to benefit from disproportionately long periods of domestic and/or global expansion.
Bank of America (BofA) is a particularly intriguing investment given its interest-rate sensitivity among money-center banks. With the Federal Reserve having no choice but to aggressively raise interest rates in order to tame historically high inflation, no large bank is set to benefit more than BofA. According to the company's most recent earnings presentation, a 100 basis-point parallel shift in the interest rate yield curve should generate an estimated $5 billion in added net-interest income over the next 12 months.
American Express, which is Buffett's second longest-held stock (29 years), is another perfect example of a financial stock benefiting from long periods of expansion. Not only is AmEx bringing in merchant fees as a payment processor, but it's generating interest income and card fees as a lender. When the U.S. and global economy are growing, AmEx can double dip and really pump up its profits.
Furthermore, given American Express's ability to court affluent clientele, it can often navigate minor economic downturns better than most payment processors and lenders.
Energy stocks are the Oracle of Omaha's newfound love
But the real surprise in 2022 is that energy stocks account for more than 10% of Berkshire Hathaway's invested assets for the first time this century. The only two energy stocks Buffett has bought are integrated oil and gas plays Chevron and Occidental Petroleum.
With over $40 billion of invested assets tied up in Chevron and Occidental, it's pretty clear that the Oracle of Omaha and his investing team believe oil and gas prices will remain elevated for the foreseeable future. This is certainly a plausible assessment given Russia's invasion of Ukraine and the lack of capital investment in drilling, exploration, and midstream infrastructure since the COVID-19 pandemic began. Increasing domestic and global oil, natural gas, and natural gas liquid supply isn't going to happen overnight.
Buffett has also seemingly "hedged" his two sizable energy bets by piling into integrated operators. An "integrated" oil and gas company operates midstream and/or downstream assets in addition to drilling and exploration (i.e., upstream assets). Midstream assets, such as pipelines and storage, often produce highly predictable cash flow thanks to fixed-fee or volume-based contracts. Meanwhile, downstream assets, such as chemical plants and refineries, almost always benefit from lower input costs and higher demand when the price for crude oil falls.
The only real head-scratcher with Buffett's oil stock investments is why he chose Occidental. Chevron has what's arguably the best balance sheet among global oil companies. Comparatively, Occidental Petroleum is one of the most leveraged integrated oil companies in the United States. The Oracle of Omaha better hope that energy commodity prices remain high so Occidental has an opportunity to significantly reduce its net debt.
10 stocks we like better than Apple
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Bank of America and American Express 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, BYD, Berkshire Hathaway (B shares), and Moody's. The Motley Fool recommends The Kraft Heinz Company and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In total, just 10 stocks account for 86.4% of the $356.7 billion portfolio Warren Buffett oversees for Berkshire Hathaway, including shares owned by New England Asset Management: Apple (NASDAQ: AAPL): $149.7 billion (42% of invested assets). Though it's not abandoning the physical products that brought it fame and a loyal customer base, CEO Tim Cook is overseeing the logical transition of his company to a platform that emphasizes services. Instead of trying to time when recessions will occur, Buffett has packed his company's portfolio with financial stocks primed to benefit from disproportionately long periods of domestic and/or global expansion.
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In total, just 10 stocks account for 86.4% of the $356.7 billion portfolio Warren Buffett oversees for Berkshire Hathaway, including shares owned by New England Asset Management: Apple (NASDAQ: AAPL): $149.7 billion (42% of invested assets). When it comes to making money on Wall Street, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett should be in a class of his own. An "integrated" oil and gas company operates midstream and/or downstream assets in addition to drilling and exploration (i.e., upstream assets).
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In total, just 10 stocks account for 86.4% of the $356.7 billion portfolio Warren Buffett oversees for Berkshire Hathaway, including shares owned by New England Asset Management: Apple (NASDAQ: AAPL): $149.7 billion (42% of invested assets). Energy stocks are the Oracle of Omaha's newfound love But the real surprise in 2022 is that energy stocks account for more than 10% of Berkshire Hathaway's invested assets for the first time this century. The Motley Fool recommends The Kraft Heinz Company and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple.
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In total, just 10 stocks account for 86.4% of the $356.7 billion portfolio Warren Buffett oversees for Berkshire Hathaway, including shares owned by New England Asset Management: Apple (NASDAQ: AAPL): $149.7 billion (42% of invested assets). Berkshire Hathaway CEO Warren Buffett. Why Apple?
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19555.0
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2022-08-31 00:00:00 UTC
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Should Invesco NASDAQ 100 ETF (QQQM) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-invesco-nasdaq-100-etf-qqqm-be-on-your-investing-radar-2
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nan
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nan
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Launched on 10/13/2020, the Invesco NASDAQ 100 ETF (QQQM) 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 Invesco. It has amassed assets over $4.93 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
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. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. 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
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 0.15%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.58%.
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 54.90% of the portfolio. Telecom and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.37% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 51.92% of total assets under management.
Performance and Risk
QQQM seeks to match the performance of the NASDAQ-100 INDEX before fees and expenses. The NASDAQ-100 Index includes securities of 100 of the largest domestic and international nonfinancial companies listed on Nasdaq.
The ETF has lost about -24.81% so far this year and is down about -20.29% in the last one year (as of 08/31/2022). In the past 52-week period, it has traded between $111.72 and $166.07.
The ETF has a beta of 1.20 and standard deviation of 24.44% for the trailing three-year period. With about 104 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco NASDAQ 100 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, QQQM is a good option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $73.82 billion in assets, Invesco QQQ has $165.98 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Invesco NASDAQ 100 ETF (QQQM): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.37% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 10/13/2020, the Invesco NASDAQ 100 ETF (QQQM) 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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Apple Inc. (AAPL): Free Stock Analysis Report Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.37% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Invesco NASDAQ 100 ETF (QQQM): ETF Research Reports
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.37% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report 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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Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.37% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
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19556.0
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2022-08-31 00:00:00 UTC
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Should Schwab U.S. LargeCap ETF (SCHX) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-schwab-u.s.-largecap-etf-schx-be-on-your-investing-radar-3
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nan
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nan
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Launched on 11/03/2009, the Schwab U.S. LargeCap ETF (SCHX) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Charles Schwab. It has amassed assets over $29.07 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.03%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.54%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 28.40% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.14% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 25.53% of total assets under management.
Performance and Risk
SCHX seeks to match the performance of the Dow Jones U.S. Large-Cap Total Stock Market Index before fees and expenses. The Dow Jones U.S. Large-Cap Total Stock Market measures all U.S. equity securities with readily available prices. The index includes approximately the largest 750 stocks and is float-adjusted market-capitalization weighted.
The ETF has lost about -17.01% so far this year and is down about -12.63% in the last one year (as of 08/31/2022). In the past 52-week period, it has traded between $43.35 and $57.29.
The ETF has a beta of 1.01 and standard deviation of 24.36% for the trailing three-year period, making it a medium risk choice in the space. With about 756 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab 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, SCHX 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 $297.99 billion in assets, SPDR S&P 500 ETF has $364.55 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Schwab U.S. LargeCap ETF (SCHX): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.14% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 11/03/2009, the Schwab U.S. LargeCap ETF (SCHX) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
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Apple Inc. (AAPL): Free Stock Analysis Report Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.14% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Performance and Risk SCHX seeks to match the performance of the Dow Jones U.S. Large-Cap Total Stock Market Index before fees and expenses.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.14% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives Schwab 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 6.14% 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 $29.07 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
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19557.0
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2022-08-30 00:00:00 UTC
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Are Options Traders Betting on a Big Move in Apple (AAPL) Stock?
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AAPL
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https://www.nasdaq.com/articles/are-options-traders-betting-on-a-big-move-in-apple-aapl-stock
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nan
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nan
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Investors in Apple Inc. AAPL need to pay close attention to the stock based on moves in the options market lately. That is because the Sep 2, 2022 $70.00 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Apple shares, but what is the fundamental picture for the company? Currently, Apple is a Zacks Rank #3 (Hold) in the Computer - Mini computers industry that ranks in the Bottom 11% of our Zacks Industry Rank. Over the last 30 days, no analysts have increased their earnings estimates for the current quarter, while ten analysts have revised the estimate downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from $1.32 per share to $1.25 in that period.
Given the way analysts feel about Apple right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Check out the simple yet high-powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple-digit winners. In addition to impressive profit potential, these trades can actually reduce your risk.
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How to Profit from the Hot Electric Vehicle Industry
Global electric car sales in 2021 more than doubled their 2020 numbers. And today, the electric vehicle (EV) technology and very nature of the business is changing quickly. The next push for future technologies is happening now and investors who get in early could see exceptional profits.
See Zacks' Top Stocks to Profit from the EV Revolution >>
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Apple Inc. (AAPL): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors in Apple Inc. AAPL need to pay close attention to the stock based on moves in the options market lately. Apple Inc. (AAPL): Free Stock Analysis Report Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
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Investors in Apple Inc. AAPL need to pay close attention to the stock based on moves in the options market lately. Apple Inc. (AAPL): Free Stock Analysis Report Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
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Investors in Apple Inc. AAPL need to pay close attention to the stock based on moves in the options market lately. Apple Inc. (AAPL): Free Stock Analysis Report Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
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Investors in Apple Inc. AAPL need to pay close attention to the stock based on moves in the options market lately. Apple Inc. (AAPL): Free Stock Analysis Report However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
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19558.0
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2022-08-30 00:00:00 UTC
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Apple chief privacy officer set to leave company for law firm -Bloomberg News
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AAPL
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https://www.nasdaq.com/articles/apple-chief-privacy-officer-set-to-leave-company-for-law-firm-bloomberg-news
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nan
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nan
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Aug 30 (Reuters) - Apple Inc's AAPL.O Chief Privacy Officer Jane Horvath will be leaving the company soon to work at a law firm, Bloomberg News reported on Tuesday citing people familiar with the matter.
Horvath, who joined Apple in 2011, is taking a job at Gibson, Dunn & Crutcher, the report said. (https://bloom.bg/3pVA6zI)
The iPhone maker's top privacy executive, who is also a lawyer, had previously served in key privacy roles at Alphabet Inc's GOOGL.O Google the U.S. Department of Justice, as per her LinkedIn profile.
Horvath was hired to formalize privacy practices after the 2011 "locationgate" scandal, in which iPhones were found to be gathering information about users' whereabouts.
The reported move by Horvath also comes after Apple upended the digital ad industry by introducing new iPhone privacy controls last year, which hurt the ability for firms like Meta META.O and Snap SNAP.N to target and measure ads on their apps.
Apple did not immediately respond to a Reuters' request for comment.
(Reporting by Mrinmay Dey in Bengaluru; editing by Uttaresh.V)
((Mrinmay.Dey@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aug 30 (Reuters) - Apple Inc's AAPL.O Chief Privacy Officer Jane Horvath will be leaving the company soon to work at a law firm, Bloomberg News reported on Tuesday citing people familiar with the matter. Horvath, who joined Apple in 2011, is taking a job at Gibson, Dunn & Crutcher, the report said. Horvath was hired to formalize privacy practices after the 2011 "locationgate" scandal, in which iPhones were found to be gathering information about users' whereabouts.
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Aug 30 (Reuters) - Apple Inc's AAPL.O Chief Privacy Officer Jane Horvath will be leaving the company soon to work at a law firm, Bloomberg News reported on Tuesday citing people familiar with the matter. The reported move by Horvath also comes after Apple upended the digital ad industry by introducing new iPhone privacy controls last year, which hurt the ability for firms like Meta META.O and Snap SNAP.N to target and measure ads on their apps. (Reporting by Mrinmay Dey in Bengaluru; editing by Uttaresh.V) ((Mrinmay.Dey@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aug 30 (Reuters) - Apple Inc's AAPL.O Chief Privacy Officer Jane Horvath will be leaving the company soon to work at a law firm, Bloomberg News reported on Tuesday citing people familiar with the matter. (https://bloom.bg/3pVA6zI) The iPhone maker's top privacy executive, who is also a lawyer, had previously served in key privacy roles at Alphabet Inc's GOOGL.O Google the U.S. Department of Justice, as per her LinkedIn profile. The reported move by Horvath also comes after Apple upended the digital ad industry by introducing new iPhone privacy controls last year, which hurt the ability for firms like Meta META.O and Snap SNAP.N to target and measure ads on their apps.
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Aug 30 (Reuters) - Apple Inc's AAPL.O Chief Privacy Officer Jane Horvath will be leaving the company soon to work at a law firm, Bloomberg News reported on Tuesday citing people familiar with the matter. Horvath, who joined Apple in 2011, is taking a job at Gibson, Dunn & Crutcher, the report said. (https://bloom.bg/3pVA6zI) The iPhone maker's top privacy executive, who is also a lawyer, had previously served in key privacy roles at Alphabet Inc's GOOGL.O Google the U.S. Department of Justice, as per her LinkedIn profile.
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19559.0
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2022-08-30 00:00:00 UTC
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Apple: The iPhone 14 Is Coming, Here’s What to Expect
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AAPL
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https://www.nasdaq.com/articles/apple%3A-the-iphone-14-is-coming-heres-what-to-expect
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nan
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nan
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Apple (AAPL) fans are getting ready for what is possibly the biggest day in the tech giant’s calendar. Next week (Wednesday, September 7) will see the latest release for Apple’s flagship product – the iPhone 14.
Before anyone has even gotten their hands on the newest version, considering the headwinds at play, Wedbush’s Daniel Ives applauds the fact Apple is actually on time with its product release.
“Hitting this target launch with the supply chain issues and zero Covid shutdown seen earlier this year is another massive achievement for Cook & Co,” said the 5-star analyst. “We believe the initial order for 90 million iPhone 14 units out of the gates has stayed firm and will be roughly flat with iPhone 13 despite the macro storm clouds building.”
Ives reckons around 240 million of Apple’s 1 billion global iPhone userbase haven’t upgraded their handsets in over 3.5 years, so there should be plenty of demand for the new unit.
As for Apple’s expectations, Ives believes the company anticipates the “mix shift” will tilt heavily toward the iPhone Pro and Pro Max, which is good news for ASPs (average selling price).
Although the base iPhone’s price will remain the same, due to the increase in the price of components, in addition to the extra functionality of the latest version, a $100 price hike on the iPhone 14 Pro/Pro Max is likely in store.
So, spec wise, what’s on offer? “Enhanced” camera technology (48- megapixel), and according to Ives, the iPhone 14 Pro models will most probably boast the “innovative” A16 chip as more consumers choose to go Pro. Some storage increases are also expected for both the base iPhone 14 and Pro.
While Ives expects the difficult macro conditions to impact demand, the analyst believes that given the ongoing appeal of Apple products, the “baseline” for 220 million iPhone units in FY23 is most probably a “low bar.”
Down to business, then, what does it all mean for investors? Ives reiterated an Outperform (i.e., Buy) rating, backed by a $220 price target. This suggests shares have room for 34% growth in the year ahead. (To watch Ives’ track record, click here)
The Street’s average target is a more modest $183.12, indicating one-year upside potential of ~15%. However, like Ives, most analysts are backing Apple’s continued success; based on 22 Buys, 4 Holds and 1 Sell, the stock claims a Strong Buy consensus rating. (See Apple stock forecast on TipRanks)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) fans are getting ready for what is possibly the biggest day in the tech giant’s calendar. Before anyone has even gotten their hands on the newest version, considering the headwinds at play, Wedbush’s Daniel Ives applauds the fact Apple is actually on time with its product release. “Hitting this target launch with the supply chain issues and zero Covid shutdown seen earlier this year is another massive achievement for Cook & Co,” said the 5-star analyst.
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Apple (AAPL) fans are getting ready for what is possibly the biggest day in the tech giant’s calendar. As for Apple’s expectations, Ives believes the company anticipates the “mix shift” will tilt heavily toward the iPhone Pro and Pro Max, which is good news for ASPs (average selling price). Ives reiterated an Outperform (i.e., Buy) rating, backed by a $220 price target.
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Apple (AAPL) fans are getting ready for what is possibly the biggest day in the tech giant’s calendar. “We believe the initial order for 90 million iPhone 14 units out of the gates has stayed firm and will be roughly flat with iPhone 13 despite the macro storm clouds building.” Ives reckons around 240 million of Apple’s 1 billion global iPhone userbase haven’t upgraded their handsets in over 3.5 years, so there should be plenty of demand for the new unit. As for Apple’s expectations, Ives believes the company anticipates the “mix shift” will tilt heavily toward the iPhone Pro and Pro Max, which is good news for ASPs (average selling price).
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Apple (AAPL) fans are getting ready for what is possibly the biggest day in the tech giant’s calendar. As for Apple’s expectations, Ives believes the company anticipates the “mix shift” will tilt heavily toward the iPhone Pro and Pro Max, which is good news for ASPs (average selling price). Although the base iPhone’s price will remain the same, due to the increase in the price of components, in addition to the extra functionality of the latest version, a $100 price hike on the iPhone 14 Pro/Pro Max is likely in store.
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19560.0
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2022-08-30 00:00:00 UTC
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7 Hot Growth Stocks to Buy in September
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AAPL
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https://www.nasdaq.com/articles/7-hot-growth-stocks-to-buy-in-september
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Based on the market’s recent performance, you may think now isn’t the time to increase exposure to hot growth stocks. After all, aren’t rising interest rates and the growing likelihood of a recession bad news for growth?
Yes and no. On one hand, there are plenty of high-fliers from the 2020/2021 bull market that will likely continue to face challenges in the near term. Some of them, due to their poor fundamentals, face murky prospects in the long term.
But while that’s the case for many growth plays, it’s not the case for all of them. Top-rated names in this category could begin to recover much sooner than current sentiment suggests. In addition, there are several picks you may not associate with the term “growth stock,” yet could be just that as they are the beneficiaries of some powerful trends.
With this, consider it high time to pick up these seven hot growth stocks this September. After the recent market pullback, each has fallen to a favorable entry price.
AAPL Apple $158.91
ALB Albemarle $272.77
DVN Devon Energy $71.08
NEE NextEra Energy $85.70
ON ON Semiconductor $68.97
SQM Sociedad Quimica y Minera de Chile $102.35
TSLA Tesla $277.70
Apple (AAPL)
Source: WeDesing / Shutterstock.com
As the largest stock by market cap, you may think Apple’s (NASDAQ:AAPL) days of high growth are behind it. With its outstanding shares worth nearly $2.6 trillion, admittedly it’ll take a lot to move the needle.
Fortunately, though, there are several big growth catalysts in play. In the short term, new product launches could help to reaccelerate growth. And I’m not just talking about the rumored upcoming launch of the iPhone 14. I’m also talking about the launch of a new Apple Watch model, plus the debut of its augmented and mixed reality headset.
In the long run, the company could “level up,” and so too could AAPL stock, if it brings a self-driving electric vehicle to market in a few years’ time.
After pulling back over the past two weeks, September may be the perfect time to enter/add to a position in AAPL stock.
AAPL stock earns a B rating in my Portfolio Grader.
Albemarle (ALB)
Source: IgorGolovniov/Shutterstock.com
Albemarle (NYSE:ALB) is a good example of what I meant when I said not all the stocks on this list may immediately be thought of as growth plays. So, what makes this specialty chemicals company a hot growth stock?
Its high exposure to the proliferation of EVs. Albemarle is a leading provider of lithium used to build EV batteries. Unlike other commodities, which spiked earlier this year due to Russia’s invasion of Ukraine only to sink due to recession fears, lithium prices have held onto their supply shock gains.
Albemarle is cashing in big time. Analysts are expecting a 124% year-over-year jump in 2022 revenue and 404% YOY earnings growth. Best of all, while ALB stock is up 17% so far this year, it continues to trade at a relatively low forward earnings multiple of 14.2x.
ALB stock earns a B rating in my Portfolio Grader.
Devon Energy (DVN)
Source: Jeff Whyte / Shutterstock.com
Oil and gas company Devon Energy (NYSE:DVN) is another good example of how when I say “hot growth stock,” I’m not just talking about names in sectors like big tech or clean energy. Carbon-free energy may be the future, but for the time being, fossil fuels reign supreme.
Couple that with this year’s oil and gas supply challenges, and it’s no surprise this stock has been crushing it over the past 12 months. While major indices have sunk, DVN stock surged 134%. Don’t assume, however, that you’ve missed the boat if you’ve yet to add it to your portfolio.
Despite concerns about the impact of a recession on demand, analysts continue to anticipate crude oil prices will remain elevated over the next few years. This points to continued strong earnings and big dividend payouts from Devon.
DVN stock earns an A rating in my Portfolio Grader.
NextEra Energy (NEE)
Source: madamF / Shutterstock.com
Among the “green wave” hot growth stocks, NextEra Energy (NYSE:NEE) is definitely one of the most interesting. It’s part old-school utility company (it owns Florida Power & Light) and part clean energy provider. As a result, NEE stock offers investors the best of both worlds.
If you are looking for steady income from an investment, this stock has you covered. It currently pays out $1.70 per year in dividends for a 1.9% forward yield. Not only that, but with 26 years of consecutive dividend growth, it’s a bona fide Dividend Aristocrat.
If you’re looking for high-growth potential, NextEra has you covered, as well. The move to energy sources like solar and wind, possibly accelerated by the Inflation Reduction Act, will help to drive continued earnings growth. This, in turn, will enable the stock to grow its valuation over time.
NEE stock earns a B rating in my Portfolio Grader.
ON Semiconductor (ON)
Source: Shutterstock
Lately, strong demand from end users like the auto industry has resulted in big growth for ON Semiconductor (NASDAQ:ON). As I recently discussed, when the chipmaker last reported earnings, it handily beat estimates. Revenue and earnings were up substantially from the prior year’s quarter, at 25% and 143%, respectively.
Earnings are expected to decline next year, which is why the stock trades at a fairly low forward valuation of 14.1x earnings. However, it’s possible investors are overestimating how much industrial chip demand will fall during an economic downturn.
The CHIPS and Science Act, which was signed into law in early August, bodes well for the company. This piece of legislation provides billions in subsidies to help domestic chipmakers increase their production capacity. Already in the midst of expanding its manufacturing capabilities, ON Semiconductor is well-positioned to benefit from this bill.
ON stock earns an A rating in my Portfolio Grader.
Sociedad Quimica y Minera de Chile (SQM)
Source: Jens_Bee / Shutterstock.com
Like Albemarle, Sociedad Quimica Y Minera de Chile (NYSE:SQM) is another old-school name that’s become a high-growth stock thanks to the lithium boom. However, this basic materials giant has also benefited from a second recent trend — the big jump in fertilizer prices.
The run-up in fertilizer prices due to the Russia/Ukraine conflict has resulted in a tremendous jump in revenue and earnings. For 2022, Sociedad Quimica Y Minera de Chile is expected to see revenue growth of 216% and earnings growth of 469% to $11.66 per share.
Of course, a lot of this growth has already been factored into SQM’s stock price. Shares are up 103% year to date. Even so, trading at 7.3x forward earnings and sporting a 10.6% dividend yield, there’s a lot of value (and growth potential) left in this stock.
SQM stock earns an A rating in my Portfolio Grader.
Tesla (TSLA)
Source: Shutterstock
Up over 1,000% in the past five years and sporting a market cap of $870 billion, skeptics may believe all the growth potential is already priced into Tesla (NASDAQ:TSLA), and then some.
Yet, there is a path for TSLA stock to not only hold onto its gains from recent years but to hit new highs. How? First, the EV revolution isn’t going away. In fact, thanks to the expansion of EV tax credits, U.S. motorists could switch over even sooner than previously expected.
Second, the launch of new models (like the Cybertruck) and the release of new innovations can enable Tesla shares to reach the next level. As InvestorPlace’s Samuel O’Brient reported on Aug. 29, the company’s fully self-driving vehicles could soon hit the roads. Far from peaking, Tesla is another one of the hot growth stocks to buy in September.
TSLA stock earns a B rating in my Portfolio Grader.
On the date of publication, Louis Navellier has a position in DVN, ON and SQM. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
On the date of publication, the InvestorPlace Research staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
The post 7 Hot Growth Stocks to Buy in September 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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In the long run, the company could “level up,” and so too could AAPL stock, if it brings a self-driving electric vehicle to market in a few years’ time. AAPL Apple $158.91 ALB Albemarle $272.77 DVN Devon Energy $71.08 NEE NextEra Energy $85.70 ON ON Semiconductor $68.97 SQM Sociedad Quimica y Minera de Chile $102.35 TSLA Tesla $277.70 Apple (AAPL) Source: WeDesing / Shutterstock.com As the largest stock by market cap, you may think Apple’s (NASDAQ:AAPL) days of high growth are behind it. After pulling back over the past two weeks, September may be the perfect time to enter/add to a position in AAPL stock.
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AAPL Apple $158.91 ALB Albemarle $272.77 DVN Devon Energy $71.08 NEE NextEra Energy $85.70 ON ON Semiconductor $68.97 SQM Sociedad Quimica y Minera de Chile $102.35 TSLA Tesla $277.70 Apple (AAPL) Source: WeDesing / Shutterstock.com As the largest stock by market cap, you may think Apple’s (NASDAQ:AAPL) days of high growth are behind it. In the long run, the company could “level up,” and so too could AAPL stock, if it brings a self-driving electric vehicle to market in a few years’ time. After pulling back over the past two weeks, September may be the perfect time to enter/add to a position in AAPL stock.
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AAPL Apple $158.91 ALB Albemarle $272.77 DVN Devon Energy $71.08 NEE NextEra Energy $85.70 ON ON Semiconductor $68.97 SQM Sociedad Quimica y Minera de Chile $102.35 TSLA Tesla $277.70 Apple (AAPL) Source: WeDesing / Shutterstock.com As the largest stock by market cap, you may think Apple’s (NASDAQ:AAPL) days of high growth are behind it. In the long run, the company could “level up,” and so too could AAPL stock, if it brings a self-driving electric vehicle to market in a few years’ time. After pulling back over the past two weeks, September may be the perfect time to enter/add to a position in AAPL stock.
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AAPL Apple $158.91 ALB Albemarle $272.77 DVN Devon Energy $71.08 NEE NextEra Energy $85.70 ON ON Semiconductor $68.97 SQM Sociedad Quimica y Minera de Chile $102.35 TSLA Tesla $277.70 Apple (AAPL) Source: WeDesing / Shutterstock.com As the largest stock by market cap, you may think Apple’s (NASDAQ:AAPL) days of high growth are behind it. In the long run, the company could “level up,” and so too could AAPL stock, if it brings a self-driving electric vehicle to market in a few years’ time. After pulling back over the past two weeks, September may be the perfect time to enter/add to a position in AAPL stock.
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19561.0
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2022-08-30 00:00:00 UTC
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US STOCKS-Wall St closes down for 3rd straight session on Fed rate hike worry
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-closes-down-for-3rd-straight-session-on-fed-rate-hike-worry-0
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nan
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nan
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By Chuck Mikolajczak
NEW YORK, Aug 30 (Reuters) - U.S. stocks closed lower for a third straight session on Tuesday as a rise in job openings fueled fears the U.S. Federal Reserve has another reason to maintain its aggressive path of interest rate hikes to combat inflation.
The benchmark S&P 500 index .SPX has tumbled more than 5% since Fed Chair Jerome Powell on Friday reaffirmed the central bank's determination to raise interest rates even in the face of a slowing economy.
Labor demand showed no signs of cooling as U.S. job openings rose to 11.239 million in July and the prior month was revised sharply higher. A separate report showed consumer confidence rebounded strongly in August after three straight monthly declines.
"They have to weaken the labor market and how are they going to do that – they are going to jam rates and make things so expensive that people are going to pull back, demand is going to fall off, and people are going to get laid off," said Ken Polcari, managing partner at Kace Capital Advisors in Boca Raton, Florida.
"It locks them in even further."
The data increases the focus on the August non-farm payrolls data due on Friday.
The Dow Jones Industrial Average .DJI fell 308.12 points, or 0.96%, to 31,790.87, the S&P 500 .SPX lost 44.45 points, or 1.10%, to 3,986.16 and the Nasdaq Composite .IXIC dropped 134.53 points, or 1.12%, to 11,883.14.
New York Fed President John Williams said on Tuesday the central bank will likely need to get its policy rate about 3.5% and is unlikely to cut interest rates at all next year as it fights inflation.
However, Atlanta Fed President Raphael Bostic said in an essay published on Tuesday the Fed could "dial back" from its recent string of 75 basis point hikes if new data shows inflation is "clearly" slowing. Richmond Fed President Thomas Barkin said the Fed's pledge to bring inflation down to its 2% goal will not necessarily result in a severe recession.
Traders are pricing in a 74.5% chance of a third straight 75-basis point rate hike at the Fed's September meeting. FEDWATCH
Each of the 11 S&P 500 sectors were in negative territory, with the energy sector .SPNY down 3.36%, the biggest percentage decliner, as oil prices settled down more than 5% on concerns that the slowing of global economies could sap demand.
Rate-sensitive megacap growth and technology stocks such as Microsoft Corp MSFT.O, down 0.85%, and Apple Inc AAPL.O, off 1.53%, were among the biggest drags on the benchmark index.
Both the S&P 500 and the Nasdaq have broken below their 50-day moving average. The S&P 500 also briefly fell below the 50% Fibonacci retracement level from its June low to August high, another key technical indicator watched by analysts as support.
The CBOE Volatility index, also known as Wall Street's fear gauge, rose for the third straight session and hit a six-week high at 27.69 points.
Adding to worries, Taiwan's military fired warning shots at a Chinese drone which buzzed an islet controlled by Taiwan near the Chinese coast.
Best Buy Co BBY.N rose 1.61% as one of the biggest gainers on the S&P 500 after it reported a smaller-than-expected drop in quarterly comparable sales thanks to steep discounts.
Volume on U.S. exchanges was 10.51 billion shares, compared with the 10.54 billion average for the full session over the last 20 trading days.
Declining issues outnumbered advancing ones on the NYSE by a 4.27-to-1 ratio; on Nasdaq, a 2.44-to-1 ratio favored decliners.
The S&P 500 posted no new 52-week highs and 18 new lows; the Nasdaq Composite recorded 15 new highs and 217 new lows.
SPX technicalhttps://tmsnrt.rs/3TsV32x
(Reporting by Chuck Mikolajczak; Editing by David Gregorio)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Rate-sensitive megacap growth and technology stocks such as Microsoft Corp MSFT.O, down 0.85%, and Apple Inc AAPL.O, off 1.53%, were among the biggest drags on the benchmark index. By Chuck Mikolajczak NEW YORK, Aug 30 (Reuters) - U.S. stocks closed lower for a third straight session on Tuesday as a rise in job openings fueled fears the U.S. Federal Reserve has another reason to maintain its aggressive path of interest rate hikes to combat inflation. The benchmark S&P 500 index .SPX has tumbled more than 5% since Fed Chair Jerome Powell on Friday reaffirmed the central bank's determination to raise interest rates even in the face of a slowing economy.
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Rate-sensitive megacap growth and technology stocks such as Microsoft Corp MSFT.O, down 0.85%, and Apple Inc AAPL.O, off 1.53%, were among the biggest drags on the benchmark index. The Dow Jones Industrial Average .DJI fell 308.12 points, or 0.96%, to 31,790.87, the S&P 500 .SPX lost 44.45 points, or 1.10%, to 3,986.16 and the Nasdaq Composite .IXIC dropped 134.53 points, or 1.12%, to 11,883.14. However, Atlanta Fed President Raphael Bostic said in an essay published on Tuesday the Fed could "dial back" from its recent string of 75 basis point hikes if new data shows inflation is "clearly" slowing.
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Rate-sensitive megacap growth and technology stocks such as Microsoft Corp MSFT.O, down 0.85%, and Apple Inc AAPL.O, off 1.53%, were among the biggest drags on the benchmark index. By Chuck Mikolajczak NEW YORK, Aug 30 (Reuters) - U.S. stocks closed lower for a third straight session on Tuesday as a rise in job openings fueled fears the U.S. Federal Reserve has another reason to maintain its aggressive path of interest rate hikes to combat inflation. The Dow Jones Industrial Average .DJI fell 308.12 points, or 0.96%, to 31,790.87, the S&P 500 .SPX lost 44.45 points, or 1.10%, to 3,986.16 and the Nasdaq Composite .IXIC dropped 134.53 points, or 1.12%, to 11,883.14.
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Rate-sensitive megacap growth and technology stocks such as Microsoft Corp MSFT.O, down 0.85%, and Apple Inc AAPL.O, off 1.53%, were among the biggest drags on the benchmark index. The Dow Jones Industrial Average .DJI fell 308.12 points, or 0.96%, to 31,790.87, the S&P 500 .SPX lost 44.45 points, or 1.10%, to 3,986.16 and the Nasdaq Composite .IXIC dropped 134.53 points, or 1.12%, to 11,883.14. New York Fed President John Williams said on Tuesday the central bank will likely need to get its policy rate about 3.5% and is unlikely to cut interest rates at all next year as it fights inflation.
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19562.0
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2022-08-30 00:00:00 UTC
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US STOCKS-Wall St closes down for 3rd straight session on Fed rate hike worry
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-closes-down-for-3rd-straight-session-on-fed-rate-hike-worry
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nan
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nan
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By Chuck Mikolajczak
Aug 30 (Reuters) - U.S. stocks closed lower for a third straight session on Tuesday as a rise in job openings fueled fears the U.S. Federal Reserve has another reason to maintain its aggressive path of interest rate hikes to combat inflation.
The benchmark S&P 500 index .SPX has tumbled more than 5% since Fed Chair Jerome Powell on Friday reaffirmed the central bank's determination to raise interest rates even in the face of a slowing economy.
Labor demand showed no signs of cooling as U.S. job openings rose to 11.239 million in July and the prior month was revised sharply higher. A separate report showed consumer confidence rebounded strongly in August after three straight monthly declines.
"They have to weaken the labor market and how are they going to do that – they are going to jam rates and make things so expensive that people are going to pull back, demand is going to fall off, and people are going to get laid off," said Ken Polcari, managing partner at Kace Capital Advisors in Boca Raton, Florida.
"It locks them in even further."
The data increases the focus on the August non-farm payrolls data due on Friday.
According to preliminary data, the S&P 500 .SPX lost 44.47 points, or 1.10%, to end at 3,986.14 points, while the Nasdaq Composite .IXIC lost 128.85 points, or 1.07%, to 11,888.82. The Dow Jones Industrial Average .DJI fell 308.68 points, or 0.95%, to 31,790.31.
New York Fed President John Williams said on Tuesday the central bank will likely need to get its policy rate about 3.5% and is unlikely to cut interest rates at all next year as it fights inflation.
However, Atlanta Fed President Raphael Bostic said in an essay published on Tuesday the Fed could "dial back" from its recent string of 75 basis point hikes if new data shows inflation is "clearly" slowing while Richmond Fed President Thomas Barkin said the Fed's pledge to bring inflation down to its 2% goal will not necessarily result in a severe recession.
Traders are pricing in a 74.5% chance of a third straight 75-basis point rate hike at the Fed's September meeting. FEDWATCH
Each of the 11 S&P 500 sectors were in negative territory, with the energy sector .SPNY the biggest percentage decliner as oil prices settled down more than 5% on concerns that slowing of global economies could sap demand.
Rate-sensitive megacap growth and technology stocks such as Microsoft Corp MSFT.O, and Apple Inc AAPL.O, were among the biggest drags on the benchmark index.
Both the S&P 500 and the Nasdaq have broken below their 50-day moving average. The S&P 500 also briefly fell below the 50% Fibonacci retracement level from its June low to August high, another key technical indicator watched by analysts as support.
The CBOE Volatility index, also known as Wall Street's fear gauge, rose for the third straight session and hit a six-week high at 27.69 points.
Adding to worries, Taiwan's military fired warning shots at a Chinese drone which buzzed an islet controlled by Taiwan near the Chinese coast.
Best Buy Co BBY.N, however, rose as the biggest gainer on the S&P 500 after it reported a smaller-than-expected drop in quarterly comparable sales thanks to steep discounts.
SPX technicalhttps://tmsnrt.rs/3TsV32x
(Reporting by Chuck Mikolajczak; Editing by David Gregorio)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Rate-sensitive megacap growth and technology stocks such as Microsoft Corp MSFT.O, and Apple Inc AAPL.O, were among the biggest drags on the benchmark index. By Chuck Mikolajczak Aug 30 (Reuters) - U.S. stocks closed lower for a third straight session on Tuesday as a rise in job openings fueled fears the U.S. Federal Reserve has another reason to maintain its aggressive path of interest rate hikes to combat inflation. The benchmark S&P 500 index .SPX has tumbled more than 5% since Fed Chair Jerome Powell on Friday reaffirmed the central bank's determination to raise interest rates even in the face of a slowing economy.
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Rate-sensitive megacap growth and technology stocks such as Microsoft Corp MSFT.O, and Apple Inc AAPL.O, were among the biggest drags on the benchmark index. Labor demand showed no signs of cooling as U.S. job openings rose to 11.239 million in July and the prior month was revised sharply higher. However, Atlanta Fed President Raphael Bostic said in an essay published on Tuesday the Fed could "dial back" from its recent string of 75 basis point hikes if new data shows inflation is "clearly" slowing while Richmond Fed President Thomas Barkin said the Fed's pledge to bring inflation down to its 2% goal will not necessarily result in a severe recession.
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Rate-sensitive megacap growth and technology stocks such as Microsoft Corp MSFT.O, and Apple Inc AAPL.O, were among the biggest drags on the benchmark index. By Chuck Mikolajczak Aug 30 (Reuters) - U.S. stocks closed lower for a third straight session on Tuesday as a rise in job openings fueled fears the U.S. Federal Reserve has another reason to maintain its aggressive path of interest rate hikes to combat inflation. According to preliminary data, the S&P 500 .SPX lost 44.47 points, or 1.10%, to end at 3,986.14 points, while the Nasdaq Composite .IXIC lost 128.85 points, or 1.07%, to 11,888.82.
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Rate-sensitive megacap growth and technology stocks such as Microsoft Corp MSFT.O, and Apple Inc AAPL.O, were among the biggest drags on the benchmark index. According to preliminary data, the S&P 500 .SPX lost 44.47 points, or 1.10%, to end at 3,986.14 points, while the Nasdaq Composite .IXIC lost 128.85 points, or 1.07%, to 11,888.82. The Dow Jones Industrial Average .DJI fell 308.68 points, or 0.95%, to 31,790.31.
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19563.0
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2022-08-30 00:00:00 UTC
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US STOCKS-Wall Street falls for third straight session worries about Fed rate hike
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-falls-for-third-straight-session-worries-about-fed-rate-hike
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By Chuck Mikolajczak
Aug 30 (Reuters) - U.S. stocks slumped for the third straight session on Tuesday as a rise in job openings fueled concerns that the U.S. Federal Reserve has another reason to maintain its aggressive path of interest rate hikes to combat inflation.
The benchmark S&P 500 index .SPX has tumbled more than 5% since Fed Chair Jerome Powell on Friday reaffirmed the central bank's determination to raise interest rates even in the face of a slowing economy.
Labor demand showed no signs of cooling as U.S. job openings rose to 11.239 million in July and the prior month was revised sharply higher. A separate report showed consumer confidence rebounded strongly in August after three straight monthly declines.
"It feeds into a strong labor market, it is also pointing to no apparent concern by consumers and that plays counter to what the market is really looking for," said Andre Bakhos, managing member at Ingenium Analytics LLC in Plainsboro, New Jersey.
"One would construe this normally as good news, however, we have the inflation part that is the concern and these types of numbers do not play well with trying to bring down inflation, at least that is the market’s perception."
The data heightens the focus on the August non-farm payrolls data due on Friday.
The Dow Jones Industrial Average .DJI fell 327.54 points, or 1.02%, to 31,771.45, the S&P 500 .SPX lost 49.12 points, or 1.22%, to 3,981.49 and the Nasdaq Composite .IXIC dropped 173.88 points, or 1.45%, to 11,843.79.
New York Fed President John Williams said on Tuesday the central bank will likely need to get its policy rate about 3.5% and is unlikely to cut interest rates at all next year as it fights inflation.
However, Atlanta Fed President Raphael Bostic said in an essay published on Tuesday the Fed could "dial back" from its recent string of 75 basis point hikes if new data shows inflation is "clearly" slowing while Richmond Fed President Thomas Barkin said the Fed's pledge to bring inflation down to its 2% goal will not necessarily result in a severe recession.
Traders are pricing in a 74.5% chance of a third straight 75-basis point rate hike at the Fed's September meeting. FEDWATCH
Each of the 11 S&P 500 sectors were in negative territory, with the energy sector .SPNY down 3.27% as oil prices slid more than 5% on concerns that slowing of global economies could sap demand.
The benchmark 10-year Treasury yield US10YT=RR erased early morning losses to trade higher at 3.119%.
Rate-sensitive megacap growth and technology stocks such as Microsoft Corp MSFT.O, down 1.32%, and Apple Inc AAPL.O, offf 1.69%, were the biggest drags on the benchmark index.
Both the S&P 500 and the Nasdaq have broken below their 50-day moving average. The S&P 500 also briefly fell below the 50% Fibonacci retracement level from its June low to August high, another key technical indicator watched by analysts as support.
The CBOE Volatility index, also known as Wall Street's fear gauge, rose for the third straight session and was last trading at 26.92 points.
Adding to worries, Taiwan's military fired warning shots at a Chinese drone which buzzed an islet controlled by Taiwan near the Chinese coast.
Best Buy Co BBY.N, however, rose 2.25%, the biggest gainer on the S&P 500 after it reported a smaller-than-expected drop in quarterly comparable sales thanks to steep discounts.
Declining issues outnumbered advancing ones on the NYSE by a 4.83-to-1 ratio; on Nasdaq, a 2.92-to-1 ratio favored decliners.
The S&P 500 posted no new 52-week highs and 18 new lows; the Nasdaq Composite recorded 7 new highs and 196 new lows.
SPX technicalhttps://tmsnrt.rs/3TsV32x
(Reporting by Chuck Mikolajczak; Editing by David Gregorio)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Rate-sensitive megacap growth and technology stocks such as Microsoft Corp MSFT.O, down 1.32%, and Apple Inc AAPL.O, offf 1.69%, were the biggest drags on the benchmark index. By Chuck Mikolajczak Aug 30 (Reuters) - U.S. stocks slumped for the third straight session on Tuesday as a rise in job openings fueled concerns that the U.S. Federal Reserve has another reason to maintain its aggressive path of interest rate hikes to combat inflation. The benchmark S&P 500 index .SPX has tumbled more than 5% since Fed Chair Jerome Powell on Friday reaffirmed the central bank's determination to raise interest rates even in the face of a slowing economy.
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Rate-sensitive megacap growth and technology stocks such as Microsoft Corp MSFT.O, down 1.32%, and Apple Inc AAPL.O, offf 1.69%, were the biggest drags on the benchmark index. A separate report showed consumer confidence rebounded strongly in August after three straight monthly declines. The Dow Jones Industrial Average .DJI fell 327.54 points, or 1.02%, to 31,771.45, the S&P 500 .SPX lost 49.12 points, or 1.22%, to 3,981.49 and the Nasdaq Composite .IXIC dropped 173.88 points, or 1.45%, to 11,843.79.
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Rate-sensitive megacap growth and technology stocks such as Microsoft Corp MSFT.O, down 1.32%, and Apple Inc AAPL.O, offf 1.69%, were the biggest drags on the benchmark index. By Chuck Mikolajczak Aug 30 (Reuters) - U.S. stocks slumped for the third straight session on Tuesday as a rise in job openings fueled concerns that the U.S. Federal Reserve has another reason to maintain its aggressive path of interest rate hikes to combat inflation. The Dow Jones Industrial Average .DJI fell 327.54 points, or 1.02%, to 31,771.45, the S&P 500 .SPX lost 49.12 points, or 1.22%, to 3,981.49 and the Nasdaq Composite .IXIC dropped 173.88 points, or 1.45%, to 11,843.79.
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Rate-sensitive megacap growth and technology stocks such as Microsoft Corp MSFT.O, down 1.32%, and Apple Inc AAPL.O, offf 1.69%, were the biggest drags on the benchmark index. A separate report showed consumer confidence rebounded strongly in August after three straight monthly declines. The Dow Jones Industrial Average .DJI fell 327.54 points, or 1.02%, to 31,771.45, the S&P 500 .SPX lost 49.12 points, or 1.22%, to 3,981.49 and the Nasdaq Composite .IXIC dropped 173.88 points, or 1.45%, to 11,843.79.
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19564.0
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2022-08-30 00:00:00 UTC
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7 Hot Tech Stocks to Buy in September
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AAPL
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https://www.nasdaq.com/articles/7-hot-tech-stocks-to-buy-in-september
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
If you’re looking for tech stocks to buy, it might help to look to the market for emerging trends.
A recent note to clients by investment bank Goldman Sachs (NYSE:GS) highlighted the fact that hedge funds are once again buying U.S. technology stocks. In fact, during this year’s second quarter, hedge funds increased their investments in U.S. tech stocks to their highest level since the start of the COVID-19 pandemic in 2020.
Hedge funds grew their tech stocks to buy while reducing their investments in energy securities during the April through June period. At the same time, the turnover rate of technology stocks among hedge funds fell to a record low of 23% during the second quarter.
According to Goldman Sachs’ note, hedge fund managers began moving money back into technology stocks in mid-June on signs that inflation may have peaked in the U.S.
These tech stocks to buy include familiar names such as Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), and Tesla (NASDAQ:TSLA), to name only a few. Clearly, the so-called “smart money” is betting on a rotation back into technology stocks as inflation cools and the prospect of fewer interest rate hikes nears.
With technology stocks back on the radar of professional money managers, we offer up seven hot tech stocks to buy for investors to buy in September.
AAPL Apple $158.76
AMD Advanced Micro Devices $84.19
MSFT Microsoft $262.96
TMUS T-Mobile $144.59
AVGO Broadcom $497.93
GOOGL Alphabet $110.09
CRM Salesforce $156.36
Apple (AAPL)
Source: dennizn / Shutterstock.com
Apple (NASDAQ:AAPL) was one of the top tech stocks to buy among hedge funds at the start of the summer. September is the perfect time for retail investors to also buy AAPL stock given that it represents the kick-off of the company’s new products leading into the year-end holiday shopping season.
On Sept. 7, Apple is scheduled to host its annual product launch event where it is expected to unveil the iPhone 14 and several other electronic devices that analysts say are likely to include new MacBook computers, low-end iPads and several new versions of the Apple Watch.
Apple plans to live stream the launch rather than hold an in-person event, continuing a trend it began during the pandemic. Media reports say that the standard iPhone 14 will look nearly identical to the iPhone 13.
The minor difference is the company will eliminate the 5.4-inch “mini” version of the smartphone and add a model with a 6.7-inch screen, the first time Apple has included a display of that size.
For the iPhone 14 Pro, Apple is reportedly planning to replace the front-facing camera cut out with a pill-shaped hole for Face identification, and add a faster processor chip and a 48-megapixel wide-angle camera.
The launch events each September typically kick Apple’s sales into high gear heading into the fourth and final quarter of the year, and its stock often gets a boost as well.
Advanced Micro Devices (AMD)
Source: Sundry Photography / Shutterstock.com
Advanced Micro Devices (NASDAQ:AMD) has introduced a new Ryzen 7000 desktop processor that it claims can boost personal computer (PC) speeds by 29%. The new processors go on sale Sept. 27 and are the first new PC chips from AMD since 2020.
AMD says its powerful new Ryzen 7000 chips will help improve processing speeds for video games, video editing software applications, and graphic design programs.
Additionally, the Ryzen 7000 processor is anticipated to reduce energy consumption by 62% compared to the Ryzen 5000 chips. The new 7000 series chips use a newer five-nanometer technology that’s faster and more energy efficient, helping to push the top speed of the processors to 5.7GHz.
AMD is also leading in the use of the so-called “chiplet” design approach that packages several smaller processing elements into one large chip. Year-to-date, AMD’s stock is down 42%. While the decline might be eye-popping at first glance, investors should view it as a buy-the-dip opportunity.
Microsoft (MSFT)
Source: NYCStock / Shutterstock.com
Microsoft (NASDAQ:MSFT) was the second most purchased tech stock among hedge funds in this year’s second quarter, behind only Amazon.
This should not come as a surprise given that Microsoft remains a blue-chip technology security.
The company continues to post strong earnings amid an increasingly diversified business, maintains a market capitalization of nearly $2 trillion. It is one of the few mega-cap tech stocks that pays a dividend (current yield: 0.94%). Plus, Microsoft’s current price-to-earnings ratio of 27 makes the stock look reasonably priced at its current level of $263.08 a share.
Despite the market turmoil this year and challenges ranging from supply chain constraints to high inflation, Microsoft continues to diversify and grow its various businesses — from its $68 billion acquisition of video game maker Activision Blizzard (NASDAQ:ATVI) to its Azure cloud computing segment.
Its most recent quarterly results showed that revenues for the Azure cloud unit grew 40% from a year earlier, which was faster than any of its competitors’ cloud computing divisions. Any way you look at it, Microsoft keeps firing on all cylinders.
T-Mobile (TMUS)
Source: Shutterstock
Wireless internet provider T-Mobile (NASDAQ:TMUS) is the rare technology stock that is outperforming the broader market and is actually up on the year.
Since the first trading day this past January, TMUS stock has risen 26%. The share price appreciation comes as T-Mobile aggressively rolls out its fifth generation (5G) wireless networks across the U.S.
The company counted more than 110 million subscribers in the U.S. at the end of June this year, making it the second-largest wireless carrier in the country after Verizon (NYSE:VZ), which has 143 million wireless customers.
T-Mobile recently generated headlines around the world with its announcement that it is partnering with Elon Musk’s privately-held company SpaceX. The plan is to connect its 5G smartphones to satellite internet and eliminate mobile dead zones throughout the continental U.S.
Called the “Coverage Above and Beyond” plan, T-Mobile says its latest generation of smartphones will connect to satellites operated by SpaceX and provide connections of at least two to four Megabits per second across any coverage area in the U.S., including Hawaii, Alaska, and in territorial waters.
The company says customers will be able to text and send MMS messages anywhere there is a clear view of the sky.
Broadcom (AVGO)
Source: Sasima / Shutterstock.com
Broadcom (NASDAQ:AVGO) stock is essentially flat, but the share price has doubled in the last five years. Another reason for investors to like Broadcom is its 3.25% dividend yield, which is among the best quarterly payouts of any tech stock.
Broadcom first paid investors a quarterly dividend of $0.07 a share back in 2010. Since then, the company has grown its dividend payout 20% annually to its current level of $4.09 per share each quarter.
Broadcom has managed to grow its earnings this year despite facing numerous headwinds, and the company isn’t letting the current downturn stop it from growing.
At the end of May, Broadcom announced that it is acquiring enterprise software company VMware (NYSE:VMW) for $61 billion in cash and stock. VMware will help Broadcom diversify and further expand into the lucrative cloud computing arena.
The VMware deal follows a string of acquisitions by Broadcom, which has also included the purchase of CA Technologies in 2018 for $18.9 billion and the buying of Symantec in 2019 for $10.7 billion.
Alphabet (GOOGL)
Source: IgorGolovniov / Shutterstock.com
Alphabet (NASDAQ:GOOGL) stock has rarely been as affordable and cheap as it is following its 20-for-1 stock split in July.
Following the split, and with continued downward pressure, GOOGL stock is currently trading at $108.49 per share.
With a P/E ratio of 20, Alphabet looks like a solid long-term bet for investors interested in picking up best-of-breed technology stocks. Year-to-date, Alphabet stock has declined 25% and it may get cheaper yet if September proves once again that it is the worst month for the stock market.
Investors who have a long time horizon may find they are richly rewarded in the coming years from picking up Alphabet stock at current lows.
Alphabet is much more today than the Google search engine. The company has its hands in everything from artificial intelligence and cloud computing to self-driving cars and wearable tech. It’s latest push is in cybersecurity, having recently acquired two companies in the space: Mandiant and Siemplify.
Alphabet appears keen to move into the cloud security space where Microsoft is currently a dominant force. Alphabet has said it plans to integrate its new cybersecurity products and services into its Google Cloud Platform moving forward. The cybersecurity push is another example of how Alphabet is always looking to the future.
Salesforce (CRM)
Source: Bjorn Bakstad / Shutterstock.com
On paper, cloud computing giant Salesforce (NYSE:CRM) looks like a no-brainer when it comes to the best tech stocks to buy now.
The company just reported earnings that beat on the top and bottom lines, announced a $10 billion share repurchase program (the first in the company’s history), and it has successfully completed its $27 billion acquisition of messaging app Slack.
Yet, CRM stock is down 38%. The latest slump in the share price came after the company issued weak forward guidance alongside its most recent earnings.
Specifically, Salesforce forecast adjusted earnings of $1.20 to $1.21 a share on $7.82 billion to $7.83 billion in revenue for the current third quarter of 2022.
That fell short of the $1.29 in adjusted earnings per share on $8.07 billion in revenue that Wall Street had penciled in for the San Francisco-based company. The disappointing guidance completely overshadowed what was otherwise a stellar print from Salesforce.
For the second quarter, the company announced earnings of $1.19 a share compared to $1.02 that had been expected by analysts polled by Refinitiv. Revenues came in at $7.72 billion versus $7.69 billion that was expected on the Street. Strike while the stock price is low.
On the date of publication, Joel Baglole held long positions in AAPL, MSFT, GOOGL 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 Hot Tech Stocks to Buy in September 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 $158.76 AMD Advanced Micro Devices $84.19 MSFT Microsoft $262.96 TMUS T-Mobile $144.59 AVGO Broadcom $497.93 GOOGL Alphabet $110.09 CRM Salesforce $156.36 Apple (AAPL) Source: dennizn / Shutterstock.com Apple (NASDAQ:AAPL) was one of the top tech stocks to buy among hedge funds at the start of the summer. September is the perfect time for retail investors to also buy AAPL stock given that it represents the kick-off of the company’s new products leading into the year-end holiday shopping season. On the date of publication, Joel Baglole held long positions in AAPL, MSFT, GOOGL and NVDA.
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AAPL Apple $158.76 AMD Advanced Micro Devices $84.19 MSFT Microsoft $262.96 TMUS T-Mobile $144.59 AVGO Broadcom $497.93 GOOGL Alphabet $110.09 CRM Salesforce $156.36 Apple (AAPL) Source: dennizn / Shutterstock.com Apple (NASDAQ:AAPL) was one of the top tech stocks to buy among hedge funds at the start of the summer. September is the perfect time for retail investors to also buy AAPL stock given that it represents the kick-off of the company’s new products leading into the year-end holiday shopping season. On the date of publication, Joel Baglole held long positions in AAPL, MSFT, GOOGL and NVDA.
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AAPL Apple $158.76 AMD Advanced Micro Devices $84.19 MSFT Microsoft $262.96 TMUS T-Mobile $144.59 AVGO Broadcom $497.93 GOOGL Alphabet $110.09 CRM Salesforce $156.36 Apple (AAPL) Source: dennizn / Shutterstock.com Apple (NASDAQ:AAPL) was one of the top tech stocks to buy among hedge funds at the start of the summer. September is the perfect time for retail investors to also buy AAPL stock given that it represents the kick-off of the company’s new products leading into the year-end holiday shopping season. On the date of publication, Joel Baglole held long positions in AAPL, MSFT, GOOGL and NVDA.
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AAPL Apple $158.76 AMD Advanced Micro Devices $84.19 MSFT Microsoft $262.96 TMUS T-Mobile $144.59 AVGO Broadcom $497.93 GOOGL Alphabet $110.09 CRM Salesforce $156.36 Apple (AAPL) Source: dennizn / Shutterstock.com Apple (NASDAQ:AAPL) was one of the top tech stocks to buy among hedge funds at the start of the summer. September is the perfect time for retail investors to also buy AAPL stock given that it represents the kick-off of the company’s new products leading into the year-end holiday shopping season. On the date of publication, Joel Baglole held long positions in AAPL, MSFT, GOOGL and NVDA.
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19565.0
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2022-08-30 00:00:00 UTC
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US STOCKS-Wall Street falls as job openings data adds to rate hike jitters
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-falls-as-job-openings-data-adds-to-rate-hike-jitters
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nan
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By Devik Jain and Sruthi Shankar
Aug 30 (Reuters) - Wall Street's main indexes fell on Tuesday as a sharp rise in job openings added to worries about the Federal Reserve's aggressive approach to bring down inflation.
The benchmark S&P 500 index .SPX has slumped 4.6% since Fed Chair Jerome Powell last week reaffirmed the central bank's determination to raise interest rates despite a slowing economy.
Traders raised their bets on a third straight 75 basis points increase in September to 76.5% from 70% before the job openings data was released. FEDWATCH
Meanwhile, demand for labor showed no sign of cooling as data showed U.S. job openings rose to 11.239 million in July.
All eyes are now on the August non-farm payrolls data on Friday.
"Markets are so focused on Fed that a jobs number on Friday that's too strong will likely spook some folks. We really need Goldilocks here," said Jeff Buchbinder, chief equity strategist for LPL Financial.
"Stocks can go a little higher between now and the end of the year, but in the near-term we would expect quite a bit of choppiness as the market gathers more information on the outlook for the Fed and interest rates."
All S&P 500 sectors were trading in the red. The benchmark 10-year Treasury yield US10YT=RR erased early morning losses to trade higher at 3.11%. US/
Rate-sensitive megacap growth and technology stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O and Nvidia Corp NVDA.O, fell between 0.6% and 1.1%.
At 10:24 a.m. ET, the Dow Jones Industrial Average .DJI was down 184.94 points, or 0.58%, at 31,914.05, the S&P 500 .SPX was down 28.81 points, or 0.71%, at 4,001.80, and the Nasdaq Composite .IXIC was down 86.17 points, or 0.72%, at 11,931.50.
The CBOE Volatility index, also known as Wall Street's fear gauge, rose for the third straight session and was last trading at 26.41 points.
Adding to worries, Taiwan's military fired warning shots at a Chinese drone which buzzed an islet controlled by Taiwan near the Chinese coast.
Best Buy Co BBY.N rose 4.6% after it reported a smaller-than-expected drop in quarterly comparable sales as steep discounts helped soften the blow to electronics demand from rampant inflation.
Twitter Inc TWTR.N dipped 1% as Tesla Inc TSLA.O chief Elon Musk sent an additional notice to terminate the $44 billion deal to acquire the social media company.
Declining issues outnumbered advancers for a 2.55-to-1 ratio on the NYSE and for a 1.90-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week highs and 10 new lows, while the Nasdaq recorded six new highs and 102 new lows.
(Reporting by Bansari Mayur Kamdar, Sruthi Shankar and Devik Jain in Bengaluru; Editing by Saumyadeb Chakrabarty and Sriraj Kalluvila)
((BansariMayur.Kamdar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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US/ Rate-sensitive megacap growth and technology stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O and Nvidia Corp NVDA.O, fell between 0.6% and 1.1%. By Devik Jain and Sruthi Shankar Aug 30 (Reuters) - Wall Street's main indexes fell on Tuesday as a sharp rise in job openings added to worries about the Federal Reserve's aggressive approach to bring down inflation. The benchmark S&P 500 index .SPX has slumped 4.6% since Fed Chair Jerome Powell last week reaffirmed the central bank's determination to raise interest rates despite a slowing economy.
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US/ Rate-sensitive megacap growth and technology stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O and Nvidia Corp NVDA.O, fell between 0.6% and 1.1%. By Devik Jain and Sruthi Shankar Aug 30 (Reuters) - Wall Street's main indexes fell on Tuesday as a sharp rise in job openings added to worries about the Federal Reserve's aggressive approach to bring down inflation. FEDWATCH Meanwhile, demand for labor showed no sign of cooling as data showed U.S. job openings rose to 11.239 million in July.
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US/ Rate-sensitive megacap growth and technology stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O and Nvidia Corp NVDA.O, fell between 0.6% and 1.1%. By Devik Jain and Sruthi Shankar Aug 30 (Reuters) - Wall Street's main indexes fell on Tuesday as a sharp rise in job openings added to worries about the Federal Reserve's aggressive approach to bring down inflation. The CBOE Volatility index, also known as Wall Street's fear gauge, rose for the third straight session and was last trading at 26.41 points.
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US/ Rate-sensitive megacap growth and technology stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O and Nvidia Corp NVDA.O, fell between 0.6% and 1.1%. Traders raised their bets on a third straight 75 basis points increase in September to 76.5% from 70% before the job openings data was released. "Markets are so focused on Fed that a jobs number on Friday that's too strong will likely spook some folks.
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19566.0
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2022-08-30 00:00:00 UTC
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US STOCKS-Wall Street falls as job openings data adds to rate hike jitters
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-falls-as-job-openings-data-adds-to-rate-hike-jitters-0
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nan
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By Devik Jain and Sruthi Shankar
Aug 30 (Reuters) - Wall Street's main indexes fell for the third straight session on Tuesday as a sharp rise in job openings added to worries about the U.S. Federal Reserve's aggressive approach to bring down inflation.
The benchmark S&P 500 index .SPX has slumped 5% since Fed Chair Jerome Powell last week reaffirmed the central bank's determination to raise interest rates despite a slowing economy.
Labor demand showed no signs of cooling as U.S. job openings rose to 11.239 million in July, while a separate report showed consumer confidence rebounded strongly in August after three straight monthly declines.
All eyes are now on the August non-farm payrolls data on Friday.
"Normally, seeing companies wanting to hire more workers is a good thing ... more jobs is more reason for the Fed to raise rates," Bryce Doty, senior portfolio manager at Sit Investment Associates said in a note.
New York Fed President John Williams said on Tuesday he believes the central bank will raise its policy rate high enough to restrict growth and bring down inflation, and will then need to hold it there through the end of 2023.
Traders are pricing in a 70.5% chance of a third straight 75-basis point rate hike in September. FEDWATCH
All S&P 500 sectors were trading in the red, with the energy sector .SPNY down 3.8% as oil prices slid more than 5% on fuel demand woes. O/R
The benchmark 10-year Treasury yield US10YT=RR erased early morning losses to trade higher at 3.11%. US/
Rate-sensitive megacap growth and technology stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O and Nvidia Corp NVDA.O, fell between 1.0% and 2.5%.
At 12:28 p.m. ET, the Dow Jones Industrial Average .DJI was down 259.27 points, or 0.81%, at 31,839.72, the S&P 500 .SPX was down 40.44 points, or 1.00%, at 3,990.17, and the Nasdaq Composite .IXIC was down 145.73 points, or 1.21%, at 11,871.94.
Both the S&P 500 and the Nasdaq have broken below their 50-day moving average. The S&P 500 also briefly fell below the 50% Fibonacci retracement level, a key technical indicator watched by analysts, between August highs and mid-June lows.
The CBOE Volatility index, also known as Wall Street's fear gauge, rose for the third straight session and was last trading at 26.87 points.
"It is really a continued concern about how aggressive the Fed will be and whether what we're going through right now is simply a retest of the June low or are we headed for an even lower low," said Sam Stovall, chief investment strategist at CFRA in New York.
Adding to worries, Taiwan's military fired warning shots at a Chinese drone which buzzed an islet controlled by Taiwan near the Chinese coast.
Best Buy Co BBY.N rose 2.6% after it reported a smaller-than-expected drop in quarterly comparable sales as steep discounts helped soften the blow to electronics demand from rampant inflation.
Twitter Inc TWTR.N dipped 1.8% as Tesla Inc TSLA.O Chief Executive Elon Musk sent a fresh letter to scrap the deal to buy the social media company after whistleblower claims.
Declining issues outnumbered advancers for a 3.83-to-1 ratio on the NYSE and a 2.67-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week highs and 16 new lows, while the Nasdaq recorded 7 new highs and 168 new lows.
SPX technicalhttps://tmsnrt.rs/3TsV32x
(Reporting by Bansari Mayur Kamdar, Sruthi Shankar and Devik Jain in Bengaluru; Editing by Sriraj Kalluvila and Shounak Dasgupta)
((BansariMayur.Kamdar@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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US/ Rate-sensitive megacap growth and technology stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O and Nvidia Corp NVDA.O, fell between 1.0% and 2.5%. By Devik Jain and Sruthi Shankar Aug 30 (Reuters) - Wall Street's main indexes fell for the third straight session on Tuesday as a sharp rise in job openings added to worries about the U.S. Federal Reserve's aggressive approach to bring down inflation. "Normally, seeing companies wanting to hire more workers is a good thing ... more jobs is more reason for the Fed to raise rates," Bryce Doty, senior portfolio manager at Sit Investment Associates said in a note.
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US/ Rate-sensitive megacap growth and technology stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O and Nvidia Corp NVDA.O, fell between 1.0% and 2.5%. By Devik Jain and Sruthi Shankar Aug 30 (Reuters) - Wall Street's main indexes fell for the third straight session on Tuesday as a sharp rise in job openings added to worries about the U.S. Federal Reserve's aggressive approach to bring down inflation. New York Fed President John Williams said on Tuesday he believes the central bank will raise its policy rate high enough to restrict growth and bring down inflation, and will then need to hold it there through the end of 2023.
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US/ Rate-sensitive megacap growth and technology stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O and Nvidia Corp NVDA.O, fell between 1.0% and 2.5%. By Devik Jain and Sruthi Shankar Aug 30 (Reuters) - Wall Street's main indexes fell for the third straight session on Tuesday as a sharp rise in job openings added to worries about the U.S. Federal Reserve's aggressive approach to bring down inflation. Labor demand showed no signs of cooling as U.S. job openings rose to 11.239 million in July, while a separate report showed consumer confidence rebounded strongly in August after three straight monthly declines.
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US/ Rate-sensitive megacap growth and technology stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O and Nvidia Corp NVDA.O, fell between 1.0% and 2.5%. By Devik Jain and Sruthi Shankar Aug 30 (Reuters) - Wall Street's main indexes fell for the third straight session on Tuesday as a sharp rise in job openings added to worries about the U.S. Federal Reserve's aggressive approach to bring down inflation. ET, the Dow Jones Industrial Average .DJI was down 259.27 points, or 0.81%, at 31,839.72, the S&P 500 .SPX was down 40.44 points, or 1.00%, at 3,990.17, and the Nasdaq Composite .IXIC was down 145.73 points, or 1.21%, at 11,871.94.
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19567.0
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2022-08-30 00:00:00 UTC
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Truth Social Android app not approved on Google Play Store -Axios
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AAPL
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https://www.nasdaq.com/articles/truth-social-android-app-not-approved-on-google-play-store-axios
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nan
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nan
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By Helen Coster
Aug 30 (Reuters) - Former U.S. President Donald Trump's social media platform Truth Social has not yet been approved for distribution on Alphabet Inc's GOOGL.O Google Play Store due to insufficient content moderation, Axios reported on Tuesday, citing a Google spokesperson.
The delay marks a setback for the app, which launched in the Apple App Store on Feb. 21. Android phones comprise about 40% of the U.S. smartphone market. Without the Google and Apple stores, there is no easy way for most smartphone users to download Truth Social.
Google and Truth Social parent company Trump Media & Technology Group (TMTG) did not immediately respond to Reuters' requests for comment.
Truth Social restored Trump's presence on social media more than a year after he was banned from Twitter Inc TWTR.N, Facebook FB.O and Alphabet Inc's YouTube following the Jan. 6, 2021 U.S. Capitol riots, after he was accused of posting messages inciting violence.
TMTG has pledged to deliver an “engaging and censorship-free experience” on Truth Social, appealing to a base that feels its views around such hot-button topics in American life as vaccines and the outcome of the 2020 presidential election have been scrubbed from mainstream tech platforms.
TMTG is working with Hive, a San Francisco-based company that does AI-based content moderation, to flag sexually explicit content, hate speech, bullying and violent content on the app.
Human moderators decide what to do with the content Hive has flagged. While the scope of TMTG’s human moderation efforts is unclear, according to a posting on the TMTG website, the company is hiring a “community content administrator” whose job will include reviewing “user-posted content on Truth Social verifying it adheres to established community guidelines.”
TMTG is planning to go public via a merger with blank-check firm Digital World Acquisition Corp DWAC.O. The U.S. Department of Justice and the Securities and Exchange Commission are investigating the merger, according to DWAC filings.
(Reporting by Helen Coster in New York and Chavi Mehta in Bengaluru; Editing by Krishna Chandra Eluri)
((Chavi.Mehta@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Helen Coster Aug 30 (Reuters) - Former U.S. President Donald Trump's social media platform Truth Social has not yet been approved for distribution on Alphabet Inc's GOOGL.O Google Play Store due to insufficient content moderation, Axios reported on Tuesday, citing a Google spokesperson. Google and Truth Social parent company Trump Media & Technology Group (TMTG) did not immediately respond to Reuters' requests for comment. TMTG has pledged to deliver an “engaging and censorship-free experience” on Truth Social, appealing to a base that feels its views around such hot-button topics in American life as vaccines and the outcome of the 2020 presidential election have been scrubbed from mainstream tech platforms.
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By Helen Coster Aug 30 (Reuters) - Former U.S. President Donald Trump's social media platform Truth Social has not yet been approved for distribution on Alphabet Inc's GOOGL.O Google Play Store due to insufficient content moderation, Axios reported on Tuesday, citing a Google spokesperson. Google and Truth Social parent company Trump Media & Technology Group (TMTG) did not immediately respond to Reuters' requests for comment. Truth Social restored Trump's presence on social media more than a year after he was banned from Twitter Inc TWTR.N, Facebook FB.O and Alphabet Inc's YouTube following the Jan. 6, 2021 U.S. Capitol riots, after he was accused of posting messages inciting violence.
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By Helen Coster Aug 30 (Reuters) - Former U.S. President Donald Trump's social media platform Truth Social has not yet been approved for distribution on Alphabet Inc's GOOGL.O Google Play Store due to insufficient content moderation, Axios reported on Tuesday, citing a Google spokesperson. TMTG is working with Hive, a San Francisco-based company that does AI-based content moderation, to flag sexually explicit content, hate speech, bullying and violent content on the app. While the scope of TMTG’s human moderation efforts is unclear, according to a posting on the TMTG website, the company is hiring a “community content administrator” whose job will include reviewing “user-posted content on Truth Social verifying it adheres to established community guidelines.” TMTG is planning to go public via a merger with blank-check firm Digital World Acquisition Corp DWAC.O.
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By Helen Coster Aug 30 (Reuters) - Former U.S. President Donald Trump's social media platform Truth Social has not yet been approved for distribution on Alphabet Inc's GOOGL.O Google Play Store due to insufficient content moderation, Axios reported on Tuesday, citing a Google spokesperson. Without the Google and Apple stores, there is no easy way for most smartphone users to download Truth Social. TMTG is working with Hive, a San Francisco-based company that does AI-based content moderation, to flag sexually explicit content, hate speech, bullying and violent content on the app.
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19568.0
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2022-08-30 00:00:00 UTC
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How I'd Invest $20,000 Today If I Had to Start From Scratch
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AAPL
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https://www.nasdaq.com/articles/how-id-invest-%2420000-today-if-i-had-to-start-from-scratch-0
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If I handed you $20,000 to start a portfolio from scratch, how would you invest that money?
Investing is personal. Unsurprisingly, we would all take different approaches and strategies. You'd have to consider factors such as your personal financial situation, your investment time horizon, and your overall stomach for risk and volatility.
While I can't tell you how you should invest $20,000 today, here's how I would do it.
Image source: Getty Images.
Categorize your investment ideas
The sheer size of the stock market can be daunting. This means the first thing I'd do is divide my investment ideas into broad categories.
I would focus on four main areas:
Broad market funds
Proven winners
Consistent compounders
High-optionality companies
I'll extrapolate each of these categories, but keep in mind, as the manager of your own portfolio, you can focus on whatever areas you think offer the greatest risk-adjusted potential.
Broad market funds
Over the long term, the S&P 500 has delivered a return in excess of 10% (when dividends are reinvested). While I believe beating the market is possible, I would allocate a significant portion of my portfolio to the benchmark via a low-cost, market-tracking exchange-traded fund (ETF). This creates a solid foundation for my investments and provides instant diversification.
My personal favorite is the Vanguard 500 Index Fund ETF (NYSEMKT: VOO), which tracks the S&P 500 and has an expense ratio of just 0.03%.
Expense ratios are the fees you pay to own a fund, and they are one of the most important factors to consider when researching ETFs and mutual funds.
If investing today, I'd allocate 20% of the sum to a low-cost S&P 500 ETF.
Proven winners
There are some businesses that have been such consistent winners over the years, it's almost impossible not to include them in a diversified basket of stocks.
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are all examples of such companies.
Because these businesses have years and even decades of absolute dominance in their respective markets, there's not nearly as much research involved when picking them.
All of these companies have extremely strong balance sheets with very little debt. They are also growing their top lines by at least 15% and boast net profit margins of 20% or greater.
While the long-term upside is somewhat limited by their enormous market capitalizations, these companies offer a bedrock of healthy growth to the portfolio, with little long-term risk.
I'd allocate 7.5% of the $20,000 to each of these four tech behemoths.
Consistent compounders
Some of my favorite stocks are boring companies that just keep chugging along year after year. Look no further than Costco (NASDAQ: COST), McCormick (NYSE: MKC), Home Depot (NYSE: HD), Coca Cola (NYSE: KO), and Ball (NYSE: BALL).
These "boring" businesses all have:
Leadership in their industries
Wide moats in the form of strong brand recognition
They make products that their customers will likely buy regardless of the economic environment.
But what I really love about these stocks is they're compounding machines. Each has delivered a compound annual growth rate (CAGR) of at least 10% over the long term.
TICKER
CAGR OVER THE LAST 40 YEARS
COST
16%
MKC
13%
HD
23%
KO
12%
BALL
12%
Data source: Calculations by author.
While they might not be the most exciting businesses to own, you'll be glad you bought them after a few decades when the magic of compounding growth starts to kick in.
I'd allocate 6% of the lump sum to each of these high-quality compounders.
High-optionality companies
Finally, I'd invest 20% of the $20,000 evenly across five high-optionality growth stocks: MercadoLibre (NASDAQ: MELI), Duolingo (NASDAQ: DUO), The Trade Desk (NASDAQ: TTD), Axon Enterprises (NASDAQ: AXON), and KnowBe4 (NASDAQ: KNBE).
The investment firm NZS Capital defines optionality as "a large potential payoff resulting from a relatively small investment."
In other words, by investing a small amount into companies with a wide potential of outcomes, you can turn a small initial investment into outsized gains.
All five of these growth companies are using technology to disrupt massive addressable markets.
Because these firms are in hypergrowth mode, I'm less concerned with present-day profitability and more focused on cash flow. As such, I selected these five, in part, because they are all free cash-flow positive.
Bankruptcy is a large risk with young growth companies, but that risk is reduced significantly when the company is generating a surplus of cash like each of these five.
While high-growth businesses can be really exciting to own, it's important to limit your initial allocation, as they carry significantly higher risk than the stocks previously mentioned.
Dollar-cost average to hedge against a crash
If I were investing $20,000 today, here's how it would break down:
TICKER
WEIGHT
INVESTMENT
VOO
20%
$4,000
AAPL
7.5%
$1,500
NVDA
7.5%
$1,500
MSFT
7.5%
$1,500
GOOG
7.5%
$1,500
COST
6%
$1,200
MKC
6%
$1,200
HD
6%
$1,200
KO
6%
$1,200
BALL
6%
$1,200
MELI
4%
$800
DUO
4%
$800
TTD
4%
$800
AXON
4%
$800
KNBE
4%
$800
Total
100%
$20,000
To mitigate risk of another market crash, I would probably dollar-cost average into these positions, investing $5,000 each month for four months. That way, if the market crashes tomorrow, my cost basis for these positions will be much lower than if I'd invested the entire sum all at once.
Lastly, while the allocation to VOO gives this portfolio a high degree of diversification, over time I would add additional positions, with the goal of owning at least 25 individual stocks.
Your strategy might look different, but I believe the investments above provide a solid foundation to what will hopefully be a market-beating portfolio over the long term.
10 stocks we like better than Vanguard S&P 500 ETF
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They just revealed what they believe are the ten best stocks for investors to buy right now… and Vanguard S&P 500 ETF wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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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. Mark Blank has positions in KnowBe4, Inc., MercadoLibre, Nvidia, and The Trade Desk. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Axon Enterprise, Costco Wholesale, Home Depot, MercadoLibre, Microsoft, Nvidia, The Trade Desk, and Vanguard S&P 500 ETF. The Motley Fool recommends McCormick and recommends the following options: long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are all examples of such companies. These "boring" businesses all have: Leadership in their industries Wide moats in the form of strong brand recognition They make products that their customers will likely buy regardless of the economic environment. While high-growth businesses can be really exciting to own, it's important to limit your initial allocation, as they carry significantly higher risk than the stocks previously mentioned.
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Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are all examples of such companies. Look no further than Costco (NASDAQ: COST), McCormick (NYSE: MKC), Home Depot (NYSE: HD), Coca Cola (NYSE: KO), and Ball (NYSE: BALL). High-optionality companies Finally, I'd invest 20% of the $20,000 evenly across five high-optionality growth stocks: MercadoLibre (NASDAQ: MELI), Duolingo (NASDAQ: DUO), The Trade Desk (NASDAQ: TTD), Axon Enterprises (NASDAQ: AXON), and KnowBe4 (NASDAQ: KNBE).
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Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are all examples of such companies. I would focus on four main areas: Broad market funds Proven winners Consistent compounders High-optionality companies I'll extrapolate each of these categories, but keep in mind, as the manager of your own portfolio, you can focus on whatever areas you think offer the greatest risk-adjusted potential. High-optionality companies Finally, I'd invest 20% of the $20,000 evenly across five high-optionality growth stocks: MercadoLibre (NASDAQ: MELI), Duolingo (NASDAQ: DUO), The Trade Desk (NASDAQ: TTD), Axon Enterprises (NASDAQ: AXON), and KnowBe4 (NASDAQ: KNBE).
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Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are all examples of such companies. Your strategy might look different, but I believe the investments above provide a solid foundation to what will hopefully be a market-beating portfolio over the long term. That's right -- they think these 10 stocks are even better buys.
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19569.0
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2022-08-30 00:00:00 UTC
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Microsoft's Down 21%: Is Now the Best Time to Buy?
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AAPL
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https://www.nasdaq.com/articles/microsofts-down-21%3A-is-now-the-best-time-to-buy
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nan
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nan
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Microsoft's (NASDAQ: MSFT) stock is down over 21% year to date as the COVID-19 pandemic continues to have lingering effects on supply chains and reopenings slow consumer demand. The issues have similarly affected multiple tech stocks. And yet, Microsoft investors have reason to be particularly bullish about the company.
In January, the tech giant began acquiring video game company Activision Blizzard (NASDAQ: ATVI) for a record $68.7 billion. The deal is undergoing scrutiny from regulators worldwide, but encouraging words from Microsoft's CEO of gaming, Phil Spencer, suggest the purchase will go through. If that's the case, Microsoft stands to become one of the world's top three largest gaming companies, which could mean its stock is an absolute bargain at its current price.
A historic acquisition
On Aug. 24, Microsoft's gaming CEO, Phil Spencer, gave an update on the purchase of Activision in an interview with Bloomberg, saying, "I feel good about the progress that we've been making" with regulators. He added, "[T]he discussions we've been having seem positive." While Spencer didn't give more specifics on the deal's status, the transaction's colossal size has put it under an intense regulation process where Microsoft must obtain antitrust approval before it completes.
The almost $70 billion acquisition of Activision Blizzard is the first time a deal of this size has been attempted in the industry, inviting fierce scrutiny. Microsoft estimates the purchase will take up until the middle of 2023, but the company is optimistic it will go through. The first regulators to approve the deal came from Saudi Arabia on Aug. 22, suggesting Microsoft might hear from other regions -- particularly the U.S., the U.K., and Europe -- soon. These regions each have the power to either block the purchase or add stipulations.
While the process may seem arduous, trusted investors such as Warren Buffett have put their faith in the Microsoft-Activision Blizzard deal. In April, Buffett said his holdings company, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), owned 9.5% of the company's shares, betting the purchase would succeed. Then, in August, Berkshire increased its Activision shares from 64.3 million to 68.4 million, worth $5.3 billion.
The gaming industry is vast, with thousands of new titles released annually from an almost equal amount of developers. Microsoft's purchase of Activision Blizzard will grow its market share, but not enough to overtake competitors such as Tencent (OTC: TCEHY) and Sony (NYSE: SONY), making the deal likely to succeed.
Why should Microsoft buy Activision Blizzard?
In the fourth quarter of 2021, Microsoft ranked fourth among the world's biggest gaming companies by revenue with $3.9 billion, coming behind Tencent's $7.9 billion, Sony's $4.3 billion, and Apple's $4.4 billion. The Activision deal is anticipated to elevate Microsoft to the third-largest gaming company.
While Activision Blizzard is home to an extensive library of popular games, one franchise has mainly bolstered its price tag: Call of Duty, the second best-selling video game series in history. The multiplayer games had sold 400 million units by 2021, only second to Tetris with 496 million. In 2021, Activision president Daniel Alegre said in anearnings callthat the Call of Duty franchise had generated about $27 billion since 2003. Averaging out the total by year, Microsoft has the potential to earn an extra $1.4 billion a year from Call of Duty before considering multiple other popular franchises in Activision's game catalog.
Moreover, Activision's game library has the potential to substantially boost Microsoft's already successful game subscription service, Xbox Game Pass -- essentially, the Netflix for games. The service launched in 2017 and has since grown to 25 million members. While Microsoft did not provide updates on Game Pass subscription numbers in its most recent earnings report, outside projections estimate that the segment could generate $4 billion in revenue by the end of the 2022 calendar year. A title as popular as Call of Duty could further boost the service, even if Microsoft sticks to its plan of keeping it available across all consoles.
Microsoft launches its in-house games on release day on Xbox Game Pass, a feature that has attracted millions of members and made Xbox consoles one of the best-valued gaming machines on the market.
As Microsoft adds Activision titles to its already-extensive library, more gamers are likely to flock to Xbox for expansive access and solid value. Sony, meanwhile, recently announced that it would increase the price of the PlayStation 5 in multiple regions, drawing ire from gamers worldwide and contributing to Sony's latest slide in share price. The same day that Sony announced its Playstation price hike, Microsoft shared that the price of its Xbox Series X and S would remain the same.
Even today, Microsoft looks like a bargain
MSFT PE Ratio data by YCharts
While Microsoft's share price has tumbled since January, the company grew revenue by 18% across all segments in fiscal year 2022, suggesting that investors are misjudging the tech company's prospects. Microsoft's price-to-earnings (P/E) ratio has decreased over 26% in the past year and appears to be trending down, indicating that the company is a buy at its current price. Tech stocks may have fallen out of favor since the height of the pandemic, but with its current valuation, a booming cloud services business, and growing gaming aspirations, Microsoft looks like a winner that's trading at a discount.
10 stocks we like better than Microsoft
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Microsoft wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 17, 2022
Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Berkshire Hathaway (B shares), Microsoft, Netflix, and Tencent Holdings. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While Spencer didn't give more specifics on the deal's status, the transaction's colossal size has put it under an intense regulation process where Microsoft must obtain antitrust approval before it completes. While Microsoft did not provide updates on Game Pass subscription numbers in its most recent earnings report, outside projections estimate that the segment could generate $4 billion in revenue by the end of the 2022 calendar year. Tech stocks may have fallen out of favor since the height of the pandemic, but with its current valuation, a booming cloud services business, and growing gaming aspirations, Microsoft looks like a winner that's trading at a discount.
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Moreover, Activision's game library has the potential to substantially boost Microsoft's already successful game subscription service, Xbox Game Pass -- essentially, the Netflix for games. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Berkshire Hathaway (B shares), Microsoft, Netflix, and Tencent Holdings. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple.
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Moreover, Activision's game library has the potential to substantially boost Microsoft's already successful game subscription service, Xbox Game Pass -- essentially, the Netflix for games. Even today, Microsoft looks like a bargain MSFT PE Ratio data by YCharts While Microsoft's share price has tumbled since January, the company grew revenue by 18% across all segments in fiscal year 2022, suggesting that investors are misjudging the tech company's prospects. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple.
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Moreover, Activision's game library has the potential to substantially boost Microsoft's already successful game subscription service, Xbox Game Pass -- essentially, the Netflix for games. See the 10 stocks *Stock Advisor returns as of August 17, 2022 Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Berkshire Hathaway (B shares), Microsoft, Netflix, and Tencent Holdings.
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19570.0
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2022-08-30 00:00:00 UTC
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Implied MTUM Analyst Target Price: $159
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AAPL
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https://www.nasdaq.com/articles/implied-mtum-analyst-target-price%3A-%24159
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nan
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the iShares MSCI USA Momentum Factor ETF (Symbol: MTUM), we found that the implied analyst target price for the ETF based upon its underlying holdings is $159.07 per unit.
With MTUM trading at a recent price near $144.17 per unit, that means that analysts see 10.33% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of MTUM's underlying holdings with notable upside to their analyst target prices are Apple Inc (Symbol: AAPL), Alcoa Corporation (Symbol: AA), and Regeneron Pharmaceuticals, Inc. (Symbol: REGN). Although AAPL has traded at a recent price of $161.38/share, the average analyst target is 13.22% higher at $182.72/share. Similarly, AA has 12.79% upside from the recent share price of $55.50 if the average analyst target price of $62.60/share is reached, and analysts on average are expecting REGN to reach a target price of $667.50/share, which is 12.61% above the recent price of $592.77. Below is a twelve month price history chart comparing the stock performance of AAPL, AA, and REGN:
Combined, AAPL, AA, and REGN represent 6.46% of the iShares MSCI USA Momentum Factor ETF. Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
iShares MSCI USA Momentum Factor ETF MTUM $144.17 $159.07 10.33%
Apple Inc AAPL $161.38 $182.72 13.22%
Alcoa Corporation AA $55.50 $62.60 12.79%
Regeneron Pharmaceuticals, Inc. REGN $592.77 $667.50 12.61%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is a twelve month price history chart comparing the stock performance of AAPL, AA, and REGN: Combined, AAPL, AA, and REGN represent 6.46% of the iShares MSCI USA Momentum Factor ETF. iShares MSCI USA Momentum Factor ETF MTUM $144.17 $159.07 10.33% Apple Inc AAPL $161.38 $182.72 13.22% Alcoa Corporation AA $55.50 $62.60 12.79% Regeneron Pharmaceuticals, Inc. REGN $592.77 $667.50 12.61% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of MTUM's underlying holdings with notable upside to their analyst target prices are Apple Inc (Symbol: AAPL), Alcoa Corporation (Symbol: AA), and Regeneron Pharmaceuticals, Inc. (Symbol: REGN).
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Three of MTUM's underlying holdings with notable upside to their analyst target prices are Apple Inc (Symbol: AAPL), Alcoa Corporation (Symbol: AA), and Regeneron Pharmaceuticals, Inc. (Symbol: REGN). Below is a twelve month price history chart comparing the stock performance of AAPL, AA, and REGN: Combined, AAPL, AA, and REGN represent 6.46% of the iShares MSCI USA Momentum Factor ETF. iShares MSCI USA Momentum Factor ETF MTUM $144.17 $159.07 10.33% Apple Inc AAPL $161.38 $182.72 13.22% Alcoa Corporation AA $55.50 $62.60 12.79% Regeneron Pharmaceuticals, Inc. REGN $592.77 $667.50 12.61% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Three of MTUM's underlying holdings with notable upside to their analyst target prices are Apple Inc (Symbol: AAPL), Alcoa Corporation (Symbol: AA), and Regeneron Pharmaceuticals, Inc. (Symbol: REGN). Although AAPL has traded at a recent price of $161.38/share, the average analyst target is 13.22% higher at $182.72/share. Below is a twelve month price history chart comparing the stock performance of AAPL, AA, and REGN: Combined, AAPL, AA, and REGN represent 6.46% of the iShares MSCI USA Momentum Factor ETF.
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Although AAPL has traded at a recent price of $161.38/share, the average analyst target is 13.22% higher at $182.72/share. Three of MTUM's underlying holdings with notable upside to their analyst target prices are Apple Inc (Symbol: AAPL), Alcoa Corporation (Symbol: AA), and Regeneron Pharmaceuticals, Inc. (Symbol: REGN). Below is a twelve month price history chart comparing the stock performance of AAPL, AA, and REGN: Combined, AAPL, AA, and REGN represent 6.46% of the iShares MSCI USA Momentum Factor ETF.
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19571.0
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2022-08-30 00:00:00 UTC
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The Best Kinds of Investments During Times of Uncertainty
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AAPL
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https://www.nasdaq.com/articles/the-best-kinds-of-investments-during-times-of-uncertainty
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There are no guarantees in the stock market, but there are investments that have stood the test of time and have proven to hold up better than others during times of uncertainty. If you're looking for some sense of "stability" during these times, look no further than these stocks every portfolio should include.
Blue-chip stocks
Although there's no one definition for what a blue-chip stock is, it's generally accepted that they are well-established, cash-cow companies that are leaders in their industry and household names.
Companies such as Starbucks, Microsoft, and McDonald's would be considered blue-chip stocks, for example. Starbucks and coffee are becoming synonymous, Microsoft could be considered the original tech powerhouse, and McDonald's is as recognizable of a brand as any company in history.
Image source: Getty Images.
To even receive the title of a blue-chip stock, a company's track record must be top of the line. This doesn't mean everything is always peachy keen with the business, but it does mean they have the financial resources and brand to weather almost any bad economic storm. This is important during times of uncertainty because the long-term stability (relative to smaller, lesser-known companies) that can come with blue-chip stocks is hard to duplicate.
You don't want your whole portfolio to be blue-chip stocks, but they should definitely be a staple. For companies to become blue stocks, they had to go through a lot of growth, and as an investor, there's a lot of money to be made in this growth. If your portfolio is all blue chip stocks, you won't hold any younger companies with hypergrowth potential. Companies like Apple (NASDAQ: AAPL) and Tesla (NASDAQ: TSLA) had to start somewhere -- and they've made a lot of people rich along their journey so far.
Large-cap companies
There is a risk/reward trade-off with investing. Stocks are riskier than bonds, but have virtually unlimited earning potential. Within stocks themselves, there is also a risk/reward trade-off based on company size. Smaller companies have much more room for growth in their business, which generally means there's more room for growth in their stock price. However, with this growth potential comes higher risk because smaller companies have fewer resources.
Large-cap companies, defined as companies with a market cap of at least $10 billion, may not have as much room for hypergrowth in their business, but due to their size, they often have way more resources to keep the business afloat despite broader economic conditions.
This is important for long-term investors because rough periods in the stock market are inevitable, and you want to feel comfortable treating them as an afterthought because you believe in a stock's long-term potential.
The stability of large-cap stocks is why people tend to gravitate toward them during bear markets when prices are dropping.
You can't go wrong with funds
The good thing about blue-chip stocks and other large-cap companies is that you can invest in them using exchange-traded funds (ETFs), which can help spread out some risks.
Many ETFs are available that focus specifically on large-cap companies, with one of the most popular being the Vanguard S&P 500 ETF (NYSEMKT: VOO). The S&P 500 is an index that tracks 500 of the largest public U.S. companies. S&P 500 index funds are very low-cost, have lots of diversification, and have provided respectable long-term returns (roughly 10% annually). You can also find your fair share of ETFs that only contain blue-chip stocks, but the funds are usually put together by professional investors, so they tend to be on the more expensive side.
You also want to be sure you don't abandon the small players altogether during periods of uncertainty. The Russell 2000 is considered the go-to benchmark for small-cap stocks, and although it usually underperforms the S&P 500 during bear markets, it tends to outperform it in the early stages of a bull market, making down periods a good time to scoop these stocks for a "discount."
You may not want to take on the risk that comes with investing in individual small-cap or mid-cap companies, but investing in a well-diversified ETF containing those companies is still a good move. You always want to give yourself a chance for the growth potential that comes with smaller companies.
10 stocks we like better than Walmart
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Stefon Walters has positions in McDonald's and Microsoft. The Motley Fool has positions in and recommends Microsoft, Starbucks, and Tesla. The Motley Fool recommends the following options: 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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Companies like Apple (NASDAQ: AAPL) and Tesla (NASDAQ: TSLA) had to start somewhere -- and they've made a lot of people rich along their journey so far. Starbucks and coffee are becoming synonymous, Microsoft could be considered the original tech powerhouse, and McDonald's is as recognizable of a brand as any company in history. This is important during times of uncertainty because the long-term stability (relative to smaller, lesser-known companies) that can come with blue-chip stocks is hard to duplicate.
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Companies like Apple (NASDAQ: AAPL) and Tesla (NASDAQ: TSLA) had to start somewhere -- and they've made a lot of people rich along their journey so far. Smaller companies have much more room for growth in their business, which generally means there's more room for growth in their stock price. This is important for long-term investors because rough periods in the stock market are inevitable, and you want to feel comfortable treating them as an afterthought because you believe in a stock's long-term potential.
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Companies like Apple (NASDAQ: AAPL) and Tesla (NASDAQ: TSLA) had to start somewhere -- and they've made a lot of people rich along their journey so far. Blue-chip stocks Although there's no one definition for what a blue-chip stock is, it's generally accepted that they are well-established, cash-cow companies that are leaders in their industry and household names. This is important for long-term investors because rough periods in the stock market are inevitable, and you want to feel comfortable treating them as an afterthought because you believe in a stock's long-term potential.
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Companies like Apple (NASDAQ: AAPL) and Tesla (NASDAQ: TSLA) had to start somewhere -- and they've made a lot of people rich along their journey so far. Companies such as Starbucks, Microsoft, and McDonald's would be considered blue-chip stocks, for example. Large-cap companies There is a risk/reward trade-off with investing.
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19572.0
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2022-08-30 00:00:00 UTC
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3 Reasons This Big Tech Stock Is No. 1 on My Buy List
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AAPL
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https://www.nasdaq.com/articles/3-reasons-this-big-tech-stock-is-no.-1-on-my-buy-list
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nan
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nan
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Where to turn in a scary market
With the Nasdaq Composite down more than 20% so far this year and the stock market's violent reaction to Fed Chair Jerome Powell's speech on Friday, it might be tempting to sell stocks. But study after study has shown timing the market doesn't work.
That's why factors like a dominant market position, a reasonable valuation, or a shareholder-friendly management team can provide the confidence to hold on during a downturn. Only a select few companies offer all three attributes. That's why Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) will be the next stock I add to my portfolio.
Image source: Getty Images.
1. When a brand becomes synonymous with the product
Pass a Kleenex. Xerox the report. Put a Band-Aid on it. You know a brand is dominant when consumers are using its name in place of the actual product. Googling something might be the best example of this phenomenon. Definitive numbers aren't made public. But it is estimated that more than 63,000 searches per second -- about 5.6 trillion per year -- are conducted through the Google search engine. Statista pegs itsglobal marketshare at around 84%. That is absolute dominance.
Of course, it is just one arrow in the company's quiver for gathering data to serve up targeted advertisements. It has nine products that command more than one billion users. Searches made up 57% of the $182 billion in 2021's revenue. Advertising overall -- through products like YouTube, Gmail, Google Maps, and its app store Google Play -- accounted for 80%.
Skeptics worry about legislation that could hamper the company's stronghold. But the most recent attempt, the American Innovation and Choice Online Act, appears to have missed its window in Congress. With mid-term elections approaching, it's unclear when that window might reopen. For now, the company appears safe from additional regulation.
2. Eventually, valuation matters
It's not clear who first said, "Valuation doesn't matter...until it does," but they should be taking a victory lap. After years of historically high valuations and a stimulus-fueled crescendo, most stocks are now trading at multiples of sales, cash flow, and earnings that are more in line with historical norms. As we entered 2021, the S&P 500 traded at a price-to-earnings (PE) ratio of 36. In the past 30 years, that ratio has typically been between 15 and 25.
Since 2014, Alphabet's market capitalization as a multiple of sales and cash flow has stayed in a fairly well-defined range. That's likely due to its size and consistent growth. If financial performance is predictable, any changes in valuation tend to reflect market sentiment overall. Right now, sentiment is clearly negative. Excluding the brief collapse at the beginning of the pandemic, the stock trades near the bottom of both ranges.
GOOGL Price to CFO Per Share (TTM) data by YCharts.
Of course, revenue and cash flow could drop if there is a recession. But based on the recent past, the current price is a good one. Besides, the company performed well during the last two recessions. Revenue was essentially flat in the second quarter of 2020, and it actually grew from 2008 to 2009.
A shifting capital allocation strategy
One of the reasons Wall Street loves a predictable, highly profitable business is because eventually much of that cash comes back to shareholders. Alphabet has been sending clear signals for a few years that it recognized this. And it is upping the amount.
In April, management announced a $70 billion stock-buyback program. That came after a $50 billion authorization in 2021 and a $25 billion authorization in 2019. Last year, it repurchased more stock than any other public company except Apple. It's welcome news for investors and another reason to hold shares despite the economic uncertainty.
GOOGL Shares Outstanding data by YCharts
Adding it all up
The stock market can be scary at times. That's why it's important to dedicate some of your portfolio to high-quality companies. They may not be as exciting. But it reduces volatility and quiets the internal voice that says to sell when the markets slide.
An old stock market adage is "No one rings a bell at the top." Unfortunately, they don't ring it at the bottom either. Successful investors take advantage of opportunities when they are presented even if there might be more pain ahead. Google's strength looks intact for at least the next few years. It's why I'll be adding it to my portfolio as soon as trading rules allow.
10 stocks we like better than Alphabet (A shares)
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Alphabet (A shares) wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Jason Hawthorne has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That's why factors like a dominant market position, a reasonable valuation, or a shareholder-friendly management team can provide the confidence to hold on during a downturn. A shifting capital allocation strategy One of the reasons Wall Street loves a predictable, highly profitable business is because eventually much of that cash comes back to shareholders. GOOGL Shares Outstanding data by YCharts Adding it all up The stock market can be scary at times.
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That's why factors like a dominant market position, a reasonable valuation, or a shareholder-friendly management team can provide the confidence to hold on during a downturn. Since 2014, Alphabet's market capitalization as a multiple of sales and cash flow has stayed in a fairly well-defined range. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), and Apple.
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Where to turn in a scary market With the Nasdaq Composite down more than 20% so far this year and the stock market's violent reaction to Fed Chair Jerome Powell's speech on Friday, it might be tempting to sell stocks. GOOGL Shares Outstanding data by YCharts Adding it all up The stock market can be scary at times. 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.
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Besides, the company performed well during the last two recessions. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Alphabet (A shares) wasn't one of them! The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), and Apple.
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19573.0
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2022-08-30 00:00:00 UTC
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Should iShares S&P 500 Growth ETF (IVW) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-ishares-sp-500-growth-etf-ivw-be-on-your-investing-radar-3
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Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the iShares S&P 500 Growth ETF (IVW) is a passively managed exchange traded fund launched on 05/22/2000.
The fund is sponsored by Blackrock. It has amassed assets over $30.67 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 typically 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.
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. 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
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 0.18%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.67%.
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 47.80% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.59% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 52.91% of total assets under management.
Performance and Risk
IVW 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 of the U.S. equity market.
The ETF has lost about -21.93% so far this year and is down about -15.21% in the last one year (as of 08/30/2022). In the past 52-week period, it has traded between $58.13 and $84.81.
The ETF has a beta of 1.06 and standard deviation of 26.68% for the trailing three-year period, making it a medium risk choice in the space. With about 244 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares 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, IVW 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 $74.57 billion in assets, Invesco QQQ has $169.27 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.
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iShares S&P 500 Growth ETF (IVW): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.59% 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 $30.67 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 13.59% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the iShares S&P 500 Growth ETF (IVW) is a passively managed exchange traded fund launched on 05/22/2000.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.59% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the iShares S&P 500 Growth ETF (IVW) is a passively managed exchange traded fund launched on 05/22/2000.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.59% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
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19574.0
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2022-08-30 00:00:00 UTC
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Here’s Why These Wall Street Analysts Are Recommending Apple (NASDAQ:AAPL) Stock
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AAPL
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https://www.nasdaq.com/articles/heres-why-these-wall-street-analysts-are-recommending-apple-nasdaq%3Aaapl-stock
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nan
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Ahead of the highly anticipated launch of the iPhone 14 on September 7, three Wall Street analysts reiterated a Buy rating on Apple Inc. (NASDAQ:AAPL) on August 29. This shows that the Street is impressed with CEO Tim Cook’s endeavor in achieving the target launch date despite supply chain issues and COVID-19-related shutdowns. The analysts who have recently reiterated a Buy rating on Apple stock are David Vogt of UBS (NYSE:UBS), Samik Chatterjee of J.P. Morgan (NYSE:JPM), and Daniel Ives of Wedbush.
While Vogt did not provide a price target, Chatterjee has furnished a price target of $200 (24% upside potential) on AAPL stock. Further, with a price forecast of $220, Ives sees a 36.3% upside for the stock.
Commenting on the iPhone 14 launch, which is expected next week, Ives said that the tech giant already has an initial order of 90 million units, which speaks volumes about the strong underlying demand for iPhones, as of the one billion iPhone users across the world, 240 million “have not upgraded their phones in over 3.5 years.”
Ives expects the base model’s price to remain unchanged, while the iPhone 14 Pro and Pro Max are likely to cost $100 more. Specification-wise, the new model will feature a 48-megapixel camera, A16 chip, and enhanced storage.
Further, the California-based company plans to launch an upgraded version of the iPhone 14 over the next six to nine months and expects a minimum demand of 220 million units in the next fiscal year, according to the Wedbush analyst.
Meanwhile, Ives anticipates Apple's services business to total around $90 billion in the Fiscal Year 2023 and surpass $100 billion in the Fiscal Year 2024. “On a growth and EBITDA basis, we believe Apple's services business is worth alone north of $1 trillion which coupled with the flagship hardware business makes the risk/reward very compelling at current levels,” the analyst added.
Is Apple Stock a Buy or Sell?
On TipRanks, Apple stock has a Strong Buy consensus rating based on 22 Buys, four Holds, and one Sell. AAPL’s average stock forecast of $183.12 implies 13.5% upside potential.
Further, Apple stock scores a “Perfect 10” on TipRanks’ Smart Score rating system, suggesting that it has strong potential to outperform market expectations. Hedge funds and bloggers are also positive about the stock. TipRanks data shows that 86% of bloggers are Bullish on AAPL stock, compared to the sector average of 65%, and hedge funds have increased their stakes in the company by 11.4 million shares in the last quarter.
Read full Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Ahead of the highly anticipated launch of the iPhone 14 on September 7, three Wall Street analysts reiterated a Buy rating on Apple Inc. (NASDAQ:AAPL) on August 29. TipRanks data shows that 86% of bloggers are Bullish on AAPL stock, compared to the sector average of 65%, and hedge funds have increased their stakes in the company by 11.4 million shares in the last quarter. While Vogt did not provide a price target, Chatterjee has furnished a price target of $200 (24% upside potential) on AAPL stock.
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Ahead of the highly anticipated launch of the iPhone 14 on September 7, three Wall Street analysts reiterated a Buy rating on Apple Inc. (NASDAQ:AAPL) on August 29. While Vogt did not provide a price target, Chatterjee has furnished a price target of $200 (24% upside potential) on AAPL stock. AAPL’s average stock forecast of $183.12 implies 13.5% upside potential.
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Ahead of the highly anticipated launch of the iPhone 14 on September 7, three Wall Street analysts reiterated a Buy rating on Apple Inc. (NASDAQ:AAPL) on August 29. While Vogt did not provide a price target, Chatterjee has furnished a price target of $200 (24% upside potential) on AAPL stock. AAPL’s average stock forecast of $183.12 implies 13.5% upside potential.
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Ahead of the highly anticipated launch of the iPhone 14 on September 7, three Wall Street analysts reiterated a Buy rating on Apple Inc. (NASDAQ:AAPL) on August 29. While Vogt did not provide a price target, Chatterjee has furnished a price target of $200 (24% upside potential) on AAPL stock. AAPL’s average stock forecast of $183.12 implies 13.5% upside potential.
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19575.0
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2022-08-30 00:00:00 UTC
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Best Buy says pricey smartphone sales holding strong ahead of next iPhone launch
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AAPL
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https://www.nasdaq.com/articles/best-buy-says-pricey-smartphone-sales-holding-strong-ahead-of-next-iphone-launch
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nan
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nan
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Aug 30 (Reuters) - Consumers stung by decades-high inflation are not shifting to cheaper smartphones, Best Buy Co Inc BBY.N said on Tuesday, boding well for Apple Inc's AAPL.O upcoming iPhones likely to be unveiled next week.
The comments from the largest U.S. consumer electronics retailer come at a time when the soaring prices of gas and groceries have prompted a cutback in non-essential spending.
Best Buy Chief Executive Officer Corie Barry said consumers were switching to cheaper alternatives in categories such as televisions, but demand for expensive smartphones was holding strong.
"There are other categories like mobile phones where it is not as much a decision between trading up or trading down. You want a certain brand and you want a certain type of phone," Barry said.
Analysts at J.P. Morgan last week raised concerns around the enthusiasm for the new iPhones, citing consumer expectations of a price hike and limited new features.
Best Buy also said on Tuesday that cost-conscious shoppers might delay holiday season shopping to the last minute this year in search of the best deals.
Apple sends invites for Sept 7 event, analysts expect new iPhones
Last-minute Christmas shopping may back be in vogue this year, says Best Buy
(Reporting by Uday Sampath and Mehr Bedi in Bengaluru; Editing by Aditya Soni)
((UdaySampath.Kumar@thomsonreuters.com; Twitter: https://twitter.com/sampath_uday ;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aug 30 (Reuters) - Consumers stung by decades-high inflation are not shifting to cheaper smartphones, Best Buy Co Inc BBY.N said on Tuesday, boding well for Apple Inc's AAPL.O upcoming iPhones likely to be unveiled next week. Best Buy Chief Executive Officer Corie Barry said consumers were switching to cheaper alternatives in categories such as televisions, but demand for expensive smartphones was holding strong. Apple sends invites for Sept 7 event, analysts expect new iPhones Last-minute Christmas shopping may back be in vogue this year, says Best Buy (Reporting by Uday Sampath and Mehr Bedi in Bengaluru; Editing by Aditya Soni) ((UdaySampath.Kumar@thomsonreuters.com; Twitter: https://twitter.com/sampath_uday ;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aug 30 (Reuters) - Consumers stung by decades-high inflation are not shifting to cheaper smartphones, Best Buy Co Inc BBY.N said on Tuesday, boding well for Apple Inc's AAPL.O upcoming iPhones likely to be unveiled next week. Analysts at J.P. Morgan last week raised concerns around the enthusiasm for the new iPhones, citing consumer expectations of a price hike and limited new features. Apple sends invites for Sept 7 event, analysts expect new iPhones Last-minute Christmas shopping may back be in vogue this year, says Best Buy (Reporting by Uday Sampath and Mehr Bedi in Bengaluru; Editing by Aditya Soni) ((UdaySampath.Kumar@thomsonreuters.com; Twitter: https://twitter.com/sampath_uday ;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aug 30 (Reuters) - Consumers stung by decades-high inflation are not shifting to cheaper smartphones, Best Buy Co Inc BBY.N said on Tuesday, boding well for Apple Inc's AAPL.O upcoming iPhones likely to be unveiled next week. Best Buy Chief Executive Officer Corie Barry said consumers were switching to cheaper alternatives in categories such as televisions, but demand for expensive smartphones was holding strong. Apple sends invites for Sept 7 event, analysts expect new iPhones Last-minute Christmas shopping may back be in vogue this year, says Best Buy (Reporting by Uday Sampath and Mehr Bedi in Bengaluru; Editing by Aditya Soni) ((UdaySampath.Kumar@thomsonreuters.com; Twitter: https://twitter.com/sampath_uday ;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aug 30 (Reuters) - Consumers stung by decades-high inflation are not shifting to cheaper smartphones, Best Buy Co Inc BBY.N said on Tuesday, boding well for Apple Inc's AAPL.O upcoming iPhones likely to be unveiled next week. The comments from the largest U.S. consumer electronics retailer come at a time when the soaring prices of gas and groceries have prompted a cutback in non-essential spending. Best Buy Chief Executive Officer Corie Barry said consumers were switching to cheaper alternatives in categories such as televisions, but demand for expensive smartphones was holding strong.
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19576.0
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2022-08-29 00:00:00 UTC
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After Hours Most Active for Aug 29, 2022 : NEM, AAPL, INFN, PDD, MMM, HAL, TAL, CMCSA, KHC, AMZN, CLVT, SWN
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-aug-29-2022-%3A-nem-aapl-infn-pdd-mmm-hal-tal-cmcsa-khc-amzn
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -4.43 to 12,479.89. The total After hours volume is currently 69,027,394 shares traded.
The following are the most active stocks for the after hours session:
Newmont Corporation (NEM) is +0.0199 at $42.83, with 4,114,012 shares traded., following a 52-week high recorded in today's regular session.
Apple Inc. (AAPL) is -0.25 at $161.13, with 3,570,215 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $1.34. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Infinera Corporation (INFN) is unchanged at $5.68, with 3,036,171 shares traded. INFN's current last sale is 75.73% of the target price of $7.5.
Pinduoduo Inc. (PDD) is -0.18 at $65.86, with 2,603,888 shares traded. As reported by Zacks, the current mean recommendation for PDD is in the "buy range".
3M Company (MMM) is unchanged at $126.44, with 2,394,273 shares traded. MMM's current last sale is 87.5% of the target price of $144.5.
Halliburton Company (HAL) is unchanged at $31.90, with 2,262,271 shares traded. As reported by Zacks, the current mean recommendation for HAL is in the "buy range".
TAL Education Group (TAL) is -0.04 at $6.53, with 2,021,176 shares traded., following a 52-week high recorded in today's regular session.
Comcast Corporation (CMCSA) is unchanged at $36.29, with 1,977,539 shares traded., following a 52-week high recorded in today's regular session.
The Kraft Heinz Company (KHC) is -0.02 at $38.07, with 1,889,943 shares traded. KHC's current last sale is 90.64% of the target price of $42.
Amazon.com, Inc. (AMZN) is -0.06 at $129.73, with 1,834,593 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2022. The consensus EPS forecast is $0.26. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Clarivate Plc (CLVT) is unchanged at $11.99, with 1,683,594 shares traded. As reported by Zacks, the current mean recommendation for CLVT is in the "buy range".
Southwestern Energy Company (SWN) is +0.01 at $7.54, with 1,582,052 shares traded. SWN's current last sale is 81.51% of the target price of $9.25.
The views and 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 -0.25 at $161.13, with 3,570,215 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Newmont Corporation (NEM) is +0.0199 at $42.83, with 4,114,012 shares traded., following a 52-week high recorded in today's regular session.
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Apple Inc. (AAPL) is -0.25 at $161.13, with 3,570,215 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Newmont Corporation (NEM) is +0.0199 at $42.83, with 4,114,012 shares traded., following a 52-week high recorded in today's regular session.
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Apple Inc. (AAPL) is -0.25 at $161.13, with 3,570,215 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Infinera Corporation (INFN) is unchanged at $5.68, with 3,036,171 shares traded.
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Apple Inc. (AAPL) is -0.25 at $161.13, with 3,570,215 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". 3M Company (MMM) is unchanged at $126.44, with 2,394,273 shares traded.
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19577.0
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2022-08-29 00:00:00 UTC
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US STOCKS-Wall Street hits fresh one-month lows on rate hike worries
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-hits-fresh-one-month-lows-on-rate-hike-worries
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nan
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nan
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By Devik Jain and Anisha Sircar
Aug 29 (Reuters) - U.S. stock indexes hit fresh one-month lows on Monday, adding to a sharp selloff last week as investors worried about the Federal Reserve's plan to keep raising interest rates in its fight against inflation even at the cost of an economic slowdown.
Fed Chair Jerome Powell said on Friday the U.S. economy would need tight monetary policy "for some time" before inflation is under control, quashing hopes of more modest rate hikes after recent data suggested price pressures were peaking.
"Markets probably got a little bit too interpretive, between the meetings, of something that was not there - that we were closer to a pause and potentially a cut (in interest rates)," said Mike Mussio, president at FBB Capital Partners in Bethesda, Maryland.
"I expect volatility to be elevated in the near term, certainly between now and when Fed meets in September. The market is probably going to move on any data between here and there that they think could nudge another 75-basis-point increase."
Money market traders are pricing in a 70.5% chance of a third straight 75-basis-point interest rate hike next month and expect the Fed funds rate to end the year near 3.7%. FEDWATCH
Among a bunch of economic reports due this week, focus is on the August nonfarm payrolls report on Friday because any cooldown in the jobs market could ease the pressure on the Fed to raise rates aggressively.
Among the biggest drags on Monday, heavyweight technology and growth stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O fell between 1.4% and 2.4% due to a rise in Treasury yields. US/
The two-year Treasury yield US2YT=RR, which is particularly sensitive to interest rate expectations, briefly scaled a 15-year high, while the closely watched yield curve measured by the gap between two and 10-year yields US2US10=TWEB remained strongly inverted. US/
An inversion is seen by many as a reliable signal of an impending recession.
At 11:43 a.m. ET, the Dow Jones Industrial Average .DJI was down 191.47 points, or 0.59%, at 32,091.93, the S&P 500 .SPX was down 29.32 points, or 0.72%, at 4,028.34, and the Nasdaq Composite .IXIC was down 145.16 points, or 1.20%, at 11,996.56. The indexes were at their lowest levels since July 28.
The CBOE's volatility index .VIX, Wall Street's fear gauge, hit a seven-week high of 26.29 points.
The benchmark S&P 500 index has climbed 11% since mid-June and recently found support above its 50-day moving average. Still, some investors fear a tough September due to seasonal weakness and the potential economic pain from rate hikes.
UBS Global Wealth Management's chief investment officer told the Reuters Global Markets Forum that he expects the S&P 500 to end 2022 at 3,900 points, more than 100 points below its current level.
Energy stocks .SPNY climbed 2.4%, tracking a more than 3% jump in oil prices as potential OPEC+ output cuts and conflict in Libya helped to offset a strong dollar. O/R
Bristol Myers Squibb BMY.N slid 5.6% after its drug candidate for preventing ischemia strokes missed the main goal in a mid-stage trial.
Dow Inc DOW.N and Lyondell Basell Industries LYB.N fell 2% and 1.1%, respectively, after Keybanc downgraded the chemicals company's stocks to "underweight" from "sector weight".
Catalent Inc CTLT.N dropped 9.8% after the contract drug manufacturer forecast downbeat 2023 revenue.
Declining issues outnumbered advancers for a 2.32-to-1 ratio on the NYSE and a 2.42-to-1 ratio on the Nasdaq.
The S&P index recorded 2 new 52-week highs and 22 new lows, while the Nasdaq recorded 14 new highs and 159 new lows.
(Reporting by Devik Jain and Anisha Sircar in Bengaluru; Editing by Aditya Soni)
((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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Among the biggest drags on Monday, heavyweight technology and growth stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O fell between 1.4% and 2.4% due to a rise in Treasury yields. By Devik Jain and Anisha Sircar Aug 29 (Reuters) - U.S. stock indexes hit fresh one-month lows on Monday, adding to a sharp selloff last week as investors worried about the Federal Reserve's plan to keep raising interest rates in its fight against inflation even at the cost of an economic slowdown. Fed Chair Jerome Powell said on Friday the U.S. economy would need tight monetary policy "for some time" before inflation is under control, quashing hopes of more modest rate hikes after recent data suggested price pressures were peaking.
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Among the biggest drags on Monday, heavyweight technology and growth stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O fell between 1.4% and 2.4% due to a rise in Treasury yields. By Devik Jain and Anisha Sircar Aug 29 (Reuters) - U.S. stock indexes hit fresh one-month lows on Monday, adding to a sharp selloff last week as investors worried about the Federal Reserve's plan to keep raising interest rates in its fight against inflation even at the cost of an economic slowdown. Fed Chair Jerome Powell said on Friday the U.S. economy would need tight monetary policy "for some time" before inflation is under control, quashing hopes of more modest rate hikes after recent data suggested price pressures were peaking.
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Among the biggest drags on Monday, heavyweight technology and growth stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O fell between 1.4% and 2.4% due to a rise in Treasury yields. By Devik Jain and Anisha Sircar Aug 29 (Reuters) - U.S. stock indexes hit fresh one-month lows on Monday, adding to a sharp selloff last week as investors worried about the Federal Reserve's plan to keep raising interest rates in its fight against inflation even at the cost of an economic slowdown. Money market traders are pricing in a 70.5% chance of a third straight 75-basis-point interest rate hike next month and expect the Fed funds rate to end the year near 3.7%.
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Among the biggest drags on Monday, heavyweight technology and growth stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O fell between 1.4% and 2.4% due to a rise in Treasury yields. By Devik Jain and Anisha Sircar Aug 29 (Reuters) - U.S. stock indexes hit fresh one-month lows on Monday, adding to a sharp selloff last week as investors worried about the Federal Reserve's plan to keep raising interest rates in its fight against inflation even at the cost of an economic slowdown. Money market traders are pricing in a 70.5% chance of a third straight 75-basis-point interest rate hike next month and expect the Fed funds rate to end the year near 3.7%.
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19578.0
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2022-08-29 00:00:00 UTC
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Hedge Funds' 21 Top Blue-Chip Stocks to Buy Now
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AAPL
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https://www.nasdaq.com/articles/hedge-funds-21-top-blue-chip-stocks-to-buy-now
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nan
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nan
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Hedge funds as a group have a poor long-term track record, but there's still something irresistible about knowing what the putative smart money has been up to.
Besides, you've got to give them credit where credit is due. Hedge funds as a group might not be generating positive returns in 2022, but hey, at least they're beating the broader market.
SEE MORE Warren Buffett Stocks Ranked: The Berkshire Hathaway Portfolio
And by a wide margin at that.
Hedging strategies by definition limit upside when stocks are rising, which helps explain the industry's years of underperformance during the bull market. By the same token, however, hedging strategies limit downside when everything is selling off. And goodness knows investors have seen plenty of red on their screens so far this year.
Case in point: the Eurekahedge Hedge Fund Index delivered a total return (price appreciation plus dividends) of -4.2% year-to-date through July 31. That compares with the S&P 500's total return of -12.6% over the same span.
We won't know how hedge funds are dealing with the current market selloff until they disclose their third-quarter buys and sells in mid-November. But we do know what they were up to in Q2, thanks to a recent batch of regulatory filings.
SEE MORE 10 Best Low-Volatility Stocks to Buy Now
"Stymied by an uncertain market environment and poor recent returns, hedge funds have cut leverage, shifted back towards growth stocks, and increased portfolio concentrations in their favorite stocks," notes the portfolio strategy team at Goldman Sachs Global Investment Research.
And, indeed, as is always the case, hedge funds were heavily invested in most of the market's biggest and bluest of blue-chip stocks – particularly Dow stocks.
That's largely a function of Dow stocks' massive market capitalizations and attendant liquidity, which creates ample room for institutional investors to build or sell large positions.
Big-name blue-chip stocks also carry a lower level of reputational risk for professional money managers. (It's a lot easier to justify holding a large position in a Dow stock than a no-name small-cap if restive clients start grumbling about their returns.)
Be that as it may, half these names are not in the famed blue-chip average, and a few of these picks might surprise you. But before we get to the full list of stocks in the table below, let's look at some of the more notable entries.
Although Amazon.com (AMZN, $130.75) remained the second-most popular stock with hedge funds in Q2, on balance, these institutional investors were heavy sellers. Hedge funds sold a net of more than 24 million shares in the e-commerce giant in Q2, a period in which AMZN stock tumbled 35%. The number of hedge funds with positions in AMZN declined 4%, according to WhaleWisdom. Furthermore, the number of hedge funds counting AMZN as a top 10 holding fell by 22%.
Hedge funds who remained committed to Google parent Alphabet's (GOOGL, $110.34) Class A shares absolutely piled into the name when it went on sale. GOOGL tumbled 22% in Q2, and yet hedge funds were net buyers of more than 117 million shares. Be that as it may, the number of hedge funds holding GOOGL fell by almost 6%, and the number of hedge funds counting it among their top 10 positions declined by more than 10%.
Warren Buffett's Berkshire Hathaway (BRK.B, $289.96) went bargain hunting in Q2, beefing up its stakes in Apple (AAPL), Chevron (CVX) and Occidental Petroleum (OXY). But hedge funds didn't avail themselves of the same opportunity afforded by the slump in BRK.B. Shares in Buffett's holding company fell 23% in Q2, and hedge funds provided some of the selling pressure. Indeed, hedge funds were net sellers to the tune of 14.6 million shares in Berkshire Hathaway during the three months ended June 30.
Have a look at hedge funds' 21 top blue-chip stocks to buy now in the table below.
Kiplinger; WhaleWisdom
SEE MORE The 11 Most Expensive Cities in the U.S.
The views and 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's Berkshire Hathaway (BRK.B, $289.96) went bargain hunting in Q2, beefing up its stakes in Apple (AAPL), Chevron (CVX) and Occidental Petroleum (OXY). Case in point: the Eurekahedge Hedge Fund Index delivered a total return (price appreciation plus dividends) of -4.2% year-to-date through July 31. (It's a lot easier to justify holding a large position in a Dow stock than a no-name small-cap if restive clients start grumbling about their returns.)
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Warren Buffett's Berkshire Hathaway (BRK.B, $289.96) went bargain hunting in Q2, beefing up its stakes in Apple (AAPL), Chevron (CVX) and Occidental Petroleum (OXY). SEE MORE Warren Buffett Stocks Ranked: The Berkshire Hathaway Portfolio And by a wide margin at that. Furthermore, the number of hedge funds counting AMZN as a top 10 holding fell by 22%.
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Warren Buffett's Berkshire Hathaway (BRK.B, $289.96) went bargain hunting in Q2, beefing up its stakes in Apple (AAPL), Chevron (CVX) and Occidental Petroleum (OXY). SEE MORE 10 Best Low-Volatility Stocks to Buy Now "Stymied by an uncertain market environment and poor recent returns, hedge funds have cut leverage, shifted back towards growth stocks, and increased portfolio concentrations in their favorite stocks," notes the portfolio strategy team at Goldman Sachs Global Investment Research. And, indeed, as is always the case, hedge funds were heavily invested in most of the market's biggest and bluest of blue-chip stocks – particularly Dow stocks.
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Warren Buffett's Berkshire Hathaway (BRK.B, $289.96) went bargain hunting in Q2, beefing up its stakes in Apple (AAPL), Chevron (CVX) and Occidental Petroleum (OXY). The number of hedge funds with positions in AMZN declined 4%, according to WhaleWisdom. Indeed, hedge funds were net sellers to the tune of 14.6 million shares in Berkshire Hathaway during the three months ended June 30.
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19579.0
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2022-08-29 00:00:00 UTC
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US STOCKS-Wall Street dips as rate hike concerns remain
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-dips-as-rate-hike-concerns-remain
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nan
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nan
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By Chuck Mikolajczak
NEW YORK, Aug 29 (Reuters) - U.S. stock indexes dipped on Monday, adding to last week's sharp losses, as concerns remained about the Federal Reserve's aggressive interest rate increases to fight inflation even if they result in an economic slowdown.
Fed Chair Jerome Powell said on Friday the U.S. economy would need tight monetary policy "for some time" before inflation is under control, dashing hopes the Fed might pivot to more subdued rate hikes after recent data suggested price pressures were peaking.
While the S&P 500 was on track for its biggest two-day percentage decline in 2-1/2 months, the benchmark index recovered from its worst levels of the day that saw it fall about 1% to a fresh one-month low.
"Investors realize that the Fed knows not much more about inflation than the rest of us so sure, Jay Powell is entitled to his opinion and his opinion probably matters more than a lot of other opinions but at the end of the day he is guessing the same way we are," said Jack Ablin, chief investment officer at Cresset Capital in Chicago.
"I don’t think his speech was the end of the world either, maybe we’re kissing and making up with the Fed."
Money market traders are pricing in a 72.5% chance of a 75-basis-point interest rate hike at the Fed's September meeting, which would be the third straight hike of that magnitude, and expect the Fed funds rate to end the year at about 3.7%. FEDWATCH
Economic data this week is highlighted by the August nonfarm payrolls report due on Friday, with any signs of a slowdown in the labor market possibly taking pressure off the Fed to continue with outsized rate hikes.
Megacap technology and growth stocks such as Apple Inc AAPL.O, down 0.94%, and Microsoft Corp MSFT.O, off 0.91%, were among the biggest drags on the index as Treasury yields rose. US/
The two-year Treasury yield US2YT=RR, which is particularly sensitive to interest rate expectations, briefly touched a 15-year high, while the closely watched yield curve measured by the gap between two and 10-year yields US2US10=TWEB remained firmly inverted. US/
An inversion is considered by many to be a reliable signal of a looming recession.
The Dow Jones Industrial Average .DJI fell 24.21 points, or 0.07%, to 32,259.19, the S&P 500 .SPX lost 4.61 points, or 0.11%, to 4,053.05 and the Nasdaq Composite .IXIC dropped 59.30 points, or 0.49%, to 12,082.41.
The CBOE's volatility index .VIX, Wall Street's fear gauge, hit a seven-week high of 27.67 points.
The benchmark S&P 500 index has climbed nearly 11% since mid-June through Friday's close and recently found support just above its 50-day moving average, although it remains well below it's 200-day moving average. Despite the rebound, some investors remain worried as September approaches due to the historical weakness for stocks during the month and the anticipated hike from the Fed.
Energy stocks .SPNY, up 2.57%, were a bright spot, as crude prices jumped about 4% on a possible OPEC+ output cuts and conflict in Libya. O/R
Bristol Myers Squibb BMY.N slid 5.96% after its drug candidate for preventing ischemia strokes missed the main goal in a mid-stage trial.
Declining issues outnumbered advancing ones on the NYSE by a 1.40-to-1 ratio; on Nasdaq, a 1.64-to-1 ratio favored decliners.
The S&P 500 posted two new 52-week highs and 22 new lows; the Nasdaq Composite recorded 22 new highs and 180 new lows.
(Reporting by Chuck Mikolajczak; Editing by Cynthia Osterman)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Megacap technology and growth stocks such as Apple Inc AAPL.O, down 0.94%, and Microsoft Corp MSFT.O, off 0.91%, were among the biggest drags on the index as Treasury yields rose. By Chuck Mikolajczak NEW YORK, Aug 29 (Reuters) - U.S. stock indexes dipped on Monday, adding to last week's sharp losses, as concerns remained about the Federal Reserve's aggressive interest rate increases to fight inflation even if they result in an economic slowdown. While the S&P 500 was on track for its biggest two-day percentage decline in 2-1/2 months, the benchmark index recovered from its worst levels of the day that saw it fall about 1% to a fresh one-month low.
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Megacap technology and growth stocks such as Apple Inc AAPL.O, down 0.94%, and Microsoft Corp MSFT.O, off 0.91%, were among the biggest drags on the index as Treasury yields rose. Fed Chair Jerome Powell said on Friday the U.S. economy would need tight monetary policy "for some time" before inflation is under control, dashing hopes the Fed might pivot to more subdued rate hikes after recent data suggested price pressures were peaking. Money market traders are pricing in a 72.5% chance of a 75-basis-point interest rate hike at the Fed's September meeting, which would be the third straight hike of that magnitude, and expect the Fed funds rate to end the year at about 3.7%.
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Megacap technology and growth stocks such as Apple Inc AAPL.O, down 0.94%, and Microsoft Corp MSFT.O, off 0.91%, were among the biggest drags on the index as Treasury yields rose. By Chuck Mikolajczak NEW YORK, Aug 29 (Reuters) - U.S. stock indexes dipped on Monday, adding to last week's sharp losses, as concerns remained about the Federal Reserve's aggressive interest rate increases to fight inflation even if they result in an economic slowdown. Fed Chair Jerome Powell said on Friday the U.S. economy would need tight monetary policy "for some time" before inflation is under control, dashing hopes the Fed might pivot to more subdued rate hikes after recent data suggested price pressures were peaking.
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Megacap technology and growth stocks such as Apple Inc AAPL.O, down 0.94%, and Microsoft Corp MSFT.O, off 0.91%, were among the biggest drags on the index as Treasury yields rose. While the S&P 500 was on track for its biggest two-day percentage decline in 2-1/2 months, the benchmark index recovered from its worst levels of the day that saw it fall about 1% to a fresh one-month low. Money market traders are pricing in a 72.5% chance of a 75-basis-point interest rate hike at the Fed's September meeting, which would be the third straight hike of that magnitude, and expect the Fed funds rate to end the year at about 3.7%.
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19580.0
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2022-08-29 00:00:00 UTC
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US STOCKS-Wall Street retreats as rate hike concerns persist
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-retreats-as-rate-hike-concerns-persist
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nan
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nan
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By Chuck Mikolajczak
NEW YORK, Aug 29 (Reuters) - U.S. stocks closed modestly lower on Monday, adding to last week's sharp losses on nagging concerns about the Federal Reserve's determination to aggressively hike interest rates to fight inflation even as the economy slows.
Fed Chair Jerome Powell said on Friday the U.S. economy would need tight monetary policy "for some time" before inflation is under control, dashing hopes the Fed might pivot to more subdued rate hikes after recent data suggested price pressures were peaking.
The S&P 500 recovered from session lows that put it down 1% at the lowest in a month, but the benchmark index still notched its biggest two-day percentage decline in 2-1/2 months.
"Friday’s selloff was frankly overdone, I know (Powell) said he was going to play tough with inflation but it is honestly not that much different than what he has been saying for the last several weeks, he was a little more hawkish but I mean, geez, who is surprised by that, really?" said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.
"I don’t see a whole lot of up or downside here in the near term, I see a lot of volatility and that is probably going to be the case at the very least until we get past the September 21 rate hike."
According to preliminary data, the S&P 500 .SPX lost 28.04 points, or 0.69%, to end at 4,029.62 points, while the Nasdaq Composite .IXIC lost 129.90 points, or 1.07%, to 12,011.81. The Dow Jones Industrial Average .DJI fell 183.01 points, or 0.57%, to 32,100.24.
Megacap technology and growth stocks such as Apple Inc AAPL.O and Microsoft Corp MSFT.O were among the biggest drags on the index as Treasury yields rose.
The CBOE's volatility index .VIX, Wall Street's fear gauge, hit a seven-week high of 27.67 points.
Money market traders are pricing in a 72.5% chance of a 75-basis-point interest rate hike at the Fed's September meeting, which would be the third straight hike of that magnitude. They expect the Fed funds rate to end the year at about 3.7%. FEDWATCH
The two-year Treasury yield US2YT=RR, which is particularly sensitive to interest rate expectations, briefly touched a 15-year high, while the closely watched yield curve measured by the gap between two and 10-year yields US2US10=TWEB remained firmly inverted.
An inversion is considered by many to be a reliable signal of a looming recession.
Economic data this week is highlighted by the August nonfarm payrolls report due on Friday. Any signs of a slowdown in the labor market might take pressure off the Fed to continue with outsized rate hikes.
The S&P 500 climbed nearly 11% since mid-June through Friday's close. It recently found support just above its 50-day moving average, although it remains well below its 200-day moving average. Despite the rebound, some investors remain worried as September approaches due to the historical weakness for stocks during the month and the anticipated hike from the Fed.
Energy stocks .SPNY were a bright spot as crude prices jumped about 4% on possible OPEC+ output cuts and conflict in Libya.
Bristol Myers Squibb BMY.N slid after its drug candidate for preventing ischemia strokes missed the main goal in a mid-stage trial.
(Reporting by Chuck Mikolajczak; Editing by Cynthia Osterman and David Gregorio)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Megacap technology and growth stocks such as Apple Inc AAPL.O and Microsoft Corp MSFT.O were among the biggest drags on the index as Treasury yields rose. By Chuck Mikolajczak NEW YORK, Aug 29 (Reuters) - U.S. stocks closed modestly lower on Monday, adding to last week's sharp losses on nagging concerns about the Federal Reserve's determination to aggressively hike interest rates to fight inflation even as the economy slows. Despite the rebound, some investors remain worried as September approaches due to the historical weakness for stocks during the month and the anticipated hike from the Fed.
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Megacap technology and growth stocks such as Apple Inc AAPL.O and Microsoft Corp MSFT.O were among the biggest drags on the index as Treasury yields rose. Fed Chair Jerome Powell said on Friday the U.S. economy would need tight monetary policy "for some time" before inflation is under control, dashing hopes the Fed might pivot to more subdued rate hikes after recent data suggested price pressures were peaking. According to preliminary data, the S&P 500 .SPX lost 28.04 points, or 0.69%, to end at 4,029.62 points, while the Nasdaq Composite .IXIC lost 129.90 points, or 1.07%, to 12,011.81.
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Megacap technology and growth stocks such as Apple Inc AAPL.O and Microsoft Corp MSFT.O were among the biggest drags on the index as Treasury yields rose. By Chuck Mikolajczak NEW YORK, Aug 29 (Reuters) - U.S. stocks closed modestly lower on Monday, adding to last week's sharp losses on nagging concerns about the Federal Reserve's determination to aggressively hike interest rates to fight inflation even as the economy slows. Fed Chair Jerome Powell said on Friday the U.S. economy would need tight monetary policy "for some time" before inflation is under control, dashing hopes the Fed might pivot to more subdued rate hikes after recent data suggested price pressures were peaking.
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Megacap technology and growth stocks such as Apple Inc AAPL.O and Microsoft Corp MSFT.O were among the biggest drags on the index as Treasury yields rose. Fed Chair Jerome Powell said on Friday the U.S. economy would need tight monetary policy "for some time" before inflation is under control, dashing hopes the Fed might pivot to more subdued rate hikes after recent data suggested price pressures were peaking. According to preliminary data, the S&P 500 .SPX lost 28.04 points, or 0.69%, to end at 4,029.62 points, while the Nasdaq Composite .IXIC lost 129.90 points, or 1.07%, to 12,011.81.
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19581.0
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2022-08-29 00:00:00 UTC
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Australia demands Apple, Meta, Microsoft share anti-abuse steps, threatens fines
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AAPL
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https://www.nasdaq.com/articles/australia-demands-apple-meta-microsoft-share-anti-abuse-steps-threatens-fines
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nan
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nan
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By Byron Kaye
SYDNEY, Aug 30 (Reuters) - An Australian regulator sent legal letters to Facebook owner Meta Platforms FB.OMETA.O, Apple Inc AAPL.O and Microsoft Corp MSFT.O demanding they share their strategies for stamping out child abuse material on their platforms or face fines.
The e-Safety Commissioner, a body set up to protect internet users, said it used laws which took effect in January to compel the technology giants to disclose measures they were taking to detect and remove abuse material within 28 days. If they did not, the companies would each face a fine of A$555,000 ($383,000) per day.
The threat underscores Australia's hardline approach to regulating Big Tech firms since 2021 which has so far included laws forcing them to pay media outlets for displaying their content and laws making them hand over details of anonymous accounts which post defamatory material.
The internet firms have meanwhile been under pressure around the world to find a way to monitor encrypted messaging and streaming services for child abuse material without encroaching on user privacy.
"This activity is no longer confined to hidden corners of the dark web but is prevalent on the mainstream platforms we and our children use every day," said commissioner Julie Inman Grant in a statement.
"As more companies move towards encrypted messaging services and deploy features like livestreaming, the fear is that this horrific material will spread unchecked on these platforms," she added.
A spokeperson for Microsoft, which owns video calling service Skype, said the company had received the letter and planned to respond within 28 days.
A spokesperson for Meta, which also owns messaging service WhatsApp, said the company was still reviewing the letter but continued to "proactively engage with the eSafety Commissioner on these important issues".
Apple, which owns video messaging service FaceTime, messaging service iMessage and photo storing service iCloud, did not immediately respond to an email seeking comment.
The eSafety Commissioner referred to figures provided by the U.S. National Center for Missing & Exploited Children, which said this year it had received 29.1 million reports of child abuse material from internet companies, of which just 160 were from Apple while 22 million were from Facebook.
($1 = 1.4499 Australian dollars)
(Reporting by Byron Kaye; Editing by Ana Nicolaci da Costa)
((byron.kaye@thomsonreuters.com; +612 9171 7541; @byronkaye;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Byron Kaye SYDNEY, Aug 30 (Reuters) - An Australian regulator sent legal letters to Facebook owner Meta Platforms FB.OMETA.O, Apple Inc AAPL.O and Microsoft Corp MSFT.O demanding they share their strategies for stamping out child abuse material on their platforms or face fines. The e-Safety Commissioner, a body set up to protect internet users, said it used laws which took effect in January to compel the technology giants to disclose measures they were taking to detect and remove abuse material within 28 days. "This activity is no longer confined to hidden corners of the dark web but is prevalent on the mainstream platforms we and our children use every day," said commissioner Julie Inman Grant in a statement.
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By Byron Kaye SYDNEY, Aug 30 (Reuters) - An Australian regulator sent legal letters to Facebook owner Meta Platforms FB.OMETA.O, Apple Inc AAPL.O and Microsoft Corp MSFT.O demanding they share their strategies for stamping out child abuse material on their platforms or face fines. Apple, which owns video messaging service FaceTime, messaging service iMessage and photo storing service iCloud, did not immediately respond to an email seeking comment. The eSafety Commissioner referred to figures provided by the U.S. National Center for Missing & Exploited Children, which said this year it had received 29.1 million reports of child abuse material from internet companies, of which just 160 were from Apple while 22 million were from Facebook.
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By Byron Kaye SYDNEY, Aug 30 (Reuters) - An Australian regulator sent legal letters to Facebook owner Meta Platforms FB.OMETA.O, Apple Inc AAPL.O and Microsoft Corp MSFT.O demanding they share their strategies for stamping out child abuse material on their platforms or face fines. Apple, which owns video messaging service FaceTime, messaging service iMessage and photo storing service iCloud, did not immediately respond to an email seeking comment. The eSafety Commissioner referred to figures provided by the U.S. National Center for Missing & Exploited Children, which said this year it had received 29.1 million reports of child abuse material from internet companies, of which just 160 were from Apple while 22 million were from Facebook.
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By Byron Kaye SYDNEY, Aug 30 (Reuters) - An Australian regulator sent legal letters to Facebook owner Meta Platforms FB.OMETA.O, Apple Inc AAPL.O and Microsoft Corp MSFT.O demanding they share their strategies for stamping out child abuse material on their platforms or face fines. If they did not, the companies would each face a fine of A$555,000 ($383,000) per day. The internet firms have meanwhile been under pressure around the world to find a way to monitor encrypted messaging and streaming services for child abuse material without encroaching on user privacy.
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19582.0
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2022-08-29 00:00:00 UTC
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Why Globalstar Stock Soared 10% Higher Today Before Falling Back to Earth
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AAPL
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https://www.nasdaq.com/articles/why-globalstar-stock-soared-10-higher-today-before-falling-back-to-earth
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nan
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nan
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What happened
Globalstar (NYSEMKT: GSAT) looked set to be a big star on the stock market Monday, as it bounced more than 10% higher in early trading. That was on the back of growing speculation that the company's technology will be utilized in a hot product made by a top Silicon Valley company. Sentiment on the stock cooled later in the day, though, and Globalstar closed slightly down.
So what
Said company is Apple (NASDAQ: AAPL). Not for the first time, speculation centers on the company packing satellite calling functionality into its upcoming iPhone. This speculation has been gathering steam, now that we're barely over one week away from Apple's latest "event," as the company calls its new product announcements. Many Apple observers believe a new model, specifically the iPhone 14, will be unveiled at the September show.
Fueling this speculation is the graphic Apple is using to promote the event; it features the company's famous logo depicted as a series of stars in the night sky. This could be an implication that satellite calling will be a promoted feature of a new phone.
In a post on Medium early Monday, well-known and closely followed Apple analyst Ming-Chi Kuo of TF International Securities posted a set of "survey updates" regarding the rumored iPhone 14. In this, he said that satellite functionalities were among Apple's test items prior to mass production of the model.
He did not specifically state that the iPhone 14 would have this feature, but did write that "The operator most likely to partner with Apple for satellite communication is Globalstar."
Now what
Kuo's thesis is based on the fact that satellite communications is a specialized industrial/tech segment with very high barriers to entry. As a top name in this limited business, Globalstar is not only well positioned to help Apple in any potential satellite efforts, the analyst believes that it and its few peer companies "deserve investors' great attention."
Still, there's quite some distance between speculation and fact, and perhaps investors became spooked that the latest Apple rumor was spiraling Globalstar's share price too high.
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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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So what Said company is Apple (NASDAQ: AAPL). What happened Globalstar (NYSEMKT: GSAT) looked set to be a big star on the stock market Monday, as it bounced more than 10% higher in early trading. Fueling this speculation is the graphic Apple is using to promote the event; it features the company's famous logo depicted as a series of stars in the night sky.
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So what Said company is Apple (NASDAQ: AAPL). This speculation has been gathering steam, now that we're barely over one week away from Apple's latest "event," as the company calls its new product announcements. In a post on Medium early Monday, well-known and closely followed Apple analyst Ming-Chi Kuo of TF International Securities posted a set of "survey updates" regarding the rumored iPhone 14.
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So what Said company is Apple (NASDAQ: AAPL). As a top name in this limited business, Globalstar is not only well positioned to help Apple in any potential satellite efforts, the analyst believes that it and its few peer companies "deserve investors' great attention." See the 10 stocks *Stock Advisor returns as of August 17, 2022 Eric Volkman has positions in Apple.
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So what Said company is Apple (NASDAQ: AAPL). This speculation has been gathering steam, now that we're barely over one week away from Apple's latest "event," as the company calls its new product announcements. 10 stocks we like better than Globalstar When our award-winning analyst team has a stock tip, it can pay to listen.
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19583.0
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2022-08-29 00:00:00 UTC
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Why the Shine Was off Apple Stock on Monday
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AAPL
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https://www.nasdaq.com/articles/why-the-shine-was-off-apple-stock-on-monday
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nan
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nan
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What happened
Apple (NASDAQ: AAPL) stock and product aficionados might be getting excited about the company's upcoming "event" next week, but the shares nevertheless stumbled on Monday. A media report is giving some investors pause to think, with the result that Apple shares lost 1.4% of their value across the day.
So what
An article published in Politico on Friday afternoon stated that the Justice Department is currently in an early stage of preparing a potential antitrust complaint against Apple. Citing "a person with direct knowledge of the matter," the story said that several groups of Justice prosecutors are involved in the effort, suggesting a renewed push by the government to curb what it considers to be the unfair trade practices of big tech companies.
According to the article's source, if the Department decides to go through with filing its complaint, it will do so by the end of this year. Yet that person, plus what Politico described as "one other familiar with the probe," have both said that Justice hasn't yet made a final decision on the matter.
Apple has not yet officially responded to the article.
Now what
If the article is accurate, this would hardly be the first time the government has gone after the country's top-tech companies over what it believes is anti-competitive behavior. Apple has been in its sights for some time and the focus of a formal investigation since 2019. We need to bear in mind, though, that at this point the filing of an antitrust complaint is only speculation at best, and investors shouldn't trade the company's stock purely on that basis.
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
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 Apple (NASDAQ: AAPL) stock and product aficionados might be getting excited about the company's upcoming "event" next week, but the shares nevertheless stumbled on Monday. So what An article published in Politico on Friday afternoon stated that the Justice Department is currently in an early stage of preparing a potential antitrust complaint against Apple. Citing "a person with direct knowledge of the matter," the story said that several groups of Justice prosecutors are involved in the effort, suggesting a renewed push by the government to curb what it considers to be the unfair trade practices of big tech companies.
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What happened Apple (NASDAQ: AAPL) stock and product aficionados might be getting excited about the company's upcoming "event" next week, but the shares nevertheless stumbled on Monday. We need to bear in mind, though, that at this point the filing of an antitrust complaint is only speculation at best, and investors shouldn't trade the company's stock purely on that basis. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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What happened Apple (NASDAQ: AAPL) stock and product aficionados might be getting excited about the company's upcoming "event" next week, but the shares nevertheless stumbled on Monday. 10 stocks we like better than Apple When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of August 17, 2022 Eric Volkman has positions in Apple.
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What happened Apple (NASDAQ: AAPL) stock and product aficionados might be getting excited about the company's upcoming "event" next week, but the shares nevertheless stumbled on Monday. So what An article published in Politico on Friday afternoon stated that the Justice Department is currently in an early stage of preparing a potential antitrust complaint against Apple. See the 10 stocks *Stock Advisor returns as of August 17, 2022 Eric Volkman has positions in Apple.
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19584.0
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2022-08-29 00:00:00 UTC
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What A Pricier New iPhone Would Mean For Apple Stock
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AAPL
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https://www.nasdaq.com/articles/what-a-pricier-new-iphone-would-mean-for-apple-stock
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nan
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nan
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Apple (NASDAQ:AAPL) is expected to launch its new iPhone 14 as well as upgrades to the Apple Watch and Airpods at a special event to be held on September 7. The iPhone remains Apple’s most important product, accounting for over half its total revenue. So what will the launch of the new iPhone devices mean for Apple’s finances and its stock?
With smartphone volumes plateauing, we think that Apple will continue to focus on raising the average selling prices and margins for its iPhones. As usual, Apple is likely to launch two Pro versions of the device and two standard versions of the device. However, Apple is expected to launch a larger screen version of the standard iPhone 14 (likely with a 6.7-inch screen) while axing the lower-priced 5.4-inch iPhone mini lineup, per Bloomberg. We also think it’s likely that Apple will marginally hike pricing, given the increase in component prices and also due to the fact that base prices have remained the same for two years on the regular iPhones and for close to five years on the premium models. Apple could also look to upsell more customers toward the Pro devices, with more new exclusive features and design tweaks. For instance, it is expected that the signature iPhone notch, which houses sensors and cameras will be replaced by pill-shaped cutouts on the screen of the Pro models, with the Pro models potentially offering always-on displays.
Now, the launch of the new iPhone comes against the backdrop of a relatively tough macro environment. U.S. GDP has contracted over the last two quarters straight and consumers have been scaling back on retail spending amid rising inflation, while prioritizing services and experiences. However, we don’t think that the uptake of Apple’s upcoming devices will be meaningfully impacted. For perspective, over the last two quarters, iPhone sales rose by an average of 4% versus last year, despite the broader economic contraction. Moreover, wireless carriers are also likely to support the sales of the iPhone via promotions, as they look to bring more customers onto their newly built 5G networks.
We have a $178 per share valuation for Apple, which is about 6% ahead of the current market price. See our analysis on Apple Valuation: Is AAPL Stock Expensive Or Cheap? for an overview of what’s driving our price estimate for Apple. Also, see our analysis of Apple revenue for more details on the company’s key revenue streams and how they have been trending.
With inflation rising and the Fed raising interest rates, Apple has fallen 7% this year. Can it drop more? See how low can Apple stock go by comparing its decline in previous market crashes. Here is a performance summary of all stocks in previous market crashes.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ:AAPL) is expected to launch its new iPhone 14 as well as upgrades to the Apple Watch and Airpods at a special event to be held on September 7. See our analysis on Apple Valuation: Is AAPL Stock Expensive Or Cheap? With smartphone volumes plateauing, we think that Apple will continue to focus on raising the average selling prices and margins for its iPhones.
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Apple (NASDAQ:AAPL) is expected to launch its new iPhone 14 as well as upgrades to the Apple Watch and Airpods at a special event to be held on September 7. See our analysis on Apple Valuation: Is AAPL Stock Expensive Or Cheap? However, Apple is expected to launch a larger screen version of the standard iPhone 14 (likely with a 6.7-inch screen) while axing the lower-priced 5.4-inch iPhone mini lineup, per Bloomberg.
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Apple (NASDAQ:AAPL) is expected to launch its new iPhone 14 as well as upgrades to the Apple Watch and Airpods at a special event to be held on September 7. See our analysis on Apple Valuation: Is AAPL Stock Expensive Or Cheap? However, Apple is expected to launch a larger screen version of the standard iPhone 14 (likely with a 6.7-inch screen) while axing the lower-priced 5.4-inch iPhone mini lineup, per Bloomberg.
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Apple (NASDAQ:AAPL) is expected to launch its new iPhone 14 as well as upgrades to the Apple Watch and Airpods at a special event to be held on September 7. See our analysis on Apple Valuation: Is AAPL Stock Expensive Or Cheap? So what will the launch of the new iPhone devices mean for Apple’s finances and its stock?
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19585.0
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2022-08-29 00:00:00 UTC
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What Peloton's Deal With Amazon Signals
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AAPL
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https://www.nasdaq.com/articles/what-pelotons-deal-with-amazon-signals
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nan
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nan
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In this podcast, Motley Fool senior analyst Bill Mann discusses:
The upside potential for Peloton.
Whether Peloton may become part of Amazon's Prime membership offerings.
Toll Brothers blaming supply chain and labor shortages for a cut in guidance.
Nordstrom's challenges with inventory and family ownership.
Motley Fool contributors Jeremy Bowman and Jason Hall engage in a bull vs. bear debate over Beyond Meat.
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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They just revealed what they believe are the ten best stocks for investors to buy right now... and Peloton Interactive 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 August 24, 2022.
Chris Hill: We've got signs of life from Peloton and a Bull versus Bear debate over Beyond Meat. Motley Fool Money starts now. I'm Chris Hill. Joining me today, Motley Fool Senior Analyst Bill Mann. Thanks for being here.
Bill Mann: Hey, Chris, how are you?
Chris Hill: I'm doing all right. Let's start with Peloton, shall we? Because Peloton has struck a deal to sell its equipment and branded apparel on an e-commerce website called Amazon.com.
Bill Mann: Heard of that.
Chris Hill: Shares up 20 percent. To be a little bit more serious, this is the first partnership that Peloton has struck to sell their stuff on another company's site. I guess my first question is, do you think the movement that we're seeing in the stock reflects reality or the potential for more of these types of partnerships to come?
Bill Mann: I think what you're looking at here is the recognition from Peloton's management that that white glove service isn't necessary, that they are not a premium brand with a premium service with no amount of competition out there. That they need to get as many Peloton bikes and treadmills and their platforms in front of people as quickly as possible. This is yet another move away from what the former CEO John Foley had in mind for the company. But I think it's a very necessary step for them. The market is rewarding them for standing up to reality in some ways.
Chris Hill: I'm hoping at some point in the future we get 2,000-word article on how this deal came about. I'm naturally curious. Did Peloton call Amazon or did Amazon call Peloton first? I am also wondering though, when we think about not just from Peloton side, do they strike more partnerships with more e-commerce sites? From Amazon's standpoint, somewhere down the line, does Peloton become potentially a member benefit for being a prime member?
Bill Mann: A lot of people have really thought or anticipated that ultimately Peloton was a takeover candidate for Amazon specifically because folding that membership into Amazon Prime is just yet another way to make Amazon Prime that much stickier. I think that there's something to that. I'm also interested. If we look back, not that many months ago, about 16 months, Peloton completed a takeover of a company called Precor, and that was essentially as a $420 million cash deal. It was essentially to get more capacity for the demand for Peloton products. Almost immediately from that point, demand has dried up. Unfortunately for Peloton at the same time, in making a cash deal, they got rid of a lot of their cushion, which I don't think that they thought they were going to need given their trajectory at the time that they made that deal. I think you're probably going to see a deepening of the relationship with Amazon rather than spreading out wider to other channels.
Chris Hill: Let's move on to housing then. Toll Brothers, third-quarter profits were better-than-expected, but overall revenue was light. The home builder cut deliveries guidance for the full year. Not surprising that they cited supply chain issues and labor shortages.
Bill Mann: Chris, does that feel to you a little bit like that famous Onion article where the man blames everything except for drinking too much on his hangover? [laughs] Yes, I'm sure supply chains were an issue and I'm sure that labor shortages were an issue. But at the same time, you have switched in so many hot markets from a seller's market to a buyer's market. Due to interest rates, which are absolutely a thing and due to a housing market in which the amount that people could charge to sell houses just seem to have no upward bound. They were pointing to markets that formerly were COVID dream lands like Boise and Austin, Texas, and Phoenix is being real weak spots for them. I'm sure supply chain issues were partially to blame, but you're talking about a market that has fundamentally changed over the last, call it four months.
Chris Hill: Look into your crystal ball and tell me what do you expect to hear from other home-builders when we get earnings reports from them later this year?
Bill Mann: I think they're going to blame supply chain issues. The thing that is unique about Toll Brothers is that they are a luxury home-builder. The average ticket for their homes is right around a million dollars. They've got a longer lead time than a lot of housing companies do, the companies that build a little bit lower in the value chain. These are generally speaking, housing stock that is a trade-up for their buyers. I think you may see a lot of the same, but it will make even less sense with other companies than it will with Toll Brothers because their turnaround times are much faster.
Chris Hill: Also, I don't know about you, but anytime I've had a conversation, really in the past year and a half, anyone who is looking to build a home, and not necessarily with Toll Brothers, but just in general or by the way, doing some significant home renovation project. It's the classic case of delays only exponentially more so.
Bill Mann: The other thing to keep in mind is that we keep talking about that interest rates are high. Historically, they're really not that high, but it just feels that way. It's something that the fancy people in economics call the tenor of rates. Where were they recently and where are they now? But it absolutely has a chilling effect on people who are in houses now with sub-three percent interest rates that they would even consider going out and trading into a different house. It has become much less of an environment where people are doing it by choice and much more of one where it's being driven by necessity.
Chris Hill: We'll close with Nordstrom's second quarter results, which really just got overshadowed by the high-end retailer taking an absolute machete to their full year guidance. The inventory problems that we've seen at other retailers are absolutely happening at Nordstrom. I guess the silver lining, not for shareholders but for consumers is check your local Nordstrom for serious sales. [laughs] It's not quite an everything must-go situation but holy cow, are they looking to move some stuff at Nordstrom and Nordstrom Rack?
Bill Mann: Yahoo Finances carrying an article today about Nordstrom. It's one of the more brutal headlines that you will ever see. It is this, Nordstrom, shoppers won't even by clearance items right now, which I don't know about you that sounds bad to me.
Chris Hill: It really does. I'm curious. We talk a lot at our company about founder-led businesses and the benefits for finding truly great, revolutionary founder-led businesses for a number of reasons. A key one being, they have skin in the game. I look at a business like Nordstrom, which is largely controlled by the Nordstrom family, as being a pretty glaring exception to that. Because over the last 5-7 years, there have been points where the headline around Nordstrom is not necessarily the latest earnings or what their guidance is, but it's whether or not the family just wants to sell outright. [laughs] I'm sure there are some people looking at Nordstrom. There is a brand with some equity there. The stock is trading 20 percent lower today. Maybe they're thinking, this might be a value. I don't see how you look at this business with a five-year time horizon when members of the family itself don't appear to have a five-year time horizon.
Bill Mann: I think that's a really interesting point regarding the ownership of Nordstrom. It is very much family controlled and that is something that has been a benefit to the company over the last 30 and 40 years as a publicly traded company. They have been able to resist a lot of the institutional imperatives. But I do also get the sense that the next generation of the Nordstrom family is not that excited about running the business. For whatever reason, those reasons maybe they just want to do something else for a living. Maybe they're just rich. I don't really want to speak to that, but there is at some level, a real downside to family controlled businesses where the next generation of the family does not seem to take the same level of interest or enterprising like strategies in terms of pushing the company forward. In retail, when you're talking about a lord of the flies market where people walk into one store one time and it doesn't go well and they swear it off for the rest of their lives, that matters at a place like Nordstrom.
Chris Hill: Bill Mann, always great talking to you. Thanks for being here.
Bill Mann: Thank you, Chris.
Chris Hill: As a business Beyond Meat makes plant-based meat alternatives. As a stock, Beyond Meat is down nearly 80 percent over the past 12 months. Yet it's worth asking, is this stock somehow still overvalued? Ricky Mulvey host Jason Hall and Jeremy Bowman in a Bull versus Bear debate.
Ricky Mulvey: Welcome to Bear versus Bull. We find a company, gets some analysts, flip a coin, and then you hear both cases. Today, the company is Beyond Meat and on the bull side, we have Jeremy Bowman. Thanks for being here.
Jeremy Bowman: Thanks for having me Ricky. I'm looking forward to it.
Ricky Mulvey: Crossing over from the smattering podcast. He is on the bear side. It's Jason Hall, ready to dunk on Beyond Meat.
Jason Hall: This is beyond my understanding why anybody would invest in that company. Just saying.
Ricky Mulvey: Well, let's get it started. Jeremy Bowman, you have the bull side and you have five minutes whenever you're ready.
Jeremy Bowman: I think the best way to think about the bulk case with beyond me is that there are two elements to it. You have the case or the category which is plant based meat protein, and then the bulk case for the brand. I think in order for the brand to be successful, the category has to be successful. I'm going to start off by talking about the bulk case for the category first. I think we're all aware that this is a huge market that beyond meat and its peers are going after. Animal-based meat is a $270 billion annual market in the US and 1.4 trillion globally. I took those numbers from Beyond Meat's S1, which is back in 2019. It's even bigger now. Plant-based protein is only about one percent to two percent of that market. It's a huge opportunity. Huge nut to crack here if they can do it right. Then what we're seeing is there's a ton of innovation going on with plant-based protein. Beyond Meat itself spent 67 million on R&D last year, which is 15 percent of its revenue.
That's more than a lot of tech companies spent, that's more than Apple spent as a percentage of its revenues. In order to think about this industry correctly, you really have to think of it as a tech driven industry. Even though we're talking about really a basic consumer product ultimately. I think with that innovation going on, even what we've seen in the industry in the last five or 10 years with all these companies like Beyond popping up, you have to believe that the products are going to get better. They're going to get more specialized. They're going to become more developed and scale up and the prices will come down making them more competitive with animal-based meat. I think eventually significantly cheaper since they're not subject to the same constraints as raising livestock, which involves feeding and animal for months or even years.
The other environmental inputs there as far as water consumption and that thing. I think we should also step back and remember that the target customer is a flexitarian here. It's not a straight up vegetarian. It's people who eat some meet want to vary their diet and add more plant-based products so they're turning to Beyond Meat sought to believe in the category. I don't think you have to believe that the whole world's going vegetarian. Then the third about the category I wanted to make is that the demands of the world are changing in a way that makes plant-based meat more desirable to animal-based meat less desirable. The global middle-class is expanding, which is increasing demand for meat. But at the same time, climate change and water shortages and these related issues where we're seeing are making it more expensive and harder to raise livestock. There's a limited amount of land in the world of growing demand for meat. That'll drive up prices for animal protein.
I think unrelated level, when you think about what we've seen with electric cars, you can see regulations begin to play a role in plant-based meat consumption over the next 10 or 20 years. We've tax credits now for electric cars for environmental reasons, why shouldn't there be similar benefits to purchasing plant-based meat or products over the animal-based variety? I think there's a good combination there of both the demand and supply bull arguments for plant-based protein. Basically, if the product is going to get better, tastier, more specialized, cheaper, that'll lead to an increase in demand. At the same time, you've factors like climate change and the growing global population that's going to make it harder to keep livestock and animal-based meat at the current price. That'll drive consumption to plant-based category as well.
Throw in the regulatory tailwinds there as a bonus, as I mentioned. Then as far as Beyond Meat specifically, I think if you're bullish on the industry the case for Beyond Meat, it's pretty straightforward. This is a clear industry in the category. I think it's really the only other appear on its levels, impossible foods, Beyond Meat, great brand recognition. I think we'd all agree on that. Prime placement in thousands of grocery stores was in 34,000 stores in the US at the end of last year and 30,000 outside the US and that's shelf space is not easy to get at these big chains and local grocery stores. That's going to give the company a clear long term competitive advantage. Even on a large scale, if you think about the big meat companies, sausages or whatever, there's only a handful of brands that supermarkets really want to put it in. Most categories have a couple that dominate.
I think Beyond Meat, it's going to retain that leadership position there just based on that those partnerships. Restaurant channels, the results have been more mixed but again, it's partnered with Yum Brands, KFC, Taco Bell Pizza, Subway Dunking, those companies alone that gives it access to 100,000 restaurants around the world so a lot of opportunity there. I think the spending on R&D that I mentioned above is also a bullish sign because that's going to give them better quality products, more new products, and lower prices once again. I think basically the food industry, I think, has always been highly fragmented and I think plant-based protein will also be fragmented even at scale. But you look at Beyond Meat's market position today, it's brand relationship with supermarket chains and restaurants, and I think it will retain that leadership position as the category grows.
Ricky Mulvey: Jeremy Bowman, thank you for the bull case flexitarian, I guess that's the new word for omnivore.
Jeremy Bowman: [laughs] I don't know if that's what the industry prefers or what, but yeah I shouldn't define that, but yeah, that's people.
Ricky Mulvey: That's alright. It was the first time I heard it. Let's let's go to the bear side and for that, we have Jason Hall.
Jason Hall: Ricky, I was once told by a person much wiser than me when somebody shows you who they are, you believe them. Beyond Meat's revenue has roughly been flat over the past year. The company has never done more than $500 million in revenue. It's been a publicly traded company for multiple years at this point. We've also seen at the peak of its high rate of revenue growth, that's also when two really important metrics peaked, gross margin and operating margin. We've seen those numbers consistently shrink and compress since 2020, even as the company's revenue has continued to grow. The bottom line is that if you are in the food business, if you're in some consumer goods packaged foods business if you want to be a great investment, you can have a great product. You can be a great company. But to be a great investment, you have to have real moats. That means for these companies, you need to have either a cost advantage, pricing power, or both.
So far Beyond Meat has not demonstrated that they have either of those things. They are still continuing to compete and price is the thing that they continue to lose on. That's why their margins have continued to be compressed and continued to be squeezed. Because those flexitarians, omnivores, whatever words you want to throw out there. I think what they're telling us, again, this is what the company is showing us. What they're telling us is that this massive addressable market of protein, and then plant-based protein, which is a smaller cohort that's still very large. Guess what, Beyond Meat, there's just not a lot of people that are really interested in taking up that product, certainly not paying the price is the premium prices versus actual protein, animal protein or versus some of the other products that we're seeing from some of the large scaled food producers that have a legacy of really good operations, driving out excess costs and using their scale and their relationships with suppliers to get really good cost advantages. When a product like this where right now there is no pricing power advantage, they find the cost advantages.
If Beyond Meat is going to be a good investment, they're going to have to do that. They're going to have to figure out how to get to that scale and have cost advantages and they don't, and they haven't proven it. They've shown us who they are so far. I think even with the stock down as much as it is, it's down close to 90 percent from its all-time high. I'm pretty sure it's still below the IPO price at this point. It is a classic value trap. This is not an assets trading for a discount to their value. This is an interesting products and an OK business that I don't think it's ever going to make a great investment. I think the best-case scenario for Beyond Meat and its shareholders is at some point for a big company to take advantage of the opportunity to buy this brand, package it with its larger business and then get some operating leverage out of that. As a stand-alone business, I am not interested.
Ricky Mulvey: Jason Hall, thank you for the bear-case and you can decide who made the better case. Again, we had Jeremy Bowman on the bull side, Jason Hall on the bear side. Because today's winner will receive. A coveted prize package from Scott clams canned ham. Scott clam has generously donated a pallet of his whole ham cans. That's right. Just one can has one whole ham resting in a salty broth. Scott plan is in cutting any corners, unlike those other honey baked brands. Looking for more variety, try a combo can. Enjoy Scott clams canned ham on a bed of sweet corn, slice potato or mystery mash. Simply open at room temperature and serve for a delicious weeknight dinner. You'll have your friends and family shouting, I got to get my hands on Scott clams canned ham.
Chris Hill: As always, people on the program may have interest in the stocks they talk about and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. I'm Chris Hill. Thanks for listening. We'll see you tomorrow.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Bill Mann has no position in any of the stocks mentioned. Chris Hill has positions in Amazon and Apple. Jason Hall has positions in Peloton Interactive. Jeremy Bowman has positions in Amazon. Ricky Mulvey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Beyond Meat, Inc., and Peloton Interactive. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Chris Hill: We'll close with Nordstrom's second quarter results, which really just got overshadowed by the high-end retailer taking an absolute machete to their full year guidance. In retail, when you're talking about a lord of the flies market where people walk into one store one time and it doesn't go well and they swear it off for the rest of their lives, that matters at a place like Nordstrom. I think the best-case scenario for Beyond Meat and its shareholders is at some point for a big company to take advantage of the opportunity to buy this brand, package it with its larger business and then get some operating leverage out of that.
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Joining me today, Motley Fool Senior Analyst Bill Mann. Ricky Mulvey host Jason Hall and Jeremy Bowman in a Bull versus Bear debate. Guess what, Beyond Meat, there's just not a lot of people that are really interested in taking up that product, certainly not paying the price is the premium prices versus actual protein, animal protein or versus some of the other products that we're seeing from some of the large scaled food producers that have a legacy of really good operations, driving out excess costs and using their scale and their relationships with suppliers to get really good cost advantages.
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Chris Hill: As a business Beyond Meat makes plant-based meat alternatives. Guess what, Beyond Meat, there's just not a lot of people that are really interested in taking up that product, certainly not paying the price is the premium prices versus actual protein, animal protein or versus some of the other products that we're seeing from some of the large scaled food producers that have a legacy of really good operations, driving out excess costs and using their scale and their relationships with suppliers to get really good cost advantages. Chris Hill: As always, people on the program may have interest in the stocks they talk about and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear.
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Bill Mann: The other thing to keep in mind is that we keep talking about that interest rates are high. [laughs] I'm sure there are some people looking at Nordstrom. Chris Hill: As a business Beyond Meat makes plant-based meat alternatives.
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19586.0
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2022-08-29 00:00:00 UTC
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One Put, One Call Option To Know About for Apple
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AAPL
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https://www.nasdaq.com/articles/one-put-one-call-option-to-know-about-for-apple
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nan
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nan
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Consistently, one of the more popular stocks people enter into their stock options watchlist at Stock Options Channel is Apple Inc (Symbol: AAPL). So this week we highlight one interesting put contract, and one interesting call contract, from the June 2024 expiration for AAPL. The put contract our YieldBoost algorithm identified as particularly interesting, is at the $75 strike, which has a bid at the time of this writing of $2.06. Collecting that bid as the premium represents a 2.8% return against the $75 commitment, or a 1.5% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Selling a put does not give an investor access to AAPL's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. So unless Apple Inc sees its shares decline 53.2% and the contract is exercised (resulting in a cost basis of $72.94 per share before broker commissions, subtracting the $2.06 from $75), the only upside to the put seller is from collecting that premium for the 1.5% annualized rate of return.
Worth considering, is that the annualized 1.5% figure actually exceeds the 0.6% annualized dividend paid by Apple Inc, based on the current share price of $160.37. And yet, if an investor was to buy the stock at the going market price in order to collect the dividend, there is greater downside because the stock would have to lose 53.22% to reach the $75 strike price.
Always important when discussing dividends is the fact that, in general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Apple Inc, looking at the dividend history chart for AAPL below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 0.6% annualized dividend yield.
Turning to the other side of the option chain, we highlight one call contract of particular interest for the June 2024 expiration, for shareholders of Apple Inc (Symbol: AAPL) looking to boost their income beyond the stock's 0.6% annualized dividend yield. Selling the covered call at the $220 strike and collecting the premium based on the $11.05 bid, annualizes to an additional 3.8% rate of return against the current stock price (this is what we at Stock Options Channel refer to as the YieldBoost), for a total of 4.4% annualized rate in the scenario where the stock is not called away. Any upside above $220 would be lost if the stock rises there and is called away, but AAPL shares would have to climb 37.2% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 44.1% return from this trading level, in addition to any dividends collected before the stock was called.
The chart below shows the trailing twelve month trading history for Apple Inc, highlighting in green where the $75 strike is located relative to that history, and highlighting the $220 strike in red:
The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the June 2024 put or call options highlighted in this article deliver a rate of return that represents good reward for the risks. We calculate the trailing twelve month volatility for Apple Inc (considering the last 251 trading day AAPL historical stock prices using closing values, as well as today's price of $160.37) to be 31%.
In mid-afternoon trading on Monday, the put volume among S&P 500 components was 2.70M contracts, with call volume at 2.83M, for a put:call ratio of 0.95 so far for the day, which is unusually high compared to the long-term median put:call ratio of .65. In other words, there are lots more put buyers out there in options trading so far today than would normally be seen, as compared to call buyers. Find out which 15 call and put options traders are talking about today.
Top YieldBoost AAPL Calls »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Turning to the other side of the option chain, we highlight one call contract of particular interest for the June 2024 expiration, for shareholders of Apple Inc (Symbol: AAPL) looking to boost their income beyond the stock's 0.6% annualized dividend yield. Consistently, one of the more popular stocks people enter into their stock options watchlist at Stock Options Channel is Apple Inc (Symbol: AAPL). So this week we highlight one interesting put contract, and one interesting call contract, from the June 2024 expiration for AAPL.
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So this week we highlight one interesting put contract, and one interesting call contract, from the June 2024 expiration for AAPL. We calculate the trailing twelve month volatility for Apple Inc (considering the last 251 trading day AAPL historical stock prices using closing values, as well as today's price of $160.37) to be 31%. Consistently, one of the more popular stocks people enter into their stock options watchlist at Stock Options Channel is Apple Inc (Symbol: AAPL).
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Any upside above $220 would be lost if the stock rises there and is called away, but AAPL shares would have to climb 37.2% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 44.1% return from this trading level, in addition to any dividends collected before the stock was called. Consistently, one of the more popular stocks people enter into their stock options watchlist at Stock Options Channel is Apple Inc (Symbol: AAPL). So this week we highlight one interesting put contract, and one interesting call contract, from the June 2024 expiration for AAPL.
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Consistently, one of the more popular stocks people enter into their stock options watchlist at Stock Options Channel is Apple Inc (Symbol: AAPL). So this week we highlight one interesting put contract, and one interesting call contract, from the June 2024 expiration for AAPL. Selling a put does not give an investor access to AAPL's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised.
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19587.0
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2022-08-29 00:00:00 UTC
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EXCLUSIVE-Win for Qualcomm as no EU appeal court ruling against $991 mln fine - sources
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AAPL
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https://www.nasdaq.com/articles/exclusive-win-for-qualcomm-as-no-eu-appeal-court-ruling-against-%24991-mln-fine-sources
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nan
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nan
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By Foo Yun Chee
BRUSSELS, Aug 29 (Reuters) - EU antitrust regulators will not appeal a court ruling scrapping its 997-million-euro ($991 million) fine against Qualcomm QCOM.O, people familiar with the matter said, in a major win for the U.S. chipmaker that ends a long-running saga.
The Luxembourg-based General Court, Europe's second-highest, in its June judgment was scathing of the European Commission's handling of the case, saying procedural irregularities had affected Qualcomm's rights of defence.
Judges also invalidated the Commission's analysis that payments made by Qualcomm to Apple AAPL.O were anti-competitive because the regulator had not taken into account all the relevant facts.
It would be very difficult for the EU competition watchdog to win on both counts in an appeal, the people familiar with the matter said.
The judgment was a major setback for EU antitrust chief Margrethe Vestager, who has handed out billion-euro fines to Alphabet GOOGL.O unit Google and opened investigations into Amazon AMZN.O, Apple and Facebook owner Meta META.O as part of her crackdown on Big Tech.
The European Commission, which can appeal to the EU Court of Justice (CJEU) on points of law, declined to comment. Qualcomm found itself in the EU's crosshairs in 2015.
The Commission's decision not to contest the Court finding was not surprising, said Peter Alexiadis, visiting professor at King's College in London.
"Even if the Commission were to succeed on the substantive grounds of appeal, such a victory would be nothing more than Pyrrhic, given the fact that the Commission decision would nevertheless inevitably be annulled on the procedural grounds, where the Commission's case seems to be weak," he said.
An appeal might, however, force the court to clarify which exclusivity relationships held by dominant firms were problematic, Alexiadis said.
"It is nevertheless disappointing that the antitrust Bar does not have a chance to benefit from a CJEU ruling on the question of economic incentives to pursue exclusivity strategies," he said.
The EU competition enforcer, in its 2018 decision, said Qualcomm paid billions of dollars to Apple from 2011 to 2016 to use only its chips in all its iPhones and iPads in order to block out rivals such as Intel Corp INTC.O.
Vestager faces her next test on Sept. 14, when the General Court will rule on Google's challenge against a record 4.34-billion-euro antitrust fine imposed for using its Android mobile operating system to squeeze out rivals.
($1 = 1.0064 euros)
(Reporting by Foo Yun Chee; Editing by Emelia Sithole-Matarise)
((foo.yunchee@thomsonreuters.com; +32 2 287 6844; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Judges also invalidated the Commission's analysis that payments made by Qualcomm to Apple AAPL.O were anti-competitive because the regulator had not taken into account all the relevant facts. By Foo Yun Chee BRUSSELS, Aug 29 (Reuters) - EU antitrust regulators will not appeal a court ruling scrapping its 997-million-euro ($991 million) fine against Qualcomm QCOM.O, people familiar with the matter said, in a major win for the U.S. chipmaker that ends a long-running saga. The judgment was a major setback for EU antitrust chief Margrethe Vestager, who has handed out billion-euro fines to Alphabet GOOGL.O unit Google and opened investigations into Amazon AMZN.O, Apple and Facebook owner Meta META.O as part of her crackdown on Big Tech.
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Judges also invalidated the Commission's analysis that payments made by Qualcomm to Apple AAPL.O were anti-competitive because the regulator had not taken into account all the relevant facts. By Foo Yun Chee BRUSSELS, Aug 29 (Reuters) - EU antitrust regulators will not appeal a court ruling scrapping its 997-million-euro ($991 million) fine against Qualcomm QCOM.O, people familiar with the matter said, in a major win for the U.S. chipmaker that ends a long-running saga. The European Commission, which can appeal to the EU Court of Justice (CJEU) on points of law, declined to comment.
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Judges also invalidated the Commission's analysis that payments made by Qualcomm to Apple AAPL.O were anti-competitive because the regulator had not taken into account all the relevant facts. By Foo Yun Chee BRUSSELS, Aug 29 (Reuters) - EU antitrust regulators will not appeal a court ruling scrapping its 997-million-euro ($991 million) fine against Qualcomm QCOM.O, people familiar with the matter said, in a major win for the U.S. chipmaker that ends a long-running saga. The European Commission, which can appeal to the EU Court of Justice (CJEU) on points of law, declined to comment.
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Judges also invalidated the Commission's analysis that payments made by Qualcomm to Apple AAPL.O were anti-competitive because the regulator had not taken into account all the relevant facts. By Foo Yun Chee BRUSSELS, Aug 29 (Reuters) - EU antitrust regulators will not appeal a court ruling scrapping its 997-million-euro ($991 million) fine against Qualcomm QCOM.O, people familiar with the matter said, in a major win for the U.S. chipmaker that ends a long-running saga. The Luxembourg-based General Court, Europe's second-highest, in its June judgment was scathing of the European Commission's handling of the case, saying procedural irregularities had affected Qualcomm's rights of defence.
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19588.0
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2022-08-29 00:00:00 UTC
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Should You Invest in the Technology Select Sector SPDR ETF (XLK)?
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AAPL
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https://www.nasdaq.com/articles/should-you-invest-in-the-technology-select-sector-spdr-etf-xlk-3
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nan
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nan
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If you're interested in broad exposure to the Technology - Broad segment of the equity market, look no further than the Technology Select Sector SPDR ETF (XLK), a passively managed exchange traded fund launched on 12/16/1998.
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.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 8, placing it in top 50%.
Index Details
The fund is sponsored by State Street Global Advisors. It has amassed assets over $42.88 billion, making it the largest ETF attempting to match the performance of the Technology - Broad segment of the equity market. XLK seeks to match the performance of the Technology Select Sector Index before fees and expenses.
The Technology Select Sector Index includes companies from the following industries: computers & peripherals; software; diversified telecommunication services; communications equipment; semiconductor & semiconductor equipment; internet software & services; IT services; wireless telecommunication services; electronic equipment & instruments; and office electronics.
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 0.10%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.86%.
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 in the Information Technology sector--about 100% of the portfolio.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 24.36% of total assets, followed by Microsoft Corporation (MSFT) and Nvidia Corporation (NVDA).
The top 10 holdings account for about 66.35% of total assets under management.
Performance and Risk
The ETF has lost about -19.96% and is down about -9.85% so far this year and in the past one year (as of 08/29/2022), respectively. XLK has traded between $123.49 and $176.65 during this last 52-week period.
The ETF has a beta of 1.10 and standard deviation of 30.14% for the trailing three-year period, making it a medium risk choice in the space. With about 79 holdings, it effectively diversifies company-specific risk.
Alternatives
Technology Select Sector SPDR ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, XLK is an outstanding option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
ARK Innovation ETF (ARKK) tracks N/A and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. ARK Innovation ETF has $7.98 billion in assets, Vanguard Information Technology ETF has $44.90 billion. ARKK has an expense ratio of 0.75% and VGT charges 0.10%.
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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Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
ARK Innovation ETF (ARKK): ETF Research Reports
Vanguard Information Technology ETF (VGT): 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 24.36% of total assets, followed by Microsoft Corporation (MSFT) and Nvidia Corporation (NVDA). Apple Inc. (AAPL): Free Stock Analysis Report Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 24.36% of total assets, followed by Microsoft Corporation (MSFT) and Nvidia Corporation (NVDA). Apple Inc. (AAPL): Free Stock Analysis Report The Technology Select Sector Index includes companies from the following industries: computers & peripherals; software; diversified telecommunication services; communications equipment; semiconductor & semiconductor equipment; internet software & services; IT services; wireless telecommunication services; electronic equipment & instruments; and office electronics.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 24.36% of total assets, followed by Microsoft Corporation (MSFT) and Nvidia Corporation (NVDA). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives Technology Select Sector SPDR ETF holds a Zacks ETF Rank of 1 (Strong Buy), 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 24.36% of total assets, followed by Microsoft Corporation (MSFT) and Nvidia Corporation (NVDA). Apple Inc. (AAPL): Free Stock Analysis Report If you're interested in broad exposure to the Technology - Broad segment of the equity market, look no further than the Technology Select Sector SPDR ETF (XLK), a passively managed exchange traded fund launched on 12/16/1998.
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19589.0
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2022-08-29 00:00:00 UTC
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US STOCKS-Wall Street extends losses on rate hike worries
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-extends-losses-on-rate-hike-worries-0
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nan
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nan
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By Devik Jain and Anisha Sircar
Aug 29 (Reuters) - U.S. stock indexes fell on Monday, adding to a sharp selloff last week as investors worried about the Federal Reserve's plan to keep raising interest rates in its fight against inflation even at the cost of an economic slowdown.
Fed Chair Jerome Powell said on Friday that the U.S. economy would need tight monetary policy "for some time" before inflation is under control, quashing hopes of more modest rate hikes after recent data suggested price pressures were peaking.
"Investors are coming to terms with the idea that the Fed is serious about curbing inflation," Rod von Lipsey, managing director at UBS Private Wealth Management, said in a note.
"We believe the economic data justifies a 50 or 75 basis point rate hike at the September meeting, with the potential for additional 25 or 50 basis point rate hikes at the November and December meetings to stay ahead of inflationary trends."
Money market traders are pricing in a 64.5% chance of a third straight 75-basis-point interest rate hike in September and expect the Fed funds rate to end the year at around 3.7%. FEDWATCH
Heavyweight technology and growth stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O were down between 1.1% and 1.5%, hit by rising U.S. Treasury yields. US/
The U.S. two-year Treasury yield US2YT=RR, which is particularly sensitive to interest rate expectations, briefly scaled a 15-year high, while the closely watched yield curve measured by the gap between two and 10-year yields US2US10=TWEB remained strongly inverted. US/
An inversion is seen by many as a reliable signal of an impending recession.
At 10:13 a.m. ET, the Dow Jones Industrial Average .DJI was down 214.13 points, or 0.66%, at 32,069.27, the S&P 500 .SPX was down 20.78 points, or 0.51%, at 4,036.88, and the Nasdaq Composite .IXIC was down 69.95 points, or 0.58%, at 12,071.77.
The CBOE's volatility index .VIX, Wall Street's fear gauge, hit a seven-week high of 26.92 points.
The benchmark S&P 500 index .SPX has climbed nearly 11% since mid-June but is still in a bear market after plummeting early this year. Some investors fear a tough September due to seasonal weakness and nervousness about the economic pain from interest rate hikes.
"We went from the Powell 'put' in June to the Powell 'put down' in August. So the market that had rallied on his guidance from June had to pull that rally back out," said David Waddell, chief investment strategist at Waddell & Associates.
"The market is a trader's paradise right now ... the economic backdrop has to prove a reason to be optimistic. Until then the traders are just going to vacillate between optimism and pessimism based upon what the Fed says."
Energy stocks .SPNY climbed 2.5%, tracking a more than 2% jump in oil prices as potential OPEC+ output cuts and conflict in Libya helped to offset a strong U.S. dollar. O/R
Bristol Myers Squibb BMY.N slid 6.2% after its drug candidate for preventing ischemia strokes missed the main goal in a mid-stage trial.
Dow Inc DOW.N and Lyondell Basell Industries LYB.N fell 1.9% and 1.5%, respectively, after Keybanc downgraded the chemicals company's stocks to "underweight" from "sector weight".
Declining issues outnumbered advancers for a 2.16-to-1 ratio on the NYSE and for a 1.89-to-1 ratio on the Nasdaq.
The S&P index recorded 2 new 52-week highs and 20 new lows, while the Nasdaq recorded 11 new highs and 131 new lows.
(Reporting by Devik Jain and Anisha Sircar in Bengaluru; Editing by Aditya Soni)
((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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FEDWATCH Heavyweight technology and growth stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O were down between 1.1% and 1.5%, hit by rising U.S. Treasury yields. By Devik Jain and Anisha Sircar Aug 29 (Reuters) - U.S. stock indexes fell on Monday, adding to a sharp selloff last week as investors worried about the Federal Reserve's plan to keep raising interest rates in its fight against inflation even at the cost of an economic slowdown. Fed Chair Jerome Powell said on Friday that the U.S. economy would need tight monetary policy "for some time" before inflation is under control, quashing hopes of more modest rate hikes after recent data suggested price pressures were peaking.
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FEDWATCH Heavyweight technology and growth stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O were down between 1.1% and 1.5%, hit by rising U.S. Treasury yields. By Devik Jain and Anisha Sircar Aug 29 (Reuters) - U.S. stock indexes fell on Monday, adding to a sharp selloff last week as investors worried about the Federal Reserve's plan to keep raising interest rates in its fight against inflation even at the cost of an economic slowdown. "We believe the economic data justifies a 50 or 75 basis point rate hike at the September meeting, with the potential for additional 25 or 50 basis point rate hikes at the November and December meetings to stay ahead of inflationary trends."
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FEDWATCH Heavyweight technology and growth stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O were down between 1.1% and 1.5%, hit by rising U.S. Treasury yields. By Devik Jain and Anisha Sircar Aug 29 (Reuters) - U.S. stock indexes fell on Monday, adding to a sharp selloff last week as investors worried about the Federal Reserve's plan to keep raising interest rates in its fight against inflation even at the cost of an economic slowdown. "We believe the economic data justifies a 50 or 75 basis point rate hike at the September meeting, with the potential for additional 25 or 50 basis point rate hikes at the November and December meetings to stay ahead of inflationary trends."
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FEDWATCH Heavyweight technology and growth stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O were down between 1.1% and 1.5%, hit by rising U.S. Treasury yields. By Devik Jain and Anisha Sircar Aug 29 (Reuters) - U.S. stock indexes fell on Monday, adding to a sharp selloff last week as investors worried about the Federal Reserve's plan to keep raising interest rates in its fight against inflation even at the cost of an economic slowdown. Money market traders are pricing in a 64.5% chance of a third straight 75-basis-point interest rate hike in September and expect the Fed funds rate to end the year at around 3.7%.
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19590.0
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2022-08-29 00:00:00 UTC
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Best Stocks To Invest In Right Now? 2 FAANG Stocks To Watch
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AAPL
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https://www.nasdaq.com/articles/best-stocks-to-invest-in-right-now-2-faang-stocks-to-watch
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Should Investors Be Watching These Top FAANG Stocks In The Stock Market Today?
It’s no surprise that FAANG stocks have been beaten down in the stock market so far this year. Between rising inflation and increasing interest rates, FAANG stocks have had a rough start to the year, to say the least. For the uninitiated, FAANG stocks are the acronym for five of the most popular tech stocks in the market, comprising Meta Platforms (NASDAQ: META), Amazon, Apple, Netflix (NASDAQ: NFLX), and Alphabet Inc. (NASDAQ: GOOG). Additionally, FAANG stocks have significantly outperformed the overall stock market for years.
As a result, many investors believe that FAANG stocks will continue to be major players in the tech industry for years to come. While there is no guarantee that FAANG stocks will continue to perform well, many investors believe that these five companies are poised for continued success. If you’re keen on investing in FAANG stocks today, here are two top stocks to watch in the stock market today.
FAANG Stocks To Invest In [Or Avoid] Right Now
Amazon.com Inc. (NASDAQ: AMZN)
Apple Inc. (NASDAQ: AAPL)
Amazon (AMZN Stock)
First up, Amazon.com Inc. (AMZN) is an American multinational technology company with headquarters in Seattle, Washington. The company focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. In addition, AMZN has a broad range of products and services to compliment its online retail offerings. Most notably, Amazon has also developed a number of services to accompany its online retail offerings, such as Amazon Prime and Amazon Web Services. Just last month, the tech bemeoth announced its Q2 2022 financial results.
In detail, AMZN posted a earnings per share of $0.10, along with revenue of $121.2 billion. This is versus analysts’ consensus estimates for the quarter of earnings per share of $0.15, with revenue of $119.5 billion. What’s more, Amazon also announced upbeat guidance for the third quarter of 2022. In the letter to shareholders, it projects third-quarter revenue between the range of $125.0 billion to $130.0 billion.
Furthermore, this month Amazon announced they entered into an agreement to acquire iRobot. In detail, the company will acquire iRobot for $61 per share in an all-cash transaction valued at nearly $1.7 billion. Year-to-date, shares of AMZN are still down over 23%, which could present an opportunity for investors to buy AMZN stock at a discount. With that being said, do you think AMZN stock is a buy for your long-term portfolio now?
Source: TD Ameritrade TOS
[Read More] Top Stocks To Buy Now? 4 Warren Buffett Stocks To Watch
Apple (AAPL Stock)
Next up, Apple Inc. (AAPL) is an American multinational technology company based in Apple Park, Cupertino, California. The company designs, develops, and sells consumer electronics, computer software, and online services. Some of the most popular products the company produces include the iPhone, the iPad, the Mac personal computer, Apple Watch, and Apple TV, among others. Similar to Amazon, Apple also posted its most recent quarterly financial results in July.
Diving in, Apple notched earnings of $1.20 per share, with revenue of $83 billion. For context, this is compared with consensus estimates of earnings of $1.14 per share, on revenue of $82.4 billion. Meaning, AAPL reported better-than-expected third-quarter financial results. Moreover, Apple reported it projects Q4 revenue to be greater than $84.92 billion. Additionally, the company’s board of directors have declared a cash dividend of $0.23 per share of the Company’s common stock.
Luca Maestri, Apple’s CFO commented in their letter to shareholders, “Our June quarter results continued to demonstrate our ability to manage our business effectively despite the challenging operating environment. We set a June quarter revenue record and our installed base of active devices reached an all-time high in every geographic segment and product category. During the quarter, we generated nearly $23 billion in operating cash flow, returned over $28 billion to our shareholders, and continued to invest in our long-term growth plans.” On Monday, shares of AAPL stock are trading at $161.38 per share. Given all of this, is Apple stock a top FAANG stock to buy 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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FAANG Stocks To Invest In [Or Avoid] Right Now Amazon.com Inc. (NASDAQ: AMZN) Apple Inc. (NASDAQ: AAPL) Amazon (AMZN Stock) First up, Amazon.com Inc. (AMZN) is an American multinational technology company with headquarters in Seattle, Washington. 4 Warren Buffett Stocks To Watch Apple (AAPL Stock) Next up, Apple Inc. (AAPL) is an American multinational technology company based in Apple Park, Cupertino, California. Meaning, AAPL reported better-than-expected third-quarter financial results.
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FAANG Stocks To Invest In [Or Avoid] Right Now Amazon.com Inc. (NASDAQ: AMZN) Apple Inc. (NASDAQ: AAPL) Amazon (AMZN Stock) First up, Amazon.com Inc. (AMZN) is an American multinational technology company with headquarters in Seattle, Washington. 4 Warren Buffett Stocks To Watch Apple (AAPL Stock) Next up, Apple Inc. (AAPL) is an American multinational technology company based in Apple Park, Cupertino, California. Meaning, AAPL reported better-than-expected third-quarter financial results.
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FAANG Stocks To Invest In [Or Avoid] Right Now Amazon.com Inc. (NASDAQ: AMZN) Apple Inc. (NASDAQ: AAPL) Amazon (AMZN Stock) First up, Amazon.com Inc. (AMZN) is an American multinational technology company with headquarters in Seattle, Washington. 4 Warren Buffett Stocks To Watch Apple (AAPL Stock) Next up, Apple Inc. (AAPL) is an American multinational technology company based in Apple Park, Cupertino, California. Meaning, AAPL reported better-than-expected third-quarter financial results.
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During the quarter, we generated nearly $23 billion in operating cash flow, returned over $28 billion to our shareholders, and continued to invest in our long-term growth plans.” On Monday, shares of AAPL stock are trading at $161.38 per share. FAANG Stocks To Invest In [Or Avoid] Right Now Amazon.com Inc. (NASDAQ: AMZN) Apple Inc. (NASDAQ: AAPL) Amazon (AMZN Stock) First up, Amazon.com Inc. (AMZN) is an American multinational technology company with headquarters in Seattle, Washington. 4 Warren Buffett Stocks To Watch Apple (AAPL Stock) Next up, Apple Inc. (AAPL) is an American multinational technology company based in Apple Park, Cupertino, California.
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19591.0
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2022-08-29 00:00:00 UTC
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Why Dividend Stocks Could Soon Be More Attractive -- Thanks to Joe Biden
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AAPL
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https://www.nasdaq.com/articles/why-dividend-stocks-could-soon-be-more-attractive-thanks-to-joe-biden
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A stock that pays you every quarter (and, in some cases, monthly) to own it? Many investors like that idea. Unsurprisingly, dividend stocks tend to attract a lot of money.
As popular as dividend stocks already are, though, they could soon become even more attractive. And you can thank Joe Biden.
Image source: WhiteHouse.gov.
Clamping down on buybacks
President Biden signed the Inflation Reduction Act into law on Aug. 19. He referred to the legislation as "one of the most significant laws in our history." That's not an exaggeration.
For one thing, the bill funnels more money into addressing climate change (roughly $430 billion) than any previous effort. It also will allow Medicare to directly negotiate the prices of the costliest drugs for the first time in the program's history. This change holds the potential to bring upheaval to the pharmaceutical industry.
But there's another provision in the Inflation Reduction Act that hasn't received as much attention: The law will impose a 1% tax on corporate stock buybacks beginning in 2023.
Companies buy back their own shares as a way to return cash to shareholders. As shares are repurchased, it causes the value of existing shares to increase. Stock buybacks can also lead to higher earnings per share since the same amount of net income will be spread over fewer shares.
The additional tax will serve as a disincentive for companies to buy back their shares. However, it could be an incentive for some of these companies to reward shareholders with higher dividends.
Three examples
How might the 1% tax on buybacks change what companies do going forward? Let's look at three companies that pay dividends and rank among the top for stock buybacks so far in 2022.
Apple (NASDAQ: AAPL) spent $44.6 billion on share repurchases in the first two quarters of this calendar year. It returned $7.4 billion to shareholders in the form of dividends. If the Inflation Reduction Act had been effective Jan. 1, Apple would have had to pay a tax of $446 million on its stock buybacks. The company could have significantly boosted its dividend payout and paid no additional taxes.
Microsoft (NASDAQ: MSFT) stands out as another tech giant with huge stock buybacks. The company repurchased $15.6 billion of its stock in the first two quarters of calendar year 2022. It also paid $9.2 billion in dividends. Has Microsoft faced a 1% tax on those stock buybacks, the company could have opted to instead increase its dividend distributions.
Amgen (NASDAQ: AMGN) bought back more than $5.4 billion of its shares in the first quarter of 2022 with no repurchases in Q2. The big biotech also used roughly $2.1 billion to pay dividends in the first half of the year. Again, these amounts could easily have been skewed more toward dividends if the forthcoming tax on stock buybacks had been in place.
Paying dividends
Would companies really be more likely to boost their dividends because of the Inflation Reduction Act's new tax? An analysis by the Tax Policy Center estimates that corporate dividend payouts could increase by 1.5% as a result of a 1% tax on share buybacks.
However, there are a couple of drawbacks for companies with raising their dividends rather than using surplus cash to repurchase shares. Once a company increases its dividend, cutting the dividend in the future could anger shareholders. Stock buybacks don't have this problem.
Also, shareholders must pay taxes on dividends. Those tax rates will typically be a lot higher than 1%. Companies could take this tax implication into account when making decisions on how to allocate capital.
But this was part of the rationale behind the inclusion of the new tax in the Inflation Reduction Act. Taxing stock buybacks will pay dividends to Uncle Sam regardless of what companies such as Apple, Microsoft, and Amgen do.
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Keith Speights has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Apple and Microsoft. The Motley Fool recommends Amgen and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) spent $44.6 billion on share repurchases in the first two quarters of this calendar year. For one thing, the bill funnels more money into addressing climate change (roughly $430 billion) than any previous effort. But there's another provision in the Inflation Reduction Act that hasn't received as much attention: The law will impose a 1% tax on corporate stock buybacks beginning in 2023.
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Apple (NASDAQ: AAPL) spent $44.6 billion on share repurchases in the first two quarters of this calendar year. The company could have significantly boosted its dividend payout and paid no additional taxes. Taxing stock buybacks will pay dividends to Uncle Sam regardless of what companies such as Apple, Microsoft, and Amgen do.
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Apple (NASDAQ: AAPL) spent $44.6 billion on share repurchases in the first two quarters of this calendar year. Has Microsoft faced a 1% tax on those stock buybacks, the company could have opted to instead increase its dividend distributions. Paying dividends Would companies really be more likely to boost their dividends because of the Inflation Reduction Act's new tax?
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Apple (NASDAQ: AAPL) spent $44.6 billion on share repurchases in the first two quarters of this calendar year. Also, shareholders must pay taxes on dividends. Taxing stock buybacks will pay dividends to Uncle Sam regardless of what companies such as Apple, Microsoft, and Amgen do.
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19592.0
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2022-08-29 00:00:00 UTC
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Is iShares Core S&P U.S. Growth ETF (IUSG) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-ishares-core-sp-u.s.-growth-etf-iusg-a-strong-etf-right-now-3
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Launched on 07/24/2000, the iShares Core S&P U.S. Growth ETF (IUSG) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is sponsored by Blackrock. It has amassed assets over $11.70 billion, making it one of the largest ETFs in the Style Box - All Cap Growth. This particular fund seeks to match the performance of the S&P 900 Growth Index before fees and expenses.
The S&P 900 Growth Index measures the performance of the large and mid-capitalization growth sector of the U.S. equity market.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for IUSG are 0.04%, which makes it one of the least expensive products in the space.
It's 12-month trailing dividend yield comes in at 0.81%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
IUSG's heaviest allocation is in the Information Technology sector, which is about 45.90% of the portfolio. Its Healthcare and Consumer Discretionary round out the top three.
Taking into account individual holdings, Apple Inc (AAPL) accounts for about 12.83% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 49.94% of total assets under management.
Performance and Risk
So far this year, IUSG has lost about -20.73%, and is down about -13.33% in the last one year (as of 08/29/2022). During this past 52-week period, the fund has traded between $80.61 and $117.16.
The fund has a beta of 1.06 and standard deviation of 26.31% for the trailing three-year period, which makes IUSG a medium risk choice in this particular space. With about 480 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core S&P U.S. Growth ETF is an excellent option for investors seeking to outperform the Style Box - All Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
First Trust US Equity Opportunities ETF (FPX) tracks IPOX-100 U.S. Index and the iShares Morningstar Growth ETF (ILCG) tracks MORNINGSTAR US LARGE-MID CP BRD GRWTH ID. First Trust US Equity Opportunities ETF has $1.09 billion in assets, iShares Morningstar Growth ETF has $1.67 billion. FPX has an expense ratio of 0.57% and ILCG charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Growth.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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iShares Core S&P U.S. Growth ETF (IUSG): 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
First Trust US Equity Opportunities ETF (FPX): ETF Research Reports
iShares Morningstar Growth ETF (ILCG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 12.83% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 12.83% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 07/24/2000, the iShares Core S&P U.S. Growth ETF (IUSG) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 12.83% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 07/24/2000, the iShares Core S&P U.S. Growth ETF (IUSG) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 12.83% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 07/24/2000, the iShares Core S&P U.S. Growth ETF (IUSG) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market.
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19593.0
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2022-08-29 00:00:00 UTC
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EXCLUSIVE-EU will not appeal court ruling against $991 mln Qualcomm fine - sources
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AAPL
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https://www.nasdaq.com/articles/exclusive-eu-will-not-appeal-court-ruling-against-%24991-mln-qualcomm-fine-sources-0
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By Foo Yun Chee
BRUSSELS, Aug 29 (Reuters) - EU antitrust regulators will not appeal a court ruling scrapping its 997-million-euro ($991 million) fine against U.S. chipmaker Qualcomm QCOM.O because it would be difficult to convince Europe's top court of the merits, people familiar with the matter said.
The Luxembourg-based General Court, Europe's second-highest, in its June judgment was scathing of the European Commission's handling of the case, saying procedural irregularities had affected Qualcomm's rights of defence.
Judges also invalidated the Commission's analysis that payments made by Qualcomm to Apple AAPL.O were anti-competitive because the regulator had not taken into account all the relevant facts.
The judgment was a major setback for EU antitrust chief Margrethe Vestager who has handed out billion-euro fines to Alphabet GOOGL.O unit Google and opened investigations into Amazon AMZN.O, Apple and Meta META.O as part of her crackdown on Big Tech.
The European Commission, which can appeal to the EU Court of Justice (CJEU) on points of law, declined to comment.
The EU competition enforcer in its 2018 decision said Qualcomm paid billions of dollars to Apple from 2011 to 2016 to use only its chips in all its iPhones and iPads in order to block out rivals such as Intel Corp INTC.O.
Vestager faces her next test on Sept. 14 when the General Court will rule on Google's challenge against a record 4.34-billion-euro antitrust fine imposed for using its Android mobile operating system to squeeze out rivals.
($1 = 1.0064 euros)
(Reporting by Foo Yun Chee; Editing by Emelia Sithole-Matarise)
((foo.yunchee@thomsonreuters.com; +32 2 287 6844; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Judges also invalidated the Commission's analysis that payments made by Qualcomm to Apple AAPL.O were anti-competitive because the regulator had not taken into account all the relevant facts. The Luxembourg-based General Court, Europe's second-highest, in its June judgment was scathing of the European Commission's handling of the case, saying procedural irregularities had affected Qualcomm's rights of defence. The judgment was a major setback for EU antitrust chief Margrethe Vestager who has handed out billion-euro fines to Alphabet GOOGL.O unit Google and opened investigations into Amazon AMZN.O, Apple and Meta META.O as part of her crackdown on Big Tech.
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Judges also invalidated the Commission's analysis that payments made by Qualcomm to Apple AAPL.O were anti-competitive because the regulator had not taken into account all the relevant facts. By Foo Yun Chee BRUSSELS, Aug 29 (Reuters) - EU antitrust regulators will not appeal a court ruling scrapping its 997-million-euro ($991 million) fine against U.S. chipmaker Qualcomm QCOM.O because it would be difficult to convince Europe's top court of the merits, people familiar with the matter said. The Luxembourg-based General Court, Europe's second-highest, in its June judgment was scathing of the European Commission's handling of the case, saying procedural irregularities had affected Qualcomm's rights of defence.
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Judges also invalidated the Commission's analysis that payments made by Qualcomm to Apple AAPL.O were anti-competitive because the regulator had not taken into account all the relevant facts. By Foo Yun Chee BRUSSELS, Aug 29 (Reuters) - EU antitrust regulators will not appeal a court ruling scrapping its 997-million-euro ($991 million) fine against U.S. chipmaker Qualcomm QCOM.O because it would be difficult to convince Europe's top court of the merits, people familiar with the matter said. The Luxembourg-based General Court, Europe's second-highest, in its June judgment was scathing of the European Commission's handling of the case, saying procedural irregularities had affected Qualcomm's rights of defence.
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Judges also invalidated the Commission's analysis that payments made by Qualcomm to Apple AAPL.O were anti-competitive because the regulator had not taken into account all the relevant facts. By Foo Yun Chee BRUSSELS, Aug 29 (Reuters) - EU antitrust regulators will not appeal a court ruling scrapping its 997-million-euro ($991 million) fine against U.S. chipmaker Qualcomm QCOM.O because it would be difficult to convince Europe's top court of the merits, people familiar with the matter said. The Luxembourg-based General Court, Europe's second-highest, in its June judgment was scathing of the European Commission's handling of the case, saying procedural irregularities had affected Qualcomm's rights of defence.
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19594.0
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2022-08-29 00:00:00 UTC
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US STOCKS-Wall Street set to extend losses on rate worries
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-set-to-extend-losses-on-rate-worries
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nan
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nan
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By Devik Jain and Anisha Sircar
Aug 29 (Reuters) - U.S. stock indexes were set to open lower on Monday on worries over the Federal Reserve's plan to keep raising interest rates in its fight against inflation even at the cost of an economic slowdown.
Fed Chair Jerome Powell said on Friday that the U.S. economy would need tight monetary policy "for some time" before inflation is under control, knocking Wall Street's main indexes down more than 3%.
Powell's blunt and hawkish remarks quashed hopes that the U.S. central bank will resort to modest rate hikes after recent data suggested that price pressures were easing.
Money market traders are pricing in a 64.5% chance of a third straight 75-basis-point interest rate hike in September and expect the Fed funds rate to end the year around 3.7%. FEDWATCH
The benchmark S&P 500 index .SPX has climbed 11.6% since mid-June but is still in a bear market after plummeting early this year. Some investors fear a tough September due to seasonal weakness and nervousness about the economic pain from interest rate hikes.
"We went from the Powell 'put' in June to the Powell 'put down' in August. So the market that had rallied on his guidance from June had to pull that rally back out," said David Waddell, chief investment strategist at Waddell & Associates.
"The market is a trader's paradise right now ... the economic backdrop has to prove a reason to be optimistic. Until then the traders are just going to vacillate between optimism and pessimism based upon what the Fed says."
Heavyweight technology and growth stocks such as Apple Inc AAPL.O, Amazon.com AMZN.O, Nvidia Corp NVDA.O and Tesla Inc TSLA.O were down between 1.3% and 2.1% in premarket trading, hit by rising U.S. Treasury yields. US/
The U.S. two-year Treasury yield US2YT=RR, which is particularly sensitive to interest rate expectations, briefly scaled a 15-year high, while the closely watched yield curve measured by the gap between two and 10-year yields US2US10=TWEB remained strongly inverted. US/
An inversion is seen by many as a reliable signal of an impending recession.
The CBOE's volatility index .VIX, Wall Street's fear gauge, hit a seven-week high of 27.39 points.
At 08:23 a.m. ET, Dow e-minis 1YMcv1 were down 256 points, or 0.79%, S&P 500 e-minis EScv1 were down 35.75 points, or 0.88%, and Nasdaq 100 e-minis NQcv1 were down 136.5 points, or 1.08%.
Focus this week will be on the August non-farm payrolls data on Friday, as a cooldown in the job market could ease pressure on the Fed to raise rates aggressively.
Lyondell Basell Industries LYB.N fell 2.5% after Keybanc downgraded the chemicals company's stock to "underweight" from "sector weight".
U.S.-listed shares of Pinduoduo Inc PDD.O climbed 11.2% after the Shanghai-based company reported upbeat quarterly revenue, as a strict lockdown in several COVID-hit Chinese cities kept up demand for online shopping.
(Reporting by Devik Jain and Anisha Sircar in Bengaluru; Editing by Aditya Soni)
((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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Heavyweight technology and growth stocks such as Apple Inc AAPL.O, Amazon.com AMZN.O, Nvidia Corp NVDA.O and Tesla Inc TSLA.O were down between 1.3% and 2.1% in premarket trading, hit by rising U.S. Treasury yields. By Devik Jain and Anisha Sircar Aug 29 (Reuters) - U.S. stock indexes were set to open lower on Monday on worries over the Federal Reserve's plan to keep raising interest rates in its fight against inflation even at the cost of an economic slowdown. Powell's blunt and hawkish remarks quashed hopes that the U.S. central bank will resort to modest rate hikes after recent data suggested that price pressures were easing.
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Heavyweight technology and growth stocks such as Apple Inc AAPL.O, Amazon.com AMZN.O, Nvidia Corp NVDA.O and Tesla Inc TSLA.O were down between 1.3% and 2.1% in premarket trading, hit by rising U.S. Treasury yields. By Devik Jain and Anisha Sircar Aug 29 (Reuters) - U.S. stock indexes were set to open lower on Monday on worries over the Federal Reserve's plan to keep raising interest rates in its fight against inflation even at the cost of an economic slowdown. Money market traders are pricing in a 64.5% chance of a third straight 75-basis-point interest rate hike in September and expect the Fed funds rate to end the year around 3.7%.
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Heavyweight technology and growth stocks such as Apple Inc AAPL.O, Amazon.com AMZN.O, Nvidia Corp NVDA.O and Tesla Inc TSLA.O were down between 1.3% and 2.1% in premarket trading, hit by rising U.S. Treasury yields. By Devik Jain and Anisha Sircar Aug 29 (Reuters) - U.S. stock indexes were set to open lower on Monday on worries over the Federal Reserve's plan to keep raising interest rates in its fight against inflation even at the cost of an economic slowdown. Money market traders are pricing in a 64.5% chance of a third straight 75-basis-point interest rate hike in September and expect the Fed funds rate to end the year around 3.7%.
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Heavyweight technology and growth stocks such as Apple Inc AAPL.O, Amazon.com AMZN.O, Nvidia Corp NVDA.O and Tesla Inc TSLA.O were down between 1.3% and 2.1% in premarket trading, hit by rising U.S. Treasury yields. Money market traders are pricing in a 64.5% chance of a third straight 75-basis-point interest rate hike in September and expect the Fed funds rate to end the year around 3.7%. "We went from the Powell 'put' in June to the Powell 'put down' in August.
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19595.0
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2022-08-29 00:00:00 UTC
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US STOCKS-Wall Street extends losses on rate hike worries
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-extends-losses-on-rate-hike-worries
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nan
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nan
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By Devik Jain and Anisha Sircar
Aug 29 (Reuters) - U.S. stock indexes fell on Monday on worries over the Federal Reserve's plan to keep raising interest rates in its fight against inflation even at the cost of an economic slowdown.
Fed Chair Jerome Powell said on Friday that the U.S. economy would need tight monetary policy "for some time" before inflation is under control, knocking Wall Street's main indexes down more than 3%.
Powell's blunt and hawkish remarks quashed hopes that the U.S. central bank will resort to modest rate hikes after recent data suggested that price pressures were easing.
Heavyweight technology and growth stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O were down between 0.6% and 1.3% in early trading, hit by rising U.S. Treasury yields. US/
The U.S. two-year Treasury yield US2YT=RR, which is particularly sensitive to interest rate expectations, briefly scaled a 15-year high, while the closely watched yield curve measured by the gap between two and 10-year yields US2US10=TWEB remained strongly inverted. US/
An inversion is seen by many as a reliable signal of an impending recession.
At 09:33 a.m. ET, the Dow Jones Industrial Average .DJI was down 265.07 points, or 0.82%, at 32,018.33, the S&P 500 .SPX was down 29.87 points, or 0.74%, at 4,027.79, and the Nasdaq Composite .IXIC was down 82.76 points, or 0.68%, at 12,058.95.
The CBOE's volatility index .VIX, Wall Street's fear gauge, hit a seven-week high of 27.03 points.
Energy stocks .SPNY rose 0.7%, tracking a more than 1% rise in oil prices as potential OPEC+ output cuts and conflict in Libya helped to offset a strong U.S. dollar. O/R
Declining issues outnumbered advancers for a 6.06-to-1 ratio on the NYSE and 3.60-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week highs and 18 new lows, while the Nasdaq recorded 8 new highs and 104 new lows.
(Reporting by Devik Jain and Anisha Sircar in Bengaluru; Editing by Aditya Soni)
((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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Heavyweight technology and growth stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O were down between 0.6% and 1.3% in early trading, hit by rising U.S. Treasury yields. By Devik Jain and Anisha Sircar Aug 29 (Reuters) - U.S. stock indexes fell on Monday on worries over the Federal Reserve's plan to keep raising interest rates in its fight against inflation even at the cost of an economic slowdown. Fed Chair Jerome Powell said on Friday that the U.S. economy would need tight monetary policy "for some time" before inflation is under control, knocking Wall Street's main indexes down more than 3%.
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Heavyweight technology and growth stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O were down between 0.6% and 1.3% in early trading, hit by rising U.S. Treasury yields. By Devik Jain and Anisha Sircar Aug 29 (Reuters) - U.S. stock indexes fell on Monday on worries over the Federal Reserve's plan to keep raising interest rates in its fight against inflation even at the cost of an economic slowdown. The CBOE's volatility index .VIX, Wall Street's fear gauge, hit a seven-week high of 27.03 points.
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Heavyweight technology and growth stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O were down between 0.6% and 1.3% in early trading, hit by rising U.S. Treasury yields. By Devik Jain and Anisha Sircar Aug 29 (Reuters) - U.S. stock indexes fell on Monday on worries over the Federal Reserve's plan to keep raising interest rates in its fight against inflation even at the cost of an economic slowdown. US/ The U.S. two-year Treasury yield US2YT=RR, which is particularly sensitive to interest rate expectations, briefly scaled a 15-year high, while the closely watched yield curve measured by the gap between two and 10-year yields US2US10=TWEB remained strongly inverted.
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Heavyweight technology and growth stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Tesla Inc TSLA.O were down between 0.6% and 1.3% in early trading, hit by rising U.S. Treasury yields. By Devik Jain and Anisha Sircar Aug 29 (Reuters) - U.S. stock indexes fell on Monday on worries over the Federal Reserve's plan to keep raising interest rates in its fight against inflation even at the cost of an economic slowdown. Powell's blunt and hawkish remarks quashed hopes that the U.S. central bank will resort to modest rate hikes after recent data suggested that price pressures were easing.
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19596.0
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2022-08-29 00:00:00 UTC
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This Under-the-Radar Apple Business Is Growing By Leaps and Bounds
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AAPL
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https://www.nasdaq.com/articles/this-under-the-radar-apple-business-is-growing-by-leaps-and-bounds
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nan
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nan
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There's little question the iPhone remains both the flagship product and the chief money maker for Apple (NASDAQ: AAPL). The device accounted for roughly 52% of the tech giant's sales over the past 12 months, just as it did during the prior-year period. The popularity of the iPhone makes it difficult for any other product or service to move the needle for the company.
That said, Apple has an under-the-radar service that has quietly, and without much fanfare, become one of the company's fastest-growing revenue streams.
How do you want to pay for that?
Most investors don't even give Apple Pay a second thought, yet the iPhone's digital payment method has risen from relative obscurity when it was introduced in late 2014 to being indispensable for a large and growing number of iPhone users.
Consider this: About 10% of iPhone users had activated Apple Pay by 2016, according to research provided by venture capital firm Loup Ventures. That percentage doubled in 2017 and again in 2018. By 2020, activations had risen to 50%. The need for touch-free payment methods during the pandemic drove a surge of use, pushing activations to 75%. It's worth noting that just because Apple Pay is activated doesn't necessarily mean it's being used, but the trend is undeniable.
Apple Pay is also much more widely accepted now than it was in the early days. When it was introduced, only about 3% of retailers had the technology necessary to accept contactless payments. Now roughly 90% of merchants in the U.S. accept Apple Pay.
Perhaps more importantly, Apple Pay is the leading payment app among teens, outpacing even PayPal's Venmo, according to Piper Sandler's semiannual Taking Stock With Teens survey. This suggests that Apple Pay could become even bigger as members of Generation Z -- the largest demographic yet -- become the primary breadwinners.
Move the needle? Not bloody likely.
So what does this mean for Apple in terms of revenue? The truth is that given the massive size of its iPhone business -- which generated more than $200 billion in sales over the last 12 months -- it's unlikely that any other single business will move the needle for Apple, but the numbers are compelling nonetheless. Apple Pay generates billions of dollars in revenue for the iPhone maker.
Apple's total revenue amounted to more than $387 billion over the trailing 12-month period. The company doesn't provide specific details regarding Apple Pay's contribution, but estimates suggest it accounts for roughly 1% of the total, or $3.88 billion, according to Loup Ventures.
That's not all. While the U.S. has long lagged other developed nations in contactless payments, its overall adoption has reached a tipping point. This is thanks in part to pandemic-related safety protocols and greater acceptance of touchless payments by consumers.
A bigger piece of a growing pie
In its first-quarter earnings call, Visa (NYSE: V) revealed that it is "nearing 20% tap-to-pay penetration with key metro cities showing even stronger growth." The company said that a host of large cities, including Los Angeles, Miami, and Seattle, all exceeded 25% penetration. San Francisco, San Jose, and Oakland had surpassed 30%, and New York topped the list at 45%. This suggests that the overall adoption of touch-free payments is growing and Apple is well-positioned to reap the rewards.
Apple's influence isn't limited to the U.S. Early last year, the company reported it had a base of more than 1 billion active iPhones worldwide, a number that has no doubt increased in the year and a half since. Furthermore, Apple Pay is supported in 73 countries and regions around the world, a list that grows larger each year.
The iPhone will remain Apple's primary breadwinner for the foreseeable future. That said, Apple Pay is just one piece of a large and growing puzzle that should help drive Apple stock higher for years to come.
10 stocks we like better than Apple
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Danny Vena has positions in Apple and PayPal Holdings and has the following options: long January 2024 $95 calls on PayPal Holdings. The Motley Fool has positions in and recommends Apple, PayPal Holdings, and Visa. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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There's little question the iPhone remains both the flagship product and the chief money maker for Apple (NASDAQ: AAPL). The company doesn't provide specific details regarding Apple Pay's contribution, but estimates suggest it accounts for roughly 1% of the total, or $3.88 billion, according to Loup Ventures. A bigger piece of a growing pie In its first-quarter earnings call, Visa (NYSE: V) revealed that it is "nearing 20% tap-to-pay penetration with key metro cities showing even stronger growth."
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There's little question the iPhone remains both the flagship product and the chief money maker for Apple (NASDAQ: AAPL). The company doesn't provide specific details regarding Apple Pay's contribution, but estimates suggest it accounts for roughly 1% of the total, or $3.88 billion, according to Loup Ventures. The Motley Fool has positions in and recommends Apple, PayPal Holdings, and Visa.
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There's little question the iPhone remains both the flagship product and the chief money maker for Apple (NASDAQ: AAPL). Most investors don't even give Apple Pay a second thought, yet the iPhone's digital payment method has risen from relative obscurity when it was introduced in late 2014 to being indispensable for a large and growing number of iPhone users. That said, Apple Pay is just one piece of a large and growing puzzle that should help drive Apple stock higher for years to come.
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There's little question the iPhone remains both the flagship product and the chief money maker for Apple (NASDAQ: AAPL). How do you want to pay for that? Apple Pay generates billions of dollars in revenue for the iPhone maker.
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19597.0
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2022-08-29 00:00:00 UTC
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The 2 Best Stocks to Buy Right Now
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AAPL
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https://www.nasdaq.com/articles/the-2-best-stocks-to-buy-right-now
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nan
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nan
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Last Friday, Federal Reserve Chairman Jerome Powell delivered a serious blow to U.S. stock markets. Specifically, Powell said the Federal Reserve will continue to raise interest rates until it is confident that inflation is under control. These remarks halted the recent upward trend across the varied U.S. stock landscape. The key reason for this abrupt trend reversal is that Wall Street was expecting the Federal Reserve to back away from its aggressive interest rate hike strategy heading into 2023.
The Federal Reserve's battle to tamp down inflation has pushed every major U.S. stock index deep into the red for the year. Since the start of 2022, the S&P 500 has dropped by 14%, the Dow Jones Industrial Average has lost 9.97% of its value, the Nasdaq Composite has sunk by a hefty 22%, and the Russell 1000 has plunged by nearly 15%. While the veracity of this current bear market is indeed concerning, investors ought not lose sight of the fact that down periods in U.S. stock markets tend to be short lived. Put simply, savvy investors shouldn't be afraid to take advantage of this widespread sell-off.
Image source: Getty Images.
Keeping with this theme, Apple (NASDAQ: AAPL) and Tandem Diabetes Care (NASDAQ: TNDM) are two beaten-down stocks that ought to come roaring back to life once this latest bear market fades from view.
Apple: A competitive moat like no other
Technology giant Apple has lost nearly 8% of its value this year. Investors have been selling the company's shares in 2022 over fears that inflation will slow consumer spending. While inflation has indeed hit certain industries and companies in recent weeks, Apple has been the exception to this general rule. In its most recent quarter, Apple posted a respectable 2% increase in revenue year over year, powered by rising sales of its iconic iPhone and its increasingly popular services segment.
Not surprisingly, classic value investors like Warren Buffett have been taking advantage of this recent weakness in Apple's shares. In the second quarter of 2022, Buffett's diversified holding company, Berkshire Hathaway, scooped up a whopping 3,878,909 of Apple's shares. As a result, Berkshire now owns a healthy 5.5% stake in the tech behemoth.
What does Berkshire see in this tech stock? The bottom line is that Apple's beloved products like the iPhone and iPad sport a rock solid competitive moat in the marketplace. Short-term economic headwinds aren't going to change this fact. Apple's stock, in turn, ought to regain its forward momentum at some point in the near future.
Tandem Diabetes Care: Growth galore
Shares of the insulin pump technology specialist Tandem Diabetes Care have crashed in 2022. Specifically, the medical device company's stock has fallen by an eye-popping 68% this year. The good news, if you can call it that, is that Tandem's sizable downturn has been spurred mostly by profit-taking, although the company's recent downward revision for its 2022 sales guidance certainly didn't help matters.
Why is profit-taking the key culprit behind Tandem's sudden trend reversal? The backstory is that Tandem's stock gained a monstrous 6,280% over the period covering Jan. 1, 2018, to Jan. 1, 2022. As a result, its shares were trading at a hefty premium at the start of 2022.
Unfortunately, this risk-averse market hasn't been kind to medical device stocks trading at rich premiums. Tandem's stock, in short, was clearly a victim of this unrelenting wave of profit-taking across premium-laden equities in the medical device space.
In the wake of this move lower, however, Tandem's shares are arguably a downright bargain right now. The main reason investors ought to circle back to this beaten-down stock is the fact that the company's insulin pump platform has an enormous growth opportunity in front of it.
Tandem's shares, in fact, might be trading at as little as 0.5 times 2030 sales right now. Now, there are several moving parts associated with this long-term financial projection. But the fact is that there will continue to be a large and growing need for Tandem's diabetes care products for a long time to come. This bodes extremely well for the medical device company's long-term outlook.
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
George Budwell has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Keeping with this theme, Apple (NASDAQ: AAPL) and Tandem Diabetes Care (NASDAQ: TNDM) are two beaten-down stocks that ought to come roaring back to life once this latest bear market fades from view. The key reason for this abrupt trend reversal is that Wall Street was expecting the Federal Reserve to back away from its aggressive interest rate hike strategy heading into 2023. The good news, if you can call it that, is that Tandem's sizable downturn has been spurred mostly by profit-taking, although the company's recent downward revision for its 2022 sales guidance certainly didn't help matters.
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Keeping with this theme, Apple (NASDAQ: AAPL) and Tandem Diabetes Care (NASDAQ: TNDM) are two beaten-down stocks that ought to come roaring back to life once this latest bear market fades from view. Tandem Diabetes Care: Growth galore Shares of the insulin pump technology specialist Tandem Diabetes Care have crashed in 2022. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple.
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Keeping with this theme, Apple (NASDAQ: AAPL) and Tandem Diabetes Care (NASDAQ: TNDM) are two beaten-down stocks that ought to come roaring back to life once this latest bear market fades from view. See the 10 stocks *Stock Advisor returns as of August 17, 2022 George Budwell has no position in any of the stocks mentioned. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple.
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Keeping with this theme, Apple (NASDAQ: AAPL) and Tandem Diabetes Care (NASDAQ: TNDM) are two beaten-down stocks that ought to come roaring back to life once this latest bear market fades from view. Tandem's shares, in fact, might be trading at as little as 0.5 times 2030 sales right now. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares).
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19598.0
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2022-08-29 00:00:00 UTC
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The Zacks Analyst Blog Highlights Apple, Alibaba, Bristol-Myers Squibb, Tesla and Cigna
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AAPL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-apple-alibaba-bristol-myers-squibb-tesla-and-cigna
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nan
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nan
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For Immediate Release
Chicago, IL – August 29, 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, Alibaba Group Holding Ltd. BABA, Bristol-Myers Squibb Co. BMY, Tesla, Inc. TSLA and Cigna Corp. CI.
Here are highlights from Friday’s Analyst Blog:
Top Analyst Reports for Apple, Alibaba and Bristol-Myers Squibb
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Apple Inc., Alibaba Group Holding Ltd. and Bristol-Myers Squibb Co.. 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 +15.1% over the past year, roughly in line with the Zacks Computer - Mini computers industry's gain of +15.4%. The company's third-quarter fiscal 2022 results benefited from strong iPhone sales and continued momentum in the Services business. The segment benefited from the robust performance of Apple TV+, partially offset by unfavorable forex, the absence of revenues from Russia and the challenging macroeconomic environment.
However, iPad sales were hurt by supply-chain constraints. 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 >>>)
Alibaba's shares have declined -36.0% over the past year against the Zacks Internet - Commerce industry's decline of -28.6%. The Zacks analyst believes that the resurgence of COVID-19 in China remained a major headwind for the company during the reported quarter.
We believe disruptions led by the coronavirus pandemic are likely to persist as concerns for Alibaba's domestic businesses. Further sluggishness in online physical goods' GMV at Taobao and Tmall marketplaces remains an overhang.
However, Alibaba's fiscal first quarter results were driven by solid momentum across Alibaba's China commerce and International commerce wholesale businesses. Also, strength across the local consumer services, cloud computing business and Cainiao logistics services contributed well to the top-line growth.
Further, contributions from direct sales businesses like Alibaba Health and Freshippo continue to remain tailwinds.
(You can read the full research report on Alibaba here >>>)
Bristol-Myers Squibb shares have outperformed the Zacks Medical - Biomedical and Genetics industry over the past year (+10.9% vs. -37.7%). The company's performance in the second quarter of 2022 was strong as earnings and sales beat estimates on the back of solid demand for Eliquis and label expansion of Opdivo. Eliquis is the leading oral anticoagulant drug and continues to experience growth in its market share.
The label expansion of Opdivo into indications of lung cancer, renal cancer and gastric cancer boosted sales. The recent approval of drugs adds a new stream of revenues, which should boost growth in the coming quarters. The pipeline progress has been impressive and strategic collaborations will further expand the portfolio.
However, one of the top revenue generators Revlimid is facing generics, which will adversely impact sales. Moreover, competition is stiff for Opdivo.
(You can read the full research report on Bristol-Myers Squibb here >>>)
Other noteworthy reports we are featuring today include Tesla, Inc. and Cigna Corp..
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>>>
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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.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
Bristol Myers Squibb Company (BMY): Free Stock Analysis Report
Cigna Corporation (CI): Free Stock Analysis Report
Tesla, Inc. (TSLA): Free Stock Analysis Report
Alibaba Group Holding Limited (BABA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include: Apple Inc. AAPL, Alibaba Group Holding Ltd. BABA, Bristol-Myers Squibb Co. BMY, Tesla, Inc. TSLA and Cigna Corp. CI. Apple Inc. (AAPL): Free Stock Analysis Report (You can read the full research report on Alibaba here >>>) Bristol-Myers Squibb shares have outperformed the Zacks Medical - Biomedical and Genetics industry over the past year (+10.9% vs. -37.7%).
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Stocks recently featured in the blog include: Apple Inc. AAPL, Alibaba Group Holding Ltd. BABA, Bristol-Myers Squibb Co. BMY, Tesla, Inc. TSLA and Cigna Corp. CI. Apple Inc. (AAPL): Free Stock Analysis Report Here are highlights from Friday’s Analyst Blog: Top Analyst Reports for Apple, Alibaba and Bristol-Myers Squibb 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, Alibaba Group Holding Ltd. BABA, Bristol-Myers Squibb Co. BMY, Tesla, Inc. TSLA and Cigna Corp. CI. Apple Inc. (AAPL): Free Stock Analysis Report Here are highlights from Friday’s Analyst Blog: Top Analyst Reports for Apple, Alibaba and Bristol-Myers Squibb 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, Alibaba Group Holding Ltd. BABA, Bristol-Myers Squibb Co. BMY, Tesla, Inc. TSLA and Cigna Corp. CI. Apple Inc. (AAPL): Free Stock Analysis Report These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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19599.0
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2022-08-29 00:00:00 UTC
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Is Snowflake Stock A Buy After Solid Q2 Earnings?
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AAPL
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https://www.nasdaq.com/articles/is-snowflake-stock-a-buy-after-solid-q2-earnings
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nan
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nan
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Snowflake (NYSE:SNOW) published a strong set of Q2 FY’23 results and raised its guidance for the full year, as demand for cloud data warehousing solutions soared despite mounting economic headwinds and mixed earnings reports from many other SaaS players. Snowflake’s revenue handily beat estimates, rising 83% year-over-year to $497 million, while adjusted operating margins came in at 4%, compared to the company’s forecast of -2%. The company also generated free cash flows, with cash flow margins standing at about 12%. Snowflake’s key metrics also remained strong across the board, with net revenue retention standing at 171%, indicating that the company is able to expand business with its existing customers. Snowflake’s remaining performance obligations, which is an estimate of future business, stood at $2.7 billion, up 78% versus last year. Snowflake also continues to expand its customer base, with total customers rising from 4,990 in Q2 FY’22 to about 6,800 in Q2 FY’23. Snowflake raised its revenue guidance marginally, projecting product revenue of between $1.90 billion and $1.915 billion, up between 67% and 68% year-over-year.
Snowflake stock rallied by close to 17% in after-hours trading following the earnings report, trading at about $188. However, we still think that the stock looks like a decent value at the current market price. Even after Wednesday’s rally, Snowflake is valued at about 29x FY’23 revenue and about 20x FY’24, which is well below the 50x plus multiples it traded at last year. The company is likely to be a prime beneficiary of the continued pivot from on-premise databases to cloud-based warehousing solutions. Snowflake is particularly well-positioned in this market, as its product works across cloud platforms such as Amazon’s AWS, Google Cloud, and Azure, and also offers more flexibility, as it separates storage from computing for the purpose of billing. The company is targeting $10 billion in annual revenue by FY’ 29 and it is possible that it could fare still better, considering its strong recent execution and its growing addressable market (about $248 billion) as it focuses on new workloads such as cybersecurity. We value Snowflake stock at about $220 per share, about 18% ahead of the after-hours price of $188. See our analysis Snowflake Valuation: Is SNOW Stock Expensive Or Cheap? for more details. See our analysis of Snowflake Revenue for more details on Snowflake’s business model and how its revenues are expected to trend.
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Returns Aug 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
SNOW Return 6% -53% -43%
S&P 500 Return 0% -13% 85%
Trefis Multi-Strategy Portfolio -1% -14% 241%
[1] Month-to-date and year-to-date as of 8/25/2022
[2] Cumulative total returns since the end of 2016
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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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Snowflake (NYSE:SNOW) published a strong set of Q2 FY’23 results and raised its guidance for the full year, as demand for cloud data warehousing solutions soared despite mounting economic headwinds and mixed earnings reports from many other SaaS players. Snowflake’s revenue handily beat estimates, rising 83% year-over-year to $497 million, while adjusted operating margins came in at 4%, compared to the company’s forecast of -2%. Snowflake’s key metrics also remained strong across the board, with net revenue retention standing at 171%, indicating that the company is able to expand business with its existing customers.
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Snowflake’s revenue handily beat estimates, rising 83% year-over-year to $497 million, while adjusted operating margins came in at 4%, compared to the company’s forecast of -2%. Snowflake raised its revenue guidance marginally, projecting product revenue of between $1.90 billion and $1.915 billion, up between 67% and 68% year-over-year. Total [2] SNOW Return 6% -53% -43% S&P 500 Return 0% -13% 85% Trefis Multi-Strategy Portfolio -1% -14% 241% [1] Month-to-date and year-to-date as of 8/25/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Snowflake raised its revenue guidance marginally, projecting product revenue of between $1.90 billion and $1.915 billion, up between 67% and 68% year-over-year. See our analysis of Snowflake Revenue for more details on Snowflake’s business model and how its revenues are expected to trend. Total [2] SNOW Return 6% -53% -43% S&P 500 Return 0% -13% 85% Trefis Multi-Strategy Portfolio -1% -14% 241% [1] Month-to-date and year-to-date as of 8/25/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Snowflake raised its revenue guidance marginally, projecting product revenue of between $1.90 billion and $1.915 billion, up between 67% and 68% year-over-year. See our analysis of Snowflake Revenue for more details on Snowflake’s business model and how its revenues are expected to trend. Total [2] SNOW Return 6% -53% -43% S&P 500 Return 0% -13% 85% Trefis Multi-Strategy Portfolio -1% -14% 241% [1] Month-to-date and year-to-date as of 8/25/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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